Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
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, 2017 | |
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 | 108,581,547 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 572,787 | $ 905,561 |
Short-term investments | 39,894 | 44,148 |
Accounts receivable, less reserve of $6,352 in June 30, 2017 and $2,696 in September 30, 2016 | 440,872 | 375,169 |
Inventories | 138,403 | 124,325 |
Prepaid expenses and other | 58,425 | 78,067 |
Assets held for sale | 45,352 | |
Current assets of discontinued operations | 7 | 64 |
Total current assets | 1,250,388 | 1,572,686 |
NONCURRENT ASSETS: | ||
Investments | 76,986 | 84,955 |
Property, plant and equipment, at cost | 5,062,914 | 5,144,733 |
Goodwill | 51,967 | 4,718 |
Intangible assets, net of amortization | 51,569 | 919 |
Other assets | 20,067 | 24,008 |
Total noncurrent assets | 5,263,503 | 5,259,333 |
TOTAL ASSETS | 6,513,891 | 6,832,019 |
CURRENT LIABILITIES: | ||
Accounts payable | 137,206 | 95,422 |
Accrued liabilities | 196,643 | 234,639 |
Current liabilities of discontinued operations | 80 | 59 |
Total current liabilities | 333,929 | 330,120 |
NONCURRENT LIABILITIES: | ||
Long-term debt less unamortized discount and debt issuance costs | 492,637 | 491,847 |
Deferred income taxes | 1,325,250 | 1,342,456 |
Other | 108,946 | 102,781 |
Noncurrent liabilities of discontinued operations | 3,225 | 3,890 |
Total noncurrent liabilities | 1,930,058 | 1,940,974 |
SHAREHOLDERS' EQUITY: | ||
Common stock, $.10 par value, 160,000,000 shares authorized, 111,897,106 shares and 111,400,339 shares issued as of June 30, 2017 and September 30, 2016 respectively and 108,581,547 shares and 108,077,916 shares outstanding as of June 30, 2017 and September 30, 2016 respectively | 11,190 | 11,140 |
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | ||
Additional paid-in capital | 478,231 | 448,452 |
Retained earnings | 3,954,705 | 4,289,807 |
Accumulated other comprehensive income (loss) | (4,101) | (204) |
Total shareholders' equity before treasury stock | 4,440,025 | 4,749,195 |
Treasury stock, at cost | (190,121) | (188,270) |
Total shareholders' equity | 4,249,904 | 4,560,925 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 6,513,891 | $ 6,832,019 |
CONSOLIDATED CONDENSED BALANCE3
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
CONSOLIDATED CONDENSED BALANCE SHEETS | ||
Accounts receivable, reserve (in dollars) | $ 6,352 | $ 2,696 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 111,897,106 | 111,400,339 |
Common stock, shares outstanding | 108,581,547 | 108,077,916 |
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 OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating revenues: | ||||
Drilling - U.S. Land | $ 405,516 | $ 285,028 | $ 1,000,119 | $ 1,004,116 |
Drilling - Offshore | 33,711 | 30,492 | 103,758 | 106,697 |
Drilling - International Land | 55,075 | 47,983 | 157,863 | 171,529 |
Other | 4,262 | 2,983 | 10,697 | 10,182 |
Total operating revenues | 498,564 | 366,486 | 1,272,437 | 1,292,524 |
Operating costs and expenses: | ||||
Operating costs, excluding depreciation | 337,463 | 186,146 | 881,971 | 684,401 |
Depreciation | 145,043 | 138,690 | 431,667 | 422,336 |
Asset impairment charge | 6,250 | 6,250 | ||
Research and development | 3,058 | 2,707 | 8,585 | 7,941 |
General and administrative | 42,890 | 46,496 | 110,671 | 112,381 |
Income from asset sales | (1,862) | (547) | (17,593) | (7,820) |
Total operating costs and expenses | 526,592 | 379,742 | 1,415,301 | 1,225,489 |
Operating income (loss) from continuing operations | (28,028) | (13,256) | (142,864) | 67,035 |
Other income (expense): | ||||
Interest and dividend income | 1,700 | 778 | 4,028 | 2,310 |
Interest expense | (6,364) | (6,407) | (17,503) | (16,652) |
Other | (911) | 534 | (350) | 926 |
Total other income (expense) | (5,575) | (5,095) | (13,825) | (13,416) |
Income (loss) from continuing operations before income taxes | (33,603) | (18,351) | (156,689) | 53,619 |
Income tax provision | (10,478) | 2,842 | (50,537) | 33,740 |
Income (loss) from continuing operations | (23,125) | (21,193) | (106,152) | 19,879 |
Income (loss) from discontinued operations before income taxes | 3,223 | 2,193 | 2,705 | 2,241 |
Income tax provision | 1,897 | 2,200 | 2,233 | 6,113 |
Income (loss) from discontinued operations | 1,326 | (7) | 472 | (3,872) |
NET INCOME (LOSS) | $ (21,799) | $ (21,200) | $ (105,680) | $ 16,007 |
Basic earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | $ (0.22) | $ (0.20) | $ (0.99) | $ 0.18 |
Income (loss) from discontinued operations (in dollars per share) | 0.01 | (0.04) | ||
Net income (loss) (in dollars per share) | (0.21) | (0.20) | (0.99) | 0.14 |
Diluted earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | (0.22) | (0.20) | (0.99) | 0.17 |
Income (loss) from discontinued operations (in dollars per share) | 0.01 | (0.04) | ||
Net income (loss) (in dollars per share) | $ (0.21) | $ (0.20) | $ (0.99) | $ 0.13 |
Weighted average shares outstanding (in thousands): | ||||
Basic (in shares) | 108,572 | 108,047 | 108,470 | 107,970 |
Diluted (in shares) | 108,572 | 108,047 | 108,470 | 108,523 |
Dividends declared per common share (in dollars per share) | $ 0.7000 | $ 0.7000 | $ 2.1000 | $ 2.0750 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | $ (21,799) | $ (21,200) | $ (105,680) | $ 16,007 |
Other comprehensive income (loss), net of income taxes: | ||||
Unrealized appreciation (depreciation) on securities, net of income taxes of ($4.4) million and ($3.2) million at June 30, 2017, and $6.1 million and ($1.7) million at June 30, 2016 | (6,899) | 9,744 | (4,994) | (2,719) |
Minimum pension liability adjustments, net of income taxes of $0.2 million and $0.6 million at June 30, 2017, and $0.1 million and $0.5 million at June 30, 2016 | 365 | 314 | 1,097 | 940 |
Other comprehensive income (loss) | (6,534) | 10,058 | (3,897) | (1,779) |
Comprehensive income (loss) | $ (28,333) | $ (11,142) | $ (109,577) | $ 14,228 |
CONSOLIDATED CONDENSED STATEME6
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Unrealized appreciation (depreciation) on securities, income taxes | $ (4.4) | $ 6.1 | $ (3.2) | $ (1.7) |
Minimum pension liability adjustments, income taxes | $ 0.2 | $ 0.1 | $ 0.6 | $ 0.5 |
CONSOLIDATED CONDENSED STATEME7
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ (105,680) | $ 16,007 |
Adjustment for (income) loss from discontinued operations | (472) | 3,872 |
Income (loss) from continuing operations | (106,152) | 19,879 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 431,667 | 422,336 |
Asset impairment charge | 6,250 | |
Amortization of debt discount and debt issuance costs | 789 | 879 |
Provision (recovery) for bad debt | 3,858 | (3,067) |
Stock-based compensation | 19,247 | 19,661 |
Pension settlement charge | 1,411 | 3,343 |
Income from asset sales | (17,593) | (7,820) |
Deferred income tax expense | (27,798) | 77,886 |
Other | 62 | 255 |
Change in assets and liabilities: | ||
Accounts receivable | (62,942) | 97,698 |
Inventories | (11,806) | (344) |
Prepaid expenses and other | 26,820 | (6,537) |
Accounts payable | 41,398 | (13,643) |
Accrued liabilities | (53,456) | 14,632 |
Deferred income taxes | (1,051) | 2,673 |
Other noncurrent liabilities | (8,205) | (18,741) |
Net cash provided by operating activities from continuing operations | 236,249 | 615,340 |
Net cash provided by (used in) operating activities from discontinued operations | (115) | 70 |
Net cash provided by operating activities | 236,134 | 615,410 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (300,275) | (219,549) |
Purchase of short-term investments | (48,958) | (36,958) |
Payment for acquisition of business, net of cash acquired | (70,416) | |
Proceeds from sale of short-term investments | 53,150 | 32,681 |
Proceeds from asset sales | 17,921 | 12,804 |
Net cash used in investing activities | (348,578) | (211,022) |
FINANCING ACTIVITIES: | ||
Debt issuance costs | (32) | |
Dividends paid | (229,061) | (224,040) |
Exercise of stock options, net of tax withholding | 10,458 | 483 |
Tax withholdings related to net share settlements of restricted stock | (5,848) | (3,912) |
Excess tax benefit from stock-based compensation | 4,121 | 761 |
Net cash used in financing activities | (220,330) | (226,740) |
Net increase (decrease) in cash and cash equivalents | (332,774) | 177,648 |
Cash and cash equivalents, beginning of period | 905,561 | 729,384 |
Cash and cash equivalents, end of period | $ 572,787 | $ 907,032 |
CONSOLIDATED CONDENSED STATEME8
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total |
Balance at Sep. 30, 2016 | $ 11,140 | $ 448,452 | $ 4,289,807 | $ (204) | $ (188,270) | $ 4,560,925 |
Balance (in shares) at Sep. 30, 2016 | 111,400,000 | 111,400,339 | ||||
Balance (in shares) at Sep. 30, 2016 | 3,322,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net loss | $ 0 | 0 | (105,680) | 0 | $ 0 | $ (105,680) |
Other comprehensive loss | (3,897) | (3,897) | ||||
Dividends declared ($2.10 per share) | (229,422) | (229,422) | ||||
Exercise of stock options | $ 36 | 13,950 | $ (3,528) | 10,458 | ||
Exercise of stock options (in shares) | 355,000 | 51,000 | ||||
Tax benefit of stock-based awards | 4,121 | 4,121 | ||||
Stock issued for vested restricted stock, net of shares withheld for employee taxes | $ 14 | (7,539) | $ 1,677 | (5,848) | ||
Stock issued for vested restricted stock, net of shares withheld for employee taxes (in shares) | 142,000 | (57,000) | ||||
Stock-based compensation | 19,247 | 19,247 | ||||
Balance at Jun. 30, 2017 | $ 11,190 | 478,231 | 3,954,705 | (4,101) | $ (190,121) | $ 4,249,904 |
Balance (in shares) at Jun. 30, 2017 | 111,897,000 | 111,897,106 | ||||
Balance (in shares) at Jun. 30, 2017 | 3,316,000 | |||||
Balance at Mar. 31, 2017 | 2,433 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net loss | $ (21,799) | |||||
Other comprehensive loss | (6,534) | |||||
Balance at Jun. 30, 2017 | $ 11,190 | $ 478,231 | $ 3,954,705 | $ (4,101) | $ (190,121) | $ 4,249,904 |
Balance (in shares) at Jun. 30, 2017 | 111,897,000 | 111,897,106 | ||||
Balance (in shares) at Jun. 30, 2017 | 3,316,000 |
CONSOLIDATED CONDENSED STATEME9
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Jun. 07, 2017 | Mar. 02, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 |
CONSOLIDATED CONDENSED STATEMENT OF SHAREHOLDERS’ EQUITY | |||||||
Dividends declared (in dollars per share) | $ 0.70 | $ 0.70 | $ 0.7000 | $ 0.7000 | $ 2.1 | $ 2.1000 | $ 2.0750 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation | |
Basis of Presentation | HELMERICH & PAYNE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited) 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 2016 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 January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles-Goodwill and Othe r (Topic 350). The objective of this ASU is to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The ASU is applicable for public entities for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The amendments should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We early adopted this guidance effective June 30, 2017 with no impact on our consolidated financial statements. Goodwill will be evaluated for impairment each year in our fourth fiscal quarter. As more fully described in our 2016 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, 2017, early termination revenue was approximately $5.1 million and $24.8 million, respectively. We had $80.7 million and $189.2 million of early termination revenue for the three and nine months ended June 30, 2016. Depreciation in the Consolidated Condensed Statements of Operations includes abandonments of $7.7 million and $27.2 million for the three and nine months ended June 30, 2017 and $0.9 million for the nine months ended June 30, 2016. During fiscal 2017, upgrades to our rig fleet to meet customer demands for additional capabilities resulted in the abandonment of older rig components. During the second quarter of fiscal 2017, we determined rig equipment in our U.S. Land segment previously classified as held for sale no longer met the criteria for held for sale and was reclassified to property, plant and equipment. The equipment is from rigs that were decommissioned from service in prior fiscal years and is recorded at its carrying value which is lower than its estimated fair value. During the third quarter of fiscal 2017, we determined rig equipment in our International Land segment previously classified as held for sale no longer met the criteria for held for sale and was reclassified to property, plant and equipment. The equipment is recorded at its carrying value which is lower than its estimated fair value. During the second quarter of fiscal 2017, we sold one of our offshore rigs. The gain from the sale is included in Income from asset sales in our Consolidated Condensed Statements of Operations. The functional currency for all our foreign operations is the U.S. dollar. Nonmonetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the period. Income statement accounts are translated at average rates for the period presented. Foreign currency gains and losses from remeasurement of foreign currency financial statements and foreign currency translations into U.S. dollars are included in direct operating costs. Included in direct operating costs are aggregate foreign currency losses of $1.3 million and $3.3 million for the three and nine months ended June 30, 2017, respectively. For the three and nine months ended June 30, 2016, we had aggregate foreign currency losses of $1.1 million and $9.4 million, respectively, primarily due to the sharp devaluation of the Argentine peso in December 2015. |
Business Combinations
Business Combinations | 9 Months Ended |
Jun. 30, 2017 | |
Business Combinations | |
Business Combinations | 2. Business Combinations On June 2, 2017, we completed a merger transaction (“MOTIVE Merger”) pursuant to which an unaffiliated drilling technology company, MOTIVE Drilling Technologies, Inc., a Delaware corporation (“MOTIVE”), was merged with and into our wholly owned subsidiary Spring Merger Sub, Inc., a Delaware corporation. MOTIVE survived the transaction and is now a wholly owned subsidiary of the Company. At the effective time of the MOTIVE Merger, MOTIVE shareholders received aggregate cash consideration of $74.3 million, net of customary closing adjustments, and may receive up to an additional $25.0 million in potential earnout payments based on future performance. Transaction costs related to the MOTIVE Merger incurred during the nine months ended June 30, 2017, were $2.8 million and are recorded in the Consolidated Statement of Operations within the general and administrative expense line item. We recorded revenue of $1.1 million and a net loss of $0.7 million related to the MOTIVE Merger during the three and nine months ended June 30, 2017. MOTIVE has a proprietary Bit Guidance System that is an algorithm-driven system that considers the total economic consequences of directional drilling decisions and has proven to consistently lower drilling costs through more efficient drilling and increase hydrocarbon production through smoother wellbores and more accurate well placement. Given our strong and longstanding technology and innovation focus, we believe the technology will continue to advance and provide further benefits for the industry. The MOTIVE Merger is accounted for as a business combination in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations , which requires the assets acquired and liabilities assumed to be recorded at their acquisition date fair values. The estimated fair values are based upon preliminary calculations and valuations, and those estimates and assumptions are subject to changes as we obtain additional information for those estimates during the measurement period. The following table summarizes the purchase price and the preliminary allocation of the fair values of assets acquired and liabilities assumed and separately identifiable intangible assets at the acquisition date (in thousands): Purchase Price Consideration given Cash consideration $ 74,275 Long-term contingent earnout liability (Other noncurrent liabilities) 14,509 Total consideration given $ 88,784 Allocation of Purchase Price Fair value of assets acquired Current assets $ 4,425 Property, plant and equipment 300 Intangible asset - developed technology (Intangible assets, net of amortization) 51,000 Goodwill 47,249 Total assets acquired $ 102,974 Fair value of liabilities assumed Current liabilities $ 25 Deferred income taxes 14,165 Total liabilities acquired $ 14,190 Fair value of total assets and liabilities acquired $ 88,784 The fair value of the contingent consideration of $14.5 million, calculated using a Monte Carlo simulation which evaluates numerous potential earnings and pay out scenarios, is considered a level 3 measurement under the fair value hierarchy. The developed technology is an intangible asset that will be amortized on a straight-line basis over an estimated 15-year life. We expect annual amortization to be approximately $3.4 million. The goodwill consists largely of the synergies and economies of scale expected from the drilling technology providing more efficient drilling and directional drilling services, the first mover advantage obtained through the acquisition and expected future developments resulting from the assembled workforce. The goodwill is reported in the Other segment and will not be allocated to any other reporting unit. The goodwill is not subject to amortization but will be evaluated at least annually for impairment or more frequently if impairment indicators are present. The developed technology and goodwill are not deductible for income tax purposes. An associated deferred tax liability has been recorded in regards to the developed technology. The following unaudited pro forma combined financial information is provided for the nine months ended June 30, 2017 and 2016, as though the MOTIVE Merger had been completed as of October 1, 2015. These pro forma combined results of operations have been prepared by adjusting our historical results to include the historical results of MOTIVE and reflect pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including application of an appropriate income tax to MOTIVE pre-tax loss. Additionally, pro forma earnings for the nine months ended June 30, 2017 were adjusted to exclude $1.0 million of after-tax transaction costs. The unaudited pro forma combined financial information is provided for illustrative purposes only and is not necessarily indicative of the actual results that would have been achieved by the combined company for the periods presented or that may be achieved by the combined company in the future. Future results may vary significantly from the results reflected in this pro forma financial information. Pro Forma Nine Months Ended June 30, 2017 2016 (unaudited) (in thousands) Revenues $ 1,275,646 $ 1,294,146 Net loss $ (105,482) $ (18,292) |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations | |
Discontinued Operations | 3. 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, 2017 | |
Earnings per Share | |
Earnings per Share | 4. 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. Under the two-class method of calculating earnings per share, dividends paid and a portion of undistributed net income, but not losses, are allocated to unvested restricted stock grants that receive dividends, which are considered participating securities. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands, except per share amounts) Numerator: Income (loss) from continuing operations $ (23,125) $ (21,193) $ (106,152) $ 19,879 Income (loss) from discontinued operations 1,326 (7) 472 (3,872) Net income (loss) (21,799) (21,200) (105,680) 16,007 Adjustment for basic earnings per share Earnings allocated to unvested shareholders (458) (451) (1,349) (1,410) Numerator for basic earnings per share: From continuing operations (23,583) (21,644) (107,501) 18,469 From discontinued operations 1,326 (7) 472 (3,872) (22,257) (21,651) (107,029) 14,597 Adjustment for diluted earnings per share: Effect of reallocating undistributed earnings of unvested shareholders — — — — Numerator for diluted earnings per share: From continuing operations (23,583) (21,644) (107,501) 18,469 From discontinued operations 1,326 (7) 472 (3,872) $ (22,257) $ (21,651) $ (107,029) $ 14,597 Denominator: Denominator for basic earnings per share - weighted-average shares 108,572 108,047 108,470 107,970 Effect of dilutive shares from stock options and restricted stock — — — 553 Denominator for diluted earnings per share - adjusted weighted-average shares 108,572 108,047 108,470 108,523 Basic earnings per common share: Income (loss) from continuing operations $ (0.22) $ (0.20) $ (0.99) $ 0.18 Income (loss) from discontinued operations 0.01 — — (0.04) Net income (loss) $ (0.21) $ (0.20) $ (0.99) $ 0.14 Diluted earnings per common share: Income (loss) from continuing operations $ (0.22) $ (0.20) $ (0.99) $ 0.17 Income (loss) from discontinued operations 0.01 — — (0.04) Net income (loss) $ (0.21) $ (0.20) $ (0.99) $ 0.13 We had a net loss for the three and nine months ended June 30, 2017. Accordingly, our diluted earnings per share calculation for the three and nine months ended June 30, 2017 was equivalent to our basic earnings per share calculation since diluted earnings per share excluded any assumed exercise of equity awards. These were excluded because they were deemed to be anti-dilutive, meaning their inclusion would have reduced the reported net loss per share in the applicable period. The following shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive: Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands, except per share amounts) (in thousands, except per share amounts) Shares excluded from calculation of diluted earnings per share 1,332 3,409 1,034 1,861 Weighted-average price per share $ 70.82 $ 51.94 $ 73.84 $ 63.70 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 9 Months Ended |
Jun. 30, 2017 | |
Financial Instruments and Fair Value Measurement | |
Financial Instruments and Fair Value Measurement | 5. 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, 2017 $ 38,473 $ 27,067 $ (2,160) $ 63,380 September 30, 2016 $ 38,473 $ 33,051 $ — $ 71,524 On an ongoing basis we evaluate the marketable equity securities to determine if any decline in fair value below cost is other-than-temporary. If a decline in fair value below cost is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis established. We review several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, (i) the length of time a security is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near-term prospects of the issuer and (iv) our intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The cost of securities used in determining realized gains and losses is based on the average cost basis of the security sold. One of our securities, Atwood Oceanics, Inc. (“Atwood”), was in an unrealized loss position for less than 30 days at June 30, 2017. During the quarter, Ensco plc (“Ensco”) announced that it entered into a definitive merger agreement under which Ensco will acquire Atwood in an all-stock transaction. The definitive merger agreement was unanimously approved by each company’s Board of Directors. Under the terms of the merger agreement, Atwood shareholders will receive 1.60 shares of Ensco for each share of Atwood common stock for a total value of $10.72 per Atwood share based on Ensco’s closing share price of $6.70 on May 26, 2017. The merger is subject to shareholder approval from both companies (simple majority approval from Ensco shareholders and two-thirds majority approval from Atwood shareholders). The votes for each respective company are currently pending and do not have an announced date. The transaction is reportedly expected to close as early as the third quarter of calendar year 2017. Considering the factors above, including whether and when the security will recover in value and based on our ability and intent to hold these investments until the fair value recovers, impairment was not considered other-than-temporary at June 30, 2017. The assets held in the Non-qualified Supplemental Savings Plan are carried at fair value which totaled $13.6 million at June 30, 2017 and $13.4 million at September 30, 2016. The assets are comprised of mutual funds that are measured using Level 1 inputs. Short-term investments include securities classified as trading securities. Both realized and unrealized gains and losses on trading securities are included in other income (expense) in the Consolidated Condensed Statements of Operations. The securities are recorded at fair value. The majority of cash equivalents are invested in highly liquid money-market mutual funds invested primarily in direct or indirect obligations of the U.S. Government. The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those investments. 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, 2017, 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, 2017, Level 2 inputs include U.S. Agency issued debt securities, municipal bonds and corporate bonds measured using broker quotations that utilize observable market inputs. Also included in level 2 inputs are bank certificate of deposits included in short-term investments or current assets. Our financial instruments measured using Level 3 inputs consist of potential earnout payments associated with the MOTIVE acquisition during the third quarter of fiscal 2017. The valuation techniques used for determining the fair value of the potential earnout payments are described further in Note 2. The following table summarizes our assets and liabilities measured at fair value presented in our Consolidated Condensed Balance Sheet as of June 30, 2017: Fair Value (Level 1) (Level 2) (Level 3) (in thousands) Recurring fair value measurements: Short-term investments: Certificate of deposit $ 4,600 $ — $ 4,600 $ — Corporate and municipal debt securities 13,877 — 13,877 — U.S. government and federal agency securities 21,417 17,419 3,998 — Total short-term investments 39,894 17,419 22,475 — Cash and cash equivalents 572,787 572,787 — — Investments 63,380 63,380 — — Other current assets 32,917 32,667 250 — Other assets 6,690 6,690 — — Total assets measured at fair value $ 715,668 $ 692,943 $ 22,725 $ — Liabilities Contingent earnout liability $ 14,509 $ — $ — $ 14,509 The following information presents the supplemental fair value information about long-term fixed-rate debt at June 30, 2017 and September 30, 2016: June 30, September 30, 2017 2016 (in millions) Carrying value of long-term fixed-rate debt $ 492.6 $ 491.8 Fair value of long-term fixed-rate debt $ 527.2 $ 529.6 The fair value for the $500 million fixed-rate debt was based on broker quotes at June 30, 2017. The notes are classified within Level 2 as they are not actively traded in markets. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Jun. 30, 2017 | |
Shareholders’ Equity | |
Shareholders’ Equity | 6. 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. We had no purchases of common shares in either of the third quarters of fiscal 2017 or fiscal 2016. Components of accumulated other comprehensive income (loss) were as follows: June 30, September 30, 2017 2016 (in thousands) Pre-tax amounts: Unrealized appreciation on securities $ 24,907 $ 33,051 Unrealized actuarial loss (32,387) (34,112) $ (7,480) $ (1,061) After-tax amounts: Unrealized appreciation on securities $ 15,905 $ 20,899 Unrealized actuarial loss (20,006) (21,103) $ (4,101) $ (204) The following is a summary of the changes in accumulated other comprehensive income, net of tax, by component for the three and nine months ended June 30, 2017: Three Months Ended June 30, 2017 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balance at April 1, 2017 $ 22,804 $ (20,371) $ 2,433 Other comprehensive loss before reclassifications (6,899) — (6,899) Amounts reclassified from accumulated other comprehensive income — 365 365 Net current-period other comprehensive income (loss) (6,899) 365 (6,534) Balance June 30, 2017 $ 15,905 $ (20,006) $ (4,101) Nine Months Ended June 30, 2017 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balance at October 1, 2016 $ 20,899 $ (21,103) $ (204) Other comprehensive loss before reclassifications (4,994) — (4,994) Amounts reclassified from accumulated other comprehensive income — 1,097 1,097 Net current-period other comprehensive income (loss) (4,994) 1,097 (3,897) Balance June 30, 2017 $ 15,905 $ (20,006) $ (4,101) The following provides detail about accumulated other comprehensive income components which were reclassified to the Condensed Consolidated Statements of Operations: Amount Amount Reclassified from Reclassified from Accumulated Other Accumulated Other Comprehensive Comprehensive Income (Loss) Income (Loss) Three Months Ended Nine Months Ended Details About Accumulated Other June 30, June 30, Affected Line Item in the Comprehensive Income (Loss) Components 2017 2016 2017 2016 Consolidated Statement of Operations (in thousands) (in thousands) Defined Benefit Pension Items Amortization of net actuarial loss $ 574 $ 493 $ 1,724 $ 1,479 General and administrative (209) (179) (627) (539) Income tax provision Total reclassifications for the period $ 365 $ 314 $ 1,097 $ 940 Net of tax |
Cash Dividends
Cash Dividends | 9 Months Ended |
Jun. 30, 2017 | |
Cash Dividends | |
Cash Dividends | 7. Cash Dividends The $0.70 per share cash dividend declared March 1, 2017, was paid June 1, 2017. On June 7, 2017, a cash dividend of $0.70 per share was declared for shareholders of record on August 18, 2017, payable September 1, 2017. The dividend payable is included in accounts payable in the Consolidated Condensed Balance Sheets. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jun. 30, 2017 | |
Stock-Based Compensation | |
Stock-Based Compensation | 8. Stock-Based Compensation On March 2, 2016, the Helmerich & Payne, Inc. 2016 Omnibus Incentive Plan (the “2016 Plan”) was approved by our stockholders. The 2016 Plan, among other things, authorizes the Human Resources Committee of the Board to grant non-qualified stock options and restricted stock awards to selected employees and to non-employee Directors. Restricted stock may be granted for no consideration other than prior and future services. The purchase price per share for stock options may not be less than market price of the underlying stock on the date of grant. Stock options expire 10 years after the grant date. Awards outstanding in the Helmerich & Payne, Inc. 2005 Long-Term Incentive Plan (the “2005 Plan”) and the Helmerich & Payne, Inc. 2010 Long-Term Incentive Plan (the "2010 Plan") remain subject to the terms and conditions of those plans. As of June 30, 2017, there were 396,007 non-qualified stock options and 292,112 shares of restricted stock awards granted under the 2016 Plan. 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, 2017 2016 2017 2016 (in thousands) (in thousands) Compensation expense Stock options $ 1,934 $ 1,722 $ 5,455 $ 7,048 Restricted stock 4,834 3,952 13,792 12,613 $ 6,768 $ 5,674 $ 19,247 $ 19,661 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, 2017 and 2016: 2017 2016 Risk-free interest rate 2.0 % 1.8 % Expected stock volatility 38.9 % 37.6 % Dividend yield 3.7 % 4.6 % Expected term (in years) 5.5 5.5 Risk-Free Interest Rate. The risk-free interest rate is based on U.S. Treasury securities for the expected term of the option. Expected Volatility Rate. Expected volatility is based upon historical experience of the daily closing price of our stock 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, 2017 is presented in the following tables: Three Months Ended June 30, 2017 Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Shares Exercise Term Value (in thousands) Price (in years) (in millions) Outstanding at April 1, 2017 3,293 $ 55.90 — — Granted 62 53.11 — — Exercised (15) 35.11 — — Forfeited/Expired — — — $ — Outstanding at June 30, 2017 3,340 $ 55.93 5.8 $ 19.7 Vested and expected to vest at June 30, 2017 3,286 $ 55.71 5.7 $ 19.7 Exercisable at June 30, 2017 2,229 $ 50.31 4.4 $ 19.6 Nine Months Ended June 30, 2017 Weighted Average Shares Exercise (in thousands) Price Outstanding at October 1, 2016 3,312 $ 51.74 Granted 396 76.61 Exercised (355) 39.38 Forfeited/Expired (13) 70.37 Outstanding at June 30, 2017 3,340 $ 55.93 The weighted-average fair value of options granted in the first, second and third quarters of fiscal 2017 was $22.42, $17.55 and $10.81, respectively. The total intrinsic value of options exercised during the three and nine months ended June 30, 2017 was $0.3 million and $12.0 million, respectively. As of June 30, 2017, the unrecognized compensation cost related to stock options was $8.6 million which is expected to be recognized over a weighted-average period of 2.4 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 2016 Plan is determined based on the closing price of our shares on the grant date. As of June 30, 2017, there was $26.3 million of total unrecognized compensation cost related to unvested restricted stock awards which is expected to be recognized over a weighted-average period of 2.5 years. A summary of the status of our restricted stock awards as of June 30, 2017 and changes in restricted stock outstanding during the nine months then ended is presented below: Nine Months Ended June 30, 2017 Weighted Average Shares Exercise (in thousands) Price Unvested at October 1, 648 $ 64.24 Granted 292 78.69 Vested (1) (271) 63.81 Forfeited (9) 67.79 Unvested on June 30, 2017 660 $ 70.76 (1) |
Debt
Debt | 9 Months Ended |
Jun. 30, 2017 | |
Debt | |
Debt | 9. Debt At June 30, 2017 and September 30, 2016, we had the following unsecured long-term debt outstanding: Unamortized Discount and Principal Debt Issuance Costs June 30, September 30, June 30, September 30, 2017 2016 2017 2016 (in thousands) Unsecured senior notes issued March 19, 2015: Due March 19, 2025 $ 500,000 $ 500,000 $ (7,363) $ (8,153) 500,000 500,000 (7,363) (8,153) Less long-term debt due within one year — — — — Long-term debt $ 500,000 $ 500,000 $ (7,363) $ (8,153) On March 19, 2015, we issued $500 million of 4.65 percent 10-year unsecured senior notes. The net proceeds, after discount and issuance cost, have been or will be used for general corporate purposes, including capital expenditures associated with our rig construction program. Interest is payable semi-annually on March 15 and September 15. The debt discount is being amortized to interest expense using the effective interest method. The debt issuance costs are amortized straight-line over the stated life of the obligation, which approximates the effective interest method. We have a $300 million unsecured revolving credit facility which will mature on July 13, 2021. The credit facility has $75 million available to use as letters of credit. The majority of any borrowings under the facility would accrue interest at a spread over the London Interbank Offered Rate (LIBOR). We also pay a commitment fee based on the unused balance of the facility. Borrowing spreads as well as commitment fees are determined according to a scale based on a ratio of our total debt to total capitalization. The spread over LIBOR ranges from 1.125 percent to 1.75 percent per annum and commitment fees range from .15 percent to .30 percent per annum. Based on our debt to total capitalization on June 30, 2017, the spread over LIBOR and commitment fees would be 1.125 percent and .15 percent, respectively. There is one financial covenant in the facility which requires us to maintain a funded leverage ratio (as defined) of less than 50 percent. The credit facility contains additional terms, conditions, restrictions and covenants that we believe are usual and customary in unsecured debt arrangements for companies of similar size and credit quality including a limitation that priority debt (as defined in the agreement) may not exceed 17.5% of the net worth of the Company. As of June 30, 2017, there were no borrowings, but there were three letters of credit outstanding in the amount of $38.8 million. At June 30, 2017, we had $261.2 million available to borrow under our $300 million unsecured credit facility. The applicable agreements for all unsecured debt contain additional terms, conditions and restrictions that we believe are usual and customary in unsecured debt arrangements for companies that are similar in size and credit quality. At June 30, 2017, we were in compliance with all debt covenants. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2017 | |
Income Taxes | |
Income Taxes | 10. Income Taxes Our effective tax rate for the first nine months of fiscal 2017 and 2016 was 32.3 percent and 62.9 percent, respectively. Our effective tax rate for the third quarter ending June 30, 2017 and 2016 was 31.2 percent and -15.5 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, 2016 was also impacted by a December 2015 tax law change which resulted in a reduction of the fiscal 2015 Internal Revenue Code Section 199 deduction for domestic production activities. 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. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies Equipment, parts and supplies are ordered in advance to promote efficient construction and capital improvement progress. At June 30, 2017, we had purchase commitments for equipment, parts and supplies of approximately $59.7 million. 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. (“HPIDC”) 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. and PDVSA Petroleo, S.A. 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. The Company and its subsidiaries are parties to various other pending legal actions arising in the ordinary course of our business. We maintain insurance against certain business risks subject to certain deductibles. Although no assurance can be given, we believe, based on our experiences to date and taking into account established reserves and insurance, that the ultimate resolution of such items will not have a material adverse impact on our financial condition, cash flows, or results of operations. When we determine a loss is probable of occurring and is reasonably estimable, we accrue an undiscounted liability for such contingencies based on our best estimate using information available at that time. If the estimated loss is a range of potential outcomes and there is no better estimate within the range, we accrue the amount at the low end of the range. We disclose contingencies where an adverse outcome may be material, or in the judgment of management, we conclude the matter should otherwise be disclosed. 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, HPIDC, 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 HPIDC's offshore platform rigs in the Gulf of Mexico. We also engaged in discussions with the Inspector General’s office of the Department of Interior (“DOI”) regarding the same events that were the subject of the DOJ’s investigation. Although we do not presently anticipate any further action by the DOI in this matter, we can provide no assurance as to the timing or eventual outcome of the DOI’s consideration of the matter. On or about April 28, 2015, Joshua Keel ("Keel"), an employee of HPIDC, filed a petition in the 152nd Judicial Court for Harris County, Texas (Cause No. 2015-24531) against us, our customer and several subcontractors of our customer. The suit arose from injuries Keel sustained in an accident that occurred while he was working on HPIDC Rig 223 in New Mexico in July of 2014. Keel alleged that the defendants were negligent and negligent per se , acted recklessly, intentionally, and/or with an utterly wanton disregard for the rights and safety of the plaintiff and sought damages well in excess of $100 million. Pursuant to the terms of the drilling contract between HPIDC and its customer, HPIDC indemnified most of the co-defendants in the lawsuit. On September 14, 2016, the parties in the Keel litigation entered into a global settlement agreement, which was approved by the court on October 14, 2016. The total settlement amount of $72 million, accrued at September 30, 2016, was paid by the Company and its insurers on behalf of all defendants, in December 2016, pursuant to industry standard contractual indemnification obligations. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2017 | |
Segment Information | |
Segment Information | 12. Segment Information We operate principally in the contract drilling industry. The contract drilling operations consist mainly of contracting Company-owned drilling equipment primarily to large oil and gas exploration companies. Our contract drilling business includes the following reportable operating segments: U.S. Land, Offshore and International Land. Each reportable operating segment is a strategic business unit that is managed separately. Our primary international areas of operation include Colombia, Ecuador, Argentina, Bahrain, U.A.E. and other South American and Middle Eastern countries. Other includes additional non-reportable operating segments. Revenues included in Other consist primarily of rental income. Consolidated revenues and expenses reflect the elimination of all material intercompany transactions. We evaluate segment performance based on income or loss from 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, 2017 and 2016 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2017 Contract Drilling U.S. Land $ 1,000,119 $ — $ 1,000,119 $ (90,718) Offshore 103,758 — 103,758 19,152 International Land 157,863 — 157,863 (5,225) 1,261,740 — 1,261,740 (76,791) Other 10,697 638 11,335 (5,752) 1,272,437 638 1,273,075 (82,543) Eliminations — (638) (638) — Total $ 1,272,437 $ — $ 1,272,437 $ (82,543) Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2016 Contract Drilling U.S. Land $ 1,004,116 $ — $ 1,004,116 $ 143,855 Offshore 106,697 — 106,697 13,105 International Land 171,529 — 171,529 (13,924) 1,282,342 — 1,282,342 143,036 Other 10,182 635 10,817 (4,839) 1,292,524 635 1,293,159 138,197 Eliminations — (635) (635) — Total $ 1,292,524 $ — $ 1,292,524 $ 138,197 Summarized financial information of our reportable segments for the three months ended June 30, 2017 and 2016 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2017 Contract Drilling U.S. Land $ 405,516 $ — $ 405,516 $ (7,980) Offshore 33,711 — 33,711 6,456 International Land 55,075 — 55,075 4,927 494,302 — 494,302 3,403 Other 4,262 222 4,484 (2,569) 498,564 222 498,786 834 Eliminations — (222) (222) — Total $ 498,564 $ — $ 498,564 $ 834 Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2016 Contract Drilling U.S. Land $ 285,028 $ — $ 285,028 $ 25,802 Offshore 30,492 — 30,492 2,084 International Land 47,983 — 47,983 (4,991) 363,503 — 363,503 22,895 Other 2,983 206 3,189 (2,186) 366,486 206 366,692 20,709 Eliminations — (206) (206) — Total $ 366,486 $ — $ 366,486 $ 20,709 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 Operations: Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Segment operating income (loss) $ 834 $ 20,709 $ (82,543) $ 138,197 Income from asset sales 1,862 547 17,593 7,820 Corporate general and administrative costs and corporate depreciation (30,724) (34,512) (77,914) (78,982) Operating income (loss) (28,028) (13,256) (142,864) 67,035 Other income (expense) Interest and dividend income 1,700 778 4,028 2,310 Interest expense (6,364) (6,407) (17,503) (16,652) Other (911) 534 (350) 926 Total unallocated amounts (5,575) (5,095) (13,825) (13,416) Income (loss) from continuing operations before income taxes $ (33,603) $ (18,351) $ (156,689) $ 53,619 The following table presents total assets by reportable segment: June 30, September 30, 2017 2016 (in thousands) Total assets U.S. Land $ 4,974,364 $ 5,005,299 Offshore 98,568 105,152 International Land 417,241 487,181 Other 134,804 36,141 5,624,977 5,633,773 Investments and corporate operations 888,907 1,198,182 Total assets from continued operations 6,513,884 6,831,955 Discontinued operations 7 64 $ 6,513,891 $ 6,832,019 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, 2017 2016 2017 2016 (in thousands) Operating Revenues United States $ 443,489 $ 318,059 $ 1,114,574 $ 1,113,542 Argentina 43,167 33,208 114,516 118,365 Colombia 9,356 3,831 27,579 15,176 Ecuador 3 481 5 4,948 Other Foreign 2,549 10,907 15,763 40,493 Total $ 498,564 $ 366,486 $ 1,272,437 $ 1,292,524 |
Pensions and Other Post-retirem
Pensions and Other Post-retirement Benefits | 9 Months Ended |
Jun. 30, 2017 | |
Pensions and Other Post-retirement Benefits | |
Pensions and Other Post-retirement Benefits | 13. Pensions and Other Post-retirement Benefits The following provides information at June 30, 2017 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, 2017 2016 2017 2016 (in thousands) Interest cost $ 975 $ 1,116 $ 2,925 $ 3,347 Expected return on plan assets (1,298) (1,490) (3,896) (4,470) Recognized net actuarial loss 574 493 1,724 1,479 Settlement 1,411 1,889 1,411 3,343 Net pension expense $ 1,662 $ 2,008 $ 2,164 $ 3,699 We record settlement expense when benefit payments exceed the total annual service and interest costs. Employer Contributions We did not contribute to the Pension Plan during the nine months ended June 30, 2017. We could make contributions for the remainder of fiscal 2017 to fund distributions in lieu of liquidating assets. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | 14. 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, 2017 2016 (in thousands) Capital expenditures incurred $ 315,735 $ 198,606 Additions incurred prior year but paid for in current year 9,465 25,344 Additions incurred but not paid for as of the end of the period (24,925) (4,401) Capital expenditures per Consolidated Statements of Cash Flows $ 300,275 $ 219,549 |
International Risk Factors
International Risk Factors | 9 Months Ended |
Jun. 30, 2017 | |
International Risk Factors | |
International Risk Factors | 15. International Risk Factors We currently have foreign operations in South America and the Middle East. In the future, we may further expand the geographic reach of our operations. As a result, we are exposed to certain political, economic and other uncertainties not encountered in U.S. operations, including increased risks of social unrest, strikes, terrorism, war, kidnapping of employees, nationalization, forced negotiation or modification of contracts, difficulty resolving disputes and enforcing contract provisions, expropriation of equipment as well as expropriation of oil and gas exploration and drilling rights, taxation policies, foreign exchange restrictions and restrictions on repatriation of income and capital, currency rate fluctuations, increased governmental ownership and regulation of the economy and industry in the markets in which we operate, economic and financial instability of national oil companies, and restrictive governmental regulation, bureaucratic delays and general hazards associated with foreign sovereignty over certain areas in which operations are conducted. South American countries, in particular, have historically experienced uneven periods of economic growth, as well as recession, periods of high inflation and general economic and political instability. From time to time these risks have impacted our business. For example, on June 30, 2010, the Venezuelan government expropriated 11 rigs and associated real and personal property owned by our Venezuelan subsidiary. Prior thereto, we also experienced currency devaluation losses in Venezuela and difficulty repatriating U.S. dollars to the United States. Today, our contracts for work in foreign countries generally provide for payment in U.S. dollars. However, in Argentina we are paid in Argentine pesos. The Argentine branch of one of our second-tier subsidiaries then remits U.S. dollars to its U.S. parent by converting the Argentine pesos into U.S. dollars through the Argentine Foreign Exchange Market and repatriating the U.S. dollars. Estimates from published sources indicate that Argentina is a highly inflationary country, which is defined as cumulative inflation rates exceeding 100 percent in the most recent three-year period based on inflation data published by the respective governments. Nonetheless, all of our foreign operations use the U.S. dollar as the functional currency and local currency monetary assets and liabilities are remeasured into U.S. dollars with gains and losses resulting from foreign currency transactions included in current results of operations. In December 2015, the Argentine peso experienced a sharp devaluation resulting in an aggregate foreign currency loss of $9.4 million for the nine months ended June 30, 2016. Subsequent to the sharp devaluation, the Argentine peso significantly stabilized and the Argentine Foreign Exchange Market controls now place fewer restrictions on repatriating U.S. dollars. For the nine months ended June 30, 2017, we experienced aggregate foreign currency losses of $3.3 million. However, in the future, other contracts or applicable law may require payments to be made in foreign currencies. As such, there can be no assurance that we will not experience in Argentina or elsewhere a devaluation of foreign currency, foreign exchange restrictions or other difficulties repatriating U.S. dollars even if we are able to negotiate contract provisions designed to mitigate such risks. In the event of future payments in foreign currencies and an inability to timely exchange foreign currencies for U.S. dollars, we may incur currency devaluation losses which could have a material adverse impact on our business, financial condition and results of operations. Because of the impact of local laws, our future operations in certain areas may be conducted through entities in which local citizens own interests and through entities (including joint ventures) in which we hold only a minority interest or pursuant to arrangements under which we conduct operations under contract to local entities. While we believe that neither operating through such entities nor pursuant to such arrangements would have a material adverse effect on our operations or revenues, there can be no assurance that we will in all cases be able to structure or restructure our operations to conform to local law (or the administration thereof) on terms acceptable to us. Although we attempt to minimize the potential impact of such risks by operating in more than one geographical area, during the nine months ended June 30, 2017, approximately 12.4 percent of our consolidated operating revenues were generated from international locations in our contract drilling business. During the nine months ended June 30, 2017, approximately 90.0 percent of operating revenues from international locations were from operations in South America. Substantially all of the South American operating revenues were from Argentina and Colombia. The future occurrence of one or more international events arising from the types of risks described above could have a material adverse impact on our business, financial condition and results of operations. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Jun. 30, 2017 | |
Recently Issued Accounting Standards | |
Recently Issued Accounting Standards | 16. 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. Throughout 2016 and in early 2017, additional accounting guidance was issued to clarify the not yet effective revenue recognition guidance issued in May 2014. The ASU provides for full retrospective, modified retrospective, or use of the cumulative effect method during the period of adoption. During 2017, we established an implementation team and began a detailed analysis of our contracts in place during the retrospective period. We anticipate we will have two primary revenue streams consisting of lease and service components. The requirements in this ASU are effective during interim and annual periods beginning after December 15, 2017. We expect to adopt this new revenue guidance utilizing the modified retrospective method of adoption in the first quarter of fiscal 2019. As we are still evaluating certain aspects of our contract drilling revenue, we are unable to quantify the impact that the new revenue standard will have on our consolidated financial statements at this time. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The guidance provides principles and definitions for management that are intended to reduce diversity in the timing and content of disclosures provided in footnotes. Under the standard, management is required to evaluate for each annual and interim reporting period whether it is probable that the entity will not be able to meet its obligations as they become due within one year after the date that financial statements are issued (or are available to be issued, where applicable). The standard is effective for annual periods ending after December 15, 2016. We do not expect the adoption of this standard to have an impact on the consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . This update simplifies the subsequent measurement of inventory. It replaces the current lower of cost or market test with the lower of cost or net realizable value test. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new standard should be applied prospectively and is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods, with early adoption permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The standard requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. The provisions of ASU No. 2016-01 are effective for interim and annual periods starting after December 15, 2017. At adoption, a cumulative-effect adjustment to beginning retained earnings will be recorded. We will adopt this standard on October 1, 2018. Subsequent to adoption, changes in the fair value of our available-for-sale investments will be recognized in net income and the effect will be subject to stock market fluctuations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . ASU No. 2016-02 will require organizations that lease assets — referred to as “lessees” — to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Under ASU No. 2016-02, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Lessor accounting remains substantially similar to current GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. For public entities, ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU No. 2016-02 mandates a modified retrospective transition method. We expect to adopt this new lease guidance utilizing the modified retrospective method of adoption in the first quarter of fiscal 2019 concurrently with ASU 2014-09. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ASU No. 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public entities, ASU No. 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the potential impact of adopting this guidance on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses . The ASU sets forth a "current expected credit loss" (CECL) model which requires companies to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This standard is effective for interim and annual periods beginning after December 15, 2019. We are currently assessing the impact this standard will have on our consolidated financial statements and disclosures. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The ASU is intended to reduce diversity in practice in presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues. The ASU is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted, including adoption during an interim period. We are currently assessing the impact this standard will have on our consolidated statement of cash flows. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . ASU 2017-07 will change how employers that sponsor defined benefit pension and/or other post-retirement benefit plans present the net periodic benefit cost in the income statement. Employers will present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Employers will present the other components of the net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. This standard is effective for public business entities for annual periods or any interim periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted. We do not expect the new guidance to have a material impact on its financial condition or results of operation. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted Cash . The ASU requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. We will adopt the guidance beginning October 1, 2018 applied retrospectively to all periods presented. The adoption is not expected to have a material impact on our consolidated financial position or cash flows. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 9 Months Ended |
Jun. 30, 2017 | |
Guarantor and Non-Guarantor Financial Information | |
Guarantor and Non-Guarantor Financial Information | 17. In March 2015, Helmerich & Payne International Drilling Co. (“the issuer”), a 100 percent owned subsidiary of Helmerich & Payne, Inc. (“parent”, “the guarantor”), issued senior unsecured notes with an aggregate principal amount of $500.0 million. The notes are fully and unconditionally guaranteed by the parent. No subsidiaries of 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 Securities and Exchange Commission disclosure requirements. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements. Condensed consolidating financial information for the issuer, Helmerich & Payne International Drilling Co., and parent, guarantor, Helmerich & Payne, Inc. is shown in the tables below. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Three Months Ended June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ 439,227 $ 59,355 $ (18) $ 498,564 Operating costs and other 3,364 463,220 60,224 (216) 526,592 Operating loss from continuing operations (3,364) (23,993) (869) 198 (28,028) Other income (expense), net (4) 2,052 (1,061) (198) 789 Interest expense (87) (5,294) (983) — (6,364) Equity in net income (loss) of subsidiaries (19,510) (85) — 19,595 — Loss from continuing operations before income taxes (22,965) (27,320) (2,913) 19,595 (33,603) Income tax provision (1,166) (7,360) (1,952) — (10,478) Loss from continuing operations (21,799) (19,960) (961) 19,595 (23,125) Loss from discontinued operations before income taxes — — 3,223 — 3,223 Income tax provision — — 1,897 — 1,897 Loss from discontinued operations — — 1,326 — 1,326 Net income (loss) $ (21,799) $ (19,960) $ 365 $ 19,595 $ (21,799) CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands) Three Months Ended June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income (loss) $ (21,799) $ (19,960) $ 365 $ 19,595 $ (21,799) Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — (6,899) — — (6,899) Minimum pension liability adjustments, net 104 261 — — 365 Other comprehensive income (loss) 104 (6,638) — — (6,534) Comprehensive income (loss) $ (21,695) $ (26,598) $ 365 $ 19,595 $ (28,333) CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Three Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ 315,077 $ 51,429 $ (20) $ 366,486 Operating costs and other 3,712 314,620 61,700 (290) 379,742 Operating income (loss) from continuing operations (3,712) 457 (10,271) 270 (13,256) Other income, net 16 1,290 276 (270) 1,312 Interest expense (62) (5,597) (748) — (6,407) Equity in net loss of subsidiaries (18,572) (7,796) — 26,368 — Loss from continuing operations before income taxes (22,330) (11,646) (10,743) 26,368 (18,351) Income tax provision (1,130) 7,230 (3,258) — 2,842 Loss from continuing operations (21,200) (18,876) (7,485) 26,368 (21,193) Income from discontinued operations before income taxes — — 2,193 — 2,193 Income tax provision — — 2,200 — 2,200 Loss from discontinued operations — — (7) — (7) Net loss $ (21,200) $ (18,876) $ (7,492) $ 26,368 $ (21,200) CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands) Three Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net loss $ (21,200) $ (18,876) $ (7,492) $ 26,368 $ (21,200) Other comprehensive income, net of income taxes: Unrealized depreciation on securities, net — 9,744 — — 9,744 Minimum pension liability adjustments, net 107 207 — — 314 Other comprehensive income 107 9,951 — — 10,058 Comprehensive loss $ (21,093) $ (8,925) $ (7,492) $ 26,368 $ (11,142) CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Nine Months Ended June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ 1,103,877 $ 168,611 $ (51) $ 1,272,437 Operating costs and other 10,124 1,218,266 187,588 (677) 1,415,301 Operating loss from continuing operations (10,124) (114,389) (18,977) 626 (142,864) Other income, net (3) 4,885 (578) (626) 3,678 Interest expense (260) (15,151) (2,092) — (17,503) Equity in net loss of subsidiaries (99,179) (10,874) — 110,053 — Loss from continuing operations before income taxes (109,566) (135,529) (21,647) 110,053 (156,689) Income tax provision (3,886) (37,320) (9,331) — (50,537) Loss from continuing operations (105,680) (98,209) (12,316) 110,053 (106,152) Loss from discontinued operations before income taxes — — 2,705 — 2,705 Income tax provision — — 2,233 — 2,233 Loss from discontinued operations — — 472 — 472 Net loss $ (105,680) $ (98,209) $ (11,844) $ 110,053 $ (105,680) CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net loss $ (105,680) $ (98,209) $ (11,844) $ 110,053 $ (105,680) Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — (4,994) — — (4,994) Minimum pension liability adjustments, net 316 781 — — 1,097 Other comprehensive income (loss) 316 (4,213) — — (3,897) Comprehensive loss $ (105,364) $ (102,422) $ (11,844) $ 110,053 $ (109,577) CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Nine Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ 1,103,361 $ 189,216 $ (53) $ 1,292,524 Operating costs and other 9,573 1,003,369 213,640 (1,093) 1,225,489 Operating income (loss) from continuing operations (9,573) 99,992 (24,424) 1,040 67,035 Other income (expense), net (235) 2,680 1,831 (1,040) 3,236 Interest expense (186) (15,587) (879) — (16,652) Equity in net income (loss) of subsidiaries 22,042 (23,811) — 1,769 — Income (loss) from continuing operations before income taxes 12,048 63,274 (23,472) 1,769 53,619 Income tax provision (3,959) 42,114 (4,415) — 33,740 Income (loss) from continuing operations 16,007 21,160 (19,057) 1,769 19,879 Income from discontinued operations before income taxes — — 2,241 — 2,241 Income tax provision — — 6,113 — 6,113 Loss from discontinued operations — — (3,872) — (3,872) Net income (loss) $ 16,007 $ 21,160 $ (22,929) $ 1,769 $ 16,007 CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income (loss) $ 16,007 $ 21,160 $ (22,929) $ 1,769 $ 16,007 Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — (2,719) — — (2,719) Minimum pension liability adjustments, net 322 618 — — 940 Other comprehensive income (loss) 322 (2,101) — — (1,779) Comprehensive income (loss) $ 16,329 $ 19,059 $ (22,929) $ 1,769 $ 14,228 CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ (1,141) $ 559,945 $ 13,983 $ — $ 572,787 Short-term investments — 39,894 — — 39,894 Accounts receivable, net of reserve 2,095 380,873 57,909 (5) 440,872 Inventories — 103,066 35,337 — 138,403 Prepaid expenses and other 14,701 7,159 66,820 (30,255) 58,425 Current assets of discontinued operations — — 7 — 7 Total current assets 15,655 1,090,937 174,056 (30,260) 1,250,388 Investments 13,606 63,380 — — 76,986 Property, plant and equipment, net 51,118 4,658,226 353,570 — 5,062,914 Intercompany 90,685 1,736,767 269,194 (2,096,646) — Goodwill — — 51,967 — 51,967 Intangible assets, net of amortization — — 51,569 — 51,569 Other assets 4,992 5,577 9,498 — 20,067 Investment in subsidiaries 5,480,782 197,768 — (5,678,550) — Total assets $ 5,656,838 $ 7,752,655 $ 909,854 $ (7,805,456) $ 6,513,891 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 80,333 $ 52,929 $ 3,944 $ — $ 137,206 Accrued liabilities 26,104 172,480 28,319 (30,260) 196,643 Current liabilities of discontinued operations — — 80 — 80 Total current liabilities 106,437 225,409 32,343 (30,260) 333,929 Noncurrent liabilities: Long-term debt — 492,637 — — 492,637 Deferred income taxes (9,099) 1,272,699 61,650 — 1,325,250 Intercompany 1,284,237 255,190 557,119 (2,096,546) — Other 25,359 41,849 41,738 — 108,946 Noncurrent liabilities of discontinued operations — — 3,225 — 3,225 Total noncurrent liabilities 1,300,497 2,062,375 663,732 (2,096,546) 1,930,058 Shareholders’ equity: Common stock 11,190 100 — (100) 11,190 Additional paid-in capital 478,231 51,993 967 (52,960) 478,231 Retained earnings 3,954,705 5,411,898 212,812 (5,624,710) 3,954,705 Accumulated other comprehensive income (4,101) 880 — (880) (4,101) Treasury stock, at cost (190,121) — — — (190,121) Total shareholders’ equity 4,249,904 5,464,871 213,779 (5,678,650) 4,249,904 Total liabilities and shareholders’ equity $ 5,656,838 $ 7,752,655 $ 909,854 $ (7,805,456) $ 6,513,891 CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) September 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ (955) $ 899,028 $ 7,488 $ — $ 905,561 Short-term investments — 44,148 — — 44,148 Accounts receivable, net of reserve 2 325,325 51,121 (1,279) 375,169 Inventories — 87,946 36,379 — 124,325 Prepaid expenses and other 6,928 20,625 71,753 (21,239) 78,067 Assets held for sale — 18,471 26,881 — 45,352 Current assets of discontinued operations — — 64 — 64 Total current assets 5,975 1,395,543 193,686 (22,518) 1,572,686 Investments 13,431 71,524 — — 84,955 Property, plant and equipment, net 59,173 4,716,736 368,824 — 5,144,733 Intercompany 16,147 1,399,323 260,939 (1,676,409) — Goodwill — — 4,718 — 4,718 Intangible assets, net of amortization — — 919 — 919 Other assets 233 267 23,508 — 24,008 Investment in subsidiaries 5,579,713 208,118 — (5,787,831) — Total assets $ 5,674,672 $ 7,791,511 $ 852,594 $ (7,486,758) $ 6,832,019 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 80,000 $ 10,868 $ 5,828 $ (1,274) $ 95,422 Accrued liabilities 1,822 176,985 35,598 20,234 234,639 Current liabilities of discontinued operations — — 59 — 59 Total current liabilities 81,822 187,853 41,485 18,960 330,120 Noncurrent liabilities: Long-term debt — 491,847 — — 491,847 Deferred income taxes (5,930) 1,303,324 45,062 — 1,342,456 Intercompany 1,016,673 209,276 491,838 (1,717,787) — Other 21,182 36,379 45,220 — 102,781 Noncurrent liabilities of discontinued operations — — 3,890 — 3,890 Total noncurrent liabilities 1,031,925 2,040,826 586,010 (1,717,787) 1,940,974 Shareholders’ equity: Common stock 11,140 100 — (100) 11,140 Additional paid-in capital 448,452 47,533 549 (48,082) 448,452 Retained earnings 4,289,807 5,510,105 224,550 (5,734,655) 4,289,807 Accumulated other comprehensive income (loss) (204) 5,094 — (5,094) (204) Treasury stock, at cost (188,270) — — — (188,270) Total shareholders’ equity 4,560,925 5,562,832 225,099 (5,787,931) 4,560,925 Total liabilities and shareholders’ equity $ 5,674,672 $ 7,791,511 $ 852,594 $ (7,486,758) $ 6,832,019 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (4,457) $ 231,133 $ 9,458 $ — $ 236,134 INVESTING ACTIVITIES: Capital expenditures (2,344) (293,946) (3,985) — (300,275) Purchase of short-term investments — (48,958) — — (48,958) Acquisition of business, net cash received (70,416) — — — (70,416) Proceeds from sale of short-term investments — 53,150 — — 53,150 Intercompany transfers 72,760 (72,760) — — — Proceeds from asset sales — 17,316 605 — 17,921 Net cash provided by (used in) investing activities — (345,198) (3,380) — (348,578) FINANCING ACTIVITIES: Intercompany transfers 229,061 (229,061) — — — Dividends paid (229,061) — — — (229,061) Exercise of stock options, net of tax withholding 10,458 — — — 10,458 Tax withholdings related to net share settlements of restricted stock (5,848) — — — (5,848) Excess tax benefit from stock-based compensation (339) 4,043 417 — 4,121 Net cash provided by (used in) financing activities 4,271 (225,018) 417 — (220,330) Net increase (decrease) in cash and cash equivalents (186) (339,083) 6,495 — (332,774) Cash and cash equivalents, beginning of period (955) 899,028 7,488 — 905,561 Cash and cash equivalents, end of period $ (1,141) $ 559,945 $ 13,983 $ — $ 572,787 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ 4,127 $ 631,371 $ (20,088) $ — $ 615,410 INVESTING ACTIVITIES: Capital expenditures (15,515) (200,611) (3,423) — (219,549) Purchase of short-term investments — (36,958) — — (36,958) Proceeds from sale of short-term investments — 32,681 — — 32,681 Intercompany transfers 15,515 (15,515) — — — Proceeds from asset sales 8 10,956 1,840 — 12,804 Net cash provided by (used in) investing activities 8 (209,447) (1,583) — (211,022) FINANCING ACTIVITIES: Debt issuance costs — (32) — — (32) Intercompany transfers 224,040 (224,040) — — — Dividends paid (224,040) — — — (224,040) Exercise of stock options, net of tax withholding 483 — — — 483 Tax withholdings related to net share settlements of restricted stock (3,912) — — — (3,912) Excess tax benefit from stock-based compensation (788) 1,351 198 — 761 Net cash provided by (used in) financing activities (4,217) (222,721) 198 — (226,740) Net increase (decrease) in cash and cash equivalents (82) 199,203 (21,473) — 177,648 Cash and cash equivalents, beginning of period (838) 693,273 36,949 — 729,384 Cash and cash equivalents, end of period $ (920) $ 892,476 $ 15,476 $ — $ 907,032 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Business Combinations | |
Summarizes the purchase price and the final allocation of the fair values of assets acquired and liabilities assumed | The following table summarizes the purchase price and the preliminary allocation of the fair values of assets acquired and liabilities assumed and separately identifiable intangible assets at the acquisition date (in thousands): Purchase Price Consideration given Cash consideration $ 74,275 Long-term contingent earnout liability (Other noncurrent liabilities) 14,509 Total consideration given $ 88,784 Allocation of Purchase Price Fair value of assets acquired Current assets $ 4,425 Property, plant and equipment 300 Intangible asset - developed technology (Intangible assets, net of amortization) 51,000 Goodwill 47,249 Total assets acquired $ 102,974 Fair value of liabilities assumed Current liabilities $ 25 Deferred income taxes 14,165 Total liabilities acquired $ 14,190 Fair value of total assets and liabilities acquired $ 88,784 |
Pro forma of financial information | Pro Forma Nine Months Ended June 30, 2017 2016 (unaudited) (in thousands) Revenues $ 1,275,646 $ 1,294,146 Net loss $ (105,482) $ (18,292) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Earnings per Share | |
Schedule of computation of basic and diluted earnings per share | Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands, except per share amounts) Numerator: Income (loss) from continuing operations $ (23,125) $ (21,193) $ (106,152) $ 19,879 Income (loss) from discontinued operations 1,326 (7) 472 (3,872) Net income (loss) (21,799) (21,200) (105,680) 16,007 Adjustment for basic earnings per share Earnings allocated to unvested shareholders (458) (451) (1,349) (1,410) Numerator for basic earnings per share: From continuing operations (23,583) (21,644) (107,501) 18,469 From discontinued operations 1,326 (7) 472 (3,872) (22,257) (21,651) (107,029) 14,597 Adjustment for diluted earnings per share: Effect of reallocating undistributed earnings of unvested shareholders — — — — Numerator for diluted earnings per share: From continuing operations (23,583) (21,644) (107,501) 18,469 From discontinued operations 1,326 (7) 472 (3,872) $ (22,257) $ (21,651) $ (107,029) $ 14,597 Denominator: Denominator for basic earnings per share - weighted-average shares 108,572 108,047 108,470 107,970 Effect of dilutive shares from stock options and restricted stock — — — 553 Denominator for diluted earnings per share - adjusted weighted-average shares 108,572 108,047 108,470 108,523 Basic earnings per common share: Income (loss) from continuing operations $ (0.22) $ (0.20) $ (0.99) $ 0.18 Income (loss) from discontinued operations 0.01 — — (0.04) Net income (loss) $ (0.21) $ (0.20) $ (0.99) $ 0.14 Diluted earnings per common share: Income (loss) from continuing operations $ (0.22) $ (0.20) $ (0.99) $ 0.17 Income (loss) from discontinued operations 0.01 — — (0.04) Net income (loss) $ (0.21) $ (0.20) $ (0.99) $ 0.13 |
Schedule of 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, 2017 2016 2017 2016 (in thousands, except per share amounts) (in thousands, except per share amounts) Shares excluded from calculation of diluted earnings per share 1,332 3,409 1,034 1,861 Weighted-average price per share $ 70.82 $ 51.94 $ 73.84 $ 63.70 |
Financial Instruments and Fai29
Financial Instruments and Fair Value Measurement (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
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, 2017 $ 38,473 $ 27,067 $ (2,160) $ 63,380 September 30, 2016 $ 38,473 $ 33,051 $ — $ 71,524 |
Summary of assets and liabilities measured at fair value | The following table summarizes our assets and liabilities measured at fair value presented in our Consolidated Condensed Balance Sheet as of June 30, 2017: Fair Value (Level 1) (Level 2) (Level 3) (in thousands) Recurring fair value measurements: Short-term investments: Certificate of deposit $ 4,600 $ — $ 4,600 $ — Corporate and municipal debt securities 13,877 — 13,877 — U.S. government and federal agency securities 21,417 17,419 3,998 — Total short-term investments 39,894 17,419 22,475 — Cash and cash equivalents 572,787 572,787 — — Investments 63,380 63,380 — — Other current assets 32,917 32,667 250 — Other assets 6,690 6,690 — — Total assets measured at fair value $ 715,668 $ 692,943 $ 22,725 $ — Liabilities Contingent earnout liability $ 14,509 $ — $ — $ 14,509 |
Summary of supplemental fair value information about long-term fixed-rate debt | June 30, September 30, 2017 2016 (in millions) Carrying value of long-term fixed-rate debt $ 492.6 $ 491.8 Fair value of long-term fixed-rate debt $ 527.2 $ 529.6 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Shareholders’ Equity | |
Schedule of components of accumulated other comprehensive income (loss) | June 30, September 30, 2017 2016 (in thousands) Pre-tax amounts: Unrealized appreciation on securities $ 24,907 $ 33,051 Unrealized actuarial loss (32,387) (34,112) $ (7,480) $ (1,061) After-tax amounts: Unrealized appreciation on securities $ 15,905 $ 20,899 Unrealized actuarial loss (20,006) (21,103) $ (4,101) $ (204) |
Summary of the changes in accumulated other comprehensive income, net of tax, by component | Three Months Ended June 30, 2017 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balance at April 1, 2017 $ 22,804 $ (20,371) $ 2,433 Other comprehensive loss before reclassifications (6,899) — (6,899) Amounts reclassified from accumulated other comprehensive income — 365 365 Net current-period other comprehensive income (loss) (6,899) 365 (6,534) Balance June 30, 2017 $ 15,905 $ (20,006) $ (4,101) Nine Months Ended June 30, 2017 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balance at October 1, 2016 $ 20,899 $ (21,103) $ (204) Other comprehensive loss before reclassifications (4,994) — (4,994) Amounts reclassified from accumulated other comprehensive income — 1,097 1,097 Net current-period other comprehensive income (loss) (4,994) 1,097 (3,897) Balance June 30, 2017 $ 15,905 $ (20,006) $ (4,101) |
Schedule of accumulated other comprehensive income components which were reclassified to the Condensed Consolidated Statements of Operations | Amount Amount Reclassified from Reclassified from Accumulated Other Accumulated Other Comprehensive Comprehensive Income (Loss) Income (Loss) Three Months Ended Nine Months Ended Details About Accumulated Other June 30, June 30, Affected Line Item in the Comprehensive Income (Loss) Components 2017 2016 2017 2016 Consolidated Statement of Operations (in thousands) (in thousands) Defined Benefit Pension Items Amortization of net actuarial loss $ 574 $ 493 $ 1,724 $ 1,479 General and administrative (209) (179) (627) (539) Income tax provision Total reclassifications for the period $ 365 $ 314 $ 1,097 $ 940 Net of tax |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
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, 2017 2016 2017 2016 (in thousands) (in thousands) Compensation expense Stock options $ 1,934 $ 1,722 $ 5,455 $ 7,048 Restricted stock 4,834 3,952 13,792 12,613 $ 6,768 $ 5,674 $ 19,247 $ 19,661 |
Summary of weighted-average assumptions utilized in determining the fair value of options granted | 2017 2016 Risk-free interest rate 2.0 % 1.8 % Expected stock volatility 38.9 % 37.6 % Dividend yield 3.7 % 4.6 % Expected term (in years) 5.5 5.5 |
Summary of stock option activity under all existing long-term incentive plans | Three Months Ended June 30, 2017 Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Shares Exercise Term Value (in thousands) Price (in years) (in millions) Outstanding at April 1, 2017 3,293 $ 55.90 — — Granted 62 53.11 — — Exercised (15) 35.11 — — Forfeited/Expired — — — $ — Outstanding at June 30, 2017 3,340 $ 55.93 5.8 $ 19.7 Vested and expected to vest at June 30, 2017 3,286 $ 55.71 5.7 $ 19.7 Exercisable at June 30, 2017 2,229 $ 50.31 4.4 $ 19.6 Nine Months Ended June 30, 2017 Weighted Average Shares Exercise (in thousands) Price Outstanding at October 1, 2016 3,312 $ 51.74 Granted 396 76.61 Exercised (355) 39.38 Forfeited/Expired (13) 70.37 Outstanding at June 30, 2017 3,340 $ 55.93 |
Summary of restricted stock awards and changes in restricted stock outstanding | Nine Months Ended June 30, 2017 Weighted Average Shares Exercise (in thousands) Price Unvested at October 1, 648 $ 64.24 Granted 292 78.69 Vested (1) (271) 63.81 Forfeited (9) 67.79 Unvested on June 30, 2017 660 $ 70.76 (1) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Debt | |
Schedule of components of unsecured long-term debt outstanding | Unamortized Discount and Principal Debt Issuance Costs June 30, September 30, June 30, September 30, 2017 2016 2017 2016 (in thousands) Unsecured senior notes issued March 19, 2015: Due March 19, 2025 $ 500,000 $ 500,000 $ (7,363) $ (8,153) 500,000 500,000 (7,363) (8,153) Less long-term debt due within one year — — — — Long-term debt $ 500,000 $ 500,000 $ (7,363) $ (8,153) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
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, 2017 and 2016 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2017 Contract Drilling U.S. Land $ 1,000,119 $ — $ 1,000,119 $ (90,718) Offshore 103,758 — 103,758 19,152 International Land 157,863 — 157,863 (5,225) 1,261,740 — 1,261,740 (76,791) Other 10,697 638 11,335 (5,752) 1,272,437 638 1,273,075 (82,543) Eliminations — (638) (638) — Total $ 1,272,437 $ — $ 1,272,437 $ (82,543) Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2016 Contract Drilling U.S. Land $ 1,004,116 $ — $ 1,004,116 $ 143,855 Offshore 106,697 — 106,697 13,105 International Land 171,529 — 171,529 (13,924) 1,282,342 — 1,282,342 143,036 Other 10,182 635 10,817 (4,839) 1,292,524 635 1,293,159 138,197 Eliminations — (635) (635) — Total $ 1,292,524 $ — $ 1,292,524 $ 138,197 Summarized financial information of our reportable segments for the three months ended June 30, 2017 and 2016 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2017 Contract Drilling U.S. Land $ 405,516 $ — $ 405,516 $ (7,980) Offshore 33,711 — 33,711 6,456 International Land 55,075 — 55,075 4,927 494,302 — 494,302 3,403 Other 4,262 222 4,484 (2,569) 498,564 222 498,786 834 Eliminations — (222) (222) — Total $ 498,564 $ — $ 498,564 $ 834 Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2016 Contract Drilling U.S. Land $ 285,028 $ — $ 285,028 $ 25,802 Offshore 30,492 — 30,492 2,084 International Land 47,983 — 47,983 (4,991) 363,503 — 363,503 22,895 Other 2,983 206 3,189 (2,186) 366,486 206 366,692 20,709 Eliminations — (206) (206) — Total $ 366,486 $ — $ 366,486 $ 20,709 |
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, 2017 2016 2017 2016 (in thousands) Segment operating income (loss) $ 834 $ 20,709 $ (82,543) $ 138,197 Income from asset sales 1,862 547 17,593 7,820 Corporate general and administrative costs and corporate depreciation (30,724) (34,512) (77,914) (78,982) Operating income (loss) (28,028) (13,256) (142,864) 67,035 Other income (expense) Interest and dividend income 1,700 778 4,028 2,310 Interest expense (6,364) (6,407) (17,503) (16,652) Other (911) 534 (350) 926 Total unallocated amounts (5,575) (5,095) (13,825) (13,416) Income (loss) from continuing operations before income taxes $ (33,603) $ (18,351) $ (156,689) $ 53,619 |
Schedule of total assets by reportable segment | June 30, September 30, 2017 2016 (in thousands) Total assets U.S. Land $ 4,974,364 $ 5,005,299 Offshore 98,568 105,152 International Land 417,241 487,181 Other 134,804 36,141 5,624,977 5,633,773 Investments and corporate operations 888,907 1,198,182 Total assets from continued operations 6,513,884 6,831,955 Discontinued operations 7 64 $ 6,513,891 $ 6,832,019 |
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, 2017 2016 2017 2016 (in thousands) Operating Revenues United States $ 443,489 $ 318,059 $ 1,114,574 $ 1,113,542 Argentina 43,167 33,208 114,516 118,365 Colombia 9,356 3,831 27,579 15,176 Ecuador 3 481 5 4,948 Other Foreign 2,549 10,907 15,763 40,493 Total $ 498,564 $ 366,486 $ 1,272,437 $ 1,292,524 |
Pensions and Other Post-retir34
Pensions and Other Post-retirement Benefits (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Pensions and Other Post-retirement Benefits | |
Schedule of components of Net Periodic Benefit Cost | Three Months Ended Nine Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Interest cost $ 975 $ 1,116 $ 2,925 $ 3,347 Expected return on plan assets (1,298) (1,490) (3,896) (4,470) Recognized net actuarial loss 574 493 1,724 1,479 Settlement 1,411 1,889 1,411 3,343 Net pension expense $ 1,662 $ 2,008 $ 2,164 $ 3,699 |
Supplemental Cash Flow Inform35
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Information | |
Schedule of supplemental cash flow information | Nine Months Ended June 30, 2017 2016 (in thousands) Capital expenditures incurred $ 315,735 $ 198,606 Additions incurred prior year but paid for in current year 9,465 25,344 Additions incurred but not paid for as of the end of the period (24,925) (4,401) Capital expenditures per Consolidated Statements of Cash Flows $ 300,275 $ 219,549 |
Guarantor and Non-Guarantor F36
Guarantor and Non-Guarantor Financial Information (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Guarantor and Non-Guarantor Financial Information | |
Schedule of Consolidated Condensed Statements of Operations | CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Three Months Ended June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ 439,227 $ 59,355 $ (18) $ 498,564 Operating costs and other 3,364 463,220 60,224 (216) 526,592 Operating loss from continuing operations (3,364) (23,993) (869) 198 (28,028) Other income (expense), net (4) 2,052 (1,061) (198) 789 Interest expense (87) (5,294) (983) — (6,364) Equity in net income (loss) of subsidiaries (19,510) (85) — 19,595 — Loss from continuing operations before income taxes (22,965) (27,320) (2,913) 19,595 (33,603) Income tax provision (1,166) (7,360) (1,952) — (10,478) Loss from continuing operations (21,799) (19,960) (961) 19,595 (23,125) Loss from discontinued operations before income taxes — — 3,223 — 3,223 Income tax provision — — 1,897 — 1,897 Loss from discontinued operations — — 1,326 — 1,326 Net income (loss) $ (21,799) $ (19,960) $ 365 $ 19,595 $ (21,799) CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Three Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ 315,077 $ 51,429 $ (20) $ 366,486 Operating costs and other 3,712 314,620 61,700 (290) 379,742 Operating income (loss) from continuing operations (3,712) 457 (10,271) 270 (13,256) Other income, net 16 1,290 276 (270) 1,312 Interest expense (62) (5,597) (748) — (6,407) Equity in net loss of subsidiaries (18,572) (7,796) — 26,368 — Loss from continuing operations before income taxes (22,330) (11,646) (10,743) 26,368 (18,351) Income tax provision (1,130) 7,230 (3,258) — 2,842 Loss from continuing operations (21,200) (18,876) (7,485) 26,368 (21,193) Income from discontinued operations before income taxes — — 2,193 — 2,193 Income tax provision — — 2,200 — 2,200 Loss from discontinued operations — — (7) — (7) Net loss $ (21,200) $ (18,876) $ (7,492) $ 26,368 $ (21,200) CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Nine Months Ended June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ 1,103,877 $ 168,611 $ (51) $ 1,272,437 Operating costs and other 10,124 1,218,266 187,588 (677) 1,415,301 Operating loss from continuing operations (10,124) (114,389) (18,977) 626 (142,864) Other income, net (3) 4,885 (578) (626) 3,678 Interest expense (260) (15,151) (2,092) — (17,503) Equity in net loss of subsidiaries (99,179) (10,874) — 110,053 — Loss from continuing operations before income taxes (109,566) (135,529) (21,647) 110,053 (156,689) Income tax provision (3,886) (37,320) (9,331) — (50,537) Loss from continuing operations (105,680) (98,209) (12,316) 110,053 (106,152) Loss from discontinued operations before income taxes — — 2,705 — 2,705 Income tax provision — — 2,233 — 2,233 Loss from discontinued operations — — 472 — 472 Net loss $ (105,680) $ (98,209) $ (11,844) $ 110,053 $ (105,680) CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (in thousands) Nine Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ 1,103,361 $ 189,216 $ (53) $ 1,292,524 Operating costs and other 9,573 1,003,369 213,640 (1,093) 1,225,489 Operating income (loss) from continuing operations (9,573) 99,992 (24,424) 1,040 67,035 Other income (expense), net (235) 2,680 1,831 (1,040) 3,236 Interest expense (186) (15,587) (879) — (16,652) Equity in net income (loss) of subsidiaries 22,042 (23,811) — 1,769 — Income (loss) from continuing operations before income taxes 12,048 63,274 (23,472) 1,769 53,619 Income tax provision (3,959) 42,114 (4,415) — 33,740 Income (loss) from continuing operations 16,007 21,160 (19,057) 1,769 19,879 Income from discontinued operations before income taxes — — 2,241 — 2,241 Income tax provision — — 6,113 — 6,113 Loss from discontinued operations — — (3,872) — (3,872) Net income (loss) $ 16,007 $ 21,160 $ (22,929) $ 1,769 $ 16,007 |
Schedule of Consolidated Condensed Statements of Comprehensive Income | CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands) Three Months Ended June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income (loss) $ (21,799) $ (19,960) $ 365 $ 19,595 $ (21,799) Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — (6,899) — — (6,899) Minimum pension liability adjustments, net 104 261 — — 365 Other comprehensive income (loss) 104 (6,638) — — (6,534) Comprehensive income (loss) $ (21,695) $ (26,598) $ 365 $ 19,595 $ (28,333) CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Three Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net loss $ (21,200) $ (18,876) $ (7,492) $ 26,368 $ (21,200) Other comprehensive income, net of income taxes: Unrealized depreciation on securities, net — 9,744 — — 9,744 Minimum pension liability adjustments, net 107 207 — — 314 Other comprehensive income 107 9,951 — — 10,058 Comprehensive loss $ (21,093) $ (8,925) $ (7,492) $ 26,368 $ (11,142) CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net loss $ (105,680) $ (98,209) $ (11,844) $ 110,053 $ (105,680) Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — (4,994) — — (4,994) Minimum pension liability adjustments, net 316 781 — — 1,097 Other comprehensive income (loss) 316 (4,213) — — (3,897) Comprehensive loss $ (105,364) $ (102,422) $ (11,844) $ 110,053 $ (109,577) CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income (loss) $ 16,007 $ 21,160 $ (22,929) $ 1,769 $ 16,007 Other comprehensive income (loss), net of income taxes: Unrealized depreciation on securities, net — (2,719) — — (2,719) Minimum pension liability adjustments, net 322 618 — — 940 Other comprehensive income (loss) 322 (2,101) — — (1,779) Comprehensive income (loss) $ 16,329 $ 19,059 $ (22,929) $ 1,769 $ (14,228) |
Schedule of Consolidated Condensed Balance Sheets | CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ (1,141) $ 559,945 $ 13,983 $ — $ 572,787 Short-term investments — 39,894 — — 39,894 Accounts receivable, net of reserve 2,095 380,873 57,909 (5) 440,872 Inventories — 103,066 35,337 — 138,403 Prepaid expenses and other 14,701 7,159 66,820 (30,255) 58,425 Current assets of discontinued operations — — 7 — 7 Total current assets 15,655 1,090,937 174,056 (30,260) 1,250,388 Investments 13,606 63,380 — — 76,986 Property, plant and equipment, net 51,118 4,658,226 353,570 — 5,062,914 Intercompany 90,685 1,736,767 269,194 (2,096,646) — Goodwill — — 51,967 — 51,967 Intangible assets, net of amortization — — 51,569 — 51,569 Other assets 4,992 5,577 9,498 — 20,067 Investment in subsidiaries 5,480,782 197,768 — (5,678,550) — Total assets $ 5,656,838 $ 7,752,655 $ 909,854 $ (7,805,456) $ 6,513,891 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 80,333 $ 52,929 $ 3,944 $ — $ 137,206 Accrued liabilities 26,104 172,480 28,319 (30,260) 196,643 Current liabilities of discontinued operations — — 80 — 80 Total current liabilities 106,437 225,409 32,343 (30,260) 333,929 Noncurrent liabilities: Long-term debt — 492,637 — — 492,637 Deferred income taxes (9,099) 1,272,699 61,650 — 1,325,250 Intercompany 1,284,237 255,190 557,119 (2,096,546) — Other 25,359 41,849 41,738 — 108,946 Noncurrent liabilities of discontinued operations — — 3,225 — 3,225 Total noncurrent liabilities 1,300,497 2,062,375 663,732 (2,096,546) 1,930,058 Shareholders’ equity: Common stock 11,190 100 — (100) 11,190 Additional paid-in capital 478,231 51,993 967 (52,960) 478,231 Retained earnings 3,954,705 5,411,898 212,812 (5,624,710) 3,954,705 Accumulated other comprehensive income (4,101) 880 — (880) (4,101) Treasury stock, at cost (190,121) — — — (190,121) Total shareholders’ equity 4,249,904 5,464,871 213,779 (5,678,650) 4,249,904 Total liabilities and shareholders’ equity $ 5,656,838 $ 7,752,655 $ 909,854 $ (7,805,456) $ 6,513,891 CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) September 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ (955) $ 899,028 $ 7,488 $ — $ 905,561 Short-term investments — 44,148 — — 44,148 Accounts receivable, net of reserve 2 325,325 51,121 (1,279) 375,169 Inventories — 87,946 36,379 — 124,325 Prepaid expenses and other 6,928 20,625 71,753 (21,239) 78,067 Assets held for sale — 18,471 26,881 — 45,352 Current assets of discontinued operations — — 64 — 64 Total current assets 5,975 1,395,543 193,686 (22,518) 1,572,686 Investments 13,431 71,524 — — 84,955 Property, plant and equipment, net 59,173 4,716,736 368,824 — 5,144,733 Intercompany 16,147 1,399,323 260,939 (1,676,409) — Goodwill — — 4,718 — 4,718 Intangible assets, net of amortization — — 919 — 919 Other assets 233 267 23,508 — 24,008 Investment in subsidiaries 5,579,713 208,118 — (5,787,831) — Total assets $ 5,674,672 $ 7,791,511 $ 852,594 $ (7,486,758) $ 6,832,019 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 80,000 $ 10,868 $ 5,828 $ (1,274) $ 95,422 Accrued liabilities 1,822 176,985 35,598 20,234 234,639 Current liabilities of discontinued operations — — 59 — 59 Total current liabilities 81,822 187,853 41,485 18,960 330,120 Noncurrent liabilities: Long-term debt — 491,847 — — 491,847 Deferred income taxes (5,930) 1,303,324 45,062 — 1,342,456 Intercompany 1,016,673 209,276 491,838 (1,717,787) — Other 21,182 36,379 45,220 — 102,781 Noncurrent liabilities of discontinued operations — — 3,890 — 3,890 Total noncurrent liabilities 1,031,925 2,040,826 586,010 (1,717,787) 1,940,974 Shareholders’ equity: Common stock 11,140 100 — (100) 11,140 Additional paid-in capital 448,452 47,533 549 (48,082) 448,452 Retained earnings 4,289,807 5,510,105 224,550 (5,734,655) 4,289,807 Accumulated other comprehensive income (loss) (204) 5,094 — (5,094) (204) Treasury stock, at cost (188,270) — — — (188,270) Total shareholders’ equity 4,560,925 5,562,832 225,099 (5,787,931) 4,560,925 Total liabilities and shareholders’ equity $ 5,674,672 $ 7,791,511 $ 852,594 $ (7,486,758) $ 6,832,019 |
Schedule of Consolidated Condensed Statements of Cash Flows | CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (4,457) $ 231,133 $ 9,458 $ — $ 236,134 INVESTING ACTIVITIES: Capital expenditures (2,344) (293,946) (3,985) — (300,275) Purchase of short-term investments — (48,958) — — (48,958) Acquisition of business, net cash received (70,416) — — — (70,416) Proceeds from sale of short-term investments — 53,150 — — 53,150 Intercompany transfers 72,760 (72,760) — — — Proceeds from asset sales — 17,316 605 — 17,921 Net cash provided by (used in) investing activities — (345,198) (3,380) — (348,578) FINANCING ACTIVITIES: Intercompany transfers 229,061 (229,061) — — — Dividends paid (229,061) — — — (229,061) Exercise of stock options, net of tax withholding 10,458 — — — 10,458 Tax withholdings related to net share settlements of restricted stock (5,848) — — — (5,848) Excess tax benefit from stock-based compensation (339) 4,043 417 — 4,121 Net cash provided by (used in) financing activities 4,271 (225,018) 417 — (220,330) Net increase (decrease) in cash and cash equivalents (186) (339,083) 6,495 — (332,774) Cash and cash equivalents, beginning of period (955) 899,028 7,488 — 905,561 Cash and cash equivalents, end of period $ (1,141) $ 559,945 $ 13,983 $ — $ 572,787 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2016 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ 4,127 $ 631,371 $ (20,088) $ — $ 615,410 INVESTING ACTIVITIES: Capital expenditures (15,515) (200,611) (3,423) — (219,549) Purchase of short-term investments — (36,958) — — (36,958) Proceeds from sale of short-term investments — 32,681 — — 32,681 Intercompany transfers 15,515 (15,515) — — — Proceeds from asset sales 8 10,956 1,840 — 12,804 Net cash provided by (used in) investing activities 8 (209,447) (1,583) — (211,022) FINANCING ACTIVITIES: Debt issuance costs — (32) — — (32) Intercompany transfers 224,040 (224,040) — — — Dividends paid (224,040) — — — (224,040) Exercise of stock options, net of tax withholding 483 — — — 483 Tax withholdings related to net share settlements of restricted stock (3,912) — — — (3,912) Excess tax benefit from stock-based compensation (788) 1,351 198 — 761 Net cash provided by (used in) financing activities (4,217) (222,721) 198 — (226,740) Net increase (decrease) in cash and cash equivalents (82) 199,203 (21,473) — 177,648 Cash and cash equivalents, beginning of period (838) 693,273 36,949 — 729,384 Cash and cash equivalents, end of period $ (920) $ 892,476 $ 15,476 $ — $ 907,032 |
Basis of Presentation, Early Te
Basis of Presentation, Early Termination Revenue and Abondonments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basis of Presentation | ||||
Early termination revenue | $ 5.1 | $ 80.7 | $ 24.8 | $ 189.2 |
Abandonments | $ 7.7 | $ 27.2 | $ 0.9 |
Basis of Presentation, Sale of
Basis of Presentation, Sale of Rig (Details) | 3 Months Ended |
Mar. 31, 2017item | |
Sale | Idle Offshore Rig | |
Disposal by sale | |
Number of rigs sold | 1 |
Basis of Presentation, Foreign
Basis of Presentation, Foreign Currency (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basis of Presentation | ||||
Foreign currency gains (losses) | $ (1.3) | $ (1.1) | $ (3.3) | $ (9.4) |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | Jun. 02, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 |
Fair value of assets acquired | ||||
Goodwill | $ 51,967 | $ 4,718 | ||
MOTIVE Merger | ||||
Business Combinations | ||||
Payment for business acquisition | $ 74,275 | |||
Future potential earnout payments | 25,000 | |||
Business acquisition transaction cost | 2,800 | |||
Revenues | 1,100 | |||
Net loss | (700) | |||
Expected annual amortization | 3,400 | |||
Purchase Price | ||||
Payment for business acquisition | 74,275 | |||
Long-term contingent earnout liability (Other noncurrent liabilities) | 14,509 | |||
Total cash consideration given | 88,784 | |||
Fair value of assets acquired | ||||
Current assets | 4,425 | |||
Property, plant and equipment | 300 | |||
Goodwill | 47,249 | |||
Total assets acquired | 102,974 | |||
Fair value of liabilities assumed | ||||
Current liabilities | 25 | |||
Deferred income taxes | 14,165 | |||
Total liabilities acquired | 14,190 | |||
Fair value of total assets and liabilities acquired | $ 88,784 | |||
Proforma financial information: | ||||
After tax transaction cost adjusted for proforma financial information | 1,000 | |||
Business Acquisition, Pro Forma Revenue | 1,275,646 | $ 1,294,146 | ||
Net loss | $ (105,482) | $ (18,292) | ||
MOTIVE Merger | Developed technology | ||||
Business Combinations | ||||
Amortization period of developed technology | 15 years | |||
Fair value of assets acquired | ||||
Intangible asset - developed technology (Intangible assets, net of amortization) | $ 51,000 |
Earnings per Share, Basic and d
Earnings per Share, Basic and diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||||
Income (loss) from continuing operations | $ (23,125) | $ (21,193) | $ (106,152) | $ 19,879 |
Income (loss) from discontinued operations | 1,326 | (7) | 472 | (3,872) |
NET INCOME (LOSS) | (21,799) | (21,200) | (105,680) | 16,007 |
Adjustment for basic earnings per share: | ||||
Earnings allocated to unvested shareholders | (458) | (451) | (1,349) | (1,410) |
Numerator for basic earnings per share: | ||||
From continuing operations | (23,583) | (21,644) | (107,501) | 18,469 |
From discontinued operations | 1,326 | (7) | 472 | (3,872) |
Net income (loss) attributable to parent, basic | (22,257) | (21,651) | (107,029) | 14,597 |
Numerator for diluted earnings per share: | ||||
From continuing operations | (23,583) | (21,644) | (107,501) | 18,469 |
From discontinued operations | 1,326 | (7) | 472 | (3,872) |
Net income (loss) attributable to parent, diluted | $ (22,257) | $ (21,651) | $ (107,029) | $ 14,597 |
Denominator: | ||||
Denominator for basic earnings per share – weighted-average shares | 108,572 | 108,047 | 108,470 | 107,970 |
Effect of dilutive shares from stock options and restricted stock (in shares) | 553 | |||
Denominator for diluted earnings per share – adjusted weighted-average shares | 108,572 | 108,047 | 108,470 | 108,523 |
Basic earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | $ (0.22) | $ (0.20) | $ (0.99) | $ 0.18 |
Income (loss) from discontinued operations (in dollars per share) | 0.01 | (0.04) | ||
Net income (loss) (in dollars per share) | (0.21) | (0.20) | (0.99) | 0.14 |
Diluted earnings per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | (0.22) | (0.20) | (0.99) | 0.17 |
Income (loss) from discontinued operations (in dollars per share) | 0.01 | (0.04) | ||
Net income (loss) (in dollars per share) | $ (0.21) | $ (0.20) | $ (0.99) | $ 0.13 |
Outstanding equity awards | ||||
Shares excluded from calculation of diluted earnings per share (in shares) | 1,332 | 3,409 | 1,034 | 1,861 |
Weighted-average price per share (in dollars per share) | $ 70.82 | $ 51.94 | $ 73.84 | $ 63.70 |
Financial Instruments and Fai42
Financial Instruments and Fair Value Measurement - Equity Securities (Details) $ / shares in Units, $ in Thousands | Jun. 30, 2017USD ($)item$ / sharesshares | May 26, 2017$ / shares | Sep. 30, 2016USD ($) |
Available-for-sale securities | |||
Number of securities in an unrealized loss position under 30 days | item | 1 | ||
Ensco plc | Definitive merger agreement | |||
Available-for-sale securities | |||
Ensco’s closing share price | $ / shares | $ 6.70 | ||
Ensco plc | Atwood Oceanics, Inc | Definitive merger agreement | |||
Available-for-sale securities | |||
Number of shares issued in merger agreement | shares | 1.60 | ||
Value of share price (in dollars per share) | $ / shares | $ 10.72 | ||
Atwood Oceanics, Inc | Definitive merger agreement | |||
Available-for-sale securities | |||
Percentage of approval required for merger | 0.67% | ||
(Level 1) | |||
Non-qualified Supplemental Savings Plan | |||
Assets held in Non-qualified Supplement Savings Plan, at fair value | $ 13,600 | $ 13,400 | |
Equity securities | |||
Available-for-sale securities | |||
Cost | 38,473 | 38,473 | |
Gross Unrealized Gains | 27,067 | 33,051 | |
Gross Unrealized Losses | (2,160) | ||
Estimated Fair Value | $ 63,380 | $ 71,524 |
Financial Instruments and Fai43
Financial Instruments and Fair Value Measurement - Assets measured at fair value and Supplemental fair value information (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | Mar. 19, 2015 |
Supplemental fair value information about long-term fixed-rate debt | |||
Carrying value of long-term fixed-rate debt | $ 492,637 | $ 491,847 | |
Unsecured senior notes issued March 19, 2015 | |||
Supplemental fair value information about long-term fixed-rate debt | |||
Debt issued | 500,000 | $ 500,000 | |
Recurring basis | |||
Short-term investments: | |||
Short-term investments | 39,894 | ||
Assets: | |||
Cash and cash equivalents | 572,787 | ||
Investments | 63,380 | ||
Other current assets | 32,917 | ||
Other assets | 6,690 | ||
Total assets measured at fair value | 715,668 | ||
Liabilities: | |||
Contingent earnout liability | 14,509 | ||
Carrying value | |||
Supplemental fair value information about long-term fixed-rate debt | |||
Carrying value of long-term fixed-rate debt | 492,600 | 491,800 | |
(Level 1) | Recurring basis | |||
Short-term investments: | |||
Short-term investments | 17,419 | ||
Assets: | |||
Cash and cash equivalents | 572,787 | ||
Investments | 63,380 | ||
Other current assets | 32,667 | ||
Other assets | 6,690 | ||
Total assets measured at fair value | 692,943 | ||
(Level 2) | Recurring basis | |||
Short-term investments: | |||
Short-term investments | 22,475 | ||
Assets: | |||
Other current assets | 250 | ||
Total assets measured at fair value | 22,725 | ||
(Level 2) | Total Measure at Fair Value | |||
Supplemental fair value information about long-term fixed-rate debt | |||
Fair value of long-term fixed-rate debt | 527,200 | $ 529,600 | |
(Level 3) | Recurring basis | |||
Liabilities: | |||
Contingent earnout liability | 14,509 | ||
Certificate of deposit | Recurring basis | |||
Short-term investments: | |||
Short-term investments | 4,600 | ||
Certificate of deposit | (Level 2) | Recurring basis | |||
Short-term investments: | |||
Short-term investments | 4,600 | ||
Corporate and municipal debt securities | Recurring basis | |||
Short-term investments: | |||
Short-term investments | 13,877 | ||
Corporate and municipal debt securities | (Level 2) | Recurring basis | |||
Short-term investments: | |||
Short-term investments | 13,877 | ||
U.S. government and federal agency securities | Recurring basis | |||
Short-term investments: | |||
Short-term investments | 21,417 | ||
U.S. government and federal agency securities | (Level 1) | Recurring basis | |||
Short-term investments: | |||
Short-term investments | 17,419 | ||
U.S. government and federal agency securities | (Level 2) | Recurring basis | |||
Short-term investments: | |||
Short-term investments | $ 3,998 |
Shareholders' Equity - AOCI Com
Shareholders' Equity - AOCI Components (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | |
Repurchase of shares | |||
Repurchase of common stock (in shares) | 0 | 0 | |
After-tax amounts: | |||
Accumulated other comprehensive income (loss), after tax | $ (4,101) | $ (204) | |
Maximum | |||
Repurchase of shares | |||
Number of common shares authorized to be repurchased | 4,000,000 | ||
Unrealized appreciation (depreciation) on securities | |||
Pre-tax amounts: | |||
Accumulated other comprehensive income (loss) before tax | $ 24,907 | 33,051 | |
After-tax amounts: | |||
Accumulated other comprehensive income (loss), after tax | 15,905 | 20,899 | |
Defined benefit pension plan | |||
Pre-tax amounts: | |||
Accumulated other comprehensive income (loss) before tax | (32,387) | (34,112) | |
After-tax amounts: | |||
Accumulated other comprehensive income (loss), after tax | (20,006) | (21,103) | |
Accumulated Other Comprehensive Loss | |||
Pre-tax amounts: | |||
Accumulated other comprehensive income (loss) before tax | (7,480) | (1,061) | |
After-tax amounts: | |||
Accumulated other comprehensive income (loss), after tax | $ (4,101) | $ (204) |
Shareholders' Equity - AOCI Cha
Shareholders' Equity - AOCI Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Balance | $ 4,560,925 | |
Balance | $ 4,249,904 | 4,249,904 |
Unrealized appreciation (depreciation) on securities | ||
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Balance | 22,804 | 20,899 |
Other comprehensive loss before reclassifications | (6,899) | (4,994) |
Net current-period other comprehensive income (loss) | (6,899) | (4,994) |
Balance | 15,905 | 15,905 |
Defined benefit pension plan | ||
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Balance | (20,371) | (21,103) |
Amounts reclassified from accumulated other comprehensive income | 365 | 1,097 |
Net current-period other comprehensive income (loss) | 365 | 1,097 |
Balance | (20,006) | (20,006) |
Accumulated Other Comprehensive Loss | ||
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Balance | 2,433 | (204) |
Other comprehensive loss before reclassifications | (6,899) | (4,994) |
Amounts reclassified from accumulated other comprehensive income | 365 | 1,097 |
Net current-period other comprehensive income (loss) | (6,534) | (3,897) |
Balance | $ (4,101) | $ (4,101) |
Shareholders' Equity - AOCI Rec
Shareholders' Equity - AOCI Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Operations | ||||
Income tax provision | $ 10,478 | $ (2,842) | $ 50,537 | $ (33,740) |
Net income (loss) | (21,799) | (21,200) | (105,680) | 16,007 |
Accumulated Other Comprehensive Loss | ||||
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Operations | ||||
Net income (loss) | 0 | |||
Total reclassifications for the period | 365 | 1,097 | ||
Defined benefit pension plan | ||||
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Operations | ||||
Reclassifications for the period, before tax | 574 | 1,724 | ||
Reclassifications for the period, tax | (209) | (627) | ||
Total reclassifications for the period | $ 365 | $ 1,097 | ||
Defined benefit pension plan | Reclassification out of AOCI | ||||
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Operations | ||||
Reclassifications for the period, before tax | 493 | 1,479 | ||
Reclassifications for the period, tax | (179) | (539) | ||
Total reclassifications for the period | $ 314 | $ 940 |
Cash Dividends (Details)
Cash Dividends (Details) - $ / shares | Jun. 07, 2017 | Jun. 01, 2017 | Mar. 02, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 |
Cash Dividends | ||||||||
Cash dividends declared, per share (in dollars per share) | $ 0.70 | $ 0.70 | $ 0.7000 | $ 0.7000 | $ 2.1 | $ 2.1000 | $ 2.0750 | |
Cash dividend paid, per share (in dollars per share) | $ 0.70 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense & Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Common-stock based award plan | ||||||
Compensation expense (in dollars) | $ 6,768 | $ 5,674 | $ 19,247 | $ 19,661 | ||
Excess tax benefit from stock-based compensation | $ 4,121 | 761 | ||||
Stock options | ||||||
Common-stock based award plan | ||||||
The period from the grant date after which options expire | 10 years | |||||
Compensation expense (in dollars) | $ 1,934 | 1,722 | $ 5,455 | $ 7,048 | ||
Weighted-average assumptions utilized in determining the fair value of options | ||||||
Risk-free interest rate (as a percent) | 2.00% | 1.80% | ||||
Expected stock volatility (as a percent) | 38.90% | 37.60% | ||||
Dividend yield (as a percent) | 3.70% | 4.60% | ||||
Expected term (in years) | 5 years 6 months | 5 years 6 months | ||||
Weighted-average fair value of options granted (in dollars per share) | $ 10.81 | $ 17.55 | $ 22.42 | |||
Options | ||||||
Options outstanding at the beginning of the period (in shares) | 3,293,000 | 3,312,000 | 3,312,000 | |||
Granted (in shares) | 62,000 | 396,007 | ||||
Exercised (in shares) | (15,000) | (355,000) | ||||
Forfeited/Expired (in shares) | (13,000) | |||||
Option outstanding at the end of the period (in shares) | 3,340,000 | 3,293,000 | 3,340,000 | |||
Vested and expected to vest at the end of the period (in shares) | 3,286,000 | 3,286,000 | ||||
Exercisable at the end of the period (in shares) | 2,229,000 | 2,229,000 | ||||
Weighted-Average Exercise Price | ||||||
Outstanding at the beginning of the period (in dollars per share) | $ 55.90 | $ 51.74 | $ 51.74 | |||
Granted (in dollars per share) | 53.11 | 76.61 | ||||
Exercised (in dollars per share) | 35.11 | 39.38 | ||||
Forfeited/Expired (in dollars per share) | 70.37 | |||||
Outstanding at the end of the period (in dollars per share) | 55.93 | $ 55.90 | 55.93 | |||
Vested and expected to vest at the end of the period (in dollars per share) | 55.71 | 55.71 | ||||
Exercisable at the end of the period (in dollars per share) | $ 50.31 | $ 50.31 | ||||
Weighted- Average Remaining Contractual Term | ||||||
Outstanding at the end of the period | 5 years 9 months 18 days | |||||
Vested and expected to vest at the end of the period | 5 years 8 months 12 days | |||||
Exercisable at the end of the period | 4 years 4 months 24 days | |||||
Aggregate Intrinsic Value | ||||||
Outstanding at the end of the period (in dollars) | $ 19,700 | $ 19,700 | ||||
Vested and expected to vest at the end of the period (in dollars) | 19,700 | 19,700 | ||||
Exercisable at the end of the period (in dollars) | $ 19,600 | 19,600 | ||||
Weighted-average fair value of options granted (in dollars per share) | $ 10.81 | $ 17.55 | $ 22.42 | |||
Total intrinsic value of options exercised (in dollars) | $ 300 | 12,000 | ||||
Unrecognized compensation cost (in dollars) | 8,600 | $ 8,600 | ||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 4 months 24 days | |||||
Restricted stock | ||||||
Common-stock based award plan | ||||||
Granted (in shares) | 292,112 | |||||
Compensation expense (in dollars) | 4,834 | $ 3,952 | $ 13,792 | $ 12,613 | ||
Aggregate Intrinsic Value | ||||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 6 months | |||||
Unrecognized compensation cost (in dollars) | $ 26,300 | $ 26,300 | ||||
Restricted stock | Minimum | ||||||
Common-stock based award plan | ||||||
Vesting period | 3 years | |||||
Restricted stock | Maximum | ||||||
Common-stock based award plan | ||||||
Vesting period | 6 years |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock (Details) - Restricted stock | 9 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Restricted stock awards activity, shares | |
Unvested at the beginning of the period (in shares) | shares | 648,000 |
Granted (in shares) | shares | 292,112 |
Vested (in shares) | shares | (271,000) |
Forfeited (in shares) | shares | (9,000) |
Unvested at the end of the period (in shares) | shares | 660,000 |
Restricted stock awards activity, weighted average grant date fair value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 64.24 |
Granted (in dollars per share) | $ / shares | 78.69 |
Vested (in dollars per share) | $ / shares | 63.81 |
Forfeited (in dollars per share) | $ / shares | 67.79 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 70.76 |
Debt (Details)
Debt (Details) $ in Thousands | Mar. 19, 2015USD ($) | Jun. 30, 2017USD ($)letteritem | Sep. 30, 2016USD ($) |
Debt | |||
Unsecured long-term debt | $ 500,000 | $ 500,000 | |
Long-term debt | 500,000 | 500,000 | |
Unamortized discount and debt issuance costs | (7,363) | (8,153) | |
Unamortized discount and debt issuance costs, noncurrent | (7,363) | (8,153) | |
Unsecured senior notes issued March 19, 2015 | |||
Debt | |||
Unsecured long-term debt | 500,000 | 500,000 | |
Unamortized discount and debt issuance costs | (7,363) | $ (8,153) | |
Debt issued | $ 500,000 | 500,000 | |
Long-term debt stated interest rate percentage | 4.65% | ||
Term of debt | 10 years | ||
Unsecured revolving credit facility mature on July 13, 2021 | |||
Debt | |||
Borrowing capacity | $ 300,000 | ||
Commitment fee (as a percent) | 0.15% | ||
Financial covenants | item | 1 | ||
Maximum limit of priority debt on net worth | 17.50% | ||
Borrowing amount outstanding | $ 0 | ||
Available borrowing capacity | $ 261,200 | ||
Unsecured revolving credit facility mature on July 13, 2021 | Minimum | |||
Debt | |||
Commitment fee (as a percent) | 0.15% | ||
Unsecured revolving credit facility mature on July 13, 2021 | Maximum | |||
Debt | |||
Commitment fee (as a percent) | 0.30% | ||
Funded leverage ratio (as a percent) | 50.00% | ||
Unsecured revolving credit facility mature on July 13, 2021 | London Interbank Offered Rate (LIBOR) | |||
Debt | |||
Interest spread on borrowings (as a percent) | 1.125% | ||
Unsecured revolving credit facility mature on July 13, 2021 | London Interbank Offered Rate (LIBOR) | Minimum | |||
Debt | |||
Interest spread on borrowings (as a percent) | 1.125% | ||
Unsecured revolving credit facility mature on July 13, 2021 | London Interbank Offered Rate (LIBOR) | Maximum | |||
Debt | |||
Interest spread on borrowings (as a percent) | 1.75% | ||
Unsecured revolving credit facility mature on July 13, 2021 | Letter of credit | |||
Debt | |||
Borrowing capacity | $ 75,000 | ||
Number of letters of credit outstanding | letter | 3 | ||
Letters of credit outstanding/issued | $ 38,800 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Taxes | ||||
Effective income tax rate (as a percent) | 31.20% | (15.50%) | 32.30% | 62.90% |
Effective income tax rates as compared to the U.S. Federal income tax rate | ||||
U.S. federal statutory rate (as a percent) | 35.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Apr. 28, 2015 | Jun. 30, 2017 |
Purchase obligations | |||
Purchase orders outstanding for drilling equipment | $ 59.7 | ||
Gain contingencies recognized in consolidated financial statements | 0 | ||
CONTINGENCIES | |||
Gain contingencies recognized in consolidated financial statements | $ 0 | ||
Judicial ruling | Keel accident case | |||
CONTINGENCIES | |||
Litigation settlement | $ 72 | ||
Judicial ruling | Minimum | Keel accident case | |||
CONTINGENCIES | |||
Damages value | $ 100 |
Segment Information - Income by
Segment Information - Income by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment information | ||||
Operating revenue | $ 498,564 | $ 366,486 | $ 1,272,437 | $ 1,292,524 |
Segment Operating Income (Loss) | 834 | 20,709 | (82,543) | 138,197 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income (loss) | 834 | 20,709 | (82,543) | 138,197 |
Income from asset sales | 1,862 | 547 | 17,593 | 7,820 |
Corporate general and administrative costs and corporate depreciation | (30,724) | (34,512) | (77,914) | (78,982) |
Operating income (loss) from continuing operations | (28,028) | (13,256) | (142,864) | 67,035 |
Other income (expense): | ||||
Interest and dividend income | 1,700 | 778 | 4,028 | 2,310 |
Interest expense | (6,364) | (6,407) | (17,503) | (16,652) |
Other | (911) | 534 | (350) | 926 |
Total other income (expense) | (5,575) | (5,095) | (13,825) | (13,416) |
Income (loss) from continuing operations before income taxes | (33,603) | (18,351) | (156,689) | 53,619 |
Other | ||||
Segment information | ||||
Operating revenue | 4,262 | 2,983 | 10,697 | 10,182 |
Segment Operating Income (Loss) | (2,569) | (2,186) | (5,752) | (4,839) |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income (loss) | (2,569) | (2,186) | (5,752) | (4,839) |
Operating segment | ||||
Segment information | ||||
Operating revenue | 498,786 | 366,692 | 1,273,075 | 1,293,159 |
Operating segment | Other | ||||
Segment information | ||||
Operating revenue | 4,484 | 3,189 | 11,335 | 10,817 |
Inter-Segment | ||||
Segment information | ||||
Operating revenue | (222) | (206) | (638) | (635) |
Inter-Segment | Other | ||||
Segment information | ||||
Operating revenue | 222 | 206 | 638 | 635 |
Contract Drilling: | ||||
Segment information | ||||
Operating revenue | 494,302 | 363,503 | 1,261,740 | 1,282,342 |
Segment Operating Income (Loss) | 3,403 | 22,895 | (76,791) | 143,036 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income (loss) | 3,403 | 22,895 | (76,791) | 143,036 |
Contract Drilling: | U.S. Land | ||||
Segment information | ||||
Operating revenue | 405,516 | 285,028 | 1,000,119 | 1,004,116 |
Segment Operating Income (Loss) | (7,980) | 25,802 | (90,718) | 143,855 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income (loss) | (7,980) | 25,802 | (90,718) | 143,855 |
Contract Drilling: | Offshore | ||||
Segment information | ||||
Operating revenue | 33,711 | 30,492 | 103,758 | 106,697 |
Segment Operating Income (Loss) | 6,456 | 2,084 | 19,152 | 13,105 |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income (loss) | 6,456 | 2,084 | 19,152 | 13,105 |
Contract Drilling: | International Land | ||||
Segment information | ||||
Operating revenue | 55,075 | 47,983 | 157,863 | 171,529 |
Segment Operating Income (Loss) | 4,927 | (4,991) | (5,225) | (13,924) |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income (loss) | 4,927 | (4,991) | (5,225) | (13,924) |
Contract Drilling: | Operating segment | ||||
Segment information | ||||
Operating revenue | 494,302 | 363,503 | 1,261,740 | 1,282,342 |
Contract Drilling: | Operating segment | U.S. Land | ||||
Segment information | ||||
Operating revenue | 405,516 | 285,028 | 1,000,119 | 1,004,116 |
Contract Drilling: | Operating segment | Offshore | ||||
Segment information | ||||
Operating revenue | 33,711 | 30,492 | 103,758 | 106,697 |
Contract Drilling: | Operating segment | International Land | ||||
Segment information | ||||
Operating revenue | $ 55,075 | $ 47,983 | $ 157,863 | $ 171,529 |
Segment Information - Income Re
Segment Information - Income Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | |
Segment information | |||||
Total assets | $ 6,513,891 | $ 6,513,891 | $ 6,832,019 | ||
Operating revenues | 498,564 | $ 366,486 | 1,272,437 | $ 1,292,524 | |
United States | |||||
Segment information | |||||
Operating revenues | 443,489 | 318,059 | 1,114,574 | 1,113,542 | |
Argentina | |||||
Segment information | |||||
Operating revenues | 43,167 | 33,208 | 114,516 | 118,365 | |
Colombia | |||||
Segment information | |||||
Operating revenues | 9,356 | 3,831 | 27,579 | 15,176 | |
Ecuador | |||||
Segment information | |||||
Operating revenues | 3 | 481 | 5 | 4,948 | |
Other Foreign | |||||
Segment information | |||||
Operating revenues | 2,549 | 10,907 | 15,763 | 40,493 | |
Continued operations | |||||
Segment information | |||||
Total assets | 6,513,884 | 6,513,884 | 6,831,955 | ||
Discontinued operations. | |||||
Segment information | |||||
Total assets | 7 | 7 | 64 | ||
Other | |||||
Segment information | |||||
Operating revenues | 4,262 | 2,983 | 10,697 | 10,182 | |
Operating segment | |||||
Segment information | |||||
Total assets | 5,624,977 | 5,624,977 | 5,633,773 | ||
Operating revenues | 498,786 | 366,692 | 1,273,075 | 1,293,159 | |
Operating segment | U.S. Land | |||||
Segment information | |||||
Total assets | 4,974,364 | 4,974,364 | 5,005,299 | ||
Operating segment | Offshore | |||||
Segment information | |||||
Total assets | 98,568 | 98,568 | 105,152 | ||
Operating segment | International Land | |||||
Segment information | |||||
Total assets | 417,241 | 417,241 | 487,181 | ||
Operating segment | Other | |||||
Segment information | |||||
Total assets | 134,804 | 134,804 | 36,141 | ||
Operating revenues | 4,484 | $ 3,189 | 11,335 | $ 10,817 | |
Investments and corporate operations | |||||
Segment information | |||||
Total assets | $ 888,907 | $ 888,907 | $ 1,198,182 |
Pensions and Other Post-retir55
Pensions and Other Post-retirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Components of Net Periodic Benefit Cost | ||||
Interest cost | $ 975 | $ 1,116 | $ 2,925 | $ 3,347 |
Expected return on plan assets | (1,298) | (1,490) | (3,896) | (4,470) |
Recognized net actuarial loss | 574 | 493 | 1,724 | 1,479 |
Settlement | 1,411 | 1,889 | 1,411 | 3,343 |
Net pension expense | $ 1,662 | $ 2,008 | $ 2,164 | $ 3,699 |
Supplemental Cash Flow Inform56
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of total capital expenditures incurred to total capital expenditures in the consolidated statements of cash flows | ||
Capital expenditures incurred | $ 315,735 | $ 198,606 |
Additions incurred prior year but paid for in current period | 9,465 | 25,344 |
Additions incurred but not paid for as of the end of the period | (24,925) | (4,401) |
Capital expenditures per Consolidated Condensed Statements of Cash Flows | $ 300,275 | $ 219,549 |
International Risk Factors (Det
International Risk Factors (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)item | Jun. 30, 2016USD ($) | Jun. 30, 2010item | |
International Risk Factors | |||||
Foreign currency losses | $ | $ 1.3 | $ 1.1 | $ 3.3 | $ 9.4 | |
Period for which cumulative inflation rates used for considering country as highly inflationary | 3 years | ||||
Venezuela | |||||
International Risk Factors | |||||
Number of rigs expropriated by Venezuelan government | item | 11 | ||||
Argentina | |||||
International Risk Factors | |||||
Foreign currency losses | $ | $ 9.4 | ||||
Operating revenues | Geographic concentration risk | South America | |||||
International Risk Factors | |||||
Concentration percentage | 90.00% | ||||
Minimum | |||||
International Risk Factors | |||||
Number of geographical areas of operation to minimize risks | item | 1 | ||||
Cumulative inflation rate before a country is considered highly inflationary (as a percent) | 100.00% | ||||
Contract Drilling: | Operating revenues | Geographic concentration risk | International locations | |||||
International Risk Factors | |||||
Concentration percentage | 12.40% |
Recently Issued Accounting St58
Recently Issued Accounting Standards (Details) | 9 Months Ended |
Jun. 30, 2017item | |
Recently Issued Accounting Standards | |
Number of primary revenue streams | 2 |
Guarantor and Non-Guarantor F59
Guarantor and Non-Guarantor Financial Information - Debt (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2017 | Mar. 19, 2015 | |
Financial Information | ||
Percentage ownership of subsidiary | 100.00% | |
Unsecured senior notes issued March 19, 2015 | ||
Financial Information | ||
Debt issued | $ 500 | $ 500 |
Issuer Subsidiary | Unsecured senior notes issued March 19, 2015 | ||
Financial Information | ||
Debt issued | $ 500 |
Guarantor and Non-Guarantor F60
Guarantor and Non-Guarantor Financial Information - Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||
Operating revenue | $ 498,564 | $ 366,486 | $ 1,272,437 | $ 1,292,524 |
Operating costs and other | 526,592 | 379,742 | 1,415,301 | 1,225,489 |
Operating income (loss) from continuing operations | (28,028) | (13,256) | (142,864) | 67,035 |
Other income (expense), net | 789 | 1,312 | 3,678 | 3,236 |
Interest expense | (6,364) | (6,407) | (17,503) | (16,652) |
Income (loss) from continuing operations before income taxes | (33,603) | (18,351) | (156,689) | 53,619 |
Income tax provision | (10,478) | 2,842 | (50,537) | 33,740 |
Income (loss) from continuing operations | (23,125) | (21,193) | (106,152) | 19,879 |
Income (loss) from discontinued operations before income taxes | 3,223 | 2,193 | 2,705 | 2,241 |
Income tax provision (benefit) | 1,897 | 2,200 | 2,233 | 6,113 |
Income (loss) from discontinued operations | 1,326 | (7) | 472 | (3,872) |
NET INCOME (LOSS) | (21,799) | (21,200) | (105,680) | 16,007 |
Eliminations | ||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||
Operating revenue | (18) | (20) | (51) | (53) |
Operating costs and other | (216) | (290) | (677) | (1,093) |
Operating income (loss) from continuing operations | 198 | 270 | 626 | 1,040 |
Other income (expense), net | (198) | (270) | (626) | (1,040) |
Equity in net income (loss) of subsidiaries | 19,595 | 26,368 | 110,053 | 1,769 |
Income (loss) from continuing operations before income taxes | 19,595 | 26,368 | 110,053 | 1,769 |
Income (loss) from continuing operations | 19,595 | 26,368 | 110,053 | 1,769 |
NET INCOME (LOSS) | 19,595 | 26,368 | 110,053 | 1,769 |
Guarantor/Parent | Reportable Legal Entities | ||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||
Operating costs and other | 3,364 | 3,712 | 10,124 | 9,573 |
Operating income (loss) from continuing operations | (3,364) | (3,712) | (10,124) | (9,573) |
Other income (expense), net | (4) | 16 | (3) | (235) |
Interest expense | (87) | (62) | (260) | (186) |
Equity in net income (loss) of subsidiaries | (19,510) | (18,572) | (99,179) | 22,042 |
Income (loss) from continuing operations before income taxes | (22,965) | (22,330) | (109,566) | 12,048 |
Income tax provision | (1,166) | (1,130) | (3,886) | (3,959) |
Income (loss) from continuing operations | (21,799) | (21,200) | (105,680) | 16,007 |
NET INCOME (LOSS) | (21,799) | (21,200) | (105,680) | 16,007 |
Issuer Subsidiary | Reportable Legal Entities | ||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||
Operating revenue | 439,227 | 315,077 | 1,103,877 | 1,103,361 |
Operating costs and other | 463,220 | 314,620 | 1,218,266 | 1,003,369 |
Operating income (loss) from continuing operations | (23,993) | 457 | (114,389) | 99,992 |
Other income (expense), net | 2,052 | 1,290 | 4,885 | 2,680 |
Interest expense | (5,294) | (5,597) | (15,151) | (15,587) |
Equity in net income (loss) of subsidiaries | (85) | (7,796) | (10,874) | (23,811) |
Income (loss) from continuing operations before income taxes | (27,320) | (11,646) | (135,529) | 63,274 |
Income tax provision | (7,360) | 7,230 | (37,320) | 42,114 |
Income (loss) from continuing operations | (19,960) | (18,876) | (98,209) | 21,160 |
NET INCOME (LOSS) | (19,960) | (18,876) | (98,209) | 21,160 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||
Operating revenue | 59,355 | 51,429 | 168,611 | 189,216 |
Operating costs and other | 60,224 | 61,700 | 187,588 | 213,640 |
Operating income (loss) from continuing operations | (869) | (10,271) | (18,977) | (24,424) |
Other income (expense), net | (1,061) | 276 | (578) | 1,831 |
Interest expense | (983) | (748) | (2,092) | (879) |
Income (loss) from continuing operations before income taxes | (2,913) | (10,743) | (21,647) | (23,472) |
Income tax provision | (1,952) | (3,258) | (9,331) | (4,415) |
Income (loss) from continuing operations | (961) | (7,485) | (12,316) | (19,057) |
Income (loss) from discontinued operations before income taxes | 3,223 | 2,193 | 2,705 | 2,241 |
Income tax provision (benefit) | 1,897 | 2,200 | 2,233 | 6,113 |
Income (loss) from discontinued operations | 1,326 | (7) | 472 | (3,872) |
NET INCOME (LOSS) | $ 365 | $ (7,492) | $ (11,844) | $ (22,929) |
Guarantor and Non-Guarantor f61
Guarantor and Non-Guarantor financial information - Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | $ (21,799) | $ (21,200) | $ (105,680) | $ 16,007 |
Other comprehensive income (loss), net of income taxes: | ||||
Unrealized (appreciation) depreciation on securities, net | (6,899) | 9,744 | (4,994) | (2,719) |
Unrealized depreciation on securities, net | (6,899) | 9,744 | ||
Minimum pension liability adjustments, net | 365 | 314 | 1,097 | 940 |
Other comprehensive income (loss) | (6,534) | 10,058 | (3,897) | (1,779) |
Comprehensive income (loss) | (28,333) | (11,142) | (109,577) | 14,228 |
Reportable Legal Entities | Guarantor/Parent | ||||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | (21,799) | (21,200) | (105,680) | 16,007 |
Other comprehensive income (loss), net of income taxes: | ||||
Minimum pension liability adjustments, net | 104 | 107 | 316 | 322 |
Other comprehensive income (loss) | 104 | 107 | 316 | 322 |
Comprehensive income (loss) | (21,695) | (21,093) | (105,364) | 16,329 |
Reportable Legal Entities | Issuer Subsidiary | ||||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | (19,960) | (18,876) | (98,209) | 21,160 |
Other comprehensive income (loss), net of income taxes: | ||||
Unrealized (appreciation) depreciation on securities, net | (4,994) | (2,719) | ||
Unrealized depreciation on securities, net | (6,899) | 9,744 | ||
Minimum pension liability adjustments, net | 261 | 207 | 781 | 618 |
Other comprehensive income (loss) | (6,638) | 9,951 | (4,213) | (2,101) |
Comprehensive income (loss) | (26,598) | (8,925) | (102,422) | 19,059 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | 365 | (7,492) | (11,844) | (22,929) |
Other comprehensive income (loss), net of income taxes: | ||||
Comprehensive income (loss) | 365 | (7,492) | (11,844) | (22,929) |
Eliminations | ||||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income (loss) | 19,595 | 26,368 | 110,053 | 1,769 |
Other comprehensive income (loss), net of income taxes: | ||||
Comprehensive income (loss) | $ 19,595 | $ 26,368 | $ 110,053 | $ 1,769 |
Guarantor and Non-Guarantor F62
Guarantor and Non-Guarantor Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 572,787 | $ 905,561 | $ 907,032 | $ 729,384 |
Short-term investments | 39,894 | 44,148 | ||
Accounts receivable, net of reserve | 440,872 | 375,169 | ||
Inventories | 138,403 | 124,325 | ||
Prepaid expenses and other | 58,425 | 78,067 | ||
Assets held for sale | 45,352 | |||
Current assets of discontinued operations | 7 | 64 | ||
Total current assets | 1,250,388 | 1,572,686 | ||
Investments | 76,986 | 84,955 | ||
Property, plant and equipment, at cost | 5,062,914 | 5,144,733 | ||
Goodwill | 51,967 | 4,718 | ||
Intangible assets, net of amortization | 51,569 | 919 | ||
Other assets | 20,067 | 24,008 | ||
TOTAL ASSETS | 6,513,891 | 6,832,019 | ||
CURRENT LIABILITIES: | ||||
Accounts payable | 137,206 | 95,422 | ||
Accrued liabilities | 196,643 | 234,639 | ||
Current liabilities of discontinued operations | 80 | 59 | ||
Total current liabilities | 333,929 | 330,120 | ||
NONCURRENT LIABILITIES: | ||||
Carrying value of long-term fixed-rate debt | 492,637 | 491,847 | ||
Deferred income taxes | 1,325,250 | 1,342,456 | ||
Other | 108,946 | 102,781 | ||
Noncurrent liabilities of discontinued operations | 3,225 | 3,890 | ||
Total noncurrent liabilities | 1,930,058 | 1,940,974 | ||
SHAREHOLDERS' EQUITY: | ||||
Common stock | 11,190 | 11,140 | ||
Additional paid-in capital | 478,231 | 448,452 | ||
Retained earnings | 3,954,705 | 4,289,807 | ||
Accumulated other comprehensive income (loss), after tax | (4,101) | (204) | ||
Treasury stock, at cost | (190,121) | (188,270) | ||
Total shareholders' equity | 4,249,904 | 4,560,925 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 6,513,891 | 6,832,019 | ||
Eliminations | ||||
Current assets: | ||||
Accounts receivable, net of reserve | (5) | (1,279) | ||
Prepaid expenses and other | (30,255) | (21,239) | ||
Total current assets | (30,260) | (22,518) | ||
Intercompany | (2,096,646) | (1,676,409) | ||
Investment in subsidiaries | (5,678,550) | (5,787,831) | ||
TOTAL ASSETS | (7,805,456) | (7,486,758) | ||
CURRENT LIABILITIES: | ||||
Accounts payable | (1,274) | |||
Accrued liabilities | (30,260) | 20,234 | ||
Total current liabilities | (30,260) | 18,960 | ||
NONCURRENT LIABILITIES: | ||||
Intercompany | (2,096,546) | (1,717,787) | ||
Total noncurrent liabilities | (2,096,546) | (1,717,787) | ||
SHAREHOLDERS' EQUITY: | ||||
Common stock | (100) | (100) | ||
Additional paid-in capital | (52,960) | (48,082) | ||
Retained earnings | (5,624,710) | (5,734,655) | ||
Accumulated other comprehensive income (loss), after tax | (880) | (5,094) | ||
Total shareholders' equity | (5,678,650) | (5,787,931) | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | (7,805,456) | (7,486,758) | ||
Guarantor/Parent | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | (1,141) | (955) | (920) | (838) |
Accounts receivable, net of reserve | 2,095 | 2 | ||
Prepaid expenses and other | 14,701 | 6,928 | ||
Total current assets | 15,655 | 5,975 | ||
Investments | 13,606 | 13,431 | ||
Property, plant and equipment, at cost | 51,118 | 59,173 | ||
Intercompany | 90,685 | 16,147 | ||
Other assets | 4,992 | 233 | ||
Investment in subsidiaries | 5,480,782 | 5,579,713 | ||
TOTAL ASSETS | 5,656,838 | 5,674,672 | ||
CURRENT LIABILITIES: | ||||
Accounts payable | 80,333 | 80,000 | ||
Accrued liabilities | 26,104 | 1,822 | ||
Total current liabilities | 106,437 | 81,822 | ||
NONCURRENT LIABILITIES: | ||||
Deferred income taxes | (9,099) | (5,930) | ||
Intercompany | 1,284,237 | 1,016,673 | ||
Other | 25,359 | 21,182 | ||
Total noncurrent liabilities | 1,300,497 | 1,031,925 | ||
SHAREHOLDERS' EQUITY: | ||||
Common stock | 11,190 | 11,140 | ||
Additional paid-in capital | 478,231 | 448,452 | ||
Retained earnings | 3,954,705 | 4,289,807 | ||
Accumulated other comprehensive income (loss), after tax | (4,101) | (204) | ||
Treasury stock, at cost | (190,121) | (188,270) | ||
Total shareholders' equity | 4,249,904 | 4,560,925 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,656,838 | 5,674,672 | ||
Issuer Subsidiary | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 559,945 | 899,028 | 892,476 | 693,273 |
Short-term investments | 39,894 | 44,148 | ||
Accounts receivable, net of reserve | 380,873 | 325,325 | ||
Inventories | 103,066 | 87,946 | ||
Prepaid expenses and other | 7,159 | 20,625 | ||
Assets held for sale | 18,471 | |||
Total current assets | 1,090,937 | 1,395,543 | ||
Investments | 63,380 | 71,524 | ||
Property, plant and equipment, at cost | 4,658,226 | 4,716,736 | ||
Intercompany | 1,736,767 | 1,399,323 | ||
Other assets | 5,577 | 267 | ||
Investment in subsidiaries | 197,768 | 208,118 | ||
TOTAL ASSETS | 7,752,655 | 7,791,511 | ||
CURRENT LIABILITIES: | ||||
Accounts payable | 52,929 | 10,868 | ||
Accrued liabilities | 172,480 | 176,985 | ||
Total current liabilities | 225,409 | 187,853 | ||
NONCURRENT LIABILITIES: | ||||
Carrying value of long-term fixed-rate debt | 492,637 | 491,847 | ||
Deferred income taxes | 1,272,699 | 1,303,324 | ||
Intercompany | 255,190 | 209,276 | ||
Other | 41,849 | 36,379 | ||
Total noncurrent liabilities | 2,062,375 | 2,040,826 | ||
SHAREHOLDERS' EQUITY: | ||||
Common stock | 100 | 100 | ||
Additional paid-in capital | 51,993 | 47,533 | ||
Retained earnings | 5,411,898 | 5,510,105 | ||
Accumulated other comprehensive income (loss), after tax | 880 | 5,094 | ||
Total shareholders' equity | 5,464,871 | 5,562,832 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,752,655 | 7,791,511 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 13,983 | 7,488 | $ 15,476 | $ 36,949 |
Accounts receivable, net of reserve | 57,909 | 51,121 | ||
Inventories | 35,337 | 36,379 | ||
Prepaid expenses and other | 66,820 | 71,753 | ||
Assets held for sale | 26,881 | |||
Current assets of discontinued operations | 7 | 64 | ||
Total current assets | 174,056 | 193,686 | ||
Property, plant and equipment, at cost | 353,570 | 368,824 | ||
Intercompany | 269,194 | 260,939 | ||
Goodwill | 51,967 | 4,718 | ||
Intangible assets, net of amortization | 51,569 | 919 | ||
Other assets | 9,498 | 23,508 | ||
TOTAL ASSETS | 909,854 | 852,594 | ||
CURRENT LIABILITIES: | ||||
Accounts payable | 3,944 | 5,828 | ||
Accrued liabilities | 28,319 | 35,598 | ||
Current liabilities of discontinued operations | 80 | 59 | ||
Total current liabilities | 32,343 | 41,485 | ||
NONCURRENT LIABILITIES: | ||||
Deferred income taxes | 61,650 | 45,062 | ||
Intercompany | 557,119 | 491,838 | ||
Other | 41,738 | 45,220 | ||
Noncurrent liabilities of discontinued operations | 3,225 | 3,890 | ||
Total noncurrent liabilities | 663,732 | 586,010 | ||
SHAREHOLDERS' EQUITY: | ||||
Additional paid-in capital | 967 | 549 | ||
Retained earnings | 212,812 | 224,550 | ||
Total shareholders' equity | 213,779 | 225,099 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 909,854 | $ 852,594 |
Guarantor and Non-Guarantor F63
Guarantor and Non-Guarantor Financial Information - Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||
Net cash provided by (used in) operating activities | $ 236,134 | $ 615,410 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (300,275) | (219,549) |
Purchase of short-term investments | (48,958) | (36,958) |
Payment for acquisition of business, net of cash acquired | (70,416) | |
Proceeds from sale of short-term investments | 53,150 | 32,681 |
Proceeds from asset sales | 17,921 | 12,804 |
Net cash used in investing activities | (348,578) | (211,022) |
FINANCING ACTIVITIES: | ||
Debt issuance costs | (32) | |
Dividends paid | (229,061) | (224,040) |
Exercise of stock options, net of tax withholding | 10,458 | 483 |
Tax withholdings related to net share settlements of restricted stock | (5,848) | (3,912) |
Excess tax benefit from stock-based compensation | 4,121 | 761 |
Net cash used in financing activities | (220,330) | (226,740) |
Net increase (decrease) in cash and cash equivalents | (332,774) | 177,648 |
Cash and cash equivalents, beginning of period | 905,561 | 729,384 |
Cash and cash equivalents, end of period | 572,787 | 907,032 |
Guarantor/Parent | Reportable Legal Entities | ||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||
Net cash provided by (used in) operating activities | (4,457) | 4,127 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (2,344) | (15,515) |
Intercompany transfers | 72,760 | 15,515 |
Payment for acquisition of business, net of cash acquired | (70,416) | |
Proceeds from asset sales | 8 | |
Net cash used in investing activities | 8 | |
FINANCING ACTIVITIES: | ||
Intercompany transfers | 229,061 | 224,040 |
Dividends paid | (229,061) | (224,040) |
Exercise of stock options, net of tax withholding | 10,458 | 483 |
Tax withholdings related to net share settlements of restricted stock | (5,848) | (3,912) |
Excess tax benefit from stock-based compensation | (339) | (788) |
Net cash used in financing activities | 4,271 | (4,217) |
Net increase (decrease) in cash and cash equivalents | (186) | (82) |
Cash and cash equivalents, beginning of period | (955) | (838) |
Cash and cash equivalents, end of period | (1,141) | (920) |
Issuer Subsidiary | Reportable Legal Entities | ||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||
Net cash provided by (used in) operating activities | 231,133 | 631,371 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (293,946) | (200,611) |
Intercompany transfers | (72,760) | (15,515) |
Purchase of short-term investments | (48,958) | (36,958) |
Proceeds from sale of short-term investments | 53,150 | 32,681 |
Proceeds from asset sales | 17,316 | 10,956 |
Net cash used in investing activities | (345,198) | (209,447) |
FINANCING ACTIVITIES: | ||
Debt issuance costs | (32) | |
Intercompany transfers | (229,061) | (224,040) |
Excess tax benefit from stock-based compensation | 4,043 | 1,351 |
Net cash used in financing activities | (225,018) | (222,721) |
Net increase (decrease) in cash and cash equivalents | (339,083) | 199,203 |
Cash and cash equivalents, beginning of period | 899,028 | 693,273 |
Cash and cash equivalents, end of period | 559,945 | 892,476 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||
Net cash provided by (used in) operating activities | 9,458 | (20,088) |
INVESTING ACTIVITIES: | ||
Capital expenditures | (3,985) | (3,423) |
Proceeds from asset sales | 605 | 1,840 |
Net cash used in investing activities | (3,380) | (1,583) |
FINANCING ACTIVITIES: | ||
Excess tax benefit from stock-based compensation | 417 | 198 |
Net cash used in financing activities | 417 | 198 |
Net increase (decrease) in cash and cash equivalents | 6,495 | (21,473) |
Cash and cash equivalents, beginning of period | 7,488 | 36,949 |
Cash and cash equivalents, end of period | $ 13,983 | $ 15,476 |