Property And Equipment

9 Months Ended

Jun. 30, 2013

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

A summary of property and equipment by classification is as follows:



(In thousands)	June 30, 2013			September 30, 2012
Drilling vessels and equipment	$	2,968,358		$	2,523,895
Construction work in progress	573,010			438,081
Drill pipe	21,439			20,576
Office equipment and other	23,007			19,610
Cost	3,585,814			3,002,162
Less: Accumulated depreciation	(550,242		)	(464,822		)
Drilling and other property and equipment, net	$	3,035,572		$	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 June 30, 2013 and 2012 was approximately $8.2 million and $9.8 million, respectively, and the nine months ended June 30, 2013, and 2012, was $23.7 million and $25.8 million, respectively.

Construction Projects

As of June 30, 2013, we had expended approximately $560 million towards our four newbuild drilling units contracted for construction. Total remaining firm commitments for those drilling units were approximately $1.6 billion at June 30, 2013.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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