Segment Information

12 Months Ended

Dec. 31, 2015

Segment Information [Abstract]

Segment Information

(9) 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 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. The Technical Solutions segment provides services typically requiring specialized engineering, manufacturing or project planning, including 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 2015, 2014 and 2013, operating results for the Company’s subsea construction and conventional decommissioning businesses are reported in discontinued operations (see note 4).  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, depletion, amortization and accretion expense, reduction in value of assets 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 is as follows (in thousands): 

2015
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
Revenues	$	583,139	$	934,274	$	759,606	$	497,546	$	-	$	2,774,565
Cost of services and rentals
(exclusive of items shown separately below)		196,921		773,119		594,286		301,486		-		1,865,812
Depreciation, depletion, amortization     and accretion		194,061		225,667		130,267		62,152		-		612,147
General and administrative expenses		127,525		121,289		139,304		122,590		-		510,708
Reduction in value of assets		40,237		783,229		790,517		124,904		-		1,738,887
Income (loss) from operations		24,395		(969,030)		(894,768)		(113,586)		-		(1,952,989)
Interest expense, net		-		-		(2,013)		1,707		(97,012)		(97,318)
Other expense		-		-		-		-		(9,476)		(9,476)
Income (loss) from continuing operations     before income taxes	$	24,395	$	(969,030)	$	(896,781)	$	(111,879)	$	(106,488)	$	(2,059,783)

2014
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
Revenues	$	904,358	$	1,732,833	$	1,350,956	$	568,475	$	-	$	4,556,622
Cost of services and rentals
(exclusive of items shown separately below)		282,023		1,205,443		941,030		306,337		-		2,734,833
Depreciation, depletion, amortization     and accretion		186,642		233,430		164,672		66,070		-		650,814
General and administrative expenses		149,967		159,687		187,526		127,191		-		624,371
Income from operations		285,726		134,273		57,728		68,877		-		546,604
Interest expense, net		-		-		-		1,577		(98,311)		(96,734)
Other expense		-		-		-		-		(7,681)		(7,681)
Income (loss) from continuing operations     before income taxes	$	285,726	$	134,273	$	57,728	$	70,454	$	(105,992)	$	442,189

2013
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
Revenues	$	820,538	$	1,607,268	$	1,434,990	$	487,261	$	-	$	4,350,057
Cost of services and rentals
(exclusive of items shown separately below)		268,127		1,091,956		1,002,628		270,879		-		2,633,590
Depreciation, depletion, amortization     and accretion		168,391		216,152		177,532		42,366		-		604,441
General and administrative expenses		136,244		158,448		190,647		112,439		-		597,778
Reduction in value of assets		2,292		16,975		28,568		252,243		-		300,078
Income (loss) from operations		245,484		123,737		35,615		(190,666)		-		214,170
Interest expense, net		-		-		-		1,323		(109,225)		(107,902)
Other income (expense)		-		-		-		836		(6,347)		(5,511)
Income (loss) from continuing operations     before income taxes	$	245,484	$	123,737	$	35,615	$	(188,507)	$	(115,572)	$	100,757

Identifiable Assets
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical				Consolidated
	Services		Services		Services		Solutions		Unallocated		Total
December 31, 2015	$	1,223,191	$	1,929,185	$	967,719	$	794,149	$	-	$	4,914,244
December 31, 2014	$	1,284,842	$	2,993,824	$	2,098,592	$	940,524	$	-	$	7,317,782
December 31, 2013	$	1,237,842	$	2,961,390	$	2,158,653	$	1,009,058	$	-	$	7,366,943

As of December 31, 2015 and 2014, the Technical Solutions segment included $95.2 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.

Capital Expenditures
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Consolidated
	Services		Services		Services		Solutions		Total
December 31, 2015	$	129,504	$	103,001	$	72,048	$	53,673	$	358,226
December 31, 2014	$	274,752	$	152,742	$	88,870	$	99,738	$	616,102
December 31, 2013	$	246,479	$	101,854	$	122,946	$	137,681	$	608,960

Geographic Segments

The Company attributes revenue to various countries based on the location 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 December 31, 2015 and 2014, the assets of the subsea construction and conventional decommissioning businesses were classified as assets held for sale on the consolidated balance sheets.  The Company’s revenue attributed to the U.S. and to other countries and the value of its long-lived assets by those locations is as follows (in thousands): 

Revenues
	Years Ended December 31,
	2015		2014		2013
United States	$	2,185,071	$	3,848,929	$	3,674,825
Other Countries		589,494		707,693		675,232
Total	$	2,774,565	$	4,556,622	$	4,350,057
Long-Lived Assets
			December 31,
			2015		2014
United States			$	1,799,418	$	2,416,306
Other Countries				323,873		317,533
Total, net			$	2,123,291	$	2,733,839