BUSINESS SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2019

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

6. 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)	2019		2018
Technical Services:
Pressure Pumping	$	147,759	$	256,155
Downhole Tools		109,671		93,041
Coiled Tubing		20,178		25,196
Nitrogen		11,308		11,431
Snubbing		3,463		3,973
All other		21,700		29,267
Total Technical Services	$	314,079	$	419,063
Support Services:
Rental Tools	$	13,936	$	10,020
All other		6,641		7,251
Total Support Services	$	20,577	$	17,271
Total revenues	$	334,656	$	436,334

The following summarizes revenues for the United States and separately for all international locations combined for the three months ended March 31, 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)	2019		2018
United States revenues	$	313,968	$	417,385
International revenues		20,688		18,949
Total revenues	$	334,656	$	436,334

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, 2019 and 2018 are shown in the following table:

	Three months ended March 31,
(in thousands)	2019			2018
Revenues:
Technical Services	$	314,079		$	419,063
Support Services		20,577			17,271
Total revenues	$	334,656		$	436,334
Operating (loss) income:
Technical Services	$	(4,457	)	$	65,005
Support Services		3,137			(905	)
Corporate		(4,345	)		(4,665	)
Gain on disposition of assets, net		3,504			1,363
Total operating (loss) income	$	(2,161	)	$	60,798
Interest expense		(89	)		(105	)
Interest income		800			402
Other income , net		445			5,395
(Loss) income before income taxes	$	(1,005	)	$	66,490

As of and for the three months ended March 31, 2019	Technical Services		Support 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

As of and for the three months ended March 31, 2018	Technical Services		Support Services		Corporate		Total
(in thousands)
Depreciation and amortization	$	33,937	$	3,432	$	111	$	37,480
Capital expenditures		48,551		1,406		525		50,482
Identifiable assets	$	933,979	$	73,801	$	173,237	$	1,181,017