| 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 |
2017 |
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2016 |
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2015 |
Revenues: (1)
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Drilling Services: |
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U.S. (Lower 48) Drilling |
$ |
12,389 |
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$ |
5,429 |
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|
$ |
30,358 |
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International & Alaska Drilling |
247,254 |
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|
287,332 |
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|
435,096 |
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Total Drilling Services |
259,643 |
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|
292,761 |
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|
465,454 |
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Rental Tools Services: |
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U.S. Rental Tools |
121,937 |
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|
71,613 |
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|
141,889 |
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International Rental Tools |
60,940 |
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|
62,630 |
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|
104,840 |
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Total Rental Tools Services |
182,877 |
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|
134,243 |
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|
246,729 |
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Total revenues |
442,520 |
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|
427,004 |
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|
712,183 |
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Operating gross margin: (2)
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Drilling Services: |
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U.S. (Lower 48) Drilling |
(20,656 |
) |
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(34,353 |
) |
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(28,309 |
) |
International & Alaska Drilling |
(6,248 |
) |
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9,272 |
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|
45,211 |
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Total Drilling Services |
(26,904 |
) |
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(25,081 |
) |
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16,902 |
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Rental Tools Services: |
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U.S. Rental Tools |
15,651 |
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(22,372 |
) |
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17,380 |
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International Rental Tools |
(24,087 |
) |
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(27,859 |
) |
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(4,583 |
) |
Total Rental Tools Services |
(8,436 |
) |
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(50,231 |
) |
|
12,797 |
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Total operating gross margin |
(35,340 |
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(75,312 |
) |
|
29,699 |
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General and administrative expense |
(25,676 |
) |
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(34,332 |
) |
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(36,190 |
) |
Provision for reduction in carrying value of certain assets |
(1,938 |
) |
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— |
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(12,490 |
) |
Gain (loss) on disposition of assets, net |
(2,851 |
) |
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(1,613 |
) |
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1,643 |
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Total operating income (loss) |
(65,805 |
) |
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(111,257 |
) |
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(17,338 |
) |
Interest expense |
(44,226 |
) |
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(45,812 |
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(45,155 |
) |
Interest income |
244 |
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|
58 |
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|
269 |
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Other income (loss) |
126 |
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|
367 |
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(9,747 |
) |
Income (loss) from continuing operations before income taxes |
$ |
(109,661 |
) |
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$ |
(156,644 |
) |
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$ |
(71,971 |
) |
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(1) |
For the years ended December 31, 2017, 2016, and 2015, our largest customer, ENL, constituted approximately 31.3 percent, 38.7 percent, and 27.9 percent, respectively, of our total consolidated revenues and approximately 55.9 percent, 57.5 percent, and 45.6 percent, respectively, of our International & Alaska Drilling segment revenues.
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Excluding reimbursable revenues of $50.8 million, $67.0 million, and $75.8 million, ENL constituted approximately 22.7 percent, 27.5 percent, and 19.7 percent, respectively, of our total consolidated revenues and approximately 46.1 percent, 45.0 percent, and 35.3 percent, respectively of our International & Alaska Drilling segment revenues.
For the year ended December 31, 2017, our second largest customer, BP, constituted 9.7 percent, of our total consolidated revenues and approximately 17.4 percent of our International & Alaska Drilling segment revenues.
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(2) |
Operating gross margin 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 |
2017 |
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2016 |
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2015 |
Capital expenditures: |
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U.S. (Lower 48) Drilling |
$ |
230 |
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$ |
264 |
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$ |
2,731 |
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International & Alaska Drilling |
3,673 |
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|
5,258 |
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|
13,458 |
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U.S. Rental Tools |
39,948 |
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|
10,848 |
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|
47,673 |
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International Rental Tools |
8,584 |
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|
9,725 |
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|
19,516 |
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Corporate |
2,098 |
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|
2,859 |
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|
4,819 |
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Total capital expenditures |
$ |
54,533 |
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$ |
28,954 |
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$ |
88,197 |
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Depreciation and amortization: (1)
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U.S. (Lower 48) Drilling |
$ |
13,521 |
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$ |
20,049 |
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$ |
22,420 |
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International & Alaska Drilling |
46,950 |
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|
55,236 |
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|
64,539 |
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U.S. Rental Tools |
43,489 |
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|
43,769 |
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|
47,453 |
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International Rental Tools |
18,413 |
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|
20,741 |
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21,782 |
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Total depreciation and amortization |
$ |
122,373 |
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$ |
139,795 |
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$ |
156,194 |
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(1) |
For presentation purposes, for the years then ended December 31, 2017, 2016 and 2015 depreciation for corporate assets of $8.7 million, $8.3 million, and $7.5 million, respectively, has been allocated to the corresponding 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 |
2017 |
|
2016 |
Identifiable assets: |
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U.S. (Lower 48) Drilling |
$ |
62,980 |
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$ |
77,628 |
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International & Alaska Drilling |
421,753 |
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|
591,120 |
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U.S. Rental Tools |
198,664 |
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|
126,289 |
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International Rental Tools |
168,511 |
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|
170,431 |
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Total identifiable assets |
851,908 |
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|
965,468 |
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Corporate |
138,371 |
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|
138,083 |
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Total assets |
$ |
990,279 |
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$ |
1,103,551 |
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| Operations by Geographical Area |
The following table represents selected geographic information:
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Year Ended December 31, |
Dollars in Thousands |
2017 |
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2016 |
|
2015 |
Revenues by geographic area: |
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Russia |
$ |
139,144 |
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$ |
142,538 |
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$ |
165,193 |
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Other CIS |
23,768 |
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33,659 |
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|
61,145 |
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EMEA & Asia |
64,572 |
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79,870 |
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|
148,015 |
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Latin America |
11,594 |
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12,952 |
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|
69,989 |
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United States |
177,630 |
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|
127,596 |
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|
231,779 |
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Other(1)
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25,812 |
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30,389 |
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|
36,062 |
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Total revenues |
$ |
442,520 |
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$ |
427,004 |
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$ |
712,183 |
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Long-lived assets by geographic area:(2)
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Russia |
$ |
19,415 |
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$ |
21,395 |
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Other CIS |
29,402 |
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35,914 |
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EMEA & Asia |
108,621 |
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116,857 |
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Latin America |
38,959 |
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48,528 |
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United States |
429,374 |
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470,745 |
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Other(1)
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— |
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— |
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Total long-lived assets |
$ |
625,771 |
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$ |
693,439 |
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(1) |
This category includes our Canada O&M operations and our project services activities. Revenues 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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