Business Segment and Entity Wide Disclosures

12 Months Ended

Dec. 31, 2020

Business Segment and Entity wide Disclosures

Business Segment and Entity wide Disclosures

Note 15: 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)	2020		2019		2018
Technical Services:
Pressure Pumping	$	221,597	$	519,543	$	945,919
Downhole Tools		195,052		414,352		423,811
Coiled Tubing		51,616		80,758		100,049
Nitrogen		30,213		45,658		49,198
Snubbing		8,016		14,520		17,818
All other		49,994		70,723		110,418
Total Technical Services	$	556,488	$	1,145,554	$	1,647,213
Support Services:
Rental Tools	$	25,280	$	51,792	$	50,809
All other		16,534		25,063		22,983
Total Support Services	$	41,814	$	76,855	$	73,792
Total Revenues	$	598,302	$	1,222,409	$	1,721,005

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, 2020, 2019 and 2018 are shown in the following table:

							Gain on		Impairment
	Technical		Support				disposition of		and other
(in thousands)	Services		Services		Corporate		assets, net		charges			Total
2020
Revenues	$	556,488	$	41,814	$	—	$	—	$	—		$	598,302
Operating (loss) profit		(82,525)		(6,714)		(12,426)		9,523		(217,493)	(1)		(309,635)
Capital expenditures		54,327		10,224		514		—		—			65,065
Depreciation and amortization		80,877		14,377		276		—		—			95,530
Identifiable assets		499,764		64,457		226,284		—		—			790,505
2019
Revenues	$	1,145,554	$	76,855	$	—	$	—	$	—		$	1,222,409
Operating (loss) profit		(32,993)		10,016		(12,745)		3,707		(82,273)	(2)		(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

(1)Represents $212,292 related to technical services, $4,660 related to pension settlement loss and the remainder related to corporate expenses.

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

The following summarizes revenues for the United States and separately for all international locations combined for the years ended December 31, 2020, 2019 and 2018. 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,	2020		2019		2018
(in thousands)
United States Revenues	$	562,390	$	1,157,760	$	1,630,569
International Revenues		35,912		64,649		90,436
	$	598,302	$	1,222,409	$	1,721,005