BUSINESS SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2016

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

6. 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 that are not allocated to business units. 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 these gains or losses at the segment level.

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, snubbing, coiled tubing, 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, Australia, Canada, China, Argentina and Mexico. 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 and the mid-continent regions, and selected international locations. Customers include domestic operations of major multi-national and independent oil and gas producers, and selected nationally-owned oil companies.

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. Certain information with respect to RPC’s business segments is set forth in the following tables:

	Three months ended March 31,
(in thousands)	2016			2015
Revenues:
Technical Services	$	175,472		$	378,093
Support Services		13,623			28,177
Total revenues	$	189,095		$	406,270
Operating (loss) profit:
Technical Services	$	(63,264	)	$	5,862
Support Services		(6,636	)		3,907
Corporate		(6,443	)		(4,353	)
Gain on disposition of assets, net		1,256			958
Total operating (loss) profit	$	(75,087	)	$	6,374
Interest expense		(325	)		(691	)
Interest income		23			6
Other income, net		342			5,585
(Loss) income before income taxes	$	(75,047	)	$	11,274

As of and for the three months ended March 31, 2016	Technical Services		Support Services		Corporate		Total
(in thousands)
Depreciation and amortization	$	53,618	$	6,899	$	119	$	60,636
Capital expenditures		8,032		858		691		9,581
Identifiable assets	$	875,622	$	94,667	$	184,907	$	1,155,196

As of and for the three months ended March 31, 2015	Technical Services		Support Services		Corporate		Total
(in thousands)
Depreciation and amortization	$	57,676	$	8,166	$	134	$	65,976
Capital expenditures		96,387		6,583		522		103,492
Identifiable assets	$	1,331,402	$	141,498	$	77,080	$	1,549,980