Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | HELMERICH & PAYNE INC | |
Entity Central Index Key | 46,765 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
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 | 107,751,484 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 |
Current assets: | |||||
Cash and cash equivalents | $ 770,918 | $ 360,909 | $ 549,928 | $ 447,868 | |
Accounts receivable, less reserve of $4,592 at June 30, 2015 and $4,597 at September 30, 2014 | 490,224 | 705,214 | |||
Inventories | 128,217 | 106,241 | |||
Deferred income taxes | 9,183 | 16,519 | |||
Prepaid expenses and other | 95,327 | 80,912 | |||
Current assets of discontinued operations | 7,822 | 7,206 | |||
Total current assets | 1,501,691 | 1,277,001 | |||
Investments | 159,976 | 236,644 | |||
Property, plant and equipment, net | 5,630,311 | 5,188,544 | |||
Other assets | 43,839 | 18,809 | |||
Total assets | 7,335,817 | 6,720,998 | |||
Current liabilities: | |||||
Long-term debt due within one year less unamortized debt issuance costs | 39,157 | 39,635 | |||
Accounts payable | 128,670 | 182,031 | |||
Accrued liabilities | 175,282 | 282,278 | |||
Current liabilities of discontinued operations | 3,394 | 3,217 | |||
Total current liabilities | 346,503 | 507,161 | |||
Noncurrent liabilities: | |||||
Long-term debt less unamortized discount and debt issuance costs | 532,388 | 39,502 | |||
Deferred income taxes | 1,325,920 | 1,215,259 | |||
Other | 105,069 | 64,110 | |||
Noncurrent liabilities of discontinued operations | 4,428 | 3,989 | |||
Total noncurrent liabilities | 1,967,805 | 1,322,860 | |||
Shareholders' equity: | |||||
Common stock, $.10 par value, 160,000,000 shares authorized, 110,858,097 shares and 110,508,605 shares issued as of June 30, 2015 and September 30, 2014, respectively and 107,656,628 shares and 108,232,284 shares outstanding as of June 30, 2015 and September 30, 2014, respectively | $ 11,086 | $ 11,051 | |||
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | |||||
Additional paid-in capital | $ 409,159 | $ 383,972 | |||
Retained earnings | 4,745,771 | 4,525,797 | |||
Accumulated other comprehensive income | 36,962 | $ 40,072 | 83,126 | ||
Treasury stock, at cost | (181,469) | (112,969) | |||
Total shareholders' equity | 5,021,509 | 4,890,977 | |||
Total liabilities and shareholders' equity | $ 7,335,817 | $ 6,720,998 |
CONSOLIDATED CONDENSED BALANCE3
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
CONSOLIDATED CONDENSED BALANCE SHEETS | ||
Accounts receivable, reserve (in dollars) | $ 4,592 | $ 4,597 |
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 | 110,858,097 | 110,508,605 |
Common stock, shares outstanding | 107,656,628 | 108,232,284 |
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 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating revenues: | ||||
Drilling - U.S. Land | $ 494,615 | $ 802,279 | $ 2,103,125 | $ 2,275,744 |
Drilling - Offshore | 55,673 | 64,554 | 187,772 | 186,884 |
Drilling - International Land | 106,198 | 81,267 | 297,305 | 262,141 |
Other | 3,208 | 3,987 | 11,129 | 9,900 |
Total operating revenues | 659,694 | 952,087 | 2,599,331 | 2,734,669 |
Operating costs and other: | ||||
Operating costs, excluding depreciation | 351,670 | 515,239 | 1,375,241 | 1,469,454 |
Depreciation | 144,295 | 128,978 | 431,616 | 373,178 |
General and administrative | 29,404 | 34,222 | 97,213 | 100,896 |
Research and development | 3,329 | 3,864 | 12,344 | 11,746 |
Income from asset sales | (1,784) | (2,128) | (8,854) | (11,890) |
Total operating costs and other | 526,914 | 680,175 | 1,907,560 | 1,943,384 |
Operating income from continuing operations | 132,780 | 271,912 | 691,771 | 791,285 |
Other income (expense): | ||||
Interest and dividend income | 1,602 | 373 | 4,436 | 1,316 |
Interest expense | (6,258) | (1,435) | (9,290) | (4,354) |
Gain from sale of investment securities | 23,882 | 45,234 | ||
Other | (281) | 346 | 88 | (31) |
Total other income (expense) | (4,937) | 23,166 | (4,766) | 42,165 |
Income from continuing operations before income taxes | 127,843 | 295,078 | 687,005 | 833,450 |
Income tax provision | 36,956 | 102,788 | 243,525 | 293,389 |
Income from continuing operations | 90,887 | 192,290 | 443,480 | 540,061 |
Income (loss) from discontinued operations before income taxes | (27) | (11) | (118) | 2,775 |
Income tax provision | (77) | 2,805 | ||
Income (loss) from discontinued operations | (27) | (11) | (41) | (30) |
NET INCOME | $ 90,860 | $ 192,279 | $ 443,439 | $ 540,031 |
Basic earnings per common share: | ||||
Income from continuing operations (in dollars per share) | $ 0.84 | $ 1.77 | $ 4.09 | $ 4.99 |
Net income (in dollars per share) | 0.84 | 1.77 | 4.09 | 4.99 |
Diluted earnings per common share: | ||||
Income from continuing operations (in dollars per share) | 0.83 | 1.75 | 4.06 | 4.92 |
Net income (in dollars per share) | $ 0.83 | $ 1.75 | $ 4.06 | $ 4.92 |
Weighted average shares outstanding (in thousands): | ||||
Basic (in shares) | 107,652 | 108,137 | 107,759 | 107,657 |
Diluted (in shares) | 108,469 | 109,285 | 108,571 | 109,086 |
Dividends declared, per share (in dollars per share) | $ 0.6875 | $ 0.6875 | $ 2.0625 | $ 1.9375 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 90,860 | $ 192,279 | $ 443,439 | $ 540,031 |
Other comprehensive income (loss), net of income taxes: | ||||
Unrealized appreciation (depreciation) on securities, net of income taxes of ($2.1) million and ($29.5) million at June 30, 2015 and $5.3 million and $1.0 million at June 30, 2014 | (3,307) | 13,728 | (46,754) | 7,215 |
Reclassification of realized gains in net income, net of income taxes of ($9.0) million and ($17.5) million at June 30, 2014 | (14,853) | (27,737) | ||
Minimum pension liability adjustments, net of income taxes of $0.1 million and $0.3 million at June 30, 2015 and $0.1 million and $0.3 million at June 30, 2014 | 197 | 145 | 590 | 437 |
Other comprehensive loss | (3,110) | (980) | (46,164) | (20,085) |
Comprehensive income | $ 87,750 | $ 191,299 | $ 397,275 | $ 519,946 |
CONSOLIDATED CONDENSED STATEME6
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Unrealized depreciation on securities, income taxes | $ (2.1) | $ 5.3 | $ (29.5) | $ 1 |
Reclassification of realized gains in net income, income taxes | (9) | (17.5) | ||
Minimum pension liability adjustments, income taxes | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.3 |
CONSOLIDATED CONDENSED STATEME7
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES: | ||
Net income | $ 443,439 | $ 540,031 |
Adjustment for loss from discontinued operations | 41 | 30 |
Income from continuing operations | 443,480 | 540,061 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 431,616 | 373,178 |
Amortization of debt discount and debt issuance costs | 485 | 320 |
Provision for (recovery of) bad debt | (194) | |
Stock-based compensation | 19,120 | 21,089 |
Pension settlement charge | 1,200 | |
Other | 1 | |
Gain on sale of investment securities | (45,234) | |
Income from asset sales | (8,854) | (11,890) |
Deferred income tax expense | 146,864 | 28,665 |
Change in assets and liabilities: | ||
Accounts receivable | 215,027 | (84,173) |
Inventories | (21,976) | (17,384) |
Prepaid expenses and other | (39,445) | 5,080 |
Accounts payable | (31,465) | (31,240) |
Accrued liabilities | (49,831) | 31,633 |
Deferred income taxes | 287 | (927) |
Other noncurrent liabilities | 41,072 | (11,060) |
Net cash provided by operating activities from continuing operations | 1,147,580 | 797,925 |
Net cash used in operating activities from discontinued operations | (41) | (30) |
Net cash provided by operating activities | 1,147,539 | 797,895 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (971,857) | (622,028) |
Proceeds from sale of investment securities | 49,205 | |
Proceeds from asset sales | 17,805 | 21,485 |
Net cash used in investing activities | (954,052) | (551,338) |
FINANCING ACTIVITIES: | ||
Dividends paid | (223,827) | (189,542) |
Repurchase of common stock | (59,654) | |
Proceeds from senior notes, net of discount and debt issuance costs | 491,923 | |
Proceeds on short-term debt | 1,002 | |
Payments on short-term debt | (1,002) | |
Net increase in bank overdraft | 10,824 | |
Exercise of stock options, net of tax withholding | (609) | 22,370 |
Tax withholdings related to net share settlements of restricted stock | (5,104) | (3,049) |
Excess tax benefit from stock-based compensation | 2,969 | 25,724 |
Net cash provided by (used in) financing activities | 216,522 | (144,497) |
Net increase in cash and cash equivalents | 410,009 | 102,060 |
Cash and cash equivalents, beginning of period | 360,909 | 447,868 |
Cash and cash equivalents, end of period | $ 770,918 | $ 549,928 |
CONSOLIDATED CONDENSED STATEME8
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY - 9 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income. | Treasury Stock | Total |
Balance at Sep. 30, 2014 | $ 11,051 | $ 383,972 | $ 4,525,797 | $ 83,126 | $ (112,969) | $ 4,890,977 |
Balance (in shares) at Sep. 30, 2014 | 110,509,000 | 110,508,605 | ||||
Balance (in shares) at Sep. 30, 2014 | 2,276,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 443,439 | $ 443,439 | ||||
Other comprehensive loss | (46,164) | (46,164) | ||||
Dividends declared ($2.0625 per share) | (223,465) | (223,465) | ||||
Exercise of stock options, net of tax withholding | $ 14 | 3,119 | $ (3,742) | (609) | ||
Exercise of stock options, net of tax withholding (in shares) | 136,000 | 46,000 | ||||
Tax benefit of stock-based awards | 2,969 | 2,969 | ||||
Stock issued for vested restricted stock, net of shares withheld for employee taxes | $ 21 | (21) | $ (5,104) | (5,104) | ||
Stock issued for vested restricted stock, net of shares withheld for employee taxes (in shares) | 213,000 | 69,000 | ||||
Repurchase of common stock | $ (59,654) | $ (59,654) | ||||
Repurchase of common stock (in shares) | 810,000 | 810,097 | ||||
Stock-based compensation | 19,120 | $ 19,120 | ||||
Balance at Jun. 30, 2015 | $ 11,086 | $ 409,159 | $ 4,745,771 | $ 36,962 | $ (181,469) | $ 5,021,509 |
Balance (in shares) at Jun. 30, 2015 | 110,858,000 | 110,858,097 | ||||
Balance (in shares) at Jun. 30, 2015 | 3,201,000 |
CONSOLIDATED CONDENSED STATEME9
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Jun. 03, 2015 | Mar. 04, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY | ||||||
Dividends declared (in dollars per share) | $ 0.6875 | $ 0.6875 | $ 0.6875 | $ 0.6875 | $ 2.0625 | $ 1.9375 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2015 | |
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 2014 Annual Report on Form 10-K 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. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03 “ Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ”. ASU No. 2015-03 amends the FASB Accounting Standards Codification (“ASC”) to require that debt issuance cost be presented in the balance sheet as a direct deduction from the carrying amount of the related liability. Prior to the amendment, debt issuance costs were reported in the balance sheet as an asset. The amended guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, however, we have elected to early adopt effective January 1, 2015. The election requires retrospective application and represents a change in accounting principle. The ASU provides that debt issuance costs are similar to debt discounts and in effect reduce the proceeds of borrowing, thereby increasing the effective interest rate. As a result of the adoption, the September 30, 2014 Consolidated Condensed Balance Sheet is restated as follows: Effect of Previously Accounting Reported Principle Adoption Adjusted (in thousands) Consolidated Condensed Balance Sheet Prepaid expenses and other $ $ ) $ Total current assets ) Other assets ) Total assets ) Long-term debt due within one year less unamortized discount and debt issuance costs ) Total current liabilities ) Long-term debt less unamortized discount and debt issuance costs ) Total noncurrent liabilities ) Total liabilities and shareholders’ equity ) Amortization of debt discount and debt issuance costs has been reclassified in the accompanying Consolidated Condensed Statements of Cash Flow for the nine months ended June 30, 2014 to conform to current year presentation. The amortization was previously included as a change in assets. As more fully described in our 2014 Annual Report on Form 10-K, 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. During the three and nine months ended June 30, 2015, early termination revenue was approximately $84.5 million and $179.6 million, respectively. We had $0.5 million and $10.3 million, respectively, of early termination revenue for the three and nine months ended June 30, 2014. Depreciation in the Consolidated Condensed Statements of Income includes abandonments of $1.3 million and $13.5 million for the three and nine months ended June 30, 2015 compared to $1.5 million and $5.2 million for the three and nine months ended June 30, 2014. Effective March 31, 2015, we decommissioned all 17 of our SCR powered FlexRigs including 6 idle FlexRig1 rigs and 11 idle FlexRig2 rigs. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations. | |
Discontinued Operations | 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 of Venezuela. Expenses incurred for in-country obligations are reported as discontinued operations. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2015 | |
Earnings per Share | |
Earnings per Share | 3. Earnings per Share ASC 260, Earnings per Share , requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividends 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 Nine Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Numerator: Income from continuing operations $ $ $ $ Loss from discontinued operations ) ) ) ) Net income 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 from continuing operations $ $ $ $ Income from discontinued operations — — — — Net income $ $ $ $ Diluted earnings per common share: Income from continuing operations $ $ $ $ Income from discontinued operations — — — — Net income $ $ $ $ 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 Nine Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Shares excluded from calculation of diluted earnings per share — Weighted-average price per share $ $ — $ $ |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 9 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 $ $ $ — $ Equity securities September 30, 2014 $ $ $ — $ 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. During the three and nine months ended June 30, 2014, marketable equity available-for-sale securities with a fair value at the date of sale of $25.9 million and $49.2 million, respectively, were sold. The gross realized gain on such sales of available-for-sale securities totaled $23.9 million and $45.2 million, respectively. We had no sales of marketable equity available-for-sale securities during the three and nine months ended June 30, 2015. The assets held in the Non-qualified Supplemental Savings Plan are carried at fair value which totaled $13.9 million at June 30, 2015 and $14.3 million at September 30, 2014. The assets are comprised of mutual funds that are measured using Level 1 inputs. 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 June 30, 2015, 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 June 30, 2015, 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 June 30, 2015: 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 $ $ $ — $ — Equity securities — — Other current assets — Other assets — — Total assets measured at fair value $ $ $ $ — The following information presents the supplemental fair value information about long-term fixed-rate debt at June 30, 2015 and September 30, 2014: September 30, June 30, 2014 2015 (as adjusted) (in millions) Carrying value of long-term fixed-rate debt $ $ Fair value of long-term fixed-rate debt $ $ The fair value at June 30, 2015 for the $80 million fixed-rate debt was estimated using discounted cash flows at rates reflecting current interest rates at similar maturities plus a credit spread which was estimated using the outstanding market information on debt instruments with a similar credit profile to us. The debt was valued using a Level 2 input. The fair value for the $500 million fixed-rate debt was based on broker quotes at June 30, 2015. The notes are classified within Level 2 as they are not actively traded in markets. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Jun. 30, 2015 | |
SHAREHOLDERS' EQUITY | |
Shareholders' Equity | 5. Shareholders’ Equity The Company has authorization from the Board of Directors for the repurchase of up to four million shares per calendar year. The repurchases may be made using our cash and cash equivalents or other available sources. During the nine months ended June 30, 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 2014. Components of accumulated other comprehensive income (loss) were as follows: June 30, September 30, 2015 2014 (in thousands) Pre-tax amounts: Unrealized appreciation on securities $ $ Unrecognized actuarial loss ) ) $ $ After-tax amounts: Unrealized appreciation on securities $ $ Unrecognized actuarial loss ) ) $ $ The following is a summary of the changes in accumulated other comprehensive income (loss), net of tax, by component for the three and nine months ended June 30, 2015: Three Months Ended June 30, 2015 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balances at April 1, 2015 $ $ ) $ Other comprehensive loss before reclassifications ) — ) Amounts reclassified from accumulated other comprehensive income (loss) — Net current-period other comprehensive income (loss) ) ) Balances at June 30, 2015 $ $ ) $ Nine Months Ended June 30, 2015 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balances at October 1, 2014 $ $ ) $ Other comprehensive loss before reclassifications ) — ) Amounts reclassified from accumulated other comprehensive income (loss) — Net current-period other comprehensive income (loss) ) ) Balances at June 30, 2015 $ $ ) $ The following provides detail about accumulated other comprehensive income (loss) components which were reclassified to the Condensed Consolidated Statement of Income during the three and nine months ended June 30, 2015: Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Details About Accumulated Other Comprehensive Income Three Months Ended June 30, Nine Months Ended June 30, Affected Line Item in the Condensed Consolidated (Loss) Components 2015 2014 2015 2014 Statement of Income (in thousands) (in thousands) Unrealized gains on available-for-sale securities $ — $ ) $ — $ ) Gain on sale of investment securities — — Income tax provision $ — $ ) $ — $ ) Net of tax Defined Benefit Pension Items Amortization of net actuarial loss $ $ $ $ General and administrative ) ) ) ) Income tax provision $ $ $ $ Net of tax Total reclassifications for the period $ $ ) $ $ ) |
Cash Dividends
Cash Dividends | 9 Months Ended |
Jun. 30, 2015 | |
Cash Dividends | |
Cash Dividends | 6. Cash Dividends The $0.6875 per share cash dividend declared March 4, 2015, was paid June 1, 2015. On June 3, 2015, a cash dividend of $0.6875 per share was declared for shareholders of record on August 14, 2015, payable September 1, 2015. The dividend payable is included in accounts payable in the Consolidated Condensed Balance Sheet. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jun. 30, 2015 | |
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 Human Resources Committee of the Board 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 419,585 non-qualified stock options and 275,250 shares of restricted stock awards granted in the nine months ended June 30, 2015. 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 Nine Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Compensation expense Stock options $ $ $ $ Restricted stock $ $ $ $ STOCK OPTIONS The following summarizes the weighted-average assumptions utilized in determining the fair value of options granted during the nine months ended June 30, 2015 and 2014: 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 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 all existing long-term incentive plans for the three and nine months ended June 30, 2015 is presented in the following tables: Three Months Ended June 30, 2015 Weighted- Weighted- Average Aggregate Average Remaining Intrinsic Shares Exercise Contractual Term Value Options (in thousands) Price (in years) (in millions) Outstanding at April 1, 2015 $ Granted — — Exercised ) Forfeited/Expired — — Outstanding at June 30, 2015 $ $ Vested and expected to vest at June 30, 2015 $ $ Exercisable at June 30, 2015 $ $ Nine Months Ended June 30, 2015 Weighted- Average Shares Exercise Options (in thousands) Price Outstanding at October 1, 2014 $ Granted Exercised ) Forfeited/Expired ) Outstanding at June 30, 2015 $ The weighted-average fair value of options granted in the first quarter of fiscal 2015 was $16.39. No options were granted in the second and third quarters of fiscal 2015. The total intrinsic value of options exercised during the three and nine months ended June 30, 2015 was $0.4 million and $7.6 million, respectively. As of June 30, 2015, the unrecognized compensation cost related to stock options was $7.2 million which is expected to be recognized over a weighted-average period of 2.6 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 June 30, 2015, there was $25.5 million of total unrecognized compensation cost related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 2.4 years. A summary of the status of our restricted stock awards as of June 30, 2015 and changes in restricted stock outstanding during the nine months then ended is presented below: Nine Months Ended June 30, 2015 Weighted- Average Shares Grant-Date Restricted Stock Awards (in thousands) Fair Value Unvested at October 1, 2014 $ Granted Vested (1) ) Forfeited ) Unvested at June 30, 2015 $ (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 | 9 Months Ended |
Jun. 30, 2015 | |
Debt | |
Debt | 8. Debt At June 30, 2015 and September 30, 2014, we had the following unsecured long-term debt outstanding: Unamortized Discount and Principal Debt Issuance Costs June 30, September 30, June 30, September 30, 2015 2014 2015 2014 (in thousands) Unsecured senior notes issued July 21, 2009: Due July 21, 2015 $ $ $ $ Due July 21, 2016 Unsecured revolving credit facility issued May 25, 2012 — — Unsecured senior notes issued March 19, 2015: Due March 19, 2025 — — Less long-term debt due within one year Long-term debt $ $ $ $ We have $80 million senior unsecured fixed-rate notes outstanding at June 30, 2015 that mature over a period from July 2015 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 2015 and July 2016. Subsequent to June 30, 2015, we paid the $40 million due July 21, 2015. 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. 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, 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 each year, commencing on September 15, 2015. 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 yield method. 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. The majority of 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 .35 percent per annum. Based on our debt to total capitalization on June 30, 2015, 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 June 30, 2015, we were in compliance with all debt covenants. As of June 30, 2015, there were no specific borrowings against the line, but there were three letters of credit outstanding in the amount of $48.2 million. At June 30, 2015, we had $251.8 million available to borrow under our $300 million unsecured credit facility. One of the three outstanding letters of credit is a $21 million letter that supports an overdraft facility with a bank in an international location. Any short-term borrowing under this facility will be in the local currency with an interest rate that adjusts monthly based on local market rates. Given local currency considerations, the corresponding annual interest rates approach 30 percent. At June 30, 2015, 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 | 9 Months Ended |
Jun. 30, 2015 | |
Income Taxes | |
Income Taxes | 9. Income Taxes Our effective tax rate for the first nine months of fiscal 2015 and 2014 was 35.4 percent and 35.2 percent, respectively. Our effective tax rate for the three months ended June 30, 2015 and 2014 was 28.9 percent and 34.8 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 the tax benefit from the Internal Revenue Code Section 199 deduction for domestic production activities. The effective tax rate for the nine months ended June 30, 2015 was also impacted by a December 2014 tax law change which resulted in a reduction of the fiscal 2014 Internal Revenue Code Section 199 deduction for domestic production activities. In addition, the effective tax rate for the three months ended June 30, 2015 was impacted by a reduction in the deferred state income tax rate. 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 do not expect the increases or decreases to have a material effect on results of operations or financial position. We provided for uncertain tax positions of $7.2 million, including interest and penalties, during the nine months ended June 30, 2015 related to the previous disclosure of a possible increase in the reserve for uncertain tax positions of approximately $8.4 million to $11.0 million due to international tax matters. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2015 | |
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 $140.2 million are outstanding at June 30, 2015. Other than the matters described below, the Company is a party to various pending legal actions arising in the ordinary course of its business. 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. We have been 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. We can provide no assurances 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. However, we presently believe that the outcome of our discussions will not have a material adverse effect on the Company. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2015 | |
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 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 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 nine months ended June 30, 2015 and 2014 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2015 Contract Drilling: U.S. Land $ $ — $ $ Offshore — International Land — — Other ) Eliminations — ) ) — Total $ $ — $ $ Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2014 Contract Drilling: U.S. Land $ $ — $ $ Offshore — International Land — — Other ) Eliminations — ) ) — Total $ $ — $ $ Summarized financial information of our reportable segments for the three months ended June 30, 2015 and 2014 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2015 Contract Drilling: U.S. Land $ $ — $ $ Offshore — International Land — — Other ) Eliminations — ) ) — Total $ $ — $ $ Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2014 Contract Drilling: U.S. Land $ $ — $ $ Offshore — International Land — — Other ) Eliminations — ) ) — Total $ $ — $ $ 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 Nine Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Segment operating income $ $ $ $ Income from asset sales Corporate general and administrative costs and corporate depreciation ) ) ) ) Operating income Other income (expense): Interest and dividend income Interest expense ) ) ) ) Gain on sale of investment securities — — Other ) ) Total other income (expense) ) ) Income from continuing operations before income taxes $ $ $ $ The following table presents total assets by reportable segment: September 30, June 30, 2014 2015 (as adjusted) (in thousands) Total assets U.S. Land $ $ Offshore International Land Other Investments and corporate operations Total assets from continued operations Discontinued operations $ $ The following table presents revenues from external customers by country based on the location of service provided: Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Operating revenues United States $ $ $ $ Argentina Colombia Ecuador Other foreign Total $ $ $ $ |
Pensions and Other Post-retirem
Pensions and Other Post-retirement Benefits | 9 Months Ended |
Jun. 30, 2015 | |
Pensions and Other Post-retirement Benefits | |
Pensions and Other Post-retirement Benefits | 12. Pensions and Other Post-retirement Benefits The following provides information at June 30, 2015 and 2014 related to the Company-sponsored domestic defined benefit pension plan: Components of Net Periodic Benefit Cost Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Interest cost $ $ $ $ Expected return on plan assets ) ) ) ) Recognized net actuarial loss Settlement — — Net pension expense (benefit) $ $ ) $ $ ) Employer Contributions We contributed $2.0 million to the Pension Plan during the nine months ended June 30, 2015. We could make contributions for the remainder of fiscal 2015 to fund distributions in lieu of liquidating assets. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | 13. Supplemental Cash Flow Information Capital expenditures on the Consolidated Condensed Statements of Cash Flows do not include additions which have been incurred but not paid for as of the end of the period. The following table reconciles total capital expenditures incurred to total capital expenditures in the Consolidated Condensed Statements of Cash Flows: Nine Months Ended June 30, 2015 2014 (in thousands) Capital expenditures incurred $ $ Additions incurred prior year but paid for in current period Additions incurred but not paid for as of the end of the period ) ) Capital expenditures per Consolidated Condensed Statements of Cash Flows $ $ |
International Risk Factors
International Risk Factors | 9 Months Ended |
Jun. 30, 2015 | |
International Risk Factors | |
International Risk Factors | 14. 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 our customer’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. In January 2015, the Venezuelan government announced plans for a new foreign currency exchange system. We are monitoring the status of this change in Venezuela’s exchange control policy. 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 Stan
Recently Issued Accounting Standards | 9 Months Ended |
Jun. 30, 2015 | |
Recently Issued Accounting Standards | |
Recently Issued Accounting Standards | 15. Recently Issued 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. The new standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The provisions of ASU 2014-09 are effective for interim and annual periods beginning after December 15, 2017, and we have the option of using either a full retrospective or a modified retrospective approach when adopting this new standard. We are currently evaluating the alternative transition methods and the potential effects of the adoption of this update on our financial statements. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 9 Months Ended |
Jun. 30, 2015 | |
Guarantor and Non-Guarantor Financial Information | |
Guarantor and Non-Guarantor Financial Information | 16. Guarantor and Non-Guarantor Financial Information In March 2015, Helmerich & Payne International Drilling Co. (“the issuer”), a wholly-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 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 obligations under the notes. In connection with the notes, we are providing the following condensed consolidating financial information in accordance with the 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. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands) Three Months Ended June 30, 2015 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated 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 from continuing operations before income taxes ) Income tax provision ) ) — Income from continuing operations ) Loss from discontinued operations before income taxes — — ) — ) Income tax provision — — — — — Loss from discontinued operations — — ) — ) Net income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Three Months Ended June 30, 2015 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — ) — — ) Minimum pension liability adjustments, net — — Other comprehensive income (loss) ) — — ) Comprehensive income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands) Three Months Ended June 30, 2014 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated 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 ) Loss from discontinued operations before income taxes — — ) — ) Income tax provision — — — — — Loss from discontinued operations — — ) — ) Net income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Three Months Ended June 30, 2014 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized appreciation on securities, net — — — Reclassification of realized gains in net income, net — ) — — ) Minimum pension liability adjustments, net — — Other comprehensive income (loss) ) — — ) Comprehensive income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands) Nine Months Ended June 30, 2015 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated 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 from continuing operations before income taxes ) Income tax provision ) — Income from continuing operations ) Loss from discontinued operations before income taxes — — ) — ) Income tax provision — — ) — ) Loss from discontinued operations — — ) — ) Net income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2015 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — ) — — ) Minimum pension liability adjustments, net — — Other comprehensive income (loss) ) — — ) Comprehensive income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands) Nine Months Ended June 30, 2014 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated 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 $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2014 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized appreciation on securities, net — — — Reclassification of realized gains in net income, net — ) — — ) Minimum pension liability adjustments, net — — Other comprehensive income (loss) ) — — ) Comprehensive income $ $ $ $ ) $ CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) June 30, 2015 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ ) $ $ $ ) $ 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 — ) Preferred stock — — — — — Additional paid-in capital ) Retained earnings ) Accumulated other comprehensive income — ) Treasury stock, at cost ) — — — ) Total shareholders’ equity ) Total liabilities and shareholders’ equity $ $ $ $ ) $ CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) September 30, 2014, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ ) $ $ $ ) $ 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 — ) Treasury stock, at cost ) — — — ) Total shareholders’ equity ) Total liabilities and shareholders’ equity $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2015 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ $ $ $ $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Intercompany transfers ) — — — Proceeds from asset sales — Net cash provided by (used in) investing activities ) ) — ) FINANCING ACTIVITIES: Dividends paid ) — — — ) Intercompany transfers ) — — — Repurchase of common stock ) — — — ) Proceeds from senior notes, net of discount — — — Proceeds on short-term debt — — — Payments on short-term debt — — ) — ) Net increase in bank overdraft — — — 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 $ ) $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2014 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ ) $ $ $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Intercompany transfers ) — — — Proceeds from sale of investment securities — — — Proceeds from asset sales — Net cash provided by (used in) investing activities ) ) — ) FINANCING ACTIVITIES: Dividends paid ) — — — ) Intercompany transfers ) — — — 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 $ ) $ $ $ $ |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation | |
Schedule of restatement of financials from adoption of accounting principle change | As a result of the adoption, the September 30, 2014 Consolidated Condensed Balance Sheet is restated as follows: Effect of Previously Accounting Reported Principle Adoption Adjusted (in thousands) Consolidated Condensed Balance Sheet Prepaid expenses and other $ $ ) $ Total current assets ) Other assets ) Total assets ) Long-term debt due within one year less unamortized discount and debt issuance costs ) Total current liabilities ) Long-term debt less unamortized discount and debt issuance costs ) Total noncurrent liabilities ) Total liabilities and shareholders’ equity ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Earnings per Share | |
Computation of basic and diluted earnings per share | Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Numerator: Income from continuing operations $ $ $ $ Loss from discontinued operations ) ) ) ) Net income 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 from continuing operations $ $ $ $ Income from discontinued operations — — — — Net income $ $ $ $ Diluted earnings per common share: Income from continuing operations $ $ $ $ Income from discontinued operations — — — — Net income $ $ $ $ |
Shares attributable to outstanding equity awards excluded from the calculation of diluted earnings per share | Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Shares excluded from calculation of diluted earnings per share — Weighted-average price per share $ $ — $ $ |
Financial Instruments and Fai28
Financial Instruments and Fair Value Measurement (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 $ $ $ — $ Equity securities September 30, 2014 $ $ $ — $ |
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 June 30, 2015: 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 $ $ $ — $ — Equity securities — — Other current assets — Other assets — — Total assets measured at fair value $ $ $ $ — |
Summary of supplemental fair value information about long-term fixed-rate debt | September 30, June 30, 2014 2015 (as adjusted) (in millions) Carrying value of long-term fixed-rate debt $ $ Fair value of long-term fixed-rate debt $ $ |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
SHAREHOLDERS' EQUITY | |
Schedule of accumulated other comprehensive income (loss) | June 30, September 30, 2015 2014 (in thousands) Pre-tax amounts: Unrealized appreciation on securities $ $ Unrecognized actuarial loss ) ) $ $ After-tax amounts: Unrealized appreciation on securities $ $ Unrecognized actuarial loss ) ) $ $ |
Summary of the changes in accumulated other comprehensive income (loss), net of tax, by component | Three Months Ended June 30, 2015 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balances at April 1, 2015 $ $ ) $ Other comprehensive loss before reclassifications ) — ) Amounts reclassified from accumulated other comprehensive income (loss) — Net current-period other comprehensive income (loss) ) ) Balances at June 30, 2015 $ $ ) $ Nine Months Ended June 30, 2015 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balances at October 1, 2014 $ $ ) $ Other comprehensive loss before reclassifications ) — ) Amounts reclassified from accumulated other comprehensive income (loss) — Net current-period other comprehensive income (loss) ) ) Balances at June 30, 2015 $ $ ) $ |
Schedule of accumulated other comprehensive income (loss) components which were reclassified to the Condensed Consolidated Statement of Income | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Details About Accumulated Other Comprehensive Income Three Months Ended June 30, Nine Months Ended June 30, Affected Line Item in the Condensed Consolidated (Loss) Components 2015 2014 2015 2014 Statement of Income (in thousands) (in thousands) Unrealized gains on available-for-sale securities $ — $ ) $ — $ ) Gain on sale of investment securities — — Income tax provision $ — $ ) $ — $ ) Net of tax Defined Benefit Pension Items Amortization of net actuarial loss $ $ $ $ General and administrative ) ) ) ) Income tax provision $ $ $ $ Net of tax Total reclassifications for the period $ $ ) $ $ ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Stock-Based Compensation | |
Summary of compensation cost for stock-based payment arrangements recognized in general and administrative expense | Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Compensation expense Stock options $ $ $ $ Restricted stock $ $ $ $ |
Summary of weighted-average assumptions utilized in determining the fair value of options granted | 2015 2014 Risk-free interest rate % % Expected stock volatility % % Dividend yield % % Expected term (in years) |
Summary of stock option activity | Three Months Ended June 30, 2015 Weighted- Weighted- Average Aggregate Average Remaining Intrinsic Shares Exercise Contractual Term Value Options (in thousands) Price (in years) (in millions) Outstanding at April 1, 2015 $ Granted — — Exercised ) Forfeited/Expired — — Outstanding at June 30, 2015 $ $ Vested and expected to vest at June 30, 2015 $ $ Exercisable at June 30, 2015 $ $ Nine Months Ended June 30, 2015 Weighted- Average Shares Exercise Options (in thousands) Price Outstanding at October 1, 2014 $ Granted Exercised ) Forfeited/Expired ) Outstanding at June 30, 2015 $ |
Summary of restricted stock awards and changes in restricted stock outstanding | Nine Months Ended June 30, 2015 Weighted- Average Shares Grant-Date Restricted Stock Awards (in thousands) Fair Value Unvested at October 1, 2014 $ Granted Vested (1) ) Forfeited ) Unvested at June 30, 2015 $ (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) | 9 Months Ended |
Jun. 30, 2015 | |
Debt | |
Components of unsecured long-term debt outstanding | Unamortized Discount and Principal Debt Issuance Costs June 30, September 30, June 30, September 30, 2015 2014 2015 2014 (in thousands) Unsecured senior notes issued July 21, 2009: Due July 21, 2015 $ $ $ $ Due July 21, 2016 Unsecured revolving credit facility issued May 25, 2012 — — Unsecured senior notes issued March 19, 2015: Due March 19, 2025 — — Less long-term debt due within one year Long-term debt $ $ $ $ |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Segment Information | |
Summary of financial information of the entity's reportable segments for continuing operations | Summarized financial information of our reportable segments for the nine months ended June 30, 2015 and 2014 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2015 Contract Drilling: U.S. Land $ $ — $ $ Offshore — International Land — — Other ) Eliminations — ) ) — Total $ $ — $ $ Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2014 Contract Drilling: U.S. Land $ $ — $ $ Offshore — International Land — — Other ) Eliminations — ) ) — Total $ $ — $ $ Summarized financial information of our reportable segments for the three months ended June 30, 2015 and 2014 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2015 Contract Drilling: U.S. Land $ $ — $ $ Offshore — International Land — — Other ) Eliminations — ) ) — Total $ $ — $ $ Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2014 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 | Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Segment operating income $ $ $ $ Income from asset sales Corporate general and administrative costs and corporate depreciation ) ) ) ) Operating income Other income (expense): Interest and dividend income Interest expense ) ) ) ) Gain on sale of investment securities — — Other ) ) Total other income (expense) ) ) Income from continuing operations before income taxes $ $ $ $ |
Schedule of total assets by reportable segments | September 30, June 30, 2014 2015 (as adjusted) (in thousands) Total assets U.S. Land $ $ Offshore International Land Other Investments and corporate operations Total assets from continued operations Discontinued operations $ $ |
Schedule of revenues from external customers by country based on the location of service provided | Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Operating revenues United States $ $ $ $ Argentina Colombia Ecuador Other foreign Total $ $ $ $ |
Pensions and Other Post-retir33
Pensions and Other Post-retirement Benefits (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Pensions and Other Post-retirement Benefits | |
Schedule of components of net periodic benefit cost | Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands) (in thousands) Interest cost $ $ $ $ Expected return on plan assets ) ) ) ) Recognized net actuarial loss Settlement — — Net pension expense (benefit) $ $ ) $ $ ) |
Supplemental Cash Flow Inform34
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Information | |
Schedule of supplement cash flow information | Nine Months Ended June 30, 2015 2014 (in thousands) Capital expenditures incurred $ $ Additions incurred prior year but paid for in current period Additions incurred but not paid for as of the end of the period ) ) Capital expenditures per Consolidated Condensed Statements of Cash Flows $ $ |
Guarantor and Non-Guarantor F35
Guarantor and Non-Guarantor Financial Information (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Guarantor and Non-Guarantor Financial Information | |
Schedule of Consolidated Condensed Statements of Income | CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands) Three Months Ended June 30, 2015 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated 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 from continuing operations before income taxes ) Income tax provision ) ) — Income from continuing operations ) Loss from discontinued operations before income taxes — — ) — ) Income tax provision — — — — — Loss from discontinued operations — — ) — ) Net income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands) Three Months Ended June 30, 2014 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated 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 ) Loss from discontinued operations before income taxes — — ) — ) Income tax provision — — — — — Loss from discontinued operations — — ) — ) Net income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands) Nine Months Ended June 30, 2015 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated 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 from continuing operations before income taxes ) Income tax provision ) — Income from continuing operations ) Loss from discontinued operations before income taxes — — ) — ) Income tax provision — — ) — ) Loss from discontinued operations — — ) — ) Net income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands) Nine Months Ended June 30, 2014 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated 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 Statement of Comprehensive Income | CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Three Months Ended June 30, 2015 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — ) — — ) Minimum pension liability adjustments, net — — Other comprehensive income (loss) ) — — ) Comprehensive income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Three Months Ended June 30, 2014 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized appreciation on securities, net — — — Reclassification of realized gains in net income, net — ) — — ) Minimum pension liability adjustments, net — — Other comprehensive income (loss) ) — — ) Comprehensive income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2015 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — ) — — ) Minimum pension liability adjustments, net — — Other comprehensive income (loss) ) — — ) Comprehensive income $ $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2014 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ $ $ $ ) $ Other comprehensive income (loss), net of income taxes: Unrealized appreciation 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 | CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) June 30, 2015 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ ) $ $ $ ) $ 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 — ) Preferred stock — — — — — Additional paid-in capital ) Retained earnings ) Accumulated other comprehensive income — ) Treasury stock, at cost ) — — — ) Total shareholders’ equity ) Total liabilities and shareholders’ equity $ $ $ $ ) $ CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) September 30, 2014, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ ) $ $ $ ) $ 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 — ) Treasury stock, at cost ) — — — ) Total shareholders’ equity ) Total liabilities and shareholders’ equity $ $ $ $ ) $ |
Schedule of Consolidated Condensed Statements of Cash Flows | CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2015 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ $ $ $ $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Intercompany transfers ) — — — Proceeds from asset sales — Net cash provided by (used in) investing activities ) ) — ) FINANCING ACTIVITIES: Dividends paid ) — — — ) Intercompany transfers ) — — — Repurchase of common stock ) — — — ) Proceeds from senior notes, net of discount — — — Proceeds on short-term debt — — — Payments on short-term debt — — ) — ) Net increase in bank overdraft — — — 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 $ ) $ $ $ ) $ CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2014 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ ) $ $ $ INVESTING ACTIVITIES: Capital expenditures ) ) ) — ) Intercompany transfers ) — — — Proceeds from sale of investment securities — — — Proceeds from asset sales — Net cash provided by (used in) investing activities ) ) — ) FINANCING ACTIVITIES: Dividends paid ) — — — ) Intercompany transfers ) — — — 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 $ ) $ $ $ $ |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Thousands | Mar. 31, 2015item | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Sep. 30, 2014USD ($) |
CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||
Prepaid expenses and other | $ 95,327 | $ 95,327 | $ 80,912 | |||
Total current assets | 1,501,691 | 1,501,691 | 1,277,001 | |||
Other assets | 43,839 | 43,839 | 18,809 | |||
Total assets | 7,335,817 | 7,335,817 | 6,720,998 | |||
Long-term debt due within one year less unamortized debt issuance costs | 39,157 | 39,157 | 39,635 | |||
Total current liabilities | 346,503 | 346,503 | 507,161 | |||
Long-term debt less unamortized discount and debt issuance costs | 532,388 | 532,388 | 39,502 | |||
Total noncurrent liabilities | 1,967,805 | 1,967,805 | 1,322,860 | |||
Total liabilities and shareholders' equity | 7,335,817 | 7,335,817 | 6,720,998 | |||
Early termination revenue | 84,500 | $ 500 | 179,600 | $ 10,300 | ||
Abandonments | $ 1,300 | $ 1,500 | $ 13,500 | $ 5,200 | ||
Number of SCR powered FlexRigs decommissioned | item | 17 | |||||
Number of idle FlexRigs1 decommissioned | item | 6 | |||||
Number of idle FlexRigs2 decommissioned | item | 11 | |||||
Previously Reported | ||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||
Prepaid expenses and other | 81,277 | |||||
Total current assets | 1,277,366 | |||||
Other assets | 19,307 | |||||
Total assets | 6,721,861 | |||||
Long-term debt due within one year less unamortized debt issuance costs | 40,000 | |||||
Total current liabilities | 507,526 | |||||
Long-term debt less unamortized discount and debt issuance costs | 40,000 | |||||
Total noncurrent liabilities | 1,323,358 | |||||
Total liabilities and shareholders' equity | 6,721,861 | |||||
Effect of Accounting Principle Change | ||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||
Prepaid expenses and other | (365) | |||||
Total current assets | (365) | |||||
Other assets | (498) | |||||
Total assets | (863) | |||||
Long-term debt due within one year less unamortized debt issuance costs | (365) | |||||
Total current liabilities | (365) | |||||
Long-term debt less unamortized discount and debt issuance costs | (498) | |||||
Total noncurrent liabilities | (498) | |||||
Total liabilities and shareholders' equity | $ (863) |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||||
Income from continuing operations | $ 90,887 | $ 192,290 | $ 443,480 | $ 540,061 |
Loss from discontinued operations | (27) | (11) | (41) | (30) |
NET INCOME | 90,860 | 192,279 | 443,439 | 540,031 |
Adjustment for basic earnings per share: | ||||
Earnings allocated to unvested shareholders | (558) | (1,134) | (2,773) | (3,160) |
Numerator for basic earnings per share: | ||||
From continuing operations | 90,329 | 191,156 | 440,707 | 536,901 |
From discontinued operations | (27) | (11) | (41) | (30) |
Net income (loss) attributable to parent, basic | 90,302 | 191,145 | 440,666 | 536,871 |
Adjustment for diluted earnings per share: | ||||
Effect of reallocating undistributed earnings of unvested shareholders | 1 | 7 | 10 | 25 |
Numerator for diluted earnings per share: | ||||
From continuing operations | 90,330 | 191,163 | 440,717 | 536,926 |
From discontinued operations | (27) | (11) | (41) | (30) |
Net income (loss) attributable to parent, diluted | $ 90,303 | $ 191,152 | $ 440,676 | $ 536,896 |
Denominator: | ||||
Denominator for basic earnings per share - weighted-average shares | 107,652 | 108,137 | 107,759 | 107,657 |
Effect of dilutive shares from stock options and restricted stock (in shares) | 817 | 1,148 | 812 | 1,429 |
Denominator for diluted earnings per share - adjusted weighted-average shares | 108,469 | 109,285 | 108,571 | 109,086 |
Basic earnings per common share: | ||||
Income from continuing operations (in dollars per share) | $ 0.84 | $ 1.77 | $ 4.09 | $ 4.99 |
Net income (in dollars per share) | 0.84 | 1.77 | 4.09 | 4.99 |
Diluted earnings per common share: | ||||
Income from continuing operations (in dollars per share) | 0.83 | 1.75 | 4.06 | 4.92 |
Net income (in dollars per share) | $ 0.83 | $ 1.75 | $ 4.06 | $ 4.92 |
Outstanding equity awards | ||||
Shares excluded from calculation of diluted earnings per share | 592 | 667 | 256 | |
Weighted-average price per share (in dollars per share) | $ 73.36 | $ 72.85 | $ 79.67 |
Financial Instruments and Fai38
Financial Instruments and Fair Value Measurement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
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 | $ 13,900 | $ 13,900 | $ 14,300 | ||
Equity securities | |||||
Available-for-sale securities | |||||
Cost | 64,462 | 64,462 | 64,462 | ||
Gross Unrealized Gains | 81,592 | 81,592 | 157,838 | ||
Estimated Fair Value | 146,054 | 146,054 | $ 222,300 | ||
Equity available-for-sale securities sold, fair value | $ 0 | $ 25,900 | $ 0 | $ 49,200 | |
Total gross realized gain on such sales of available-for-sale securities | $ 23,900 | $ 45,200 |
Financial Instruments and Fai39
Financial Instruments and Fair Value Measurement (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Supplemental fair value information about long-term fixed-rate debt | ||
Carrying value of long-term fixed-rate debt | $ 571,500 | $ 79,000 |
Fixed-rate debt | 580,000 | 80,000 |
Unsecured senior notes issued July 21, 2009 | ||
Supplemental fair value information about long-term fixed-rate debt | ||
Fixed-rate debt | 80,000 | |
Unsecured senior notes issued March 19, 2015 | ||
Supplemental fair value information about long-term fixed-rate debt | ||
Fixed-rate debt | 500,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis | ||
Assets: | ||
Cash and cash equivalents | 770,918 | |
Equity securities | 146,054 | |
Other current assets | 36,193 | |
Other assets | 2,000 | |
Total assets measured at fair value | 955,165 | |
Significant Other Observable Inputs (Level 2) | ||
Supplemental fair value information about long-term fixed-rate debt | ||
Fair value of long-term fixed-rate debt | 592,500 | $ 84,300 |
Significant Other Observable Inputs (Level 2) | Recurring basis | ||
Assets: | ||
Other current assets | 250 | |
Total assets measured at fair value | 250 | |
Total Measure at Fair Value | Recurring basis | ||
Assets: | ||
Cash and cash equivalents | 770,918 | |
Equity securities | 146,054 | |
Other current assets | 36,443 | |
Other assets | 2,000 | |
Total assets measured at fair value | $ 955,415 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | |
Repurchase of shares | |||
Repurchase of common stock (in shares) | 810,097 | 0 | |
Aggregate cost of treasury shares purchase | $ 59,654 | ||
Pre-tax amounts: | |||
Accumulated other comprehensive income (loss) before tax | 59,115 | $ 134,433 | |
After-tax amounts: | |||
Accumulated other comprehensive income | $ 36,962 | 83,126 | $ 40,072 |
Maximum | |||
Repurchase of shares | |||
Number of common shares authorized to be repurchased | 4,000,000 | ||
Unrealized Appreciation (Depreciation) on Available-for-sale Securities | |||
Pre-tax amounts: | |||
Accumulated other comprehensive income (loss) before tax | $ 81,592 | 157,838 | |
After-tax amounts: | |||
Accumulated other comprehensive income | 50,664 | 97,418 | 53,971 |
Defined Benefit Pension Plan | |||
Pre-tax amounts: | |||
Accumulated other comprehensive income (loss) before tax | (22,477) | (23,405) | |
After-tax amounts: | |||
Accumulated other comprehensive income | $ (13,702) | $ (14,292) | $ (13,899) |
Shareholders' Equity (Details 2
Shareholders' Equity (Details 2) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Changes in accumulated other comprehensive income (loss), net of tax, by component | ||
Balance | $ 40,072 | $ 83,126 |
Other comprehensive loss before reclassifications | (3,307) | (46,754) |
Amounts reclassified from accumulated other comprehensive income (loss) | 197 | 590 |
Net current-period other comprehensive income (loss) | (3,110) | (46,164) |
Balance | 36,962 | 36,962 |
Unrealized Appreciation (Depreciation) on Available-for-sale Securities | ||
Changes in accumulated other comprehensive income (loss), net of tax, by component | ||
Balance | 53,971 | 97,418 |
Other comprehensive loss before reclassifications | (3,307) | (46,754) |
Net current-period other comprehensive income (loss) | (3,307) | (46,754) |
Balance | 50,664 | 50,664 |
Defined Benefit Pension Plan | ||
Changes in accumulated other comprehensive income (loss), net of tax, by component | ||
Balance | (13,899) | (14,292) |
Amounts reclassified from accumulated other comprehensive income (loss) | 197 | 590 |
Net current-period other comprehensive income (loss) | 197 | 590 |
Balance | $ (13,702) | $ (13,702) |
Shareholders' Equity (Details 3
Shareholders' Equity (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated other comprehensive income (loss) components which were reclassified to the Condensed Consolidated Statement of Income | ||||
Gain on sale of investment securities | $ (23,882) | $ (45,234) | ||
General and administrative | $ 29,404 | 34,222 | $ 97,213 | 100,896 |
Income tax provision | 36,956 | 102,788 | 243,525 | 293,389 |
Net of tax | (90,860) | (192,279) | (443,439) | (540,031) |
Reclassification out of AOCI | ||||
Accumulated other comprehensive income (loss) components which were reclassified to the Condensed Consolidated Statement of Income | ||||
Net of tax | 197 | (14,708) | 590 | (27,300) |
Reclassification out of AOCI | Unrealized Appreciation (Depreciation) on Available-for-sale Securities | ||||
Accumulated other comprehensive income (loss) components which were reclassified to the Condensed Consolidated Statement of Income | ||||
Gain on sale of investment securities | (23,882) | (45,234) | ||
Income tax provision | 9,029 | 17,497 | ||
Net of tax | (14,853) | (27,737) | ||
Reclassification out of AOCI | Defined Benefit Pension Plan | ||||
Accumulated other comprehensive income (loss) components which were reclassified to the Condensed Consolidated Statement of Income | ||||
General and administrative | 309 | 228 | 927 | 686 |
Income tax provision | (112) | (83) | (337) | (249) |
Net of tax | $ 197 | $ 145 | $ 590 | $ 437 |
Cash Dividends (Details)
Cash Dividends (Details) - $ / shares | Jun. 03, 2015 | Jun. 01, 2015 | Mar. 04, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Cash Dividends | |||||||
Cash dividends declared, per share (in dollars per share) | $ 0.6875 | $ 0.6875 | $ 0.6875 | $ 0.6875 | $ 2.0625 | $ 1.9375 | |
Cash dividend paid, per share (in dollars per share) | $ 0.6875 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2015USD ($)$ / sharesshares | Mar. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)plan$ / sharesshares | Jun. 30, 2014USD ($) | |
Common-stock based award plan | ||||||
Number of prior equity plans | plan | 1 | |||||
Compensation expense (in dollars) | $ | $ 6,041 | $ 8,285 | $ 19,120 | $ 21,089 | ||
Stock options | ||||||
Common-stock based award plan | ||||||
The period from the grant date after which options expire | 10 years | |||||
Compensation expense (in dollars) | $ | $ 1,930 | 3,758 | $ 6,900 | $ 9,400 | ||
Weighted-average assumptions utilized in determining the fair value of options | ||||||
Risk-free interest rate (as a percent) | 1.70% | 1.60% | ||||
Expected stock volatility (as a percent) | 36.90% | 52.60% | ||||
Dividend yield (as a percent) | 3.90% | 3.10% | ||||
Expected term | 5 years 6 months | 5 years 6 months | ||||
Options | ||||||
Options outstanding at the beginning of the period (in shares) | shares | 2,909,000 | 2,629,000 | 2,629,000 | |||
Granted (in shares) | shares | 0 | 0 | 419,585 | |||
Exercised (in shares) | shares | (12,000) | (136,000) | ||||
Forfeited/Expired (in shares) | shares | (16,000) | |||||
Option outstanding at the end of the period (in shares) | shares | 2,897,000 | 2,909,000 | 2,897,000 | |||
Vested and expected to vest at the end of the period (in shares) | shares | 2,890,000 | 2,890,000 | ||||
Exercisable at the end of the period (in shares) | shares | 2,135,000 | 2,135,000 | ||||
Weighted-Average Exercise Price | ||||||
Outstanding at the beginning of the period (in dollars per share) | $ 47.91 | $ 43.46 | $ 43.46 | |||
Granted (in dollars per share) | 68.83 | |||||
Exercised (in dollars per share) | 39.06 | 23.11 | ||||
Forfeited/Expired (in dollars per share) | 68.46 | |||||
Outstanding at the end of the period (in dollars per share) | 47.94 | $ 47.91 | 47.94 | |||
Vested and expected to vest at the end of the period (in dollars per share) | 47.90 | 47.90 | ||||
Exercisable at the end of the period (in dollars per share) | $ 41.23 | $ 41.23 | ||||
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 3 months 18 days | |||||
Aggregate Intrinsic Value | ||||||
Outstanding at the end of the period (in dollars) | $ | $ 67,400 | $ 67,400 | ||||
Vested and expected to vest at the end of the period (in dollars) | $ | 67,400 | 67,400 | ||||
Exercisable at the end of the period (in dollars) | $ | 63,200 | 63,200 | ||||
Weighted-average fair value of options granted (in dollars per share) | $ 16.39 | |||||
Total intrinsic value of options exercised (in dollars) | $ | 400 | 7,600 | ||||
Unrecognized compensation cost (in dollars) | $ | 7,200 | $ 7,200 | ||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 7 months 6 days | |||||
Restricted stock | ||||||
Common-stock based award plan | ||||||
Compensation expense (in dollars) | $ | 4,111 | $ 4,527 | $ 12,220 | $ 11,689 | ||
Aggregate Intrinsic Value | ||||||
Unrecognized compensation cost (in dollars) | $ | $ 25,500 | $ 25,500 | ||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 4 months 24 days | |||||
Restricted stock awards activity, shares | ||||||
Unvested at the beginning of the period (in shares) | shares | 634,000 | 634,000 | ||||
Granted (in shares) | shares | 275,250 | |||||
Vested (in shares) | shares | (214,000) | |||||
Forfeited/Expired (in shares) | shares | (21,000) | |||||
Unvested at the end of the period (in shares) | shares | 674,000 | 674,000 | ||||
Restricted stock awards activity, weighted average grant date fair value | ||||||
Unvested at the beginning of the period (in dollars per share) | $ 64.03 | $ 64.03 | ||||
Granted (in dollars per share) | 68.83 | |||||
Vested (in dollars per share) | 54.18 | |||||
Forfeited/Expired (in dollars per share) | 62.70 | |||||
Unvested at the end of the period (in dollars per share) | $ 67.04 | $ 67.04 | ||||
Restricted stock | Minimum | ||||||
Common-stock based award plan | ||||||
Vesting period | 3 years | |||||
Restricted stock | Maximum | ||||||
Common-stock based award plan | ||||||
Vesting period | 6 years |
Debt (Details)
Debt (Details) $ in Thousands | Mar. 19, 2015USD ($) | Jul. 21, 2015USD ($) | Jun. 30, 2015USD ($)item | Sep. 30, 2014USD ($) |
Debt | ||||
Unsecured long-term debt | $ 580,000 | $ 80,000 | ||
Less long-term debt due within one year | 40,000 | 40,000 | ||
Long-term debt | 540,000 | 40,000 | ||
Unamortized discount and debt issuance costs | 8,455 | 863 | ||
Less unamortized debt issuance costs | 843 | 365 | ||
Unamortized discount and debt issuance costs, noncurrent | $ 7,612 | 498 | ||
Issued to support international operations | ||||
Debt | ||||
Number of letters of credit outstanding | item | 2 | |||
Letters of credit outstanding/issued | $ 12,000 | |||
Unsecured revolving credit facility issued May 25, 2012 | ||||
Debt | ||||
Unamortized discount and debt issuance costs | 416 | 581 | ||
Unsecured revolving credit facility mature May 25, 2017 | ||||
Debt | ||||
Borrowing amount | $ 300,000 | |||
Commitment fee (as a percent) | 0.15% | |||
Borrowing amount outstanding | $ 0 | |||
Available borrowing capacity excluding letters of credit transaction | $ 251,800 | |||
Unsecured revolving credit facility mature May 25, 2017 | Maximum | ||||
Debt | ||||
Funded leverage ratio (as a percent) | 50.00% | |||
Commitment fee (as a percent) | 0.35% | |||
Unsecured revolving credit facility mature May 25, 2017 | Minimum | ||||
Debt | ||||
Interest coverage ratio | 3 | |||
Commitment fee (as a percent) | 0.15% | |||
Unsecured revolving credit facility mature May 25, 2017 | London Interbank Offered Rate (LIBOR) | ||||
Debt | ||||
LIBOR spread on borrowings (as a percent) | 1.125% | |||
Unsecured revolving credit facility mature May 25, 2017 | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Debt | ||||
LIBOR spread on borrowings (as a percent) | 1.75% | |||
Unsecured revolving credit facility mature May 25, 2017 | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Debt | ||||
LIBOR spread on borrowings (as a percent) | 1.125% | |||
Unsecured revolving credit facility mature May 25, 2017 | Letter of credit | ||||
Debt | ||||
Available borrowing capacity to use for letters of credit | $ 100,000 | |||
Number of letters of credit outstanding | item | 3 | |||
Letters of credit outstanding/issued | $ 48,200 | |||
Unsecured revolving credit facility mature May 25, 2017 | Letter of credit supporting an overdraft facility | ||||
Debt | ||||
Letters of credit outstanding/issued | $ 21,000 | |||
Number of letters of credit outstanding with overdraft facility | item | 1 | |||
Annual interest rate on line of credit overdraft facility | 30.00% | |||
Unsecured senior notes issued July 21, 2009 | ||||
Debt | ||||
Unsecured long-term debt | $ 80,000 | |||
Long-term debt stated interest rate percentage | 6.10% | |||
Annual principal repayments | $ 40,000 | |||
Unsecured senior notes issued July 21, 2009 | Subsequent Event. | ||||
Debt | ||||
Repayment of debt | $ 40,000 | |||
Unsecured senior notes issued July 21, 2009 | Maximum | ||||
Debt | ||||
Funded leverage ratio (as a percent) | 55.00% | |||
Unsecured senior notes issued July 21, 2009 | Minimum | ||||
Debt | ||||
Interest coverage ratio | 2.50 | |||
Due July 21, 2015 | ||||
Debt | ||||
Unsecured long-term debt | $ 40,000 | 40,000 | ||
Unamortized discount and debt issuance costs | 77 | 141 | ||
Due July 21, 2016 | ||||
Debt | ||||
Unsecured long-term debt | 40,000 | 40,000 | ||
Unamortized discount and debt issuance costs | 78 | $ 141 | ||
Unsecured senior notes issued March 19, 2015 | ||||
Debt | ||||
Unsecured long-term debt | 500,000 | |||
Unamortized discount and debt issuance costs | $ 7,884 | |||
Long-term debt stated interest rate percentage | 4.65% | |||
Debt issued | $ 500,000 | |||
Term of debt | 10 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Taxes | ||||
Effective income tax rate (as a percent) | 28.90% | 34.80% | 35.40% | 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% | |||
Uncertain tax positions | ||||
Uncertain tax positions including interest and penalties | $ 7.2 | $ 7.2 | ||
Reasonably possible increase in the reserve for uncertain tax positions, low range | 8.4 | 8.4 | ||
Possible increase in the reserve for uncertain tax positions, high range | $ 11 | $ 11 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2015USD ($) |
Commitments and Contingencies | |
Purchase orders outstanding for drilling equipment | $ 140.2 |
Commitments and Contingencies | |
Gain contingencies recognized in consolidated financial statements | $ 0 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment information | ||||
Sales | $ 659,694 | $ 952,087 | $ 2,599,331 | $ 2,734,669 |
Segment Operating Income (Loss) | 150,796 | 293,178 | 747,763 | 845,703 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income | 150,796 | 293,178 | 747,763 | 845,703 |
Income from asset sales | 1,784 | 2,128 | 8,854 | 11,890 |
Corporate general and administrative costs and corporate depreciation | (19,800) | (23,394) | (64,846) | (66,308) |
Operating income from continuing operations | 132,780 | 271,912 | 691,771 | 791,285 |
Other income (expense): | ||||
Interest and dividend income | 1,602 | 373 | 4,436 | 1,316 |
Interest expense | (6,258) | (1,435) | (9,290) | (4,354) |
Gain on sale of investment securities | 23,882 | 45,234 | ||
Other | (281) | 346 | 88 | (31) |
Total other income (expense) | (4,937) | 23,166 | (4,766) | 42,165 |
Income from continuing operations before income taxes | 127,843 | 295,078 | 687,005 | 833,450 |
Other | ||||
Segment information | ||||
Sales | 3,208 | 3,987 | 11,129 | 9,900 |
Segment Operating Income (Loss) | (2,324) | (1,490) | (7,440) | (6,739) |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income | (2,324) | (1,490) | (7,440) | (6,739) |
Operating segment | ||||
Segment information | ||||
Sales | 659,898 | 952,302 | 2,599,991 | 2,735,315 |
Operating segment | Other | ||||
Segment information | ||||
Sales | 3,412 | 4,202 | 11,789 | 10,546 |
Inter-Segment | ||||
Segment information | ||||
Sales | (204) | (215) | (660) | (646) |
Inter-Segment | Other | ||||
Segment information | ||||
Sales | 204 | 215 | 660 | 646 |
Contract Drilling: | ||||
Segment information | ||||
Sales | 656,486 | 948,100 | 2,588,202 | 2,724,769 |
Segment Operating Income (Loss) | 153,120 | 294,668 | 755,203 | 852,442 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income | 153,120 | 294,668 | 755,203 | 852,442 |
Contract Drilling: | U.S. Land | ||||
Segment information | ||||
Sales | 494,615 | 802,279 | 2,103,125 | 2,275,744 |
Segment Operating Income (Loss) | 121,734 | 271,102 | 664,722 | 767,116 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income | 121,734 | 271,102 | 664,722 | 767,116 |
Contract Drilling: | Offshore | ||||
Segment information | ||||
Sales | 55,673 | 64,554 | 187,772 | 186,884 |
Segment Operating Income (Loss) | 14,716 | 16,996 | 55,269 | 54,837 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income | 14,716 | 16,996 | 55,269 | 54,837 |
Contract Drilling: | International Land | ||||
Segment information | ||||
Sales | 106,198 | 81,267 | 297,305 | 262,141 |
Segment Operating Income (Loss) | 16,670 | 6,570 | 35,212 | 30,489 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income | 16,670 | 6,570 | 35,212 | 30,489 |
Contract Drilling: | Operating segment | ||||
Segment information | ||||
Sales | 656,486 | 948,100 | 2,588,202 | 2,724,769 |
Contract Drilling: | Operating segment | U.S. Land | ||||
Segment information | ||||
Sales | 494,615 | 802,279 | 2,103,125 | 2,275,744 |
Contract Drilling: | Operating segment | Offshore | ||||
Segment information | ||||
Sales | 55,673 | 64,554 | 187,772 | 186,884 |
Contract Drilling: | Operating segment | International Land | ||||
Segment information | ||||
Sales | $ 106,198 | $ 81,267 | $ 297,305 | $ 262,141 |
Segment Information (Details 2)
Segment Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Segment information | |||||
Total assets | $ 7,335,817 | $ 7,335,817 | $ 6,720,998 | ||
Operating revenues | 659,694 | $ 952,087 | 2,599,331 | $ 2,734,669 | |
United States | |||||
Segment information | |||||
Operating revenues | 547,043 | 864,833 | 2,281,961 | 2,454,299 | |
Argentina | |||||
Segment information | |||||
Operating revenues | 54,784 | 26,468 | 119,347 | 79,522 | |
Colombia | |||||
Segment information | |||||
Operating revenues | 18,100 | 16,953 | 64,454 | 64,747 | |
Ecuador | |||||
Segment information | |||||
Operating revenues | 7,242 | 17,293 | 28,856 | 51,915 | |
Other foreign | |||||
Segment information | |||||
Operating revenues | 32,525 | 26,540 | 104,713 | 84,186 | |
Continued operations | |||||
Segment information | |||||
Total assets | 7,327,995 | 7,327,995 | 6,713,792 | ||
Discontinued operations | |||||
Segment information | |||||
Total assets | 7,822 | 7,822 | 7,206 | ||
Other | |||||
Segment information | |||||
Operating revenues | 3,208 | 3,987 | 11,129 | 9,900 | |
Operating segment | |||||
Segment information | |||||
Total assets | 6,281,320 | 6,281,320 | 6,027,096 | ||
Operating revenues | 659,898 | 952,302 | 2,599,991 | 2,735,315 | |
Operating segment | U.S. Land | |||||
Segment information | |||||
Total assets | 5,398,402 | 5,398,402 | 5,259,947 | ||
Operating segment | Offshore | |||||
Segment information | |||||
Total assets | 127,253 | 127,253 | 137,101 | ||
Operating segment | International Land | |||||
Segment information | |||||
Total assets | 716,549 | 716,549 | 589,968 | ||
Operating segment | Other | |||||
Segment information | |||||
Total assets | 39,116 | 39,116 | 40,080 | ||
Operating revenues | 3,412 | $ 4,202 | 11,789 | $ 10,546 | |
Investments and corporate operations | |||||
Segment information | |||||
Total assets | $ 1,046,675 | $ 1,046,675 | $ 686,696 |
Pensions and Other Post-retir50
Pensions and Other Post-retirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Components of Net Periodic Benefit Cost | ||||
Interest cost | $ 1,171 | $ 1,201 | $ 3,513 | $ 3,603 |
Expected return on plan assets | (1,743) | (1,664) | (5,229) | (4,992) |
Recognized net actuarial loss | 309 | 228 | 927 | 686 |
Settlement | 1,200 | 1,200 | ||
Net pension expense (benefit) | $ 937 | $ (235) | 411 | $ (703) |
Employer Contributions | ||||
Employer contribution | $ 2,000 |
Supplemental Cash Flow Inform51
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Reconciliation of total capital expenditures incurred to total capital expenditures in the consolidated statements of cash flows | ||
Capital expenditures incurred | $ 882,334 | $ 650,329 |
Additions incurred prior year but paid for in current year | 123,548 | 29,264 |
Additions incurred but not paid for as of the end of the year | (34,025) | (57,565) |
Capital expenditures per Consolidated Condensed Statements of Cash Flows | $ 971,857 | $ 622,028 |
Guarantor and Non-Guarantor F52
Guarantor and Non-Guarantor Financial Information (Details) - Unsecured senior notes issued March 19, 2015 - USD ($) $ in Millions | Mar. 31, 2015 | Mar. 19, 2015 |
Financial Information | ||
Debt issued | $ 500 | |
Issuer Subsidiary | ||
Financial Information | ||
Debt issued | $ 500 |
Guarantor and Non-Guarantor F53
Guarantor and Non-Guarantor Financial Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED CONDENSED STATEMENTS OF INCOME | ||||
Operating revenues | $ 659,694 | $ 952,087 | $ 2,599,331 | $ 2,734,669 |
Operating costs and other | 526,914 | 680,175 | 1,907,560 | 1,943,384 |
Operating income from continuing operations | 132,780 | 271,912 | 691,771 | 791,285 |
Other income (expense), net | 1,321 | 24,601 | 4,524 | 46,519 |
Interest expense | (6,258) | (1,435) | (9,290) | (4,354) |
Income from continuing operations before income taxes | 127,843 | 295,078 | 687,005 | 833,450 |
Income tax provision | 36,956 | 102,788 | 243,525 | 293,389 |
Income from continuing operations | 90,887 | 192,290 | 443,480 | 540,061 |
Income from discontinued operations before income taxes | (27) | (11) | (118) | 2,775 |
Income tax provision | (77) | 2,805 | ||
Income (loss) from discontinued operations | (27) | (11) | (41) | (30) |
NET INCOME | 90,860 | 192,279 | 443,439 | 540,031 |
Eliminations | ||||
CONSOLIDATED CONDENSED STATEMENTS OF INCOME | ||||
Operating revenues | (19) | (41) | (59) | (112) |
Operating costs and other | (1,026) | (1,084) | (3,092) | (3,326) |
Operating income from continuing operations | 1,007 | 1,043 | 3,033 | 3,214 |
Other income (expense), net | (1,007) | (1,043) | (3,033) | (3,214) |
Equity in net income of subsidiaries | (105,366) | (197,566) | (467,300) | (557,741) |
Income from continuing operations before income taxes | (105,366) | (197,566) | (467,300) | (557,741) |
Income from continuing operations | (105,366) | (197,566) | (467,300) | (557,741) |
NET INCOME | (105,366) | (197,566) | (467,300) | (557,741) |
Guarantor/Parent | Reportable Legal Entities | ||||
CONSOLIDATED CONDENSED STATEMENTS OF INCOME | ||||
Operating costs and other | 3,072 | 4,457 | 9,152 | 12,650 |
Operating income from continuing operations | (3,072) | (4,457) | (9,152) | (12,650) |
Other income (expense), net | (103) | 25 | (100) | 42 |
Interest expense | (40) | (2) | (59) | 13 |
Equity in net income of subsidiaries | 92,401 | 194,849 | 448,894 | 547,685 |
Income from continuing operations before income taxes | 89,186 | 190,415 | 439,583 | 535,090 |
Income tax provision | (1,674) | (1,864) | (3,856) | (4,941) |
Income from continuing operations | 90,860 | 192,279 | 443,439 | 540,031 |
NET INCOME | 90,860 | 192,279 | 443,439 | 540,031 |
Issuer Subsidiary | Reportable Legal Entities | ||||
CONSOLIDATED CONDENSED STATEMENTS OF INCOME | ||||
Operating revenues | 543,834 | 860,869 | 2,270,839 | 2,444,460 |
Operating costs and other | 423,408 | 590,021 | 1,600,530 | 1,668,298 |
Operating income from continuing operations | 120,426 | 270,848 | 670,309 | 776,162 |
Other income (expense), net | 1,565 | 24,646 | 6,224 | 47,562 |
Interest expense | (4,638) | (1,084) | (4,741) | (3,023) |
Equity in net income of subsidiaries | 12,965 | 2,717 | 18,406 | 10,056 |
Income from continuing operations before income taxes | 130,318 | 297,127 | 690,198 | 830,757 |
Income tax provision | 38,878 | 103,367 | 243,844 | 285,415 |
Income from continuing operations | 91,440 | 193,760 | 446,354 | 545,342 |
NET INCOME | 91,440 | 193,760 | 446,354 | 545,342 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
CONSOLIDATED CONDENSED STATEMENTS OF INCOME | ||||
Operating revenues | 115,879 | 91,259 | 328,551 | 290,321 |
Operating costs and other | 101,460 | 86,781 | 300,970 | 265,762 |
Operating income from continuing operations | 14,419 | 4,478 | 27,581 | 24,559 |
Other income (expense), net | 866 | 973 | 1,433 | 2,129 |
Interest expense | (1,580) | (349) | (4,490) | (1,344) |
Income from continuing operations before income taxes | 13,705 | 5,102 | 24,524 | 25,344 |
Income tax provision | (248) | 1,285 | 3,537 | 12,915 |
Income from continuing operations | 13,953 | 3,817 | 20,987 | 12,429 |
Income from discontinued operations before income taxes | (27) | (11) | (118) | 2,775 |
Income tax provision | (77) | 2,805 | ||
Income (loss) from discontinued operations | (27) | (11) | (41) | (30) |
NET INCOME | $ 13,926 | $ 3,806 | $ 20,946 | $ 12,399 |
Guarantor and Non-Guarantor f54
Guarantor and Non-Guarantor financial information (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 90,860 | $ 192,279 | $ 443,439 | $ 540,031 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Unrealized depreciation on securities, net | (3,307) | 13,728 | (46,754) | 7,215 |
Reclassification of realized gains in net income, net | (14,853) | (27,737) | ||
Minimum pension liability adjustments, net | 197 | 145 | 590 | 437 |
Other comprehensive loss | (3,110) | (980) | (46,164) | (20,085) |
Comprehensive income | 87,750 | 191,299 | 397,275 | 519,946 |
Reportable Legal Entities | Guarantor/Parent | ||||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | 90,860 | 192,279 | 443,439 | 540,031 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Minimum pension liability adjustments, net | 82 | 81 | 246 | 244 |
Other comprehensive loss | 82 | 81 | 246 | 244 |
Comprehensive income | 90,942 | 192,360 | 443,685 | 540,275 |
Reportable Legal Entities | Issuer Subsidiary | ||||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | 91,440 | 193,760 | 446,354 | 545,342 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Unrealized depreciation on securities, net | (3,307) | 13,728 | (46,754) | 7,215 |
Reclassification of realized gains in net income, net | (14,853) | (27,737) | ||
Minimum pension liability adjustments, net | 115 | 64 | 344 | 193 |
Other comprehensive loss | (3,192) | (1,061) | (46,410) | (20,329) |
Comprehensive income | 88,248 | 192,699 | 399,944 | 525,013 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | 13,926 | 3,806 | 20,946 | 12,399 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Comprehensive income | 13,926 | 3,806 | 20,946 | 12,399 |
Eliminations | ||||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | (105,366) | (197,566) | (467,300) | (557,741) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Comprehensive income | $ (105,366) | $ (197,566) | $ (467,300) | $ (557,741) |
Guarantor and Non-Guarantor F55
Guarantor and Non-Guarantor Financial Information (Details 4) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 |
Current assets: | |||||
Cash and cash equivalents | $ 770,918 | $ 360,909 | $ 549,928 | $ 447,868 | |
Accounts receivable, net of reserve | 490,224 | 705,214 | |||
Inventories | 128,217 | 106,241 | |||
Deferred income taxes | 9,183 | 16,519 | |||
Prepaid expenses and other | 95,327 | 80,912 | |||
Current assets of discontinued operations | 7,822 | 7,206 | |||
Total current assets | 1,501,691 | 1,277,001 | |||
Investments | 159,976 | 236,644 | |||
Property, plant and equipment, net | 5,630,311 | 5,188,544 | |||
Other assets | 43,839 | 18,809 | |||
Total assets | 7,335,817 | 6,720,998 | |||
Current liabilities: | |||||
Long-term debt due within one year | 39,157 | 39,635 | |||
Accounts payable | 128,670 | 182,031 | |||
Accrued liabilities | 175,282 | 282,278 | |||
Current liabilities of discontinued operations | 3,394 | 3,217 | |||
Total current liabilities | 346,503 | 507,161 | |||
Noncurrent liabilities: | |||||
Long-term debt | 532,388 | 39,502 | |||
Deferred income taxes | 1,325,920 | 1,215,259 | |||
Other | 105,069 | 64,110 | |||
Noncurrent liabilities of discontinued operations | 4,428 | 3,989 | |||
Total noncurrent liabilities | 1,967,805 | 1,322,860 | |||
Shareholders' equity: | |||||
Common stock | $ 11,086 | $ 11,051 | |||
Preferred stock | |||||
Additional paid-in capital | $ 409,159 | $ 383,972 | |||
Retained earnings | 4,745,771 | 4,525,797 | |||
Accumulated other comprehensive income | 36,962 | $ 40,072 | 83,126 | ||
Treasury stock, at cost | (181,469) | (112,969) | |||
Total shareholders' equity | 5,021,509 | 4,890,977 | |||
Total liabilities and shareholders' equity | 7,335,817 | 6,720,998 | |||
Eliminations | |||||
Current assets: | |||||
Cash and cash equivalents | (458) | (3,628) | 5,690 | 1,556 | |
Accounts receivable, net of reserve | (2,098) | (16,942) | |||
Inventories | 643 | 1,770 | |||
Deferred income taxes | (4,146) | (8,352) | |||
Prepaid expenses and other | 1,725 | 54 | |||
Total current assets | (4,334) | (27,098) | |||
Intercompany | (1,665,136) | (994,122) | |||
Other assets | (6,541) | (6,621) | |||
Investment in subsidiaries | (5,936,074) | (5,512,105) | |||
Total assets | (7,612,085) | (6,539,946) | |||
Current liabilities: | |||||
Accounts payable | (7) | (7) | |||
Accrued liabilities | (6,918) | (6,138) | |||
Total current liabilities | (6,925) | (6,145) | |||
Noncurrent liabilities: | |||||
Deferred income taxes | (17,880) | (14,573) | |||
Intercompany | (1,651,206) | (1,007,123) | |||
Total noncurrent liabilities | (1,669,086) | (1,021,696) | |||
Shareholders' equity: | |||||
Common stock | (100) | (100) | |||
Additional paid-in capital | (45,377) | (42,835) | |||
Retained earnings | (5,849,314) | (5,381,476) | |||
Accumulated other comprehensive income | (41,283) | (87,694) | |||
Total shareholders' equity | (5,936,074) | (5,512,105) | |||
Total liabilities and shareholders' equity | (7,612,085) | (6,539,946) | |||
Guarantor/Parent | Reportable Legal Entities | |||||
Current assets: | |||||
Cash and cash equivalents | (877) | (2,050) | (995) | (202) | |
Accounts receivable, net of reserve | (15) | (31) | |||
Deferred income taxes | 2,914 | 5,372 | |||
Prepaid expenses and other | 11,291 | 8,863 | |||
Total current assets | 13,313 | 12,154 | |||
Investments | 13,922 | 14,344 | |||
Property, plant and equipment, net | 52,639 | 42,027 | |||
Intercompany | 14,599 | 14,855 | |||
Other assets | 6,775 | 8,110 | |||
Investment in subsidiaries | 5,681,750 | 5,276,750 | |||
Total assets | 5,782,998 | 5,368,240 | |||
Current liabilities: | |||||
Accounts payable | 79,823 | 80,562 | |||
Accrued liabilities | 10,669 | 31,960 | |||
Total current liabilities | 90,492 | 112,522 | |||
Noncurrent liabilities: | |||||
Intercompany | 653,760 | 346,545 | |||
Other | 17,237 | 18,196 | |||
Total noncurrent liabilities | 670,997 | 364,741 | |||
Shareholders' equity: | |||||
Common stock | 11,086 | 11,051 | |||
Additional paid-in capital | 409,159 | 383,972 | |||
Retained earnings | 4,745,771 | 4,525,797 | |||
Accumulated other comprehensive income | 36,962 | 83,126 | |||
Treasury stock, at cost | (181,469) | (112,969) | |||
Total shareholders' equity | 5,021,509 | 4,890,977 | |||
Total liabilities and shareholders' equity | 5,782,998 | 5,368,240 | |||
Issuer Subsidiary | Reportable Legal Entities | |||||
Current assets: | |||||
Cash and cash equivalents | 755,070 | 329,655 | 518,239 | 412,596 | |
Accounts receivable, net of reserve | 357,444 | 623,274 | |||
Inventories | 87,022 | 67,113 | |||
Deferred income taxes | 10,415 | 19,499 | |||
Prepaid expenses and other | 27,669 | 15,013 | |||
Total current assets | 1,237,620 | 1,054,554 | |||
Investments | 146,054 | 222,300 | |||
Property, plant and equipment, net | 5,064,369 | 4,681,294 | |||
Intercompany | 1,419,552 | 782,626 | |||
Other assets | 1,352 | 1,197 | |||
Investment in subsidiaries | 254,324 | 235,355 | |||
Total assets | 8,123,271 | 6,977,326 | |||
Current liabilities: | |||||
Long-term debt due within one year | 39,157 | 39,635 | |||
Accounts payable | 28,849 | 80,488 | |||
Accrued liabilities | 107,497 | 212,896 | |||
Total current liabilities | 175,503 | 333,019 | |||
Noncurrent liabilities: | |||||
Long-term debt | 532,388 | 39,502 | |||
Deferred income taxes | 1,282,174 | 1,182,192 | |||
Intercompany | 446,954 | 141,066 | |||
Other | 22,193 | 19,948 | |||
Total noncurrent liabilities | 2,283,709 | 1,382,708 | |||
Shareholders' equity: | |||||
Common stock | 100 | 100 | |||
Additional paid-in capital | 45,033 | 42,516 | |||
Retained earnings | 5,577,643 | 5,131,289 | |||
Accumulated other comprehensive income | 41,283 | 87,694 | |||
Total shareholders' equity | 5,664,059 | 5,261,599 | |||
Total liabilities and shareholders' equity | 8,123,271 | 6,977,326 | |||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||
Current assets: | |||||
Cash and cash equivalents | 17,183 | 36,932 | $ 26,994 | $ 33,918 | |
Accounts receivable, net of reserve | 134,893 | 98,913 | |||
Inventories | 40,552 | 37,358 | |||
Prepaid expenses and other | 54,642 | 56,982 | |||
Current assets of discontinued operations | 7,822 | 7,206 | |||
Total current assets | 255,092 | 237,391 | |||
Property, plant and equipment, net | 513,303 | 465,223 | |||
Intercompany | 230,985 | 196,641 | |||
Other assets | 42,253 | 16,123 | |||
Total assets | 1,041,633 | 915,378 | |||
Current liabilities: | |||||
Accounts payable | 20,005 | 20,988 | |||
Accrued liabilities | 64,034 | 43,560 | |||
Current liabilities of discontinued operations | 3,394 | 3,217 | |||
Total current liabilities | 87,433 | 67,765 | |||
Noncurrent liabilities: | |||||
Deferred income taxes | 61,626 | 47,640 | |||
Intercompany | 550,492 | 519,512 | |||
Other | 65,639 | 25,966 | |||
Noncurrent liabilities of discontinued operations | 4,428 | 3,989 | |||
Total noncurrent liabilities | 682,185 | 597,107 | |||
Shareholders' equity: | |||||
Additional paid-in capital | 344 | 319 | |||
Retained earnings | 271,671 | 250,187 | |||
Total shareholders' equity | 272,015 | 250,506 | |||
Total liabilities and shareholders' equity | $ 1,041,633 | $ 915,378 |
Guarantor and Non-Guarantor F56
Guarantor and Non-Guarantor Financial Information (Details 5) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||
Net cash provided by operating activities | $ 1,147,539 | $ 797,895 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (971,857) | (622,028) |
Proceeds from sale of investment securities | 49,205 | |
Proceeds from asset sales | 17,805 | 21,485 |
Net cash used in investing activities | (954,052) | (551,338) |
FINANCING ACTIVITIES: | ||
Dividends paid | (223,827) | (189,542) |
Repurchase of common stock | (59,654) | |
Proceeds from senior notes, net of discount | 491,923 | |
Proceeds on short-term debt | 1,002 | |
Payments on short-term debt | (1,002) | |
Net increase in bank overdraft | 10,824 | |
Exercise of stock options, net of tax withholding | (609) | 22,370 |
Tax withholdings related to net share settlements of restricted stock | (5,104) | (3,049) |
Excess tax benefit from stock-based compensation | 2,969 | 25,724 |
Net cash provided by (used in) financing activities | 216,522 | (144,497) |
Net increase in cash and cash equivalents | 410,009 | 102,060 |
Cash and cash equivalents, beginning of period | 360,909 | 447,868 |
Cash and cash equivalents, end of period | 770,918 | 549,928 |
Eliminations | ||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||
Net cash provided by operating activities | 3,170 | 4,134 |
FINANCING ACTIVITIES: | ||
Net increase in cash and cash equivalents | 3,170 | 4,134 |
Cash and cash equivalents, beginning of period | (3,628) | 1,556 |
Cash and cash equivalents, end of period | (458) | 5,690 |
Guarantor/Parent | Reportable Legal Entities | ||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||
Net cash provided by operating activities | 66,448 | (18,912) |
INVESTING ACTIVITIES: | ||
Capital expenditures | (18,708) | (13,281) |
Intercompany transfers | 18,708 | 13,281 |
Proceeds from asset sales | 1 | 3 |
Net cash used in investing activities | 1 | 3 |
FINANCING ACTIVITIES: | ||
Dividends paid | (223,827) | (189,542) |
Intercompany transfers | 223,827 | 189,542 |
Repurchase of common stock | (59,654) | |
Exercise of stock options, net of tax withholding | (609) | 22,370 |
Tax withholdings related to net share settlements of restricted stock | (5,104) | (3,049) |
Excess tax benefit from stock-based compensation | 91 | (1,205) |
Net cash provided by (used in) financing activities | (65,276) | 18,116 |
Net increase in cash and cash equivalents | 1,173 | (793) |
Cash and cash equivalents, beginning of period | (2,050) | (202) |
Cash and cash equivalents, end of period | (877) | (995) |
Issuer Subsidiary | Reportable Legal Entities | ||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||
Net cash provided by operating activities | 1,068,214 | 753,008 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (911,844) | (539,439) |
Intercompany transfers | (18,708) | (13,281) |
Proceeds from sale of investment securities | 49,205 | |
Proceeds from asset sales | 16,804 | 18,976 |
Net cash used in investing activities | (913,748) | (484,539) |
FINANCING ACTIVITIES: | ||
Intercompany transfers | (223,827) | (189,542) |
Proceeds from senior notes, net of discount | 491,923 | |
Excess tax benefit from stock-based compensation | 2,853 | 26,716 |
Net cash provided by (used in) financing activities | 270,949 | (162,826) |
Net increase in cash and cash equivalents | 425,415 | 105,643 |
Cash and cash equivalents, beginning of period | 329,655 | 412,596 |
Cash and cash equivalents, end of period | 755,070 | 518,239 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||
Net cash provided by operating activities | 9,707 | 59,665 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (41,305) | (69,308) |
Proceeds from asset sales | 1,000 | 2,506 |
Net cash used in investing activities | (40,305) | (66,802) |
FINANCING ACTIVITIES: | ||
Proceeds on short-term debt | 1,002 | |
Payments on short-term debt | (1,002) | |
Net increase in bank overdraft | 10,824 | |
Excess tax benefit from stock-based compensation | 25 | 213 |
Net cash provided by (used in) financing activities | 10,849 | 213 |
Net increase in cash and cash equivalents | (19,749) | (6,924) |
Cash and cash equivalents, beginning of period | 36,932 | 33,918 |
Cash and cash equivalents, end of period | $ 17,183 | $ 26,994 |