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BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
 6 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
NOTE 12 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, 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 (segment operating income) before income taxes which includes:
•Revenues from external and internal customers
•Direct operating expenses
•Depreciation and amortization
•Research and development
•Allocated general and administrative expenses
•Asset impairment charges
but excludes gain on reimbursement of drilling equipment, other gain (loss) on sale of assets, corporate selling, general and administrative costs, and corporate depreciation.
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 three and six months ended March 31, 2024 and 2023 is shown in the following tables:
Three Months Ended March 31, 2024
(in thousands)North America SolutionsInternational SolutionsOffshore Gulf of MexicoOtherEliminationsTotal
External sales$613,339 $45,878 $25,913 $2,813 $— $687,943 
Intersegment— — — 15,746 (15,746)— 
Total sales613,339 45,878 25,913 18,559 (15,746)687,943 
Segment operating income
$147,130 $3,569 $78 $2,785 $(772)$152,790 
Three Months Ended March 31, 2023
(in thousands)North America SolutionsInternational SolutionsOffshore Gulf of MexicoOtherEliminationsTotal
External sales$675,780 $55,890 $34,979 $2,573 $— $769,222 
Intersegment— — — 17,662 (17,662)— 
Total sales675,780 55,890 34,979 20,235 (17,662)769,222 
Segment operating income $182,149 $3,955 $6,687 $6,823 $(2,267)$197,347 
Six Months Ended March 31, 2024
(in thousands)North America SolutionsInternational SolutionsOffshore Gulf of MexicoOtherEliminationsTotal
External sales$1,207,621 $100,630 $51,444 $5,395 $— $1,365,090 
Intersegment— — — 30,972 (30,972)— 
Total sales1,207,621 100,630 51,444 36,367 (30,972)1,365,090 
Segment operating income
$291,620 $8,992 $3,130 $2,718 $(438)$306,022 
Six Months Ended March 31, 2023
(in thousands)North America SolutionsInternational SolutionsOffshore Gulf of MexicoOtherEliminationsTotal
External sales$1,302,943 $110,691 $70,143 $5,082 $— $1,488,859 
Intersegment— — — 34,064 (34,064)— 
Total sales1,302,943 110,691 70,143 39,146 (34,064)1,488,859 
Segment operating income $327,446 $5,529 $13,433 $11,500 $43 $357,951 
The following table reconciles segment operating income per the tables above to income before income taxes as reported on the Unaudited Condensed Consolidated Statements of Operations:
Three Months Ended
March 31,		Six Months Ended
March 31,
(in thousands)2024202320242023
Segment operating income$152,790 $197,347 $306,022 $357,951 
Gain on reimbursement of drilling equipment7,461 11,574 14,955 27,298 
Other gain (loss) on sale of assets
(2,431)2,519 12 4,898 
Corporate selling, general and administrative costs and corporate depreciation(47,248)(36,235)(86,949)(70,719)
Operating income110,572 175,205 234,040 319,428 
Other income (expense)
Interest and dividend income6,567 5,055 17,301 9,760 
Interest expense(4,261)(4,239)(8,633)(8,594)
Gain (loss) on investment securities3,747 39,752 (287)24,661 
Other400 (604)(143)(546)
Total unallocated amounts6,453 39,964 8,238 25,281 
Income before income taxes$117,025 $215,169 $242,278 $344,709 
The following table reconciles segment total assets to total assets as reported on the Unaudited Condensed Consolidated Balance Sheets:
(in thousands)March 31, 2024September 30, 2023
Total assets1
North America Solutions$3,375,674 $3,320,203 
International Solutions468,982 407,143 
Offshore Gulf of Mexico73,983 73,319 
Other152,179 154,290 
4,070,818 3,954,955 
Investments and corporate operations354,030 427,001 
$4,424,848 $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:
Three Months Ended
March 31,		Six Months Ended
March 31,
(in thousands)2024202320242023
Operating revenues
United States$640,689 $712,302 $1,262,306 $1,376,475 
Argentina34,024 35,490 69,900 69,324 
Colombia1,242 13,652 8,945 30,021 
Bahrain4,535 4,198 9,032 6,467 
United Arab Emirates3,430 2,542 5,795 4,879 
Australia2,646 — 6,958 — 
Other foreign1,377 1,038 2,154 1,693 
Total$687,943 $769,222 $1,365,090 $1,488,859 
Refer to Note 8—Revenue from Contracts with Customers for additional information regarding the recognition of revenue.