XML 30 R17.htm IDEA: XBRL DOCUMENT v3.8.0.1
Property and Equipment (Impairments) (Policies)
9 Months Ended
Sep. 30, 2017
Accounting Policies [Abstract]  
Property, Plant and Equipment, Impairment [Policy Text Block]
ImpairmentsWe evaluate for potential impairment of long-lived assets when indicators of impairment are present, which may include, among other things, significant adverse changes in industry trends (including revenue rates, utilization rates, oil and natural gas market prices, and industry rig counts). Beginning in late 2014, oil prices declined significantly resulting in a downturn in our industry that persisted through 2016, affecting both drilling and production services. Despite the modest recovery in commodity prices that began in late 2016, we continue to monitor all indicators of potential impairments in accordance with ASC Topic 360, Property, Plant and Equipment.
In performing an impairment evaluation, we estimate the future undiscounted net cash flows from the use and eventual disposition of the assets grouped at the lowest level that independent cash flows can be identified. For our Production Services Segment, we perform an impairment evaluation and estimate future undiscounted cash flows for the individual reporting units (well servicing, wireline and coiled tubing). For our Drilling Services Segment, we perform an impairment evaluation and estimate future undiscounted cash flows for individual domestic drilling rig assets and for our Colombian drilling rig assets as a group. If the sum of the estimated future undiscounted net cash flows is less than the carrying amount of the asset group, then we determine the fair value of the asset group. The amount of an impairment charge is measured as the difference between the carrying amount and the fair value of the assets.
Due to continued performance at levels lower than anticipated and a decline in our projected cash flows for the coiled tubing reporting unit, we performed an impairment evaluation of our coiled tubing business as of June 30, 2017 and concluded that no impairment was present.
If any of our assets become or remain idle for an extended amount of time, then our estimated cash flows may further decrease, and therefore the probability of a near term sale may increase. If any of the foregoing were to occur, we may incur additional impairment charges. The assumptions used in the impairment evaluation are inherently uncertain and require management judgment.