Revenue

3 Months Ended

Mar. 31, 2020

(2)Revenue

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, rentals provided and products sold. 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, provide rentals or sell products, and is the unit of account under Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (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, rentals provided, and products sold. 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: 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.

Product Sales Revenue: products are generally sold based upon purchase orders or contracts with the Company’s customers that include fixed or determinable prices but do not include right of return provisions or other significant post-delivery obligations. The Company recognizes revenue from product sales when title passes to the customer, the customer assumes risks and rewards of ownership, collectability is reasonably assured and delivery occurs as directed by the customer.

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 March 31,
		2020		2019
U.S. land
Drilling Products and Services	$	36,656	$	48,217
Onshore Completion and Workover Services		61,218		103,136
Production Services		30,667		40,666
Technical Solutions		6,137		11,920
Total U.S. land	$	134,678	$	203,939

U.S. offshore
Drilling Products and Services	$	37,224	$	29,067
Onshore Completion and Workover Services		-		-
Production Services		11,299		19,272
Technical Solutions		31,533		20,933
Total U.S. offshore	$	80,056	$	69,272

International
Drilling Products and Services	$	30,113	$	23,795
Onshore Completion and Workover Services		-		-
Production Services		59,538		43,512
Technical Solutions		17,112		24,756
Total International	$	106,763	$	92,063
Total Revenues	$	321,497	$	365,274

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



	Three Months Ended March 31,
		2020		2019
Services
Drilling Products and Services	$	14,576	$	18,959
Onshore Completion and Workover Services		54,104		92,516
Production Services		82,794		87,994
Technical Solutions		28,762		39,805
Total services	$	180,236	$	239,274

Rentals
Drilling Products and Services	$	77,829	$	69,958
Onshore Completion and Workover Services		7,114		10,620
Production Services		8,788		8,602
Technical Solutions		6,374		1,856
Total rentals	$	100,105	$	91,036

Product Sales
Drilling Products and Services	$	11,588	$	12,162
Onshore Completion and Workover Services		-		-
Production Services		9,922		6,854
Technical Solutions		19,646		15,948
Total product sales	$	41,156	$	34,964
Total Revenues	$	321,497	$	365,274