Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2013 | Jan. 31, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'HELMERICH & PAYNE INC | ' |
Entity Central Index Key | '0000046765 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 107,534,736 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_CONDENSED_BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $581,414 | $447,868 |
Accounts receivable, less reserve of $4,795 at December 31, 2013 and September 30, 2013 | 630,240 | 621,420 |
Inventories | 97,335 | 88,866 |
Deferred income taxes | 17,323 | 16,414 |
Prepaid expenses and other | 61,222 | 79,938 |
Current assets of discontinued operations | 3,756 | 3,705 |
Total current assets | 1,391,290 | 1,258,211 |
Investments | 312,455 | 316,154 |
Property, plant and equipment, net | 4,693,770 | 4,676,103 |
Other assets | 13,072 | 14,359 |
Total assets | 6,410,587 | 6,264,827 |
Current liabilities: | ' | ' |
Accounts payable | 130,490 | 144,379 |
Accrued liabilities | 229,998 | 189,684 |
Long-term debt due within one year | 115,000 | 115,000 |
Current liabilities of discontinued operations | 3,249 | 3,210 |
Total current liabilities | 478,737 | 452,273 |
Noncurrent liabilities: | ' | ' |
Long-term debt | 80,000 | 80,000 |
Deferred income taxes | 1,222,653 | 1,222,981 |
Other | 60,078 | 65,351 |
Noncurrent liabilities of discontinued operations | 507 | 495 |
Total noncurrent liabilities | 1,363,238 | 1,368,827 |
Shareholders' equity: | ' | ' |
Common stock, $.10 par value, 160,000,000 shares authorized, 109,622,908 shares and 108,738,577 shares issued as of December 31, 2013 and September 30, 2013, respectively and 107,445,835 and 106,716,970 shares outstanding as of December 31, 2013 and September 30, 2013, respectively | 10,962 | 10,874 |
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | ' | ' |
Additional paid-in capital | 322,889 | 288,758 |
Retained earnings | 4,208,074 | 4,102,663 |
Accumulated other comprehensive income | 129,716 | 132,530 |
Treasury stock, at cost | -103,029 | -91,098 |
Total shareholders' equity | 4,568,612 | 4,443,727 |
Total liabilities and shareholders' equity | $6,410,587 | $6,264,827 |
CONSOLIDATED_CONDENSED_BALANCE1
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED CONDENSED BALANCE SHEETS | ' | ' |
Accounts receivable, reserve (in dollars) | $4,795 | $4,795 |
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 | 109,622,908 | 108,738,577 |
Common stock, shares outstanding | 107,445,835 | 106,716,970 |
Preferred stock, no par value (in dollars per share) | ' | ' |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
CONSOLIDATED_CONDENSED_STATEME
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating revenues: | ' | ' |
Drilling - U.S. Land | $731,674 | $696,030 |
Drilling - Offshore | 59,054 | 57,718 |
Drilling - International Land | 95,341 | 87,267 |
Other | 3,083 | 3,557 |
Total operating revenues | 889,152 | 844,572 |
Operating costs and other: | ' | ' |
Operating costs, excluding depreciation | 474,048 | 466,871 |
Depreciation | 120,237 | 106,599 |
General and administrative | 32,243 | 32,421 |
Research and development | 4,257 | 3,353 |
Income from asset sales | -5,664 | -5,219 |
Total operating costs and other | 625,121 | 604,025 |
Operating income from continuing operations | 264,031 | 240,547 |
Other income (expense): | ' | ' |
Interest and dividend income | 453 | 426 |
Interest expense | -1,194 | -1,308 |
Gain from sale of investment securities | ' | 8,752 |
Other | -345 | -2,084 |
Total other income (expense) | -1,086 | 5,786 |
Income from continuing operations before income taxes | 262,945 | 246,333 |
Income tax provision | 89,763 | 86,722 |
Income from continuing operations | 173,182 | 159,611 |
Loss from discontinued operations before income taxes | ' | -8 |
Loss from discontinued operations | ' | -8 |
NET INCOME | $173,182 | $159,603 |
Basic earnings per common share: | ' | ' |
Income from continuing operations (in dollars per share) | $1.61 | $1.50 |
Net income (in dollars per share) | $1.61 | $1.50 |
Diluted earnings per common share: | ' | ' |
Income from continuing operations (in dollars per share) | $1.59 | $1.48 |
Net income (in dollars per share) | $1.59 | $1.48 |
Weighted average shares outstanding: | ' | ' |
Basic (in shares) | 107,149 | 105,867 |
Diluted (in shares) | 108,577 | 107,412 |
Dividends declared per common share (in dollars per share) | $0.63 | $0.15 |
CONSOLIDATED_CONDENSED_STATEME1
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' |
Net income | $173,182 | $159,603 |
Other comprehensive income (loss), net of income taxes: | ' | ' |
Unrealized depreciation on securities, net of income taxes of $1.9 million at December 31, 2013 and $0.1 million at December 31, 2012 | -2,961 | -134 |
Minimum pension liability adjustments, net of income taxes of $0.1 million at December 31, 2013 and $0.2 million at December 31, 2012 | 147 | 433 |
Other comprehensive income (loss) | -2,814 | 299 |
Comprehensive income | $170,368 | $159,902 |
CONSOLIDATED_CONDENSED_STATEME2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' |
Unrealized depreciation on securities, income taxes | $1.90 | $0.10 |
Minimum pension liability adjustments, income taxes | $0.10 | $0.20 |
CONSOLIDATED_CONDENSED_STATEME3
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES: | ' | ' |
Net income | $173,182 | $159,603 |
Adjustment for loss from discontinued operations | ' | 8 |
Income from continuing operations | 173,182 | 159,611 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 120,237 | 106,599 |
Provision for bad debt | ' | 2 |
Stock-based compensation | 7,010 | 6,028 |
Other | ' | 1 |
Gain on sale of investment securities | ' | -8,752 |
Income from asset sales | -5,664 | -5,219 |
Deferred income tax expense | 1,943 | 11,638 |
Change in assets and liabilities: | ' | ' |
Accounts receivable | -8,820 | 40,314 |
Inventories | -8,469 | -1,973 |
Prepaid expenses and other | 20,003 | 29,459 |
Accounts payable | -25,701 | -54,316 |
Accrued liabilities | 38,705 | 64,251 |
Deferred income taxes | -1,317 | -654 |
Other noncurrent liabilities | -6,251 | -5,059 |
Net cash provided by operating activities from continuing operations | 304,858 | 341,930 |
Net cash used in operating activities from discontinued operations | ' | -8 |
Net cash provided by operating activities | 304,858 | 341,922 |
INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -140,643 | -219,444 |
Proceeds from sale of investment securities | ' | 18,102 |
Proceeds from asset sales | 7,913 | 7,414 |
Net cash used in investing activities | -132,730 | -193,928 |
FINANCING ACTIVITIES: | ' | ' |
Dividends paid | -53,860 | -7,432 |
Exercise of stock options | 8,201 | 473 |
Tax withholdings related to net share settlements of restricted stock | -3,049 | -1,677 |
Excess tax benefit from stock-based compensation | 10,126 | 5,693 |
Net cash used in financing activities | -38,582 | -2,943 |
Net increase in cash and cash equivalents | 133,546 | 145,051 |
Cash and cash equivalents, beginning of period | 447,868 | 96,095 |
Cash and cash equivalents, end of period | $581,414 | $241,146 |
CONSOLIDATED_CONDENSED_STATEME4
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Sep. 30, 2013 | $4,443,727 | $10,874 | $288,758 | $4,102,663 | $132,530 | ($91,098) |
Balance (in shares) at Sep. 30, 2013 | ' | ' | ' | ' | ' | 2,022,000 |
Balance (in shares) at Sep. 30, 2013 | 108,738,577 | 108,739,000 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Net income | 173,182 | ' | ' | 173,182 | ' | ' |
Other comprehensive loss | -2,814 | ' | ' | ' | -2,814 | ' |
Cash dividends ($0.625 per share) | -67,771 | ' | ' | -67,771 | ' | ' |
Exercise of stock options | 8,201 | 72 | 17,011 | ' | ' | -8,882 |
Exercise of stock options (in shares) | ' | 727,000 | ' | ' | ' | 117,000 |
Tax benefit of stock-based awards, including excess tax benefits of $10.1 million | 10,126 | ' | 10,126 | ' | ' | ' |
Stock issued for vested restricted stock, net of shares withheld for employee taxes | -3,049 | 16 | -16 | ' | ' | -3,049 |
Stock issued for vested restricted stock, net of shares withheld for employee taxes (in shares) | ' | 157,000 | ' | ' | ' | 38,000 |
Stock-based compensation | 7,010 | ' | 7,010 | ' | ' | ' |
Balance at Dec. 31, 2013 | $4,568,612 | $10,962 | $322,889 | $4,208,074 | $129,716 | ($103,029) |
Balance (in shares) at Dec. 31, 2013 | ' | ' | ' | ' | ' | 2,177,000 |
Balance (in shares) at Dec. 31, 2013 | 109,622,908 | 109,623,000 | ' | ' | ' | ' |
CONSOLIDATED_CONDENSED_STATEME5
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY | ' |
Cash dividends, per share (in dollars per share) | $0.63 |
Tax benefit of stock-based awards, excess tax benefits | $10.10 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
Unless the context otherwise requires, the use of the terms “the Company”, “we”, “us” and “our” in these Notes to Consolidated Condensed Financial Statements refers to Helmerich & Payne, Inc. and its consolidated subsidiaries. | |
The accompanying unaudited Consolidated Condensed Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “Commission”) pertaining to interim financial information. Accordingly, these interim financial statements do not include all information or footnote disclosures required by GAAP for complete financial statements and, therefore, should be read in conjunction with the Consolidated Financial Statements and notes thereto in our 2013 Annual Report on Form 10-K, as amended, and other current filings with the Commission. In the opinion of management all adjustments, consisting of those of a normal recurring nature, necessary to present fairly the results of the periods presented have been included. The results of operations for the interim periods presented may not necessarily be indicative of the results to be expected for the full year. | |
As more fully described in our 2013 Annual Report on Form 10-K, as amended, our contract drilling revenues are comprised of daywork drilling contracts for which the related revenues and expenses are recognized as services are performed. 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. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended |
Dec. 31, 2013 | |
Discontinued Operations | ' |
Discontinued Operations | ' |
2. Discontinued Operations | |
Current assets of discontinued operations consist of restricted cash to meet remaining in-country current obligations. Current and noncurrent liabilities of discontinued operations consist of municipal and income taxes payable and social obligations due within the country of Venezuela. |
Earnings_per_Share
Earnings per Share | 3 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Earnings per Share | ' | |||||||
Earnings per Share | ' | |||||||
3. Earnings per Share | ||||||||
Accounting Standards Codification (“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 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. | ||||||||
The following table sets forth the computation of basic and diluted earnings per share: | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands, except per share amounts) | ||||||||
Numerator: | ||||||||
Income from continuing operations | $ | 173,182 | $ | 159,611 | ||||
Loss from discontinued operations | — | (8 | ) | |||||
Net income | 173,182 | 159,603 | ||||||
Adjustment for basic earnings per share: | ||||||||
Earnings allocated to unvested shareholders | (992 | ) | (730 | ) | ||||
Numerator for basic earnings per share: | ||||||||
From continuing operations | 172,190 | 158,881 | ||||||
From discontinued operations | — | (8 | ) | |||||
172,190 | 158,873 | |||||||
Adjustment for diluted earnings per share: | ||||||||
Effect of reallocating undistributed earnings of unvested shareholders | 7 | 9 | ||||||
Numerator for diluted earnings per share: | ||||||||
From continuing operations | 172,197 | 158,890 | ||||||
From discontinued operations | — | (8 | ) | |||||
$ | 172,197 | $ | 158,882 | |||||
Denominator: | ||||||||
Denominator for basic earnings per share — weighted-average shares | 107,149 | 105,867 | ||||||
Effect of dilutive shares from stock options and restricted stock | 1,428 | 1,545 | ||||||
Denominator for diluted earnings per share — adjusted weighted-average shares | 108,577 | 107,412 | ||||||
Basic earnings per common share: | ||||||||
Income from continuing operations | $ | 1.61 | $ | 1.5 | ||||
Income from discontinued operations | — | — | ||||||
Net income | $ | 1.61 | $ | 1.5 | ||||
Diluted earnings per common share: | ||||||||
Income from continuing operations | $ | 1.59 | $ | 1.48 | ||||
Income from discontinued operations | — | — | ||||||
Net income | $ | 1.59 | $ | 1.48 | ||||
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: | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands, except per share amounts) | ||||||||
Shares excluded from calculation of diluted earnings per share | 261 | 806 | ||||||
Weighted-average price per share | $ | 79.67 | $ | 57.24 | ||||
Financial_Instruments_and_Fair
Financial Instruments and Fair Value Measurement | 3 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Financial Instruments and Fair Value Measurement | ' | |||||||||||||
Financial Instruments and Fair Value Measurement | ' | |||||||||||||
4. Financial Instruments and Fair Value Measurement | ||||||||||||||
The estimated fair value of our available-for-sale securities, reflected on our Consolidated Condensed Balance Sheets as Investments, is 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: | ||||||||||||||
Gross | Gross | Estimated | ||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||
Cost | Gains | Losses | Value | |||||||||||
(in thousands) | ||||||||||||||
Equity securities December 31, 2013 | $ | 68,434 | $ | 232,308 | $ | — | $ | 300,742 | ||||||
Equity securities September 30, 2013 | $ | 68,434 | $ | 237,214 | $ | — | $ | 305,648 | ||||||
On an ongoing basis we evaluate the marketable equity securities to determine if a decline in fair value below cost is other-than-temporary. If a decline in fair value below cost is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis established. We review several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, (i) the length of time a security is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near-term prospects of the issuer and (iv) our intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The cost of securities used in determining realized gains and losses is based on the average cost basis of the security sold. | ||||||||||||||
During the three months ended December 31, 2013, we had no sales of investment securities. During the first quarter ended December 31, 2012, we sold our shares in three limited partnerships that were primarily invested in international equities realizing a gain of $8.8 million which is included in gain from sale of investment securities in the Consolidated Condensed Statements of Income. | ||||||||||||||
Assets held in the Non-qualified Supplemental Savings Plan are carried at fair value based on level 1 inputs described below. The fair value totaled $11.7 million at December 31, 2013 and $10.5 million at September 30, 2013. | ||||||||||||||
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. | ||||||||||||||
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 December 31, 2013, our financial instruments utilizing Level 1 inputs include cash equivalents, equity securities with active markets and money market funds we have elected to classify as restricted assets that are included in other current assets and other assets. Also included is cash denominated in a foreign currency 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 December 31, 2013, financial instruments utilizing level 2 inputs include a bank certificate of deposit included in other current assets. | ||||||||||||||
Currently, we do not have any financial instruments utilizing Level 3 inputs. | ||||||||||||||
The following table summarizes our assets measured at fair value on a recurring basis presented in our Consolidated Condensed Balance Sheet as of December 31, 2013: | ||||||||||||||
Quoted Prices | ||||||||||||||
Total | in Active | Significant | ||||||||||||
Measure | Markets for | Other | Significant | |||||||||||
at | Identical | Observable | Unobservable | |||||||||||
Fair | Assets | Inputs | Inputs | |||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 581,414 | $ | 581,414 | $ | — | $ | — | ||||||
Equity securities | 300,742 | 300,742 | — | — | ||||||||||
Other current assets | 25,648 | 25,398 | 250 | — | ||||||||||
Other assets | 2,000 | 2,000 | — | — | ||||||||||
Total assets measured at fair value | $ | 909,804 | $ | 909,554 | $ | 250 | $ | — | ||||||
The following information presents the supplemental fair value information about fixed-rate debt at December 31, 2013 and September 30, 2013: | ||||||||||||||
December 31, | September 30, | |||||||||||||
2013 | 2013 | |||||||||||||
(in millions) | ||||||||||||||
Carrying value of fixed-rate debt | $ | 195 | $ | 195 | ||||||||||
Fair value of fixed-rate debt | $ | 200.1 | $ | 205.4 | ||||||||||
The fair value for fixed-rate debt was estimated using cash flows discounted at rates reflecting current interest rates at similar maturities plus a credit spread which was estimated using market information on debt instruments with a similar credit profile to us. The debt was valued using a Level 2 input. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||
5. Accumulated Other Comprehensive Income | |||||||||||
The following is a summary of the changes in accumulated other comprehensive income (loss), net of tax, by component for the three months ended December 31, 2013: | |||||||||||
Unrealized | |||||||||||
Depreciation on | Defined | ||||||||||
Available-for-sale | Benefit | ||||||||||
Securities | Pension Plan | Total | |||||||||
(in thousands) | |||||||||||
Beginning balance | $ | 144,161 | $ | (11,631 | ) | $ | 132,530 | ||||
Other comprehensive income before reclassifications | (2,961 | ) | — | (2,961 | ) | ||||||
Amounts reclassified from accumulated othercomprehensive income | — | 147 | 147 | ||||||||
Net current-period other comprehensive income | (2,961 | ) | 147 | (2,814 | ) | ||||||
Ending balance | $ | 141,200 | $ | (11,484 | ) | $ | 129,716 | ||||
The amount reclassified from accumulated other comprehensive income is attributable to the amortization of net actuarial loss included in the computation of net periodic benefit cost as shown in Note 12. |
Cash_Dividends
Cash Dividends | 3 Months Ended |
Dec. 31, 2013 | |
Cash Dividends | ' |
Cash Dividends | ' |
6. Cash Dividends | |
The $0.50 per share cash dividend declared September 4, 2013, was paid December 2, 2013. On December 3, 2013, a cash dividend of $0.625 per share was declared for shareholders of record on February 14, 2014, payable March 3, 2014. The dividend payable is included in accounts payable in the Consolidated Condensed Balance Sheet. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stock-Based Compensation | ' | |||||||||||
Stock-Based Compensation | ' | |||||||||||
7. Stock-Based Compensation | ||||||||||||
On March 2, 2011, the 2010 Long-Term Incentive Plan (the “2010 Plan”) was approved by our stockholders. The 2010 Plan, among other things, authorizes the Board of Directors to grant non-qualified stock options, restricted stock awards and stock appreciation rights to selected employees and to non-employee Directors. Restricted stock may be granted for no consideration other than prior and future services. The purchase price per share for stock options may not be less than market price of the underlying stock on the date of grant. Stock options expire 10 years after the grant date. There were 261,438 non-qualified stock options and 230,375 shares of restricted stock awards granted in the three months ended December 31, 2013. Awards outstanding in the 2005 Long-Term Incentive Plan (the “2005 Plan”) and one prior equity plan remain subject to the terms and conditions of those plans. | ||||||||||||
A summary of compensation cost for stock-based payment arrangements recognized in general and administrative expense is as follows: | ||||||||||||
Three Months Ended | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Compensation expense | ||||||||||||
Stock options | $ | 3,653 | $ | 3,483 | ||||||||
Restricted stock | 3,357 | 2,545 | ||||||||||
$ | 7,010 | $ | 6,028 | |||||||||
STOCK OPTIONS | ||||||||||||
The following summarizes the weighted-average assumptions utilized in determining the fair value of options granted during the three months ended December 31, 2013 and 2012: | ||||||||||||
2013 | 2012 | |||||||||||
Risk-free interest rate | 1.58 | % | 0.7 | % | ||||||||
Expected stock volatility | 52.55 | % | 53.87 | % | ||||||||
Dividend yield | 3.14 | % | 1.1 | % | ||||||||
Expected term (in years) | 5.5 | 5.5 | ||||||||||
Risk-Free Interest Rate. The risk-free interest rate is based on U.S. Treasury securities for the expected term of the option. | ||||||||||||
Expected Volatility Rate. Expected volatility is 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 expected 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. | ||||||||||||
A summary of stock option activity under the Plan for the three months ended December 31, 2013 is presented in the following tables: | ||||||||||||
Three Months Ended December 31, 2013 | ||||||||||||
Weighted- | ||||||||||||
Weighted- | Average | Aggregate | ||||||||||
Average | Remaining | Intrinsic | ||||||||||
Shares | Exercise | Contractual Term | Value | |||||||||
Options | (in thousands) | Price | (in years) | (in millions) | ||||||||
Outstanding at October 1, 2013 | 3,991 | $ | 34.12 | |||||||||
Granted | 261 | 79.67 | ||||||||||
Exercised | (727 | ) | 23.5 | |||||||||
Forfeited/Expired | (1 | ) | 55.03 | |||||||||
Outstanding at December 31, 2013 | 3,524 | $ | 39.69 | 5.4 | $ | 156.5 | ||||||
Vested and expected to vest at December 31, 2013 | 3,505 | $ | 39.52 | 5.4 | $ | 156.2 | ||||||
Exercisable at December 31, 2013 | 2,771 | $ | 33.46 | 4.5 | $ | 140.3 | ||||||
The weighted-average fair value of options granted in the first quarter of fiscal 2014 was $29.44. | ||||||||||||
The total intrinsic value of options exercised during the three months ended December 31, 2013 was $38.4 million. | ||||||||||||
As of December 31, 2013 the unrecognized compensation cost related to stock options was $13.2 million which is expected to be recognized over a weighted-average period of 3.0 years. | ||||||||||||
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 December 31, 2013, there was $31.6 million of total unrecognized compensation cost related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 2.9 years. | ||||||||||||
A summary of the status of our restricted stock awards as of December 31, 2013 and changes in restricted stock outstanding during the three months then ended is presented below: | ||||||||||||
Three Months Ended | ||||||||||||
December 31, 2013 | ||||||||||||
Weighted- | ||||||||||||
Average | ||||||||||||
Shares | Grant-Date | |||||||||||
Restricted Stock Awards | (in thousands) | Fair Value | ||||||||||
Unvested at October 1, 2013 | 576 | $ | 55.17 | |||||||||
Granted | 230 | 79.67 | ||||||||||
Vested (1) | (157 | ) | 54.08 | |||||||||
Forfeited | (2 | ) | 54.51 | |||||||||
Unvested at December 31, 2013 | 647 | $ | 64.16 | |||||||||
(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. |
Debt
Debt | 3 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt | ' | |||||||
Debt | ' | |||||||
8. Debt | ||||||||
At December 31, 2013 and September 30, 2013, we had the following unsecured long-term debt outstanding: | ||||||||
December 31, | September 30, | |||||||
2013 | 2013 | |||||||
(in thousands) | ||||||||
Unsecured intermediate debt issued August 15, 2002: | ||||||||
Series D, due August 15, 2014, 6.56% | $ | 75,000 | $ | 75,000 | ||||
Unsecured senior notes issued July 21, 2009: | ||||||||
Due July 21, 2014, 6.10% | 40,000 | 40,000 | ||||||
Due July 21, 2015, 6.10% | 40,000 | 40,000 | ||||||
Due July 21, 2016, 6.10% | 40,000 | 40,000 | ||||||
$ | 195,000 | $ | 195,000 | |||||
Less long-term debt due within one year | 115,000 | 115,000 | ||||||
Long-term debt | $ | 80,000 | $ | 80,000 | ||||
The intermediate unsecured debt outstanding at December 31, 2013 matures August 15, 2014 and carries an interest rate of 6.56 percent, which is paid semi-annually. The terms require that we maintain a ratio of debt to total capitalization of less than 55 percent. The debt is held by various entities. | ||||||||
We have $120 million in senior unsecured fixed-rate notes outstanding at December 31, 2013 that mature over a period from July 2014 to July 2016. Interest on the notes is paid semi-annually based on an annual rate of 6.10 percent. Annual principal repayments of $40 million are due July 2014 through July 2016. We have complied with our financial covenants which require us to maintain a funded leverage ratio of less than 55 percent and an interest coverage ratio (as defined) of not less than 2.50 to 1.00. | ||||||||
We have a $300 million unsecured revolving credit facility that will mature May 25, 2017. The credit facility has $100 million available to use for letters of credit. We anticipate that the majority of any borrowings under the facility will accrue interest at a spread over the London Interbank Offered Rate (LIBOR). We will also pay a commitment fee based on the unused balance of the facility. Borrowing spreads as well as commitment fees are determined according to a scale based on a ratio of our total debt to total capitalization. The spread over LIBOR ranges from 1.125 percent to 1.75 percent per annum and commitment fees range from .15 percent to .35 percent per annum. Based on our debt to total capitalization on December 31, 2013, the spread over LIBOR and commitment fees would be 1.125 percent and .15 percent, respectively. Financial covenants in the facility require us to maintain a funded leverage ratio (as defined) of less than 50 percent and an interest coverage ratio (as defined) of not less than 3.00 to 1.00. The credit facility contains additional terms, conditions, restrictions, and covenants that we believe are usual and customary in unsecured debt arrangements for companies of similar size and credit quality. At December 31, 2013, we were in compliance with all debt covenants. As of December 31, 2013, there were no borrowings, but there were three letters of credit outstanding in the amount of $30.7 million. At December 31, 2013, we had $269.3 million available to borrow under our $300 million unsecured credit facility. | ||||||||
At December 31, 2013, we had two letters of credit outstanding, totaling $12 million that were issued to support international operations. These letters of credit were issued separately from the $300 million credit facility so they do not reduce the available borrowing capacity discussed in the previous paragraph. |
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
9. Income Taxes | |
Our effective tax rate for the three months ended December 31, 2013 and 2012 was 34.1 percent and 35.2 percent, respectively. Effective tax rates differ from the U.S. federal statutory rate of 35.0 percent primarily due to state and foreign income taxes and an increase in Internal Revenue Code Section 199 deduction for domestic production activities in the three months ended December 31, 2013 compared to the three months ended December 31, 2012. | |
For the next 12 months, we cannot predict with certainty whether we will achieve ultimate resolution of any uncertain tax positions associated with our U.S. and international operations that could result in increases or decreases of our unrecognized tax benefits. However, we believe it is reasonably possible that the reserve for uncertain tax positions may increase by approximately $11.2 million to $14.2 million during the next 12 months due to international matters. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
10. Commitments and Contingencies | |
In conjunction with our current drilling rig construction program, purchase commitments for equipment, parts and supplies of approximately $221.7 million are outstanding at December 31, 2013. | |
Various legal actions, the majority of which arise in the ordinary course of business, are pending. We maintain insurance against certain business risks subject to certain deductibles. None of these legal actions are expected to have a material adverse effect on our financial condition, cash flows or results of operations. | |
We are contingently liable to sureties in respect of bonds issued by the sureties in connection with certain commitments entered into by us in the normal course of business. We have agreed to indemnify the sureties for any payments made by them in respect of such bonds. | |
During the ordinary course of our business, contingencies arise resulting from an existing condition, situation or set of circumstances involving an uncertainty as to the realization of a possible gain contingency. We account for gain contingencies in accordance with the provisions of ASC 450, Contingencies, and, therefore, we do not record gain contingencies or recognize income until realized. 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. In November 2013, we paid a $5.4 million monetary penalty and made a $1.0 million organizational community service payment which were included in accrued liabilities on the September 30, 2013 Consolidated Balance Sheet and in operating costs, excluding depreciation in the September 30, 2013 Consolidated Statement of Income. We are also currently engaged in discussions with the Inspector General’s office of the Department of Interior regarding the same events that were the subject of the DOJ’s investigation. Although we presently believe that the outcome of our discussions will not have a material adverse effect on the Company, we can provide no assurances as to the timing or eventual outcome of these discussions. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Information | ' | |||||||||||||
Segment Information | ' | |||||||||||||
11. 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 that is managed separately. Our primary international areas of operation include Colombia, Ecuador, Argentina, Tunisia, Bahrain, U.A.E. and other South American countries. Other includes additional non-reportable operating segments. Revenues included in Other consist primarily of rental income. Consolidated revenues and expenses reflect the elimination of all material intercompany transactions. | ||||||||||||||
We evaluate segment performance based on income or loss from continuing 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 by 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 the three months ended December 31, 2013 and 2012 is shown in the following tables: | ||||||||||||||
Segment | ||||||||||||||
External | Inter- | Total | Operating | |||||||||||
(in thousands) | Sales | Segment | Sales | Income (Loss) | ||||||||||
December 31, 2013 | ||||||||||||||
Contract Drilling: | ||||||||||||||
U.S. Land | $ | 731,674 | $ | — | $ | 731,674 | $ | 250,952 | ||||||
Offshore | 59,054 | — | 59,054 | 18,498 | ||||||||||
International Land | 95,341 | — | 95,341 | 12,751 | ||||||||||
886,069 | — | 886,069 | 282,201 | |||||||||||
Other | 3,083 | 220 | 3,303 | (3,005 | ) | |||||||||
889,152 | 220 | 889,372 | 279,196 | |||||||||||
Eliminations | — | (220 | ) | (220 | ) | — | ||||||||
Total | $ | 889,152 | $ | — | $ | 889,152 | $ | 279,196 | ||||||
Segment | ||||||||||||||
External | Inter- | Total | Operating | |||||||||||
(in thousands) | Sales | Segment | Sales | Income (Loss) | ||||||||||
December 31, 2012 | ||||||||||||||
Contract Drilling: | ||||||||||||||
U.S. Land | $ | 696,030 | $ | — | $ | 696,030 | $ | 234,388 | ||||||
Offshore | 57,718 | — | 57,718 | 15,006 | ||||||||||
International Land | 87,267 | — | 87,267 | 9,111 | ||||||||||
841,015 | — | 841,015 | 258,505 | |||||||||||
Other | 3,557 | 215 | 3,772 | (1,635 | ) | |||||||||
844,572 | 215 | 844,787 | 256,870 | |||||||||||
Eliminations | — | (215 | ) | (215 | ) | — | ||||||||
Total | $ | 844,572 | $ | — | $ | 844,572 | $ | 256,870 | ||||||
The following table reconciles segment operating income per the table above to income from continuing operations before income taxes as reported on the Consolidated Condensed Statements of Income. | ||||||||||||||
Three Months Ended | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
(in thousands) | ||||||||||||||
Segment operating income | $ | 279,196 | $ | 256,870 | ||||||||||
Income from asset sales | 5,664 | 5,219 | ||||||||||||
Corporate general and administrative costs and corporate depreciation | (20,829 | ) | (21,542 | ) | ||||||||||
Operating income | 264,031 | 240,547 | ||||||||||||
Other income (expense): | ||||||||||||||
Interest and dividend income | 453 | 426 | ||||||||||||
Interest expense | (1,194 | ) | (1,308 | ) | ||||||||||
Gain on sale of investment securities | — | 8,752 | ||||||||||||
Other | (345 | ) | (2,084 | ) | ||||||||||
Total other income (expense) | (1,086 | ) | 5,786 | |||||||||||
Income from continuing operations before income taxes | $ | 262,945 | $ | 246,333 | ||||||||||
The following table presents total assets by reportable segment. | ||||||||||||||
December 31, | September 30, | |||||||||||||
2013 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Total assets | ||||||||||||||
U.S. Land | $ | 4,800,522 | $ | 4,743,644 | ||||||||||
Offshore | 135,151 | 149,128 | ||||||||||||
International Land | 466,691 | 486,914 | ||||||||||||
Other | 32,721 | 32,789 | ||||||||||||
5,435,085 | 5,412,475 | |||||||||||||
Investments and corporate operations | 971,746 | 848,647 | ||||||||||||
Total assets from continued operations | 6,406,831 | 6,261,122 | ||||||||||||
Discontinued operations | 3,756 | 3,705 | ||||||||||||
$ | 6,410,587 | $ | 6,264,827 | |||||||||||
The following table presents revenues from external customers by country based on the location of service provided. | ||||||||||||||
Three Months Ended | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
(in thousands) | ||||||||||||||
Operating revenues | ||||||||||||||
United States | $ | 788,691 | $ | 756,485 | ||||||||||
Colombia | 26,730 | 27,405 | ||||||||||||
Argentina | 26,359 | 13,596 | ||||||||||||
Ecuador | 17,800 | 16,630 | ||||||||||||
Other foreign | 29,572 | 30,456 | ||||||||||||
Total | $ | 889,152 | $ | 844,572 | ||||||||||
Pensions_and_Other_Postretirem
Pensions and Other Post-retirement Benefits | 3 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Pensions and Other Post-retirement Benefits | ' | |||||||
Pensions and Other Post-retirement Benefits | ' | |||||||
12. Pensions and Other Post-retirement Benefits | ||||||||
The following provides information at December 31, 2013 and 2012 related to the Company-sponsored domestic defined benefit pension plan. | ||||||||
Components of Net Periodic Benefit Cost | ||||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Interest cost | $ | 1,201 | $ | 1,105 | ||||
Expected return on plan assets | (1,664 | ) | (1,496 | ) | ||||
Recognized net actuarial loss | 229 | 685 | ||||||
Net pension expense | $ | (234 | ) | $ | 294 | |||
Employer Contributions | ||||||||
We did not make any contributions to the Pension Plan during the three months ended December 31, 2013. Subsequent to December 31, 2013 we contributed $0.5 million to fund distributions. We estimate contributing at least $0.1 million for the remainder of fiscal 2014 to meet the minimum contribution required by law and expect additional contributions to be made to fund distributions. |
International_Risk_Factors
International Risk Factors | 3 Months Ended |
Dec. 31, 2013 | |
International Risk Factors | ' |
International Risk Factors | ' |
13. International Risk Factors | |
International operations are subject to certain political, economic and other uncertainties not encountered in U.S. operations, including increased risks of terrorism, kidnapping of employees, expropriation of drilling rigs, equipment, land and other property, as well as expropriation of a particular oil company operator’s property and drilling rights, taxation policies, foreign exchange restrictions, currency rate fluctuations and general hazards associated with foreign sovereignty over certain areas in which operations are conducted. There can be no assurance that there will not be changes in local laws, regulations and administrative requirements or the interpretation thereof which could have a material adverse effect on the profitability of our operations or on our ability to continue operations in certain areas. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 3 Months Ended |
Dec. 31, 2013 | |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | ' |
14. Recently Issued Accounting Standards | |
On October 1, 2013, we adopted Accounting Standards Update (“ASU”) 2013-02, Other Comprehensive Income. ASU No. 2013-02 amended ASC 220, Comprehensive Income, and superseded and replaced ASU 2011-05, Presentation of Comprehensive Income, and ASU 2011-12, Comprehensive Income. The standard did not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the guidance does require an entity to provide enhanced disclosures to present separately by component reclassifications out of accumulated other comprehensive income. The adoption had no impact on the amount of OCI reported in the Consolidated Financial Statements. |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Earnings per Share | ' | |||||||
Computation of basic and diluted earnings per share | ' | |||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands, except per share amounts) | ||||||||
Numerator: | ||||||||
Income from continuing operations | $ | 173,182 | $ | 159,611 | ||||
Loss from discontinued operations | — | (8 | ) | |||||
Net income | 173,182 | 159,603 | ||||||
Adjustment for basic earnings per share: | ||||||||
Earnings allocated to unvested shareholders | (992 | ) | (730 | ) | ||||
Numerator for basic earnings per share: | ||||||||
From continuing operations | 172,190 | 158,881 | ||||||
From discontinued operations | — | (8 | ) | |||||
172,190 | 158,873 | |||||||
Adjustment for diluted earnings per share: | ||||||||
Effect of reallocating undistributed earnings of unvested shareholders | 7 | 9 | ||||||
Numerator for diluted earnings per share: | ||||||||
From continuing operations | 172,197 | 158,890 | ||||||
From discontinued operations | — | (8 | ) | |||||
$ | 172,197 | $ | 158,882 | |||||
Denominator: | ||||||||
Denominator for basic earnings per share — weighted-average shares | 107,149 | 105,867 | ||||||
Effect of dilutive shares from stock options and restricted stock | 1,428 | 1,545 | ||||||
Denominator for diluted earnings per share — adjusted weighted-average shares | 108,577 | 107,412 | ||||||
Basic earnings per common share: | ||||||||
Income from continuing operations | $ | 1.61 | $ | 1.5 | ||||
Income from discontinued operations | — | — | ||||||
Net income | $ | 1.61 | $ | 1.5 | ||||
Diluted earnings per common share: | ||||||||
Income from continuing operations | $ | 1.59 | $ | 1.48 | ||||
Income from discontinued operations | — | — | ||||||
Net income | $ | 1.59 | $ | 1.48 | ||||
Shares attributable to outstanding equity awards excluded from the calculation of diluted earnings per share | ' | |||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands, except per share amounts) | ||||||||
Shares excluded from calculation of diluted earnings per share | 261 | 806 | ||||||
Weighted-average price per share | $ | 79.67 | $ | 57.24 | ||||
Financial_Instruments_and_Fair1
Financial Instruments and Fair Value Measurement (Tables) | 3 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Financial Instruments and Fair Value Measurement | ' | |||||||||||||
Summary of available-for-sale securities | ' | |||||||||||||
Gross | Gross | Estimated | ||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||
Cost | Gains | Losses | Value | |||||||||||
(in thousands) | ||||||||||||||
Equity securities December 31, 2013 | $ | 68,434 | $ | 232,308 | $ | — | $ | 300,742 | ||||||
Equity securities September 30, 2013 | $ | 68,434 | $ | 237,214 | $ | — | $ | 305,648 | ||||||
Summary of assets measured at fair value on a recurring basis | ' | |||||||||||||
The following table summarizes our assets measured at fair value on a recurring basis presented in our Consolidated Condensed Balance Sheet as of December 31, 2013: | ||||||||||||||
Quoted Prices | ||||||||||||||
Total | in Active | Significant | ||||||||||||
Measure | Markets for | Other | Significant | |||||||||||
at | Identical | Observable | Unobservable | |||||||||||
Fair | Assets | Inputs | Inputs | |||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||
(in thousands) | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 581,414 | $ | 581,414 | $ | — | $ | — | ||||||
Equity securities | 300,742 | 300,742 | — | — | ||||||||||
Other current assets | 25,648 | 25,398 | 250 | — | ||||||||||
Other assets | 2,000 | 2,000 | — | — | ||||||||||
Total assets measured at fair value | $ | 909,804 | $ | 909,554 | $ | 250 | $ | — | ||||||
Summary of supplemental fair value information about fixed-rate debt | ' | |||||||||||||
December 31, | September 30, | |||||||||||||
2013 | 2013 | |||||||||||||
(in millions) | ||||||||||||||
Carrying value of fixed-rate debt | $ | 195 | $ | 195 | ||||||||||
Fair value of fixed-rate debt | $ | 200.1 | $ | 205.4 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||
Summary of the changes in accumulated other comprehensive income (loss), net of tax, by component | ' | ||||||||||
The following is a summary of the changes in accumulated other comprehensive income (loss), net of tax, by component for the three months ended December 31, 2013: | |||||||||||
Unrealized | |||||||||||
Depreciation on | Defined | ||||||||||
Available-for-sale | Benefit | ||||||||||
Securities | Pension Plan | Total | |||||||||
(in thousands) | |||||||||||
Beginning balance | $ | 144,161 | $ | (11,631 | ) | $ | 132,530 | ||||
Other comprehensive income before reclassifications | (2,961 | ) | — | (2,961 | ) | ||||||
Amounts reclassified from accumulated othercomprehensive income | — | 147 | 147 | ||||||||
Net current-period other comprehensive income | (2,961 | ) | 147 | (2,814 | ) | ||||||
Ending balance | $ | 141,200 | $ | (11,484 | ) | $ | 129,716 | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stock-Based Compensation | ' | |||||||||||
Summary of compensation cost for stock-based payment arrangements recognized in general and administrative expense | ' | |||||||||||
Three Months Ended | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Compensation expense | ||||||||||||
Stock options | $ | 3,653 | $ | 3,483 | ||||||||
Restricted stock | 3,357 | 2,545 | ||||||||||
$ | 7,010 | $ | 6,028 | |||||||||
Summary of weighted-average assumptions utilized in determining the fair value of options granted | ' | |||||||||||
2013 | 2012 | |||||||||||
Risk-free interest rate | 1.58 | % | 0.7 | % | ||||||||
Expected stock volatility | 52.55 | % | 53.87 | % | ||||||||
Dividend yield | 3.14 | % | 1.1 | % | ||||||||
Expected term (in years) | 5.5 | 5.5 | ||||||||||
Summary of stock option activity | ' | |||||||||||
Three Months Ended December 31, 2013 | ||||||||||||
Weighted- | ||||||||||||
Weighted- | Average | Aggregate | ||||||||||
Average | Remaining | Intrinsic | ||||||||||
Shares | Exercise | Contractual Term | Value | |||||||||
Options | (in thousands) | Price | (in years) | (in millions) | ||||||||
Outstanding at October 1, 2013 | 3,991 | $ | 34.12 | |||||||||
Granted | 261 | 79.67 | ||||||||||
Exercised | (727 | ) | 23.5 | |||||||||
Forfeited/Expired | (1 | ) | 55.03 | |||||||||
Outstanding at December 31, 2013 | 3,524 | $ | 39.69 | 5.4 | $ | 156.5 | ||||||
Vested and expected to vest at December 31, 2013 | 3,505 | $ | 39.52 | 5.4 | $ | 156.2 | ||||||
Exercisable at December 31, 2013 | 2,771 | $ | 33.46 | 4.5 | $ | 140.3 | ||||||
Summary of restricted stock awards and changes in restricted stock outstanding | ' | |||||||||||
Three Months Ended | ||||||||||||
December 31, 2013 | ||||||||||||
Weighted- | ||||||||||||
Average | ||||||||||||
Shares | Grant-Date | |||||||||||
Restricted Stock Awards | (in thousands) | Fair Value | ||||||||||
Unvested at October 1, 2013 | 576 | $ | 55.17 | |||||||||
Granted | 230 | 79.67 | ||||||||||
Vested (1) | (157 | ) | 54.08 | |||||||||
Forfeited | (2 | ) | 54.51 | |||||||||
Unvested at December 31, 2013 | 647 | $ | 64.16 | |||||||||
(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. |
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt | ' | |||||||
Components of unsecured long-term debt outstanding | ' | |||||||
December 31, | September 30, | |||||||
2013 | 2013 | |||||||
(in thousands) | ||||||||
Unsecured intermediate debt issued August 15, 2002: | ||||||||
Series D, due August 15, 2014, 6.56% | $ | 75,000 | $ | 75,000 | ||||
Unsecured senior notes issued July 21, 2009: | ||||||||
Due July 21, 2014, 6.10% | 40,000 | 40,000 | ||||||
Due July 21, 2015, 6.10% | 40,000 | 40,000 | ||||||
Due July 21, 2016, 6.10% | 40,000 | 40,000 | ||||||
$ | 195,000 | $ | 195,000 | |||||
Less long-term debt due within one year | 115,000 | 115,000 | ||||||
Long-term debt | $ | 80,000 | $ | 80,000 |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Information | ' | |||||||||||||
Summary of financial information of the entity's reportable segments | ' | |||||||||||||
Segment | ||||||||||||||
External | Inter- | Total | Operating | |||||||||||
(in thousands) | Sales | Segment | Sales | Income (Loss) | ||||||||||
December 31, 2013 | ||||||||||||||
Contract Drilling: | ||||||||||||||
U.S. Land | $ | 731,674 | $ | — | $ | 731,674 | $ | 250,952 | ||||||
Offshore | 59,054 | — | 59,054 | 18,498 | ||||||||||
International Land | 95,341 | — | 95,341 | 12,751 | ||||||||||
886,069 | — | 886,069 | 282,201 | |||||||||||
Other | 3,083 | 220 | 3,303 | (3,005 | ) | |||||||||
889,152 | 220 | 889,372 | 279,196 | |||||||||||
Eliminations | — | (220 | ) | (220 | ) | — | ||||||||
Total | $ | 889,152 | $ | — | $ | 889,152 | $ | 279,196 | ||||||
Segment | ||||||||||||||
External | Inter- | Total | Operating | |||||||||||
(in thousands) | Sales | Segment | Sales | Income (Loss) | ||||||||||
December 31, 2012 | ||||||||||||||
Contract Drilling: | ||||||||||||||
U.S. Land | $ | 696,030 | $ | — | $ | 696,030 | $ | 234,388 | ||||||
Offshore | 57,718 | — | 57,718 | 15,006 | ||||||||||
International Land | 87,267 | — | 87,267 | 9,111 | ||||||||||
841,015 | — | 841,015 | 258,505 | |||||||||||
Other | 3,557 | 215 | 3,772 | (1,635 | ) | |||||||||
844,572 | 215 | 844,787 | 256,870 | |||||||||||
Eliminations | — | (215 | ) | (215 | ) | — | ||||||||
Total | $ | 844,572 | $ | — | $ | 844,572 | $ | 256,870 | ||||||
Schedule of reconciliation of segment operating income to income from continuing operations before income taxes | ' | |||||||||||||
Three Months Ended | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
(in thousands) | ||||||||||||||
Segment operating income | $ | 279,196 | $ | 256,870 | ||||||||||
Income from asset sales | 5,664 | 5,219 | ||||||||||||
Corporate general and administrative costs and corporate depreciation | (20,829 | ) | (21,542 | ) | ||||||||||
Operating income | 264,031 | 240,547 | ||||||||||||
Other income (expense): | ||||||||||||||
Interest and dividend income | 453 | 426 | ||||||||||||
Interest expense | (1,194 | ) | (1,308 | ) | ||||||||||
Gain on sale of investment securities | — | 8,752 | ||||||||||||
Other | (345 | ) | (2,084 | ) | ||||||||||
Total other income (expense) | (1,086 | ) | 5,786 | |||||||||||
Income from continuing operations before income taxes | $ | 262,945 | $ | 246,333 | ||||||||||
Schedule of total assets by reportable segments | ' | |||||||||||||
December 31, | September 30, | |||||||||||||
2013 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||
Total assets | ||||||||||||||
U.S. Land | $ | 4,800,522 | $ | 4,743,644 | ||||||||||
Offshore | 135,151 | 149,128 | ||||||||||||
International Land | 466,691 | 486,914 | ||||||||||||
Other | 32,721 | 32,789 | ||||||||||||
5,435,085 | 5,412,475 | |||||||||||||
Investments and corporate operations | 971,746 | 848,647 | ||||||||||||
Total assets from continued operations | 6,406,831 | 6,261,122 | ||||||||||||
Discontinued operations | 3,756 | 3,705 | ||||||||||||
$ | 6,410,587 | $ | 6,264,827 | |||||||||||
Schedule of revenues from external customers by country based on the location of service provided | ' | |||||||||||||
Three Months Ended | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
(in thousands) | ||||||||||||||
Operating revenues | ||||||||||||||
United States | $ | 788,691 | $ | 756,485 | ||||||||||
Colombia | 26,730 | 27,405 | ||||||||||||
Argentina | 26,359 | 13,596 | ||||||||||||
Ecuador | 17,800 | 16,630 | ||||||||||||
Other foreign | 29,572 | 30,456 | ||||||||||||
Total | $ | 889,152 | $ | 844,572 |
Pensions_and_Other_Postretirem1
Pensions and Other Post-retirement Benefits (Tables) | 3 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Pensions and Other Post-retirement Benefits | ' | |||||||
Schedule of components of net periodic benefit cost | ' | |||||||
Three Months Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Interest cost | $ | 1,201 | $ | 1,105 | ||||
Expected return on plan assets | (1,664 | ) | (1,496 | ) | ||||
Recognized net actuarial loss | 229 | 685 | ||||||
Net pension expense | $ | (234 | ) | $ | 294 |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | ' | ' |
Income from continuing operations | $173,182 | $159,611 |
Loss from discontinued operations | ' | -8 |
NET INCOME | 173,182 | 159,603 |
Adjustment for basic earnings per share: | ' | ' |
Earnings allocated to unvested shareholders | -992 | -730 |
Numerator for basic earnings per share: | ' | ' |
From continuing operations | 172,190 | 158,881 |
From discontinued operations | ' | -8 |
Net income (loss) attributable to parent, basic | 172,190 | 158,873 |
Adjustment for diluted earnings per share: | ' | ' |
Effect of reallocating undistributed earnings of unvested shareholders | 7 | 9 |
Numerator for diluted earnings per share: | ' | ' |
From continuing operations | 172,197 | 158,890 |
From discontinued operations | ' | -8 |
Net income (loss) attributable to parent, diluted | $172,197 | $158,882 |
Denominator: | ' | ' |
Denominator for basic earnings per share - weighted-average shares | 107,149 | 105,867 |
Effect of dilutive shares from stock options and restricted stock (in shares) | 1,428 | 1,545 |
Denominator for diluted earnings per share - adjusted weighted-average shares | 108,577 | 107,412 |
Basic earnings per common share: | ' | ' |
Income from continuing operations (in dollars per share) | $1.61 | $1.50 |
Net income (in dollars per share) | $1.61 | $1.50 |
Diluted earnings per common share: | ' | ' |
Income from continuing operations (in dollars per share) | $1.59 | $1.48 |
Net income (in dollars per share) | $1.59 | $1.48 |
Outstanding equity awards | ' | ' |
Shares excluded from calculation of diluted earnings per share | 261 | 806 |
Weighted-average price per share (in dollars per share) | $79.67 | $57.24 |
Financial_Instruments_and_Fair2
Financial Instruments and Fair Value Measurement (Details) (USD $) | 3 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | |
Partnership | Level1 | Level1 | Equity securities | Equity securities | ||
Available-for-sale securities | ' | ' | ' | ' | ' | ' |
Cost | ' | ' | ' | ' | $68,434,000 | $68,434,000 |
Gross Unrealized Gains | ' | ' | ' | ' | 232,308,000 | 237,214,000 |
Estimated Fair Value | ' | ' | ' | ' | 300,742,000 | 305,648,000 |
Number of limited partnerships in which the entity sold its shares | ' | 3 | ' | ' | ' | ' |
Realized gain on shares sold in three limited partnerships | ' | 8,800,000 | ' | ' | ' | ' |
Investment securities sold, fair value | 0 | ' | ' | ' | ' | ' |
Non-qualified Supplemental Savings Plan | ' | ' | ' | ' | ' | ' |
Assets held in Non-qualified Supplement Savings Plan, at Fair Value | ' | ' | $11,700,000 | $10,500,000 | ' | ' |
Financial_Instruments_and_Fair3
Financial Instruments and Fair Value Measurement (Details 2) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
Supplemental fair value information about fixed-rate debt | ' | ' |
Carrying value of fixed-rate debt | $195,000,000 | $195,000,000 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Supplemental fair value information about fixed-rate debt | ' | ' |
Carrying value of fixed-rate debt | 195,000,000 | 195,000,000 |
Fair value of fixed-rate debt | 200,100,000 | 205,400,000 |
Recurring basis | Total Measure at Fair Value | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 581,414,000 | ' |
Equity securities | 300,742,000 | ' |
Other current assets | 25,648,000 | ' |
Other assets | 2,000,000 | ' |
Total assets measured at fair value | 909,804,000 | ' |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 581,414,000 | ' |
Equity securities | 300,742,000 | ' |
Other current assets | 25,398,000 | ' |
Other assets | 2,000,000 | ' |
Total assets measured at fair value | 909,554,000 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Assets: | ' | ' |
Other current assets | 250,000 | ' |
Total assets measured at fair value | $250,000 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in accumulated other comprehensive income (loss), net of tax, by component | ' | ' |
Balance at the beginning of the period | $132,530 | ' |
Other comprehensive income before reclassifications | -2,961 | ' |
Amounts reclassified from accumulated other comprehensive income | 147 | ' |
Net current-period other comprehensive income | -2,814 | 299 |
Balance at the end of the period | 129,716 | ' |
Unrealized Depreciation on Available-for-sale Securities | ' | ' |
Changes in accumulated other comprehensive income (loss), net of tax, by component | ' | ' |
Balance at the beginning of the period | 144,161 | ' |
Other comprehensive income before reclassifications | -2,961 | ' |
Net current-period other comprehensive income | -2,961 | ' |
Balance at the end of the period | 141,200 | ' |
Defined Benefit Pension Plan | ' | ' |
Changes in accumulated other comprehensive income (loss), net of tax, by component | ' | ' |
Balance at the beginning of the period | -11,631 | ' |
Amounts reclassified from accumulated other comprehensive income | 147 | ' |
Net current-period other comprehensive income | 147 | ' |
Balance at the end of the period | ($11,484) | ' |
Cash_Dividends_Details
Cash Dividends (Details) (USD $) | 0 Months Ended | 3 Months Ended | |||
Dec. 02, 2013 | Dec. 03, 2013 | Sep. 04, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Dividends | ' | ' | ' | ' | ' |
Cash dividends declared, per share (in dollars per share) | ' | $0.63 | $0.50 | $0.63 | $0.15 |
Cash dividend paid, per share (in dollars per share) | $0.50 | ' | ' | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Plan | ||
Common-stock based award plan | ' | ' |
Number of prior equity plans | 1 | ' |
Compensation expense (in dollars) | $7,010,000 | $6,028,000 |
Stock options | ' | ' |
Common-stock based award plan | ' | ' |
The period from the grant date after which options expire | '10 years | ' |
Compensation expense (in dollars) | 3,653,000 | 3,483,000 |
Weighted-average assumptions utilized in determining the fair value of options | ' | ' |
Risk-free interest rate (as a percent) | 1.58% | 0.70% |
Expected stock volatility (as a percent) | 52.55% | 53.87% |
Dividend yield (as a percent) | 3.14% | 1.10% |
Expected term | '5 years 6 months | '5 years 6 months |
Options | ' | ' |
Options outstanding at the beginning of the period (in shares) | 3,991,000 | ' |
Granted (in shares) | 261,438 | ' |
Exercised (in shares) | -727,000 | ' |
Forfeited/Expired (in shares) | -1,000 | ' |
Options outstanding at the end of the period (in shares) | 3,524,000 | ' |
Vested and expected to vest at the end of the period (in shares) | 3,505,000 | ' |
Exercisable at the end of the period (in shares) | 2,771,000 | ' |
Weighted-Average Exercise Price | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $34.12 | ' |
Granted (in dollars per share) | $79.67 | ' |
Exercised (in dollars per share) | $23.50 | ' |
Forfeited/Expired (in dollars per share) | $55.03 | ' |
Outstanding at the end of the period (in dollars per share) | $39.69 | ' |
Vested and expected to vest at the end of the period (in dollars per share) | $39.52 | ' |
Exercisable at the end of the period (in dollars per share) | $33.46 | ' |
Weighted- Average Remaining Contractual Term | ' | ' |
Outstanding at the end of the period | '5 years 4 months 24 days | ' |
Vested and expected to vest at the end of the period | '5 years 4 months 24 days | ' |
Exercisable at the end of the period | '4 years 6 months | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding at the end of the period (in dollars) | 156,500,000 | ' |
Vested and expected to vest at the end of the period (in dollars) | 156,200,000 | ' |
Exercisable at the end of the period (in dollars) | 140,300,000 | ' |
Weighted-average fair value of options granted (in dollars per share) | $29.44 | ' |
Total intrinsic value of options exercised (in dollars) | 38,400,000 | ' |
Unrecognized compensation cost (in dollars) | 13,200,000 | ' |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | '3 years | ' |
Restricted stock | ' | ' |
Common-stock based award plan | ' | ' |
Compensation expense (in dollars) | 3,357,000 | 2,545,000 |
Aggregate Intrinsic Value | ' | ' |
Unrecognized compensation cost (in dollars) | $31,600,000 | ' |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | '2 years 10 months 24 days | ' |
Restricted Stock Awards, Shares | ' | ' |
Unvested at the beginning of the period (in shares) | 576,000 | ' |
Granted (in shares) | 230,375 | ' |
Vested (in shares) | -157,000 | ' |
Forfeited (in shares) | -2,000 | ' |
Unvested at the end of the period (in shares) | 647,000 | ' |
Restricted Stock Awards, Weighted Average Grant-Date Fair Value | ' | ' |
Unvested at the beginning of the period (in dollars per share) | $55.17 | ' |
Granted (in dollars per share) | $79.67 | ' |
Vested (in dollars per share) | $54.08 | ' |
Forfeited (in dollars per share) | $54.51 | ' |
Unvested at the end of the period (in dollars per share) | $64.16 | ' |
Restricted stock | Minimum | ' | ' |
Aggregate Intrinsic Value | ' | ' |
Vesting period | '3 years | ' |
Restricted stock | Maximum | ' | ' |
Aggregate Intrinsic Value | ' | ' |
Vesting period | '6 years | ' |
Debt_Details
Debt (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 |
Issued to support international operations | Unsecured revolving credit facility mature May 25, 2017 | Unsecured revolving credit facility mature May 25, 2017 | Unsecured revolving credit facility mature May 25, 2017 | Unsecured revolving credit facility mature May 25, 2017 | Unsecured revolving credit facility mature May 25, 2017 | Unsecured revolving credit facility mature May 25, 2017 | Unsecured revolving credit facility mature May 25, 2017 | Series D, due August 15, 2014, 6.56% | Series D, due August 15, 2014, 6.56% | Series D, due August 15, 2014, 6.56% | Unsecured senior notes issued July 21, 2009 | Unsecured senior notes issued July 21, 2009 | Unsecured senior notes issued July 21, 2009 | Due July 21, 2014, 6.10% | Due July 21, 2014, 6.10% | Due July 21, 2015, 6.10% | Due July 21, 2015, 6.10% | Due July 21, 2016, 6.10% | Due July 21, 2016, 6.10% | |||
LetterOfCredit | Maximum | Minimum | LIBOR | LIBOR | LIBOR | Letter of credit | Maximum | Maximum | Minimum | |||||||||||||
Maximum | Minimum | LetterOfCredit | ||||||||||||||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt outstanding | $195,000,000 | $195,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $75,000,000 | $75,000,000 | ' | $120,000,000 | ' | ' | $40,000,000 | $40,000,000 | $40,000,000 | $40,000,000 | $40,000,000 | $40,000,000 |
Less long-term debt due within one year | 115,000,000 | 115,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 80,000,000 | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt stated interest rate percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.56% | 6.56% | ' | 6.10% | ' | ' | 6.10% | 6.10% | 6.10% | 6.10% | 6.10% | 6.10% |
Ratio of debt to total capitalization (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual principal repayments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Funded leverage ratio (as a percent) | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55.00% | ' | ' | ' | ' | ' | ' | ' |
Interest coverage ratio | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' |
Borrowing amount | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing capacity to use for letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base rate for the variable rate | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LIBOR spread on borrowings (as a percent) | ' | ' | ' | ' | ' | ' | 1.13% | 1.75% | 1.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee (as a percent) | ' | ' | ' | 0.15% | 0.35% | 0.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing amount outstanding | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of letters of credit outstanding | ' | ' | 2 | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding/issued | ' | ' | 12,000,000 | ' | ' | ' | ' | ' | ' | 30,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing capacity excluding letters of credit transaction | ' | ' | ' | $269,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes | ' | ' |
Effective income tax rate (as a percent) | 34.10% | 35.20% |
Effective income tax rates as compared to the U.S. Federal income tax rate | ' | ' |
U.S. federal statutory rate (as a percent) | 35.00% | ' |
Reasonably possible increase in the reserve for uncertain tax positions, low range | $11.20 | ' |
Reasonably possible increase in the reserve for uncertain tax positions, high range | $14.20 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Nov. 30, 2013 | Dec. 31, 2013 |
Commitments and Contingencies | ' | ' |
Purchase orders outstanding for drilling equipment | ' | $221.70 |
Gain contingencies recognized in consolidated financial statements | ' | 0 |
Monetary penalty paid | 5.4 | ' |
Organizational community service payment | $1 | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Segment information | ' | ' |
Sales | $889,152 | $844,572 |
Segment Operating Income (Loss) | 279,196 | 256,870 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ' | ' |
Segment operating income | 279,196 | 256,870 |
Income from asset sales | 5,664 | 5,219 |
Corporate general and administrative costs and corporate depreciation | -20,829 | -21,542 |
Operating income from continuing operations | 264,031 | 240,547 |
Other income (expense): | ' | ' |
Interest and dividend income | 453 | 426 |
Interest expense | -1,194 | -1,308 |
Gain on sale of investment securities | ' | 8,752 |
Other | -345 | -2,084 |
Total other income (expense) | -1,086 | 5,786 |
Income from continuing operations before income taxes | 262,945 | 246,333 |
Other | ' | ' |
Segment information | ' | ' |
Sales | 3,083 | 3,557 |
Segment Operating Income (Loss) | -3,005 | -1,635 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ' | ' |
Segment operating income | -3,005 | -1,635 |
Operating Segment | ' | ' |
Segment information | ' | ' |
Sales | 889,372 | 844,787 |
Operating Segment | Other | ' | ' |
Segment information | ' | ' |
Sales | 3,303 | 3,772 |
Inter-Segment | ' | ' |
Segment information | ' | ' |
Sales | -220 | -215 |
Inter-Segment | Other | ' | ' |
Segment information | ' | ' |
Sales | -220 | -215 |
Contract Drilling: | ' | ' |
Segment information | ' | ' |
Sales | 886,069 | 841,015 |
Segment Operating Income (Loss) | 282,201 | 258,505 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ' | ' |
Segment operating income | 282,201 | 258,505 |
Contract Drilling: | U.S. Land | ' | ' |
Segment information | ' | ' |
Sales | 731,674 | 696,030 |
Segment Operating Income (Loss) | 250,952 | 234,388 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ' | ' |
Segment operating income | 250,952 | 234,388 |
Contract Drilling: | Offshore | ' | ' |
Segment information | ' | ' |
Sales | 59,054 | 57,718 |
Segment Operating Income (Loss) | 18,498 | 15,006 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ' | ' |
Segment operating income | 18,498 | 15,006 |
Contract Drilling: | International Land | ' | ' |
Segment information | ' | ' |
Sales | 95,341 | 87,267 |
Segment Operating Income (Loss) | 12,751 | 9,111 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ' | ' |
Segment operating income | 12,751 | 9,111 |
Contract Drilling: | Operating Segment | ' | ' |
Segment information | ' | ' |
Sales | 886,069 | 841,015 |
Contract Drilling: | Operating Segment | U.S. Land | ' | ' |
Segment information | ' | ' |
Sales | 731,674 | 696,030 |
Contract Drilling: | Operating Segment | Offshore | ' | ' |
Segment information | ' | ' |
Sales | 59,054 | 57,718 |
Contract Drilling: | Operating Segment | International Land | ' | ' |
Segment information | ' | ' |
Sales | $95,341 | $87,267 |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Segment information | ' | ' | ' |
Total assets | $6,410,587 | ' | $6,264,827 |
Operating revenues | 889,152 | 844,572 | ' |
United States | ' | ' | ' |
Segment information | ' | ' | ' |
Operating revenues | 788,691 | 756,485 | ' |
Colombia | ' | ' | ' |
Segment information | ' | ' | ' |
Operating revenues | 26,730 | 27,405 | ' |
Argentina | ' | ' | ' |
Segment information | ' | ' | ' |
Operating revenues | 26,359 | 13,596 | ' |
Ecuador | ' | ' | ' |
Segment information | ' | ' | ' |
Operating revenues | 17,800 | 16,630 | ' |
Other foreign | ' | ' | ' |
Segment information | ' | ' | ' |
Operating revenues | 29,572 | 30,456 | ' |
Continued operations | ' | ' | ' |
Segment information | ' | ' | ' |
Total assets | 6,406,831 | ' | 6,261,122 |
Discontinued operations | ' | ' | ' |
Segment information | ' | ' | ' |
Total assets | 3,756 | ' | 3,705 |
Other | ' | ' | ' |
Segment information | ' | ' | ' |
Operating revenues | 3,083 | 3,557 | ' |
Operating segment | ' | ' | ' |
Segment information | ' | ' | ' |
Total assets | 5,435,085 | ' | 5,412,475 |
Operating revenues | 889,372 | 844,787 | ' |
Operating segment | U.S. Land | ' | ' | ' |
Segment information | ' | ' | ' |
Total assets | 4,800,522 | ' | 4,743,644 |
Operating segment | Offshore | ' | ' | ' |
Segment information | ' | ' | ' |
Total assets | 135,151 | ' | 149,128 |
Operating segment | International Land | ' | ' | ' |
Segment information | ' | ' | ' |
Total assets | 466,691 | ' | 486,914 |
Operating segment | Other | ' | ' | ' |
Segment information | ' | ' | ' |
Total assets | 32,721 | ' | 32,789 |
Operating revenues | 3,303 | 3,772 | ' |
Investments and corporate operations | ' | ' | ' |
Segment information | ' | ' | ' |
Total assets | $971,746 | ' | $848,647 |
Pensions_and_Other_Postretirem2
Pensions and Other Post-retirement Benefits (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Components of Net Periodic Benefit Cost | ' | ' |
Interest cost | $1,201,000 | $1,105,000 |
Expected return on plan assets | -1,664,000 | -1,496,000 |
Recognized net actuarial loss | 229,000 | 685,000 |
Net pension expense | -234,000 | 294,000 |
Minimum | ' | ' |
Plan assets | ' | ' |
Estimated minimum contribution required by law in remainder of fiscal 2014 | 100,000 | ' |
Subsequent Event | ' | ' |
Plan assets | ' | ' |
Employer contribution | $500,000 | ' |