Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information [Abstract]

Segment Information

(11) Segment Information

Business Segments

During the fourth quarter of 2012, the Company revised the internal reporting structure that is used by the chief operating decision maker in determining how to allocate the Company’s resources and, as a result, divided the Subsea and Well Enhancement segment into three segments that better reflect the Company’s product and service offerings throughout the life cycle of a well: Onshore Completion and Workover Services, Production Services, and Subsea and Technical Solutions.  The Drilling Products and Services segment remains unchanged.  Accordingly, all prior period segment disclosures have been recast to reflect this change in reporting structure.

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 bolting 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. It also provides specialized pressure control tools used to manage and control pressure throughout the life of a well. The Subsea and Technical Solutions segment provides services typically requiring specialized engineering, manufacturing or project planning, including integrated subsea services and engineering services, well control services, 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.   

The accounting policies of the reportable segments are the same as those described in note 1 of these notes to the consolidated financial statements.  The Company evaluates the performance of its operating segments based on operating profits or losses.  Segment revenues reflect direct sales of products and services for that segment, and each segment records direct expenses related to its employees and its operations.  Identifiable assets are primarily those assets directly used in the operations of each segment.

Summarized financial information for the Company’s segments for the years ended December 31, 2012, 2011 and 2010 is shown in the following tables (in thousands): 

Year Ended December 31, 2012
		Onshore
	Drilling	Completion		Subsea and
	Products and	and Workover	Production	Technical		Consolidated
	Services	Services	Services	Solutions	Unallocated	Total
Revenues	$          775,066	$       1,593,977	$       1,510,990	$        688,035	$                     -	$       4,568,068
Cost of services
(exclusive of items shown separately below)	255,853	1,039,732	929,552	464,336	-	2,689,473
Depreciation, depletion, amortization and accretion	150,687	171,852	135,910	50,832	-	509,281
General and administrative expenses	131,798	185,917	211,293	133,784	-	662,792
Income from operations	236,728	196,476	234,235	39,083	-	706,522
Interest expense , net	-	-	-	-	(117,682)	(117,682)
Interest income	-	-	-	2,816	354	3,170
Other income	-	-	-	-	853	853
Loss on early extinguishment of debt	-	-	-	-	(2,294)	(2,294)
Earnings from equity-method
investments, net	-	-	-	-	(287)	(287)
Gain on sale of equity-method investment					17,880	17,880
Income (loss) from continuing operations
before income taxes	$          236,728	$          196,476	$          234,235	$          41,899	$        (101,176)	$          608,162

Year Ended December 31, 2011
		Onshore
	Drilling	Completion		Subsea and
	Products and	and Workover	Production	Technical		Consolidated
	Services	Services *	Services *	Solutions	Unallocated	Total
Revenues	$          611,101	$                     -	$          788,568	$          564,663	$                     -	$      1,964,332
Cost of services
(exclusive of items shown separately below)	220,647	-	443,381	382,381	-	1,046,409
Depreciation, depletion, amortization and accretion	130,809	-	66,825	47,281	-	244,915
General and administrative expenses	122,201	3,226	135,180	116,012	-	376,619
Income (loss) from operations	137,444	(3,226)	143,182	18,989	-	296,389
Interest expense , net	-	-	-	-	(72,994)	(72,994)
Interest income	-	-	-	4,542	1,684	6,226
Other income	-	-	-	105	(927)	(822)
Earnings from equity-method
investments, net	-	-	-	-	16,394	16,394
Income (loss) from continuing operations
before income taxes	$          137,444	$            (3,226)	$          143,182	$            23,636	$         (55,843)	$         245,193

* Includes segment’s pro rata share of $4.5 million of acquisition related expenses recorded in the year ended December 31, 2011. 

Year Ended December 31, 2010
	Drilling		Subsea and
	Products and	Production	Technical		Consolidated
	Services	Services	Solutions	Unallocated	Total
Revenues	$          474,707	$      560,606	$      527,730	$                     -	$      1,563,043
Cost of services
(exclusive of items shown separately below)	176,463	326,155	345,874	-	848,492
Depreciation, depletion, amortization and accretion	114,733	56,120	37,244	-	208,097
General and administrative expenses	108,845	113,738	110,019	-	332,602
Income from operations	74,666	64,593	34,593	-	173,852
Interest expense , net	-	-	-	(56,480)	(56,480)
Interest income	-	-	4,548	587	5,135
Other income	-	-	-	825	825
Earnings from equity-method
investments, net	-	-	-	8,245	8,245
Income (loss) from continuing operations
before income taxes	$            74,666	$        64,593	$        39,141	$         (46,823)	$         131,577

Identifiable Assets
		Onshore
	Drilling	Completion		Subsea and
	Products and	and Workover	Production	Technical			Consolidated
	Services	Services	Services	Solutions	Marine	Unallocated	Total
December 31, 2012	$     1,086,804	$      3,223,984	$     2,185,779	$     1,295,134	$                 -	$     11,185	$   7,802,886
December 31, 2011	$        947,679	$         560,246	$     1,140,724	$     1,162,580	$      164,444	$     72,472	$   4,048,145
December 31, 2010	$        802,785	$                     -	$        714,140	$     1,055,673	$      255,883	$     79,052	$   2,907,533

Capital Expenditures
		Onshore
	Drilling	Completion		Subsea and
	Products and	and Workover	Production	Technical		Consolidated
	Services	Services	Services	Solutions	Marine	Total
December 31, 2012	$          246,389	$       308,317	$      334,670	$       279,729	$                -	$     1,169,105
December 31, 2011	$          219,121	$                  -	$      173,562	$       112,504	$        2,514	$        507,701
December 31, 2010	$          142,942	$                  -	$        56,089	$         94,224	$      29,989	$        323,244

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 leased.  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			Long-Lived Assets
	2012	2011	2010	2012	2011
United States	$         3,769,528	$         1,438,138	$         1,134,938	$         2,684,932	$         1,060,483
Other Countries	798,540	526,194	428,105	570,288	446,885
Total	$         4,568,068	$         1,964,332	$         1,563,043	$         3,255,220	$         1,507,368