Business Segment and Entity Wide Disclosures

12 Months Ended

Dec. 31, 2019

Business Segment and Entity wide Disclosures

Business Segment and Entity wide Disclosures

Note 14: Business Segment and Entity wide Disclosures

RPC’s reportable segments are the same as its operating segments. RPC manages its business under Technical Services and Support Services. Technical Services is comprised of service lines that generate revenue based on equipment, personnel or materials at the well site and are closely aligned with completion and production activities of the customers. Support Services is comprised of service lines which generate revenue from services and equipment offered off the well site and are closely aligned with the customers’ drilling activities. Selected overhead including centralized support services and regulatory compliance are classified as Corporate.

Technical Services consists primarily of pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline and fishing. The services offered under Technical Services are high capital and personnel intensive businesses. The Company considers all of these services to be closely integrated oil and gas well servicing businesses, and makes resource allocation and performance assessment decisions based on this operating segment as a whole across these various services.

Support Services consist primarily of drill pipe and related tools, pipe handling, pipe inspection and storage services, and oilfield training and consulting services. The demand for these services tends to be influenced primarily by customer drilling-related activity levels.

The Company’s Chief Operating Decision Maker (“CODM”) assesses performance and makes resource allocation decisions regarding, among others, staffing, growth and maintenance capital expenditures and key initiatives based on the operating segments outlined above.

Segment Revenues:

RPC’s operating segment revenues by major service lines are shown in the following table:

(in thousands)	2019		2018		2017
Technical Services:
Pressure Pumping	$	519,543	$	945,919	$	993,538
Downhole Tools		414,352		423,811		294,606
Coiled Tubing		80,758		100,049		109,462
Nitrogen		45,658		49,198		38,961
Snubbing		14,520		17,818		23,838
All other		70,723		110,418		77,946
Total Technical Services	$	1,145,554	$	1,647,213	$	1,538,351
Support Services:
Rental Tools	$	51,792	$	50,809	$	30,264
All other		25,063		22,983		26,612
Total Support Services	$	76,855	$	73,792	$	56,876
Total Revenues	$	1,222,409	$	1,721,005	$	1,595,227

The accounting policies of the reportable segments are the same as those described in Note 1 to these consolidated financial statements. RPC evaluates the performance of its segments based on revenues, operating profits and return on invested capital. Gains or losses on disposition of assets are reviewed by the CODM on a consolidated basis, and accordingly the Company does not report gains or losses at the segment level. Inter-segment revenues are generally recorded in segment operating results at prices that management believes approximate prices for arm’s length transactions and are not material to operating results.

Summarized financial information concerning RPC’s reportable segments for the years ended December 31, 2019, 2018 and 2017 are shown in the following table:

							Gain on		Impairment
	Technical		Support				disposition of		and other
(in thousands)	Services		Services		Corporate		assets, net		charges			Total
2019
Revenues	$	1,145,554	$	76,855	$	—	$	—	$	—		$	1,222,409
Operating (loss) profit		(32,993)		10,016		(12,745)		3,707		(82,273)	(1)		(114,288)
Capital expenditures		237,950		10,330		2,349		—		—			250,629
Depreciation and amortization		154,776		15,328		305		—		—			170,409
Identifiable assets		848,264		72,351		132,603		—		—			1,053,218
2018
Revenues	$	1,647,213	$	73,792	$	—	$	—	$	—		$	1,721,005
Operating profit (loss)		216,703		4,612		(14,629)		3,344		—			210,030
Capital expenditures		230,262		10,364		1,984		—		—			242,610
Depreciation and amortization		150,508		12,174		438		—		—			163,120
Identifiable assets		925,305		78,413		195,862		—		—			1,199,580
2017
Revenues	$	1,538,351	$	56,876	$	—	$	—	$	—		$	1,595,227
Operating profit (loss)		251,476		(12,228)		(17,561)		4,530		—			226,217
Capital expenditures		106,131		9,949		1,429		—		—			117,509
Depreciation and amortization		145,507		17,570		460		—		—			163,537
Identifiable assets		896,803		75,568		174,853		—		—			1,147,224

(1)Represents $80,263 related to technical services and $2,010 related to corporate services.

The following summarizes revenues for the United States and separately for all international locations combined for the years ended December 31, 2019, 2018 and 2017. The revenues are presented based on the location of the use of the equipment or services. Assets related to international operations are less than 10 percent of RPC’s consolidated assets, and therefore are not presented.

Years ended December 31,	2019		2018		2017
(in thousands)
United States Revenues	$	1,157,760	$	1,630,569	$	1,539,462
International Revenues		64,649		90,436		55,765
	$	1,222,409	$	1,721,005	$	1,595,227