| Results of Operations by Reportable Segment |
The following table represents the results of operations by reportable segment:
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Year Ended December 31, |
Dollars in thousands |
2014 |
|
2013 |
|
2012 |
Revenues: |
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U.S. (Lower 48) Drilling(1)
|
$ |
158,405 |
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|
$ |
153,624 |
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$ |
123,672 |
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International & Alaska Drilling(1)
|
462,513 |
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|
410,507 |
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|
307,189 |
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Rental Tools(1)
|
347,766 |
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|
310,041 |
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|
246,900 |
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Total revenues |
968,684 |
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|
874,172 |
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|
677,761 |
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Operating income: |
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U.S. (Lower 48) Drilling(2)
|
46,831 |
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|
54,203 |
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|
37,717 |
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International & Alaska Drilling(2)
|
34,405 |
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|
23,080 |
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(60 |
) |
Rental Tools(2)
|
72,946 |
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|
91,164 |
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|
113,899 |
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Total operating gross margin |
154,182 |
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|
168,447 |
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|
151,556 |
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General and administrative expense |
(35,016 |
) |
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(68,025 |
) |
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(46,257 |
) |
Provision for reduction in carrying value of certain assets |
— |
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(2,544 |
) |
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— |
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Gain on disposition of assets, net |
1,054 |
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|
3,994 |
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|
1,974 |
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Total operating income |
120,220 |
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|
101,872 |
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|
107,273 |
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Interest expense |
(44,265 |
) |
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(47,820 |
) |
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(33,542 |
) |
Interest income |
195 |
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|
2,450 |
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|
153 |
|
Loss on extinguishment of debt |
(30,152 |
) |
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(5,218 |
) |
|
(2,130 |
) |
Changes in fair value of derivative positions |
— |
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|
53 |
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|
55 |
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Other income (loss) |
2,539 |
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|
1,450 |
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(832 |
) |
Income from continuing operations before income taxes |
$ |
48,537 |
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$ |
52,787 |
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$ |
70,977 |
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1) |
In 2014, our largest customer, Exxon Neftegas Limited (ENL), constituted approximately 18.7 percent of our total consolidated revenues and approximately 39.2 percent of our International & Alaska Drilling segment. In 2013, our largest customer, ENL, constituted approximately 15.6 percent of our total consolidated revenues and approximately 33.3 percent of our International & Alaska Drilling segment. In 2012, our two largest customers, ENL and Schlumberger, constituted approximately 12.0 percent and 10.0 percent, respectively, of our total consolidated revenues and approximately 26.0 percent and 23.0 percent of our International & Alaska Drilling segment, respectively.
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2) |
Operating income is calculated as revenues less direct operating expenses, including depreciation and amortization expense. |
The following table represents capital expenditures and depreciation and amortization by reportable segment:
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Year Ended December 31, |
Dollars in thousands |
2014 |
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2013 |
|
2012 |
Capital expenditures: |
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U.S. (Lower 48) Drilling |
$ |
43,120 |
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$ |
23,796 |
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$ |
8,808 |
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International & Alaska Drilling |
26,761 |
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|
40,822 |
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|
102,026 |
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Rental Tools |
95,340 |
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|
76,928 |
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61,958 |
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Corporate |
14,292 |
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|
14,099 |
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|
18,751 |
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Total capital expenditures |
$ |
179,513 |
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$ |
155,645 |
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$ |
191,543 |
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Depreciation and amortization (1):
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U.S. (Lower 48) Drilling |
$ |
21,260 |
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$ |
15,212 |
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$ |
16,363 |
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International & Alaska Drilling |
59,684 |
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|
62,988 |
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|
52,537 |
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Rental Tools |
64,177 |
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|
55,853 |
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|
44,117 |
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Total depreciation and amortization |
$ |
145,121 |
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$ |
134,053 |
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$ |
113,017 |
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1) |
For presentation purposes, depreciation for corporate assets of $5.0 million, $3.5 million, and $3.2 million for the years ended December 31, 2014, 2013, and 2012, respectively, has been allocated to the above reportable segments.
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The following table represents identifiable assets by reportable segment:
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Year Ended December 31, |
Dollars in Thousands |
2014 |
|
2013 |
Identifiable assets: |
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U.S. (Lower 48) Drilling |
$ |
124,701 |
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$ |
111,586 |
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International & Alaska Drilling |
764,794 |
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|
802,870 |
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Rental Tools |
444,195 |
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|
350,429 |
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Total identifiable assets |
1,333,690 |
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|
1,264,885 |
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Corporate and other assets(1)
|
186,969 |
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|
269,871 |
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Total assets |
$ |
1,520,659 |
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$ |
1,534,756 |
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1) |
This category includes corporate assets and previously included minimal assets for our historical technical services segment primarily related to office furniture and fixtures. The assets related to technical services have been reclassified into the segment benefiting from the support service activities. |
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| Operations by Geographical Area |
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Year Ended December 31, |
Operations by Geographic Area: |
2014 |
|
2013 |
|
2012 |
Dollars in Thousands |
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Revenues: |
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Africa and Middle East |
$ |
128,214 |
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$ |
58,416 |
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$ |
26,528 |
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Asia Pacific |
187,799 |
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|
170,165 |
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|
117,392 |
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CIS |
61,849 |
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|
55,165 |
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|
44,312 |
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Europe |
20,296 |
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|
16,788 |
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|
— |
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Latin America |
86,651 |
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|
120,261 |
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|
103,540 |
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United States |
483,875 |
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|
453,377 |
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|
385,989 |
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Total revenues |
968,684 |
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|
874,172 |
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|
677,761 |
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Operating gross margin: |
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Africa and Middle East(1)
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(16,973 |
) |
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(383 |
) |
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(2,027 |
) |
Asia Pacific(1)
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29,769 |
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|
21,995 |
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|
16,550 |
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CIS(1)
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19,534 |
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|
11,888 |
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(9,580 |
) |
Europe(1)
|
11,534 |
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|
274 |
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|
— |
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Latin America(1)
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(9,914 |
) |
|
1,140 |
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|
9,581 |
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United States(1)
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120,232 |
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|
133,533 |
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|
137,032 |
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Total operating gross margin |
154,182 |
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168,447 |
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|
151,556 |
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Long-lived assets:(2)
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Africa and Middle East |
$ |
115,713 |
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$ |
110,336 |
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Asia Pacific |
43,252 |
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|
44,606 |
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CIS |
49,951 |
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55,722 |
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Europe |
20,140 |
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82,473 |
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Latin America |
77,136 |
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15,198 |
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United States |
589,748 |
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|
563,021 |
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Total long-lived assets |
$ |
895,940 |
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$ |
871,356 |
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1) |
Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense. |
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2) |
Long-lived assets consist of property, plant and equipment, net. |
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