Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments

v3.3.0.814
Reportable Segments
 9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Reportable Segments
Reportable Segments
Our business is comprised of two business lines: (1) Drilling Services and (2) Rental Tools Services. We report our Rental Tools Services business as one reportable segment (Rental Tools) and report our Drilling Services business as two reportable segments: (1) U.S. (Lower 48) Drilling and (2) International & Alaska Drilling. We eliminate inter-segment revenue and expenses.
The following table represents the results of operations by reportable segment:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Dollars in thousands
2015
 
2014
 
2015
 
2014
Revenues: (1)
 
 
 
 
 
 
 
U.S. (Lower 48) Drilling
$
5,961

 
$
44,409

 
$
26,906

 
$
126,281

International & Alaska Drilling
110,661

 
109,892

 
339,551

 
343,803

Rental Tools
56,796

 
87,711

 
196,978

 
255,387

Total revenues
173,418

 
242,012

 
563,435

 
725,471

Operating gross margin: (2)
 
 
 
 
 
 
 
U.S. (Lower 48) Drilling
(7,397
)
 
16,283

 
(20,673
)
 
42,829

International & Alaska Drilling
13,212

 
9,131

 
37,428

 
23,824

Rental Tools
(944
)
 
19,652

 
16,404

 
50,761

Total operating gross margin
4,871

 
45,066

 
33,159

 
117,414

General and administrative expense
(8,895
)
 
(9,370
)
 
(29,243
)
 
(25,341
)
Provision for reduction in carrying value of certain assets
(906
)
 
—

 
(3,222
)
 
—

Gain (loss) on disposition of assets, net
383

 
(457
)
 
2,686

 
433

Total operating income (loss)
(4,547
)
 
35,239

 
3,380

 
92,506

Interest expense
(11,293
)
 
(10,848
)
 
(33,767
)
 
(33,486
)
Interest income
7

 
36

 
209

 
156

Loss on extinguishment of debt
—

 
—

 
—

 
(30,152
)
Other income (loss)
(719
)
 
(536
)
 
(3,628
)
 
1,391

Income (loss) from continuing operations before income taxes
$
(16,552
)
 
$
23,891

 
$
(33,806
)
 
$
30,415

 
(1)For the nine months ended September 30, 2015, our largest customer, Exxon Neftegas Limited (ENL), constituted approximately 27.0 percent of our total consolidated revenues and approximately 44.7 percent of our International & Alaska Drilling segment revenues. For the nine months ended September 30, 2014, our largest customer, ENL, constituted approximately 18.9 percent of our total consolidated revenues and approximately 39.9 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.