BUSINESS SEGMENT INFORMATION

9 Months Ended

Sep. 30, 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 Argentina, Canada, Gabon, Bolivia, China 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:

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

	Three months ended September 30						Nine months ended September 30
(in thousands)	2016			2015			2016			2015
Revenues:
Technical Services	$	163,331		$	271,346		$	470,020		$	925,245
Support Services		12,553			20,578			37,957			70,509
Total revenues	$	175,884		$	291,924		$	507,977		$	995,754
Operating loss:
Technical Services	$	(48,627	)	$	(44,240	)	$	(177,581	)	$	(87,631	)
Support Services		(5,541	)		(1,850	)		(19,340	)		599
Corporate		(3,397	)		(3,018	)		(13,724	)		(10,725	)
Gain (loss) on disposition of assets, net		1,148			(3,791	)		3,919			(1,115	)
Total operating loss	$	(56,417	)	$	(52,899	)	$	(206,726	)	$	(98,872	)
Interest expense		(115	)		(250	)		(566	)		(1,331	)
Interest income		169			5			296			20
Other income (expense), net		86			(795	)		274			4,932
Loss before income taxes	$	(56,277	)	$	(53,939	)	$	(206,722	)	$	(95,251	)

As of and for the nine months ended September 30, 2016	Technical Services		Support Services		Corporate		Total
(in thousands)
Depreciation and amortization	$	148,880	$	19,657	$	354	$	168,891
Capital expenditures		20,596		1,953		2,368		24,917
Identifiable assets	$	749,721	$	78,471	$	224,700	$	1,052,892

As of and nine months ended September 30, 2015	Technical Services		Support Services		Corporate		Total
(in thousands)
Depreciation and amortization	$	179,778	$	24,667	$	379	$	204,824
Capital expenditures		144,715		9,732		755		155,202
Identifiable assets	$	1,094,802	$	116,890	$	76,399	$	1,288,091