XML 45 R26.htm IDEA: XBRL DOCUMENT
v3.23.3

BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION | 12 Months Ended
--- | ---
Sep. 30, 2023
Segment Reporting [Abstract] |
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION |
NOTE 16 BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
Description of the Business We are a performance-driven drilling solutions and technologies company based in Tulsa, Oklahoma with operations in all major U.S. onshore oil and gas producing basins as well as South America, the Middle East and Australia. Our 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. We focus on offering our customers an integrated solutions-based approach by combining proprietary rig technology, automation software, and digital expertise into our rig operations rather than a product-based offering, such as a rig or separate technology package. Our drilling services operations are organized into the following reportable operating business segments: North America Solutions, Offshore Gulf of Mexico and International Solutions. Each reportable operating segment is a strategic business unit that is managed separately, and consolidated revenues and expenses reflect the elimination of all material intercompany transactions. Our real estate operations, our incubator program for new research and development projects, and our wholly-owned captive insurance companies are included in "Other." External revenues included in “Other” primarily consist of rental income. Segment Performance We evaluate segment performance based on income or loss before income taxes which includes: •Revenues from external and internal customers •Direct operating costs •Depreciation and amortization •Allocated general and administrative costs •Asset impairment charges •Restructuring charges but excludes gain on reimbursement of drilling equipment, other (gain) loss on sale of assets, corporate selling, general and administrative costs, corporate depreciation, and corporate restructuring charges. General and administrative costs are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, other methods may be used which we believe to be a reasonable reflection of the utilization of services provided. Summarized financial information of our reportable segments for the fiscal years ended September 30, 2023, 2022 and 2021 is shown in the following tables:
| September 30, 2023
(in thousands) | North America Solutions |  | Offshore Gulf of Mexico |  | International Solutions |  | Other |  | Eliminations |  | Total
External sales | $ | 2,519,743 |  |  | $ | 130,244 |  |  | $ | 212,566 |  |  | $ | 9,868 |  |  | $ | — |  |  | $ | 2,872,421 |
Intersegment | — |  |  | — |  |  | — |  |  | 67,428 |  |  | (67,428) |  |  | — |
Total sales | 2,519,743 |  |  | 130,244 |  |  | 212,566 |  |  | 77,296 |  |  | (67,428) |  |  | 2,872,421 |
Segment operating income (loss) | 625,467 |  |  | 22,806 |  |  | (891) |  |  | 15,876 |  |  | 4,671 |  |  | 667,929 |
Depreciation and amortization | 353,976 |  |  | 7,622 |  |  | 7,615 |  |  | 2,014 |  |  | — |  |  | 371,227 |
| September 30, 2022
(in thousands) | North America Solutions |  | Offshore Gulf of Mexico |  | International Solutions |  | Other |  | Eliminations |  | Total
External sales | $ | 1,788,167 |  |  | $ | 125,465 |  |  | $ | 136,072 |  |  | $ | 9,240 |  |  | $ | — |  |  | $ | 2,058,944 |
Intersegment | — |  |  | — |  |  | — |  |  | 57,047 |  |  | (57,047) |  |  | — |
Total sales | 1,788,167 |  |  | 125,465 |  |  | 136,072 |  |  | 66,287 |  |  | (57,047) |  |  | 2,058,944 |
Segment operating income (loss) | 121,893 |  |  | 23,214 |  |  | (138) |  |  | 12,720 |  |  | (6,422) |  |  | 151,267 |
Depreciation and amortization | 375,250 |  |  | 9,175 |  |  | 4,156 |  |  | 1,701 |  |  | — |  |  | 390,282 |
| September 30, 2021
(in thousands) | North America Solutions |  | Offshore Gulf of Mexico |  | International Solutions |  | Other |  | Eliminations |  | Total
External sales | $ | 1,026,364 |  |  | $ | 126,399 |  |  | $ | 57,917 |  |  | $ | 7,888 |  |  | $ | — |  |  | $ | 1,218,568 |
Intersegment | — |  |  | — |  |  | — |  |  | 35,416 |  |  | (35,416) |  |  | — |
Total sales | 1,026,364 |  |  | 126,399 |  |  | 57,917 |  |  | 43,304 |  |  | (35,416) |  |  | 1,218,568 |
Segment operating income (loss) | (287,176) |  |  | 15,969 |  |  | (21,003) |  |  | (9,704) |  |  | (1,580) |  |  | (303,494) |
Depreciation and amortization | 392,415 |  |  | 10,557 |  |  | 2,013 |  |  | 1,426 |  |  | — |  |  | 406,411 |
The following table reconciles segment operating income (loss) per the tables above to income (loss) before income taxes as reported on the Consolidated Statements of Operations:
| Year Ended September 30,
(in thousands) | 2023 |  | 2022 |  | 2021
Segment operating income (loss) | $ | 667,929 |  |  | $ | 151,267 |  |  | $ | (303,494) |
Gain on reimbursement of drilling equipment | 48,173 |  |  | 29,443 |  |  | 12,322 |
Other gain (loss) on sale of assets | (8,016) |  |  | 5,432 |  |  | (11,280) |
Corporate selling, general and administrative costs, corporate depreciation and corporate restructuring charges | (146,197) |  |  | (140,850) |  |  | (126,097) |
Operating income (loss) | 561,889 |  |  | 45,292 |  |  | (428,549) |
Other income (expense) |  |  |  |  |
Interest and dividend income | 28,393 |  |  | 18,090 |  |  | 10,254 |
Interest expense | (17,283) |  |  | (19,203) |  |  | (23,955) |
Gain on investment securities | 11,299 |  |  | 57,937 |  |  | 6,727 |
Loss on extinguishment of debt | — |  |  | (60,083) |  |  | — |
Other | 9,081 |  |  | (10,714) |  |  | 5,652 |
Total unallocated amounts | 31,490 |  |  | (13,973) |  |  | (1,322) |
Income (loss) before income taxes | $ | 593,379 |  |  | $ | 31,319 |  |  | $ | (429,871) |
The following table reconciles segment total assets to total assets as reported on the Consolidated Balance Sheets:
| Year Ended September 30,
(in thousands) | 2023 |  | 2022
Total assets 1 |  |  |
North America Solutions | $ | 3,320,203 |  |  | $ | 3,406,824 |
Offshore Gulf of Mexico | 73,319 |  |  | 80,993 |
International Solutions | 407,143 |  |  | 330,974 |
Other | 154,290 |  |  | 120,305 |
| 3,954,955 |  |  | 3,939,096 |
Investments and corporate operations | 427,001 |  |  | 416,435 |
Total assets | $ | 4,381,956 |  |  | $ | 4,355,531 |
(1)Assets by segment exclude investments in subsidiaries and intersegment activity. The following table presents revenues from external customers by country based on the location of service provided:
| Year Ended September 30,
(in thousands) | 2023 |  | 2022 |  | 2021
Operating revenues |  |  |  |  |
United States | $ | 2,656,617 |  |  | $ | 1,920,026 |  |  | $ | 1,158,230 |
Argentina | 137,420 |  |  | 91,385 |  |  | 27,855 |
Colombia | 46,720 |  |  | 22,003 |  |  | 1,674 |
Bahrain | 15,401 |  |  | 16,986 |  |  | 27,435 |
United Arab Emirates | 9,716 |  |  | 5,698 |  |  | 957 |
Australia | 3,350 |  |  | — |  |  | — |
Other foreign | 3,197 |  |  | 2,846 |  |  | 2,417 |
Total | $ | 2,872,421 |  |  | $ | 2,058,944 |  |  | $ | 1,218,568 |
The following table presents property, plant and equipment by country based on the location of service provided:
| Year Ended September 30,
(in thousands) | 2023 |  | 2022
Property, plant and equipment, net |  |  |
United States | $ | 2,813,707 |  |  | $ | 2,872,145 |
Argentina | 57,168 |  |  | 54,789 |
Colombia | 20,835 |  |  | 21,809 |
Australia | 10,673 |  |  | — |
United Arab Emirates | 10,373 |  |  | 3,024 |
Other foreign | 8,939 |  |  | 9,042 |
Total | $ | 2,921,695 |  |  | $ | 2,960,809 |

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/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration