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BUSINESS SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2020

7. BUSINESS SEGMENT INFORMATION

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 tools offered off the well site and are more 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:


	Three months ended
	March 31,
(in thousands)	2020		2019
Technical Services:
Pressure Pumping	$	96,765	$	147,759
Downhole Tools		85,908		109,671
Coiled Tubing		16,239		20,178
Nitrogen		9,931		11,308
Snubbing		2,304		3,463
All other		16,553		21,700
Total Technical Services	$	227,700	$	314,079
Support Services:
Rental Tools	$	10,404	$	13,936
All other		5,673		6,641
Total Support Services	$	16,077	$	20,577
Total Revenues	$	243,777	$	334,656

The following summarizes revenues for the United States and separately for all international locations combined for the three months ended March 31, 2020 and 2019. 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.


	Three months ended
	March 31,
(in thousands)	2020		2019
United States revenues	$	227,994	$	313,968
International revenues		15,783		20,688
Total revenues	$	243,777	$	334,656

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 with respect RPC’s reportable segments for the three months ended March 31, 2020 and 2019 are shown in the following table:


	Three months ended
	March 31,
(in thousands)	2020		2019
Revenues:
Technical Services	$	227,700	$	314,079
Support Services		16,077		20,577
Total revenues	$	243,777	$	334,656
Operating (loss) income:
Technical Services	$	(12,207)	$	(4,457)
Support Services		1,547		3,137
Corporate Expenses		(3,330)		(4,345)
Impairment and Other Charges ⁽¹⁾		(205,536)		—
Gain on disposition of assets, net		819		3,504
Total operating loss	$	(218,707)	$	(2,161)
Interest expense		(113)		(89)
Interest income		334		800
Other (expense) income , net		(308)		445
Loss before income taxes	$	(218,794)	$	(1,005)

(1)	Relates exclusively to Technical Services

As of and for the three months ended

Technical

Support

March 31, 2020

Services

Corporate

Total

(in thousands)

Depreciation and amortization

36,995

2,228

39,293

Capital expenditures

20,338

4,681

—

25,019

Identifiable assets

654,354

(1)

70,022

173,254

897,630

(1)	Reflects impact of impairment charges recorded during the three months ended March 31, 2020.


As of and for the three months ended	Technical		Support
March 31, 2019	Services		Services		Corporate		Total
(in thousands)
Depreciation and amortization	$	39,902	$	2,511	$	92	$	42,505
Capital expenditures		59,889		2,069		322		62,280
Identifiable assets	$	969,036	$	82,111	$	175,345	$	1,226,492