BUSINESS SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2021

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

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)	2021		2020
Technical Services:
Pressure Pumping	$	74,900	$	96,765
Downhole Tools		56,377		85,908
Coiled Tubing		14,768		16,239
Nitrogen		11,160		9,931
Snubbing		3,832		2,304
All other		11,604		16,553
Total Technical Services	$	172,641	$	227,700
Support Services:
Rental Tools	$	6,032	$	10,404
All other		3,937		5,673
Total Support Services	$	9,969	$	16,077
Total Revenues	$	182,610	$	243,777

The following summarizes revenues for the United States and separately for all international locations combined for the three months ended March 31, 2021 and 2020. 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)	2021		2020
United States revenues	$	172,929	$	227,994
International revenues		9,681		15,783
Total revenues	$	182,610	$	243,777

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, 2021 and 2020 are shown in the following table:

	Three months ended
	March 31,
(in thousands)	2021		2020
Revenues:
Technical Services	$	172,641	$	227,700
Support Services		9,969		16,077
Total revenues	$	182,610	$	243,777
Operating (loss) income:
Technical Services	$	(5,762)	$	(12,207)
Support Services		(2,896)		1,547
Corporate Expenses		(3,323)		(3,330)
Impairment and Other Charges (1)		-		(205,536)
Gain on disposition of assets, net		1,460		819
Total operating loss	$	(10,521)	$	(218,707)
Interest expense		(380)		(113)
Interest income		18		334
Other income (expense) , net		507		(308)
Loss before income taxes	$	(10,376)	$	(218,794)

⁽¹⁾ Relates exclusively to Technical Services.

As of and for the three months ended	Technical		Support
March 31, 2021	Services		Services		Corporate		Total
(in thousands)
Depreciation and amortization	$	15,728	$	1,977	$	68	$	17,773
Capital expenditures		9,648		1,937		165		11,750
Identifiable assets	$	507,815	$	70,304	$	221,954	$	800,073

As of and for the three months ended	Technical		Support
March 31, 2020	Services		Services		Corporate		Total
(in thousands)
Depreciation and amortization	$	36,995	$	2,228	$	70	$	39,293
Capital expenditures		20,338		4,681		—		25,019
Identifiable assets	$	654,354	$	70,022	$	173,254	$	897,630