Segment Information

6 Months Ended

Jun. 30, 2015

Segment Information [Abstract]

Segment Information

(10)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 six months ended June 30, 2015 and 2014, operating results for the Company’s subsea construction and conventional decommissioning businesses are reported in discontinued operations (see note 3).  Previously those operating results were reported within the 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 six months ended June 30, 2015 and 2014 is shown in the following tables (in thousands): 

Three Months Ended June 30, 2015
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
Revenues	$	148,670	$	226,363	$	208,744	$	127,007	$	-	$	710,784
Cost of services and rentals
(exclusive of items shown separately below)		48,784		182,143		156,615		77,991		-		465,533
Depreciation, depletion, amortization     and accretion		49,729		55,479		36,671		16,473		-		158,352
General and administrative expenses		31,129		33,031		36,435		29,066		-		129,661
Reduction in value of assets		15,797		40,263		751,577		-		-		807,637
Income (loss) from operations		3,231		(84,553)		(772,554)		3,477		-		(850,399)
Interest expense, net		-		-		(369)		424		(25,437)		(25,382)
Other expense		-		-		-		-		(6,524)		(6,524)
Income (loss) from continuing operations     before income taxes	$	3,231	$	(84,553)	$	(772,923)	$	3,901	$	(31,961)	$	(882,305)

Three Months Ended June 30, 2014
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
Revenues	$	225,982	$	398,048	$	343,876	$	139,646	$	-	$	1,107,552
Cost of services and rentals
(exclusive of items shown separately below)		72,737		274,907		231,119		71,530		-		650,293
Depreciation, depletion, amortization     and accretion		47,344		55,382		40,180		18,059		-		160,965
General and administrative expenses		38,953		36,011		45,243		26,646		-		146,853
Income from operations		66,948		31,748		27,334		23,411		-		149,441
Interest expense, net		-		-		-		398		(24,958)		(24,560)
Other expense		-		-		-		-		606		606
Income (loss) from continuing operations     before income taxes	$	66,948	$	31,748	$	27,334	$	23,809	$	(24,352)	$	125,487

Six Months Ended June 30, 2015
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
Revenues	$	348,129	$	577,355	$	460,213	$	242,322	$	-	$	1,628,019
Cost of services and rentals
(exclusive of items shown separately below)		112,035		436,258		347,929		151,557		-		1,047,779
Depreciation, depletion, amortization     and accretion		98,813		115,290		75,831		30,638		-		320,572
General and administrative expenses		71,089		71,323		80,117		58,094		-		280,623
Reduction in value of assets		15,797		40,263		751,577		-		-		807,637
Income (loss) from operations		50,395		(85,779)		(795,241)		2,033		-		(828,592)
Interest expense, net		-		-		(134)		841		(49,298)		(48,591)
Other expense		-		-		-		-		(7,495)		(7,495)
Income (loss) from continuing operations     before income taxes	$	50,395	$	(85,779)	$	(795,375)	$	2,874	$	(56,793)	$	(884,678)

Six Months Ended June 30, 2014
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
Revenues	$	446,192	$	787,925	$	665,111	$	269,742	$	-	$	2,168,970
Cost of services and rentals
(exclusive of items shown separately below)		139,889		559,142		458,344		144,523		-		1,301,898
Depreciation, depletion, amortization     and accretion		92,361		115,986		81,988		32,948		-		323,283
General and administrative expenses		80,113		74,979		92,431		55,249		-		302,772
Income from operations		133,829		37,818		32,348		37,022		-		241,017
Interest expense, net		-		-		-		763		(49,204)		(48,441)
Other income (expense)		-		-		-		-		571		571
Income (loss) from continuing operations     before income taxes	$	133,829	$	37,818	$	32,348	$	37,785	$	(48,633)	$	193,147

Identifiable Assets
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
June 30, 2015	$	1,343,080	$	2,785,323	$	1,160,351	$	926,833	$	-	$	6,215,587
December 31, 2014	$	1,304,110	$	3,010,295	$	2,116,171	$	946,813	$	-	$	7,377,389

As of June 30, 2015 and December 31, 2014, the Technical Solutions segment included $131.6 million and $116.7 million, respectively, of identifiable assets of the subsea construction and conventional decommissioning businesses that were classified as assets held for sale on the consolidated balance sheets. 

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 rented.  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 June 30, 2015 and December 31, 2014, the assets of the subsea construction and conventional decommissioning businesses are classified as assets held for sale on the consolidated balance sheets.  The Company’s revenue by geographic area for the three and six months ended June 30, 2015 and 2014 and long-lived assets by geographic area as of June 30, 2015 and December 31, 2014 are as follows (in thousands):

Revenues
	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
United States	$	541,337	$	932,941	$	1,301,780	$	1,825,260
Other Countries		169,447		174,611		326,239		343,710
Total	$	710,784	$	1,107,552	$	1,628,019	$	2,168,970
Long-Lived Assets
					June 30, 2015		December 31, 2014
United States					$	2,114,080	$	2,416,306
Other Countries						347,549		317,533
Total, net					$	2,461,629	$	2,733,839