Business Segment Information | Business Segment Information The Forbes Group has determined that it has two reportable segments organized based on its products and services—well servicing and fluid logistics. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Well Servicing At June 30, 2015 , our well servicing segment utilized our fleet of 172 owned well servicing rigs, which was comprised of 159 workover rigs and 13 swabbing rigs, as well as nine tubing testing units, six coiled tubing spreads, four electromagnetic scan trucks and related assets and equipment. These assets are used to provide (i) well maintenance, including remedial repairs and removal and replacement of downhole production equipment, (ii) well workovers, including significant downhole repairs, re-completions and re-perforations, (iii) completion and swabbing activities, (iv) plugging and abandonment services, and (v) pressure testing of oil and natural gas production tubing and scanning tubing for pitting and wall thickness using tubing testing units. Fluid Logistics The fluid logistics segment utilizes our fleet of owned or leased fluid transport trucks and related assets, including specialized vacuum, high pressure pump and tank trucks, frac tanks, salt water disposal wells and facilities, and related equipment. These assets are used to provide transport, store and dispose of a variety of drilling and produced fluids used in and generated by oil and natural gas production activities. These services are required in most workover and completion projects and are routinely used in the daily operation of producing wells. The following tables set forth certain financial information with respect to the Company’s reportable segments for the three and six months ended June 30, 2015 and June 30, 2014 : Three months ended June 30, Six months ended June 30, Well Servicing Fluid Logistics Consolidated Well Servicing Fluid Logistics Consolidated 2015 (in thousands) (in thousands) Operating revenues $ 39,030 $ 23,780 $ 62,810 $ 90,216 $ 56,927 $ 147,143 Direct operating costs 29,236 17,876 47,112 65,610 42,036 107,646 Segment profits $ 9,794 $ 5,904 $ 15,698 $ 24,606 $ 14,891 $ 39,497 Depreciation and amortization $ 6,393 $ 7,366 $ 13,759 $ 12,934 $ 14,988 $ 27,922 Capital expenditures 722 2,715 3,437 4,026 3,404 7,430 Total assets 653,685 478,252 1,131,937 653,685 478,252 1,131,937 Long lived assets 178,373 123,198 301,571 178,373 123,198 301,571 2014 Operating revenues $ 70,356 $ 42,819 $ 113,175 $ 139,449 $ 83,637 $ 223,086 Direct operating costs 54,046 31,582 85,628 106,449 61,943 168,392 Segment profits $ 16,310 $ 11,237 $ 27,547 $ 33,000 $ 21,694 $ 54,694 Depreciation and amortization $ 6,070 $ 7,485 $ 13,555 $ 11,955 $ 14,851 $ 26,806 Capital expenditures 6,572 5,182 11,754 8,917 8,981 17,898 Total assets 612,256 485,889 1,098,145 612,256 485,889 1,098,145 Long lived assets 195,790 137,576 333,366 195,790 137,576 333,366 Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Reconciliation of the Forbes Group Operating Income (Loss) As Reported: (in thousands) (in thousands) Segment profits $ 15,698 $ 27,547 $ 39,497 $ 54,694 General and administrative expense 8,797 9,096 18,077 17,571 Depreciation and amortization 13,759 13,555 27,922 26,806 Operating income (loss) (6,858 ) 4,896 (6,502 ) 10,317 Other income and expenses, net (6,771 ) (6,948 ) (13,636 ) (14,194 ) Pre-tax loss $ (13,629 ) $ (2,052 ) $ (20,138 ) $ (3,877 ) June 30, 2015 December 31, 2014 Reconciliation of the Forbes Group Assets As Reported: (in thousands) Total reportable segments $ 1,131,937 $ 1,132,856 Elimination of internal transactions (1,840,924 ) (1,784,404 ) Parent 1,164,351 1,135,161 Total assets $ 455,364 $ 483,613 |