Business Segment Information

12 Months Ended

Dec. 31, 2015

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, 2015, 2014 and 2013 are shown in the following table:

(in thousands)	Technical Services			Support Services			Corporate			Loss on disposition of assets, net			Total
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
2014
Revenues	$	2,180,457		$	156,956		$	—		$	—		$	2,337,413
Operating profit (loss)		390,004			42,510			(16,113	)		(15,472	)		400,929
Capital expenditures		342,932			27,148			1,422			—			371,502
Depreciation and amortization		198, 636			31,578			599			—			230,813
Identifiable assets		1,514,084			157,688			87,586			—			1,759,358
2013
Revenues	$	1,729,732		$	131,757		$	—		$	—		$	1,861,489
Operating profit (loss)		276,246			26,223			(15,659	)		(9,371	)		277,439
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

The following summarizes selected information between the United States and all international locations combined for the years ended December 31, 2015, 2014 and 2013. 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,	2015		2014		2013
(in thousands)
United States Revenues	$	1,191,704	$	2,249,260	$	1,795,592
International Revenues		72,136		88,153		65,897
	$	1,263,840	$	2,337,413	$	1,861,489