Segment Information

12 Months Ended

Dec. 31, 2019

(8) 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 fluid handling services and 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 the production and sale of oil and gas.

For the years ended December 31, 2019, 2018 and 2017, operating results of Pumpco are reported in discontinued operations (see note 12). Previously those operating results were reported within the Onshore Completion and Workover Services segment.

The Company evaluates the performance of its reportable segments based on income or loss from operations excluding allocated corporate expenses. The segment measure is calculated as follows: segment revenues less segment operating expenses, depreciation, depletion, amortization and accretion expense and reduction in value of assets. The Company uses this segment measure to evaluate its reportable segments because it is the measure that is most consistent with how the Company organizes and manages its business operations. Corporate and other costs primarily include expenses related to support functions, salaries and benefits for corporate employees and stock-based compensation expense.

Summarized financial information for the Company’s segments is as follows (in thousands):



2019

			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	411,573	$	341,297	$	405,830	$	266,669	$	-	$	1,425,369
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion		154,503		274,162		328,527		167,890		-		925,082
Depreciation, depletion, amortization
and accretion		83,999		33,699		51,370		22,665		4,726		196,459
General and administrative expenses		60,094		25,621		29,622		59,587		93,302		268,226
Reduction in value of assets		-		8,122		2,055		7,008		-		17,185
Income (loss) from operations		112,977		(307)		(5,744)		9,519		(98,028)		18,417
Interest income (expense), net		-		-		-		4,172		(102,484)		(98,312)
Other income		-		-		-		-		(2,484)		(2,484)
Income (loss) from continuing operations
before income taxes	$	112,977	$	(307)	$	(5,744)	$	13,691	$	(202,996)	$	(82,379)



2018

			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	383,719	$	406,248	$	418,525	$	270,365	$	-	$	1,478,857
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion		148,019		315,291		342,420		164,758		-		970,488
Depreciation, depletion, amortization
and accretion		112,111		68,183		66,993		25,653		5,499		278,439
General and administrative expenses		53,688		24,386		41,499		57,600		99,295		276,468
Reduction in value of assets		-		227,801		92,252				2,660		322,713
Income (loss) from operations		69,901		(229,413)		(124,639)		22,354		(107,454)		(369,251)
Interest income (expense), net		-		-		-		3,915		(103,392)		(99,477)
Other expense		-		-		-		-		(1,678)		(1,678)
Income (loss) from continuing operations
before income taxes	$	69,901	$	(229,413)	$	(124,639)	$	26,269	$	(212,524)	$	(470,406)



2017

			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	293,690	$	366,636	$	372,781	$	272,422	$	-	$	1,305,529
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion		128,381		282,695		303,256		175,477		-		889,809
Depreciation, depletion, amortization
and accretion		131,394		81,238		78,999		29,506		5,719		326,856
General and administrative expenses		51,265		34,856		48,655		51,679		99,142		285,597
Reduction in value of assets		1,356		919		-		8,115		-		10,390
Income (loss) from operations		(18,706)		(33,072)		(58,129)		7,645		(104,861)		(207,123)
Interest income (expense), net		-		-		-		3,567		(105,022)		(101,455)
Other expense		-		-		-		-		(3,299)		(3,299)
Income (loss) from continuing operations
before income taxes	$	(18,706)	$	(33,072)	$	(58,129)	$	11,212	$	(213,182)	$	(311,877)



Identifiable Assets
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
December 31, 2019	$	659,621	$	467,697	$	421,848	$	377,627	$	66,437	$	1,993,230
December 31, 2018	$	587,264	$	808,037	$	434,430	$	340,161	$	46,070	$	2,215,962
December 31, 2017	$	662,968	$	1,501,214	$	512,256	$	377,549	$	56,238	$	3,110,225

At December 31, 2019, the Onshore Completion and Workover Services segment included $216.2 million of identifiable assets relating to Pumpco that were classified as assets held for sale on the consolidated balance sheet, see note 12.

During 2019, the Company sold its drilling rig service line, which was previously included in the Onshore Completion and Workover Services segment. This service line included twelve active U.S. land based drilling rigs and associated equipment with a carrying value of $66.2 million. The Company received $78.0 million in cash proceeds and recognized a $0.2 million loss on sale of assets. In addition, the Company recorded a $7.5 million impairment of the intangibles associated with the disposed assets.



Capital Expenditures
			Onshore
	Drilling		Completion
	Products and		and Workover			Production		Technical		Corporate and		Consolidated
	Services		Services		(1)	Services		Solutions		Other		Total
December 31, 2019	$	63,252	$	5,830		$	17,009	$	11,377	$	6,254	$	103,722
December 31, 2018	$	46,649	$	39,699		$	8,651	$	16,221	$	2,056	$	113,276
December 31, 2017	$	27,219	$	15,871		$	7,860	$	13,296	$	1,143	$	65,389

(1)Excludes capital expenditures related to Pumpco of $36.7 million, $108.1 million and $99.5 million for the years ended December 31, 2019, 2018 and 2017, respectively.

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. 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,
	2019		2018		2017
United States	$	1,038,870	$	1,137,070	$	997,713
Other countries		386,499		341,787		307,816
Total	$	1,425,369	$	1,478,857	$	1,305,529

Long-Lived Assets

	December 31,
	2019		2018
United States	$	489,189	$	903,520
Other countries		175,760		205,606
Total	$	664,949	$	1,109,126