Property And Equipment

3 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

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



(In thousands)	December 31, 2012			September 30, 2012
Drilling vessels and equipment	$	2,727,429		$	2,523,895
Construction work in progress	575,820			438,081
Drill pipe	20,658			20,576
Office equipment and other	22,099			19,610
Cost	3,346,006			3,002,162
Less: Accumulated depreciation	(491,491		)	(464,822		)
Drilling and other property and equipment, net	$	2,854,515		$	2,537,340

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 December 31, 2012 and 2011 was approximately $9.0 million and $4.8 million, respectively.

Construction Projects

As of December 31, 2012, we had expended approximately $564 million towards our four drilling units under construction. Total remaining firm commitments for our four drilling units currently under construction were approximately $1.2 billion at December 31, 2012.

- 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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