Business Segment Information

12 Months Ended

Dec. 31, 2013

Business Segment Information

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, 2013, 2012 and 2011 are shown in the following table:

	Technical Services		Support Services		Corporate			Loss on disposition of assets, net			Total
(in thousands)
2013
Revenues	$	1,729,732	$	131,757	$	—		$	—		$	1,861,489
Operating profit (loss)		276,246		26,223		(17,685	)		(9,371	)		275,413
Capital expenditures		167,586		32,250		1,845			—			201,681
Depreciation and amortization		181,026		31,417		685			—			213,128
Identifiable assets		1,113,877		202,243		67,740			—			1,383,860
2012
Revenues	$	1,794,015	$	151,008	$	—		$	—		$	1,945,023
Operating profit (loss)		420,231		45,912		(17,654	)		(6,099	)		442,390
Capital expenditures		277,686		46,053		5,197			—			328,936
Depreciation and amortization		183,762		30,707		430			—			214,899
Identifiable assets		1,128,124		175,611		63,428			—			1,367,163
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

The following summarizes selected information between the United States and all international locations combined for the years ended December 31, 2013, 2012 and 2011. 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,	2013		2012		2011
(in thousands)
United States Revenues	$	1,795,592	$	1,870,815	$	1,757,661
International Revenues		65,897		74,208		52,146
	$	1,861,489	$	1,945,023	$	1,809,807