Cover Page
Cover Page - shares | 3 Months Ended | |
Dec. 31, 2019 | Jan. 28, 2020 | |
Cover page. | ||
Document Type | 10-Q | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 1-4221 | |
Entity Registrant Name | HELMERICH & PAYNE, INC. | |
Entity Central Index Key | 0000046765 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 73-0679879 | |
Entity Address, Address Line One | 1437 South Boulder Avenue, Suite 1400 | |
Entity Address, City or Town | Tulsa | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 74119 | |
City Area Code | 918 | |
Local Phone Number | 742-5531 | |
Title of 12(b) Security | Common Stock ($0.10 par value) | |
Trading Symbol | HP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 108,877,646 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 355,010 | $ 347,943 |
Short-term investments | 57,044 | 52,960 |
Accounts receivable, net of allowance of $4,037 and $9,927, respectively | 500,947 | 495,602 |
Inventories of materials and supplies, net | 148,688 | 149,653 |
Prepaid expenses and other | 92,955 | 68,928 |
Total current assets | 1,154,644 | 1,115,086 |
Investments | 35,149 | 31,991 |
Property, plant and equipment, net | 4,412,359 | 4,502,084 |
Other Noncurrent Assets: | ||
Goodwill | 82,786 | 82,786 |
Intangible assets, net | 86,329 | 86,716 |
Operating lease right-of-use asset | 52,190 | |
Other assets | 18,053 | 20,852 |
Total other noncurrent assets | 239,358 | 190,354 |
Total assets | 5,841,510 | 5,839,515 |
Current Liabilities: | ||
Accounts payable | 122,609 | 123,146 |
Accrued liabilities | 296,738 | 287,092 |
Total current liabilities | 419,347 | 410,238 |
Noncurrent Liabilities: | ||
Long-term debt, net | 479,355 | 479,356 |
Deferred income taxes | 798,802 | 806,611 |
Other | 153,026 | 115,746 |
Noncurrent liabilities - discontinued operations | 15,443 | 15,341 |
Total noncurrent liabilities | 1,446,626 | 1,417,054 |
Commitments and Contingencies (Note 16) | ||
Shareholders' Equity: | ||
Common stock, $.10 par value, 160,000,000 shares authorized, 112,151,563 and 112,080,262 shares issued as of December 31, 2019 and September 30, 2019, respectively, and 108,877,209 and 108,437,904 shares outstanding as of December 31, 2019 and September 30, 2019, respectively | 11,215 | 11,208 |
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | 0 | 0 |
Additional paid-in capital | 499,277 | 510,305 |
Retained earnings | 3,666,260 | 3,714,307 |
Accumulated other comprehensive income (loss) | (28,119) | (28,635) |
Treasury stock, at cost, 3,274,354 shares and 3,642,358 shares as of December 31, 2019 and September 30, 2019, respectively | (173,096) | (194,962) |
Total shareholders’ equity | 3,975,537 | 4,012,223 |
Total liabilities and shareholders' equity | $ 5,841,510 | $ 5,839,515 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Current Assets: | ||
Allowance for accounts receivable | $ 4,037 | $ 9,927 |
Common stock, $.10 par value, 160,000,000 shares authorized, 112,151,563 and 112,080,262 shares issued as of December 31, 2019 and September 30, 2019, respectively, and 108,877,209 and 108,437,904 shares outstanding as of December 31, 2019 and September 30, 2019, respectively | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 112,151,563 | 112,080,262 |
Common stock, shares outstanding (in shares) | 108,877,209 | 108,437,904 |
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | ||
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Treasury stock, at cost, 3,274,354 shares and 3,642,358 shares as of December 31, 2019 and September 30, 2019, respectively | ||
Treasury stock, shares (in shares) | 3,274,354 | 3,642,358 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating revenues | ||
Contract drilling services | $ 611,398 | $ 737,358 |
Other | 3,259 | 3,240 |
Total operating revenues | 614,657 | 740,598 |
Operating costs and expenses | ||
Contract drilling services operating expenses, excluding depreciation and amortization | 389,206 | 487,593 |
Other operating expenses | 11,545 | 1,274 |
Depreciation and amortization | 130,131 | 141,460 |
Research and development | 6,878 | 7,019 |
Selling, general and administrative | 49,808 | 54,508 |
Gain on sale of assets | (4,279) | (5,545) |
Total operating costs and expenses | 583,289 | 686,309 |
Operating income from continuing operations | 31,368 | 54,289 |
Other income (expense) | ||
Interest and dividend income | 2,214 | 2,450 |
Interest expense | (6,100) | (4,720) |
Gain (loss) on investment securities | 2,821 | (42,844) |
Gain on sale of subsidiary | 14,963 | 0 |
Other | (399) | 541 |
Total other income (expense) | 13,499 | (44,573) |
Income from continuing operations before income taxes | 44,867 | 9,716 |
Income tax provision | 14,138 | 1,352 |
Income from continuing operations | 30,729 | 8,364 |
Income from discontinued operations before income taxes | 7,457 | 12,665 |
Income tax provision | 7,581 | 2,070 |
Income (loss) from discontinued operations | (124) | 10,595 |
Net income | $ 30,605 | $ 18,959 |
Basic earnings per common share: | ||
Income from continuing operations (in dollars per share) | $ 0.27 | $ 0.07 |
Income from discontinued operations (in dollars per share) | 0 | 0.10 |
Net income (in dollars per share) | 0.27 | 0.17 |
Diluted earnings per common share: | ||
Income from continuing operations (in dollars per share) | 0.27 | 0.07 |
Income from discontinued operations (in dollars per share) | 0 | 0.10 |
Net income (in dollars per share) | $ 0.27 | $ 0.17 |
Weighted average shares outstanding: | ||
Basic (in shares) | 108,555 | 109,142 |
Diluted (in shares) | 108,724 | 109,425 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 30,605 | $ 18,959 |
Other comprehensive income, net of income taxes: | ||
Minimum pension liability adjustments, net of income taxes of ($0.2) million and ($0.1) million December 31, 2019 and 2018, respectively | 516 | 225 |
Other comprehensive income | 516 | 225 |
Comprehensive income | $ 31,121 | $ 19,184 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other comprehensive income, net of income taxes: | ||
Income tax on minimum pension liability adjustments | $ (0.2) | $ (0.1) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balance (in shares) at Sep. 30, 2018 | 112,009,000 | |||||
Balance (in shares) at Sep. 30, 2018 | 3,015,000 | |||||
Balance at Sep. 30, 2018 | $ 4,382,735 | $ 11,201 | $ 500,393 | $ 4,027,779 | $ 16,550 | $ (173,188) |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 18,959 | 18,959 | ||||
Other comprehensive income | 225 | 225 | ||||
Dividends declared | (78,488) | (78,488) | ||||
Exercise of employee stock options, net of shares withheld for employee taxes (in shares) | (125,000) | |||||
Exercise of employee stock options, net of shares withheld for employee taxes | 224 | (6,756) | $ 6,980 | |||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | 71,000 | (215,000) | ||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (4,537) | $ 7 | (16,673) | $ 12,129 | ||
Stock-based compensation | 7,158 | 7,158 | ||||
Balance (in shares) at Dec. 31, 2018 | 112,080,000 | |||||
Balance (in shares) at Dec. 31, 2018 | 2,675,000 | |||||
Balance at Dec. 31, 2018 | $ 4,326,238 | $ 11,208 | 484,122 | 3,997,283 | (12,296) | $ (154,079) |
Balance (in shares) at Sep. 30, 2019 | 112,080,262 | 112,080,000 | ||||
Balance (in shares) at Sep. 30, 2019 | 3,642,358 | 3,642,000 | ||||
Balance at Sep. 30, 2019 | $ 4,012,223 | $ 11,208 | 510,305 | 3,714,307 | (28,635) | $ (194,962) |
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 30,605 | 30,605 | ||||
Other comprehensive income | 516 | 516 | ||||
Dividends declared | (78,652) | (78,652) | ||||
Exercise of employee stock options, net of shares withheld for employee taxes (in shares) | (110,000) | |||||
Exercise of employee stock options, net of shares withheld for employee taxes | 4,045 | (3,103) | $ 7,148 | |||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | 71,000 | (258,000) | ||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (3,401) | $ 7 | (18,126) | $ 14,718 | ||
Stock-based compensation | $ 10,201 | 10,201 | ||||
Balance (in shares) at Dec. 31, 2019 | 112,151,563 | 112,151,000 | ||||
Balance (in shares) at Dec. 31, 2019 | 3,274,354 | 3,274,000 | ||||
Balance at Dec. 31, 2019 | $ 3,975,537 | $ 11,215 | $ 499,277 | $ 3,666,260 | $ (28,119) | $ (173,096) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | Dec. 13, 2019 | Sep. 04, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.71 | $ 0.71 | $ 0.71 | $ 0.71 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 30,605 | $ 18,959 |
Adjustment for (income) loss from discontinued operations | 124 | (10,595) |
Income from continuing operations | 30,729 | 8,364 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 130,131 | 141,460 |
Amortization of debt discount and debt issuance costs | 444 | 329 |
Provision for bad debt | (2,069) | 873 |
Stock-based compensation | 10,201 | 7,158 |
(Gain) loss on investment securities | (2,821) | 42,844 |
Gain on sale of assets | (4,279) | (5,545) |
Gain on sale of subsidiary | (14,963) | 0 |
Deferred income tax (benefit) expense | (7,966) | 1,107 |
Other | (139) | 168 |
Change in assets and liabilities increasing (decreasing) cash: | ||
Accounts receivable | (3,269) | 19,700 |
Inventories of materials and supplies | 965 | (1,858) |
Prepaid expenses and other | (19,699) | 64 |
Other noncurrent assets | 6,367 | (273) |
Accounts payable | (1,580) | 8,012 |
Accrued liabilities | (8,093) | (2,919) |
Deferred income tax liability | 6 | (306) |
Other noncurrent liabilities | (2,184) | (9,670) |
Net cash provided by operating activities from continuing operations | 111,781 | 209,508 |
Net cash used in operating activities from discontinued operations | 0 | (26) |
Net cash provided by operating activities | 111,781 | 209,482 |
Cash flows from investing activities: | ||
Capital expenditures | (46,021) | (196,094) |
Purchase of short-term investments | (28,948) | (31,324) |
Payment for acquisition of business, net of cash acquired | 0 | (2,781) |
Proceeds from sale of short-term investments | 25,000 | 31,860 |
Proceeds from sale of subsidiary | 15,056 | 0 |
Proceeds from asset sales | 11,878 | 11,609 |
Net cash used in investing activities | (23,035) | (186,730) |
Cash flows from financing activities: | ||
Dividends paid | (77,602) | (78,122) |
Debt issuance costs paid | 0 | (3,912) |
Proceeds from stock option exercises | 4,100 | 1,954 |
Payments for employee taxes on net settlement of equity awards | (3,455) | (6,267) |
Other | (445) | 0 |
Net cash used in financing activities | (77,402) | (86,347) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 11,344 | (63,595) |
Cash and cash equivalents and restricted cash, beginning of period | 382,971 | 326,185 |
Cash and cash equivalents and restricted cash, end of period | 394,315 | 262,590 |
Cash paid during the period: | ||
Interest paid | 46 | 6,140 |
Income tax paid, net | 934 | 5,710 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | 4,877 | |
Changes in accounts payable and accrued liabilities related to purchases of property, plant and equipment | $ (1,339) | $ 8,708 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 3 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 NATURE OF OPERATIONS Helmerich & Payne, Inc. (“H&P,” which, together with its subsidiaries, is identified as the “Company,” “we,” “us,” or “our,” except where stated or the context requires otherwise) through its operating subsidiaries provides performance-driven drilling solutions and technologies that are intended to make hydrocarbon recovery safer and more economical for oil and gas exploration and production companies. Our operations are organized into the following reportable business segments: U.S. Land, Offshore, International Land and H&P Technologies. Additionally, during the fourth quarter of fiscal year 2019, we migrated our FlexApp offerings into our H&P Technologies business segment. The activity of our FlexApps was previously included in our U.S. Land segment. All segment disclosures have been restated, as practicable, for these segment changes. Certain other corporate activities, our real estate operations, our incubator program for new research and development projects and our wholly-owned captive insurance company are included in "Other". Refer to Note 17—Business Segments and Geographic Information for further details on our reportable segments. Our U.S. Land operations are primarily located in Colorado, Louisiana, Ohio, Oklahoma, Montana, New Mexico, North Dakota, Pennsylvania, Texas, Utah, West Virginia and Wyoming. Additionally, Offshore operations are conducted in the Gulf of Mexico and our International Land operations have rigs primarily located in four international locations: Argentina, Bahrain, Colombia and United Arab Emirates. We also own, develop and operate limited commercial real estate properties. Our real estate investments, which are located exclusively within Tulsa, Oklahoma, include a shopping center, multi-tenant industrial warehouse properties, and undeveloped real estate. Fiscal Year 2020 Dispositions In December 2019, we closed on the sale of a wholly-owned subsidiary of Helmerich & Payne International Drilling Co. ("HPIDC"), TerraVici Drilling Solutions, Inc. ("TerraVici"). As a result of the sale, 100% of TerraVici's outstanding capital stock was transferred to the purchaser in exchange for approximately $15.1 million , resulting in a total gain on the sale of TerraVici of approximately $15.0 million . Prior to the sale, TerraVici was a component of the H&P Technologies reportable segment. This transaction does not represent a strategic shift in our operations and will not have a significant effect on our operations and financial results going forward. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES Interim Financial Information 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 “SEC”) 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 2019 Annual Report on Form 10-K and other current filings with the SEC. 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. Principles of Consolidation The unaudited consolidated financial statements include the accounts of Helmerich & Payne, Inc. and its domestic and foreign subsidiaries. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the fiscal year are included in the unaudited condensed consolidated statements of operations and comprehensive income (loss) from the date the Company gains control until the date when the Company ceases to control the subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash on hand, demand deposits with banks and all highly liquid investments with original maturities of three months or less. Approximately $315.8 million of cash and cash equivalents resides in accounts in the United States and the remaining $39.2 million are in other countries. Our cash, cash equivalents and short-term investments are subject to potential credit risk, and certain of our cash accounts carry balances greater than the federally insured limits. We had restricted cash of $39.3 million and $34.1 million at December 31, 2019 and 2018 , respectively, and $35.0 million and $41.8 million at September 30, 2019 and 2018 , respectively. Of the total at December 31, 2019 and September 30, 2019 , $3.5 million and $3.0 million , respectively, is related to the acquisition of drilling technology companies, $2.0 million as of both fiscal period ends is from the additional capitalization of the captive insurance company, $33.7 million and $30.0 million , respectively, represents an additional amount management has elected to restrict for the purpose of potential insurance claims in our wholly-owned captive insurance company, and $0.1 million at December 31, 2019 is for other restricted purposes. The restricted amounts are primarily invested in short-term money market securities. The restricted cash and cash equivalents are reflected within the following line items on the Unaudited Condensed Consolidated Balance Sheets: December 31, September 30, (in thousands) 2019 2018 2019 2018 Cash $ 355,010 $ 228,462 $ 347,943 $ 284,355 Restricted Cash Prepaid expenses and other 35,618 30,246 31,291 39,830 Other assets 3,687 3,882 3,737 2,000 Total cash, cash equivalents, and restricted cash $ 394,315 $ 262,590 $ 382,971 $ 326,185 Leases We lease various offices, warehouses, equipment and vehicles. Rental contracts are typically made for fixed periods of 1 to 15 years but may have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. Up until the end of fiscal year 2019, leases of property, plant and equipment were classified as either finance or operating leases. Payments made under operating leases (net of any incentives received from the lessor) were charged to the income statement on a straight-line basis over the period of the lease (“levelized lease cost”). Beginning October 1, 2019, leases are recognized as a right-of-use asset and a corresponding liability within accrued liabilities and other non-current liabilities at the date at which the leased asset is available for use by the Company. Each lease payment is allocated between the liability and finance cost. The finance cost is recognized over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis for finance type leases and as the difference between the levelized lease cost and the finance cost for operating leases. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • Fixed payments (including in-substance fixed payments), less any lease incentives receivable • Variable lease payments that are based on an index or a rate • Amounts expected to be payable by the lessee under residual value guarantees • The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and • Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate is used, which is the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Right-of-use assets are measured at cost and are comprised of the following: • The amount of the initial measurement of lease liability • Any lease payments made at or before the commencement date less any lease incentives received • Any initial direct costs, and • Asset retirement obligations related to that lease, as applicable. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets are comprised of IT-equipment and office furniture. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). The assessment is reviewed if a significant event or a significant change in circumstances occurs and that is within the control of the lessee. Refer to Note 6—Leases for additional information regarding our leases. Recently Issued Accounting Updates Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable, clarifications of ASUs listed below, immaterial, or already adopted by the Company. The following table provides a brief description of recent accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Recently Adopted Accounting Pronouncements ASU No. 2016-02, Leases (Topic 842) and related ASUs issued subsequent ASU No. 2016-02 requires organizations that lease assets — referred to as “lessees” — to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. Lessor accounting remains substantially similar to current U.S. GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 mandates a modified retrospective transition method of adoption with an option to use certain practical expedients. October 1, 2019 We adopted this ASU during the first quarter of fiscal year 2020, as required. Refer to Note 6—Leases for additional information. ASU No. 2018-15, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract This ASU aims to reduce complexity in the accounting for costs of implementing a cloud computing service arrangement. ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This update is effective for annual and interim periods beginning after December 15, 2019. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. October 1, 2019 We early adopted this ASU during the first quarter of fiscal year 2020 on a prospective basis. The prospective impact was not material to our unaudited condensed consolidated financial statements and disclosures. Standards that are not yet adopted as of December 31, 2019 ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) and related ASUs issued subsequent This 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. October 1, 2020 We are currently evaluating the impact the new guidance may have on our condensed consolidated financial statements and disclosures. ASU No. 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans—General (Topic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans This ASU amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit, pension and other postretirement plans. This update is effective for annual and interim periods ending after December 15, 2020. October 1, 2021 We are currently evaluating the impact the new guidance may have on our condensed consolidated financial statements and disclosures. ASU No. 2019-12, Financial Instruments – Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions related to Topic 740. The ASU also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This update is effective for annual and interim periods beginning after December 15, 2020. Early adoption of the amendment is permitted, including adoption in any interim period for public entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. October 1, 2021 We are currently evaluating the impact the new guidance may have on our condensed consolidated financial statements and disclosures. Self-Insurance We self-insure a significant portion of expected losses relating to workers’ compensation, general liability and automobile liability. Generally, deductibles range from $1 million to $10 million per occurrence depending on the coverage and whether a claim occurs outside or inside of the United States. Insurance is purchased over deductibles to reduce our exposure to catastrophic events. Estimates are recorded for incurred outstanding liabilities for workers’ compensation, general liability claims and claims that are incurred but not reported. Estimates are based on adjusters' estimates, historical experience and statistical methods commonly used within the insurance industry that we believe are reliable. We have also engaged a third-party actuary to perform a review of our domestic casualty losses as well as losses in our captive insurance company. Nonetheless, insurance estimates include certain assumptions and management judgments regarding the frequency and severity of claims, claim development and settlement practices. Unanticipated changes in these factors may produce materially different amounts of expense that would be reported under these programs. On October 1, 2019, we elected to utilize a wholly-owned insurance captive (“Captive”) to insure the deductibles for our workers’ compensation, general liability and automobile liability insurance programs. In addition, we intend to utilize the Captive to insure the deductibles for our drilling rigs and related equipment under a property insurance program. The Company and the Captive maintain excess and reinsurance programs with third-party insurers in an effort to limit the financial impact of significant events covered under these programs. Our operating subsidiaries are paying premiums to the Captive, typically on a monthly basis, for the estimated losses based on the external actuarial analysis. These premiums are held in a restricted escrow account, resulting in a transfer of risk from our operating subsidiaries to the Captive for the deductible self-insurance retention. The actuarial estimated underwriting expenses for to the three months ended December 31, 2019 was approximately $8.5 million and was recorded within the Other operating expenses in our Unaudited Condensed Consolidated Statement of Operations. Intercompany premium revenues and expenses during the three months ended December 31, 2019 amounted to $7.7 million , which were eliminated upon consolidation. These intercompany insurance premiums are reflected as segment operating expenses within the U.S. Land, Offshore, and International Land reportable operating segments and are reflected as intersegment sales within "Other". International Land Drilling Risks International Land drilling operations may significantly contribute to our revenues and net operating income. There can be no assurance that we will be able to successfully conduct such operations, and a failure to do so may have an adverse effect on our financial position, results of operations, and cash flows. Also, the success of our international land operations will be subject to numerous contingencies, some of which are beyond management’s control. These contingencies include general and regional economic conditions, fluctuations in currency exchange rates, modified exchange controls, changes in international regulatory requirements and international employment issues, risk of expropriation of real and personal property and the burden of complying with foreign laws. Additionally, in the event that extended labor strikes occur or a country experiences significant political, economic or social instability, we could experience shortages in labor and/or material and supplies necessary to operate some of our drilling rigs, thereby potentially causing an adverse material effect on our business, financial condition and results of operations. In Argentina, while our dayrate is denominated in U.S. dollars, we are paid in Argentine pesos. The Argentine branch of one of our second-tier subsidiaries 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 also has a history of implementing currency controls which restrict the conversion and repatriation of U.S. dollars, including controls that were implemented in September 2019 and are presently in effect. As a result of these currency controls, our ability to remit funds from our Argentine subsidiary to its U.S. parent has been limited. As of December 31, 2019 , our cash balance in Argentina was $30.5 million . Furthermore, the Argentine government has also instituted price controls on crude oil, diesel and gasoline prices and instituted an exchange rate freeze in connection with those prices. Argentina’s economy is 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 subsidiaries 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 three months ended December 31, 2019 and 2018 , we experienced an aggregate foreign currency gain of $1.0 million and an aggregate foreign currency loss of $3.9 million , respectively. 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 three months ended December 31, 2019 , approximately 7.8 percent of our operating revenues were generated from international locations in our contract drilling business compared to 8.9 percent during the three months ended December 31, 2018 . During the three months ended December 31, 2019 , approximately 87.0 percent of operating revenues from international locations were from operations in South America compared to 89.1 percent during the three months ended December 31, 2018 . 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. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | NOTE 3 BUSINESS COMBINATIONS Fiscal Year 2019 Acquisitions On August 21, 2019, we completed an acquisition of an unaffiliated company, DrillScan Energy SAS and its subsidiaries ("DrillScan"), which is now a wholly-owned subsidiary of the Company, for total consideration of approximately $32.7 million , which includes $17.7 million of contingent consideration. The fair value of the total assets acquired, and liabilities assumed, as of the acquisition date, were $36.3 million and $3.6 million , respectively, including goodwill of $14.9 million . Of the total assets acquired, $19.1 million was allocated to identifiable intangible assets. DrillScan is a leading provider of proprietary drilling engineering software, well engineering services and training for the oil and gas industry. The operations of DrillScan are included in the H&P Technologies reportable business segment. The acquisition of DrillScan was accounted for as a business combination in accordance with FASB ASC 805, Business Combinations, which requires the assets acquired and liabilities assumed to be recorded at their acquisition date fair values. In accordance with GAAP, an entity is allowed a reasonable period of time (not to exceed one year) to obtain the information necessary to identify and measure the fair value of the assets acquired and liabilities assumed in a business combination. This acquisition is still within this measurement period, and as a result, the acquisition date fair values we have recorded for the assets acquired and liabilities assumed are subject to change as a result of new information identified. On November 1, 2018, we completed an acquisition of an unaffiliated company, Angus Jamieson Consulting (“AJC”), which is now a wholly-owned subsidiary of the Company, for total consideration of approximately $3.4 million . AJC is a software-based training and consultancy company based in Inverness, Scotland and is widely recognized as an industry leader in wellbore positioning. The operations of AJC are included in the H&P Technologies reportable segment. The acquisition of AJC has been accounted for as a business combination in accordance with FASB ASC 805, Business Combinations, which requires the assets acquired and liabilities assumed to be recorded at their acquisition date fair values. The allocation of the purchase price includes goodwill of $3.1 million . |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 4 DISCONTINUED OPERATIONS Current and noncurrent liabilities from discontinued operations 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 within our Unaudited Condensed Consolidated Statements of Operations. The activity for the three months ended December 31, 2019 was primarily due to the remeasurement of uncertain tax liabilities as a result of 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 relaunched an exchange system known as DICOM. The Venezuela government also established a new currency called the “Sovereign Bolivar,” which was determined by the elimination of five zeros from the old currency. The DICOM floating rate was approximately 46,621 Bolivars per United States dollar at December 31, 2019 . The DICOM floating rate might not reflect the barter market exchange rates. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 5 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of December 31, 2019 and September 30, 2019 consisted of the following: (in thousands) Estimated Useful Lives December 31, 2019 September 30, 2019 Contract drilling services equipment 4 - 15 years $ 7,739,064 $ 7,881,323 Tubulars 4 years 611,730 618,310 Real estate properties 10 - 45 years 72,512 72,507 Other 2 - 23 years 463,962 471,803 Construction in progress (1) 135,142 117,761 9,022,410 9,161,704 Accumulated depreciation (4,610,051 ) (4,659,620 ) Property, plant and equipment, net $ 4,412,359 $ 4,502,084 (1) Included in construction in progress are costs for projects in progress to upgrade or refurbish certain rigs in our existing fleet. Additionally, we include other capital maintenance purchase-orders that are open/in process. As these various projects are completed, the costs are then classified to their appropriate useful life category. Depreciation Depreciation expense in the Unaudited Condensed Consolidated Statements of Operations was $128.2 million and $140.0 million , which includes abandonments of $0.8 million and $1.0 million for the three months ended December 31, 2019 and 2018 , respectively. Gain on Sale of Assets We had gains on sales of assets of $4.3 million and $5.5 million for the three months ended December 31, 2019 and 2018 |
LEASES
LEASES | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | NOTE 6 LEASES ASC 842 Adoption On October 1, 2019, we adopted ASC 842, retrospectively through a cumulative-effect adjustment without restating comparative periods for the 2019 and 2018 fiscal years as permitted under the specific transitional provisions in ASC 842. The reclassifications and the adjustments arising from the new leasing rules are therefore recognized in the opening balance sheet on October 1, 2019. Upon adoption of ASC 842, we recognized lease liabilities in relation to leases that had previously been classified as operating leases under the principles of ASC 840. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of October 1, 2019, as most of our contracts do not provide an implicit rate. The weighted average lessee’s incremental borrowing rate applied to the operating lease liabilities on October 1, 2019 was approximately 2.9% . The change in accounting policy affected the following items in the balance sheet on October 1, 2019: (in thousands) September 30, 2019 Adjustments October 1, 2019 Other Noncurrent Assets: Operating lease right-of-use asset $ — $ 56,071 $ 56,071 Current Liabilities: Accrued liabilities — 16,277 16,277 Noncurrent Liabilities: Other — 39,794 39,794 As of December 31, 2019 , segment assets and liabilities have all increased from September 30, 2019 as a result of the change in accounting policy. All reportable segments were affected by the change in policy. In applying ASC 842 for the first time, we have used the following practical expedients permitted by the topic: • The use of a single discount rate to a portfolio of leases with reasonably similar characteristics, • Not to reassess whether a contract is, or contains a lease at the date of initial application; instead, for contracts entered into before the transition date, we relied on our assessment in which we applied ASC 840 prior to the adoption date, • The option to not reassess initial direct cost for existing leases, and • The use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease. We have made the accounting policy election to not recognize a right-of-use asset lease and lease liability for leases with a term of 12 months or less and leases of low-value. Additionally, ASC 842 provides lessors with a practical expedient, by class of underlying asset, to not separate lease and non-lease components and account for the combined component under ASC 606 when the non-lease component is the predominant element of the combined component. The lessor practical expedient is limited to circumstances in which the lease, if accounted for separately, would be classified as an operating lease under ASC 842. With respect to our drilling service contracts that commenced in the first quarter of fiscal year 2020, we concluded that our drilling contracts contain a lease component and that the non-lease component is the predominant element of the combined component of such contracts. As such, we elected to apply the practical expedient to not separate the lease and non-lease components and account for the combined component under ASC 606. Therefore, we do not expect any change in our revenue recognition patterns or disclosures as a result of our adoption of ASC 842. Lease Position (in thousands) October 1, 2019 December 31, 2019 Operating lease commitments disclosed 62,218 57,341 Discounted using the lessee's incremental borrowing rate at the date of initial application 57,323 52,847 (Less): short-term leases recognized on a straight-line basis as expense (1,252 ) (657 ) Lease liability recognized $ 56,071 $ 52,190 Of which: Current lease liabilities $ 16,277 $ 15,287 Non-current lease liabilities 39,794 36,903 The recognized right-of-use assets relate to the following types of assets: (in thousands) October 1, 2019 December 31, 2019 Properties $ 52,188 $ 48,691 Equipment 3,652 3,298 Other 231 201 Total right-of-use assets $ 56,071 $ 52,190 The associated right-of-use assets for the leases were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized on the balance sheet at September 30, 2019. Lease Costs The table below presents certain information related to the lease costs for our operating leases for the three months ended December 31, 2019 . (in thousands) Three Months Ended Operating lease cost $ 4,270 Short-term lease cost 607 Total lease cost $ 4,877 Lease Terms and Discount Rates The table below presents certain information related to the weighted average remaining lease terms and weighted average discount rates for our operating leases as of December 31, 2019 . Three Months Ended Weighted average remaining lease term 9.6 Weighted average discount rate 2.9 % Lease Obligations Future minimum rental payments required under operating leases having initial or remaining non-cancelable lease terms in excess of one year at December 31, 2019 (in thousands) are as follows: Fiscal Year Amount 2020 $ 12,661 2021 10,082 2022 8,585 2023 7,658 2024 7,242 Thereafter 11,113 Total $ 57,341 Total rent expense was $4.9 million and $3.7 million for three months ended December 31, 2019 and 2018 , respectively. The future minimum lease payments for our Tulsa corporate office and our Tulsa industrial facility represent a material portion of the amounts shown in the table above. The lease agreement for our Tulsa corporate office commenced on May 30, 2003 and has subsequently been amended, most recently on March 12, 2018. The agreement will expire on January 31, 2025; however, we have two five -year renewal options, which were not recognized as part of our right-of-use assets and lease liabilities. The lease agreement for our Tulsa industrial facility, where we perform maintenance and assembly of FlexRig components commenced on December 21, 2018 and will expire on June 30, 2025; however, we have two two |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 7 GOODWILL AND INTANGIBLE ASSETS Goodwill 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 H&P Technologies reportable segment. During the three months ended December 31, 2019 , we had no additions or impairments to goodwill. As of December 31, 2019 , and September 30, 2019 , the goodwill balance was $82.8 million . Intangible Assets 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. Intangible assets arising from business acquisitions consisted of the following: December 31, 2019 September 30, 2019 (in thousands) Weighted Average Estimated Useful Lives Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible asset: Developed technology 15 years $ 89,096 $ 11,841 $ 77,255 $ 89,096 $ 10,256 $ 78,840 Intellectual property 13 years 1,500 19 1,481 — — — Trade name 20 years 5,865 605 5,260 5,865 522 5,343 Customer relationships 5 years 4,000 1,667 2,333 4,000 1,467 2,533 $ 100,461 $ 14,132 $ 86,329 $ 98,961 $ 12,245 $ 86,716 Amortization expense in the Unaudited Condensed Consolidated Statements of Operations was $1.9 million and $1.4 million for the three months ended December 31, 2019 and 2018 , respectively. I ntangible amortization is estimated to be approximately $7.1 million for fiscal year 2020 , approximately $7.2 million for each of fiscal year 2021 and 2022 , approximately $6.5 million for fiscal year 2023 and approximately $6.4 million for fiscal year 2024 . |
DEBT
DEBT | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 8 DEBT We had the following unsecured long-term debt outstanding with maturities shown in the following table: December 31, 2019 September 30, 2019 (in thousands) Face Amount Unamortized Discount and Debt Issuance Cost Book Value Face Amount Unamortized Book Value Unsecured senior notes: Due March 19, 2025 $ 487,148 $ (7,793 ) $ 479,355 $ 487,148 $ (7,792 ) $ 479,356 487,148 (7,793 ) 479,355 487,148 (7,792 ) 479,356 Less long-term debt due within one year — — — — — — Long-term debt $ 487,148 $ (7,793 ) $ 479,355 $ 487,148 $ (7,792 ) $ 479,356 Senior Notes HPIDC 2025 Notes On March 19, 2015, our subsidiary, Helmerich & Payne International Drilling Co. ("HPIDC") issued $500 million of 4.65 percent unsecured senior notes due 2025 of HPIDC (the "HPIDC 2025 Notes"), which were redeemed in full on September 27, 2019 as described under "––Exchange Offer, Consent Solicitation and Redemption." Interest on the HPIDC 2025 Notes was payable semi-annually on March 15 and September 15. The debt discount was being amortized to interest expense using the effective interest method. The debt issuance costs were being amortized straight-line over the stated life of the obligation, which approximated the effective interest method. Exchange Offer, Consent Solicitation and Redemption On December 20, 2018 , we settled an offer to exchange (the “Exchange Offer”) any and all outstanding HPIDC 2025 Notes for (i) up to $500 million aggregate principal amount of new 4.65 percent unsecured senior notes due 2025 of the Company (the “Company 2025 Notes”), with registration rights, and (ii) cash, pursuant to which we issued approximately $487.1 million in aggregate principal amount of Company 2025 Notes. Interest on the Company 2025 Notes is payable semi-annually on March 15 and September 15 of each year, commencing March 15, 2019. The debt issuance costs are being amortized straight-line over the stated life of the obligation, which approximates the effective interest method. Following the consummation of the Exchange Offer, HPIDC had outstanding approximately $12.9 million in aggregate principal amount of HPIDC 2025 Notes. On December 20, 2018 , HPIDC, the Company and Wells Fargo Bank, National Association, as trustee, entered into a supplemental indenture to the indenture governing the HPIDC 2025 Notes to adopt certain proposed amendments pursuant to a consent solicitation conducted concurrently with the Exchange Offer. On September 27, 2019, we redeemed the remaining approximately $12.9 million in aggregate principal amount of HPIDC 2025 Notes for approximately $14.6 million , including accrued interest and a prepayment premium . Simultaneously with the redemption of the HPIDC 2025 Notes, HPIDC was released as a guarantor under the Company 2025 Notes and the 2018 Credit Facility (as defined herein). As a result of such release, H&P is the only obligor under the Company 2025 Notes and the 2018 Credit Facility . Credit Facilities On November 13, 2018, we entered into a credit agreement by and among the Company, as borrower, Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto, providing for an unsecured revolving credit facility (the “2018 Credit Facility”), which was originally set to mature on November 13, 2023. Pursuant to the first amendment to our 2018 Credit Facility entered into on November 13, 2019, among other things, the maturity date was extended by one year to November 13, 2024. The 2018 Credit Facility has $750 million in aggregate availability with a maximum of $75 million available for use as letters of credit. The 2018 Credit Facility also permits aggregate commitments under the facility to be increased by $300 million , subject to the satisfaction of certain conditions and the procurement of additional commitments from new or existing lenders. The borrowings under the 2018 Credit Facility accrue interest at a spread over either the London Interbank Offered Rate ("LIBOR") or the Base Rate. We also pay a commitment fee on the unused balance of the facility. Borrowing spreads as well as commitment fees are determined based on the debt rating for senior unsecured debt of the Company, as determined by Moody’s and Standard & Poor’s. The spread over LIBOR ranges from 0.875 percent to 1.500 percent per annum and commitment fees range from 0.075 percent to 0.200 percent per annum. There is a financial covenant in the 2018 Credit Facility that requires us to maintain a total debt to total capitalization ratio of less than or equal to 50 percent . The 2018 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 credit agreement) may not exceed 17.5 percent of the net worth of the Company. As of December 31, 2019 , there were no borrowings or letters of credit outstanding, leaving $750.0 million available to borrow under the 2018 Credit Facility. As of December 31, 2019 , we had two outstanding letters of credit with banks, in the amounts of $24.8 million and $2.1 million , respectively. As of December 31, 2019 , we also had a $20.0 million unsecured standalone line of credit facility, for the purpose of obtaining the issuance of international letters of credit, bank guarantees, and performance bonds. Of the $20.0 million , $14.1 million of financial guarantees were outstanding as of December 31, 2019 . 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 December 31, 2019 , we were in compliance with all debt covenants. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 9 INCOME TAXES We use an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating our estimated annual effective tax rate, we consider forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and estimates will occur as information and assumptions change. Our income tax provision from continuing operations for the three months ended December 31, 2019 and 2018 was $14.1 million and $1.4 million , respectively, resulting in effective tax rates of 31.5 percent and 13.9 percent , respectively. Effective tax rates differ from the U.S. federal statutory rate of 21.0 percent for the three months ended December 31, 2019 and 2018 primarily due to state and foreign income taxes, permanent non-deductible items and discrete adjustments. The discrete adjustments for the three months ended December 31, 2019 are primarily due to tax expense of $2.4 million related to equity compensation. The discrete adjustments for the three months ended December 31, 2018 were primarily due to the recording of a tax benefit related to the reversal of an uncertain tax liability of $1.7 million for which the statute of limitations has since expired. 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. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 10 SHAREHOLDERS’ EQUITY The Company has authorization from the Board of Directors (the "Board") for the repurchase of up to four million common 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 three months ended December 31, 2019 and 2018 . A cash dividend of $0.71 per share was declared on September 4, 2019 for shareholders of record on November 11, 2019, and was paid on December 2, 2019 . An additional cash dividend of $0.71 per share was declared on December 13, 2019 for shareholders of record on February 10, 2020, payable on March 2, 2020. The dividend payable is included in accounts payable in the Unaudited Condensed Consolidated Balance Sheets. Components of accumulated other comprehensive loss were as follows: (in thousands) December 31, September 30, Pre-tax amounts: Unrealized actuarial loss $ (36,415 ) $ (37,084 ) $ (36,415 ) $ (37,084 ) After-tax amounts: Unrealized actuarial loss $ (28,119 ) $ (28,635 ) $ (28,119 ) $ (28,635 ) The following is a summary of the changes in accumulated other comprehensive loss, net of tax, related to the defined benefit pension plan for the three months ended December 31, 2019 : (in thousands) Three Months Ended Balance at September 30, 2019 $ (28,635 ) Activity during the period Amounts reclassified from accumulated other comprehensive income 516 Net current-period other comprehensive income 516 Balance at December 31, 2019 $ (28,119 ) |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 11 REVENUE FROM CONTRACTS WITH CUSTOMERS Contract Drilling Services Revenue During the three months ended December 31, 2019 and 2018 , early termination revenue was approximately $0.1 million and $7.1 million , respectively. Contract Costs We had capitalized fulfillment costs of $14.3 million as of December 31, 2019 and $13.9 million as of September 30, 2019 . Remaining Performance Obligations The total aggregate transaction price allocated to the unsatisfied performance obligations, commonly referred to as backlog, as of December 31, 2019 was approximately $1.1 billion , of which approximately $0.7 billion is expected to be recognized during the remainder of fiscal year 2020 , approximately $0.3 billion during fiscal year 2021 , and approximately $0.1 billion in fiscal year 2022 and thereafter. These amounts do not include anticipated contract renewals. Additionally, contracts that currently contain month-to-month terms are represented in our backlog as one month of unsatisfied performance obligations. Our contracts are subject to cancellation or modification at the election of the customer; however, due to the level of capital deployed by our customers on underlying projects, we have not been materially adversely affected by contract cancellations or modifications in the past. We do not have material long-term contracts related to our H&P Technologies segment. Contract Assets and Liabilities The following table summarizes the balances of our contract assets and liabilities at the dates indicated: (in thousands) December 31, 2019 September 30, 2019 Contract assets $ 3,024 $ 2,151 (in thousands) December 31, 2019 Contract liabilities balance at September 30, 2019 $ 23,354 Payment received/accrued and deferred 11,098 Revenue recognized during the period (9,340 ) Contract liabilities balance at December 31, 2019 $ 25,112 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 12 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, restricted stock awards and performance share units 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 under the Helmerich & Payne, Inc. 2005 Long-Term Incentive Plan and the Helmerich & Payne, Inc. 2010 Long-Term Incentive Plan remain subject to the terms and conditions of those plans. Beginning with fiscal year 2019, we replaced stock options with performance share units as a component of our executives’ long-term equity incentive compensation. As a result, there were no new non-qualified stock options granted during the three months ended December 31, 2019 . We have also eliminated stock options as an element of our director compensation program. The Board has determined to award stock-based compensation to directors solely in the form of restricted stock. During the three months ended December 31, 2019 , 727,009 shares of restricted stock awards and 258,857 performance share units were granted under the 2016 Plan. A summary of compensation cost for stock-based payment arrangements recognized in contract drilling services operating expense and selling, general and administrative expense is as follows: Three Months Ended (in thousands) 2019 2018 Stock-based compensation expense Stock options $ 571 $ 1,416 Restricted stock 7,370 5,742 Performance share units 2,260 — $ 10,201 $ 7,158 Of the total stock-based compensation expense, $2.4 million and $1.6 million was recorded in contract drilling services operating expense and $7.8 million and $5.6 million was recorded in selling, general and administrative expense for the three months ended December 31, 2019 and 2018 , respectively, on our Unaudited Condensed Consolidated Statements of Operations. Stock Options A summary of stock option activity under all existing long-term incentive plans for the three months ended December 31, 2019 is presented in the following table: Three Months Ended December 31, 2019 (in thousands, except per share amounts and years) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Aggregate Intrinsic Value Outstanding at September 30, 2019 3,238 $ 60.86 Exercised (202) 38.02 Forfeited/Expired (8) 38.02 Outstanding at December 31, 2019 3,028 $ 62.44 5.30 $ — Vested and expected to vest at December 31, 2019 3,028 $ 62.44 5.30 $ — Exercisable at December 31, 2019 2,632 $ 62.44 4.93 $ — The total intrinsic value of options exercised during the three months ended December 31, 2019 and 2018 was $0.3 million and $7.6 million , respectively. As of December 31, 2019 , the unrecognized compensation cost related to stock options was $2.7 million , which is expected to be recognized over a weighted-average period of 1.8 years. Restricted Stock Restricted stock awards consist of our common stock and are time-vested over four years . Non-forfeitable dividends are paid on non-vested shares of restricted stock. 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 December 31, 2019 , there was $57.8 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 3.1 years . A summary of the status of our restricted stock awards as of December 31, 2019 and changes in non-vested restricted stock outstanding during the three months then ended is presented below: Three Months Ended (in thousands, except per share amounts) Shares Weighted Average Grant Date Fair Value per Share Non-vested restricted stock outstanding at September 30, 2019 1,085 $ 61.28 Granted 727 41.88 Vested (1) (414 ) 62.13 Forfeited (2 ) 60.59 Non-vested restricted stock outstanding at December 31, 2019 1,396 $ 50.93 (1) The number of restricted stock awards vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements. Performance Share Units We have made awards to certain employees that are subject to market-based performance conditions ("performance share units"). Subject to the terms and conditions set forth in the applicable performance share unit award agreements and the 2016 Plan, grants of performance share units are subject to a vesting period of three years (the “Vesting Period”) that is dependent on the achievement of certain performance goals. Such performance share unit awards consist of two separate components. Performance share units that comprise the first component are subject to a three -year performance cycle. Performance share units that comprise the second component are further divided into three separate tranches, each of which is subject to a separate one -year performance cycle within the full three -year performance cycle. The vesting of the performance share units is generally dependent on (i) the achievement of the Company’s total shareholder return (“TSR”) performance goals relative to the TSR achievement of a peer group of companies (the “Peer Group”) over the applicable performance cycle, and (ii) the continued employment of the recipient of the performance share unit award throughout the Vesting Period. At the end of the Vesting Period, recipients receive dividend equivalents, if any, with respect to the number of vested performance share units. The vesting of units ranges from zero to 200 percent of the units granted depending on the Company’s TSR relative to the TSR of the Peer Group on the vesting date. The grant date fair value of performance share units was determined through use of the Monte Carlo simulation method. The Monte Carlo simulation method requires the use of highly subjective assumptions. Our key assumptions in the method include the price and the expected volatility of our stock and our self-determined Peer Group companies’ stock, risk free rate of return and cross-correlations between the Company and our Peer Group companies. The valuation model assumes dividends are immediately reinvested. As of December 31, 2019 , there was $13.6 million of unrecognized compensation cost related to unvested performance share units. That cost is expected to be recognized over a weighted-average period of 2.2 years . A summary of the status of our performance share units as of December 31, 2019 and changes in performance share units outstanding during the three months then ended is presented below: Three Months Ended (in thousands, except per share amounts) Shares Weighted Average Grant Date Fair Value per Share Non-vested performance share units outstanding at September 30, 2019 145 $ 62.66 Granted 259 43.40 Non-vested performance share units outstanding at December 31, 2019 404 $ 50.31 The weighted-average fair value calculations for performance share units granted during the three months ended December 31, 2019 and 2018 are based on the following weighted-average assumptions set forth in the table below. Three Months Ended December 31, 2019 Three Months Ended December 31, 2018 Risk-free interest rate (1) 1.6 % 2.7 % Expected stock volatility (2) 34.8 % 35.9 % Expected term (in years) 3.2 3.0 (1) The risk-free interest rate is based on U.S. Treasury securities for the expected term of the performance share units. (2) Expected volatilities are based on the daily closing price of our stock based upon historical experience over a period which approximates the expected term of the performance share units. |
EARNINGS (LOSSES) PER COMMON SH
EARNINGS (LOSSES) PER COMMON SHARE | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSSES) PER COMMON SHARE | NOTE 13 EARNINGS (LOSSES) PER COMMON 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, nonvested restricted stock and performance share units. 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 (in thousands, except per share amounts) 2019 2018 Numerator: Income from continuing operations $ 30,729 $ 8,364 Income (loss) from discontinued operations (124 ) 10,595 Net income 30,605 18,959 Adjustment for basic earnings per share Earnings allocated to unvested shareholders (991 ) (777 ) Numerator for basic earnings (loss) per share: From continuing operations 29,738 7,587 From discontinued operations (124 ) 10,595 29,614 18,182 Adjustment for diluted earnings (loss) per share: Effect of reallocating undistributed earnings of unvested shareholders — (1 ) Numerator for diluted earnings (loss) per share: From continuing operations 29,738 7,586 From discontinued operations (124 ) 10,595 $ 29,614 $ 18,181 Denominator: Denominator for basic earnings per share - weighted-average shares 108,555 109,142 Effect of dilutive shares from stock options, restricted stock and performance share units 169 283 Denominator for diluted earnings per share - adjusted weighted-average shares 108,724 109,425 Basic earnings per common share: Income from continuing operations $ 0.27 $ 0.07 Income from discontinued operations — 0.10 Net income $ 0.27 $ 0.17 Diluted earnings per common share: Income from continuing operations $ 0.27 $ 0.07 Income from discontinued operations — 0.10 Net income $ 0.27 $ 0.17 The following average 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 (in thousands, except per share amounts) 2019 2018 Shares excluded from calculation of diluted earnings (loss) per share 3,413 2,089 Weighted-average price per share $ 61.02 $ 67.25 |
FAIR VALUE MEASUREMENT OF FINAN
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS | NOTE 14 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS We have certain assets and liabilities that are required to be measured and disclosed at fair value. 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. The assets held in a Non-Qualified Supplemental Savings Plan are carried at fair value, which totaled $16.1 million at December 31, 2019 and $15.7 million at September 30, 2019 . 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 Unaudited Condensed Consolidated Statements of Operations. The securities are recorded at fair value. Our non-financial assets, such as intangible assets, goodwill and property, plant and equipment, are recorded at fair value when acquired in a business combination or when an impairment charge is recognized. If measured at fair value in the Unaudited Condensed Consolidated Balance Sheets, these would generally be classified within Level 2 or 3 of the fair value hierarchy. The majority of cash equivalents are invested in highly liquid money-market mutual funds invested primarily in direct or indirect obligations of the U.S. Government. The carrying amount of cash and cash equivalents approximates fair value due to the short maturity of those investments. The carrying value of other current assets, accrued liabilities and other liabilities approximated fair value at December 31, 2019 and September 30, 2019 . The following table summarizes our assets and liabilities measured at fair value presented in our Unaudited Condensed Consolidated Balance Sheet as of December 31, 2019 : (in thousands) Fair Value Level 1 Level 2 Level 3 Recurring fair value measurements: Short-term investments: Certificates of deposit $ 6,643 $ — $ 6,643 $ — Corporate and municipal debt securities 22,978 — 22,978 — U.S. government and federal agency securities 27,423 27,423 — — Total short-term investments 57,044 27,423 29,621 — Cash and cash equivalents 355,010 355,010 — — Investments 19,087 18,794 293 — Other current assets 35,618 35,618 — — Other assets 3,687 3,687 — — Total assets measured at fair value $ 470,446 $ 440,532 $ 29,914 $ — Liabilities: Contingent earnout liability $ 19,873 $ — $ — $ 19,873 At December 31, 2019 , our financial instruments measured at fair value 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 is included in other assets. For these items, quoted current market prices are readily available. Additionally, the fair value of the contingent consideration associated with the acquisition of MOTIVE Drilling Technologies, Inc. in fiscal year 2017 is zero , as of December 31, 2019 . As this was the final quarter under the terms of the contingency agreement, the fair value was calculated using actual financial results. These inputs are classified as Level 1. At December 31, 2019 , assets measured at fair value using 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 unobservable inputs consist of potential earnout payments associated with the acquisition of DrillScan and AJC in fiscal year 2019. 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: (in thousands) 2019 2018 Net liabilities at September 30, $ 18,373 $ 11,160 Additions 1,500 673 Total gains or losses: Included in earnings — 314 Net liabilities at December 31, $ 19,873 $ 12,147 The following table provides quantitative information (in thousands) about our Level 3 unobservable inputs at December 31, 2019 : Fair Value Valuation Technique Unobservable Input Unobservable Input Range Weighted Average (1) $6,000 Monte Carlo simulation Discount rate 2.8 % Revenue Volatility 24.4 % Risk free rate 1.9 % $13,873 Probability Analysis Discount rate 3.0 % Payment amounts $3,000 - $7,000 $ 4,800 Probabilities 40% - 54% 47 % (1) The weighted average of the payment amounts and the probabilities (Level 3 unobservable inputs), associated with the contingent consideration valued using probability analysis, were weighted by the relative undiscounted fair value of payment amounts and of probability payment amounts, respectively. The above significant unobservable inputs are subject to change based on changes in economic and market conditions . The use of significant unobservable inputs creates uncertainty in the measurement of fair value as of the reporting date. The significant unobservable inputs used in the fair value measurement of the contingent consideration using Monte Carlo simulation are (i) discount rate, (ii) revenue volatility and (iii) risk-free rate. Significant increases or decreases in the discount rate and risk-free rate in isolation would result in a significantly lower or higher fair value measurement. Significant changes in revenue volatility in isolation would result in a significantly lower or higher fair value measurement. The significant unobservable inputs used in the fair value measurement of the contingent consideration using probability analysis are (i) discount rate, (ii) payment amounts and (iii) probabilities. Significant increases or decreases in the discount rate in isolation would result in a significantly lower or higher fair value measurement. Significant increases or decreases in the payment amounts or probabilities in isolation would result in a significantly higher or lower fair value measurement. It is not possible for us to predict the effect of future economic or market conditions on our estimated fair values. The following information presents the supplemental fair value information about long-term fixed-rate debt at December 31, 2019 and September 30, 2019 : (in millions) December 31, 2019 September 30, 2019 Carrying value of long-term fixed-rate debt $ 479.4 $ 479.4 Fair value of long-term fixed-rate debt 532.4 526.4 The fair value for the $487.1 million fixed-rate debt is based on broker quotes. The notes are classified within Level 2 as they are not actively traded in markets. The estimated fair value of our investments, reflected on our Unaudited Condensed Consolidated Balance Sheets as Investments, is based on Level 1 inputs. As of December 31, 2019 , we recorded a gain of $2.8 million , which resulted from the increase in the fair value of our investments from September 30, 2019 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 15 EMPLOYEE BENEFIT PLANS Components of Net Periodic Benefit Cost The following provides information at December 31, 2019 and 2018 , related to the Company-sponsored domestic defined benefit pension plan, the Helmerich & Payne, Inc. Employee Retirement Plan (the “Pension Plan”): Three Months Ended (in thousands) 2019 2018 Interest cost $ 1,097 $ 1,097 Expected return on plan assets (1,381 ) (1,386 ) Recognized net actuarial loss 669 292 Net pension expense $ 385 $ 3 Employer Contributions We did no t contribute to the Pension Plan during the three months ended December 31, 2019 . For the remainder of fiscal year 2020 , we do not expect minimum contributions required by law to be needed; however, we may make contributions during the remainder of fiscal year 2020 if needed to fund unexpected distributions in lieu of liquidating pension assets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 COMMITMENTS AND CONTINGENCIES Purchase Commitments Equipment, parts and supplies are ordered in advance to promote efficient construction and capital improvement progress. At December 31, 2019 , we had purchase commitments for equipment, parts and supplies of approximately $11.1 million . Lease Obligations Refer to Note 6—Leases for additional information on our lease obligations. Guarantee Arrangements 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. Contingencies 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 or loss 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. HPIDC, our wholly-owned subsidiary and the parent company of our Venezuelan subsidiary, has a lawsuit pending in the United States District Court for the District of Columbia against the Bolivarian Republic of Venezuela, Petroleos de Venezuela, S.A. and PDVSA Petroleo, S.A., seeking damages for the taking of their Venezuelan drilling business in violation of international law. 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. In October 2017, an employee of HPIDC suffered personal injury and subsequently brought a lawsuit against the operator. Pursuant to the terms of the drilling contract between HPIDC and the operator, HPIDC indemnified the operator in the lawsuit, subject to certain limitations. A settlement agreement was reached with the operator. As of September 30, 2019, we accrued $9.5 million for this lawsuit, which was subsequently paid out during the three months ended December 31, 2019. 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. |
BUSINESS SEGMENTS AND GEOGRAPHI
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION | NOTE 17 BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION Description of the Business We are a global contract drilling company based in Tulsa, Oklahoma with operations in all major U.S. onshore basins as well as South America and the Middle East. Our contract drilling operations consist mainly of contracting Company-owned drilling equipment primarily to large oil and gas exploration companies. We believe we are the recognized industry leader in drilling as well as technological innovation. As of December 31, 2019 , our contract drilling services business includes the following reportable operating segments: U.S. Land, Offshore, International Land and H&P Technologies. This is consistent with the manner in which our chief operating decision maker evaluates performance and allocates resources. Additionally, during the fourth quarter of fiscal year 2019, we migrated our FlexApp offerings into our H&P Technologies segment. The activity of our FlexApps was previously included in our U.S. Land segment. All segment disclosures have been restated, as practicable, for these segment changes. Our real estate operations, our incubator program for new research and development projects, and our wholly-owned captive insurance company are included in "Other". Consolidated revenues and expenses reflect the elimination of intercompany transactions. Each reportable operating segment is a strategic business unit that is managed separately, and consolidated revenues and expenses reflect the elimination of all material intercompany transactions. Other includes additional non-reportable operating segments. External revenues included in “Other” primarily consist of rental income. Segment Performance 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 amortization • Allocated general and administrative costs • Asset impairment charges but excludes gain on sale of assets and corporate selling, general and administrative costs and corporate depreciation. 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. Summarized financial information of our reportable segments for the three months ended December 31, 2019 and 2018 is shown in the following tables: Three Months Ended December 31, 2019 (in thousands) U.S. Land Offshore International Land H&P Technologies Other Eliminations Total External Sales $ 508,828 $ 40,255 $ 46,462 $ 15,853 $ 3,259 $ — $ 614,657 Intersegment — — — 2,699 7,740 (10,439 ) — Total Sales 508,828 40,255 46,462 18,552 10,999 (10,439 ) 614,657 Segment Operating Income (Loss) 56,690 6,328 3,115 (4,551 ) (1,237 ) 60,345 Three Months Ended December 31, 2018 (in thousands) U.S. Land (1) Offshore International Land H&P Technologies (1) Other Eliminations Total External Sales $ 619,425 $ 36,910 $ 66,287 $ 14,736 $ 3,240 $ — $ 740,598 Intersegment — — — — — — — Total Sales 619,425 36,910 66,287 14,736 3,240 — 740,598 Segment Operating Income (Loss) 75,748 7,168 6,630 (6,381 ) 1,554 — 84,719 (1) Prior period information has been restated to reflect the transfer of FlexApp revenue and the related costs from U.S. Land to H&P Technologies. Certain FlexApp revenue not separately priced in drilling contracts, and recorded in the U.S. Land segment, was impracticable to retrospectively quantify, and as such was not restated. The following table reconciles segment operating income per the tables above to income from continuing operations before income taxes as reported on the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended (in thousands) 2019 2018 Segment operating income $ 60,345 $ 84,719 Gain on sale of assets 4,279 5,545 Corporate selling, general and administrative costs and corporate depreciation (33,256 ) (35,975 ) Operating income from continuing operations 31,368 54,289 Other income (expense) Interest and dividend income 2,214 2,450 Interest expense (6,100 ) (4,720 ) Gain (loss) on investment securities 2,821 (42,844 ) Gain on sale of subsidiary 14,963 — Other (399 ) 541 Total unallocated amounts 13,499 (44,573 ) Income from continuing operations before income taxes $ 44,867 $ 9,716 The following table presents total assets by reportable segment: (in thousands) December 31, September 30, Total assets (1) U.S. Land $ 4,601,633 $ 5,099,583 Offshore 109,564 102,442 International Land 353,681 217,094 H&P Technologies 189,371 184,558 Other 31,723 32,532 5,285,972 5,636,209 Investments and corporate operations 555,538 203,306 Total assets from continuing operations 5,841,510 5,839,515 Discontinued operations — — $ 5,841,510 $ 5,839,515 (1) Assets by segment exclude investments in subsidiaries and intersegment activity. The following table presents revenues from external customers by country based on the location of service provided: Three Months Ended (in thousands) 2019 2018 Operating revenues United States $ 566,815 $ 674,001 Argentina 40,609 41,605 Bahrain 4,684 2,528 Colombia 996 17,426 Other Foreign 1,553 5,038 Total $ 614,657 $ 740,598 Refer to Note 11—Revenue from Contracts with Customers for additional information regarding the recognition of revenue upon adoption of ASC 606. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information 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 “SEC”) 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 2019 Annual Report on Form 10-K and other current filings with the SEC. 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. |
Principles of Consolidation | Principles of Consolidation The unaudited consolidated financial statements include the accounts of Helmerich & Payne, Inc. and its domestic and foreign subsidiaries. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the fiscal year are included in the unaudited condensed consolidated statements of operations and comprehensive income (loss) from the date the Company gains control until the date when the Company ceases to control the subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash on hand, demand deposits with banks and all highly liquid investments with original maturities of three months or less. Approximately $315.8 million of cash and cash equivalents resides in accounts in the United States and the remaining $39.2 million are in other countries. Our cash, cash equivalents and short-term investments are subject to potential credit risk, and certain of our cash accounts carry balances greater than the federally insured limits. We had restricted cash of $39.3 million and $34.1 million at December 31, 2019 and 2018 , respectively, and $35.0 million and $41.8 million at September 30, 2019 and 2018 , respectively. Of the total at December 31, 2019 and September 30, 2019 , $3.5 million and $3.0 million , respectively, is related to the acquisition of drilling technology companies, $2.0 million as of both fiscal period ends is from the additional capitalization of the captive insurance company, $33.7 million and $30.0 million , respectively, represents an additional amount management has elected to restrict for the purpose of potential insurance claims in our wholly-owned captive insurance company, and $0.1 million at December 31, 2019 is for other restricted purposes. The restricted amounts are primarily invested in short-term money market securities. |
Leases | Leases We lease various offices, warehouses, equipment and vehicles. Rental contracts are typically made for fixed periods of 1 to 15 years but may have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. Up until the end of fiscal year 2019, leases of property, plant and equipment were classified as either finance or operating leases. Payments made under operating leases (net of any incentives received from the lessor) were charged to the income statement on a straight-line basis over the period of the lease (“levelized lease cost”). Beginning October 1, 2019, leases are recognized as a right-of-use asset and a corresponding liability within accrued liabilities and other non-current liabilities at the date at which the leased asset is available for use by the Company. Each lease payment is allocated between the liability and finance cost. The finance cost is recognized over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis for finance type leases and as the difference between the levelized lease cost and the finance cost for operating leases. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • Fixed payments (including in-substance fixed payments), less any lease incentives receivable • Variable lease payments that are based on an index or a rate • Amounts expected to be payable by the lessee under residual value guarantees • The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and • Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate is used, which is the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Right-of-use assets are measured at cost and are comprised of the following: • The amount of the initial measurement of lease liability • Any lease payments made at or before the commencement date less any lease incentives received • Any initial direct costs, and • Asset retirement obligations related to that lease, as applicable. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets are comprised of IT-equipment and office furniture. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). The assessment is reviewed if a |
Recently Issued Accounting Updates | Recently Issued Accounting Updates Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASUs") to the FASB Accounting Standards Codification ("ASC"). We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable, clarifications of ASUs listed below, immaterial, or already adopted by the Company. The following table provides a brief description of recent accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Recently Adopted Accounting Pronouncements ASU No. 2016-02, Leases (Topic 842) and related ASUs issued subsequent ASU No. 2016-02 requires organizations that lease assets — referred to as “lessees” — to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. Lessor accounting remains substantially similar to current U.S. GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 mandates a modified retrospective transition method of adoption with an option to use certain practical expedients. October 1, 2019 We adopted this ASU during the first quarter of fiscal year 2020, as required. Refer to Note 6—Leases for additional information. ASU No. 2018-15, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract This ASU aims to reduce complexity in the accounting for costs of implementing a cloud computing service arrangement. ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This update is effective for annual and interim periods beginning after December 15, 2019. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. October 1, 2019 We early adopted this ASU during the first quarter of fiscal year 2020 on a prospective basis. The prospective impact was not material to our unaudited condensed consolidated financial statements and disclosures. Standards that are not yet adopted as of December 31, 2019 ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) and related ASUs issued subsequent This 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. October 1, 2020 We are currently evaluating the impact the new guidance may have on our condensed consolidated financial statements and disclosures. ASU No. 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans—General (Topic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans This ASU amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit, pension and other postretirement plans. This update is effective for annual and interim periods ending after December 15, 2020. October 1, 2021 We are currently evaluating the impact the new guidance may have on our condensed consolidated financial statements and disclosures. ASU No. 2019-12, Financial Instruments – Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions related to Topic 740. The ASU also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This update is effective for annual and interim periods beginning after December 15, 2020. Early adoption of the amendment is permitted, including adoption in any interim period for public entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. October 1, 2021 We are currently evaluating the impact the new guidance may have on our condensed consolidated financial statements and disclosures. |
Self-Insurance | <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-left:0px;text-indent:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-top:13px;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;font-style:italic;">Self-Insurance</font></div><div style="line-height:120%;padding-top:13px;text-indent:48px;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">We self-insure a significant portion of expected losses relating to workers&#8217; compensation, general liability and automobile liability. Generally, deductibles range from </font><font style="font-family:Arial;font-size:9pt;">$1 million</font><font style="font-family:Arial;font-size:9pt;"> to </font><font style="font-family:Arial;font-size:9pt;">$10 million</font><font style="font-family:Arial;font-size:9pt;"> per occurrence depending on the coverage and whether a claim occurs outside or inside of the United States. Insurance is purchased over deductibles to reduce our exposure to catastrophic events. Estimates are recorded for incurred outstanding liabilities for workers&#8217; compensation, general liability claims and claims that are incurred but not reported. Estimates are based on adjusters' estimates, historical experience and statistical methods commonly used within the insurance industry that we believe are reliable.&#160;We have also engaged a third-party actuary to perform a review of our domestic casualty losses as well as losses in our captive insurance company.&#160;Nonetheless, insurance estimates include certain assumptions and management judgments regarding the frequency and severity of claims, claim development and settlement practices. Unanticipated changes in these factors may produce materially different amounts of expense that would be reported under these programs.</font></div></div> |
International Land Drilling Risks | International Land Drilling Risks International Land drilling operations may significantly contribute to our revenues and net operating income. There can be no assurance that we will be able to successfully conduct such operations, and a failure to do so may have an adverse effect on our financial position, results of operations, and cash flows. Also, the success of our international land operations will be subject to numerous contingencies, some of which are beyond management’s control. These contingencies include general and regional economic conditions, fluctuations in currency exchange rates, modified exchange controls, changes in international regulatory requirements and international employment issues, risk of expropriation of real and personal property and the burden of complying with foreign laws. Additionally, in the event that extended labor strikes occur or a country experiences significant political, economic or social instability, we could experience shortages in labor and/or material and supplies necessary to operate some of our drilling rigs, thereby potentially causing an adverse material effect on our business, financial condition and results of operations. In Argentina, while our dayrate is denominated in U.S. dollars, we are paid in Argentine pesos. The Argentine branch of one of our second-tier subsidiaries 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 also has a history of implementing currency controls which restrict the conversion and repatriation of U.S. dollars, including controls that were implemented in September 2019 and are presently in effect. As a result of these currency controls, our ability to remit funds from our Argentine subsidiary to its U.S. parent has been limited. As of December 31, 2019 , our cash balance in Argentina was $30.5 million . Furthermore, the Argentine government has also instituted price controls on crude oil, diesel and gasoline prices and instituted an exchange rate freeze in connection with those prices. Argentina’s economy is 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 subsidiaries 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 three months ended December 31, 2019 and 2018 , we experienced an aggregate foreign currency gain of $1.0 million and an aggregate foreign currency loss of $3.9 million , respectively. 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 three months ended December 31, 2019 , approximately 7.8 percent of our operating revenues were generated from international locations in our contract drilling business compared to 8.9 percent during the three months ended December 31, 2018 . During the three months ended December 31, 2019 , approximately 87.0 percent of operating revenues from international locations were from operations in South America compared to 89.1 percent during the three months ended December 31, 2018 . 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Restricted Cash and Cash Equivalents | The restricted cash and cash equivalents are reflected within the following line items on the Unaudited Condensed Consolidated Balance Sheets: December 31, September 30, (in thousands) 2019 2018 2019 2018 Cash $ 355,010 $ 228,462 $ 347,943 $ 284,355 Restricted Cash Prepaid expenses and other 35,618 30,246 31,291 39,830 Other assets 3,687 3,882 3,737 2,000 Total cash, cash equivalents, and restricted cash $ 394,315 $ 262,590 $ 382,971 $ 326,185 |
Description of Recent Accounting Pronouncements and Analysis of the Effects on the Financial Statements | The following table provides a brief description of recent accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Recently Adopted Accounting Pronouncements ASU No. 2016-02, Leases (Topic 842) and related ASUs issued subsequent ASU No. 2016-02 requires organizations that lease assets — referred to as “lessees” — to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. Lessor accounting remains substantially similar to current U.S. GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 mandates a modified retrospective transition method of adoption with an option to use certain practical expedients. October 1, 2019 We adopted this ASU during the first quarter of fiscal year 2020, as required. Refer to Note 6—Leases for additional information. ASU No. 2018-15, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract This ASU aims to reduce complexity in the accounting for costs of implementing a cloud computing service arrangement. ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This update is effective for annual and interim periods beginning after December 15, 2019. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. October 1, 2019 We early adopted this ASU during the first quarter of fiscal year 2020 on a prospective basis. The prospective impact was not material to our unaudited condensed consolidated financial statements and disclosures. Standards that are not yet adopted as of December 31, 2019 ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) and related ASUs issued subsequent This 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. October 1, 2020 We are currently evaluating the impact the new guidance may have on our condensed consolidated financial statements and disclosures. ASU No. 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans—General (Topic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans This ASU amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit, pension and other postretirement plans. This update is effective for annual and interim periods ending after December 15, 2020. October 1, 2021 We are currently evaluating the impact the new guidance may have on our condensed consolidated financial statements and disclosures. ASU No. 2019-12, Financial Instruments – Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions related to Topic 740. The ASU also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This update is effective for annual and interim periods beginning after December 15, 2020. Early adoption of the amendment is permitted, including adoption in any interim period for public entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. October 1, 2021 We are currently evaluating the impact the new guidance may have on our condensed consolidated financial statements and disclosures. The change in accounting policy affected the following items in the balance sheet on October 1, 2019: (in thousands) September 30, 2019 Adjustments October 1, 2019 Other Noncurrent Assets: Operating lease right-of-use asset $ — $ 56,071 $ 56,071 Current Liabilities: Accrued liabilities — 16,277 16,277 Noncurrent Liabilities: Other — 39,794 39,794 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment as of December 31, 2019 and September 30, 2019 consisted of the following: (in thousands) Estimated Useful Lives December 31, 2019 September 30, 2019 Contract drilling services equipment 4 - 15 years $ 7,739,064 $ 7,881,323 Tubulars 4 years 611,730 618,310 Real estate properties 10 - 45 years 72,512 72,507 Other 2 - 23 years 463,962 471,803 Construction in progress (1) 135,142 117,761 9,022,410 9,161,704 Accumulated depreciation (4,610,051 ) (4,659,620 ) Property, plant and equipment, net $ 4,412,359 $ 4,502,084 (1) Included in construction in progress are costs for projects in progress to upgrade or refurbish certain rigs in our existing fleet. Additionally, we include other capital maintenance purchase-orders that are open/in process. As these various projects are completed, the costs are then classified to their appropriate useful life category. |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Effect of the Change in Accounting Policy | The following table provides a brief description of recent accounting pronouncements and our analysis of the effects on our financial statements: Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Recently Adopted Accounting Pronouncements ASU No. 2016-02, Leases (Topic 842) and related ASUs issued subsequent ASU No. 2016-02 requires organizations that lease assets — referred to as “lessees” — to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. Lessor accounting remains substantially similar to current U.S. GAAP. In addition, disclosures of leasing activities are to be expanded to include qualitative along with specific quantitative information. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. ASU 2016-02 mandates a modified retrospective transition method of adoption with an option to use certain practical expedients. October 1, 2019 We adopted this ASU during the first quarter of fiscal year 2020, as required. Refer to Note 6—Leases for additional information. ASU No. 2018-15, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract This ASU aims to reduce complexity in the accounting for costs of implementing a cloud computing service arrangement. ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This update is effective for annual and interim periods beginning after December 15, 2019. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. October 1, 2019 We early adopted this ASU during the first quarter of fiscal year 2020 on a prospective basis. The prospective impact was not material to our unaudited condensed consolidated financial statements and disclosures. Standards that are not yet adopted as of December 31, 2019 ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) and related ASUs issued subsequent This 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. October 1, 2020 We are currently evaluating the impact the new guidance may have on our condensed consolidated financial statements and disclosures. ASU No. 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans—General (Topic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans This ASU amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit, pension and other postretirement plans. This update is effective for annual and interim periods ending after December 15, 2020. October 1, 2021 We are currently evaluating the impact the new guidance may have on our condensed consolidated financial statements and disclosures. ASU No. 2019-12, Financial Instruments – Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This ASU simplifies the accounting for income taxes by removing certain exceptions related to Topic 740. The ASU also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This update is effective for annual and interim periods beginning after December 15, 2020. Early adoption of the amendment is permitted, including adoption in any interim period for public entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. October 1, 2021 We are currently evaluating the impact the new guidance may have on our condensed consolidated financial statements and disclosures. The change in accounting policy affected the following items in the balance sheet on October 1, 2019: (in thousands) September 30, 2019 Adjustments October 1, 2019 Other Noncurrent Assets: Operating lease right-of-use asset $ — $ 56,071 $ 56,071 Current Liabilities: Accrued liabilities — 16,277 16,277 Noncurrent Liabilities: Other — 39,794 39,794 |
Lease Position and Recognized Right-of-Use Assets | Lease Position (in thousands) October 1, 2019 December 31, 2019 Operating lease commitments disclosed 62,218 57,341 Discounted using the lessee's incremental borrowing rate at the date of initial application 57,323 52,847 (Less): short-term leases recognized on a straight-line basis as expense (1,252 ) (657 ) Lease liability recognized $ 56,071 $ 52,190 Of which: Current lease liabilities $ 16,277 $ 15,287 Non-current lease liabilities 39,794 36,903 The recognized right-of-use assets relate to the following types of assets: (in thousands) October 1, 2019 December 31, 2019 Properties $ 52,188 $ 48,691 Equipment 3,652 3,298 Other 231 201 Total right-of-use assets $ 56,071 $ 52,190 |
Certain Information Related to Lease Costs and Other Information Related to Operating Leases | The table below presents certain information related to the weighted average remaining lease terms and weighted average discount rates for our operating leases as of December 31, 2019 . Three Months Ended Weighted average remaining lease term 9.6 Weighted average discount rate 2.9 % The table below presents certain information related to the lease costs for our operating leases for the three months ended December 31, 2019 . (in thousands) Three Months Ended Operating lease cost $ 4,270 Short-term lease cost 607 Total lease cost $ 4,877 |
Future Minimum Rental Payments Required under Operating Leases | Future minimum rental payments required under operating leases having initial or remaining non-cancelable lease terms in excess of one year at December 31, 2019 (in thousands) are as follows: Fiscal Year Amount 2020 $ 12,661 2021 10,082 2022 8,585 2023 7,658 2024 7,242 Thereafter 11,113 Total $ 57,341 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Arising from Business Acquisitions | Intangible assets arising from business acquisitions consisted of the following: December 31, 2019 September 30, 2019 (in thousands) Weighted Average Estimated Useful Lives Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible asset: Developed technology 15 years $ 89,096 $ 11,841 $ 77,255 $ 89,096 $ 10,256 $ 78,840 Intellectual property 13 years 1,500 19 1,481 — — — Trade name 20 years 5,865 605 5,260 5,865 522 5,343 Customer relationships 5 years 4,000 1,667 2,333 4,000 1,467 2,533 $ 100,461 $ 14,132 $ 86,329 $ 98,961 $ 12,245 $ 86,716 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Components of Unsecured Long-Term Debt Outstanding | We had the following unsecured long-term debt outstanding with maturities shown in the following table: December 31, 2019 September 30, 2019 (in thousands) Face Amount Unamortized Discount and Debt Issuance Cost Book Value Face Amount Unamortized Book Value Unsecured senior notes: Due March 19, 2025 $ 487,148 $ (7,793 ) $ 479,355 $ 487,148 $ (7,792 ) $ 479,356 487,148 (7,793 ) 479,355 487,148 (7,792 ) 479,356 Less long-term debt due within one year — — — — — — Long-term debt $ 487,148 $ (7,793 ) $ 479,355 $ 487,148 $ (7,792 ) $ 479,356 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive loss were as follows: (in thousands) December 31, September 30, Pre-tax amounts: Unrealized actuarial loss $ (36,415 ) $ (37,084 ) $ (36,415 ) $ (37,084 ) After-tax amounts: Unrealized actuarial loss $ (28,119 ) $ (28,635 ) $ (28,119 ) $ (28,635 ) |
Summary of the Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax, by Component | The following is a summary of the changes in accumulated other comprehensive loss, net of tax, related to the defined benefit pension plan for the three months ended December 31, 2019 : (in thousands) Three Months Ended Balance at September 30, 2019 $ (28,635 ) Activity during the period Amounts reclassified from accumulated other comprehensive income 516 Net current-period other comprehensive income 516 Balance at December 31, 2019 $ (28,119 ) |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract Assets and Liabilities | The following table summarizes the balances of our contract assets and liabilities at the dates indicated: (in thousands) December 31, 2019 September 30, 2019 Contract assets $ 3,024 $ 2,151 (in thousands) December 31, 2019 Contract liabilities balance at September 30, 2019 $ 23,354 Payment received/accrued and deferred 11,098 Revenue recognized during the period (9,340 ) Contract liabilities balance at December 31, 2019 $ 25,112 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Compensation Cost for Stock-Based Payment Arrangements | A summary of compensation cost for stock-based payment arrangements recognized in contract drilling services operating expense and selling, general and administrative expense is as follows: Three Months Ended (in thousands) 2019 2018 Stock-based compensation expense Stock options $ 571 $ 1,416 Restricted stock 7,370 5,742 Performance share units 2,260 — $ 10,201 $ 7,158 |
Summary of Stock Option Activity | A summary of stock option activity under all existing long-term incentive plans for the three months ended December 31, 2019 is presented in the following table: Three Months Ended December 31, 2019 (in thousands, except per share amounts and years) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Aggregate Intrinsic Value Outstanding at September 30, 2019 3,238 $ 60.86 Exercised (202) 38.02 Forfeited/Expired (8) 38.02 Outstanding at December 31, 2019 3,028 $ 62.44 5.30 $ — Vested and expected to vest at December 31, 2019 3,028 $ 62.44 5.30 $ — Exercisable at December 31, 2019 2,632 $ 62.44 4.93 $ — |
Summary of Restricted Stock Awards and Performance Share Units and Changes in Restricted Stock and Performance Share Units Outstanding | A summary of the status of our performance share units as of December 31, 2019 and changes in performance share units outstanding during the three months then ended is presented below: Three Months Ended (in thousands, except per share amounts) Shares Weighted Average Grant Date Fair Value per Share Non-vested performance share units outstanding at September 30, 2019 145 $ 62.66 Granted 259 43.40 Non-vested performance share units outstanding at December 31, 2019 404 $ 50.31 A summary of the status of our restricted stock awards as of December 31, 2019 and changes in non-vested restricted stock outstanding during the three months then ended is presented below: Three Months Ended (in thousands, except per share amounts) Shares Weighted Average Grant Date Fair Value per Share Non-vested restricted stock outstanding at September 30, 2019 1,085 $ 61.28 Granted 727 41.88 Vested (1) (414 ) 62.13 Forfeited (2 ) 60.59 Non-vested restricted stock outstanding at December 31, 2019 1,396 $ 50.93 (1) The number of restricted stock awards vested includes shares that we withheld on behalf of our employees to satisfy the statutory tax withholding requirements. |
Weighted-Average Assumptions Used in the Calculation of the Fair Value of Awards | The weighted-average fair value calculations for performance share units granted during the three months ended December 31, 2019 and 2018 are based on the following weighted-average assumptions set forth in the table below. Three Months Ended December 31, 2019 Three Months Ended December 31, 2018 Risk-free interest rate (1) 1.6 % 2.7 % Expected stock volatility (2) 34.8 % 35.9 % Expected term (in years) 3.2 3.0 (1) The risk-free interest rate is based on U.S. Treasury securities for the expected term of the performance share units. (2) Expected volatilities are based on the daily closing price of our stock based upon historical experience over a period which approximates the expected term of the performance share units. |
EARNINGS (LOSSES) PER COMMON _2
EARNINGS (LOSSES) PER COMMON SHARE (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended (in thousands, except per share amounts) 2019 2018 Numerator: Income from continuing operations $ 30,729 $ 8,364 Income (loss) from discontinued operations (124 ) 10,595 Net income 30,605 18,959 Adjustment for basic earnings per share Earnings allocated to unvested shareholders (991 ) (777 ) Numerator for basic earnings (loss) per share: From continuing operations 29,738 7,587 From discontinued operations (124 ) 10,595 29,614 18,182 Adjustment for diluted earnings (loss) per share: Effect of reallocating undistributed earnings of unvested shareholders — (1 ) Numerator for diluted earnings (loss) per share: From continuing operations 29,738 7,586 From discontinued operations (124 ) 10,595 $ 29,614 $ 18,181 Denominator: Denominator for basic earnings per share - weighted-average shares 108,555 109,142 Effect of dilutive shares from stock options, restricted stock and performance share units 169 283 Denominator for diluted earnings per share - adjusted weighted-average shares 108,724 109,425 Basic earnings per common share: Income from continuing operations $ 0.27 $ 0.07 Income from discontinued operations — 0.10 Net income $ 0.27 $ 0.17 Diluted earnings per common share: Income from continuing operations $ 0.27 $ 0.07 Income from discontinued operations — 0.10 Net income $ 0.27 $ 0.17 |
Shares Attributable to Outstanding Equity Awards Excluded from the Calculation of Diluted Earnings Per Share | The following average 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 (in thousands, except per share amounts) 2019 2018 Shares excluded from calculation of diluted earnings (loss) per share 3,413 2,089 Weighted-average price per share $ 61.02 $ 67.25 |
FAIR VALUE MEASUREMENT OF FIN_2
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value | The following table summarizes our assets and liabilities measured at fair value presented in our Unaudited Condensed Consolidated Balance Sheet as of December 31, 2019 : (in thousands) Fair Value Level 1 Level 2 Level 3 Recurring fair value measurements: Short-term investments: Certificates of deposit $ 6,643 $ — $ 6,643 $ — Corporate and municipal debt securities 22,978 — 22,978 — U.S. government and federal agency securities 27,423 27,423 — — Total short-term investments 57,044 27,423 29,621 — Cash and cash equivalents 355,010 355,010 — — Investments 19,087 18,794 293 — Other current assets 35,618 35,618 — — Other assets 3,687 3,687 — — Total assets measured at fair value $ 470,446 $ 440,532 $ 29,914 $ — Liabilities: Contingent earnout liability $ 19,873 $ — $ — $ 19,873 |
Reconciliation of Changes in the Fair Value of Financial Assets and Liabilities Classified as Level 3 | 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: (in thousands) 2019 2018 Net liabilities at September 30, $ 18,373 $ 11,160 Additions 1,500 673 Total gains or losses: Included in earnings — 314 Net liabilities at December 31, $ 19,873 $ 12,147 |
Quantitative Information about Level 3 Unobservable Inputs | The following table provides quantitative information (in thousands) about our Level 3 unobservable inputs at December 31, 2019 : Fair Value Valuation Technique Unobservable Input Unobservable Input Range Weighted Average (1) $6,000 Monte Carlo simulation Discount rate 2.8 % Revenue Volatility 24.4 % Risk free rate 1.9 % $13,873 Probability Analysis Discount rate 3.0 % Payment amounts $3,000 - $7,000 $ 4,800 Probabilities 40% - 54% 47 % (1) The weighted average of the payment amounts and the probabilities (Level 3 unobservable inputs), associated with the contingent consideration valued using probability analysis, were weighted by the relative undiscounted fair value of payment amounts and of probability payment amounts, respectively. |
Supplemental Fair Value Information about Long-Term Fixed-Rate Debt | The following information presents the supplemental fair value information about long-term fixed-rate debt at December 31, 2019 and September 30, 2019 : (in millions) December 31, 2019 September 30, 2019 Carrying value of long-term fixed-rate debt $ 479.4 $ 479.4 Fair value of long-term fixed-rate debt 532.4 526.4 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The following provides information at December 31, 2019 and 2018 , related to the Company-sponsored domestic defined benefit pension plan, the Helmerich & Payne, Inc. Employee Retirement Plan (the “Pension Plan”): Three Months Ended (in thousands) 2019 2018 Interest cost $ 1,097 $ 1,097 Expected return on plan assets (1,381 ) (1,386 ) Recognized net actuarial loss 669 292 Net pension expense $ 385 $ 3 |
BUSINESS SEGMENTS AND GEOGRAP_2
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Financial Information of Reportable Segments | Summarized financial information of our reportable segments for the three months ended December 31, 2019 and 2018 is shown in the following tables: Three Months Ended December 31, 2019 (in thousands) U.S. Land Offshore International Land H&P Technologies Other Eliminations Total External Sales $ 508,828 $ 40,255 $ 46,462 $ 15,853 $ 3,259 $ — $ 614,657 Intersegment — — — 2,699 7,740 (10,439 ) — Total Sales 508,828 40,255 46,462 18,552 10,999 (10,439 ) 614,657 Segment Operating Income (Loss) 56,690 6,328 3,115 (4,551 ) (1,237 ) 60,345 Three Months Ended December 31, 2018 (in thousands) U.S. Land (1) Offshore International Land H&P Technologies (1) Other Eliminations Total External Sales $ 619,425 $ 36,910 $ 66,287 $ 14,736 $ 3,240 $ — $ 740,598 Intersegment — — — — — — — Total Sales 619,425 36,910 66,287 14,736 3,240 — 740,598 Segment Operating Income (Loss) 75,748 7,168 6,630 (6,381 ) 1,554 — 84,719 (1) Prior period information has been restated to reflect the transfer of FlexApp revenue and the related costs from U.S. Land to H&P Technologies. Certain FlexApp revenue not separately priced in drilling contracts, and recorded in the U.S. Land segment, was impracticable to retrospectively quantify, and as such was not restated. |
Reconciliation of Segment Operating Income (Loss) to Income from Continuing Operations Before Income Taxes | The following table reconciles segment operating income per the tables above to income from continuing operations before income taxes as reported on the Unaudited Condensed Consolidated Statements of Operations: Three Months Ended (in thousands) 2019 2018 Segment operating income $ 60,345 $ 84,719 Gain on sale of assets 4,279 5,545 Corporate selling, general and administrative costs and corporate depreciation (33,256 ) (35,975 ) Operating income from continuing operations 31,368 54,289 Other income (expense) Interest and dividend income 2,214 2,450 Interest expense (6,100 ) (4,720 ) Gain (loss) on investment securities 2,821 (42,844 ) Gain on sale of subsidiary 14,963 — Other (399 ) 541 Total unallocated amounts 13,499 (44,573 ) Income from continuing operations before income taxes $ 44,867 $ 9,716 |
Total Assets by Reportable Segment | The following table presents total assets by reportable segment: (in thousands) December 31, September 30, Total assets (1) U.S. Land $ 4,601,633 $ 5,099,583 Offshore 109,564 102,442 International Land 353,681 217,094 H&P Technologies 189,371 184,558 Other 31,723 32,532 5,285,972 5,636,209 Investments and corporate operations 555,538 203,306 Total assets from continuing operations 5,841,510 5,839,515 Discontinued operations — — $ 5,841,510 $ 5,839,515 (1) Assets by segment exclude investments in subsidiaries and intersegment activity. |
Revenues from External Customers by Country | The following table presents revenues from external customers by country based on the location of service provided: Three Months Ended (in thousands) 2019 2018 Operating revenues United States $ 566,815 $ 674,001 Argentina 40,609 41,605 Bahrain 4,684 2,528 Colombia 996 17,426 Other Foreign 1,553 5,038 Total $ 614,657 $ 740,598 |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)location | Dec. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of international locations | location | 4 | ||
Proceeds from sale of subsidiary | $ 15,056 | $ 0 | |
Gain on sale of subsidiary | $ 14,963 | $ 0 | |
TerraVici | Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Percent of outstanding capital stock transferred to the purchaser | 100.00% | 100.00% | |
Proceeds from sale of subsidiary | $ 15,100 | ||
Gain on sale of subsidiary | $ 15,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES - Narrative (Details) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2019USD ($)greographical_area | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 355,010 | $ 228,462 | $ 347,943 | $ 284,355 |
Restricted cash | 39,300 | 34,100 | 35,000 | $ 41,800 |
Restricted cash from initial capitalization of captive insurance company | 2,000 | 2,000 | ||
Additional cash restricted at the election of management for potential insurance claims | 33,700 | 30,000 | ||
Restricted cash from other purposes | 100 | |||
Underwriting expenses | $ 8,500 | |||
Cumulative inflation rate before a country is considered highly inflationary (as a percent) | 100.00% | |||
Aggregate foreign currency gain (loss) | $ 1,000 | $ (3,900) | ||
Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Rental contract period | 1 year | |||
Insurance coverage deductibles range for claims which occur outside or inside the United States | $ 1,000 | |||
Number of geographical areas operating in (more than) | greographical_area | 1 | |||
Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Rental contract period | 15 years | |||
Insurance coverage deductibles range for claims which occur outside or inside the United States | $ 10,000 | |||
Intercompany Eliminations | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Premium revenues and expenses | 7,700 | |||
United States | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents | 315,800 | |||
International Locations | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 39,200 | |||
International Locations | Operating Revenue | Geographic Concentration Risk | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Concentration percentage | 7.80% | 8.90% | ||
Argentina | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Cash | $ 30,500 | |||
International Land | South America | International Locations | Segment Operating Revenue | Geographic Concentration Risk | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Concentration percentage | 87.00% | 89.10% | ||
Acquisition of Drilling Technology Companies | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Restricted cash | $ 3,500 | $ 3,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES - Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Summary of Significant Accounting Policies [Line Items] | ||||
Cash | $ 355,010 | $ 347,943 | $ 228,462 | $ 284,355 |
Restricted Cash | 39,300 | 35,000 | 34,100 | 41,800 |
Total cash, cash equivalents, and restricted cash | 394,315 | 382,971 | 262,590 | 326,185 |
Prepaid expenses and other | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Restricted Cash | 35,618 | 31,291 | 30,246 | 39,830 |
Other assets | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Restricted Cash | $ 3,687 | $ 3,737 | $ 3,882 | $ 2,000 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Aug. 21, 2019 | Nov. 01, 2018 | Dec. 31, 2019 | Sep. 30, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 82,786 | $ 82,786 | ||
DrillScan | ||||
Business Acquisition [Line Items] | ||||
Consideration given | $ 32,700 | |||
Contingent consideration | 17,700 | |||
Fair value of total assets acquired | 36,300 | |||
Fair value of total liabilities assumed | 3,600 | |||
Goodwill | 14,900 | |||
Identifiable intangible assets | $ 19,100 | |||
AJC | ||||
Business Acquisition [Line Items] | ||||
Consideration given | $ 3,400 | |||
Goodwill | $ 3,100 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) | Dec. 31, 2019zeroBs. / $ | Sep. 30, 2018Bs. / $ |
Discontinued Operations and Disposal Groups [Abstract] | ||
Foreign exchange rate (in bolivars per dollar) | 10 | |
Number of zeros eliminated from the old currency | zero | 5 | |
DICOM floating rate (in bolivars per dollar) | 46,621 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9,022,410 | $ 9,161,704 |
Accumulated depreciation | (4,610,051) | (4,659,620) |
Property, plant and equipment, net | 4,412,359 | 4,502,084 |
Contract drilling services equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7,739,064 | 7,881,323 |
Contract drilling services equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 4 years | |
Contract drilling services equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 15 years | |
Tubulars | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 4 years | |
Property, plant and equipment, gross | $ 611,730 | 618,310 |
Real estate properties | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 72,512 | 72,507 |
Real estate properties | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Real estate properties | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 45 years | |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 463,962 | 471,803 |
Other | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 2 years | |
Other | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 23 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 135,142 | $ 117,761 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 128,200 | $ 140,000 |
Abandonments included in depreciation | 800 | 1,000 |
Gain on sale of assets | $ 4,279 | $ 5,545 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2019USD ($)renewal_option | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Weighted average incremental borrowing rate applied to operating lease liabilities | 2.90% | |
Rent expense | $ | $ 4.9 | |
Rent expense | $ | $ 3.7 | |
Tulsa Corporate Office Lease | ||
Lessee, Lease, Description [Line Items] | ||
Number of renewal options | renewal_option | 2 | |
Renewal option term | 5 years | |
Tulsa Industrial Facility Lease | ||
Lessee, Lease, Description [Line Items] | ||
Number of renewal options | renewal_option | 2 | |
Renewal option term | 2 years |
LEASES - Effect of the Change i
LEASES - Effect of the Change in Accounting Policy (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 |
Other Noncurrent Assets: | ||
Operating lease right-of-use asset | $ 52,190 | $ 56,071 |
Current Liabilities: | ||
Accrued liabilities | 15,287 | 16,277 |
Noncurrent Liabilities: | ||
Other | $ 36,903 | 39,794 |
Adjustments | ||
Other Noncurrent Assets: | ||
Operating lease right-of-use asset | 56,071 | |
Current Liabilities: | ||
Accrued liabilities | 16,277 | |
Noncurrent Liabilities: | ||
Other | $ 39,794 |
LEASES - Lease Position (Detail
LEASES - Lease Position (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 |
Leases [Abstract] | ||
Operating lease commitments disclosed | $ 57,341 | $ 62,218 |
Discounted using the lessee's incremental borrowing rate at the date of initial application | 52,847 | 57,323 |
(Less): short-term leases recognized on a straight-line basis as expense | (657) | (1,252) |
Lease liability recognized | 52,190 | 56,071 |
Current lease liabilities | 15,287 | 16,277 |
Non-current lease liabilities | $ 36,903 | $ 39,794 |
LEASES - Recognized Right-of-Us
LEASES - Recognized Right-of-Use Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 |
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | $ 52,190 | $ 56,071 |
Properties | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | 48,691 | 52,188 |
Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | 3,298 | 3,652 |
Other | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | $ 201 | $ 231 |
LEASES - Certain Information Re
LEASES - Certain Information Related to Lease Costs for Operating Leases (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 4,270 |
Short-term lease cost | 607 |
Total lease cost | $ 4,877 |
LEASES - Other Information Rela
LEASES - Other Information Related to Operating Leases (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term | 9 years 7 months 6 days |
Weighted average discount rate | 2.90% |
LEASES - Future Minimum Rental
LEASES - Future Minimum Rental Payments Required under Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 12,661 | |
2021 | 10,082 | |
2022 | 8,585 | |
2023 | 7,658 | |
2024 | 7,242 | |
Thereafter | 11,113 | |
Total | $ 57,341 | $ 62,218 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets Arising from Business Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Intangible Assets | ||
Gross Carrying Amount | $ 100,461 | $ 98,961 |
Accumulated Amortization | 14,132 | 12,245 |
Net | $ 86,329 | 86,716 |
Developed technology | ||
Intangible Assets | ||
Weighted Average Estimated Useful Lives | 15 years | |
Gross Carrying Amount | $ 89,096 | 89,096 |
Accumulated Amortization | 11,841 | 10,256 |
Net | $ 77,255 | 78,840 |
Intellectual property | ||
Intangible Assets | ||
Weighted Average Estimated Useful Lives | 13 years | |
Gross Carrying Amount | $ 1,500 | 0 |
Accumulated Amortization | 19 | 0 |
Net | $ 1,481 | 0 |
Trade name | ||
Intangible Assets | ||
Weighted Average Estimated Useful Lives | 20 years | |
Gross Carrying Amount | $ 5,865 | 5,865 |
Accumulated Amortization | 605 | 522 |
Net | $ 5,260 | 5,343 |
Customer relationships | ||
Intangible Assets | ||
Weighted Average Estimated Useful Lives | 5 years | |
Gross Carrying Amount | $ 4,000 | 4,000 |
Accumulated Amortization | 1,667 | 1,467 |
Net | $ 2,333 | $ 2,533 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 3 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Additions to goodwill | $ 0 | |||
Impairments of goodwill | 0 | |||
Goodwill | 82,786,000 | $ 82,786,000 | ||
Amortization expense | 1,900,000 | $ 1,400,000 | ||
Expected amortization in 2020 | 7,100,000 | |||
Expected amortization in 2021 | 7,200,000 | |||
Expected amortization in 2022 | $ 7,200,000 | |||
Expected amortization in 2023 | 6,500,000 | |||
Expected amortization in 2024 | $ 6,400,000 |
DEBT - Components of Unsecured
DEBT - Components of Unsecured Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Long-term debt, gross | ||
Face Amount | $ 487,148 | $ 487,148 |
Unamortized Discount and Debt Issuance Cost | (7,793) | (7,792) |
Book Value | 479,355 | 479,356 |
Less long-term debt due within one year | ||
Face Amount | 0 | 0 |
Unamortized Discount and Debt Issuance Cost | 0 | 0 |
Book Value | 0 | 0 |
Long-term debt | ||
Face Amount | 487,148 | 487,148 |
Unamortized Discount and Debt Issuance Cost | (7,793) | (7,792) |
Book Value | 479,355 | 479,356 |
HPIDC 2025 Notes | ||
Long-term debt, gross | ||
Face Amount | 487,148 | 487,148 |
Unamortized Discount and Debt Issuance Cost | (7,793) | (7,792) |
Book Value | 479,355 | 479,356 |
Long-term debt | ||
Face Amount | $ 487,148 | $ 487,148 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Nov. 13, 2018USD ($) | Dec. 31, 2019USD ($)number_of_letters_of_credit | Sep. 30, 2019USD ($) | Sep. 27, 2019USD ($) | Dec. 20, 2018USD ($) | Mar. 19, 2015USD ($) |
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 479,355,000 | $ 479,356,000 | ||||
Letters of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Number of letters of credit outstanding | number_of_letters_of_credit | 2 | |||||
HPIDC 2025 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 500,000,000 | |||||
Interest rate | 4.65% | |||||
Debt redemption amount | $ 14,600,000 | |||||
Company 2025 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 487,100,000 | |||||
Interest rate | 4.65% | |||||
Aggregate principal amount | $ 12,900,000 | $ 12,900,000 | ||||
Company 2025 Notes | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 500,000,000 | |||||
2018 Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 750,000,000 | |||||
Increase in aggregate commitments subject to satisfaction of certain commitments from new or existing lenders | $ 300,000,000 | |||||
Maximum limit of priority debt on net worth | 17.50% | |||||
Borrowings outstanding | 0 | |||||
Available borrowing capacity | $ 750,000,000 | |||||
2018 Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee rate | 0.075% | |||||
2018 Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee rate | 0.20% | |||||
Total debt to total capitalization ratio | 50.00% | |||||
2018 Credit Facility | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate spread | 0.875% | |||||
2018 Credit Facility | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate spread | 1.50% | |||||
2018 Credit Facility | Letters of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 75,000,000 | |||||
Letter of Credit - Instrument 1 | Letters of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Letters of credit outstanding | $ 24,800,000 | |||||
Letter of Credit - Instrument 2 | Letters of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Letters of credit outstanding | 2,100,000 | |||||
Unsecured Standalone Line of Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 20,000,000 | |||||
Borrowings outstanding | $ 14,100,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Effective income tax rates as compared to the U.S. Federal income tax rate | ||
Income tax benefit | $ 14,138 | $ 1,352 |
Effective tax rate | 31.50% | 13.90% |
Tax benefit related to the reversal of an expired uncertain tax liability | $ 2,400 | |
Tax benefit related to the reversal of an uncertain tax liability | $ 1,700 |
SHAREHOLDERS' EQUITY - Narrativ
SHAREHOLDERS' EQUITY - Narrative (Details) - $ / shares | Dec. 13, 2019 | Dec. 02, 2019 | Sep. 04, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Stockholders' Equity Note [Abstract] | |||||
Number of common shares authorized to be repurchased (up to) (in shares) | 4,000,000,000,000 | ||||
Purchases of common shares (in shares) | 0 | 0 | |||
Cash dividends declared (in dollars per share) | $ 0.71 | $ 0.71 | $ 0.71 | $ 0.71 | |
Cash dividends paid (in dollars per share) | $ 0.71 |
SHAREHOLDERS' EQUITY - Componen
SHAREHOLDERS' EQUITY - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
After-tax amounts: | ||
Accumulated other comprehensive income (loss) | $ (28,119) | $ (28,635) |
Unrealized Actuarial Loss | ||
Pre-tax amounts: | ||
Accumulated other comprehensive income (loss) | (36,415) | (37,084) |
After-tax amounts: | ||
Accumulated other comprehensive income (loss) | (28,119) | (28,635) |
Accumulated Other Comprehensive Income (Loss) | ||
Pre-tax amounts: | ||
Accumulated other comprehensive income (loss) | (36,415) | (37,084) |
After-tax amounts: | ||
Accumulated other comprehensive income (loss) | $ (28,119) | $ (28,635) |
SHAREHOLDERS' EQUITY - Summary
SHAREHOLDERS' EQUITY - Summary of the Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax, by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | $ 4,012,223 | $ 4,382,735 |
Other comprehensive income | 516 | 225 |
Balance | 3,975,537 | $ 4,326,238 |
Defined Benefit Pension Plan | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (28,635) | |
Amounts reclassified from accumulated other comprehensive loss | 516 | |
Other comprehensive income | 516 | |
Balance | $ (28,119) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019USD ($)month | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |||
Early termination revenue | $ 0.1 | $ 7.1 | |
Capitalized cost | $ 14.3 | $ 13.9 | |
Number of months of unsatisfied performance obligations represent in our backlog relating to contract that currently contain month-to-month terms | month | 1 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Remaining Performance Obligations (Details) $ in Billions | Dec. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 1.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 0.7 |
Revenue from Contracts with Customers | |
Revenue, remaining performance obligation, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 0.3 |
Revenue from Contracts with Customers | |
Revenue, remaining performance obligation, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 0.1 |
Revenue from Contracts with Customers | |
Revenue, remaining performance obligation, period | 12 months |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 3,024 | $ 2,151 |
Change in Contract with Customer, Liability [Abstract] | ||
Contract liabilities balance at beginning of period | 23,354 | |
Payment received/accrued and deferred | 11,098 | |
Revenue recognized during the period | (9,340) | |
Contract liabilities balance at period end | $ 25,112 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019USD ($)componenttrancheshares | Dec. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 10,201 | $ 7,158 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of units vested | 0.00% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of units vested | 200.00% | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period over which awards expire | 10 years | |
Stock-based compensation expense | $ 571 | 1,416 |
Total intrinsic value of options exercised | 300 | 7,600 |
Unrecognized compensation cost related to stock options | $ 2,700 | |
Weighted average period over which unrecognized compensation cost is expected to be recognized | 1 year 9 months 18 days | |
Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 7,370 | 5,742 |
Unrecognized compensation cost related to non-option awards | $ 57,800 | |
Weighted average period over which unrecognized compensation cost is expected to be recognized | 3 years 1 month 6 days | |
Vesting period | 4 years | |
Performance Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 2,260 | 0 |
Unrecognized compensation cost related to non-option awards | $ 13,600 | |
Weighted average period over which unrecognized compensation cost is expected to be recognized | 2 years 2 months 12 days | |
Vesting period | 3 years | |
Performance components | component | 2 | |
Performance Share Units - First Component | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period over which awards expire | 3 years | |
Performance Share Units - Second Component | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period over which awards expire | 3 years | |
Number of tranches | tranche | 3 | |
Performance cycle period of each tranche | 1 year | |
Contract Drilling Services Operating Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 2,400 | 1,600 |
Selling, General and Administrative Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 7,800 | $ 5,600 |
2016 Plan | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted (in shares) | shares | 0 | |
2016 Plan | Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted (in shares) | shares | 727,009 | |
2016 Plan | Performance Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted (in shares) | shares | 258,857 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Compensation Cost for Stock-Based Payment Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 10,201 | $ 7,158 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 571 | 1,416 |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 7,370 | 5,742 |
Performance share units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 2,260 | $ 0 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Stock Option Activity (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Shares | |
Outstanding (in shares) | shares | 3,238 |
Exercised (in shares) | shares | (202) |
Forfeited/Expired (in shares) | shares | (8) |
Outstanding (in shares) | shares | 3,028 |
Vested and expected to vest at period end (in shares) | shares | 3,028 |
Exercisable at period end (in shares) | shares | 2,632 |
Weighted Average Exercise Price | |
Outstanding (in dollars per share) | $ / shares | $ 60.86 |
Exercised (in dollars per share) | $ / shares | 38.02 |
Forfeited/Expired (in dollars per share) | $ / shares | 38.02 |
Outstanding (in dollars per share) | $ / shares | 62.44 |
Vested and expected to vest at period end (in dollars per share) | $ / shares | 62.44 |
Exercisable at period end (in dollars per share) | $ / shares | $ 62.44 |
Weighted Average Remaining Contractual Term in Years | |
Outstanding (in years) | 5 years 3 months 18 days |
Vested and expected to vest (in years) | 5 years 3 months 18 days |
Exercisable at the end of the period (in years) | 4 years 11 months 4 days |
Aggregate Intrinsic Value | |
Outstanding at period end | $ | $ 0 |
Vested and expected to vest at period end | $ | 0 |
Exercisable at period end | $ | $ 0 |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of the Status of Restricted Stock Awards and Changes in Restricted Stock Outstanding (Details) - Restricted Stock Awards shares in Thousands | 3 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Outstanding (in shares) | shares | 1,085 |
Granted (in shares) | shares | 727 |
Vested (in shares) | shares | (414) |
Forfeited (in shares) | shares | (2) |
Outstanding (in shares) | shares | 1,396 |
Weighted Average Grant Date Fair Value per Share | |
Outstanding (in dollars per share) | $ / shares | $ 61.28 |
Granted (in dollars per share) | $ / shares | 41.88 |
Vested (in dollars per share) | $ / shares | 62.13 |
Forfeited (in dollars per share) | $ / shares | 60.59 |
Outstanding (in dollars per share) | $ / shares | $ 50.93 |
STOCK-BASED COMPENSATION - Su_4
STOCK-BASED COMPENSATION - Summary of the Status of Performance Share Units and Changes in Performance Share Units Outstanding (Details) - Performance Share Units shares in Thousands | 3 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Outstanding (in shares) | shares | 145 |
Granted (in shares) | shares | 259 |
Outstanding (in shares) | shares | 404 |
Weighted Average Grant Date Fair Value per Share | |
Outstanding (in dollars per share) | $ / shares | $ 62.66 |
Granted (in dollars per share) | $ / shares | 43.40 |
Outstanding (in dollars per share) | $ / shares | $ 50.31 |
STOCK-BASED COMPENSATION - Weig
STOCK-BASED COMPENSATION - Weighted-Average Assumptions Used in the Calculation of the Fair Value of Awards (Details) - Performance Share Units | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.60% | 2.70% |
Expected stock volatility | 34.80% | 35.90% |
Expected term | 3 years 2 months 12 days | 3 years |
EARNINGS (LOSSES) PER COMMON _3
EARNINGS (LOSSES) PER COMMON SHARE - Computation of Basic and DIluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | ||
Income from continuing operations | $ 30,729 | $ 8,364 |
Income (loss) from discontinued operations | (124) | 10,595 |
Net income | 30,605 | 18,959 |
Adjustment for basic earnings per share | ||
Earnings allocated to unvested shareholders | (991) | (777) |
Numerator for basic earnings (loss) per share: | ||
From continuing operations | 29,738 | 7,587 |
From discontinued operations | (124) | 10,595 |
Net income (loss) attributable to parent, basic | 29,614 | 18,182 |
Adjustment for diluted earnings (loss) per share: | ||
Effect of reallocating undistributed earnings of unvested shareholders | 0 | (1) |
Numerator for diluted earnings (loss) per share: | ||
From continuing operations | 29,738 | 7,586 |
From discontinued operations | (124) | 10,595 |
Net income (loss) attributable to parent, diluted | $ 29,614 | $ 18,181 |
Denominator: | ||
Denominator for basic earnings (loss) per share – weighted-average shares (in shares) | 108,555 | 109,142 |
Effect of dilutive shares from stock options, restricted stock and performance share units (in shares) | 169 | 283 |
Denominator for diluted earnings (loss) per share – adjusted weighted-average shares (in shares) | 108,724 | 109,425 |
Basic earnings per common share: | ||
Income from continuing operations (in dollars per share) | $ 0.27 | $ 0.07 |
Income from discontinued operations (in dollars per share) | 0 | 0.10 |
Net income (in dollars per share) | 0.27 | 0.17 |
Diluted earnings per common share: | ||
Income (loss) from continuing operations (in dollars per share) | 0.27 | 0.07 |
Income from discontinued operations (in dollars per share) | 0 | 0.10 |
Net income (in dollars per share) | $ 0.27 | $ 0.17 |
EARNINGS (LOSSES) PER COMMON _4
EARNINGS (LOSSES) PER COMMON SHARE - Shares Attributable to Outstanding Equity Awards Excluded from the Calculation of Diluted Earnings Per Share (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Shares excluded from calculation of diluted earnings (loss) per share (in shares) | 3,413 | 2,089 |
Weighted-average price per share (in dollars per share) | $ 61.02 | $ 67.25 |
FAIR VALUE MEASUREMENT OF FIN_3
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed-rate debt | $ 487,148,000 | $ 487,148,000 |
Gain resulting from increases in the fair value of investments | 2,800,000 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held in a non-qualified supplemental savings plan | 16,100,000 | $ 15,700,000 |
Level 2 | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed-rate debt | 487,100,000 | |
MOTIVE Drilling Technologies, Inc. | Level 3 | Recurring Fair Value Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ 0 |
FAIR VALUE MEASUREMENT OF FIN_4
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Summary of Assets and Liabilities Measured at Fair Value (Details) - Recurring Fair Value Measurements $ in Thousands | Dec. 31, 2019USD ($) |
Assets: | |
Short-term investments | $ 57,044 |
Cash and cash equivalents | 355,010 |
Investments | 19,087 |
Other current assets | 35,618 |
Other assets | 3,687 |
Total assets measured at fair value | 470,446 |
Liabilities: | |
Contingent earnout liability | 19,873 |
Level 1 | |
Assets: | |
Short-term investments | 27,423 |
Cash and cash equivalents | 355,010 |
Investments | 18,794 |
Other current assets | 35,618 |
Other assets | 3,687 |
Total assets measured at fair value | 440,532 |
Liabilities: | |
Contingent earnout liability | 0 |
Level 2 | |
Assets: | |
Short-term investments | 29,621 |
Cash and cash equivalents | 0 |
Investments | 293 |
Other current assets | 0 |
Other assets | 0 |
Total assets measured at fair value | 29,914 |
Liabilities: | |
Contingent earnout liability | 0 |
Level 3 | |
Assets: | |
Short-term investments | 0 |
Cash and cash equivalents | 0 |
Investments | 0 |
Other current assets | 0 |
Other assets | 0 |
Total assets measured at fair value | 0 |
Liabilities: | |
Contingent earnout liability | 19,873 |
Certificates of deposit | |
Assets: | |
Short-term investments | 6,643 |
Certificates of deposit | Level 1 | |
Assets: | |
Short-term investments | 0 |
Certificates of deposit | Level 2 | |
Assets: | |
Short-term investments | 6,643 |
Certificates of deposit | Level 3 | |
Assets: | |
Short-term investments | 0 |
Corporate and municipal debt securities | |
Assets: | |
Short-term investments | 22,978 |
Corporate and municipal debt securities | Level 1 | |
Assets: | |
Short-term investments | 0 |
Corporate and municipal debt securities | Level 2 | |
Assets: | |
Short-term investments | 22,978 |
Corporate and municipal debt securities | Level 3 | |
Assets: | |
Short-term investments | 0 |
U.S. government and federal agency securities | |
Assets: | |
Short-term investments | 27,423 |
U.S. government and federal agency securities | Level 1 | |
Assets: | |
Short-term investments | 27,423 |
U.S. government and federal agency securities | Level 2 | |
Assets: | |
Short-term investments | 0 |
U.S. government and federal agency securities | Level 3 | |
Assets: | |
Short-term investments | $ 0 |
FAIR VALUE MEASUREMENT OF FIN_5
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Reconciliation of Changes in the Fair Value of Financial Assets and Liabilities Classified as Level 3 (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in the fair value of our financial assets and liabilities | ||
Net liabilities | $ 18,373 | $ 11,160 |
Additions | 1,500 | 673 |
Total gains or losses included in earnings | 0 | 314 |
Net liabilities | $ 19,873 | $ 12,147 |
FAIR VALUE MEASUREMENT OF FIN_6
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Quantitative Information about Level 3 Unobservable Inputs (Details) - Level 3 | Dec. 31, 2019USD ($) |
Monte Carlo simulation | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 6,000,000 |
Monte Carlo simulation | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | 0.028 |
Monte Carlo simulation | Revenue Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | 0.244 |
Monte Carlo simulation | Risk free rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | 0.019 |
Probability Analysis | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value | $ 13,873,000 |
Probability Analysis | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | 0.030 |
Probability Analysis | Payment amounts | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | $ 3,000,000 |
Probability Analysis | Payment amounts | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | 4,800,000 |
Probability Analysis | Payment amounts | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | $ 7,000,000 |
Probability Analysis | Probabilities | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | 0.40 |
Probability Analysis | Probabilities | Weighted Average | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | 0.47 |
Probability Analysis | Probabilities | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Unobservable Input | 0.54 |
FAIR VALUE MEASUREMENT OF FIN_7
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Supplemental Fair Value Information about Long-Term Fixed-Rate Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Supplemental fair value information about long-term fixed-rate debt | ||
Carrying value of long-term fixed-rate debt | $ 479,355 | $ 479,356 |
Level 2 | ||
Supplemental fair value information about long-term fixed-rate debt | ||
Fair value of long-term fixed-rate debt | 532,400 | 526,400 |
Carrying Value | ||
Supplemental fair value information about long-term fixed-rate debt | ||
Carrying value of long-term fixed-rate debt | $ 479,400 | $ 479,400 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Components of the net periodic pension expense (benefit) | ||
Interest cost | $ 1,097 | $ 1,097 |
Expected return on plan assets | (1,381) | (1,386) |
Recognized net actuarial loss | 669 | 292 |
Net pension expense | $ 385 | $ 3 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Retirement Benefits [Abstract] | |
Employer contribution | $ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Loss Contingencies [Line Items] | ||
Purchase commitments for equipment, parts and supplies | $ 11.1 | |
HPIDC Employee Injury Lawsuit | ||
Loss Contingencies [Line Items] | ||
Accrual for lawsuit settlement | $ 9.5 |
BUSINESS SEGMENTS AND GEOGRAP_3
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Summary of Financial Information of Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 614,657 | $ 740,598 |
Segment Operating Income (Loss) | 31,368 | 54,289 |
U.S. Land | ||
Segment Reporting Information [Line Items] | ||
Revenues | 508,828 | 619,425 |
Offshore | ||
Segment Reporting Information [Line Items] | ||
Revenues | 40,255 | 36,910 |
International Land | ||
Segment Reporting Information [Line Items] | ||
Revenues | 46,462 | 66,287 |
H&P Technologies | ||
Segment Reporting Information [Line Items] | ||
Revenues | 15,853 | 14,736 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 3,259 | 3,240 |
Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Revenues | 614,657 | 740,598 |
Segment Operating Income (Loss) | 60,345 | 84,719 |
Operating Segment | U.S. Land | ||
Segment Reporting Information [Line Items] | ||
Revenues | 508,828 | 619,425 |
Segment Operating Income (Loss) | 56,690 | 75,748 |
Operating Segment | Offshore | ||
Segment Reporting Information [Line Items] | ||
Revenues | 40,255 | 36,910 |
Segment Operating Income (Loss) | 6,328 | 7,168 |
Operating Segment | International Land | ||
Segment Reporting Information [Line Items] | ||
Revenues | 46,462 | 66,287 |
Segment Operating Income (Loss) | 3,115 | 6,630 |
Operating Segment | H&P Technologies | ||
Segment Reporting Information [Line Items] | ||
Revenues | 18,552 | 14,736 |
Segment Operating Income (Loss) | (4,551) | (6,381) |
Operating Segment | Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 10,999 | 3,240 |
Segment Operating Income (Loss) | (1,237) | 1,554 |
Intersegment | ||
Segment Reporting Information [Line Items] | ||
Revenues | (10,439) | 0 |
Segment Operating Income (Loss) | 0 | |
Intersegment | U.S. Land | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Intersegment | Offshore | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Intersegment | International Land | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Intersegment | H&P Technologies | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,699 | 0 |
Intersegment | Other | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 7,740 | $ 0 |
BUSINESS SEGMENTS AND GEOGRAP_4
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Reconciliation of Segment Operating Income (Loss) to Income from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | ||
Gain on sale of assets | $ 4,279 | $ 5,545 |
Selling, general and administrative | 49,808 | 54,508 |
Operating income from continuing operations | 31,368 | 54,289 |
Other income (expense) | ||
Interest and dividend income | 2,214 | 2,450 |
Interest expense | (6,100) | (4,720) |
Gain (loss) on investment securities | 2,821 | (42,844) |
Gain on sale of subsidiary | 14,963 | 0 |
Other | (399) | 541 |
Total other income (expense) | 13,499 | (44,573) |
Income from continuing operations before income taxes | 44,867 | 9,716 |
Operating Segment | ||
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | ||
Operating income from continuing operations | 60,345 | 84,719 |
Segment Reconciling Items | ||
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | ||
Gain on sale of assets | 4,279 | 5,545 |
Corporate | ||
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | ||
Selling, general and administrative | $ (33,256) | $ (35,975) |
BUSINESS SEGMENTS AND GEOGRAP_5
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Total Assets by Reportable Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Segment Reporting Information [Line Items] | ||
Assets | $ 5,841,510 | $ 5,839,515 |
Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Assets | 5,841,510 | 5,839,515 |
Discontinued Operations | ||
Segment Reporting Information [Line Items] | ||
Assets | 0 | 0 |
Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 5,285,972 | 5,636,209 |
Investments and Corporate Operations | ||
Segment Reporting Information [Line Items] | ||
Assets | 555,538 | 203,306 |
U.S. Land | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 4,601,633 | 5,099,583 |
Offshore | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 109,564 | 102,442 |
International Land | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 353,681 | 217,094 |
H&P Technologies | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 189,371 | 184,558 |
Other | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 31,723 | $ 32,532 |
BUSINESS SEGMENTS AND GEOGRAP_6
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Revenues from External Customers by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 614,657 | $ 740,598 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenues | 566,815 | 674,001 |
Argentina | ||
Segment Reporting Information [Line Items] | ||
Revenues | 40,609 | 41,605 |
Bahrain | ||
Segment Reporting Information [Line Items] | ||
Revenues | 4,684 | 2,528 |
Colombia | ||
Segment Reporting Information [Line Items] | ||
Revenues | 996 | 17,426 |
Other Foreign | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,553 | $ 5,038 |
Uncategorized Items - hp-201912
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (38,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (38,000) |
Accounting Standards Update 2016-01 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (29,071,000) |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 29,071,000 |