(2)Revenue

Adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers

Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The Company adopted this ASU using the modified retrospective adoption method. There was no impact on the condensed consolidated financial statements and no cumulative effect adjustment was recognized.

Revenue Recognition

Revenues are recognized when performance obligations are satisfied in accordance with contractual terms, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services rendered or rentals provided. Taxes collected from customers and remitted to governmental authorities and revenues are reported on a net basis in the Company’s financial statements.

Performance Obligations

A performance obligation arises under contracts with customers to render services or provide rentals, and is the unit of account under Topic 606. The Company accounts for services rendered and rentals provided separately if they are distinct and the service or rental is separately identifiable from other items provided to a customer and if a customer can benefit from the services rendered or rentals provided on its own or with other resources that are readily available to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. A contract’s standalone selling prices are determined based on the prices that the Company charges for its services rendered and rentals provided. The majority of the Company’s performance obligations are satisfied over time, which is generally represented by a period of 30 days or less. The Company’s payment terms vary by the type of products or services offered. The term between invoicing and when the payment is due is typically 30 days.

Services revenue primarily represents amounts charged to customers for the completion of services rendered, including labor, products and supplies necessary to perform the service. Rates for these services vary depending on the type of services provided and can be based on a per job, per hour or per day basis.

Rentals revenue is, primarily priced on a per day, per man hour or similar basis and consists of fees charged to customers for use of the Company’s rental equipment over the term of the rental period, which is generally less than twelve months.

The Company expenses sales commissions when incurred because the amortization period would have been one year or less.

Disaggregation of revenue

The following table presents the Company’s revenues by segment disaggregated by geography (in thousands):




	Three Months Ended June 30,				Six Months Ended June 30,
		2018		2017		2018		2017
U.S. land
Drilling Products and Services	$	43,394	$	27,770	$	84,111	$	48,932
Onshore Completion and Workover Services		276,242		249,079		507,731		454,058
Production Services		47,944		33,062		100,401		56,497
Technical Solutions		7,858		7,921		14,691		17,006
Total U.S. land	$	375,438	$	317,832	$	706,934	$	576,493

Gulf of Mexico
Drilling Products and Services	$	23,261	$	22,266	$	44,250	$	45,751
Onshore Completion and Workover Services		-		-		-		-
Production Services		13,634		19,937		31,134		37,683
Technical Solutions		35,333		42,030		72,895		75,747
Total Gulf of Mexico	$	72,228	$	84,233	$	148,279	$	159,181

International
Drilling Products and Services	$	27,378	$	18,791	$	50,874	$	42,575
Onshore Completion and Workover Services		-		-		-		-
Production Services		40,426		35,607		71,186		63,031
Technical Solutions		20,078		13,605		40,593		29,724
Total International	$	87,882	$	68,003	$	162,653	$	135,330
Total Revenues	$	535,548	$	470,068	$	1,017,866	$	871,004

The following table presents the Company’s revenues by segment disaggregated by type (in thousands):




	Three Months Ended June 30,				Six Months Ended June 30,
		2018		2017		2018		2017
Services
Drilling Products and Services	$	27,461	$	19,629	$	51,466	$	36,500
Onshore Completion and Workover Services		266,071		240,461		487,418		439,907
Production Services		93,678		82,575		188,292		145,857
Technical Solutions		59,602		61,466		119,404		116,317
Total services	$	446,812	$	404,131	$	846,580	$	738,581

Rentals
Drilling Products and Services	$	66,572	$	49,198	$	127,769	$	100,758
Onshore Completion and Workover Services		10,171		8,618		20,313		14,151
Production Services		8,326		6,031		14,429		11,354
Technical Solutions		3,667		2,090		8,775		6,160
Total rentals	$	88,736	$	65,937	$	171,286	$	132,423
Total Revenues	$	535,548	$	470,068	$	1,017,866	$	871,004