Business Segment and Entity wide Disclosures

12 Months Ended

Dec. 31, 2018

Business Segment Information

Business Segment and Entity wide Disclosures

Note 13: 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)	2018		2017		2016
Technical Services:
Pressure Pumping	$	945,919	$	993,538	$	336,550
Downhole Tools		423,811		294,606		169,754
Coiled Tubing		100,049		109,462		70,511
Nitrogen		49,198		38,961		37,172
Snubbing		17,818		23,838		18,903
All other		110,418		77,946		46,764
Total Technical Services	$	1,647,213	$	1,538,351	$	679,654
Support Services:
Rental Tools	$	50,809	$	30,264	$	21,443
All other		22,983		26,612		27,877
Total Support Services	$	73,792	$	56,876	$	49,320
Total Revenues	$	1,721,005	$	1,595,227	$	728,974

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, 2018, 2017 and 2016 are shown in the following table:

(in thousands)	Technical Services			Support Services			Corporate			Gain (loss) on  disposition of assets, net		Total
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 (loss) profit		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		(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

The following summarizes revenues for the United States and separately for all international locations combined for the years ended December 31, 2018, 2017 and 2016. 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,	2018		2017		2016
(in thousands)
United States Revenues	$	1,630,569	$	1,539,462	$	677,755
International Revenues		90,436		55,765		51,219
	$	1,721,005	$	1,595,227	$	728,974