Segment Information

9 Months Ended

Sep. 30, 2014

Segment Information [Abstract]

Segment Information

(12)Segment Information

Business Segments

The Drilling Products and Services segment rents and sells bottom hole assemblies, premium drill pipe, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, completion, production and workover activities.  It also provides on-site accommodations and bolting and machining services.  The Onshore Completion and Workover Services segment provides pressure pumping services used to complete and stimulate production in new oil and gas wells, fluid handling services and well servicing rigs that provide a variety of well completion, workover and maintenance services.  The Production Services segment provides intervention services such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, production testing and optimization, and remedial pumping services. It also provides specialized pressure control tools used to manage and control pressure throughout the life of a well.The Technical Solutions segment provides services typically requiring specialized engineering, manufacturing or project planning, including well control services, well containment systems, stimulation and sand control services and well plug and abandonment services. It also includes production handling arrangements and the production and sale of oil and gas. 

For the three and nine months ended September 30, 2014 and 2013, operating results for the Company’s subsea construction and conventional decommissioning businesses are reported in discontinued operations (see note 2).  Previously those operating results were reported within the Technical Solutions segment, which was named the Subsea and Technical Solutions segment.

The Company evaluates the performance of its reportable segments based on income or loss from operations.  The segment measure is calculated as follows: segment revenues less segment operating expenses, depreciation expense and allocated general and administrative expenses.  General and administrative expenses are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, other methods which the Company believes to be a reasonable reflection of the utilization of services provided.  The Company believes this segment measure is useful in evaluating the performance of its reportable segments because it highlights operating trends and aids analytical comparisons.

Summarized financial information for the Company’s segments for the three and nine months ended September 30, 2014 and 2013 is shown in the following tables (in thousands): 

Three Months Ended September 30, 2014
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
Revenues	$	239,204	$	470,849	$	348,793	$	150,180	$	-	$	1,209,026
Cost of services and rentals
(exclusive of items shown separately below)		76,277		317,433		248,567		79,415		-		721,692
Depreciation, depletion, amortization     and accretion		47,904		59,009		41,225		22,016		-		170,154
General and administrative expenses		36,913		39,625		45,627		32,694		-		154,859
Income from operations		78,110		54,782		13,374		16,055		-		162,321
Interest expense, net		-		-		-		404		(24,573)		(24,169)
Other expense		-		-		-		-		(2,051)		(2,051)
Income (loss) from continuing operations     before income taxes	$	78,110	$	54,782	$	13,374	$	16,459	$	(26,624)	$	136,101

Three Months Ended September 30, 2013
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
Revenues	$	215,523	$	398,016	$	359,722	$	123,151	$	-	$	1,096,412
Cost of services and rentals
(exclusive of items shown separately below)		73,873		275,676		251,575		70,508		-		671,632
Depreciation, depletion, amortization     and accretion		42,390		52,576		45,554		11,508		-		152,028
General and administrative expenses		35,864		37,216		46,735		27,549		-		147,364
Income from operations		63,396		32,548		15,858		13,586		-		125,388
Interest expense, net		-		-		-		743		(26,307)		(25,564)
Other expense		-		-		-		-		(1,697)		(1,697)
Income (loss) from continuing operations     before income taxes	$	63,396	$	32,548	$	15,858	$	14,329	$	(28,004)	$	98,127

Nine Months Ended September 30, 2014
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
Revenues	$	685,396	$	1,258,774	$	1,013,904	$	419,922	$	-	$	3,377,996
Cost of services and rentals
(exclusive of items shown separately below)		216,166		876,575		706,911		223,938		-		2,023,590
Depreciation, depletion, amortization     and accretion		140,265		174,995		123,213		54,964		-		493,437
General and administrative expenses		117,026		114,604		138,058		87,943		-		457,631
Income from operations		211,939		92,600		45,722		53,077		-		403,338
Interest expense, net		-		-		-		1,167		(73,777)		(72,610)
Other expense		-		-		-		-		(1,480)		(1,480)
Income (loss) from continuing operations     before income taxes	$	211,939	$	92,600	$	45,722	$	54,244	$	(75,257)	$	329,248

Nine Months Ended September 30, 2013
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
Revenues	$	614,924	$	1,222,215	$	1,096,185	$	341,089	$	-	$	3,274,413
Cost of services and rentals
(exclusive of items shown separately below)		205,502		819,472		756,954		188,002		-		1,969,930
Depreciation, depletion, amortization     and accretion		125,768		158,021		133,361		29,282		-		446,432
General and administrative expenses		104,002		116,786		143,349		76,675		-		440,812
Income from operations		179,652		127,936		62,521		47,130		-		417,239
Interest expense, net		-		-		-		2,195		(83,805)		(81,610)
Other income		-		-		-		-		41		41
Loss on early extinguishment of debt		-		-		-		-		(884)		(884)
Income (loss) from continuing operations     before income taxes	$	179,652	$	127,936	$	62,521	$	49,325	$	(84,648)	$	334,786

Identifiable Assets
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
September 30, 2014	$	1,282,129	$	3,012,785	$	2,123,888	$	1,045,138	$	-	$	7,463,940
December 31, 2013	$	1,245,501	$	2,973,916	$	2,176,785	$	1,015,105	$	-	$	7,411,307

As of September 30, 2014, the Technical Solutions segment included $285.8 million of identifiable assets of the subsea construction and conventional decommissioning businesses that were classified as assets held for sale on the consolidated balance sheet.

Geographic Segments

The Company attributes revenue to various countries based on the location of where services are performed or the destination of the drilling products or equipment sold or leased.  Long-lived assets consist primarily of property, plant and equipment and are attributed to various countries based on the physical location of the asset at the end of a period.  As of September 30, 2014, the assets of the subsea construction and conventional decommissioning businesses were classified as assets held for sale on the consolidated balance sheet.  The Company’s revenue by geographic area for the three and nine months ended September 30, 2014 and 2013 and long-lived assets by geographic area as of September 30, 2014 and December 31, 2013 are as follows (in thousands):

Revenues:
	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
United States	$	1,024,919	$	932,686	$	2,850,179	$	2,783,756
Other Countries		184,107		163,726		527,817		490,657
Total	$	1,209,026	$	1,096,412	$	3,377,996	$	3,274,413
Long-Lived Assets:
					September 30, 2014		December 31, 2013
United States					$	2,343,365	$	2,476,792
Other Countries						359,167		525,402
Total, net					$	2,702,532	$	3,002,194