Segment Information

12 Months Ended

Dec. 31, 2021

Segment Information [Abstract]

Segment Information

(11) Segment Information

In connection with our Transformation Project, our reportable segments were changed to Rentals and Well Services. We have recast historical amounts below and in Note 4 - Revenue in connection with this change.

Business Segments

The products and service offerings of Rentals are comprised of value-added engineering and design services, rental of premium drill strings, tubing, landing strings, completion tubulars and handling accessories, manufacturing and rental of bottom hole assemblies, and rentals of accommodation units.

The products and service offerings of Well Services are comprised of risk management, well control and training solutions, hydraulic workover and snubbing services, engineering and manufacturing of premium sand control tools, and onshore international production services. The Well Services segment also includes the operations of our offshore oil and gas property.

We evaluate the performance of our reportable segments based on income or loss from operations. The segment measure is calculated as segment revenues less segment operating expenses, including general and administrative expenses, depreciation, depletion, amortization and accretion expense and reduction in value of assets. We use this segment measure to evaluate our reportable segments as it is the measure that is most consistent with how we organize and manage our business operations. Corporate and other costs primarily include expenses related to support functions, including salaries and benefits for corporate employees.

Summarized financial information for our segments is as follows (in thousands):

For the Period February 3, 2021 through December 31, 2021 (Successor)				Well			Corporate and			Consolidated
	Rentals			Services			Other			Total
Revenues	$	268,695		$	380,059		$	-		$	648,754
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		105,373			316,879			-			422,252
Depreciation, depletion, amortization and accretion		152,250			61,074			6,535			219,859
General and administrative expenses		24,812			46,780			45,983			117,575
Restructuring expenses		-			-			22,952			22,952
Other expenses		3,609			13,117			-			16,726
Income (loss) from operations		(17,349	)		(57,791	)		(75,470	)		(150,610	)
Interest income (expense), net		(7	)		3,930			(1,592	)		2,331
Other income (expense)		1,280			(14,407	)		5,999			(7,128	)
Income (loss) from continuing operations before income taxes	$	(16,076	)	$	(68,268	)	$	(71,063	)	$	(155,407	)

For the Period January 1, 2021 through February 2, 2021 (Predecessor)				Well			Corporate and			Consolidated
	Rentals			Services			Other			Total
Revenues	$	18,339		$	27,589		$	-		$	45,928
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		7,839			21,934			-			29,773
Depreciation, depletion, amortization and accretion		4,271			3,666			421			8,358
General and administrative expenses		2,027			4,111			4,914			11,052
Restructuring expenses		-			-			1,270			1,270
Income (loss) from operations		4,202			(2,122	)		(6,605	)		(4,525	)
Interest income (expense), net		10			356			(164	)		202
Reorganization items, net		(2,037	)		31,816			305,781			335,560
Other income (expense)		(399	)		(165	)		(1,541	)		(2,105	)
Income (loss) from continuing operations before income taxes	$	1,776		$	29,885		$	297,471		$	329,132

For the year ended December 31, 2020 (Predecessor)
			Well			Corporate and			Consolidated
	Rentals		Services			Other			Total
Revenues	$	297,835	$	369,414		$	-		$	667,249
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		109,902		298,229			-			408,131
Depreciation, depletion, amortization and accretion		63,072		48,929			3,770			115,771
General and administrative expenses		52,718		73,200			79,855			205,773
Restructuring expenses		-		-			47,055			47,055
Reduction in value of assets		754		21,038			1,983			23,775
Income (loss) from operations		71,389		(71,982	)		(132,663	)		(133,256	)
Interest income (expense), net		-		4,539			(96,965	)		(92,426	)
Reorganization expenses		-		-			(19,520	)		(19,520	)
Other income		-		-			(9,229	)		(9,229	)
Income (loss) from continuing operations before income taxes	$	71,389	$	(67,443	)	$	(258,377	)	$	(254,431	)

For the year ended December 31, 2019 (Predecessor)
			Well			Corporate and			Consolidated
	Rentals		Services			Other			Total
Revenues	$	430,442	$	541,610		$	-		$	972,052
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		168,608		389,657			-			558,265
Depreciation, depletion, amortization and accretion		86,395		55,670			4,726			146,791
General and administrative expenses		61,829		89,272			93,302			244,403
Reduction in value of assets		-		9,293			-			9,293
Income (loss) from operations		113,610		(2,282	)		(98,028	)		13,300
Interest income (expense), net		-		4,172			(102,511	)		(98,339	)
Reorganization expenses		-		-			-			-
Other income		-		-			(2,484	)		(2,484	)
Income (loss) from continuing operations before income taxes	$	113,610	$	1,890		$	(203,023	)	$	(87,523	)

Identifiable Assets

			Well		Corporate		Consolidated
	Rentals		Services		and Other		Total
December 31, 2021 (Successor)	$	365,358	$	715,738	$	118,412	$	1,199,508
December 31, 2020 (Predecessor)		572,776		554,178		374,125		1,501,079

At December 31, 2021 and 2020, the Corporate and Other segment included $37.5 million and $242.1 million of identifiable assets relating to assets held for sale. For further discussion see Note 14 - Discontinued Operations.

Capital Expenditures

			Well		Corporate		Consolidated
	Rentals		Services		and Other		Total
For the period from February 3, 2021 through December 31, 2021 (Successor)	$	27,335	$	6,817	$	-	$	34,152
For the period from January 1, 2021 through February 2, 2021 (Predecessor)		2,429		606		-		3,035
December 31, 2020 (Predecessor)		24,053		19,609		3,991		47,653
December 31, 2019 (Predecessor)		63,252		28,386		12,084		103,722

Geographic Information

We operate in the U.S. and in various other countries throughout the world. Our international operations are primarily focused in Latin America, Asia-Pacific and the Middle East and North Africa regions. We attribute 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.

Revenues

	Successor		Predecessor
					Year ended December 31,
	For the Period February 3, 2021 through December 31, 2021		For the Period January 1, 2021 through February 2, 2021		2020		2019
United States	$	304,623	$	23,863	$	339,041	$	585,553
Other countries		344,131		22,065		328,208		386,499
Total	$	648,754	$	45,928	$	667,249	$	972,052

Long-Lived Assets

	Successor		Predecessor
	December 31, 2021		December 31, 2020
United States	$	231,388	$	253,114
Other countries		124,886		154,993
Total	$	356,274	$	408,107