Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
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, 2018 | |
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 | 108,943,754 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 306,426 | $ 521,375 |
Short-term investments | 44,279 | 44,491 |
Accounts receivable, net of allowance of $5,786 and $5,721, respectively | 565,321 | 477,074 |
Inventories | 152,109 | 137,204 |
Prepaid expenses and other | 65,343 | 55,120 |
Current assets - discontinued operations | 3 | |
Total current assets | 1,133,478 | 1,235,267 |
NONCURRENT ASSETS: | ||
Investments | 92,702 | 84,026 |
Property, plant and equipment, net | 4,883,378 | 5,001,051 |
Goodwill | 69,496 | 51,705 |
Intangible assets, net | 75,564 | 50,785 |
Other assets | 11,254 | 17,154 |
Total noncurrent assets | 5,132,394 | 5,204,721 |
TOTAL ASSETS | 6,265,872 | 6,439,988 |
CURRENT LIABILITIES: | ||
Accounts payable | 143,732 | 135,628 |
Accrued liabilities | 237,935 | 208,683 |
Current liabilities - discontinued operations | 1 | 74 |
Total current liabilities | 381,668 | 344,385 |
NONCURRENT LIABILITIES: | ||
Long-term debt less unamortized discount and debt issuance costs | 493,700 | 492,902 |
Deferred income taxes | 833,738 | 1,332,689 |
Other | 99,727 | 101,409 |
Noncurrent liabilities - discontinued operations | 14,548 | 4,012 |
Total noncurrent liabilities | 1,441,713 | 1,931,012 |
SHAREHOLDERS' EQUITY: | ||
Common stock, $.10 par value, 160,000,000 shares authorized, 112,008,961 shares and 111,956,875 shares issued as of June 30, 2018 and September 30, 2017, respectively, and 108,943,554 shares and 108,604,047 shares outstanding as of June 30, 2018 and September 30, 2017, respectively | 11,201 | 11,196 |
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | ||
Additional paid-in capital | 494,604 | 487,248 |
Retained earnings | 4,103,418 | 3,855,686 |
Accumulated other comprehensive income | 8,942 | 2,300 |
Total shareholders' equity before treasury stock | 4,618,165 | 4,356,430 |
Treasury stock, at cost | (175,674) | (191,839) |
Total shareholders' equity | 4,442,491 | 4,164,591 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 6,265,872 | $ 6,439,988 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Allowance for accounts receivable (in dollars) | $ 5,786 | $ 5,721 |
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 | 112,008,961 | 111,956,875 |
Common stock, shares outstanding | 108,943,554 | 108,604,047 |
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 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating revenues: | ||||
Drilling - U.S. Land | $ 536,582 | $ 405,516 | $ 1,480,951 | $ 1,000,119 |
Drilling - Offshore | 37,669 | 33,711 | 104,018 | 103,758 |
Drilling - International Land | 63,297 | 55,075 | 178,970 | 157,863 |
Other | 11,324 | 4,262 | 26,504 | 10,697 |
Total operating revenues | 648,872 | 498,564 | 1,790,443 | 1,272,437 |
Operating costs and expenses: | ||||
Operating costs, excluding depreciation and amortization | 444,511 | 337,463 | 1,203,150 | 881,971 |
Depreciation and amortization | 144,579 | 145,043 | 433,521 | 431,667 |
Research and development | 5,479 | 3,058 | 13,149 | 8,585 |
General and administrative | 52,399 | 42,890 | 147,272 | 110,671 |
Gain on sale of property, plant and equipment | (4,313) | (1,862) | (15,133) | (17,593) |
Total operating costs and expenses | 642,655 | 526,592 | 1,781,959 | 1,415,301 |
Operating income (loss) from continuing operations | 6,217 | (28,028) | 8,484 | (142,864) |
Other income (expense) | ||||
Interest and dividend income | 2,109 | 1,700 | 5,680 | 4,028 |
Interest expense | (5,993) | (6,364) | (17,794) | (17,503) |
Other | 28 | (911) | 437 | (350) |
Total other income (expense) | (3,856) | (5,575) | (11,677) | (13,825) |
Income (loss) from continuing operations before income taxes | 2,361 | (33,603) | (3,193) | (156,689) |
Income tax provision (benefit) | 10,535 | (10,478) | (494,028) | (50,537) |
(Loss) income from continuing operations | (8,174) | (23,125) | 490,835 | (106,152) |
Income from discontinued operations before income taxes | 8,383 | 3,223 | 9,127 | 2,705 |
Income tax provision | 8,217 | 1,897 | 19,743 | 2,233 |
Income (loss) from discontinued operations | 166 | 1,326 | (10,616) | 472 |
NET (LOSS) INCOME | $ (8,008) | $ (21,799) | $ 480,219 | $ (105,680) |
Basic earnings per common share: | ||||
(Loss) income from continuing operations (in dollars per share) | $ (0.08) | $ (0.22) | $ 4.47 | $ (0.99) |
Income (loss) from discontinued operations (in dollars per share) | 0.01 | (0.10) | ||
Net (loss) income (in dollars per share) | (0.08) | (0.21) | 4.37 | (0.99) |
Diluted earnings per common share: | ||||
(Loss) income from continuing operations (in dollars per share) | (0.08) | (0.22) | 4.45 | (0.99) |
Income (loss) from discontinued operations (in dollars per share) | 0.01 | (0.10) | ||
Net (loss) income (in dollars per share) | $ (0.08) | $ (0.21) | $ 4.35 | $ (0.99) |
Weighted average shares outstanding (in thousands): | ||||
Basic (in shares) | 108,905 | 108,572 | 108,818 | 108,470 |
Diluted (in shares) | 108,905 | 108,572 | 109,338 | 108,470 |
Dividends declared per common share (in dollars per share) | $ 0.71 | $ 0.70 | $ 2.11 | $ 2.10 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net (loss) income | $ (8,008) | $ (21,799) | $ 480,219 | $ (105,680) |
Other comprehensive income (loss), net of income taxes: | ||||
Unrealized appreciation (depreciation) on securities, net of income taxes of $5,593 and $1,970 at June 30, 2018 and ($4,352) and ($3,150) at June 30, 2017 | 13,826 | (6,899) | 5,657 | (4,994) |
Minimum pension liability adjustments, net of income taxes of $121 and $397 at June 30, 2018 and $209 and $627 at June 30, 2017 | 337 | 365 | 985 | 1,097 |
Other comprehensive income (loss) | 14,163 | (6,534) | 6,642 | (3,897) |
Comprehensive income (loss) | $ 6,155 | $ (28,333) | $ 486,861 | $ (109,577) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Unrealized appreciation (depreciation) on securities, net of income taxes , income taxes | $ 5,593 | $ (4,352) | $ 1,970 | $ (3,150) |
Minimum pension liability adjustments, income taxes | $ 124 | $ 209 | $ 397 | $ 627 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 480,219 | $ (105,680) |
Adjustment for income (loss) from discontinued operations | 10,616 | (472) |
(Loss) income from continuing operations | 490,835 | (106,152) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 433,521 | 431,667 |
Amortization of debt discount and debt issuance costs | 798 | 789 |
Provision for bad debt | 598 | 3,858 |
Stock-based compensation | 23,472 | 19,247 |
Pension settlement charge | 1,411 | |
Gain from sale of property, plant and equipment | (15,133) | (17,593) |
Deferred income tax benefit | (498,491) | (27,798) |
Other | 3,735 | 62 |
Change in assets and liabilities: | ||
Increase in accounts receivable | (87,508) | (62,942) |
Increase in inventories | (14,905) | (11,806) |
(Increase) decrease in prepaid expenses and other | (5,900) | 26,820 |
Increase in accounts payable | 6,513 | 41,398 |
Increase (decrease) in accrued liabilities | 30,043 | (53,456) |
Decrease (increase) in deferred income tax liability | (2,511) | 3,070 |
Decrease in other noncurrent liabilities | (6,496) | (8,205) |
Net cash provided by operating activities from continuing operations | 358,571 | 240,370 |
Net cash used in operating activities from discontinued operations | (150) | (115) |
Net cash provided by operating activities | 358,421 | 240,255 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (322,658) | (300,275) |
Purchase of short-term investments | (52,159) | (48,958) |
Payment for acquisition of business, net of cash acquired | (47,886) | (70,416) |
Proceeds from sale of short-term investments | 52,470 | 53,150 |
Proceeds from asset sales | 28,049 | 17,921 |
Net cash used in investing activities | (342,184) | (348,578) |
FINANCING ACTIVITIES: | ||
Dividends paid | (230,368) | (229,061) |
Proceeds from stock option exercises | 5,160 | 10,884 |
Payments for employee taxes on net settlement of equity awards | (5,978) | (6,274) |
Net cash used in financing activities | (231,186) | (224,451) |
Net decrease in cash and cash equivalents | (214,949) | (332,774) |
Cash and cash equivalents, beginning of period | 521,375 | 905,561 |
Cash and cash equivalents, end of period | $ 306,426 | $ 572,787 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total |
Balance at beginning of period at Sep. 30, 2017 | $ 11,196 | $ 487,248 | $ 3,855,686 | $ 2,300 | $ (191,839) | $ 4,164,591 |
Balance (in shares) at Sep. 30, 2017 | 111,957,000 | 111,956,875 | ||||
Balance (in shares) at Sep. 30, 2017 | 3,353,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income (loss) | 480,219 | $ 480,219 | ||||
Other comprehensive income (loss) | 6,642 | 6,642 | ||||
Dividends declared | (231,932) | (231,932) | ||||
Exercise of stock options, net of shares withheld for employee taxes | (5,147) | $ 8,503 | 3,356 | |||
Exercise of stock options, net of tax withholding (in shares) | 1,000 | (152,000) | ||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2016-09 | ASU 2016-09 | 872 | (555) | 317 | |||
Stock issued for vested restricted stock, net of shares withheld for employee taxes | $ 5 | (11,841) | $ 7,662 | (4,174) | ||
Stock issued for vested restricted stock, net of shares withheld for employee taxes (in shares) | 51,000 | (136,000) | ||||
Stock-based compensation | 23,472 | 23,472 | ||||
Balance at end of period at Jun. 30, 2018 | $ 11,201 | 494,604 | 4,103,418 | 8,942 | $ (175,674) | $ 4,442,491 |
Balance (in shares) at Jun. 30, 2018 | 112,009,000 | 112,008,961 | ||||
Balance (in shares) at Jun. 30, 2018 | 3,065,000 | |||||
Balance at beginning of period at Mar. 31, 2018 | (5,221) | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income (loss) | $ (8,008) | |||||
Other comprehensive income (loss) | 14,163 | |||||
Balance at end of period at Jun. 30, 2018 | $ 11,201 | $ 494,604 | $ 4,103,418 | $ 8,942 | $ (175,674) | $ 4,442,491 |
Balance (in shares) at Jun. 30, 2018 | 112,009,000 | 112,008,961 | ||||
Balance (in shares) at Jun. 30, 2018 | 3,065,000 |
CONDENSED CONSOLIDATED STATEME9
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | Jun. 06, 2018 | Mar. 07, 2018 | Dec. 05, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY | |||||||
Dividends declared (in dollars per share) | $ 0.71 | $ 0.70 | $ 0.70 | $ 0.71 | $ 0.70 | $ 2.11 | $ 2.10 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2018 | |
Basis of Presentation | |
Basis of Presentation | HELMERICH & PAYNE, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of Presentation Unless the context otherwise requires, the use of the terms “the Company”, “we”, “us” and “our” in these Notes to Unaudited Condensed Consolidated Financial Statements refers to Helmerich & Payne, Inc. and its consolidated subsidiaries. The accompanying Unaudited Condensed Consolidated 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 2017 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. As more fully described in our 2017 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, 2018, early termination revenue was approximately $6.0 million and $14.3 million, respectively. We had $5.1 million and $24.8 million of early termination revenue for the three and nine months ended June 30, 2017, respectively. Depreciation in the Condensed Consolidated Statements of Operations includes abandonments of $7.0 million and $22.5 million, respectively, for the three and nine months ended June 30, 2018 and $7.7 million and $27.2 million, respectively, for the three and nine months ended June 30, 2017. During the three months ended June 30, 2018, we have shortened the estimated useful life of certain components of rigs planned for conversion, with a total net book value of $10.4 million, resulting in an increase in depreciation expense during the three months ended June 30, 2018 of approximately $1.0 million. This will also increase the depreciation expense for the next three months by approximately $5.7 million and will decrease the depreciation expense for fiscal years 2019, 2020, 2021, 2022, and 2023 by $1.4 million, $1.7 million, $1.6 million, $0.9 million, and $0.3 million, respectively and thereafter by $0.8 million. The functional currency for all our foreign operations is the U.S. dollar. Aggregate foreign currency gains and losses from the translation of monetary assets and liabilities denominated in foreign currency into U.S. dollars are included in direct operating costs and totaled losses of $1.1 million and $2.5 million for the three and nine months ended June 30, 2018, respectively, and $1.3 million and $3.3 million for the three and nine months ended June 30, 2017, respectively. Goodwill represents the excess of the purchase price over the fair values of the assets acquired and liabilities assumed in a business combination, at the date of acquisition. Goodwill is not amortized but is tested for potential impairment at the reporting unit level, at a minimum on an annual basis, or when indications of potential impairment exist. All of our goodwill is within our Other non-reportable business segment. Intangible assets with indefinite lives are tested for impairment at least annually in the fourth fiscal quarter or if events occur or circumstances change that would indicate that the value of the assets may be impaired. Finite-lived intangible assets are amortized using the straight-line method over the period in which these assets contribute to our cash flows and are evaluated for impairment in accordance with our policies for valuation of long-lived assets. The following is a summary of our finite-lived and indefinite-lived intangible assets other than goodwill at June 30, 2018 and September 30, 2017: June 30, 2018 September 30, 2017 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (in thousands) Finite-lived intangible asset: Developed technology $ 70,000 $ 4,422 $ 51,000 $ 1,134 Trade name 5,700 166 — — Customer relationships 4,000 467 — — $ 79,700 $ 5,055 $ 51,000 $ 1,134 Indefinite-lived intangible asset: Trademark $ 919 $ 919 Amortization expense was $1.4 million and $3.9 million for the three and nine months ended June 30, 2018, respectively, and is estimated to be approximately $5.4 million for fiscal 2018. Estimated intangible amortization is estimated to be approximately $5.8 million for each of the next four succeeding fiscal years and approximately $5.1 million for fiscal 2023. Recently adopted accounting pronouncements On October 1, 2017, we adopted Accounting Standards Update (“ASU”) No. 2016-09, Compensation- Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which changes certain aspects of accounting for share-based payments to employees. The standard requires that all excess tax benefits and deficiencies previously recorded as additional paid-in capital be prospectively recorded in income tax expense. The adoption of this ASU could cause volatility in the effective tax rate on a quarter by quarter basis due primarily to fluctuations in the Company's stock price and the timing of stock option exercises and vesting of restricted share grants. The standard requires excess tax benefits to be presented as an operating activity on the statement of cash flows rather than as a financing activity. Excess tax benefits and deficiencies are recorded within the provision for income taxes within the Condensed Consolidated Statements of Operations on a prospective basis as required by the standard; however, we elected to present changes to the statement of cash flows on a retrospective basis as allowed by the standard in order to maintain comparability between fiscal years. As such, prior period cash flows from operations for nine months ended June 30, 2017 has been adjusted to reflect an increase of $4.1 million, with a corresponding decrease to cash flows used in financing activities, compared to amounts previously reported. The standard also requires taxes paid for employee withholdings to be presented as a financing activity on the statement of cash flows but this requirement had no impact on our total financing activities as this has been the practice historically. We also elected to account for forfeitures of awards as they occur, instead of estimating a forfeiture amount. We recorded a $0.3 million cumulative-effect adjustment to retained earnings for the differential between the amount of compensation cost previously recorded and the amount that would have been recorded without assuming forfeitures. 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 new guidance requires management to assess a company’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Disclosures are required when conditions give rise to substantial doubt. Substantial doubt is deemed to exist when it is probable that the company will be unable to meet its obligations within one year from the financial statement issuance date. The new guidance is effective for the annual period ending after December 15, 2016, and all annual and interim periods thereafter. On October 1, 2017, we adopted the ASU with no impact on our condensed consolidated financial statements or the related footnote disclosures. In July 2015, the Financial Accounting Standards Board (“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. On October 1, 2017, we adopted ASU No. 2015-11 with no impact on our condensed consolidated financial statements. |
Business Combinations
Business Combinations | 9 Months Ended |
Jun. 30, 2018 | |
Business Combinations | |
Business Combinations | 2. Business Combinations On December 8, 2017, we completed an acquisition (“MagVAR Acquisition”) of an unaffiliated company, Magnetic Variation Services, LLC (“MagVAR”), which is now a wholly owned subsidiary of the Company. The operations for MagVAR are included with our Other non-reportable business segment. At the effective time of the MagVAR Acquisition, MagVAR shareholders received aggregate cash consideration of $47.9 million, net of customary closing adjustments, and certain management members received restricted stock awards covering 213,904 shares of Helmerich & Payne, Inc. common stock. The grant date fair value of the restricted stock will be amortized to expense over the three year vesting period. At closing, $6.0 million of the cash consideration was placed in escrow, to be released to the sellers twelve months after the acquisition closing date. The amount placed in escrow is classified as restricted cash and is included in prepaid expenses and other in the Condensed Consolidated Balance Sheet at June 30, 2018. Transaction costs related to the MagVAR Acquisition incurred during the nine months ended June 30, 2018 were approximately $1.2 million and are recorded in the Condensed Consolidated Statements of Operations within general and administrative expense. We recorded revenue of $7.5 million and a net loss of $2.0 million related to MagVAR during the nine months ended June 30, 2018. Through comprehensive 3D geomagnetic reference modeling, MagVAR provides measurement while drilling (“MWD”) survey corrections by identifying and quantifying MWD tool measurement errors in real-time, greatly improving directional drilling performance and wellbore placement. MagVAR technology has been successfully deployed in both onshore and offshore fields in North America, South America, Europe, Africa, Australia and Asia. The MagVAR Acquisition has been 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 following table summarizes the purchase price and the fair values of assets acquired and liabilities assumed at the acquisition date (in thousands): Purchase Price Consideration given Cash consideration $ 48,485 Allocation of Purchase Price Fair value of assets acquired Current assets $ 2,286 Property, plant and equipment 13 Intangible assets 28,700 Goodwill 17,791 Total assets acquired $ 48,790 Fair value of liabilities assumed Current liabilities $ 305 Fair value of total assets acquired and liabilities assumed $ 48,485 Intangible assets acquired consist of developed technology, a trade name and customer relationships. The intangible assets will be amortized under a straight-line method over their estimated useful lives ranging from 5 to 20 years. The methodologies used in valuing the intangible assets include the multi-period excess earnings method for developed technology, the with and without method for customer relationships and the relief-from-royalty method for the trade name. The excess of the purchase price over the total net identifiable assets has been recorded as goodwill. Factors comprising goodwill includes the synergies expected from the expanded service capabilities as well as the value of the assembled workforce. The goodwill is reported within our Other non-reportable business 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 intangible assets and goodwill will be amortized straight line over 15 years for income tax purposes. The following unaudited pro forma combined financial information is provided for the nine months ended June 30, 2018 and 2017, as though the MagVAR Acquisition had been completed as of October 1, 2016. These pro forma combined results of operations have been prepared by adjusting our historical results to include the historical results of MagVAR 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 MagVAR’s pre-tax loss. Additionally, pro forma earnings for the nine months ended June 30, 2018 were adjusted to exclude $0.5 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 (unaudited) Nine Months Ended June 30, 2018 2017 (in thousands) Revenues $ 1,794,131 $ 1,279,424 Net income (loss) $ 480,411 $ (104,519) |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations | |
Discontinued Operations | 3. Discontinued Operations 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. The activity for the three and nine months ended June 30, 2018 was impacted by the devaluation of the Venezuela bolivar. Early in 2018, the Venezuelan government announced that it changed the existing dual-rate foreign currency exchange system by eliminating its heavily subsidized foreign exchange rate, which was 10 Bolivars per United States dollar, and relaunced an exchange system known as DICOM. The DICOM floating rate was approximately 115,000 Bolivars per United States dollar at June 30, 2018. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 2018 2017 (in thousands, except per share amounts) Numerator: (Loss) income from continuing operations $ (8,174) $ (23,125) $ 490,835 $ (106,152) Income (loss) from discontinued operations 166 1,326 (10,616) 472 Net (loss) income (8,008) (21,799) 480,219 (105,680) Adjustment for basic earnings per share Earnings allocated to unvested shareholders (717) (458) (4,241) (1,349) Numerator for basic earnings per share: From continuing operations (8,891) (23,583) 486,594 (107,501) From discontinued operations 166 1,326 (10,616) 472 (8,725) (22,257) 475,978 (107,029) Adjustment for diluted earnings per share: Effect of reallocating undistributed earnings of unvested shareholders — — 10 — Numerator for diluted earnings per share: From continuing operations (8,891) (23,583) 486,604 (107,501) From discontinued operations 166 1,326 (10,616) 472 $ (8,725) $ (22,257) $ 475,988 $ (107,029) Denominator: Denominator for basic earnings per share - weighted-average shares 108,905 108,572 108,818 108,470 Effect of dilutive shares from stock options and restricted stock — — 520 — Denominator for diluted earnings per share - adjusted weighted-average shares 108,905 108,572 109,338 108,470 Basic earnings per common share: (Loss) income from continuing operations $ (0.08) $ (0.22) $ 4.47 $ (0.99) Income (loss) from discontinued operations — 0.01 (0.10) — Net (loss) income $ (0.08) $ (0.21) $ 4.37 $ (0.99) Diluted earnings per common share: (Loss) income from continuing operations $ (0.08) $ (0.22) $ 4.45 $ (0.99) Income (loss) from discontinued operations — 0.01 (0.10) — Net (loss) income $ (0.08) $ (0.21) $ 4.35 $ (0.99) We had a net loss for the three months ended June 30, 2018 and three and nine months ended June 30, 2017. Accordingly, our diluted earnings per share calculation for these periods were 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, 2018 2017 2018 2017 (in thousands, except per share amounts) Shares excluded from calculation of diluted earnings per share 929 1,332 1,585 1,034 Weighted-average price per share $ 75.56 $ 70.82 $ 68.51 $ 73.84 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 9 Months Ended |
Jun. 30, 2018 | |
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 Condensed Consolidated Balance Sheets as Investments, is based on Level 1 inputs. 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, 2018 $ 38,473 $ 39,327 $ — $ 77,800 September 30, 2017 $ 38,473 $ 31,700 $ — $ 70,173 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. When securities are sold, the cost of securities used in determining realized gains and losses is based on the average cost basis of the security sold. The assets held in the Non-qualified Supplemental Savings Plan are carried at fair value which totaled $15.0 million at June 30, 2018 and $13.9 million at September 30, 2017. 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 Condensed Consolidated Statements of Operations. The securities are recorded at fair value. The majority of cash equivalents are invested in highly liquid money-market mutual funds invested primarily in direct or indirect obligations of the U.S. Government. The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those investments. 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, 2018, our financial instruments utilizing Level 1 inputs include cash equivalents, U.S. Agency issued debt securities, equity securities with active markets and money market funds that are classified as restricted assets. The current portion of restricted amounts are included in prepaid expenses and other, and the noncurrent portion are included in other assets. For these items, quoted current market prices are readily available. At June 30, 2018, Level 2 inputs include certificates of deposit, municipal bonds and corporate bonds measured using broker quotations that utilize observable market inputs. Our financial instruments measured using Level 3 inputs consist of potential earnout payments associated with the acquisition of MOTIVE Drilling Technologies, Inc. in fiscal 2017. The valuation techniques used for determining the fair value of the potential earnout payments use a Monte Carlo simulation which evaluates numerous potential earnings and pay out scenarios. The following table summarizes our assets and liabilities measured at fair value presented in our Condensed Consolidated Balance Sheet as of June 30, 2018: Fair Value (Level 1) (Level 2) (Level 3) (in thousands) Recurring fair value measurements: Short-term investments: Certificates of deposit $ 1,500 $ — $ 1,500 $ — Corporate and municipal debt securities 13,794 — 13,794 — U.S. government and federal agency securities 28,985 28,985 — — Total short-term investments 44,279 28,985 15,294 — Cash and cash equivalents 306,426 306,426 — — Investments 77,800 77,800 — — Other current assets 34,614 34,614 — — Other assets 6,902 6,902 — — Total assets measured at fair value $ 470,021 $ 454,727 $ 15,294 $ — Liabilities: Contingent earnout liability $ 9,402 $ — $ — $ 9,402 The following table presents a reconciliation of changes in the fair value of our financial assets and liabilities classified as Level 3 fair value measurements in the fair value hierarchy for the indicated periods: Three Months Ended Nine Months Ended June 30, June 30, 2018 2017 2018 2017 (in thousands) Net liabilities at beginning of period $ 15,702 $ — $ 14,879 $ — Total gains or losses: Included in earnings (175) 14,509 5,148 14,509 Settlements (6,125) — (10,625) — Net liabilities at end of period $ 9,402 $ 14,509 $ 9,402 $ 14,509 Settlements represent earnout payments that have been earned or paid during the period. The following information presents the supplemental fair value information about long-term fixed-rate debt at June 30, 2018 and September 30, 2017: June 30, September 30, 2018 2017 (in millions) Carrying value of long-term fixed-rate debt $ 493.7 $ 492.9 Fair value of long-term fixed-rate debt $ 516.5 $ 529.0 The fair value for the $500 million fixed-rate debt was based on broker quotes. The notes are classified within Level 2 as they are not actively traded in markets. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Jun. 30, 2018 | |
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 during the nine months ended June 30, 2018 and 2017. Components of accumulated other comprehensive income were as follows: June 30, September 30, 2018 2017 (in thousands) Pre-tax amounts: Unrealized appreciation on securities $ 39,327 $ 31,700 Unrealized actuarial loss (27,491) (28,873) $ 11,836 $ 2,827 After-tax amounts: Unrealized appreciation on securities $ 25,727 $ 20,070 Unrealized actuarial loss (16,785) (17,770) $ 8,942 $ 2,300 The following is a summary of the changes in accumulated other comprehensive income (loss), net of tax, by component for the three and nine months ended June 30, 2018: Three Months Ended June 30, 2018 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balance at April 1, 2018 $ 11,901 $ (17,122) $ (5,221) Other comprehensive income before reclassifications 13,826 — 13,826 Amounts reclassified from accumulated other comprehensive income — 337 337 Net current-period other comprehensive income 13,826 337 14,163 Balance at June 30, 2018 $ 25,727 $ (16,785) $ 8,942 Nine Months Ended June 30, 2018 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balance at October 1, 2017 $ 20,070 $ (17,770) $ 2,300 Other comprehensive income before reclassifications 5,657 — 5,657 Amounts reclassified from accumulated other comprehensive income — 985 985 Net current-period other comprehensive income 5,657 985 6,642 Balance at June 30, 2018 $ 25,727 $ (16,785) $ 8,942 The following provides detail about accumulated other comprehensive income (loss) components which were reclassified to the Condensed Consolidated Statements of Operations: 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 Condensed Comprehensive Income (Loss) Components 2018 2017 2018 2017 Consolidated Statements of Operations (in thousands) (in thousands) Amortization of net actuarial loss on defined benefit pension plan $ (461) $ (574) $ (1,382) $ (1,724) General and administrative 124 209 397 627 Income tax provision Total reclassifications for the period $ (337) $ (365) $ (985) $ (1,097) Net of tax |
Cash Dividends
Cash Dividends | 9 Months Ended |
Jun. 30, 2018 | |
Cash Dividends | |
Cash Dividends | 7. Cash Dividends On June 6, 2018, a cash dividend of $0.71 per share was declared for shareholders of record on August 17, 2018, payable August 31, 2018. The dividend payable is included in accounts payable in the Condensed Consolidated Balance Sheets. The $0.70 per share cash dividends declared March 7, 2018 and December 5, 2017, were paid June 1, 2018 and March 1, 2018, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jun. 30, 2018 | |
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 and the Helmerich & Payne, Inc. 2010 Long-Term Incentive Plan (collectively the "2010 Plan") remain subject to the terms and conditions of those plans. During the nine months ended June 30, 2018, there were 690,947 non-qualified stock options and 411,271 shares of restricted stock awards granted under the 2016 Plan. An additional 213,904 of restricted stock grants were awarded outside of 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, 2018 2017 2018 2017 (in thousands) (in thousands) Compensation expense Stock options $ 1,815 $ 1,934 $ 5,887 $ 5,455 Restricted stock 6,111 4,834 17,585 13,792 $ 7,926 $ 6,768 $ 23,472 $ 19,247 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, 2018 and 2017: 2018 2017 Risk-free interest rate 2.2 % 2.0 % Expected stock volatility 36.1 % 38.9 % Dividend yield 4.7 % 3.7 % Expected term (in years) 6.0 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, 2018 is presented in the following tables: Three Months Ended June 30, 2018 Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Shares Exercise Term Value (in thousands) Price (in years) (in millions) Outstanding at April 1, 2018 3,721 $ 58.15 Granted 24 68.90 Exercised (66) 56.02 Forfeited/Expired (59) 68.70 Outstanding at June 30, 2018 3,620 $ 58.08 5.96 $ 31.5 Vested and expected to vest at June 30, 2018 3,620 $ 58.08 5.96 $ 31.5 Exercisable at June 30, 2018 2,308 $ 55.61 4.44 $ 25.8 Nine Months Ended June 30, 2018 Weighted Average Shares Exercise (in thousands) Price Outstanding at October 1, 2017 3,278 $ 56.41 Granted 691 59.01 Exercised (290) 39.20 Forfeited/Expired (59) 68.70 Outstanding at June 30, 2018 3,620 $ 58.08 The weighted-average fair value of options granted in the first, second and third quarters of fiscal 2018 was $12.94, $17.78 and $17.82, respectively. The total intrinsic value of options exercised during the three and nine months ended June 30, 2018 was $1.0 million and $6.6 million, respectively. As of June 30, 2018, the unrecognized compensation cost related to stock options was $9.3 million which is expected to be recognized over a weighted-average period of 2.3 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 is determined based on the closing price of our shares on the grant date. As of June 30, 2018, there was $41.0 million of total unrecognized compensation cost related to unvested restricted stock awards. That cost is expected to be recognized over a weighted-average period of 2.5 years. A summary of the status of our restricted stock awards as of June 30, 2018 and changes in restricted stock outstanding during the nine months then ended is presented below: Nine Months Ended June 30, 2018 Weighted Average Shares Grant Date Fair (in thousands) Value per Share Unvested at October 1, 2017 659 $ 70.76 Granted 625 59.52 Vested (1) (258) 71.16 Forfeited (19) 68.98 Unvested on June 30, 2018 1,007 $ 63.72 (1) |
Debt
Debt | 9 Months Ended |
Jun. 30, 2018 | |
Debt | |
Debt | 9. Debt At June 30, 2018 and September 30, 2017, we had the following unsecured long-term debt outstanding: Unamortized Discount and Principal Debt Issuance Costs June 30, September 30, June 30, September 30, 2018 2017 2018 2017 (in thousands) Unsecured senior notes issued March 19, 2015: Due March 19, 2025 $ 500,000 $ 500,000 $ (6,300) $ (7,098) 500,000 500,000 (6,300) (7,098) Less long-term debt due within one year — — — — Long-term debt $ 500,000 $ 500,000 $ (6,300) $ (7,098) On March 19, 2015, we issued $500 million of 4.65 percent 10-year unsecured senior notes. 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, 2018, 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, 2018, the Company had no borrowings against the line, but there were three letters of credit outstanding in the amount of $39.3 million. Two of these letters of credit in the amount of $29.3 million supports self-insured losses under the Company’s high deductible casualty insurance programs and the remaining $10.0 million letter of credit supports an operating line of credit with a bank in Argentina. As a result, at June 30, 2018, we had $260.7 million available to borrow under our $300 million unsecured credit facility. At June 30, 2018, we had a $12 million unsecured standalone line of credit facility, which is purposed for the issuance of bid and performance bonds, as needed, for international operations. The Company currently has one bond issued under this line which is in a foreign currency and was valued at $2 million on June 30, 2018. 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, 2018, we were in compliance with all debt covenants. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2018 | |
Income Taxes | |
Income Taxes | 10. Income Taxes Our income tax provision (benefit) for the first nine months of fiscal 2018 and 2017 was ($494.0) million and ($50.5) million, respectively, resulting in effective tax rates of 15,472.2 percent and 32.3 percent, respectively. Our income tax provision (benefit) for the three months ended June 30, 2018 and 2017 was $10.5 million and ($10.5) million, respectively, resulting in effective tax rates of 446.2 percent and 31.2 percent, respectively. The effective tax rate for the nine months ended June 30, 2018 was impacted by discrete income tax adjustments related to the reduction of the federal statutory corporate income tax rate as part of the Tax Cuts and Jobs Act (the “Act”) which was enacted on December 22, 2017 and an increase in the deferred state income tax rate. The total related discrete income tax provision (benefit) recorded for these items for the nine and three months ended June 30, 2018 was ($491.4) million and $10.4 million, respectively. In addition, effective tax rates differ from the U.S. federal statutory rate (24.5 percent for fiscal 2018 and 35.0 percent for fiscal 2017) due to non-deductible permanent items and state and foreign income taxes. At June 30, 2018, we have not completed our accounting for all of the tax effects of the Act; however, we recorded a tax expense of $0.7 million related to the provisional tax benefit recorded under Staff Accounting Bulletin No. 118 at March 31, 2017. This additional tax relates to the re-measurement of the estimated fiscal year 2018 ending deferred tax balances. In addition, we considered the impact of the statutory changes enacted by the Act, including those provisions effective for fiscal 2018, in our estimated annual effective tax rate and have recorded provisional amounts, based on reasonable estimates, in our income tax provision for the nine and three months ended June 30, 2018. These items include deductibility of certain employee fringe benefits and state income tax adjustments related to the Act. We continue to gather information related to these items and are waiting for further guidance from the Internal Revenue Service and state taxing authorities. 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 our results of continuing operations or financial position. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2018 | |
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, 2018, we had purchase commitments for equipment, parts and supplies of approximately $97.5 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 were recognized in our Condensed 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. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2018 | |
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 Argentina, Bahrain, Colombia, U.A.E. and other South American and Middle Eastern countries. Other includes additional non-reportable operating segments. Revenues included in Other consist of rental income as well as technology services provided for the directional drilling process and MWD survey corrections. Consolidated revenues and expenses reflect the elimination of intercompany transactions. We evaluate segment performance based on income or loss from continuing operations (segment operating income) before income taxes which includes: · revenues from external and internal customers · direct operating costs · depreciation and · allocated general and administrative costs but excludes corporate costs for other depreciation, income from asset sales and other corporate income and expense. General and administrative costs are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, on other methods which we believe to be a reasonable reflection of the utilization of services provided. Segment operating income for all segments is a non-GAAP financial measure of our performance, as it excludes certain general and administrative expenses, corporate depreciation, income from asset sales and other corporate income and expense. We consider segment operating income to be an important supplemental measure of operating performance by presenting trends in our core businesses. We use this measure to facilitate period-to-period comparisons in operating performance of our reportable segments in the aggregate by eliminating items that affect comparability between periods. We believe that segment operating income is useful to investors because it provides a means to evaluate the operating performance of the segments on an ongoing basis using criteria that are used by our internal decision makers. Additionally, it highlights operating trends and aids analytical comparisons. However, segment operating income has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect our operating performance in future periods. Summarized financial information of our reportable segments for the three months ended June 30, 2018 and 2017 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2018 Contract Drilling U.S. Land $ 536,582 $ 599 $ 537,181 $ 34,339 Offshore 37,669 — 37,669 3,780 International Land 63,297 — 63,297 4,332 637,548 599 638,147 42,451 Other 11,324 303 11,627 (7,226) 648,872 902 649,774 35,225 Eliminations — (902) (902) — Total $ 648,872 $ — $ 648,872 $ 35,225 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 Summarized financial information of our reportable segments for the nine months ended June 30, 2018 and 2017 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2018 Contract Drilling U.S. Land $ 1,480,951 $ 634 $ 1,481,585 $ 86,159 Offshore 104,018 — 104,018 17,954 International Land 178,970 — 178,970 7,171 1,763,939 634 1,764,573 111,284 Other 26,504 775 27,279 (21,558) 1,790,443 1,409 1,791,852 89,726 Eliminations — (1,409) (1,409) — Total $ 1,790,443 $ — $ 1,790,443 $ 89,726 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) The following table reconciles segment operating income (loss) per the table above to income (loss) from continuing operations before income taxes as reported on the Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended June 30, June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Segment operating income (loss) $ 35,225 $ 834 $ 89,726 $ (82,543) Income from asset sales 4,313 1,862 15,133 17,593 Corporate general and administrative costs and corporate depreciation (33,321) (30,724) (96,375) (77,914) Operating income (loss) 6,217 (28,028) 8,484 (142,864) Other income (expense) Interest and dividend income 2,109 1,700 5,680 4,028 Interest expense (5,993) (6,364) (17,794) (17,503) Other 28 (911) 437 (350) Total unallocated amounts (3,856) (5,575) (11,677) (13,825) Income (loss) from continuing operations before income taxes $ 2,361 $ (33,603) $ (3,193) $ (156,689) The following table presents total assets by reportable segment: June 30, September 30, 2018 2017 (in thousands) Total assets U.S. Land $ 4,977,734 $ 4,967,074 Offshore 98,473 99,533 International Land 388,427 413,392 Other 182,731 133,085 5,647,365 5,613,084 Investments and corporate operations 618,507 826,901 Total assets from continuing operations 6,265,872 6,439,985 Discontinued operations — 3 $ 6,265,872 $ 6,439,988 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, 2018 2017 2018 2017 (in thousands) (in thousands) Operating Revenues United States $ 585,126 $ 443,489 $ 1,610,319 $ 1,114,574 Argentina 50,272 43,167 148,901 114,516 Colombia 10,639 9,356 22,872 27,579 Other Foreign 2,835 2,552 8,351 15,768 Total $ 648,872 $ 498,564 $ 1,790,443 $ 1,272,437 |
Pensions and Other Post-retirem
Pensions and Other Post-retirement Benefits | 9 Months Ended |
Jun. 30, 2018 | |
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, 2018 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, 2018 2017 2018 2017 (in thousands) (in thousands) Interest cost $ 1,013 $ 975 $ 3,041 $ 2,925 Expected return on plan assets (1,386) (1,298) (4,158) (3,896) Recognized net actuarial loss 461 574 1,382 1,724 Settlement — 1,411 — 1,411 Net pension expense $ 88 $ 1,662 $ 265 $ 2,164 Employer Contributions We did not contribute to the Pension Plan during the nine months ended June 30, 2018. We could make contributions for the remainder of fiscal 2018 to fund distributions in lieu of liquidating assets. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | 14. Capital expenditures on the Condensed Consolidated 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 Condensed Consolidated Statements of Cash Flows: Nine Months Ended June 30, 2018 2017 (in thousands) Capital expenditures incurred $ 321,588 $ 315,735 Additions incurred in prior year but paid for in current year 20,004 9,465 Additions incurred but not paid for as of the end of the period (18,934) (24,925) Capital expenditures per the Condensed Consolidated Statements of Cash Flows $ 322,658 $ 300,275 |
International Risk Factors
International Risk Factors | 9 Months Ended |
Jun. 30, 2018 | |
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. Argentina’s economy is currently considered highly inflationary, 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. For the nine months ended June 30, 2018 and 2017, we experienced aggregate foreign currency losses of $2.5 million and $3.3 million, respectively. However, in the future, we may incur larger currency devaluations, foreign exchange restrictions or other difficulties repatriating U.S. dollars from Argentina or elsewhere 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, 2018, approximately 10.0 percent of our operating revenues were generated from international locations in our contract drilling business. During the nine months ended June 30, 2018, approximately 96.0 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, 2018 | |
Recently Issued Accounting Standards | |
Recently Issued Accounting Standards | 16. Recently Issued Accounting Standards In February 2018, the FASB issued ASU No. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The new guidance clarifies that no new measurement date will be required if there is no change to the fair value, vesting conditions, and classification. This update is effective for annual and interim periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating what impact the adoption of this guidance will have on our financial statements and disclosures. 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 No. 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 annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. We will adopt the standard on October 1, 2018. We do not expect the new guidance to have a material impact on our 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. The ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption during an interim period. 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. In October 2016, the FASB issued ASU No. 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 fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We will adopt the standard on October 1, 2018. We are currently assessing the impact this standard will have on our consolidated statement of cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The new model will apply to: (1) loans, accounts receivable, trade receivables, and other financial assets measured at amortized cost, (2) loan commitments and certain other off-balance sheet credit exposures, (3) debt securities and other financial assets measured at fair value through other comprehensive income/(loss), and (4) beneficial interests in securitized financial assets. This update is effective for annual and interim periods beginning after December 15, 2019. We are currently evaluating what impact the adoption of this guidance will have on our financial statements and disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842): Amendments to the FASB Accounting Standards Codification. The amendments require an entity to recognize lease assets and lease liabilities on the balance sheet and to disclose key qualitative and quantitative information about the entity's leasing arrangements. This update is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. A modified retrospective approach is required. We are currently evaluating what impact the adoption of this guidance will have on our financial statements or disclosures in our 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 fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. 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 May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606): A new guidance intended to change the criteria for recognition of revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to clients in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. We have not yet adopted nor selected a transition method and are currently evaluating what impact the adoption of this guidance will have on our financial statements or disclosures in our financial statements. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 9 Months Ended |
Jun. 30, 2018 | |
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, so that separate financial statements of the issuer are not required to be filed. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements. Condensed consolidating financial information for the issuer, Helmerich & Payne International Drilling Co., and parent, guarantor, Helmerich & Payne, Inc. is shown in the tables below. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (in thousands) Three Months Ended June 30, 2018 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ 574,252 $ 74,647 $ (27) $ 648,872 Operating costs and other 4,240 557,994 80,639 (218) 642,655 Operating (loss) income from continuing operations (4,240) 16,258 (5,992) 191 6,217 Other income, net 196 1,854 278 (191) 2,137 Interest expense (108) (5,117) (768) — (5,993) Equity in net loss of subsidiaries (4,883) (2,093) — 6,976 — (Loss) income from continuing operations before income taxes (9,035) 10,902 (6,482) 6,976 2,361 Income tax (benefit) provision (1,027) 17,384 (5,822) — 10,535 Loss from continuing operations (8,008) (6,482) (660) 6,976 (8,174) Income from discontinued operations before income taxes — — 8,383 — 8,383 Income tax provision — — 8,217 — 8,217 Income from discontinued operations — — 166 — 166 Net loss $ (8,008) $ (6,482) $ (494) $ 6,976 $ (8,008) CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands) Three Months Ended June 30, 2018 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net loss $ (8,008) $ (6,482) $ (494) $ 6,976 $ (8,008) Other comprehensive (loss) income, net of income taxes: Unrealized depreciation on securities, net — 13,826 — — 13,826 Minimum pension liability adjustments, net 101 236 — — 337 Other comprehensive income 101 14,062 — — 14,163 Comprehensive (loss) income $ (7,907) $ 7,580 $ (494) $ 6,976 $ 6,155 CONDENSED CONSOLIDATING 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 expenses 3,364 463,220 60,224 (216) 526,592 Operating loss from continuing operations (3,364) (23,993) (869) 198 (28,028) Other (expense) income, net (4) 2,052 (1,061) (198) 789 Interest expense (87) (5,294) (983) — (6,364) Equity in net 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 benefit (1,166) (7,360) (1,952) — (10,478) Loss from continuing operations (21,799) (19,960) (961) 19,595 (23,125) Income from discontinued operations before income taxes — — 3,223 — 3,223 Income tax provision — — 1,897 — 1,897 Income from discontinued operations — — 1,326 — 1,326 Net (loss) income $ (21,799) $ (19,960) $ 365 $ 19,595 $ (21,799) CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands) Three Months Ended June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net (loss) income $ (21,799) $ (19,960) $ 365 $ 19,595 $ (21,799) Other comprehensive (loss) income, 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 (loss) income $ (21,695) $ (26,598) $ 365 $ 19,595 $ (28,333) CONDENSED CONSOLIDATING STATEMENTS OF INCOME (in thousands) Nine Months Ended June 30, 2018 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ 1,584,970 $ 205,537 $ (64) $ 1,790,443 Operating costs and other 12,627 1,542,815 227,186 (669) 1,781,959 Operating (loss) income from continuing operations (12,627) 42,155 (21,649) 605 8,484 Other income, net 477 5,226 1,019 (605) 6,117 Interest expense (274) (15,368) (2,152) — (17,794) Equity in net income of subsidiaries 494,574 3,191 — (497,765) — Income (loss) from continuing operations before income taxes 482,150 35,204 (22,782) (497,765) (3,193) Income tax provision (benefit) 1,931 (459,571) (36,388) — (494,028) Income from continuing operations 480,219 494,775 13,606 (497,765) 490,835 Income from discontinued operations before income taxes — — 9,127 — 9,127 Income tax provision — — 19,743 — 19,743 Loss from discontinued operations — — (10,616) — (10,616) Net income $ 480,219 $ 494,775 $ 2,990 $ (497,765) $ 480,219 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2018 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ 480,219 $ 494,775 $ 2,990 $ (497,765) $ 480,219 Other comprehensive income, net of income taxes: Unrealized apreciation on securities, net — 5,657 — — 5,657 Minimum pension liability adjustments, net 295 690 — — 985 Other comprehensive income 295 6,347 — — 6,642 Comprehensive income $ 480,514 $ 501,122 $ 2,990 $ (497,765) $ 486,861 CONDENSED CONSOLIDATING 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 (expense) 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 (benefit) (3,886) (37,320) (9,331) — (50,537) Loss from continuing operations (105,680) (98,209) (12,316) 110,053 (106,152) Income from discontinued operations before income taxes — — 2,705 — 2,705 Income tax provision — — 2,233 — 2,233 Income from discontinued operations — — 472 — 472 Net loss $ (105,680) $ (98,209) $ (11,844) $ 110,053 $ (105,680) CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (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) CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands) June 30, 2018 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ (1,027) $ 292,439 $ 15,014 $ — $ 306,426 Short-term investments — 44,279 — — 44,279 Accounts receivable, net of allowance (164) 482,746 82,855 (116) 565,321 Inventories — 119,043 33,066 — 152,109 Prepaid expenses and other 15,707 13,353 37,101 (818) 65,343 Total current assets 14,516 951,860 168,036 (934) 1,133,478 Investments 14,902 77,800 — — 92,702 Property, plant and equipment, net 48,273 4,520,974 314,131 — 4,883,378 Intercompany 150,255 2,079,427 250,461 (2,480,143) — Goodwill — — 69,496 — 69,496 Intangible assets, net — — 75,564 — 75,564 Other assets 5,162 921 5,171 — 11,254 Investment in subsidiaries 5,970,971 186,724 — (6,157,695) — Total assets $ 6,204,079 $ 7,817,706 $ 882,859 $ (8,638,772) $ 6,265,872 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 82,019 $ 55,242 $ 6,580 $ (109) $ 143,732 Accrued liabilities 33,009 163,373 42,379 (826) 237,935 Current liabilities - discontinued operations — — 1 — 1 Total current liabilities 115,028 218,615 48,960 (935) 381,668 Noncurrent liabilities: Long-term debt — 493,700 — — 493,700 Deferred income taxes (7,230) 820,472 20,496 — 833,738 Intercompany 1,627,211 277,742 575,090 (2,480,043) — Other 26,579 50,569 22,579 — 99,727 Noncurrent liabilities - discontinued operations — — 14,548 — 14,548 Total noncurrent liabilities 1,646,560 1,642,483 632,713 (2,480,043) 1,441,713 Shareholders’ equity: Common stock 11,201 100 — (100) 11,201 Additional paid-in capital 494,604 52,436 1,040 (53,476) 494,604 Retained earnings 4,103,418 5,890,988 200,146 (6,091,134) 4,103,418 Accumulated other comprehensive income 8,942 13,084 — (13,084) 8,942 Treasury stock, at cost (175,674) — — — (175,674) Total shareholders’ equity 4,442,491 5,956,608 201,186 (6,157,794) 4,442,491 Total liabilities and shareholders’ equity $ 6,204,079 $ 7,817,706 $ 882,859 $ (8,638,772) $ 6,265,872 CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands) September 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ (587) $ 508,091 $ 13,871 $ — $ 521,375 Short-term investments — 44,491 — — 44,491 Accounts receivable, net of allowance 766 411,599 64,714 (5) 477,074 Inventories — 102,470 34,734 — 137,204 Prepaid expenses and other 12,200 6,383 36,979 (442) 55,120 Current assets - discontinued operations — — 3 — 3 Total current assets 12,379 1,073,034 150,301 (447) 1,235,267 Investments 13,853 70,173 — — 84,026 Property, plant and equipment, net 49,851 4,609,144 342,056 — 5,001,051 Intercompany 90,885 1,746,662 248,540 (2,086,087) — Goodwill — — 51,705 — 51,705 Intangible assets, net — — 50,785 — 50,785 Other assets 4,955 3,839 8,360 — 17,154 Investment in subsidiaries 5,470,050 183,382 — (5,653,432) — Total assets $ 5,641,973 $ 7,686,234 $ 851,747 $ (7,739,966) $ 6,439,988 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 82,360 $ 48,679 $ 4,589 $ — $ 135,628 Accrued liabilities 26,698 148,491 33,941 (447) 208,683 Current liabilities - discontinued operations — — 74 — 74 Total current liabilities 109,058 197,170 38,604 (447) 344,385 Noncurrent liabilities: Long-term debt — 492,902 — — 492,902 Deferred income taxes (11,201) 1,286,381 57,509 — 1,332,689 Intercompany 1,354,068 210,823 521,096 (2,085,987) — Other 25,457 43,471 32,481 — 101,409 Noncurrent liabilities - discontinued operations — — 4,012 — 4,012 Total noncurrent liabilities 1,368,324 2,033,577 615,098 (2,085,987) 1,931,012 Shareholders’ equity: Common stock 11,196 100 — (100) 11,196 Additional paid-in capital 487,248 52,437 1,039 (53,476) 487,248 Retained earnings 3,855,686 5,396,212 197,006 (5,593,218) 3,855,686 Accumulated other comprehensive income 2,300 6,738 — (6,738) 2,300 Treasury stock, at cost (191,839) — — — (191,839) Total shareholders’ equity 4,164,591 5,455,487 198,045 (5,653,532) 4,164,591 Total liabilities and shareholders’ equity $ 5,641,973 $ 7,686,234 $ 851,747 $ (7,739,966) $ 6,439,988 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2018 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 378 $ 350,557 $ 7,486 $ — $ 358,421 INVESTING ACTIVITIES: Capital expenditures (8,725) (306,278) (7,655) — (322,658) Purchase of short-term investments — (52,159) — — (52,159) Acquisition of business, net of cash acquired (47,886) — — — (47,886) Proceeds from sale of short-term investments — 52,470 — — 52,470 Intercompany transfers 56,611 (56,611) — — — Proceeds from asset sales — 26,737 1,312 — 28,049 Net cash used in investing activities — (335,841) (6,343) — (342,184) FINANCING ACTIVITIES: Intercompany transfers 230,368 (230,368) — — — Dividends paid (230,368) — — — (230,368) Proceeds from stock option exercises 5,160 — — — 5,160 Payments for employee taxes on net settlement of equity awards (5,978) — — — (5,978) Net cash used in financing activities (818) (230,368) — — (231,186) Net (decrease) increase in cash and cash equivalents (440) (215,652) 1,143 — (214,949) Cash and cash equivalents, beginning of period (587) 508,091 13,871 — 521,375 Cash and cash equivalents, end of period $ (1,027) $ 292,439 $ 15,014 $ — $ 306,426 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2017, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash (used in) provided by operating activities $ (4,796) $ 235,176 $ 9,875 $ — $ 240,255 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 used in investing activities — (345,198) (3,380) — (348,578) FINANCING ACTIVITIES: Intercompany transfers 229,061 (229,061) — — — Dividends paid (229,061) — — — (229,061) Proceeds from stock option exercises 10,884 — — — 10,884 Payments for employee taxes on net settlement of equity awards (6,274) — — — (6,274) Net cash provided by (used in) financing activities 4,610 (229,061) — — (224,451) Net (decrease) increase 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 |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Basis of Presentation | |
Schedule of finite-lived and indefinite-lived intangible assets other than goodwill | June 30, 2018 September 30, 2017 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization (in thousands) Finite-lived intangible asset: Developed technology $ 70,000 $ 4,422 $ 51,000 $ 1,134 Trade name 5,700 166 — — Customer relationships 4,000 467 — — $ 79,700 $ 5,055 $ 51,000 $ 1,134 Indefinite-lived intangible asset: Trademark $ 919 $ 919 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Business Combinations | |
Summary of the purchase price and the allocation of the fair values of assets acquired and liabilities assumed | The following table summarizes the purchase price and the fair values of assets acquired and liabilities assumed at the acquisition date (in thousands): Purchase Price Consideration given Cash consideration $ 48,485 Allocation of Purchase Price Fair value of assets acquired Current assets $ 2,286 Property, plant and equipment 13 Intangible assets 28,700 Goodwill 17,791 Total assets acquired $ 48,790 Fair value of liabilities assumed Current liabilities $ 305 Fair value of total assets acquired and liabilities assumed $ 48,485 |
Pro forma of financial information | Pro Forma (unaudited) Nine Months Ended June 30, 2018 2017 (in thousands) Revenues $ 1,794,131 $ 1,279,424 Net income (loss) $ 480,411 $ (104,519) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Earnings per Share | |
Schedule of computation of basic and diluted earnings per share | Three Months Ended Nine Months Ended June 30, June 30, 2018 2017 2018 2017 (in thousands, except per share amounts) Numerator: (Loss) income from continuing operations $ (8,174) $ (23,125) $ 490,835 $ (106,152) Income (loss) from discontinued operations 166 1,326 (10,616) 472 Net (loss) income (8,008) (21,799) 480,219 (105,680) Adjustment for basic earnings per share Earnings allocated to unvested shareholders (717) (458) (4,241) (1,349) Numerator for basic earnings per share: From continuing operations (8,891) (23,583) 486,594 (107,501) From discontinued operations 166 1,326 (10,616) 472 (8,725) (22,257) 475,978 (107,029) Adjustment for diluted earnings per share: Effect of reallocating undistributed earnings of unvested shareholders — — 10 — Numerator for diluted earnings per share: From continuing operations (8,891) (23,583) 486,604 (107,501) From discontinued operations 166 1,326 (10,616) 472 $ (8,725) $ (22,257) $ 475,988 $ (107,029) Denominator: Denominator for basic earnings per share - weighted-average shares 108,905 108,572 108,818 108,470 Effect of dilutive shares from stock options and restricted stock — — 520 — Denominator for diluted earnings per share - adjusted weighted-average shares 108,905 108,572 109,338 108,470 Basic earnings per common share: (Loss) income from continuing operations $ (0.08) $ (0.22) $ 4.47 $ (0.99) Income (loss) from discontinued operations — 0.01 (0.10) — Net (loss) income $ (0.08) $ (0.21) $ 4.37 $ (0.99) Diluted earnings per common share: (Loss) income from continuing operations $ (0.08) $ (0.22) $ 4.45 $ (0.99) Income (loss) from discontinued operations — 0.01 (0.10) — Net (loss) income $ (0.08) $ (0.21) $ 4.35 $ (0.99) |
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, 2018 2017 2018 2017 (in thousands, except per share amounts) Shares excluded from calculation of diluted earnings per share 929 1,332 1,585 1,034 Weighted-average price per share $ 75.56 $ 70.82 $ 68.51 $ 73.84 |
Financial Instruments and Fai30
Financial Instruments and Fair Value Measurement (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
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, 2018 $ 38,473 $ 39,327 $ — $ 77,800 September 30, 2017 $ 38,473 $ 31,700 $ — $ 70,173 |
Summary of assets and liabilities measured at fair value | Fair Value (Level 1) (Level 2) (Level 3) (in thousands) Recurring fair value measurements: Short-term investments: Certificates of deposit $ 1,500 $ — $ 1,500 $ — Corporate and municipal debt securities 13,794 — 13,794 — U.S. government and federal agency securities 28,985 28,985 — — Total short-term investments 44,279 28,985 15,294 — Cash and cash equivalents 306,426 306,426 — — Investments 77,800 77,800 — — Other current assets 34,614 34,614 — — Other assets 6,902 6,902 — — Total assets measured at fair value $ 470,021 $ 454,727 $ 15,294 $ — Liabilities: Contingent earnout liability $ 9,402 $ — $ — $ 9,402 |
Schedule of reconciliation of changes in the fair value of our financial assets and liabilities classified as Level 3 | Three Months Ended Nine Months Ended June 30, June 30, 2018 2017 2018 2017 (in thousands) Net liabilities at beginning of period $ 15,702 $ — $ 14,879 $ — Total gains or losses: Included in earnings (175) 14,509 5,148 14,509 Settlements (6,125) — (10,625) — Net liabilities at end of period $ 9,402 $ 14,509 $ 9,402 $ 14,509 |
Summary of supplemental fair value information about long-term fixed-rate debt | June 30, September 30, 2018 2017 (in millions) Carrying value of long-term fixed-rate debt $ 493.7 $ 492.9 Fair value of long-term fixed-rate debt $ 516.5 $ 529.0 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Shareholders' Equity | |
Schedule of components of accumulated other comprehensive income (loss) | June 30, September 30, 2018 2017 (in thousands) Pre-tax amounts: Unrealized appreciation on securities $ 39,327 $ 31,700 Unrealized actuarial loss (27,491) (28,873) $ 11,836 $ 2,827 After-tax amounts: Unrealized appreciation on securities $ 25,727 $ 20,070 Unrealized actuarial loss (16,785) (17,770) $ 8,942 $ 2,300 |
Summary of the changes in accumulated other comprehensive income (loss), net of tax, by component | Three Months Ended June 30, 2018 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balance at April 1, 2018 $ 11,901 $ (17,122) $ (5,221) Other comprehensive income before reclassifications 13,826 — 13,826 Amounts reclassified from accumulated other comprehensive income — 337 337 Net current-period other comprehensive income 13,826 337 14,163 Balance at June 30, 2018 $ 25,727 $ (16,785) $ 8,942 Nine Months Ended June 30, 2018 Unrealized Appreciation (Depreciation) on Defined Available-for-sale Benefit Securities Pension Plan Total (in thousands) Balance at October 1, 2017 $ 20,070 $ (17,770) $ 2,300 Other comprehensive income before reclassifications 5,657 — 5,657 Amounts reclassified from accumulated other comprehensive income — 985 985 Net current-period other comprehensive income 5,657 985 6,642 Balance at June 30, 2018 $ 25,727 $ (16,785) $ 8,942 |
Schedule of accumulated other comprehensive income (loss) components which were reclassified to the Statement of Operations | 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 Condensed Comprehensive Income (Loss) Components 2018 2017 2018 2017 Consolidated Statements of Operations (in thousands) (in thousands) Amortization of net actuarial loss on defined benefit pension plan $ (461) $ (574) $ (1,382) $ (1,724) General and administrative 124 209 397 627 Income tax provision Total reclassifications for the period $ (337) $ (365) $ (985) $ (1,097) Net of tax |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 2018 2017 (in thousands) (in thousands) Compensation expense Stock options $ 1,815 $ 1,934 $ 5,887 $ 5,455 Restricted stock 6,111 4,834 17,585 13,792 $ 7,926 $ 6,768 $ 23,472 $ 19,247 |
Summary of weighted-average assumptions utilized in determining the fair value of options granted | 2018 2017 Risk-free interest rate 2.2 % 2.0 % Expected stock volatility 36.1 % 38.9 % Dividend yield 4.7 % 3.7 % Expected term (in years) 6.0 5.5 |
Summary of stock option activity | Three Months Ended June 30, 2018 Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Shares Exercise Term Value (in thousands) Price (in years) (in millions) Outstanding at April 1, 2018 3,721 $ 58.15 Granted 24 68.90 Exercised (66) 56.02 Forfeited/Expired (59) 68.70 Outstanding at June 30, 2018 3,620 $ 58.08 5.96 $ 31.5 Vested and expected to vest at June 30, 2018 3,620 $ 58.08 5.96 $ 31.5 Exercisable at June 30, 2018 2,308 $ 55.61 4.44 $ 25.8 Nine Months Ended June 30, 2018 Weighted Average Shares Exercise (in thousands) Price Outstanding at October 1, 2017 3,278 $ 56.41 Granted 691 59.01 Exercised (290) 39.20 Forfeited/Expired (59) 68.70 Outstanding at June 30, 2018 3,620 $ 58.08 |
Summary of restricted stock awards and changes in restricted stock outstanding | Nine Months Ended June 30, 2018 Weighted Average Shares Grant Date Fair (in thousands) Value per Share Unvested at October 1, 2017 659 $ 70.76 Granted 625 59.52 Vested (1) (258) 71.16 Forfeited (19) 68.98 Unvested on June 30, 2018 1,007 $ 63.72 (1) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
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, 2018 2017 2018 2017 (in thousands) Unsecured senior notes issued March 19, 2015: Due March 19, 2025 $ 500,000 $ 500,000 $ (6,300) $ (7,098) 500,000 500,000 (6,300) (7,098) Less long-term debt due within one year — — — — Long-term debt $ 500,000 $ 500,000 $ (6,300) $ (7,098) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Segment Information | |
Summary of financial information of the entity's reportable segments | Summarized financial information of our reportable segments for the three months ended June 30, 2018 and 2017 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2018 Contract Drilling U.S. Land $ 536,582 $ 599 $ 537,181 $ 34,339 Offshore 37,669 — 37,669 3,780 International Land 63,297 — 63,297 4,332 637,548 599 638,147 42,451 Other 11,324 303 11,627 (7,226) 648,872 902 649,774 35,225 Eliminations — (902) (902) — Total $ 648,872 $ — $ 648,872 $ 35,225 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 Summarized financial information of our reportable segments for the nine months ended June 30, 2018 and 2017 is shown in the following tables: Segment External Inter- Total Operating (in thousands) Sales Segment Sales Income (Loss) June 30, 2018 Contract Drilling U.S. Land $ 1,480,951 $ 634 $ 1,481,585 $ 86,159 Offshore 104,018 — 104,018 17,954 International Land 178,970 — 178,970 7,171 1,763,939 634 1,764,573 111,284 Other 26,504 775 27,279 (21,558) 1,790,443 1,409 1,791,852 89,726 Eliminations — (1,409) (1,409) — Total $ 1,790,443 $ — $ 1,790,443 $ 89,726 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) |
Schedule of reconciliation of segment operating income (loss) to income from continuing operations before income taxes | Three Months Ended Nine Months Ended June 30, June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Segment operating income (loss) $ 35,225 $ 834 $ 89,726 $ (82,543) Income from asset sales 4,313 1,862 15,133 17,593 Corporate general and administrative costs and corporate depreciation (33,321) (30,724) (96,375) (77,914) Operating income (loss) 6,217 (28,028) 8,484 (142,864) Other income (expense) Interest and dividend income 2,109 1,700 5,680 4,028 Interest expense (5,993) (6,364) (17,794) (17,503) Other 28 (911) 437 (350) Total unallocated amounts (3,856) (5,575) (11,677) (13,825) Income (loss) from continuing operations before income taxes $ 2,361 $ (33,603) $ (3,193) $ (156,689) |
Schedule of total assets by reportable segment | June 30, September 30, 2018 2017 (in thousands) Total assets U.S. Land $ 4,977,734 $ 4,967,074 Offshore 98,473 99,533 International Land 388,427 413,392 Other 182,731 133,085 5,647,365 5,613,084 Investments and corporate operations 618,507 826,901 Total assets from continuing operations 6,265,872 6,439,985 Discontinued operations — 3 $ 6,265,872 $ 6,439,988 |
Schedule of revenues from external customers and long-lived assets | Three Months Ended Nine Months Ended June 30, June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Operating Revenues United States $ 585,126 $ 443,489 $ 1,610,319 $ 1,114,574 Argentina 50,272 43,167 148,901 114,516 Colombia 10,639 9,356 22,872 27,579 Other Foreign 2,835 2,552 8,351 15,768 Total $ 648,872 $ 498,564 $ 1,790,443 $ 1,272,437 |
Pensions and Other Post-retir35
Pensions and Other Post-retirement Benefits (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Pensions and Other Post-retirement Benefits | |
Schedule of components of net periodic pension expense (benefit) | Three Months Ended Nine Months Ended June 30, June 30, 2018 2017 2018 2017 (in thousands) (in thousands) Interest cost $ 1,013 $ 975 $ 3,041 $ 2,925 Expected return on plan assets (1,386) (1,298) (4,158) (3,896) Recognized net actuarial loss 461 574 1,382 1,724 Settlement — 1,411 — 1,411 Net pension expense $ 88 $ 1,662 $ 265 $ 2,164 |
Supplemental Cash Flow Inform36
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Information | |
Schedule of supplemental cash flow information | Nine Months Ended June 30, 2018 2017 (in thousands) Capital expenditures incurred $ 321,588 $ 315,735 Additions incurred in prior year but paid for in current year 20,004 9,465 Additions incurred but not paid for as of the end of the period (18,934) (24,925) Capital expenditures per the Condensed Consolidated Statements of Cash Flows $ 322,658 $ 300,275 |
Guarantor and Non-Guarantor F37
Guarantor and Non-Guarantor Financial Information (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Guarantor and Non-Guarantor Financial Information | |
Schedule of Consolidated Condensed Statements of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (in thousands) Three Months Ended June 30, 2018 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ 574,252 $ 74,647 $ (27) $ 648,872 Operating costs and other 4,240 557,994 80,639 (218) 642,655 Operating (loss) income from continuing operations (4,240) 16,258 (5,992) 191 6,217 Other income, net 196 1,854 278 (191) 2,137 Interest expense (108) (5,117) (768) — (5,993) Equity in net loss of subsidiaries (4,883) (2,093) — 6,976 — (Loss) income from continuing operations before income taxes (9,035) 10,902 (6,482) 6,976 2,361 Income tax (benefit) provision (1,027) 17,384 (5,822) — 10,535 Loss from continuing operations (8,008) (6,482) (660) 6,976 (8,174) Income from discontinued operations before income taxes — — 8,383 — 8,383 Income tax provision — — 8,217 — 8,217 Income from discontinued operations — — 166 — 166 Net loss $ (8,008) $ (6,482) $ (494) $ 6,976 $ (8,008) CONDENSED CONSOLIDATING 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 expenses 3,364 463,220 60,224 (216) 526,592 Operating loss from continuing operations (3,364) (23,993) (869) 198 (28,028) Other (expense) income, net (4) 2,052 (1,061) (198) 789 Interest expense (87) (5,294) (983) — (6,364) Equity in net 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 benefit (1,166) (7,360) (1,952) — (10,478) Loss from continuing operations (21,799) (19,960) (961) 19,595 (23,125) Income from discontinued operations before income taxes — — 3,223 — 3,223 Income tax provision — — 1,897 — 1,897 Income from discontinued operations — — 1,326 — 1,326 Net (loss) income $ (21,799) $ (19,960) $ 365 $ 19,595 $ (21,799) CONDENSED CONSOLIDATING STATEMENTS OF INCOME (in thousands) Nine Months Ended June 30, 2018 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Operating revenue $ — $ 1,584,970 $ 205,537 $ (64) $ 1,790,443 Operating costs and other 12,627 1,542,815 227,186 (669) 1,781,959 Operating (loss) income from continuing operations (12,627) 42,155 (21,649) 605 8,484 Other income, net 477 5,226 1,019 (605) 6,117 Interest expense (274) (15,368) (2,152) — (17,794) Equity in net income of subsidiaries 494,574 3,191 — (497,765) — Income (loss) from continuing operations before income taxes 482,150 35,204 (22,782) (497,765) (3,193) Income tax provision (benefit) 1,931 (459,571) (36,388) — (494,028) Income from continuing operations 480,219 494,775 13,606 (497,765) 490,835 Income from discontinued operations before income taxes — — 9,127 — 9,127 Income tax provision — — 19,743 — 19,743 Loss from discontinued operations — — (10,616) — (10,616) Net income $ 480,219 $ 494,775 $ 2,990 $ (497,765) $ 480,219 CONDENSED CONSOLIDATING 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 (expense) 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 (benefit) (3,886) (37,320) (9,331) — (50,537) Loss from continuing operations (105,680) (98,209) (12,316) 110,053 (106,152) Income from discontinued operations before income taxes — — 2,705 — 2,705 Income tax provision — — 2,233 — 2,233 Income from discontinued operations — — 472 — 472 Net loss $ (105,680) $ (98,209) $ (11,844) $ 110,053 $ (105,680) |
Schedule of Consolidated Condensed Statements of Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands) Three Months Ended June 30, 2018 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net loss $ (8,008) $ (6,482) $ (494) $ 6,976 $ (8,008) Other comprehensive (loss) income, net of income taxes: Unrealized depreciation on securities, net — 13,826 — — 13,826 Minimum pension liability adjustments, net 101 236 — — 337 Other comprehensive income 101 14,062 — — 14,163 Comprehensive (loss) income $ (7,907) $ 7,580 $ (494) $ 6,976 $ 6,155 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands) Three Months Ended June 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net (loss) income $ (21,799) $ (19,960) $ 365 $ 19,595 $ (21,799) Other comprehensive (loss) income, 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 (loss) income $ (21,695) $ (26,598) $ 365 $ 19,595 $ (28,333) CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Nine Months Ended June 30, 2018 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net income $ 480,219 $ 494,775 $ 2,990 $ (497,765) $ 480,219 Other comprehensive income, net of income taxes: Unrealized apreciation on securities, net — 5,657 — — 5,657 Minimum pension liability adjustments, net 295 690 — — 985 Other comprehensive income 295 6,347 — — 6,642 Comprehensive income $ 480,514 $ 501,122 $ 2,990 $ (497,765) $ 486,861 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (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) |
Schedule of Consolidated Condensed Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands) June 30, 2018 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ (1,027) $ 292,439 $ 15,014 $ — $ 306,426 Short-term investments — 44,279 — — 44,279 Accounts receivable, net of allowance (164) 482,746 82,855 (116) 565,321 Inventories — 119,043 33,066 — 152,109 Prepaid expenses and other 15,707 13,353 37,101 (818) 65,343 Total current assets 14,516 951,860 168,036 (934) 1,133,478 Investments 14,902 77,800 — — 92,702 Property, plant and equipment, net 48,273 4,520,974 314,131 — 4,883,378 Intercompany 150,255 2,079,427 250,461 (2,480,143) — Goodwill — — 69,496 — 69,496 Intangible assets, net — — 75,564 — 75,564 Other assets 5,162 921 5,171 — 11,254 Investment in subsidiaries 5,970,971 186,724 — (6,157,695) — Total assets $ 6,204,079 $ 7,817,706 $ 882,859 $ (8,638,772) $ 6,265,872 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 82,019 $ 55,242 $ 6,580 $ (109) $ 143,732 Accrued liabilities 33,009 163,373 42,379 (826) 237,935 Current liabilities - discontinued operations — — 1 — 1 Total current liabilities 115,028 218,615 48,960 (935) 381,668 Noncurrent liabilities: Long-term debt — 493,700 — — 493,700 Deferred income taxes (7,230) 820,472 20,496 — 833,738 Intercompany 1,627,211 277,742 575,090 (2,480,043) — Other 26,579 50,569 22,579 — 99,727 Noncurrent liabilities - discontinued operations — — 14,548 — 14,548 Total noncurrent liabilities 1,646,560 1,642,483 632,713 (2,480,043) 1,441,713 Shareholders’ equity: Common stock 11,201 100 — (100) 11,201 Additional paid-in capital 494,604 52,436 1,040 (53,476) 494,604 Retained earnings 4,103,418 5,890,988 200,146 (6,091,134) 4,103,418 Accumulated other comprehensive income 8,942 13,084 — (13,084) 8,942 Treasury stock, at cost (175,674) — — — (175,674) Total shareholders’ equity 4,442,491 5,956,608 201,186 (6,157,794) 4,442,491 Total liabilities and shareholders’ equity $ 6,204,079 $ 7,817,706 $ 882,859 $ (8,638,772) $ 6,265,872 CONDENSED CONSOLIDATING BALANCE SHEETS (in thousands) September 30, 2017 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ (587) $ 508,091 $ 13,871 $ — $ 521,375 Short-term investments — 44,491 — — 44,491 Accounts receivable, net of allowance 766 411,599 64,714 (5) 477,074 Inventories — 102,470 34,734 — 137,204 Prepaid expenses and other 12,200 6,383 36,979 (442) 55,120 Current assets - discontinued operations — — 3 — 3 Total current assets 12,379 1,073,034 150,301 (447) 1,235,267 Investments 13,853 70,173 — — 84,026 Property, plant and equipment, net 49,851 4,609,144 342,056 — 5,001,051 Intercompany 90,885 1,746,662 248,540 (2,086,087) — Goodwill — — 51,705 — 51,705 Intangible assets, net — — 50,785 — 50,785 Other assets 4,955 3,839 8,360 — 17,154 Investment in subsidiaries 5,470,050 183,382 — (5,653,432) — Total assets $ 5,641,973 $ 7,686,234 $ 851,747 $ (7,739,966) $ 6,439,988 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 82,360 $ 48,679 $ 4,589 $ — $ 135,628 Accrued liabilities 26,698 148,491 33,941 (447) 208,683 Current liabilities - discontinued operations — — 74 — 74 Total current liabilities 109,058 197,170 38,604 (447) 344,385 Noncurrent liabilities: Long-term debt — 492,902 — — 492,902 Deferred income taxes (11,201) 1,286,381 57,509 — 1,332,689 Intercompany 1,354,068 210,823 521,096 (2,085,987) — Other 25,457 43,471 32,481 — 101,409 Noncurrent liabilities - discontinued operations — — 4,012 — 4,012 Total noncurrent liabilities 1,368,324 2,033,577 615,098 (2,085,987) 1,931,012 Shareholders’ equity: Common stock 11,196 100 — (100) 11,196 Additional paid-in capital 487,248 52,437 1,039 (53,476) 487,248 Retained earnings 3,855,686 5,396,212 197,006 (5,593,218) 3,855,686 Accumulated other comprehensive income 2,300 6,738 — (6,738) 2,300 Treasury stock, at cost (191,839) — — — (191,839) Total shareholders’ equity 4,164,591 5,455,487 198,045 (5,653,532) 4,164,591 Total liabilities and shareholders’ equity $ 5,641,973 $ 7,686,234 $ 851,747 $ (7,739,966) $ 6,439,988 |
Schedule of Consolidated Condensed Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2018 Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 378 $ 350,557 $ 7,486 $ — $ 358,421 INVESTING ACTIVITIES: Capital expenditures (8,725) (306,278) (7,655) — (322,658) Purchase of short-term investments — (52,159) — — (52,159) Acquisition of business, net of cash acquired (47,886) — — — (47,886) Proceeds from sale of short-term investments — 52,470 — — 52,470 Intercompany transfers 56,611 (56,611) — — — Proceeds from asset sales — 26,737 1,312 — 28,049 Net cash used in investing activities — (335,841) (6,343) — (342,184) FINANCING ACTIVITIES: Intercompany transfers 230,368 (230,368) — — — Dividends paid (230,368) — — — (230,368) Proceeds from stock option exercises 5,160 — — — 5,160 Payments for employee taxes on net settlement of equity awards (5,978) — — — (5,978) Net cash used in financing activities (818) (230,368) — — (231,186) Net (decrease) increase in cash and cash equivalents (440) (215,652) 1,143 — (214,949) Cash and cash equivalents, beginning of period (587) 508,091 13,871 — 521,375 Cash and cash equivalents, end of period $ (1,027) $ 292,439 $ 15,014 $ — $ 306,426 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended June 30, 2017, as adjusted Guarantor/ Issuer Non-Guarantor Total Parent Subsidiary Subsidiaries Eliminations Consolidated Net cash (used in) provided by operating activities $ (4,796) $ 235,176 $ 9,875 $ — $ 240,255 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 used in investing activities — (345,198) (3,380) — (348,578) FINANCING ACTIVITIES: Intercompany transfers 229,061 (229,061) — — — Dividends paid (229,061) — — — (229,061) Proceeds from stock option exercises 10,884 — — — 10,884 Payments for employee taxes on net settlement of equity awards (6,274) — — — (6,274) Net cash provided by (used in) financing activities 4,610 (229,061) — — (224,451) Net (decrease) increase 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 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other disclosures | ||||
Early termination revenue | $ 6 | $ 5.1 | $ 14.3 | $ 24.8 |
Abandonments | $ 7 | $ 7.7 | $ 22.5 | $ 27.2 |
Basis of Presentation - Depreci
Basis of Presentation - Depreciation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Sep. 30, 2017 | |
Change in accounting estimate | ||
Property, plant and equipment, net | $ 4,883,378 | $ 5,001,051 |
Rigs components depreciation | ||
Change in accounting estimate | ||
Property, plant and equipment, net | 10,400 | |
Increase in depreciation | 1,000 | |
Remainder of fiscal year | 5,700 | |
2,019 | 1,400 | |
2,020 | 1,700 | |
2,021 | 1,600 | |
2,022 | 900 | |
2,023 | 300 | |
Thereafter | $ 800 |
Basis of Presentation - Foreign
Basis of Presentation - Foreign exchange (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basis of Presentation | ||||
Foreign currency gains (losses) | $ (1.1) | $ (1.3) | $ (2.5) | $ (3.3) |
Basis of Presentation - Finite-
Basis of Presentation - Finite-lived intangible asset (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Finite-lived intangible asset | ||
Gross Carrying Amount | $ 79,700 | $ 51,000 |
Accumulated Amortization | 5,055 | 1,134 |
Developed technology | ||
Finite-lived intangible asset | ||
Gross Carrying Amount | 70,000 | 51,000 |
Accumulated Amortization | 4,422 | $ 1,134 |
Trade Name | ||
Finite-lived intangible asset | ||
Gross Carrying Amount | 5,700 | |
Accumulated Amortization | 166 | |
Customer Relationships | ||
Finite-lived intangible asset | ||
Gross Carrying Amount | 4,000 | |
Accumulated Amortization | $ 467 |
Basis of Presentation - Indefin
Basis of Presentation - Indefinite-lived intangible asset (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Trademark | ||
Indefinite-lived intangible asset | ||
Gross Carrying Amount | $ 919 | $ 919 |
Basis of Presentation - Amortiz
Basis of Presentation - Amortization (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Basis of Presentation | ||
Amortization expense | $ 1.4 | $ 3.9 |
Expected annual amortization in next fiscal year | 5.4 | 5.4 |
Expected annual amortization in year three | 5.8 | 5.8 |
Expected annual amortization in year four | 5.8 | 5.8 |
Expected annual amortization in year six | $ 5.1 | $ 5.1 |
Basis of Presentation - Recentl
Basis of Presentation - Recently adopted accounting pronouncements (Details) - USD ($) $ in Thousands | Oct. 01, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
New accounting pronouncements | |||
Increase in cash provided by operating activities | $ 358,421 | $ 240,255 | |
Decrease in net cash used in financing activities | (231,186) | (224,451) | |
ASU 2016-09 | |||
New accounting pronouncements | |||
Increase in cash provided by operating activities | 4,100 | ||
Decrease in net cash used in financing activities | $ 4,100 | ||
Cumulative effect adjustment | $ 300 | $ 317 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | Dec. 08, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 |
Business Combinations | ||||||
Payment to acquire business, net | $ 47,886 | $ 70,416 | ||||
Operating revenue | $ 648,872 | $ 498,564 | 1,790,443 | 1,272,437 | ||
Net loss | 8,008 | $ 21,799 | (480,219) | 105,680 | ||
Fair value of assets acquired | ||||||
Goodwill | 69,496 | $ 69,496 | $ 51,705 | |||
Minimum | Restricted stock | ||||||
Business Combinations | ||||||
Vesting period | 3 years | |||||
Maximum | Restricted stock | ||||||
Business Combinations | ||||||
Vesting period | 6 years | |||||
MagVAR Acquisition | ||||||
Business Combinations | ||||||
Payment to acquire business, net | $ 47,900 | |||||
Period escrow to be released to seller | 12 months | |||||
Operating revenue | $ 7,500 | |||||
Net loss | 2,000 | |||||
Purchase Price | ||||||
Cash consideration | $ 48,485 | |||||
Fair value of assets acquired | ||||||
Current assets | 2,286 | |||||
Property, plant and equipment | 13 | |||||
Intangible assets, net of amortization | 28,700 | |||||
Goodwill | 17,791 | |||||
Total assets acquired | 48,790 | |||||
Fair value of liabilities assumed | ||||||
Current liabilities | 305 | |||||
Fair value of total assets acquired and liabilities assumed | 48,485 | |||||
Pro forma financial information: | ||||||
After-tax transaction costs excluded from pro forma earnings | 500 | |||||
Revenues | 1,794,131 | 1,279,424 | ||||
Net income (loss) | 480,411 | $ (104,519) | ||||
MagVAR Acquisition | Prepaid expenses and other | ||||||
Business Combinations | ||||||
Restricted cash | $ 6,000 | |||||
MagVAR Acquisition | Restricted stock | ||||||
Business Combinations | ||||||
Restricted stock awards issued | 213,904 | |||||
Vesting period | 3 years | |||||
MagVAR Acquisition | General and Administrative | ||||||
Business Combinations | ||||||
Business acquisition transaction cost | $ 1,200 | $ 1,200 | ||||
MagVAR Acquisition | Minimum | ||||||
Business Combinations | ||||||
Estimated useful lives (in years) | 5 years | |||||
MagVAR Acquisition | Maximum | ||||||
Business Combinations | ||||||
Estimated useful lives (in years) | 20 years |
Discontinued Operations (Detail
Discontinued Operations (Details) - / $ | Jun. 30, 2018 | Mar. 31, 2018 |
Discontinued Operations | ||
Foreign exchange rate ( Bolivars per United States dollars) | 10 | |
DICOM floating rate (Bolivars per United States dollars) | 115,000 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
(Loss) income from continuing operations | $ (8,174) | $ (23,125) | $ 490,835 | $ (106,152) |
Income (loss) from discontinued operations | 166 | 1,326 | (10,616) | 472 |
NET (LOSS) INCOME | (8,008) | (21,799) | 480,219 | (105,680) |
Adjustment for basic earnings per share: | ||||
Earnings allocated to unvested shareholders | (717) | (458) | (4,241) | (1,349) |
Numerator for basic earnings per share: | ||||
From continuing operations | (8,891) | (23,583) | 486,594 | (107,501) |
From discontinued operations | 166 | 1,326 | (10,616) | 472 |
Net income (loss) attributable to parent, basic | (8,725) | (22,257) | 475,978 | (107,029) |
Adjustment for diluted earnings per share: | ||||
Effect of reallocating undistributed earnings of unvested shareholders | 10 | |||
Numerator for diluted earnings per share: | ||||
From continuing operations | (8,891) | (23,583) | 486,604 | (107,501) |
From discontinued operations | 166 | 1,326 | (10,616) | 472 |
Net income (loss) attributable to parent, diluted | $ (8,725) | $ (22,257) | $ 475,988 | $ (107,029) |
Denominator: | ||||
Denominator for basic earnings per share – weighted-average shares | 108,905 | 108,572 | 108,818 | 108,470 |
Effect of dilutive shares from stock options and restricted stock (in shares) | 520 | |||
Denominator for diluted earnings per share – adjusted weighted-average shares | 108,905 | 108,572 | 109,338 | 108,470 |
Basic earnings per common share: | ||||
(Loss) income from continuing operations (in dollars per share) | $ (0.08) | $ (0.22) | $ 4.47 | $ (0.99) |
Income (loss) from discontinued operations (in dollars per share) | 0.01 | (0.10) | ||
Net (loss) income (in dollars per share) | (0.08) | (0.21) | 4.37 | (0.99) |
Diluted earnings per common share: | ||||
(Loss) income from continuing operations (in dollars per share) | (0.08) | (0.22) | 4.45 | (0.99) |
Income (loss) from discontinued operations (in dollars per share) | 0.01 | (0.10) | ||
Net (loss) income (in dollars per share) | $ (0.08) | $ (0.21) | $ 4.35 | $ (0.99) |
Outstanding equity awards | ||||
Shares excluded from calculation of diluted earnings per share (in shares) | 929 | 1,332 | 1,585 | 1,034 |
Weighted-average price per share (in dollars per share) | $ 75.56 | $ 70.82 | $ 68.51 | $ 73.84 |
Financial Instruments and Fai48
Financial Instruments and Fair Value Measurement - Equity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
(Level 1) | ||
Non-qualified Supplemental Savings Plan | ||
Assets held in Non-qualified Supplement Savings Plan, at fair value | $ 15,000 | $ 13,900 |
Equity securities | ||
Available-for-sale securities | ||
Cost | 38,473 | 38,473 |
Gross Unrealized Gains | 39,327 | 31,700 |
Equity securities | (Level 1) | ||
Available-for-sale securities | ||
Estimated Fair Value | $ 77,800 | $ 70,173 |
Financial Instruments and Fai49
Financial Instruments and Fair Value Measurement - Assets measured at fair value and Supplemental fair value information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | Mar. 19, 2015 | |
Supplemental fair value information about long-term fixed-rate debt | ||||||
Long-term debt | $ 493,700 | $ 493,700 | $ 492,902 | |||
Unsecured senior notes issued March 19, 2015 | ||||||
Supplemental fair value information about long-term fixed-rate debt | ||||||
Debt issued | 500,000 | 500,000 | $ 500,000 | |||
Recurring basis | ||||||
Short-term investments: | ||||||
Short-term investments | 44,279 | 44,279 | ||||
Assets: | ||||||
Cash and cash equivalents | 306,426 | 306,426 | ||||
Investments | 77,800 | 77,800 | ||||
Other current assets | 34,614 | 34,614 | ||||
Other assets | 6,902 | 6,902 | ||||
Total assets measured at fair value | 470,021 | 470,021 | ||||
Liabilities: | ||||||
Contingent earnout liability | 9,402 | 9,402 | ||||
Carrying value | ||||||
Supplemental fair value information about long-term fixed-rate debt | ||||||
Long-term debt | 493,700 | 493,700 | 492,900 | |||
(Level 1) | Recurring basis | ||||||
Short-term investments: | ||||||
Short-term investments | 28,985 | 28,985 | ||||
Assets: | ||||||
Cash and cash equivalents | 306,426 | 306,426 | ||||
Investments | 77,800 | 77,800 | ||||
Other current assets | 34,614 | 34,614 | ||||
Other assets | 6,902 | 6,902 | ||||
Total assets measured at fair value | 454,727 | 454,727 | ||||
(Level 2) | ||||||
Supplemental fair value information about long-term fixed-rate debt | ||||||
Fair value of long-term fixed-rate debt | 516,500 | 516,500 | $ 529,000 | |||
(Level 2) | Recurring basis | ||||||
Short-term investments: | ||||||
Short-term investments | 15,294 | 15,294 | ||||
Assets: | ||||||
Total assets measured at fair value | 15,294 | 15,294 | ||||
(Level 3) | ||||||
Reconciliation of changes in the fair value of our financial assets and liabilities | ||||||
Net liabilities at beginning of period | 15,702 | 14,879 | ||||
Included in earnings | (175) | $ 14,509 | 5,148 | $ 14,509 | ||
Settlements | (6,125) | (10,625) | ||||
Net liabilities at end of period | 9,402 | $ 14,509 | 9,402 | $ 14,509 | ||
(Level 3) | Recurring basis | ||||||
Liabilities: | ||||||
Contingent earnout liability | 9,402 | 9,402 | ||||
Certificates of deposit | Recurring basis | ||||||
Short-term investments: | ||||||
Short-term investments | 1,500 | 1,500 | ||||
Certificates of deposit | (Level 2) | Recurring basis | ||||||
Short-term investments: | ||||||
Short-term investments | 1,500 | 1,500 | ||||
Corporate and municipal debt securities | Recurring basis | ||||||
Short-term investments: | ||||||
Short-term investments | 13,794 | 13,794 | ||||
Corporate and municipal debt securities | (Level 2) | Recurring basis | ||||||
Short-term investments: | ||||||
Short-term investments | 13,794 | 13,794 | ||||
U.S. government and federal agency securities | Recurring basis | ||||||
Short-term investments: | ||||||
Short-term investments | 28,985 | 28,985 | ||||
U.S. government and federal agency securities | (Level 1) | Recurring basis | ||||||
Short-term investments: | ||||||
Short-term investments | $ 28,985 | $ 28,985 |
Shareholders' Equity - AOCI Com
Shareholders' Equity - AOCI Components (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | |
Repurchase of shares | |||
Repurchase of common stock (in shares) | 0 | 0 | |
After-tax amounts: | |||
Accumulated other comprehensive income | $ 8,942 | $ 2,300 | |
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 | $ 39,327 | 31,700 | |
After-tax amounts: | |||
Accumulated other comprehensive income | 25,727 | 20,070 | |
Defined benefit pension plan | |||
Pre-tax amounts: | |||
Accumulated other comprehensive income (loss) before tax | (27,491) | (28,873) | |
After-tax amounts: | |||
Accumulated other comprehensive income | (16,785) | (17,770) | |
Accumulated Other Comprehensive Loss | |||
Pre-tax amounts: | |||
Accumulated other comprehensive income (loss) before tax | 11,836 | 2,827 | |
After-tax amounts: | |||
Accumulated other comprehensive income | $ 8,942 | $ 2,300 |
Shareholders' Equity - AOCI Cha
Shareholders' Equity - AOCI Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Balance at beginning of period | $ 4,164,591 | |
Balance at end of period | $ 4,442,491 | 4,442,491 |
Unrealized appreciation (depreciation) on securities | ||
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Balance at beginning of period | 11,901 | 20,070 |
Other comprehensive income before reclassifications | 13,826 | 5,657 |
Net current-period other comprehensive income | 13,826 | 5,657 |
Balance at end of period | 25,727 | 25,727 |
Defined benefit pension plan | ||
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Balance at beginning of period | (17,122) | (17,770) |
Amounts reclassified from accumulated other comprehensive income | 337 | 985 |
Net current-period other comprehensive income | 337 | 985 |
Balance at end of period | (16,785) | (16,785) |
Accumulated Other Comprehensive Loss | ||
Rollforward of accumulated other comprehensive income (loss), net of tax | ||
Balance at beginning of period | (5,221) | 2,300 |
Other comprehensive income before reclassifications | 13,826 | 5,657 |
Amounts reclassified from accumulated other comprehensive income | 337 | 985 |
Net current-period other comprehensive income | 14,163 | 6,642 |
Balance at end of period | $ 8,942 | $ 8,942 |
Shareholders' Equity - AOCI Rec
Shareholders' Equity - AOCI Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Loss | ||||
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Operations | ||||
Total reclassifications for the period | $ (337) | $ (365) | $ (985) | $ (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, tax | 124 | 209 | 397 | 627 |
Amortization of net actuarial loss on defined benefit pension plan | General and Administrative | ||||
Accumulated other comprehensive income (loss) components which were reclassified to the Consolidated Statement of Operations | ||||
Reclassifications for the period, before tax | $ (461) | $ (574) | $ (1,382) | $ (1,724) |
Cash Dividends (Details)
Cash Dividends (Details) - $ / shares | Jun. 06, 2018 | Jun. 01, 2018 | Mar. 07, 2018 | Mar. 01, 2018 | Dec. 05, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Cash Dividends | |||||||||
Cash dividends declared, per share (in dollars per share) | $ 0.71 | $ 0.70 | $ 0.70 | $ 0.71 | $ 0.70 | $ 2.11 | $ 2.10 | ||
Cash dividend paid, per share (in dollars per share) | $ 0.70 | $ 0.70 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock based awards | ||||
Compensation expense (in dollars) | $ 7,926 | $ 6,768 | $ 23,472 | $ 19,247 |
Stock options | ||||
Stock based awards | ||||
The period from the grant date after which options expire | 10 years | |||
Number of shares granted | 24,000 | 691,000 | ||
Compensation expense (in dollars) | $ 1,815 | 1,934 | $ 5,887 | 5,455 |
Restricted stock | ||||
Stock based awards | ||||
Number of shares granted | 625,000 | |||
Compensation expense (in dollars) | $ 6,111 | $ 4,834 | $ 17,585 | $ 13,792 |
2016 Plan | Stock options | ||||
Stock based awards | ||||
Number of shares granted | 690,947 | |||
2016 Plan | Restricted stock | ||||
Stock based awards | ||||
Number of shares granted | 411,271 | |||
2010 Plan | Restricted stock | ||||
Stock based awards | ||||
Number of shares granted | 213,904 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock options (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Weighted-average assumptions utilized in determining the fair value of options | |||
Risk-free interest rate (as a percent) | 2.20% | 2.00% | |
Expected stock volatility (as a percent) | 36.10% | 38.90% | |
Dividend yield (as a percent) | 4.70% | 3.70% | |
Expected term (in years) | 6 years | 5 years 6 months | |
Options | |||
Options outstanding at the beginning of the period (in shares) | 3,721 | 3,278 | |
Granted (in shares) | 24 | 691 | |
Exercised (in shares) | (66) | (290) | |
Forfeited/Expired (in shares) | (59) | ||
Option outstanding at the end of the period (in shares) | 3,620 | 3,620 | |
Vested and expected to vest at the end of the period (in shares) | 3,620 | 3,620 | |
Exercisable at the end of the period (in shares) | 2,308 | 2,308 | |
Weighted-Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 58.15 | $ 56.41 | |
Granted (in dollars per share) | 68.90 | 59.01 | |
Exercised (in dollars per share) | 56.02 | 39.20 | |
Forfeited/Expired (in dollars per share) | 68.70 | ||
Outstanding at the end of the period (in dollars per share) | 58.08 | 58.08 | |
Vested and expected to vest at the end of the period (in dollars per share) | 58.08 | 58.08 | |
Exercisable at the end of the period (in dollars per share) | $ 55.61 | $ 55.61 | |
Weighted- Average Remaining Contractual Term | |||
Outstanding at the end of the period | 5 years 11 months 16 days | ||
Vested and expected to vest at the end of the period | 5 years 11 months 16 days | ||
Weighted-average remaining life of exercisable stock options | 4 years 5 months 9 days | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period (in dollars) | $ 31.5 | $ 31.5 | |
Options vested or expected to vest, aggregate intrinsic value (in dollars) | 31.5 | 31.5 | |
Exercisable at the end of the period (in dollars) | $ 25.8 | $ 25.8 |
Stock-Based Compensation, Other
Stock-Based Compensation, Other (Details) - Stock options - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Stock based awards | ||||
Weighted-average fair value of options granted (in dollars per share) | $ 17.82 | $ 17.78 | $ 12.94 | |
Total intrinsic value of options exercised (in dollars) | $ 1 | $ 6.6 | ||
Unrecognized compensation cost (in dollars) | $ 9.3 | $ 9.3 | ||
Period over which unrecognized compensation cost is expected to be recognized | 2 years 3 months 18 days |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock (Details) - Restricted stock $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Stock based award plan | |
Unrecognized compensation cost (in dollars) | $ | $ 41 |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 6 months |
Restricted stock awards activity, shares | |
Unvested at the beginning of the period (in shares) | shares | 659 |
Granted (in shares) | shares | 625 |
Vested (in shares) | shares | (258) |
Forfeited (in shares) | shares | (19) |
Unvested at the end of the period (in shares) | shares | 1,007 |
Restricted stock awards activity, weighted average grant date fair value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 70.76 |
Granted (in dollars per share) | $ / shares | 59.52 |
Vested (in dollars per share) | $ / shares | 71.16 |
Forfeited (in dollars per share) | $ / shares | 68.98 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 63.72 |
Minimum | |
Stock based award plan | |
Vesting period | 3 years |
Maximum | |
Stock based award plan | |
Vesting period | 6 years |
Debt (Details)
Debt (Details) $ in Thousands | Mar. 19, 2015USD ($) | Jun. 30, 2018USD ($)letteritem | Sep. 30, 2017USD ($) |
Debt | |||
Unsecured long-term debt | $ 500,000 | $ 500,000 | |
Long-term debt | 500,000 | 500,000 | |
Unamortized discount and debt issuance costs | (6,300) | (7,098) | |
Unamortized discount and debt issuance costs, noncurrent | (6,300) | (7,098) | |
Unsecured senior notes issued March 19, 2015 | |||
Debt | |||
Unsecured long-term debt | 500,000 | 500,000 | |
Unamortized discount and debt issuance costs | (6,300) | $ (7,098) | |
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 | $ 260,700 | ||
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 | $ 39,300 | ||
Unsecured revolving credit facility mature on July 13, 2021 | Issued to support self-insured losses under high deductible casualty insurance programs | |||
Debt | |||
Number of letters of credit outstanding | letter | 2 | ||
Letters of credit outstanding/issued | $ 29,300 | ||
Unsecured revolving credit facility mature on July 13, 2021 | Letter of credit supporting an operating line of credit with a bank in Argentina | |||
Debt | |||
Letters of credit outstanding/issued | 10,000 | ||
Unsecured standalone line of credit facility | |||
Debt | |||
Maximum borrowing capacity | $ 12,000 | ||
Number of bonds issued | item | 1 | ||
Value of debt instrument | $ 2,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Income Taxes | |||||||
Income tax provision (benefit) | $ 10,535 | $ (10,478) | $ (494,028) | $ (50,537) | |||
Effective income tax rate (as a percent) | 446.20% | 31.20% | 15472.20% | 32.30% | |||
U.S. federal statutory rate (as a percent) | 35.00% | ||||||
Income tax benefit related to new tax act | $ (700) | $ 10,400 | $ (491,400) | ||||
Forecast | |||||||
Income Taxes | |||||||
U.S. federal statutory rate (as a percent) | 24.50% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2018USD ($) |
Commitments and Contingencies | |
Purchase orders outstanding for equipment, parts and supplies | $ 97.5 |
Contingencies | |
Gain contingencies recognized in consolidated financial statements | $ 0 |
Segment Information - Income by
Segment Information - Income by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment information | ||||
Total Sales | $ 648,872 | $ 498,564 | $ 1,790,443 | $ 1,272,437 |
Segment Operating Income (Loss) | 35,225 | 834 | 89,726 | (82,543) |
Other | ||||
Segment information | ||||
Total Sales | 11,324 | 4,262 | 26,504 | 10,697 |
Segment Operating Income (Loss) | (7,226) | (2,569) | (21,558) | (5,752) |
Operating segment | ||||
Segment information | ||||
Total Sales | 649,774 | 498,786 | 1,791,852 | 1,273,075 |
Operating segment | Other | ||||
Segment information | ||||
Total Sales | 11,627 | 4,484 | 27,279 | 11,335 |
Inter-Segment | ||||
Segment information | ||||
Total Sales | (902) | (222) | (1,409) | (638) |
Inter-Segment | Other | ||||
Segment information | ||||
Total Sales | 303 | 222 | 775 | 638 |
Contract Drilling: | ||||
Segment information | ||||
Total Sales | 637,548 | 494,302 | 1,763,939 | 1,261,740 |
Segment Operating Income (Loss) | 42,451 | 3,403 | 111,284 | (76,791) |
Contract Drilling: | U.S. Land | ||||
Segment information | ||||
Total Sales | 536,582 | 405,516 | 1,480,951 | 1,000,119 |
Segment Operating Income (Loss) | 34,339 | (7,980) | 86,159 | (90,718) |
Contract Drilling: | Offshore | ||||
Segment information | ||||
Total Sales | 37,669 | 33,711 | 104,018 | 103,758 |
Segment Operating Income (Loss) | 3,780 | 6,456 | 17,954 | 19,152 |
Contract Drilling: | International Land | ||||
Segment information | ||||
Total Sales | 63,297 | 55,075 | 178,970 | 157,863 |
Segment Operating Income (Loss) | 4,332 | 4,927 | 7,171 | (5,225) |
Contract Drilling: | Operating segment | ||||
Segment information | ||||
Total Sales | 638,147 | 494,302 | 1,764,573 | 1,261,740 |
Contract Drilling: | Operating segment | U.S. Land | ||||
Segment information | ||||
Total Sales | 537,181 | 405,516 | 1,481,585 | 1,000,119 |
Contract Drilling: | Operating segment | Offshore | ||||
Segment information | ||||
Total Sales | 37,669 | 33,711 | 104,018 | 103,758 |
Contract Drilling: | Operating segment | International Land | ||||
Segment information | ||||
Total Sales | 63,297 | $ 55,075 | 178,970 | $ 157,863 |
Contract Drilling: | Inter-Segment | ||||
Segment information | ||||
Total Sales | 599 | 634 | ||
Contract Drilling: | Inter-Segment | U.S. Land | ||||
Segment information | ||||
Total Sales | $ 599 | $ 634 |
Segment Information - Reconcili
Segment Information - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of segment operating income to income from continuing operations before income taxes | ||||
Segment operating income (loss) | $ 35,225 | $ 834 | $ 89,726 | $ (82,543) |
Income from asset sales | 4,313 | 1,862 | 15,133 | 17,593 |
Corporate general and administrative costs and corporate depreciation | (33,321) | (30,724) | (96,375) | (77,914) |
Operating income (loss) from continuing operations | 6,217 | (28,028) | 8,484 | (142,864) |
Other income (expense) | ||||
Interest and dividend income | 2,109 | 1,700 | 5,680 | 4,028 |
Interest expense | (5,993) | (6,364) | (17,794) | (17,503) |
Other | 28 | (911) | 437 | (350) |
Total other income (expense) | (3,856) | (5,575) | (11,677) | (13,825) |
Income (loss) from continuing operations before income taxes | $ 2,361 | $ (33,603) | $ (3,193) | $ (156,689) |
Segment Information - Total ass
Segment Information - Total assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Segment information | ||
Assets | $ 6,265,872 | $ 6,439,988 |
Operating segment | ||
Segment information | ||
Assets | 5,647,365 | 5,613,084 |
Investments and corporate operations | ||
Segment information | ||
Assets | 618,507 | 826,901 |
U.S. Land | Operating segment | ||
Segment information | ||
Assets | 4,977,734 | 4,967,074 |
Offshore | Operating segment | ||
Segment information | ||
Assets | 98,473 | 99,533 |
International Land | Operating segment | ||
Segment information | ||
Assets | 388,427 | 413,392 |
Other | Operating segment | ||
Segment information | ||
Assets | 182,731 | 133,085 |
Continuing operations | ||
Segment information | ||
Assets | $ 6,265,872 | 6,439,985 |
Discontinued operations. | ||
Segment information | ||
Assets | $ 3 |
Segment Information - Revenue f
Segment Information - Revenue from external customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment information | ||||
Operating revenues | $ 648,872 | $ 498,564 | $ 1,790,443 | $ 1,272,437 |
United States | ||||
Segment information | ||||
Operating revenues | 585,126 | 443,489 | 1,610,319 | 1,114,574 |
Argentina | ||||
Segment information | ||||
Operating revenues | 50,272 | 43,167 | 148,901 | 114,516 |
Colombia | ||||
Segment information | ||||
Operating revenues | 10,639 | 9,356 | 22,872 | 27,579 |
Other Foreign | ||||
Segment information | ||||
Operating revenues | $ 2,835 | $ 2,552 | $ 8,351 | $ 15,768 |
Pensions and Other Post-retir65
Pensions and Other Post-retirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Components of Net Periodic Benefit Cost | ||||
Interest cost | $ 1,013 | $ 975 | $ 3,041 | $ 2,925 |
Expected return on plan assets | (1,386) | (1,298) | (4,158) | (3,896) |
Recognized net actuarial loss | 461 | 574 | 1,382 | 1,724 |
Settlement | 1,411 | 1,411 | ||
Net pension expense | $ 88 | $ 1,662 | $ 265 | $ 2,164 |
Supplemental Cash Flow Inform66
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of total capital expenditures incurred to total capital expenditures in the consolidated statements of cash flows | ||
Capital expenditures incurred | $ 321,588 | $ 315,735 |
Additions incurred in prior year but paid for in current period | 20,004 | 9,465 |
Additions incurred but not paid for as of the end of the period | (18,934) | (24,925) |
Capital expenditures per the Condensed Consolidated Statements of Cash Flows | $ 322,658 | $ 300,275 |
International Risk Factors (Det
International Risk Factors (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)item | Jun. 30, 2017USD ($) | Jun. 30, 2010item | |
International Risk Factors | |||||
Foreign currency gains (losses) | $ | $ (1.1) | $ (1.3) | $ (2.5) | $ (3.3) | |
Venezuela | |||||
International Risk Factors | |||||
Number of rigs expropriated by Venezuelan government | 11 | ||||
Operating revenues | Geographic concentration risk | South America | |||||
International Risk Factors | |||||
Concentration percentage | 96.00% | ||||
Minimum | |||||
International Risk Factors | |||||
Number of geographical areas of operation to minimize risks | 1 | ||||
Contract Drilling: | Operating revenues | Geographic concentration risk | International locations | |||||
International Risk Factors | |||||
Concentration percentage | 10.00% |
Guarantor and Non-Guarantor F68
Guarantor and Non-Guarantor Financial Information - Debt (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Mar. 31, 2015 | Jun. 30, 2018 | 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 F69
Guarantor and Non-Guarantor Financial Information - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating revenue | $ 648,872 | $ 498,564 | $ 1,790,443 | $ 1,272,437 |
Operating costs and other | 642,655 | 526,592 | 1,781,959 | 1,415,301 |
Operating income (loss) from continuing operations | 6,217 | (28,028) | 8,484 | (142,864) |
Other (expense) income, net | 2,137 | 789 | 6,117 | 3,678 |
Interest expense | (5,993) | (6,364) | (17,794) | (17,503) |
Income (loss) from continuing operations before income taxes | 2,361 | (33,603) | (3,193) | (156,689) |
Income tax provision (benefit) | 10,535 | (10,478) | (494,028) | (50,537) |
(Loss) income from continuing operations | (8,174) | (23,125) | 490,835 | (106,152) |
Income from discontinued operations before income taxes | 8,383 | 3,223 | 9,127 | 2,705 |
Income tax provision | 8,217 | 1,897 | 19,743 | 2,233 |
Income (loss) from discontinued operations | 166 | 1,326 | (10,616) | 472 |
Net income (loss) | (8,008) | (21,799) | 480,219 | (105,680) |
Eliminations | ||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating revenue | (27) | (18) | (64) | (51) |
Operating costs and other | (218) | (216) | (669) | (677) |
Operating income (loss) from continuing operations | 191 | 198 | 605 | 626 |
Other (expense) income, net | (191) | (198) | (605) | (626) |
Equity in net income (loss) of subsidiaries | 6,976 | 19,595 | (497,765) | 110,053 |
Income (loss) from continuing operations before income taxes | 6,976 | 19,595 | (497,765) | 110,053 |
(Loss) income from continuing operations | 6,976 | 19,595 | (497,765) | 110,053 |
Net income (loss) | 6,976 | 19,595 | (497,765) | 110,053 |
Guarantor/Parent | Reportable Legal Entities | ||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating costs and other | 4,240 | 3,364 | 12,627 | 10,124 |
Operating income (loss) from continuing operations | (4,240) | (3,364) | (12,627) | (10,124) |
Other (expense) income, net | 196 | (4) | 477 | (3) |
Interest expense | (108) | (87) | (274) | (260) |
Equity in net income (loss) of subsidiaries | (4,883) | (19,510) | 494,574 | (99,179) |
Income (loss) from continuing operations before income taxes | (9,035) | (22,965) | 482,150 | (109,566) |
Income tax provision (benefit) | (1,027) | (1,166) | 1,931 | (3,886) |
(Loss) income from continuing operations | (8,008) | (21,799) | 480,219 | (105,680) |
Net income (loss) | (8,008) | (21,799) | 480,219 | (105,680) |
Issuer Subsidiary | Reportable Legal Entities | ||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating revenue | 574,252 | 439,227 | 1,584,970 | 1,103,877 |
Operating costs and other | 557,994 | 463,220 | 1,542,815 | 1,218,266 |
Operating income (loss) from continuing operations | 16,258 | (23,993) | 42,155 | (114,389) |
Other (expense) income, net | 1,854 | 2,052 | 5,226 | 4,885 |
Interest expense | (5,117) | (5,294) | (15,368) | (15,151) |
Equity in net income (loss) of subsidiaries | (2,093) | (85) | 3,191 | (10,874) |
Income (loss) from continuing operations before income taxes | 10,902 | (27,320) | 35,204 | (135,529) |
Income tax provision (benefit) | 17,384 | (7,360) | (459,571) | (37,320) |
(Loss) income from continuing operations | (6,482) | (19,960) | 494,775 | (98,209) |
Net income (loss) | (6,482) | (19,960) | 494,775 | (98,209) |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating revenue | 74,647 | 59,355 | 205,537 | 168,611 |
Operating costs and other | 80,639 | 60,224 | 227,186 | 187,588 |
Operating income (loss) from continuing operations | (5,992) | (869) | (21,649) | (18,977) |
Other (expense) income, net | 278 | (1,061) | 1,019 | (578) |
Interest expense | (768) | (983) | (2,152) | (2,092) |
Income (loss) from continuing operations before income taxes | (6,482) | (2,913) | (22,782) | (21,647) |
Income tax provision (benefit) | (5,822) | (1,952) | (36,388) | (9,331) |
(Loss) income from continuing operations | (660) | (961) | 13,606 | (12,316) |
Income from discontinued operations before income taxes | 8,383 | 3,223 | 9,127 | 2,705 |
Income tax provision | 8,217 | 1,897 | 19,743 | 2,233 |
Income (loss) from discontinued operations | 166 | 1,326 | (10,616) | 472 |
Net income (loss) | $ (494) | $ 365 | $ 2,990 | $ (11,844) |
Guarantor and Non-Guarantor F70
Guarantor and Non-Guarantor Financial Information - Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net (loss) income | $ (8,008) | $ (21,799) | $ 480,219 | $ (105,680) |
Other comprehensive income (loss), net of income taxes: | ||||
Unrealized appreciation (depreciation) on securities, net | 13,826 | (6,899) | 5,657 | (4,994) |
Minimum pension liability adjustments, net | 337 | 365 | 985 | 1,097 |
Other comprehensive income (loss) | 14,163 | (6,534) | 6,642 | (3,897) |
Comprehensive income (loss) | 6,155 | (28,333) | 486,861 | (109,577) |
Reportable Legal Entities | Guarantor/Parent | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net (loss) income | (8,008) | (21,799) | 480,219 | (105,680) |
Other comprehensive income (loss), net of income taxes: | ||||
Minimum pension liability adjustments, net | 101 | 104 | 295 | 316 |
Other comprehensive income (loss) | 101 | 104 | 295 | 316 |
Comprehensive income (loss) | (7,907) | (21,695) | 480,514 | (105,364) |
Reportable Legal Entities | Issuer Subsidiary | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net (loss) income | (6,482) | (19,960) | 494,775 | (98,209) |
Other comprehensive income (loss), net of income taxes: | ||||
Unrealized appreciation (depreciation) on securities, net | 13,826 | (6,899) | 5,657 | (4,994) |
Minimum pension liability adjustments, net | 236 | 261 | 690 | 781 |
Other comprehensive income (loss) | 14,062 | (6,638) | 6,347 | (4,213) |
Comprehensive income (loss) | 7,580 | (26,598) | 501,122 | (102,422) |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net (loss) income | (494) | 365 | 2,990 | (11,844) |
Other comprehensive income (loss), net of income taxes: | ||||
Comprehensive income (loss) | (494) | 365 | 2,990 | (11,844) |
Eliminations | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net (loss) income | 6,976 | 19,595 | (497,765) | 110,053 |
Other comprehensive income (loss), net of income taxes: | ||||
Comprehensive income (loss) | $ 6,976 | $ 19,595 | $ (497,765) | $ 110,053 |
Guarantor and Non-Guarantor F71
Guarantor and Non-Guarantor Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 306,426 | $ 521,375 | $ 572,787 | $ 905,561 |
Short-term investments | 44,279 | 44,491 | ||
Accounts receivable, net of allowance | 565,321 | 477,074 | ||
Inventories | 152,109 | 137,204 | ||
Prepaid expenses and other | 65,343 | 55,120 | ||
Current assets - discontinued operations | 3 | |||
Total current assets | 1,133,478 | 1,235,267 | ||
Investments | 92,702 | 84,026 | ||
Property, plant and equipment, net | 4,883,378 | 5,001,051 | ||
Goodwill | 69,496 | 51,705 | ||
Intangible assets, net | 75,564 | 50,785 | ||
Other assets | 11,254 | 17,154 | ||
TOTAL ASSETS | 6,265,872 | 6,439,988 | ||
CURRENT LIABILITIES: | ||||
Accounts payable | 143,732 | 135,628 | ||
Accrued liabilities | 237,935 | 208,683 | ||
Current liabilities - discontinued operations | 1 | 74 | ||
Total current liabilities | 381,668 | 344,385 | ||
NONCURRENT LIABILITIES: | ||||
Long-term debt | 493,700 | 492,902 | ||
Deferred income taxes | 833,738 | 1,332,689 | ||
Other | 99,727 | 101,409 | ||
Noncurrent liabilities - discontinued operations | 14,548 | 4,012 | ||
Total noncurrent liabilities | 1,441,713 | 1,931,012 | ||
SHAREHOLDERS' EQUITY: | ||||
Common stock | 11,201 | 11,196 | ||
Additional paid-in capital | 494,604 | 487,248 | ||
Retained earnings | 4,103,418 | 3,855,686 | ||
Accumulated other comprehensive income | 8,942 | 2,300 | ||
Treasury stock, at cost | (175,674) | (191,839) | ||
Total shareholders' equity | 4,442,491 | 4,164,591 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 6,265,872 | 6,439,988 | ||
Eliminations | ||||
Current assets: | ||||
Accounts receivable, net of allowance | (116) | (5) | ||
Prepaid expenses and other | (818) | (442) | ||
Total current assets | (934) | (447) | ||
Intercompany | (2,480,143) | (2,086,087) | ||
Investment in subsidiaries | (6,157,695) | (5,653,432) | ||
TOTAL ASSETS | (8,638,772) | (7,739,966) | ||
CURRENT LIABILITIES: | ||||
Accounts payable | (109) | |||
Accrued liabilities | (826) | (447) | ||
Total current liabilities | (935) | (447) | ||
NONCURRENT LIABILITIES: | ||||
Intercompany | (2,480,043) | (2,085,987) | ||
Total noncurrent liabilities | (2,480,043) | (2,085,987) | ||
SHAREHOLDERS' EQUITY: | ||||
Common stock | (100) | (100) | ||
Additional paid-in capital | (53,476) | (53,476) | ||
Retained earnings | (6,091,134) | (5,593,218) | ||
Accumulated other comprehensive income | (13,084) | (6,738) | ||
Total shareholders' equity | (6,157,794) | (5,653,532) | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | (8,638,772) | (7,739,966) | ||
Guarantor/Parent | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | (1,027) | (587) | (1,141) | (955) |
Accounts receivable, net of allowance | (164) | 766 | ||
Prepaid expenses and other | 15,707 | 12,200 | ||
Total current assets | 14,516 | 12,379 | ||
Investments | 14,902 | 13,853 | ||
Property, plant and equipment, net | 48,273 | 49,851 | ||
Intercompany | 150,255 | 90,885 | ||
Other assets | 5,162 | 4,955 | ||
Investment in subsidiaries | 5,970,971 | 5,470,050 | ||
TOTAL ASSETS | 6,204,079 | 5,641,973 | ||
CURRENT LIABILITIES: | ||||
Accounts payable | 82,019 | 82,360 | ||
Accrued liabilities | 33,009 | 26,698 | ||
Total current liabilities | 115,028 | 109,058 | ||
NONCURRENT LIABILITIES: | ||||
Deferred income taxes | (7,230) | (11,201) | ||
Intercompany | 1,627,211 | 1,354,068 | ||
Other | 26,579 | 25,457 | ||
Total noncurrent liabilities | 1,646,560 | 1,368,324 | ||
SHAREHOLDERS' EQUITY: | ||||
Common stock | 11,201 | 11,196 | ||
Additional paid-in capital | 494,604 | 487,248 | ||
Retained earnings | 4,103,418 | 3,855,686 | ||
Accumulated other comprehensive income | 8,942 | 2,300 | ||
Treasury stock, at cost | (175,674) | (191,839) | ||
Total shareholders' equity | 4,442,491 | 4,164,591 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 6,204,079 | 5,641,973 | ||
Issuer Subsidiary | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 292,439 | 508,091 | 559,945 | 899,028 |
Short-term investments | 44,279 | 44,491 | ||
Accounts receivable, net of allowance | 482,746 | 411,599 | ||
Inventories | 119,043 | 102,470 | ||
Prepaid expenses and other | 13,353 | 6,383 | ||
Total current assets | 951,860 | 1,073,034 | ||
Investments | 77,800 | 70,173 | ||
Property, plant and equipment, net | 4,520,974 | 4,609,144 | ||
Intercompany | 2,079,427 | 1,746,662 | ||
Other assets | 921 | 3,839 | ||
Investment in subsidiaries | 186,724 | 183,382 | ||
TOTAL ASSETS | 7,817,706 | 7,686,234 | ||
CURRENT LIABILITIES: | ||||
Accounts payable | 55,242 | 48,679 | ||
Accrued liabilities | 163,373 | 148,491 | ||
Total current liabilities | 218,615 | 197,170 | ||
NONCURRENT LIABILITIES: | ||||
Long-term debt | 493,700 | 492,902 | ||
Deferred income taxes | 820,472 | 1,286,381 | ||
Intercompany | 277,742 | 210,823 | ||
Other | 50,569 | 43,471 | ||
Total noncurrent liabilities | 1,642,483 | 2,033,577 | ||
SHAREHOLDERS' EQUITY: | ||||
Common stock | 100 | 100 | ||
Additional paid-in capital | 52,436 | 52,437 | ||
Retained earnings | 5,890,988 | 5,396,212 | ||
Accumulated other comprehensive income | 13,084 | 6,738 | ||
Total shareholders' equity | 5,956,608 | 5,455,487 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 7,817,706 | 7,686,234 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 15,014 | 13,871 | $ 13,983 | $ 7,488 |
Accounts receivable, net of allowance | 82,855 | 64,714 | ||
Inventories | 33,066 | 34,734 | ||
Prepaid expenses and other | 37,101 | 36,979 | ||
Current assets - discontinued operations | 3 | |||
Total current assets | 168,036 | 150,301 | ||
Property, plant and equipment, net | 314,131 | 342,056 | ||
Intercompany | 250,461 | 248,540 | ||
Goodwill | 69,496 | 51,705 | ||
Intangible assets, net | 75,564 | 50,785 | ||
Other assets | 5,171 | 8,360 | ||
TOTAL ASSETS | 882,859 | 851,747 | ||
CURRENT LIABILITIES: | ||||
Accounts payable | 6,580 | 4,589 | ||
Accrued liabilities | 42,379 | 33,941 | ||
Current liabilities - discontinued operations | 1 | 74 | ||
Total current liabilities | 48,960 | 38,604 | ||
NONCURRENT LIABILITIES: | ||||
Deferred income taxes | 20,496 | 57,509 | ||
Intercompany | 575,090 | 521,096 | ||
Other | 22,579 | 32,481 | ||
Noncurrent liabilities - discontinued operations | 14,548 | 4,012 | ||
Total noncurrent liabilities | 632,713 | 615,098 | ||
SHAREHOLDERS' EQUITY: | ||||
Additional paid-in capital | 1,040 | 1,039 | ||
Retained earnings | 200,146 | 197,006 | ||
Total shareholders' equity | 201,186 | 198,045 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 882,859 | $ 851,747 |
Guarantor and Non-Guarantor F72
Guarantor and Non-Guarantor Financial Information - Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net cash (used in) provided by operating activities | $ 358,421 | $ 240,255 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (322,658) | (300,275) |
Purchase of short-term investments | (52,159) | (48,958) |
Acquisition of business, net cash received | (47,886) | (70,416) |
Proceeds from sale of short-term investments | 52,470 | 53,150 |
Proceeds from asset sales | 28,049 | 17,921 |
Net cash used in investing activities | (342,184) | (348,578) |
FINANCING ACTIVITIES: | ||
Dividends paid | (230,368) | (229,061) |
Proceeds from stock option exercises | 5,160 | 10,884 |
Payments for employee taxes on net settlement of equity awards | (5,978) | (6,274) |
Net cash used in financing activities | (231,186) | (224,451) |
Net decrease in cash and cash equivalents | (214,949) | (332,774) |
Cash and cash equivalents, beginning of period | 521,375 | 905,561 |
Cash and cash equivalents, end of period | 306,426 | 572,787 |
Guarantor/Parent | Reportable Legal Entities | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net cash (used in) provided by operating activities | 378 | (4,796) |
INVESTING ACTIVITIES: | ||
Capital expenditures | (8,725) | (2,344) |
Acquisition of business, net cash received | (47,886) | (70,416) |
Intercompany transfers | 56,611 | 72,760 |
FINANCING ACTIVITIES: | ||
Intercompany transfers | 230,368 | 229,061 |
Dividends paid | (230,368) | (229,061) |
Proceeds from stock option exercises | 5,160 | 10,884 |
Payments for employee taxes on net settlement of equity awards | (5,978) | (6,274) |
Net cash used in financing activities | (818) | 4,610 |
Net decrease in cash and cash equivalents | (440) | (186) |
Cash and cash equivalents, beginning of period | (587) | (955) |
Cash and cash equivalents, end of period | (1,027) | (1,141) |
Issuer Subsidiary | Reportable Legal Entities | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net cash (used in) provided by operating activities | 350,557 | 235,176 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (306,278) | (293,946) |
Purchase of short-term investments | (52,159) | (48,958) |
Proceeds from sale of short-term investments | 52,470 | 53,150 |
Intercompany transfers | (56,611) | (72,760) |
Proceeds from asset sales | 26,737 | 17,316 |
Net cash used in investing activities | (335,841) | (345,198) |
FINANCING ACTIVITIES: | ||
Intercompany transfers | (230,368) | (229,061) |
Net cash used in financing activities | (230,368) | (229,061) |
Net decrease in cash and cash equivalents | (215,652) | (339,083) |
Cash and cash equivalents, beginning of period | 508,091 | 899,028 |
Cash and cash equivalents, end of period | 292,439 | 559,945 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net cash (used in) provided by operating activities | 7,486 | 9,875 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (7,655) | (3,985) |
Proceeds from asset sales | 1,312 | 605 |
Net cash used in investing activities | (6,343) | (3,380) |
FINANCING ACTIVITIES: | ||
Net decrease in cash and cash equivalents | 1,143 | 6,495 |
Cash and cash equivalents, beginning of period | 13,871 | 7,488 |
Cash and cash equivalents, end of period | $ 15,014 | $ 13,983 |