Property And Equipment

3 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

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



(In thousands)	December 31, 2013			September 30, 2013
Drilling vessels and equipment	$	3,632,897		$	2,979,503
Construction work in progress	501,486			715,320
Drill pipe	32,804			26,743
Office equipment and other	29,672			24,439
Cost	4,196,859			3,746,005
Less: Accumulated depreciation	(613,592		)	(581,281		)
Drilling and other property and equipment, net	$	3,583,267		$	3,164,724

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, 2013 and 2012 was approximately $9.8 million and $9.0 million, respectively.

Recently Completed Construction Projects

Our first ultra-deepwater drillship, Atwood Advantage, was delivered from the Daewoo Shipbuilding and Marine Engineering Co., Ltd. yard in South Korea in December 2013.

Ongoing Construction Projects

As of December 31, 2013, we had expended approximately $500 million towards our three ultra-deepwater drillships under construction. Total remaining firm commitments for these three drilling units under construction were approximately $1.2 billion at December 31, 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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