| Reportable Segments |
We report our business activities in six business segments: (1) Rental Tools, (2) U.S. Barge Drilling,
(3) U.S. Drilling, (4) International Drilling, (5) Technical Services, and (6) Construction Contract. We eliminate inter-segment revenue and expenses. The following table represents the results of operations by reportable
segment:
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Three Months Ended March 31, |
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Operations by Reportable Industry Segment
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2012 |
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2011 |
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(Dollars in Thousands) |
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Revenues:
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Rental Tools
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$ |
66,284 |
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$ |
52,319 |
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U.S. Barge Drilling
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|
27,835 |
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|
15,920 |
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U.S. Drilling(2)
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— |
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— |
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International Drilling
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78,750 |
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69,936 |
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Technical Services
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|
3,700 |
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|
8,366 |
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Construction Contract
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— |
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|
9,638 |
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Total revenues
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|
176,569 |
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|
156,179 |
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Operating income:
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Rental Tools(1)
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33,602 |
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|
24,095 |
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U.S. Barge Drilling(1)
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7,157 |
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(2,680 |
) |
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U.S. Drilling(1)
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|
(1,547 |
) |
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(341 |
) |
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International Drilling(1)
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14,559 |
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(694 |
) |
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Technical Services(1)
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|
247 |
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|
1,567 |
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Construction Contract(1)
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— |
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(743 |
) |
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Total operating income
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|
54,018 |
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|
21,204 |
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General and administrative expense
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|
(5,497 |
) |
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(6,806 |
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Gain on disposition of assets, net
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|
492 |
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|
1,004 |
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Total operating income
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49,013 |
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|
15,402 |
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Interest expense
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(8,037 |
) |
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(5,86l |
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Interest income
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26 |
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|
47 |
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Changes in fair value of derivative positions
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(49 |
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— |
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Other
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16 |
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11 |
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Income before income taxes
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$ |
40,969 |
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$ |
9,599 |
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| (1) |
Operating income is calculated as revenues less direct operating expenses, including depreciation and amortization expense. |
| (2) |
As of March 31, 2012, this segment had not begun generating revenue. |
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