GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables)

6 Months Ended

Mar. 31, 2019

GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

Schedule of Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

(Unaudited)

	March 31, 2019
			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	$	—	$	228,460	$	15,452	$	—	$	243,912
Short-term investments		—		24,441		1,677		—		26,118
Accounts receivable, net of allowance		(286)		498,955		54,251		(183)		552,737
Inventories of materials and supplies, net		—		129,531		31,995		—		161,526
Prepaid expenses and other		14,382		13,550		35,862		(83)		63,711
Total current assets		14,096		894,937		139,237		(266)		1,048,004
Investments		14,460		45,521		266		—		60,247
Property, plant and equipment, net		46,425		4,571,458		269,065		—		4,886,948
Intercompany receivables		292,395		1,764,216		517,319		(2,573,930)		—
Goodwill		—		—		67,902		—		67,902
Intangible assets, net		—		—		70,531		—		70,531
Other assets		317		6,061		4,552		—		10,930
Investment in subsidiaries		6,071,562		283,798		—		(6,355,360)		—
Total assets	$	6,439,255	$	7,565,991	$	1,068,872	$	(8,929,556)	$	6,144,562
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	84,763	$	42,241	$	3,892	$	(175)	$	130,721
Accrued liabilities		12,497		191,895		38,685		(91)		242,986
Total current liabilities		97,260		234,136		42,577		(266)		373,707
Noncurrent liabilities:
Long-term debt		482,543		8,684		—		—		491,227
Deferred income taxes		(3,843)		851,018		14,265		—		861,440
Intercompany payables		1,523,963		236,628		813,239		(2,573,830)		—
Other		20,712		46,492		17,785		—		84,989
Noncurrent liabilities - discontinued operations		—		—		14,579		—		14,579
Total noncurrent liabilities		2,023,375		1,142,822		859,868		(2,573,830)		1,452,235
Shareholders’ equity:
Common stock		11,208		100		—		(100)		11,208
Additional paid-in capital		493,421		52,437		1,039		(53,476)		493,421
Retained earnings		3,979,708		6,145,443		165,388		(6,310,831)		3,979,708
Accumulated other comprehensive income (loss)		(12,072)		(8,947)		—		8,947		(12,072)
Treasury stock, at cost		(153,645)		—		—		—		(153,645)
Total shareholders’ equity		4,318,620		6,189,033		166,427		(6,355,460)		4,318,620
Total liabilities and shareholders’ equity	$	6,439,255	$	7,565,991	$	1,068,872	$	(8,929,556)	$	6,144,562

	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 March 31, 2019
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	656,786	$	64,106	$	(24)	$	720,868
Operating costs and other		2,818		557,572		65,602		(270)		625,722
Operating income (loss) from continuing operations		(2,818)		99,214		(1,496)		246		95,146
Other income (expense), net		(45)		7,875		372		(246)		7,956
Interest expense		(6,080)		(22)		(65)		—		(6,167)
Equity in net income (loss) of subsidiaries		67,713		(5,634)		—		(62,079)		—
Income (loss) from continuing operations before income taxes		58,770		101,433		(1,189)		(62,079)		96,935
Income tax (benefit) provision		(2,121)		26,228		971		—		25,078
Income (loss) from continuing operations		60,891		75,205		(2,160)		(62,079)		71,857
Income from discontinued operations before income taxes		—		—		2,889		—		2,889
Income tax provision		—		—		13,855				13,855
Loss from discontinued operations		—		—		(10,966)		—		(10,966)
Net income (loss)	$	60,891	$	75,205	$	(13,126)	$	(62,079)	$	60,891

	Three Months Ended March 31, 2018, as adjusted (Note 2)
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	515,712	$	61,793	$	(21)	$	577,484
Operating costs and other		4,120		503,173		71,601		(246)		578,648
Operating income (loss) from continuing operations		(4,120)		12,539		(9,808)		225		(1,164)
Other income (expense), net		(70)		1,732		200		(225)		1,637
Interest expense		(138)		(4,551)		(1,339)		—		(6,028)
Equity in net loss of subsidiaries		(7,963)		(16,081)		—		24,044		—
Income (loss) from continuing operations before income taxes		(12,291)		(6,361)		(10,947)		24,044		(5,555)
Income tax provision (benefit)		(411)		1,639		(5,150)		—		(3,922)
Loss from continuing operations		(11,880)		(8,000)		(5,797)		24,044		(1,633)
Income from discontinued operations before income taxes		—		—		1,263		—		1,263
Income tax provision		—		—		11,509		—		11,509
Loss from discontinued operations		—		—		(10,246)		—		(10,246)
Net loss	$	(11,880)	$	(8,000)	$	(16,043)	$	24,044	$	(11,879)

	Six Months Ended March 31, 2019
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	1,317,937	$	143,577	$	(48)	$	1,461,466
Operating costs and other		5,584		1,156,545		150,441		(539)		1,312,031
Operating income (loss) from continuing operations		(5,584)		161,392		(6,864)		491		149,435
Other income (expense), net		(42)		(32,636)		1,272		(491)		(31,897)
Interest income (expense)		(7,119)		(4,712)		943		—		(10,888)
Equity in net income of subsidiaries		90,109		9,671		—		(99,780)		—
Income (loss) from continuing operations before income taxes		77,364		133,715		(4,649)		(99,780)		106,650
Income tax (benefit) provision		(2,486)		31,387		(2,472)		—		26,429
Income (loss) from continuing operations		79,850		102,328		(2,177)		(99,780)		80,221
Income from discontinued operations before income taxes		—		—		15,554		—		15,554
Income tax provision		—		—		15,925		—		15,925
Loss from discontinued operations		—		—		(371)		—		(371)
Net income (loss)	$	79,850	$	102,328	$	(2,548)	$	(99,780)	$	79,850

	Six Months Ended March 31, 2018, as adjusted (Note 2)
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Operating revenue	$	—	$	1,010,718	$	130,890	$	(37)	$	1,141,571
Operating costs and other		8,209		984,821		146,547		(451)		1,139,126
Operating income (loss) from continuing operations		(8,209)		25,897		(15,657)		414		2,445
Other income, net		102		3,373		741		(414)		3,802
Interest expense		(166)		(10,251)		(1,384)		—		(11,801)
Equity in net income of subsidiaries		499,457		5,284		—		(504,741)		—
Income (loss) from continuing operations before income taxes		491,184		24,303		(16,300)		(504,741)		(5,554)
Income tax (benefit) provision		2,958		(476,955)		(30,566)		—		(504,563)
Income from continuing operations		488,226		501,258		14,266		(504,741)		499,009
Income from discontinued operations before income taxes		—		—		744		—		744
Income tax provision		—		—		11,526		—		11,526
Loss from discontinued operations		—		—		(10,782)		—		(10,782)
Net income	$	488,226	$	501,258	$	3,484	$	(504,741)	$	488,227

Schedule of Condensed Consolidating Statements of Comprehensive Income (Loss)

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Three Months Ended March 31, 2019
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	60,891	$	75,205	$	(13,126)	$	(62,079)	$	60,891
Other comprehensive income, net of income taxes:
Minimum pension liability adjustments, net		77		147		—		—		224
Other comprehensive income		77		147		—		—		224
Comprehensive income (loss)	$	60,968	$	75,352	$	(13,126)	$	(62,079)	$	61,115

	Three Months Ended March 31, 2018
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Net loss	$	(11,880)	$	(8,000)	$	(16,043)	$	24,044	$	(11,879)
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net		—		(7,568)		—		—		(7,568)
Minimum pension liability adjustments, net		92		216		—		—		308
Other comprehensive income (loss)		92		(7,352)		—		—		(7,260)
Comprehensive loss	$	(11,788)	$	(15,352)	$	(16,043)	$	24,044	$	(19,139)

	Six Months Ended March 31, 2019
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	79,850	$	102,328	$	(2,548)	$	(99,780)	$	79,850
Other comprehensive income, net of income taxes:
Minimum pension liability adjustments, net		155		294		—		—		449
Other comprehensive income		155		294		—		—		449
Comprehensive income (loss)	$	80,005	$	102,622	$	(2,548)	$	(99,780)	$	80,299

	Six Months Ended March 31, 2018
			Helmerich & Payne
	Helmerich & Payne, Inc.		International Drilling Co.		Non-Guarantor				Total
	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Net income	$	488,226	$	501,258	$	3,484	$	(504,741)	$	488,227
Other comprehensive income (loss), net of income taxes:
Unrealized depreciation on securities, net		—		(8,169)		—		—		(8,169)
Minimum pension liability adjustments, net		194		454		—		—		648
Other comprehensive income (loss)		194		(7,715)		—		—		(7,521)
Comprehensive income	$	488,420	$	493,543	$	3,484	$	(504,741)	$	480,706

Schedule of Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended March 31, 2019
			Helmerich & Payne
	Helmerich		International
	& Payne, Inc.		Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Net cash provided by operating activities	$	1,888	$	402,102	$	5,028	$	—	$	409,018
Cash flows from investing activities:
Capital expenditures		(5,178)		(320,577)		(4,225)		—		(329,980)
Purchase of short-term investments		—		(40,729)		(1,677)		—		(42,406)
Payment for acquisition of business, net of cash acquired		(2,781)		—		—		—		(2,781)
Proceeds from sale of short-term investments		—		58,015		—		—		58,015
Intercompany transfers		7,957		(7,957)		—		—		—
Proceeds from asset sales		—		20,971		3,588		—		24,559
Net cash provided by (used in) investing activities		(2)		(290,277)		(2,314)		—		(292,593)
Cash flows from financing activities:
Intercompany transfers		156,580		(156,580)		—		—		—
Dividends paid		(156,580)		—		—		—		(156,580)
Debt issuance costs paid		(3,912)		—		—		—		(3,912)
Payments for employee taxes on net settlement of equity awards		(6,268)		—		—		—		(6,268)
Proceeds from stock option exercises		2,257		—		—		—		2,257
Net cash used in financing activities		(7,923)		(156,580)		—		—		(164,503)
Net increase (decrease) in cash and cash equivalents and restricted cash		(6,037)		(44,755)		2,714		—		(48,078)
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	$	—	$	228,459	$	49,648	$	—	$	278,107

	Six Months Ended March 31, 2018, as adjusted (Note 2)
			Helmerich & Payne
	Helmerich		International
	& Payne, Inc.		Drilling Co.		Non-Guarantor				Total
(In thousands)	(Guarantor)		(Issuer)		Subsidiaries		Eliminations		Consolidated
Net cash provided by operating activities	$	10,351	$	192,093	$	5,207	$	—	$	207,651
Cash flows from investing activities:
Capital expenditures		(4,661)		(181,218)		(5,323)		—		(191,202)
Purchase of short-term investments		—		(36,784)		—		—		(36,784)
Payment for acquisition of business, net cash acquired		(47,886)		—		—		—		(47,886)
Proceeds from sale of short-term investments		—		32,020		—		—		32,020
Intercompany transfers		52,547		(52,547)		—		—		—
Proceeds from asset sales		—		16,308		1,518		—		17,826
Net cash used in investing activities		—		(222,221)		(3,805)		—		(226,026)
Cash flows from financing activities:
Intercompany transfers		153,433		(153,433)		—		—		—
Dividends paid		(153,433)		—		—		—		(153,433)
Payments for employee taxes on net settlement of equity awards		(5,791)		—		—		—		(5,791)
Proceeds from stock option exercises		1,645		—		—		—		1,645
Payment of contingent consideration from acquisition of business		—		—		(4,500)		—		(4,500)
Net cash used in financing activities		(4,146)		(153,433)		(4,500)		—		(162,079)
Net increase (decrease) in cash and cash equivalents and restricted cash		6,205		(183,561)		(3,098)		—		(180,454)
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	$	15,590	$	323,943	$	40,522	$	—	$	380,055