Property And Equipment

3 Months Ended

Dec. 31, 2011

Property And Equipment [Abstract]

Property And Equipment

4. PROPERTY AND EQUIPMENT

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

	December 31, 2011			September 30, 2011
Drilling vessels and related equipment
Cost	$	2,489,323		$	2,315,419
Accumulated depreciation		(450,544	)		(435,577	)
Net book value		2,038,779			1,879,842
Drill pipe
Cost		18,390			18,182
Accumulated depreciation		(14,181	)		(13,885	)
Net book value		4,209			4,297
Furniture and other
Cost		9,064			8,800
Accumulated depreciation		(5,838	)		(5,618	)
Net book value		3,226			3,182
NET PROPERTY AND EQUIPMENT	$	2,046,214		$	1,887,321

Property and equipment are recorded at costs. Interest costs related to property under construction are capitalized as a component of construction costs. Interest capitalized during the three months ended December 31, 2011 and September 30, 2011, was approximately $4.8 million and $3.5 million, respectively.

New Construction Projects

In October 2011, we entered into a turnkey construction contract with Daewoo Shipbuilding and Marine Engineering Co., Ltd. ("DSME") to construct an ultra-deepwater drillship, the Atwood Achiever, at the DSME yard in South Korea. The Atwood Achiever is scheduled for delivery in June 2014.

As of December 31, 2011, we had expended approximately $906 million towards the construction of our six drilling units currently under construction. Total remaining firm commitments for our six drilling units currently under construction are approximately $1.4 billion.