FTS International (FTSI) 10-Q 1 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 27, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	FTS International, Inc.
Entity Central Index Key	1,529,463
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
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	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		109,274,564
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue
Revenue	$ 493.3	$ 344.9	$ 960.8	$ 558.4
Operating expenses
Costs of revenue (excluding depreciation of $18.5, $18.5, $36.9 and $37.3, respectively, included in depreciation and amortization below)	329.4	236.3	641.6	411.1
Selling, general and administrative	20.8	20.8	46.6	40.3
Depreciation and amortization	20.7	21.3	41.3	43.1
Impairments and other charges	4	1.2	6	1.3
(Gain) loss on disposal of assets, net	(0.2)	(0.4)	0.3	(0.8)
Gain on insurance recoveries		(0.3)		(2.9)
Total operating expenses	374.7	278.9	735.8	492.1
Operating income	118.6	66	225	66.3
Interest expense, net	(12.1)	(21.5)	(29.5)	(42.7)
Gain (Loss) on extinguishment of debt	(0.8)		(10.1)
Equity in net (loss) income of joint venture affiliate	(1.2)	0.2	(1.2)	1.1
Income before income taxes	104.5	44.7	184.2	24.7
Income tax expense	0.9	0.4	1.9	0.5
Net income	103.6	44.3	182.3	24.2
Net income (loss) attributable to common stockholders	$ 103.6	$ (10.5)	$ 605.5	$ (81.9)
Basic and diluted earnings (loss) per share attributable to common stockholders	$ 0.95	$ (0.20)	$ 6.12	$ (1.58)
Shares used in computing basic and diluted earnings (loss) per share	109.3	51.8	98.9	51.8
Oil and Gas Services
Revenue
Revenue	$ 456.7	$ 304.4	$ 881.8	$ 496.3
Oil and Gas Services | Related Party
Revenue
Revenue	$ 36.6	$ 40.5	$ 79	$ 62.1

CONSOLIDATED STATEMENTS OF OPE3

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Depreciation
Depreciation	$ 18.5	$ 18.5	$ 36.9	$ 37.3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 126.3	$ 208.1
Accounts receivable, net	285.8	231.1
Accounts receivable from related parties	22.3	3
Inventories	61.6	44.5
Prepaid expenses and other current assets	9.4	19.9
Total current assets	505.4	506.6
Property, plant, and equipment, net	285	270.9
Intangible assets, net	29.5	29.5
Investment in joint venture affiliate	20.3	21
Other assets	7.5	3
Total assets	847.7	831
Current liabilities
Accounts payable	153.4	138.3
Accrued expenses and other current liabilities	42.6	44.4
Total current liabilities	196	182.7
Long-term debt	628.5	1,116.4
Other liabilities	1.4	0.4
Total liabilities	825.9	1,299.5
Commitments and contingencies (Note 11)
Series A convertible preferred stock, $0.01 par value, 350,000 shares authorized, issued and outstanding at December 31, 2017		349.8
Stockholders’ equity (deficit)
Common stock, $0.01 par value, 320,000,000 shares authorized, 109,274,564 shares issued and outstanding at June 30, 2018 and 51,782,735 shares issued and outstanding at December 31, 2017	36.4	35.9
Additional paid-in capital	4,369.4	3,712.1
Accumulated deficit	(4,384)	(4,566.3)
Total stockholders’ equity (deficit)	21.8	(818.3)
Total liabilities and stockholders’ equity (deficit)	$ 847.7	$ 831

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Temporary equity
Convertible preferred stock, par value (in dollars per share)		$ 0.01
Convertible preferred stock, authorized (in shares)		350,000
Convertible preferred stock, issued (in shares)		350,000
Convertible preferred stock, outstanding (in shares)		350,000
Convertible preferred stock, liquidation preference		$ 1,132.7
Preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01
Preferred stock, authorized (in shares)	25,000,000
Common stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	320,000,000	320,000,000
Common stock, issued (in shares)	109,274,564	51,782,735
Common stock, outstanding (in shares)	109,274,564	51,782,735

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net income	$ 182.3	$ 24.2
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	41.3	43.1
Stock-based compensation	5
Amortization of debt discounts and issuance costs	1.5	1.9
(Gain) loss on disposal of assets, net	0.3	(0.8)
Loss on extinguishment of debt, net	10.1
Gain on insurance recoveries		(2.9)
Other non-cash items	1.1	(1)
Changes in operating assets and liabilities:
Accounts receivable	(54.8)	(100)
Accounts receivable from related parties	(19.4)	(17.7)
Inventories	(17.3)	(8.2)
Prepaid expenses and other assets	(0.8)	(0.1)
Accounts payable	25	48.3
Accrued expenses and other liabilities	(0.8)	4.7
Net cash provided by (used in) operating activities	173.5	(8.5)
Cash flows from investing activities
Capital expenditures	(66.3)	(19.8)
Proceeds from disposal of assets	0.6	1.8
Proceeds from insurance recoveries		4.2
Net cash used in investing activities	(65.7)	(13.8)
Cash flows from financing activities
Repayments of long-term debt	(499.3)
Net proceeds from issuance of common stock	303
Payments of revolving credit facility issuance costs	(2.4)
Net cash used in financing activities	(198.7)
Net decrease in cash, cash equivalents, and restricted cash	(90.9)	(22.3)
Cash, cash equivalents, and restricted cash at beginning of period	217.2	169.4
Cash, cash equivalents, and restricted cash at end of period	$ 126.3	$ 147.1

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT) - 6 months ended Jun. 30, 2018 - USD ($) $ in Millions	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at beginning of period at Dec. 31, 2017	$ 35.9	$ 3,712.1	$ (4,566.3)	$ (818.3)
Balance at beginning of period (in shares) at Dec. 31, 2017	51,783,000			51,782,735
Net income			182.3	$ 182.3
Activity related to stock plans		5		5
Recapitalization of convertible preferred stock to common stock	$ 0.4	349.4		349.8
Recapitalization of convertible preferred stock to common stock (in shares)	39,415,000
Issuance of common stock	$ 0.1	302.9		303
Issuance of common stock (in shares)	18,077,000
Balance at end of period at Jun. 30, 2018	$ 36.4	$ 4,369.4	$ (4,384)	$ 21.8
Balance at end of period (in shares) at Jun. 30, 2018	109,275,000			109,274,564

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2018
Disclosure Text Block
BASIS OF PRESENTATION	NOTE 1 — BASIS OF PRESENTATION Unless the context requires otherwise, the use of the terms “FTSI,” “Company”, “we,” “us,” “our” or “ours” in these Notes to Condensed Consolidated Financial Statements refer to FTS International, Inc., together with its consolidated subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting. Accordingly, certain information and disclosures normally included in our annual consolidated financial statements have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2017. In our opinion, the condensed consolidated financial statements included herein contain all adjustments of a normal, recurring nature considered necessary for a fair presentation of the interim periods. The results of operations of the interim periods are not necessarily indicative of the results of operations to be expected for the full year. There were no items of other comprehensive income in the periods presented. Initial Public Offering and Related Events In February 2018, the Company completed an initial public offering (“IPO”) of its common stock, recapitalized its convertible preferred stock into shares of common stock, and effected a reverse stock split of its common stock. See Note 4 – “Stockholders’ Equity (Deficit)” for information about our IPO and these related events. New Accounting Standards Updates In May 2014, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”), 2014-09, Revenue from Contracts with Customers . The FASB has subsequently issued a number of additional ASUs to update this guidance. This guidance supersedes substantially all existing accounting guidance related to the accounting for revenue transactions. This guidance establishes a core principle that an entity should record revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. We adopted this standard on January 1, 2018. Our approach to adopting this standard included performing a review of key contracts and comparing historical accounting policies and practices to the new accounting guidance. The accounting for revenue under the new ASU is materially consistent with our previous revenue recognition process. These condensed consolidated financial statements have been prepared in accordance with the new ASU utilizing the modified retrospective method, which did not require a cumulative effect of accounting change at January 1, 2018. The required disclosures have been reflected in Note 5 – “Revenue.” In February 2016, the FASB issued ASU 2016-02, Leases . This standard was issued to increase transparency and comparability among organizations by requiring that most leases be included on the balance sheet and by expanding disclosure requirements. This standard is scheduled to be effective for our financial statements beginning on January 1, 2019. We are in the process of determining the effects that the new standard will have on our consolidated financial statements. Our approach includes a review of existing leases and other executory contracts that may contain embedded leases and identifying the key terms that will be necessary for us to calculate the right-of-use asset and corresponding lease liability. Based upon our expected future lease payments on existing leases that are longer than twelve months, we expect that the adoption of this standard will have a material effect on our total assets and total liabilities; however, we have not yet completed the quantification of the amount of the change. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments . This standard was issued to reduce the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. We adopted this standard on January 1, 2018, and it had no effect on our condensed consolidated statements of cash flows. In November 2016, the FASB issued ASU 2016-18, Restricted Cash . This standard was issued to change the presentation of amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted this standard on January 1, 2018, and the effects of this standard and related required disclosures have been reflected in our condensed consolidated statements of cash flows and Note 2 – “Restricted Cash.”

RESTRICTED CASH

RESTRICTED CASH	6 Months Ended
	Jun. 30, 2018
RESTRICTED CASH
RESTRICTED CASH	NOTE 2 — RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated statements of cash flows: June 30, December 31, (In millions) 2018 2017 Cash and cash equivalents $ 126.3 $ 208.1 Restricted cash included in prepaid expenses and other current assets — 9.1 Total cash, cash equivalents, and restricted cash shown in the $ 126.3 $ 217.2 As of December 31, 2017, we had amounts included in restricted cash that represented amounts required to be set aside by contractual agreement with our casualty and general liability insurance provider and corporate credit card provider. In February 2018, these contractual agreements to set aside cash were terminated. Therefore, as of June 30, 2018, we had no restricted cash balance. As a result of our adoption of ASU 2016-18, we recasted certain balances in our condensed consolidated statement of cash flows for the six months ended June 30, 2017. The following table reflects the recasted balances: Six Months Ended June 30, 2017 (In millions) As Reported Adjustments Recasted Net cash used in investing activities $ (13.3) $ (0.5) $ (13.8) Cash, cash equivalents, and restricted cash at beginning of period $ 160.3 $ 9.1 $ 169.4 Cash, cash equivalents, and restricted cash at end of period $ 138.5 $ 8.6 $ 147.1 The amount of restricted cash at January 1, 2017, and June 30, 2017, was $9.1 million and $8.6 million, respectively.

INDEBTEDNESS AND BORROWING FACI

INDEBTEDNESS AND BORROWING FACILITY	6 Months Ended
	Jun. 30, 2018
Disclosure Text Block
INDEBTEDNESS AND BORROWING FACILITY	NOTE 3 — INDEBTEDNESS AND BORROWING FACILITY The following table summarizes our long-term debt: June 30, December 31, (In millions) 2018 2017 Senior floating rate notes due June 2020 $ — $ 290.0 Term loan due April 2021 231.0 431.0 Senior notes due May 2022 404.0 409.0 Total principal amount 635.0 1,130.0 Less unamortized discount and debt issuance costs (6.5) (13.6) Total long-term debt $ 628.5 $ 1,116.4 Estimated fair value of long-term debt $ 641.3 $ 1,113.8 Estimated fair values for our term loan and senior notes were determined using recent trading activity and/or bid-ask spreads and are classified as Level 2 in the FASB’s fair value hierarchy. We believe we were in compliance with all of the covenants in our debt agreements at June 30, 2018. Debt Repayments In February 2018, we repaid all $290.0 million remaining principal amount of senior floating rate notes due June 2020 (“2020 Senior Notes”) using cash on hand and proceeds received from our IPO. See Note 4 – “Stockholders’ Equity (Deficit)” for more information about our IPO. We recognized a loss on this debt extinguishment of $8.3 million. In the first six months of 2018, we repaid $200.0 million of aggregate principal amount of term loan due April 2021 (“Term Loan”) using cash on hand and proceeds received from our IPO. We recognized a loss on this debt extinguishment of $1.8 million. In January 2018, we repurchased $5.0 million of aggregate principal amount of senior notes due May 2022 (“2022 Senior Notes”) in the qualified institutional market using cash on hand. We recognized an immaterial gain on debt extinguishment. As of June 30, 2018, we had $635.0 million aggregate principal amount of long-term debt still outstanding. In July 2018, we repaid $30.0 million of aggregate principal amount of Term Loan using cash on hand. We recognized an immaterial loss on this debt extinguishment for a portion of unamortized discount and debt issuance costs. Revolving Credit Facility On February 22, 2018, we entered into a $250 million revolving credit facility, with an initial maturity date of February 22, 2023, with a group of lenders with Wells Fargo, N.A., as administrative agent. The maturity date of the facility could be accelerated to January 16, 2021 or January 31, 2022, if we do not repay or refinance our Term Loan or 2022 Senior Notes, respectively, before these dates. LIBOR borrowings under the credit facility bear interest at LIBOR plus a margin of 1.75% to 2.00% per annum, depending on facility utilization. Base rate loans are also available at our option. The credit facility includes a $50 million sub-limit for the issuance of letters of credit. The issuance of letters of credit reduces the amount available under the facility. We also pay a commitment fee on the unused amount of the facility of 0.25% to 0.375% per annum, depending on facility utilization. The obligations under the credit facility are secured by substantially all of our accounts receivable, inventory, deposit accounts, intellectual property and the equity of some current and future wholly-owned domestic and foreign subsidiaries. The maximum availability of credit under the credit facility is limited at any time to the lesser of $250 million or a borrowing base. The borrowing base is based on percentages of eligible accounts receivable and eligible inventory and is subject to certain reserves. In an event of default or if the amount available under the credit facility is less than either 10% of our maximum availability or $12.5 million, we will be required to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0. If at any time borrowings and letters of credit issued under the credit facility exceed the borrowing base, we will be required to repay an amount equal to such excess. The credit facility contains covenants that could, in certain circumstances, limit our ability to issue additional debt, repurchase or pay dividends on our common stock, sell substantially all of our assets, make certain investments, or enter into certain other transactions. As of June 30, 2018, our borrowing base was $235.4 million and therefore our maximum availability under the credit facility was $235.4 million. As of June 30, 2018, there were no borrowings outstanding under the credit facility, and letters of credit totaling $5.9 million had been issued, resulting in $229.5 million of availability under the credit facility. The borrowing base will be adjusted in the third quarter using eligible accounts receivable and eligible inventory information as of June 30, 2018.

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)	6 Months Ended
	Jun. 30, 2018
STOCKHOLDERS’ EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT)	NOTE 4 — STOCKHOLDERS’ EQUITY (DEFICIT) Initial Public Offering of Common Stock We completed an IPO of 22.4 million shares of common stock at a price to the public of $18.00 per share, of which 18.1 million shares were sold by the Company and 4.3 million shares were sold by one of our stockholders, a subsidiary of Chesapeake Energy Corporation. The shares began trading on The New York Stock Exchange on February 2, 2018, under the ticker symbol “FTSI.” The Company received net proceeds from the offering of $303.0 million, after offering costs. We used the net proceeds from the offering for general corporate purposes, primarily debt repayments. The Company did not receive any proceeds from the offering of shares by the selling stockholder. Reverse Stock Split In connection with the IPO, we amended and restated our certificate of incorporation to effect a 69.258777:1 reverse stock split of our common stock. Recapitalization of Convertible Preferred Stock In connection with the IPO, a number of shares of our convertible preferred stock (“Preferred Stock”) converted into common stock at the rate of 155.944841 shares of common stock per each share of Preferred Stock. All remaining shares of Preferred Stock were canceled. We refer to this conversion and the cancelation together as the recapitalization of the Preferred Stock. The conversion rate of the Preferred Stock and shares canceled were calculated so that following the recapitalization, stockholders that did not own Preferred Stock would own 7% of our common stock prior to the IPO. The recapitalization of all outstanding shares of our Preferred Stock resulted in 39.4 million shares of common stock.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2018
REVENUE
REVENUE	NOTE 5 — REVENUE Historically, the Company has contracted with its customers to perform hydraulic fracturing services on one or more oil or natural gas wells. Under these arrangements, we satisfy our performance obligations as services are rendered, which is generally upon the completion of a fracturing stage. We typically complete one or more stages per day. A stage is considered complete when we have met the specifications set forth by the customer, at which time we have the right to invoice the customer and the customer is obligated to pay us for the services rendered. The price for our services typically includes an equipment charge and product charges for proppant, chemicals and other products actually consumed during the course of providing our services. The price for each stage of a particular well does not vary significantly. Payment terms average approximately two months from the date a stage is completed. All consideration owed to us for services performed during a period is fixed and our right to receive it is unconditional. We have recently entered into new pricing arrangements for our services with some customers. Under these arrangements, we provide our customer with exclusive use of a fracturing fleet for a period of time and satisfy our performance obligation as services are rendered, which is based on the passage of time rather than the completion of a stage. Under these arrangements, we have the right to receive consideration from a customer even if circumstances outside of our control prevent us from performing our work. All consideration owed to us for services performed during a period is fixed and our right to receive it is unconditional. Pricing for our services is frequently negotiated with our customers and is based on prevailing market rates during each reporting period. The amounts we invoice our customers for services performed during a period are directly related to the value received by the customers for the period. There is no inherent uncertainty to the amount of consideration we will receive for services performed during a period and no judgment is required to allocate a portion of the transaction price to a future period. Accordingly, we are not required to identify any unsatisfied performance obligations nor attribute any revenue to them. During the period ended June 30, 2018, we acted as a principal, rather than as an agent, for all of the goods and services that we provided to our customers; our customer arrangements did not include obligations for refunds or warranties of our work; and we did not incur incremental costs to obtain or fulfill contracts with our customers. To comply with the FASB disclosure objective, we are required to disaggregate our revenue into categories if it will provide an enhanced understanding of how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. To evaluate an appropriate level of disaggregation of revenue, we considered the following aspects of our business: · We provide a single service to our customers. · We only generate revenue in the U.S. onshore market. · We have a homogeneous customer base, which is comprised of large oil and gas exploration companies. · We provide our service over a short period of time. · We do not disaggregate our revenue into categories for any external communications or to make resource allocation decisions. · We do not have separate operating segments. Based on the above factors, we concluded that no additional disaggregation of revenue was necessary or meaningful to help depict the nature, amount, timing and uncertainty of our revenues and cash flows.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2018
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 6 — STOCK-BASED COMPENSATION Our board of directors and stockholders have adopted the 2018 Equity and Incentive Compensation Plan (“2018 Plan”) to attract and retain officers, employees, directors, consultants and other key personnel and to provide those persons incentives and awards for performance. The 2018 Plan permits the grant of up to 2.8 million shares of common stock in the form of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights, or other stock-based awards. Any shares that become available as a result of forfeiture, cancelation, expiration or cash settlement of an award are allowed to be granted again at a future date under the 2018 Plan. In the first six months of 2018, the compensation committee of our board of directors granted 2.9 million shares to employees and a non-employee director in the form of restricted stock units (“RSUs”). RSUs are valued at the market price of a share of our common stock on the date of grant. Substantially all of these awards will vest in 25% increments over a four-year period from the date of grant and are expensed on a straight-line basis over that period, which is considered to be the requisite service period. Stock-based compensation expense for these RSUs was $5.0 million for the six months ended June 30, 2018. The weighted-average grant-date fair value per share of RSUs granted was $19.89 for the six months ended June 30, 2018. At June 30, 2018, there was $49.6 million of total unrecognized compensation cost related to unvested RSUs, which is expected to be recognized over a weighted average period of 3.7 years. The following table summarizes transactions related to the RSUs granted under the 2018 Plan. Weighted- Number Average of Units Grant-Date (In thousands) Fair Value Unvested balance at January 1, 2018 — $ — Granted 2,925 19.89 Vested — — Forfeited (175) 19.90 Unvested balance at June 30, 2018 2,750 $ 19.89 As of June 30, 2018, 2.8 million shares of unvested RSUs were outstanding under this plan, and up to approximately 70,000 shares were available for future grants under this plan. Immediately prior to the IPO, there were approximately 111,000 stock-settled RSUs and approximately 94,000 cash-settled RSUs outstanding under our 2014 Long-Term Incentive Plan (“2014 LTIP”). All RSUs vested upon the completion of our IPO, which qualified as the final vesting condition for these RSUs. The Company elected to settle all RSUs on a cash basis. The compensation expense recognized in the first six months of 2018 for the stock-settled and cash-settled RSUs was $3.7 million. The 2014 LTIP was terminated after the payout of the RSUs.

IMPAIRMENTS AND OTHER CHARGES

IMPAIRMENTS AND OTHER CHARGES	6 Months Ended
	Jun. 30, 2018
Disclosure Text Block
IMPAIRMENTS AND OTHER CHARGES	NOTE 7 — IMPAIRMENTS AND OTHER CHARGES The following table summarizes our impairments and other charges: Three Months Ended Six Months Ended June 30, June 30, (In millions) 2018 2017 2018 2017 Supply commitment charges $ 4.0 $ 1.0 $ 6.0 $ 1.0 Lease abandonment charges — 0.2 — 0.3 Total impairments and other charges $ 4.0 $ 1.2 $ 6.0 $ 1.3 Supply commitment charges relate to contractual inventory purchase commitments to certain proppant suppliers. During the second quarter and the first six months of 2018, we recorded aggregate charges under these supply arrangements of $4.0 million and $6.0 million, respectively. These charges were attributable to incurred and forecasted shortfalls of purchases from these suppliers. These shortfalls are due to customer requirements for proppant that are different from our contracted supply. We continuously work with our vendors to adjust our contracted amounts to match anticipated demand. In 2019, our purchase commitments are scheduled to increase to a level that is higher than our forecasted demand. We are in discussions with certain vendors to modify our supply agreements. While we have successfully worked with our vendors to minimize charges related to these purchase commitments in the past, if we do not meet the minimum purchase commitments in the future and we are unable to work with our vendors to adjust our contracted amounts, we may incur additional supply commitment charges in future periods. During 2015 and 2016, we vacated certain leased facilities to consolidate our operations. During the first six months of 2017, we recognized additional expense in connection with these actions.

GAIN ON INSURANCE RECOVERIES

GAIN ON INSURANCE RECOVERIES	6 Months Ended
	Jun. 30, 2018
Disclosure Text Block
GAIN ON INSURANCE RECOVERIES	NOTE 8 — GAIN ON INSURANCE RECOVERIES In January 2017, a fire destroyed certain equipment in one of our fleets. These assets were insured at values greater than their carrying values. In the first six months of 2017, we received $4.2 million of insurance recovery proceeds for these assets, which exceeded their carrying values by $2.9 million.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2018
Disclosure Text Block
INCOME TAXES	NOTE 9 — INCOME TAXES In 2012, we established a full valuation allowance with respect to our U.S. federal deferred tax assets and state deferred tax assets in excess of our deferred tax liabilities. We have continued to record a valuation allowance for these net deferred tax assets since 2012. As a result, we only recorded income tax expense for the first six months ended June 30, 2018 and 2017, for states that limit or disallow the deduction of net operating loss carryforwards. Please see Note 13 – “Income Taxes” in notes to consolidated financial statements included in our consolidated financial statements for the year ended December 31, 2017, for more information regarding our income taxes and valuation allowance. Deferred tax assets related to our U.S. federal and state operating losses are still available to us to offset future taxable income, subject to limitations in the event of a change of control under Section 382 of the Internal Revenue Code. At June 30, 2018, we had not incurred such an ownership change. At each reporting date, we consider all available positive and negative evidence to evaluate whether our deferred tax assets are more likely than not to be realized. A significant piece of negative evidence that we consider is our cumulative losses (generally defined as losses before income taxes) incurred in recent fiscal years. Such evidence limits our ability to consider other subjective evidence such as our projections of future taxable income. The Company generated income before income taxes in 2017 and in the first six months of 2018. This represents positive evidence that we may be able to realize some or all of our deferred tax assets; however, due to the negative evidence of our cumulative losses in recent years and the significant cyclicality of our business, we believe that the earliest period when we may adjust the valuation allowance is the fourth quarter of 2018. In December 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 that, among other things, changed the taxation of certain foreign earnings beginning January 2018. We are still in the process of evaluating these new foreign tax law provisions, although we believe any effect of these provisions will be immaterial to our financial statements.

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	6 Months Ended
	Jun. 30, 2018
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE	NOTE 10—EARNINGS (LOSS) PER SHARE The numerators and denominators of the basic and diluted earnings (loss) per share (“EPS”) computations for our common stock are calculated as follows: Three Months Ended Six Months Ended June 30, June 30, (In millions, except per share amounts) 2018 2017 2018 2017 Numerator: Net income $ 103.6 $ 44.3 $ 182.3 $ 24.2 Convertible preferred stock accretion — (54.8) — (106.1) Net reversal of convertible preferred stock — — 423.2 — Net income (loss) attributable to common 103.6 (10.5) 605.5 (81.9) Add back the effect of dilutive securities: Convertible preferred stock accretion (2) — — — — Net income (loss) attributable to common $ 103.6 $ (10.5) $ 605.5 $ (81.9) Denominator: Weighted average shares used for 109.3 51.8 98.9 51.8 Effect of dilutive securities: Convertible preferred stock (2) — — — — Restricted stock units (3) (4) — — — — Dilutive potential common shares — — — — Number of shares used for 109.3 51.8 98.9 51.8 Basic and diluted EPS $ 0.95 $ (0.20) $ 6.12 $ (1.58) _________________________ (1) The accreted value of our Preferred Stock was $1,132.7 million at December 31, 2017. In connection with the IPO, the Preferred Stock was recapitalized into 39.4 million shares of common stock. These shares of common stock had a value of $709.5 million at the IPO share price of $18.00, which resulted in a net reversal of $423.2 million of convertible preferred stock accretion previously recognized. (2) Dilutive securities in our diluted EPS calculation for 2017 do not include the effects of converting the convertible preferred stock because the effect would be antidilutive. The number of common stock equivalents attributable to convertible preferred stock was 13.0 million shares as of June 30, 2017. (3) Dilutive securities in our diluted EPS calculation do not include RSUs granted under our 2014 LTIP. Vesting of these RSUs was dependent upon the satisfaction of both a service condition and a corporate liquidity event such as an initial public offering of our common stock. As of June 30, 2017, a corporate liquidity event had not occurred and the holders of these RSUs had no rights to our undistributed earnings. Therefore, they were excluded from the effect of dilutive securities. The number of common stock equivalents attributable to these RSUs was approximately 128,000 shares as of June 30, 2017. (4) Dilutive securities in our diluted EPS calculation for 2018 do not include RSUs granted under our 2018 Plan because the effect would be antidilutive. The number of common stock equivalents attributable to these RSUs was 2.8 million as of June 30, 2018.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2018
Disclosure Text Block
COMMITMENTS AND CONTINGENCIES	NOTE 11 — COMMITMENTS AND CONTINGENCIES Purchase Obligations We have purchase commitments with certain vendors to supply a significant portion of the proppant used in our operations and to assist us with the delivery of proppant to our job locations. There have been no significant changes to these purchase obligations since December 31, 2017. In 2019, our purchase commitments with one vendor are scheduled to increase significantly. These increased commitments are higher than our forecasted demand. We are in discussions with this vendor to modify our supply agreement. While we have successfully worked with our vendors to minimize charges related to these purchase commitments in the past, if we do not meet the minimum purchase commitments in the future and we are unable to work with our vendors to adjust our contracted amounts, we may incur supply commitment charges in future periods. Litigation In the ordinary course of business, we are subject to various legal proceedings and claims, some of which may not be covered by insurance. Several of these legal proceedings and claims are in early stages, and many of them seek an indeterminate amount of damages. We estimate and provide for potential losses that may arise out of legal proceedings and claims to the extent that such losses are probable and can be reasonably estimated. Significant judgment is required in making these estimates and our final liabilities may ultimately be materially different from these estimates. When preparing our estimates, we consider, among other factors, the progress of each legal proceeding and claim, our experience and the experience of others in similar legal proceedings and claims, and the opinions and views of legal counsel. Patterson v. FTS International Manufacturing, LLC and FTS International Services, LLC: In June 2015, Joshua Patterson filed a lawsuit against the Company in the 115 th Judicial District Court of Upshur County, Texas. The lawsuit alleges, among other things, that the Company was negligent with respect to an automobile accident that occurred between the Company and Mr. Patterson in 2013. Mr. Patterson sought monetary relief for damages incurred because of the accident. This claim is covered under the Company’s insurance policies and our insurance carriers are defending the Company in this case. On July 19, 2018, the jury returned a verdict of approximately $100 million, including punitive damages, against the Company. The Company’s insurance carriers expect to appeal the verdict. While the outcome of this case is uncertain, the Company has already met its insurance deductible for this matter and we do not expect the ultimate resolution of this case to have a material adverse effect on our consolidated financial statements. We believe that costs associated with other legal matters will not have a material adverse effect on our consolidated financial statements.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2018
Policy Text Blocks
New Accounting Standards Updates	New Accounting Standards Updates In May 2014, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”), 2014-09, Revenue from Contracts with Customers . The FASB has subsequently issued a number of additional ASUs to update this guidance. This guidance supersedes substantially all existing accounting guidance related to the accounting for revenue transactions. This guidance establishes a core principle that an entity should record revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. We adopted this standard on January 1, 2018. Our approach to adopting this standard included performing a review of key contracts and comparing historical accounting policies and practices to the new accounting guidance. The accounting for revenue under the new ASU is materially consistent with our previous revenue recognition process. These condensed consolidated financial statements have been prepared in accordance with the new ASU utilizing the modified retrospective method, which did not require a cumulative effect of accounting change at January 1, 2018. The required disclosures have been reflected in Note 5 – “Revenue.” In February 2016, the FASB issued ASU 2016-02, Leases . This standard was issued to increase transparency and comparability among organizations by requiring that most leases be included on the balance sheet and by expanding disclosure requirements. This standard is scheduled to be effective for our financial statements beginning on January 1, 2019. We are in the process of determining the effects that the new standard will have on our consolidated financial statements. Our approach includes a review of existing leases and other executory contracts that may contain embedded leases and identifying the key terms that will be necessary for us to calculate the right-of-use asset and corresponding lease liability. Based upon our expected future lease payments on existing leases that are longer than twelve months, we expect that the adoption of this standard will have a material effect on our total assets and total liabilities; however, we have not yet completed the quantification of the amount of the change. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments . This standard was issued to reduce the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. We adopted this standard on January 1, 2018, and it had no effect on our condensed consolidated statements of cash flows. In November 2016, the FASB issued ASU 2016-18, Restricted Cash . This standard was issued to change the presentation of amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted this standard on January 1, 2018, and the effects of this standard and related required disclosures have been reflected in our condensed consolidated statements of cash flows and Note 2 – “Restricted Cash.”

RESTRICTED CASH (Tables)

RESTRICTED CASH (Tables)	6 Months Ended
	Jun. 30, 2018
RESTRICTED CASH
Schedule of cash and cash equivalents and restricted cash	June 30, December 31, (In millions) 2018 2017 Cash and cash equivalents $ 126.3 $ 208.1 Restricted cash included in prepaid expenses and other current assets — 9.1 Total cash, cash equivalents, and restricted cash shown in the $ 126.3 $ 217.2
Schedule of restated cash balances	Six Months Ended June 30, 2017 (In millions) As Reported Adjustments Recasted Net cash used in investing activities $ (13.3) $ (0.5) $ (13.8) Cash, cash equivalents, and restricted cash at beginning of period $ 160.3 $ 9.1 $ 169.4 Cash, cash equivalents, and restricted cash at end of period $ 138.5 $ 8.6 $ 147.1

INDEBTEDNESS AND BORROWING FA21

INDEBTEDNESS AND BORROWING FACILITY (Tables)	6 Months Ended
	Jun. 30, 2018
Table Text Blocks
Summary of long-term debt	June 30, December 31, (In millions) 2018 2017 Senior floating rate notes due June 2020 $ — $ 290.0 Term loan due April 2021 231.0 431.0 Senior notes due May 2022 404.0 409.0 Total principal amount 635.0 1,130.0 Less unamortized discount and debt issuance costs (6.5) (13.6) Total long-term debt $ 628.5 $ 1,116.4 Estimated fair value of long-term debt $ 641.3 $ 1,113.8

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2018
STOCK-BASED COMPENSATION
Schedule of restricted stock unit award activity	Weighted- Number Average of Units Grant-Date (In thousands) Fair Value Unvested balance at January 1, 2018 — $ — Granted 2,925 19.89 Vested — — Forfeited (175) 19.90 Unvested balance at June 30, 2018 2,750 $ 19.89

IMPAIRMENTS AND OTHER CHARGES (

IMPAIRMENTS AND OTHER CHARGES (Tables)	6 Months Ended
	Jun. 30, 2018
Table Text Blocks
Schedule of impairments and other charges	Three Months Ended Six Months Ended June 30, June 30, (In millions) 2018 2017 2018 2017 Supply commitment charges $ 4.0 $ 1.0 $ 6.0 $ 1.0 Lease abandonment charges — 0.2 — 0.3 Total impairments and other charges $ 4.0 $ 1.2 $ 6.0 $ 1.3

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
EARNINGS (LOSS) PER SHARE
Schedule of computations for basic and diluted earnings (loss) per share	Three Months Ended Six Months Ended June 30, June 30, (In millions, except per share amounts) 2018 2017 2018 2017 Numerator: Net income $ 103.6 $ 44.3 $ 182.3 $ 24.2 Convertible preferred stock accretion — (54.8) — (106.1) Net reversal of convertible preferred stock — — 423.2 — Net income (loss) attributable to common 103.6 (10.5) 605.5 (81.9) Add back the effect of dilutive securities: Convertible preferred stock accretion (2) — — — — Net income (loss) attributable to common $ 103.6 $ (10.5) $ 605.5 $ (81.9) Denominator: Weighted average shares used for 109.3 51.8 98.9 51.8 Effect of dilutive securities: Convertible preferred stock (2) — — — — Restricted stock units (3) (4) — — — — Dilutive potential common shares — — — — Number of shares used for 109.3 51.8 98.9 51.8 Basic and diluted EPS $ 0.95 $ (0.20) $ 6.12 $ (1.58) _________________________ (1) The accreted value of our Preferred Stock was $1,132.7 million at December 31, 2017. In connection with the IPO, the Preferred Stock was recapitalized into 39.4 million shares of common stock. These shares of common stock had a value of $709.5 million at the IPO share price of $18.00, which resulted in a net reversal of $423.2 million of convertible preferred stock accretion previously recognized. (2) Dilutive securities in our diluted EPS calculation for 2017 do not include the effects of converting the convertible preferred stock because the effect would be antidilutive. The number of common stock equivalents attributable to convertible preferred stock was 13.0 million shares as of June 30, 2017. (3) Dilutive securities in our diluted EPS calculation do not include RSUs granted under our 2014 LTIP. Vesting of these RSUs was dependent upon the satisfaction of both a service condition and a corporate liquidity event such as an initial public offering of our common stock. As of June 30, 2017, a corporate liquidity event had not occurred and the holders of these RSUs had no rights to our undistributed earnings. Therefore, they were excluded from the effect of dilutive securities. The number of common stock equivalents attributable to these RSUs was approximately 128,000 shares as of June 30, 2017. (4) Dilutive securities in our diluted EPS calculation for 2018 do not include RSUs granted under our 2018 Plan because the effect would be antidilutive. The number of common stock equivalents attributable to these RSUs was 2.8 million as of June 30, 2018.

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2018	Jun. 30, 2017
Other comprehensive income
Other comprehensive income	$ 0	$ 0	$ 0	$ 0

RESTRICTED CASH (Details)

RESTRICTED CASH (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Jan. 01, 2017	Dec. 31, 2016
Cash, restricted cash and cash equivalents
Cash and cash equivalents	$ 126.3	$ 208.1
Restricted cash included in prepaid expenses and other current assets	0	9.1	$ 8.6	$ 9.1
Total cash, cash equivalents and restricted cash shown on the condensed consolidated statements of cash flows	$ 126.3	$ 217.2	$ 147.1		$ 169.4

RESTRICTED CASH - Restatement (

RESTRICTED CASH - Restatement (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Jan. 01, 2017
Cash, restricted cash and cash equivalents
Net cash used in investing activities	$ (65.7)	$ (13.8)
Cash, cash equivalents, and restricted cash at beginning of period	217.2	169.4
Cash, cash equivalents, and restricted cash at end of period	126.3	147.1
Restricted cash	$ 0	8.6	$ 9.1	$ 9.1
As Reported
Cash, restricted cash and cash equivalents
Net cash used in investing activities		(13.3)
Cash, cash equivalents, and restricted cash at beginning of period		160.3
Cash, cash equivalents, and restricted cash at end of period		138.5
Adjustments
Cash, restricted cash and cash equivalents
Net cash used in investing activities		(0.5)
Cash, cash equivalents, and restricted cash at beginning of period		9.1
Cash, cash equivalents, and restricted cash at end of period		$ 8.6

INDEBTEDNESS AND BORROWING FA28

INDEBTEDNESS AND BORROWING FACILITY - Summary of Long-term Debt (Details) - USD ($) $ in Millions	1 Months Ended			3 Months Ended	6 Months Ended
	Jul. 31, 2018	Feb. 28, 2018	Jan. 31, 2018	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
INDEBTEDNESS
Total principal amount				$ 635	$ 635	$ 1,130
Less unamortized discount and debt issuance costs				(6.5)	(6.5)	(13.6)
Total long-term debt				628.5	628.5	1,116.4
Estimated fair value of long-term debt				641.3	641.3	1,113.8
Loss on extinguishment of debt, net				0.8	10.1
2020 Senior Floating Rate Notes
INDEBTEDNESS
Principal amount repaid		$ 290
Loss on extinguishment of debt, net		$ 8.3
Term Loan
INDEBTEDNESS
Principal amount repaid	$ 30				200
Loss on extinguishment of debt, net					1.8
2022 Senior notes
INDEBTEDNESS
Principal amount repaid			$ 5
Secured Debt | 2020 Senior Floating Rate Notes
INDEBTEDNESS
Total principal amount						290
Secured Debt | Term Loan
INDEBTEDNESS
Total principal amount				231	231	431
Secured Debt | 2022 Senior notes
INDEBTEDNESS
Total principal amount				$ 404	$ 404	$ 409

INDEBTEDNESS AND BORROWING FA29

INDEBTEDNESS AND BORROWING FACILITY - Revolving Credit Facility (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Feb. 22, 2018
Revolving credit facility
Revolving Credit Facility
Revolving credit	$ 0
Credit facility sub limit amount	50
Maximum borrowing capacity	$ 250
Minimum credit facility percentage	10.00%
Minimum maintained credit facility	$ 12.5
Fixed coverage ratio	100.00%
Maximum availability under the credit facility	$ 235.4
Maximum borrowing credit facility	$ 229.5
Revolving credit facility | Minimum
Revolving Credit Facility
Margin rate	1.75%
Percentage of commitment fee	0.25%
Revolving credit facility | Maximum
Revolving Credit Facility
Margin rate	2.00%
Percentage of commitment fee	0.375%
Revolving credit facility | LIBOR
Revolving Credit Facility
Interest borrowing on credit facility	LIBOR
Revolving credit facility | Wells Fargo, N.A
Revolving Credit Facility
Maximum borrowing capacity		$ 250
Letter of Credit
Revolving Credit Facility
Revolving credit	$ 5.9

STOCKHOLDERS' DEFICIT (Details)

STOCKHOLDERS' DEFICIT (Details) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Subsidiary, Sale of Stock
Shares sold by existing shareholder	4.3
Net proceeds from issuance of common stock | $	$ 303
Conversion ratio	69.258777
IPO
Subsidiary, Sale of Stock
Total number of shares sold	22.4
Issuance of common stock (in shares)	18.1
Share price | $ / shares	$ 18
Net proceeds from issuance of common stock | $	$ 303
Convertible preferred stock conversion ratio	155.944841
Common stock holding percentage prior to IPO	7.00%
Recapitalization of convertible preferred stock to common stock (in shares)	39.4

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - 2018 Plan $ / shares in Units, shares in Thousands, $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award
Shares authorized for grant | shares	2,800
RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Vesting percentage	25.00%
Vesting period	4 years
Stock-based compensation expense | $	$ 5
Granted | $ / shares	$ 19.89
Unrecognized compensation cost | $	$ 49.6
Weighted average period	3 years 8 months 12 days
Unvested restricted stock awards | shares	2,750

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock Unit (Details) - RSUs - 2018 Plan shares in Thousands	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Number of Units
Granted | shares	2,925
Forfeited | shares	(175)
Ending Balance | shares	2,750
Weighted-Average Grant Date Fair Value
Granted | $ / shares	$ 19.89
Forfeited | $ / shares	19.90
Ending Balance | $ / shares	$ 19.89

STOCK-BASED COMPENSATION - Addi

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jan. 31, 2018
2018 Plan | RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized compensation cost	$ 49.6
Shares available for grants	70,000
Number of options outstanding	2,750,000
Stock-based compensation expense	$ 5
2014 LTIP | Stock And Cost Settled RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation expense	$ 3.7
2014 LTIP | Stock Settled RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Number of options outstanding		111,000
2014 LTIP | Cash Settled RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Number of options outstanding		94,000

IMPAIRMENTS AND OTHER CHARGES -

IMPAIRMENTS AND OTHER CHARGES - Summary of Impairments and Other Charges (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Impairments and other charges
Lease abandonment charges		$ 0.2		$ 0.3
Total impairments and other charges	$ 4	1.2	$ 6	1.3
Inventory Firm Purchase Commitment Loss	$ 4	$ 1	$ 6	$ 1

GAIN ON INSURANCE RECOVERIES (D

GAIN ON INSURANCE RECOVERIES (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Gain on insurance recoveries
Proceeds from insurance recoveries		$ 4.2
Gain on insurance recoveries	$ 0.3	$ 2.9

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Numerator:
Net income	$ 103.6	$ 44.3	$ 182.3	$ 24.2
Convertible preferred stock accretion		(54.8)		(106.1)
Net reversal of convertible preferred stock accretion due to recapitalization of convertible preferred stock to common stock			423.2
Net income (loss) attributable to common stockholders used for basic EPS computation	103.6	(10.5)	605.5	(81.9)
Add back the effect of dilutive securities:
Net loss attributable to common stockholders used for diluted EPS computation	$ 103.6	$ (10.5)	$ 605.5	$ (81.9)
Denominator:
Weighted average shares used for basic EPS computation	109,300,000	51,800,000	98,900,000	51,800,000
Effect of dilutive securities:
Number of shares used for diluted EPS computation	109,300,000	51,800,000	98,900,000	51,800,000
Basic and diluted EPS	$ 0.95	$ (0.20)	$ 6.12	$ (1.58)
Convertible preferred stock, liquidation preference					$ 1,132.7
Recapitalization of convertible preferred stock to common stock			$ 349.8
Net reversal			423.2
IPO
Numerator:
Net reversal of convertible preferred stock accretion due to recapitalization of convertible preferred stock to common stock			$ 423.2
Effect of dilutive securities:
Recapitalization of convertible preferred stock to common stock (in shares)			39,400,000
Recapitalization of convertible preferred stock to common stock			$ 709.5
Share price	$ 18		$ 18
Net reversal			$ 423.2
RSUs
Effect of dilutive securities:
Common stock equivalents			2,800,000	128,000
Convertible preferred stock
Effect of dilutive securities:
Common stock equivalents				13,000,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Jul. 19, 2018USD ($)
Litigation
Damages awarded value	$ 100