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EMPLOYEE BENEFIT PLANS
 9 Months Ended
Jun. 30, 2025
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS
NOTE 13 EMPLOYEE BENEFIT PLANS
Defined Benefit Pension Plans
We maintain a domestic noncontributory defined benefit pension plan covering certain U.S. employees who meet certain age and service requirements. In July 2003, we revised the Helmerich & Payne, Inc. Employee Retirement Plan (“U.S. Plan”) to close the Pension Plan to new participants effective October 1, 2003, and reduce benefit accruals for current participants through September 30, 2006, at which time benefit accruals were discontinued and the Pension Plan was frozen.
As a result of the Acquisition, we now maintain pension plans in Germany and the UK (collectively, the "Non-U.S. Plans"). These plans had net pension liability of $103.2 million ($136.4 million in obligations and $33.2 million in plan assets) as of the Acquisition Date. Of the $103.2 million, $4.2 million is presented in Accrued liabilities within Current liabilities and $99.0 million is presented in Retirement benefit obligations within Noncurrent liabilities, on the opening balance sheet presented in Note 3—Business Combination. In fiscal year 2025, we do not expect minimum contributions required by law to be needed. However, we may make contributions in fiscal year 2025 if needed as benefit payments come due.
The Company recognizes the unfunded status of its Non-U.S. Plans, based on the projected benefit obligation, as retirement benefit obligations. Changes in the funded status are recognized in our Unaudited Condensed Consolidated Statements of Comprehensive Income in the period in which they occur. Prior to June 30, 2025, Retirement benefit obligations were presented in Other within Noncurrent liabilities on our Consolidated Balance Sheets. To conform with the current period presentation, we reclassified amounts previously presented in Other within Noncurrent liabilities to the Retirement benefit obligations line, within Noncurrent liabilities, on our Unaudited Condensed Consolidated Balance Sheets as of September 30, 2024.
Components of the net periodic pension expense recognized in the Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2025 and 2024, respectively, is comprised of the following:
U.S. Plan
Non-U.S. Plans
Three Months Ended June 30,Three Months Ended June 30,
(in thousands)202520242025
Service cost$— $— $1,157 
Interest cost657 754 1,663 
Expected return on plan assets1
(573)(482)(586)
Recognized net actuarial loss69 174 — 
Settlement expense303 — — 
Net pension expense$456 $446 $2,234 
U.S. Plan
Non-U.S. Plans1
Nine Months Ended June 30,Nine Months Ended June 30,
(in thousands)202520242025
Service cost$— $— $2,121 
Interest cost1,971 2,262 3,245 
Expected return on plan assets
(1,719)(1,446)(1,140)
Recognized net actuarial loss207 522 — 
Settlement expense303 — — 
Net pension expense$762 $1,338 $4,226 
(1)The Company did not have Non-U.S. Plans prior to the Acquisition which occurred on January 16, 2025.
Service cost is included within Selling, general and administrative while all other components are recorded within Other income (expense) on the Unaudited Condensed Consolidated Statements of Operations.