Property and Equipment

9 Months Ended

Sep. 30, 2011

5. Property and Equipment

Property and equipment consisted of the following at September 30, 2011 and December 31, 2010 (in thousands):


	September 30, 2011			December 31, 2010
Equipment	$	4,537,408		$	3,972,891
Oil and natural gas properties		122,484			110,749
Buildings		62,887			61,425
Land		11,209			11,074

		4,733,988			4,156,139
Less accumulated depreciation and depletion		(1,708,382	)		(1,535,239	)

Property and equipment, net	$	3,025,606		$	2,620,900

During the nine months ended September 30, 2011 and 2010, in connection with its ongoing planning process, the Company evaluated its then-current fleet of marketable drilling rigs and identified 22 and four rigs, respectively, that it determined would no longer be marketed as rigs. The components comprising these rigs were evaluated, and those components with continuing utility to the Company’s other marketed rigs were transferred to other rigs or yards to be used as spare equipment. The remaining components of these rigs were impaired and the associated net book value of $4.3 million in 2011 and $4.2 million in 2010 was expensed in the Company’s consolidated statements of operations as an impairment charge. The impaired components were estimated to have no fair value.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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