Annual report pursuant to Section 13 and 15(d)

Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements

v3.8.0.1
Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements
12 Months Ended
Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements
Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements
Set forth on the following pages are the consolidating condensed financial statements of Parker Drilling. The Company’s 2015 Secured Credit Agreement and Senior Notes are fully and unconditionally guaranteed by substantially all of our direct and indirect domestic subsidiaries other than immaterial subsidiaries and subsidiaries generating revenues primarily outside the United States, subject to the following customary release provisions:
in connection with any sale or other disposition of all or substantially all of the assets of that guarantor (including by way of merger or consolidation) to a person that is not (either before or after giving effect to such transaction) a subsidiary of the Company;
in connection with any sale of such amount of capital stock as would result in such guarantor no longer being a subsidiary to a person that is not (either before or after giving effect to such transaction) a subsidiary of the Company;
if the Company designates any restricted subsidiary that is a guarantor as an unrestricted subsidiary;
if the guarantee by a guarantor of all other indebtedness of the Company or any other guarantor is released, terminated or discharged, except by, or as a result of, payment under such guarantee; or
upon legal defeasance or covenant defeasance (satisfaction and discharge of the indenture).
There are currently no restrictions on the ability of the restricted subsidiaries to transfer funds to Parker Drilling in the form of cash dividends, loans or advances. Parker Drilling is a holding company with no operations, other than through its subsidiaries. Separate financial statements for each guarantor company are not provided as the company complies with the exception to Rule 3-10(f) of Regulation S-X. All guarantor subsidiaries are owned 100 percent by the parent company.
We are providing consolidating condensed financial information of the parent, Parker Drilling, the guarantor subsidiaries, and the non-guarantor subsidiaries as of December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, 2016, and 2015. The consolidating condensed financial statements present investments in both the consolidated and unconsolidated subsidiaries using the equity method of accounting.
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
 
Year ended December 31, 2017
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Total revenues
$

 
$
168,490

 
$
355,044

 
$
(81,014
)
 
$
442,520

Operating expenses

 
94,546

 
341,955

 
(81,014
)
 
355,487

Depreciation and amortization

 
81,260

 
41,113

 

 
122,373

Total operating gross margin (loss)

 
(7,316
)
 
(28,024
)
 

 
(35,340
)
General and administration expense (1)
(323
)
 
(24,887
)
 
(466
)
 

 
(25,676
)
Provision for reduction in carrying value of certain assets

 

 
(1,938
)
 

 
(1,938
)
Gain (loss) on disposition of assets, net

 
(247
)
 
(2,604
)
 

 
(2,851
)
Total operating income (loss)
(323
)
 
(32,450
)
 
(33,032
)
 

 
(65,805
)
Other income (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(47,135
)
 
(220
)
 
(7,906
)
 
11,035

 
(44,226
)
Interest income
831

 
744

 
9,704

 
(11,035
)
 
244

Other

 
71

 
55

 

 
126

Equity in net earnings of subsidiaries
(40,752
)
 

 

 
40,752

 

Total other income (expense)
(87,056
)
 
595

 
1,853

 
40,752

 
(43,856
)
Income (loss) before income taxes
(87,379
)
 
(31,855
)
 
(31,179
)
 
40,752

 
(109,661
)
Income tax expense (benefit):
 
 
 
 
 
 
 
 
 
Current tax expense (benefit)
26,537

 
(22,494
)
 
5,221

 

 
9,264

Deferred tax expense (benefit)
4,785

 
(7,750
)
 
2,741

 

 
(224
)
Total income tax expense (benefit)
31,322

 
(30,244
)
 
7,962

 

 
9,040

Net income (loss)
(118,701
)
 
(1,611
)
 
(39,141
)
 
40,752

 
(118,701
)
Less: Net income attributable to noncontrolling interest

 

 

 

 

Net income (loss) attributable to controlling interest
$
(118,701
)
 
$
(1,611
)
 
$
(39,141
)
 
$
40,752

 
$
(118,701
)
Less: Mandatory convertible preferred stock dividend
$
3,051

 
$

 
$

 
$

 
$
3,051

Net income (loss) available to common stockholders
$
(121,752
)
 
$
(1,611
)
 
$
(39,141
)
 
$
40,752

 
$
(121,752
)
(1)General and administration expenses for field operations are included in operating expenses.
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited) 
 
Year ended December 31, 2016
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Total revenues
$

 
$
152,263

 
$
380,931

 
$
(106,190
)
 
$
427,004

Operating expenses

 
103,013

 
365,698

 
(106,190
)
 
362,521

Depreciation and amortization

 
90,218

 
49,577

 

 
139,795

Total operating gross margin (loss)

 
(40,968
)
 
(34,344
)
 

 
(75,312
)
General and administration expense (1)
(410
)
 
(29,355
)
 
(4,567
)
 

 
(34,332
)
Provision for reduction in carrying value of certain assets

 

 

 

 

Gain (loss) on disposition of assets, net

 
(565
)
 
(1,048
)
 

 
(1,613
)
Total operating income (loss)
(410
)
 
(70,888
)
 
(39,959
)
 

 
(111,257
)
Other income (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(48,160
)
 
(642
)
 
(6,434
)
 
9,424

 
(45,812
)
Interest income
758

 
695

 
8,029

 
(9,424
)
 
58

Other

 
484

 
(117
)
 

 
367

Equity in net earnings of subsidiaries
(94,469
)
 

 

 
94,469

 

Total other income (expense)
(141,871
)
 
537

 
1,478

 
94,469

 
(45,387
)
Income (loss) before income taxes
(142,281
)
 
(70,351
)
 
(38,481
)
 
94,469

 
(156,644
)
Income tax expense (benefit):
 
 
 
 
 
 
 
 
 
Current tax expense (benefit)
40,562

 
(35,572
)
 
118

 

 
5,108

Deferred tax expense (benefit)
47,971

 
14,846

 
6,245

 

 
69,062

Total income tax expense (benefit)
88,533

 
(20,726
)
 
6,363

 

 
74,170

Net income (loss)
(230,814
)
 
(49,625
)
 
(44,844
)
 
94,469

 
(230,814
)
Less: Net income attributable to noncontrolling interest

 

 

 

 

Net income (loss) attributable to controlling interest
$
(230,814
)
 
$
(49,625
)
 
$
(44,844
)
 
$
94,469

 
$
(230,814
)
Less: Mandatory convertible preferred stock dividend
$

 
$

 
$

 
$

 
$

Net income (loss) available to common stockholders
$
(230,814
)
 
$
(49,625
)
 
$
(44,844
)
 
$
94,469

 
$
(230,814
)
(1)General and administration expenses for field operations are included in operating expenses.

PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
 
Year ended December 31, 2015
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Total revenues
$

 
$
254,182

 
$
584,204

 
$
(126,203
)
 
$
712,183

Operating expenses

 
143,563

 
508,930

 
(126,203
)
 
526,290

Depreciation and amortization

 
95,071

 
61,123

 

 
156,194

Total operating gross margin (loss)

 
15,548

 
14,151

 

 
29,699

General and administration expense (1)
(1,279
)
 
(38,643
)
 
3,732

 

 
(36,190
)
Provision for reduction in carrying value of certain assets

 
(2,088
)
 
(10,402
)
 

 
(12,490
)
Gain (loss) on disposition of assets, net

 
439

 
1,204

 

 
1,643

Total operating income (loss)
(1,279
)
 
(24,744
)
 
8,685

 

 
(17,338
)
Other income (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(47,659
)
 
(1,035
)
 
(11,579
)
 
15,118

 
(45,155
)
Interest income
1,424

 
852

 
13,111

 
(15,118
)
 
269

Loss on extinguishment of debt

 

 

 

 

Other

 
(200
)
 
(9,547
)
 

 
(9,747
)
Equity in net earnings of subsidiaries
(36,631
)
 

 

 
36,631

 

Total other income (expense)
(82,866
)
 
(383
)
 
(8,015
)
 
36,631

 
(54,633
)
Income (loss) before income taxes
(84,145
)
 
(25,127
)
 
670

 
36,631

 
(71,971
)
Income tax expense (benefit):
 
 
 
 
 
 
 
 
 
Current tax expense (benefit)
29,643

 
(22,970
)
 
12,931

 

 
19,604

Deferred tax expense (benefit)
(18,715
)
 
11,718

 
9,706

 

 
2,709

Total income tax expense (benefit)
10,928

 
(11,252
)
 
22,637

 

 
22,313

Net income (loss)
(95,073
)
 
(13,875
)
 
(21,967
)
 
36,631

 
(94,284
)
Less: Net income attributable to noncontrolling interest

 

 
789

 

 
789

Net income (loss) attributable to controlling interest
$
(95,073
)
 
$
(13,875
)
 
$
(22,756
)
 
$
36,631

 
$
(95,073
)
Less: Mandatory convertible preferred stock dividend
$

 
$

 
$

 
$

 
$

Net income (loss) available to common stockholders
$
(95,073
)
 
$
(13,875
)
 
$
(22,756
)
 
$
36,631

 
$
(95,073
)

(1)
General and administration expenses for field operations are included in operating expenses.
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)
 
Year Ended December 31, 2017
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(118,701
)
 
$
(1,611
)
 
$
(39,141
)
 
$
40,752

 
$
(118,701
)
Other comprehensive gain (loss), net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 
643

 

 
$
643

Currency translation difference on foreign currency net investments

 

 
2,689

 

 
$
2,689

Total other comprehensive gain (loss), net of tax:

 

 
3,332

 

 
3,332

Comprehensive income (loss) attributable to controlling interest
$
(118,701
)
 
$
(1,611
)
 
$
(35,809
)
 
$
40,752

 
$
(115,369
)





PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)
 
Year Ended December 31, 2016
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(230,814
)
 
$
(49,625
)
 
$
(44,844
)
 
$
94,469

 
$
(230,814
)
Other comprehensive gain (loss), net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 
(691
)
 

 
(691
)
Currency translation difference on foreign currency net investments

 

 
(4,265
)
 

 
(4,265
)
Total other comprehensive gain (loss), net of tax:

 

 
(4,956
)
 

 
(4,956
)
Comprehensive income (loss) attributable to controlling interest
$
(230,814
)
 
$
(49,625
)
 
$
(49,800
)
 
$
94,469

 
$
(235,770
)








PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)
 
Year ended December 31, 2015
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(95,073
)
 
$
(13,875
)
 
$
(21,967
)
 
$
36,631

 
$
(94,284
)
Other comprehensive gain (loss), net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 
(2,012
)
 

 
(2,012
)
Currency translation difference on foreign currency net investments

 

 
405

 

 
405

Total other comprehensive gain (loss), net of tax:

 

 
(1,607
)
 

 
(1,607
)
Comprehensive income (loss)
(95,073
)
 
(13,875
)
 
(23,574
)
 
36,631

 
(95,891
)
Comprehensive (income) loss attributable to noncontrolling interest

 

 
4,606

 

 
4,606

Comprehensive income (loss) attributable to controlling interest
$
(95,073
)
 
$
(13,875
)
 
$
(18,968
)
 
$
36,631

 
$
(91,285
)
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
 
December 31, 2017
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
75,342

 
$
20,655

 
$
45,552

 
$

 
$
141,549

Accounts and notes receivable, net

 
32,338

 
90,173

 

 
122,511

Rig materials and supplies

 
(3,025
)
 
34,440

 

 
31,415

Deferred costs

 
17

 
3,128

 

 
3,145

Other tax assets

 

 
4,889

 

 
4,889

Other current assets

 
6,345

 
7,982

 

 
14,327

Total current assets
75,342

 
56,330

 
186,164

 

 
317,836

Property, plant and equipment, net
(19
)
 
428,556

 
197,234

 

 
625,771

Goodwill

 
6,708

 

 

 
6,708

Intangible assets, net

 
7,128

 

 

 
7,128

Investment in subsidiaries and intercompany advances
2,955,050

 
2,971,456

 
3,955,553

 
(9,882,059
)
 

Other noncurrent assets
(261,232
)
 
237,755

 
537,124

 
(480,811
)
 
32,836

Total assets
$
2,769,141

 
$
3,707,933

 
$
4,876,075

 
$
(10,362,870
)
 
$
990,279

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
(51,060
)
 
179,247

 
588,536

 
(617,477
)
 
99,246

Accrued income taxes
76,883

 
(56,870
)
 
(15,583
)
 

 
4,430

Total current liabilities
25,823

 
122,377

 
572,953

 
(617,477
)
 
103,676

Long-term debt, net
577,971

 

 

 

 
577,971

Other long-term liabilities
2,867

 
5,741

 
3,825

 

 
12,433

Deferred tax liability
(1
)
 

 
79

 

 
78

Intercompany payable
1,865,810

 
1,465,744

 
2,430,340

 
(5,761,894
)
 

Total liabilities
2,472,470

 
1,593,862

 
3,007,197

 
(6,379,371
)
 
694,158

Total equity
296,671

 
2,114,071

 
1,868,878

 
(3,983,499
)
 
296,121

Total liabilities and stockholders’ equity
$
2,769,141

 
$
3,707,933

 
$
4,876,075

 
$
(10,362,870
)
 
$
990,279


PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
 
December 31, 2016
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
65,000

 
$
14,365

 
$
40,326

 
$

 
$
119,691

Accounts and notes receivable, net

 
15,749

 
97,482

 

 
113,231

Rig materials and supplies

 
(5,369
)
 
37,723

 

 
32,354

Deferred costs

 
16

 
1,420

 

 
1,436

Other tax assets
(50,296
)
 
35,733

 
21,038

 

 
6,475

Other current assets

 
5,555

 
7,576

 

 
13,131

Total current assets
14,704

 
66,049

 
205,565

 

 
286,318

Property, plant and equipment, net
(19
)
 
469,927

 
223,531

 

 
693,439

Goodwill

 
6,708

 

 

 
6,708

Intangible assets, net

 
9,434

 
494

 

 
9,928

Investment in subsidiaries and intercompany advances
2,979,413

 
2,932,375

 
3,676,402

 
(9,588,190
)
 

Other noncurrent assets
(253,679
)
 
301,771

 
539,877

 
(480,811
)
 
107,158

Total assets
$
2,740,419

 
$
3,786,264

 
$
4,645,869

 
$
(10,069,001
)
 
$
1,103,551

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
(10,080
)
 
149,210

 
577,188

 
(617,477
)
 
98,841

Accrued income taxes

 
1,576

 
2,504

 

 
4,080

Total current liabilities
(10,080
)
 
150,786

 
579,692

 
(617,477
)
 
102,921

Long-term debt, net
576,326

 

 

 

 
576,326

Other long-term liabilities
2,867

 
9,338

 
3,631

 

 
15,836

Deferred tax liability
(28
)
 
73,039

 
(3,678
)
 

 
69,333

Intercompany payables
1,828,317

 
1,437,417

 
2,161,864

 
(5,427,598
)
 

Total liabilities
2,397,402

 
1,670,580

 
2,741,509

 
(6,045,075
)
 
764,416

Total equity
343,017

 
2,115,684

 
1,904,360

 
(4,023,926
)
 
339,135

Total liabilities and stockholders’ equity
$
2,740,419

 
$
3,786,264

 
$
4,645,869

 
$
(10,069,001
)
 
$
1,103,551

PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
Year Ended December 31, 2017
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(118,701
)
 
$
(1,611
)
 
$
(39,141
)
 
$
40,752

 
(118,701
)
Adjustments to reconcile net income (loss):
 
 
 
 
 
 
 
 
 
Depreciation and amortization

 
81,260

 
41,113

 

 
122,373

(Gain) loss on disposition of assets

 
247

 
2,604

 

 
2,851

Deferred tax expense (benefit)
4,785

 
(7,750
)
 
2,741

 

 
(224
)
Provision for reduction in carrying value of certain assets

 

 
1,938

 

 
1,938

Expenses not requiring cash
5,651

 
(218
)
 
9,880

 
(11,062
)
 
4,251

Change in assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts and notes receivable

 
(16,540
)
 
13,483

 
(6,571
)
 
(9,628
)
Rig materials and supplies

 
(760
)
 
5,470

 

 
4,710

Other current assets
(50,296
)
 
34,941

 
14,036

 

 
(1,319
)
Accounts payable and accrued liabilities
(4,393
)
 
56,354

 
262,884

 
(323,559
)
 
(8,714
)
Accrued income taxes
79,319

 
(60,882
)
 
(17,899
)
 

 
538

Other assets
24,722

 
(35,829
)
 
(280,675
)
 
300,440

 
8,658

Net cash provided by (used in) operating activities
(58,913
)
 
49,212

 
16,434

 

 
6,733

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(42,990
)
 
(11,543
)
 

 
(54,533
)
Proceeds from the sale of assets

 
68

 
335

 

 
403

Net cash provided by (used in) investing activities

 
(42,922
)
 
(11,208
)
 

 
(54,130
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from the issuance of common stock
25,200

 

 

 

 
25,200

Proceeds from the issuance of mandatory convertible preferred stock
50,000

 

 

 

 
50,000

Payment of equity issuance costs
(2,864
)
 

 

 

 
(2,864
)
Mandatory convertible preferred stock dividend
(2,145
)
 

 

 

 
(2,145
)
Shares surrendered in lieu of tax
(936
)
 

 

 

 
(936
)
Net cash provided by (used in) financing activities
69,255

 

 

 

 
69,255

 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
10,342

 
6,290

 
5,226

 

 
21,858

Cash and cash equivalents at beginning of year
65,000

 
14,365

 
40,326

 

 
119,691

Cash and cash equivalents at end of year
$
75,342

 
$
20,655

 
$
45,552

 
$

 
$
141,549


PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
Year Ended December 31, 2016
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(230,814
)
 
$
(49,625
)
 
$
(44,844
)
 
$
94,469

 
(230,814
)
Adjustments to reconcile net income (loss):
 
 
 
 
 
 
 
 
 
Depreciation and amortization

 
90,218

 
49,577

 

 
139,795

Accretion of contingent consideration

 
419

 

 

 
419

Loss on extinguishment of debt
1,088

 

 

 

 
1,088

(Gain) loss on disposition of assets

 
565

 
1,048

 

 
1,613

Deferred tax expense (benefit)
47,971

 
14,846

 
6,245

 

 
69,062

Expenses not requiring cash
9,545

 
(1,624
)
 
(5,403
)
 

 
2,518

Equity in net earnings (losses) of subsidiaries
94,469

 

 

 
(94,469
)
 

Change in assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts and notes receivable

 
25,923

 
34,468

 

 
60,391

Rig materials and supplies

 
(73
)
 
(1,679
)
 

 
(1,752
)
Other current assets
50,296

 
(35,322
)
 
(12,834
)
 

 
2,140

Accounts payable and accrued liabilities
(121,016
)
 
97,315

 
4,207

 

 
(19,494
)
Accrued income taxes
(10,381
)
 
(626
)
 
4,585

 

 
(6,422
)
Other assets
(299
)
 
101

 
4,095

 

 
3,897

Net cash provided by (used in) operating activities
(159,141
)
 
142,117

 
39,465

 

 
22,441

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(15,384
)
 
(13,570
)
 

 
(28,954
)
Proceeds from the sale of assets

 
437

 
2,004

 

 
2,441

Net cash provided by (used in) investing activities

 
(14,947
)
 
(11,566
)
 

 
(26,513
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Payment for noncontrolling interest
(3,375
)
 

 

 

 
(3,375
)
Payment of contingent consideration

 
(6,000
)
 

 

 
(6,000
)
Shares surrendered in lieu of tax
(1,156
)
 
 
 
 
 
 
 
(1,156
)
Intercompany advances, net
154,687

 
(120,659
)
 
(34,028
)
 

 

Net cash provided by (used in) financing activities
150,156

 
(126,659
)
 
(34,028
)
 

 
(10,531
)
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
(8,985
)
 
511

 
(6,129
)
 

 
(14,603
)
Cash and cash equivalents at beginning of year
73,985

 
13,854

 
46,455

 

 
134,294

Cash and cash equivalents at end of year
$
65,000

 
$
14,365

 
$
40,326

 
$

 
$
119,691


PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
Year Ended December 31, 2015
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(95,073
)
 
$
(13,875
)
 
$
(21,967
)
 
$
36,631

 
$
(94,284
)
Adjustments to reconcile net income (loss):
 
 
 
 
 
 
 
 
 
Depreciation and amortization

 
95,071

 
61,123

 

 
156,194

Accretion of contingent consideration

 
826

 

 

 
826

Gain (loss) on disposition of assets

 
(439
)
 
(1,204
)
 

 
(1,643
)
Deferred tax expense (benefit)
(18,715
)
 
11,718

 
9,706

 

 
2,709

Excess tax benefit (expense) from stock-based compensation
(1,045
)
 

 

 

 
(1,045
)
Provision for reduction in carrying value of certain assets

 
2,088

 
10,402

 

 
12,490

Expenses not requiring cash
7,344

 
854

 
(2,062
)
 

 
6,136

Equity in net earnings of subsidiaries
36,631

 

 

 
(36,631
)
 

Change in assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts and notes receivable
(33
)
 
61,818

 
42,210

 

 
103,995

Rig materials and supplies

 
51

 
2,671

 

 
2,722

Other current assets
19,885

 
(16,257
)
 
8,920

 

 
12,548

Accounts payable and accrued liabilities
10,228

 
(21,396
)
 
(16,257
)
 

 
(27,425
)
Accrued income taxes
15,368

 
(9,405
)
 
(13,920
)
 

 
(7,957
)
Other assets
(198,955
)
 
186,591

 
9,208

 

 
(3,156
)
Net cash provided by (used in) operating activities
(224,365
)
 
297,645

 
88,830

 

 
162,110

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(58,817
)
 
(29,380
)
 

 
(88,197
)
Proceeds from the sale of assets

 
500

 
330

 

 
830

Proceeds from insurance settlements

 

 
2,500

 

 
2,500

Acquisitions, net of cash acquired
(3,375
)
 
(10,431
)
 

 

 
(13,806
)
Divestitures, net of cash paid

 

 
(2,570
)
 

 
(2,570
)
Net cash provided by (used in) investing activities
(3,375
)
 
(68,748
)
 
(29,120
)
 

 
(101,243
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt issuance

 

 

 

 

Repayments of long term debt
(30,000
)
 

 

 

 
(30,000
)
Payments of debt issuance costs
(1,996
)
 

 

 

 
(1,996
)
Payment of contingent consideration

 
(2,000
)
 

 

 
(2,000
)
Shares surrendered in lieu of tax
(1,033
)
 
 
 
 
 
 
 
(1,033
)
Intercompany advances, net
298,026

 
(226,589
)
 
(71,437
)
 

 

Net cash provided by (used in) financing activities
264,997

 
(228,589
)
 
(71,437
)
 

 
(35,029
)
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
37,257

 
308

 
(11,727
)
 

 
25,838

Cash and cash equivalents at beginning of year
36,728

 
13,546

 
58,182

 

 
108,456

Cash and cash equivalents at end of year
$
73,985

 
$
13,854

 
$
46,455

 
$

 
$
134,294