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BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
 12 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
NOTE 17 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, International Solutions, and Offshore Gulf of Mexico. 
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 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, segment operating income (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 acquisition transaction costs, 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, 2024, 2023 and 2022 is shown in the following tables:
September 30, 2024
(in thousands)North America SolutionsInternational SolutionsOffshore Gulf of MexicoOtherEliminationsTotal
External sales$2,445,946 $193,975 $106,207 $10,479 $— $2,756,607 
Intersegment— — — 61,151 (61,151)— 
Total sales2,445,946 193,975 106,207 71,630 (61,151)2,756,607 
Segment operating income (loss)610,674 (949)12,415 (1,359)1,261 622,042 
Depreciation and amortization366,446 10,863 7,530 1,627 — 386,466 
September 30, 2023
(in thousands)North America SolutionsInternational SolutionsOffshore Gulf of MexicoOtherEliminationsTotal
External sales$2,519,743 $212,566 $130,244 $9,868 $— $2,872,421 
Intersegment— — — 67,428 (67,428)— 
Total sales2,519,743 212,566 130,244 77,296 (67,428)2,872,421 
Segment operating income (loss)625,467 (891)22,806 15,876 4,671 667,929 
Depreciation and amortization353,976 7,615 7,622 2,014 — 371,227 
September 30, 2022
(in thousands)North America SolutionsInternational SolutionsOffshore Gulf of MexicoOtherEliminationsTotal
External sales$1,788,167 $136,072 $125,465 $9,240 $— $2,058,944 
Intersegment— — — 57,047 (57,047)— 
Total sales1,788,167 136,072 125,465 66,287 (57,047)2,058,944 
Segment operating income (loss)121,893 (138)23,214 12,720 (6,422)151,267 
Depreciation and amortization375,250 4,156 9,175 1,701 — 390,282 
The following table reconciles segment operating income per the tables above to income before income taxes as reported on the Consolidated Statements of Operations:
Year Ended September 30,
(in thousands)202420232022
Segment operating income
$622,042 $667,929 $151,267 
Acquisition transaction costs
(14,982)— — 
Gain on reimbursement of drilling equipment33,309 48,173 29,443 
Other gain (loss) on sale of assets(5,139)(8,016)5,432 
Corporate selling, general and administrative costs, corporate depreciation and corporate restructuring charges(183,331)(146,197)(140,850)
Operating income
451,899 561,889 45,292 
Other income (expense)
Interest and dividend income41,168 28,393 18,090 
Interest expense(29,093)(17,283)(19,203)
Gain on investment securities13,953 11,299 57,937 
Loss on extinguishment of debt— — (60,083)
Other3,093 9,081 (10,714)
Total unallocated amounts29,121 31,490 (13,973)
Income before income taxes
$481,020 $593,379 $31,319 
The following table reconciles segment total assets to total assets as reported on the Consolidated Balance Sheets:
Year Ended September 30,
(in thousands)20242023
Total assets1
North America Solutions$3,225,410 $3,320,203 
International Solutions685,833 407,143 
Offshore Gulf of Mexico73,119 73,319 
Other157,877 154,290 
4,142,239 3,954,955 
Investments and corporate operations1,639,659 427,001 
Total assets$5,781,898 $4,381,956 
(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)202420232022
Operating revenues
United States$2,558,814 $2,656,617 $1,920,026 
Argentina142,451 137,420 91,385 
Bahrain17,990 15,401 16,986 
Australia14,112 3,350 — 
United Arab Emirates10,165 9,716 5,698 
Columbia
9,254 46,720 22,003 
Other foreign3,821 3,197 2,846 
Total$2,756,607 $2,872,421 $2,058,944 
The following table presents property, plant and equipment by country based on the location of service provided:
Year Ended September 30,
(in thousands)20242023
Property, plant and equipment, net
United States$2,752,325 $2,813,707 
Saudi Arabia1
149,472 — 
Argentina
62,533 57,168 
Bahrain
19,807 7,657 
Columbia
19,243 20,835 
Australia
9,227 10,673 
United Arab Emirates
2,419 10,373 
Other foreign1,251 1,282 
Total$3,016,277 $2,921,695 
(1)We commenced operations in Saudi Arabia in the first quarter of fiscal 2025.