Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 18, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | ARCHROCK, INC. | ||
Entity Central Index Key | 1,389,050 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,328,362,997 | ||
Entity Common Stock, Shares Outstanding | 69,630,338 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 1,563 | $ 378 |
Accounts receivable, net of allowance of $3,343 and $2,286, respectively | 147,786 | 159,972 |
Inventory | 129,411 | 145,786 |
Other current assets | 6,123 | 7,526 |
Current assets associated with discontinued operations | 420 | 872,158 |
Total current assets | 285,303 | 1,185,820 |
Property, plant and equipment, net | 2,267,788 | 2,372,081 |
Goodwill | 0 | 3,738 |
Intangible and other assets, net | 132,472 | 154,153 |
Long-term assets associated with discontinued operations | 21,200 | 1,211,047 |
Total assets | 2,706,763 | 4,926,839 |
Current liabilities: | ||
Accounts payable, trade | 52,430 | 41,480 |
Accrued liabilities | 80,053 | 91,182 |
Deferred revenue | 2,201 | 4,490 |
Current liabilities associated with discontinued operations | 420 | 472,931 |
Total current liabilities | 135,104 | 610,083 |
Long-term debt | 1,588,465 | 2,025,795 |
Deferred income taxes | 178,566 | 218,672 |
Other long-term liabilities | 11,655 | 10,161 |
Long-term liabilities associated with discontinued operations | 5,714 | 109,083 |
Total liabilities | $ 1,919,504 | $ 2,973,794 |
Commitments and contingencies (Note 20) | ||
Equity: | ||
Preferred stock, $0.01 par value per share; 50,000,000 shares authorized; zero issued | $ 0 | $ 0 |
Common stock, $0.01 par value per share; 250,000,000 shares authorized; 75,014,308 and 73,808,200 shares issued, respectively | 750 | 738 |
Additional paid-in capital | 2,820,958 | 3,715,586 |
Accumulated other comprehensive income (loss) | (1,570) | 15,865 |
Accumulated deficit | (2,013,799) | (1,866,397) |
Treasury stock — 5,383,970 and 4,963,013 common shares, at cost, respectively | (72,429) | (68,532) |
Total Archrock stockholders’ equity | 733,910 | 1,797,260 |
Noncontrolling interest | 53,349 | 155,785 |
Total equity | 787,259 | 1,953,045 |
Total liabilities and equity | $ 2,706,763 | $ 4,926,839 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance (in dollars) | $ 3,343 | $ 2,286 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 75,014,308 | 73,808,200 |
Treasury stock, common shares | 5,383,970 | 4,963,013 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Total revenues | $ 998,108 | $ 959,153 | $ 862,772 |
Cost of sales (excluding depreciation and amortization expense): | |||
Selling, general and administrative | 131,919 | 132,651 | 118,851 |
Depreciation and amortization | 229,127 | 212,268 | 187,476 |
Long-lived asset impairment | 124,979 | 42,828 | 16,696 |
Restructuring and other charges | 4,745 | 5,394 | 0 |
Goodwill impairment | 3,738 | 0 | 0 |
Interest expense | 107,617 | 112,273 | 112,194 |
Debt extinguishment costs | 9,201 | 0 | 0 |
Other (income) expense, net | (2,079) | (5,475) | (22,535) |
Total costs and expenses | 1,104,293 | 1,004,332 | 883,660 |
Loss before income taxes | (106,185) | (45,179) | (20,888) |
Provision for (benefit from) income taxes | 53,189 | (28,066) | (17,840) |
Loss from continuing operations | (159,374) | (17,113) | (3,048) |
Income from discontinued operations, net of tax | 60,408 | 142,995 | 158,790 |
Net income (loss) | (98,966) | 125,882 | 155,742 |
Less: Net income attributable to the noncontrolling interest | (6,852) | (27,716) | (32,578) |
Net income (loss) attributable to Archrock stockholders | $ (105,818) | $ 98,166 | $ 123,164 |
Basic income (loss) per common share: | |||
Loss from continuing operations attributable to Archrock common stockholders (in dollars per share) | $ (2.44) | $ (0.68) | $ (0.55) |
Income from discontinued operations attributable to Archrock common stockholders (in dollars per share) | 0.89 | 2.15 | 2.46 |
Net income (loss) attributable to Archrock common stockholders (in dollars per share) | (1.55) | 1.47 | 1.91 |
Diluted income (loss) per common share: | |||
Loss from continuing operations attributable to Archrock common stockholders (in dollars per share) | (2.44) | (0.68) | (0.55) |
Income from discontinued operations attributable to Archrock common stockholders (in dollars per share) | 0.89 | 2.15 | 2.46 |
Net income (loss) attributable to Archrock common stockholders (in dollars per share) | $ (1.55) | $ 1.47 | $ 1.91 |
Weighted average common shares outstanding used in income (loss) per common share: | |||
Basic (in shares) | 68,433 | 66,234 | 64,454 |
Diluted (in shares) | 68,433 | 66,234 | 64,454 |
Dividends declared and paid per common share (in dollars per share) | $ 0.60 | $ 0.6 | $ 0 |
Contract Operations | |||
Revenues: | |||
Total revenues | $ 781,166 | $ 729,103 | $ 627,844 |
Cost of sales (excluding depreciation and amortization expense): | |||
Cost of sales (excluding depreciation and amortization expense) | 319,401 | 316,142 | 282,489 |
Aftermarket services | |||
Revenues: | |||
Total revenues | 216,942 | 230,050 | 234,928 |
Cost of sales (excluding depreciation and amortization expense): | |||
Cost of sales (excluding depreciation and amortization expense) | $ 175,645 | $ 188,251 | $ 188,489 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (98,966) | $ 125,882 | $ 155,742 |
Other comprehensive income (loss), net of tax: | |||
Derivative gain (loss), net of reclassifications to earnings | (3,465) | (3,366) | 5,207 |
Adjustments from changes in ownership of Partnership | (223) | 65 | (703) |
Amortization of terminated interest rate swaps | 1,990 | 2,944 | 2,713 |
Foreign currency translation adjustment | (16,776) | (14,648) | 4,531 |
Total other comprehensive income (loss) | (18,474) | (15,005) | 11,748 |
Comprehensive income (loss) | (117,440) | 110,877 | 167,490 |
Less: Comprehensive income attributable to the noncontrolling interest | (5,813) | (26,924) | (38,157) |
Comprehensive income (loss) attributable to Archrock stockholders | $ (123,253) | $ 83,953 | $ 129,333 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income(Loss) | Treasury Stock | Accumulated Deficit | Noncontrolling Interest |
Balance, value at Dec. 31, 2012 | $ 1,702,259 | $ 713 | $ 3,710,758 | $ 23,909 | $ (209,359) | $ (2,047,408) | $ 223,646 |
Balance (in shares) at Dec. 31, 2012 | 71,291,230 | (6,376,426) | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Treasury stock purchased, value | (4,539) | $ (4,539) | |||||
Treasury stock purchased (in shares) | (173,267) | ||||||
Options exercised, value | 8,321 | $ 4 | 8,317 | ||||
Options exercised (in shares) | 459,416 | ||||||
Shares issued in employee stock purchase plan, value | 1,632 | $ 1 | 1,631 | ||||
Shares issued in employee stock purchase plan (in shares) | 66,259 | ||||||
Stock-based compensation, net of forfeitures, value | 16,248 | $ 7 | 15,509 | 732 | |||
Stock-based compensation, net of forfeitures, shares | 683,868 | (32,375) | |||||
Income tax benefit from stock-based compensation expense | 1,782 | 1,782 | |||||
Adjustments from changes in ownership of Partnership | (17,665) | 31,573 | (49,238) | ||||
Cash distribution to noncontrolling unitholders of the Partnership | (61,959) | (61,959) | |||||
Other | (141) | (141) | |||||
Comprehensive income (loss): | |||||||
Net income (loss) | 155,742 | 123,164 | 32,578 | ||||
Derivatives gain (loss), net of reclassifications to earnings and tax | 5,207 | (372) | 5,579 | ||||
Adjustments from changes in ownership of Partnership | (703) | (703) | |||||
Amortization of terminated interest rate swaps, net of tax | 2,713 | 2,713 | |||||
Foreign currency translation adjustment | 4,531 | 4,531 | |||||
Balance, value at Dec. 31, 2013 | 1,813,428 | $ 725 | 3,769,429 | 30,078 | $ (213,898) | (1,924,244) | 151,338 |
Balance (in shares) at Dec. 31, 2013 | 72,500,773 | (6,582,068) | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Treasury stock purchased, value | (7,044) | $ (7,044) | |||||
Treasury stock purchased (in shares) | (172,232) | ||||||
Options exercised, value | 12,819 | $ 7 | 12,812 | ||||
Options exercised (in shares) | 729,685 | ||||||
Cash dividends | (40,319) | (40,319) | |||||
Shares issued in employee stock purchase plan, value | 1,812 | 1,812 | |||||
Shares issued in employee stock purchase plan (in shares) | 50,232 | ||||||
Stock-based compensation, net of forfeitures, value | 19,016 | $ 5 | 17,844 | 1,167 | |||
Stock-based compensation, net of forfeitures, shares | 466,011 | (42,213) | |||||
Income tax benefit from stock-based compensation expense | 6,586 | 6,586 | |||||
Adjustments from changes in ownership of Partnership | 125,733 | 74,521 | 51,212 | ||||
Cash distribution to noncontrolling unitholders of the Partnership | (74,856) | (74,856) | |||||
Redemption of convertible debt, value | (15,007) | $ 1 | (234,219) | $ 219,211 | |||
Redemption of convertible debt (in shares) | 61,499 | 6,711,587 | |||||
Shares acquired from exercise of call options, value | 0 | 89,407 | $ (89,407) | ||||
Shares acquired from exercise of call options (in shares) | (6,522,301) | ||||||
Shares issued for exercise of warrants, value | 0 | (22,606) | $ 22,606 | ||||
Shares issued for exercise of warrants (in shares) | 1,644,214 | ||||||
Comprehensive income (loss): | |||||||
Net income (loss) | 125,882 | 98,166 | 27,716 | ||||
Derivatives gain (loss), net of reclassifications to earnings and tax | (3,366) | (2,574) | (792) | ||||
Adjustments from changes in ownership of Partnership | 65 | 65 | |||||
Amortization of terminated interest rate swaps, net of tax | 2,944 | 2,944 | |||||
Foreign currency translation adjustment | (14,648) | (14,648) | |||||
Balance, value at Dec. 31, 2014 | 1,953,045 | $ 738 | 3,715,586 | 15,865 | $ (68,532) | (1,866,397) | 155,785 |
Balance (in shares) at Dec. 31, 2014 | 73,808,200 | (4,963,013) | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Treasury stock purchased, value | $ (3,985) | $ (3,985) | |||||
Treasury stock purchased (in shares) | (137,994) | (137,994) | |||||
Options exercised, value | $ 1,106 | $ 1 | 1,105 | ||||
Options exercised (in shares) | 89,759 | ||||||
Cash dividends | (41,584) | (41,584) | |||||
Shares issued in employee stock purchase plan, value | 910 | 910 | |||||
Shares issued in employee stock purchase plan (in shares) | 28,693 | ||||||
Stock-based compensation, net of forfeitures, value | 17,648 | $ 11 | 16,473 | 1,164 | |||
Stock-based compensation, net of forfeitures, shares | 1,087,656 | (289,335) | |||||
Income tax benefit from stock-based compensation expense | (478) | (478) | |||||
Adjustments from changes in ownership of Partnership | (9,972) | 17,662 | (27,634) | ||||
Net proceeds from the sale of Partnership units, net of tax | 724 | 724 | |||||
Cash distribution to noncontrolling unitholders of the Partnership | (81,779) | (81,779) | |||||
Shares issued for exercise of warrants, value | (88) | $ 88 | |||||
Shares issued for exercise of warrants (in shares) | 6,372 | ||||||
Spin-off of Exterran Corporation, value | (944,154) | (930,936) | (13,218) | ||||
Comprehensive income (loss): | |||||||
Net income (loss) | (98,966) | (105,818) | 6,852 | ||||
Derivatives gain (loss), net of reclassifications to earnings and tax | (3,465) | (2,426) | (1,039) | ||||
Adjustments from changes in ownership of Partnership | (223) | (223) | |||||
Amortization of terminated interest rate swaps, net of tax | 1,990 | 1,990 | |||||
Foreign currency translation adjustment | (3,558) | (3,558) | |||||
Balance, value at Dec. 31, 2015 | $ 787,259 | $ 750 | $ 2,820,958 | $ (1,570) | $ (72,429) | $ (2,013,799) | $ 53,349 |
Balance (in shares) at Dec. 31, 2015 | 75,014,308 | (5,383,970) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (98,966) | $ 125,882 | $ 155,742 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Depreciation and amortization | 229,127 | 212,268 | 187,476 |
Long-lived asset impairment | 124,979 | 42,828 | 16,696 |
Goodwill impairment | 3,738 | 0 | 0 |
Amortization of deferred financing costs | 6,429 | 5,994 | 7,690 |
Debt extinguishment costs | 9,201 | 0 | 0 |
Income from discontinued operations, net of tax | (60,408) | (142,995) | (158,790) |
Amortization of debt discount | 1,170 | 12,380 | 23,407 |
Provision for doubtful accounts | 3,163 | 1,824 | 494 |
Gain on sale of property, plant and equipment | (1,645) | (5,645) | (24,035) |
Amortization of terminated interest rate swaps | 3,063 | 4,530 | 4,174 |
Interest rate swaps | 603 | 397 | 334 |
Stock-based compensation expense | 10,029 | 8,998 | 6,418 |
Non-cash restructuring charges | 2,515 | 4,103 | 0 |
Deferred income tax provision | 49,991 | (33,586) | (19,437) |
Changes in assets and liabilities, net of acquisitions: | |||
Accounts receivable and notes | 9,023 | (37,109) | (13,755) |
Inventory | 16,276 | 29,640 | (29,941) |
Other current assets | 1,242 | (3,801) | 692 |
Accounts payable and other liabilities | (626) | (606) | (34,607) |
Deferred revenue | (2,401) | (1,099) | (2,104) |
Other | 15,971 | (7,986) | (356) |
Net cash provided by continuing operations | 322,474 | 216,017 | 120,098 |
Net cash provided by discontinued operations | 105,106 | 163,353 | 235,605 |
Net cash provided by operating activities | 427,580 | 379,370 | 355,703 |
Cash flows from investing activities: | |||
Capital expenditures | (256,142) | (383,841) | (291,530) |
Proceeds from sale of property, plant and equipment | 18,767 | 12,154 | 80,047 |
Payments for business acquisitions | 0 | (494,755) | 0 |
Net cash used in continuing operations | (237,375) | (866,442) | (211,483) |
Net cash provided by (used in) discontinued operations | (91,504) | (63,409) | 15,032 |
Net cash used in investing activities | (328,879) | (929,851) | (196,451) |
Cash flows from financing activities: | |||
Proceeds from borrowings of long-term debt | 1,483,258 | 2,240,299 | 2,108,037 |
Repayments of long-term debt | (1,921,758) | (1,727,500) | (2,195,750) |
Payments for debt issuance costs | (6,100) | (6,986) | (12,147) |
Payments above face value for redemption of convertible debt | 0 | (15,007) | 0 |
Payments above face value for redemption of senior notes | (6,346) | 0 | 0 |
Payments for settlement of interest rate swaps that include financing elements | (3,728) | (3,793) | (2,207) |
Net proceeds from the sale of Partnership units | 1,164 | 169,471 | 0 |
Proceeds from stock options exercised | 1,106 | 12,819 | 8,321 |
Proceeds from stock issued pursuant to our employee stock purchase plan | 910 | 1,812 | 1,632 |
Purchases of treasury stock | (3,985) | (7,044) | (4,539) |
Dividends to Archrock stockholders | (41,584) | (40,319) | 0 |
Stock-based compensation excess tax benefit | 1,227 | 6,151 | 969 |
Special distribution from Exterran Corporation | 532,578 | 0 | 0 |
Cash distributed to Exterran Corporation | (52,479) | 0 | 0 |
Distributions to noncontrolling partners in the Partnership | (81,779) | (74,856) | (61,959) |
Net cash provided by (used in) continuing operations | (97,516) | 555,047 | (157,643) |
Net cash provided by discontinued operations | 0 | 3,434 | 941 |
Net cash provided by (used in) financing activities | (97,516) | 558,481 | (156,702) |
Effect of exchange rate changes on cash and cash equivalents | 0 | (3,925) | (1,487) |
Net increase in cash and cash equivalents - total operations | 1,185 | 4,075 | 1,063 |
Less: Net increase in cash and cash equivalents - discontinued operations | 0 | 4,168 | 1,026 |
Cash and cash equivalents at beginning of period | 378 | 471 | 434 |
Cash and cash equivalents at end of period | 1,563 | 378 | 471 |
Supplemental disclosure of cash flow information: | |||
Interest paid, net of capitalized amounts | 101,728 | 87,407 | 78,548 |
Income taxes paid, net | 2,057 | 521 | 1,139 |
Supplemental disclosure of non-cash transactions: | |||
Accrued capital expenditures | 253 | 16,568 | 6,919 |
Treasury shares issued for redemption of convertible debt | 0 | 219,211 | 0 |
Shares acquired from exercise of call options | 0 | (89,407) | 0 |
Treasury shares issued for exercise of warrants | 88 | 22,606 | 0 |
Spin-off of Exterran Corporation | $ (13,218) | $ 0 | $ 0 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Archrock, Inc., formerly Exterran Holdings, Inc., together with its subsidiaries (“Archrock”, “our”, “we”, or “us”) is a pure play United States of America (“U.S.”) natural gas contract operations services business and the leading provider of natural gas compression services to customers in the oil and natural gas industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment in the U.S. We operate in two primary business lines: contract operations and aftermarket services. In our contract operations business line, we use our fleet of natural gas compression equipment to provide operations services to our customers. In our aftermarket services business line, we sell parts and components and provide operations, maintenance, overhaul and reconfiguration services to customers who own compression equipment. Principles of Consolidation The accompanying consolidated financial statements include Archrock and its wholly-owned and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. For financial reporting purposes, we consolidate the financial statements of Archrock Partners, L.P. (together with its subsidiaries, the “Partnership”) with those of our own and reflect its operations in our contract operations business segment. We control the Partnership through our ownership of its general partner. Public ownership of the Partnership’s net assets and earnings is presented as a component of noncontrolling interest in our consolidated financial statements. The borrowings of the Partnership are presented as part of our consolidated debt. However, we do not have any obligation for the payment of interest or repayment of borrowings incurred by the Partnership. Use of Estimates in the Consolidated Financial Statements The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses, as well as the disclosures of contingent assets and liabilities. Because of the inherent uncertainties in this process, actual future results could differ from those expected at the reporting date. Management believes that the estimates and assumptions used are reasonable. Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Revenue Recognition Contract operations revenue is recognized when earned, which generally occurs monthly when service is provided under our customer contracts. Aftermarket services revenue is recognized as products are delivered and title is transferred or services are performed for the customer. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. We believe that the credit risk in temporary cash investments is limited because our cash is held in accounts with multiple financial institutions. Trade accounts receivable are due from companies of varying size engaged principally in oil and natural gas activities throughout the U.S. We review the financial condition of customers prior to extending credit and generally do not obtain collateral for trade receivables. Payment terms are on a short-term basis and in accordance with industry practice. We consider this credit risk to be limited due to these companies’ financial resources, the nature of products and services we provide and the terms of our contract operations customer service agreements. We maintain allowances for doubtful accounts for estimated losses resulting from our customers’ inability to make required payments. The determination of the collectability of amounts due from our customers requires us to use estimates and make judgments regarding future events and trends, including monitoring our customers’ payment history and current creditworthiness to determine that collectability is reasonably assured, as well as consideration of the overall business climate in which our customers operate. Inherently, these uncertainties require us to make judgments and estimates regarding our customers’ ability to pay amounts due to us in order to determine the appropriate amount of valuation allowances required for doubtful accounts. We review the adequacy of our allowance for doubtful accounts quarterly. We determine the allowance needed based on historical write-off experience and by evaluating significant balances aged greater than 90 days individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. During the years ended December 31, 2015 , 2014 and 2013 , we recorded bad debt expense of $3.1 million , $1.7 million and a recovery of bad debt expense of $0.2 million , respectively. Inventory Inventory consists of parts used for maintenance of natural gas compression equipment. Inventory is stated at the lower of cost or market using the average-cost method. A reserve is recorded against inventory balances for estimated obsolescence based on specific identification and historical experience. Property, Plant and Equipment Property, plant and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives as follows: Compression equipment, facilities and other fleet assets 3 to 30 years Buildings 20 to 35 years Transportation, shop equipment and other 3 to 10 years Major improvements that extend the useful life of an asset are capitalized. Repairs and maintenance are expensed as incurred. When property, plant and equipment is sold, retired or otherwise disposed of, the gain or loss is recorded in other (income) expense, net. Interest is capitalized during the construction period on equipment and facilities that are constructed for use in our operations. The capitalized interest is included as part of the cost of the asset to which it relates and is amortized over the asset’s estimated useful life. Computer software Certain costs related to the development or purchase of internal-use software are capitalized and amortized over the estimated useful life of the software, which ranges from three to five years . Costs related to the preliminary project stage and the post-implementation/operation stage of an internal-use computer software development project are expensed as incurred. Long-Lived Assets We review long-lived assets, including property, plant and equipment and identifiable intangibles that are being amortized, for impairment whenever events or changes in circumstances, including the removal of compressor units from our active fleet, indicate that the carrying amount of an asset may not be recoverable. An impairment loss exists when estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. When necessary, an impairment loss is recognized and represents the excess of the asset’s carrying value as compared to its estimated fair value and is charged to the period in which the impairment occurred. Identifiable intangibles are amortized over the assets’ estimated useful lives. Goodwill Goodwill acquired in connection with business combinations represents the excess of consideration over the fair value of tangible and identifiable intangible net assets acquired. Certain assumptions and estimates are employed in determining the fair value of assets acquired and liabilities assumed, as well as in determining the allocation of goodwill to the appropriate reporting unit. We review the carrying value of our goodwill for potential impairment in the fourth quarter of every year, or whenever events or other circumstances indicate that we may not be able to recover the carrying amount. We first assess qualitative factors to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as the basis for determining whether it is necessary to perform the two-step goodwill impairment test. We may elect to perform the two-step goodwill impairment test without completing a qualitative assessment. If a two-step process goodwill impairment test is elected or required, the first step is to compare the implied fair value of our reporting unit with its carrying value (including the goodwill). If the implied fair value of the reporting unit is higher than the carrying value, no impairment is deemed to exist and no further testing is required. If, however, the implied fair value of the reporting unit is below the recorded carrying value, then a second step must be performed to determine the goodwill impairment required, if any. We calculate the implied fair value of the reporting unit goodwill by allocating the estimated fair value of the reporting unit to all of the assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss for that excess amount. Determining the fair value of a reporting unit under the first step of the goodwill impairment test is judgmental in nature and involves the use of significant estimates and assumptions, which have a significant impact on the fair value determined. We determine the fair value of our reporting unit using both the expected present value of future cash flows and a market approach. Each approach is weighted 50% in determining our calculated fair value. The present value of future cash flows is estimated using our most recent forecast and the weighted average cost of capital. The market approach uses a market multiple on the earnings before interest expense, provision for income taxes and depreciation and amortization expense of comparable peer companies. Significant estimates for our reporting unit included in our impairment analysis are our cash flow forecasts, our estimate of the market’s weighted average cost of capital and market multiples. Beginning in late 2014 and extending throughout 2015, the energy markets experienced a significant reduction in oil and natural gas prices which has had a significant impact on the financial performance and operating results of many oil and natural gas companies. Such declines accelerated in the fourth quarter of 2015, resulting in higher borrowing costs for companies and a substantial reduction in forecasted capital spending across the energy industry leading to lower projected growth rates over the short-term. Such declines impacted our future cash flow forecasts, our market capitalization, and the market capitalization of peer companies. We identified these conditions as a triggering event, which required us to perform a goodwill impairment test as of December 31, 2015. As of this filing, we have not completed the goodwill impairment analysis, due to the complexities involved in determining the implied fair value of goodwill in the second step of the goodwill impairment test. However, based on the work performed to date, we have concluded that an impairment is probable and can be reasonably estimated. Accordingly, we recorded a full impairment of our remaining goodwill in the fourth quarter of 2015 of $3.7 million which is presented in goodwill impairment on the consolidated statement of operations. We expect to finalize the goodwill impairment analysis during the first quarter of 2016 and any resulting adjustment to the impairment will be recorded at that time. Other (Income) Expense, Net Other (income) expense, net, is primarily comprised of gains and losses from the sale of used assets. Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the consolidated financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with the accounting standard on income taxes under a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Hedging and Use of Derivative Instruments We use derivative financial instruments to minimize the risks and/or costs associated with financial activities by managing our exposure to interest rate fluctuations on a portion of our debt obligations. We do not use derivative financial instruments for trading or other speculative purposes. We record interest rate swaps on the balance sheet as either derivative assets or derivative liabilities measured at their fair value. The fair value of our derivatives is estimated using a combination of the market and income approach based on forward London Interbank Offered Rate (“LIBOR”) curves. Changes in the fair value of the derivatives designated as cash flow hedges are deferred in accumulated other comprehensive income (loss), net of tax, to the extent the contracts are effective as hedges until settlement of the underlying hedged transaction. To qualify for hedge accounting treatment, we must formally document, designate and assess the effectiveness of the transactions. If the necessary correlation ceases to exist or if the anticipated transaction becomes improbable, we would discontinue hedge accounting and apply mark-to-market accounting. Amounts paid or received from interest rate swap agreements are charged or credited to interest expense and matched with the cash flows and interest expense of the debt being hedged, resulting in an adjustment to the effective interest rate. Income (Loss) Attributable to Archrock Common Stockholders Per Common Share Basic income (loss) attributable to Archrock common stockholders per common share is computed using the two-class method, which is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under the two-class method, basic income (loss) attributable to Archrock common stockholders per common share is determined by dividing income (loss) attributable to Archrock common stockholders after deducting amounts allocated to participating securities, by the weighted average number of common shares outstanding for the period. Participating securities include our unvested restricted stock and certain stock settled restricted stock units that have nonforfeitable rights to receive dividends or dividend equivalents, whether paid or unpaid. During periods of net loss, no effect is given to participating securities because they do not have a contractual obligation to participate in our losses. Diluted income (loss) attributable to Archrock common stockholders per common share is computed using the weighted average number of shares outstanding adjusted for the incremental common stock equivalents attributed to outstanding options and warrants to purchase common stock, restricted stock units, stock to be issued pursuant to our employee stock purchase plan and convertible senior notes, unless their effect would be anti-dilutive. The following table summarizes net income (loss) attributable to Archrock common stockholders used in the calculation of basic and diluted income (loss) per common share (in thousands): Years Ended December 31, 2015 2014 2013 Loss from continuing operations attributable to Archrock stockholders $ (166,226 ) $ (44,829 ) $ (35,626 ) Income from discontinued operations, net of tax 60,408 142,995 158,790 Net income (loss) attributable to Archrock shareholders (105,818 ) 98,166 123,164 Less: Net income attributable to participating securities (514 ) (495 ) — Net income (loss) attributable to Archrock common stockholders $ (106,332 ) $ 97,671 $ 123,164 The following table shows the potential shares of common stock that were included in computing diluted income (loss) attributable to Archrock common stockholders per common share (in thousands): Years Ended December 31, 2015 2014 2013 Weighted average common shares outstanding including participating securities 69,389 67,175 65,655 Less: Weighted average participating securities outstanding (956 ) (941 ) (1,201 ) Weighted average common shares outstanding — used in basic income (loss) per common share 68,433 66,234 64,454 Net dilutive potential common shares issuable: On exercise of options and vesting of restricted stock units * * * On settlement of employee stock purchase plan shares * * * On exercise of warrants * * * On conversion of 4.25% convertible senior notes due 2014 ** * * On conversion of 4.75% convertible senior notes due 2014 ** ** * Weighted average common shares outstanding — used in diluted income (loss) per common share 68,433 66,234 64,454 * Excluded from diluted income (loss) per common share as their inclusion would have been anti-dilutive. ** Not applicable as the debt instrument was not outstanding during the period. There were no adjustments to net income (loss) attributable to Archrock common stockholders for the diluted earnings (loss) per common share calculation during the years ended December 31, 2015 , 2014 and 2013 . The following table shows the potential shares of common stock issuable that were excluded from computing diluted income (loss) attributable to Archrock common stockholders per common share as their inclusion would have been anti-dilutive (in thousands): Years Ended December 31, 2015 2014 2013 Net dilutive potential common shares issuable: On exercise of options where exercise price is greater than average market value for the period 572 515 734 On exercise of options and vesting of restricted stock units 214 490 547 On settlement of employee stock purchase plan shares — 1 2 On exercise of warrants — 10,666 12,426 On conversion of 4.25% convertible senior notes due 2014 — 7,073 15,334 On conversion of 4.75% convertible senior notes due 2014 — — 119 Net dilutive potential common shares issuable 786 18,745 29,162 Comprehensive Income (Loss) Components of comprehensive income (loss) are net income (loss) and all changes in equity during a period except those resulting from transactions with owners. Our accumulated other comprehensive income (loss) consists of foreign currency translation adjustments, changes in the fair value of derivative financial instruments, net of tax, that are designated as cash flow hedges and to the extent the hedge is effective, amortization of terminated interest rate swaps and adjustments related to changes in our ownership of the Partnership. The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax and excluding noncontrolling interest, during the years ended December 31, 2013 , 2014 and 2015 : Derivatives Cash Flow Hedges Foreign Currency Translation Adjustment Total Accumulated other comprehensive income (loss), January 1, 2013 $ (2,984 ) $ 26,893 $ 23,909 Loss recognized in other comprehensive income (loss), net of tax (476 ) (1) (2,960 ) (3,436 ) Loss reclassified from accumulated other comprehensive income (loss), net of tax 2,114 (2) 7,491 (3) 9,605 Other comprehensive income attributable to Archrock stockholders 1,638 4,531 6,169 Accumulated other comprehensive income (loss), December 31, 2013 $ (1,346 ) $ 31,424 $ 30,078 Loss recognized in other comprehensive income (loss), net of tax (1,295 ) (4) (11,871 ) (13,166 ) (Gain) loss reclassified from accumulated other comprehensive income (loss), net of tax 1,730 (5) (2,777 ) (6) (1,047 ) Other comprehensive income (loss) attributable to Archrock stockholders 435 (14,648 ) (14,213 ) Accumulated other comprehensive income (loss), December 31, 2014 $ (911 ) $ 16,776 $ 15,865 Loss recognized in other comprehensive income (loss), net of tax (2,713 ) (7) (3,558 ) (6,271 ) (Gain) loss reclassified from accumulated other comprehensive income (loss), net of tax 2,054 (8) (13,218 ) (9) (11,164 ) Other comprehensive loss attributable to Archrock stockholders (659 ) (16,776 ) (17,435 ) Accumulated other comprehensive income (loss), December 31, 2015 $ (1,570 ) $ — $ (1,570 ) (1) During the year ended December 31, 2013 , we recognized a loss of $0.5 million and a tax benefit of $0.1 million , in other comprehensive income (loss), net of tax, related to changes in the fair value of derivative financial instruments. (2) During the year ended December 31, 2013 , we reclassified a $3.2 million loss to interest expense and a tax benefit of $1.1 million to provision for (benefit from) income taxes in our consolidated statements of operations from accumulated other comprehensive income (loss). (3) During the year ended December 31, 2013 , we reclassified losses of $7.5 million related to foreign currency translation adjustments to income from discontinued operations, net of tax in our consolidated statements of operations. These amounts represent cumulative foreign currency translation adjustments associated with Exterran Corporation’s contract operations and aftermarket services businesses in Canada and United Kingdom entity that were sold during the year ended December 31, 2013. (4) During the year ended December 31, 2014 , we recognized a loss of $2.0 million and a tax benefit of $0.7 million , in other comprehensive income (loss), net of tax, related to changes in the fair value of derivative financial instruments. (5) During the year ended December 31, 2014 , we reclassified a $2.6 million loss to interest expense and a tax benefit of $0.9 million to provision for (benefit from) income taxes in our consolidated statements of operations from accumulated other comprehensive income (loss). (6) During the year ended December 31, 2014 , we reclassified a gain of $2.8 million related to foreign currency translation adjustments to discontinued operations, net of tax, in our consolidated statements of operations. This amount represents cumulative foreign currency translation adjustments associated with Exterran Corporation’s contract operations and aftermarket services businesses in Australia, which were sold in December 2014 , that previously had been recognized in accumulated other comprehensive income (loss). (7) During the year ended December 31, 2015 , we recognized a loss of $4.1 million and a tax benefit of $1.4 million , in other comprehensive income (loss), net of tax, related to changes in the fair value of derivative financial instruments. (8) During the year ended December 31, 2015 , we reclassified a $3.2 million loss to interest expense and a tax benefit of $1.1 million to provision for (benefit from) income taxes in our consolidated statements of operations from accumulated other comprehensive income (loss). (9) During the year ended December 31, 2015 , we reclassified a loss of $13.2 million related to foreign currency translation adjustments to additional paid in capital, in our consolidated balance sheet. This amount represents cumulative foreign currency translation adjustments associated with the businesses of Exterran Corporation which were spun-off in November 2015, that previously had been recognized in accumulated other comprehensive income (loss). See Note 2 (‘Discontinued Operations”) for further discussion of the Spin-off. Financial Instruments Our financial instruments consist of cash, receivables, payables, interest rate swaps and debt. At December 31, 2015 and 2014 , the estimated fair values of these financial instruments approximated their carrying amounts as reflected in our consolidated balance sheets. The fair value of our fixed rate debt was estimated based on quoted market yields in inactive markets, which are Level 2 inputs. The fair value of our floating rate debt was estimated using a discounted cash flow analysis based on interest rates offered on loans with similar terms to borrowers of similar credit quality, which are Level 3 inputs. See Note 11 (“Fair Value Measurements”) for additional information regarding the fair value hierarchy. The following table summarizes the carrying amount and fair value of our debt as of December 31, 2015 and 2014 (in thousands): December 31, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Fixed rate debt $ 691,465 $ 524,000 $ 1,040,295 $ 960,000 Floating rate debt 897,000 897,000 985,500 986,000 Total debt $ 1,588,465 $ 1,421,000 $ 2,025,795 $ 1,946,000 GAAP requires that all derivative instruments (including certain derivative instruments embedded in other contracts) be recognized in the balance sheet at fair value and that changes in such fair values be recognized in earnings (loss) unless specific hedging criteria are met. Changes in the values of derivatives that meet these hedging criteria will ultimately offset related earnings effects of the hedged item pending recognition in earnings. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 2. Discontinued Operations Spin-off of Exterran Corporation On November 3, 2015 (the “Distribution Date”), we completed the spin-off (the “Spin-off”) of our international contract operations, international aftermarket services and global fabrication businesses into a standalone public company operating as Exterran Corporation. To effect the Spin-off, we distributed on the Distribution Date, on a pro rata basis, all of the shares of Exterran Corporation common stock to our stockholders as of October 27, 2015 (the “Record Date”). Archrock stockholders received one share of Exterran Corporation common stock for every two shares of our common stock held at the close of business on the Record Date. Upon the completion of the Spin-off, we were renamed “Archrock, Inc.” and, on November 4, 2015, the ticker symbol for our common stock on the New York Stock Exchange was changed to “AROC.” Following the completion of the Spin-off, we and Exterran Corporation are independent, publicly traded companies with separate public ownership, boards of directors and management, and we continue to own and operate the U.S. contract operations and U.S. aftermarket services businesses that we previously owned. Additionally, we continue to hold our interests in the Partnership. Effective on November 3, 2015, the Partnership was renamed “Archrock Partners, L.P.,” and, on November 4, 2015, the ticker symbol for its common units on the Nasdaq Global Select Market was changed to “APLP.” The Exterran Corporation business has been reported as discontinued operations, net of tax, in our consolidated statement of operations for all periods presented and was previously included in the international contract operations segment, fabrication segment and aftermarket services segment. Subsequent to the Spin-off, we no longer operate in the International contract operations, International aftermarket services or Fabrication segments. In order to effect the Spin-off and govern our relationship with Exterran Corporation after the Spin-off, we entered into several agreements with Exterran Corporation on November 3, 2015: • The separation and distribution agreement contains the key provisions relating to the separation of our business from Exterran Corporation’s business. The separation and distribution agreement identifies the assets and rights that were transferred, liabilities that were assumed or retained and contracts and related matters that were assigned to us or Exterran Corporation in the Spin-off and describes how these transfers, assumptions and assignments occurred. Pursuant to the separation and distribution agreement, on November 3, 2015, a subsidiary of Exterran Corporation transferred net proceeds of $532.6 million from borrowings under the Exterran Corporation credit facility to us to allow for the repayment of a portion of our indebtedness. On November 3, 2015, we terminated our former credit facility and repaid all borrowings and accrued and unpaid interest outstanding on the repayment date totaling $326.5 million . Our new capital structure includes a $350.0 million revolving credit facility that became available on November 3, 2015. On December 4, 2015, we redeemed for cash the $350.0 million aggregate principal amount of our 7.25% Notes at a redemption price equal to 101.813% of the principal amount thereof plus accrued but unpaid interest to the redemption date for $369.2 million . In addition, the separation and distribution agreement contains certain noncompetition provisions addressing restrictions for three years after the Spin-off on Exterran Corporation’s ability to provide contract operations and aftermarket services in the United States and on our ability to provide contract operations and aftermarket services outside of the United States and to provide products for sale worldwide that compete with Exterran Corporation’s current product sales business, subject to certain exceptions. The separation and distribution agreement also governs the treatment of aspects relating to indemnification, insurance, confidentiality and cooperation. Additionally, the separation and distribution agreement specifies our right to receive payments from a subsidiary of Exterran Corporation based on a notional amount corresponding to payments received by Exterran Corporation’s subsidiaries from PDVSA Gas in respect of the sale of Exterran Corporation’s subsidiaries’ and joint ventures’ previously nationalized assets promptly after such amounts are collected by Exterran Corporation’s subsidiaries. As of December 31, 2015, we have received payments, including annual charges, of approximately $493.0 million ( $50.0 million of which was used to repay insurance proceeds previously collected under the policy we maintained for the risk of expropriation). Pursuant to the separation and distribution agreement, Exterran Corporation or its subsidiary is due to receive the remaining principal amount as of December 31, 2015 of approximately $79.3 million in installments through the third quarter of 2016. As these remaining proceeds are received, Exterran Corporation intends to contribute to us an amount equal to such proceeds pursuant to the terms of the separation and distribution agreement. In January 2016, Exterran Corporation received an additional installment payment, including an annual charge, of $5.2 million from PDVSA Gas relating to its previously nationalized Venezuelan joint ventures’ assets and transferred cash to us equal to that amount in January 2016. The separation and distribution agreement also specifies our right to receive a $25.0 million cash payment from a subsidiary of Exterran Corporation promptly following the occurrence of a qualified capital raise as defined in the Exterran Corporation credit agreement. • The tax matters agreement governs the respective rights, responsibilities and obligations of Exterran Corporation and us with respect to tax liabilities and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and certain other matters regarding taxes. • The employee matters agreement governs the allocation of liabilities and responsibilities between us and Exterran Corporation relating to employee compensation and benefit plans and programs, including the treatment of retirement, health and welfare plans and equity and other incentive plans and awards. The agreement contains provisions regarding stock-based compensation. See Note 15 (“Common Stockholders’ Equity”) for additional information relating to the Archrock Stock Incentive Plan. • The transition services agreement sets forth the terms on which Exterran Corporation will provide to us, and we will provide to Exterran Corporation, on a temporary basis, certain services or functions that the companies historically have shared. Transition services provided to us by Exterran Corporation and to Exterran Corporation by us may include accounting, administrative, payroll, human resources, environmental health and safety, real estate, fleet, financial audit support, legal, tax, treasury and other support and corporate services, and each service will be provided at a predetermined rate set forth in the transition services agreement. Each service provided under the agreement will have its own duration generally less than one year but not to exceed two years, extension terms and monthly cost, and the transition services agreement will terminate upon cessation of all services provided thereunder. For the period from November 4, 2015 through December 31, 2015, we recorded other income of $0.4 million and selling, general and administrative expense of $0.6 million associated with the services under the transition services agreement. • The supply agreement sets forth the terms under which Exterran Corporation will provide manufactured equipment, including the design, engineering, manufacturing and sale of natural gas compression equipment, on an exclusive basis to us and the Partnership. This supply agreement will have an initial term of two years, subject to certain cancellation clauses, and is extendible for additional one-year terms by mutual agreement of the parties. Pursuant to the supply agreement, each of us and the Partnership will be required to purchase its requirements of newly-manufactured compression equipment from Exterran Corporation, subject to certain exceptions. For the period from November 4, 2015 through December 31, 2015, we purchased $44.4 million of newly-manufactured compression equipment from Exterran Corporation. • The storage agreements set forth the terms under which Exterran Corporation will provide each of us and the Partnership with storage space for equipment purchased under the supply agreement, as well as the terms under which we will provide storage space to Exterran Corporation for certain of its equipment. • The services agreements set forth the terms under which Exterran Corporation will provide us (or our customers on our behalf) with engineering, preservation and installation and commissioning services and we will provide Exterran Corporation (or its customers on its behalf) with make-ready, parts sales, preservation and installation and commissioning services. These services agreements will continue in effect until terminated by either party on 30 days’ written notice. Generally, the separation and distribution agreement provides for cross-indemnities principally designed to place financial responsibility for the obligations and liabilities of our business with us and financial responsibility for the obligations and liabilities of Exterran Corporation’s business with Exterran Corporation. Pursuant to the separation and distribution agreement, we and Exterran Corporation will generally release the other party from all claims arising prior to the Spin-off that relate to the other party’s business. Other discontinued operations activity In December 2013 , we abandoned our contract water treatment business as part of our continued emphasis on simplification and focus on our core businesses. The abandonment of this business meets the criteria established for recognition as discontinued operations under GAAP. Therefore, our contract water treatment business has been reported as discontinued operations, net of tax, in our consolidated statement of operations. This business was previously included in our contract operations business segment. The following table summarizes the operating results of discontinued operations (in thousands): Years Ended December 31, 2015 2014 2013 Exterran Corporation (1) Contract Treatment Business Total Exterran Corporation Contract Treatment Business Total Exterran Corporation Contract Treatment Business Total Revenue $ 1,424,184 $ — $ 1,424,184 $ 1,940,585 $ — $ 1,940,585 $ 2,297,632 $ 3,425 $ 2,301,057 Cost of sales (excluding depreciation and amortization expense) 1,017,912 222 1,018,134 1,364,051 479 1,364,530 1,726,420 3,015 1,729,435 Selling, general and administrative 171,912 — 171,912 245,103 30 245,133 239,322 337 239,659 Depreciation and amortization 124,321 — 124,321 173,803 — 173,803 140,029 — 140,029 Long-lived asset impairment 14,264 — 14,264 3,851 319 4,170 11,941 2,355 14,296 Restructuring charges 43,884 — 43,884 2,159 — 2,159 — — — Interest expense 1,578 — 1,578 1,905 — 1,905 3,551 — 3,551 Equity in income of non-consolidated affiliates (15,152 ) — (15,152 ) (14,553 ) — (14,553 ) (19,000 ) — (19,000 ) Other (income) loss, net (2) (23,782 ) — (23,782 ) (65,976 ) (27 ) (66,003 ) (68,115 ) 1,002 (67,113 ) Income (loss) from discontinued operations before income taxes 89,247 (222 ) 89,025 230,242 (801 ) 229,441 263,484 (3,284 ) 260,200 Provision for (benefit from) income taxes 28,705 (88 ) 28,617 86,723 (277 ) 86,446 102,559 (1,149 ) 101,410 Income (loss) from discontinued operations, net of tax $ 60,542 $ (134 ) $ 60,408 $ 143,519 $ (524 ) $ 142,995 $ 160,925 $ (2,135 ) $ 158,790 (1) Includes the results of operations of Exterran Corporation and costs directly attributable to the Spin-off. (2) Includes income from discontinued operations, net of tax, related to previously discontinued Venezuela and Canada operations of $56.8 million, $73.2 million, and $66.1 million for the year ended December 31, 2015, 2014, and 2013, respectively. The following table summarizes the balance sheet data for discontinued operations (in thousands): December 31, 2015 December 31, 2014 Exterran Corporation Contract Water Treatment Business Total Exterran Corporation Contract Water Treatment Business Total Cash and cash equivalents $ — $ — $ — $ 39,792 $ — $ 39,792 Restricted cash — — — 1,490 — 1,490 Accounts receivable — — — 398,072 69 398,141 Inventory — — — 257,785 — 257,785 Costs and estimated earnings in excess of billings on uncompleted contracts — — — 120,938 — 120,938 Other current assets 420 — 420 54,012 — 54,012 Total current assets associated with discontinued operations 420 — 420 872,089 69 872,158 Property, plant and equipment — — — 954,811 — 954,811 Intangibles and other assets, net 5,714 — 5,714 238,767 — 238,767 Deferred income taxes — 15,486 15,486 — 17,469 17,469 Total assets associated with discontinued operations $ 6,134 $ 15,486 $ 21,620 $ 2,065,667 $ 17,538 $ 2,083,205 Accounts payable $ — $ — $ — $ 162,040 $ 1 $ 162,041 Accrued liabilities — — — 169,066 727 169,793 Deferred income taxes 420 — 420 — — — Deferred revenue — — — 64,820 — 64,820 Billings on uncompleted contracts in excess of costs and estimated earnings — — — 76,277 — 76,277 Total current liabilities associated with discontinued operations 420 — 420 472,203 728 472,931 Long-term debt — — — 1,107 — 1,107 Deferred income taxes 5,714 — 5,714 39,100 — 39,100 Other long-term liabilities — — — 68,876 — 68,876 Total liabilities associated with discontinued operations $ 6,134 $ — $ 6,134 $ 581,286 $ 728 $ 582,014 |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Acquisitions | 3. Business Acquisitions August 2014 MidCon Acquisition On August 8, 2014, the Partnership completed an acquisition of natural gas compression assets, including a fleet of 162 compressor units, comprising approximately 110,000 horsepower from MidCon Compression, L.L.C. (“MidCon”) for $130.1 million . The purchase price was funded with borrowings under the Partnership’s revolving credit facility. The majority of the horsepower acquired is utilized under a five -year contract operations services agreement with BHP Billiton Petroleum (“BHP Billiton”), which expires in March 2019, to provide compression services. In connection with the acquisition, the contract operations services agreement with BHP Billiton was assigned to the Partnership effective as of the closing. During the year ended December 31, 2014 , the Partnership incurred transaction costs of approximately $1.0 million related to this acquisition, which is reflected in other (income) expense, net, in our consolidated statements of operations. In accordance with the terms of the purchase and sale agreement between the Partnership and MidCon relating to this acquisition, the Partnership directed MidCon to sell a tract of real property and the facility located thereon, a fleet of vehicles, personal property and parts inventory to our wholly-owned subsidiary Archrock Services, L.P. (“ASLP”), an indirect parent company of the Partnership, for $4.1 million . The assets acquired by ASLP are used in conjunction with the compression units the Partnership acquired from MidCon to provide compression services. The acquisition of the assets by the Partnership and ASLP from MidCon is referred to as the “August 2014 MidCon Acquisition.” We accounted for the August 2014 MidCon Acquisition using the acquisition method, which requires, among other things, assets acquired and liabilities assumed to be recorded at their fair value on the acquisition date. The excess of the consideration transferred over those fair values is recorded as goodwill. The following table summarizes the purchase price allocation based on estimated fair values of the acquired assets and liabilities as of the acquisition date (in thousands): Fair Value Inventory $ 2,302 Property, plant and equipment 80,154 Goodwill 3,738 Intangible assets 48,373 Current liabilities (372 ) Purchase price $ 134,195 Property, Plant and Equipment, Goodwill and Intangible Assets Acquired Property, plant and equipment is primarily comprised of compression equipment that will be depreciated on a straight-line basis over an estimated average remaining useful life of 24 years . Goodwill of $3.7 million resulting from the acquisition is attributable to the expansion of our services in the region and was assigned to our contract operations segment. The goodwill recorded is considered to have an indefinite life and is reviewed annually for impairment or more frequently if indicators of impairment exist. At December 31, 2015, we recorded a full impairment of our goodwill. See Note 6 (“Goodwill”) for further discussion of goodwill impairment. The amount of finite life intangible assets, and their associated average useful lives, was determined based on the period which the assets are expected to contribute directly or indirectly to our future cash flows, and consisted of the following: Amount (In thousands) Average Useful Life Customer related $ 21,590 25 years Contract based 26,783 5 years Total acquired identifiable intangible assets $ 48,373 The results of operations attributable to the assets and liabilities acquired in the August 2014 MidCon Acquisition have been included in our consolidated financial statements as part of our contract operations segment since the date of acquisition. April 2014 MidCon Acquisition On April 10, 2014, the Partnership completed an acquisition of natural gas compression assets, including a fleet of 337 compressor units, comprising approximately 444,000 horsepower from MidCon for $352.9 million . The purchase price was funded with the net proceeds from the Partnership’s public sale of 6.2 million common units and a portion of the net proceeds from the Partnership’s issuance of $350.0 million aggregate principal amount of 6% senior notes due October 2022 (the “Partnership 2014 Notes”). The compressor units were previously used by MidCon to provide compression services to a subsidiary of Access Midstream Partners LP (“Access”). Effective as of the closing of the acquisition, the Partnership and Access entered into a seven -year contract operations services agreement under which the Partnership provides compression services to Williams Partners, L.P. (formerly Access). During the year ended December 31, 2014 , the Partnership incurred transaction costs of approximately $1.5 million related to this acquisition, which is reflected in other (income) expense, net, in our consolidated statements of operations. In accordance with the terms of the purchase and sale agreement between the Partnership and MidCon relating to this acquisition, the Partnership directed MidCon to sell a tract of real property and the facility located thereon, a fleet of vehicles, personal property and parts inventory to our wholly-owned subsidiary ASLP, an indirect parent company of the Partnership, for $7.7 million . The assets acquired by ASLP are used in conjunction with the compression units the Partnership acquired from MidCon to provide compression services. The acquisition of the assets by the Partnership and ASLP from MidCon is referred to as the “April 2014 MidCon Acquisition.” We accounted for the April 2014 MidCon Acquisition using the acquisition method, which requires, among other things, assets acquired and liabilities assumed to be recorded at their fair value on the acquisition date. The following table summarizes the purchase price allocation based on estimated fair values of the acquired assets and liabilities as of the acquisition date (in thousands): Fair Value Inventory $ 4,357 Property, plant and equipment 314,556 Intangible assets 42,474 Current liabilities (827 ) Purchase price $ 360,560 Property, Plant and Equipment and Intangible Assets Acquired Property, plant and equipment is primarily comprised of compression equipment that will be depreciated on a straight-line basis over an estimated average remaining useful life of 25 years . The amount of finite life intangible assets, and their associated average useful lives, was determined based on the period which the assets are expected to contribute directly or indirectly to our future cash flows, and consisted of the following: Amount (In thousands) Average Useful Life Customer related $ 4,701 25 years Contract based 37,773 7 years Total acquired identifiable intangible assets $ 42,474 The results of operations attributable to the assets and liabilities acquired in the April 2014 MidCon Acquisition have been included in our consolidated financial statements as part of our contract operations segment since the date of acquisition. Unaudited Pro Forma Financial Information The unaudited Pro forma financial information for the years ended December 31, 2014 and 2013 has been included to give effect to the additional assets acquired in the August 2014 MidCon Acquisition and the April 2014 MidCon Acquisition. The August 2014 MidCon Acquisition and the April 2014 MidCon Acquisition are presented in the unaudited pro forma financial information as though these transactions occurred as of January 1, 2013. The unaudited pro forma financial information reflects the following transactions: As related to the August 2014 MidCon Acquisition: • the Partnership’s acquisition in August 2014 of natural gas compression assets and identifiable intangible assets from MidCon; • our wholly-owned subsidiary ASLP’s, an indirect parent company of the Partnership, acquisition from MidCon, as directed by the Partnership, of a tract of real property and the facility located thereon, a fleet of vehicles, personal property and parts inventory; • the Partnership’s borrowings under its revolving credit facility to pay $130.1 million to MidCon for the August 2014 MidCon Acquisition; and • our borrowings under our revolving credit facility to pay $4.1 million to MidCon for assets acquired by ASLP in the August 2014 MidCon Acquisition. As related to the April 2014 MidCon Acquisition: • the Partnership’s acquisition in April 2014 of natural gas compression assets and identifiable intangible assets from MidCon; • our wholly-owned subsidiary ASLP’s, an indirect parent company of the Partnership, acquisition from MidCon, as directed by the Partnership, of a tract of real property and the facility located thereon, a fleet of vehicles, personal property and parts inventory; • the Partnership’s issuance of 6.2 million common units to the public and approximately 126,000 general partner units to us; • the Partnership’s issuance of $350.0 million aggregate principal amount of the Partnership 2014 Notes; • the Partnership’s use of proceeds from the issuance of common units, general partner units and the Partnership 2014 Notes to pay $352.9 million to MidCon for the April 2014 MidCon Acquisition and to pay down $157.5 million on its revolving credit facility; and • our borrowings under our revolving credit facility to pay $7.7 million to MidCon for assets acquired by one of our wholly-owned subsidiaries in the April 2014 MidCon Acquisition. The unaudited pro forma financial information below is presented for informational purposes only and is not necessarily indicative of our results of operations that would have occurred had each transaction been consummated at the beginning of the period presented, nor is it necessarily indicative of future results. The unaudited pro forma financial information below was derived by adjusting our historical financial statements. The following table shows unaudited pro forma financial information for the years ended December 31, 2014 and 2013 (in thousands, except per share amounts): Years Ended December 31, 2014 2013 Revenue $ 996,961 $ 974,518 Net income attributable to Archrock common stockholders $ 100,208 $ 127,028 Basic net income per common share attributable to Archrock common stockholders $ 1.51 $ 1.97 Diluted net income per common share attributable to Archrock common stockholders $ 1.51 $ 1.97 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | 4. Inventory Inventory consisted of the following amounts (in thousands): December 31, 2015 2014 Parts and supplies $ 109,634 $ 120,646 Work in progress 19,777 25,140 Inventory $ 129,411 $ 145,786 During the years ended December 31, 2015 , 2014 and 2013, we recorded $4.3 million , $8.9 million and $3.9 million , respectively, in inventory write-downs and reserves for inventory which was obsolete, excess or carried at a price above market value. As of December 31, 2015 and 2014 , we had inventory reserves of $9.8 million and $11.5 million , respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | 5. Property, Plant and Equipment, net Property, plant and equipment, net, consisted of the following (in thousands): December 31, 2015 2014 Compression equipment, facilities and other fleet assets $ 3,292,364 $ 3,401,594 Land and buildings 53,175 51,391 Transportation and shop equipment 108,998 103,207 Other 109,291 84,382 3,563,828 3,640,574 Accumulated depreciation (1,296,040 ) (1,268,493 ) Property, plant and equipment, net $ 2,267,788 $ 2,372,081 Depreciation expense was $212.0 million , $200.0 million and $180.7 million during the years ended December 31, 2015 , 2014 and 2013 , respectively. Assets under construction of $71.1 million and $82.6 million were primarily included in compression equipment, facilities and other fleet assets at December 31, 2015 and 2014 , respectively. We capitalized $0.3 million , $0.2 million and $0.3 million of interest related to construction in process during the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 6. Goodwill Goodwill acquired in connection with business combinations represents the excess of consideration over the fair value of tangible and identifiable intangible net assets acquired. Certain assumptions and estimates are employed in determining the fair value of assets acquired and liabilities assumed, as well as in determining the allocation of goodwill to the appropriate reporting unit. We review the carrying value of our goodwill for potential impairment in the fourth quarter of every year, or whenever events or other circumstances indicate that we may not be able to recover the carrying amount. We first assess qualitative factors to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as the basis for determining whether it is necessary to perform the two-step goodwill impairment test. We may elect to perform the two-step goodwill impairment test without completing a qualitative assessment. If a two-step process goodwill impairment test is elected or required, the first step is to compare the implied fair value of our reporting unit with its carrying value (including the goodwill). If the implied fair value of the reporting unit is higher than the carrying value, no impairment is deemed to exist and no further testing is required. If, however, the implied fair value of the reporting unit is below the recorded carrying value, then a second step must be performed to determine the goodwill impairment required, if any. We calculate the implied fair value of the reporting unit goodwill by allocating the estimated fair value of the reporting unit to all of the assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss for that excess amount. Determining the fair value of a reporting unit under the first step of the goodwill impairment test is judgmental in nature and involves the use of significant estimates and assumptions, which have a significant impact on the fair value determined. We determine the fair value of our reporting unit using both the expected present value of future cash flows and a market approach. Each approach is weighted 50% in determining our calculated fair value. The present value of future cash flows is estimated using our most recent forecast and the weighted average cost of capital. The market approach uses a market multiple on earnings before interest expense, provision for income taxes and depreciation and amortization expense of comparable peer companies. Significant estimates for our reporting unit included in our impairment analysis are our cash flow forecasts, our estimate of the market’s weighted average cost of capital and market multiples. Beginning in late 2014 and extending throughout 2015, the energy markets experienced a significant reduction in oil and natural gas prices which has had a significant impact on the financial performance and operating results of many oil and natural gas companies. Such declines accelerated in the fourth quarter of 2015, resulting in higher borrowing costs for companies and a substantial reduction in forecasted capital spending across the energy industry leading to lower projected growth rates over the short-term. Such declines impacted our future cash flow forecasts, our market capitalization, and the market capitalization of peer companies. We identified these conditions as a triggering event, which required us to perform a goodwill impairment test as of December 31, 2015. As of this filing, we have not completed the goodwill impairment analysis, due to the complexities involved in determining the implied fair value of goodwill in the second step of the goodwill impairment test. However, based on the work performed to date, we have concluded that an impairment is probable and can be reasonably estimated. Accordingly, we recorded a full impairment of our remaining goodwill in the fourth quarter of 2015 of $3.7 million . We expect to finalize the goodwill impairment analysis during the first quarter of 2016 and any resulting adjustment to the impairment will be recorded at that time. For the years ended December 31, 2014 and 2013 , we determined that there was no impairment of goodwill. For the year ended December 31, 2013 , there were no additions or acquisitions that resulted in the recognition of goodwill. During the year ended December 31, 2014 , we acquired $3.7 million in goodwill associated with the August 2014 MidCon Acquisition. The following table presents the change in the carrying value of goodwill for the year ended December 31, 2015 (in thousands): December 31, 2015 Goodwill as of January 1, 2015 3,738 Goodwill acquired during year — Impairment losses (3,738 ) Goodwill as of December 31, 2015 — |
Intangible and Other Assets, ne
Intangible and Other Assets, net | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible and Other Assets, net | 7. Intangible and Other Assets, net Intangible and other assets, net, consisted of the following (in thousands): December 31, 2015 2014 Deferred financing costs, net $ 20,612 $ 23,795 Intangible assets, net 100,822 117,915 Other 11,038 12,443 Intangibles and other assets, net $ 132,472 $ 154,153 Intangible assets and deferred financing costs consisted of the following (in thousands): December 31, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Deferred financing costs $ 40,066 $ (19,454 ) $ 41,790 $ (17,995 ) Marketing related (5 year life) 330 (312 ) 330 (268 ) Customer related (10-25 year life) 107,008 (53,957 ) 107,008 (47,859 ) Contract based (5-7 year life) 74,336 (26,583 ) 74,336 (15,632 ) Intangible assets and deferred financing costs $ 221,740 $ (100,306 ) $ 223,464 $ (81,754 ) Amortization of deferred financing costs totaled $6.4 million , $6.0 million and $7.7 million in 2015 , 2014 and 2013 , respectively, and was recorded to interest expense in our consolidated statements of operations. As discussed further in Note 9 (“Long-Term Debt”), $2.9 million of deferred financing costs were expensed in 2015 and are reflected in debt extinguishment costs in our consolidated statements of operations. Amortization of intangible assets totaled $17.1 million , $12.3 million and $6.8 million during the years ended December 31, 2015 , 2014 and 2013 , respectively. Estimated future intangible amortization expense is as follows (in thousands): 2016 $ 16,618 2017 16,091 2018 15,673 2019 13,047 2020 9,562 Thereafter 29,831 Total $ 100,822 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities Accrued liabilities consisted of the following (in thousands): December 31, 2015 2014 Accrued salaries and other benefits $ 27,066 $ 39,182 Accrued income and other taxes 15,006 20,807 Accrued interest 12,675 14,286 Interest rate swaps fair value 4,608 4,958 Accrued other liabilities 20,698 11,949 Accrued liabilities $ 80,053 $ 91,182 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. Long-Term Debt Long-term debt consisted of the following (in thousands): December 31, 2015 2014 Revolving credit facility due July 2016 $ — $ 375,500 Revolving credit facility due November 2020 166,500 — Partnership’s revolving credit facility due May 2018 580,500 460,000 Partnership’s term loan facility due May 2018 150,000 150,000 Partnership’s 6% senior notes due April 2021 (presented net of the unamortized discount of $3.9 million and $4.5 million, respectively) 346,138 345,528 Partnership’s 6% senior notes due October 2022 (presented net of the unamortized discount of $4.7 million and $5.2 million, respectively) 345,327 344,767 7.25% senior notes due December 2018 — 350,000 Long-term debt $ 1,588,465 $ 2,025,795 Archrock Revolving Credit Facility In October 2015, in connection with the Spin-off, we entered into a five -year, $350.0 million revolving credit facility (the “Credit Facility”). Availability under the Credit Facility was subject to the satisfaction of certain conditions precedent, including (i) the payoff and termination of our former credit facility and (ii) the consummation of the Spin-off on or before January 4, 2016 (the date on which those conditions are satisfied is referred to as the “Archrock Initial Availability Date”). As a result of the completion of the Spin-off, the Archrock Initial Availability Date was November 3, 2015 and the Credit Facility will mature in November 2020. We incurred approximately $3.7 million in transaction costs related to the Credit Facility during the year ended December 31, 2015 . These costs are included in Intangibles and other assets, net and will be amortized over the term of the facility. On November 3, 2015, we terminated our former credit facility and repaid $326.5 million in borrowings and accrued and unpaid interest outstanding on the repayment date. As a result of the modification, we wrote-off $0.4 million related to unamortized deferred financing costs associated with the former credit facility in the fourth quarter of 2015, which is included in interest expense in our consolidated statements of operations. As of December 31, 2015, we had $166.5 million in outstanding borrowings and $10.0 million in outstanding letters of credit under the Credit Facility. At December 31, 2015, taking into account guarantees through letters of credit, we had undrawn and available capacity of $173.5 million under the Credit Facility. Borrowings under the Credit Facility bear interest at a base rate or LIBOR, at our option, plus an applicable margin. Depending on our Total Leverage Ratio (as defined in the credit agreement), the applicable margin for revolving loans varies (i) in the case of LIBOR loans, from 1.75% to 2.75% and (ii) in the case of base rate loans, from 0.75% to 1.75% . The base rate is the highest of the prime rate announced by Wells Fargo Bank, National Association, the Federal Funds Rate plus 0.5% and one-month LIBOR plus 1.0% . At December 31, 2015, all amounts outstanding under the Credit Facility were LIBOR loans and the applicable margin was 1.75% . The weighted average annual interest rate at both December 31, 2015 and 2014 on the outstanding balance under the Credit Facility was 2.1% and 1.7% , respectively. We and our Significant Domestic Subsidiaries (as defined in the credit agreement) guarantee the debt under the Credit Facility. Borrowings under the Credit Facility are secured by substantially all of the personal property assets and certain real property assets of us and our Significant Domestic Subsidiaries, including all of the equity interests of our U.S. subsidiaries (other than certain excluded subsidiaries). The Partnership does not guarantee the debt under the Credit Facility, its assets are not collateral under the Credit Facility and the general partner units in the Partnership are not pledged under the Credit Facility. Subject to certain conditions, at our request, and with the approval of the lenders, the aggregate commitments under the Credit Facility may be increased by up to an additional $100 million . The Credit Facility contains various covenants with which we or certain of our subsidiaries must comply, including, but not limited to, limitations on the incurrence of indebtedness, investments, liens on assets, repurchasing equity and making distributions, transactions with affiliates, mergers, consolidations, dispositions of assets and other provisions customary in similar types of agreements. We are also subject to financial covenants, including a ratio of earnings before interest, taxes, depreciation and amortization (“EBITDA”) (as defined in the credit agreement) to Total Interest Expense (as defined in the credit agreement) of not less than 2.25 to 1.0 and a ratio of consolidated Total Debt (as defined in the credit agreement) to EBITDA of not greater than 4.25 to 1.0 (subject to a temporary increase to 4.75 to 1.0 for any quarter during which an acquisition meeting certain thresholds is completed and for the following two quarters after the acquisition closes). The Partnership Revolving Credit Facility and Term Loan In November 2010, the Partnership entered into an amendment and restatement of its senior secured credit agreement (the “Partnership Credit Agreement”) to provide for a five -year $550.0 million senior secured credit facility, consisting of a $400.0 million revolving credit facility and a $150.0 million term loan facility. The revolving borrowing capacity under this facility was increased to $550.0 million in March 2011 and to $750.0 million in March 2012. In March 2013, the Partnership Credit Agreement was amended to reduce the borrowing capacity under its revolving credit facility to $650.0 million and extend the maturity date of the term loan and revolving credit facilities to May 2018. As a result of the March 2013 amendment, we expensed $0.7 million of unamortized deferred financing costs, which is reflected in interest expense in our consolidated statements of operations. In February 2015, the Partnership amended the Partnership Credit Agreement, which among other things, increased the borrowing capacity under its revolving credit facility by $250.0 million to $900.0 million . During the years ended December 31, 2015 and 2014 the Partnership incurred transaction costs of approximately $1.3 million and $4.3 million , respectively, related to the amendments to the Partnership Credit Agreement. These costs were included in intangible and other assets, net, and are being amortized over the terms of the facilities. As of December 31, 2015 , the Partnership had undrawn and available capacity of $319.5 million under its revolving credit facility. The Partnership’s revolving credit and term loan facilities bear interest at a base rate or LIBOR, at the Partnership’s option, plus an applicable margin. Depending on the Partnership’s leverage ratio, the applicable margin for the revolving and term loans varies (i) in the case of LIBOR loans, from 2.0% to 3.0% and (ii) in the case of base rate loans, from 1.0% to 2.0% . The base rate is the highest of the prime rate announced by Wells Fargo Bank, National Association, the Federal Funds Effective Rate plus 0.5% and one-month LIBOR plus 1.0% . At December 31, 2015 , all amounts outstanding under these facilities were LIBOR loans and the applicable margin was 2.5% . The weighted average annual interest rate on the outstanding balance of these facilities at December 31, 2015 and 2014 , excluding the effect of interest rate swaps, was 2.8% and 2.7% , respectively. Borrowings under the Partnership Credit Agreement are secured by substantially all of the U.S. personal property assets of the Partnership and its Significant Domestic Subsidiaries (as defined in the Partnership Credit Agreement), including all of the membership interests of the Partnership’s Domestic Subsidiaries (as defined in the Partnership Credit Agreement). As of December 31, 2015 , subject to certain conditions, at our request, and with the approval of the lenders, the aggregate commitments under the Partnership Credit Agreement could be increased by up to an additional $50 million . The Partnership Credit Agreement contains various covenants with which the Partnership must comply, including, but not limited to, restrictions on the use of proceeds from borrowings and limitations on the Partnership’s ability to incur additional indebtedness, engage in transactions with affiliates, merge or consolidate, sell assets, make certain investments and acquisitions, make loans, grant liens, repurchase equity and pay dividends and distributions. The Partnership Credit Agreement also contains various covenants requiring mandatory prepayments from the net cash proceeds of certain asset transfers. The Partnership must maintain various consolidated financial ratios, including a ratio of EBITDA (as defined in the Partnership Credit Agreement) to Total Interest Expense (as defined in the Partnership Credit Agreement) of not less than 2.75 to 1.0, a ratio of Total Debt (as defined in the Partnership Credit Agreement) to EBITDA of not greater than 5.25 to 1.0 (subject to a temporary increase to 5.5 to 1.0 for any quarter during which an acquisition meeting certain thresholds is completed and for the following two quarters after the acquisition closes) and a ratio of Senior Secured Debt (as defined in the Partnership Credit Agreement) to EBITDA of not greater than 4.0 to 1.0. Because the Partnership completed an acquisition meeting certain thresholds during the second quarter of 2015 (see Note 19 (“Transactions Related to the Partnership”) for further discussion), the Partnership’s Total Debt to EBITDA ratio threshold was temporarily increased to 5.5 to 1.0 during the quarter ended June 30, 2015 and continued at that level through December 31, 2015, reverting to 5.25 to 1.0 for the quarter ending March 31, 2016 and subsequent quarters. A material adverse effect with respect to the Partnership’s assets, liabilities, financial condition, business or operations that, taken as a whole, impacts the Partnership’s ability to perform its obligations under the Partnership Credit Agreement, could lead to a default under that agreement. A default under one of the Partnership’s debt agreements would trigger cross-default provisions under the Partnership’s other debt agreements, which would accelerate the Partnership’s obligation to repay its indebtedness under those agreements. As of December 31, 2015 , the Partnership was in compliance with all financial covenants under the Partnership Credit Agreement. The Partnership 6% Senior Notes Due April 2021 In March 2013, the Partnership issued $350.0 million aggregate principal amount of 6% senior notes due April 2021 (the “Partnership 2013 Notes”). The Partnership used the net proceeds of $336.9 million , after original issuance discount and issuance costs, to repay borrowings outstanding under its revolving credit facility. The Partnership incurred $7.8 million in transaction costs related to this issuance. These costs were included in intangible and other assets, net, and are being amortized to interest expense over the term of the Partnership 2013 Notes. The Partnership 2013 Notes were issued at an original issuance discount of $5.5 million , which is being amortized using the effective interest method at an interest rate of 6.25% over their term. During the years ended December 31, 2015 , 2014 and 2013 , the Partnership recognized $0.6 million , $0.5 million and $0.4 million , respectively, of interest expense related to amortization of the debt discount. In January 2014, holders of the Partnership 2013 Notes exchanged their Partnership 2013 Notes for registered notes with the same terms. The Partnership 2013 Notes are guaranteed on a senior unsecured basis by all of the Partnership’s existing subsidiaries (other than Archrock Partners Finance Corp. (“APLP Finance Corp.”), which is a co-issuer of the Partnership 2013 Notes) and certain of the Partnership’s future subsidiaries. The Partnership 2013 Notes and the guarantees, respectively, are the Partnership’s and the guarantors’ general unsecured senior obligations, rank equally in right of payment with all of the Partnership’s and the guarantors’ other senior obligations, and are effectively subordinated to all of the Partnership’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such indebtedness. In addition, the Partnership 2013 Notes and guarantees are effectively subordinated to all existing and future indebtedness and other liabilities of any future non-guarantor subsidiaries. Prior to April 1, 2017, the Partnership may redeem all or a part of the Partnership 2013 Notes at a redemption price equal to the sum of (i) the principal amount thereof, plus (ii) a make-whole premium at the redemption date, plus accrued and unpaid interest, if any, to the redemption date. In addition, the Partnership may redeem up to 35% of the aggregate principal amount of the Partnership 2013 Notes prior to April 1, 2016 with the net proceeds of one or more equity offerings at a redemption price of 106.00% of the principal amount of the Partnership 2013 Notes, plus any accrued and unpaid interest to the date of redemption, if at least 65% of the aggregate principal amount of the Partnership 2013 Notes issued under the indenture remains outstanding after such redemption and the redemption occurs within 180 days of the date of the closing of such equity offering. On or after April 1, 2017, the Partnership may redeem all or a part of the Partnership 2013 Notes at redemption prices (expressed as percentages of principal amount) equal to 103.00% for the twelve-month period beginning on April 1, 2017, 101.500% for the twelve-month period beginning on April 1, 2018 and 100.00% for the twelve-month period beginning on April 1, 2019 and at any time thereafter, plus accrued and unpaid interest, if any, to the applicable redemption date on the Partnership 2013 Notes. The Partnership 6% Senior Notes Due October 2022 In April 2014, the Partnership issued $350.0 million aggregate principal amount of the Partnership 2014 Notes. The Partnership received net proceeds of $337.4 million , after original issuance discount and issuance costs, from this offering, which it used to fund a portion of the April 2014 MidCon Acquisition and repay borrowings under its revolving credit facility. The Partnership incurred $6.9 million in transaction costs related to this issuance. These costs were included in intangible and other assets, net, and are being amortized to interest expense over the term of the Partnership 2014 Notes. The Partnership 2014 Notes were issued at an original issuance discount of $5.7 million , which is being amortized using the effective interest method at an interest rate of 6.25% over their term. During the years ended December 31, 2015 and 2014 , the Partnership recognized $0.6 million and $0.5 million , respectively, of interest expense related to amortization of the debt discount. In February 2015, holders of the Partnership 2014 Notes exchanged their Partnership 2014 Notes for registered notes with the same terms. The Partnership 2014 Notes are guaranteed on a senior unsecured basis by all of the Partnership’s existing subsidiaries (other than APLP Finance Corp., which is a co-issuer of the Partnership 2014 Notes) and certain of the Partnership’s future subsidiaries. The Partnership 2014 Notes and the guarantees, respectively, are the Partnership’s and the guarantors’ general unsecured senior obligations, rank equally in right of payment with all of the Partnership’s and the guarantors’ other senior obligations, and are effectively subordinated to all of the Partnership’s and the guarantors’ existing and future secured debt to the extent of the value of the collateral securing such indebtedness. In addition, the Partnership 2014 Notes and guarantees are effectively subordinated to all existing and future indebtedness and other liabilities of any future non-guarantor subsidiaries. Prior to April 1, 2018, the Partnership may redeem all or a part of the Partnership 2014 Notes at a redemption price equal to the sum of (i) the principal amount thereof, plus (ii) a make-whole premium at the redemption date, plus accrued and unpaid interest, if any, to the redemption date. In addition, the Partnership may redeem up to 35% of the aggregate principal amount of the Partnership 2014 Notes prior to April 1, 2017 with the net proceeds of one or more equity offerings at a redemption price of 106.00% of the principal amount of the Partnership 2014 Notes, plus any accrued and unpaid interest to the date of redemption, if at least 65% of the aggregate principal amount of the Partnership 2014 Notes issued under the indenture remains outstanding after such redemption and the redemption occurs within 180 days of the date of the closing of such equity offering. On or after April 1, 2018, the Partnership may redeem all or a part of the Partnership 2014 Notes at redemption prices (expressed as percentages of principal amount) equal to 103.00% for the twelve-month period beginning on April 1, 2018, 101.500% for the twelve-month period beginning on April 1, 2019 and 100.00% for the twelve-month period beginning on April 1, 2020 and at any time thereafter, plus accrued and unpaid interest, if any, to the applicable redemption date of the Partnership 2014 Notes. 7.25% Senior Notes On December 4, 2015, we redeemed for cash the $350.0 million aggregate principal amount of 7.25% senior notes due December 2018 (the “7.25% Notes”) at a redemption price equal to 101.813% of the principal amount thereof plus accrued but unpaid interest to the redemption date for $369.2 million . Upon redemption, the 7.25% Notes were no longer deemed outstanding, interest ceased to accrue thereon and all rights of the holders of the 7.25% Notes ceased to exist. We financed the redemption of the 7.25% Notes through borrowings under our revolving credit facility. As a result of the redemption, we expensed the $6.3 million call premium and $2.9 million of unamortized deferred financing costs associated with the notes in the fourth quarter of 2015, which is reflected in debt extinguishment costs in our consolidated statements of operations. 4.25% Convertible Senior Notes In June 2009, we issued $355.0 million aggregate principal amount of 4.25% convertible senior notes due June 2014 (the “4.25% Notes”). The 4.25% Notes, after taking into consideration dividends declared, were convertible upon the occurrence of certain conditions into shares of our common stock at a conversion rate of 43.5084 shares of our common stock per $1,000 principal amount of the convertible notes, equivalent to a conversion price of approximately $22.98 per share of common stock. In June 2014, we completed our redemption of the 4.25% Notes in exchange for $370.0 million in cash and 6.8 million shares of our common stock. GAAP requires that the liability and equity components of certain convertible debt instruments that may be settled in cash upon conversion be separately accounted for in a manner that reflects an issuer’s nonconvertible debt borrowing rate. Upon issuance of our 4.25% Notes, $97.9 million was recorded as a debt discount and reflected in equity related to the convertible feature of these notes. The discount on the 4.25% Notes was amortized using the effective interest method through June 30, 2014. During the years ended December 31, 2014 and 2013 , we recognized $6.9 million and $15.1 million of interest expense related to the contractual interest coupon, respectively. During the years ended December 31, 2014 and 2013 , we recognized $11.3 million and $23.0 million , respectively, of interest expense related to the amortization of the debt discount. The effective interest rate on the debt component of these notes was 11.67% . In connection with the offering of the 4.25% Notes, we purchased call options on our stock at approximately $22.98 per share of common stock, after taking into consideration dividends declared, and sold warrants on our stock at approximately $32.19 per share of common stock, after taking into consideration dividends declared. These transactions economically adjust the effective conversion price to $32.19 for $325.0 million of the 4.25% Notes. In June 2014, we exercised our call options to acquire 6.5 million shares of our common stock. The cost of the common shares acquired was recorded as treasury stock in our consolidated balance sheets based on the original cost of the call options of $89.4 million . Counterparties to our warrants had the right to exercise the warrants in equal installments for 80 trading days which began in September 2014. During the year ended December 31, 2014 , 1.6 million common shares were issued out of treasury stock pursuant to warrants exercised. Debt Compliance We were in compliance with our debt covenants as of December 31, 2015 . If we fail to remain in compliance with our financial covenants we would be in default under our credit agreements. In addition, if we experience a material adverse effect on our assets, liabilities, financial condition, business or operations that, taken as a whole, impact our ability to perform our obligations under our debt agreements, this could lead to a default under our debt agreements. A default under one or more of our debt agreements would trigger cross-default provisions under certain of our other debt agreements, which would accelerate our obligation to repay our indebtedness under those agreements. Long-Term Debt Maturity Schedule Contractual maturities of long-term debt (excluding interest to be accrued thereon) at December 31, 2015 are as follows (in thousands): December 31, 2016 $ — 2017 — 2018 730,500 2019 — 2020 166,500 Thereafter (1) 700,000 Total debt (1) $ 1,597,000 (1) These amounts include the full face value of the Partnership 2013 Notes and the Partnership 2014 Notes and have not been reduced by the aggregate unamortized discount of $8.6 million as of December 31, 2015 . |
Accounting for Derivatives
Accounting for Derivatives | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Accounting for Derivatives | 10. Accounting for Derivatives We are exposed to market risks associated with changes in interest rates. We use derivative financial instruments to minimize the risks and/or costs associated with financial activities by managing our exposure to interest rate fluctuations on a portion of our debt obligations. We do not use derivative financial instruments for trading or other speculative purposes. Interest Rate Risk During the year ended December 31, 2015, the Partnership entered into an interest rate swap with a notional value of $100.0 million . At December 31, 2015 , the Partnership was a party to interest rate swaps with a total notional value of $500.0 million , pursuant to which it makes fixed payments and receives floating payments. The Partnership entered into these swaps to offset changes in expected cash flows due to fluctuations in the associated variable interest rates. The Partnership’s interest rate swaps expire over varying dates, with interest rate swaps having a notional amount of $300.0 million expiring in May 2018, interest rate swaps having a notional amount of $100.0 million expiring in May 2019 and the remaining interest rate swaps having a notional amount of $100.0 million expiring in May 2020. As of December 31, 2015 , the weighted average effective fixed interest rate on the interest rate swaps was 1.6% . We have designated these interest rate swaps as cash flow hedging instruments so that any change in their fair values is recognized as a component of comprehensive income (loss) and is included in accumulated other comprehensive income (loss) to the extent the hedge is effective. As the swap terms substantially coincide with the hedged item and are expected to offset changes in expected cash flows due to fluctuations in the variable rate, we currently do not expect a significant amount of ineffectiveness on these hedges. We perform quarterly calculations to determine whether the swap agreements are still effective and to calculate any ineffectiveness. We recorded $0.4 million of interest income during the year ended December 31, 2015 due to ineffectiveness related to interest rate swaps. There was no ineffectiveness related to interest rate swaps during the years ended December 31, 2014 and 2013 . We estimate that $3.5 million of deferred pre-tax losses attributable to interest rate swaps and included in our accumulated other comprehensive income (loss) at December 31, 2015 , will be reclassified into earnings as interest expense at then current values during the next twelve months as the underlying hedged transactions occur. Cash flows from derivatives designated as hedges are classified in our consolidated statements of cash flows under the same category as the cash flows from the underlying assets, liabilities or anticipated transactions, unless the derivative contract contains a significant financing element; in this case, the cash settlements for these derivatives are classified as cash flows from financing activities in our consolidated statements of cash flows. In May 2013, the Partnership amended its interest rate swap agreements with a notional value of $250.0 million to adjust the fixed interest rates and extend the maturity dates to May 2018 consistent with the maturity date of the Partnership Credit Agreement. These amendments effectively created new derivative contracts and terminated the old derivative contracts. As a result, we designated the new hedge relationships under the amended terms and de-designated the original hedge relationships as of the termination date. The original hedge relationships qualified for hedge accounting and were included at their fair value in our consolidated balance sheet as a liability and accumulated other comprehensive income (loss). The fair value of the interest rate swap agreements immediately prior to the execution of the amendments was a liability of $8.8 million . The associated amount in accumulated other comprehensive income (loss) was being amortized into interest expense through November 2015. The following tables present the effect of derivative instruments on our consolidated financial position and results of operations (in thousands): December 31, 2015 December 31, 2014 Balance Sheet Location Fair Value Asset (Liability) Fair Value Asset (Liability) Derivatives designated as hedging instruments: Interest rate swaps Intangible and other assets, net $ 45 $ 712 Interest rate swaps Accrued liabilities (4,608 ) (4,958 ) Interest rate swaps Other long-term liabilities (1,421 ) (150 ) Total derivatives $ (5,984 ) $ (4,396 ) Pre-tax Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives Location of Pre-tax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) Pre-tax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) Derivatives designated as cash flow hedges: Interest rate swaps Year ended December 31, 2015 $ (8,901 ) Interest expense $ (7,259 ) Year ended December 31, 2014 (5,879 ) Interest expense (5,657 ) Year ended December 31, 2013 3,057 Interest expense (6,124 ) The counterparties to the derivative agreements are major international financial institutions. We monitor the credit quality of these financial institutions and do not expect non-performance by any counterparty, although such non-performance could have a material adverse effect on us. The Partnership has no specific collateral posted for its derivative instruments. The counterparties to the interest rate swaps are also lenders under the Partnership’s senior secured credit facility and, in that capacity, share proportionally in the collateral pledged under the related facility. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 11. Fair Value Measurements The accounting standard for fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into the following three broad categories: • Level 1 — Quoted unadjusted prices for identical instruments in active markets to which we have access at the date of measurement. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or prices vary substantially over time or among brokered market makers. • Level 3 — Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect our own assumptions regarding how market participants would price the asset or liability based on the best available information. The following table presents our assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 , with pricing levels as of the date of valuation (in thousands): December 31, 2015 December 31, 2014 (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Interest rate swaps asset $ — $ 45 $ — $ — $ 712 $ — Interest rate swaps liability — (6,029 ) — — (5,108 ) — On a quarterly basis, the interest rate swaps are recorded at fair value utilizing a combination of the market approach and income approach to estimate fair value based on forward LIBOR curves. The following table presents our assets and liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2015 and 2014 , with pricing levels as of the date of valuation (in thousands): December 31, 2015 December 31, 2014 (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Impaired long-lived assets $ — $ — $ 12,565 $ — $ — $ 3,359 Our estimate of the impaired long-lived assets’ fair value was primarily based on either the expected net sale proceeds compared to other fleet units we recently sold and/or a review of other units recently offered for sale by third parties, or the estimated component value of the equipment we plan to use. We discounted the expected proceeds, net of selling and other carrying costs, using a weighted average disposal period of four years and a weighted average discount rate of 12% and 9% for the years ended December 31, 2015 and 2014 , respectively. |
Long-Lived Asset Impairment
Long-Lived Asset Impairment | 12 Months Ended |
Dec. 31, 2015 | |
Asset Impairment Charges [Abstract] | |
Long-Lived Asset Impairment | 12. Long-Lived Asset Impairment During the year ended December 31, 2015 , we reviewed the future deployment of our idle compression assets used in our contract operations segment for units that were not of the type, configuration, condition, make or model that are cost efficient to maintain and operate. Based on this review, we determined that approximately 900 idle compressor units totaling approximately 371,000 horsepower would be retired from the active fleet during the year ended December 31, 2015 . The retirement of these units from the active fleet triggered a review of these assets for impairment. As a result, we recorded a $111.7 million asset impairment to reduce the book value of each unit to its estimated fair value during the year ended December 31, 2015 . The fair value of each unit was estimated based on either the expected net sale proceeds compared to other fleet units we recently sold and/or a review of other units recently offered for sale by third parties, or the estimated component value of the equipment we plan to use. In connection with our fleet review during the year ended December 31, 2015 , we evaluated for impairment idle units that had been culled from our fleet in prior years and were available for sale. Based upon that review, we reduced the expected proceeds from disposition for certain of the remaining units. This resulted in an additional impairment of $13.3 million during the year ended December 31, 2015 to reduce the book value of each unit to its estimated fair value. During the year ended December 31, 2014 , we evaluated the future deployment of our idle fleet and determined to retire and either sell or re-utilize the key components of approximately 290 idle compressor units, representing approximately 112,000 horsepower, previously used to provide services in our contract operations segment. As a result, we performed an impairment review and recorded a $30.4 million asset impairment to reduce the book value of each unit to its estimated fair value. The fair value of each unit was estimated based on either the expected net sale proceeds compared to other fleet units we recently sold and/or a review of other units recently offered for sale by third parties, or the estimated component value of the equipment we plan to use. In connection with our fleet review during 2014 , we evaluated for impairment idle units that had been culled from our fleet in prior years and were available for sale. Based upon that review, we reduced the expected proceeds from disposition for certain of the remaining units. This resulted in an additional impairment of $11.7 million to reduce the book value of each unit to its estimated fair value. During the year ended December 31, 2014 , we evaluated other long-lived assets for impairment and recorded long-lived asset impairments of $0.7 million on these assets. During the year ended December 31, 2013 , we evaluated the future deployment of our idle fleet and determined to retire and either sell or re-utilize the key components of approximately 280 idle compressor units, representing approximately 76,000 horsepower, previously used to provide services in our contract operations segment. As a result, we performed an impairment review and recorded a $14.9 million asset impairment to reduce the book value of each unit to its estimated fair value. The fair value of each unit was estimated based on either the expected net sale proceeds compared to other fleet units we recently sold and/or a review of other units recently offered for sale by third parties, or the estimated component value of the equipment we plan to use. During the year ended December 31, 2013 , we evaluated other long-lived assets for impairment and recorded long-lived asset impairments of $1.8 million on these assets. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | 13. Restructuring Charges As discussed in Note 2 (“Discontinued Operations”), we completed the Spin-off of Exterran Corporation on November 3, 2015. During the year ended December 31, 2015 , we incurred $4.1 million of costs associated with the Spin-off which were directly attributable to Archrock and are summarized below. The restructuring charges associated with the Spin-off have not been allocated to the segments because they primarily represent costs incurred within the corporate function. Restructuring charges incurred in 2015 and 2014 in conjunction with completion of the Spin-off or directly associated with the Exterran Corporation business are included in discontinued operations in our consolidated statements of operations. As of December 31, 2015 , we had an accrued liability balance of $0.9 million for retention and severance benefits incurred. We expect to incur an additional $2.0 million in both 2016 and 2017 related to retention payments. In the second quarter of 2015 we announced a cost reduction plan primarily focused on workforce reductions. During the year ended December 31, 2015 , we incurred $0.6 million of restructuring and other charges as a result of this plan primarily related to termination benefits. These charges are reflected as restructuring and other charges in our consolidated statement of operations. In January 2014, we announced a plan to centralize our make-ready operations to improve the cost and efficiency of our shops and further enhance the competitiveness of our fleet of compressors. As part of this plan, we examined both recent and anticipated changes in the U.S. market, including the throughput demand of our shops and the addition of new equipment to our fleet. To better align our costs and capabilities with the current market, we determined to close several of our make-ready shops. The centralization of our make-ready operations was completed in the second quarter of 2014. The following table summarizes the changes to our accrued liability balance related to restructuring charges for the year ended December 31, 2015 and December 31, 2014 (in thousands): Spin-off Cost Reduction Plan Total Balance at January 1, 2014 $ — $ — $ — Additions for costs expensed — 5,394 5,394 Less: non-cash expense — (4,103 ) (4,103 ) Reductions for payments — (1,291 ) (1,291 ) Balance at January 1, 2015 $ — $ — $ — Additions for costs expensed 4,135 610 4,745 Less: non-cash expense (2,515 ) $ — (2,515 ) Reductions for payments (765 ) (610 ) (1,375 ) Balance at December 31, 2015 $ 855 $ — $ 855 The following table summarizes the components of charges included in restructuring and other charges in our consolidated statements of operations for the year ended December 31, 2015 and December 31, 2014 (in thousands): Year ended December 31, 2015 Year ended December 31, 2014 Retention and severance benefits $ 3,135 $ — Non-cash inventory write-downs 1,000 4,103 Employee termination benefits 610 1,291 Total restructuring and other charges $ 4,745 $ 5,394 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The provision for (benefit from) income taxes consisted of the following (in thousands): Years Ended December 31, 2015 2014 2013 Current tax provision (benefit): U.S. federal $ 556 $ 23 $ (310 ) State 1,415 (654 ) 938 Total current 1,971 (631 ) 628 Deferred tax provision (benefit): U.S. federal 48,450 (23,786 ) (18,397 ) State 2,768 (3,649 ) (71 ) Total deferred 51,218 (27,435 ) (18,468 ) Provision for (benefit from) income taxes $ 53,189 $ (28,066 ) $ (17,840 ) The provision for (benefit from) income taxes for 2015 , 2014 and 2013 resulted in effective tax rates on continuing operations of (50.1)% , 62.1% and 85.4% , respectively. The reasons for the differences between these effective tax rates and the U.S. statutory rate of 35% are as follows (in thousands): Years Ended December 31, 2015 2014 2013 Income taxes at U.S. federal statutory rate of 35% $ (37,165 ) $ (15,813 ) $ (7,311 ) Net state income taxes 2,383 (5,253 ) 937 Noncontrolling interest (2,904 ) (11,166 ) (12,685 ) Unrecognized tax benefits 698 4,063 416 Valuation allowances and write off of tax attributes 88,088 — — Other 2,089 103 803 Provision for (benefit from) income taxes $ 53,189 $ (28,066 ) $ (17,840 ) Deferred income tax balances are the direct effect of temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the taxes are actually paid or recovered. The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 8,028 $ 37,668 Inventory 3,642 4,405 Alternative minimum tax credit carryforwards 1,496 5,685 Accrued liabilities 11,466 7,894 Other 4,913 — Subtotal 29,545 55,652 Valuation allowances (633 ) (633 ) Total deferred tax assets 28,912 55,019 Deferred tax liabilities: Property, plant and equipment (53,495 ) (126,670 ) Basis difference in the Partnership (148,421 ) (136,438 ) Other (5,562 ) (10,583 ) Total deferred tax liabilities (207,478 ) (273,691 ) Net deferred tax liabilities $ (178,566 ) $ (218,672 ) Tax balances are presented in the accompanying consolidated balance sheets as deferred income taxes. Pursuant to Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, utilization of loss carryforwards and alternative minimum tax credits, are subject to annual limitations due to any ownership changes of 5% owners. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain stockholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. The Hanover/Universal merger in 2007 resulted in such an ownership change but the Spin-off did not result in such an ownership change for Archrock. Our ability to utilize loss carryforwards and credit carryforwards against future U.S. federal taxable income and future U.S. federal income tax may be limited in the future if we have another 50% or more ownership change in our 5% shareholders. The limitations may cause us to pay U.S. federal income taxes earlier; however, we do not currently expect that any loss carryforwards or credit carryforwards will expire as a result of any 382 or 383 limitations. On September 13, 2013, the U.S. Treasury Department and the IRS issued final regulations that address costs incurred in acquiring, producing, or improving tangible property (the “tangible property regulations”). The tangible property regulations are generally effective for tax years beginning on or after January 1, 2014. The tangible property regulations required us to make tax accounting method changes and file election statements with our U.S. federal tax return for our tax year beginning on January 1, 2014; however, these new requirements did not have a material impact on our consolidated financial statements. At December 31, 2015 , we had U.S. federal and state net operating loss (“NOL”) carryforwards of approximately $22.0 million and $6.7 million , respectively, included in our NOL deferred tax asset that are available to offset future taxable income. If not used, the federal and state carryforwards will begin to expire in 2025 and 2020, respectively. Alternative minimum tax credit carryforwards of $1.5 million are available to offset future payments of U.S. federal income tax and may be carried forward indefinitely under current U.S. tax law. Employee share-based compensation attributable to the exercise of stock options and vesting of restricted stock is deductible by us for tax purposes. For post-2005 tax years, to the extent these tax deductions exceed the previously accrued deferred tax benefit for these items the additional tax benefit is not recognized under GAAP until the deduction reduces current taxes payable. For pre-2006 tax years, (prior to the adoption of ASC 718, formerly known as FAS 123R), the additional tax benefit is included in our NOL deferred tax asset with a corresponding valuation allowance negating the benefit. At December 31, 2015, the post-2005 tax benefit not included in our NOL deferred tax asset is $581,000 and the pre-2006 tax benefit included in our NOL deferred tax asset with an offsetting valuation allowance is $633,000. We record valuation allowances when it is more likely than not that some portion or all of our deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character and in the appropriate taxing jurisdictions in the future. If we do not meet our expectations with respect to taxable income, we may not realize the full benefit from our deferred tax assets which would require us to record a valuation allowance in our tax provision in future years. At the time of the Spin-off we had recorded $144.3 million in foreign tax credit deferred tax assets. These deferred tax assets related to foreign tax credits that can be used to reduce our income taxes payable in the current and future years. They will expire if they are not used within the 10-year carryforward period. As a result of the Spin-off it is projected that these Foreign tax credits/deductions allocated to Exterran Corporation will expire unused because Exterran Corporation will not generate sufficient taxable income and foreign source taxable income after the Spin-off to utilize these credits. Therefore, in the fourth quarter, we wrote off foreign tax credits for the years 2005-2010 in the amount of $48.2 million and set up a valuation allowance for the years 2011-2015 of $37.8 million for a total impact to Archrock’s fourth quarter tax provision of $86.0 million . The credits and offsetting valuation allowance were allocated to Exterran Corporation for their use in future tax returns. A reconciliation of the beginning and ending amount of unrecognized tax benefits (including discontinued operations) is shown below (in thousands): Years Ended December 31, 2015 2014 2013 Beginning balance $ 14,595 $ 11,259 $ 9,597 Additions based on tax positions related to current year 845 954 365 Additions based on tax positions related to prior years 3,648 2,597 1,710 Reductions based on settlement with government authority — — — Reductions based on lapse of statute of limitations — (215 ) (97 ) Reductions based on tax positions related to prior years (592 ) — (316 ) Reductions based on tax positions transferred to Exterran Corp. (6,498 ) $ — $ — Ending balance $ 11,998 $ 14,595 $ 11,259 We had $12.0 million , $14.6 million and $11.3 million of unrecognized tax benefits at December 31, 2015 , 2014 and 2013 , respectively, which if recognized, would affect the effective tax rate (except for amounts that would be reflected in income from discontinued operations, net of tax). We also have recorded $0.2 million , $3.3 million and $3.4 million of potential interest expense and penalties related to unrecognized tax benefits associated with uncertain tax positions (including discontinued operations) as of December 31, 2015 , 2014 and 2013 , respectively. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and reflected as reductions in income tax expense. Subject to the provisions of the tax matters agreement between Exterran Corporation and us, both parties agreed to indemnify the primary obligor of any return for tax periods beginning before and ending before or after the Spin-off (including any ongoing or future amendments and audits for these returns) for the portion of the tax liability (including interest and penalties) that relates to their respective operations reported in the filing. As of December 31, 2015, we have recorded a $5.7 million indemnification asset (including penalties and interest) related to unrecognized tax benefits. We and our subsidiaries file consolidated and separate income tax returns in the U.S. federal jurisdiction and in numerous state jurisdictions. We are subject to U.S. federal income tax examinations for tax years beginning from 1997 onward and, early in the second quarter of 2011, the Internal Revenue Service (“IRS”) commenced an examination of our U.S. federal income tax returns for the tax years 2006, 2008 and 2009. In October 2012, the IRS completed its examination and issued Revenue Agent’s Reports (“RARs”) that reflected an aggregate over-assessment of $0.9 million . All of the adjustments proposed in the RARs were agreed, except for the disallowance of our telephone excise tax refund (“TETR”) claims of $0.5 million related to the 2006 tax year, for which we filed protests with the Appeals Division of the IRS. We settled with the IRS Appeals Division in December 2013 for more than 90% of our TETR claims and received refunds in the first quarter of 2014. The $0.9 million over-assessment was approved for refund by the Joint Committee on Taxation and was received in the third quarter of 2014. We do not expect any tax adjustments from later tax years that would have a material impact on our conaolidated financial position or consolidated results of operations. State income tax returns are generally subject to examination for a period of three to five years after filing the returns. However, the state impact of any U.S. federal audit adjustments and amendments remains subject to examination by various states for up to one year after formal notification to the states. As of December 31, 2015 , we did not have any state audits underway that we believe would have a material impact on our consolidated financial position or consolidated results of operations. We do not believe any of our unrecognized tax benefits will be reduced before the year ended December 31, 2016 due to the settlement of audits and the expiration of statutes of limitations. However, due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of these matters may result in liabilities which could materially differ from these estimates. |
Common Stockholders' Equity
Common Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Common Stockholders' Equity | 15. Common Stockholders’ Equity The Archrock, Inc. (formerly Exterran Holdings, Inc.) 2013 Stock Incentive Plan (the “2013 Plan”) allows us to withhold shares to use upon vesting of restricted stock at the then current market price to cover taxes required to be withheld on the vesting date. We purchased 137,994 of our shares from participants for approximately $4.0 million during 2015 to cover tax withholding. The 2013 Plan is administered by the compensation committee of our board of directors. |
Stock-Based Compensation and Aw
Stock-Based Compensation and Awards | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Awards | 16. Stock-Based Compensation and Awards During the years ended December 31, 2015 , 2014 and 2013 we recognized stock based compensation expense in our results of operations of $10.0 million , $12.8 million and $9.0 million , respectively, related to stock options, restricted stock units, performance units, phantom units and the employee stock purchase plan. Stock Incentive Plan In April 2013, we adopted the 2013 Plan to provide for the granting of stock options, restricted stock, restricted stock units, stock appreciation rights, performance units, other stock-based awards and dividend equivalent rights to directors of Archrock and employees and consultants of Archrock and its affiliates. Under the 2013 Plan, the maximum number of shares of common stock available for issuance pursuant to awards is 6,500,000 . Each option and stock appreciation right granted counts as one share against the aggregate share limit, and any share subject to a stock settled award other than a stock option, stock appreciation right or other award for which the recipient pays intrinsic value counts as 1.75 shares against the aggregate share limit. Shares subject to awards granted under the 2013 Plan that are subsequently canceled, terminated, settled in cash or forfeited (excluding shares withheld to satisfy tax withholding obligations to or pay the exercise price of an option) are, to the extent of such cancelation, termination, settlement or forfeiture, available for future grant under the 2013 Plan. Cash settled awards are not counted against the aggregate share limit. No additional grants may be made under the Archrock, Inc. 2007 Amended and Restated Stock Incentive Plan (the “2007 Plan”). Previous grants made under the 2007 Plan will continue to be governed by their respective plans. Exterran Corporation Spin-off Adjustments In connection with the Spin-off of Exterran Corporation, stock options, restricted stock, restricted stock units and performance unit awards were adjusted in accordance with anti-dilution provisions under the existing plans. As such, we did not record any additional compensation expense related to the adjustment of the awards. The awards were generally adjusted as follows: • Pre-2015 Awards. Immediately prior to the Spin-off, each outstanding Exterran Holdings stock option, restricted stock, restricted stock unit and performance unit granted prior to January 1, 2015, whether vested or unvested, was split into two awards, consisting of an Archrock award and an Exterran Corporation award. However, Exterran Holdings “incentive stock options” (within the meaning of Section 422 of the Code) were converted solely, into options denominated in shares of common stock of the applicable holder’s post-spin employer if the holder of the award elected, prior to the Spin-off, to preserve the tax treatment of such option. • 2015 Awards. Each Exterran Holdings stock option, restricted stock award, restricted stock unit award and performance unit award that was (i) granted in calendar year 2015 and (ii) held by an individual who became our employee or is engaged to provide service to us following the Spin-off was converted solely into an Archrock award. We did not grant any stock options in the calendar year 2015 prior to the Spin-off. Equity awards that were adjusted as described above generally remain subject to the same vesting, expiration, performance conditions and other terms and conditions as applied to the awards immediately prior to the Spin-off. Stock Options Stock options are granted at fair market value at the grant date, are exercisable according to the vesting schedule established by the compensation committee of our board of directors in its sole discretion and expire no later than 7 years after the grant date. Stock options generally vest one-third per year on each of the first three anniversaries of the grant date, subject to continued services through the applicable vesting date. During the year ended December 31, 2015 we did not grant any stock options. The weighted average grant date fair value for stock options granted during the years ended December 31, 2014 and 2013 was $14.47 and $10.19 , respectively, and was estimated using the Black-Scholes option valuation model with the following weighted average assumptions: Years Ended December 31, 2014 2013 Expected life in years 4.5 4.5 Risk-free interest rate 1.33 % 0.66 % Volatility 46.51 % 49.19 % Dividend yield 1.5 % 0.0 % The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date for a period commensurate with the estimated expected life of the stock options. Expected volatility is based on the historical volatility of our stock over the period commensurate with the expected life of the stock options and other factors. The dividend yield is based on the current annualized dividend rate in effect during the quarter in which the grant was made. At the time of the stock option grants during the year ended December 31, 2013 , we had not historically paid any dividends and did not expect to pay any dividends during the expected life of the stock options. The following table presents stock option activity during the year ended December 31, 2015 : Stock Options (in thousands) Weighted Average Exercise Price Per Share (2) Weighted Average Remaining Life (in years) Aggregate Intrinsic Value (in thousands) Options outstanding, January 1, 2015 1,495 $ 33.39 Granted — — Exercised (90 ) 12.29 Canceled (300 ) 59.91 Spin-off of Exterran Corporation (1) 142 (56.65 ) Options outstanding, December 31, 2015 1,247 18.28 2.2 $ 278 Options exercisable, December 31, 2015 1,118 17.97 1.9 278 (1) Reflects adjustment of awards outstanding and the exercise price as a result of the Spin-off. (2) Activity prior to the Spin-off reflects historical exercise price. Intrinsic value is the difference between the market value of our stock and the exercise price of each stock option multiplied by the number of stock options outstanding for those stock options where the market value exceeds their exercise price. The total intrinsic value of stock options exercised during 2015 , 2014 and 2013 was $1.5 million , $16.6 million and $4.4 million , respectively. As of December 31, 2015 , we expect $0.5 million of unrecognized compensation cost related to unvested stock options to be recognized over the weighted-average period of 1.0 years. Restricted Stock, Stock-Settled Restricted Stock Units, Performance Units, Cash Settled Restricted Stock Units and Performance Units For grants of restricted stock, restricted stock units and performance units, we recognize compensation expense over the vesting period equal to the fair value of our common stock at the grant date. Our restricted stock and certain of our restricted stock units and performance units include rights to receive dividends or dividend equivalents. We remeasure the fair value of cash settled restricted stock units and cash-settled performance units and record a cumulative adjustment of the expense previously recognized. Our obligation related to the cash-settled restricted stock units and cash-settled performance units is reflected as a liability in our consolidated balance sheets. Restricted stock, stock-settled restricted stock units, performance units, cash-settled restricted stock units and performance units generally vest one-third per year on each of the first three anniversaries of the grant date, subject to continued services through the applicable vesting date. The following table presents restricted stock, stock-settled restricted stock unit, performance unit, cash-settled restricted stock unit and cash-settled performance unit activity during the year ended December 31, 2015 : Shares (in thousands) Weighted Average Grant-Date Fair Value Per Share (3) Non-vested awards, January 1, 2015 1,170 $ 27.37 Granted 1,008 25.49 Vested (809 ) 23.05 Canceled (53 ) 30.25 Spin-off of Exterran Corporation (1) (161 ) (99.93 ) Non-vested awards, December 31, 2015 (2) 1,155 18.50 (1) Reflects adjustment of outstanding awards in connection with and the grant date fair value adjusted as a result of, the Spin-off. (2) Non-vested awards as of December 31, 2015 are comprised of 55,000 cash settled restricted stock units and cash settled performance units and 1,100,000 restricted shares, stock-settled restricted stock units and performance units. (3) Excluding the Spin-off of Exterran Corporation adjustment, reflects historical grant date fair value. As of December 31, 2015 , we expect $11.7 million of unrecognized compensation cost related to unvested restricted stock, restricted stock units, performance units, cash settled restricted stock units and cash settled performance units to be recognized over the weighted-average period of 1.8 years . Employee Stock Purchase Plan In August 2007, we adopted the Archrock, Inc. Employee Stock Purchase Plan (as amended, the “ESPP”), which is intended to provide employees with an opportunity to participate in our long-term performance and success through the purchase of shares of common stock at a price that may be less than fair market value. The ESPP is designed to comply with Section 423 of the Internal Revenue Code of 1986, as amended. Each quarter, an eligible employee may elect to withhold a portion of his or her salary up to the lesser of $25,000 per year or 10% of his or her eligible pay to purchase shares of our common stock at a price equal to 85% to 100% of the fair market value of the stock as of the first trading day of the quarter, the last trading day of the quarter or the lower of the first trading day of the quarter and the last trading day of the quarter, as the compensation committee of our board of directors may determine. The ESPP will terminate on the date that all shares of common stock authorized for sale under the ESPP have been purchased, unless it is extended. In May 2011, we amended the ESPP to increase the maximum number of shares of common stock available for purchase under the ESPP to 1,000,000 . As a result of the Spin-off, the ESPP was suspended after the second quarter 2015 purchase period. Directors’ Stock and Deferral Plan On August 20, 2007, we adopted the Archrock, Inc. Directors’ Stock and Deferral Plan to provide non-employee members of the board of directors with an opportunity to elect to receive our common stock as payment for a portion or all of their retainer and meeting fees. The number of shares paid each quarter is determined by dividing the dollar amount of fees elected to be paid in common stock by the closing sales price per share of the common stock on the last day of the quarter. In addition, directors who elect to receive a portion or all of their fees in the form of common stock may also elect to defer, until a later date, the receipt of a portion or all of their fees to be received in common stock. We have reserved 100,000 shares under the Directors’ Stock and Deferral Plan, and as of December 31, 2015 , 48,022 shares remained available to be issued under the plan. Partnership Long-Term Incentive Plan The Partnership’s Long-Term Incentive Plan (the “Partnership Plan”) was adopted, in October 2006 for the benefit of the employees, directors and consultants of the Partnership, us and our respective affiliates. A maximum of 1,035,378 common units are available for the issuance of common unit options, restricted units, unit awards and phantom units under the Partnership Plan. The Partnership Plan is administered by the compensation committee of the board of directors of Archrock GP LLC, the general partner of the Partnership’s general partner (the “Partnership Plan Administrator”). Phantom units are notional units that entitle the grantee to receive common units upon the vesting of such phantom units or, at the discretion of the Partnership Plan Administrator, cash equal to the fair market value of such common units. Phantom units granted under the Partnership Plan may include nonforfeitable tandem distribution equivalent rights to receive cash distributions on unvested phantom units in the quarter in which distributions are paid on common units. Phantom units generally vest one-third per year on each of the first three anniversaries of the grant date, subject to continued service through the applicable vesting date. Partnership Phantom Units The following table presents phantom unit activity during the year ended December 31, 2015 : Phantom Units (in thousands) Weighted Average Grant-Date Fair Value per Unit Phantom units outstanding, January 1, 2015 92 $ 27.38 Granted 45 24.87 Vested (60 ) 25.94 Phantom units outstanding, December 31, 2015 77 27.01 As of December 31, 2015 , we expect $1.2 million of unrecognized compensation cost related to unvested phantom units to be recognized over the weighted-average period of 1.7 years . |
Cash Dividends
Cash Dividends | 12 Months Ended |
Dec. 31, 2015 | |
Dividends [Abstract] | |
Cash Dividends | 17. Cash Dividends The following table summarizes our dividends per common share: Declaration Date Payment Date Dividends per Common Share Total Dividends February 25, 2014 March 28, 2014 $ 0.15 $ 10.0 million April 29, 2014 May 16, 2014 0.15 10.0 million July 31, 2014 August 18, 2014 0.15 10.0 million October 30, 2014 November 17, 2014 0.15 10.3 million January 30, 2015 February 17, 2015 0.15 10.3 million April 28, 2015 May 18, 2015 0.15 10.4 million July 30, 2015 August 17, 2015 0.15 10.5 million October 18, 2015 October 30, 2015 0.15 10.4 million On January 26, 2016, our board of directors declared a quarterly dividend of $0.1875 per share of common stock which was paid on February 16, 2016 to stockholders of record at the close of business on February 9, 2016. Any future determinations to pay cash dividends to our stockholders will be at the discretion of our board of directors and will be dependent upon our financial condition and results of operations, credit and loan agreements in effect at that time and other factors deemed relevant by our board of directors. |
Retirement Benefit Plan
Retirement Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Benefit Plan | 18. Retirement Benefit Plan Our 401(k) retirement plan provides for optional employee contributions up to the applicable Internal Revenue Service annual limit and discretionary employer matching contributions. We make discretionary matching contributions to each participant’s account at a rate of (i) 100% of each participant’s first 1% of contributions plus (ii) 50% of each participant’s contributions up to the next 5% of eligible compensation. We recorded matching contributions of $4.2 million , $5.0 million and $4.2 million during 2015 , 2014 and 2013 , respectively. |
Transactions Related to the Par
Transactions Related to the Partnership | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Transactions Related to the Partnership | 19. Transactions Related to the Partnership In May 2015, the Partnership entered into an At-The-Market Equity Offering Sales Agreement (the “ATM Agreement”) with Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC (the “Sales Agents”). Pursuant to the ATM Agreement, the Partnership may sell from time to time through the Sales Agents common units representing limited partner interests in the Partnership having an aggregate offering price of up to $100.0 million . Under the terms of the ATM Agreement, the Partnership may also sell common units from time to time to any Sales Agent as principal for its own account at a price to be agreed upon at the time of sale. Any sale of common units to a Sales Agent as principal would be pursuant to the terms of a separate terms agreement between the Partnership and such Sales Agent. The Partnership intends to use the net proceeds of this offering, after deducting the Sales Agents’ commission and its offering expenses, for general partnership purposes, which may include, among other things paying or refinancing a portion of its outstanding debt. During the year ended December 31, 2015 , the Partnership sold 49,774 common units for net proceeds of $1.2 million pursuant to the ATM Agreement. In April 2015, we sold to the Partnership contract operations customer service agreements with 60 customers and a fleet of 238 compressor units used to provide compression services under those agreements, comprising approximately 148,000 horsepower, or 3% (of then available horsepower) of the combined contract operations business of the Partnership and us. The assets sold also included 179 compressor units, comprising approximately 66,000 horsepower, previously leased by us to the Partnership. Total consideration for the transaction was approximately $102.3 million , excluding transaction costs, and consisted of the Partnership’s issuance to us of approximately 4.0 million common units and approximately 80,000 general partner units. Based on the terms of the contribution, conveyance and assumption agreement, the common units and general partner units, including incentive distribution rights, we received in this transaction were not entitled to receive a cash distribution relating to the quarter ended March 31, 2015. As a result, adjustments were made to noncontrolling interest, accumulated other comprehensive income (loss), deferred income taxes and additional paid-in capital to reflect our new ownership percentage in the Partnership. In April 2014, the Partnership sold, pursuant to a public underwritten offering, 6,210,000 common units, including 810,000 common units pursuant to an over-allotment option. The Partnership received net proceeds of $169.5 million , after deducting underwriting discounts, commissions and offering expenses, which it used to fund a portion of the April 2014 MidCon Acquisition. In connection with this sale and as permitted under its partnership agreement, the Partnership issued and sold to Archrock General Partner, L.P. (“GP”), our wholly-owned subsidiary and the Partnership’s general partner, in exchange for $3.6 million , approximately 126,000 general partner units to maintain GP’s approximate 2% general partner interest in the Partnership. As a result, adjustments were made to noncontrolling interest, accumulated other comprehensive income (loss), deferred income taxes and additional paid-in capital to reflect our new ownership percentage in the Partnership. In March 2013, we sold to the Partnership contract operations customer service agreements with 50 customers and a fleet of 363 compressor units used to provide compression services under those agreements, comprising approximately 256,000 horsepower, or 8% (of then available horsepower) of the combined contract operations business of the Partnership and us. The assets sold also included 204 compressor units, comprising approximately 99,000 horsepower, previously leased to the Partnership and contracts relating to approximately 6,000 horsepower of compressor units the Partnership already owned and previously leased to us. Total consideration for the transaction was approximately $174.0 million , excluding transaction costs, and consisted of the Partnership’s issuance to us of approximately 7.1 million common units and approximately 145,000 general partner units. As a result, adjustments were made to noncontrolling interest, accumulated other comprehensive income (loss), deferred income taxes and additional paid-in capital to reflect our new ownership percentage in the Partnership. The following table presents the effects of changes from net income (loss) attributable to Archrock stockholders and changes in our equity interest of the Partnership on our equity attributable to Archrock stockholders (in thousands): Years Ended December 31, 2015 2014 2013 Net income (loss) attributable to Archrock stockholders $ (105,818 ) $ 98,166 $ 123,164 Increase in Archrock stockholders’ additional paid in capital for change in ownership of Partnership units 18,386 74,521 31,573 Change from net income (loss) attributable to Archrock stockholders and transfers to/from the noncontrolling interest $ (87,432 ) $ 172,687 $ 154,737 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20. Commitments and Contingencies Rent expense for 2015 , 2014 and 2013 was approximately $10.9 million , $9.8 million and $9.9 million , respectively. Commitments for future minimum rental payments with terms in excess of one year at December 31, 2015 are as follows (in thousands): December 31, 2016 $ 5,591 2017 4,876 2018 2,726 2019 1,774 2020 1,456 Thereafter 1,881 Total $ 18,304 We have issued the following guarantees that are not recorded on our accompanying consolidated balance sheet (dollars in thousands): Term Maximum Potential Undiscounted Payments as of December 31, 2015 Standby letters of credit 2016 $ 9,969 Performance bonds (1) 2016 1,252 Maximum potential undiscounted payments $ 11,221 (1) We have issued guarantees to third parties to ensure performance of our obligations, some of which may be fulfilled by third parties. We are subject to a number of taxes that are not income-based. As many of these taxes are subject to audit by the taxing authorities, it is possible that an audit could result in additional taxes due. We accrue for such additional taxes when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the liability. As of December 31, 2015, we had accrued $2.7 million and for the outcomes of non-income based tax audits. We do not expect that the ultimate resolutions of these audits will result in a material variance from the amounts accrued. We do not accrue for unasserted claims for tax audits unless we believe the assertion of a claim is probable, it is probable that it will be determined that the claim is owed and we can reasonably estimate the claim or range of the claim. We also believe the likelihood is remote that the impact of potential unasserted claims from non-income based tax audits could be material to our consolidated financial position, but it is possible that the resolution of future audits could be material to our results of operations or cash flows for the period in which the resolution occurs. Subject to the provisions of the tax matters agreement between Exterran Corporation and us, both parties agreed to indemnify the primary obligor of any return for tax periods beginning before and ending before or after the Spin-off (including any ongoing or future amendments and audits for these returns) for the portion of the tax liability (including interest and penalties) that relates to their respective operations reported in the filing. As of December 31, 2015, we have recorded a $1.5 million indemnification liability (including penalties and interest) related to non-income based tax audits. Our business can be hazardous, involving unforeseen circumstances such as uncontrollable flows of natural gas or well fluids and fires or explosions. As is customary in our industry, we review our safety equipment and procedures and carry insurance against some, but not all, risks of our business. Our insurance coverage includes property damage, general liability and commercial automobile liability and other coverage we believe is appropriate. In addition, we have a minimal amount of insurance on our offshore assets. We believe that our insurance coverage is customary for the industry and adequate for our business; however, losses and liabilities not covered by insurance would increase our costs. Additionally, we are substantially self-insured for workers’ compensation and employee group health claims in view of the relatively high per-incident deductibles we absorb under our insurance arrangements for these risks. Losses up to the deductible amounts are estimated and accrued based upon known facts, historical trends and industry averages. Indemnifications On November 3, 2015, we completed the Spin-off of our international contract operations, international aftermarket services and global fabrication businesses. In connection with the Spin-off, we entered into a separation and distribution agreement, which provides for cross-indemnities between Exterran Corporation’s operating subsidiary and us and established procedures for handling claims subject to indemnification and related matters. Generally, the separation and distribution agreement provides for cross-indemnities principally designed to place financial responsibility for the obligations and liabilities of our business with us and financial responsibility for the obligations and liabilities of Exterran Corporation’s business with Exterran Corporation. Pursuant to the agreement, we and Exterran Corporation will generally release the other party from all claims arising prior to the Spin-off that relate to the other party’s business. Litigation and Claims In 2011, the Texas Legislature enacted changes related to the appraisal of natural gas compressors for ad valorem tax purposes by expanding the definitions of “Heavy Equipment Dealer” and “Heavy Equipment” effective from the beginning of 2012 (the “Heavy Equipment Statutes”). Under the revised statutes, we believe we are a Heavy Equipment Dealer, that our natural gas compressors are Heavy Equipment and that we, therefore, are required to file our ad valorem tax renditions under this new methodology. We further believe that, under the Heavy Equipment Statutes, our natural gas compressors are taxable in the counties where we maintain a business location and keep natural gas compressors instead of where the compressors may be located on January 1 of a tax year. A large number of appraisal review boards denied our position, and we filed petitions for review in the appropriate district courts. As of December 31, 2015, three of these cases have been decided. In each case, the district court held that the revised Heavy Equipment Statutes apply to natural gas compressors. However, in each case, the district court further held that the revised Heavy Equipment Statutes are unconstitutional as applied to natural gas compressors, and that the natural gas compressors of our wholly owned subsidiary Archrock Services Leasing LLC, formerly known as EES Leasing LLC (“EES Leasing”), and Archrock Partners’ subsidiary Archrock Partners Leasing LLC, formerly known as EXLP Leasing LLC (“EXLP Leasing”) are taxable in the counties where they were located on January 1 of the tax year at issue, which is favorable to the county appraisal districts. We appealed all three of these decisions. On August 25, 2015, the Fourteenth Court of Appeals in Houston, Texas issued a ruling stating that EES Leasing’s and EXLP Leasing’s natural gas compressors are taxable in the counties where they were located on January 1 of the tax year at issue, and it remanded the case to the district court for further evidence on the issue of whether the Heavy Equipment Statutes are constitutional as applied to EES Leasing’s and EXLP Leasing’s compressors. On November 24, 2015, we filed a petition asking the Texas Supreme Court to review this decision. On January 29, 2016, the Texas Supreme Court requested that Galveston Central Appraisal District file a response to our petition for review by February 29, 2016. On September 23, 2015, the Eighth Court of Appeals in El Paso, Texas decided the other two appellate cases in our favor by affirming the district court’s ruling that the Heavy Equipment Statutes apply to natural gas compressors, and overturning the district court’s ruling that the Heavy Equipment Statutes are unconstitutional as applied to natural gas compressors. The Eighth Court of Appeals also ruled, however, that EES Leasing’s and EXLP Leasing’s natural gas compressors are taxable in the counties where they were located on January 1 of the tax year at issue. In EES Leasing LLC and EXLP Leasing LLC v. Harris County Appraisal District, the parties filed motions for summary judgment, which are currently pending before the district court. In EES Leasing LLC v. Irion County Appraisal District, the court denied both parties’ respective motions for summary judgment concerning taxes assessed by Irion County for the 2012 tax year, and consolidated the case with EES Leasing’s 2013 tax year case, which also included EXLP Leasing as a party. On August 27, 2015, the Irion County district court abated the consolidated case, EES Leasing LLC and EXLP Leasing LLC v. Irion County Appraisal District , until the final resolution of the appellate cases considering the constitutionality of the Heavy Equipment Statutes, or further order of the court. As a result of the new methodology, our ad valorem tax expense (which is reflected in our consolidated statements of operations as a component of cost of sales (excluding depreciation and amortization expense)) includes a benefit of $16.0 million during the year ended December 31, 2015 . Since the change in methodology became effective in 2012, we have recorded an aggregate benefit of $44.0 million as of December 31, 2015 , of which approximately $10.2 million has been agreed to by a number of appraisal review boards and county appraisal districts and $33.8 million has been disputed and is currently in litigation. Recognizing the similarity of the issues and that these cases will ultimately be resolved by the Texas appellate courts, we have reached, or intend to reach, agreements with as many of the appraisal districts as possible to stay or abate any appeals that are pending in district court. If our appeals are ultimately unsuccessful, we would be required to pay ad valorem taxes up to the aggregate benefit we have recorded, and the additional ad valorem tax payments may also be subject to substantial penalties and interest. In addition, while we do not expect the ultimate determination of the issue of where the natural gas compressors are taxable under the Heavy Equipment Statutes would have an impact on the amount of taxes due, we could be subject to substantial penalties if we are unsuccessful on this issue. Also, if we are unsuccessful in our litigation with the appraisal districts, or if legislation is enacted in Texas that repeals or alters the Heavy Equipment Statutes such that in the future we do not qualify as a Heavy Equipment Dealer or our compressors do not qualify as Heavy Equipment, then we would likely be required to pay these ad valorem taxes under the old methodology going forward, which would increase our quarterly cost of sales expense up to approximately the amount of our then most recent quarterly benefit recorded. If this litigation is resolved against us in whole or in part, or if in the future we do not qualify as a Heavy Equipment Dealer or our compressors do not qualify as Heavy Equipment because of new or revised Texas statutes, we will incur additional taxes and could be subject to substantial penalties and interest, which would impact our future results of operations, financial condition and cash flows and also our ability to pay dividends in the future. In the ordinary course of business, we are also involved in various other pending or threatened legal actions. While management is unable to predict the ultimate outcome of these actions, it believes that any ultimate liability arising from any of these other actions will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. However, because of the inherent uncertainty of litigation and arbitration proceedings, we cannot provide assurance that the resolution of any particular claim or proceeding to which we are a party will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Recent Accounting Developments
Recent Accounting Developments | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Developments | 21. Recent Accounting Developments In February 2016, the Financial Accounting Standards Board (“FASB”) issued an update which establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Under the new guidance, lessor accounting is largely unchanged. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of this update on our financial statements. In November 2015, the FASB issued an update related to the balance sheet classification of deferred taxes. The update simplifies the presentation of deferred income taxes to require that all deferred income tax assets and liabilities be classified as noncurrent and eliminates the current classification. Proration of valuation allowances is eliminated and classification of a deferred tax asset or liability is no longer based on the classification of the related asset or liability. The update will be effective for reporting periods beginning after December 15, 2016 and can be applied prospectively or retrospectively. Early adoption is allowed and we early adopted this update, retrospectively, which resulted in a reclassification of $5.1 million from current deferred tax assets in 2014 to noncurrent deferred tax liabilities. In July 2015, the FASB issued an update which will require an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. For public business entities, this update is effective on a prospective basis for interim and annual periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact of this update on our financial statements. In April 2015, the FASB issued an update that addresses the presentation of debt issuance costs. The update requires an entity to present such costs in the balance sheet as a direct deduction from the carrying amount of the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. In August 2015, the FASB issued a subsequent update which clarifies that the guidance in the previous update does not apply to line-of-credit arrangements. Per the subsequent update, line-of-credit arrangements will continue to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt costs ratably over the term of the arrangement. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. The update will be effective for reporting periods beginning after December 15, 2015 on a retrospective basis. Early adoption is permitted. Other than the revised balance sheet presentation of debt issuance costs from an asset to a deduction from the carrying amount of the debt liability and related disclosures, the adoption of this update is not expected to have an impact on our financial statements. In February 2015, the FASB issued an update which revises the consolidation model. The update modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. The update will be effective for reporting periods beginning after December 15, 2015. Early adoption is permitted. We do not believe the adoption of this update will have a material impact on our financial statements. In May 2014, the FASB issued an update related to revenue recognition. The update outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes the most current revenue recognition guidance, including industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update also requires disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The update will be effective for reporting periods beginning after December 15, 2017, including interim periods within the reporting period. Early adoption is permitted for reporting periods beginning after December 15, 2016. Companies may use either a full retrospective or a modified retrospective approach to adopt this update. We are currently evaluating the potential impact of the update on our financial statements. |
Reportable Segments and Geograp
Reportable Segments and Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Reportable Segments and Geographic Information | 22. Reportable Segments and Geographic Information We manage our business segments primarily based upon the type of product or service provided. We have two reportable segments which we operate within the U.S.: contract operations and aftermarket services. The contract operations segment primarily provides natural gas compression services to meet specific customer requirements. The aftermarket services segment provides a full range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets. We evaluate the performance of our segments based on gross margin for each segment. Revenue includes only sales to external customers. We do not include intersegment sales when we evaluate our segments’ performance. During each of the years ended December 31, 2015 and 2014 , Williams Partners, L.P. accounted for approximately 12% and 10% , respectively, of our consolidated revenue. No other customer accounted for more than 10% of our consolidated revenue during the years ended December 31, 2015 and 2014 and no single customer accounted for more than 10% of our consolidated revenue during the year ended December 31, 2013 . The following table presents sales and other financial information by reportable segment during the years ended December 31, 2015 , 2014 and 2013 (in thousands): Contract Operations Aftermarket Services Reportable Segments Total Other (1) Total (2) 2015: Revenue from external customers $ 781,166 $ 216,942 $ 998,108 $ — $ 998,108 Gross margin (3) 461,765 41,297 503,062 — 503,062 Total assets 2,248,191 149,008 2,397,199 287,944 2,685,143 Capital expenditures 227,248 2,296 229,544 26,598 256,142 2014: Revenue from external customers $ 729,103 $ 230,050 $ 959,153 $ — $ 959,153 Gross margin (3) 412,961 41,799 454,760 — 454,760 Total assets 2,446,633 62,485 2,509,118 334,516 2,843,634 Capital expenditures 371,734 825 372,559 11,282 383,841 2013: Revenue from external customers $ 627,844 $ 234,928 $ 862,772 $ — $ 862,772 Gross margin (3) 345,355 46,439 391,794 — 391,794 Total assets 1,907,097 67,693 1,974,790 238,220 2,213,010 Capital expenditures 275,408 935 276,343 15,187 291,530 (1) Includes corporate related items. (2) Totals exclude assets, capital expenditures and the operating results of discontinued operations. (3) Gross margin, a non-GAAP financial measure, is reconciled, in total, to net income (loss), its most directly comparable measure calculated and presented in accordance with U.S. GAAP, below. The following table presents assets from reportable segments to total assets as of December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 Assets from reportable segments $ 2,397,199 $ 2,509,118 Other assets (1) 287,944 334,516 Assets associated with discontinued operations 21,620 2,083,205 Consolidated assets $ 2,706,763 $ 4,926,839 (1) Includes corporate related items. We define gross margin as total revenue less cost of sales (excluding depreciation and amortization expense). Gross margin is included as a supplemental disclosure because it is a primary measure used by our management to evaluate the results of revenue and cost of sales (excluding depreciation and amortization expense), which are key components of our operations. As an indicator of our operating performance, gross margin should not be considered an alternative to, or more meaningful than, net income (loss) as determined in accordance with GAAP. Our gross margin may not be comparable to a similarly titled measure of another company because other entities may not calculate gross margin in the same manner. The following table reconciles net income (loss) to gross margin (in thousands): Years Ended December 31, 2015 2014 2013 Net income (loss) $ (98,966 ) $ 125,882 $ 155,742 Selling, general and administrative 131,919 132,651 118,851 Depreciation and amortization 229,127 212,268 187,476 Long-lived asset impairment 124,979 42,828 16,696 Restructuring charges 4,745 5,394 — Goodwill impairment 3,738 — — Interest expense 107,617 112,273 112,194 Debt extinguishment costs 9,201 — — Other (income) expense, net (2,079 ) (5,475 ) (22,535 ) Provision for (benefit from) income taxes 53,189 (28,066 ) (17,840 ) Income from discontinued operations, net of tax (60,408 ) (142,995 ) (158,790 ) Gross margin $ 503,062 $ 454,760 $ 391,794 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 23. Selected Quarterly Financial Data (Unaudited) In management’s opinion, the summarized quarterly financial data below (in thousands, except per share amounts) contains all appropriate adjustments, all of which are normally recurring adjustments, considered necessary to present fairly our consolidated financial position and results of operations for the respective periods. March 31, 2015 (1) June 30, 2015 (2) September 30, 2015 (3) December 31, 2015 (4) Revenue from external customers $ 252,873 $ 255,062 $ 248,863 $ 241,310 Gross profit (9) 70,797 67,643 52,949 (21,541 ) Net income (loss) attributable to Archrock stockholders 32,142 (1,389 ) (6,304 ) (130,267 ) Net income (loss) attributable to Archrock common stockholders per share: Basic $ 0.47 $ (0.02 ) $ (0.09 ) $ (1.91 ) Diluted 0.47 (0.02 ) (0.09 ) (1.91 ) March 31, 2014 (5) June 30, 2014 (6) September 30, 2014 (7) December 31, 2014 (8) Revenue from external customers $ 209,738 $ 239,153 $ 247,453 $ 262,809 Gross profit (9) 46,396 56,616 59,738 58,065 Net income attributable to Archrock stockholders 32,596 12,377 34,050 19,143 Net income attributable to Archrock common stockholders per share: Basic $ 0.50 $ 0.19 $ 0.50 $ 0.28 Diluted 0.50 0.19 0.48 0.28 (1) In the first quarter of 2015 , we recorded $34.9 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)) and $8.2 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)). (2) In the second quarter of 2015, we completed the April 2015 Contract Operations Acquisition (see Note 3 (“Business Acquisitions”)). Additionally, we recorded $3.5 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)), $9.5 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”) and $1.2 million of restructuring charges (see Note 13 (“Restructuring Charges”)). (3) In the third quarter of 2015 we recorded $13.7 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)), $19.9 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)) and $0.3 million of restructuring charges (see Note 13 (“Restructuring Charges”)). (4) In the fourth quarter of 2015 , we recorded $8.3 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)), $3.7 million of goodwill impairment (see Note 6 (“Goodwill”)), $87.4 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)) and $3.2 million of restructuring charges (see Note 13 (“Restructuring Charges”)). (5) In the first quarter of 2014, we recorded $41.4 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)), $3.8 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)) and $4.8 million of restructuring charges (see Note 13 “Restructuring Charges”)). (6) In the second quarter of 2014 , we recorded $24.0 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)), $9.8 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)) and $0.4 million of restructuring charges (see Note 13 “Restructuring Charges”)). (7) In the third quarter of 2014, we recorded $32.6 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)), $11.3 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)) and $0.2 million of restructuring charges (see Note 13 (“Restructuring Charges”)). (8) In the fourth quarter of 2014, we recorded $45.0 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)) and $17.9 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)). (9) Gross profit is defined as revenue less cost of sales, direct depreciation and amortization expense and long-lived asset impairment charges. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | 24. Subsequent Event In January 2016, Exterran Corporation received an additional installment payment, including an annual charge, of $5.2 million from PDVSA Gas relating to the 2012 sale of its Venezuelan joint ventures’ previously nationalized assets. Pursuant to the separation and distribution agreement, Exterran Corporation transferred cash to us based on the notional amount of the payment they received from PDVSA Gas in January 2016. The transfer of cash to us will be recognized as an increase to stockholders’ equity on our consolidated balance sheet in the first quarter of 2016. |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (In thousands) Description Balance at Beginning of Period Charged to Costs and Expenses Deductions Balance at End of Period Allowance for doubtful accounts deducted from accounts receivable in the balance sheet December 31, 2015 $ 2,286 3,075 2,018 (1) $ 3,343 December 31, 2014 1,224 1,743 681 (1) 2,286 December 31, 2013 2,938 (191 ) 1,523 (1) 1,224 Allowance for obsolete and slow moving inventory deducted from inventories in the balance sheet December 31, 2015 $ 11,500 4,286 5,976 (2) $ 9,810 December 31, 2014 5,871 8,896 3,267 (2) 11,500 December 31, 2013 4,107 3,904 2,140 (2) 5,871 Allowance for deferred tax assets not expected to be realized December 31, 2015 633 — — 633 December 31, 2014 633 — — 633 December 31, 2013 633 — — 633 (1) Uncollectible accounts written off. (2) Obsolete inventory written off at cost of value received. |
Organization and Summary of S33
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include Archrock and its wholly-owned and majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation. For financial reporting purposes, we consolidate the financial statements of Archrock Partners, L.P. (together with its subsidiaries, the “Partnership”) with those of our own and reflect its operations in our contract operations business segment. We control the Partnership through our ownership of its general partner. Public ownership of the Partnership’s net assets and earnings is presented as a component of noncontrolling interest in our consolidated financial statements. The borrowings of the Partnership are presented as part of our consolidated debt. However, we do not have any obligation for the payment of interest or repayment of borrowings incurred by the Partnership. |
Use of Estimates in the Financial Statements | Use of Estimates in the Consolidated Financial Statements The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses, as well as the disclosures of contingent assets and liabilities. Because of the inherent uncertainties in this process, actual future results could differ from those expected at the reporting date. Management believes that the estimates and assumptions used are reasonable. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Revenue Recognition | Revenue Recognition Contract operations revenue is recognized when earned, which generally occurs monthly when service is provided under our customer contracts. Aftermarket services revenue is recognized as products are delivered and title is transferred or services are performed for the customer. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. We believe that the credit risk in temporary cash investments is limited because our cash is held in accounts with multiple financial institutions. Trade accounts receivable are due from companies of varying size engaged principally in oil and natural gas activities throughout the U.S. We review the financial condition of customers prior to extending credit and generally do not obtain collateral for trade receivables. Payment terms are on a short-term basis and in accordance with industry practice. We consider this credit risk to be limited due to these companies’ financial resources, the nature of products and services we provide and the terms of our contract operations customer service agreements. We maintain allowances for doubtful accounts for estimated losses resulting from our customers’ inability to make required payments. The determination of the collectability of amounts due from our customers requires us to use estimates and make judgments regarding future events and trends, including monitoring our customers’ payment history and current creditworthiness to determine that collectability is reasonably assured, as well as consideration of the overall business climate in which our customers operate. Inherently, these uncertainties require us to make judgments and estimates regarding our customers’ ability to pay amounts due to us in order to determine the appropriate amount of valuation allowances required for doubtful accounts. We review the adequacy of our allowance for doubtful accounts quarterly. We determine the allowance needed based on historical write-off experience and by evaluating significant balances aged greater than 90 days individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Inventory | Inventory Inventory consists of parts used for maintenance of natural gas compression equipment. Inventory is stated at the lower of cost or market using the average-cost method. A reserve is recorded against inventory balances for estimated obsolescence based on specific identification and historical experience. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives as follows: Compression equipment, facilities and other fleet assets 3 to 30 years Buildings 20 to 35 years Transportation, shop equipment and other 3 to 10 years Major improvements that extend the useful life of an asset are capitalized. Repairs and maintenance are expensed as incurred. When property, plant and equipment is sold, retired or otherwise disposed of, the gain or loss is recorded in other (income) expense, net. Interest is capitalized during the construction period on equipment and facilities that are constructed for use in our operations. The capitalized interest is included as part of the cost of the asset to which it relates and is amortized over the asset’s estimated useful life. |
Computer software | Computer software Certain costs related to the development or purchase of internal-use software are capitalized and amortized over the estimated useful life of the software, which ranges from three to five years . Costs related to the preliminary project stage and the post-implementation/operation stage of an internal-use computer software development project are expensed as incurred. |
Long-Lived Assets | Long-Lived Assets We review long-lived assets, including property, plant and equipment and identifiable intangibles that are being amortized, for impairment whenever events or changes in circumstances, including the removal of compressor units from our active fleet, indicate that the carrying amount of an asset may not be recoverable. An impairment loss exists when estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. When necessary, an impairment loss is recognized and represents the excess of the asset’s carrying value as compared to its estimated fair value and is charged to the period in which the impairment occurred. Identifiable intangibles are amortized over the assets’ estimated useful lives. |
Goodwill | Goodwill Goodwill acquired in connection with business combinations represents the excess of consideration over the fair value of tangible and identifiable intangible net assets acquired. Certain assumptions and estimates are employed in determining the fair value of assets acquired and liabilities assumed, as well as in determining the allocation of goodwill to the appropriate reporting unit. We review the carrying value of our goodwill for potential impairment in the fourth quarter of every year, or whenever events or other circumstances indicate that we may not be able to recover the carrying amount. We first assess qualitative factors to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as the basis for determining whether it is necessary to perform the two-step goodwill impairment test. We may elect to perform the two-step goodwill impairment test without completing a qualitative assessment. If a two-step process goodwill impairment test is elected or required, the first step is to compare the implied fair value of our reporting unit with its carrying value (including the goodwill). If the implied fair value of the reporting unit is higher than the carrying value, no impairment is deemed to exist and no further testing is required. If, however, the implied fair value of the reporting unit is below the recorded carrying value, then a second step must be performed to determine the goodwill impairment required, if any. We calculate the implied fair value of the reporting unit goodwill by allocating the estimated fair value of the reporting unit to all of the assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss for that excess amount. Determining the fair value of a reporting unit under the first step of the goodwill impairment test is judgmental in nature and involves the use of significant estimates and assumptions, which have a significant impact on the fair value determined. We determine the fair value of our reporting unit using both the expected present value of future cash flows and a market approach. Each approach is weighted 50% in determining our calculated fair value. The present value of future cash flows is estimated using our most recent forecast and the weighted average cost of capital. The market approach uses a market multiple on the earnings before interest expense, provision for income taxes and depreciation and amortization expense of comparable peer companies. Significant estimates for our reporting unit included in our impairment analysis are our cash flow forecasts, our estimate of the market’s weighted average cost of capital and market multiples. Beginning in late 2014 and extending throughout 2015, the energy markets experienced a significant reduction in oil and natural gas prices which has had a significant impact on the financial performance and operating results of many oil and natural gas companies. Such declines accelerated in the fourth quarter of 2015, resulting in higher borrowing costs for companies and a substantial reduction in forecasted capital spending across the energy industry leading to lower projected growth rates over the short-term. Such declines impacted our future cash flow forecasts, our market capitalization, and the market capitalization of peer companies. We identified these conditions as a triggering event, which required us to perform a goodwill impairment test as of December 31, 2015. As of this filing, we have not completed the goodwill impairment analysis, due to the complexities involved in determining the implied fair value of goodwill in the second step of the goodwill impairment test. However, based on the work performed to date, we have concluded that an impairment is probable and can be reasonably estimated. Accordingly, we recorded a full impairment of our remaining goodwill in the fourth quarter of 2015 of $3.7 million which is presented in goodwill impairment on the consolidated statement of operations. We expect to finalize the goodwill impairment analysis during the first quarter of 2016 and any resulting adjustment to the impairment will be recorded at that time. |
Other (Income) Expense, Net | Other (Income) Expense, Net Other (income) expense, net, is primarily comprised of gains and losses from the sale of used assets. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the consolidated financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with the accounting standard on income taxes under a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. |
Hedging and Use of Derivative Instruments | Hedging and Use of Derivative Instruments We use derivative financial instruments to minimize the risks and/or costs associated with financial activities by managing our exposure to interest rate fluctuations on a portion of our debt obligations. We do not use derivative financial instruments for trading or other speculative purposes. We record interest rate swaps on the balance sheet as either derivative assets or derivative liabilities measured at their fair value. The fair value of our derivatives is estimated using a combination of the market and income approach based on forward London Interbank Offered Rate (“LIBOR”) curves. Changes in the fair value of the derivatives designated as cash flow hedges are deferred in accumulated other comprehensive income (loss), net of tax, to the extent the contracts are effective as hedges until settlement of the underlying hedged transaction. To qualify for hedge accounting treatment, we must formally document, designate and assess the effectiveness of the transactions. If the necessary correlation ceases to exist or if the anticipated transaction becomes improbable, we would discontinue hedge accounting and apply mark-to-market accounting. Amounts paid or received from interest rate swap agreements are charged or credited to interest expense and matched with the cash flows and interest expense of the debt being hedged, resulting in an adjustment to the effective interest rate. |
Income (Loss) Attributable to Archrock Common Stockholders Per Common Share | Income (Loss) Attributable to Archrock Common Stockholders Per Common Share Basic income (loss) attributable to Archrock common stockholders per common share is computed using the two-class method, which is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under the two-class method, basic income (loss) attributable to Archrock common stockholders per common share is determined by dividing income (loss) attributable to Archrock common stockholders after deducting amounts allocated to participating securities, by the weighted average number of common shares outstanding for the period. Participating securities include our unvested restricted stock and certain stock settled restricted stock units that have nonforfeitable rights to receive dividends or dividend equivalents, whether paid or unpaid. During periods of net loss, no effect is given to participating securities because they do not have a contractual obligation to participate in our losses. Diluted income (loss) attributable to Archrock common stockholders per common share is computed using the weighted average number of shares outstanding adjusted for the incremental common stock equivalents attributed to outstanding options and warrants to purchase common stock, restricted stock units, stock to be issued pursuant to our employee stock purchase plan and convertible senior notes, unless their effect would be anti-dilutive. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Components of comprehensive income (loss) are net income (loss) and all changes in equity during a period except those resulting from transactions with owners. Our accumulated other comprehensive income (loss) consists of foreign currency translation adjustments, changes in the fair value of derivative financial instruments, net of tax, that are designated as cash flow hedges and to the extent the hedge is effective, amortization of terminated interest rate swaps and adjustments related to changes in our ownership of the Partnership. |
Financial Instruments | Financial Instruments Our financial instruments consist of cash, receivables, payables, interest rate swaps and debt. At December 31, 2015 and 2014 , the estimated fair values of these financial instruments approximated their carrying amounts as reflected in our consolidated balance sheets. The fair value of our fixed rate debt was estimated based on quoted market yields in inactive markets, which are Level 2 inputs. The fair value of our floating rate debt was estimated using a discounted cash flow analysis based on interest rates offered on loans with similar terms to borrowers of similar credit quality, which are Level 3 inputs. See Note 11 (“Fair Value Measurements”) for additional information regarding the fair value hierarchy. GAAP requires that all derivative instruments (including certain derivative instruments embedded in other contracts) be recognized in the balance sheet at fair value and that changes in such fair values be recognized in earnings (loss) unless specific hedging criteria are met. Changes in the values of derivatives that meet these hedging criteria will ultimately offset related earnings effects of the hedged item pending recognition in earnings. |
Recent Accounting Development | In February 2016, the Financial Accounting Standards Board (“FASB”) issued an update which establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Under the new guidance, lessor accounting is largely unchanged. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of this update on our financial statements. In November 2015, the FASB issued an update related to the balance sheet classification of deferred taxes. The update simplifies the presentation of deferred income taxes to require that all deferred income tax assets and liabilities be classified as noncurrent and eliminates the current classification. Proration of valuation allowances is eliminated and classification of a deferred tax asset or liability is no longer based on the classification of the related asset or liability. The update will be effective for reporting periods beginning after December 15, 2016 and can be applied prospectively or retrospectively. Early adoption is allowed and we early adopted this update, retrospectively, which resulted in a reclassification of $5.1 million from current deferred tax assets in 2014 to noncurrent deferred tax liabilities. In July 2015, the FASB issued an update which will require an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. For public business entities, this update is effective on a prospective basis for interim and annual periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact of this update on our financial statements. In April 2015, the FASB issued an update that addresses the presentation of debt issuance costs. The update requires an entity to present such costs in the balance sheet as a direct deduction from the carrying amount of the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. In August 2015, the FASB issued a subsequent update which clarifies that the guidance in the previous update does not apply to line-of-credit arrangements. Per the subsequent update, line-of-credit arrangements will continue to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt costs ratably over the term of the arrangement. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. The update will be effective for reporting periods beginning after December 15, 2015 on a retrospective basis. Early adoption is permitted. Other than the revised balance sheet presentation of debt issuance costs from an asset to a deduction from the carrying amount of the debt liability and related disclosures, the adoption of this update is not expected to have an impact on our financial statements. In February 2015, the FASB issued an update which revises the consolidation model. The update modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. The update will be effective for reporting periods beginning after December 15, 2015. Early adoption is permitted. We do not believe the adoption of this update will have a material impact on our financial statements. In May 2014, the FASB issued an update related to revenue recognition. The update outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes the most current revenue recognition guidance, including industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update also requires disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The update will be effective for reporting periods beginning after December 15, 2017, including interim periods within the reporting period. Early adoption is permitted for reporting periods beginning after December 15, 2016. Companies may use either a full retrospective or a modified retrospective approach to adopt this update. We are currently evaluating the potential impact of the update on our financial statements. |
Organization and Summary of S34
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Estimated useful lives of property, plant and equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives as follows: Compression equipment, facilities and other fleet assets 3 to 30 years Buildings 20 to 35 years Transportation, shop equipment and other 3 to 10 years |
Summary of net income (loss) attributable to Exterran common stockholders used in the calculation of basic and diluted income per common share | The following table summarizes net income (loss) attributable to Archrock common stockholders used in the calculation of basic and diluted income (loss) per common share (in thousands): Years Ended December 31, 2015 2014 2013 Loss from continuing operations attributable to Archrock stockholders $ (166,226 ) $ (44,829 ) $ (35,626 ) Income from discontinued operations, net of tax 60,408 142,995 158,790 Net income (loss) attributable to Archrock shareholders (105,818 ) 98,166 123,164 Less: Net income attributable to participating securities (514 ) (495 ) — Net income (loss) attributable to Archrock common stockholders $ (106,332 ) $ 97,671 $ 123,164 |
Schedule of potential shares of common stock that were included in computing diluted income (loss) attributable to Exterran stockholders per common share | The following table shows the potential shares of common stock that were included in computing diluted income (loss) attributable to Archrock common stockholders per common share (in thousands): Years Ended December 31, 2015 2014 2013 Weighted average common shares outstanding including participating securities 69,389 67,175 65,655 Less: Weighted average participating securities outstanding (956 ) (941 ) (1,201 ) Weighted average common shares outstanding — used in basic income (loss) per common share 68,433 66,234 64,454 Net dilutive potential common shares issuable: On exercise of options and vesting of restricted stock units * * * On settlement of employee stock purchase plan shares * * * On exercise of warrants * * * On conversion of 4.25% convertible senior notes due 2014 ** * * On conversion of 4.75% convertible senior notes due 2014 ** ** * Weighted average common shares outstanding — used in diluted income (loss) per common share 68,433 66,234 64,454 * Excluded from diluted income (loss) per common share as their inclusion would have been anti-dilutive. ** Not applicable as the debt instrument was not outstanding during the period. |
Schedule of potential shares of common stock issuable, excluded from computation of diluted income (loss), attributable to Exterran stockholders per common share | The following table shows the potential shares of common stock issuable that were excluded from computing diluted income (loss) attributable to Archrock common stockholders per common share as their inclusion would have been anti-dilutive (in thousands): Years Ended December 31, 2015 2014 2013 Net dilutive potential common shares issuable: On exercise of options where exercise price is greater than average market value for the period 572 515 734 On exercise of options and vesting of restricted stock units 214 490 547 On settlement of employee stock purchase plan shares — 1 2 On exercise of warrants — 10,666 12,426 On conversion of 4.25% convertible senior notes due 2014 — 7,073 15,334 On conversion of 4.75% convertible senior notes due 2014 — — 119 Net dilutive potential common shares issuable 786 18,745 29,162 |
Schedule of changes in accumulated other comprehensive income (loss) by component, net of tax, excluding noncontrolling interest | The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax and excluding noncontrolling interest, during the years ended December 31, 2013 , 2014 and 2015 : Derivatives Cash Flow Hedges Foreign Currency Translation Adjustment Total Accumulated other comprehensive income (loss), January 1, 2013 $ (2,984 ) $ 26,893 $ 23,909 Loss recognized in other comprehensive income (loss), net of tax (476 ) (1) (2,960 ) (3,436 ) Loss reclassified from accumulated other comprehensive income (loss), net of tax 2,114 (2) 7,491 (3) 9,605 Other comprehensive income attributable to Archrock stockholders 1,638 4,531 6,169 Accumulated other comprehensive income (loss), December 31, 2013 $ (1,346 ) $ 31,424 $ 30,078 Loss recognized in other comprehensive income (loss), net of tax (1,295 ) (4) (11,871 ) (13,166 ) (Gain) loss reclassified from accumulated other comprehensive income (loss), net of tax 1,730 (5) (2,777 ) (6) (1,047 ) Other comprehensive income (loss) attributable to Archrock stockholders 435 (14,648 ) (14,213 ) Accumulated other comprehensive income (loss), December 31, 2014 $ (911 ) $ 16,776 $ 15,865 Loss recognized in other comprehensive income (loss), net of tax (2,713 ) (7) (3,558 ) (6,271 ) (Gain) loss reclassified from accumulated other comprehensive income (loss), net of tax 2,054 (8) (13,218 ) (9) (11,164 ) Other comprehensive loss attributable to Archrock stockholders (659 ) (16,776 ) (17,435 ) Accumulated other comprehensive income (loss), December 31, 2015 $ (1,570 ) $ — $ (1,570 ) (1) During the year ended December 31, 2013 , we recognized a loss of $0.5 million and a tax benefit of $0.1 million , in other comprehensive income (loss), net of tax, related to changes in the fair value of derivative financial instruments. (2) During the year ended December 31, 2013 , we reclassified a $3.2 million loss to interest expense and a tax benefit of $1.1 million to provision for (benefit from) income taxes in our consolidated statements of operations from accumulated other comprehensive income (loss). (3) During the year ended December 31, 2013 , we reclassified losses of $7.5 million related to foreign currency translation adjustments to income from discontinued operations, net of tax in our consolidated statements of operations. These amounts represent cumulative foreign currency translation adjustments associated with Exterran Corporation’s contract operations and aftermarket services businesses in Canada and United Kingdom entity that were sold during the year ended December 31, 2013. (4) During the year ended December 31, 2014 , we recognized a loss of $2.0 million and a tax benefit of $0.7 million , in other comprehensive income (loss), net of tax, related to changes in the fair value of derivative financial instruments. (5) During the year ended December 31, 2014 , we reclassified a $2.6 million loss to interest expense and a tax benefit of $0.9 million to provision for (benefit from) income taxes in our consolidated statements of operations from accumulated other comprehensive income (loss). (6) During the year ended December 31, 2014 , we reclassified a gain of $2.8 million related to foreign currency translation adjustments to discontinued operations, net of tax, in our consolidated statements of operations. This amount represents cumulative foreign currency translation adjustments associated with Exterran Corporation’s contract operations and aftermarket services businesses in Australia, which were sold in December 2014 , that previously had been recognized in accumulated other comprehensive income (loss). (7) During the year ended December 31, 2015 , we recognized a loss of $4.1 million and a tax benefit of $1.4 million , in other comprehensive income (loss), net of tax, related to changes in the fair value of derivative financial instruments. (8) During the year ended December 31, 2015 , we reclassified a $3.2 million loss to interest expense and a tax benefit of $1.1 million to provision for (benefit from) income taxes in our consolidated statements of operations from accumulated other comprehensive income (loss). (9) During the year ended December 31, 2015 , we reclassified a loss of $13.2 million related to foreign currency translation adjustments to additional paid in capital, in our consolidated balance sheet. This amount represents cumulative foreign currency translation adjustments associated with the businesses of Exterran Corporation which were spun-off in November 2015, that previously had been recognized in accumulated other comprehensive income (loss). See Note 2 (‘Discontinued Operations”) for further discussion of the Spin-off. |
Summary of carrying amount and fair value of debt | The following table summarizes the carrying amount and fair value of our debt as of December 31, 2015 and 2014 (in thousands): December 31, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Fixed rate debt $ 691,465 $ 524,000 $ 1,040,295 $ 960,000 Floating rate debt 897,000 897,000 985,500 986,000 Total debt $ 1,588,465 $ 1,421,000 $ 2,025,795 $ 1,946,000 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of operating results and balance sheet data for discontinued operations | The following table summarizes the operating results of discontinued operations (in thousands): Years Ended December 31, 2015 2014 2013 Exterran Corporation (1) Contract Treatment Business Total Exterran Corporation Contract Treatment Business Total Exterran Corporation Contract Treatment Business Total Revenue $ 1,424,184 $ — $ 1,424,184 $ 1,940,585 $ — $ 1,940,585 $ 2,297,632 $ 3,425 $ 2,301,057 Cost of sales (excluding depreciation and amortization expense) 1,017,912 222 1,018,134 1,364,051 479 1,364,530 1,726,420 3,015 1,729,435 Selling, general and administrative 171,912 — 171,912 245,103 30 245,133 239,322 337 239,659 Depreciation and amortization 124,321 — 124,321 173,803 — 173,803 140,029 — 140,029 Long-lived asset impairment 14,264 — 14,264 3,851 319 4,170 11,941 2,355 14,296 Restructuring charges 43,884 — 43,884 2,159 — 2,159 — — — Interest expense 1,578 — 1,578 1,905 — 1,905 3,551 — 3,551 Equity in income of non-consolidated affiliates (15,152 ) — (15,152 ) (14,553 ) — (14,553 ) (19,000 ) — (19,000 ) Other (income) loss, net (2) (23,782 ) — (23,782 ) (65,976 ) (27 ) (66,003 ) (68,115 ) 1,002 (67,113 ) Income (loss) from discontinued operations before income taxes 89,247 (222 ) 89,025 230,242 (801 ) 229,441 263,484 (3,284 ) 260,200 Provision for (benefit from) income taxes 28,705 (88 ) 28,617 86,723 (277 ) 86,446 102,559 (1,149 ) 101,410 Income (loss) from discontinued operations, net of tax $ 60,542 $ (134 ) $ 60,408 $ 143,519 $ (524 ) $ 142,995 $ 160,925 $ (2,135 ) $ 158,790 (1) Includes the results of operations of Exterran Corporation and costs directly attributable to the Spin-off. (2) Includes income from discontinued operations, net of tax, related to previously discontinued Venezuela and Canada operations of $56.8 million, $73.2 million, and $66.1 million for the year ended December 31, 2015, 2014, and 2013, respectively. The following table summarizes the balance sheet data for discontinued operations (in thousands): December 31, 2015 December 31, 2014 Exterran Corporation Contract Water Treatment Business Total Exterran Corporation Contract Water Treatment Business Total Cash and cash equivalents $ — $ — $ — $ 39,792 $ — $ 39,792 Restricted cash — — — 1,490 — 1,490 Accounts receivable — — — 398,072 69 398,141 Inventory — — — 257,785 — 257,785 Costs and estimated earnings in excess of billings on uncompleted contracts — — — 120,938 — 120,938 Other current assets 420 — 420 54,012 — 54,012 Total current assets associated with discontinued operations 420 — 420 872,089 69 872,158 Property, plant and equipment — — — 954,811 — 954,811 Intangibles and other assets, net 5,714 — 5,714 238,767 — 238,767 Deferred income taxes — 15,486 15,486 — 17,469 17,469 Total assets associated with discontinued operations $ 6,134 $ 15,486 $ 21,620 $ 2,065,667 $ 17,538 $ 2,083,205 Accounts payable $ — $ — $ — $ 162,040 $ 1 $ 162,041 Accrued liabilities — — — 169,066 727 169,793 Deferred income taxes 420 — 420 — — — Deferred revenue — — — 64,820 — 64,820 Billings on uncompleted contracts in excess of costs and estimated earnings — — — 76,277 — 76,277 Total current liabilities associated with discontinued operations 420 — 420 472,203 728 472,931 Long-term debt — — — 1,107 — 1,107 Deferred income taxes 5,714 — 5,714 39,100 — 39,100 Other long-term liabilities — — — 68,876 — 68,876 Total liabilities associated with discontinued operations $ 6,134 $ — $ 6,134 $ 581,286 $ 728 $ 582,014 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Acquisitions | |
Schedule of unaudited pro forma financial information | The following table shows unaudited pro forma financial information for the years ended December 31, 2014 and 2013 (in thousands, except per share amounts): Years Ended December 31, 2014 2013 Revenue $ 996,961 $ 974,518 Net income attributable to Archrock common stockholders $ 100,208 $ 127,028 Basic net income per common share attributable to Archrock common stockholders $ 1.51 $ 1.97 Diluted net income per common share attributable to Archrock common stockholders $ 1.51 $ 1.97 |
August 2014 MidCon Acquisition | |
Business Acquisitions | |
Summary of purchase price allocation based on estimated fair values of acquired assets and liabilities as of the acquisition date | The following table summarizes the purchase price allocation based on estimated fair values of the acquired assets and liabilities as of the acquisition date (in thousands): Fair Value Inventory $ 2,302 Property, plant and equipment 80,154 Goodwill 3,738 Intangible assets 48,373 Current liabilities (372 ) Purchase price $ 134,195 |
Schedule of amounts allocated to acquired finite-lived intangible assets, and their associated weighted-average useful lives | The amount of finite life intangible assets, and their associated average useful lives, was determined based on the period which the assets are expected to contribute directly or indirectly to our future cash flows, and consisted of the following: Amount (In thousands) Average Useful Life Customer related $ 21,590 25 years Contract based 26,783 5 years Total acquired identifiable intangible assets $ 48,373 |
April 2014 MidCon Acquisition | |
Business Acquisitions | |
Summary of purchase price allocation based on estimated fair values of acquired assets and liabilities as of the acquisition date | The following table summarizes the purchase price allocation based on estimated fair values of the acquired assets and liabilities as of the acquisition date (in thousands): Fair Value Inventory $ 4,357 Property, plant and equipment 314,556 Intangible assets 42,474 Current liabilities (827 ) Purchase price $ 360,560 |
Schedule of amounts allocated to acquired finite-lived intangible assets, and their associated weighted-average useful lives | The amount of finite life intangible assets, and their associated average useful lives, was determined based on the period which the assets are expected to contribute directly or indirectly to our future cash flows, and consisted of the following: Amount (In thousands) Average Useful Life Customer related $ 4,701 25 years Contract based 37,773 7 years Total acquired identifiable intangible assets $ 42,474 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory, net of reserves | Inventory consisted of the following amounts (in thousands): December 31, 2015 2014 Parts and supplies $ 109,634 $ 120,646 Work in progress 19,777 25,140 Inventory $ 129,411 $ 145,786 |
Property, Plant and Equipment38
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment, net | Property, plant and equipment, net, consisted of the following (in thousands): December 31, 2015 2014 Compression equipment, facilities and other fleet assets $ 3,292,364 $ 3,401,594 Land and buildings 53,175 51,391 Transportation and shop equipment 108,998 103,207 Other 109,291 84,382 3,563,828 3,640,574 Accumulated depreciation (1,296,040 ) (1,268,493 ) Property, plant and equipment, net $ 2,267,788 $ 2,372,081 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the change in the carrying value of goodwill for the year ended December 31, 2015 (in thousands): December 31, 2015 Goodwill as of January 1, 2015 3,738 Goodwill acquired during year — Impairment losses (3,738 ) Goodwill as of December 31, 2015 — |
Intangible and Other Assets, 40
Intangible and Other Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible and other assets, net | Intangible and other assets, net, consisted of the following (in thousands): December 31, 2015 2014 Deferred financing costs, net $ 20,612 $ 23,795 Intangible assets, net 100,822 117,915 Other 11,038 12,443 Intangibles and other assets, net $ 132,472 $ 154,153 |
Summary of intangible assets and deferred financing costs | Intangible assets and deferred financing costs consisted of the following (in thousands): December 31, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Deferred financing costs $ 40,066 $ (19,454 ) $ 41,790 $ (17,995 ) Marketing related (5 year life) 330 (312 ) 330 (268 ) Customer related (10-25 year life) 107,008 (53,957 ) 107,008 (47,859 ) Contract based (5-7 year life) 74,336 (26,583 ) 74,336 (15,632 ) Intangible assets and deferred financing costs $ 221,740 $ (100,306 ) $ 223,464 $ (81,754 ) |
Estimated future intangible amortization expense | Estimated future intangible amortization expense is as follows (in thousands): 2016 $ 16,618 2017 16,091 2018 15,673 2019 13,047 2020 9,562 Thereafter 29,831 Total $ 100,822 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Summary of accrued liabilities | Accrued liabilities consisted of the following (in thousands): December 31, 2015 2014 Accrued salaries and other benefits $ 27,066 $ 39,182 Accrued income and other taxes 15,006 20,807 Accrued interest 12,675 14,286 Interest rate swaps fair value 4,608 4,958 Accrued other liabilities 20,698 11,949 Accrued liabilities $ 80,053 $ 91,182 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following (in thousands): December 31, 2015 2014 Revolving credit facility due July 2016 $ — $ 375,500 Revolving credit facility due November 2020 166,500 — Partnership’s revolving credit facility due May 2018 580,500 460,000 Partnership’s term loan facility due May 2018 150,000 150,000 Partnership’s 6% senior notes due April 2021 (presented net of the unamortized discount of $3.9 million and $4.5 million, respectively) 346,138 345,528 Partnership’s 6% senior notes due October 2022 (presented net of the unamortized discount of $4.7 million and $5.2 million, respectively) 345,327 344,767 7.25% senior notes due December 2018 — 350,000 Long-term debt $ 1,588,465 $ 2,025,795 |
Summary of contractual maturities of long-term debt (excluding interest to be accrued thereon) | Contractual maturities of long-term debt (excluding interest to be accrued thereon) at December 31, 2015 are as follows (in thousands): December 31, 2016 $ — 2017 — 2018 730,500 2019 — 2020 166,500 Thereafter (1) 700,000 Total debt (1) $ 1,597,000 (1) These amounts include the full face value of the Partnership 2013 Notes and the Partnership 2014 Notes and have not been reduced by the aggregate unamortized discount of $8.6 million as of December 31, 2015 . |
Accounting for Derivatives (Tab
Accounting for Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of derivative instruments on consolidated financial position | The following tables present the effect of derivative instruments on our consolidated financial position and results of operations (in thousands): December 31, 2015 December 31, 2014 Balance Sheet Location Fair Value Asset (Liability) Fair Value Asset (Liability) Derivatives designated as hedging instruments: Interest rate swaps Intangible and other assets, net $ 45 $ 712 Interest rate swaps Accrued liabilities (4,608 ) (4,958 ) Interest rate swaps Other long-term liabilities (1,421 ) (150 ) Total derivatives $ (5,984 ) $ (4,396 ) |
Effect of derivative instruments on results of operations | Pre-tax Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives Location of Pre-tax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) Pre-tax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) Derivatives designated as cash flow hedges: Interest rate swaps Year ended December 31, 2015 $ (8,901 ) Interest expense $ (7,259 ) Year ended December 31, 2014 (5,879 ) Interest expense (5,657 ) Year ended December 31, 2013 3,057 Interest expense (6,124 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of assets and liabilities measured at fair value on recurring basis | The following table presents our assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 , with pricing levels as of the date of valuation (in thousands): December 31, 2015 December 31, 2014 (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Interest rate swaps asset $ — $ 45 $ — $ — $ 712 $ — Interest rate swaps liability — (6,029 ) — — (5,108 ) — |
Summary of assets and liabilities measured at fair value on nonrecurring basis | The following table presents our assets and liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2015 and 2014 , with pricing levels as of the date of valuation (in thousands): December 31, 2015 December 31, 2014 (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Impaired long-lived assets $ — $ — $ 12,565 $ — $ — $ 3,359 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Summary of changes to accrued liability balance related to restructuring charges | The following table summarizes the changes to our accrued liability balance related to restructuring charges for the year ended December 31, 2015 and December 31, 2014 (in thousands): Spin-off Cost Reduction Plan Total Balance at January 1, 2014 $ — $ — $ — Additions for costs expensed — 5,394 5,394 Less: non-cash expense — (4,103 ) (4,103 ) Reductions for payments — (1,291 ) (1,291 ) Balance at January 1, 2015 $ — $ — $ — Additions for costs expensed 4,135 610 4,745 Less: non-cash expense (2,515 ) $ — (2,515 ) Reductions for payments (765 ) (610 ) (1,375 ) Balance at December 31, 2015 $ 855 $ — $ 855 |
Schedule of components of charges included in restructuring and other charges | The following table summarizes the components of charges included in restructuring and other charges in our consolidated statements of operations for the year ended December 31, 2015 and December 31, 2014 (in thousands): Year ended December 31, 2015 Year ended December 31, 2014 Retention and severance benefits $ 3,135 $ — Non-cash inventory write-downs 1,000 4,103 Employee termination benefits 610 1,291 Total restructuring and other charges $ 4,745 $ 5,394 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of provision for (benefit from) income taxes | The provision for (benefit from) income taxes consisted of the following (in thousands): Years Ended December 31, 2015 2014 2013 Current tax provision (benefit): U.S. federal $ 556 $ 23 $ (310 ) State 1,415 (654 ) 938 Total current 1,971 (631 ) 628 Deferred tax provision (benefit): U.S. federal 48,450 (23,786 ) (18,397 ) State 2,768 (3,649 ) (71 ) Total deferred 51,218 (27,435 ) (18,468 ) Provision for (benefit from) income taxes $ 53,189 $ (28,066 ) $ (17,840 ) |
Reconciliation of effective tax rate and U.S. statutory rate. | The reasons for the differences between these effective tax rates and the U.S. statutory rate of 35% are as follows (in thousands): Years Ended December 31, 2015 2014 2013 Income taxes at U.S. federal statutory rate of 35% $ (37,165 ) $ (15,813 ) $ (7,311 ) Net state income taxes 2,383 (5,253 ) 937 Noncontrolling interest (2,904 ) (11,166 ) (12,685 ) Unrecognized tax benefits 698 4,063 416 Valuation allowances and write off of tax attributes 88,088 — — Other 2,089 103 803 Provision for (benefit from) income taxes $ 53,189 $ (28,066 ) $ (17,840 ) |
Tax effects of deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 8,028 $ 37,668 Inventory 3,642 4,405 Alternative minimum tax credit carryforwards 1,496 5,685 Accrued liabilities 11,466 7,894 Other 4,913 — Subtotal 29,545 55,652 Valuation allowances (633 ) (633 ) Total deferred tax assets 28,912 55,019 Deferred tax liabilities: Property, plant and equipment (53,495 ) (126,670 ) Basis difference in the Partnership (148,421 ) (136,438 ) Other (5,562 ) (10,583 ) Total deferred tax liabilities (207,478 ) (273,691 ) Net deferred tax liabilities $ (178,566 ) $ (218,672 ) |
Reconciliation of beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits (including discontinued operations) is shown below (in thousands): Years Ended December 31, 2015 2014 2013 Beginning balance $ 14,595 $ 11,259 $ 9,597 Additions based on tax positions related to current year 845 954 365 Additions based on tax positions related to prior years 3,648 2,597 1,710 Reductions based on settlement with government authority — — — Reductions based on lapse of statute of limitations — (215 ) (97 ) Reductions based on tax positions related to prior years (592 ) — (316 ) Reductions based on tax positions transferred to Exterran Corp. (6,498 ) $ — $ — Ending balance $ 11,998 $ 14,595 $ 11,259 |
Stock-Based Compensation and 47
Stock-Based Compensation and Awards (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of weighted average assumptions | The weighted average grant date fair value for stock options granted during the years ended December 31, 2014 and 2013 was $14.47 and $10.19 , respectively, and was estimated using the Black-Scholes option valuation model with the following weighted average assumptions: Years Ended December 31, 2014 2013 Expected life in years 4.5 4.5 Risk-free interest rate 1.33 % 0.66 % Volatility 46.51 % 49.19 % Dividend yield 1.5 % 0.0 % |
Summary of stock option activity | The following table presents stock option activity during the year ended December 31, 2015 : Stock Options (in thousands) Weighted Average Exercise Price Per Share (2) Weighted Average Remaining Life (in years) Aggregate Intrinsic Value (in thousands) Options outstanding, January 1, 2015 1,495 $ 33.39 Granted — — Exercised (90 ) 12.29 Canceled (300 ) 59.91 Spin-off of Exterran Corporation (1) 142 (56.65 ) Options outstanding, December 31, 2015 1,247 18.28 2.2 $ 278 Options exercisable, December 31, 2015 1,118 17.97 1.9 278 (1) Reflects adjustment of awards outstanding and the exercise price as a result of the Spin-off. (2) Activity prior to the Spin-off reflects historical exercise price. |
Schedule of restricted stock, restricted stock unit, performance unit, cash settled restricted stock unit and cash settled performance award activity | The following table presents restricted stock, stock-settled restricted stock unit, performance unit, cash-settled restricted stock unit and cash-settled performance unit activity during the year ended December 31, 2015 : Shares (in thousands) Weighted Average Grant-Date Fair Value Per Share (3) Non-vested awards, January 1, 2015 1,170 $ 27.37 Granted 1,008 25.49 Vested (809 ) 23.05 Canceled (53 ) 30.25 Spin-off of Exterran Corporation (1) (161 ) (99.93 ) Non-vested awards, December 31, 2015 (2) 1,155 18.50 (1) Reflects adjustment of outstanding awards in connection with and the grant date fair value adjusted as a result of, the Spin-off. (2) Non-vested awards as of December 31, 2015 are comprised of 55,000 cash settled restricted stock units and cash settled performance units and 1,100,000 restricted shares, stock-settled restricted stock units and performance units. (3) Excluding the Spin-off of Exterran Corporation adjustment, reflects historical grant date fair value. |
Schedule of phantom unit activity | The following table presents phantom unit activity during the year ended December 31, 2015 : Phantom Units (in thousands) Weighted Average Grant-Date Fair Value per Unit Phantom units outstanding, January 1, 2015 92 $ 27.38 Granted 45 24.87 Vested (60 ) 25.94 Phantom units outstanding, December 31, 2015 77 27.01 |
Cash Dividends (Tables)
Cash Dividends (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Dividends [Abstract] | |
Summary of entity's dividends per common share | The following table summarizes our dividends per common share: Declaration Date Payment Date Dividends per Common Share Total Dividends February 25, 2014 March 28, 2014 $ 0.15 $ 10.0 million April 29, 2014 May 16, 2014 0.15 10.0 million July 31, 2014 August 18, 2014 0.15 10.0 million October 30, 2014 November 17, 2014 0.15 10.3 million January 30, 2015 February 17, 2015 0.15 10.3 million April 28, 2015 May 18, 2015 0.15 10.4 million July 30, 2015 August 17, 2015 0.15 10.5 million October 18, 2015 October 30, 2015 0.15 10.4 million |
Transactions Related to the P49
Transactions Related to the Partnership (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of effects of changes from net income attributable to Exterran stockholders and changes in equity interest of Partnership on equity attributable to Exterran's stockholders | The following table presents the effects of changes from net income (loss) attributable to Archrock stockholders and changes in our equity interest of the Partnership on our equity attributable to Archrock stockholders (in thousands): Years Ended December 31, 2015 2014 2013 Net income (loss) attributable to Archrock stockholders $ (105,818 ) $ 98,166 $ 123,164 Increase in Archrock stockholders’ additional paid in capital for change in ownership of Partnership units 18,386 74,521 31,573 Change from net income (loss) attributable to Archrock stockholders and transfers to/from the noncontrolling interest $ (87,432 ) $ 172,687 $ 154,737 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments | Commitments for future minimum rental payments with terms in excess of one year at December 31, 2015 are as follows (in thousands): December 31, 2016 $ 5,591 2017 4,876 2018 2,726 2019 1,774 2020 1,456 Thereafter 1,881 Total $ 18,304 |
Maximum Potential undiscounted Payments | We have issued the following guarantees that are not recorded on our accompanying consolidated balance sheet (dollars in thousands): Term Maximum Potential Undiscounted Payments as of December 31, 2015 Standby letters of credit 2016 $ 9,969 Performance bonds (1) 2016 1,252 Maximum potential undiscounted payments $ 11,221 (1) We have issued guarantees to third parties to ensure performance of our obligations, some of which may be fulfilled by third parties. |
Reportable Segments and Geogr51
Reportable Segments and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Sales and other financial information by reportable segment | The following table presents sales and other financial information by reportable segment during the years ended December 31, 2015 , 2014 and 2013 (in thousands): Contract Operations Aftermarket Services Reportable Segments Total Other (1) Total (2) 2015: Revenue from external customers $ 781,166 $ 216,942 $ 998,108 $ — $ 998,108 Gross margin (3) 461,765 41,297 503,062 — 503,062 Total assets 2,248,191 149,008 2,397,199 287,944 2,685,143 Capital expenditures 227,248 2,296 229,544 26,598 256,142 2014: Revenue from external customers $ 729,103 $ 230,050 $ 959,153 $ — $ 959,153 Gross margin (3) 412,961 41,799 454,760 — 454,760 Total assets 2,446,633 62,485 2,509,118 334,516 2,843,634 Capital expenditures 371,734 825 372,559 11,282 383,841 2013: Revenue from external customers $ 627,844 $ 234,928 $ 862,772 $ — $ 862,772 Gross margin (3) 345,355 46,439 391,794 — 391,794 Total assets 1,907,097 67,693 1,974,790 238,220 2,213,010 Capital expenditures 275,408 935 276,343 15,187 291,530 (1) Includes corporate related items. (2) Totals exclude assets, capital expenditures and the operating results of discontinued operations. (3) Gross margin, a non-GAAP financial measure, is reconciled, in total, to net income (loss), its most directly comparable measure calculated and presented in accordance with U.S. GAAP, below. |
Assets from reportable segments to total assets | The following table presents assets from reportable segments to total assets as of December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 Assets from reportable segments $ 2,397,199 $ 2,509,118 Other assets (1) 287,944 334,516 Assets associated with discontinued operations 21,620 2,083,205 Consolidated assets $ 2,706,763 $ 4,926,839 (1) Includes corporate related items. |
Reconciliation of net income (loss) to gross margin | The following table reconciles net income (loss) to gross margin (in thousands): Years Ended December 31, 2015 2014 2013 Net income (loss) $ (98,966 ) $ 125,882 $ 155,742 Selling, general and administrative 131,919 132,651 118,851 Depreciation and amortization 229,127 212,268 187,476 Long-lived asset impairment 124,979 42,828 16,696 Restructuring charges 4,745 5,394 — Goodwill impairment 3,738 — — Interest expense 107,617 112,273 112,194 Debt extinguishment costs 9,201 — — Other (income) expense, net (2,079 ) (5,475 ) (22,535 ) Provision for (benefit from) income taxes 53,189 (28,066 ) (17,840 ) Income from discontinued operations, net of tax (60,408 ) (142,995 ) (158,790 ) Gross margin $ 503,062 $ 454,760 $ 391,794 |
Selected Quarterly Financial 52
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data | March 31, 2015 (1) June 30, 2015 (2) September 30, 2015 (3) December 31, 2015 (4) Revenue from external customers $ 252,873 $ 255,062 $ 248,863 $ 241,310 Gross profit (9) 70,797 67,643 52,949 (21,541 ) Net income (loss) attributable to Archrock stockholders 32,142 (1,389 ) (6,304 ) (130,267 ) Net income (loss) attributable to Archrock common stockholders per share: Basic $ 0.47 $ (0.02 ) $ (0.09 ) $ (1.91 ) Diluted 0.47 (0.02 ) (0.09 ) (1.91 ) March 31, 2014 (5) June 30, 2014 (6) September 30, 2014 (7) December 31, 2014 (8) Revenue from external customers $ 209,738 $ 239,153 $ 247,453 $ 262,809 Gross profit (9) 46,396 56,616 59,738 58,065 Net income attributable to Archrock stockholders 32,596 12,377 34,050 19,143 Net income attributable to Archrock common stockholders per share: Basic $ 0.50 $ 0.19 $ 0.50 $ 0.28 Diluted 0.50 0.19 0.48 0.28 (1) In the first quarter of 2015 , we recorded $34.9 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)) and $8.2 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)). (2) In the second quarter of 2015, we completed the April 2015 Contract Operations Acquisition (see Note 3 (“Business Acquisitions”)). Additionally, we recorded $3.5 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)), $9.5 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”) and $1.2 million of restructuring charges (see Note 13 (“Restructuring Charges”)). (3) In the third quarter of 2015 we recorded $13.7 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)), $19.9 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)) and $0.3 million of restructuring charges (see Note 13 (“Restructuring Charges”)). (4) In the fourth quarter of 2015 , we recorded $8.3 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)), $3.7 million of goodwill impairment (see Note 6 (“Goodwill”)), $87.4 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)) and $3.2 million of restructuring charges (see Note 13 (“Restructuring Charges”)). (5) In the first quarter of 2014, we recorded $41.4 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)), $3.8 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)) and $4.8 million of restructuring charges (see Note 13 “Restructuring Charges”)). (6) In the second quarter of 2014 , we recorded $24.0 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)), $9.8 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)) and $0.4 million of restructuring charges (see Note 13 “Restructuring Charges”)). (7) In the third quarter of 2014, we recorded $32.6 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)), $11.3 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)) and $0.2 million of restructuring charges (see Note 13 (“Restructuring Charges”)). (8) In the fourth quarter of 2014, we recorded $45.0 million of income from discontinued operations, net of tax (see Note 2 (“Discontinued Operations”)) and $17.9 million of long-lived asset impairments (see Note 12 (“Long-Lived Asset Impairment”)). (9) Gross profit is defined as revenue less cost of sales, direct depreciation and amortization expense and long-lived asset impairment charges. |
Organization and Summary of S53
Organization and Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounting Policies [Abstract] | |||
Number of primary business lines | segment | 2 | ||
Minimum period after receivable balances are past due that significant accounts are reviewed individually for collectability | 90 days | ||
Bad debt expenses | $ | $ 3.1 | $ 1.7 | $ 0.2 |
Organization and Summary of S54
Organization and Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2015 | |
Compression equipment, facilities and other fleet assets | Minimum | |
Property, Plant and Equipment | |
Property, plant and equipment useful life | 3 years |
Compression equipment, facilities and other fleet assets | Maximum | |
Property, Plant and Equipment | |
Property, plant and equipment useful life | 30 years |
Building | Minimum | |
Property, Plant and Equipment | |
Property, plant and equipment useful life | 20 years |
Building | Maximum | |
Property, Plant and Equipment | |
Property, plant and equipment useful life | 35 years |
Transportation, shop equipment and other | Minimum | |
Property, Plant and Equipment | |
Property, plant and equipment useful life | 3 years |
Transportation, shop equipment and other | Maximum | |
Property, Plant and Equipment | |
Property, plant and equipment useful life | 10 years |
Organization and Summary of S55
Organization and Summary of Significant Accounting Policies (Details 3) - Computer software | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Useful life of software | |
Estimated useful life | 3 years |
Maximum | |
Useful life of software | |
Estimated useful life | 5 years |
Organization and Summary of S56
Organization and Summary of Significant Accounting Policies (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill | ||||
Weighted percentage assigned to each approach for valuation of goodwill (percent) | 50.00% | |||
Goodwill impairment | $ 3,700 | $ 3,738 | $ 0 | $ 0 |
Organization and Summary of S57
Organization and Summary of Significant Accounting Policies (Details 5) - USD ($) shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of net income (loss) attributable to Exterran common stockholders used in the calculation of basic and diluted income (loss) per common share | |||||||||||
Loss from continuing operations attributable to Archrock stockholders | $ (166,226,000) | $ (44,829,000) | $ (35,626,000) | ||||||||
Income from discontinued operations, net of tax | $ 8,300,000 | $ 13,700,000 | $ 34,900,000 | $ 45,000,000 | $ 32,600,000 | $ 24,000,000 | $ 41,400,000 | 60,408,000 | 142,995,000 | 158,790,000 | |
Net income (loss) attributable to Archrock stockholders | $ (130,267,000) | $ (6,304,000) | $ (1,389,000) | $ 32,142,000 | $ 19,143,000 | $ 34,050,000 | $ 12,377,000 | $ 32,596,000 | (105,818,000) | 98,166,000 | 123,164,000 |
Less: Net income attributable to participating securities | (514,000) | (495,000) | 0 | ||||||||
Net income (loss) attributable to Exterran common stockholders | $ (106,332,000) | $ 97,671,000 | $ 123,164,000 | ||||||||
Potential shares of common stock included in computing diluted income (loss) attributable to Exterran common stockholders per common share | |||||||||||
Weighted average common shares outstanding including participating securities (in shares) | 69,389 | 67,175 | 65,655 | ||||||||
Weighted average common shares outstanding — used in basic income (loss) per common share (in shares) | (956) | (941) | (1,201) | ||||||||
Weighted average common shares outstanding — used in basic income (loss) per common share (in shares) | 68,433 | 66,234 | 64,454 | ||||||||
Weighted average common shares outstanding - used in diluted income (loss) per common share (in shares) | 68,433 | 66,234 | 64,454 | ||||||||
Adjustments to net income (loss) attributable to Exterran common stockholders for the diluted earnings (loss) per common share calculation | $ 0 | $ 0 | $ 0 | ||||||||
Net dilutive potential common shares issuable (in shares) | 786 | 18,745 | 29,162 | ||||||||
On exercise of options where exercise price is greater than average market value for the period | |||||||||||
Potential shares of common stock included in computing diluted income (loss) attributable to Exterran common stockholders per common share | |||||||||||
Net dilutive potential common shares issuable (in shares) | 572 | 515 | 734 | ||||||||
On exercise of options and vesting of restricted stock units | |||||||||||
Potential shares of common stock included in computing diluted income (loss) attributable to Exterran common stockholders per common share | |||||||||||
Net dilutive potential common shares issuable (in shares) | 214 | 490 | 547 | ||||||||
Employee Stock Purchase Plan | |||||||||||
Potential shares of common stock included in computing diluted income (loss) attributable to Exterran common stockholders per common share | |||||||||||
Net dilutive potential common shares issuable (in shares) | 0 | 1 | 2 | ||||||||
On exercise of warrants | |||||||||||
Potential shares of common stock included in computing diluted income (loss) attributable to Exterran common stockholders per common share | |||||||||||
Net dilutive potential common shares issuable (in shares) | 0 | 10,666 | 12,426 | ||||||||
4.25% convertible senior notes due June 2014 | |||||||||||
Potential shares of common stock included in computing diluted income (loss) attributable to Exterran common stockholders per common share | |||||||||||
Net dilutive potential common shares issuable (in shares) | 0 | 7,073 | 15,334 | ||||||||
Interest rate (as a percent) | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | ||||||
4.75% convertible senior notes due 2014 | |||||||||||
Potential shares of common stock included in computing diluted income (loss) attributable to Exterran common stockholders per common share | |||||||||||
Net dilutive potential common shares issuable (in shares) | 0 | 0 | 119 | ||||||||
Interest rate (as a percent) | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% |
Organization and Summary of S58
Organization and Summary of Significant Accounting Policies (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in accumulated other comprehensive income (loss) by component | |||
Accumulated other comprehensive income (loss), balance at beginning of period | $ 15,865 | $ 30,078 | $ 23,909 |
Income (loss) recognized in other comprehensive income (loss), net of tax | (6,271) | (13,166) | (3,436) |
(Gain) loss reclassified from accumulated other comprehensive income (loss), net of tax | (11,164) | (1,047) | 9,605 |
Other comprehensive income attributable to Archrock stockholders | (17,435) | (14,213) | 6,169 |
Accumulated other comprehensive income (loss), balance at end of period | (1,570) | 15,865 | 30,078 |
Derivatives Cash Flow Hedges | |||
Changes in accumulated other comprehensive income (loss) by component | |||
Accumulated other comprehensive income (loss), balance at beginning of period | (911) | (1,346) | (2,984) |
Income (loss) recognized in other comprehensive income (loss), net of tax | (2,713) | (1,295) | (476) |
(Gain) loss reclassified from accumulated other comprehensive income (loss), net of tax | 2,054 | 1,730 | 2,114 |
Other comprehensive income attributable to Archrock stockholders | (659) | 435 | 1,638 |
Accumulated other comprehensive income (loss), balance at end of period | (1,570) | (911) | (1,346) |
Foreign Currency Translation Adjustment | |||
Changes in accumulated other comprehensive income (loss) by component | |||
Accumulated other comprehensive income (loss), balance at beginning of period | 16,776 | 31,424 | 26,893 |
Income (loss) recognized in other comprehensive income (loss), net of tax | (3,558) | (11,871) | (2,960) |
(Gain) loss reclassified from accumulated other comprehensive income (loss), net of tax | (13,218) | (2,777) | 7,491 |
Other comprehensive income attributable to Archrock stockholders | (16,776) | (14,648) | 4,531 |
Accumulated other comprehensive income (loss), balance at end of period | $ 0 | $ 16,776 | $ 31,424 |
Organization and Summary of S59
Organization and Summary of Significant Accounting Policies (Details 7) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | ||||||||||
Reclassification from accumulated other comprehensive income | $ (11,164) | $ (1,047) | $ 9,605 | |||||||
Other (income) expense, net | 2,079 | 5,475 | 22,535 | |||||||
Income from discontinued operations, net of tax | $ (8,300) | $ (13,700) | $ (34,900) | $ (45,000) | $ (32,600) | $ (24,000) | $ (41,400) | (60,408) | (142,995) | (158,790) |
Restatement Adjustment | Additional Paid-in Capital | ||||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | ||||||||||
Reclassification adjustment | 13,200 | |||||||||
Foreign Currency Translation | Restatement Adjustment | ||||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | ||||||||||
Reclassification adjustment | 13,200 | |||||||||
Derivatives Cash Flow Hedges | ||||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | ||||||||||
Loss recognized in other comprehensive income (loss) related to change in fair value of derivative financial instruments before tax | (4,100) | (2,000) | (500) | |||||||
Tax benefit of loss recognized in other comprehensive income (loss) related to change in fair value of derivative financial instruments | 1,400 | 700 | 100 | |||||||
Reclassification from accumulated other comprehensive income | 2,054 | 1,730 | 2,114 | |||||||
Derivatives Cash Flow Hedges | Reclassification adjustments | Interest Expense | ||||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | ||||||||||
Reclassification from accumulated other comprehensive income | 3,200 | 2,600 | 3,200 | |||||||
Derivatives Cash Flow Hedges | Reclassification adjustments | Provision for income taxes | ||||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | ||||||||||
Reclassification from accumulated other comprehensive income | 1,100 | 900 | 1,100 | |||||||
Foreign Currency Translation Adjustment | ||||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | ||||||||||
Reclassification from accumulated other comprehensive income | $ (13,218) | (2,777) | 7,491 | |||||||
Foreign Currency Translation Adjustment | Reclassification adjustments | ||||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | ||||||||||
Other (income) expense, net | $ 2,800 | |||||||||
Income from discontinued operations, net of tax | $ 7,500 |
Organization and Summary of S60
Organization and Summary of Significant Accounting Policies (Details 8) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Amount | ||
Summary of the fair value and carrying value of debt | ||
Total debt | $ 1,588,465 | $ 2,025,795 |
Carrying Amount | Fixed rate debt | ||
Summary of the fair value and carrying value of debt | ||
Total debt | 691,465 | 1,040,295 |
Carrying Amount | Floating rate debt | ||
Summary of the fair value and carrying value of debt | ||
Total debt | 897,000 | 985,500 |
Fair Value | ||
Summary of the fair value and carrying value of debt | ||
Total debt | 1,421,000 | 1,946,000 |
Fair Value | Fixed rate debt | ||
Summary of the fair value and carrying value of debt | ||
Total debt | 524,000 | 960,000 |
Fair Value | Floating rate debt | ||
Summary of the fair value and carrying value of debt | ||
Total debt | $ 897,000 | $ 986,000 |
Discontinued Operations - Narra
Discontinued Operations - Narratives (Details) - USD ($) | Dec. 04, 2015 | Nov. 03, 2015 | Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Discontinued Operations and Disposal Groups [Abstract] | |||||||
Proceeds from lines of credit | $ 532,600,000 | ||||||
Payments credit facility | $ 369,200,000 | 326,500,000 | |||||
Outstanding borrowings | 350,000,000 | ||||||
Principle amount of senior notes | $ 350,000,000 | ||||||
Interest rate on credit facility | 7.25% | ||||||
Redemption price, percentage | 101.813% | ||||||
Other income | $ 400,000 | ||||||
Selling, general and administrative | 600,000 | $ 131,919,000 | $ 132,651,000 | $ 118,851,000 | |||
Business Acquisition, Contingent Consideration | |||||||
Repayment of insurance proceeds | 50,000,000 | ||||||
PDVSA Gas | Subsequent Event | |||||||
Business Acquisition, Contingent Consideration | |||||||
Installment payments received | $ 5,200,000 | ||||||
Exterran Corporation | |||||||
Business Acquisition, Contingent Consideration | |||||||
Proceeds received from contractual arrangements | 493,000,000 | ||||||
Scheduled installment payments | $ 79,300,000 | ||||||
Payments to acquire equipment | $ 44,400,000 | ||||||
Event III | |||||||
Business Acquisition, Contingent Consideration | |||||||
Separation and distribution agreement, receivable from sale of nationalized assets, maximum | $ 25,000,000 |
Discontinued Operations - Resul
Discontinued Operations - Results from Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of operating results of the discontinued operations | ||||||||||
Revenue | $ 1,424,184 | $ 1,940,585 | $ 2,301,057 | |||||||
Cost of sales (excluding depreciation and amortization expense) | 1,018,134 | 1,364,530 | 1,729,435 | |||||||
Selling, general and administrative | 171,912 | 245,133 | 239,659 | |||||||
Depreciation and amortization | 124,321 | 173,803 | 140,029 | |||||||
Long-lived asset impairment | 14,264 | 4,170 | 14,296 | |||||||
Restructuring charges | $ 3,200 | $ 300 | $ 200 | $ 400 | $ 4,800 | 43,884 | 2,159 | 0 | ||
Interest expense | 1,578 | 1,905 | 3,551 | |||||||
Equity in income of non-consolidated affiliates | (15,152) | (14,553) | (19,000) | |||||||
Other (income) loss, net (2) | (23,782) | (66,003) | (67,113) | |||||||
Income (loss) from discontinued operations before income taxes | 89,025 | 229,441 | 260,200 | |||||||
Provision for (benefit from) income taxes | 28,617 | 86,446 | 101,410 | |||||||
Income (loss) from discontinued operations, net of tax | $ 8,300 | $ 13,700 | $ 34,900 | $ 45,000 | $ 32,600 | $ 24,000 | $ 41,400 | 60,408 | 142,995 | 158,790 |
Spinoff | Exterran Corporation | ||||||||||
Summary of operating results of the discontinued operations | ||||||||||
Revenue | 1,424,184 | 1,940,585 | 2,297,632 | |||||||
Cost of sales (excluding depreciation and amortization expense) | 1,017,912 | 1,364,051 | 1,726,420 | |||||||
Selling, general and administrative | 171,912 | 245,103 | 239,322 | |||||||
Depreciation and amortization | 124,321 | 173,803 | 140,029 | |||||||
Long-lived asset impairment | 14,264 | 3,851 | 11,941 | |||||||
Restructuring charges | 43,884 | 2,159 | 0 | |||||||
Interest expense | 1,578 | 1,905 | 3,551 | |||||||
Equity in income of non-consolidated affiliates | (15,152) | (14,553) | (19,000) | |||||||
Other (income) loss, net (2) | (23,782) | (65,976) | (68,115) | |||||||
Income (loss) from discontinued operations before income taxes | 89,247 | 230,242 | 263,484 | |||||||
Provision for (benefit from) income taxes | 28,705 | 86,723 | 102,559 | |||||||
Income (loss) from discontinued operations, net of tax | 60,542 | 143,519 | 160,925 | |||||||
Abandonment | Contract Water Treatment Business | ||||||||||
Summary of operating results of the discontinued operations | ||||||||||
Revenue | 0 | 0 | 3,425 | |||||||
Cost of sales (excluding depreciation and amortization expense) | 222 | 479 | 3,015 | |||||||
Selling, general and administrative | 0 | 30 | 337 | |||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||
Long-lived asset impairment | 0 | 319 | 2,355 | |||||||
Restructuring charges | 0 | 0 | 0 | |||||||
Interest expense | 0 | 0 | 0 | |||||||
Equity in income of non-consolidated affiliates | 0 | 0 | 0 | |||||||
Other (income) loss, net (2) | 0 | (27) | 1,002 | |||||||
Income (loss) from discontinued operations before income taxes | (222) | (801) | (3,284) | |||||||
Provision for (benefit from) income taxes | (88) | (277) | (1,149) | |||||||
Income (loss) from discontinued operations, net of tax | $ (134) | $ (524) | $ (2,135) |
Discontinued Operations - Balan
Discontinued Operations - Balance Sheet Data for Disontinued Operations (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of balance sheet data for discontinued operations | ||
Cash and cash equivalents | $ 0 | $ 39,792 |
Restricted cash | 0 | 1,490 |
Accounts receivable | 0 | 398,141 |
Inventory | 0 | 257,785 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | 120,938 |
Other current assets | 420 | 54,012 |
Total current assets associated with discontinued operations | 420 | 872,158 |
Property, plant and equipment | 0 | 954,811 |
Intangibles and other assets, net | 5,714 | 238,767 |
Deferred income taxes | 15,486 | 17,469 |
Total assets associated with discontinued operations | 21,620 | 2,083,205 |
Accounts payable | 0 | 162,041 |
Accrued liabilities | 0 | 169,793 |
Deferred income taxes | 420 | 0 |
Deferred revenue | 0 | 64,820 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 0 | 76,277 |
Total current liabilities associated with discontinued operations | 420 | 472,931 |
Long-term debt | 0 | 1,107 |
Deferred income taxes | 5,714 | 39,100 |
Other long-term liabilities | 0 | 68,876 |
Total liabilities associated with discontinued operations | 6,134 | 582,014 |
Abandonment | ||
Summary of balance sheet data for discontinued operations | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | 0 |
Deferred revenue | 0 | 0 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 0 | 0 |
Long-term debt | 0 | 0 |
Deferred income taxes | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Exterran Corporation | Spinoff | ||
Summary of balance sheet data for discontinued operations | ||
Cash and cash equivalents | 0 | 39,792 |
Restricted cash | 0 | 1,490 |
Accounts receivable | 0 | 398,072 |
Inventory | 0 | 257,785 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | 120,938 |
Other current assets | 420 | 54,012 |
Total current assets associated with discontinued operations | 420 | 872,089 |
Property, plant and equipment | 0 | 954,811 |
Intangibles and other assets, net | 5,714 | 238,767 |
Deferred income taxes | 0 | 0 |
Total assets associated with discontinued operations | 6,134 | 2,065,667 |
Accounts payable | 0 | 162,040 |
Accrued liabilities | 0 | 169,066 |
Deferred income taxes | 420 | 0 |
Deferred revenue | 0 | 64,820 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 0 | 76,277 |
Total current liabilities associated with discontinued operations | 420 | 472,203 |
Long-term debt | 0 | 1,107 |
Deferred income taxes | 5,714 | 39,100 |
Other long-term liabilities | 0 | 68,876 |
Total liabilities associated with discontinued operations | 6,134 | 581,286 |
Contract Water Treatment Business | Abandonment | ||
Summary of balance sheet data for discontinued operations | ||
Accounts receivable | 0 | 69 |
Inventory | 0 | 0 |
Other current assets | 0 | 0 |
Total current assets associated with discontinued operations | 0 | 69 |
Property, plant and equipment | 0 | 0 |
Intangibles and other assets, net | 0 | 0 |
Deferred income taxes | 15,486 | 17,469 |
Total assets associated with discontinued operations | 15,486 | 17,538 |
Accounts payable | 0 | 1 |
Accrued liabilities | 0 | 727 |
Deferred income taxes | 0 | 0 |
Total current liabilities associated with discontinued operations | 0 | 728 |
Total liabilities associated with discontinued operations | $ 0 | $ 728 |
Business Acquisitions - August
Business Acquisitions - August 2014 MidCon Acquisition (Narratives) (Details) hp in Thousands, $ in Thousands | Aug. 08, 2014USD ($)compressor_unithp | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisitions | ||||
Purchase consideration | $ 0 | $ 494,755 | $ 0 | |
Goodwill | $ 0 | 3,738 | ||
August 2014 MidCon Acquisition | ||||
Business Acquisitions | ||||
Number of compressor units acquired (compressor units) | compressor_unit | 162 | |||
Horsepower of compressor units acquired (horsepower) | hp | 110 | |||
Purchase consideration | $ 130,100 | |||
Transaction costs | $ 1,000 | |||
Estimated useful life | 24 years | |||
Goodwill | $ 3,738 | |||
August 2014 MidCon Acquisition | ASLP | ||||
Business Acquisitions | ||||
Purchase consideration | $ 4,100 | |||
August 2014 MidCon Acquisition | BHP Billiton | ||||
Business Acquisitions | ||||
Contract operations services agreement term | 5 years |
Business Acquisitions - Assets
Business Acquisitions - Assets Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 08, 2014 | Apr. 10, 2014 |
Estimated fair value of acquired assets and liabilities assumed as of the acquisition date | ||||
Goodwill | $ 0 | $ 3,738 | ||
August 2014 MidCon Acquisition | ||||
Estimated fair value of acquired assets and liabilities assumed as of the acquisition date | ||||
Inventory | $ 2,302 | |||
Property, plant and equipment | 80,154 | |||
Goodwill | 3,738 | |||
Intangible assets | 48,373 | |||
Current liabilities | (372) | |||
Purchase price | $ 134,195 | |||
April 2014 MidCon Acquisition | ||||
Estimated fair value of acquired assets and liabilities assumed as of the acquisition date | ||||
Inventory | $ 4,357 | |||
Property, plant and equipment | 314,556 | |||
Intangible assets | 42,474 | |||
Current liabilities | (827) | |||
Purchase price | $ 360,560 |
Business Acquisitions - April 2
Business Acquisitions - April 2014 MidCon Acquisition (Narratives) (Details) hp in Thousands | Apr. 10, 2014USD ($)compressor_unithpshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 04, 2015USD ($) |
Business Acquisitions | |||||
Purchase consideration | $ 0 | $ 494,755,000 | $ 0 | ||
Principle amount of senior notes | $ 350,000,000 | ||||
April 2014 MidCon Acquisition | |||||
Business Acquisitions | |||||
Number of compressor units acquired (compressor units) | compressor_unit | 337 | ||||
Horsepower of compressor units acquired (horsepower) | hp | 444 | ||||
Purchase consideration | $ 352,900,000 | ||||
Issuance of common units to the public (in units) | shares | 6,200,000 | ||||
Contract operations services agreement term | 7 years | ||||
Transaction costs | $ 1,500,000 | ||||
Property, plant and equipment useful life | 25 years | ||||
April 2014 MidCon Acquisition | ASLP | |||||
Business Acquisitions | |||||
Purchase consideration | $ 7,700,000 | ||||
April 2014 MidCon Acquisition | Partnership's 6% senior notes due 2022 | |||||
Business Acquisitions | |||||
Principle amount of senior notes | $ 350,000,000 | ||||
Interest rate (as a percent) | 6.00% |
Business Acquisitions Acquired
Business Acquisitions Acquired Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands | Aug. 08, 2014 | Apr. 10, 2014 |
August 2014 MidCon Acquisition | ||
Business Acquisitions | ||
Total acquired identifiable intangible assets | $ 48,373 | |
August 2014 MidCon Acquisition | Customer related | ||
Business Acquisitions | ||
Total acquired identifiable intangible assets | $ 21,590 | |
Average Useful Life | 25 years | |
August 2014 MidCon Acquisition | Contract based | ||
Business Acquisitions | ||
Total acquired identifiable intangible assets | $ 26,783 | |
Average Useful Life | 5 years | |
April 2014 MidCon Acquisition | ||
Business Acquisitions | ||
Total acquired identifiable intangible assets | $ 42,474 | |
April 2014 MidCon Acquisition | Customer related | ||
Business Acquisitions | ||
Total acquired identifiable intangible assets | $ 4,701 | |
Average Useful Life | 25 years | |
April 2014 MidCon Acquisition | Contract based | ||
Business Acquisitions | ||
Total acquired identifiable intangible assets | $ 37,773 | |
Average Useful Life | 7 years |
Business Acquisitions - Unaudit
Business Acquisitions - Unaudited Pro Forma Financial Information (Narratives) (Details) - USD ($) | Dec. 04, 2015 | Nov. 03, 2015 | Aug. 08, 2014 | Apr. 10, 2014 | Apr. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisitions | ||||||||
Purchase consideration | $ 0 | $ 494,755,000 | $ 0 | |||||
Principle amount of senior notes | $ 350,000,000 | |||||||
Payments on revolving credit facility | $ 369,200,000 | $ 326,500,000 | ||||||
Exterran Partners, L.P. | Partnership's revolving credit facility due May 2018 | ||||||||
Business Acquisitions | ||||||||
Payments on revolving credit facility | $ 157,500,000 | |||||||
Exterran Partners, L.P. | Common units | ||||||||
Business Acquisitions | ||||||||
Issuance of common units to the public (in units) | 6,200,000 | 6,210,000 | ||||||
Exterran Partners, L.P. | General partner units | ||||||||
Business Acquisitions | ||||||||
Issuance of general partner unit to general partner (in units) | 126,000 | 126,000 | ||||||
Exterran Partners, L.P. | Partnership's 6% senior notes due 2022 | ||||||||
Business Acquisitions | ||||||||
Principle amount of senior notes | $ 350,000,000 | $ 350,000,000 | ||||||
August 2014 MidCon Acquisition | ||||||||
Business Acquisitions | ||||||||
Purchase consideration | $ 130,100,000 | |||||||
August 2014 MidCon Acquisition | Exterran Partners, L.P. | ||||||||
Business Acquisitions | ||||||||
Purchase consideration | 130,100,000 | |||||||
August 2014 MidCon Acquisition | EESLP | ||||||||
Business Acquisitions | ||||||||
Purchase consideration | $ 4,100,000 | |||||||
April 2014 MidCon Acquisition | ||||||||
Business Acquisitions | ||||||||
Purchase consideration | $ 352,900,000 | |||||||
Issuance of common units to the public (in units) | 6,200,000 | |||||||
April 2014 MidCon Acquisition | Partnership's 6% senior notes due 2022 | ||||||||
Business Acquisitions | ||||||||
Principle amount of senior notes | $ 350,000,000 | |||||||
April 2014 MidCon Acquisition | Exterran Partners, L.P. | ||||||||
Business Acquisitions | ||||||||
Purchase consideration | 352,900,000 | |||||||
April 2014 MidCon Acquisition | EESLP | ||||||||
Business Acquisitions | ||||||||
Purchase consideration | $ 7,700,000 |
Business Acquisitions - Unaud69
Business Acquisitions - Unaudited Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pro forma financial information | ||
Revenue | $ 996,961 | $ 974,518 |
Net income attributable to Archrock common stockholders | $ 100,208 | $ 127,028 |
Basic net income per common share attributable to Archrock common stockholders (in dollars per unit) | $ 1.51 | $ 1.97 |
Diluted net income per common share attributable to Archrock common stockholders (in dollars per unit) | $ 1.51 | $ 1.97 |
Inventory (Narratives) (Details
Inventory (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventory | |||
Inventory write-downs | $ 4.3 | $ 8.9 | $ 3.9 |
Inventory reserves | $ 9.8 | $ 11.5 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Composition of Inventory net of reserves | ||
Parts and supplies | $ 109,634 | $ 120,646 |
Work in progress | 19,777 | 25,140 |
Inventory | $ 129,411 | $ 145,786 |
Property, Plant and Equipment72
Property, Plant and Equipment, net (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 212 | $ 200 | $ 180.7 |
Assets under construction | 71.1 | 82.6 | |
Capitalized interest related to construction | $ 0.3 | $ 0.2 | $ 0.3 |
Property, Plant and Equipment73
Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, plant and equipment, net | ||
Property, plant and equipment, gross | $ 3,563,828 | $ 3,640,574 |
Accumulated depreciation | (1,296,040) | (1,268,493) |
Property, plant and equipment, net | 2,267,788 | 2,372,081 |
Compression equipment, facilities and other fleet assets | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | 3,292,364 | 3,401,594 |
Land and buildings | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | 53,175 | 51,391 |
Transportation and shop equipment | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | 108,998 | 103,207 |
Other | ||
Property, plant and equipment, net | ||
Property, plant and equipment, gross | $ 109,291 | $ 84,382 |
Goodwill - Narratives (Details)
Goodwill - Narratives (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 08, 2014 | |
Goodwill | |||||
Weighted percentage assigned to each approach for valuation of goodwill (percent) | 50.00% | ||||
Goodwill impairment loss | $ 3,700,000 | $ 3,738,000 | $ 0 | $ 0 | |
Goodwill | $ 0 | 0 | $ 3,738,000 | ||
Goodwill acquired during year | $ 0 | $ 0 | |||
August 2014 MidCon Acquisition | |||||
Goodwill | |||||
Goodwill | $ 3,738,000 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill | ||||
Goodwill, beginning balance | $ 3,738,000 | |||
Goodwill acquired during year | 0 | $ 0 | ||
Impairment losses | $ (3,700,000) | (3,738,000) | $ 0 | $ 0 |
Goodwill, ending balance | $ 0 | $ 0 | $ 3,738,000 |
Intangible and Other Assets, 76
Intangible and Other Assets, net (Narratives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets | |||
Amortization of deferred financing costs | $ 6,429 | $ 5,994 | $ 7,690 |
Amortization of intangible costs | 17,100 | 12,300 | 6,800 |
Debt extinguishment costs | 9,201 | $ 0 | $ 0 |
Deferred Financing | |||
Finite-Lived Intangible Assets | |||
Debt extinguishment costs | $ 2,900 |
Intangible and Other Assets, 77
Intangible and Other Assets, net (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Summary of intangible and other assets, net | ||
Deferred financing costs, net | $ 20,612 | $ 23,795 |
Intangible assets, net | 100,822 | 117,915 |
Other | 11,038 | 12,443 |
Intangibles and other assets, net | $ 132,472 | $ 154,153 |
Intangible and Other Assets, 78
Intangible and Other Assets, net (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite Lived Intangible Assets And Deferred Financing Costs | ||
Deferred financing costs, gross carrying amount | $ 40,066 | $ 41,790 |
Deferred financing costs, accumulated amortization | (19,454) | (17,995) |
Intangible assets and deferred financing costs, gross carrying amount | 221,740 | 223,464 |
Intangible assets and deferred financing costs, accumulated amortization | (100,306) | (81,754) |
Marketing related (5 year life) | ||
Finite Lived Intangible Assets And Deferred Financing Costs | ||
Gross Carrying Amount | 330 | 330 |
Accumulated Amortization | $ (312) | (268) |
Useful life | 5 years | |
Customer related (10-25 year life) | ||
Finite Lived Intangible Assets And Deferred Financing Costs | ||
Gross Carrying Amount | $ 107,008 | 107,008 |
Accumulated Amortization | $ (53,957) | (47,859) |
Customer related (10-25 year life) | Minimum | ||
Finite Lived Intangible Assets And Deferred Financing Costs | ||
Useful life | 10 years | |
Customer related (10-25 year life) | Maximum | ||
Finite Lived Intangible Assets And Deferred Financing Costs | ||
Useful life | 25 years | |
Contract based (5-7 year life) | ||
Finite Lived Intangible Assets And Deferred Financing Costs | ||
Gross Carrying Amount | $ 74,336 | 74,336 |
Accumulated Amortization | $ (26,583) | $ (15,632) |
Contract based (5-7 year life) | Minimum | ||
Finite Lived Intangible Assets And Deferred Financing Costs | ||
Useful life | 5 years | |
Contract based (5-7 year life) | Maximum | ||
Finite Lived Intangible Assets And Deferred Financing Costs | ||
Useful life | 7 years |
Intangible and Other Assets, 79
Intangible and Other Assets, net (Details 3) $ in Thousands | Dec. 31, 2015USD ($) |
Estimated future intangible amortization expense | |
2,016 | $ 16,618 |
2,017 | 16,091 |
2,018 | 15,673 |
2,019 | 13,047 |
2,020 | 9,562 |
Thereafter | 29,831 |
Total | $ 100,822 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Liabilities | ||
Accrued salaries and other benefits | $ 27,066 | $ 39,182 |
Accrued income and other taxes | 15,006 | 20,807 |
Accrued interest | 12,675 | 14,286 |
Interest rate swaps fair value | 4,608 | 4,958 |
Accrued other liabilities | 20,698 | 11,949 |
Accrued liabilities | $ 80,053 | $ 91,182 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 04, 2015 | Dec. 31, 2014 | Apr. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2009 |
Long-Term Debt | ||||||
Long-term debt | $ 1,588,465 | $ 2,025,795 | ||||
Exterran Partners, L.P. | ||||||
Long-Term Debt | ||||||
Amount of unamortized discount of notes | 8,600 | |||||
Partnership's 6% senior notes due 2021 | Exterran Partners, L.P. | ||||||
Long-Term Debt | ||||||
Long-term debt | $ 346,138 | $ 345,528 | ||||
Interest rate (as a percent) | 6.00% | 6.00% | 6.00% | |||
Amount of unamortized discount of notes | $ 3,900 | $ 4,500 | $ 5,500 | |||
Partnership's 6% senior notes due 2022 | Exterran Partners, L.P. | ||||||
Long-Term Debt | ||||||
Long-term debt | $ 345,327 | $ 344,767 | ||||
Interest rate (as a percent) | 6.00% | 6.00% | ||||
Amount of unamortized discount of notes | $ 4,700 | $ 5,200 | $ 5,700 | |||
4.25% convertible senior notes due June 2014 | ||||||
Long-Term Debt | ||||||
Interest rate (as a percent) | 4.25% | |||||
Amount of unamortized discount of notes | $ 97,900 | |||||
7.25% senior notes due December 2018 | ||||||
Long-Term Debt | ||||||
Long-term debt | 0 | $ 350,000 | ||||
Interest rate (as a percent) | 7.25% | 7.25% | ||||
Revolving credit facility due July 2016 | ||||||
Long-Term Debt | ||||||
Long-term debt | 0 | $ 375,500 | ||||
Revolving Credit Facility Due November 2020 | ||||||
Long-Term Debt | ||||||
Long-term debt | 166,500 | 0 | ||||
Partnership's revolving credit facility due May 2018 | Exterran Partners, L.P. | ||||||
Long-Term Debt | ||||||
Long-term debt | 580,500 | 460,000 | ||||
Partnership's term loan facility due May 2018 | Exterran Partners, L.P. | ||||||
Long-Term Debt | ||||||
Long-term debt | $ 150,000 | $ 150,000 |
Long-Term Debt - Archrock Revol
Long-Term Debt - Archrock Revolving Credit Facility (Details 2) | Nov. 03, 2015USD ($) | Oct. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Long-Term Debt | |||||
Write off of capitalized debt | $ 9,201,000 | $ 0 | $ 0 | ||
Outstanding borrowings | $ 350,000,000 | ||||
Archrock Credit Agreement | Revolving Credit Facility | |||||
Long-Term Debt | |||||
Expiration period of credit facility | 5 years | ||||
Revolving credit facility borrowing capacity | $ 350,000,000 | ||||
Transaction costs | 3,700,000 | ||||
Repayments of debt | 326,500,000 | ||||
Write off of capitalized debt | $ 400,000 | ||||
Outstanding borrowings | 166,500,000 | ||||
Outstanding letters of credit | 10,000,000 | ||||
Undrawn capacity under revolving credit facility | $ 173,500,000 | ||||
Weighted average annual interest rate (as a percent) | 2.10% | 1.70% | |||
Maximum additional commitment amount | $ 100,000,000 | ||||
Minimum EBITDA to total interest expense ratio | 2.25 | ||||
Maximum total debt to EBITDA ratio | 4.25 | ||||
Maximum revised total debt to EBITDA ratio | 4.75 | ||||
Archrock Credit Agreement | Revolving Credit Facility | LIBOR | |||||
Long-Term Debt | |||||
Debt instrument, basis spread on variable rate (as a percent) | 1.75% | ||||
Archrock Credit Agreement | Revolving Credit Facility | LIBOR | Minimum | |||||
Long-Term Debt | |||||
Debt instrument, basis spread on variable rate (as a percent) | 1.75% | ||||
Archrock Credit Agreement | Revolving Credit Facility | LIBOR | Maximum | |||||
Long-Term Debt | |||||
Debt instrument, basis spread on variable rate (as a percent) | 2.75% | ||||
Archrock Credit Agreement | Revolving Credit Facility | Base rate loans | Minimum | |||||
Long-Term Debt | |||||
Debt instrument, basis spread on variable rate (as a percent) | 0.75% | ||||
Archrock Credit Agreement | Revolving Credit Facility | Base rate loans | Maximum | |||||
Long-Term Debt | |||||
Debt instrument, basis spread on variable rate (as a percent) | 1.75% | ||||
Archrock Credit Agreement | Revolving Credit Facility | Federal Funds | |||||
Long-Term Debt | |||||
Debt instrument, basis spread on variable rate (as a percent) | 0.50% | ||||
Archrock Credit Agreement | Revolving Credit Facility | one-month LIBOR | |||||
Long-Term Debt | |||||
Debt instrument, basis spread on variable rate (as a percent) | 1.00% |
Long-Term Debt - The Partnershi
Long-Term Debt - The Partnership Revovling Credit Facility and Term Loans (Details 3) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2013USD ($) | Nov. 30, 2010USD ($) | Mar. 31, 2016 | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Mar. 31, 2012USD ($) | Mar. 31, 2011USD ($) | |
Long-Term Debt | |||||||||
Debt extinguishment costs | $ 9,201,000 | $ 0 | $ 0 | ||||||
Partnership's revolving credit facility and term loan facility | Exterran Partners, L.P. | |||||||||
Long-Term Debt | |||||||||
Expiration period of credit facility | 5 years | ||||||||
Revolving credit facility borrowing capacity | $ 550,000,000 | ||||||||
Debt extinguishment costs | $ 700,000 | ||||||||
Increase in borrowing capacity | 250,000,000 | 900,000,000 | |||||||
Transaction costs | $ 1,300,000 | $ 4,300,000 | |||||||
Weighted average annual interest rate (as a percent) | 2.80% | 2.80% | 2.70% | ||||||
Maximum additional commitment amount | $ 50,000,000 | $ 50,000,000 | |||||||
Minimum EBITDA to total interest expense ratio | 2.75 | ||||||||
Maximum total debt to EBITDA ratio | 5.25 | ||||||||
Maximum revised total debt to EBITDA ratio | 5.5 | ||||||||
Maximum senior secured debt to EBITDA ratio | 4 | ||||||||
Maximum total debt to EBITDA ratio required in period | 5.5 | ||||||||
Partnership's revolving credit facility and term loan facility | Exterran Partners, L.P. | Forecast | |||||||||
Long-Term Debt | |||||||||
Maximum total debt to EBITDA ratio required in period | 5.25 | ||||||||
Partnership's revolving credit facility and term loan facility | Exterran Partners, L.P. | LIBOR | |||||||||
Long-Term Debt | |||||||||
Debt instrument, basis spread on variable rate (as a percent) | 2.50% | ||||||||
Partnership's revolving credit facility and term loan facility | Exterran Partners, L.P. | LIBOR | Minimum | |||||||||
Long-Term Debt | |||||||||
Debt instrument, basis spread on variable rate (as a percent) | 2.00% | ||||||||
Partnership's revolving credit facility and term loan facility | Exterran Partners, L.P. | LIBOR | Maximum | |||||||||
Long-Term Debt | |||||||||
Debt instrument, basis spread on variable rate (as a percent) | 3.00% | ||||||||
Partnership's revolving credit facility and term loan facility | Exterran Partners, L.P. | Base rate loans | Minimum | |||||||||
Long-Term Debt | |||||||||
Debt instrument, basis spread on variable rate (as a percent) | 1.00% | ||||||||
Partnership's revolving credit facility and term loan facility | Exterran Partners, L.P. | Base rate loans | Maximum | |||||||||
Long-Term Debt | |||||||||
Debt instrument, basis spread on variable rate (as a percent) | 2.00% | ||||||||
Partnership's revolving credit facility and term loan facility | Exterran Partners, L.P. | Federal Funds | |||||||||
Long-Term Debt | |||||||||
Debt instrument, basis spread on variable rate (as a percent) | 0.50% | ||||||||
Partnership's revolving credit facility and term loan facility | Exterran Partners, L.P. | one-month LIBOR | |||||||||
Long-Term Debt | |||||||||
Debt instrument, basis spread on variable rate (as a percent) | 1.00% | ||||||||
Partnership's revolving credit facility | Exterran Partners, L.P. | |||||||||
Long-Term Debt | |||||||||
Revolving credit facility borrowing capacity | $ 650,000,000 | 400,000,000 | $ 750,000,000 | $ 550,000,000 | |||||
Undrawn capacity under revolving credit facility | $ 319,500,000 | $ 319,500,000 | |||||||
Partnership's term loan facility | Exterran Partners, L.P. | |||||||||
Long-Term Debt | |||||||||
Revolving credit facility borrowing capacity | $ 150,000,000 |
Long-Term Debt - The Partners84
Long-Term Debt - The Partnership 6.0 Senior Notes Due April 2021 (Details 4) | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2013USD ($)offering | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 04, 2015USD ($) | |
Long-Term Debt | |||||
Principle amount of senior notes | $ 350,000,000 | ||||
Proceeds from borrowings of long-term debt | $ 1,483,258,000 | $ 2,240,299,000 | $ 2,108,037,000 | ||
Amortization of debt discount | 1,170,000 | $ 12,380,000 | 23,407,000 | ||
Exterran Partners, L.P. | |||||
Long-Term Debt | |||||
Amount of unamortized discount of notes | $ 8,600,000 | ||||
Partnership's 6% senior notes due 2021 | Exterran Partners, L.P. | |||||
Long-Term Debt | |||||
Principle amount of senior notes | $ 350,000,000 | ||||
Interest rate (as a percent) | 6.00% | 6.00% | 6.00% | ||
Proceeds from borrowings of long-term debt | $ 336,900,000 | ||||
Transaction costs | 7,800,000 | ||||
Amount of unamortized discount of notes | $ 5,500,000 | $ 3,900,000 | $ 4,500,000 | ||
Effective interest rate (as a percent) | 6.25% | ||||
Amortization of debt discount | $ 600,000 | $ 500,000 | $ 400,000 | ||
Partnership's 6% senior notes due 2021 | Prior to April 1, 2016 | Exterran Partners, L.P. | |||||
Long-Term Debt | |||||
Maximum percentage of the aggregate principal amount of debt instruments that may be redeemed | 35.00% | ||||
Number of equity offerings | offering | 1 | ||||
Redemption price as percentage of principal amount | 106.00% | ||||
Minimum notes remaining outstanding if notes redeemed prior to 2016 (as a percent) | 65.00% | ||||
Maximum number of days within which the entity may redeem a percentage of the note following the date of the closing of equity offering | 180 days | ||||
Partnership's 6% senior notes due 2021 | Twelve month period beginning April 1, 2017 | Exterran Partners, L.P. | |||||
Long-Term Debt | |||||
Redemption price as percentage of principal amount | 103.00% | ||||
Partnership's 6% senior notes due 2021 | Twelve month period beginning April 1, 2018 | Exterran Partners, L.P. | |||||
Long-Term Debt | |||||
Redemption price as percentage of principal amount | 101.50% | ||||
Partnership's 6% senior notes due 2021 | Beginning April 1, 2019 and thereafter | Exterran Partners, L.P. | |||||
Long-Term Debt | |||||
Redemption price as percentage of principal amount | 100.00% |
Long-Term Debt - The Partners85
Long-Term Debt - The Partnership 6.0 Senior Notes Due October 2022 (Details 5) | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2014USD ($)offering | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 04, 2015USD ($) | Apr. 10, 2014USD ($) | |
Long-Term Debt | ||||||
Principle amount of senior notes | $ 350,000,000 | |||||
Proceeds from borrowings of long-term debt | $ 1,483,258,000 | $ 2,240,299,000 | $ 2,108,037,000 | |||
Amortization of debt discount | 1,170,000 | 12,380,000 | $ 23,407,000 | |||
Exterran Partners, L.P. | ||||||
Long-Term Debt | ||||||
Amount of unamortized discount of notes | 8,600,000 | |||||
Partnership's 6% senior notes due 2022 | Exterran Partners, L.P. | ||||||
Long-Term Debt | ||||||
Principle amount of senior notes | $ 350,000,000 | $ 350,000,000 | ||||
Proceeds from borrowings of long-term debt | 337,400,000 | |||||
Transaction costs | 6,900,000 | |||||
Amount of unamortized discount of notes | $ 5,700,000 | 4,700,000 | 5,200,000 | |||
Effective interest rate (as a percent) | 6.25% | |||||
Amortization of debt discount | $ 600,000 | $ 500,000 | ||||
Partnership's 6% senior notes due 2022 | Twelve month period prior to April 1, 2017 | Exterran Partners, L.P. | ||||||
Long-Term Debt | ||||||
Maximum percentage of the aggregate principal amount of debt instruments that may be redeemed | 35.00% | |||||
Number of equity offerings | offering | 1 | |||||
Redemption price as percentage of principal amount | 106.00% | |||||
Minimum notes remaining outstanding if notes redeemed prior to 2017 (as a percent) | 65.00% | |||||
Maximum number of days within which the entity may redeem a percentage of the note following the date of the closing of equity offering | 180 days | |||||
Partnership's 6% senior notes due 2022 | Twelve month period beginning April 1, 2018 | Exterran Partners, L.P. | ||||||
Long-Term Debt | ||||||
Redemption price as percentage of principal amount | 103.00% | |||||
Partnership's 6% senior notes due 2022 | Twelve month period beginning April 1, 2019 | Exterran Partners, L.P. | ||||||
Long-Term Debt | ||||||
Redemption price as percentage of principal amount | 101.50% | |||||
Partnership's 6% senior notes due 2022 | Beginning April 1, 2020 and thereafter | Exterran Partners, L.P. | ||||||
Long-Term Debt | ||||||
Redemption price as percentage of principal amount | 100.00% |
Long-Term Debt - 7.25 Senior No
Long-Term Debt - 7.25 Senior Notes (Details 6) - USD ($) | Dec. 04, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Long-Term Debt | ||||
Principle amount of senior notes | $ 350,000,000 | |||
Repayments of long-term debt | $ 1,921,758,000 | $ 1,727,500,000 | $ 2,195,750,000 | |
Amortization of debt discount | 1,170,000 | $ 12,380,000 | $ 23,407,000 | |
7.25% senior notes due December 2018 | ||||
Long-Term Debt | ||||
Principle amount of senior notes | $ 350,000,000 | |||
Interest rate (as a percent) | 7.25% | 7.25% | ||
Repayments of long-term debt | $ 369,200,000 | |||
Call premium expense | 6,300,000 | |||
Amortization of debt discount | $ 2,900,000 | |||
7.25% senior notes due December 2018 | Twelve month period beginning December 1, 2015 | ||||
Long-Term Debt | ||||
Redemption price as percentage of principal amount | 101.813% |
Long-Term Debt - 4.25 Convertib
Long-Term Debt - 4.25 Convertible Senior Notes (Details 7) $ / shares in Units, shares in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2009USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($) | Dec. 04, 2015USD ($) | |
Long-Term Debt | ||||||
Principle amount of senior notes | $ 350,000,000 | |||||
Amortization of debt discount | $ 1,170,000 | $ 12,380,000 | $ 23,407,000 | |||
Value of shares acquired upon exercise of call options | $ 0 | 89,407,000 | 0 | |||
4.25% convertible senior notes due June 2014 | ||||||
Long-Term Debt | ||||||
Principle amount of senior notes | $ 355,000,000 | |||||
Interest rate (as a percent) | 4.25% | |||||
Conversion rate of debt instrument (Shares per USD) | 0.435084 | |||||
Face value rate of conversion | 1,000 | |||||
Conversion price per common stock shares (in dollars per share) | $ / shares | $ 22.98 | |||||
Repayment of long term debt | $ 370,000,000 | |||||
Number of shares of common stock issued upon redemption of debt | shares | 6.8 | |||||
Amount of unamortized discount of notes | $ 97,900,000 | |||||
Recognized interest expense related to the contractual interest coupon | 6,900,000 | 15,100,000 | ||||
Amortization of debt discount | $ 11,300,000 | $ 23,000,000 | ||||
Effective interest rate (as a percent) | 11.67% | |||||
Price per share of common stock for call options purchased (in dollars per share) | $ / shares | $ 22.98 | |||||
Warrant exercise price (in dollars per share) | $ / shares | 32.19 | |||||
Effective conversion price (in dollars per share) | $ / shares | $ 32.19 | |||||
Debt instrument face amount for effective conversion price | $ 325,000,000 | |||||
Number of shares acquired upon exercise of call options | shares | 6.5 | |||||
Value of shares acquired upon exercise of call options | $ 89,400,000 | |||||
Trading days within which counterparties have the right to exercise warrants | 80 days | |||||
Common shares issued pursuant to warrants exercised | shares | 1.6 |
Long-Term Debt - Long Term Debt
Long-Term Debt - Long Term Debt Maturity Schedule (Details 8) $ in Thousands | Dec. 31, 2015USD ($) |
Long-Term Debt Maturity Schedule | |
2,016 | $ 0 |
2,017 | 0 |
2,018 | 730,500 |
2,019 | 0 |
2,020 | 166,500 |
Thereafter (1) | 700,000 |
Total debt (1) | 1,597,000 |
Exterran Partners, L.P. | |
Long-Term Debt | |
Amount of unamortized discount of notes | $ 8,600 |
Accounting for Derivatives (Det
Accounting for Derivatives (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 31, 2013 | |
Fair Value Asset (Liability) | ||||
Interest income recorded due to ineffectiveness related to interest rate swaps | $ 400,000 | $ 0 | $ 0 | |
Deferred pre-tax loss to be reclassified during next 12 months | 3,500,000 | |||
Interest rate hedges | Exterran Partners, L.P. | ||||
Fair Value Asset (Liability) | ||||
Notional amount of interest rate swaps | $ 250,000,000 | |||
Derivatives liability designated as hedging instruments, Fair value | $ 8,800,000 | |||
Designated as a hedging instrument | Interest rate hedges | Exterran Partners, L.P. | ||||
Fair Value Asset (Liability) | ||||
Notional value of interest rate swaps entered into during the period | 100,000,000 | |||
Notional amount of interest rate swaps | $ 500,000,000 | |||
Weighted average effective fixed interest rate on interest rate swaps (as a percent) | 1.60% | |||
Designated as a hedging instrument | Interest rate hedges | Exterran Partners, L.P. | Derivative expiring in 2018 | ||||
Fair Value Asset (Liability) | ||||
Notional amount of interest rate swaps | $ 300,000,000 | |||
Designated as a hedging instrument | Interest rate hedges | Exterran Partners, L.P. | Derivative expiring in 2019 | ||||
Fair Value Asset (Liability) | ||||
Notional amount of interest rate swaps | 100,000,000 | |||
Designated as a hedging instrument | Interest rate hedges | Exterran Partners, L.P. | Derivative expiring in 2020 | ||||
Fair Value Asset (Liability) | ||||
Notional amount of interest rate swaps | $ 100,000,000 |
Accounting for Derivatives (D90
Accounting for Derivatives (Details 2) - Designated as a hedging instrument - Interest rate hedges - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Asset (Liability) | ||
Total derivatives, Fair value | $ (5,984) | $ (4,396) |
Intangible and other assets, net | ||
Fair Value Asset (Liability) | ||
Derivatives asset designated as hedging instruments, Fair value | 45 | 712 |
Accrued liabilities | ||
Fair Value Asset (Liability) | ||
Derivatives liability designated as hedging instruments, Fair value | (4,608) | (4,958) |
Other long-term liabilities | ||
Fair Value Asset (Liability) | ||
Derivatives liability designated as hedging instruments, Fair value | $ (1,421) | $ (150) |
Accounting for Derivatives (D91
Accounting for Derivatives (Details 3) - Interest rate hedges - Derivatives designated as cash flow hedges - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effect of derivative instruments on results of operations | |||
Pre-tax Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives | $ (8,901) | $ (5,879) | $ 3,057 |
Interest Expense | |||
Effect of derivative instruments on results of operations | |||
Pre-tax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) | $ (7,259) | $ (5,657) | $ (6,124) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
(Level 2) | Recurring basis | ||
Fair value measurement of assets and liabilities | ||
Interest rate swaps asset | $ 45 | $ 712 |
Interest rate swaps liability | (6,029) | (5,108) |
(Level 3) | Nonrecurring basis | ||
Fair value measurement of assets and liabilities | ||
Impaired long-lived assets | $ 12,565 | $ 3,359 |
Fair Value Measurements (Deta93
Fair Value Measurements (Details 2) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Long-term receivable from the sale of Canadian Operations | Weighted average | ||
Fair value measurement of assets and liabilities | ||
Discount rate (as a percent) | 9.00% | |
Impaired long-lived assets | ||
Fair value measurement of assets and liabilities | ||
Weighted average disposal period of impaired assets | 4 years | |
Impaired long-lived assets | Weighted average | ||
Fair value measurement of assets and liabilities | ||
Discount rate (as a percent) | 12.00% |
Long-Lived Asset Impairment (De
Long-Lived Asset Impairment (Detail) hp in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)compressor_unithp | Dec. 31, 2014USD ($)compressor_unithp | Dec. 31, 2013USD ($)compressor_unithp | |
Idle compressor units | |||
Long-Lived Asset Impairment | |||
Number of long-lived assets that the entity determined to retire and either sell or re-utilize key components (compressor units) | compressor_unit | 900 | 290 | 280 |
Horsepower retired from the contract operations business (horsepower) | hp | 371 | 112 | 76 |
Long-lived asset impairment | $ 111.7 | $ 30.4 | $ 14.9 |
Idle compressor units previously impaired | |||
Long-Lived Asset Impairment | |||
Long-lived asset impairment | $ 13.3 | 11.7 | |
Other long lived assets | |||
Long-Lived Asset Impairment | |||
Long-lived asset impairment | $ 0.7 | $ 1.8 |
Restructuring Charges - Narrati
Restructuring Charges - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring and Other Charges | |||
Restructuring and other charges | $ 4,745 | $ 5,394 | $ 0 |
Expected retention payments, 2016 | 2,000 | ||
Expected retention payments, 2017 | 2,000 | ||
Spin-off | |||
Restructuring and Other Charges | |||
Restructuring and other charges | 4,135 | 0 | |
Separation Charges | |||
Restructuring and Other Charges | |||
Accrued Liabilities | 900 | ||
Cost Reduction Plan | |||
Restructuring and Other Charges | |||
Restructuring and other charges | $ 610 | $ 5,394 |
Restructuring Charges - Rollfor
Restructuring Charges - Rollforward of Accrued Laibility Balances Related to Restructuring (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Restructuring Charges Accrual | ||||
Beginning balance | $ 0 | $ 0 | ||
Additions for costs expensed | 4,745 | 5,394 | $ 0 | |
Less: non-cash expense | (2,515) | (4,103) | ||
Reductions for payments | (1,375) | (1,291) | ||
Ending balance | 0 | 0 | 0 | $ 855 |
Spin-off | ||||
Restructuring Charges Accrual | ||||
Beginning balance | 0 | 0 | ||
Additions for costs expensed | 4,135 | 0 | ||
Less: non-cash expense | (2,515) | 0 | ||
Reductions for payments | (765) | 0 | ||
Ending balance | 0 | 0 | 0 | 855 |
Cost Reduction Plan | ||||
Restructuring Charges Accrual | ||||
Beginning balance | 0 | 0 | ||
Additions for costs expensed | 610 | 5,394 | ||
Less: non-cash expense | 0 | (4,103) | ||
Reductions for payments | (610) | (1,291) | ||
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Restructuring Charges - Compone
Restructuring Charges - Components of Charges Included in Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring and Other Charges | |||
Non-cash inventory write-downs | $ 2,515 | $ 4,103 | |
Restructuring and Related Cost, Incurred Cost | 4,745 | 5,394 | $ 0 |
Restructuring and other charges | |||
Restructuring and Other Charges | |||
Retention and severance benefits | 3,135 | 0 | |
Non-cash inventory write-downs | 1,000 | 4,103 | |
Employee termination benefits | 610 | 1,291 | |
Restructuring and Related Cost, Incurred Cost | $ 4,745 | $ 5,394 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax provision (benefit): | |||
U.S. federal | $ 556 | $ 23 | $ (310) |
State | 1,415 | (654) | 938 |
Total current | 1,971 | (631) | 628 |
Deferred tax provision (benefit): | |||
U.S. federal | 48,450 | (23,786) | (18,397) |
State | 2,768 | (3,649) | (71) |
Total deferred | 51,218 | (27,435) | (18,468) |
Provision for (benefit from) income taxes | $ 53,189 | $ (28,066) | $ (17,840) |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of provision for (benefit from) income taxes in effective tax rates | |||
Income taxes at U.S. federal statutory rate of 35% | $ (37,165) | $ (15,813) | $ (7,311) |
Net state income taxes | 2,383 | (5,253) | 937 |
Noncontrolling interest | (2,904) | (11,166) | (12,685) |
Unrecognized tax benefits | 698 | 4,063 | 416 |
Valuation allowances and write off of tax attributes | 88,088 | 0 | 0 |
Other | 2,089 | 103 | 803 |
Provision for (benefit from) income taxes | $ 53,189 | $ (28,066) | $ (17,840) |
Effective income tax rate (as a percent) | (50.10%) | 62.10% | 85.40% |
U.S. federal statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 8,028 | $ 37,668 |
Inventory | 3,642 | 4,405 |
Alternative minimum tax credit carryforwards | 1,496 | 5,685 |
Accrued liabilities | 11,466 | 7,894 |
Other | 4,913 | 0 |
Subtotal | 29,545 | 55,652 |
Valuation allowances | (633) | (633) |
Total deferred tax assets | 28,912 | 55,019 |
Deferred tax liabilities: | ||
Property, plant and equipment | (53,495) | (126,670) |
Basis difference in the Partnership | (148,421) | (136,438) |
Other | (5,562) | (10,583) |
Total deferred tax liabilities | (207,478) | (273,691) |
Net deferred tax liabilities | $ (178,566) | $ (218,672) |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2015 | Nov. 03, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards | |||
Alternative minimum tax credit carryforwards | $ 1,496 | $ 5,685 | |
Valuation allowances | 633 | $ 633 | |
Change in income tax provision | 86,000 | ||
Spin-off | |||
Operating Loss Carryforwards | |||
Foreign tax credit carryforwards | $ 144,300 | ||
Domestic | |||
Operating Loss Carryforwards | |||
Operating loss carryforwards | 22,000 | ||
State | |||
Operating Loss Carryforwards | |||
Operating loss carryforwards | 6,700 | ||
Foreign | |||
Operating Loss Carryforwards | |||
Change in valuation allowance for deferred tax asset | (48,200) | ||
Valuation allowances | $ 37,800 |
Income Taxes (Details 5)
Income Taxes (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of unrecognized tax benefits | |||
Beginning balance | $ 14,595 | $ 11,259 | $ 9,597 |
Additions based on tax positions related to current year | 845 | 954 | 365 |
Additions based on tax positions related to prior years | 3,648 | 2,597 | 1,710 |
Reductions based on settlement with government authority | 0 | 0 | 0 |
Reductions based on lapse of statute of limitations | 0 | (215) | (97) |
Reductions based on tax positions related to prior years | (592) | 0 | (316) |
Reductions based on tax positions transferred to Exterran Corp. | (6,498) | 0 | 0 |
Ending balance | $ 11,998 | $ 14,595 | $ 11,259 |
Income Taxes (Details 6)
Income Taxes (Details 6) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2012 | |
Income Taxes Additional Disclosures | |||||
Unrecognized tax benefits , which if recognized would affect the effective tax rate | $ 12 | $ 14.6 | $ 11.3 | ||
Potential interest expense and penalties related to unrecognized tax benefits | 0.2 | $ 3.3 | $ 3.4 | ||
Indemnified assets | $ 5.7 | ||||
Aggregate over assessment on income tax examination | $ 0.9 | ||||
Amount of disallowance of telephone excise tax refund claims for which protests were filed with the Appeals Division of the IRS | $ 0.5 | ||||
Refund of over-assessment received | $ 0.9 | ||||
State income tax returns, period subject to examination, low end of range | 3 years | ||||
State income tax returns, period subject to examination, high end of range | 5 years | ||||
State income tax examination period after formal notification, maximum | 1 year |
Common Stockholders' Equity (De
Common Stockholders' Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common Stock Disclosures | |||
Number of common stock shares repurchased | 137,994 | ||
Common stock shares repurchased, value | $ 3,985 | $ 7,044 | $ 4,539 |
Stock-Based Compensation and105
Stock-Based Compensation and Awards - Stock Based Compensation Expense (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation | |||
Total stock-based compensation expense (in dollars) | $ 10 | $ 12.8 | $ 9 |
Stock-Based Compensation and106
Stock-Based Compensation and Awards - Stock Incentive Plan (Narratives) (Details 2) - 2013 Plan | Apr. 30, 2013shares |
Stock-based compensation | |
Maximum number of shares available under the Plan | 6,500,000 |
Stock Options | |
Stock-based compensation | |
Number of shares counted by each award | 1 |
Stock-settled award other than an option, stock appreciation right or award for which the recipient pays intrinsic value | |
Stock-based compensation | |
Number of shares counted by each award | 1.75 |
Stock-Based Compensation and107
Stock-Based Compensation and Awards - Stock Options (Narratives) (Details 3) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based compensation | |||
Weighted average grant date fair value (in dollars per share) | $ 14.47 | $ 10.19 | |
First anniversary vesting | |||
Stock-based compensation | |||
Expiration period | 1 year | ||
Vesting percentage | 33.33% | ||
Second anniversary vesting | |||
Stock-based compensation | |||
Expiration period | 2 years | ||
Vesting percentage | 33.33% | ||
Third anniversary vesting | |||
Stock-based compensation | |||
Expiration period | 3 years | ||
Vesting percentage | 33.33% | ||
Maximum | |||
Stock-based compensation | |||
Expiration period | 7 years |
Stock-Based Compensation and108
Stock-Based Compensation and Awards - Black-Scholes Valuation Inputs (Details 4) - Stock Options | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted average assumptions | ||
Expected life in years | 4 years 6 months | 4 years 6 months |
Risk-free interest rate | 1.33% | 0.66% |
Volatility | 46.51% | 49.19% |
Dividend yield | 1.50% | 0.00% |
Stock-Based Compensation and109
Stock-Based Compensation and Awards - Stock Option Activity Rollforward (Details 5) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options | |||
Options outstanding at the beginning of the period, shares | 1,495 | ||
Granted, shares | 0 | ||
Exercised, shares | (90) | ||
Canceled, shares | (300) | ||
Spin-off of Exterran Corporation, shares | 142 | ||
Options outstanding at the end of the period, shares | 1,247 | 1,495 | |
Options exercisable at year end | 1,118 | ||
Weighted Average Exercise Price Per Share | |||
Options outstanding at the beginning of the period (in dollars per share) | $ 33.39 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 12.29 | ||
Canceled (in dollars per share) | 59.91 | ||
Spin-off of Exterran Corporation, (in dollars per share) | (56.65) | ||
Options outstanding at the end of the period (in dollars per share) | 18.28 | $ 33.39 | |
Weighted average exercise price of exercisable options | $ 17.97 | ||
Weighted Average Remaining Life (in years) | |||
Weighted average contractual term of shares outstanding at the end of period | 2 years 2 months 12 days | ||
Weighted average contractual term of shares exercisable at the end of period | 1 year 10 months 24 days | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period (in dollars) | $ 278 | ||
Exercisable at year end (in dollars) | 278 | ||
Total intrinsic value of stock options exercised (in dollars) | 1,500 | $ 16,600 | $ 4,400 |
Expected unrecognized compensation cost related to unvested stock options (in dollars) | $ 500 | ||
Weighted-average period over which the expected unrecognized compensation cost related to unvested stock options will be recognized | 1 year |
Stock-Based Compensation and110
Stock-Based Compensation and Awards - Restricted Stock (Details 6) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Restricted stock, restricted stock units, performance units, cash settled restricted stock units and cash settled performance units | |
Shares | |
Non-vested awards at the beginning of the period, in shares | 1,170 |
Granted, in shares | 1,008 |
Vested, in shares | (809) |
Canceled, in shares | (53) |
Spin-off of Exterran Corporation, shares | (161) |
Non-vested awards at the end of the period, in shares | 1,155 |
Weighted Average Grant-Date Fair Value Per Share | |
Non-vested awards at the beginning of the period (in dollars per share) | $ / shares | $ 27.37 |
Granted (in dollars per share) | $ / shares | 25.49 |
Vested (in dollars per share) | $ / shares | 23.05 |
Cancelled (in dollars per share) | $ / shares | 30.25 |
Spin-off of Exterran Corporation (in dollars per share) | $ / shares | (99.93) |
Non-vested awards at the end of the period (in dollars per share) | $ / shares | $ 18.50 |
Unrecognized compensation | |
Expected unrecognized compensation cost related to unvested awards (in dollars) | $ | $ 11.7 |
Weighted-average period over which the expected unrecognized compensation cost related to unvested stock options will be recognized | 1 year 9 months 18 days |
Restricted stock, restricted stock units, performance units, cash settled restricted stock units and cash settled performance units | First anniversary vesting | |
Unrecognized compensation | |
Vesting percentage | 33.33% |
Vesting period | 1 year |
Restricted stock, restricted stock units, performance units, cash settled restricted stock units and cash settled performance units | Second anniversary vesting | |
Unrecognized compensation | |
Vesting percentage | 33.33% |
Vesting period | 2 years |
Restricted stock, restricted stock units, performance units, cash settled restricted stock units and cash settled performance units | Third anniversary vesting | |
Unrecognized compensation | |
Vesting percentage | 33.33% |
Vesting period | 3 years |
Cash settled restricted stock units and cash settled performance units | |
Shares | |
Non-vested awards at the end of the period, in shares | 55 |
Restricted shares, restricted stock units and performance units | |
Shares | |
Non-vested awards at the end of the period, in shares | 1,100 |
Stock-Based Compensation and111
Stock-Based Compensation and Awards - Employee Stock Purchase Plan (Narratives) (Details 7) - Employee Stock Purchase Plan - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | May. 31, 2011 | |
Employee Stock Purchase Plan | ||
Maximum employee salary to purchase shares (in shares) | $ 25,000 | |
Maximum percentage of employee eligible pay to purchase shares | 10.00% | |
Maximum number of shares available under the Plan | 1,000,000 | |
Minimum | ||
Employee Stock Purchase Plan | ||
Purchase price as a percent of the fair market value | 85.00% | |
Maximum | ||
Employee Stock Purchase Plan | ||
Purchase price as a percent of the fair market value | 100.00% |
Stock-Based Compensation and112
Stock-Based Compensation and Awards - Director's Stock and Deferral Plan (Narratives) (Details 8) - Directors Stock and Deferral Plan - shares | Dec. 31, 2015 | Aug. 20, 2007 |
Stock-based compensation | ||
Maximum number of shares available under the Plan | 100,000 | |
Remaining shares available for purchase | 48,022 |
Stock-Based Compensation and113
Stock-Based Compensation and Awards - Partnership Long-Term Incentive Plan (Narratives) (Details 9) - Partnership Long-Term Incentive Plan | 12 Months Ended |
Dec. 31, 2015shares | |
Stock-based compensation | |
Maximum number of shares available under the Plan | 1,035,378 |
Exterran Partners, L.P. | Partnership Phantom Units | First anniversary vesting | |
Stock-based compensation | |
Vesting period | 1 year |
Vesting percentage | 33.33% |
Exterran Partners, L.P. | Partnership Phantom Units | Second anniversary vesting | |
Stock-based compensation | |
Vesting period | 2 years |
Vesting percentage | 33.33% |
Exterran Partners, L.P. | Partnership Phantom Units | Third anniversary vesting | |
Stock-based compensation | |
Vesting period | 3 years |
Vesting percentage | 33.33% |
Stock-Based Compensation and114
Stock-Based Compensation and Awards (Details 10) - Partnership Phantom Units $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Shares | |
Non-vested awards at the beginning of the period, in shares | shares | 92 |
Granted, in shares | shares | 45 |
Vested, in shares | shares | (60) |
Non-vested awards at the end of the period, in shares | shares | 77 |
Weighted Average Grant-Date Fair Value Per Share | |
Non-vested awards at the beginning of the period (in dollars per share) | $ / shares | $ 27.38 |
Granted (in dollars per share) | $ / shares | 24.87 |
Vested (in dollars per share) | $ / shares | 25.94 |
Non-vested awards at the end of the period (in dollars per share) | $ / shares | $ 27.01 |
Unrecognized compensation | |
Expected unrecognized compensation cost related to unvested awards (in dollars) | $ | $ 1.2 |
Weighted-average period over which the expected unrecognized compensation cost related to unvested stock options will be recognized | 1 year 8 months 12 days |
Cash Dividends (Detail)
Cash Dividends (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 26, 2016 | Oct. 30, 2015 | Oct. 18, 2015 | Aug. 17, 2015 | Jul. 30, 2015 | May. 18, 2015 | Apr. 28, 2015 | Feb. 17, 2015 | Jan. 30, 2015 | Nov. 17, 2014 | Oct. 30, 2014 | Aug. 18, 2014 | Jul. 31, 2014 | May. 16, 2014 | Apr. 29, 2014 | Mar. 28, 2014 | Feb. 25, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Dividends Payable | ||||||||||||||||||||
Dividend declared per common stock (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | ||||||||||||
Dividends paid to Exterran stockholders | $ 10,400 | $ 10,500 | $ 10,400 | $ 10,300 | $ 10,300 | $ 10,000 | $ 10,000 | $ 10,000 | $ 41,584 | $ 40,319 | $ 0 | |||||||||
Subsequent Event | ||||||||||||||||||||
Dividends Payable | ||||||||||||||||||||
Dividend declared per common stock (in dollars per share) | $ 0.1875 |
Retirement Benefit Plan (Detail
Retirement Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Employer match of employee contributions of first 1% of eligible compensation (as a percent) | 100.00% | ||
Percentage of eligible compensation, matched 100% by employer | 1.00% | ||
Employer match of employee contributions of next 5% of eligible compensation (as a percent) | 50.00% | ||
Percentage of eligible compensation, matched 50% by employer | 5.00% | ||
Recognized matching contributions from retirement benefit plans (in dollars) | $ 4.2 | $ 5 | $ 4.2 |
Transactions Related to the 117
Transactions Related to the Partnership (Details) hp in Thousands | Apr. 10, 2014shares | May. 31, 2015USD ($) | Apr. 30, 2015USD ($)compressor_unitcustomerhpshares | Apr. 30, 2014USD ($)shares | Mar. 31, 2013USD ($)compressor_unitcustomerhpshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Transactions related to the partnership | ||||||||
Net proceeds from the sale of Partnership units | $ | $ 1,164,000 | $ 169,471,000 | $ 0 | |||||
Exterran Partners, L.P. | Subsidiary | ||||||||
Transactions related to the partnership | ||||||||
Number of partnership customers with service agreements (customers) | customer | 60 | 50 | ||||||
Number of compressor units used to provide compression services (compressor units) | compressor_unit | 238 | 363 | ||||||
Horsepower of compressor units used to provide compression services (horse power) | hp | 148 | 256 | ||||||
Percentage of available horsepower of combined U.S. contract operations business from service agreements sold to the partnership | 3.00% | 8.00% | ||||||
Number of compressor units sold (compressor units) | compressor_unit | 179 | 204 | ||||||
Horsepower of compressor units sold (horsepower) | hp | 66 | 99 | ||||||
Consideration received for sale of assets | $ | $ 102,300,000 | $ 174,000,000 | ||||||
Horsepower previously leased from related party and transferred to related party along with transferred contracts (horsepower) | hp | 6 | |||||||
Exterran Partners, L.P. | Common units | ||||||||
Transactions related to the partnership | ||||||||
Sale of common units (in units) | shares | 6,200,000 | 6,210,000 | ||||||
Net proceeds from the sale of Partnership units | $ | $ 169,500,000 | |||||||
Units issued (in units) | shares | 4,000,000 | 7,100,000 | ||||||
Exterran Partners, L.P. | Common units | Over-Allotment Option | ||||||||
Transactions related to the partnership | ||||||||
Sale of common units (in units) | shares | 810,000 | |||||||
Exterran Partners, L.P. | General partner units | ||||||||
Transactions related to the partnership | ||||||||
Units issued (in units) | shares | 80,000 | 145,000 | ||||||
General partner units issued and sold (in units) | shares | 126,000 | 126,000 | ||||||
Approximate general partner interest in limited partnership (as a percent) | 2.00% | |||||||
Proceeds from issuance of general partner units | $ | $ 3,600,000 | |||||||
Exterran Partners, L.P. | Atm Agreements | Limited Partner | ||||||||
Transactions related to the partnership | ||||||||
Maximum aggregate offering price | $ | $ 100,000,000 | |||||||
Sale of common units (in units) | shares | 49,774 | |||||||
Net proceeds from the sale of Partnership units | $ | $ 1,200,000 |
Transactions Related to the 118
Transactions Related to the Partnership (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||||||||||
Net income (loss) attributable to Archrock stockholders | $ (130,267) | $ (6,304) | $ (1,389) | $ 32,142 | $ 19,143 | $ 34,050 | $ 12,377 | $ 32,596 | $ (105,818) | $ 98,166 | $ 123,164 |
Increase in Archrock stockholders’ additional paid in capital for change in ownership of Partnership units | 18,386 | 74,521 | 31,573 | ||||||||
Change from net income (loss) attributable to Archrock stockholders and transfers to/from the noncontrolling interest | $ (87,432) | $ 172,687 | $ 154,737 |
Commitments and Contingencies -
Commitments and Contingencies - Narratives (Details) $ in Millions | 12 Months Ended | 24 Months Ended | 48 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)case | Dec. 31, 2015USD ($) | |
Loss contingency | |||||
Rent expense | $ 10.9 | $ 9.8 | $ 9.9 | ||
Accrued liability for the outcomes of non-income based tax audits | 2.7 | $ 2.7 | $ 2.7 | ||
Indemnified liabilities | 1.5 | $ 1.5 | 1.5 | ||
Litigation and Claims | |||||
Number of heavy equipment statutes cases tried and completed in Texas state district court (cases) | case | 3 | ||||
Number of heavy equipment statues cases appealed (cases) | case | 3 | ||||
Ad valorem tax benefit | 16 | 44 | |||
Ad valorem tax benefit agreed to by a number of appraisal review boards and county appraisal districts | 10.2 | $ 10.2 | 10.2 | ||
Ad valorem tax benefit in litigation | $ 33.8 | $ 33.8 | $ 33.8 |
Commitments and Contingencie120
Commitments and Contingencies - Commitment for Minimum Rental Payment (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Contractual Obligation, Fiscal Year Maturity Schedule | |
2,016 | $ 5,591 |
2,017 | 4,876 |
2,018 | 2,726 |
2,019 | 1,774 |
2,020 | 1,456 |
Thereafter | 1,881 |
Total | $ 18,304 |
Commitments and Contingencie121
Commitments and Contingencies - Guarantees (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Maximum Potential Risk | |
Maximum Potential Undiscounted Payments | $ 11,221 |
Standby Letters of Credit | |
Maximum Potential Risk | |
Maximum Potential Undiscounted Payments | 9,969 |
Performance Bonds | |
Maximum Potential Risk | |
Maximum Potential Undiscounted Payments | $ 1,252 |
Recent Accounting Developments
Recent Accounting Developments (Details) - New Accounting Pronouncement, Early Adoption, Effect $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Deferred tax asset current | |
New Accounting Pronouncements or Change in Accounting Principle | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (5.1) |
Noncurrent deferred tax liability | |
New Accounting Pronouncements or Change in Accounting Principle | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 5.1 |
Reportable Segments and Geog123
Reportable Segments and Geographic Information (Details) - segment | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk | ||
Number of business segments | 2 | |
Revenues | Williams Partners, L.P. | Customer Concentration Risk | ||
Concentration Risk | ||
Concentration risk, percentage | 12.00% | 10.00% |
Reportable Segments and Geog124
Reportable Segments and Geographic Information - Reportable Segments (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sales and other financial information by reportable segment | |||||||||||
Total revenues | $ 241,310 | $ 248,863 | $ 255,062 | $ 252,873 | $ 262,809 | $ 247,453 | $ 239,153 | $ 209,738 | $ 998,108 | $ 959,153 | $ 862,772 |
Gross Margin | 503,062 | 454,760 | 391,794 | ||||||||
Total assets | 2,685,143 | 2,843,634 | 2,685,143 | 2,843,634 | 2,213,010 | ||||||
Capital expenditures | 256,142 | 383,841 | 291,530 | ||||||||
Contract Operations | |||||||||||
Sales and other financial information by reportable segment | |||||||||||
Total revenues | 781,166 | 729,103 | 627,844 | ||||||||
Aftermarket Services | |||||||||||
Sales and other financial information by reportable segment | |||||||||||
Total revenues | 216,942 | 230,050 | 234,928 | ||||||||
Reportable Segments | |||||||||||
Sales and other financial information by reportable segment | |||||||||||
Total revenues | 998,108 | 959,153 | 862,772 | ||||||||
Gross Margin | 503,062 | 454,760 | 391,794 | ||||||||
Total assets | 2,397,199 | 2,509,118 | 2,397,199 | 2,509,118 | 1,974,790 | ||||||
Capital expenditures | 229,544 | 372,559 | 276,343 | ||||||||
Reportable Segments | Contract Operations | |||||||||||
Sales and other financial information by reportable segment | |||||||||||
Total revenues | 781,166 | 729,103 | 627,844 | ||||||||
Gross Margin | 461,765 | 412,961 | 345,355 | ||||||||
Total assets | 2,248,191 | 2,446,633 | 2,248,191 | 2,446,633 | 1,907,097 | ||||||
Capital expenditures | 227,248 | 371,734 | 275,408 | ||||||||
Reportable Segments | Aftermarket Services | |||||||||||
Sales and other financial information by reportable segment | |||||||||||
Total revenues | 216,942 | 230,050 | 234,928 | ||||||||
Gross Margin | 41,297 | 41,799 | 46,439 | ||||||||
Total assets | 149,008 | 62,485 | 149,008 | 62,485 | 67,693 | ||||||
Capital expenditures | 2,296 | 825 | 935 | ||||||||
Other | |||||||||||
Sales and other financial information by reportable segment | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Gross Margin | 0 | 0 | 0 | ||||||||
Total assets | $ 287,944 | $ 334,516 | 287,944 | 334,516 | 238,220 | ||||||
Capital expenditures | $ 26,598 | $ 11,282 | $ 15,187 |
Reportable Segments and Geog125
Reportable Segments and Geographic Information - Reconcilation of Segment Assets to Total Assets (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets from reportable segments to total assets | ||
Assets associated with discontinued operations | $ 21,620 | $ 2,083,205 |
Total assets | 2,706,763 | 4,926,839 |
Reportable Segments | Continuing Operations | ||
Assets from reportable segments to total assets | ||
Total assets | 2,397,199 | 2,509,118 |
Other | Continuing Operations | ||
Assets from reportable segments to total assets | ||
Total assets | 287,944 | 334,516 |
Other | Discontinued Operations | ||
Assets from reportable segments to total assets | ||
Assets associated with discontinued operations | $ 21,620 | $ 2,083,205 |
Reportable Segments and Geog126
Reportable Segments and Geographic Information - Reconcilation from Net Income to Gross Margin (Details 4) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of net income to gross margin | |||||||||||
Net income (loss) | $ (98,966) | $ 125,882 | $ 155,742 | ||||||||
Selling, general and administrative | $ 600 | 131,919 | 132,651 | 118,851 | |||||||
Depreciation and amortization | 229,127 | 212,268 | 187,476 | ||||||||
Long-lived asset impairment | 124,979 | 42,828 | 16,696 | ||||||||
Restructuring and other charges | 4,745 | 5,394 | 0 | ||||||||
Goodwill impairment | $ 3,700 | 3,738 | 0 | 0 | |||||||
Interest expense | 107,617 | 112,273 | 112,194 | ||||||||
Debt extinguishment costs | 9,201 | 0 | 0 | ||||||||
Other (income) expense, net | (2,079) | (5,475) | (22,535) | ||||||||
Provision for (benefit from) income taxes | 53,189 | (28,066) | (17,840) | ||||||||
Income from discontinued operations, net of tax | $ (8,300) | $ (13,700) | $ (34,900) | $ (45,000) | $ (32,600) | $ (24,000) | $ (41,400) | (60,408) | (142,995) | (158,790) | |
Gross margin | $ 503,062 | $ 454,760 | $ 391,794 |
Selected Quarterly Financial127
Selected Quarterly Financial Data (Unaudited) (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Selected Quarterly Financial Information | |||||||||||
Income from discontinued operations, net of tax | $ 8,300 | $ 13,700 | $ 34,900 | $ 45,000 | $ 32,600 | $ 24,000 | $ 41,400 | $ 60,408 | $ 142,995 | $ 158,790 | |
Long-lived asset impairment | 87,400 | 19,900 | $ 8,200 | $ 17,900 | 11,300 | 9,800 | 3,800 | ||||
Restructuring charges | 3,200 | $ 300 | $ 200 | $ 400 | $ 4,800 | 43,884 | 2,159 | 0 | |||
Goodwill impairment loss | $ 3,700 | $ 3,738 | $ 0 | $ 0 | |||||||
April 2015 Contract Operations Acquisition | |||||||||||
Selected Quarterly Financial Information | |||||||||||
Income from discontinued operations, net of tax | $ 3,500 | ||||||||||
Long-lived asset impairment | 9,500 | ||||||||||
Restructuring charges | $ 1,200 |
Selected Quarterly Financial128
Selected Quarterly Financial Data (Unaudited) (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summarized quarterly financial data | |||||||||||
Revenue from external customers | $ 241,310 | $ 248,863 | $ 255,062 | $ 252,873 | $ 262,809 | $ 247,453 | $ 239,153 | $ 209,738 | $ 998,108 | $ 959,153 | $ 862,772 |
Gross profit | (21,541) | 52,949 | 67,643 | 70,797 | 58,065 | 59,738 | 56,616 | 46,396 | |||
Net income (loss) attributable to Archrock stockholders | $ (130,267) | $ (6,304) | $ (1,389) | $ 32,142 | $ 19,143 | $ 34,050 | $ 12,377 | $ 32,596 | $ (105,818) | $ 98,166 | $ 123,164 |
Net income attributable to Archrock common stockholders per share: | |||||||||||
Basic (usd per share) | $ (1.91) | $ (0.09) | $ (0.02) | $ 0.47 | $ 0.28 | $ 0.50 | $ 0.19 | $ 0.50 | $ (1.55) | $ 1.47 | $ 1.91 |
Diluted (usd per share) | $ (1.91) | $ (0.09) | $ (0.02) | $ 0.47 | $ 0.28 | $ 0.48 | $ 0.19 | $ 0.50 | $ (1.55) | $ 1.47 | $ 1.91 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2016USD ($) | |
PDVSA Gas | Subsequent Event | |
Subsequent Event | |
Installment payments received | $ 5.2 |
SCHEDULE II VALUATION AND QU130
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for doubtful accounts | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | $ 2,286 | $ 1,224 | $ 2,938 |
Charged to Cost and Expenses | 3,075 | 1,743 | (191) |
Deductions | 2,018 | 681 | 1,523 |
Balance at end of period | 3,343 | 2,286 | 1,224 |
Allowance for obsolete and slow moving inventory | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 11,500 | 5,871 | 4,107 |
Charged to Cost and Expenses | 4,286 | 8,896 | 3,904 |
Deductions | 5,976 | 3,267 | 2,140 |
Balance at end of period | 9,810 | 11,500 | 5,871 |
Allowance for deferred tax assets | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 633 | 633 | 633 |
Charged to Cost and Expenses | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at end of period | $ 633 | $ 633 | $ 633 |