GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables)

3 Months Ended

Dec. 31, 2018

GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

Schedule of Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)

	December 31, 2018
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—	$	208,219	$	20,243	$	—	$	228,462
Short-term investments		—		41,072		—		—		41,072
Accounts receivable, net of allowance		(299)		493,770		52,628		(368)		545,731
Inventories of materials and supplies, net		(1)		129,389		30,604		—		159,992
Prepaid expenses and other		14,804		12,626		40,387		(327)		67,490
Total current assets		14,504		885,076		143,862		(695)		1,042,747
Investments		14,957		39,651		123		—		54,731
Property, plant and equipment, net		47,383		4,577,824		275,132		—		4,900,339
Intercompany receivables		282,543		1,658,200		507,824		(2,448,567)		—
Goodwill		—		—		67,902		—		67,902
Intangible assets, net		—		—		71,969		—		71,969
Other assets		318		1,266		5,069		—		6,653
Investment in subsidiaries		6,003,703		185,924		—		(6,189,627)		—
Total assets	$	6,363,408	$	7,347,941	$	1,071,881	$	(8,638,889)	$	6,144,341
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	83,631	$	51,394	$	6,741	$	(360)	$	141,406
Accrued liabilities		20,733		192,779		31,330		(335)		244,507
Total current liabilities		104,364		244,173		38,071		(695)		385,913
Noncurrent liabilities:
Long-term debt		482,126		8,679		—		—		490,805
Deferred income taxes		(3,437)		835,673		20,951		—		853,187
Intercompany payables		1,432,156		208,841		807,470		(2,448,467)		—
Other		21,960		40,384		22,221		—		84,565
Noncurrent liabilities - discontinued operations		—		—		3,633		—		3,633
Total noncurrent liabilities		1,932,805		1,093,577		854,275		(2,448,467)		1,432,190
Shareholders’ equity:
Common stock		11,208		100		—		(100)		11,208
Additional paid-in capital		484,122		52,437		1,039		(53,476)		484,122
Retained earnings		3,997,283		5,966,748		178,496		(6,145,244)		3,997,283
Accumulated other comprehensive income (loss)		(12,296)		(9,094)		—		9,094		(12,296)
Treasury stock, at cost		(154,079)		—		—		—		(154,079)
Total shareholders’ equity		4,326,238		6,010,191		179,535		(6,189,726)		4,326,238
Total liabilities and shareholders’ equity	$	6,363,407	$	7,347,941	$	1,071,881	$	(8,638,888)	$	6,144,341

	September 30, 2018
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—	$	273,214	$	11,141	$	—	$	284,355
Short-term investments		—		41,461		—		—		41,461
Accounts receivable, net of allowance		(29)		499,644		65,859		(272)		565,202
Inventories of materials and supplies, net		—		127,154		30,980		—		158,134
Prepaid expenses and other		20,783		10,649		35,539		(573)		66,398
Total current assets		20,754		952,122		143,519		(845)		1,115,550
Investments		16,200		82,496		—		—		98,696
Property, plant and equipment, net		46,859		4,515,077		295,446		—		4,857,382
Intercompany receivables		161,532		2,024,652		294,206		(2,480,390)		—
Goodwill		—		—		64,777		—		64,777
Intangible assets, net		—		—		73,207		—		73,207
Other assets		268		907		4,080		—		5,255
Investment in subsidiaries		5,981,197		172,513		—		(6,153,710)		—
Total assets	$	6,226,810	$	7,747,767	$	875,235	$	(8,634,945)	$	6,214,867
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	83,819	$	43,626	$	5,483	$	(264)	$	132,664
Accrued liabilities		43,449		164,542		37,093		(580)		244,504
Total current liabilities		127,268		208,168		42,576		(844)		377,168
Noncurrent liabilities:
Long-term debt		—		493,968		—		—		493,968
Deferred income taxes		(7,112)		834,714		25,534		—		853,136
Intercompany payables		1,701,694		178,759		599,837		(2,480,290)		—
Other		22,225		48,836		22,545		—		93,606
Noncurrent liabilities - discontinued operations		—		—		14,254		—		14,254
Total noncurrent liabilities		1,716,807		1,556,277		662,170		(2,480,290)		1,454,964
Shareholders’ equity:
Common stock		11,201		100		—		(100)		11,201
Additional paid-in capital		500,393		52,437		1,040		(53,477)		500,393
Retained earnings		4,027,779		5,910,955		169,449		(6,080,404)		4,027,779
Accumulated other comprehensive income		16,550		19,830		—		(19,830)		16,550
Treasury stock, at cost		(173,188)		—		—		—		(173,188)
Total shareholders’ equity		4,382,735		5,983,322		170,489		(6,153,811)		4,382,735
Total liabilities and shareholders’ equity	$	6,226,810	$	7,747,767	$	875,235	$	(8,634,945)	$	6,214,867

Schedule of Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended December 31, 2018
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	661,151	$	79,471	$	(24)	$	740,598
Operating costs and other		2,766		598,973		84,839		(269)		686,309
Operating income (loss) from continuing operations		(2,766)		62,178		(5,368)		245		54,289
Other income (expense), net		(1,036)		(45,200)		1,908		(245)		(44,573)
Equity in net income (loss) of subsidiaries		22,396		15,305		—		(37,701)		—
Income (loss) from continuing operations before income taxes		18,594		32,283		(3,460)		(37,701)		9,716
Income tax (benefit) provision		(365)		5,159		(3,442)		—		1,352
Income (loss) from continuing operations		18,959		27,124		(18)		(37,701)		8,364
Income from discontinued operations before income taxes		—		—		12,665		—		12,665
Income tax provision		—		—		2,070				2,070
Income from discontinued operations		—		—		10,595		—		10,595
Net income	$	18,959	$	27,124	$	10,577	$	(37,701)	$	18,959

	Three Months Ended December 31, 2017, as adjusted (Note 2)
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	495,006	$	69,097	$	(16)	$	564,087
Operating costs and other		4,089		481,648		74,946		(205)		560,478
Operating income (loss) from continuing operations		(4,089)		13,358		(5,849)		189		3,609
Other income (expense), net		144		(4,059)		496		(189)		(3,608)
Equity in net income of subsidiaries		507,420		21,365		—		(528,785)		—
Income (loss) from continuing operations before income taxes		503,475		30,664		(5,353)		(528,785)		1
Income tax provision (benefit)		3,369		(478,594)		(25,416)		—		(500,641)
Income from continuing operations		500,106		509,258		20,063		(528,785)		500,642
Loss from discontinued operations before income taxes		—		—		(519)		—		(519)
Income tax provision		—		—		17		—		17
Loss from discontinued operations		—		—		(536)		—		(536)
Net income	$	500,106	$	509,258	$	19,527	$	(528,785)	$	500,106

Schedule of Condensed Consolidating Statements of Comprehensive Income (Loss)

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Three Months Ended December 31, 2018
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	18,959	$	27,124	$	10,577	$	(37,701)	$	18,959
Other comprehensive income, net of income taxes:
Minimum pension liability adjustments, net		78		147		—		—		225
Other comprehensive income (loss)		78		147		—		—		225
Comprehensive income (loss)	$	19,037	$	27,271	$	10,577	$	(37,701)	$	19,184

	Three Months Ended December 31, 2017
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Net income	$	500,106	$	509,258	$	19,527	$	(528,785)	$	500,106
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net		—		(601)		—		—		(601)
Minimum pension liability adjustments, net		102		238		—		—		340
Other comprehensive income (loss)		102		(363)		—		—		(261)
Comprehensive income	$	500,208	$	508,895	$	19,527	$	(528,785)	$	499,845

Schedule of Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended December 31, 2018
			Helmerich & Payne
	Helmerich		International
	& Payne, Inc.		Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Net cash provided by operating activities	$	2,188	$	201,473	$	5,821	$	—	$	209,482
Cash flows from investing activities:
Capital expenditures		(3,118)		(191,210)		(1,766)		—		(196,094)
Purchase of short-term investments		—		(31,324)		—		—		(31,324)
Payment for acquisition of business, net of cash acquired		(2,781)		—		—		—		(2,781)
Proceeds from sale of short-term investments		—		31,860		—		—		31,860
Intercompany transfers		5,899		(5,899)		—		—		—
Proceeds from asset sales		—		8,227		3,382		—		11,609
Net cash provided by (used in) investing activities		—		(188,346)		1,616		—		(186,730)
Cash flows from financing activities:
Intercompany transfers		78,122		(78,122)		—		—		—
Dividends paid		(78,122)		—		—		—		(78,122)
Debt issuance costs paid		(3,912)		—		—		—		(3,912)
Payments for employee taxes on net settlement of equity awards		(6,267)		—		—		—		(6,267)
Proceeds from stock option exercises		1,954		—		—		—		1,954
Net cash used in financing activities		(8,225)		(78,122)		—		—		(86,347)
Net increase (decrease) in cash and cash equivalents and restricted cash		(6,037)		(64,995)		7,437		—		(63,595)
Cash and cash equivalents and restricted cash, beginning of period		6,037		273,214		46,934		—		326,185
Cash and cash equivalents and restricted cash, end of period	$	—	$	208,219	$	54,371	$	—	$	262,590

	Three Months Ended December 31, 2017, as adjusted (Note 2)
			Helmerich & Payne
	Helmerich		International
	& Payne, Inc.		Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	10,776	$	69,593	$	(764)	$	—	$	79,605
Cash flows from investing activities:
Capital expenditures		(2,189)		(86,404)		(3,105)		—		(91,698)
Purchase of short-term investments		—		(16,183)		—		—		(16,183)
Payment for acquisition of business, net cash acquired		(47,832)		—		—		—		(47,832)
Proceeds from sale of short-term investments		—		18,120		—		—		18,120
Intercompany transfers		50,021		(50,021)		—		—		—
Proceeds from asset sales		—		8,022		727		—		8,749
Net cash used in investing activities		—		(126,466)		(2,378)		—		(128,844)
Cash flows from financing activities:
Intercompany transfers		76,503		(76,503)		—		—		—
Dividends paid		(76,503)		—		—		—		(76,503)
Payments for employee taxes on net settlement of equity awards		(5,471)		—		—		—		(5,471)
Proceeds from stock option exercises		892		—		—		—		892
Payment of contingent consideration from acquisition of business		—		—		(1,500)		—		(1,500)
Net cash used in financing activities		(4,579)		(76,503)		(1,500)		—		(82,582)
Net increase (decrease) in cash and cash equivalents and restricted cash		6,197		(133,376)		(4,642)		—		(131,821)
Cash and cash equivalents and restricted cash, beginning of period		9,385		507,504		43,620		—		560,509
Cash and cash equivalents and restricted cash, end of period	$	15,582	$	374,128	$	38,978	$	—	$	428,688