Business Segment Information

12 Months Ended

Dec. 31, 2011

Business Segment Information

Note 12: Business Segment Information

RPC’s service lines have been aggregated into two reportable oil and gas services segments — Technical Services and Support Services — because of the similarities between the financial performance and approach to managing the service lines within each of the segments, as well as the economic and business conditions impacting their business activity levels. Corporate includes selected administrative costs incurred by the Company.

 Technical Services include RPC’s oil and gas service lines that utilize people and equipment to perform value-added completion, production and maintenance services directly to a customer’s well. These services include pressure pumping services, coiled tubing, snubbing, nitrogen pumping, well control consulting and firefighting, downhole tools, wireline, and fluid pumping services. These Technical Services are primarily used in the completion, production and maintenance of oil and gas wells. The principal markets for this segment include the United States, including the Gulf of Mexico, the mid-continent, southwest, Rocky Mountain and Appalachian regions, and international locations including primarily Africa, Canada, China, Latin America, the Middle East and New Zealand. Customers include major multi-national and independent oil and gas producers, and selected nationally-owned oil companies.

Support Services include RPC’s oil and gas service lines that primarily provide equipment for customer use or services to assist customer operations. The equipment and services include drill pipe and related tools, pipe handling, inspection and storage services, and oilfield training services. The demand for these services tends to be influenced primarily by customer drilling-related activity levels. The principal markets for this segment include the United States, including the Gulf of Mexico, the mid-continent and Appalachian regions, and international locations, including primarily Canada, Latin America, and the Middle East. Customers include domestic operations of major multi-national and independent oil and gas producers, and selected nationally-owned oil companies.

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 Company’s chief decision maker 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, 2011, 2010 and 2009 are shown in the following table:

	Technical Services			Support Services			Corporate			(Loss) Gain on disposition of assets, net			Total
(in thousands)
2011
Revenues	$	1,663,793		$	146,014		$	—		$	—		$	1,809,807
Operating profit (loss)		451,259			51,672			(17,019	)		(3,831	)		482,081
Capital expenditures		369,568			42,837			3,995			—			416,400
Depreciation and amortization		152,252			27,464			189			—			179,905
Identifiable assets		1,103,341			177,974			56,896			—			1,338,211
2010
Revenues	$	979,834		$	116,550		$	—		$	—		$	1,096,384
Operating profit (loss)		217,144			31,086			(13,143	)		3,758			238,845
Capital expenditures		163,362			23,012			1,112			—			187,486
Depreciation and amortization		106,480			26,640			240			—			133,360
Identifiable assets		668,081			158,577			61,213			—			887,871
2009
Revenues	$	513,289		$	74,574		$	—		$	—		$	587,863
Operating profit (loss)		(20,328	)		(1,636	)		(12,231	)		1,143			(33,052	)
Capital expenditures		48,175			19,220			435			—			67,830
Depreciation and amortization		101,780			28,085			715			—			130,580
Identifiable assets		453,133			144,905			51,005			—			649,043

The following summarizes selected information between the United States and all international locations combined for the years ended December 31, 2011, 2010 and 2009. The revenues are presented based on the location of the use of the product or service. Assets related to international operations are less than 10 percent of RPC’s consolidated assets, and therefore are not presented.

Years ended December 31,	2011		2010		2009
(in thousands)
United States Revenues	$	1,757,661	$	1,041,461	$	543,026
International Revenues		52,146		54,923		44,837
	$	1,809,807	$	1,096,384	$	587,863