Property And Equipment

9 Months Ended

Jun. 30, 2012

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

A summary of property and equipment by classification is as follows (in thousands):



(In thousands)	June 30, 2012			September 30, 2011
Drilling vessels and equipment	$	1,624,065		$	1,578,592
Construction work in progress	1,212,129			736,827
Drill pipe	19,407			18,182
Office equipment and other	17,292			8,800
Cost	2,872,893			2,342,401
Less: Accumulated depreciation	(500,447		)	(455,080		)
Drilling and other property and equipment, net	$	2,372,446		$	1,887,321

Property and equipment are recorded at cost. Interest incurred related to property under construction is capitalized as a component of construction costs. Interest capitalized during the three months ended June 30, 2012 and 2011 was approximately $9.8 million and $2.4 million and $25.8 million and $4.7 million for the nine month period ending June 30, 2012 and 2011, respectively.

New Construction Projects

As of June 30, 2012, we had expended approximately $1.2 billion towards our six drilling units under construction, including the Atwood Condor, which was placed into service in early July 2012. Total unpaid firm commitments for our remaining five drilling units currently under construction are approximately $1.2 billion.

- 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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