Annual report pursuant to Section 13 and 15(d)

Reportable Segments

v2.4.1.9
Reportable Segments
12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Reportable Segments
Reportable Segments
Our business is comprised of two business lines: (1) Rental Tools Services and (2) Drilling Services. We report our business activities in five reportable segments: (1) Rental Tools, (2) U.S. Barge Drilling, (3) U.S. Drilling, (4) International Drilling, and (5) Technical Services. We eliminate inter-segment revenue and expenses.
The following table represents the results of operations by reportable segment:
 
Year Ended December 31,
Dollars in thousands
2014
 
2013
 
2012
Revenues:
 
 
 
 
 
Rental Tools(1)
$
347,766

 
$
310,041

 
$
246,900

U.S. Barge Drilling(1)
137,113

 
136,855

 
123,672

U.S. Drilling(1)
79,984

 
66,928

 
1,387

International Drilling(1)
360,588

 
333,962

 
291,772

Technical Services(1)
43,233

 
26,386

 
14,030

Construction Contract(1)

 

 

Total revenues
968,684

 
874,172

 
677,761

Operating income:
 
 
 
 
 
Rental Tools(2)
72,946

 
91,164

 
113,899

U.S. Barge Drilling(2)
42,641

 
51,257

 
39,608

U.S. Drilling(2)
6,320

 
(4,484
)
 
(15,168
)
International Drilling(2)
28,966

 
23,732

 
13,138

Technical Services(2)
3,309

 
2,050

 
79

Construction Contract(2)

 
4,728

 

Total operating gross margin
154,182

 
168,447

 
151,556

General and administrative expense
(35,016
)
 
(68,025
)
 
(46,257
)
Provision for reduction in carrying value of certain assets

 
(2,544
)
 

Gain on disposition of assets, net
1,054

 
3,994

 
1,974

Total operating income
120,220

 
101,872

 
107,273

Interest expense
(44,265
)
 
(47,820
)
 
(33,542
)
Interest income
195

 
2,450

 
153

Loss on extinguishment of debt
(30,152
)
 
(5,218
)
 
(2,130
)
Changes in fair value of derivative positions

 
53

 
55

Other income (loss)
2,539

 
1,450

 
(832
)
Income from continuing operations before income taxes
$
48,537

 
$
52,787

 
$
70,977


The following table represents capital expenditures and depreciation and amortization by reportable segment:
 
Year Ended December 31,
Dollars in thousands
2014
 
2013
 
2012
Capital expenditures:
 
 
 
 
 
Rental Tools
$
95,340

 
$
76,928

 
$
61,958

U.S. Barge Drilling
43,114

 
23,694

 
8,808

U.S. Drilling
1,159

 
1,809

 
86,786

International Drilling
25,608

 
39,115

 
15,240

Corporate
14,292

 
14,099

 
18,751

Total capital expenditures
$
179,513

 
$
155,645

 
$
191,543

Depreciation and amortization:
 
 
 
 
 
Rental Tools
64,177

 
55,853

 
44,117

U.S. Barge Drilling
21,118

 
14,338

 
14,492

U.S. Drilling
15,948

 
16,385

 
7,017

International Drilling
43,651

 
47,346

 
47,354

Technical Services
227

 
131

 
37

Construction Contract

 

 

Total depreciation and amortization
$
145,121

 
$
134,053

 
$
113,017

1)
In 2014, our largest customer, Exxon Neftegas Limited (ENL), constituted approximately 18.7 percent of our total consolidated revenues and approximately 41.4 percent of our international drilling segment and 74.3 percent of our technical services segment. In 2013, our largest customer, ENL, constituted approximately 15.6 percent of our total consolidated revenues and approximately 38.3 percent of our international drilling segment and 33.9 percent of our technical services 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 27.0 percent and 24.0 percent of our international drilling segment, respectively.
2)
Operating income is calculated as revenues less direct operating expenses, including depreciation and amortization expense.
The following table represents identifiable assets by reportable segment:
 
Year Ended December 31,
  Dollars in Thousands
2014
 
2013
Identifiable assets:
 
 
 
Rental Tools
$
444,195

 
$
350,429

U.S. Barge Drilling
117,344

 
89,884

U.S. Drilling
308,105

 
354,208

International Drilling
451,168

 
460,461

Total identifiable assets
1,320,812

 
1,254,982

Corporate and other assets(1)
199,847

 
279,774

Total assets
$
1,520,659

 
$
1,534,756

1)
This category includes corporate assets as well as minimal assets for our technical services segment primarily related to office furniture and fixtures.


The following table represents selected geographic information:
 
Year Ended December 31,
Operations by Geographic Area:
2014
 
2013
 
2012
Dollars in Thousands
 
Revenues:
 
 
 
 
 
Africa and Middle East
$
128,214

 
$
58,416

 
$
26,528

Asia Pacific
187,799

 
170,165

 
117,392

CIS
61,849

 
55,165

 
44,312

Europe
20,296

 
16,788

 

Latin America
86,651

 
120,261

 
103,540

United States
483,875

 
453,377

 
385,989

Total revenues
968,684

 
874,172

 
677,761

Operating gross margin:
 
 
 
 
 
Africa and Middle East(1)
(16,973
)
 
(383
)
 
(2,027
)
Asia Pacific(1)
29,769

 
21,995

 
16,550

CIS(1)
19,534

 
11,888

 
(9,580
)
Europe(1)
11,534

 
274

 

Latin America(1)
(9,914
)
 
1,140

 
9,581

United States(1)
120,232

 
133,533

 
137,032

Total operating gross margin
154,182

 
168,447

 
151,556

 
 
 
 
 
 
Long-lived assets:(2)
 
 
 
 
 
Africa and Middle East
$
115,713

 
$
110,336

 
 
Asia Pacific
43,252

 
44,606

 
 
CIS
49,951

 
55,722

 
 
Europe
20,140

 
82,473

 
 
Latin America
77,136

 
15,198

 
 
United States
589,748

 
563,021

 
 
Total long-lived assets
$
895,940

 
$
871,356

 
 
1)
Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense.
2)
Long-lived assets consist of property, plant and equipment, net.