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PROPERTY, PLANT AND EQUIPMENT
 3 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT
NOTE 3 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment as of December 31, 2024 and September 30, 2024 consisted of the following:
(in thousands)Estimated Useful LivesDecember 31, 2024September 30, 2024
Drilling services equipment
4 - 15 years
$6,713,200 $6,671,975 
Tubulars
4 years
539,876 552,773 
Real estate properties
10 - 45 years
49,061 48,617 
Other
2 - 23 years
465,604 460,857 
Construction in progress1
132,367 106,183 
7,900,108 7,840,405 
Accumulated depreciation(4,890,748)(4,824,128)
Property, plant and equipment, net$3,009,360 $3,016,277 
(1)Included in construction in progress are costs for projects in progress to upgrade or refurbish certain rigs in our existing fleet. Additionally, we include other advances for capital maintenance purchase-orders that are open/in process. As these various projects are completed, the costs are then classified to their appropriate useful life category.
Depreciation
Depreciation expense during the three months ended December 31, 2024 and 2023 was $97.0 million and $92.4 million, including abandonments of $0.7 million and $0.5 million, respectively. During the three months ended December 31, 2024, depreciation expense included $1.2 million of accelerated depreciation for components on rigs that are scheduled for conversion in fiscal year 2025 compared to $0.9 million in the three months ended December 31, 2023. These expenses are recorded within Depreciation and amortization on our Unaudited Condensed Consolidated Statements of Operations.
Gain on Reimbursement of Drilling Equipment
We recognized a gain of $9.4 million and $7.5 million during the three months ended December 31, 2024 and 2023, respectively, related to customer reimbursement for the current replacement value of lost or damaged drill pipe. Gains related to these asset sales are recorded in Gain on reimbursement of drilling equipment within our Unaudited Condensed Consolidated Statements of Operations.