XML 39 R24.htm IDEA: XBRL DOCUMENT
v3.8.0.1

SEGMENT INFORMATION | 12 Months Ended
--- | ---
Sep. 30, 2017
SEGMENT INFORMATION |
SEGMENT INFORMATION | NOTE 15 SEGMENT INFORMATION We operate principally in the contract drilling industry. The contract drilling operations consist mainly of contracting Company-owned drilling equipment primarily to large oil and gas exploration companies. Our contract drilling business includes the following reportable operating segments: U.S. Land, Offshore and International Land. Each reportable operating segment is a strategic business unit that is managed separately. Our primary international areas of operation include Argentina, Bahrain, Colombia, U.A.E. and other South American and Middle Eastern countries. Other includes additional non-reportable operating segments. Revenues included in Other consist of rental income as well as technology services provided for directional drilling process. Consolidated revenues and expenses reflect the elimination of all material intercompany transactions. We evaluate segment performance based on income or loss from continuing operations (segment operating income) before income taxes which includes:
| · |  | revenues from external and internal customers
| · |  | direct operating costs
| · |  | depreciation and
| · |  | allocated general and administrative costs
but excludes corporate costs for other depreciation, income from asset sales and other corporate income and expense. General and administrative costs are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, on other methods which we believe to be a reasonable reflection of the utilization of services provided. Segment operating income for all segments is a non-GAAP financial measure of our performance, as it excludes certain general and administrative expenses, corporate depreciation, income from asset sales and other corporate income and expense. We consider segment operating income to be an important supplemental measure of operating performance for presenting trends in our core businesses. We use this measure to facilitate period-to-period comparisons in operating performance of our reportable segments in the aggregate by eliminating items that affect comparability between periods. We believe that segment operating income is useful to investors because it provides a means to evaluate the operating performance of the segments on an ongoing basis using criteria that are used by our internal decision makers. Additionally, it highlights operating trends and aids analytical comparisons. However, segment operating income has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect our operating performance in future periods. Summarized financial information of our reportable segments for continuing operations for each of the years ended September 30, 2017, 2016 and 2015 is shown in the following table:
|  |  |  |  |  |  |  |  |  |  | Segment |  | Depreciation |  |  |  |  | Additions
|  | External |  | Inter- |  | Total |  | Operating |  | and |  | Total |  | to Long-Lived
(in thousands) |  | Sales |  | Segment |  | Sales |  | Income (Loss) |  | Amortization |  | Assets |  | Assets
September 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contract Drilling |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Land |  | $ | 1,439,523 |  | $ | — |  | $ | 1,439,523 |  | $ | (94,880) |  | $ | 499,486 |  | $ | 4,967,074 |  | $ | 394,508
Offshore |  |  | 136,263 |  |  | — |  |  | 136,263 |  |  | 24,201 |  |  | 11,764 |  |  | 99,533 |  |  | 2,847
International Land |  |  | 212,972 |  |  | — |  |  | 212,972 |  |  | (7,224) |  |  | 53,622 |  |  | 413,392 |  |  | 3,400
|  |  | 1,788,758 |  |  | — |  |  | 1,788,758 |  |  | (77,903) |  |  | 564,872 |  |  | 5,479,999 |  |  | 400,755
Other |  |  | 15,983 |  |  | 862 |  |  | 16,845 |  |  | (9,449) |  |  | 20,671 |  |  | 959,986 |  |  | 7,351
|  |  | 1,804,741 |  |  | 862 |  |  | 1,805,603 |  |  | (87,352) |  |  | 585,543 |  |  | 6,439,985 |  |  | 408,106
Eliminations |  |  | — |  |  | (862) |  |  | (862) |  |  | — |  |  | — |  |  | — |  |  | —
Total |  | $ | 1,804,741 |  | $ | — |  | $ | 1,804,741 |  | $ | (87,352) |  | $ | 585,543 |  | $ | 6,439,985 |  | $ | 408,106
|  |  |  |  |  |  |  |  |  |  | Segment |  |  |  |  |  |  |  | Additions
|  | External |  | Inter- |  | Total |  | Operating |  |  |  |  | Total |  | to Long-Lived
(in thousands) |  | Sales |  | Segment |  | Sales |  | Income (Loss) |  | Depreciation |  | Assets |  | Assets
September 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contract Drilling |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Land |  | $ | 1,242,462 |  | $ | — |  | $ | 1,242,462 |  | $ | 74,118 |  | $ | 508,237 |  | $ | 5,005,299 |  | $ | 209,156
Offshore |  |  | 138,601 |  |  | — |  |  | 138,601 |  |  | 15,659 |  |  | 12,495 |  |  | 105,152 |  |  | 9,694
International Land |  |  | 229,894 |  |  | — |  |  | 229,894 |  |  | (14,086) |  |  | 57,102 |  |  | 487,181 |  |  | 2,364
|  |  | 1,610,957 |  |  | — |  |  | 1,610,957 |  |  | 75,691 |  |  | 577,834 |  |  | 5,597,632 |  |  | 221,214
Other |  |  | 13,275 |  |  | 855 |  |  | 14,130 |  |  | (7,491) |  |  | 20,753 |  |  | 1,234,323 |  |  | 20,076
|  |  | 1,624,232 |  |  | 855 |  |  | 1,625,087 |  |  | 68,200 |  |  | 598,587 |  |  | 6,831,955 |  |  | 241,290
Eliminations |  |  | — |  |  | (855) |  |  | (855) |  |  | — |  |  | — |  |  | — |  |  | —
Total |  | $ | 1,624,232 |  | $ | — |  | $ | 1,624,232 |  | $ | 68,200 |  | $ | 598,587 |  | $ | 6,831,955 |  | $ | 241,290
|  |  |  |  |  |  |  |  |  |  | Segment |  |  |  |  |  |  |  | Additions
|  | External |  | Inter- |  | Total |  | Operating |  |  |  |  | Total |  | to Long-Lived
(in thousands) |  | Sales |  | Segment |  | Sales |  | Income (Loss) |  | Depreciation |  | Assets |  | Assets
September 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contract Drilling |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Land |  | $ | 2,523,518 |  | $ | — |  | $ | 2,523,518 |  | $ | 698,375 |  | $ | 519,950 |  | $ | 5,429,179 |  | $ | 949,978
Offshore |  |  | 241,666 |  |  | — |  |  | 241,666 |  |  | 68,002 |  |  | 11,659 |  |  | 118,852 |  |  | 16,100
International Land |  |  | 382,331 |  |  | — |  |  | 382,331 |  |  | (7,093) |  |  | 57,334 |  |  | 565,712 |  |  | 39,645
|  |  | 3,147,515 |  |  | — |  |  | 3,147,515 |  |  | 759,284 |  |  | 588,943 |  |  | 6,113,743 |  |  | 1,005,723
Other |  |  | 14,187 |  |  | 880 |  |  | 15,067 |  |  | (10,911) |  |  | 19,096 |  |  | 1,025,402 |  |  | 27,518
|  |  | 3,161,702 |  |  | 880 |  |  | 3,162,582 |  |  | 748,373 |  |  | 608,039 |  |  | 7,139,145 |  |  | 1,033,241
Eliminations |  |  | — |  |  | (880) |  |  | (880) |  |  | — |  |  | — |  |  | — |  |  | —
Total |  | $ | 3,161,702 |  | $ | — |  | $ | 3,161,702 |  | $ | 748,373 |  | $ | 608,039 |  | $ | 7,139,145 |  | $ | 1,033,241
The following table reconciles segment operating income (loss) to income from continuing operations before income taxes as reported on the Consolidated Statements of Operations:
|  | Year Ended September 30, |
|  | 2017 |  | 2016 |  | 2015 |
|  | (in thousands) |
Segment operating income (loss) |  | $ | (87,352) |  | $ | 68,200 |  | $ | 748,373 |
Income from asset sales |  |  | 20,627 |  |  | 9,896 |  |  | 11,834 |
Corporate general and administrative costs and corporate depreciation |  |  | (105,816) |  |  | (104,062) |  |  | (88,244) |
Operating income (loss) |  |  | (172,541) |  |  | (25,966) |  |  | 671,963 |
Other income (expense) |  |  |  |  |  |  |  |  |  |
Interest and dividend income |  |  | 5,915 |  |  | 3,166 |  |  | 5,840 |
Interest expense |  |  | (19,747) |  |  | (22,913) |  |  | (15,023) |
Loss on investment securities |  |  | — |  |  | (25,989) |  |  | — |
Other |  |  | 1,775 |  |  | (965) |  |  | (901) |
Total unallocated amounts |  |  | (12,057) |  |  | (46,701) |  |  | (10,084) |
Income (loss) from continuing operations before income taxes |  | $ | (184,598) |  | $ | (72,667) |  | $ | 661,879 |
The following table presents revenues from external customers and long-lived assets by country based on the location of service provided:
|  | Year Ended September 30, |
|  | 2017 |  | 2016 |  | 2015 |
|  | (in thousands) |
Operating Revenues |  |  |  |  |  |  |  |  |  |
United States |  | $ | 1,591,769 |  | $ | 1,386,786 |  | $ | 2,750,043 |
Argentina |  |  | 157,257 |  |  | 159,427 |  |  | 177,984 |
Colombia |  |  | 37,554 |  |  | 20,488 |  |  | 70,076 |
Ecuador |  |  | 6 |  |  | 4,948 |  |  | 30,987 |
Other Foreign |  |  | 18,155 |  |  | 52,583 |  |  | 132,612 |
Total |  | $ | 1,804,741 |  | $ | 1,624,232 |  | $ | 3,161,702 |
Long-Lived Assets |  |  |  |  |  |  |  |  |  |
United States |  | $ | 4,686,235 |  | $ | 4,804,328 |  | $ | 5,149,315 |
Argentina |  |  | 155,978 |  |  | 183,286 |  |  | 211,862 |
Colombia |  |  | 81,798 |  |  | 91,815 |  |  | 102,401 |
Ecuador |  |  | 22,298 |  |  | 438 |  |  | 28,918 |
Other Foreign |  |  | 54,742 |  |  | 64,866 |  |  | 70,674 |
Total |  | $ | 5,001,051 |  | $ | 5,144,733 |  | $ | 5,563,170 |
Long-lived assets are comprised of property, plant and equipment. Revenues from one customer accounted for approximately 9 percent, 8 percent and 6 percent of total operating revenues during the years ended September 30, 2017, 2016 and 2015, respectively. Revenues from another customer accounted for approximately 9 percent, 9 percent and 5 percent of total operating revenues during the years ended September 30, 2017, 2016 and 2015, respectively. Collectively, the receivables from these customers were $59.0 million and $58.1 million at September 30, 2017 and 2016, respectively.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration