| Results of Operations by Reportable Segment |
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Year Ended December 31, |
Dollars in thousands |
2015 |
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2014 |
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2013 |
Revenues: |
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Drilling Services: |
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U.S. (Lower 48) Drilling(1)
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$ |
30,358 |
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$ |
158,405 |
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$ |
153,624 |
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International & Alaska Drilling(1)
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435,096 |
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|
462,513 |
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410,507 |
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Total Drilling Services |
465,454 |
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620,918 |
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564,131 |
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Rental Tools(1)
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246,729 |
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347,766 |
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310,041 |
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Total revenues |
712,183 |
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968,684 |
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|
874,172 |
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Operating income: |
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Drilling Services: |
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U.S. (Lower 48) Drilling(2)
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(28,309 |
) |
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46,831 |
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54,203 |
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International & Alaska Drilling(2)
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45,211 |
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34,405 |
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23,080 |
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Total Drilling Services |
16,902 |
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81,236 |
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77,283 |
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Rental Tools(2)
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12,797 |
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72,946 |
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91,164 |
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Total operating gross margin |
29,699 |
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154,182 |
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168,447 |
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General and administrative expense |
(36,190 |
) |
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(35,016 |
) |
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(68,025 |
) |
Provision for reduction in carrying value of certain assets |
(12,490 |
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— |
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(2,544 |
) |
Gain on disposition of assets, net |
1,643 |
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1,054 |
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3,994 |
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Total operating income (loss) |
(17,338 |
) |
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120,220 |
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|
101,872 |
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Interest expense |
(45,155 |
) |
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(44,265 |
) |
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(47,820 |
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Interest income |
269 |
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195 |
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2,450 |
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Loss on extinguishment of debt |
— |
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(30,152 |
) |
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(5,218 |
) |
Other income (loss) |
(9,747 |
) |
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2,539 |
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1,503 |
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Income (loss) from continuing operations before income taxes |
$ |
(71,971 |
) |
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$ |
48,537 |
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$ |
52,787 |
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(1) |
Exxon Neftegas Limited (ENL), was our largest customer in each of the years ended December 31, 2015, 2014, and 2013. ENL constituted approximately 27.9 percent, 18.7 percent, and 15.6 percent of our total consolidated revenues in the years ended December 31, 2015, 2014, and 2013, respectively, and approximately 45.6 percent, 39.2 percent, and 33.3 percent of our International & Alaska Drilling segment revenues in the years ended December 31, 2015, 2014, and 2013, 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 |
2015 |
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2014 |
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2013 |
Capital expenditures: |
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U.S. (Lower 48) Drilling |
$ |
2,731 |
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$ |
43,120 |
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$ |
23,796 |
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International & Alaska Drilling |
13,458 |
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26,761 |
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40,822 |
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Rental Tools |
67,189 |
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95,340 |
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76,928 |
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Corporate |
4,819 |
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14,292 |
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14,099 |
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Total capital expenditures |
$ |
88,197 |
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$ |
179,513 |
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$ |
155,645 |
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Depreciation and amortization: (1)
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U.S. (Lower 48) Drilling |
$ |
22,420 |
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$ |
21,260 |
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$ |
15,212 |
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International & Alaska Drilling |
64,539 |
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59,684 |
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62,988 |
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Rental Tools |
69,235 |
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64,177 |
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55,853 |
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Total depreciation and amortization |
$ |
156,194 |
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$ |
145,121 |
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$ |
134,053 |
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(1) |
For presentation purposes, depreciation for corporate assets of $7.5 million, $5.0 million, and $3.5 million for the years then ended December 31, 2015, 2014 and 2013, 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 |
2015 |
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2014 |
Identifiable assets: |
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U.S. (Lower 48) Drilling |
$ |
102,121 |
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$ |
124,701 |
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International & Alaska Drilling |
629,784 |
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764,794 |
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Rental Tools |
429,281 |
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444,195 |
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Total identifiable assets |
1,161,186 |
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1,333,690 |
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Corporate |
215,718 |
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186,969 |
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Total assets |
$ |
1,376,904 |
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$ |
1,520,659 |
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| Operations by Geographical Area |
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Year Ended December 31, |
Dollars in Thousands |
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Revenues by geographic area: |
2015 |
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2014 |
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2013 |
Russia |
$ |
165,193 |
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$ |
154,817 |
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$ |
131,037 |
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Other CIS |
61,145 |
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59,881 |
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54,296 |
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EMEA & Asia |
148,015 |
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183,460 |
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135,499 |
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Latin America |
69,989 |
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86,651 |
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101,154 |
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United States |
231,779 |
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440,642 |
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425,800 |
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Other(1)
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36,062 |
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43,233 |
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26,386 |
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Total revenues |
$ |
712,183 |
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$ |
968,684 |
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$ |
874,172 |
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Long-lived assets by geographic area:(2)
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Russia |
$ |
22,607 |
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$ |
25,728 |
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Other CIS |
44,675 |
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49,883 |
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EMEA & Asia |
130,434 |
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145,093 |
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Latin America |
63,919 |
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85,492 |
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United States(3)
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544,206 |
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589,744 |
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Other |
— |
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— |
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Total long-lived assets |
$ |
805,841 |
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$ |
895,940 |
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(1) |
This category includes our project services activities, as the revenue generated by our project service activities benefit our various geographic locations. |
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(2) |
Long-lived assets consist of property, plant and equipment, net. |
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