Organization and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2016

Summary of net income (loss) attributable to Exterran common stockholders used in the calculation of basic and diluted income (loss) per common share

The following table summarizes net income (loss) attributable to Archrock common stockholders used in the calculation of basic and diluted income (loss) per common share (in thousands):



	Three Months Ended March 31,
	2016			2015
Loss from continuing operations attributable to Archrock stockholders	$	(1,819	)	$	(2,761	)
Income from discontinued operations, net of tax	—			33,788
Net income (loss) attributable to Archrock stockholders	(1,819		)	31,027
Less: Net income attributable to participating securities	(184		)	(117		)
Net income (loss) attributable to Archrock common stockholders	$	(2,003	)	$	30,910

Schedule of potential shares of common stock that were included in computing diluted income (loss) attributable to Exterran common stockholders per common share

The following table shows the potential shares of common stock that were included in computing diluted income (loss) attributable to Archrock common stockholders per common share (in thousands):



	Three Months Ended March 31,
	2016		2015
Weighted average common shares outstanding including participating securities	70,162		69,179
Less: Weighted average participating securities outstanding	(1,329	)	(927	)
Weighted average common shares outstanding — used in basic income (loss) per common share	68,833		68,252
Net dilutive potential common shares issuable:
On exercise of options and vesting of restricted stock units	—		*
Weighted average common shares outstanding — used in diluted income (loss) per common share	68,833		68,252


*	Excluded from diluted income (loss) per common share as their inclusion would have been anti-dilutive.

Schedule of potential shares of common stock issuable, excluded from computation of diluted income (loss), attributable to Exterran common stockholders per common share

The following table shows the potential shares of common stock issuable that were excluded from computing diluted income (loss) attributable to Archrock common stockholders per common share as their inclusion would have been anti-dilutive (in thousands):



	Three Months Ended March 31,
	2016	2015
Net dilutive potential common shares issuable:
On exercise of options where exercise price is greater than average market value for the period	916	568
On exercise of options and vesting of restricted stock units	—	282
Net dilutive potential common shares issuable	916	850

Schedule of changes in accumulated other comprehensive income (loss) by component, net of tax, excluding noncontrolling interest

The following table presents the changes in accumulated other comprehensive income (loss) by component, net of tax, and excluding noncontrolling interest, during the three months ended March 31, 2015 and 2016 (in thousands):



	Derivatives Cash Flow Hedges				Foreign Currency Translation Adjustment			Total
Accumulated other comprehensive income, January 1, 2015	$	(911	)		$	26,745		$	25,834
Loss recognized in other comprehensive loss, net of tax	(1,502		)	⁽¹⁾	(7,745		)	(9,247		)
Loss reclassified from accumulated other comprehensive income, net of tax	460			⁽²⁾	—			460
Other comprehensive loss attributable to Archrock stockholders	(1,042		)		(7,745		)	(8,787		)
Accumulated other comprehensive income, March 31, 2015	$	(1,953	)		$	19,000		$	17,047

Accumulated other comprehensive loss, January 1, 2016	$	(1,570	)		$	—		$	(1,570	)
Loss recognized in other comprehensive loss, net of tax	(1,730		)	⁽³⁾	—			(1,730		)
Loss reclassified from accumulated other comprehensive loss, net of tax	325			⁽⁴⁾	—			325
Other comprehensive loss attributable to Archrock stockholders	(1,405		)		—			(1,405		)
Accumulated other comprehensive loss, March 31, 2016	$	(2,975	)		$	—		$	(2,975	)


⁽¹⁾	During the three months ended March 31, 2015, we recognized a loss of $2.3 million and a tax benefit of $0.8 million, in other comprehensive income (loss) related to changes in the fair value of derivative financial instruments.


⁽²⁾	During the three months ended March 31, 2015, we reclassified a loss of $0.7 million to interest expense and a tax benefit of $0.2 million to provision for (benefit from) income taxes in our condensed consolidated statements of operations from accumulated other comprehensive income (loss).


⁽³⁾	During the three months ended March 31, 2016, we recognized a loss of $2.5 million and a tax benefit of $0.8 million in other comprehensive income (loss) related to the change in the fair value of derivative financial instruments.


⁽⁴⁾	During the three months ended March 31, 2016, we reclassified a loss of $0.5 million to interest expense and a tax benefit of $0.2 million to provision for (benefit from) income taxes in our condensed consolidated statements of operations from accumulated other comprehensive income (loss).

Summary of carrying amount and fair value of debt

The following table summarizes the carrying amount and fair value of our debt as of March 31, 2016 and December 31, 2015 (in thousands):



	March 31, 2016				December 31, 2015
	Carrying Amount⁽¹⁾		Fair Value		Carrying Amount⁽¹⁾		Fair Value
Fixed rate debt	$	681,250	$	518,000	$	680,484	$	524,000
Floating rate debt	918,960		920,000		896,398		897,000
Total debt	$	1,600,210	$	1,438,000	$	1,576,882	$	1,421,000


⁽¹⁾	Carrying values are shown net of unamortized debt discounts and unamortized deferred financing costs. See Note 7 (“Long-Term Debt”) for further details.