Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments (Tables)

v3.5.0.2
Reportable Segments (Tables)
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Results of Operations by Reportable Segment
The following table represents the results of operations by reportable segment:
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
Dollars in thousands
2016
 
2015
 
2016
 
2015
Revenues: (1)
 
 
 
 
 
 
 
Drilling Services:
 
 
 
 
 
 
 
U.S. (Lower 48) Drilling
$
1,431

 
$
5,961

 
$
4,581

 
$
26,906

International & Alaska Drilling
65,307

 
110,661

 
225,854

 
339,551

Total Drilling Services
66,738

 
116,622

 
230,435

 
366,457

Rental Tools Services:
 
 
 
 
 
 
 
U.S. Rental Tools
14,967

 
31,905

 
55,483

 
113,155

International Rental Tools
15,484

 
24,891

 
47,061

 
83,823

Total Rental Tools Services
30,451

 
56,796

 
102,544

 
196,978

Total revenues
97,189

 
173,418

 
332,979

 
563,435

Operating gross margin: (2)
 
 
 
 
 
 
 
Drilling Services:
 
 
 
 
 
 
 
U.S. (Lower 48) Drilling
(8,686
)
 
(7,397
)
 
(26,257
)
 
(20,673
)
International & Alaska Drilling
71

 
13,212

 
8,347

 
37,428

Total Drilling Services
(8,615
)
 
5,815

 
(17,910
)
 
16,755

Rental Tools Services:
 
 
 
 
 
 
 
U.S. Rental Tools
(6,645
)
 
2,976

 
(16,069
)
 
16,033

International Rental Tools
(6,705
)
 
(3,920
)
 
(21,639
)
 
371

Total Rental Tools Services
(13,350
)

(944
)
 
(37,708
)
 
16,404

Total operating gross margin
(21,965
)
 
4,871

 
(55,618
)
 
33,159

General and administrative expense
(7,424
)
 
(8,895
)
 
(25,200
)
 
(29,243
)
Provision for reduction in carrying value of certain assets
—

 
(906
)
 
—

 
(3,222
)
Gain (loss) on disposition of assets, net
(187
)
 
383

 
(249
)
 
2,686

Total operating income (loss)
(29,576
)
 
(4,547
)
 
(81,067
)
 
3,380

Interest expense
(11,015
)
 
(11,293
)
 
(34,764
)
 
(33,767
)
Interest income
9

 
7

 
48

 
209

Other income (loss)
(351
)
 
(719
)
 
1,776

 
(3,628
)
Loss from continuing operations before income taxes
$
(40,933
)
 
$
(16,552
)
 
$
(114,007
)
 
$
(33,806
)
 
(1)For the nine months ended September 30, 2016, our largest customer, ENL, constituted approximately 39.6 percent of our total consolidated revenues and approximately 58.4 percent of our International & Alaska Drilling segment revenues. Excluding reimbursable revenues of $54.3 million, ENL constituted approximately 28.0 percent of our total consolidated revenues and approximately 45.6 percent of our International & Alaska Drilling segment revenues. Our second largest customer, BP, constituted 11.9 percent of our total consolidated revenues and approximately 17.3 percent of our International & Alaska Drilling segment revenues.
For the nine months ended September 30, 2015, our largest customer, ENL, constituted approximately 27.0 percent of our total consolidated revenues and approximately 44.7 percent of our International & Alaska Drilling segment revenues. Excluding reimbursable revenues of $58.1 million, ENL constituted approximately 19.1 percent of our total consolidated revenues and approximately 34.7 percent of our International & Alaska Drilling segment revenues.
(2)Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense.