Guarantor and Non-Guarantor Financial Information

6 Months Ended

12 Months Ended

Mar. 31, 2015

Sep. 30, 2014

Guarantor and Non-Guarantor Financial Information

Guarantor and Non-Guarantor Financial Information

17. Guarantor and Non-Guarantor Financial Information

        In March 2015, Helmerich & Payne International Drilling Co. ("the issuer"), a wholly-owned subsidiary of Helmerich & Payne, Inc. ("parent" or "the guarantor"), issued senior unsecured notes with an aggregate principal amount of $500.0 million due 2025. The notes are fully and unconditionally guaranteed by parent. No subsidiaries of parent currently guarantee the notes, subject to certain provisions that if any subsidiary guarantees certain other debt of the issuer or parent, then such subsidiary will provide a guarantee of the obligations under the notes.

        In connection with the notes, we are providing the following condensed consolidating financial information in accordance with the Commission disclosure requirements. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements. Condensed consolidating financial information for the issuer, Helmerich & Payne International Drilling Co. and parent/guarantor, Helmerich & Payne, Inc. is shown in the tables below.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
(in thousands)

	Three Months Ended March 31, 2015
	Guarantor/ Parent			Issuer Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating revenue	$	—		$	774,896		$	108,180		$	(24	)	$	883,052
Operating costs and other		16,773			536,028			104,113			(1,034	)		655,880
Operating income (loss) from continuing operations		(16,773	)		238,868			4,067			1,010			227,172
Other income, net		2			3,738			(126	)		(1,010	)		2,604
Interest expense		(12	)		(121	)		(2,338	)		—			(2,471	)
Equity in net income of subsidiaries		160,109			358			—			(160,467	)		—
Income from continuing operations before income taxes		143,326			242,843			1,603			(160,467	)		227,305
Income tax provision		(6,211	)		83,561			419			—			77,769
Income from continuing operations		149,537			159,282			1,184			(160,467	)		149,536
Loss from discontinued operations before income taxes		—			—			(76	)		—			(76	)
Income tax provision		—			—			(77	)		—			(77	)
Income from discontinued operations		—			—			1			—			1
Net income	$	149,537		$	159,282		$	1,185		$	(160,467	)	$	149,537

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(in thousands)

	Three Months Ended March 31, 2015
	Guarantor/ Parent		Issuer Subsidiary			Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Net income	$	149,537	$	159,282		$	1,185	$	(160,467	)	$	149,537
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net		—		(1,203	)		—		—			(1,203	)
Minimum pension liability adjustments, net		82		115			—		—			197
Other comprehensive income (loss)		82		(1,088	)		—		—			(1,006	)
Comprehensive income	$	149,619	$	158,194		$	1,185	$	(160,467	)	$	148,531

CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
(in thousands)

	Three Months Ended March 31, 2014
	Guarantor/ Parent			Issuer Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating revenue	$	—		$	797,968		$	95,501		$	(39	)	$	893,430
Operating costs and other		4,105			548,917			86,191			(1,125	)		638,088
Operating income (loss) from continuing operations		(4,105	)		249,051			9,310			1,086			255,342
Other income, net		18			22,256			622			(1,086	)		21,810
Interest expense		19			(1,065	)		(679	)		—			(1,725	)
Equity in net income (loss) of subsidiaries		177,037			(327	)		—			(176,710	)		—
Income (loss) from continuing operations before income taxes		172,969			269,915			9,253			(176,710	)		275,427
Income tax provision		(1,601	)		93,704			8,735			—			100,838
Income from continuing operations		174,570			176,211			518			(176,710	)		174,589
Income from discontinued operations before income taxes		—			—			2,786			—			2,786
Income tax provision		—			—			2,805			—			2,805
Loss from discontinued operations		—			—			(19	)		—			(19	)
Net income	$	174,570		$	176,211		$	499		$	(176,710	)	$	174,570

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(in thousands)

	Three Months Ended March 31, 2014
	Guarantor/ Parent		Issuer Subsidiary			Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Net income	$	174,570	$	176,211		$	499	$	(176,710	)	$	174,570
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net		—		(3,552	)		—		—			(3,552	)
Reclassification of realized gains in net income, net		—		(12,884	)		—		—			(12,884	)
Minimum pension liability adjustments, net		81		64			—		—			145
Other comprehensive income (loss)		81		(16,372	)		—		—			(16,291	)
Comprehensive income	$	174,651	$	159,839		$	499	$	(176,710	)	$	158,279

CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
(in thousands)

	Six Months Ended March 31, 2015
	Guarantor/ Parent			Issuer Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating revenue	$	—		$	1,727,005		$	212,672		$	(40	)	$	1,939,637
Operating costs and other		6,080			1,177,122			199,510			(2,066	)		1,380,646
Operating income (loss) from continuing operations		(6,080	)		549,883			13,162			2,026			558,991
Other income, net		3			4,659			567			(2,026	)		3,203
Interest expense		(19	)		(103	)		(2,910	)		—			(3,032	)
Equity in net income of subsidiaries		356,493			5,441			—			(361,934	)		—
Income from continuing operations before income taxes		350,397			559,880			10,819			(361,934	)		559,162
Income tax provision		(2,182	)		204,966			3,785			—			206,569
Income from continuing operations		352,579			354,914			7,034			(361,934	)		352,593
Loss from discontinued operations before income taxes		—			—			(91	)		—			(91	)
Income tax provision		—			—			(77	)		—			(77	)
Loss from discontinued operations		—			—			(14	)		—			(14	)
Net income	$	352,579		$	354,914		$	7,020		$	(361,934	)	$	352,579

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(in thousands)

	Six Months Ended March 31, 2015
	Guarantor/ Parent		Issuer Subsidiary			Non- Guarantor Subsidiaries		Eliminations			Total Consolidated
Net income	$	352,579	$	354,914		$	7,020	$	(361,934	)	$	352,579
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net		—		(43,447	)		—		—			(43,447	)
Minimum pension liability adjustments, net		164		229			—		—			393
Other comprehensive income (loss)		164		(43,218	)		—		—			(43,054	)
Comprehensive income	$	352,743	$	311,696		$	7,020	$	(361,934	)	$	309,525

CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
(in thousands)

	Six Months Ended March 31, 2014
	Guarantor/ Parent			Issuer Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating revenue	$	—		$	1,583,591		$	199,062		$	(71	)	$	1,782,582
Operating costs and other		8,193			1,078,277			178,981			(2,242	)		1,263,209
Operating income (loss) from continuing operations		(8,193	)		505,314			20,081			2,171			519,373
Other income, net		17			22,916			1,156			(2,171	)		21,918
Interest expense		15			(1,939	)		(995	)		—			(2,919	)
Equity in net income of subsidiaries		352,836			7,339			—			(360,175	)		—
Income from continuing operations before income taxes		344,675			533,630			20,242			(360,175	)		538,372
Income tax provision		(3,077	)		182,048			11,630			—			190,601
Income from continuing operations		347,752			351,582			8,612			(360,175	)		347,771
Income from discontinued operations before income taxes		—			—			2,786			—			2,786
Income tax provision		—			—			2,805			—			2,805
Loss from discontinued operations		—			—			(19	)		—			(19	)
Net income	$	347,752		$	351,582		$	8,593		$	(360,175	)	$	347,752

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(in thousands)

	Six Months Ended March 31, 2014
	Guarantor/ Parent		Issuer Subsidiary			Non- Guarantor Subsidiaries		Eliminations			Total Consolidated
Net income	$	347,752	$	351,582		$	8,593	$	(360,175	)	$	347,752
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net		—		(6,513	)		—		—			(6,513	)
Reclassification of realized gains in net income, net		—		(12,884	)		—		—			(12,884	)
Minimum pension liability adjustments, net		163		129			—		—			292
Other comprehensive income (loss)		163		(19,268	)		—		—			(19,105	)
Comprehensive income	$	347,915	$	332,314		$	8,593	$	(360,175	)	$	328,647

CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(in thousands)

	March 31, 2015
	Guarantor/ Parent			Issuer Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	(1,949	)	$	695,343	$	21,161	$	4,572		$	719,127
Accounts receivable, net of reserve		(9	)		495,480		141,757		(13,522	)		623,706
Inventories		—			84,323		39,946		—			124,269
Deferred income taxes		3,394			17,209		—		(5,954	)		14,649
Prepaid expenses and other		14,104			1,505		86,599		(23,076	)		79,132
Current assets of discontinued operations		—			—		7,486		—			7,486
Total current assets		15,540			1,293,860		296,949		(37,980	)		1,568,369
Investments		13,200			151,448		—		—			164,648
Property, plant and equipment, net		48,233			5,006,311		518,274		—			5,572,818
Intercompany		14,927			1,177,045		202,051		(1,394,023	)		—
Other assets		8,042			1,425		35,872		(7,024	)		38,315
Investment in subsidiaries		5,592,313			236,307		—		(5,828,620	)		—
Total assets	$	5,692,255		$	7,866,396	$	1,053,146	$	(7,267,647	)	$	7,344,150
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	80,907		$	59,769	$	31,703	$	(6	)	$	172,373
Accrued liabilities		15,481			132,482		59,765		(31,472	)		176,256
Long-term debt due within one year		—			39,207		—		—			39,207
Current liabilities of discontinued operations		—			—		3,309		—			3,309
Total current liabilities		96,388			231,458		94,777		(31,478	)		391,145
Noncurrent liabilities:
Long-term debt		—			532,908		—		—			532,908
Deferred income taxes		—			1,265,090		65,743		(10,469	)		1,320,364
Intercompany		576,457			240,490		580,133		(1,397,080	)		—
Other		17,034			20,866		55,280		—			93,180
Noncurrent liabilities of discontinued operations		—			—		4,177		—			4,177
Total noncurrent liabilities		593,491			2,059,354		705,333		(1,407,549	)		1,950,629
Shareholders' equity:
Common stock		11,085			100		—		(100	)		11,085
Preferred stock		—			—		—		—			—
Additional paid-in capital		402,442			44,805		343		(45,148	)		402,442
Retained earnings		4,729,390			5,486,203		252,693		(5,738,896	)		4,729,390
Accumulated other comprehensive income		40,072			44,476		—		(44,476	)		40,072
Treasury stock, at cost		(180,613	)		—		—		—			(180,613	)
Total shareholders' equity		5,002,376			5,575,584		253,036		(5,828,620	)		5,002,376
Total liabilities and shareholders' equity	$	5,692,255		$	7,866,396	$	1,053,146	$	(7,267,647	)	$	7,344,150

CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)

	September 30, 2014, as adjusted
	Guarantor/ Parent			Issuer Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	(2,050	)	$	329,655	$	36,932	$	(3,628	)	$	360,909
Accounts receivable, net of reserve		(31	)		623,274		98,913		(16,942	)		705,214
Inventories		—			67,113		37,358		1,770			106,241
Deferred income taxes		5,372			19,499		—		(8,352	)		16,519
Prepaid expenses and other		8,863			15,013		56,982		54			80,912
Current assets of discontinued operations		—			—		7,206		—			7,206
Total current assets		12,154			1,054,554		237,391		(27,098	)		1,277,001
Investments		14,344			222,300		—		—			236,644
Property, plant and equipment, net		42,027			4,681,294		465,223		—			5,188,544
Intercompany		14,855			782,626		196,641		(994,122	)		—
Other assets		8,110			1,197		16,123		(6,621	)		18,809
Investment in subsidiaries		5,276,750			235,355		—		(5,512,105	)		—
Total assets	$	5,368,240		$	6,977,326	$	915,378	$	(6,539,946	)	$	6,720,998
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	80,562		$	80,488	$	20,988	$	(7	)	$	182,031
Accrued liabilities		31,960			212,896		43,560		(6,138	)		282,278
Long-term debt due within one year		—			39,635		—		—			39,635
Current liabilities of discontinued operations		—			—		3,217		—			3,217
Total current liabilities		112,522			333,019		67,765		(6,145	)		507,161
Noncurrent liabilities:
Long-term debt		—			39,502		—		—			39,502
Deferred income taxes		—			1,182,192		47,640		(14,573	)		1,215,259
Intercompany		346,545			141,066		519,512		(1,007,123	)		—
Other		18,196			19,948		25,966		—			64,110
Noncurrent liabilities of discontinued operations		—			—		3,989		—			3,989
Total noncurrent liabilities		364,741			1,382,708		597,107		(1,021,696	)		1,322,860
Shareholders' equity:
Common stock		11,051			100		—		(100	)		11,051
Additional paid-in capital		383,972			42,516		319		(42,835	)		383,972
Retained earnings		4,525,797			5,131,289		250,187		(5,381,476	)		4,525,797
Accumulated other comprehensive income		83,126			87,694		—		(87,694	)		83,126
Treasury stock, at cost		(112,969	)		—		—		—			(112,969	)
Total shareholders' equity		4,890,977			5,261,599		250,506		(5,512,105	)		4,890,977
Total liabilities and shareholders' equity	$	5,368,240		$	6,977,326	$	915,378	$	(6,539,946	)	$	6,720,998

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)

	Six Months Ended March 31, 2015
	Guarantor/ Parent			Issuer Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net cash provided by operating activities	$	64,995		$	730,744		$	8,645		$	8,200		$	812,584
INVESTING ACTIVITIES:
Capital expenditures		(11,571	)		(713,797	)		(37,997	)		—			(763,365	)
Intercompany transfers		11,571			(11,571	)		—			—			—
Proceeds from asset sales		1			14,215			998			—			15,214
Net cash provided by (used in) investing activities		1			(711,153	)		(36,999	)		—			(748,151	)
FINANCING ACTIVITIES:
Dividends paid		(149,347	)		—			—			—			(149,347	)
Intercompany transfers		149,347			(149,347	)		—			—			—
Repurchase of common stock		(59,654	)		—			—			—			(59,654	)
Proceeds from senior notes, net of discount		—			492,791			—			—			492,791
Proceeds on short-term debt		—			—			1,002			—			1,002
Payments on short-term debt		—			—			(1,002	)		—			(1,002	)
Net increase in bank overdraft		—			—			12,560			—			12,560
Exercise of stock options, net of tax withholding		(1,078	)		—			—			—			(1,078	)
Tax withholdings related to net share settlements of restricted stock		(4,248	)		—			—			—			(4,248	)
Excess tax benefit from stock-based compensation		85			2,653			23			—			2,761
Net cash provided by (used in) financing activities		(64,895	)		346,097			12,583			—			293,785
Net increase (decrease) in cash and cash equivalents		101			365,688			(15,771	)		8,200			358,218
Cash and cash equivalents, beginning of period		(2,050	)		329,655			36,932			(3,628	)		360,909
Cash and cash equivalents, end of period	$	(1,949	)	$	695,343		$	21,161		$	4,572		$	719,127

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)

	Six Months Ended March 31, 2014
	Guarantor/ Parent			Issuer Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net cash provided by (used in) operating activities	$	(15,196	)	$	519,159		$	36,319		$	(271	)	$	540,011
INVESTING ACTIVITIES:
Capital expenditures		(11,391	)		(303,454	)		(41,908	)		—			(356,753	)
Intercompany transfers		11,391			(11,391	)		—			—			—
Proceeds from sale of investment securities		—			23,338			—			—			23,338
Proceeds from asset sales		1			11,002			2,318			—			13,321
Net cash provided by (used in) investing activities		1			(280,505	)		(39,590	)		—			(320,094	)
FINANCING ACTIVITIES:
Dividends paid		(121,545	)		—			—			—			(121,545	)
Intercompany transfers		121,545			(121,545	)		—			—			—
Exercise of stock options, net of tax withholding		19,701			—			—			—			19,701
Tax withholdings related to net share settlements of restricted stock		(3,049	)		—			—			—			(3,049	)
Excess tax benefit from stock-based compensation		(1,612	)		23,496			203			—			22,087
Net cash provided by (used in) financing activities		15,040			(98,049	)		203			—			(82,806	)
Net increase (decrease) in cash and cash equivalents		(155	)		140,605			(3,068	)		(271	)		137,111
Cash and cash equivalents, beginning of period		(202	)		412,596			33,918			1,556			447,868
Cash and cash equivalents, end of period	$	(357	)	$	553,201		$	30,850		$	1,285		$	584,979

NOTE 16 GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

        In March 2015, Helmerich & Payne International Drilling Co. ("the issuer"), a wholly-owned subsidiary of Helmerich & Payne, Inc. ("parent" or "the guarantor"), issued senior unsecured notes with an aggregate principal amount of $500.0 million due 2025. The notes are fully and unconditionally guaranteed by parent. No subsidiaries of parent currently guarantee the notes, subject to certain provisions that if any subsidiary guarantees certain other debt of the issuer or parent, then such subsidiary will provide a guarantee of the obligations under the notes.

        In connection with the notes, we are providing the following condensed consolidating financial information in accordance with the Securities and Exchange Commission disclosure requirements. Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements. Condensed consolidating financial information for the issuer, Helmerich & Payne International Drilling Co. and parent/guarantor, Helmerich & Payne, Inc. is shown in the tables below.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands)

	Year Ended September 30, 2014
	Guarantor/ Parent			Issuer Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating revenue	$	—		$	3,325,039		$	394,820		$	(152	)	$	3,719,707
Operating costs and other		10,763			2,291,775			366,682			(4,300	)		2,664,920
Operating income (loss) from continuing operations		(10,763	)		1,033,264			28,138			4,148			1,054,787
Other income, net		57			48,108			2,164			(4,148	)		46,181
Interest expense		(42	)		(3,049	)		(1,563	)		—			(4,654	)
Equity in net income of subsidiaries		715,157			4,668			—			(719,825	)		—
Income from continuing operations before income taxes		704,409			1,082,991			28,739			(719,825	)		1,096,314
Income tax provision		(4,310	)		370,723			21,135			—			387,548
Income from continuing operations		708,719			712,268			7,604			(719,825	)		708,766
Income from discontinued operations before income taxes		—			—			2,758			—			2,758
Income tax provision		—			—			2,805			—			2,805
Loss from discontinued operations		—			—			(47	)		—			(47	)
Net income	$	708,719		$	712,268		$	7,557		$	(719,825	)	$	708,719

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)

	Year Ended September 30, 2014
	Guarantor/ Parent			Issuer Subsidiary			Non- Guarantor Subsidiaries		Eliminations			Total Consolidated
Net income	$	708,719		$	712,268		$	7,557	$	(719,825	)	$	708,719
Other comprehensive loss, net of income taxes:
Unrealized depreciation on securities, net		—			(19,006	)		—		—			(19,006	)
Reclassification of realized gains in net income, net		—			(27,737	)		—		—			(27,737	)
Minimum pension liability adjustments, net		(213	)		(2,448	)		—		—			(2,661	)
Other comprehensive loss		(213	)		(49,191	)		—		—			(49,404	)
Comprehensive income	$	708,506		$	663,077		$	7,557	$	(719,825	)	$	659,315

CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands)

	Year Ended September 30, 2013
	Guarantor/ Parent			Issuer Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating revenue	$	—		$	2,998,299		$	389,382		$	(67	)	$	3,387,614
Operating costs and other		12,775			2,063,737			355,751			(1,310	)		2,430,953
Operating income (loss) from continuing operations		(12,775	)		934,562			33,631			1,243			956,661
Other income, net		20			164,170			863			(1,288	)		163,765
Interest expense		(83	)		(4,776	)		(1,315	)		45			(6,129	)
Equity in net income of subsidiaries		745,105			33,360			—			(778,465	)		—
Income from continuing operations before income taxes		732,267			1,127,316			33,179			(778,465	)		1,114,297
Income tax provision		(4,372	)		383,881			13,335			—			392,844
Income from continuing operations		736,639			743,435			19,844			(778,465	)		721,453
Income from discontinued operations before income taxes		—			—			14,701			—			14,701
Income tax provision		—			—			(485	)		—			(485	)
Loss from discontinued operations		—			—			15,186			—			15,186
Net income	$	736,639		$	743,435		$	35,030		$	(778,465	)	$	736,639

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)

	Year Ended September 30, 2013
	Guarantor/ Parent		Issuer Subsidiary			Non- Guarantor Subsidiaries		Eliminations			Total Consolidated
Net income	$	736,639	$	743,435		$	35,030	$	(778,465	)	$	736,639
Other comprehensive income (loss), net of income taxes:
Unrealized appreciation on securities, net		—		46,853			—		—			46,853
Reclassification of realized gains in net income, net		—		(92,543	)		—		—			(92,543	)
Minimum pension liability adjustments, net		2,663		8,750			—		—			11,413
Other comprehensive income (loss)		2,663		(36,940	)		—		—			(34,277	)
Comprehensive income	$	739,302	$	706,495		$	35,030	$	(778,465	)	$	702,362

CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands)

	Year Ended September 30, 2012
	Guarantor/ Parent			Issuer Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating revenue	$	—		$	2,850,355		$	301,514		$	(67	)	$	3,151,802
Operating costs and other		5,271			1,950,620			289,223			(2,911	)		2,242,203
Operating income (loss) from continuing operations		(5,271	)		899,735			12,291			2,844			909,599
Other income, net		144			2,191			2,145			(2,846	)		1,634
Interest expense		(143	)		(6,275	)		(2,237	)		2			(8,653	)
Equity in net income of subsidiaries		584,252			7,459			—			(591,711	)		—
Income from continuing operations before income taxes		578,982			903,110			12,199			(591,711	)		902,580
Income tax provision		(2,063	)		321,404			9,630			—			328,971
Income from continuing operations		581,045			581,706			2,569			(591,711	)		573,609
Income from discontinued operations before income taxes		—			—			7,355			—			7,355
Income tax provision		—			—			(81	)		—			(81	)
Loss from discontinued operations		—			—			7,436			—			7,436
Net income	$	581,045		$	581,706		$	10,005		$	(591,711	)	$	581,045

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)

	Year Ended September 30, 2012
	Guarantor/ Parent		Issuer Subsidiary		Non- Guarantor Subsidiaries		Eliminations			Total Consolidated
Net income	$	581,045	$	581,706	$	10,005	$	(591,711	)	$	581,045
Other comprehensive income, net of income taxes:
Unrealized appreciation on securities, net		—		63,725		—		—			63,725
Minimum pension liability adjustments, net		1,154		3,020		—		—			4,174
Other comprehensive income		1,154		66,745		—		—			67,899
Comprehensive income	$	582,199	$	648,451	$	10,005	$	(591,711	)	$	648,944

CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)

	September 30, 2014, as adjusted
	Guarantor/ Parent			Issuer Subsidiary		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	(2,050	)	$	329,655	$	36,932	$	(3,628	)	$	360,909
Accounts receivable, net of reserve		(31	)		623,274		98,913		(16,942	)		705,214
Inventories		—			67,113		37,358		1,770			106,241
Deferred income taxes		5,372			19,499		—		(8,352	)		16,519
Prepaid expenses and other		8,863			15,013		56,982		54			80,912
Current assets of discontinued operations		—			—		7,206		—			7,206
Total current assets		12,154			1,054,554		237,391		(27,098	)		1,277,001
Investments		14,344			222,300		—		—			236,644
Property, plant and equipment, net		42,027			4,681,294		465,223		—			5,188,544
Intercompany		14,855			782,626		196,641		(994,122	)		—
Other assets		8,110			1,197		16,123		(6,621	)		18,809
Investment in subsidiaries		5,276,750			235,355		—		(5,512,105	)		—
Total assets	$	5,368,240		$	6,977,326	$	915,378	$	(6,539,946	)	$	6,720,998
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	80,562		$	80,488	$	20,988	$	(7	)	$	182,031
Accrued liabilities		31,960			212,896		43,560		(6,138	)		282,278
Long-term debt due within one year		—			39,635		—		—			39,635
Current liabilities of discontinued operations		—			—		3,217		—			3,217
Total current liabilities		112,522			333,019		67,765		(6,145	)		507,161
Noncurrent liabilities:
Long-term debt		—			39,502		—		—			39,502
Deferred income taxes		—			1,182,192		47,640		(14,573	)		1,215,259
Intercompany		346,545			141,066		519,512		(1,007,123	)		—
Other		18,196			19,948		25,966		—			64,110
Noncurrent liabilities of discontinued operations		—			—		3,989		—			3,989
Total noncurrent liabilities		364,741			1,382,708		597,107		(1,021,696	)		1,322,860
Shareholders' equity:
Common stock		11,051			100		—		(100	)		11,051
Additional paid-in capital		383,972			42,516		319		(42,835	)		383,972
Retained earnings		4,525,797			5,131,289		250,187		(5,381,476	)		4,525,797
Accumulated other comprehensive income		83,126			87,694		—		(87,694	)		83,126
Treasury stock, at cost		(112,969	)		—		—		—			(112,969	)
Total shareholders' equity		4,890,977			5,261,599		250,506		(5,512,105	)		4,890,977
Total liabilities and shareholders' equity	$	5,368,240		$	6,977,326	$	915,378	$	(6,539,946	)	$	6,720,998

CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)

	September 30, 2013, as adjusted
	Guarantor/ Parent			Issuer Subsidiary		Non- Guarantor Subsidiaries		Eliminations			Total Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	(202	)	$	412,596	$	33,918	$	1,556		$	447,868
Accounts receivable, net of reserve		(41	)		518,362		111,847		(8,748	)		621,420
Inventories		—			55,892		32,251		723			88,866
Deferred income taxes		4,731			16,403		1,660		(6,380	)		16,414
Prepaid expenses and other		10,723			24,789		42,848		1,178			79,538
Current assets of discontinued operations		—			—		3,705		—			3,705
Total current assets		15,211			1,028,042		226,229		(11,671	)		1,257,811
Investments		10,506			305,648		—		—			316,154
Property, plant and equipment, net		33,540			4,289,267		353,296		—			4,676,103
Intercompany		13,345			465,024		184,392		(662,761	)		—
Other assets		5,315			1,227		12,053		(5,099	)		13,496
Investment in subsidiaries		4,584,267			230,633		—		(4,814,900	)		—
Total assets	$	4,662,184		$	6,319,841	$	775,970	$	(5,494,431	)	$	6,263,564
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	60,138		$	58,150	$	28,711	$	(2,620	)	$	144,379
Accrued liabilities		28,816			123,009		40,392		(2,533	)		189,684
Long-term debt due within one year		—			114,600		—		—			114,600
Current liabilities of discontinued operations		—			—		3,210		—			3,210
Total current liabilities		88,954			295,759		72,313		(5,153	)		451,873
Noncurrent liabilities:
Long-term debt		—			79,137		—		—			79,137
Deferred income taxes		—			1,207,440		27,020		(11,479	)		1,222,981
Intercompany		114,534			144,902		403,463		(662,899	)		—
Other		14,969			20,598		29,784		—			65,351
Noncurrent liabilities of discontinued operations		—			—		495		—			495
Total noncurrent liabilities		129,503			1,452,077		460,762		(674,378	)		1,367,964
Shareholders' equity:
Common stock		10,874			100		—		(100	)		10,874
Additional paid-in capital		288,758			16,000		104		(16,104	)		288,758
Retained earnings		4,102,663			4,419,021		242,791		(4,661,812	)		4,102,663
Accumulated other comprehensive income		132,530			136,884		—		(136,884	)		132,530
Treasury stock, at cost		(91,098	)		—		—		—			(91,098	)
Total shareholders' equity		4,443,727			4,572,005		242,895		(4,814,900	)		4,443,727
Total liabilities and shareholders' equity	$	4,662,184		$	6,319,841	$	775,970	$	(5,494,431	)	$	6,263,564

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)

	September 30, 2014
	Guarantor/ Parent			Issuer Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Total Consolidated
Net cash provided by (used in) operating activities	$	(21,094	)	$	1,050,609		$	94,196		$	(5,184	)	$	1,118,527
INVESTING ACTIVITIES:
Capital expenditures		(17,786	)		(840,341	)		(94,765	)		—			(952,892	)
Intercompany transfers		17,786			(17,786	)		—			—			—
Proceeds from asset sales		2			27,401			3,367			—			30,770
Proceeds from sale of investments		—			49,205			—			—			49,205
Net cash provided by (used in) investing activities		2			(781,521	)		(91,398	)		—			(872,917	)
FINANCING ACTIVITIES:
Payments on long-term debt		—			(115,000	)		—			—			(115,000	)
Intercompany transfers		264,386			(264,386	)		—			—			—
Dividends paid		(264,386	)		—			—			—			(264,386	)
Exercise of stock options, net of tax withholding		23,250			—			—			—			23,250
Tax withholdings related to net share settlements of restricted stock		(3,049	)		—			—			—			(3,049	)
Excess tax benefit from stock-based compensation		(957	)		27,357			216			—			26,616
Net cash provided by (used in) financing activities		19,244			(352,029	)		216			—			(332,569	)
Net increase (decrease) in cash and cash equivalents		(1,848	)		(82,941	)		3,014			(5,184	)		(86,959	)
Cash and cash equivalents, beginning of period		(202	)		412,596			33,918			1,556			447,868
Cash and cash equivalents, end of period	$	(2,050	)	$	329,655		$	36,932		$	(3,628	)	$	360,909

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)

	September 30, 2013
	Guarantor/ Parent			Issuer Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Total Consolidated
Net cash provided by operating activities	$	3,066		$	973,850		$	17,708		$	2,561		$	997,185
INVESTING ACTIVITIES:
Capital expenditures		(6,828	)		(752,642	)		(49,596	)		—			(809,066	)
Intercompany transfers		6,828			(6,828	)		—			—			—
Proceeds from asset sales		3,235			21,694			3,097			—			28,026
Proceeds from sale of investments		—			232,221			—			—			232,221
Net cash provided by (used in) investing activities		3,235			(505,555	)		(46,499	)		—			(548,819	)
Net cash provided by investing activities by discontinued operations		—			—			15,000			—			15,000
Net cash provided by (used in) investing activities		3,235			(505,555	)		(31,499	)					(533,819	)
FINANCING ACTIVITIES:
Payments on long-term debt		—			(40,000	)		—			—			(40,000	)
Intercompany transfers		93,053			(93,053	)		—			—			—
Dividends paid		(93,053	)		—			—			—			(93,053	)
Intercompany notes		(16,500	)		—			16,500			—			—
Exercise of stock options, net of tax withholding		13,317			—			—			—			13,317
Tax withholdings related to net share settlements of restricted stock		(1,677	)		—			—			—			(1,677	)
Excess tax benefit from stock-based compensation		(563	)		10,280			103			—			9,820
Net cash provided by (used in) financing activities		(5,423	)		(122,773	)		16,603			—			(111,593	)
Net increase in cash and cash equivalents		878			345,522			2,812			2,561			351,773
Cash and cash equivalents, beginning of period		(1,080	)		67,074			31,106			(1,005	)		96,095
Cash and cash equivalents, end of period	$	(202	)	$	412,596		$	33,918		$	1,556		$	447,868

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)

	September 30, 2012
	Guarantor/ Parent			Issuer Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Total Consolidated
Net cash provided by (used in) operating activities	$	(19,746	)	$	969,867		$	58,904		$	(8,693	)	$	1,000,332
INVESTING ACTIVITIES:
Capital expenditures		(27,729	)		(1,016,155	)		(53,796	)		—			(1,097,680	)
Intercompany transfers		27,729			(27,729	)		—			—			—
Proceeds from asset sales		—			38,454			1,440			—			39,894
Proceeds from sale of investments		—			—			—			—			—
Net cash used in investing activities		—			(1,005,430	)		(52,356	)		—			(1,057,786	)
Net cash provided by investing activities by discontinued operations		—			—			7,500			—			7,500
Net cash used in investing activities		—			(1,005,430	)		(44,856	)					(1,050,286	)
FINANCING ACTIVITIES:
Payments on long-term debt		—			(115,000	)		—			—			(115,000	)
Proceeds from line of credit		—			20,000			—			—			20,000
Payments on line of credit		—			(20,000	)		—			—			(20,000	)
Intercompany notes		16,500			—			(16,500	)		—			—
Repurchase of common stock		(77,610	)		—			—			—			(77,610	)
Intercompany transfers		107,659			(107,659	)		—			—			—
Dividends paid		(30,049	)		—			—			—			(30,049	)
Exercise of stock options, net of tax withholding		2,673			—			—			—			2,673
Tax withholdings related to net share settlements of restricted stock		(1,514	)		—			—			—			(1,514	)
Excess tax benefit from stock-based compensation		2,210			1,092			1			—			3,303
Net cash provided by (used in) financing activities		19,869			(221,567	)		(16,499	)		—			(218,197	)
Net increase (decrease) in cash and cash equivalents		123			(257,130	)		(2,451	)		(8,693	)		(268,151	)
Cash and cash equivalents, beginning of period		(1,203	)		324,204			33,557			7,688			364,246
Cash and cash equivalents, end of period	$	(1,080	)	$	67,074		$	31,106		$	(1,005	)	$	96,095