Annual report pursuant to Section 13 and 15(d)

Reportable Segments

v2.4.0.8
Reportable Segments
 12 Months Ended
Dec. 31, 2013
Segment Reporting [Abstract]  
Reportable Segments
Reportable Segments
Our business is comprised of five segments: (1) Rental Tools, (2) U.S. Barge Drilling, (3) U.S. Drilling, (4) International Drilling, and (5) Technical Services. Historically, we reported a sixth segment, Construction Contract, for which there was no activity during the nine months ended September 30, 2013 or the year ended December 31, 2012. As a result of activity in the fourth quarter of 2013, this segment has been included in this report. We eliminate inter-segment revenue and expenses. The following table represents the results of operations by reportable segment:
 
Year Ended December 31,
Operations by Reportable Industry Segment:
2013
 
2012
 
2011
 
(Dollars in Thousands)
Revenues:
 
 
 
 
 
Rental Tools(1)
$
310,041

 
$
246,900

 
$
237,068

U.S. Barge Drilling(1)
136,855

 
123,672

 
93,763

U.S. Drilling(1)
66,928

 
1,387

 
—

International Drilling(1)
333,962

 
291,772

 
318,481

Technical Services(1)
26,386

 
14,030

 
27,284

Construction Contract(1)
—

 
—

 
9,638

Total revenues
874,172

 
677,761

 
686,234

Operating income:
 
 
 
 
 
Rental Tools(2)
91,164

 
113,899

 
120,822

U.S. Barge Drilling(2)
51,257

 
39,608

 
11,115

U.S. Drilling(2)
(4,484
)
 
(15,168
)
 
(3,915
)
International Drilling(2)
23,732

 
13,138

 
22,948

Technical Services(2)
2,050

 
79

 
5,680

Construction Contract(2)
4,728

 
—

 
771

Total operating gross margin
168,447

 
151,556

 
157,421

General and administrative expense
(68,025
)
 
(46,257
)
 
(31,567
)
Impairments and other charges
—

 
—

 
(170,000
)
Provision for reduction in carrying value of certain assets
(2,544
)
 
—

 
(1,350
)
Gain on disposition of assets, net
3,994

 
1,974

 
3,659

Total operating income (loss)
101,872

 
107,273

 
(41,837
)
Interest expense
(47,820
)
 
(33,542
)
 
(22,594
)
Interest income
2,450

 
153

 
256

Loss on extinguishment of debt
(5,218
)
 
(2,130
)
 
—

Changes in fair value of derivative positions
53

 
55

 
(110
)
Other
1,450

 
(832
)
 
(1,127
)
Income (loss) from continuing operations before income taxes
$
52,787

 
$
70,977

 
$
(65,412
)
  
2013
 
2012
 
 
Identifiable assets:
 
 
 
 
 
Rental Tools
$
350,429

 
$
194,600

 
 
U.S. Barge Drilling
89,884

 
99,409

 
 
U.S. Drilling
354,208

 
369,683

 
 
International Drilling
460,461

 
414,546

 
 
Total identifiable assets
1,254,982

 
1,078,238

 
 
Corporate and other assets(3)
279,774

 
177,495

 
 
Total assets
$
1,534,756

 
$
1,255,733

 
 
1)
In 2013, our largest customer, Exxon Neftegas Limited (ENL), constituted approximately 15.6 percent, respectively, of our total consolidated revenues and approximately 38.3 percent of our International Drilling segment and 33.9 percent of our Technical Services segment. In 2012, our two largest customers, ENL and Schlumberger, constituted approximately 12 percent and 10 percent, respectively, of our total consolidated revenues and approximately 27 percent and 24 percent of our International Drilling segment, respectively. In 2011, our largest customer, ENL constituted approximately 16 percent of our total revenues and approximately 34 percent of our International Drilling segment.
2)
Operating income is calculated as revenues less direct operating expenses, including depreciation and amortization expense.
3)
This category includes corporate assets as well as minimal assets for our Technical Services segment primarily related to office furniture and fixtures.
 
Year Ended December 31,
Operations by Reportable Industry Segment:
2013
 
2012
 
2011
 
(Dollars in Thousands)
Capital expenditures:
 
 
 
 
 
Rental Tools
$
76,928

 
$
61,958

 
$
61,702

U.S. Barge Drilling
23,694

 
8,808

 
7,339

U.S. Drilling
1,809

 
86,786

 
99,915

International Drilling
39,115

 
15,240

 
15,011

Corporate
14,099

 
18,751

 
6,432

Total capital expenditures
$
155,645

 
$
191,543

 
$
190,399

Depreciation and amortization:
 
 
 
 
 
Rental Tools
54,625

 
42,944

 
40,497

U.S. Barge Drilling
13,796

 
13,906

 
17,006

U.S. Drilling
16,120

 
7,011

 
2,223

International Drilling
46,022

 
45,967

 
48,965

Corporate and other (1)
3,490

 
3,189

 
3,445

Total depreciation and amortization
$
134,053

 
$
113,017

 
$
112,136

1)
This category includes depreciation of corporate assets as well as minimal depreciation for our Technical Services segment primarily related to office furniture and fixtures.

 
Year Ended December 31,
Operations by Geographic Area:
2013
 
2012
 
2011
 
(Dollars in Thousands)
Revenues:
 
 
 
 
 
Africa and Middle East
$
58,416

 
$
26,528

 
$
6,774

Asia Pacific
170,165

 
117,392

 
147,643

CIS
55,165

 
44,312

 
67,255

Europe
16,788

 
—

 
—

Latin America
120,261

 
103,540

 
96,810

United States
453,377

 
385,989

 
367,752

Total revenues
874,172

 
677,761

 
686,234

Operating gross margin:
 
 
 
 
 
Africa and Middle East(1)
(383
)
 
(2,027
)
 
(8,724
)
Asia Pacific(1)
21,995

 
16,550

 
23,528

CIS(1)
11,888

 
(9,580
)
 
8,709

Europe(1)
274

 
—

 
—

Latin America(1)
1,140

 
9,581

 
1,126

United States(1)
133,533

 
137,032

 
132,782

Total operating gross margin
168,447

 
151,556

 
157,421

General and administrative expense
(68,025
)
 
(46,257
)
 
(31,567
)
Impairments and other charges
—

 
—

 
(170,000
)
Provision for reduction in carrying value of certain assets
(2,544
)
 
—

 
(1,350
)
Gain on disposition of assets, net
3,994

 
1,974

 
3,659

Total operating income (loss)
101,872

 
107,273

 
(41,837
)
Interest expense
(47,820
)
 
(33,542
)
 
(22,594
)
Interest income
2,450

 
153

 
256

Loss on extinguishment of debt
(5,218
)
 
(2,130
)
 
—

Changes in fair value of derivative positions
53

 
55

 
(110
)
Other
1,450

 
(832
)
 
(1,127
)
Income (loss) from continuing operations before income taxes
$
52,787

 
$
70,977

 
$
(65,412
)
Long-lived assets:(2)
 
 
 
 
 
Africa and Middle East
$
110,336

 
$
25,032

 
 
Asia Pacific
44,606

 
18,688

 
 
CIS
55,722

 
110,848

 
 
Europe
82,473

 
—

 
 
Latin America
15,198

 
63,899

 
 
United States
563,021

 
574,730

 
 
Total long-lived assets
$
871,356

 
$
793,197

 
 
1)
Operating income is calculated as revenues less direct operating expenses, including depreciation and amortization expense.
2)
Long-lived assets primarily consist of property, plant and equipment, net and exclude assets held for sale, if any.