Business Segment and Entity wide Disclosures

12 Months Ended

Dec. 31, 2017

Business Segment Information

Business Segment and Entity wide Disclosures

Note 12: 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)	2017		2016		2015
Technical Services:
Pressure Pumping	$	993,538	$	336,550	$	676,415
Downhole Tools		294,606		169,754		229,902
Coiled Tubing		109,462		70,511		112,923
Nitrogen		38,961		37,172		53,488
Snubbing		23,838		18,903		38,912
All other		77,946		46,764		63,653
Total Technical Services	$	1,538,351	$	679,654	$	1,175,293
Support Services:
Rental Tools	$	30,264	$	21,443	$	45,126
All other		26,612		27,877		43,421
Total Support Services	$	56,876	$	49,320	$	88,547
Total Revenues	$	1,595,227	$	728,974	$	1,263,840

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, 2017, 2016 and 2015 are shown in the following table:

(in thousands)	Technical Services			Support Services			Corporate			Gain (loss)  on disposition of assets, net			Total
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
2016
Revenues	$	679,654		$	49,320		$	—		$	—		$	728,974
Operating (loss) profit		(203,804	)		(26,021	)		(17,037	)		7,920			(238,942	)
Capital expenditures		28,380			2,928			2,630			—			33,938
Depreciation and amortization		191,181			25,606			471			—			217,258
Identifiable assets		733,008			76,876			225,568			—			1,035,452
2015
Revenues	$	1,175,293		$	88,547		$	—		$	—		$	1,263,840
Operating loss		(132,982	)		(2,363	)		(14,515	)		(6,417	)		(156,277	)
Capital expenditures		155,361			11,055			1,010			—			167,426
Depreciation and amortization		237,778			32,697			502			—			270,977
Identifiable assets		976,761			108,262			152,071			—			1,237,094

The following summarizes revenues for the United States and separately for all international locations combined for the years ended December 31, 2017, 2016 and 2015. 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,	2017		2016		2015
(in thousands)
United States Revenues	$	1,539,462	$	677,755	$	1,191,704
International Revenues		55,765		51,219		72,136
	$	1,595,227	$	728,974	$	1,263,840