ACCOUNTS RECEIVABLE

3 Months Ended

Dec. 31, 2016

Receivables [Abstract]

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

We record accounts receivable at the amount we invoice our clients. Our clients are major international corporate entities and government organizations with stable payment experience. Historically, our uncollectible accounts receivable have been immaterial, and typically, we do not require collateral for our receivables. We provide an allowance for uncollectible accounts, as necessary, on a specific identification basis. Our allowance for doubtful accounts as of December 31, 2016 and September 30, 2016 was $2.3 million and $1.2 million, respectively. Our provision for doubtful accounts for the three months endedDecember 31, 2016 and 2015 was $2.4 million and $0.8 million, respectively. The provision for doubtful accounts is reported as a component of Contract drilling costs in our Condensed Consolidated Statements of Operations.