Cover Page
Cover Page - shares | 9 Months Ended | |
Jun. 30, 2019 | Jul. 18, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-4221 | |
Entity Registrant Name | HELMERICH & PAYNE, INC. | |
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 ($0.10 par value) | |
Trading Symbol | HP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 109,433,698 | |
Entity Central Index Key | 0000046765 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 334,775 | $ 284,355 |
Short-term investments | 45,748 | 41,461 |
Accounts receivable, net of allowance of $4,837 and $6,217, respectively | 508,183 | 565,202 |
Inventories of materials and supplies, net | 150,126 | 158,134 |
Prepaid expenses and other | 77,406 | 66,398 |
Total current assets | 1,116,238 | 1,115,550 |
Investments | 48,291 | 98,696 |
Property, plant and equipment, net | 4,583,673 | 4,857,382 |
Other Noncurrent Assets: | ||
Goodwill | 67,902 | 64,777 |
Intangible assets, net | 69,093 | 73,207 |
Other assets | 12,182 | 5,255 |
Total other noncurrent assets | 149,177 | 143,239 |
Total assets | 5,897,379 | 6,214,867 |
Current Liabilities: | ||
Accounts payable | 134,077 | 132,664 |
Accrued liabilities | 256,449 | 244,504 |
Total current liabilities | 390,526 | 377,168 |
Noncurrent Liabilities: | ||
Long-term debt, net | 491,651 | 493,968 |
Deferred income taxes | 827,027 | 853,136 |
Other | 78,490 | 93,606 |
Noncurrent liabilities - discontinued operations | 14,631 | 14,254 |
Total noncurrent liabilities | 1,411,799 | 1,454,964 |
Commitments and Contingencies (Note 14) | ||
Shareholders' Equity: | ||
Common stock, $.10 par value, 160,000,000 shares authorized, 112,080,262 and 112,008,961 shares issued as of June 30, 2019 and September 30, 2018, respectively, and 109,433,198 and 108,993,718 shares outstanding as of June 30, 2019 and September 30, 2018, respectively | 11,208 | 11,201 |
Preferred stock, no par value, 1,000,000 shares authorized, no shares issued | 0 | 0 |
Additional paid-in capital | 501,585 | 500,393 |
Retained earnings | 3,750,785 | 4,027,779 |
Accumulated other comprehensive income (loss) | (16,085) | 16,550 |
Treasury stock, at cost, 2,647,064 shares and 3,015,243 shares as of June 30, 2019 and September 30, 2018, respectively | (152,439) | (173,188) |
Total shareholders’ equity | 4,095,054 | 4,382,735 |
Total liabilities and shareholders' equity | $ 5,897,379 | $ 6,214,867 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 4,837 | $ 6,217 |
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) | 112,080,262 | 112,008,961 |
Common stock, shares outstanding (in shares) | 109,433,198 | 108,993,718 |
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, shares (in shares) | 2,647,064 | 3,015,243 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating revenues | ||||
Operating revenues | $ 687,974 | $ 648,872 | $ 2,149,440 | $ 1,790,443 |
Operating costs and expenses | ||||
Contract drilling operating expenses, excluding depreciation and amortization | 443,114 | 443,087 | 1,372,426 | 1,199,422 |
Operating expenses applicable to other revenues | 1,414 | 1,424 | 4,308 | 3,728 |
Depreciation and amortization | 143,297 | 144,579 | 427,917 | 433,521 |
Asset impairment charge | 224,327 | 0 | 224,327 | 0 |
Research and development | 7,066 | 5,479 | 21,347 | 13,149 |
Selling, general and administrative | 46,590 | 52,310 | 144,604 | 147,005 |
Gain on sale of assets | (9,960) | (4,313) | (27,050) | (15,133) |
Total operating costs and expenses | 855,848 | 642,566 | 2,167,879 | 1,781,692 |
Operating income (loss) from continuing operations | (167,874) | 6,306 | (18,439) | 8,751 |
Operating income (loss) from continuing operations | ||||
Interest and dividend income | 2,349 | 2,109 | 6,861 | 5,680 |
Interest expense | (6,257) | (5,993) | (17,145) | (17,794) |
Loss on investment securities | (13,271) | 0 | (50,228) | 0 |
Other | (1,599) | (61) | (1,051) | 170 |
Total other income (expense) | (18,778) | (3,945) | (61,563) | (11,944) |
Income (loss) from continuing operations before income taxes | (186,652) | 2,361 | (80,002) | (3,193) |
Income tax provision (benefit) | (32,031) | 10,535 | (5,602) | (494,028) |
Income (loss) from continuing operations | (154,621) | (8,174) | (74,400) | 490,835 |
Income from discontinued operations before income taxes | 7,244 | 8,383 | 22,798 | 9,127 |
Income tax provision | 7,306 | 8,217 | 23,231 | 19,743 |
Income (loss) from discontinued operations | (62) | 166 | (433) | (10,616) |
Net income (loss) | $ (154,683) | $ (8,008) | $ (74,833) | $ 480,219 |
Basic earnings (loss) per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | $ (1.42) | $ (0.08) | $ (0.71) | $ 4.47 |
Loss from discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.10) |
Net income (loss) (in dollars per share) | (1.42) | (0.08) | (0.71) | 4.37 |
Diluted earnings (loss) per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | (1.42) | (0.08) | (0.71) | 4.45 |
Income (loss) from discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.10) |
Net income (loss) (in dollars per share) | $ (1.42) | $ (0.08) | $ (0.71) | $ 4.35 |
Weighted average shares outstanding (in thousands): | ||||
Basic (in shares) | 109,425 | 108,905 | 109,324 | 108,818 |
Diluted (in shares) | 109,425 | 108,905 | 109,324 | 109,338 |
Contract drilling | ||||
Operating revenues | ||||
Operating revenues | $ 684,788 | $ 637,548 | $ 2,139,798 | $ 1,763,939 |
Other | ||||
Operating revenues | ||||
Operating revenues | $ 3,186 | $ 11,324 | $ 9,642 | $ 26,504 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (154,683) | $ (8,008) | $ (74,833) | $ 480,219 |
Other comprehensive income, net of income taxes: | ||||
Unrealized appreciation on securities, net of income taxes of ($5.6) million and ($2.0) million for the three and nine months ended June 30, 2018, respectively | 0 | 13,826 | 0 | 5,657 |
Minimum pension liability adjustments, net of income taxes of ($0.1) million and ($0.2) million for the three and nine months ended June 30, 2019, respectively, and ($0.1) million and ($0.4) million for the three and nine months ended June 30, 2018, respectively | 226 | 337 | 675 | 985 |
Other comprehensive income | 226 | 14,163 | 675 | 6,642 |
Comprehensive income (loss) | $ (154,457) | $ 6,155 | $ (74,158) | $ 486,861 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized appreciation on securities, income taxes | $ 0 | $ (5.6) | $ 0 | $ (2) |
Minimum pension liability adjustments, income taxes | $ (0.2) | $ (0.2) | $ (0.1) | $ (0.3) |
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 |
Beginning balance (in shares) at Sep. 30, 2017 | 111,957,000 | |||||
Balance at beginning of period at Sep. 30, 2017 | $ 4,164,591 | $ 11,196 | $ 487,248 | $ 3,855,686 | $ 2,300 | $ (191,839) |
Beginning balance (in shares) at Sep. 30, 2017 | 3,353,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net loss | 480,219 | 480,219 | ||||
Other comprehensive income | 6,642 | 6,642 | ||||
Dividends declared | (231,932) | (231,932) | ||||
Exercise of employee stock options, net of shares withheld for employee taxes | 3,356 | (5,147) | $ 8,503 | |||
Exercise of employee stock options, net of shares withheld for employee taxes (in shares) | 1,000 | (152,000) | ||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (4,174) | $ 5 | (11,841) | $ 7,662 | ||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | 51,000 | (136,000) | ||||
Stock-based compensation | 23,472 | 23,472 | ||||
Cumulative effect adjustment for adoption of new accounting standard | ASU 2016-09 | 317 | 872 | (555) | |||
Ending balance (in shares) at Jun. 30, 2018 | 112,009,000 | |||||
Balance at end of period at Jun. 30, 2018 | 4,442,491 | $ 11,201 | 494,604 | 4,103,418 | 8,942 | $ (175,674) |
Ending balance (in shares) at Jun. 30, 2018 | 3,065,000 | |||||
Beginning balance (in shares) at Mar. 31, 2018 | 112,009,000 | |||||
Balance at beginning of period at Mar. 31, 2018 | 4,503,153 | $ 11,201 | 487,135 | 4,189,497 | (5,221) | $ (179,459) |
Beginning balance (in shares) at Mar. 31, 2018 | 3,132,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net loss | (8,008) | (8,008) | ||||
Other comprehensive income | 14,163 | 14,163 | ||||
Dividends declared | (78,071) | (78,071) | ||||
Exercise of employee stock options, net of shares withheld for employee taxes | 3,414 | (84) | $ 3,498 | |||
Exercise of employee stock options, net of shares withheld for employee taxes (in shares) | (62,000) | |||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (86) | (373) | $ 287 | |||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | (5,000) | |||||
Stock-based compensation | 7,926 | 7,926 | ||||
Ending balance (in shares) at Jun. 30, 2018 | 112,009,000 | |||||
Balance at end of period at Jun. 30, 2018 | $ 4,442,491 | $ 11,201 | 494,604 | 4,103,418 | 8,942 | $ (175,674) |
Ending balance (in shares) at Jun. 30, 2018 | 3,065,000 | |||||
Beginning balance (in shares) at Sep. 30, 2018 | 112,008,961 | 112,009,000 | ||||
Balance at beginning of period at Sep. 30, 2018 | $ 4,382,735 | $ 11,201 | 500,393 | 4,027,779 | 16,550 | $ (173,188) |
Beginning balance (in shares) at Sep. 30, 2018 | 3,015,243 | 3,015,000 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net loss | $ (74,833) | (74,833) | ||||
Other comprehensive income | 675 | 675 | ||||
Dividends declared | (235,433) | (235,433) | ||||
Exercise of employee stock options, net of shares withheld for employee taxes | 1,171 | (7,088) | $ 8,259 | |||
Exercise of employee stock options, net of shares withheld for employee taxes (in shares) | (147,000) | |||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (4,690) | $ 7 | (17,187) | $ 12,490 | ||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | 71,000 | (221,000) | ||||
Stock-based compensation | 25,467 | 25,467 | ||||
Reclassification of stranded tax effect for adoption of ASU No. 2018-02 (Note 2) | 0 | 4,239 | (4,239) | |||
Cumulative effect adjustment for adoption of new accounting standard | ASU 2014-09 | (38) | (38) | ||||
Cumulative effect adjustment for adoption of new accounting standard | ASU 2016-01 | $ 0 | 29,071 | (29,071) | |||
Ending balance (in shares) at Jun. 30, 2019 | 112,080,262 | 112,080,000 | ||||
Balance at end of period at Jun. 30, 2019 | $ 4,095,054 | $ 11,208 | 501,585 | 3,750,785 | (16,085) | $ (152,439) |
Ending balance (in shares) at Jun. 30, 2019 | 2,647,064 | 2,647,000 | ||||
Beginning balance (in shares) at Mar. 31, 2019 | 112,080,000 | |||||
Balance at beginning of period at Mar. 31, 2019 | $ 4,318,620 | $ 11,208 | 493,421 | 3,979,708 | (12,072) | $ (153,645) |
Beginning balance (in shares) at Mar. 31, 2019 | 2,668,000 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net loss | (154,683) | (154,683) | ||||
Other comprehensive income | 226 | 226 | ||||
Dividends declared | (78,479) | (78,479) | ||||
Exercise of employee stock options, net of shares withheld for employee taxes | 645 | (225) | $ 870 | |||
Exercise of employee stock options, net of shares withheld for employee taxes (in shares) | (15,000) | |||||
Vesting of restricted stock awards, net of shares withheld for employee taxes | (153) | (489) | $ 336 | |||
Vesting of restricted stock awards, net of shares withheld for employee taxes (in shares) | (6,000) | |||||
Stock-based compensation | 8,878 | 8,878 | ||||
Reclassification of stranded tax effect for adoption of ASU No. 2018-02 (Note 2) | $ 0 | 4,239 | (4,239) | |||
Ending balance (in shares) at Jun. 30, 2019 | 112,080,262 | 112,080,000 | ||||
Balance at end of period at Jun. 30, 2019 | $ 4,095,054 | $ 11,208 | $ 501,585 | $ 3,750,785 | $ (16,085) | $ (152,439) |
Ending balance (in shares) at Jun. 30, 2019 | 2,647,064 | 2,647,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | Jun. 05, 2019 | Mar. 06, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared (in dollars per share) | $ 0.71 | $ 0.71 | $ 0.71 | $ 0.71 | $ 2.13 | $ 2.11 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (74,833) | $ 480,219 |
Adjustment for loss from discontinued operations | 433 | 10,616 |
Income (loss) from continuing operations | (74,400) | 490,835 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 427,917 | 433,521 |
Asset impairment charge | 224,327 | 0 |
Amortization of debt discount and debt issuance costs | 1,176 | 798 |
Provision for bad debt | 544 | 598 |
Stock-based compensation | 25,467 | 23,472 |
Loss on investment securities | 50,228 | 0 |
Gain on sale of assets | (27,050) | (15,133) |
Deferred income tax benefit | (25,503) | (498,491) |
Other | 5,356 | 3,735 |
Change in assets and liabilities increasing (decreasing) cash: | ||
Accounts receivable | 63,002 | (87,508) |
Inventories of materials and supplies | 1,473 | (14,905) |
Prepaid expenses and other | (9,556) | (9,623) |
Other noncurrent assets | (5,899) | 6,105 |
Accounts payable | 276 | 6,513 |
Accrued liabilities | 8,110 | 40,668 |
Deferred income tax liability | 11 | (2,511) |
Other noncurrent liabilities | (6,052) | (6,496) |
Net cash provided by operating activities from continuing operations | 659,427 | 371,578 |
Net cash used in operating activities from discontinued operations | (56) | (150) |
Net cash provided by operating activities | 659,371 | 371,428 |
Cash flows from investing activities: | ||
Capital expenditures | (403,570) | (322,658) |
Purchase of short-term investments | (71,852) | (52,159) |
Payment for acquisition of business, net of cash acquired | (2,781) | (47,886) |
Proceeds from sale of short-term investments | 68,015 | 52,470 |
Proceeds from asset sales | 36,227 | 28,049 |
Net cash used in investing activities | (373,961) | (342,184) |
Cash flows from financing activities: | ||
Dividends paid | (235,058) | (230,368) |
Debt issuance costs paid | (3,912) | 0 |
Proceeds from stock option exercises | 2,901 | 5,160 |
Payments for employee taxes on net settlement of equity awards | (6,420) | (5,978) |
Payment of contingent consideration from acquisition of business | 0 | (10,625) |
Net cash used in financing activities | (242,489) | (241,811) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 42,921 | (212,567) |
Cash and cash equivalents and restricted cash, beginning of period | 326,185 | 560,509 |
Cash and cash equivalents and restricted cash, end of period | 369,106 | 347,942 |
Cash paid during the period: | ||
Interest paid | 12,794 | 11,888 |
Income tax paid, net | 11,213 | 4,633 |
Changes in accounts payable and accrued liabilities related to purchases of property, plant and equipment | $ 16,279 | $ 1,070 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | 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. Effective October 1, 2018, we implemented organizational changes, consistent with the manner in which our chief operating decision maker evaluates performance and allocates resources. Certain operations previously reported in “Other” within our segment disclosures are now managed and presented within the new H&P Technologies reportable segment. As a result, beginning with the reporting of first quarter 2019, our operations are organized into the following reportable business segments: U.S. Land, Offshore, International Land and H&P Technologies. Certain other corporate activities and our real estate operations are included in Other. All segment disclosures have been recast for these segment changes. Refer to Note 15 —Business Segments and Geographic Information for further details on H&P Technologies, our new reportable segment. Our U.S. Land operations are primarily located in Colorado, Louisiana, Ohio, Oklahoma, 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 (“U.A.E.”). 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 2019 Acquisition 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 a 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 business segment. The acquisition of AJC has been accounted for as a business combination in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, which requires the assets acquired and liabilities assumed to be recorded at their acquisition date fair values. The allocation of the purchase price includes goodwill of $3.1 million. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES | 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 2018 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. Certain prior period financial information has been recast to reflect the current year’s presentation as it relates to the new reportable segment, H&P Technologies, effective October 1, 2018. Refer to Note 15 –Business Segments and Geographic Information. Additionally, the prior comparative periods presented in the Unaudited Condensed Consolidated Financial Statements have been adjusted in accordance with the adoption of accounting standard updates included in the Recently Issued Accounting Updates table below. 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 upon consolidation. Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash on hand, demand deposits with banks and any highly liquid investment with an original maturity of three months or less. Approximately $318.9 million of cash and cash equivalents reside in accounts in the United States and the remaining $15.9 million are in other countries. Our cash, cash equivalents and short-term investments are subject to global economic as well as credit risk, and international accounts are subject to risks specific to the countries where they are located. Some of our U.S. bank accounts also carry balances greater than the federally insured limit. We had restricted cash of $34.3 million and $41.5 million at June 30, 2019 and 2018 , respectively, and $41.8 million and $39.1 million at September 30, 2018 and 2017 , respectively. Of the total at June 30, 2019 and September 30, 2018 , $3.0 million and $11.3 million , respectively, is related to the acquisition of drilling technology companies, $2.0 million as of each of June 30, 2019 and September 30, 2018 is from the initial capitalization of the captive insurance company, and $29.3 million and $28.5 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. The restricted amounts are primarily invested in short-term money market securities. See Recently Issued Accounting Updates below for changes to the presentation of restricted cash effective October 1, 2018 as a result of adopting Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The restricted cash and cash equivalents are reflected within the following line items on the Unaudited Condensed Consolidated Balance Sheets: June 30, September 30, (in thousands) 2019 2018 2018 2017 Cash $ 334,775 $ 306,426 $ 284,355 $ 521,375 Restricted Cash Prepaid expenses and other 30,543 34,614 39,830 32,439 Other assets 3,788 6,902 2,000 6,695 Total cash, cash equivalents, and restricted cash $ 369,106 $ 347,942 $ 326,185 $ 560,509 Drilling Revenues Contract drilling revenues are comprised of daywork drilling contracts for which the related revenues and expenses are recognized as services are performed and collection is reasonably assured and it is determined to be probable that a significant reversal will not occur. For certain contracts, we receive payments contractually designated for the mobilization of rigs and other drilling equipment. Mobilization payments received, and direct costs incurred for the mobilization, are deferred and recognized on a straight-line basis over the term of the related drilling contract. Costs incurred to relocate rigs and other drilling equipment to areas in which a contract has not been secured are expensed as incurred. Refer to Note 9 —Revenue from Contracts with Customers for additional information regarding our contract drilling services revenue. Recently Issued Accounting Updates Changes to U.S. GAAP are established by the FASB in the form of Accounting Standards Updates ("ASU's") 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. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. Regardless of whether the change to the terms or conditions of the award requires modification accounting, the existing disclosure requirements and other aspects of U.S. GAAP associated with modification, such as earnings per share, continue to apply. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required. There was no impact to our unaudited condensed consolidated financial statements and disclosures. ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The ASU changes how employers that sponsor defined benefit pension and/or other postretirement benefit plans present the net periodic benefit cost in the income statement. Employers should present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Employers should present the other components of the net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. The amendments are applied retrospectively for the presentation of the service cost component and other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required, on a retrospective basis. The retrospective impact was not material to our unaudited condensed consolidated financial statements and disclosures. ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash The ASU requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending cash amounts for the periods shown on the statement of cash flows. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required, on a retrospective basis. The retrospective impact on the unaudited condensed consolidated statement of cash flows for the nine months ended June 30, 2018 was an increase of $2.4 million in net cash provided by operating activities. ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory Under prior U.S. GAAP, the tax effects of intra-entity asset transfers (intercompany sales) were deferred until the transferred asset was sold to a third party or otherwise recovered through use. This was an exception to the principle in ASC 740, Income Taxes, that generally requires comprehensive recognition of current and deferred income taxes. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. As a result, a reporting entity recognizes the tax expense from the sale of the asset in the seller's tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer's jurisdiction is also recognized at the time of the transfer. The new guidance does not apply to intra-entity transfers of inventory. The income tax consequences from the sale of inventory from one member of a consolidated entity to another will continue to be deferred until the inventory is sold to a third party. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required. There was no material impact to our unaudited condensed consolidated financial statements and disclosures. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The ASU was intended to reduce diversity in practice in presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required, on a retrospective basis. The retrospective impact on the unaudited condensed consolidated statement of cash flows for the nine months ended June 30, 2018 is a reclassification of $10.6 million from net cash provided by operating activities to net cash used in financing activities. ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. At adoption, a cumulative-effect adjustment to beginning retained earnings is recorded to reflect the fair value of such investments at the date of adoption in retained earnings rather than accumulated other comprehensive income. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required. As a result, changes in the fair value of our equity investments have been recognized in net income since the date of adoption, and our future results of operations will continue to be subject to stock market fluctuations for these investments. The cumulative catch up impact that was recorded to the beginning balance of retained earnings at October 1, 2018 was a reclassification of $44.0 million ($29.1 million after-tax) of cumulative gains from the beginning balance of accumulated other comprehensive income. ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). The update outlined a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and superseded other revenue recognition guidance, including industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled for those goods or services. The update also required disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Furthermore, as part of Topic 606, the FASB introduced ASC 340-40, Other Assets and Deferred Costs, which provides guidance on the capitalization of contract related costs that are not within the scope of other authoritative literature. Companies could use either a full retrospective or a modified retrospective approach to adopt the updates. October 1, 2018 We adopted this topic, using the modified retrospective transitional approach, during the first quarter of fiscal year 2019, as required. We recognized the cumulative effect by initially applying the revenue standard as an adjustment to the opening balance of retained earnings during the period (October 1, 2018). Refer to Note 9—Revenue from Contracts with Customers for the impact of the adoption. ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB’s disclosure framework project, where entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This update is effective for annual and interim periods beginning after December 15, 2019. June 30, 2019 We early adopted this ASU during the third quarter of fiscal year 2019. The adoption did not have a material impact to our unaudited condensed consolidated financial statements and disclosures. Refer to Note 12—Fair Value Measurement of Financial Instruments. ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income This ASU relates to the impacts of the tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Reform Act”). The guidance permits the reclassification of certain income tax effects of the Tax Reform Act from Accumulated Other Comprehensive Income (Loss) to Retained Earnings. The guidance also requires certain new disclosures. This update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal periods and early adoption is permitted. Entities may adopt the guidance using one of two transition methods, retrospective to each period (or periods) in which the income tax effects of the Tax Reform Act related to the items remaining in Other Comprehensive Income are recognized or at the beginning of the period of adoption. June 30, 2019 We early adopted this ASU during the third quarter of fiscal year 2019. We reclassified $4.2 million from accumulated other comprehensive income (loss) to retained earnings for stranded income tax effects resulting from the Tax Reform Act. The adoption did not have a material impact to our unaudited condensed consolidated financial statements and disclosures. Standards that are not yet adopted as of June 30, 2019 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. October 1, 2020 We are currently evaluating the impact the new guidance may have on our 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 consolidated financial statements and disclosures. ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) and related ASU’s 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 consolidated financial statements and disclosures. ASU No. 2016-02, Leases (Topic 842) and related ASU’s issued subsequent ASU No. 2016-02 will require organizations that lease assets — referred to as “lessees” — to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases 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 are currently evaluating the impact the new guidance may have on our consolidated financial statements and disclosures. Cash Flows The following is a summary of the retrospective impact of our adoption of ASU No. 2016-15 and ASU No. 2016-18: Nine Months Ended June 30, 2018 (in thousands) Historical Accounting Method Effect of Adoption of ASU No. 2016-15 Effect of Adoption of ASU No. 2016-18 As Adjusted Unaudited Condensed Consolidated Statements of Cash Flows Change in prepaid expenses and other $ (11,798 ) $ — $ 2,175 $ (9,623 ) Change in noncurrent assets 5,898 — 207 6,105 Change in accrued liabilities 30,043 10,625 — 40,668 Cash provided by operating activities 358,421 10,625 2,382 371,428 Payment of contingent consideration from acquisition of business — (10,625 ) — (10,625 ) Cash used in financing activities (231,186 ) (10,625 ) — (241,811 ) 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 $5 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 adjuster estimates, historical experience and statistical methods that we believe are reliable. We also engage actuaries to perform reviews 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. International Land Drilling Risks International Land drilling operations may significantly contribute to our revenues and net operating income (loss). 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, 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 has a history of implementing currency controls which restrict the conversion and repatriation of U.S. dollars. These controls have not been in place in Argentina since December of 2016. 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 and nine months ended June 30, 2019 , we experienced an aggregate foreign currency gain of $0.1 million and an aggregate foreign currency loss of $4.6 million , respectively. For the three and nine months ended June 30, 2018 , we recorded aggregate foreign currency losses of $1.1 million and $2.5 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 pursuing such arrangements would have a material adverse effect on our operations or revenues, there can be no assurance that we will in all cases be able to structure or restructure our operations to conform to local law (or the administration thereof) on terms acceptable to us. Although we attempt to minimize the potential impact of such risks by operating in more than one geographical area, during the nine months ended June 30, 2019 , approximately 7.7 percent of our operating revenues were generated from international locations in our contract drilling business compared to 10.1 percent during the nine months ended June 30, 2018 . During the nine months ended June 30, 2019 , approximately 92.1 percent of operating revenues from international locations were from operations in South America compared to 95.4 percent during the nine months ended June 30, 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. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS Current and noncurrent liabilities of our 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 and nine months ended June 30, 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 6,566 Bolivars per United States dollar at June 30, 2019 . The DICOM floating rate might not reflect the barter market exchange rates. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of June 30, 2019 and September 30, 2018 consisted of the following: (in thousands) Estimated Useful Lives June 30, 2019 September 30, 2018 Contract drilling equipment 4 - 15 years $ 8,486,332 $ 8,442,081 Real estate properties 10 - 45 years 71,114 68,888 Other 2 - 23 years 469,933 471,310 Construction in progress 158,936 163,968 9,186,315 9,146,247 Accumulated depreciation (4,602,642 ) (4,288,865 ) Property, plant and equipment, net $ 4,583,673 $ 4,857,382 Depreciation Depreciation expense in the Unaudited Condensed Consolidated Statements of Operations was $141.9 million and $143.1 million for the three months ended June 30, 2019 and 2018 , respectively, and $423.6 million and $430.0 million for the nine months ended June 30, 2019 and 2018 , respectively. Included in depreciation expense is abandonments of $1.4 million and $7.0 million for the three months ended June 30, 2019 and 2018 , respectively, and $6.8 million and $22.5 million for the nine months ended June 30, 2019 and 2018 , respectively. During the nine months ended June 30, 2019 , we shortened the estimated useful life of certain components of rigs planned for conversion resulting in an increase in depreciation expense during the nine months ended June 30, 2019 of approximately $4.5 million . This will also increase the depreciation expense for the next three months by approximately $0.7 million and will decrease the depreciation expense for fiscal years 2020, 2021, 2022, 2023, and 2024 by $0.8 million , $0.8 million , $0.6 million , $0.3 million , and $0.3 million , respectively and thereafter by $0.5 million . Gain on Sale of Assets We had gains on sales of assets of $10.0 million and $4.3 million for the three months ended June 30, 2019 and 2018 , respectively, and $27.1 million and $15.1 million for the nine months ended June 30, 2019 and 2018 , respectively. These gains were primarily related to reimbursement for drill pipe damaged or lost in drilling operations. Impairments During the third quarter of fiscal year 2019, the Company's management performed a detailed assessment, considering a number of approaches, to maximize the utilization and enhance the margins of the domestic and international FlexRig4 asset groups. In June 2019, this assessment concluded that marketing a smaller fleet of these two asset groups would provide the best economic outcome. As such, the decision was made to downsize the number of domestic and international FlexRig4 drilling rigs, to be marketed to our customers, from 71 rigs to 20 domestic rigs and from 10 rigs to 8 international rigs, and utilize the major interchangeable components of the decommissioned drilling rigs within these asset groups as capital spares for all of our remaining rig fleet. This has reduced the aggregate net book values of the asset groups as of June 30, 2019 from $317.8 million to $107.5 million for domestic rigs and from $55.7 million to $47.8 million for international rigs. Following the downsizing process, we performed a detailed study to optimize the quantities of capital spares and drilling support equipment required to support the future operations of our rig fleet going forward. These decisions and analysis resulted in a write down of excess capital spares and drilling support equipment, which had an aggregate net book value of $235.3 million , to their estimated proceeds to ultimately be received on sale or disposal based on our historical experience with sales and disposals of similar assets, resulting in an impairment of $224.3 million , which was recorded in our Unaudited Condensed Consolidated Statement of Operations for the three months ended June 30, 2019. Of the $224.3 million total impairment charge recorded, $216.9 million and $7.4 million was recorded in our U.S. Land and International Land segment, respectively, during the three months ended June 30, 2019. The significant assumptions in the valuation are classified as Level 2 inputs by ASC Topic 820, Fair Value Measurement and Disclosures. Due to the downsizing of our domestic and international FlexRig4 asset groups, at June 30, 2019, we performed impairment testing on these two asset groups. We concluded that the net book values of the asset groups are recoverable through estimated undiscounted cash flows with a surplus. The most significant assumptions used in our undiscounted cash flow model include: timing on awards of future drilling contracts, operating dayrates, operating costs, rig reactivation costs, drilling rig utilization, estimated remaining useful life, and net proceeds received upon future sale/disposition. The assumptions are consistent with the Company's internal forecasts for future years. These significant assumptions are classified as Level 3 inputs by ASC Topic 820, Fair Value Measurement and Disclosures, as they are based upon unobservable inputs and primarily rely on management assumptions and forecasts. Although we believe the assumptions used in our analysis are reasonable and appropriate and the probability-weighted average of expected future undiscounted net cash flows exceed the net book value for each of the domestic and international FlexRig4 asset groups as of June 30, 2019, different assumptions and estimates could materially impact the analysis and our resulting conclusion. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 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. The following is a summary of changes in goodwill (in thousands): Balance at September 30, 2018 $ 64,777 Additions (Note 1) 3,125 Balance at June 30, 2019 $ 67,902 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: June 30, 2019 September 30, 2018 (in thousands) Estimated Useful Lives Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible asset: Developed technology 15 years $ 70,200 $ 9,089 $ 61,111 $ 70,000 $ 5,589 $ 64,411 Trade name 20 years 5,700 451 5,249 5,700 237 5,463 Customer relationships 5 years 4,000 1,267 2,733 4,000 667 3,333 $ 79,900 $ 10,807 $ 69,093 $ 79,700 $ 6,493 $ 73,207 Amortization expense in the Unaudited Condensed Consolidated Statements of Operations was $1.4 million for each of the three months ended June 30, 2019 and 2018 and $4.2 million and $3.9 million for the nine months ended June 30, 2019 and 2018 , respectively . Estimated intangible amortization is estimated to be approximately $5.8 million for each of the next three succeeding fiscal years and approximately $5.1 million for fiscal year 2023. |
DEBT
DEBT | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT At June 30, 2019 and September 30, 2018 , we had the following unsecured long-term debt outstanding: June 30, 2019 September 30, 2018 (in thousands) Face Amount Unamortized Discount and Debt Issuance Cost Book Value Face Amount Unamortized Book Value Unsecured senior notes: Due March 19, 2025 $ 500,000 $ (8,349 ) $ 491,651 $ 500,000 $ (6,032 ) $ 493,968 500,000 (8,349 ) 491,651 500,000 (6,032 ) 493,968 Less long-term debt due within one year — — — — — — Long-term debt $ 500,000 $ (8,349 ) $ 491,651 $ 500,000 $ (6,032 ) $ 493,968 Senior Notes HPIDC 2025 Notes On March 19, 2015, our wholly-owned direct subsidiary, Helmerich & Payne International Drilling Co. (“HPIDC”), issued $500 million of 4.65 percent 10 -year unsecured senior notes (the “HPIDC 2025 Notes”). Interest on the HPIDC 2025 Notes is payable semi-annually on March 15 and September 15. The debt discount is being amortized to interest expense using the effective interest method. The debt issuance costs are amortized straight-line over the stated life of the obligation, which approximates the effective interest method. Private Exchange Offer and Consent Solicitation On November 19, 2018, we commenced an offer to exchange (the “Exchange Offer”) any and all outstanding HPIDC 2025 Notes for (i) up to $500.0 million aggregate principal amount of new 4.65 percent 10 -year unsecured senior notes of the Company (the “Company 2025 Notes”), with registration rights, and (ii) cash. Concurrently with the Exchange Offer, we solicited consents (the “Consent Solicitation”) to adopt certain proposed amendments (the “Proposed Amendments”) to the indenture governing the HPIDC 2025 Notes, which include eliminating substantially all of the restrictive covenants in such indenture and limiting the reporting covenant under such indenture. On December 20, 2018, we settled the Exchange Offer, 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 terms of the Company 2025 Notes are governed by an indenture, dated December 20, 2018, as amended and supplemented by the first supplemental indenture thereto, dated December 20, 2018, each among the Company, HPIDC and Wells Fargo Bank, National Association, as trustee. Following the consummation of the Exchange Offer, HPIDC had outstanding approximately $12.9 million in aggregate principal amount of HPIDC 2025 Notes. In connection with the Consent Solicitation, the requisite number of consents to adopt the Proposed Amendments was received. Accordingly, 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 the Proposed Amendments. Registered Exchange Offer On February 15, 2019, we commenced a registered exchange offer (the “Registered Exchange Offer”) to exchange the Company 2025 Notes for new SEC-registered notes that are substantially identical to the terms of the Company 2025 Notes, except that the offer and issuance of the new notes have been registered under the Securities Act of 1933, as amended (the “Securities Act”), and certain transfer restrictions, registration rights and additional interest provisions relating to the Company 2025 Notes do not apply to the new notes. The Registered Exchange Offer expired on March 18, 2019, and approximately 99.99% of the Company 2025 Notes were exchanged. The Company 2025 Notes that were not exchanged pursuant to the Registered Exchange Offer have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements or a transaction not subject to the registration requirements of the Securities Act or any state securities law. Credit Facilities On November 13, 2018, we entered into an unsecured revolving credit facility (the “2018 Credit Facility”), which will mature on November 13, 2023. 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 2018 Credit Facility is currently guaranteed by HPIDC, which guarantee is subject to release following or simultaneously with the repayment or exchange of the HPIDC 2025 Notes and HPIDC’s release as a guarantor under the Company 2025 Notes. 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 or, in the event the Company has no such rating, the debt rating for senior unsecured debt of HPIDC, both as determined by Moody’s and Standard & Poor’s (“S&P”). 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. Based on the unsecured debt rating of HPIDC on June 30, 2019 , the spread over LIBOR would have been 1.125 percent had borrowings been outstanding under the facility and commitment fees are 0.125 percent. 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 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 June 30, 2019 , there were no borrowings, but there was one letter of credit outstanding in the amount of $10.0 million , leaving $740.0 million available to borrow under the 2018 Credit Facility. In connection with entering into the 2018 Credit Facility , we terminated our $300 million unsecured credit facility under the credit agreement dated as of July 13, 2016 by and among HPIDC, as borrower, the Company, as guarantor, Wells Fargo, National Association, as administrative agent, and the lenders party thereto. At June 30, 2019 , we had two outstanding letters of credit with banks under bilateral line of credit agreements, in the amounts of $25.5 million and $2.1 million , respectively. At June 30, 2019 , we also had a $12.0 million unsecured standalone line of credit facility, for the purpose of obtaining the issuance of bid and performance bonds, as needed, for international operations. Nothing was outstanding under the $12.0 million facility as of June 30, 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 June 30, 2019 , we were in compliance with all debt covenants. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our income tax benefit from continuing operations for the nine months ended June 30, 2019 and 2018 was $(5.6) million and $(494.0) million , respectively, resulting in effective tax rates of 7.0 percent and 15,472.2 percent , respectively. Our income tax provision (benefit) from continuing operations for the three months ended June 30, 2019 and 2018 was $(32.0) million and $10.5 million , respectively, resulting in effective tax rates of 17.2 percent and 446.2 percent , respectively. Effective tax rate differences from the U.S. federal statutory rate for the three and nine months ended June 30, 2019 and 2018 are primarily due to state and foreign income taxes, permanent non-deductible items and discrete adjustments. The total benefit recorded for discrete adjustments for the nine months ended June 30, 2019 was $8.2 million . The discrete adjustments primarily relate to a decrease in our deferred state income tax rate, return to provision adjustments, and the recording of a tax benefit related to the reversal of an uncertain tax liability. The total benefit recorded for discrete adjustments for the nine months ended June 30, 2018 was $492.2 million . The 2018 discrete adjustments primarily relate to a reduction of the statutory federal income tax rate as part of the Tax Reform Act, an increase to our deferred state income tax rate, and return to provision adjustments. 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 | 9 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Our Board of Directors (the "Board") has authorized the Company to repurchase 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 nine months ended June 30, 2019 and 2018 . Components of accumulated other comprehensive loss were as follows: (in thousands) June 30, September 30, Pre-tax amounts: Unrealized appreciation on securities (1) $ — $ 44,023 Unrealized actuarial loss (20,818 ) (21,693 ) $ (20,818 ) $ 22,330 After-tax amounts: Unrealized appreciation on securities (1) $ — $ 29,071 Unrealized actuarial loss (16,085 ) (12,521 ) $ (16,085 ) $ 16,550 (1) As disclosed in Note 2 —Summary of Significant Accounting Policies, Risks and Uncertainties, we adopted ASU No. 2016-01 on October 1, 2018. The standard requires that changes in the fair value of our equity investments must be recognized in net income. The following is a summary of the changes in accumulated other comprehensive loss, net of tax, by component for the three and nine months ended June 30, 2019 : Three Months Ended (in thousands) Defined Benefit Pension Plan Balance at March 31, 2019 $ (12,072 ) Adoption of ASU No. 2018-02 (1) (4,239 ) (16,311 ) Activity during the period Amounts reclassified from accumulated other comprehensive loss 226 Net current-period other comprehensive loss 226 Balance at June 30, 2019 $ (16,085 ) (1) As disclosed in Note 2 —Summary of Significant Accounting Policies, Risks and Uncertainties, we adopted ASU No. 2018-02 as of June 30, 2019. The standard permits the reclassification of certain income tax effects of the Tax Reform Act from Accumulated Other Comprehensive Income (Loss) to Retained Earnings. Nine Months Ended June 30, 2019 (in thousands) Unrealized Appreciation on Equity Securities Defined Benefit Pension Plan Total Balance at September 30, 2018 $ 29,071 $ (12,521 ) $ 16,550 Adoption of ASU No. 2016-01 (1) (29,071 ) — (29,071 ) Adoption of ASU No. 2018-02 (2) — (4,239 ) (4,239 ) — (16,760 ) (16,760 ) Activity during the period Amounts reclassified from accumulated other comprehensive loss — 675 675 Net current-period other comprehensive loss — 675 675 Balance at June 30, 2019 $ — $ (16,085 ) $ (16,085 ) (1) As disclosed in Note 2 —Summary of Significant Accounting Policies, Risks and Uncertainties, we adopted ASU No. 2016-01 on October 1, 2018. The transition provisions enforced upon adoption require any unrealized gains or losses as of October 1, 2018 to be recognized in the beginning balance of equity. (2) As disclosed in Note 2 —Summary of Significant Accounting Policies, Risks and Uncertainties, we adopted ASU No. 2018-02 as of June 30, 2019. The standard permits the reclassification of certain income tax effects of the Tax Reform Act from Accumulated Other Comprehensive Income (Loss) to Retained Earnings. The following provides detail about accumulated other comprehensive loss components, which were reclassified to the Unaudited Condensed Consolidated Statements of Operations: Reclassified from Accumulated Other Comprehensive Income (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Amortization of net actuarial loss on defined benefit pension plan $ (291 ) $ (461 ) $ (874 ) $ (1,382 ) Other income (expense) 65 124 199 397 Income tax provision Total reclassifications for the period $ (226 ) $ (337 ) $ (675 ) $ (985 ) Net of tax A cash dividend of $0.71 per share was declared on March 6, 2019 for shareholders of record on May 13, 2019, and was paid on June 3, 2019. An additional cash dividend of $0.71 per share was declared on June 5, 2019 for shareholders of record on August 12, 2019, payable on September 3, 2019. The dividend payable is included in accounts payable in the Unaudited Condensed Consolidated Balance Sheets. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Impact of Adoption Effective October 1, 2018, we adopted ASU No. 2014-09, "Revenue from Contracts with Customers" and ASC 340-40, “Contracts with Customers.” ASC 606 introduced a five‑step approach to revenue recognition and ASC 340-40 introduced detailed rules for contract revenue related costs. Details of the new requirements as well as the impact on our Unaudited Condensed Consolidated Financial Statements are described below. We have applied ASC 606 in accordance with the modified retrospective transitional approach recognizing the cumulative effect of initially applying the revenue standard as an adjustment to the opening balance of retained earnings during this period (October 1, 2018). Comparative prior year periods were not adjusted. In applying the modified retrospective approach, we elected practical expedients for (a) completed contracts as described in ASC 606-10-65-c2, and (b) contract modifications as described in ASC 606-10-65-1-f(4), allowing the application of the revenue standard only to contracts that were not completed as of the date of initial application and to reflect the aggregate effect of all modifications that occur before the adoption date in accordance with the new standard when: (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price, and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations. We believe that the impact on the opening balance of retained earnings during the period (October 1, 2018) would not have been significantly different had we not elected to use the practical expedients. ASC 606 uses the terms “contract asset” and “contract liability” to describe what might more commonly be known as “accrued or unbilled revenue” and “deferred revenue”, respectively; however, the standard does not prohibit an entity from using alternative descriptions in the statement of financial position. We have adopted the terminology used in ASC 606 to describe such balances. Apart from providing more extensive disclosures for our revenue transactions, the application of ASC 606 has not had a significant impact on our financial position and/or financial performance. Contract Drilling Services Revenue Substantially all of our drilling services are performed on a “daywork” contract basis, under which we charge a rate per day, with the price determined by the location, depth and complexity of the well to be drilled, operating conditions, the duration of the contract, and the competitive forces of the market. These contract drilling services represent a series of distinct daily services that are substantially the same, with the same pattern of transfer to the customer. Because our customers benefit equally throughout the service period and our efforts in providing contract drilling services are incurred relatively evenly over the period of performance, revenue is recognized over time using a time based input measure as we provide services to the customer. Contracts generally contain renewal or extension provisions exercisable at the option of the customer at prices mutually agreeable to us and the customer. For contracts that are terminated by customers prior to the expirations of their fixed terms, contractual provisions customarily require early termination amounts to be paid to us. Revenues from early terminated contracts are recognized when all contractual requirements have been met. During the three months ended June 30, 2019 and 2018 , early termination revenue was approximately $0.8 million and $6.0 million , respectively. During the nine months ended June 30, 2019 and 2018 , early termination revenue was approximately $9.1 million and $14.3 million , respectively. We also act as a principal for certain reimbursable services and auxiliary equipment provided by us to our clients, for which we incur costs and earn revenues. Many of these costs are variable, or dependent upon the activity that is actually performed each day under the related contract. Accordingly, reimbursements that we receive for out-of-pocket expenses are recorded as revenues and the out-of-pocket expenses for which they relate are recorded as operating costs during the period to which they relate within the series of distinct time increments. All of our revenues are recognized net of sales taxes, when applicable. With most drilling contracts, we also receive payments contractually designated for the mobilization and demobilization of drilling rigs and other equipment to and from the client’s drill site. Revenues associated with the mobilization and demobilization of our drilling rigs to and from the client’s drill site do not relate to a distinct good or service and are recognized ratably over the related contract term that drilling services are provided. Demobilization fees expected to be received upon contract completion are estimated at contract inception and recognized on a straight-line basis over the contract term. The amount of demobilization revenue that we ultimately collect is dependent upon the specific contractual terms, most of which include provisions for reduced or no payment for demobilization when, among other things, the contract is renewed or extended with the same client, or when the rig is subsequently contracted with another client prior to the termination of the current contract. Since revenues associated with demobilization activity are typically variable, at each period end, they are estimated at the most likely amount, and constrained when the likelihood of a significant reversal is probable. Any change in the expected amount of demobilization revenue is accounted for with the net cumulative impact of the change in estimate recognized in the period during which the revenue estimate is revised. Contract Costs Mobilization costs include certain direct costs incurred for mobilization of contracted rigs. These costs relate directly to a contract, enhance resources that will be used in satisfying the future performance obligations and are expected to be recovered. These costs are capitalized when incurred and recorded as current or noncurrent contract fulfillment cost assets (depending on the length of the initial contract term), and are amortized on a systematic basis consistent with the pattern of the transfer of the goods or services to which the asset relates which typically includes the initial term of the related drilling contract or a period longer than the initial contract term if management anticipates a customer will renew or extend a contract, which we expect to benefit from the cost of mobilizing the rig. Abnormal mobilization costs are fulfillment costs that are incurred from excessive resources, wasted or spoiled materials, and unproductive labor costs that are not otherwise anticipated in the contract price and are expensed as incurred. As of June 30, 2019 , we had capitalized fulfillment costs of $15.9 million . If capital modification costs are incurred for rig modifications or if upgrades are required for a contract, these costs are considered to be capital improvements. These costs are capitalized as property, plant and equipment and depreciated over the estimated useful life of the improvement. Remaining Performance Obligations The total aggregate transaction price allocated to the unsatisfied performance obligations, commonly referred to as backlog, as of June 30, 2019 was approximately $1.6 billion , of which approximately $0.5 billion is expected to be recognized during the remainder of fiscal year 2019 , approximately $0.9 billion during fiscal year 2020 , and approximately $0.2 billion in fiscal year 2021 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 Amounts owed from our customers under our revenue contracts are typically billed on a monthly basis as the service is being provided and are due within 1 - 30 days of billing. Such amounts are classified as accounts receivable on our Unaudited Condensed Consolidated Balance Sheets. Under certain of our contracts, we recognize revenues in excess of billings, referred to as contract assets, within prepaid expenses and other current assets within our Unaudited Condensed Consolidated Balance Sheets. Under certain of our contracts, we may be entitled to receive payments in advance of satisfying our performance obligations under the contract. We recognize a liability for these payments in excess of revenue recognized, referred to as deferred revenue or contract liabilities, within accrued liabilities and other noncurrent liabilities in our Unaudited Condensed Consolidated Balance Sheets. Contract balances are presented at the net amount at a contract level. The following table summarizes the balances of our contract assets and liabilities at the dates indicated: (in thousands) June 30, 2019 October 1, 2018 Contract assets $ 1,551 $ 2,600 (in thousands) June 30, 2019 Contract liabilities balance at October 1, 2018 $ 30,032 Payment received/accrued and deferred 21,656 Revenue recognized during the period (30,903 ) Contract liabilities balance at June 30, 2019 $ 20,785 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | 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. During the nine months ended June 30, 2019 , there were no non-qualified granted stock options, as we have, prospectively and for fiscal year 2019 , replaced stock options with performance share units as a component of our executives’ long-term equity incentive compensation. 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 nine months ended June 30, 2019 , 474,775 shares of restricted stock awards and 145,153 performance share units were granted under the 2016 Plan. A summary of compensation cost for stock-based payment arrangements recognized in selling, general and administrative expense is as follows: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Compensation expense Stock options $ 719 $ 1,815 $ 3,073 $ 5,887 Restricted stock 6,771 6,111 19,374 17,585 Performance share units 1,388 — 3,020 — $ 8,878 $ 7,926 $ 25,467 $ 23,472 Stock Options A summary of stock option activity under all existing long-term incentive plans for the three and nine months ended June 30, 2019 is presented in the following tables: Three Months Ended June 30, 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 April 1, 2019 3,292 $ 60.77 Exercised (15 ) 42.67 Forfeited/Expired (14 ) 62.24 Outstanding at June 30, 2019 3,263 $ 60.85 5.42 $ 3,158 Vested and expected to vest at June 30, 2019 3,263 $ 60.85 5.42 $ 3,158 Exercisable at June 30, 2019 2,505 $ 60.37 4.69 $ 3,158 Nine Months Ended (in thousands, except per share amounts) Shares Weighted Average Exercise Price Outstanding at October 1, 2018 3,499 $ 58.62 Exercised (213 ) 24.21 Forfeited (23 ) 60.77 Outstanding at June 30, 2019 3,263 $ 60.85 The total intrinsic value of options exercised during the three and nine months ended June 30, 2019 was $0.3 million and $7.9 million , respectively. As of June 30, 2019 , the unrecognized compensation cost related to stock options was $3.9 million , which is expected to be recognized over a weighted-average period of 2.1 years . Restricted Stock Restricted stock awards consist of our common stock and are time-vested over four years . We recognize compensation expense on a straight-line basis over the vesting period. The fair value of restricted stock awards is determined based on the closing price of our shares on the grant date. As of June 30, 2019 , there was $41.8 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 2.4 years . A summary of the status of our restricted stock awards as of June 30, 2019 and changes in restricted stock outstanding during the nine months then ended is presented below: Nine Months Ended (in thousands, except per share amounts) Shares Weighted Average Grant Date Fair Value per Share Outstanding at October 1, 2018 1,001 $ 63.74 Granted 475 58.45 Vested (1) (369 ) 64.32 Forfeited (17 ) 61.01 Outstanding at June 30, 2019 1,090 $ 61.28 (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% 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, dividend yields and cross-correlations between our and our self-determined Peer Group companies. As of June 30, 2019 , there was $6.1 million of unrecognized compensation cost related to unvested performance share unit awards. That cost is expected to be recognized over a weighted-average period of 1.9 years . A summary of the status of our performance share units as of June 30, 2019 and changes in performance share units outstanding during the nine months then ended is presented below: Nine Months Ended (in thousands, except per share amounts) Shares Weighted Average Grant Date Fair Value per Share Outstanding at October 1, 2018 — $ — Granted 145 62.66 Outstanding at June 30, 2019 145 $ 62.66 |
EARNINGS (LOSS) PER COMMON SHAR
EARNINGS (LOSS) PER COMMON SHARE | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER COMMON SHARE | EARNINGS (LOSS) 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 Nine Months Ended (in thousands, except per share amounts) 2019 2018 2019 2018 Numerator: Income (loss) from continuing operations $ (154,621 ) $ (8,174 ) $ (74,400 ) $ 490,835 Income (loss) from discontinued operations (62 ) 166 (433 ) (10,616 ) Net income (loss) (154,683 ) (8,008 ) (74,833 ) 480,219 Adjustment for basic earnings per share Earnings allocated to unvested shareholders (772 ) (717 ) (2,332 ) (4,241 ) Numerator for basic earnings (loss) per share: From continuing operations (155,393 ) (8,891 ) (76,732 ) 486,594 From discontinued operations (62 ) 166 (433 ) (10,616 ) (155,455 ) (8,725 ) (77,165 ) 475,978 Adjustment for diluted earnings (loss) per share: Effect of reallocating undistributed earnings of unvested shareholders — — — 10 Numerator for diluted earnings (loss) per share: From continuing operations (155,393 ) (8,891 ) (76,732 ) 486,604 From discontinued operations (62 ) 166 (433 ) (10,616 ) $ (155,455 ) $ (8,725 ) $ (77,165 ) $ 475,988 Denominator: Denominator for basic earnings (loss) per share - weighted-average shares 109,425 108,905 109,324 108,818 Effect of dilutive shares from stock options, restricted stock and performance share units — — — 520 Denominator for diluted earnings (loss) per share - adjusted weighted-average shares 109,425 108,905 109,324 109,338 Basic earnings (loss) per common share: Income (loss) from continuing operations $ (1.42 ) $ (0.08 ) $ (0.71 ) $ 4.47 Loss from discontinued operations — — — (0.10 ) Net income (loss) $ (1.42 ) $ (0.08 ) $ (0.71 ) $ 4.37 Diluted earnings (loss) per common share: Income (loss) from continuing operations $ (1.42 ) $ (0.08 ) $ (0.71 ) $ 4.45 Loss from discontinued operations — — — (0.10 ) Net income (loss) $ (1.42 ) $ (0.08 ) $ (0.71 ) $ 4.35 We had a net loss for the three and nine months ended June 30, 2019 and the three months ended June 30, 2018. Accordingly, our diluted earnings per share calculation for these periods were equivalent to our basic earnings per share calculation since diluted earnings per share excluded any assumed exercise of equity awards. These were excluded because they were deemed to be anti-dilutive, meaning their inclusion would have reduced the reported net loss per share in the applicable period. The following average shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings (loss) per share because their inclusion would have been anti-dilutive: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2019 2018 2019 2018 Shares excluded from calculation of diluted earnings (loss) per share 2,753 929 2,768 1,585 Weighted-average price per share $ 64.22 $ 75.56 $ 64.21 $ 68.51 |
FAIR VALUE MEASUREMENT OF FINAN
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS | 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 $15.8 million at June 30, 2019 and $16.2 million at September 30, 2018 . 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 June 30, 2019 and September 30, 2018 . The following table summarizes our assets and liabilities measured at fair value presented in our Unaudited Condensed Consolidated Balance Sheet as of June 30, 2019 : (in thousands) Fair Value (Level 1) (Level 2) (Level 3) Recurring fair value measurements: Short-term investments: Certificates of deposit $ 6,728 $ — $ 6,728 $ — Corporate and municipal debt securities 12,180 — 12,180 — U.S. government and federal agency securities 26,840 26,840 — — Total short-term investments 45,748 26,840 18,908 — Cash and cash equivalents 334,775 334,775 — — Investments 32,517 32,226 291 — Other current assets 30,543 30,543 — — Other assets 3,788 3,788 — — Total assets measured at fair value $ 447,371 $ 428,172 $ 19,199 $ — Liabilities: Contingent earnout liability $ 9,555 $ — $ — $ 9,555 At June 30, 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. At June 30, 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 inputs consist of potential earnout payments associated with the acquisition of AJC in fiscal year 2019 and MOTIVE Drilling Technologies, Inc. in fiscal year 2017. The valuation techniques used for determining the fair value of the potential earnout payments use a Monte Carlo simulation which evaluates numerous potential earnings and pay out scenarios. The following table presents a reconciliation of changes in the fair value of our financial assets and liabilities classified as Level 3 fair value measurements in the fair value hierarchy for the indicated periods: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Net liabilities at beginning of period $ 9,015 $ 15,702 $ 11,160 $ 14,879 Additions — — 673 — Total gains or losses: Included in earnings 540 (175 ) (2,278 ) 5,148 Settlements (1) — (6,125 ) — (10,625 ) Net liabilities at end of period $ 9,555 $ 9,402 $ 9,555 $ 9,402 (1) Settlements represent earnout payments that have been paid or earned during the period. The following table provides quantitative information about our Level 3 unobservable inputs at June 30, 2019 : (in thousands) Fair Value Valuation Technique Unobservable Input Percentage Contingent Consideration $ 9,555 Monte Carlo simulation Discount rate 11.0 % Revenue volatility 13.0 % Risk free rate 2.0 % The following information presents the supplemental fair value information about long-term fixed-rate debt at June 30, 2019 and September 30, 2018 : (in millions) June 30, 2019 September 30, 2018 Carrying value of long-term fixed-rate debt $ 491.7 $ 494.0 Fair value of long-term fixed-rate debt $ 530.0 $ 509.3 The fair value for the $500 million fixed-rate debt was based on broker quotes. The notes are classified within Level 2 as they are not actively traded in markets. We adopted ASU No. 2016-01 on October 1, 2018, and as a result, we recognize our marketable equity securities that have readily determinable fair values at fair value, with changes in such values reflected in net income. Previously, we recognized changes in fair value of equity securities in other comprehensive income in the Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss). There is no longer a requirement to consider whether the decline in fair value is other-than-temporary. When equity securities are sold, the cost of securities used in determining realized gains and losses is based on the average cost basis of the security sold. The estimated fair value of our equity securities, reflected on our Unaudited Condensed Consolidated Balance Sheets as Investments, is based on Level 1 inputs. As of June 30, 2019 , we recorded a loss of $50.3 million , which resulted from the decrease in the fair value of our investments from September 30, 2018 . The following is a summary of our securities, which excludes assets held in a Non-Qualified Supplemental Savings Plan: (in thousands) Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Equity Securities: June 30, 2019 $ 38,473 $ 14,865 $ (21,112 ) $ 32,226 September 30, 2018 $ 38,473 $ 44,023 $ — $ 82,496 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Components of Net Periodic Benefit Cost The following provides information at June 30, 2019 related to the Company-sponsored domestic defined benefit pension plan, the Helmerich & Payne, Inc. Employee Retirement Plan (the “Pension Plan”): Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Interest cost $ 1,097 $ 1,013 $ 3,291 $ 3,041 Expected return on plan assets (1,386 ) (1,386 ) (4,158 ) (4,158 ) Recognized net actuarial loss 291 461 874 1,382 Settlement 1,548 — 1,548 — Net pension expense $ 1,550 $ 88 $ 1,555 $ 265 According to ASC 960, Plan Accounting-Defined Benefit Pension Plans, if the lump sum distributions made during a plan year exceed the total of the projected service cost and interest cost for the plan year, settlement accounting is required. Lump sum payments exceeded this threshold during the three and nine months ended June 30, 2019. Accordingly, we recognized settlement expense of $1.5 million for the three and nine months ended June 30, 2019, in other expense within our Condensed Consolidated Statements of Operations. Employer Contributions We did no t contribute to the Pension Plan during the nine months ended June 30, 2019 . We could make contributions for the remainder of fiscal year 2019 to fund distributions in lieu of liquidating assets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Purchase Commitments Equipment, parts and supplies are ordered in advance to promote efficient construction and capital improvement progress. At June 30, 2019 , we had purchase commitments for equipment, parts and supplies of approximately $21.8 million . 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. No contingent gains were recognized in our Unaudited Condensed Consolidated Financial Statements. In January 2018, an employee of HPIDC suffered personal injury and subsequently, brought a lawsuit against the operator and H&P. Pursuant to the terms of the drilling contract between HPIDC and the operator, HPIDC indemnified the operator in the lawsuit, subject to certain limitations. H&P has settled this matter on behalf of itself and the operator with $21.0 million of the settlement amount to be paid by the Company. The settlement was paid out during the nine months ended June 30, 2019 . While we believe we had meritorious defenses to the matter, we determined that settlement was a reasonable alternative to the uncertainty and expense associated with a jury trial. 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 | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION | 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. Effective October 1, 2018, we implemented organizational changes, consistent with the manner in which our chief operating decision maker evaluates performance and allocates resources. Certain operations previously reported in “other” within our segment disclosures are now managed and presented within the new H&P Technologies reportable segment. As a result, beginning with the reporting of first quarter 2019, our operations are organized into the following reportable business segments: U.S. Land, Offshore, International Land and H&P Technologies. Certain other corporate activities and our real estate operations are included in Other. All segment disclosures have been recast for these segment changes. Consolidated revenues and expenses reflect the elimination of intercompany transactions. 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 • Allocated general and administrative costs • Asset impairment charges but excludes corporate costs for other depreciation, income from asset sales and other corporate income and expense. General and administrative costs are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, on other methods which we believe to be a reasonable reflection of the utilization of services provided. Summarized financial information of our reportable segments for the three months ended June 30, 2019 and 2018 is shown in the following tables: Three Months Ended June 30, 2019 (in thousands) U.S. Land (1) Offshore International Land H&P Technologies Other Eliminations Total External Sales $ 593,297 $ 37,674 $ 46,283 $ 7,534 $ 3,186 $ — $ 687,974 Intersegment — — — 1,842 8 $ (1,850 ) — Total Sales 593,297 37,674 46,283 9,376 3,194 (1,850 ) 687,974 Segment Operating Income (Loss) (138,205 ) 5,078 (5,023 ) (8,810 ) (731 ) — (147,691 ) Three Months Ended June 30, 2018 (in thousands) U.S. Land Offshore International Land H&P Technologies (2) Other (2) Eliminations Total External Sales $ 536,582 $ 37,669 $ 63,297 $ 7,693 $ 3,631 $ — $ 648,872 Intersegment 599 — — — 303 (902 ) — Total Sales 537,181 37,669 63,297 7,693 3,934 (902 ) 648,872 Segment Operating Income (Loss) 34,339 3,780 4,332 (9,052 ) 1,826 — 35,225 (1) Includes $9.1 million of technology related sales, of which $1.8 million is fulfilled by the H&P Technologies business segment. (2) Prior period information has been recast to reflect the change in operating segments. Summarized financial information of our reportable segments for the nine months ended June 30, 2019 and 2018 is shown in the following tables: Nine Months Ended June 30, 2019 (in thousands) U.S. Land (1) Offshore International Land H&P Technologies Other Eliminations Total External Sales $ 1,842,054 $ 109,167 $ 163,378 $ 25,199 $ 9,642 $ — $ 2,149,440 Intersegment — — — 4,154 23 (4,177 ) — Total Sales 1,842,054 109,167 163,378 29,353 9,665 (4,177 ) 2,149,440 Segment Operating Income (Loss) 47,602 16,778 9,575 (27,088 ) 1,988 — 48,855 Nine Months Ended June 30, 2018 (in thousands) U.S. Land Offshore International Land H&P Technologies (2) Other (2) Eliminations Total External Sales $ 1,480,951 $ 104,018 $ 178,970 $ 16,842 $ 9,662 $ — $ 1,790,443 Intersegment 634 — — — 775 (1,409 ) — Total Sales 1,481,585 104,018 178,970 16,842 10,437 (1,409 ) 1,790,443 Segment Operating Income (Loss) 86,159 17,954 7,171 (26,400 ) 4,842 — 89,726 (1) Includes $20.9 million of technology related sales, of which $4.2 million is fulfilled by the H&P Technologies business segment. (2) Prior period information has been recast to reflect the change in operating segments. The following table reconciles segment operating income (loss) 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 Nine Months Ended (in thousands) 2019 2018 2019 2018 As adjusted As adjusted Segment operating income (loss) $ (147,691 ) $ 35,225 $ 48,855 $ 89,726 Gain on sale of assets 9,960 4,313 27,050 15,133 Corporate selling, general and administrative costs and corporate depreciation (30,143 ) (33,232 ) (94,344 ) (96,108 ) Operating income (loss) from continuing operations (167,874 ) 6,306 (18,439 ) 8,751 Other income (expense) Interest and dividend income 2,349 2,109 6,861 5,680 Interest expense (6,257 ) (5,993 ) (17,145 ) (17,794 ) Loss on investment securities (13,271 ) — (50,228 ) — Other (1,599 ) (61 ) (1,051 ) 170 Total unallocated amounts (18,778 ) (3,945 ) (61,563 ) (11,944 ) Income (loss) from continuing operations before income taxes $ (186,652 ) $ 2,361 $ (80,002 ) $ (3,193 ) The following table presents total assets by reportable segment: (in thousands) June 30, September 30, Total assets U.S. Land $ 4,742,605 $ 5,012,378 Offshore 100,490 105,439 International Land 318,195 362,033 H&P Technologies 149,712 146,957 Other 31,232 29,525 5,342,234 5,656,332 Investments and corporate operations 555,145 558,535 Total assets from continuing operations 5,897,379 6,214,867 Discontinued operations — — $ 5,897,379 $ 6,214,867 The following table presents revenues from external customers by country based on the location of service provided: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Operating revenues United States 641,270 585,126 1,984,695 1,610,319 Argentina 40,977 50,272 123,666 148,901 Colombia 3,451 10,639 28,075 22,872 Other Foreign $ 2,276 $ 2,835 $ 13,004 $ 8,351 Total $ 687,974 $ 648,872 $ 2,149,440 $ 1,790,443 Refer to Note 9 —Revenue from Contracts with Customers for additional information regarding the recognition of revenue upon adoption of ASC 606. |
GUARANTOR AND NON-GUARANTOR FIN
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION | 9 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION | GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION In March 2015, HPIDC, a wholly-owned subsidiary of the Company, issued senior unsecured notes in an aggregate principal amount of $500 million . In December 2018, the Company completed the Exchange Offer, pursuant to which $487.1 million aggregate principal amount of the HPIDC notes was exchanged for new senior unsecured notes of the Company in an equal aggregate principal amount (see Note 6—Debt). The $12.9 million of remaining HPIDC notes continue to be fully and unconditionally guaranteed by the Company. No subsidiaries of the Company currently guarantee such notes, subject to certain provisions that if any subsidiary guarantees certain other debt of HPIDC or the Company, then such subsidiary will provide a guarantee of the obligations under such notes. In connection with the Exchange Offer, HPIDC fully and unconditionally guaranteed the Company’s newly issued $487.1 million of notes. No other subsidiaries of the Company currently guarantee such notes, subject to certain provisions that if any subsidiary guarantees certain other debt of the Company, then such subsidiary will provide a guarantee of the obligations under such notes. In February 2019, approximately $487.0 million aggregate principal amount of such notes was subsequently exchanged in the Registered Exchange Offer for substantially identical new notes of the Company registered under the Securities Act. See Note 6 -–Debt to the Unaudited Condensed Consolidated Financial Statements for more information about the Registered Exchange Offer. In connection with the notes described above, we are providing the following unaudited condensed consolidating financial information in accordance with the SEC disclosure requirements, so that separate financial statements of HPIDC are not required to be filed. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements. Unaudited condensed consolidating financial information for HPIDC and the Company is shown in the tables below. CONDENSED CONSOLIDATING BALANCE SHEETS (Unaudited) June 30, 2019 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Assets Current assets: Cash and cash equivalents $ 94,354 $ 224,838 $ 15,583 $ — $ 334,775 Short-term investments — 44,071 1,677 — 45,748 Accounts receivable, net (291 ) 462,885 46,582 (993 ) 508,183 Inventories of materials and supplies, net — 118,530 31,596 — 150,126 Prepaid expenses and other 14,414 19,160 43,684 148 77,406 Total current assets 108,477 869,484 139,122 (845 ) 1,116,238 Investments 15,774 32,226 291 — 48,291 Property, plant and equipment, net 45,450 4,270,440 267,783 — 4,583,673 Intercompany receivables 299,182 1,959,592 522,577 (2,781,351 ) — Goodwill — — 67,902 — 67,902 Intangible assets, net — — 69,093 — 69,093 Other assets 318 6,471 5,393 — 12,182 Investment in subsidiaries 5,926,270 277,550 — (6,203,820 ) — Total assets $ 6,395,471 $ 7,415,763 $ 1,072,161 $ (8,986,016 ) $ 5,897,379 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 84,703 $ 45,946 $ 3,789 $ (361 ) $ 134,077 Accrued liabilities 25,190 205,630 26,113 (484 ) 256,449 Total current liabilities 109,893 251,576 29,902 (845 ) 390,526 Noncurrent liabilities: Long-term debt, net 482,962 8,689 — — 491,651 Deferred income taxes (4,273 ) 783,109 48,191 — 827,027 Intercompany payables 1,690,102 259,027 832,122 (2,781,251 ) — Other 21,733 47,537 9,220 — 78,490 Noncurrent liabilities - discontinued operations — — 14,631 — 14,631 Total noncurrent liabilities 2,190,524 1,098,362 904,164 (2,781,251 ) 1,411,799 Shareholders’ equity: Common stock 11,208 100 — (100 ) 11,208 Additional paid-in capital 501,585 52,437 1,040 (53,477 ) 501,585 Retained earnings 3,750,785 6,025,212 137,055 (6,162,267 ) 3,750,785 Accumulated other comprehensive income (loss) (16,085 ) (11,924 ) — 11,924 (16,085 ) Treasury stock, at cost (152,439 ) — — — (152,439 ) Total shareholders’ equity 4,095,054 6,065,825 138,095 (6,203,920 ) 4,095,054 Total liabilities and shareholders’ equity $ 6,395,471 $ 7,415,763 $ 1,072,161 $ (8,986,016 ) $ 5,897,379 September 30, 2018 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Assets Current assets: Cash and cash equivalents $ — $ 273,214 $ 11,141 $ — $ 284,355 Short-term investments — 41,461 — — 41,461 Accounts receivable, net (29 ) 499,644 65,859 (272 ) 565,202 Inventories of materials and supplies, net — 127,154 30,980 — 158,134 Prepaid expenses and other 20,783 10,649 35,539 (573 ) 66,398 Total current assets 20,754 952,122 143,519 (845 ) 1,115,550 Investments 16,200 82,496 — — 98,696 Property, plant and equipment, net 46,859 4,515,077 295,446 — 4,857,382 Intercompany receivables 161,532 2,024,652 294,206 (2,480,390 ) — Goodwill — — 64,777 — 64,777 Intangible assets, net — — 73,207 — 73,207 Other assets 268 907 4,080 — 5,255 Investment in subsidiaries 5,981,197 172,513 — (6,153,710 ) — Total assets $ 6,226,810 $ 7,747,767 $ 875,235 $ (8,634,945 ) $ 6,214,867 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 83,819 $ 43,626 $ 5,483 $ (264 ) $ 132,664 Accrued liabilities 43,449 164,542 37,093 (580 ) 244,504 Total current liabilities 127,268 208,168 42,576 (844 ) 377,168 Noncurrent liabilities: Long-term debt, net — 493,968 — — 493,968 Deferred income taxes (7,112 ) 834,714 25,534 — 853,136 Intercompany payables 1,701,694 178,759 599,837 (2,480,290 ) — Other 22,225 48,836 22,545 — 93,606 Noncurrent liabilities - discontinued operations — — 14,254 — 14,254 Total noncurrent liabilities 1,716,807 1,556,277 662,170 (2,480,290 ) 1,454,964 Shareholders’ equity: Common stock 11,201 100 — (100 ) 11,201 Additional paid-in capital 500,393 52,437 1,040 (53,477 ) 500,393 Retained earnings 4,027,779 5,910,955 169,449 (6,080,404 ) 4,027,779 Accumulated other comprehensive income 16,550 19,830 — (19,830 ) 16,550 Treasury stock, at cost (173,188 ) — — — (173,188 ) Total shareholders’ equity 4,382,735 5,983,322 170,489 (6,153,811 ) 4,382,735 Total liabilities and shareholders’ equity $ 6,226,810 $ 7,747,767 $ 875,235 $ (8,634,945 ) $ 6,214,867 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended June 30, 2019 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Operating revenue $ — $ 633,284 $ 58,870 $ (4,180 ) $ 687,974 Operating costs and other 2,942 780,880 76,383 (4,357 ) 855,848 Operating loss from continuing operations (2,942 ) (147,596 ) (17,513 ) 177 (167,874 ) Other income (expense), net (35 ) (12,639 ) 330 (177 ) (12,521 ) Interest expense (6,083 ) (132 ) (42 ) — (6,257 ) Equity in net loss of subsidiaries (145,440 ) (3,417 ) — 148,857 — Loss from continuing operations before income taxes (154,500 ) (163,784 ) (17,225 ) 148,857 (186,652 ) Income tax (benefit) provision 183 (43,271 ) 11,057 — (32,031 ) Loss from continuing operations (154,683 ) (120,513 ) (28,282 ) 148,857 (154,621 ) Income from discontinued operations before income taxes — — 7,244 — 7,244 Income tax provision — — 7,306 — 7,306 Loss from discontinued operations — — (62 ) — (62 ) Net loss $ (154,683 ) $ (120,513 ) $ (28,344 ) $ 148,857 $ (154,683 ) Three Months Ended June 30, 2018 as adjusted (Note 2) (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Operating revenue $ — $ 574,252 $ 74,647 $ (27 ) $ 648,872 Operating costs and other 4,151 557,994 80,639 (218 ) 642,566 Operating income (loss) from continuing operations (4,151 ) 16,258 (5,992 ) 191 6,306 Other income (expense), net 107 1,854 278 (191 ) 2,048 Interest expense (108 ) (5,117 ) (768 ) — (5,993 ) Equity in net loss of subsidiaries (4,883 ) (2,093 ) — 6,976 — Income (loss) from continuing operations before income taxes (9,035 ) 10,902 (6,482 ) 6,976 2,361 Income tax provision (benefit) (1,027 ) 17,384 (5,822 ) — 10,535 Loss from continuing operations (8,008 ) (6,482 ) (660 ) 6,976 (8,174 ) Income from discontinued operations before income taxes — — 8,383 — 8,383 Income tax provision — — 8,217 — 8,217 Income from discontinued operations — — 166 — 166 Net loss $ (8,008 ) $ (6,482 ) $ (494 ) $ 6,976 $ (8,008 ) Nine Months Ended June 30, 2019 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Operating revenue $ — $ 1,951,221 $ 202,447 $ (4,228 ) $ 2,149,440 Operating costs and other 8,526 1,937,425 226,824 (4,896 ) 2,167,879 Operating income (loss) from continuing operations (8,526 ) 13,796 (24,377 ) 668 (18,439 ) Other income (expense), net (77 ) (45,275 ) 1,602 (668 ) (44,418 ) Interest income (expense) (13,202 ) (4,844 ) 901 — (17,145 ) Equity in net income (loss) of subsidiaries (55,331 ) 6,254 — 49,077 — Loss from continuing operations before income taxes (77,136 ) (30,069 ) (21,874 ) 49,077 (80,002 ) Income tax (benefit) provision (2,303 ) (11,884 ) 8,585 — (5,602 ) Loss from continuing operations (74,833 ) (18,185 ) (30,459 ) 49,077 (74,400 ) Income from discontinued operations before income taxes — — 22,798 — 22,798 Income tax provision — — 23,231 — 23,231 Loss from discontinued operations — — (433 ) — (433 ) Net loss $ (74,833 ) $ (18,185 ) $ (30,892 ) $ 49,077 $ (74,833 ) Nine Months Ended June 30, 2018 as adjusted (Note 2) (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Operating revenue $ — $ 1,584,970 $ 205,537 $ (64 ) $ 1,790,443 Operating costs and other 12,360 1,542,815 227,186 (669 ) 1,781,692 Operating income (loss) from continuing operations (12,360 ) 42,155 (21,649 ) 605 8,751 Other income, net 210 5,226 1,019 (605 ) 5,850 Interest expense (274 ) (15,368 ) (2,152 ) — (17,794 ) Equity in net income of subsidiaries 494,574 3,191 — (497,765 ) — Income (loss) from continuing operations before income taxes 482,150 35,204 (22,782 ) (497,765 ) (3,193 ) Income tax (benefit) provision 1,931 (459,571 ) (36,388 ) — (494,028 ) Income from continuing operations 480,219 494,775 13,606 (497,765 ) 490,835 Income from discontinued operations before income taxes — — 9,127 — 9,127 Income tax provision — — 19,743 — 19,743 Loss from discontinued operations — — (10,616 ) — (10,616 ) Net income $ 480,219 $ 494,775 $ 2,990 $ (497,765 ) $ 480,219 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) Three Months Ended June 30, 2019 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Net loss $ (154,683 ) $ (120,513 ) $ (28,344 ) $ 148,857 $ (154,683 ) Other comprehensive income, net of income taxes: Minimum pension liability adjustments, net 78 148 — — 226 Other comprehensive income 78 148 — — 226 Comprehensive loss $ (154,605 ) $ (120,365 ) $ (28,344 ) $ 148,857 $ (154,457 ) Three Months Ended June 30, 2018 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Net loss $ (8,008 ) $ (6,482 ) $ (494 ) $ 6,976 $ (8,008 ) Other comprehensive income, net of income taxes: Unrealized depreciation on securities, net — 13,826 — — 13,826 Minimum pension liability adjustments, net 101 236 — — 337 Other comprehensive income $ 101 $ 14,062 $ — $ — $ 14,163 Comprehensive income (loss) $ (7,907 ) $ 7,580 $ (494 ) $ 6,976 $ 6,155 Nine Months Ended June 30, 2019 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Net loss $ (74,833 ) $ (18,185 ) $ (30,892 ) $ 49,077 $ (74,833 ) Other comprehensive income, net of income taxes: Minimum pension liability adjustments, net 233 442 — — 675 Other comprehensive income 233 442 — — 675 Comprehensive loss $ (74,600 ) $ (17,743 ) $ (30,892 ) $ 49,077 $ (74,158 ) Nine Months Ended June 30, 2018 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Net income $ 480,219 $ 494,775 $ 2,990 $ (497,765 ) $ 480,219 Other comprehensive income, net of income taxes: Unrealized appreciation on securities, net — 5,657 — — 5,657 Minimum pension liability adjustments, net 295 690 — — 985 Other comprehensive income 295 6,347 — — 6,642 Comprehensive income $ 480,514 $ 501,122 $ 2,990 $ (497,765 ) $ 486,861 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended June 30, 2019 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Net cash provided by (used in) operating activities $ (15,599 ) $ 657,016 $ 17,954 $ — $ 659,371 Cash flows from investing activities: Capital expenditures (7,355 ) (389,615 ) (6,600 ) — (403,570 ) Purchase of short-term investments — (70,175 ) (1,677 ) — (71,852 ) Payment for acquisition of business, net of cash acquired (2,781 ) — — — (2,781 ) Proceeds from sale of short-term investments — 68,015 — — 68,015 Intercompany transfers 7,355 (7,355 ) — — — Proceeds from asset sales 6 32,585 3,636 — 36,227 Net cash used in investing activities (2,775 ) (366,545 ) (4,641 ) — (373,961 ) Cash flows from financing activities: Intercompany transfers 235,058 (235,058 ) — — — Dividends paid (235,058 ) — — — (235,058 ) Debt issuance costs paid (3,912 ) — — — (3,912 ) Payments for employee taxes on net settlement of equity awards (6,420 ) — — — (6,420 ) Proceeds from stock option exercises 2,901 — — — 2,901 Other intercompany transfers 111,339 (103,788 ) (7,551 ) — — Net cash provided by (used in) financing activities 103,908 (338,846 ) (7,551 ) — (242,489 ) Net increase (decrease) in cash and cash equivalents and restricted cash 85,534 (48,375 ) 5,762 — 42,921 Cash and cash equivalents and restricted cash, beginning of period 6,037 273,214 46,934 — 326,185 Cash and cash equivalents and restricted cash, end of period $ 91,571 $ 224,839 $ 52,696 $ — $ 369,106 Nine Months Ended June 30, 2018 as adjusted (Note 2) (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Net cash provided by operating activities $ 1,914 $ 350,557 $ 18,957 $ — $ 371,428 Cash flows from investing activities: Capital expenditures (8,725 ) (306,278 ) (7,655 ) — (322,658 ) Purchase of short-term investments — (52,159 ) — — (52,159 ) Payment for acquisition of business, net cash acquired (47,886 ) — — — (47,886 ) Proceeds from sale of short-term investments — 52,470 — — 52,470 Intercompany transfers 56,611 (56,611 ) — — — Proceeds from asset sales — 26,737 1,312 — 28,049 Net cash used in investing activities — (335,841 ) (6,343 ) — (342,184 ) Cash flows from financing activities: Intercompany transfers 230,368 (230,368 ) — — — Dividends paid (230,368 ) — — — (230,368 ) Payments for employee taxes on net settlement of equity awards (5,978 ) — — — (5,978 ) Proceeds from stock option exercises 5,160 — — — 5,160 Payment of contingent consideration from acquisition of business — — (10,625 ) — (10,625 ) Net cash used in financing activities (818 ) (230,368 ) (10,625 ) — (241,811 ) Net increase (decrease) in cash and cash equivalents and restricted cash 1,096 (215,652 ) 1,989 — (212,567 ) Cash and cash equivalents and restricted cash, beginning of period 9,385 507,504 43,620 — 560,509 Cash and cash equivalents and restricted cash, end of period $ 10,481 $ 291,852 $ 45,609 $ — $ 347,942 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES (Policies) | 9 Months Ended |
Jun. 30, 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 2018 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. Certain prior period financial information has been recast to reflect the current year’s presentation as it relates to the new reportable segment, H&P Technologies, effective October 1, 2018. Refer to Note 15 –Business Segments and Geographic Information. Additionally, the prior comparative periods presented in the Unaudited Condensed Consolidated Financial Statements have been adjusted in accordance with the adoption of accounting standard updates included in the Recently Issued Accounting Updates table below. |
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 upon 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 any highly liquid investment with an original maturity of three months or less. Approximately $318.9 million of cash and cash equivalents reside in accounts in the United States and the remaining $15.9 million are in other countries. Our cash, cash equivalents and short-term investments are subject to global economic as well as credit risk, and international accounts are subject to risks specific to the countries where they are located. Some of our U.S. bank accounts also carry balances greater than the federally insured limit. We had restricted cash of $34.3 million and $41.5 million at June 30, 2019 and 2018 , respectively, and $41.8 million and $39.1 million at September 30, 2018 and 2017 , respectively. Of the total at June 30, 2019 and September 30, 2018 , $3.0 million and $11.3 million , respectively, is related to the acquisition of drilling technology companies, $2.0 million as of each of June 30, 2019 and September 30, 2018 is from the initial capitalization of the captive insurance company, and $29.3 million and $28.5 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. The restricted amounts are primarily invested in short-term money market securities. See Recently Issued Accounting Updates below for changes to the presentation of restricted cash effective October 1, 2018 as a result of adopting Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The restricted cash and cash equivalents are reflected within the following line items on the Unaudited Condensed Consolidated Balance Sheets: June 30, September 30, (in thousands) 2019 2018 2018 2017 Cash $ 334,775 $ 306,426 $ 284,355 $ 521,375 Restricted Cash Prepaid expenses and other 30,543 34,614 39,830 32,439 Other assets 3,788 6,902 2,000 6,695 Total cash, cash equivalents, and restricted cash $ 369,106 $ 347,942 $ 326,185 $ 560,509 |
Drilling Revenues | Drilling Revenues Contract drilling revenues are comprised of daywork drilling contracts for which the related revenues and expenses are recognized as services are performed and collection is reasonably assured and it is determined to be probable that a significant reversal will not occur. For certain contracts, we receive payments contractually designated for the mobilization of rigs and other drilling equipment. Mobilization payments received, and direct costs incurred for the mobilization, are deferred and recognized on a straight-line basis over the term of the related drilling contract. Costs incurred to relocate rigs and other drilling equipment to areas in which a contract has not been secured are expensed as incurred. Refer to Note 9 —Revenue from Contracts with Customers for additional information regarding our contract drilling services revenue. |
Recently Issued Accounting Updates | Recently Issued Accounting Updates Changes to U.S. GAAP are established by the FASB in the form of Accounting Standards Updates ("ASU's") 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. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. Regardless of whether the change to the terms or conditions of the award requires modification accounting, the existing disclosure requirements and other aspects of U.S. GAAP associated with modification, such as earnings per share, continue to apply. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required. There was no impact to our unaudited condensed consolidated financial statements and disclosures. ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The ASU changes how employers that sponsor defined benefit pension and/or other postretirement benefit plans present the net periodic benefit cost in the income statement. Employers should present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Employers should present the other components of the net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. The amendments are applied retrospectively for the presentation of the service cost component and other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required, on a retrospective basis. The retrospective impact was not material to our unaudited condensed consolidated financial statements and disclosures. ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash The ASU requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending cash amounts for the periods shown on the statement of cash flows. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required, on a retrospective basis. The retrospective impact on the unaudited condensed consolidated statement of cash flows for the nine months ended June 30, 2018 was an increase of $2.4 million in net cash provided by operating activities. ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory Under prior U.S. GAAP, the tax effects of intra-entity asset transfers (intercompany sales) were deferred until the transferred asset was sold to a third party or otherwise recovered through use. This was an exception to the principle in ASC 740, Income Taxes, that generally requires comprehensive recognition of current and deferred income taxes. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. As a result, a reporting entity recognizes the tax expense from the sale of the asset in the seller's tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer's jurisdiction is also recognized at the time of the transfer. The new guidance does not apply to intra-entity transfers of inventory. The income tax consequences from the sale of inventory from one member of a consolidated entity to another will continue to be deferred until the inventory is sold to a third party. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required. There was no material impact to our unaudited condensed consolidated financial statements and disclosures. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The ASU was intended to reduce diversity in practice in presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required, on a retrospective basis. The retrospective impact on the unaudited condensed consolidated statement of cash flows for the nine months ended June 30, 2018 is a reclassification of $10.6 million from net cash provided by operating activities to net cash used in financing activities. ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. At adoption, a cumulative-effect adjustment to beginning retained earnings is recorded to reflect the fair value of such investments at the date of adoption in retained earnings rather than accumulated other comprehensive income. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required. As a result, changes in the fair value of our equity investments have been recognized in net income since the date of adoption, and our future results of operations will continue to be subject to stock market fluctuations for these investments. The cumulative catch up impact that was recorded to the beginning balance of retained earnings at October 1, 2018 was a reclassification of $44.0 million ($29.1 million after-tax) of cumulative gains from the beginning balance of accumulated other comprehensive income. ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). The update outlined a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and superseded other revenue recognition guidance, including industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled for those goods or services. The update also required disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Furthermore, as part of Topic 606, the FASB introduced ASC 340-40, Other Assets and Deferred Costs, which provides guidance on the capitalization of contract related costs that are not within the scope of other authoritative literature. Companies could use either a full retrospective or a modified retrospective approach to adopt the updates. October 1, 2018 We adopted this topic, using the modified retrospective transitional approach, during the first quarter of fiscal year 2019, as required. We recognized the cumulative effect by initially applying the revenue standard as an adjustment to the opening balance of retained earnings during the period (October 1, 2018). Refer to Note 9—Revenue from Contracts with Customers for the impact of the adoption. ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB’s disclosure framework project, where entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This update is effective for annual and interim periods beginning after December 15, 2019. June 30, 2019 We early adopted this ASU during the third quarter of fiscal year 2019. The adoption did not have a material impact to our unaudited condensed consolidated financial statements and disclosures. Refer to Note 12—Fair Value Measurement of Financial Instruments. ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income This ASU relates to the impacts of the tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Reform Act”). The guidance permits the reclassification of certain income tax effects of the Tax Reform Act from Accumulated Other Comprehensive Income (Loss) to Retained Earnings. The guidance also requires certain new disclosures. This update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal periods and early adoption is permitted. Entities may adopt the guidance using one of two transition methods, retrospective to each period (or periods) in which the income tax effects of the Tax Reform Act related to the items remaining in Other Comprehensive Income are recognized or at the beginning of the period of adoption. June 30, 2019 We early adopted this ASU during the third quarter of fiscal year 2019. We reclassified $4.2 million from accumulated other comprehensive income (loss) to retained earnings for stranded income tax effects resulting from the Tax Reform Act. The adoption did not have a material impact to our unaudited condensed consolidated financial statements and disclosures. Standards that are not yet adopted as of June 30, 2019 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. October 1, 2020 We are currently evaluating the impact the new guidance may have on our 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 consolidated financial statements and disclosures. ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) and related ASU’s 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 consolidated financial statements and disclosures. ASU No. 2016-02, Leases (Topic 842) and related ASU’s issued subsequent ASU No. 2016-02 will require organizations that lease assets — referred to as “lessees” — to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases 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 are currently evaluating the impact the new guidance may have on our consolidated financial statements and disclosures. |
Self-Insurance | Nine Months Ended June 30, 2018 (in thousands) Historical Accounting Method Effect of Adoption of ASU No. 2016-15 Effect of Adoption of ASU No. 2016-18 As Adjusted Unaudited Condensed Consolidated Statements of Cash Flows Change in prepaid expenses and other $ (11,798 ) $ — $ 2,175 $ (9,623 ) Change in noncurrent assets 5,898 — 207 6,105 Change in accrued liabilities 30,043 10,625 — 40,668 Cash provided by operating activities 358,421 10,625 2,382 371,428 Payment of contingent consideration from acquisition of business — (10,625 ) — (10,625 ) Cash used in financing activities (231,186 ) (10,625 ) — (241,811 ) 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 $5 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 adjuster estimates, historical experience and statistical methods that we believe are reliable. We also engage actuaries to perform reviews 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. |
International Land Drilling Risks | International Land Drilling Risks International Land drilling operations may significantly contribute to our revenues and net operating income (loss). 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, 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 has a history of implementing currency controls which restrict the conversion and repatriation of U.S. dollars. These controls have not been in place in Argentina since December of 2016. 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 and nine months ended June 30, 2019 , we experienced an aggregate foreign currency gain of $0.1 million and an aggregate foreign currency loss of $4.6 million , respectively. For the three and nine months ended June 30, 2018 , we recorded aggregate foreign currency losses of $1.1 million and $2.5 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 pursuing such arrangements would have a material adverse effect on our operations or revenues, there can be no assurance that we will in all cases be able to structure or restructure our operations to conform to local law (or the administration thereof) on terms acceptable to us. Although we attempt to minimize the potential impact of such risks by operating in more than one geographical area, during the nine months ended June 30, 2019 , approximately 7.7 percent of our operating revenues were generated from international locations in our contract drilling business compared to 10.1 percent during the nine months ended June 30, 2018 . During the nine months ended June 30, 2019 , approximately 92.1 percent of operating revenues from international locations were from operations in South America compared to 95.4 percent during the nine months ended June 30, 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) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of the Location of Restricted Cash and Cash Equivalents in the Balance Sheet | The restricted cash and cash equivalents are reflected within the following line items on the Unaudited Condensed Consolidated Balance Sheets: June 30, September 30, (in thousands) 2019 2018 2018 2017 Cash $ 334,775 $ 306,426 $ 284,355 $ 521,375 Restricted Cash Prepaid expenses and other 30,543 34,614 39,830 32,439 Other assets 3,788 6,902 2,000 6,695 Total cash, cash equivalents, and restricted cash $ 369,106 $ 347,942 $ 326,185 $ 560,509 |
Summary of Recent Accounting Pronouncements and the Retrospective Impact of Adoption of ASU 2016-15 and ASU 2016-18 | 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. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. Regardless of whether the change to the terms or conditions of the award requires modification accounting, the existing disclosure requirements and other aspects of U.S. GAAP associated with modification, such as earnings per share, continue to apply. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required. There was no impact to our unaudited condensed consolidated financial statements and disclosures. ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The ASU changes how employers that sponsor defined benefit pension and/or other postretirement benefit plans present the net periodic benefit cost in the income statement. Employers should present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Employers should present the other components of the net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. The amendments are applied retrospectively for the presentation of the service cost component and other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required, on a retrospective basis. The retrospective impact was not material to our unaudited condensed consolidated financial statements and disclosures. ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash The ASU requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending cash amounts for the periods shown on the statement of cash flows. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required, on a retrospective basis. The retrospective impact on the unaudited condensed consolidated statement of cash flows for the nine months ended June 30, 2018 was an increase of $2.4 million in net cash provided by operating activities. ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory Under prior U.S. GAAP, the tax effects of intra-entity asset transfers (intercompany sales) were deferred until the transferred asset was sold to a third party or otherwise recovered through use. This was an exception to the principle in ASC 740, Income Taxes, that generally requires comprehensive recognition of current and deferred income taxes. The new guidance eliminates the exception for all intra-entity sales of assets other than inventory. As a result, a reporting entity recognizes the tax expense from the sale of the asset in the seller's tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer's jurisdiction is also recognized at the time of the transfer. The new guidance does not apply to intra-entity transfers of inventory. The income tax consequences from the sale of inventory from one member of a consolidated entity to another will continue to be deferred until the inventory is sold to a third party. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required. There was no material impact to our unaudited condensed consolidated financial statements and disclosures. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The ASU was intended to reduce diversity in practice in presentation and classification of certain cash receipts and cash payments by providing guidance on eight specific cash flow issues. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required, on a retrospective basis. The retrospective impact on the unaudited condensed consolidated statement of cash flows for the nine months ended June 30, 2018 is a reclassification of $10.6 million from net cash provided by operating activities to net cash used in financing activities. ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. At adoption, a cumulative-effect adjustment to beginning retained earnings is recorded to reflect the fair value of such investments at the date of adoption in retained earnings rather than accumulated other comprehensive income. October 1, 2018 We adopted this ASU during the first quarter of fiscal year 2019, as required. As a result, changes in the fair value of our equity investments have been recognized in net income since the date of adoption, and our future results of operations will continue to be subject to stock market fluctuations for these investments. The cumulative catch up impact that was recorded to the beginning balance of retained earnings at October 1, 2018 was a reclassification of $44.0 million ($29.1 million after-tax) of cumulative gains from the beginning balance of accumulated other comprehensive income. ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). The update outlined a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and superseded other revenue recognition guidance, including industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled for those goods or services. The update also required disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Furthermore, as part of Topic 606, the FASB introduced ASC 340-40, Other Assets and Deferred Costs, which provides guidance on the capitalization of contract related costs that are not within the scope of other authoritative literature. Companies could use either a full retrospective or a modified retrospective approach to adopt the updates. October 1, 2018 We adopted this topic, using the modified retrospective transitional approach, during the first quarter of fiscal year 2019, as required. We recognized the cumulative effect by initially applying the revenue standard as an adjustment to the opening balance of retained earnings during the period (October 1, 2018). Refer to Note 9—Revenue from Contracts with Customers for the impact of the adoption. ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB’s disclosure framework project, where entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This update is effective for annual and interim periods beginning after December 15, 2019. June 30, 2019 We early adopted this ASU during the third quarter of fiscal year 2019. The adoption did not have a material impact to our unaudited condensed consolidated financial statements and disclosures. Refer to Note 12—Fair Value Measurement of Financial Instruments. ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income This ASU relates to the impacts of the tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Reform Act”). The guidance permits the reclassification of certain income tax effects of the Tax Reform Act from Accumulated Other Comprehensive Income (Loss) to Retained Earnings. The guidance also requires certain new disclosures. This update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal periods and early adoption is permitted. Entities may adopt the guidance using one of two transition methods, retrospective to each period (or periods) in which the income tax effects of the Tax Reform Act related to the items remaining in Other Comprehensive Income are recognized or at the beginning of the period of adoption. June 30, 2019 We early adopted this ASU during the third quarter of fiscal year 2019. We reclassified $4.2 million from accumulated other comprehensive income (loss) to retained earnings for stranded income tax effects resulting from the Tax Reform Act. The adoption did not have a material impact to our unaudited condensed consolidated financial statements and disclosures. Standards that are not yet adopted as of June 30, 2019 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. October 1, 2020 We are currently evaluating the impact the new guidance may have on our 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 consolidated financial statements and disclosures. ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) and related ASU’s 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 consolidated financial statements and disclosures. ASU No. 2016-02, Leases (Topic 842) and related ASU’s issued subsequent ASU No. 2016-02 will require organizations that lease assets — referred to as “lessees” — to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases 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 are currently evaluating the impact the new guidance may have on our consolidated financial statements and disclosures. Cash Flows The following is a summary of the retrospective impact of our adoption of ASU No. 2016-15 and ASU No. 2016-18: Nine Months Ended June 30, 2018 (in thousands) Historical Accounting Method Effect of Adoption of ASU No. 2016-15 Effect of Adoption of ASU No. 2016-18 As Adjusted Unaudited Condensed Consolidated Statements of Cash Flows Change in prepaid expenses and other $ (11,798 ) $ — $ 2,175 $ (9,623 ) Change in noncurrent assets 5,898 — 207 6,105 Change in accrued liabilities 30,043 10,625 — 40,668 Cash provided by operating activities 358,421 10,625 2,382 371,428 Payment of contingent consideration from acquisition of business — (10,625 ) — (10,625 ) Cash used in financing activities (231,186 ) (10,625 ) — (241,811 ) |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment as of June 30, 2019 and September 30, 2018 consisted of the following: (in thousands) Estimated Useful Lives June 30, 2019 September 30, 2018 Contract drilling equipment 4 - 15 years $ 8,486,332 $ 8,442,081 Real estate properties 10 - 45 years 71,114 68,888 Other 2 - 23 years 469,933 471,310 Construction in progress 158,936 163,968 9,186,315 9,146,247 Accumulated depreciation (4,602,642 ) (4,288,865 ) Property, plant and equipment, net $ 4,583,673 $ 4,857,382 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The following is a summary of changes in goodwill (in thousands): Balance at September 30, 2018 $ 64,777 Additions (Note 1) 3,125 Balance at June 30, 2019 $ 67,902 |
Schedule of Finite-Lived Intangible Assets | Intangible assets arising from business acquisitions consisted of the following: June 30, 2019 September 30, 2018 (in thousands) Estimated Useful Lives Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Finite-lived intangible asset: Developed technology 15 years $ 70,200 $ 9,089 $ 61,111 $ 70,000 $ 5,589 $ 64,411 Trade name 20 years 5,700 451 5,249 5,700 237 5,463 Customer relationships 5 years 4,000 1,267 2,733 4,000 667 3,333 $ 79,900 $ 10,807 $ 69,093 $ 79,700 $ 6,493 $ 73,207 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Unsecured Long-Term Debt Outstanding | At June 30, 2019 and September 30, 2018 , we had the following unsecured long-term debt outstanding: June 30, 2019 September 30, 2018 (in thousands) Face Amount Unamortized Discount and Debt Issuance Cost Book Value Face Amount Unamortized Book Value Unsecured senior notes: Due March 19, 2025 $ 500,000 $ (8,349 ) $ 491,651 $ 500,000 $ (6,032 ) $ 493,968 500,000 (8,349 ) 491,651 500,000 (6,032 ) 493,968 Less long-term debt due within one year — — — — — — Long-term debt $ 500,000 $ (8,349 ) $ 491,651 $ 500,000 $ (6,032 ) $ 493,968 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive loss were as follows: (in thousands) June 30, September 30, Pre-tax amounts: Unrealized appreciation on securities (1) $ — $ 44,023 Unrealized actuarial loss (20,818 ) (21,693 ) $ (20,818 ) $ 22,330 After-tax amounts: Unrealized appreciation on securities (1) $ — $ 29,071 Unrealized actuarial loss (16,085 ) (12,521 ) $ (16,085 ) $ 16,550 (1) As disclosed in Note 2 —Summary of Significant Accounting Policies, Risks and Uncertainties, we adopted ASU No. 2016-01 on October 1, 2018. The standard requires that changes in the fair value of our equity investments must be recognized in net income. |
Summary of the Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax, by Component | The following is a summary of the changes in accumulated other comprehensive loss, net of tax, by component for the three and nine months ended June 30, 2019 : Three Months Ended (in thousands) Defined Benefit Pension Plan Balance at March 31, 2019 $ (12,072 ) Adoption of ASU No. 2018-02 (1) (4,239 ) (16,311 ) Activity during the period Amounts reclassified from accumulated other comprehensive loss 226 Net current-period other comprehensive loss 226 Balance at June 30, 2019 $ (16,085 ) (1) As disclosed in Note 2 —Summary of Significant Accounting Policies, Risks and Uncertainties, we adopted ASU No. 2018-02 as of June 30, 2019. The standard permits the reclassification of certain income tax effects of the Tax Reform Act from Accumulated Other Comprehensive Income (Loss) to Retained Earnings. Nine Months Ended June 30, 2019 (in thousands) Unrealized Appreciation on Equity Securities Defined Benefit Pension Plan Total Balance at September 30, 2018 $ 29,071 $ (12,521 ) $ 16,550 Adoption of ASU No. 2016-01 (1) (29,071 ) — (29,071 ) Adoption of ASU No. 2018-02 (2) — (4,239 ) (4,239 ) — (16,760 ) (16,760 ) Activity during the period Amounts reclassified from accumulated other comprehensive loss — 675 675 Net current-period other comprehensive loss — 675 675 Balance at June 30, 2019 $ — $ (16,085 ) $ (16,085 ) (1) As disclosed in Note 2 —Summary of Significant Accounting Policies, Risks and Uncertainties, we adopted ASU No. 2016-01 on October 1, 2018. The transition provisions enforced upon adoption require any unrealized gains or losses as of October 1, 2018 to be recognized in the beginning balance of equity. (2) As disclosed in Note 2 —Summary of Significant Accounting Policies, Risks and Uncertainties, we adopted |
Schedule of Accumulated Other comprehensive Income (Loss) Components Which were Reclassified to the Condensed Consolidated Statement of Operations | The following provides detail about accumulated other comprehensive loss components, which were reclassified to the Unaudited Condensed Consolidated Statements of Operations: Reclassified from Accumulated Other Comprehensive Income (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Operations Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Amortization of net actuarial loss on defined benefit pension plan $ (291 ) $ (461 ) $ (874 ) $ (1,382 ) Other income (expense) 65 124 199 397 Income tax provision Total reclassifications for the period $ (226 ) $ (337 ) $ (675 ) $ (985 ) Net of tax |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Jun. 30, 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) June 30, 2019 October 1, 2018 Contract assets $ 1,551 $ 2,600 (in thousands) June 30, 2019 Contract liabilities balance at October 1, 2018 $ 30,032 Payment received/accrued and deferred 21,656 Revenue recognized during the period (30,903 ) Contract liabilities balance at June 30, 2019 $ 20,785 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Compensation Cost for Stock-based Payment Arrangements Recognized in Selling, General and Administrative Expense | A summary of compensation cost for stock-based payment arrangements recognized in selling, general and administrative expense is as follows: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Compensation expense Stock options $ 719 $ 1,815 $ 3,073 $ 5,887 Restricted stock 6,771 6,111 19,374 17,585 Performance share units 1,388 — 3,020 — $ 8,878 $ 7,926 $ 25,467 $ 23,472 |
Summary of Stock Option Activity | A summary of stock option activity under all existing long-term incentive plans for the three and nine months ended June 30, 2019 is presented in the following tables: Three Months Ended June 30, 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 April 1, 2019 3,292 $ 60.77 Exercised (15 ) 42.67 Forfeited/Expired (14 ) 62.24 Outstanding at June 30, 2019 3,263 $ 60.85 5.42 $ 3,158 Vested and expected to vest at June 30, 2019 3,263 $ 60.85 5.42 $ 3,158 Exercisable at June 30, 2019 2,505 $ 60.37 4.69 $ 3,158 Nine Months Ended (in thousands, except per share amounts) Shares Weighted Average Exercise Price Outstanding at October 1, 2018 3,499 $ 58.62 Exercised (213 ) 24.21 Forfeited (23 ) 60.77 Outstanding at June 30, 2019 3,263 $ 60.85 |
Summary of Restricted Stock Awards and Changes in Restricted Stock Outstanding | A summary of the status of our performance share units as of June 30, 2019 and changes in performance share units outstanding during the nine months then ended is presented below: Nine Months Ended (in thousands, except per share amounts) Shares Weighted Average Grant Date Fair Value per Share Outstanding at October 1, 2018 — $ — Granted 145 62.66 Outstanding at June 30, 2019 145 $ 62.66 A summary of the status of our restricted stock awards as of June 30, 2019 and changes in restricted stock outstanding during the nine months then ended is presented below: Nine Months Ended (in thousands, except per share amounts) Shares Weighted Average Grant Date Fair Value per Share Outstanding at October 1, 2018 1,001 $ 63.74 Granted 475 58.45 Vested (1) (369 ) 64.32 Forfeited (17 ) 61.01 Outstanding at June 30, 2019 1,090 $ 61.28 (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 . |
EARNINGS (LOSS) PER COMMON SH_2
EARNINGS (LOSS) PER COMMON SHARE (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of 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 Nine Months Ended (in thousands, except per share amounts) 2019 2018 2019 2018 Numerator: Income (loss) from continuing operations $ (154,621 ) $ (8,174 ) $ (74,400 ) $ 490,835 Income (loss) from discontinued operations (62 ) 166 (433 ) (10,616 ) Net income (loss) (154,683 ) (8,008 ) (74,833 ) 480,219 Adjustment for basic earnings per share Earnings allocated to unvested shareholders (772 ) (717 ) (2,332 ) (4,241 ) Numerator for basic earnings (loss) per share: From continuing operations (155,393 ) (8,891 ) (76,732 ) 486,594 From discontinued operations (62 ) 166 (433 ) (10,616 ) (155,455 ) (8,725 ) (77,165 ) 475,978 Adjustment for diluted earnings (loss) per share: Effect of reallocating undistributed earnings of unvested shareholders — — — 10 Numerator for diluted earnings (loss) per share: From continuing operations (155,393 ) (8,891 ) (76,732 ) 486,604 From discontinued operations (62 ) 166 (433 ) (10,616 ) $ (155,455 ) $ (8,725 ) $ (77,165 ) $ 475,988 Denominator: Denominator for basic earnings (loss) per share - weighted-average shares 109,425 108,905 109,324 108,818 Effect of dilutive shares from stock options, restricted stock and performance share units — — — 520 Denominator for diluted earnings (loss) per share - adjusted weighted-average shares 109,425 108,905 109,324 109,338 Basic earnings (loss) per common share: Income (loss) from continuing operations $ (1.42 ) $ (0.08 ) $ (0.71 ) $ 4.47 Loss from discontinued operations — — — (0.10 ) Net income (loss) $ (1.42 ) $ (0.08 ) $ (0.71 ) $ 4.37 Diluted earnings (loss) per common share: Income (loss) from continuing operations $ (1.42 ) $ (0.08 ) $ (0.71 ) $ 4.45 Loss from discontinued operations — — — (0.10 ) Net income (loss) $ (1.42 ) $ (0.08 ) $ (0.71 ) $ 4.35 |
Schedule of 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 (loss) per share because their inclusion would have been anti-dilutive: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2019 2018 2019 2018 Shares excluded from calculation of diluted earnings (loss) per share 2,753 929 2,768 1,585 Weighted-average price per share $ 64.22 $ 75.56 $ 64.21 $ 68.51 |
FAIR VALUE MEASUREMENT OF FIN_2
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Jun. 30, 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 June 30, 2019 : (in thousands) Fair Value (Level 1) (Level 2) (Level 3) Recurring fair value measurements: Short-term investments: Certificates of deposit $ 6,728 $ — $ 6,728 $ — Corporate and municipal debt securities 12,180 — 12,180 — U.S. government and federal agency securities 26,840 26,840 — — Total short-term investments 45,748 26,840 18,908 — Cash and cash equivalents 334,775 334,775 — — Investments 32,517 32,226 291 — Other current assets 30,543 30,543 — — Other assets 3,788 3,788 — — Total assets measured at fair value $ 447,371 $ 428,172 $ 19,199 $ — Liabilities: Contingent earnout liability $ 9,555 $ — $ — $ 9,555 |
Schedule of Reconciliation of Changes in the Fair Value of our 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: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Net liabilities at beginning of period $ 9,015 $ 15,702 $ 11,160 $ 14,879 Additions — — 673 — Total gains or losses: Included in earnings 540 (175 ) (2,278 ) 5,148 Settlements (1) — (6,125 ) — (10,625 ) Net liabilities at end of period $ 9,555 $ 9,402 $ 9,555 $ 9,402 (1) Settlements represent earnout payments that have been paid or earned during the period. |
Schedule of Quantitative Information on Level 3 Unobservable Inputs | The following table provides quantitative information about our Level 3 unobservable inputs at June 30, 2019 : (in thousands) Fair Value Valuation Technique Unobservable Input Percentage Contingent Consideration $ 9,555 Monte Carlo simulation Discount rate 11.0 % Revenue volatility 13.0 % Risk free rate 2.0 % |
Summary of 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 June 30, 2019 and September 30, 2018 : (in millions) June 30, 2019 September 30, 2018 Carrying value of long-term fixed-rate debt $ 491.7 $ 494.0 Fair value of long-term fixed-rate debt $ 530.0 $ 509.3 |
Summary of Equity Securities | The following is a summary of our securities, which excludes assets held in a Non-Qualified Supplemental Savings Plan: (in thousands) Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Equity Securities: June 30, 2019 $ 38,473 $ 14,865 $ (21,112 ) $ 32,226 September 30, 2018 $ 38,473 $ 44,023 $ — $ 82,496 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | The following provides information at June 30, 2019 related to the Company-sponsored domestic defined benefit pension plan, the Helmerich & Payne, Inc. Employee Retirement Plan (the “Pension Plan”): Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Interest cost $ 1,097 $ 1,013 $ 3,291 $ 3,041 Expected return on plan assets (1,386 ) (1,386 ) (4,158 ) (4,158 ) Recognized net actuarial loss 291 461 874 1,382 Settlement 1,548 — 1,548 — Net pension expense $ 1,550 $ 88 $ 1,555 $ 265 |
BUSINESS SEGMENTS AND GEOGRAP_2
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Financial Information of the Entity's Reportable Segments | Summarized financial information of our reportable segments for the three months ended June 30, 2019 and 2018 is shown in the following tables: Three Months Ended June 30, 2019 (in thousands) U.S. Land (1) Offshore International Land H&P Technologies Other Eliminations Total External Sales $ 593,297 $ 37,674 $ 46,283 $ 7,534 $ 3,186 $ — $ 687,974 Intersegment — — — 1,842 8 $ (1,850 ) — Total Sales 593,297 37,674 46,283 9,376 3,194 (1,850 ) 687,974 Segment Operating Income (Loss) (138,205 ) 5,078 (5,023 ) (8,810 ) (731 ) — (147,691 ) Three Months Ended June 30, 2018 (in thousands) U.S. Land Offshore International Land H&P Technologies (2) Other (2) Eliminations Total External Sales $ 536,582 $ 37,669 $ 63,297 $ 7,693 $ 3,631 $ — $ 648,872 Intersegment 599 — — — 303 (902 ) — Total Sales 537,181 37,669 63,297 7,693 3,934 (902 ) 648,872 Segment Operating Income (Loss) 34,339 3,780 4,332 (9,052 ) 1,826 — 35,225 (1) Includes $9.1 million of technology related sales, of which $1.8 million is fulfilled by the H&P Technologies business segment. (2) Prior period information has been recast to reflect the change in operating segments. Summarized financial information of our reportable segments for the nine months ended June 30, 2019 and 2018 is shown in the following tables: Nine Months Ended June 30, 2019 (in thousands) U.S. Land (1) Offshore International Land H&P Technologies Other Eliminations Total External Sales $ 1,842,054 $ 109,167 $ 163,378 $ 25,199 $ 9,642 $ — $ 2,149,440 Intersegment — — — 4,154 23 (4,177 ) — Total Sales 1,842,054 109,167 163,378 29,353 9,665 (4,177 ) 2,149,440 Segment Operating Income (Loss) 47,602 16,778 9,575 (27,088 ) 1,988 — 48,855 Nine Months Ended June 30, 2018 (in thousands) U.S. Land Offshore International Land H&P Technologies (2) Other (2) Eliminations Total External Sales $ 1,480,951 $ 104,018 $ 178,970 $ 16,842 $ 9,662 $ — $ 1,790,443 Intersegment 634 — — — 775 (1,409 ) — Total Sales 1,481,585 104,018 178,970 16,842 10,437 (1,409 ) 1,790,443 Segment Operating Income (Loss) 86,159 17,954 7,171 (26,400 ) 4,842 — 89,726 (1) Includes $20.9 million of technology related sales, of which $4.2 million is fulfilled by the H&P Technologies business segment. (2) Prior period information has been recast to reflect the change in operating segments. |
Schedule of Reconciliation of Segment Operating Income (Loss) to Income from Continuing Operations Before Income Taxes | The following table reconciles segment operating income (loss) 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 Nine Months Ended (in thousands) 2019 2018 2019 2018 As adjusted As adjusted Segment operating income (loss) $ (147,691 ) $ 35,225 $ 48,855 $ 89,726 Gain on sale of assets 9,960 4,313 27,050 15,133 Corporate selling, general and administrative costs and corporate depreciation (30,143 ) (33,232 ) (94,344 ) (96,108 ) Operating income (loss) from continuing operations (167,874 ) 6,306 (18,439 ) 8,751 Other income (expense) Interest and dividend income 2,349 2,109 6,861 5,680 Interest expense (6,257 ) (5,993 ) (17,145 ) (17,794 ) Loss on investment securities (13,271 ) — (50,228 ) — Other (1,599 ) (61 ) (1,051 ) 170 Total unallocated amounts (18,778 ) (3,945 ) (61,563 ) (11,944 ) Income (loss) from continuing operations before income taxes $ (186,652 ) $ 2,361 $ (80,002 ) $ (3,193 ) |
Schedule of Total Assets by Reportable Segment | The following table presents total assets by reportable segment: (in thousands) June 30, September 30, Total assets U.S. Land $ 4,742,605 $ 5,012,378 Offshore 100,490 105,439 International Land 318,195 362,033 H&P Technologies 149,712 146,957 Other 31,232 29,525 5,342,234 5,656,332 Investments and corporate operations 555,145 558,535 Total assets from continuing operations 5,897,379 6,214,867 Discontinued operations — — $ 5,897,379 $ 6,214,867 |
Schedule of Revenues from External Customers and Long-Lived Assets | The following table presents revenues from external customers by country based on the location of service provided: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Operating revenues United States 641,270 585,126 1,984,695 1,610,319 Argentina 40,977 50,272 123,666 148,901 Colombia 3,451 10,639 28,075 22,872 Other Foreign $ 2,276 $ 2,835 $ 13,004 $ 8,351 Total $ 687,974 $ 648,872 $ 2,149,440 $ 1,790,443 |
GUARANTOR AND NON-GUARANTOR F_2
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS (Unaudited) June 30, 2019 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Assets Current assets: Cash and cash equivalents $ 94,354 $ 224,838 $ 15,583 $ — $ 334,775 Short-term investments — 44,071 1,677 — 45,748 Accounts receivable, net (291 ) 462,885 46,582 (993 ) 508,183 Inventories of materials and supplies, net — 118,530 31,596 — 150,126 Prepaid expenses and other 14,414 19,160 43,684 148 77,406 Total current assets 108,477 869,484 139,122 (845 ) 1,116,238 Investments 15,774 32,226 291 — 48,291 Property, plant and equipment, net 45,450 4,270,440 267,783 — 4,583,673 Intercompany receivables 299,182 1,959,592 522,577 (2,781,351 ) — Goodwill — — 67,902 — 67,902 Intangible assets, net — — 69,093 — 69,093 Other assets 318 6,471 5,393 — 12,182 Investment in subsidiaries 5,926,270 277,550 — (6,203,820 ) — Total assets $ 6,395,471 $ 7,415,763 $ 1,072,161 $ (8,986,016 ) $ 5,897,379 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 84,703 $ 45,946 $ 3,789 $ (361 ) $ 134,077 Accrued liabilities 25,190 205,630 26,113 (484 ) 256,449 Total current liabilities 109,893 251,576 29,902 (845 ) 390,526 Noncurrent liabilities: Long-term debt, net 482,962 8,689 — — 491,651 Deferred income taxes (4,273 ) 783,109 48,191 — 827,027 Intercompany payables 1,690,102 259,027 832,122 (2,781,251 ) — Other 21,733 47,537 9,220 — 78,490 Noncurrent liabilities - discontinued operations — — 14,631 — 14,631 Total noncurrent liabilities 2,190,524 1,098,362 904,164 (2,781,251 ) 1,411,799 Shareholders’ equity: Common stock 11,208 100 — (100 ) 11,208 Additional paid-in capital 501,585 52,437 1,040 (53,477 ) 501,585 Retained earnings 3,750,785 6,025,212 137,055 (6,162,267 ) 3,750,785 Accumulated other comprehensive income (loss) (16,085 ) (11,924 ) — 11,924 (16,085 ) Treasury stock, at cost (152,439 ) — — — (152,439 ) Total shareholders’ equity 4,095,054 6,065,825 138,095 (6,203,920 ) 4,095,054 Total liabilities and shareholders’ equity $ 6,395,471 $ 7,415,763 $ 1,072,161 $ (8,986,016 ) $ 5,897,379 September 30, 2018 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Assets Current assets: Cash and cash equivalents $ — $ 273,214 $ 11,141 $ — $ 284,355 Short-term investments — 41,461 — — 41,461 Accounts receivable, net (29 ) 499,644 65,859 (272 ) 565,202 Inventories of materials and supplies, net — 127,154 30,980 — 158,134 Prepaid expenses and other 20,783 10,649 35,539 (573 ) 66,398 Total current assets 20,754 952,122 143,519 (845 ) 1,115,550 Investments 16,200 82,496 — — 98,696 Property, plant and equipment, net 46,859 4,515,077 295,446 — 4,857,382 Intercompany receivables 161,532 2,024,652 294,206 (2,480,390 ) — Goodwill — — 64,777 — 64,777 Intangible assets, net — — 73,207 — 73,207 Other assets 268 907 4,080 — 5,255 Investment in subsidiaries 5,981,197 172,513 — (6,153,710 ) — Total assets $ 6,226,810 $ 7,747,767 $ 875,235 $ (8,634,945 ) $ 6,214,867 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 83,819 $ 43,626 $ 5,483 $ (264 ) $ 132,664 Accrued liabilities 43,449 164,542 37,093 (580 ) 244,504 Total current liabilities 127,268 208,168 42,576 (844 ) 377,168 Noncurrent liabilities: Long-term debt, net — 493,968 — — 493,968 Deferred income taxes (7,112 ) 834,714 25,534 — 853,136 Intercompany payables 1,701,694 178,759 599,837 (2,480,290 ) — Other 22,225 48,836 22,545 — 93,606 Noncurrent liabilities - discontinued operations — — 14,254 — 14,254 Total noncurrent liabilities 1,716,807 1,556,277 662,170 (2,480,290 ) 1,454,964 Shareholders’ equity: Common stock 11,201 100 — (100 ) 11,201 Additional paid-in capital 500,393 52,437 1,040 (53,477 ) 500,393 Retained earnings 4,027,779 5,910,955 169,449 (6,080,404 ) 4,027,779 Accumulated other comprehensive income 16,550 19,830 — (19,830 ) 16,550 Treasury stock, at cost (173,188 ) — — — (173,188 ) Total shareholders’ equity 4,382,735 5,983,322 170,489 (6,153,811 ) 4,382,735 Total liabilities and shareholders’ equity $ 6,226,810 $ 7,747,767 $ 875,235 $ (8,634,945 ) $ 6,214,867 |
Schedule of Condensed Consolidating Statements of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended June 30, 2019 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Operating revenue $ — $ 633,284 $ 58,870 $ (4,180 ) $ 687,974 Operating costs and other 2,942 780,880 76,383 (4,357 ) 855,848 Operating loss from continuing operations (2,942 ) (147,596 ) (17,513 ) 177 (167,874 ) Other income (expense), net (35 ) (12,639 ) 330 (177 ) (12,521 ) Interest expense (6,083 ) (132 ) (42 ) — (6,257 ) Equity in net loss of subsidiaries (145,440 ) (3,417 ) — 148,857 — Loss from continuing operations before income taxes (154,500 ) (163,784 ) (17,225 ) 148,857 (186,652 ) Income tax (benefit) provision 183 (43,271 ) 11,057 — (32,031 ) Loss from continuing operations (154,683 ) (120,513 ) (28,282 ) 148,857 (154,621 ) Income from discontinued operations before income taxes — — 7,244 — 7,244 Income tax provision — — 7,306 — 7,306 Loss from discontinued operations — — (62 ) — (62 ) Net loss $ (154,683 ) $ (120,513 ) $ (28,344 ) $ 148,857 $ (154,683 ) Three Months Ended June 30, 2018 as adjusted (Note 2) (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Operating revenue $ — $ 574,252 $ 74,647 $ (27 ) $ 648,872 Operating costs and other 4,151 557,994 80,639 (218 ) 642,566 Operating income (loss) from continuing operations (4,151 ) 16,258 (5,992 ) 191 6,306 Other income (expense), net 107 1,854 278 (191 ) 2,048 Interest expense (108 ) (5,117 ) (768 ) — (5,993 ) Equity in net loss of subsidiaries (4,883 ) (2,093 ) — 6,976 — Income (loss) from continuing operations before income taxes (9,035 ) 10,902 (6,482 ) 6,976 2,361 Income tax provision (benefit) (1,027 ) 17,384 (5,822 ) — 10,535 Loss from continuing operations (8,008 ) (6,482 ) (660 ) 6,976 (8,174 ) Income from discontinued operations before income taxes — — 8,383 — 8,383 Income tax provision — — 8,217 — 8,217 Income from discontinued operations — — 166 — 166 Net loss $ (8,008 ) $ (6,482 ) $ (494 ) $ 6,976 $ (8,008 ) Nine Months Ended June 30, 2019 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Operating revenue $ — $ 1,951,221 $ 202,447 $ (4,228 ) $ 2,149,440 Operating costs and other 8,526 1,937,425 226,824 (4,896 ) 2,167,879 Operating income (loss) from continuing operations (8,526 ) 13,796 (24,377 ) 668 (18,439 ) Other income (expense), net (77 ) (45,275 ) 1,602 (668 ) (44,418 ) Interest income (expense) (13,202 ) (4,844 ) 901 — (17,145 ) Equity in net income (loss) of subsidiaries (55,331 ) 6,254 — 49,077 — Loss from continuing operations before income taxes (77,136 ) (30,069 ) (21,874 ) 49,077 (80,002 ) Income tax (benefit) provision (2,303 ) (11,884 ) 8,585 — (5,602 ) Loss from continuing operations (74,833 ) (18,185 ) (30,459 ) 49,077 (74,400 ) Income from discontinued operations before income taxes — — 22,798 — 22,798 Income tax provision — — 23,231 — 23,231 Loss from discontinued operations — — (433 ) — (433 ) Net loss $ (74,833 ) $ (18,185 ) $ (30,892 ) $ 49,077 $ (74,833 ) Nine Months Ended June 30, 2018 as adjusted (Note 2) (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Operating revenue $ — $ 1,584,970 $ 205,537 $ (64 ) $ 1,790,443 Operating costs and other 12,360 1,542,815 227,186 (669 ) 1,781,692 Operating income (loss) from continuing operations (12,360 ) 42,155 (21,649 ) 605 8,751 Other income, net 210 5,226 1,019 (605 ) 5,850 Interest expense (274 ) (15,368 ) (2,152 ) — (17,794 ) Equity in net income of subsidiaries 494,574 3,191 — (497,765 ) — Income (loss) from continuing operations before income taxes 482,150 35,204 (22,782 ) (497,765 ) (3,193 ) Income tax (benefit) provision 1,931 (459,571 ) (36,388 ) — (494,028 ) Income from continuing operations 480,219 494,775 13,606 (497,765 ) 490,835 Income from discontinued operations before income taxes — — 9,127 — 9,127 Income tax provision — — 19,743 — 19,743 Loss from discontinued operations — — (10,616 ) — (10,616 ) Net income $ 480,219 $ 494,775 $ 2,990 $ (497,765 ) $ 480,219 |
Schedule of Condensed Consolidating Statements of Comprehensive Income (Loss) | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) Three Months Ended June 30, 2019 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Net loss $ (154,683 ) $ (120,513 ) $ (28,344 ) $ 148,857 $ (154,683 ) Other comprehensive income, net of income taxes: Minimum pension liability adjustments, net 78 148 — — 226 Other comprehensive income 78 148 — — 226 Comprehensive loss $ (154,605 ) $ (120,365 ) $ (28,344 ) $ 148,857 $ (154,457 ) Three Months Ended June 30, 2018 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Net loss $ (8,008 ) $ (6,482 ) $ (494 ) $ 6,976 $ (8,008 ) Other comprehensive income, net of income taxes: Unrealized depreciation on securities, net — 13,826 — — 13,826 Minimum pension liability adjustments, net 101 236 — — 337 Other comprehensive income $ 101 $ 14,062 $ — $ — $ 14,163 Comprehensive income (loss) $ (7,907 ) $ 7,580 $ (494 ) $ 6,976 $ 6,155 Nine Months Ended June 30, 2019 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Net loss $ (74,833 ) $ (18,185 ) $ (30,892 ) $ 49,077 $ (74,833 ) Other comprehensive income, net of income taxes: Minimum pension liability adjustments, net 233 442 — — 675 Other comprehensive income 233 442 — — 675 Comprehensive loss $ (74,600 ) $ (17,743 ) $ (30,892 ) $ 49,077 $ (74,158 ) Nine Months Ended June 30, 2018 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Net income $ 480,219 $ 494,775 $ 2,990 $ (497,765 ) $ 480,219 Other comprehensive income, net of income taxes: Unrealized appreciation on securities, net — 5,657 — — 5,657 Minimum pension liability adjustments, net 295 690 — — 985 Other comprehensive income 295 6,347 — — 6,642 Comprehensive income $ 480,514 $ 501,122 $ 2,990 $ (497,765 ) $ 486,861 |
Schedule of Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended June 30, 2019 (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Net cash provided by (used in) operating activities $ (15,599 ) $ 657,016 $ 17,954 $ — $ 659,371 Cash flows from investing activities: Capital expenditures (7,355 ) (389,615 ) (6,600 ) — (403,570 ) Purchase of short-term investments — (70,175 ) (1,677 ) — (71,852 ) Payment for acquisition of business, net of cash acquired (2,781 ) — — — (2,781 ) Proceeds from sale of short-term investments — 68,015 — — 68,015 Intercompany transfers 7,355 (7,355 ) — — — Proceeds from asset sales 6 32,585 3,636 — 36,227 Net cash used in investing activities (2,775 ) (366,545 ) (4,641 ) — (373,961 ) Cash flows from financing activities: Intercompany transfers 235,058 (235,058 ) — — — Dividends paid (235,058 ) — — — (235,058 ) Debt issuance costs paid (3,912 ) — — — (3,912 ) Payments for employee taxes on net settlement of equity awards (6,420 ) — — — (6,420 ) Proceeds from stock option exercises 2,901 — — — 2,901 Other intercompany transfers 111,339 (103,788 ) (7,551 ) — — Net cash provided by (used in) financing activities 103,908 (338,846 ) (7,551 ) — (242,489 ) Net increase (decrease) in cash and cash equivalents and restricted cash 85,534 (48,375 ) 5,762 — 42,921 Cash and cash equivalents and restricted cash, beginning of period 6,037 273,214 46,934 — 326,185 Cash and cash equivalents and restricted cash, end of period $ 91,571 $ 224,839 $ 52,696 $ — $ 369,106 Nine Months Ended June 30, 2018 as adjusted (Note 2) (in thousands) Helmerich & Payne, Inc. (Guarantor) Helmerich & Payne International Drilling Co. (Issuer) Non-Guarantor Subsidiaries Eliminations Total Consolidated Net cash provided by operating activities $ 1,914 $ 350,557 $ 18,957 $ — $ 371,428 Cash flows from investing activities: Capital expenditures (8,725 ) (306,278 ) (7,655 ) — (322,658 ) Purchase of short-term investments — (52,159 ) — — (52,159 ) Payment for acquisition of business, net cash acquired (47,886 ) — — — (47,886 ) Proceeds from sale of short-term investments — 52,470 — — 52,470 Intercompany transfers 56,611 (56,611 ) — — — Proceeds from asset sales — 26,737 1,312 — 28,049 Net cash used in investing activities — (335,841 ) (6,343 ) — (342,184 ) Cash flows from financing activities: Intercompany transfers 230,368 (230,368 ) — — — Dividends paid (230,368 ) — — — (230,368 ) Payments for employee taxes on net settlement of equity awards (5,978 ) — — — (5,978 ) Proceeds from stock option exercises 5,160 — — — 5,160 Payment of contingent consideration from acquisition of business — — (10,625 ) — (10,625 ) Net cash used in financing activities (818 ) (230,368 ) (10,625 ) — (241,811 ) Net increase (decrease) in cash and cash equivalents and restricted cash 1,096 (215,652 ) 1,989 — (212,567 ) Cash and cash equivalents and restricted cash, beginning of period 9,385 507,504 43,620 — 560,509 Cash and cash equivalents and restricted cash, end of period $ 10,481 $ 291,852 $ 45,609 $ — $ 347,942 |
NATURE OF OPERATIONS - Narrativ
NATURE OF OPERATIONS - Narrative (Details) $ in Thousands | Nov. 01, 2018USD ($) | Jun. 30, 2019USD ($)location | Sep. 30, 2018USD ($) |
Business Combinations | |||
Number of international locations | location | 4 | ||
Goodwill | $ 67,902 | $ 64,777 | |
AJC | |||
Business Combinations | |||
Total cash consideration given | $ 3,400 | ||
Goodwill | $ 3,100 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 |
RESTRICTED Cash and Investments [Abstract] | ||||
Cash | $ 334,775 | $ 284,355 | $ 306,426 | $ 521,375 |
Restricted cash | 34,300 | 41,800 | 41,500 | 39,100 |
Total cash, cash equivalents, and restricted cash | 369,106 | 326,185 | 347,942 | 560,509 |
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 | 29,300 | 28,500 | ||
Drilling technology companies | ||||
RESTRICTED Cash and Investments [Abstract] | ||||
Restricted cash | 3,000 | 11,300 | ||
Prepaid expenses and other | ||||
RESTRICTED Cash and Investments [Abstract] | ||||
Restricted cash | 30,543 | 39,830 | 34,614 | 32,439 |
Other assets | ||||
RESTRICTED Cash and Investments [Abstract] | ||||
Restricted cash | 3,788 | $ 2,000 | $ 6,902 | $ 6,695 |
United States | ||||
RESTRICTED Cash and Investments [Abstract] | ||||
Cash | 318,900 | |||
Other countries | ||||
RESTRICTED Cash and Investments [Abstract] | ||||
Cash | $ 15,900 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES - Recently Issued Accounting Updates (Details) - USD ($) $ in Thousands | Apr. 01, 2019 | Oct. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
New accounting pronouncements | |||||
Change in prepaid expenses and other | $ (9,556) | $ (9,623) | |||
Change in noncurrent assets | 6,105 | ||||
Change in accrued liabilities | 8,110 | 40,668 | |||
Net cash provided by (used in) operating activities | 659,371 | 371,428 | |||
Payment of contingent consideration from acquisition of business | 0 | (10,625) | |||
Cash (used) in financing activities | 242,489 | 241,811 | |||
Reclassification of stranded tax effect | $ 0 | 0 | |||
Accumulated Other Comprehensive Income (Loss) | |||||
New accounting pronouncements | |||||
Reclassification of stranded tax effect | 4,239 | $ 4,239 | |||
As Reported | |||||
New accounting pronouncements | |||||
Change in prepaid expenses and other | (11,798) | ||||
Change in noncurrent assets | 5,898 | ||||
Change in accrued liabilities | 30,043 | ||||
Net cash provided by (used in) operating activities | 358,421 | ||||
Payment of contingent consideration from acquisition of business | 0 | ||||
Cash (used) in financing activities | 231,186 | ||||
ASU 2016-18 | Adjustments | |||||
New accounting pronouncements | |||||
Change in prepaid expenses and other | 2,175 | ||||
Change in noncurrent assets | 207 | ||||
Change in accrued liabilities | 0 | ||||
Net cash provided by (used in) operating activities | 2,382 | ||||
Payment of contingent consideration from acquisition of business | 0 | ||||
Cash (used) in financing activities | 0 | ||||
ASU 2016-15 | Adjustments | |||||
New accounting pronouncements | |||||
Change in prepaid expenses and other | 0 | ||||
Change in noncurrent assets | 0 | ||||
Change in accrued liabilities | 10,625 | ||||
Net cash provided by (used in) operating activities | 10,625 | ||||
Payment of contingent consideration from acquisition of business | (10,625) | ||||
Cash (used) in financing activities | $ 10,625 | ||||
ASU 2018-02 | |||||
New accounting pronouncements | |||||
Reclassification of stranded tax effect | $ 4,200 | ||||
ASU 2018-02 | Accumulated Other Comprehensive Income (Loss) | |||||
New accounting pronouncements | |||||
Reclassification of stranded tax effect | $ 4,239 | ||||
ASU 2016-01 | Accumulated Other Comprehensive Income (Loss) | |||||
New accounting pronouncements | |||||
Reclassification adjustment after-tax | $ 29,071 | ||||
ASU 2016-01 | Adjustments | |||||
New accounting pronouncements | |||||
Reclassification adjustment before tax | 44,000 | ||||
Reclassification adjustment after-tax | $ 29,100 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES - Self-Insurance (Details) $ in Millions | 9 Months Ended |
Jun. 30, 2019USD ($) | |
Minimum | |
Unusual Risk or Uncertainty [Line Items] | |
Insurance coverage deductibles range for claims which occur outside or inside the United States | $ 1 |
Maximum | |
Unusual Risk or Uncertainty [Line Items] | |
Insurance coverage deductibles range for claims which occur outside or inside the United States | $ 5 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES - International Land Drilling Risks (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)greographical_area | Jun. 30, 2018USD ($) | |
Unusual Risk or Uncertainty [Line Items] | ||||
Cumulative inflation rate before a country is considered highly inflationary (as a percent) | 100.00% | |||
Foreign currency gain (loss) | $ | $ 0.1 | $ (1.1) | $ (4.6) | $ (2.5) |
Minimum | ||||
Unusual Risk or Uncertainty [Line Items] | ||||
Number of geographical areas operating in (more than) | greographical_area | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, RISKS AND UNCERTAINTIES - Concentration of Risk (Details) - Contract drilling - Operating revenues - Customer concentration | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
International locations | ||
Revenue, Major Customers [Line Items] | ||
Concentration percentage | 7.70% | 10.10% |
South America | ||
Revenue, Major Customers [Line Items] | ||
Concentration percentage | 92.10% | 95.40% |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) | Jun. 30, 2019Bs. / $ | Jun. 30, 2018zero_eliminatedBs. / $ |
Discontinued Operations and Disposal Groups [Abstract] | ||
Foreign exchange rate (in bolivars per usd) | 10 | |
Number of zeros eliminated from the old currency | zero_eliminated | 5 | |
DICOM floating rate (in bolivars per usd) | 6,566 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Property and Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2018 | |
PROPERTY, PLANT AND EQUIPMENT | ||
Property, plant and equipment, gross | $ 9,186,315 | $ 9,146,247 |
Accumulated depreciation | (4,602,642) | (4,288,865) |
Property, plant and equipment, net | 4,583,673 | 4,857,382 |
Contract drilling equipment | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Property, plant and equipment, gross | $ 8,486,332 | 8,442,081 |
Contract drilling equipment | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated useful lives | 4 years | |
Contract drilling equipment | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated useful lives | 15 years | |
Real estate properties | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Property, plant and equipment, gross | $ 71,114 | 68,888 |
Real estate properties | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated useful lives | 10 years | |
Real estate properties | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated useful lives | 45 years | |
Other | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Property, plant and equipment, gross | $ 469,933 | 471,310 |
Other | Minimum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated useful lives | 2 years | |
Other | Maximum | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Estimated useful lives | 23 years | |
Construction in progress | ||
PROPERTY, PLANT AND EQUIPMENT | ||
Property, plant and equipment, gross | $ 158,936 | $ 163,968 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Depreciation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment | ||||
Depreciation | $ 141.9 | $ 143.1 | $ 423.6 | $ 430 |
Abandonments | $ 1.4 | $ 7 | 6.8 | $ 22.5 |
Increase in depreciation expense in next three months | 0.7 | |||
Decrease in depreciation expense in year 2020 | 0.8 | |||
Decrease in depreciation expense in year 2021 | 0.8 | |||
Decrease in depreciation expense in year 2022 | 0.6 | |||
Decrease in depreciation expense in year 2023 | 0.3 | |||
Decrease in depreciation expense in year 2024 | 0.3 | |||
Decrease in depreciation expense thereafter | 0.5 | |||
Rigs components depreciation | ||||
Property, Plant and Equipment | ||||
Increase in depreciation | $ 4.5 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Gain on Sale of Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Gain on sale of assets | $ (9,960) | $ (4,313) | $ (27,050) | $ (15,133) |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT - Impairments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019USD ($)rig | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)rig | Jun. 30, 2018USD ($) | Jun. 29, 2019USD ($)rig | Sep. 30, 2018USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Property, plant and equipment, net | $ 4,583,673 | $ 4,583,673 | $ 4,857,382 | |||
Asset impairment charge | 224,327 | $ 0 | 224,327 | $ 0 | ||
Domestic FlexRig4 Asset Group | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Property, plant and equipment, net | $ 107,500 | $ 107,500 | $ 317,800 | |||
Number of drill rigs evaluated for impairment | rig | 20 | 20 | 71 | |||
International FlexRig4 Asset Group | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Property, plant and equipment, net | $ 47,800 | $ 47,800 | $ 55,700 | |||
Number of drill rigs evaluated for impairment | rig | 8 | 8 | 10 | |||
FlexRig4 Asset Group | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Property, plant and equipment, net | $ 235,300 | |||||
U.S. Land | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Asset impairment charge | $ 216,900 | |||||
International Land | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Asset impairment charge | $ 7,400 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Balance at beginning of period | $ 64,777 |
Additions (Note 1) | 3,125 |
Goodwill, balance at end of period | $ 67,902 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2018 | |
Intangible Assets | ||
Gross Carrying Amount | $ 79,900 | $ 79,700 |
Accumulated Amortization | 10,807 | 6,493 |
Net | $ 69,093 | 73,207 |
Developed technology | ||
Intangible Assets | ||
Estimated Useful Lives | 15 years | |
Gross Carrying Amount | $ 70,200 | 70,000 |
Accumulated Amortization | 9,089 | 5,589 |
Net | $ 61,111 | 64,411 |
Trade name | ||
Intangible Assets | ||
Estimated Useful Lives | 20 years | |
Gross Carrying Amount | $ 5,700 | 5,700 |
Accumulated Amortization | 451 | 237 |
Net | $ 5,249 | 5,463 |
Customer relationships | ||
Intangible Assets | ||
Estimated Useful Lives | 5 years | |
Gross Carrying Amount | $ 4,000 | 4,000 |
Accumulated Amortization | 1,267 | 667 |
Net | $ 2,733 | $ 3,333 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization | $ 1.4 | $ 1.4 | $ 4.2 | $ 3.9 |
Expected annual amortization in next fiscal year | 5.8 | 5.8 | ||
Expected annual amortization in year two | 5.8 | 5.8 | ||
Expected annual amortization in year three | 5.8 | 5.8 | ||
Expected annual amortization in year four | $ 5.1 | $ 5.1 |
DEBT - Schedule of Components o
DEBT - Schedule of Components of Unsecured Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 20, 2018 | Sep. 30, 2018 |
Debt | ||||
Face amount | $ 500,000 | $ 500,000 | ||
Unamortized discount and debt issuance cost | (8,349) | (6,032) | ||
Book value | 491,651 | 493,968 | ||
Long-term debt due within one year, face amount | 0 | 0 | ||
Unamortized discount and debt issuance cost | 0 | 0 | ||
Long term debt due within one year, book value | 0 | 0 | ||
Unamortized debt issuance cost | (8,349) | (6,032) | ||
Long-term debt | 491,651 | 493,968 | ||
HPIDC 2025 Notes | ||||
Debt | ||||
Face amount | 500,000 | 500,000 | ||
Unamortized discount and debt issuance cost | (8,349) | (6,032) | ||
Book value | $ 491,651 | $ 12,900 | $ 12,900 | $ 493,968 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Feb. 15, 2019 | Nov. 19, 2018USD ($) | Nov. 13, 2018USD ($) | Mar. 19, 2015USD ($) | Jun. 30, 2019USD ($)debt_instrumentnumber_of_letters_of_credit | Dec. 31, 2018USD ($) | Dec. 20, 2018USD ($) | Sep. 30, 2018USD ($) |
Debt | ||||||||
Debt issued (up to) | $ 500,000,000 | |||||||
Debt outstanding | $ 491,651,000 | $ 493,968,000 | ||||||
Number of letters of credit outstanding | number_of_letters_of_credit | 2 | |||||||
HPIDC 2025 Notes | ||||||||
Debt | ||||||||
Debt issued (up to) | $ 500,000,000 | |||||||
Long-term debt stated interest rate percentage | 4.65% | |||||||
Term of debt | 10 years | |||||||
Debt outstanding | $ 491,651,000 | $ 12,900,000 | $ 12,900,000 | $ 493,968,000 | ||||
2018 Credit Facility | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 750,000,000 | |||||||
Contingent increase | $ 300,000,000 | |||||||
Commitment fee (as a percent) | 0.125% | |||||||
Maximum limit of priority debt on net worth | 17.50% | |||||||
Borrowing amount outstanding | $ 0 | |||||||
Available borrowing capacity | $ 740,000,000 | |||||||
2018 Credit Facility | Minimum | ||||||||
Debt | ||||||||
Commitment fee (as a percent) | 0.075% | |||||||
2018 Credit Facility | Maximum | ||||||||
Debt | ||||||||
Commitment fee (as a percent) | 0.20% | |||||||
Total debt to total capitalization (as a percent) | 50.00% | |||||||
2018 Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||
Debt | ||||||||
Interest spread on borrowings (as a percent) | 1.125% | |||||||
2018 Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||
Debt | ||||||||
Interest spread on borrowings (as a percent) | 0.875% | |||||||
2018 Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||
Debt | ||||||||
Interest spread on borrowings (as a percent) | 1.50% | |||||||
2018 Credit Facility | Letter of Credit | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 75,000,000 | |||||||
Number of letters of credit outstanding | debt_instrument | 1 | |||||||
Letters of credit outstanding/issued | $ 10,000,000 | |||||||
2016 Credit Facility | ||||||||
Debt | ||||||||
Decrease in credit facility | $ 300,000,000 | |||||||
Unsecured Standalone Line of Credit Facility | ||||||||
Debt | ||||||||
Maximum borrowing capacity | 12,000,000 | |||||||
Company 2025 Notes | ||||||||
Debt | ||||||||
Debt issued (up to) | $ 487,100,000 | $ 487,100,000 | ||||||
Long-term debt stated interest rate percentage | 4.65% | |||||||
Term of debt | 10 years | |||||||
Percentage of notes exchanged | 99.99% | |||||||
Company 2025 Notes | Maximum | ||||||||
Debt | ||||||||
Debt issued (up to) | $ 500,000,000 | |||||||
Bilateral Line of Credit with Bank, One | ||||||||
Debt | ||||||||
Letters of credit outstanding/issued | 25,500,000 | |||||||
Bilateral Line of Credit with Bank, Two | ||||||||
Debt | ||||||||
Letters of credit outstanding/issued | $ 2,100,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Effective income tax rates as compared to the U.S. Federal income tax rate | ||||
Income tax (benefit) provision | $ (32,031) | $ 10,535 | $ (5,602) | $ (494,028) |
Effective income tax rate (as a percent) | 17.20% | 446.20% | 7.00% | 15472.20% |
Income tax (benefit) from discrete adjustments | $ (8,200) | $ (492,200) |
SHAREHOLDERS' EQUITY - Repurcha
SHAREHOLDERS' EQUITY - Repurchases of Stock (Details) - shares | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Payments for Repurchase of Equity [Abstract] | ||
Repurchase of common stock (in shares) | 0 | 0 |
Maximum | ||
Payments for Repurchase of Equity [Abstract] | ||
Number of common shares authorized to be repurchased (in shares) | 4,000,000,000,000 |
SHAREHOLDERS' EQUITY - AOCI Com
SHAREHOLDERS' EQUITY - AOCI Components (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
After-tax amounts: | ||
Accumulated other comprehensive income (loss) | $ (16,085) | $ 16,550 |
Unrealized Appreciation on Equity Securities | ||
Pre-tax amounts: | ||
Accumulated other comprehensive income (loss) | 0 | 44,023 |
After-tax amounts: | ||
Accumulated other comprehensive income (loss) | 0 | 29,071 |
Defined Benefit Pension Plan | ||
Pre-tax amounts: | ||
Accumulated other comprehensive income (loss) | (20,818) | (21,693) |
After-tax amounts: | ||
Accumulated other comprehensive income (loss) | (16,085) | (12,521) |
Accumulated Other Comprehensive Income (Loss) | ||
Pre-tax amounts: | ||
Accumulated other comprehensive income (loss) | (20,818) | 22,330 |
After-tax amounts: | ||
Accumulated other comprehensive income (loss) | $ (16,085) | $ 16,550 |
SHAREHOLDERS' EQUITY - AOCI Cha
SHAREHOLDERS' EQUITY - AOCI Changes (Details) - USD ($) $ in Thousands | Apr. 01, 2019 | Oct. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2019 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 4,318,620 | $ 4,382,735 | $ 4,318,620 | $ 4,382,735 |
Adoption of ASU No. 2018-02 | 0 | 0 | ||
Balance at end of period | 4,095,054 | 4,095,054 | ||
ASU 2018-02 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Adoption of ASU No. 2018-02 | (4,200) | |||
Unrealized Appreciation on Equity Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 29,071 | 29,071 | ||
Adjusted balance after impact of new accounting pronouncements | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Net current-period other comprehensive loss | 0 | |||
Balance at end of period | 0 | 0 | ||
Unrealized Appreciation on Equity Securities | ASU 2018-02 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Adoption of ASU No. 2018-02 | 0 | |||
Unrealized Appreciation on Equity Securities | ASU 2016-01 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Adoption of ASU No. 2016-01 | (29,071) | |||
Defined Benefit Pension Plan | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (12,072) | (12,521) | (12,072) | (12,521) |
Adjusted balance | (16,311) | |||
Adjusted balance after impact of new accounting pronouncements | (16,760) | |||
Amounts reclassified from accumulated other comprehensive loss | 226 | 675 | ||
Net current-period other comprehensive loss | 226 | 675 | ||
Balance at end of period | (16,085) | (16,085) | ||
Defined Benefit Pension Plan | ASU 2018-02 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Adoption of ASU No. 2018-02 | (4,239) | |||
Defined Benefit Pension Plan | ASU 2016-01 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Adoption of ASU No. 2016-01 | 0 | |||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (12,072) | 16,550 | (12,072) | 16,550 |
Adoption of ASU No. 2018-02 | (4,239) | (4,239) | ||
Adjusted balance after impact of new accounting pronouncements | (16,760) | |||
Amounts reclassified from accumulated other comprehensive loss | 675 | |||
Net current-period other comprehensive loss | 675 | |||
Balance at end of period | $ (16,085) | $ (16,085) | ||
Accumulated Other Comprehensive Income (Loss) | ASU 2018-02 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Adoption of ASU No. 2018-02 | $ (4,239) | |||
Accumulated Other Comprehensive Income (Loss) | ASU 2016-01 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Adoption of ASU No. 2016-01 | $ (29,071) |
SHAREHOLDER'S EQUITY - AOCI Rec
SHAREHOLDER'S EQUITY - AOCI Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense) | $ (18,778) | $ (3,945) | $ (61,563) | $ (11,944) |
Income tax provision | 32,031 | (10,535) | 5,602 | 494,028 |
Net loss | (154,683) | (8,008) | (74,833) | 480,219 |
Defined Benefit Pension Plan | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax provision | 65 | 124 | 199 | 397 |
Net loss | (226) | (337) | (675) | (985) |
Amortization of net actuarial loss on defined benefit pension plan | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense) | $ (291) | $ (461) | $ (874) | $ (1,382) |
SHAREHOLDER'S EQUITY - Cash Div
SHAREHOLDER'S EQUITY - Cash Dividends (Details) - $ / shares | Jun. 05, 2019 | Jun. 03, 2019 | Mar. 06, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Stockholders' Equity Note [Abstract] | |||||||
Cash dividends declared, per share (in dollars per share) | $ 0.71 | $ 0.71 | $ 0.71 | $ 0.71 | $ 2.13 | $ 2.11 | |
Cash dividend paid, per share (in dollars per share) | $ 0.71 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)month | Jun. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | ||||
Early termination revenue | $ 0.8 | $ 6 | $ 9.1 | $ 14.3 |
Capitalized cost | $ 15.9 | $ 15.9 | ||
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 | Jun. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 1.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 0.5 |
Revenue from Contracts with Customers | |
Revenue, remaining performance obligation, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 0.9 |
Revenue from Contracts with Customers | |
Revenue, remaining performance obligation, period | 12 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 | $ 0.2 |
Revenue from Contracts with Customers | |
Revenue, remaining performance obligation, period | 12 months |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Assets and Liabilities (Details) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019USD ($)month | Sep. 30, 2018USD ($) | |
Revenue from Contracts with Customers | ||
Number of months of unsatisfied performance obligations represent in our backlog relating to contract that currently contain month-to-month terms | month | 1 | |
Contract assets | $ 1,551 | $ 2,600 |
Revenue from Contracts with Customers | ||
Contract liabilities balance at beginning of period | 30,032 | |
Payment received/accrued and deferred | 21,656 | |
Revenue recognized during the period | (30,903) | |
Contract liabilities balance at period end | $ 20,785 | |
Minimum | ||
Revenue from Contracts with Customers | ||
Outstanding accounts receivable payment period | 1 day | |
Maximum | ||
Revenue from Contracts with Customers | ||
Outstanding accounts receivable payment period | 30 days |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)componenttrancheshares | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting units ranges | 0.00% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting units ranges | 200.00% | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
The period from the grant date after which options expire | 10 years | |
Total intrinsic value of options exercised | $ 0.3 | $ 7.9 |
Unrecognized compensation cost | 3.9 | $ 3.9 |
Weighted average period over which unrecognized compensation cost is expected to be recognized | 2 years 1 month 6 days | |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average period over which unrecognized compensation cost is expected to be recognized | 2 years 4 months 24 days | |
Vesting period | 4 years | |
Unrecognized compensation cost | 41.8 | $ 41.8 |
Performance share units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average period over which unrecognized compensation cost is expected to be recognized | 1 year 10 months 24 days | |
Vesting period | 3 years | |
Unrecognized compensation cost | $ 6.1 | $ 6.1 |
Performance components | component | 2 | |
First Component Of Performance Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
The period from the grant date after which options expire | 3 years | |
Second Component Of Performance Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
The period from the grant date after which options expire | 3 years | |
Number of tranches | tranche | 3 | |
Sharebased payment award by performance cycle | 1 year | |
2016 Plan | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | shares | 0 | |
2016 Plan | Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | shares | 474,775 | |
2016 Plan | Performance share units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | shares | 145,153 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Compensation Cost for Stock-Based Payment Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 8,878 | $ 7,926 | $ 25,467 | $ 23,472 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 719 | 1,815 | 3,073 | 5,887 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 6,771 | 6,111 | 19,374 | 17,585 |
Performance share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 1,388 | $ 0 | $ 3,020 | $ 0 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Options (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | |
Shares | ||
Forfeited/Expired (in shares) | shares | (14) | |
Weighted Average Exercise Price | ||
Forfeited/Expired (in dollars per share) | $ / shares | $ 62.24 | |
Stock options | ||
Shares | ||
Options outstanding at the beginning of the period (in shares) | shares | 3,292 | 3,499 |
Exercised (in shares) | shares | (15) | (213) |
Forfeited/Expired (in shares) | shares | (23) | |
Option outstanding at the end of the period (in shares) | shares | 3,263 | 3,263 |
Options vested and expected to vest at the end of the period (in shares) | shares | 3,263 | 3,263 |
Exercisable at the end of the period (in shares) | shares | 2,505 | 2,505 |
Weighted Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 60.77 | $ 58.62 |
Exercised (in dollars per share) | $ / shares | 42.67 | 24.21 |
Forfeited/Expired (in dollars per share) | $ / shares | 60.77 | |
Outstanding at the end of the period (in dollars per share) | $ / shares | 60.85 | 60.85 |
Vested and expected to vest at the end of the period (in dollars per share) | $ / shares | 60.85 | 60.85 |
Exercisable at the end of the period (in dollars per share) | $ / shares | $ 60.37 | $ 60.37 |
Weighted Average Remaining Contractual Term in Years | ||
Outstanding at the end of the period (in years) | 5 years 5 months 1 day | |
Vested and expected to vest (in years) | 5 years 5 months 1 day | |
Exercisable at the end of the period (in years) | 4 years 8 months 8 days | |
Outstanding at the end of the period, Aggregate Intrinsic Value | $ | $ 3,158 | $ 3,158 |
Vested and expected to vest at end of the period, Aggregate Intrinsic Value | $ | 3,158 | 3,158 |
Exercisable at end of the period, Aggregate Intrinsic Value | $ | $ 3,158 | $ 3,158 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock (Details) - Restricted stock shares in Thousands | 9 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Shares | |
Outstanding at the beginning of the period (in shares) | shares | 1,001 |
Granted (in shares) | shares | 475 |
Vested (in shares) | shares | (369) |
Forfeited (in shares) | shares | (17) |
Outstanding at the end of the period (in shares) | shares | 1,090 |
Weighted Average Grant Date Fair Value per Share | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 63.74 |
Granted (in dollars per share) | $ / shares | 58.45 |
Vested (in dollars per share) | $ / shares | 64.32 |
Forfeited (in dollars per share) | $ / shares | 61.01 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 61.28 |
STOCK-BASED COMPENSATION - Perf
STOCK-BASED COMPENSATION - Performance (Details) - Performance share units shares in Thousands | 9 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Shares | |
Outstanding at the beginning of the period (in shares) | shares | 0 |
Granted (in shares) | shares | 145 |
Outstanding at the end of the period (in shares) | shares | 145 |
Weighted Average Grant Date Fair Value per Share | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 62.66 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 62.66 |
EARNINGS (LOSS) PER COMMON SH_3
EARNINGS (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Income (loss) from continuing operations | $ (154,621) | $ (8,174) | $ (74,400) | $ 490,835 |
Income (loss) from discontinued operations | (62) | 166 | (433) | (10,616) |
Net income (loss) | (154,683) | (8,008) | (74,833) | 480,219 |
Adjustment for basic earnings per share | ||||
Earnings allocated to unvested shareholders | (772) | (717) | (2,332) | (4,241) |
Numerator for basic earnings (loss) per share: | ||||
From continuing operations | (155,393) | (8,891) | (76,732) | 486,594 |
From discontinued operations | (62) | 166 | (433) | (10,616) |
Net income (loss) attributable to parent, basic | (155,455) | (8,725) | (77,165) | 475,978 |
Adjustment for diluted earnings (loss) per share: | ||||
Effect of reallocating undistributed earnings of unvested shareholders | 0 | 0 | 0 | 10 |
Numerator for diluted earnings (loss) per share: | ||||
From continuing operations | (155,393) | (8,891) | (76,732) | 486,604 |
From discontinued operations | (62) | 166 | (433) | (10,616) |
Net income (loss) attributable to parent, diluted | $ (155,455) | $ (8,725) | $ (77,165) | $ 475,988 |
Denominator: | ||||
Denominator for basic earnings (loss) per share – weighted-average shares (in shares) | 109,425 | 108,905 | 109,324 | 108,818 |
Effect of dilutive shares from stock options, restricted stock and performance share units (in shares) | 0 | 0 | 0 | 520 |
Denominator for diluted earnings (loss) per share – adjusted weighted-average shares (in shares) | 109,425 | 108,905 | 109,324 | 109,338 |
Basic earnings (loss) per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | $ (1.42) | $ (0.08) | $ (0.71) | $ 4.47 |
Loss from discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.10) |
Net income (loss) (in dollars per share) | (1.42) | (0.08) | (0.71) | 4.37 |
Diluted earnings (loss) per common share: | ||||
Income (loss) from continuing operations (in dollars per share) | (1.42) | (0.08) | (0.71) | 4.45 |
Loss from discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.10) |
Net income (loss) (in dollars per share) | $ (1.42) | $ (0.08) | $ (0.71) | $ 4.35 |
Outstanding equity awards | ||||
Shares excluded from calculation of diluted earnings (loss) per share (in shares) | 2,753 | 929 | 2,768 | 1,585 |
Weighted-average price per share (in dollars per share) | $ 64.22 | $ 75.56 | $ 64.21 | $ 68.51 |
FAIR VALUE MEASUREMENT OF FIN_3
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt issued | $ 500,000,000 | |
Decrease in fair value of investments | 50,300,000 | |
(Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held in Non-Qualified Supplement Savings Plan, at fair value | $ 15,800,000 | $ 16,200,000 |
FAIR VALUE MEASUREMENT OF FIN_4
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
(Level 1) | ||
Short-term investments: | ||
Investments | $ 32,226 | $ 82,496 |
Recurring basis | ||
Short-term investments: | ||
Short-term investments | 45,748 | |
Cash and cash equivalents | 334,775 | |
Investments | 32,517 | |
Other current assets | 30,543 | |
Other assets | 3,788 | |
Total assets measured at fair value | 447,371 | |
Liabilities: | ||
Contingent earnout liability | 9,555 | |
Recurring basis | (Level 1) | ||
Short-term investments: | ||
Short-term investments | 26,840 | |
Cash and cash equivalents | 334,775 | |
Investments | 32,226 | |
Other current assets | 30,543 | |
Other assets | 3,788 | |
Total assets measured at fair value | 428,172 | |
Liabilities: | ||
Contingent earnout liability | 0 | |
Recurring basis | (Level 2) | ||
Short-term investments: | ||
Short-term investments | 18,908 | |
Cash and cash equivalents | 0 | |
Investments | 291 | |
Other current assets | 0 | |
Other assets | 0 | |
Total assets measured at fair value | 19,199 | |
Liabilities: | ||
Contingent earnout liability | 0 | |
Recurring basis | (Level 3) | ||
Short-term investments: | ||
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 | 9,555 | |
Certificates of deposit | Recurring basis | ||
Short-term investments: | ||
Short-term investments | 6,728 | |
Certificates of deposit | Recurring basis | (Level 1) | ||
Short-term investments: | ||
Short-term investments | 0 | |
Certificates of deposit | Recurring basis | (Level 2) | ||
Short-term investments: | ||
Short-term investments | 6,728 | |
Certificates of deposit | Recurring basis | (Level 3) | ||
Short-term investments: | ||
Short-term investments | 0 | |
Corporate and municipal debt securities | Recurring basis | ||
Short-term investments: | ||
Short-term investments | 12,180 | |
Corporate and municipal debt securities | Recurring basis | (Level 1) | ||
Short-term investments: | ||
Short-term investments | 0 | |
Corporate and municipal debt securities | Recurring basis | (Level 2) | ||
Short-term investments: | ||
Short-term investments | 12,180 | |
Corporate and municipal debt securities | Recurring basis | (Level 3) | ||
Short-term investments: | ||
Short-term investments | 0 | |
U.S. government and federal agency securities | Recurring basis | ||
Short-term investments: | ||
Short-term investments | 26,840 | |
U.S. government and federal agency securities | Recurring basis | (Level 1) | ||
Short-term investments: | ||
Short-term investments | 26,840 | |
U.S. government and federal agency securities | Recurring basis | (Level 2) | ||
Short-term investments: | ||
Short-term investments | 0 | |
U.S. government and federal agency securities | Recurring basis | (Level 3) | ||
Short-term investments: | ||
Short-term investments | $ 0 |
FAIR VALUE MEASUREMENT OF FIN_5
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Level 3 Reconciliation (Details) - (Level 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of changes in the fair value of our financial assets and liabilities | ||||
Net liabilities at beginning of period | $ 9,015 | $ 15,702 | $ 11,160 | $ 14,879 |
Additions | 0 | 0 | 673 | 0 |
Included in earnings | 540 | (175) | (2,278) | 5,148 |
Settlements | 0 | (6,125) | 0 | (10,625) |
Net liabilities at end of period | $ 9,555 | $ 9,402 | $ 9,555 | $ 9,402 |
FAIR VALUE MEASUREMENT OF FIN_6
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Significant Unobservable Inputs for Contingent Consideration (Details) - (Level 3) $ in Thousands | Jun. 30, 2019USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair value of contingent consideration | $ 9,555 |
Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration inputs under Monte Carlo simulation | 0.110 |
Revenue volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration inputs under Monte Carlo simulation | 0.130 |
Risk free rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration inputs under Monte Carlo simulation | 0.020 |
FAIR VALUE MEASUREMENT OF FIN_7
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Long-Term Debt Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Supplemental fair value information about long-term fixed-rate debt | ||
Long-term debt | $ 491,651 | $ 493,968 |
(Level 2) | ||
Supplemental fair value information about long-term fixed-rate debt | ||
Fair value of long-term fixed-rate debt | 530,000 | 509,300 |
Carrying value | ||
Supplemental fair value information about long-term fixed-rate debt | ||
Long-term debt | $ 491,700 | $ 494,000 |
FAIR VALUE MEASUREMENT OF FIN_8
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS - Equity Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Sep. 30, 2018 | |
Equity Securities | ||
Cost | $ 38,473 | $ 38,473 |
Gross Unrealized Gains | 14,865 | 44,023 |
Gross Unrealized Losses | (21,112) | 0 |
(Level 1) | ||
Equity Securities | ||
Estimated Fair Value | $ 32,226 | $ 82,496 |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of net periodic pension expense (benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Components of the net periodic pension expense (benefit) | ||||
Interest cost | $ 1,097 | $ 1,013 | $ 3,291 | $ 3,041 |
Expected return on plan assets | (1,386) | (1,386) | (4,158) | (4,158) |
Recognized net actuarial loss | 291 | 461 | 874 | 1,382 |
Settlement | 1,548 | 0 | 1,548 | 0 |
Net pension expense | $ 1,550 | $ 88 | $ 1,555 | $ 265 |
EMPLOYEE BENEFIT PLANS EMPLOYEE
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Retirement Benefits [Abstract] | ||||
Settlement expense | $ (1,548,000) | $ 0 | $ (1,548,000) | $ 0 |
Employer contribution | $ 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 1 Months Ended | |
Jan. 31, 2018 | Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase orders outstanding for equipment, parts and supplies | $ 21,800,000 | |
Contingent gains recognized in consolidated financial statements | $ 0 | |
Litigation settlement | $ 21,000,000 |
BUSINESS SEGMENTS AND GEOGRAP_3
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Income by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 687,974 | $ 648,872 | $ 2,149,440 | $ 1,790,443 |
Segment Operating Income (Loss) | (147,691) | 35,225 | 48,855 | 89,726 |
U.S. Land | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 593,297 | 537,181 | 1,842,054 | 1,481,585 |
Segment Operating Income (Loss) | (138,205) | 34,339 | 47,602 | 86,159 |
Offshore | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 37,674 | 37,669 | 109,167 | 104,018 |
Segment Operating Income (Loss) | 5,078 | 3,780 | 16,778 | 17,954 |
International Land | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 46,283 | 63,297 | 163,378 | 178,970 |
Segment Operating Income (Loss) | (5,023) | 4,332 | 9,575 | 7,171 |
H&P Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 9,376 | 7,693 | 29,353 | 16,842 |
Segment Operating Income (Loss) | (8,810) | (9,052) | (27,088) | (26,400) |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 3,194 | 3,934 | 9,665 | 10,437 |
Segment Operating Income (Loss) | (731) | 1,826 | 1,988 | 4,842 |
Operating Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 687,974 | 648,872 | 2,149,440 | 1,790,443 |
Operating Segment | U.S. Land | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 593,297 | 536,582 | 1,842,054 | 1,480,951 |
Operating Segment | U.S. Land | Technology | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 9,100 | 20,900 | ||
Operating Segment | Offshore | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 37,674 | 37,669 | 109,167 | 104,018 |
Operating Segment | International Land | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 46,283 | 63,297 | 163,378 | 178,970 |
Operating Segment | H&P Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 7,534 | 7,693 | 25,199 | 16,842 |
Operating Segment | H&P Technologies | Technology | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 1,800 | 4,200 | ||
Operating Segment | Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 3,186 | 3,631 | 9,642 | 9,662 |
Inter-Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (1,850) | (902) | (4,177) | (1,409) |
Inter-Segment | U.S. Land | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 599 | 0 | 634 |
Inter-Segment | Offshore | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Inter-Segment | International Land | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Inter-Segment | H&P Technologies | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 1,842 | 0 | 4,154 | 0 |
Inter-Segment | Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 8 | $ 303 | $ 23 | $ 775 |
BUSINESS SEGMENTS AND GEOGRAP_4
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Abstract] | ||||
Segment operating income (loss) | $ (147,691) | $ 35,225 | $ 48,855 | $ 89,726 |
Gain on sale of assets | 9,960 | 4,313 | 27,050 | 15,133 |
Corporate selling, general and administrative costs and corporate depreciation | (30,143) | (33,232) | (94,344) | (96,108) |
Operating income (loss) from continuing operations | (167,874) | 6,306 | (18,439) | 8,751 |
Nonoperating Income (Expense) [Abstract] | ||||
Interest and dividend income | 2,349 | 2,109 | 6,861 | 5,680 |
Interest expense | (6,257) | (5,993) | (17,145) | (17,794) |
Loss on investment securities | (13,271) | 0 | (50,228) | 0 |
Other | (1,599) | (61) | (1,051) | 170 |
Total other income (expense) | (18,778) | (3,945) | (61,563) | (11,944) |
Income (loss) from continuing operations before income taxes | $ (186,652) | $ 2,361 | $ (80,002) | $ (3,193) |
BUSINESS SEGMENTS AND GEOGRAP_5
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Total assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Segment Reporting Information [Line Items] | ||
Assets | $ 5,897,379 | $ 6,214,867 |
Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 5,342,234 | 5,656,332 |
Investments and Corporate Operations | ||
Segment Reporting Information [Line Items] | ||
Assets | 555,145 | 558,535 |
U.S. Land | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 4,742,605 | 5,012,378 |
Offshore | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 100,490 | 105,439 |
International Land | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 318,195 | 362,033 |
H&P Technologies | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 149,712 | 146,957 |
Other | Operating Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 31,232 | 29,525 |
Continued operations | ||
Segment Reporting Information [Line Items] | ||
Assets | 5,897,379 | 6,214,867 |
Discontinued operations | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 0 | $ 0 |
BUSINESS SEGMENTS AND GEOGRAP_6
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION - Revenue from external customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 687,974 | $ 648,872 | $ 2,149,440 | $ 1,790,443 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 641,270 | 585,126 | 1,984,695 | 1,610,319 |
Argentina | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 40,977 | 50,272 | 123,666 | 148,901 |
Colombia | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 3,451 | 10,639 | 28,075 | 22,872 |
Other Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 2,276 | $ 2,835 | $ 13,004 | $ 8,351 |
GUARANTOR AND NON-GUARANTOR F_3
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Narrative (Details) - USD ($) | Jun. 30, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Dec. 20, 2018 | Sep. 30, 2018 | Mar. 31, 2015 | Mar. 19, 2015 |
Financial Information | |||||||
Debt issued | $ 500,000,000 | ||||||
Debt outstanding | 491,651,000 | $ 493,968,000 | |||||
HPIDC 2025 Notes | |||||||
Financial Information | |||||||
Debt issued | $ 500,000,000 | ||||||
Debt outstanding | $ 491,651,000 | $ 12,900,000 | $ 12,900,000 | $ 493,968,000 | |||
Company 2025 Notes | |||||||
Financial Information | |||||||
Debt issued | $ 487,100,000 | $ 487,100,000 | |||||
Notes exchanged | $ 487,000,000 | ||||||
Helmerich & Payne International Drilling Co. (Issuer) | HPIDC 2025 Notes | |||||||
Financial Information | |||||||
Debt issued | $ 500,000,000 |
GUARANTOR AND NON-GUARANTOR F_4
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 |
Current assets: | ||||||
Cash and cash equivalents | $ 334,775 | $ 284,355 | $ 306,426 | $ 521,375 | ||
Short-term investments | 45,748 | 41,461 | ||||
Accounts receivable, net | 508,183 | 565,202 | ||||
Inventories of materials and supplies, net | 150,126 | 158,134 | ||||
Prepaid expenses and other | 77,406 | 66,398 | ||||
Total current assets | 1,116,238 | 1,115,550 | ||||
Investments | 48,291 | 98,696 | ||||
Property, plant and equipment, net | 4,583,673 | 4,857,382 | ||||
Intercompany receivables | 0 | 0 | ||||
Goodwill | 67,902 | 64,777 | ||||
Intangible assets, net | 69,093 | 73,207 | ||||
Other assets | 12,182 | 5,255 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Total assets | 5,897,379 | 6,214,867 | ||||
Current Liabilities: | ||||||
Accounts payable | 134,077 | 132,664 | ||||
Accrued liabilities | 256,449 | 244,504 | ||||
Total current liabilities | 390,526 | 377,168 | ||||
Noncurrent Liabilities: | ||||||
Long-term debt, net | 491,651 | 493,968 | ||||
Deferred income taxes | 827,027 | 853,136 | ||||
Intercompany payables | 0 | 0 | ||||
Other | 78,490 | 93,606 | ||||
Noncurrent liabilities - discontinued operations | 14,631 | 14,254 | ||||
Total noncurrent liabilities | 1,411,799 | 1,454,964 | ||||
Shareholders' Equity: | ||||||
Common stock | 11,208 | 11,201 | ||||
Additional paid-in capital | 501,585 | 500,393 | ||||
Retained earnings | 3,750,785 | 4,027,779 | ||||
Accumulated other comprehensive income (loss) | (16,085) | 16,550 | ||||
Treasury stock, at cost, 2,647,064 shares and 3,015,243 shares as of June 30, 2019 and September 30, 2018, respectively | (152,439) | (173,188) | ||||
Total shareholders’ equity | 4,095,054 | $ 4,318,620 | 4,382,735 | $ 4,442,491 | $ 4,503,153 | $ 4,164,591 |
Total liabilities and shareholders' equity | 5,897,379 | 6,214,867 | ||||
Eliminations | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Short-term investments | 0 | 0 | ||||
Accounts receivable, net | (993) | (272) | ||||
Inventories of materials and supplies, net | 0 | 0 | ||||
Prepaid expenses and other | 148 | (573) | ||||
Total current assets | (845) | (845) | ||||
Investments | 0 | 0 | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Intercompany receivables | (2,781,351) | (2,480,390) | ||||
Goodwill | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
Investment in subsidiaries | (6,203,820) | (6,153,710) | ||||
Total assets | (8,986,016) | (8,634,945) | ||||
Current Liabilities: | ||||||
Accounts payable | (361) | (264) | ||||
Accrued liabilities | (484) | (580) | ||||
Total current liabilities | (845) | (844) | ||||
Noncurrent Liabilities: | ||||||
Long-term debt, net | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Intercompany payables | (2,781,251) | (2,480,290) | ||||
Other | 0 | 0 | ||||
Noncurrent liabilities - discontinued operations | 0 | 0 | ||||
Total noncurrent liabilities | (2,781,251) | (2,480,290) | ||||
Shareholders' Equity: | ||||||
Common stock | (100) | (100) | ||||
Additional paid-in capital | (53,477) | (53,477) | ||||
Retained earnings | (6,162,267) | (6,080,404) | ||||
Accumulated other comprehensive income (loss) | 11,924 | (19,830) | ||||
Treasury stock, at cost, 2,647,064 shares and 3,015,243 shares as of June 30, 2019 and September 30, 2018, respectively | 0 | 0 | ||||
Total shareholders’ equity | (6,203,920) | (6,153,811) | ||||
Total liabilities and shareholders' equity | (8,986,016) | (8,634,945) | ||||
Helmerich & Payne, Inc. (Guarantor) | Reportable Legal Entities | ||||||
Current assets: | ||||||
Cash and cash equivalents | 94,354 | 0 | ||||
Short-term investments | 0 | 0 | ||||
Accounts receivable, net | (291) | (29) | ||||
Inventories of materials and supplies, net | 0 | 0 | ||||
Prepaid expenses and other | 14,414 | 20,783 | ||||
Total current assets | 108,477 | 20,754 | ||||
Investments | 15,774 | 16,200 | ||||
Property, plant and equipment, net | 45,450 | 46,859 | ||||
Intercompany receivables | 299,182 | 161,532 | ||||
Goodwill | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Other assets | 318 | 268 | ||||
Investment in subsidiaries | 5,926,270 | 5,981,197 | ||||
Total assets | 6,395,471 | 6,226,810 | ||||
Current Liabilities: | ||||||
Accounts payable | 84,703 | 83,819 | ||||
Accrued liabilities | 25,190 | 43,449 | ||||
Total current liabilities | 109,893 | 127,268 | ||||
Noncurrent Liabilities: | ||||||
Long-term debt, net | 482,962 | 0 | ||||
Deferred income taxes | (4,273) | (7,112) | ||||
Intercompany payables | 1,690,102 | 1,701,694 | ||||
Other | 21,733 | 22,225 | ||||
Noncurrent liabilities - discontinued operations | 0 | 0 | ||||
Total noncurrent liabilities | 2,190,524 | 1,716,807 | ||||
Shareholders' Equity: | ||||||
Common stock | 11,208 | 11,201 | ||||
Additional paid-in capital | 501,585 | 500,393 | ||||
Retained earnings | 3,750,785 | 4,027,779 | ||||
Accumulated other comprehensive income (loss) | (16,085) | 16,550 | ||||
Treasury stock, at cost, 2,647,064 shares and 3,015,243 shares as of June 30, 2019 and September 30, 2018, respectively | (152,439) | (173,188) | ||||
Total shareholders’ equity | 4,095,054 | 4,382,735 | ||||
Total liabilities and shareholders' equity | 6,395,471 | 6,226,810 | ||||
Helmerich & Payne International Drilling Co. (Issuer) | Reportable Legal Entities | ||||||
Current assets: | ||||||
Cash and cash equivalents | 224,838 | 273,214 | ||||
Short-term investments | 44,071 | 41,461 | ||||
Accounts receivable, net | 462,885 | 499,644 | ||||
Inventories of materials and supplies, net | 118,530 | 127,154 | ||||
Prepaid expenses and other | 19,160 | 10,649 | ||||
Total current assets | 869,484 | 952,122 | ||||
Investments | 32,226 | 82,496 | ||||
Property, plant and equipment, net | 4,270,440 | 4,515,077 | ||||
Intercompany receivables | 1,959,592 | 2,024,652 | ||||
Goodwill | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Other assets | 6,471 | 907 | ||||
Investment in subsidiaries | 277,550 | 172,513 | ||||
Total assets | 7,415,763 | 7,747,767 | ||||
Current Liabilities: | ||||||
Accounts payable | 45,946 | 43,626 | ||||
Accrued liabilities | 205,630 | 164,542 | ||||
Total current liabilities | 251,576 | 208,168 | ||||
Noncurrent Liabilities: | ||||||
Long-term debt, net | 8,689 | 493,968 | ||||
Deferred income taxes | 783,109 | 834,714 | ||||
Intercompany payables | 259,027 | 178,759 | ||||
Other | 47,537 | 48,836 | ||||
Noncurrent liabilities - discontinued operations | 0 | 0 | ||||
Total noncurrent liabilities | 1,098,362 | 1,556,277 | ||||
Shareholders' Equity: | ||||||
Common stock | 100 | 100 | ||||
Additional paid-in capital | 52,437 | 52,437 | ||||
Retained earnings | 6,025,212 | 5,910,955 | ||||
Accumulated other comprehensive income (loss) | (11,924) | 19,830 | ||||
Treasury stock, at cost, 2,647,064 shares and 3,015,243 shares as of June 30, 2019 and September 30, 2018, respectively | 0 | 0 | ||||
Total shareholders’ equity | 6,065,825 | 5,983,322 | ||||
Total liabilities and shareholders' equity | 7,415,763 | 7,747,767 | ||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||
Current assets: | ||||||
Cash and cash equivalents | 15,583 | 11,141 | ||||
Short-term investments | 1,677 | 0 | ||||
Accounts receivable, net | 46,582 | 65,859 | ||||
Inventories of materials and supplies, net | 31,596 | 30,980 | ||||
Prepaid expenses and other | 43,684 | 35,539 | ||||
Total current assets | 139,122 | 143,519 | ||||
Investments | 291 | 0 | ||||
Property, plant and equipment, net | 267,783 | 295,446 | ||||
Intercompany receivables | 522,577 | 294,206 | ||||
Goodwill | 67,902 | 64,777 | ||||
Intangible assets, net | 69,093 | 73,207 | ||||
Other assets | 5,393 | 4,080 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Total assets | 1,072,161 | 875,235 | ||||
Current Liabilities: | ||||||
Accounts payable | 3,789 | 5,483 | ||||
Accrued liabilities | 26,113 | 37,093 | ||||
Total current liabilities | 29,902 | 42,576 | ||||
Noncurrent Liabilities: | ||||||
Long-term debt, net | 0 | 0 | ||||
Deferred income taxes | 48,191 | 25,534 | ||||
Intercompany payables | 832,122 | 599,837 | ||||
Other | 9,220 | 22,545 | ||||
Noncurrent liabilities - discontinued operations | 14,631 | 14,254 | ||||
Total noncurrent liabilities | 904,164 | 662,170 | ||||
Shareholders' Equity: | ||||||
Common stock | 0 | 0 | ||||
Additional paid-in capital | 1,040 | 1,040 | ||||
Retained earnings | 137,055 | 169,449 | ||||
Accumulated other comprehensive income (loss) | 0 | 0 | ||||
Treasury stock, at cost, 2,647,064 shares and 3,015,243 shares as of June 30, 2019 and September 30, 2018, respectively | 0 | 0 | ||||
Total shareholders’ equity | 138,095 | 170,489 | ||||
Total liabilities and shareholders' equity | $ 1,072,161 | $ 875,235 |
GUARANTOR AND NON-GUARANTOR F_5
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating revenues | $ 687,974 | $ 648,872 | $ 2,149,440 | $ 1,790,443 |
Operating costs and other | 855,848 | 642,566 | 2,167,879 | 1,781,692 |
Operating income (loss) from continuing operations | (167,874) | 6,306 | (18,439) | 8,751 |
Other income (expense), net | (12,521) | 2,048 | (44,418) | 5,850 |
Interest expense | (6,257) | (5,993) | (17,145) | (17,794) |
Equity in net loss of subsidiaries | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations before income taxes | (186,652) | 2,361 | (80,002) | (3,193) |
Income tax (benefit) provision | (32,031) | 10,535 | (5,602) | (494,028) |
Income (loss) from continuing operations | (154,621) | (8,174) | (74,400) | 490,835 |
Income from discontinued operations before income taxes | 7,244 | 8,383 | 22,798 | 9,127 |
Income tax provision | 7,306 | 8,217 | 23,231 | 19,743 |
Income (loss) from discontinued operations | (62) | 166 | (433) | (10,616) |
Net income (loss) | (154,683) | (8,008) | (74,833) | 480,219 |
Eliminations | ||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating revenues | (4,180) | (27) | (4,228) | (64) |
Operating costs and other | (4,357) | (218) | (4,896) | (669) |
Operating income (loss) from continuing operations | 177 | 191 | 668 | 605 |
Other income (expense), net | (177) | (191) | (668) | (605) |
Interest expense | 0 | 0 | 0 | 0 |
Equity in net loss of subsidiaries | 148,857 | 6,976 | 49,077 | (497,765) |
Income (loss) from continuing operations before income taxes | 148,857 | 6,976 | 49,077 | (497,765) |
Income tax (benefit) provision | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | 148,857 | 6,976 | 49,077 | (497,765) |
Income from discontinued operations before income taxes | 0 | 0 | 0 | 0 |
Income tax provision | 0 | 0 | 0 | 0 |
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net income (loss) | 148,857 | 6,976 | 49,077 | (497,765) |
Helmerich & Payne, Inc. (Guarantor) | Reportable Legal Entities | ||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating revenues | 0 | 0 | 0 | 0 |
Operating costs and other | 2,942 | 4,151 | 8,526 | 12,360 |
Operating income (loss) from continuing operations | (2,942) | (4,151) | (8,526) | (12,360) |
Other income (expense), net | (35) | 107 | (77) | 210 |
Interest expense | (6,083) | (108) | (13,202) | (274) |
Equity in net loss of subsidiaries | (145,440) | (4,883) | (55,331) | 494,574 |
Income (loss) from continuing operations before income taxes | (154,500) | (9,035) | (77,136) | 482,150 |
Income tax (benefit) provision | 183 | (1,027) | (2,303) | 1,931 |
Income (loss) from continuing operations | (154,683) | (8,008) | (74,833) | 480,219 |
Income from discontinued operations before income taxes | 0 | 0 | 0 | 0 |
Income tax provision | 0 | 0 | 0 | 0 |
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net income (loss) | (154,683) | (8,008) | (74,833) | 480,219 |
Helmerich & Payne International Drilling Co. (Issuer) | Reportable Legal Entities | ||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating revenues | 633,284 | 574,252 | 1,951,221 | 1,584,970 |
Operating costs and other | 780,880 | 557,994 | 1,937,425 | 1,542,815 |
Operating income (loss) from continuing operations | (147,596) | 16,258 | 13,796 | 42,155 |
Other income (expense), net | (12,639) | 1,854 | (45,275) | 5,226 |
Interest expense | (132) | (5,117) | (4,844) | (15,368) |
Equity in net loss of subsidiaries | (3,417) | (2,093) | 6,254 | 3,191 |
Income (loss) from continuing operations before income taxes | (163,784) | 10,902 | (30,069) | 35,204 |
Income tax (benefit) provision | (43,271) | 17,384 | (11,884) | (459,571) |
Income (loss) from continuing operations | (120,513) | (6,482) | (18,185) | 494,775 |
Income from discontinued operations before income taxes | 0 | 0 | 0 | 0 |
Income tax provision | 0 | 0 | 0 | 0 |
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net income (loss) | (120,513) | (6,482) | (18,185) | 494,775 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||
Operating revenues | 58,870 | 74,647 | 202,447 | 205,537 |
Operating costs and other | 76,383 | 80,639 | 226,824 | 227,186 |
Operating income (loss) from continuing operations | (17,513) | (5,992) | (24,377) | (21,649) |
Other income (expense), net | 330 | 278 | 1,602 | 1,019 |
Interest expense | (42) | (768) | 901 | (2,152) |
Equity in net loss of subsidiaries | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations before income taxes | (17,225) | (6,482) | (21,874) | (22,782) |
Income tax (benefit) provision | 11,057 | (5,822) | 8,585 | (36,388) |
Income (loss) from continuing operations | (28,282) | (660) | (30,459) | 13,606 |
Income from discontinued operations before income taxes | 7,244 | 8,383 | 22,798 | 9,127 |
Income tax provision | 7,306 | 8,217 | 23,231 | 19,743 |
Income (loss) from discontinued operations | (62) | 166 | (433) | (10,616) |
Net income (loss) | $ (28,344) | $ (494) | $ (30,892) | $ 2,990 |
GUARANTOR AND NON-GUARANTOR F_6
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net loss | $ (154,683) | $ (8,008) | $ (74,833) | $ 480,219 |
Other comprehensive income, net of income taxes: | ||||
Unrealized appreciation (depreciation) on securities, net | 0 | 13,826 | 0 | 5,657 |
Minimum pension liability adjustments, net | 226 | 337 | 675 | 985 |
Other comprehensive income | 226 | 14,163 | 675 | 6,642 |
Comprehensive income (loss) | (154,457) | 6,155 | (74,158) | 486,861 |
Eliminations | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net loss | 148,857 | 6,976 | 49,077 | (497,765) |
Other comprehensive income, net of income taxes: | ||||
Unrealized appreciation (depreciation) on securities, net | 0 | 0 | ||
Minimum pension liability adjustments, net | 0 | 0 | 0 | 0 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 148,857 | 6,976 | 49,077 | (497,765) |
Helmerich & Payne, Inc. (Guarantor) | Reportable Legal Entities | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net loss | (154,683) | (8,008) | (74,833) | 480,219 |
Other comprehensive income, net of income taxes: | ||||
Unrealized appreciation (depreciation) on securities, net | 0 | 0 | ||
Minimum pension liability adjustments, net | 78 | 101 | 233 | 295 |
Other comprehensive income | 78 | 101 | 233 | 295 |
Comprehensive income (loss) | (154,605) | (7,907) | (74,600) | 480,514 |
Helmerich & Payne International Drilling Co. (Issuer) | Reportable Legal Entities | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net loss | (120,513) | (6,482) | (18,185) | 494,775 |
Other comprehensive income, net of income taxes: | ||||
Unrealized appreciation (depreciation) on securities, net | 13,826 | 5,657 | ||
Minimum pension liability adjustments, net | 148 | 236 | 442 | 690 |
Other comprehensive income | 148 | 14,062 | 442 | 6,347 |
Comprehensive income (loss) | (120,365) | 7,580 | (17,743) | 501,122 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net loss | (28,344) | (494) | (30,892) | 2,990 |
Other comprehensive income, net of income taxes: | ||||
Unrealized appreciation (depreciation) on securities, net | 0 | 0 | ||
Minimum pension liability adjustments, net | 0 | 0 | 0 | 0 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | $ (28,344) | $ (494) | $ (30,892) | $ 2,990 |
GUARANTOR AND NON-GUARANTOR F_7
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net cash provided by (used in) operating activities | $ 659,371 | $ 371,428 |
Cash flows from investing activities: | ||
Capital expenditures | (403,570) | (322,658) |
Purchase of short-term investments | (71,852) | (52,159) |
Payment for acquisition of business, net of cash acquired | (2,781) | (47,886) |
Proceeds from sale of short-term investments | 68,015 | 52,470 |
Intercompany transfers | 0 | 0 |
Proceeds from asset sales | 36,227 | 28,049 |
Net cash used in investing activities | (373,961) | (342,184) |
Cash flows from financing activities: | ||
Intercompany transfers | 0 | 0 |
Dividends paid | (235,058) | (230,368) |
Debt issuance costs paid | (3,912) | 0 |
Payments for employee taxes on net settlement of equity awards | (6,420) | (5,978) |
Proceeds from stock option exercises | 2,901 | 5,160 |
Other intercompany transfers | 0 | |
Payment of contingent consideration from acquisition of business | 0 | (10,625) |
Net cash used in financing activities | (242,489) | (241,811) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 42,921 | (212,567) |
Cash and cash equivalents and restricted cash, beginning of period | 326,185 | 560,509 |
Cash and cash equivalents and restricted cash, end of period | 369,106 | 347,942 |
Eliminations | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Purchase of short-term investments | 0 | 0 |
Payment for acquisition of business, net of cash acquired | 0 | 0 |
Proceeds from sale of short-term investments | 0 | 0 |
Intercompany transfers | 0 | 0 |
Proceeds from asset sales | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Intercompany transfers | 0 | 0 |
Dividends paid | 0 | 0 |
Debt issuance costs paid | 0 | |
Payments for employee taxes on net settlement of equity awards | 0 | 0 |
Proceeds from stock option exercises | 0 | 0 |
Other intercompany transfers | 0 | |
Payment of contingent consideration from acquisition of business | 0 | |
Net cash used in financing activities | 0 | 0 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 0 | 0 |
Cash and cash equivalents and restricted cash, beginning of period | 0 | 0 |
Cash and cash equivalents and restricted cash, end of period | 0 | 0 |
Helmerich & Payne, Inc. (Guarantor) | Reportable Legal Entities | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net cash provided by (used in) operating activities | (15,599) | 1,914 |
Cash flows from investing activities: | ||
Capital expenditures | (7,355) | (8,725) |
Purchase of short-term investments | 0 | 0 |
Payment for acquisition of business, net of cash acquired | (2,781) | (47,886) |
Proceeds from sale of short-term investments | 0 | 0 |
Intercompany transfers | 7,355 | 56,611 |
Proceeds from asset sales | 6 | 0 |
Net cash used in investing activities | (2,775) | 0 |
Cash flows from financing activities: | ||
Intercompany transfers | 235,058 | 230,368 |
Dividends paid | (235,058) | (230,368) |
Debt issuance costs paid | (3,912) | |
Payments for employee taxes on net settlement of equity awards | (6,420) | (5,978) |
Proceeds from stock option exercises | 2,901 | 5,160 |
Other intercompany transfers | 111,339 | |
Payment of contingent consideration from acquisition of business | 0 | |
Net cash used in financing activities | 103,908 | (818) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 85,534 | 1,096 |
Cash and cash equivalents and restricted cash, beginning of period | 6,037 | 9,385 |
Cash and cash equivalents and restricted cash, end of period | 91,571 | 10,481 |
Helmerich & Payne International Drilling Co. (Issuer) | Reportable Legal Entities | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net cash provided by (used in) operating activities | 657,016 | 350,557 |
Cash flows from investing activities: | ||
Capital expenditures | (389,615) | (306,278) |
Purchase of short-term investments | (70,175) | (52,159) |
Payment for acquisition of business, net of cash acquired | 0 | 0 |
Proceeds from sale of short-term investments | 68,015 | 52,470 |
Intercompany transfers | (7,355) | (56,611) |
Proceeds from asset sales | 32,585 | 26,737 |
Net cash used in investing activities | (366,545) | (335,841) |
Cash flows from financing activities: | ||
Intercompany transfers | (235,058) | (230,368) |
Dividends paid | 0 | 0 |
Debt issuance costs paid | 0 | |
Payments for employee taxes on net settlement of equity awards | 0 | 0 |
Proceeds from stock option exercises | 0 | 0 |
Other intercompany transfers | (103,788) | |
Payment of contingent consideration from acquisition of business | 0 | |
Net cash used in financing activities | (338,846) | (230,368) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (48,375) | (215,652) |
Cash and cash equivalents and restricted cash, beginning of period | 273,214 | 507,504 |
Cash and cash equivalents and restricted cash, end of period | 224,839 | 291,852 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net cash provided by (used in) operating activities | 17,954 | 18,957 |
Cash flows from investing activities: | ||
Capital expenditures | (6,600) | (7,655) |
Purchase of short-term investments | (1,677) | 0 |
Payment for acquisition of business, net of cash acquired | 0 | 0 |
Proceeds from sale of short-term investments | 0 | 0 |
Intercompany transfers | 0 | 0 |
Proceeds from asset sales | 3,636 | 1,312 |
Net cash used in investing activities | (4,641) | (6,343) |
Cash flows from financing activities: | ||
Intercompany transfers | 0 | 0 |
Dividends paid | 0 | 0 |
Debt issuance costs paid | 0 | |
Payments for employee taxes on net settlement of equity awards | 0 | 0 |
Proceeds from stock option exercises | 0 | 0 |
Other intercompany transfers | (7,551) | |
Payment of contingent consideration from acquisition of business | (10,625) | |
Net cash used in financing activities | (7,551) | (10,625) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 5,762 | 1,989 |
Cash and cash equivalents and restricted cash, beginning of period | 46,934 | 43,620 |
Cash and cash equivalents and restricted cash, end of period | $ 52,696 | $ 45,609 |