Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document Documentand Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'KEY ENERGY SERVICES INC | ' |
Entity Central Index Key | '0000318996 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'KEG | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 153,535,485 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $23,448 | $28,306 |
Accounts receivable, net of allowance for doubtful accounts of $1,671 and $766, respectively | 300,733 | 348,966 |
Inventories | 40,563 | 32,335 |
Other current assets | 87,747 | 96,546 |
Total current assets | 452,491 | 506,153 |
Property and equipment | 2,593,631 | 2,606,738 |
Accumulated depreciation | -1,268,123 | -1,241,092 |
Property and equipment, net | 1,325,508 | 1,365,646 |
Goodwill | 601,839 | 624,875 |
Other intangible assets, net | 29,639 | 41,146 |
Deferred financing costs, net | 12,498 | 13,897 |
Other assets | 35,631 | 35,753 |
TOTAL ASSETS | 2,457,606 | 2,587,470 |
Current liabilities: | ' | ' |
Accounts payable | 65,679 | 58,826 |
Other current liabilities | 151,164 | 169,945 |
Current portion of long-term debt | 0 | 3,573 |
Total current liabilities | 216,843 | 232,344 |
Long-term debt | 718,704 | 763,981 |
Workers' compensation, vehicular and health insurance liabilities | 31,384 | 29,944 |
Deferred tax liabilities | 275,557 | 284,453 |
Other non-current liabilities | 26,452 | 25,655 |
Commitments and contingencies | ' | ' |
Equity: | ' | ' |
Common stock, $0.10 par value; 200,000,000 shares authorized, 153,584,564 and 152,331,006 shares issued and outstanding | 15,359 | 15,233 |
Additional paid-in capital | 956,849 | 953,306 |
Accumulated other comprehensive loss | -17,415 | -15,414 |
Retained earnings | 233,873 | 297,968 |
Total equity | 1,188,666 | 1,251,093 |
TOTAL LIABILITIES AND EQUITY | $2,457,606 | $2,587,470 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $1,671 | $766 |
Common stock, shares issued | 153,584,564 | 152,331,006 |
Common stock, shares outstanding | 153,584,564 | 152,331,006 |
Common stock, par value (in usd per share) | $0.10 | $0.10 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
REVENUES | $350,595 | $411,390 | $706,736 | $839,839 |
COSTS AND EXPENSES: | ' | ' | ' | ' |
Direct operating expenses | 262,883 | 287,102 | 521,185 | 586,284 |
Depreciation and amortization expense | 52,184 | 58,208 | 103,279 | 112,401 |
General and administrative expenses | 57,881 | 57,736 | 110,747 | 120,981 |
Goodwill and tradenames impairment | 28,687 | 0 | 28,687 | 0 |
Operating income (loss) | -51,040 | 8,344 | -57,162 | 20,173 |
Interest expense, net of amounts capitalized | 13,426 | 13,984 | 26,980 | 27,788 |
Other (income) loss, net | -2,733 | 430 | -2,802 | -793 |
Loss before income taxes | -61,733 | -6,070 | -81,340 | -6,822 |
Income tax benefit | 9,537 | 2,298 | 17,245 | 2,864 |
Net loss | -52,196 | -3,772 | -64,095 | -3,958 |
Income attributable to noncontrolling interest | 0 | 356 | 0 | 444 |
LOSS ATTRIBUTABLE TO KEY | ($52,196) | ($4,128) | ($64,095) | ($4,402) |
Loss per share attributable to Key: | ' | ' | ' | ' |
Basic and diluted (per share) | ($0.34) | ($0.03) | ($0.42) | ($0.03) |
Weighted average shares outstanding: | ' | ' | ' | ' |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 153,496 | 152,384 | 153,157 | 152,175 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
NET LOSS | ($52,196) | ($3,772) | ($64,095) | ($3,958) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation income (loss) | 3,264 | -3,848 | -2,001 | -5,366 |
COMPREHENSIVE LOSS | -48,932 | -7,620 | -66,096 | -9,324 |
Comprehensive (income) loss attributable to noncontrolling interest | 0 | -367 | 0 | 223 |
COMPREHENSIVE LOSS ATTRIBUTABLE TO KEY | ($48,932) | ($7,987) | ($66,096) | ($9,101) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($64,095) | ($3,958) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization expense | 103,279 | 112,401 |
Goodwill and tradenames impairment | 28,687 | 0 |
Bad debt expense | 1,151 | 901 |
Accretion of asset retirement obligations | 294 | 305 |
Loss from equity method investments | 79 | 242 |
Amortization of deferred financing costs and premium | 1,121 | 1,358 |
Deferred income tax benefit | -7,707 | -3,085 |
Capitalized interest | 0 | -292 |
Loss on disposal of assets, net | 3,452 | 848 |
Share-based compensation | 7,101 | 9,393 |
Excess tax expense from share-based compensation | 1,221 | 1,501 |
Changes in working capital: | ' | ' |
Accounts receivable | 46,970 | -30,449 |
Other current assets | -2,419 | 4,611 |
Accounts payable, accrued interest and accrued expenses | -13,781 | -40,457 |
Share-based compensation liability awards | 1,587 | 493 |
Other assets and liabilities | 328 | -7,131 |
Net cash provided by operating activities | 107,268 | 46,681 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -69,429 | -72,577 |
Proceeds from sale of fixed assets | 7,239 | 3,881 |
Proceeds from notes receivable | 2,150 | 0 |
Acquisition of the 50% noncontrolling interest in Geostream | 0 | -14,600 |
Net cash used in investing activities | -60,040 | -83,296 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Repayments of long-term debt | -3,573 | 0 |
Repayments of capital lease obligations | 0 | -379 |
Proceeds from borrowings on revolving credit facility | 115,000 | 155,000 |
Repayments on revolving credit facility | -160,000 | -135,000 |
Payment of deferred financing costs | 0 | -69 |
Repurchases of common stock | -2,211 | -3,134 |
Excess tax expense from share-based compensation | -1,221 | -1,501 |
Net cash provided by (used in) financing activities | -52,005 | 14,917 |
Effect of changes in exchange rates on cash | -81 | 484 |
Net decrease in cash and cash equivalents | -4,858 | -21,214 |
Cash and cash equivalents, beginning of period | 28,306 | 45,949 |
Cash and cash equivalents, end of period | $23,448 | $24,735 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) (Geostream) | Jun. 30, 2013 | Apr. 09, 2013 | Oct. 31, 2008 |
Geostream | ' | ' | ' |
Percentage of acquired interest | 50.00% | 50.00% | 26.00% |
GENERAL
GENERAL | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
GENERAL | ' |
GENERAL | |
Key Energy Services, Inc., and its wholly owned subsidiaries (collectively, “Key,” the “Company,” “we,” “us,” “its,” and “our”) provide a full range of well services to major oil companies, foreign national oil companies and independent oil and natural gas production companies. Our services include rig-based and coiled tubing-based well maintenance and workover services, well completion and recompletion services, fluid management services, fishing and rental services, and other ancillary oilfield services. Additionally, certain rigs are capable of specialty drilling applications. We operate in most major oil and natural gas producing regions of the continental United States and have operations in Mexico, Colombia, Ecuador, the Middle East and Russia. In addition, we have a technology development and control systems business based in Canada. | |
The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The condensed December 31, 2013 balance sheet was prepared from audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”). Certain information relating to our organization and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in this Quarterly Report on Form 10-Q. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2013 Form 10-K. | |
The unaudited condensed consolidated financial statements contained in this report include all normal and recurring material adjustments that, in the opinion of management, are necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented herein. The results of operations for the six months ended June 30, 2014 are not necessarily indicative of the results expected for the full year or any other interim period, due to fluctuations in demand for our services, timing of maintenance and other expenditures, and other factors. | |
We have evaluated events occurring after the balance sheet date included in this Quarterly Report on Form 10-Q and through the date on which the unaudited condensed consolidated financial statements were issued, for possible disclosure of a subsequent event. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES | ' |
SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES | |
The preparation of these unaudited condensed consolidated financial statements requires us to develop estimates and to make assumptions that affect our financial position, results of operations and cash flows. These estimates may also impact the nature and extent of our disclosure, if any, of our contingent liabilities. Among other things, we use estimates to (i) analyze assets for possible impairment, (ii) determine depreciable lives for our assets, (iii) assess future tax exposure and realization of deferred tax assets, (iv) determine amounts to accrue for contingencies, (v) value tangible and intangible assets, (vi) assess workers’ compensation, vehicular liability, self-insured risk accruals and other insurance reserves, (vii) provide allowances for our uncollectible accounts receivable, (viii) value our asset retirement obligations, and (ix) value our equity-based compensation. We review all significant estimates on a recurring basis and record the effect of any necessary adjustments prior to publication of our financial statements. Adjustments made with respect to the use of estimates relate to improved information not previously available. Because of the limitations inherent in this process, our actual results may differ materially from these estimates. We believe that the estimates used in the preparation of these interim financial statements are reasonable. | |
There have been no material changes or developments in our evaluation of accounting estimates and underlying assumptions or methodologies that we believe to be a “Critical Accounting Policy or Estimate” as disclosed in our 2013 Form 10-K. | |
Accounting Standards Adopted or Not Yet Adopted in this Report | |
There are no new accounting standards that have been adopted in this report. | |
ASU 2014-09. In May 2014, the FASB issued ASU 2014-09, Revenue from Contract with Customers (Topic 606). The objective of this ASU is to establish the principles to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue from contracts with customers. The core principle is to 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. ASU 2014-09 is effective for interim and annual reporting periods beginning after December 15, 2016 and must be adopted using either a full retrospective method or a modified retrospective method. We are currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements. |
ACQUISITION_OF_NONCONTROLLING_
ACQUISITION OF NONCONTROLLING INTEREST | 6 Months Ended |
Jun. 30, 2014 | |
Noncontrolling Interest [Abstract] | ' |
ACQUISITION OF NONCONTROLLING INTEREST IN GEOSTREAM | ' |
ACQUISITION OF NONCONTROLLING INTERESTS | |
Geostream. On October 31, 2008, we acquired a 26% interest in OOO Geostream Services Group (“Geostream”), a limited liability company incorporated in the Russian Federation that provides a wide range of drilling, workover and reservoir engineering services for $17.4 million. On September 1, 2009, we acquired an additional 24% interest for $16.4 million, which brought our total investment in Geostream to 50% and provided us a controlling interest with representation on Geostream's board of directors. We accounted for the second investment as a business combination achieved in stages. The results of Geostream have been included in our consolidated financial statements since the initial acquisition date, with the portion outside of our control forming a noncontrolling interest. On April 9, 2013, we completed the acquisition of the 50% noncontrolling interest in Geostream for $14.6 million. Geostream is now our wholly owned subsidiary. This acquisition of the 50% noncontrolling interest in Geostream was accounted for as an equity transaction. Therefore, our acquisition of the non-controlling interest in Geostream in the second quarter of 2013 did not result in a gain or loss. | |
AlMansoori Key Energy Services, LLC. On March 7, 2010, we entered into an agreement with AlMansoori Petroleum Services, LLC (“AlMansoori”) to form the joint venture AlMansoori Key Energy Services, LLC, a joint venture under the laws of Abu Dhabi, UAE. The purpose of the joint venture was to engage in conventional workover and drilling services, coiled tubing services, fishing and rental services, rig monitoring services, pipe handling services and fluids, waste treatment and handling services. Although AlMansoori held a 51% interest in the joint venture and we held a 49% interest, we held three of the five board of directors seats and a controlling financial interest. In addition, profits and losses of the joint venture were shared on equal terms and in equal amounts with AlMansoori. Because the joint venture did not have sufficient resources to carry on its activities without our financial support, we determined it to be a variable interest entity of which we were the primary beneficiary. We consolidated the entity in our financial statements. On August 5, 2013, we agreed to the dissolution of AlMansoori Key Energy Services, LLC and the acquisition of the underlying business for $5.1 million. The $5.1 million is expected to be paid in 2014 and is recorded in “Other current liabilities” in our consolidated balance sheet. The acquisition of the 51% noncontrolling interest in AlMansoori Key Energy Services, LLC was accounted for as an equity transaction therefore did not result in a gain or loss. |
EQUITY_EQUITY
EQUITY EQUITY | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||
EQUITY | ' | ||||||||||||||||||||||||||
EQUITY | |||||||||||||||||||||||||||
A reconciliation of the total carrying amount of our equity accounts for the six months ended June 30, 2014 is as follows: | |||||||||||||||||||||||||||
COMMON STOCKHOLDERS | |||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interest | Total | ||||||||||||||||||||||
Number of Shares | Amount at Par | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2013 | 152,331 | $ | 15,233 | $ | 953,306 | $ | (15,414 | ) | $ | 297,968 | $ | — | $ | 1,251,093 | |||||||||||||
Foreign currency translation | — | — | — | (2,001 | ) | — | — | (2,001 | ) | ||||||||||||||||||
Common stock purchases | (283 | ) | (28 | ) | (2,183 | ) | — | — | — | (2,211 | ) | ||||||||||||||||
Share-based compensation | 1,537 | 154 | 6,947 | — | — | — | 7,101 | ||||||||||||||||||||
Excess tax expense from share-based compensation | — | — | (1,221 | ) | — | — | — | (1,221 | ) | ||||||||||||||||||
Net loss | — | — | — | — | (64,095 | ) | — | (64,095 | ) | ||||||||||||||||||
BALANCE AT JUNE 30, 2014 | 153,585 | $ | 15,359 | $ | 956,849 | $ | (17,415 | ) | $ | 233,873 | $ | — | $ | 1,188,666 | |||||||||||||
A reconciliation of the total carrying amount of our equity accounts for six months ended June 30, 2013 is as follows: | |||||||||||||||||||||||||||
COMMON STOCKHOLDERS | |||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interest | Total | ||||||||||||||||||||||
Number of Shares | Amount at Par | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2012 | 151,070 | $ | 15,108 | $ | 925,132 | $ | (6,148 | ) | $ | 319,736 | $ | 33,504 | $ | 1,287,332 | |||||||||||||
Foreign currency translation | — | — | — | (4,699 | ) | — | (667 | ) | (5,366 | ) | |||||||||||||||||
Common stock purchases | (410 | ) | (42 | ) | (3,092 | ) | — | — | — | (3,134 | ) | ||||||||||||||||
Share-based compensation | 1,783 | 178 | 9,215 | — | — | — | 9,393 | ||||||||||||||||||||
Excess tax expense from share-based compensation | — | — | (1,501 | ) | — | — | — | (1,501 | ) | ||||||||||||||||||
Acquisition of the 50% noncontrolling interest in Geostream (Note 3) | — | — | 22,432 | (4,350 | ) | — | (31,196 | ) | (13,114 | ) | |||||||||||||||||
Net income (loss) | — | — | — | — | (4,402 | ) | 444 | (3,958 | ) | ||||||||||||||||||
BALANCE AT JUNE 30, 2013 | 152,443 | $ | 15,244 | $ | 952,186 | $ | (15,197 | ) | $ | 315,334 | $ | 2,085 | $ | 1,269,652 | |||||||||||||
OTHER_BALANCE_SHEET_INFORMATIO
OTHER BALANCE SHEET INFORMATION | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Supplemental Balance Sheet Disclosures [Abstract] | ' | |||||||
OTHER BALANCE SHEET INFORMATION | ' | |||||||
OTHER BALANCE SHEET INFORMATION | ||||||||
The table below presents comparative detailed information about other current assets at June 30, 2014 and December 31, 2013: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Other current assets: | ||||||||
Deferred tax assets | $ | 18,119 | $ | 11,707 | ||||
Prepaid current assets | 21,474 | 28,435 | ||||||
Reinsurance receivable | 9,447 | 9,113 | ||||||
VAT asset | 21,596 | 21,683 | ||||||
Other | 17,111 | 25,608 | ||||||
Total | $ | 87,747 | $ | 96,546 | ||||
The table below presents comparative detailed information about other non-current assets at June 30, 2014 and December 31, 2013: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Other non-current assets: | ||||||||
Deferred tax assets | $ | 22,606 | $ | 22,313 | ||||
Reinsurance receivable | 9,875 | 9,397 | ||||||
Deposits | 1,641 | 1,533 | ||||||
Equity method investments | 1,038 | 962 | ||||||
Other | 471 | 1,548 | ||||||
Total | $ | 35,631 | $ | 35,753 | ||||
The table below presents comparative detailed information about other current liabilities at June 30, 2014 and December 31, 2013: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Other current liabilities: | ||||||||
Accrued payroll, taxes and employee benefits | $ | 24,193 | $ | 34,956 | ||||
Accrued operating expenditures | 41,574 | 36,573 | ||||||
Income, sales, use and other taxes | 28,907 | 37,064 | ||||||
Self-insurance reserve | 33,043 | 32,129 | ||||||
Accrued interest | 15,241 | 15,285 | ||||||
Accrued insurance premiums | 2,327 | 8,049 | ||||||
Share-based compensation and other liabilities | 5,879 | 5,889 | ||||||
Total | $ | 151,164 | $ | 169,945 | ||||
The table below presents comparative detailed information about other non-current liabilities at June 30, 2014 and December 31, 2013: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Other non-current liabilities: | ||||||||
Asset retirement obligations | $ | 12,293 | $ | 11,999 | ||||
Environmental liabilities | 6,080 | 6,176 | ||||||
Accrued rent | 560 | 853 | ||||||
Accrued sales, use and other taxes | 5,377 | 5,552 | ||||||
Other | 2,142 | 1,075 | ||||||
Total | $ | 26,452 | $ | 25,655 | ||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the six months ended June 30, 2014 are as follows: | ||||||||||||||||||||||||||
U.S. | International | Total | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
December 31, 2013 | $ | 597,456 | $ | 27,419 | $ | 624,875 | ||||||||||||||||||||
Goodwill impairment | — | (22,437 | ) | (22,437 | ) | |||||||||||||||||||||
Impact of foreign currency translation | — | (599 | ) | (599 | ) | |||||||||||||||||||||
June 30, 2014 | $ | 597,456 | $ | 4,383 | $ | 601,839 | ||||||||||||||||||||
The components of our other intangible assets as of June 30, 2014 and December 31, 2013 are as follows: | ||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Noncompete agreements: | ||||||||||||||||||||||||||
Gross carrying value | $ | 9,332 | $ | 9,332 | ||||||||||||||||||||||
Accumulated amortization | (8,050 | ) | (7,104 | ) | ||||||||||||||||||||||
Net carrying value | 1,282 | 2,228 | ||||||||||||||||||||||||
Patents, trademarks and tradenames: | ||||||||||||||||||||||||||
Gross carrying value | 13,808 | 14,039 | ||||||||||||||||||||||||
Accumulated amortization and impairment | (6,492 | ) | (223 | ) | ||||||||||||||||||||||
Net carrying value | 7,316 | 13,816 | ||||||||||||||||||||||||
Customer relationships and contracts: | ||||||||||||||||||||||||||
Gross carrying value | 100,385 | 100,271 | ||||||||||||||||||||||||
Accumulated amortization | (82,990 | ) | (78,926 | ) | ||||||||||||||||||||||
Net carrying value | 17,395 | 21,345 | ||||||||||||||||||||||||
Developed technology: | ||||||||||||||||||||||||||
Gross carrying value | 7,583 | 7,583 | ||||||||||||||||||||||||
Accumulated amortization | (3,937 | ) | (3,826 | ) | ||||||||||||||||||||||
Net carrying value | 3,646 | 3,757 | ||||||||||||||||||||||||
Customer Backlog: | ||||||||||||||||||||||||||
Gross carrying value | 779 | 779 | ||||||||||||||||||||||||
Accumulated amortization | (779 | ) | (779 | ) | ||||||||||||||||||||||
Net carrying value | — | — | ||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||
Gross carrying value | 131,887 | 132,004 | ||||||||||||||||||||||||
Accumulated amortization and impairment | (102,248 | ) | (90,858 | ) | ||||||||||||||||||||||
Net carrying value | $ | 29,639 | $ | 41,146 | ||||||||||||||||||||||
Of our intangible assets at June 30, 2014, $7.2 million are indefinite-lived tradenames and patents which are not subject to amortization. The weighted average remaining amortization periods and expected amortization expense for the next five years for our definite lived intangible assets are as follows: | ||||||||||||||||||||||||||
Weighted | Expected Amortization Expense | |||||||||||||||||||||||||
average | ||||||||||||||||||||||||||
remaining | ||||||||||||||||||||||||||
amortization | ||||||||||||||||||||||||||
period (years) | Remainder | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
of 2014 | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Noncompete agreements | 0.3 | $ | 719 | $ | 308 | $ | 255 | $ | — | $ | — | $ | — | |||||||||||||
Trademarks | 3.9 | 20 | 40 | 40 | 40 | 17 | — | |||||||||||||||||||
Customer relationships and contracts | 5.5 | 3,964 | 5,093 | 3,469 | 2,454 | 1,120 | 820 | |||||||||||||||||||
Developed technology | 16.5 | 111 | 221 | 221 | 221 | 221 | 221 | |||||||||||||||||||
Total expected intangible asset amortization expense | $ | 4,814 | $ | 5,662 | $ | 3,985 | $ | 2,715 | $ | 1,358 | $ | 1,041 | ||||||||||||||
Certain of our goodwill and other intangible assets are denominated in Russian Rubles and, as such, the values of these assets are subject to fluctuations associated with changes in exchange rates. Amortization expense for our intangible assets was $2.6 million and $4.9 million for the three months ended June 30, 2014 and 2013, respectively, and $5.2 million and $9.7 million for the six months ended June 30, 2014 and 2013, respectively. | ||||||||||||||||||||||||||
We perform an analysis of goodwill impairment on an annual basis unless an event occurs that triggers additional interim testing. Deterioration in the capital investment climate in Russia as a result of geopolitical events occurring during the second quarter of 2014 was determined to be a triggering event. This triggering event required us to perform testing for possible goodwill impairment of our Russian business reporting unit which is included in our International reporting segment. Our analysis concluded that Russia's $22.4 million of goodwill is fully impaired, and that $6.3 million of Russia's tradename intangible assets is impaired as well. We concluded that there is no impairment to Russia's other long-lived assets. |
LONGTERM_DEBT
LONG-TERM DEBT | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
LONG-TERM DEBT | ' | |||||||
LONG-TERM DEBT | ||||||||
As of June 30, 2014 and December 31, 2013, the components of our long-term debt were as follows: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
6.75% Senior Notes due 2021 | $ | 675,000 | $ | 675,000 | ||||
8.375% Senior Notes due 2014 | — | 3,573 | ||||||
Senior Secured Credit Facility revolving loans due 2016 | 40,000 | 85,000 | ||||||
Net unamortized premium on debt | 3,704 | 3,981 | ||||||
Total debt | 718,704 | 767,554 | ||||||
Less current portion | — | (3,573 | ) | |||||
Long-term debt | $ | 718,704 | $ | 763,981 | ||||
Notes due 2014 | ||||||||
On February 25, 2014, we redeemed the $3.6 million aggregate principal amount and paid $0.1 million accrued interest of 8.375% Senior Notes due 2014 (the “2014 Notes”) pursuant to the indenture dated as of November 29, 2007 (as supplemented, the “Indenture”). The 2014 Notes were general unsecured senior obligations and were subordinate to all of our existing and future secured indebtedness. The 2014 Notes were jointly and severally guaranteed on a senior unsecured basis by certain of our existing and future domestic subsidiaries. Interest on the 2014 Notes was payable on June 1 and December 1 of each year. | ||||||||
6.75% Senior Notes due 2021 | ||||||||
We issued $475.0 million aggregate principal amount of 6.75% Senior Notes due 2021 (the “Initial 2021 Notes”) on March 4, 2011 and issued an additional $200.0 million aggregate principal amount of the 2021 Notes (the “Additional 2021 Notes” and together with the Initial 2021 Notes, the “2021 Notes”) in a private placement on March 8, 2012 under an indenture dated March 4, 2011 (the “Base Indenture”), as supplemented by a first supplemental indenture dated March 4, 2011 and amended by a further supplemental indenture dated March 8, 2012 (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”). We used the net proceeds to repay senior secured indebtedness under our revolving bank credit facility. We capitalized $4.6 million of financing costs associated with the issuance of the 2021 Notes that will be amortized over the term of the notes. | ||||||||
On March 5, 2013, we completed an offer to exchange the $200.0 million in aggregate principal amount of unregistered Additional 2021 Notes for an equal principal amount of such notes registered under the Securities Act of 1933. All of the 2021 Notes are treated as a single class under the Indenture and as of the closing of the exchange offers bear the same CUSIP and ISIN numbers. | ||||||||
The 2021 Notes are general unsecured senior obligations and are effectively subordinated to all of our existing and future secured indebtedness. The 2021 Notes are or will be jointly and severally guaranteed on a senior unsecured basis by certain of our existing and future domestic subsidiaries. Interest on the 2021 Notes is payable on March 1 and September 1 of each year. The 2021 Notes mature on March 1, 2021. | ||||||||
On or after March 1, 2016, the 2021 Notes will be subject to redemption at any time and from time to time at our option, in whole or in part, at the redemption prices below (expressed as percentages of the principal amount redeemed), plus accrued and unpaid interest to the applicable redemption date, if redeemed during the twelve-month period beginning on March 1 of the years indicated below: | ||||||||
Year | Percentage | |||||||
2016 | 103.375 | % | ||||||
2017 | 102.25 | % | ||||||
2018 | 101.125 | % | ||||||
2019 and thereafter | 100 | % | ||||||
At any time and from time to time prior to March 1, 2016, we may, at our option, redeem all or a portion of the 2021 Notes at a redemption price equal to 100% of the principal amount plus a premium with respect to the 2021 Notes plus accrued and unpaid interest to the redemption date. The premium is the excess of (i) the present value of the redemption price of 103.375% of the principal amount, plus all remaining scheduled interest payments due through March 1, 2016 discounted at the treasury rate plus 0.5% over (ii) the principal amount of the note. If we experience a change of control, subject to certain exceptions, we must give holders of the 2021 Notes the opportunity to sell to us their 2021 Notes, in whole or in part, at a purchase price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest to the date of purchase. | ||||||||
We are subject to certain negative covenants under the Indenture. The Indenture limits our ability to, among other things: | ||||||||
• | incur additional indebtedness and issue preferred equity interests; | |||||||
• | pay dividends or make other distributions or repurchase or redeem equity interests; | |||||||
• | make loans and investments; | |||||||
• | enter into sale and leaseback transactions; | |||||||
• | sell, transfer or otherwise convey assets; | |||||||
• | create liens; | |||||||
• | enter into transactions with affiliates; | |||||||
• | enter into agreements restricting subsidiaries’ ability to pay dividends; | |||||||
• | designate future subsidiaries as unrestricted subsidiaries; and | |||||||
• | consolidate, merge or sell all or substantially all of the applicable entities’ assets. | |||||||
These covenants are subject to certain exceptions and qualifications, and contain cross-default provisions relating to the covenants of our 2011 Credit Facility discussed below. Substantially all of the covenants will terminate before the 2021 Notes mature if one of two specified ratings agencies assigns the 2021 Notes an investment grade rating in the future and no events of default exist under the Indenture. As of June 30, 2014, the 2021 Notes were rated below investment grade. Any covenants that cease to apply to us as a result of achieving an investment grade rating will not be restored, even if the investment rating assigned to the 2021 Notes later falls below investment grade. We were in compliance with these covenants as of June 30, 2014. | ||||||||
Senior Secured Credit Facility | ||||||||
We are party to a $550.0 million senior secured revolving bank credit facility with JPMorgan Chase Bank, N.A., as Administrative Agent, Bank of America, N.A., as Syndication Agent, and Capital One, N.A., Wells Fargo Bank, N.A., Credit Agricole Corporate and Investment Bank and DnB NOR Bank ASA, as Co-Documentation Agent (as amended, the “2011 Credit Facility”), which is an important source of liquidity for us. The 2011 Credit Facility consists of a revolving credit facility, letter of credit sub-facility and swing line facility, all of which will mature no later than March 31, 2016. | ||||||||
The maximum amount that we may borrow under the facility may be subject to limitation due to the operation of the covenants contained in the facility. The 2011 Credit Facility allows us to request increases in the total commitments under the facility by up to $100.0 million in the aggregate in part or in full anytime during the term of the 2011 Credit Facility, with any such increases being subject to compliance with the restrictive covenants in the 2011 Credit Facility and in the Indenture governing our 2021 Senior Notes, as well as lender approval. | ||||||||
We capitalized $4.9 million of financing costs in connection with the execution of the 2011 Credit Facility and an additional $1.4 million related to a subsequent amendment that will be amortized over the term of the debt. | ||||||||
The interest rate per annum applicable to the 2011 Credit Facility is, at our option, (i) adjusted LIBOR plus the applicable margin or (ii) the higher of (x) JPMorgan’s prime rate, (y) the Federal Funds rate plus 0.5% and (z) one-month adjusted LIBOR plus 1.0%, plus in each case the applicable margin for all other loans. The applicable margin for LIBOR loans ranges from 225 to 300 basis points, and the applicable margin for all other loans ranges from 125 to 200 basis points, depending upon our consolidated total leverage ratio as defined in the 2011 Credit Facility. Unused commitment fees on the facility equal 0.5%. | ||||||||
The 2011 Credit Facility contains certain financial covenants, which, among other things, limit our annual capital expenditures, restrict our ability to repurchase shares and require us to maintain certain financial ratios. The financial ratios require that: | ||||||||
• | our ratio of consolidated funded indebtedness to total capitalization be no greater than 45%; | |||||||
• | our senior secured leverage ratio of senior secured funded debt to trailing four quarters of earnings before interest, taxes, depreciation and amortization (as calculated pursuant to the terms of the 2011 Credit Facility, “EBITDA”) be no greater than 2.00 to 1.00; | |||||||
• | we maintain a collateral coverage ratio, the ratio of the aggregate book value of the collateral to the amount of the total commitments, as of the last day of any fiscal quarter of at least 2:00 to 1:00; | |||||||
• | we maintain a consolidated interest coverage ratio of trailing four quarters EBITDA to interest expense of at least 3.00 to 1.00; and | |||||||
• | we limit our capital expenditures and investments in foreign subsidiaries to $250.0 million per fiscal year, if the consolidated total leverage ratio exceeds 3.00 to 1.00. | |||||||
In addition, the 2011 Credit Facility contains certain affirmative and negative covenants, including, without limitation, restrictions on (i) liens; (ii) debt, guarantees and other contingent obligations; (iii) mergers and consolidations; (iv) sales, transfers and other dispositions of property or assets; (v) loans, acquisitions, joint ventures and other investments (with acquisitions permitted so long as, after giving pro forma effect thereto, no default or event of default exists under the 2011 Credit Facility, the pro forma consolidated total leverage ratio does not exceed 4.00 to 1.00, we are in compliance with other financial covenants and we have at least $25.0 million of availability under the 2011 Credit Facility); (vi) dividends and other distributions to, and redemptions and repurchases from, equity holders; (vii) making investments, loans or advances; (viii) selling properties; (ix) prepaying, redeeming or repurchasing subordinated (contractually or structurally) debt; (x) engaging in transactions with affiliates; (xi) entering into hedging arrangements; (xii) entering into sale and leaseback transactions; (xiii) granting negative pledges other than to the lenders; (xiv) changes in the nature of business; (xv) amending organizational documents; and (xvi) changes in accounting policies or reporting practices; in each of the foregoing cases, with certain exceptions. | ||||||||
We were in compliance with covenants of the 2011 Credit Facility as of June 30, 2014. We may prepay the 2011 Credit Facility in whole or in part at any time without premium or penalty, subject to certain reimbursements to the lenders for breakage and redeployment costs. As of June 30, 2014, we had borrowings of $40.0 million outstanding under the revolving credit facility, $49.1 million of letters of credit outstanding with borrowing capacity of $189.3 million available considering covenant constraints under our 2011 Credit Facility. The weighted average interest rates on the outstanding borrowings under the 2011 Credit Facility were 2.88% and 2.67% for the three-month periods ended June 30, 2014 and June 30, 2013, respectively, and the weighted average interest rates on the outstanding borrowings under the 2011 Credit Facility were 2.88% and 2.68% for six months ended June 30, 2014 and June 30, 2013, respectively. | ||||||||
Letter of Credit Facility | ||||||||
On November 7, 2013, we entered into an uncommitted, unsecured $15.0 million letter of credit facility to be used solely for the issuances of performance letters of credit. As of June 30, 2014, $2.0 million of letters of credit were outstanding under the facility. |
OTHER_INCOME_NET
OTHER INCOME, NET | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
OTHER INOME, NET | ' | |||||||||||||||
OTHER (INCOME) LOSS | ||||||||||||||||
The table below presents comparative detailed information about our other income and expense, shown on the condensed consolidated statements of operations as “Other (income) loss, net” for the periods indicated: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Interest income | $ | (30 | ) | $ | (84 | ) | $ | (48 | ) | $ | (95 | ) | ||||
Foreign exchange (gain) loss | (1,377 | ) | 1,398 | (11 | ) | 473 | ||||||||||
Other, net | (1,326 | ) | (884 | ) | (2,743 | ) | (1,171 | ) | ||||||||
Total | $ | (2,733 | ) | $ | 430 | $ | (2,802 | ) | $ | (793 | ) | |||||
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
We are subject to U.S. federal income tax as well as income taxes in multiple state and foreign jurisdictions. Our effective tax rates for the three months ended June 30, 2014 and 2013 were 15.4% and 37.9%, respectively, and 21.2% and 42.0% for the six months ended June 30, 2014 and 2013, respectively. Excluding the impact of non-deductible goodwill and tradename impairment expense, our effective tax rates for the three month and six month periods ended June 30, 2014, were 28.9% and 32.8%, respectively. Our effective tax rate varies due to the mix of pre-tax profit between the U.S. and international taxing jurisdictions with varying statutory rates, the impact of permanent differences, including goodwill impairment expense, and discrete tax adjustments, such as tax expense or benefit recognized for uncertain tax positions. The variance between our effective rate and the U.S. statutory rate reflects international profits and losses subject to varying statutory rates, the impact of permanent items, mainly non-deductible expenses such as fines and penalties, and expenses subject to statutorily imposed limitations such as meals and entertainment expenses, plus the impact of state income taxes. | |
As of June 30, 2014 and December 31, 2013, we had $0.9 million of unrecognized tax benefits, net of federal tax benefit, which, if recognized, would impact our effective tax rate. We recognized a tax benefit of less than $0.1 million for each of the three-month periods ended June 30, 2014 and 2013 related to these items. We have substantially concluded all U.S. federal and state tax matters through the year ended December 31, 2009. | |
We record interest and penalties related to unrecognized tax benefits as income tax expense. We have accrued a liability of $0.1 million and $0.4 million for the payment of interest and penalties as of June 30, 2014 and December 31, 2013, respectively. We believe that it is reasonably possible that $0.4 million of our currently remaining unrecognized tax positions, each of which is individually insignificant, may be recognized in the next twelve months as a result of a lapse of statute of limitations and settlement of ongoing audits. No release of our deferred tax asset valuation allowance was made during the three or six months ended June 30, 2014 and 2013. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
Litigation | |
Various suits and claims arising in the ordinary course of business are pending against us. We conduct business throughout the continental United States and may be subject to jury verdicts or arbitrations that result in outcomes in favor of the plaintiffs. We are also exposed to various claims abroad. We continually assess our contingent liabilities, including potential litigation liabilities, as well as the adequacy of our accruals and our need for the disclosure of these items, if any. We establish a provision for a contingent liability when it is probable that a liability has been incurred and the amount is reasonably approximated. We have $0.4 million of other liabilities related to litigation that is deemed probable and reasonably estimated as of June 30, 2014. We do not believe that the disposition of any of these matters will result in an additional loss materially in excess of amounts that have been recorded. | |
Between the second quarter of 2013 and the second quarter of 2014, five lawsuits with similar allegations of violations of California's wage and hour laws were filed in California. The lawsuits allege failure to pay wages, including overtime and minimum wages, failure to pay final wages in a timely manner, failure to reimburse reasonable and necessary business expenses, failure to provide wage statements consistent with California law, and violations of the California meal and break period laws, among other claims. We intend to vigorously investigate and defend these actions; however, because these cases are in the early stages, we cannot predict the outcome of these lawsuits at this time and, accordingly, cannot estimate any possible loss or range of loss. | |
In April 2014, we became aware of an allegation involving our Mexico operations that, if true, could potentially constitute a violation of certain of our policies, including our Code of Business Conduct, the U.S. Foreign Corrupt Practices Act (“FCPA”) and other applicable laws. We conducted an initial investigation of this matter and our Board of Directors formed a special committee of independent directors to oversee the investigation of this matter as well as the investigation of previously disclosed possible violations of the FCPA involving business activities of our operations in Russia, and any other resulting matters. The special committee has retained external independent legal counsel to conduct these investigations going forward. The special committee’s investigations, which also includes a review of certain aspects of the Company’s operations in Colombia, as well as our other international locations, are ongoing. On May 30, 2014, we voluntarily disclosed the allegation involving our Mexico operations and information from the Company's initial investigation to the SEC and Department of Justice (“DOJ”). We are fully cooperating with the SEC and DOJ. At this time we are unable to predict the ultimate resolution of these matters with these agencies and, accordingly, cannot estimate any possible loss or range of loss. | |
Self-Insurance Reserves | |
We maintain reserves for workers’ compensation and vehicle liability on our balance sheet based on our judgment and estimates using an actuarial method based on claims incurred. We estimate general liability claims on a case-by-case basis. We maintain insurance policies for workers’ compensation, vehicle liability and general liability claims. These insurance policies carry self-insured retention limits or deductibles on a per occurrence basis. The retention limits or deductibles are accounted for in our accrual process for all workers’ compensation, vehicular liability and general liability claims. As of June 30, 2014 and December 31, 2013, we have recorded $64.4 million and $62.1 million, respectively, of self-insurance reserves related to workers’ compensation, vehicular liabilities and general liability claims. Partially offsetting these liabilities, we had $19.3 million and $18.5 million of insurance receivables as of June 30, 2014 and December 31, 2013, respectively. We believe that the liabilities we have recorded are appropriate based on the known facts and circumstances and do not expect further losses materially in excess of the amounts already accrued for existing claims. | |
Environmental Remediation Liabilities | |
For environmental reserve matters, including remediation efforts for current locations and those relating to previously disposed properties, we record liabilities when our remediation efforts are probable and the costs to conduct such remediation efforts can be reasonably estimated. As of June 30, 2014 and December 31, 2013, we have recorded $6.1 million and $6.2 million, respectively, for our environmental remediation liabilities. We believe that the liabilities we have recorded are appropriate based on the known facts and circumstances and do not expect further losses materially in excess of the amounts already accrued. |
EARNINGS_LOSS_PER_SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
EARNINGS (LOSS) PER SHARE | ' | |||||||||||||||
LOSS PER SHARE | ||||||||||||||||
Basic loss per share is determined by dividing net loss attributable to Key by the weighted average number of common shares actually outstanding during the period. Diluted loss per common share is based on the increased number of shares that would be outstanding assuming conversion of potentially dilutive outstanding securities using the treasury stock and “as if converted” methods. | ||||||||||||||||
The components of our loss per share are as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Basic and Diluted EPS Calculation: | ||||||||||||||||
Numerator | ||||||||||||||||
Loss attributable to Key | $ | (52,196 | ) | $ | (4,128 | ) | $ | (64,095 | ) | $ | (4,402 | ) | ||||
Denominator | ||||||||||||||||
Weighted average shares outstanding | 153,496 | 152,384 | 153,157 | 152,175 | ||||||||||||
Basic and diluted loss per share attributable to Key | $ | (0.34 | ) | $ | (0.03 | ) | $ | (0.42 | ) | $ | (0.03 | ) | ||||
Stock options, warrants and stock appreciation rights (“SARs”) are included in the computation of diluted loss per share using the treasury stock method. Restricted stock awards are legally considered issued and outstanding when granted and are included in basic weighted average shares outstanding. The diluted earnings per share calculations for the three months ended June 30, 2014 exclude the potential exercise of 1.3 million stock options and 0.3 million SARs and the six months ended June 30, 2014 exclude the potential exercise of 1.4 million stock options and 0.3 million SARs due to net loss attributable to Key in the first and second quarters of 2014. The diluted earnings per share calculations for the three and six months ended June 30, 2013 exclude the potential exercise of 1.7 million stock options and 0.3 million SARs due to net loss attributable to Key in the first and second quarters of 2013. No events occurred after June 30, 2014 that would materially affect the number of weighted average shares outstanding. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
SHARE-BASED COMPENSATION | ' | ||||||
SHARE-BASED COMPENSATION | |||||||
We recognized employee share-based compensation expense of $2.4 million and $2.2 million during the three months ended June 30, 2014 and 2013, respectively, and the related income tax expense recognized was $0.7 million and $0.9 million for the same periods. We recognized employee share-based compensation expense of $7.1 million and $8.1 million during the six months ended June 30, 2014 and 2013, respectively, and the related income tax expense recognized was $2.3 million and $3.1 million, respectively, for the same period. We did not capitalize any share-based compensation during the three and six months ended June 30, 2014 and 2013. | |||||||
The unrecognized compensation cost related to our unvested restricted stock as of June 30, 2014 is estimated to be $13.6 million and is expected to be recognized over a weighted-average period of 1.4 years. We do not have unrecognized cost related to our unvested stock options as of June 30, 2014. No phantom stock was outstanding as of June 30, 2014. | |||||||
During May 2014, we issued 197,865 shares of common stock to our outside directors under the Key Energy Services, Inc. 2014 Equity and Cash Incentive Plan that was approved by our stockholders on May 15, 2014. These shares vested immediately and we recognized $1.6 million of expense related to these awards. Additionally, during May 2013, we recognized $1.8 million of expense related to similar awards. | |||||||
On January 30, 2014, the Compensation Committee of the Board of Directors adopted the 2014 Performance Unit Plan (the “2014 PU Plan”) and granted performance units pursuant to the Performance Award Agreement (“2012 PU Award Agreement”) under the Key Energy Services, Inc. 2012 Equity and Cash Incentive Plan (the “2012 Plan”). We believe that the 2014 PU Plan and 2012 PU Award Agreement will enable us to obtain and retain employees who will contribute to our long term success by aligning the interests of our executives with the interests of our stockholders by providing compensation that is linked directly to increases in share value. | |||||||
In January 2014, we issued 0.5 million performance units to our executive officers under the 2012 Plan with such material terms as set forth in the 2012 PU Award Agreement. In February 2014, we issued 0.1 million performance units to certain other employees under the 2014 PU Plan. The performance units are measured based on two performance periods from January 1, 2014 to December 31, 2014 and from January 1, 2015 to December 31, 2015. One half of the performance units are measured based on the first performance period, and the other half are measured based on the second performance period. The number of performance units that may be earned by a participant is determined at the end of each performance period based on the relative placement of Key’s total stockholder return for that period within the peer group, as follows: | |||||||
Company Placement for the Performance Period | Percentile Ranking in | Performance Units Earned as | |||||
Peer Group | a Percentage of Target | ||||||
First | 100 | % | 200 | % | |||
Second | 91 | % | 180 | % | |||
Third | 82 | % | 160 | % | |||
Fourth | 73 | % | 140 | % | |||
Fifth | 64 | % | 120 | % | |||
Sixth | 55 | % | 100 | % | |||
Seventh | 45 | % | 75 | % | |||
Eighth | 36 | % | 50 | % | |||
Ninth | 27 | % | 25 | % | |||
Tenth | 18 | % | 0 | % | |||
Eleventh | 9 | % | 0 | % | |||
Twelfth | 0 | % | 0 | % | |||
If any performance units vest for a given performance period, the award holder will be paid a cash amount equal to the vested percentage of the performance units multiplied by the closing stock price of our common stock on the last trading day of the performance period. We account for the performance units as a liability-type award as they are settled in cash. As of June 30, 2014, the fair value of outstanding performance units was $6.0 million, and is being accreted to compensation expense over the vesting terms of the awards. As of June 30, 2014, the unrecognized compensation cost related to our unvested performance units is estimated to be $3.3 million and is expected to be recognized over a weighted-average period of 1.1 years. |
TRANSACTIONS_WITH_RELATED_PART
TRANSACTIONS WITH RELATED PARTIES | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
TRANSACTIONS WITH RELATED PARTIES | ' |
TRANSACTIONS WITH RELATED PARTIES | |
Board of Director Relationships | |
A member of our board of directors is the Executive Vice President, General Counsel and Chief Administrative Officer of Anadarko Petroleum Corporation (“Anadarko”), which is one of our customers. Sales to Anadarko were approximately $9.3 million and $7.6 million for the three-month periods ended June 30, 2014 and 2013, respectively, and $18.1 million and $14.2 million for the six months ended June 30, 2014 and 2013, respectively. Receivables outstanding from Anadarko were approximately $3.7 million and $4.9 million as of June 30, 2014 and December 31, 2013, respectively. Transactions with Anadarko for our services are made on terms consistent with other customers. |
ESTIMATED_FAIR_VALUE_OF_FINANC
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | ||||||||||||||||
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||
The following is a summary of the carrying amounts and estimated fair values of our financial instruments as of June 30, 2014 and December 31, 2013. | |||||||||||||||||
Cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities. These carrying amounts approximate fair value because of the short maturity of the instruments or because the carrying value is equal to the fair value of those instruments on the balance sheet date. | |||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Notes receivable - Argentina operations sale | $ | 10,205 | $ | 10,205 | $ | 12,355 | $ | 12,355 | |||||||||
Financial liabilities: | |||||||||||||||||
6.75% Senior Notes | $ | 675,000 | $ | 705,038 | $ | 675,000 | $ | 690,390 | |||||||||
8.375% Senior Notes | — | — | 3,573 | 3,627 | |||||||||||||
Credit Facility revolving loans | 40,000 | 40,000 | 85,000 | 85,000 | |||||||||||||
Notes receivable — Argentina operations sale. The fair value of these notes receivable are based upon the quoted market Treasury rates as of the dates indicated. The carrying values of these items approximate their fair values due to the maturity dates rapidly approaching, thus giving way to discount rates that are similar. | |||||||||||||||||
6.75% Senior Notes due 2021. The fair value of these notes are based upon the quoted market prices for those securities as of the dates indicated. The carrying value of these notes as of June 30, 2014 was $675.0 million, and the fair value was $705.0 million (104.5% of carrying value). | |||||||||||||||||
8.375% Senior Notes due 2014. At December 31, 2013 the fair value of our 2014 Notes was based upon the quoted market prices for those securities as of the dates indicated. These notes were redeemed in February 2014. | |||||||||||||||||
Credit Facility Revolving Loans. Because of their variable interest rates, the fair values of the revolving loans borrowed under our 2011 Credit Facility approximate their carrying values. The carrying and fair values of these loans as of June 30, 2014 were $40.0 million. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||||||
SEGMENT INFORMATION | |||||||||||||||||||||
Our operating segments are U.S. and International. We also have a “Functional Support” segment associated with managing each of our reportable operating segments. Our domestic rig services, fluid management services, fishing and rental services, and coiled tubing services are aggregated within our U.S. reportable segment. Our international rig services business and our Canadian technology development group are aggregated within our International reportable segment. We evaluate the performance of our operating segments based on revenue and income measures. All inter-segment sales pricing is based on current market conditions. The following is a description of the segments: | |||||||||||||||||||||
U.S. Segment | |||||||||||||||||||||
Rig-Based Services | |||||||||||||||||||||
Our rig-based services include the completion of newly drilled wells, workover and recompletion of existing oil and natural gas wells, well maintenance, and the plugging and abandonment of wells at the end of their useful lives. We also provide specialty drilling services to oil and natural gas producers with certain of our larger rigs that are capable of providing conventional and horizontal drilling services. Our rigs encompass various sizes and capabilities, allowing us to service all types of wells with depths up to 20,000 feet. Many of our rigs are outfitted with our proprietary KeyView® technology, which captures and reports well site operating data and provides safety control systems. We believe that this technology allows our customers and our crews to better monitor well site operations, improves efficiency and safety, and adds value to the services that we offer. | |||||||||||||||||||||
The completion and recompletion services provided by our rigs prepare wells for production, whether newly drilled, or recently extended through a workover operation. The completion process may involve selectively perforating the well casing to access production zones, stimulating and testing these zones, and installing tubular and downhole equipment. We typically provide a well service rig and may also provide other equipment to assist in the completion process. Completion services vary by well and our work may take a few days to several weeks to perform, depending on the nature of the completion. | |||||||||||||||||||||
The workover services that we provide are designed to enhance the production of existing wells and generally are more complex and time consuming than normal maintenance services. Workover services can include deepening or extending wellbores into new formations by drilling horizontal or lateral wellbores, sealing off depleted production zones and accessing previously bypassed production zones, converting former production wells into injection wells for enhanced recovery operations and conducting major subsurface repairs due to equipment failures. Workover services may last from a few days to several weeks, depending on the complexity of the workover. | |||||||||||||||||||||
Maintenance services provided with our rig fleet are generally required throughout the life cycle of an oil or natural gas well. Examples of these maintenance services include routine mechanical repairs to the pumps, tubing and other equipment, removing debris and formation material from wellbores, and pulling rods and other downhole equipment from wellbores to identify and resolve production problems. Maintenance services are generally less complicated than completion and workover related services and require less time to perform. | |||||||||||||||||||||
Our rig fleet is also used in the process of permanently shutting-in oil or natural gas wells that are at the end of their productive lives. These plugging and abandonment services generally require auxiliary equipment in addition to a well servicing rig. The demand for plugging and abandonment services is not significantly impacted by the demand for oil and natural gas because well operators are required by state regulations to plug wells that are no longer productive. | |||||||||||||||||||||
Fluid Management Services | |||||||||||||||||||||
We provide transportation and well-site storage services for various fluids utilized in connection with drilling, completions, workover and maintenance activities. We also provide disposal services for fluids produced subsequent to well completion. These fluids are removed from the well site and transported for disposal in saltwater disposal wells owned by us or a third party. In addition, we operate a fleet of hot oilers capable of pumping heated fluids used to clear soluble restrictions in a wellbore. Demand and pricing for these services generally correspond to demand for our well service rigs. | |||||||||||||||||||||
Coiled Tubing Services | |||||||||||||||||||||
Coiled tubing services involve the use of a continuous metal pipe spooled onto a large reel which is then deployed into oil and natural gas wells to perform various applications, such as wellbore clean-outs, nitrogen jet lifts, through-tubing fishing, and formation stimulations utilizing acid and chemical treatments. Coiled tubing is also used for a number of horizontal well applications such as milling temporary isolation plugs that separate frac zones, and various other pre- and post-hydraulic fracturing well preparation services. | |||||||||||||||||||||
Fishing and Rental Services | |||||||||||||||||||||
We offer a full line of services and rental equipment designed for use in providing both onshore and offshore drilling and workover services. Fishing services involve recovering lost or stuck equipment in the wellbore utilizing a broad array of “fishing tools.” Our rental tool inventory consists of drill pipe, tubulars, handling tools (including our patented Hydra-Walk® pipe-handling units and services), pressure-control equipment, pumps, power swivels, reversing units, foam air units, frac stack equipment used to support hydraulic fracturing operations and the associated flowback of frac fluids, proppants, oil and natural gas. We also provide well testing services. | |||||||||||||||||||||
Demand for our fishing and rental services is closely related to capital spending by oil and natural gas producers, which is generally a function of oil and natural gas prices. | |||||||||||||||||||||
International Segment | |||||||||||||||||||||
Our International segment includes operations in Mexico, Colombia, Ecuador, the Middle East and Russia. We provide rig-based services such as the maintenance, workover, recompletion of existing oil wells, completion of newly-drilled wells and plugging and abandonment of wells at the end of their useful lives in each of our international markets. In addition, we have a technology development and control systems business based in Canada. | |||||||||||||||||||||
In addition, in Mexico we provide drilling, coiled tubing, wireline, project management and consulting services. Our work in Mexico also requires us to provide third party services that vary in scope by project. | |||||||||||||||||||||
In the Middle East, we operate in the Kingdom of Bahrain and Oman. On August 5, 2013, we agreed to the dissolution of AlMansoori Key Energy Services, LLC, a joint venture formed under the laws of Abu Dhabi, UAE, and the acquisition of the underlying business for $5.1 million. See “Note 3. Acquisition of Noncontrolling Interests” for further discussion. | |||||||||||||||||||||
Our Russian operations provide drilling, workover, and reservoir engineering services. On April 9, 2013, we completed the acquisition of the 50% noncontrolling interest in Geostream, a limited liability company incorporated in the Russian Federation, for $14.6 million. We now own 100% of Geostream. See “Note 3. Acquisition of Noncontrolling Interests” for further discussion. | |||||||||||||||||||||
Our technology development and control systems business based in Canada is focused on the development of hardware and software related to oilfield service equipment controls, data acquisition and digital information flow. | |||||||||||||||||||||
Functional Support Segment | |||||||||||||||||||||
Our Functional Support segment includes unallocated overhead costs associated with administrative support for our U.S. and International reporting segments. | |||||||||||||||||||||
Financial Summary | |||||||||||||||||||||
The following tables set forth our unaudited segment information as of and for the three and six months ended June 30, 2014 and 2013 (in thousands): | |||||||||||||||||||||
As of and for the three months ended June 30, 2014 | |||||||||||||||||||||
U.S. | International | Functional | Reconciling | Total | |||||||||||||||||
Support(2) | Eliminations | ||||||||||||||||||||
Revenues from external customers | $ | 324,515 | $ | 26,080 | $ | — | $ | — | $ | 350,595 | |||||||||||
Intersegment revenues | 199 | 2,547 | 543 | (3,289 | ) | — | |||||||||||||||
Depreciation and amortization | 40,941 | 7,795 | 3,448 | — | 52,184 | ||||||||||||||||
Goodwill and tradenames impairment | — | 28,687 | — | — | 28,687 | ||||||||||||||||
Other operating expenses | 259,434 | 26,444 | 34,886 | — | 320,764 | ||||||||||||||||
Operating income (loss) | 24,140 | (36,846 | ) | (38,334 | ) | — | (51,040 | ) | |||||||||||||
Interest expense, net of amounts capitalized | (1 | ) | 26 | 13,401 | — | 13,426 | |||||||||||||||
Income (loss) before income taxes | 25,292 | (35,289 | ) | (51,736 | ) | — | (61,733 | ) | |||||||||||||
Long-lived assets(1) | 1,629,912 | 269,153 | 268,796 | (162,746 | ) | 2,005,115 | |||||||||||||||
Total assets | 2,871,428 | 436,067 | (346,182 | ) | (503,707 | ) | 2,457,606 | ||||||||||||||
Capital expenditures, excluding acquisitions | 36,346 | 1,796 | 2,762 | — | 40,904 | ||||||||||||||||
As of and for the three months ended June 30, 2013 | |||||||||||||||||||||
U.S. | International | Functional | Reconciling | Total | |||||||||||||||||
Support(2) | Eliminations | ||||||||||||||||||||
Revenues from external customers | $ | 361,698 | $ | 49,692 | $ | — | $ | — | $ | 411,390 | |||||||||||
Intersegment revenues | (139 | ) | 2,676 | 23 | (2,560 | ) | — | ||||||||||||||
Depreciation and amortization | 47,484 | 7,463 | 3,261 | — | 58,208 | ||||||||||||||||
Other operating expenses | 259,121 | 53,235 | 32,482 | — | 344,838 | ||||||||||||||||
Operating income (loss) | 55,093 | (11,006 | ) | (35,743 | ) | — | 8,344 | ||||||||||||||
Interest expense, net of amounts capitalized | — | 15 | 13,969 | — | 13,984 | ||||||||||||||||
Income (loss) before income taxes | 55,210 | (11,762 | ) | (49,518 | ) | — | (6,070 | ) | |||||||||||||
Long-lived assets(1) | 1,671,666 | 333,096 | 292,818 | (185,010 | ) | 2,112,570 | |||||||||||||||
Total assets | 2,654,754 | 556,325 | 23,035 | (501,677 | ) | 2,732,437 | |||||||||||||||
Capital expenditures, excluding acquisitions | 26,659 | 2,196 | 6,578 | — | 35,433 | ||||||||||||||||
As of and for the six months ended June 30, 2014 | |||||||||||||||||||||
U.S. | International | Functional | Reconciling | Total | |||||||||||||||||
Support(2) | Eliminations | ||||||||||||||||||||
Revenues from external customers | $ | 648,559 | $ | 58,177 | $ | — | $ | — | $ | 706,736 | |||||||||||
Intersegment revenues | 434 | 4,768 | 1,085 | (6,287 | ) | — | |||||||||||||||
Depreciation and amortization | 81,644 | 15,699 | 5,936 | — | 103,279 | ||||||||||||||||
Goodwill and tradenames impairment | — | 28,687 | — | — | 28,687 | ||||||||||||||||
Other operating expenses | 507,118 | 61,128 | 63,686 | — | 631,932 | ||||||||||||||||
Operating income (loss) | 59,797 | (47,337 | ) | (69,622 | ) | — | (57,162 | ) | |||||||||||||
Interest expense, net of amounts capitalized | (1 | ) | 28 | 26,953 | — | 26,980 | |||||||||||||||
Income (loss) before income taxes | 61,714 | (47,237 | ) | (95,817 | ) | — | (81,340 | ) | |||||||||||||
Long-lived assets(1) | 1,629,912 | 269,153 | 268,796 | (162,746 | ) | 2,005,115 | |||||||||||||||
Total assets | 2,871,428 | 436,067 | (346,182 | ) | (503,707 | ) | 2,457,606 | ||||||||||||||
Capital expenditures, excluding acquisitions | 60,306 | 3,670 | 5,453 | — | 69,429 | ||||||||||||||||
As of and for the six months ended June 30, 2013 | |||||||||||||||||||||
U.S. | International | Functional | Reconciling | Total | |||||||||||||||||
Support(2) | Eliminations | ||||||||||||||||||||
Revenues from external customers | $ | 707,770 | $ | 132,069 | $ | — | $ | — | $ | 839,839 | |||||||||||
Intersegment revenues | 8,462 | 4,195 | 147 | (12,804 | ) | — | |||||||||||||||
Depreciation and amortization | 92,274 | 13,963 | 6,164 | — | 112,401 | ||||||||||||||||
Other operating expenses | 522,128 | 117,238 | 67,899 | — | 707,265 | ||||||||||||||||
Operating income (loss) | 93,368 | 868 | (74,063 | ) | — | 20,173 | |||||||||||||||
Interest expense, net of amounts capitalized | 1 | 64 | 27,723 | — | 27,788 | ||||||||||||||||
Income (loss) before income taxes | 93,419 | 1,294 | (101,535 | ) | — | (6,822 | ) | ||||||||||||||
Long-lived assets(1) | 1,671,666 | 333,096 | 292,818 | (185,010 | ) | 2,112,570 | |||||||||||||||
Total assets | 2,654,754 | 556,325 | 23,035 | (501,677 | ) | 2,732,437 | |||||||||||||||
Capital expenditures, excluding acquisitions | 49,969 | 13,163 | 9,445 | — | 72,577 | ||||||||||||||||
-1 | Long lived assets include fixed assets, goodwill, intangibles and other assets. | ||||||||||||||||||||
-2 | Functional Support is geographically located in the United States. |
CONDENSED_CONSOLIDATING_FINANC
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Condensed Consolidating Financial Statements [Abstract] | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |||||||||||||||||||||
Our 2021 Notes are guaranteed by virtually all our domestic subsidiaries, all of which are wholly owned. The guarantees are joint and several, full, complete and unconditional. There are no restrictions on the ability of subsidiary guarantors to transfer funds to the parent company. | |||||||||||||||||||||
As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information pursuant to SEC Regulation S-X Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” | |||||||||||||||||||||
CONDENSED CONSOLIDATING UNAUDITED BALANCE SHEETS | |||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Current assets | $ | 30,170 | $ | 359,392 | $ | 62,929 | $ | — | $ | 452,491 | |||||||||||
Property and equipment, net | — | 1,211,710 | 113,798 | — | 1,325,508 | ||||||||||||||||
Goodwill | — | 597,458 | 4,381 | — | 601,839 | ||||||||||||||||
Deferred financing costs, net | 12,498 | — | — | — | 12,498 | ||||||||||||||||
Intercompany notes and accounts receivable and investment in subsidiaries | 3,323,502 | 1,435,544 | 35,271 | (4,794,317 | ) | — | |||||||||||||||
Other assets | — | 52,951 | 12,319 | — | 65,270 | ||||||||||||||||
TOTAL ASSETS | $ | 3,366,170 | $ | 3,657,055 | $ | 228,698 | $ | (4,794,317 | ) | $ | 2,457,606 | ||||||||||
Liabilities and equity: | |||||||||||||||||||||
Current liabilities | $ | 22,447 | $ | 167,332 | $ | 27,064 | $ | — | $ | 216,843 | |||||||||||
Long-term debt and capital leases, less current portion | 718,704 | — | — | — | 718,704 | ||||||||||||||||
Intercompany notes and accounts payable | 1,162,648 | 2,684,469 | 117,273 | (3,964,390 | ) | — | |||||||||||||||
Deferred tax liabilities | 272,540 | 4,643 | (1,626 | ) | — | 275,557 | |||||||||||||||
Other long-term liabilities | 1,183 | 56,393 | 260 | — | 57,836 | ||||||||||||||||
Equity | 1,188,648 | 744,218 | 85,727 | (829,927 | ) | 1,188,666 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 3,366,170 | $ | 3,657,055 | $ | 228,698 | $ | (4,794,317 | ) | $ | 2,457,606 | ||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Current assets | $ | 50,321 | $ | 398,188 | $ | 57,644 | $ | — | $ | 506,153 | |||||||||||
Property and equipment, net | — | 1,244,216 | 121,430 | — | 1,365,646 | ||||||||||||||||
Goodwill | — | 597,457 | 27,418 | — | 624,875 | ||||||||||||||||
Deferred financing costs, net | 13,897 | — | — | — | 13,897 | ||||||||||||||||
Intercompany notes and accounts receivable and investment in subsidiaries | 3,421,607 | 1,364,174 | 12,939 | (4,798,720 | ) | — | |||||||||||||||
Other assets | — | 34,278 | 42,621 | — | 76,899 | ||||||||||||||||
TOTAL ASSETS | $ | 3,485,825 | $ | 3,638,313 | $ | 262,052 | $ | (4,798,720 | ) | $ | 2,587,470 | ||||||||||
Liabilities and equity: | |||||||||||||||||||||
Current liabilities | $ | 26,097 | $ | 182,497 | $ | 23,750 | $ | — | $ | 232,344 | |||||||||||
Long-term debt and capital leases, less current portion | 763,981 | — | — | — | 763,981 | ||||||||||||||||
Intercompany notes and accounts payable | 1,162,648 | 2,667,943 | 97,050 | (3,927,641 | ) | — | |||||||||||||||
Deferred tax liabilities | 280,828 | 4,643 | (1,819 | ) | 801 | 284,453 | |||||||||||||||
Other long-term liabilities | 1,195 | 54,486 | (82 | ) | — | 55,599 | |||||||||||||||
Equity | 1,251,076 | 728,744 | 143,153 | (871,880 | ) | 1,251,093 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 3,485,825 | $ | 3,638,313 | $ | 262,052 | $ | (4,798,720 | ) | $ | 2,587,470 | ||||||||||
CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Revenues | $ | — | $ | 326,835 | $ | 30,272 | $ | (6,512 | ) | $ | 350,595 | ||||||||||
Direct operating expense | — | 245,267 | 20,632 | (3,016 | ) | 262,883 | |||||||||||||||
Depreciation and amortization expense | — | 48,702 | 3,482 | — | 52,184 | ||||||||||||||||
General and administrative expense | 242 | 55,459 | 5,623 | (3,443 | ) | 57,881 | |||||||||||||||
Goodwill and tradenames impairment | — | — | 28,687 | — | 28,687 | ||||||||||||||||
Operating loss | (242 | ) | (22,593 | ) | (28,152 | ) | (53 | ) | (51,040 | ) | |||||||||||
Interest expense, net of amounts capitalized | 13,402 | (1 | ) | 25 | — | 13,426 | |||||||||||||||
Other income, net | (618 | ) | (572 | ) | (1,564 | ) | 21 | (2,733 | ) | ||||||||||||
Loss before income taxes | (13,026 | ) | (22,020 | ) | (26,613 | ) | (74 | ) | (61,733 | ) | |||||||||||
Income tax (expense) benefit | 7,977 | 2,094 | (534 | ) | — | 9,537 | |||||||||||||||
Net loss | (5,049 | ) | (19,926 | ) | (27,147 | ) | (74 | ) | (52,196 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | — | — | — | ||||||||||||||||
LOSS ATTRIBUTABLE TO KEY | $ | (5,049 | ) | $ | (19,926 | ) | $ | (27,147 | ) | $ | (74 | ) | $ | (52,196 | ) | ||||||
CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Revenues | $ | — | $ | 389,847 | $ | 44,807 | $ | (23,264 | ) | $ | 411,390 | ||||||||||
Direct operating expense | — | 273,188 | 32,637 | (18,723 | ) | 287,102 | |||||||||||||||
Depreciation and amortization expense | — | 55,533 | 2,675 | — | 58,208 | ||||||||||||||||
General and administrative expense | 262 | 52,543 | 9,449 | (4,518 | ) | 57,736 | |||||||||||||||
Operating income (loss) | (262 | ) | 8,583 | 46 | (23 | ) | 8,344 | ||||||||||||||
Interest expense, net of amounts capitalized | 14,124 | (155 | ) | 15 | — | 13,984 | |||||||||||||||
Other (income) loss, net | (911 | ) | (77 | ) | 701 | 717 | 430 | ||||||||||||||
Income (loss) before income taxes | (13,475 | ) | 8,815 | (670 | ) | (740 | ) | (6,070 | ) | ||||||||||||
Income tax (expense) benefit | (3,631 | ) | 6,154 | (225 | ) | — | 2,298 | ||||||||||||||
Net income (loss) | (17,106 | ) | 14,969 | (895 | ) | (740 | ) | (3,772 | ) | ||||||||||||
Income attributable to noncontrolling interest | — | — | 356 | — | 356 | ||||||||||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | $ | (17,106 | ) | $ | 14,969 | $ | (1,251 | ) | $ | (740 | ) | $ | (4,128 | ) | |||||||
CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Revenues | $ | — | $ | 657,310 | $ | 63,553 | $ | (14,127 | ) | $ | 706,736 | ||||||||||
Direct operating expense | — | 481,925 | 45,684 | (6,424 | ) | 521,185 | |||||||||||||||
Depreciation and amortization expense | — | 96,465 | 6,814 | — | 103,279 | ||||||||||||||||
General and administrative expense | 478 | 105,007 | 12,957 | (7,695 | ) | 110,747 | |||||||||||||||
Goodwill and tradenames impairment | — | — | 28,687 | — | 28,687 | ||||||||||||||||
Operating loss | (478 | ) | (26,087 | ) | (30,589 | ) | (8 | ) | (57,162 | ) | |||||||||||
Interest expense, net of amounts capitalized | 26,954 | (1 | ) | 27 | — | 26,980 | |||||||||||||||
Other income, net | (1,289 | ) | (1,296 | ) | (248 | ) | 31 | (2,802 | ) | ||||||||||||
Income (loss) before income taxes | (26,143 | ) | (24,790 | ) | (30,368 | ) | (39 | ) | (81,340 | ) | |||||||||||
Income tax benefit | 10,983 | 5,843 | 419 | — | 17,245 | ||||||||||||||||
Net loss | (15,160 | ) | (18,947 | ) | (29,949 | ) | (39 | ) | (64,095 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | — | — | — | ||||||||||||||||
LOSS ATTRIBUTABLE TO KEY | $ | (15,160 | ) | $ | (18,947 | ) | $ | (29,949 | ) | $ | (39 | ) | $ | (64,095 | ) | ||||||
CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Revenues | $ | — | $ | 795,231 | $ | 88,297 | $ | (43,689 | ) | $ | 839,839 | ||||||||||
Direct operating expense | — | 559,230 | 63,120 | (36,066 | ) | 586,284 | |||||||||||||||
Depreciation and amortization expense | — | 107,590 | 4,811 | — | 112,401 | ||||||||||||||||
General and administrative expense | 516 | 110,364 | 18,301 | (8,200 | ) | 120,981 | |||||||||||||||
Operating income (loss) | (516 | ) | 18,047 | 2,065 | 577 | 20,173 | |||||||||||||||
Interest expense, net of amounts capitalized | 28,015 | (291 | ) | 64 | — | 27,788 | |||||||||||||||
Other (income) loss, net | (1,809 | ) | (1,246 | ) | 738 | 1,524 | (793 | ) | |||||||||||||
Income (loss) before income taxes | (26,722 | ) | 19,584 | 1,263 | (947 | ) | (6,822 | ) | |||||||||||||
Income tax (expense) benefit | (2,383 | ) | 5,271 | (24 | ) | — | 2,864 | ||||||||||||||
Net income (loss) | (29,105 | ) | 24,855 | 1,239 | (947 | ) | (3,958 | ) | |||||||||||||
Income attributable to noncontrolling interest | — | — | 444 | — | 444 | ||||||||||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | $ | (29,105 | ) | $ | 24,855 | $ | 795 | $ | (947 | ) | $ | (4,402 | ) | ||||||||
CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 100,170 | $ | 7,098 | $ | — | $ | 107,268 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | — | (66,280 | ) | (3,149 | ) | — | (69,429 | ) | |||||||||||||
Intercompany notes and accounts | — | (41,350 | ) | — | 41,350 | — | |||||||||||||||
Other investing activities, net | — | 9,389 | — | — | 9,389 | ||||||||||||||||
Net cash used in investing activities | — | (98,241 | ) | (3,149 | ) | 41,350 | (60,040 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Repayments of long-term debt | (3,573 | ) | — | — | — | (3,573 | ) | ||||||||||||||
Proceeds from borrowings on revolving credit facility | 115,000 | — | — | — | 115,000 | ||||||||||||||||
Repayments on revolving credit facility | (160,000 | ) | — | — | — | (160,000 | ) | ||||||||||||||
Repurchases of common stock | (2,211 | ) | — | — | — | (2,211 | ) | ||||||||||||||
Intercompany notes and accounts | 41,350 | — | — | (41,350 | ) | — | |||||||||||||||
Other financing activities, net | (1,221 | ) | — | — | — | (1,221 | ) | ||||||||||||||
Net cash used in financing activities | (10,655 | ) | — | — | (41,350 | ) | (52,005 | ) | |||||||||||||
Effect of changes in exchange rates on cash | — | — | (81 | ) | — | (81 | ) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (10,655 | ) | 1,929 | 3,868 | — | (4,858 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 23,115 | 788 | 4,403 | — | 28,306 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 12,460 | $ | 2,717 | $ | 8,271 | $ | — | $ | 23,448 | |||||||||||
CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 45,284 | $ | 1,397 | $ | — | $ | 46,681 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | — | (69,413 | ) | (3,164 | ) | — | (72,577 | ) | |||||||||||||
Acquisition of the 50% noncontrolling interest in Geostream | — | (14,600 | ) | — | — | (14,600 | ) | ||||||||||||||
Intercompany notes and accounts | — | 36,539 | — | (36,539 | ) | — | |||||||||||||||
Other investing activities, net | — | 3,881 | — | — | 3,881 | ||||||||||||||||
Net cash used in investing activities | — | (43,593 | ) | (3,164 | ) | (36,539 | ) | (83,296 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Repayment of capital lease obligations | — | (379 | ) | — | — | (379 | ) | ||||||||||||||
Proceeds from borrowings on revolving credit facility | 155,000 | — | — | — | 155,000 | ||||||||||||||||
Repayments on revolving credit facility | (135,000 | ) | — | — | — | (135,000 | ) | ||||||||||||||
Payment of deferred financing costs | (69 | ) | — | — | — | (69 | ) | ||||||||||||||
Repurchases of common stock | (3,134 | ) | — | — | — | (3,134 | ) | ||||||||||||||
Intercompany notes and accounts | (36,539 | ) | — | — | 36,539 | — | |||||||||||||||
Other financing activities, net | (1,501 | ) | — | — | — | (1,501 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | (21,243 | ) | (379 | ) | — | 36,539 | 14,917 | ||||||||||||||
Effect of changes in exchange rates on cash | — | — | 484 | — | 484 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (21,243 | ) | 1,312 | (1,283 | ) | — | (21,214 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 39,617 | 1,601 | 4,731 | — | 45,949 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 18,374 | $ | 2,913 | $ | 3,448 | $ | — | $ | 24,735 | |||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Accounting Standards Not Yet Adopted in this Report | ' |
Accounting Standards Adopted or Not Yet Adopted in this Report | |
There are no new accounting standards that have been adopted in this report. | |
ASU 2014-09. In May 2014, the FASB issued ASU 2014-09, Revenue from Contract with Customers (Topic 606). The objective of this ASU is to establish the principles to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue from contracts with customers. The core principle is to 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. ASU 2014-09 is effective for interim and annual reporting periods beginning after December 15, 2016 and must be adopted using either a full retrospective method or a modified retrospective method. We are currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements. |
EQUITY_Tables
EQUITY (Tables) | 6 Months Ended | ||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||
Schedule of Stockholders Equity | ' | ||||||||||||||||||||||||||
A reconciliation of the total carrying amount of our equity accounts for the six months ended June 30, 2014 is as follows: | |||||||||||||||||||||||||||
COMMON STOCKHOLDERS | |||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interest | Total | ||||||||||||||||||||||
Number of Shares | Amount at Par | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2013 | 152,331 | $ | 15,233 | $ | 953,306 | $ | (15,414 | ) | $ | 297,968 | $ | — | $ | 1,251,093 | |||||||||||||
Foreign currency translation | — | — | — | (2,001 | ) | — | — | (2,001 | ) | ||||||||||||||||||
Common stock purchases | (283 | ) | (28 | ) | (2,183 | ) | — | — | — | (2,211 | ) | ||||||||||||||||
Share-based compensation | 1,537 | 154 | 6,947 | — | — | — | 7,101 | ||||||||||||||||||||
Excess tax expense from share-based compensation | — | — | (1,221 | ) | — | — | — | (1,221 | ) | ||||||||||||||||||
Net loss | — | — | — | — | (64,095 | ) | — | (64,095 | ) | ||||||||||||||||||
BALANCE AT JUNE 30, 2014 | 153,585 | $ | 15,359 | $ | 956,849 | $ | (17,415 | ) | $ | 233,873 | $ | — | $ | 1,188,666 | |||||||||||||
A reconciliation of the total carrying amount of our equity accounts for six months ended June 30, 2013 is as follows: | |||||||||||||||||||||||||||
COMMON STOCKHOLDERS | |||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interest | Total | ||||||||||||||||||||||
Number of Shares | Amount at Par | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2012 | 151,070 | $ | 15,108 | $ | 925,132 | $ | (6,148 | ) | $ | 319,736 | $ | 33,504 | $ | 1,287,332 | |||||||||||||
Foreign currency translation | — | — | — | (4,699 | ) | — | (667 | ) | (5,366 | ) | |||||||||||||||||
Common stock purchases | (410 | ) | (42 | ) | (3,092 | ) | — | — | — | (3,134 | ) | ||||||||||||||||
Share-based compensation | 1,783 | 178 | 9,215 | — | — | — | 9,393 | ||||||||||||||||||||
Excess tax expense from share-based compensation | — | — | (1,501 | ) | — | — | — | (1,501 | ) | ||||||||||||||||||
Acquisition of the 50% noncontrolling interest in Geostream (Note 3) | — | — | 22,432 | (4,350 | ) | — | (31,196 | ) | (13,114 | ) | |||||||||||||||||
Net income (loss) | — | — | — | — | (4,402 | ) | 444 | (3,958 | ) | ||||||||||||||||||
BALANCE AT JUNE 30, 2013 | 152,443 | $ | 15,244 | $ | 952,186 | $ | (15,197 | ) | $ | 315,334 | $ | 2,085 | $ | 1,269,652 | |||||||||||||
OTHER_BALANCE_SHEET_INFORMATIO1
OTHER BALANCE SHEET INFORMATION (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Supplemental Balance Sheet Disclosures [Abstract] | ' | |||||||
Other Current Assets | ' | |||||||
The table below presents comparative detailed information about other current assets at June 30, 2014 and December 31, 2013: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Other current assets: | ||||||||
Deferred tax assets | $ | 18,119 | $ | 11,707 | ||||
Prepaid current assets | 21,474 | 28,435 | ||||||
Reinsurance receivable | 9,447 | 9,113 | ||||||
VAT asset | 21,596 | 21,683 | ||||||
Other | 17,111 | 25,608 | ||||||
Total | $ | 87,747 | $ | 96,546 | ||||
Other Current Liabilities | ' | |||||||
The table below presents comparative detailed information about other current liabilities at June 30, 2014 and December 31, 2013: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Other current liabilities: | ||||||||
Accrued payroll, taxes and employee benefits | $ | 24,193 | $ | 34,956 | ||||
Accrued operating expenditures | 41,574 | 36,573 | ||||||
Income, sales, use and other taxes | 28,907 | 37,064 | ||||||
Self-insurance reserve | 33,043 | 32,129 | ||||||
Accrued interest | 15,241 | 15,285 | ||||||
Accrued insurance premiums | 2,327 | 8,049 | ||||||
Share-based compensation and other liabilities | 5,879 | 5,889 | ||||||
Total | $ | 151,164 | $ | 169,945 | ||||
Other Noncurrent Assets | ' | |||||||
The table below presents comparative detailed information about other non-current assets at June 30, 2014 and December 31, 2013: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Other non-current assets: | ||||||||
Deferred tax assets | $ | 22,606 | $ | 22,313 | ||||
Reinsurance receivable | 9,875 | 9,397 | ||||||
Deposits | 1,641 | 1,533 | ||||||
Equity method investments | 1,038 | 962 | ||||||
Other | 471 | 1,548 | ||||||
Total | $ | 35,631 | $ | 35,753 | ||||
Other Noncurrent Liabilities | ' | |||||||
The table below presents comparative detailed information about other non-current liabilities at June 30, 2014 and December 31, 2013: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Other non-current liabilities: | ||||||||
Asset retirement obligations | $ | 12,293 | $ | 11,999 | ||||
Environmental liabilities | 6,080 | 6,176 | ||||||
Accrued rent | 560 | 853 | ||||||
Accrued sales, use and other taxes | 5,377 | 5,552 | ||||||
Other | 2,142 | 1,075 | ||||||
Total | $ | 26,452 | $ | 25,655 | ||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Carrying Amount of Goodwill | ' | |||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the six months ended June 30, 2014 are as follows: | ||||||||||||||||||||||||||
U.S. | International | Total | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
December 31, 2013 | $ | 597,456 | $ | 27,419 | $ | 624,875 | ||||||||||||||||||||
Goodwill impairment | — | (22,437 | ) | (22,437 | ) | |||||||||||||||||||||
Impact of foreign currency translation | — | (599 | ) | (599 | ) | |||||||||||||||||||||
June 30, 2014 | $ | 597,456 | $ | 4,383 | $ | 601,839 | ||||||||||||||||||||
Other Intangible Assets | ' | |||||||||||||||||||||||||
The components of our other intangible assets as of June 30, 2014 and December 31, 2013 are as follows: | ||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Noncompete agreements: | ||||||||||||||||||||||||||
Gross carrying value | $ | 9,332 | $ | 9,332 | ||||||||||||||||||||||
Accumulated amortization | (8,050 | ) | (7,104 | ) | ||||||||||||||||||||||
Net carrying value | 1,282 | 2,228 | ||||||||||||||||||||||||
Patents, trademarks and tradenames: | ||||||||||||||||||||||||||
Gross carrying value | 13,808 | 14,039 | ||||||||||||||||||||||||
Accumulated amortization and impairment | (6,492 | ) | (223 | ) | ||||||||||||||||||||||
Net carrying value | 7,316 | 13,816 | ||||||||||||||||||||||||
Customer relationships and contracts: | ||||||||||||||||||||||||||
Gross carrying value | 100,385 | 100,271 | ||||||||||||||||||||||||
Accumulated amortization | (82,990 | ) | (78,926 | ) | ||||||||||||||||||||||
Net carrying value | 17,395 | 21,345 | ||||||||||||||||||||||||
Developed technology: | ||||||||||||||||||||||||||
Gross carrying value | 7,583 | 7,583 | ||||||||||||||||||||||||
Accumulated amortization | (3,937 | ) | (3,826 | ) | ||||||||||||||||||||||
Net carrying value | 3,646 | 3,757 | ||||||||||||||||||||||||
Customer Backlog: | ||||||||||||||||||||||||||
Gross carrying value | 779 | 779 | ||||||||||||||||||||||||
Accumulated amortization | (779 | ) | (779 | ) | ||||||||||||||||||||||
Net carrying value | — | — | ||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||
Gross carrying value | 131,887 | 132,004 | ||||||||||||||||||||||||
Accumulated amortization and impairment | (102,248 | ) | (90,858 | ) | ||||||||||||||||||||||
Net carrying value | $ | 29,639 | $ | 41,146 | ||||||||||||||||||||||
Weighted Average Remaining Amortization Periods and Expected Amortization Expense for the Next Five Years for Intangible | ' | |||||||||||||||||||||||||
The weighted average remaining amortization periods and expected amortization expense for the next five years for our definite lived intangible assets are as follows: | ||||||||||||||||||||||||||
Weighted | Expected Amortization Expense | |||||||||||||||||||||||||
average | ||||||||||||||||||||||||||
remaining | ||||||||||||||||||||||||||
amortization | ||||||||||||||||||||||||||
period (years) | Remainder | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
of 2014 | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Noncompete agreements | 0.3 | $ | 719 | $ | 308 | $ | 255 | $ | — | $ | — | $ | — | |||||||||||||
Trademarks | 3.9 | 20 | 40 | 40 | 40 | 17 | — | |||||||||||||||||||
Customer relationships and contracts | 5.5 | 3,964 | 5,093 | 3,469 | 2,454 | 1,120 | 820 | |||||||||||||||||||
Developed technology | 16.5 | 111 | 221 | 221 | 221 | 221 | 221 | |||||||||||||||||||
Total expected intangible asset amortization expense | $ | 4,814 | $ | 5,662 | $ | 3,985 | $ | 2,715 | $ | 1,358 | $ | 1,041 | ||||||||||||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
As of June 30, 2014 and December 31, 2013, the components of our long-term debt were as follows: | ||||||||
June 30, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
6.75% Senior Notes due 2021 | $ | 675,000 | $ | 675,000 | ||||
8.375% Senior Notes due 2014 | — | 3,573 | ||||||
Senior Secured Credit Facility revolving loans due 2016 | 40,000 | 85,000 | ||||||
Net unamortized premium on debt | 3,704 | 3,981 | ||||||
Total debt | 718,704 | 767,554 | ||||||
Less current portion | — | (3,573 | ) | |||||
Long-term debt | $ | 718,704 | $ | 763,981 | ||||
Schedule of Debt | ' | |||||||
On or after March 1, 2016, the 2021 Notes will be subject to redemption at any time and from time to time at our option, in whole or in part, at the redemption prices below (expressed as percentages of the principal amount redeemed), plus accrued and unpaid interest to the applicable redemption date, if redeemed during the twelve-month period beginning on March 1 of the years indicated below: | ||||||||
Year | Percentage | |||||||
2016 | 103.375 | % | ||||||
2017 | 102.25 | % | ||||||
2018 | 101.125 | % | ||||||
2019 and thereafter | 100 | % |
OTHER_INCOME_NET_Tables
OTHER INCOME, NET (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Other Income and Expense | ' | |||||||||||||||
The table below presents comparative detailed information about our other income and expense, shown on the condensed consolidated statements of operations as “Other (income) loss, net” for the periods indicated: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Interest income | $ | (30 | ) | $ | (84 | ) | $ | (48 | ) | $ | (95 | ) | ||||
Foreign exchange (gain) loss | (1,377 | ) | 1,398 | (11 | ) | 473 | ||||||||||
Other, net | (1,326 | ) | (884 | ) | (2,743 | ) | (1,171 | ) | ||||||||
Total | $ | (2,733 | ) | $ | 430 | $ | (2,802 | ) | $ | (793 | ) | |||||
EARNINGS_LOSS_PER_SHARE_Tables
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||||||||||
The components of our loss per share are as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Basic and Diluted EPS Calculation: | ||||||||||||||||
Numerator | ||||||||||||||||
Loss attributable to Key | $ | (52,196 | ) | $ | (4,128 | ) | $ | (64,095 | ) | $ | (4,402 | ) | ||||
Denominator | ||||||||||||||||
Weighted average shares outstanding | 153,496 | 152,384 | 153,157 | 152,175 | ||||||||||||
Basic and diluted loss per share attributable to Key | $ | (0.34 | ) | $ | (0.03 | ) | $ | (0.42 | ) | $ | (0.03 | ) |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Number Of Performance Units Earned Based on Relative Placement of Total Stockholder Return for Period Within Peer Group | ' | ||||||
The number of performance units that may be earned by a participant is determined at the end of each performance period based on the relative placement of Key’s total stockholder return for that period within the peer group, as follows: | |||||||
Company Placement for the Performance Period | Percentile Ranking in | Performance Units Earned as | |||||
Peer Group | a Percentage of Target | ||||||
First | 100 | % | 200 | % | |||
Second | 91 | % | 180 | % | |||
Third | 82 | % | 160 | % | |||
Fourth | 73 | % | 140 | % | |||
Fifth | 64 | % | 120 | % | |||
Sixth | 55 | % | 100 | % | |||
Seventh | 45 | % | 75 | % | |||
Eighth | 36 | % | 50 | % | |||
Ninth | 27 | % | 25 | % | |||
Tenth | 18 | % | 0 | % | |||
Eleventh | 9 | % | 0 | % | |||
Twelfth | 0 | % | 0 | % |
ESTIMATED_FAIR_VALUE_OF_FINANC1
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Carrying Amounts and Estimated Fair Values of Financial Instruments | ' | ||||||||||||||||
The following is a summary of the carrying amounts and estimated fair values of our financial instruments as of June 30, 2014 and December 31, 2013. | |||||||||||||||||
Cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities. These carrying amounts approximate fair value because of the short maturity of the instruments or because the carrying value is equal to the fair value of those instruments on the balance sheet date. | |||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Notes receivable - Argentina operations sale | $ | 10,205 | $ | 10,205 | $ | 12,355 | $ | 12,355 | |||||||||
Financial liabilities: | |||||||||||||||||
6.75% Senior Notes | $ | 675,000 | $ | 705,038 | $ | 675,000 | $ | 690,390 | |||||||||
8.375% Senior Notes | — | — | 3,573 | 3,627 | |||||||||||||
Credit Facility revolving loans | 40,000 | 40,000 | 85,000 | 85,000 | |||||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||
The following tables set forth our unaudited segment information as of and for the three and six months ended June 30, 2014 and 2013 (in thousands): | |||||||||||||||||||||
As of and for the three months ended June 30, 2014 | |||||||||||||||||||||
U.S. | International | Functional | Reconciling | Total | |||||||||||||||||
Support(2) | Eliminations | ||||||||||||||||||||
Revenues from external customers | $ | 324,515 | $ | 26,080 | $ | — | $ | — | $ | 350,595 | |||||||||||
Intersegment revenues | 199 | 2,547 | 543 | (3,289 | ) | — | |||||||||||||||
Depreciation and amortization | 40,941 | 7,795 | 3,448 | — | 52,184 | ||||||||||||||||
Goodwill and tradenames impairment | — | 28,687 | — | — | 28,687 | ||||||||||||||||
Other operating expenses | 259,434 | 26,444 | 34,886 | — | 320,764 | ||||||||||||||||
Operating income (loss) | 24,140 | (36,846 | ) | (38,334 | ) | — | (51,040 | ) | |||||||||||||
Interest expense, net of amounts capitalized | (1 | ) | 26 | 13,401 | — | 13,426 | |||||||||||||||
Income (loss) before income taxes | 25,292 | (35,289 | ) | (51,736 | ) | — | (61,733 | ) | |||||||||||||
Long-lived assets(1) | 1,629,912 | 269,153 | 268,796 | (162,746 | ) | 2,005,115 | |||||||||||||||
Total assets | 2,871,428 | 436,067 | (346,182 | ) | (503,707 | ) | 2,457,606 | ||||||||||||||
Capital expenditures, excluding acquisitions | 36,346 | 1,796 | 2,762 | — | 40,904 | ||||||||||||||||
As of and for the three months ended June 30, 2013 | |||||||||||||||||||||
U.S. | International | Functional | Reconciling | Total | |||||||||||||||||
Support(2) | Eliminations | ||||||||||||||||||||
Revenues from external customers | $ | 361,698 | $ | 49,692 | $ | — | $ | — | $ | 411,390 | |||||||||||
Intersegment revenues | (139 | ) | 2,676 | 23 | (2,560 | ) | — | ||||||||||||||
Depreciation and amortization | 47,484 | 7,463 | 3,261 | — | 58,208 | ||||||||||||||||
Other operating expenses | 259,121 | 53,235 | 32,482 | — | 344,838 | ||||||||||||||||
Operating income (loss) | 55,093 | (11,006 | ) | (35,743 | ) | — | 8,344 | ||||||||||||||
Interest expense, net of amounts capitalized | — | 15 | 13,969 | — | 13,984 | ||||||||||||||||
Income (loss) before income taxes | 55,210 | (11,762 | ) | (49,518 | ) | — | (6,070 | ) | |||||||||||||
Long-lived assets(1) | 1,671,666 | 333,096 | 292,818 | (185,010 | ) | 2,112,570 | |||||||||||||||
Total assets | 2,654,754 | 556,325 | 23,035 | (501,677 | ) | 2,732,437 | |||||||||||||||
Capital expenditures, excluding acquisitions | 26,659 | 2,196 | 6,578 | — | 35,433 | ||||||||||||||||
As of and for the six months ended June 30, 2014 | |||||||||||||||||||||
U.S. | International | Functional | Reconciling | Total | |||||||||||||||||
Support(2) | Eliminations | ||||||||||||||||||||
Revenues from external customers | $ | 648,559 | $ | 58,177 | $ | — | $ | — | $ | 706,736 | |||||||||||
Intersegment revenues | 434 | 4,768 | 1,085 | (6,287 | ) | — | |||||||||||||||
Depreciation and amortization | 81,644 | 15,699 | 5,936 | — | 103,279 | ||||||||||||||||
Goodwill and tradenames impairment | — | 28,687 | — | — | 28,687 | ||||||||||||||||
Other operating expenses | 507,118 | 61,128 | 63,686 | — | 631,932 | ||||||||||||||||
Operating income (loss) | 59,797 | (47,337 | ) | (69,622 | ) | — | (57,162 | ) | |||||||||||||
Interest expense, net of amounts capitalized | (1 | ) | 28 | 26,953 | — | 26,980 | |||||||||||||||
Income (loss) before income taxes | 61,714 | (47,237 | ) | (95,817 | ) | — | (81,340 | ) | |||||||||||||
Long-lived assets(1) | 1,629,912 | 269,153 | 268,796 | (162,746 | ) | 2,005,115 | |||||||||||||||
Total assets | 2,871,428 | 436,067 | (346,182 | ) | (503,707 | ) | 2,457,606 | ||||||||||||||
Capital expenditures, excluding acquisitions | 60,306 | 3,670 | 5,453 | — | 69,429 | ||||||||||||||||
As of and for the six months ended June 30, 2013 | |||||||||||||||||||||
U.S. | International | Functional | Reconciling | Total | |||||||||||||||||
Support(2) | Eliminations | ||||||||||||||||||||
Revenues from external customers | $ | 707,770 | $ | 132,069 | $ | — | $ | — | $ | 839,839 | |||||||||||
Intersegment revenues | 8,462 | 4,195 | 147 | (12,804 | ) | — | |||||||||||||||
Depreciation and amortization | 92,274 | 13,963 | 6,164 | — | 112,401 | ||||||||||||||||
Other operating expenses | 522,128 | 117,238 | 67,899 | — | 707,265 | ||||||||||||||||
Operating income (loss) | 93,368 | 868 | (74,063 | ) | — | 20,173 | |||||||||||||||
Interest expense, net of amounts capitalized | 1 | 64 | 27,723 | — | 27,788 | ||||||||||||||||
Income (loss) before income taxes | 93,419 | 1,294 | (101,535 | ) | — | (6,822 | ) | ||||||||||||||
Long-lived assets(1) | 1,671,666 | 333,096 | 292,818 | (185,010 | ) | 2,112,570 | |||||||||||||||
Total assets | 2,654,754 | 556,325 | 23,035 | (501,677 | ) | 2,732,437 | |||||||||||||||
Capital expenditures, excluding acquisitions | 49,969 | 13,163 | 9,445 | — | 72,577 | ||||||||||||||||
-1 | Long lived assets include fixed assets, goodwill, intangibles and other assets. | ||||||||||||||||||||
-2 | Functional Support is geographically located in the United States |
CONDENSED_CONSOLIDATING_FINANC1
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Condensed Consolidating Financial Statements [Abstract] | ' | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING UNAUDITED BALANCE SHEETS | |||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Current assets | $ | 30,170 | $ | 359,392 | $ | 62,929 | $ | — | $ | 452,491 | |||||||||||
Property and equipment, net | — | 1,211,710 | 113,798 | — | 1,325,508 | ||||||||||||||||
Goodwill | — | 597,458 | 4,381 | — | 601,839 | ||||||||||||||||
Deferred financing costs, net | 12,498 | — | — | — | 12,498 | ||||||||||||||||
Intercompany notes and accounts receivable and investment in subsidiaries | 3,323,502 | 1,435,544 | 35,271 | (4,794,317 | ) | — | |||||||||||||||
Other assets | — | 52,951 | 12,319 | — | 65,270 | ||||||||||||||||
TOTAL ASSETS | $ | 3,366,170 | $ | 3,657,055 | $ | 228,698 | $ | (4,794,317 | ) | $ | 2,457,606 | ||||||||||
Liabilities and equity: | |||||||||||||||||||||
Current liabilities | $ | 22,447 | $ | 167,332 | $ | 27,064 | $ | — | $ | 216,843 | |||||||||||
Long-term debt and capital leases, less current portion | 718,704 | — | — | — | 718,704 | ||||||||||||||||
Intercompany notes and accounts payable | 1,162,648 | 2,684,469 | 117,273 | (3,964,390 | ) | — | |||||||||||||||
Deferred tax liabilities | 272,540 | 4,643 | (1,626 | ) | — | 275,557 | |||||||||||||||
Other long-term liabilities | 1,183 | 56,393 | 260 | — | 57,836 | ||||||||||||||||
Equity | 1,188,648 | 744,218 | 85,727 | (829,927 | ) | 1,188,666 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 3,366,170 | $ | 3,657,055 | $ | 228,698 | $ | (4,794,317 | ) | $ | 2,457,606 | ||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Current assets | $ | 50,321 | $ | 398,188 | $ | 57,644 | $ | — | $ | 506,153 | |||||||||||
Property and equipment, net | — | 1,244,216 | 121,430 | — | 1,365,646 | ||||||||||||||||
Goodwill | — | 597,457 | 27,418 | — | 624,875 | ||||||||||||||||
Deferred financing costs, net | 13,897 | — | — | — | 13,897 | ||||||||||||||||
Intercompany notes and accounts receivable and investment in subsidiaries | 3,421,607 | 1,364,174 | 12,939 | (4,798,720 | ) | — | |||||||||||||||
Other assets | — | 34,278 | 42,621 | — | 76,899 | ||||||||||||||||
TOTAL ASSETS | $ | 3,485,825 | $ | 3,638,313 | $ | 262,052 | $ | (4,798,720 | ) | $ | 2,587,470 | ||||||||||
Liabilities and equity: | |||||||||||||||||||||
Current liabilities | $ | 26,097 | $ | 182,497 | $ | 23,750 | $ | — | $ | 232,344 | |||||||||||
Long-term debt and capital leases, less current portion | 763,981 | — | — | — | 763,981 | ||||||||||||||||
Intercompany notes and accounts payable | 1,162,648 | 2,667,943 | 97,050 | (3,927,641 | ) | — | |||||||||||||||
Deferred tax liabilities | 280,828 | 4,643 | (1,819 | ) | 801 | 284,453 | |||||||||||||||
Other long-term liabilities | 1,195 | 54,486 | (82 | ) | — | 55,599 | |||||||||||||||
Equity | 1,251,076 | 728,744 | 143,153 | (871,880 | ) | 1,251,093 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 3,485,825 | $ | 3,638,313 | $ | 262,052 | $ | (4,798,720 | ) | $ | 2,587,470 | ||||||||||
Condensed Consolidating Unaudited Statements of Operations | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Revenues | $ | — | $ | 326,835 | $ | 30,272 | $ | (6,512 | ) | $ | 350,595 | ||||||||||
Direct operating expense | — | 245,267 | 20,632 | (3,016 | ) | 262,883 | |||||||||||||||
Depreciation and amortization expense | — | 48,702 | 3,482 | — | 52,184 | ||||||||||||||||
General and administrative expense | 242 | 55,459 | 5,623 | (3,443 | ) | 57,881 | |||||||||||||||
Goodwill and tradenames impairment | — | — | 28,687 | — | 28,687 | ||||||||||||||||
Operating loss | (242 | ) | (22,593 | ) | (28,152 | ) | (53 | ) | (51,040 | ) | |||||||||||
Interest expense, net of amounts capitalized | 13,402 | (1 | ) | 25 | — | 13,426 | |||||||||||||||
Other income, net | (618 | ) | (572 | ) | (1,564 | ) | 21 | (2,733 | ) | ||||||||||||
Loss before income taxes | (13,026 | ) | (22,020 | ) | (26,613 | ) | (74 | ) | (61,733 | ) | |||||||||||
Income tax (expense) benefit | 7,977 | 2,094 | (534 | ) | — | 9,537 | |||||||||||||||
Net loss | (5,049 | ) | (19,926 | ) | (27,147 | ) | (74 | ) | (52,196 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | — | — | — | ||||||||||||||||
LOSS ATTRIBUTABLE TO KEY | $ | (5,049 | ) | $ | (19,926 | ) | $ | (27,147 | ) | $ | (74 | ) | $ | (52,196 | ) | ||||||
CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Revenues | $ | — | $ | 389,847 | $ | 44,807 | $ | (23,264 | ) | $ | 411,390 | ||||||||||
Direct operating expense | — | 273,188 | 32,637 | (18,723 | ) | 287,102 | |||||||||||||||
Depreciation and amortization expense | — | 55,533 | 2,675 | — | 58,208 | ||||||||||||||||
General and administrative expense | 262 | 52,543 | 9,449 | (4,518 | ) | 57,736 | |||||||||||||||
Operating income (loss) | (262 | ) | 8,583 | 46 | (23 | ) | 8,344 | ||||||||||||||
Interest expense, net of amounts capitalized | 14,124 | (155 | ) | 15 | — | 13,984 | |||||||||||||||
Other (income) loss, net | (911 | ) | (77 | ) | 701 | 717 | 430 | ||||||||||||||
Income (loss) before income taxes | (13,475 | ) | 8,815 | (670 | ) | (740 | ) | (6,070 | ) | ||||||||||||
Income tax (expense) benefit | (3,631 | ) | 6,154 | (225 | ) | — | 2,298 | ||||||||||||||
Net income (loss) | (17,106 | ) | 14,969 | (895 | ) | (740 | ) | (3,772 | ) | ||||||||||||
Income attributable to noncontrolling interest | — | — | 356 | — | 356 | ||||||||||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | $ | (17,106 | ) | $ | 14,969 | $ | (1,251 | ) | $ | (740 | ) | $ | (4,128 | ) | |||||||
CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Revenues | $ | — | $ | 657,310 | $ | 63,553 | $ | (14,127 | ) | $ | 706,736 | ||||||||||
Direct operating expense | — | 481,925 | 45,684 | (6,424 | ) | 521,185 | |||||||||||||||
Depreciation and amortization expense | — | 96,465 | 6,814 | — | 103,279 | ||||||||||||||||
General and administrative expense | 478 | 105,007 | 12,957 | (7,695 | ) | 110,747 | |||||||||||||||
Goodwill and tradenames impairment | — | — | 28,687 | — | 28,687 | ||||||||||||||||
Operating loss | (478 | ) | (26,087 | ) | (30,589 | ) | (8 | ) | (57,162 | ) | |||||||||||
Interest expense, net of amounts capitalized | 26,954 | (1 | ) | 27 | — | 26,980 | |||||||||||||||
Other income, net | (1,289 | ) | (1,296 | ) | (248 | ) | 31 | (2,802 | ) | ||||||||||||
Income (loss) before income taxes | (26,143 | ) | (24,790 | ) | (30,368 | ) | (39 | ) | (81,340 | ) | |||||||||||
Income tax benefit | 10,983 | 5,843 | 419 | — | 17,245 | ||||||||||||||||
Net loss | (15,160 | ) | (18,947 | ) | (29,949 | ) | (39 | ) | (64,095 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | — | — | — | ||||||||||||||||
LOSS ATTRIBUTABLE TO KEY | $ | (15,160 | ) | $ | (18,947 | ) | $ | (29,949 | ) | $ | (39 | ) | $ | (64,095 | ) | ||||||
CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Revenues | $ | — | $ | 795,231 | $ | 88,297 | $ | (43,689 | ) | $ | 839,839 | ||||||||||
Direct operating expense | — | 559,230 | 63,120 | (36,066 | ) | 586,284 | |||||||||||||||
Depreciation and amortization expense | — | 107,590 | 4,811 | — | 112,401 | ||||||||||||||||
General and administrative expense | 516 | 110,364 | 18,301 | (8,200 | ) | 120,981 | |||||||||||||||
Operating income (loss) | (516 | ) | 18,047 | 2,065 | 577 | 20,173 | |||||||||||||||
Interest expense, net of amounts capitalized | 28,015 | (291 | ) | 64 | — | 27,788 | |||||||||||||||
Other (income) loss, net | (1,809 | ) | (1,246 | ) | 738 | 1,524 | (793 | ) | |||||||||||||
Income (loss) before income taxes | (26,722 | ) | 19,584 | 1,263 | (947 | ) | (6,822 | ) | |||||||||||||
Income tax (expense) benefit | (2,383 | ) | 5,271 | (24 | ) | — | 2,864 | ||||||||||||||
Net income (loss) | (29,105 | ) | 24,855 | 1,239 | (947 | ) | (3,958 | ) | |||||||||||||
Income attributable to noncontrolling interest | — | — | 444 | — | 444 | ||||||||||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | $ | (29,105 | ) | $ | 24,855 | $ | 795 | $ | (947 | ) | $ | (4,402 | ) | ||||||||
Condensed Consolidating Unaudited Statements of Cash Flows | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 100,170 | $ | 7,098 | $ | — | $ | 107,268 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | — | (66,280 | ) | (3,149 | ) | — | (69,429 | ) | |||||||||||||
Intercompany notes and accounts | — | (41,350 | ) | — | 41,350 | — | |||||||||||||||
Other investing activities, net | — | 9,389 | — | — | 9,389 | ||||||||||||||||
Net cash used in investing activities | — | (98,241 | ) | (3,149 | ) | 41,350 | (60,040 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Repayments of long-term debt | (3,573 | ) | — | — | — | (3,573 | ) | ||||||||||||||
Proceeds from borrowings on revolving credit facility | 115,000 | — | — | — | 115,000 | ||||||||||||||||
Repayments on revolving credit facility | (160,000 | ) | — | — | — | (160,000 | ) | ||||||||||||||
Repurchases of common stock | (2,211 | ) | — | — | — | (2,211 | ) | ||||||||||||||
Intercompany notes and accounts | 41,350 | — | — | (41,350 | ) | — | |||||||||||||||
Other financing activities, net | (1,221 | ) | — | — | — | (1,221 | ) | ||||||||||||||
Net cash used in financing activities | (10,655 | ) | — | — | (41,350 | ) | (52,005 | ) | |||||||||||||
Effect of changes in exchange rates on cash | — | — | (81 | ) | — | (81 | ) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (10,655 | ) | 1,929 | 3,868 | — | (4,858 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 23,115 | 788 | 4,403 | — | 28,306 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 12,460 | $ | 2,717 | $ | 8,271 | $ | — | $ | 23,448 | |||||||||||
CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Company | Subsidiaries | Subsidiaries | |||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 45,284 | $ | 1,397 | $ | — | $ | 46,681 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | — | (69,413 | ) | (3,164 | ) | — | (72,577 | ) | |||||||||||||
Acquisition of the 50% noncontrolling interest in Geostream | — | (14,600 | ) | — | — | (14,600 | ) | ||||||||||||||
Intercompany notes and accounts | — | 36,539 | — | (36,539 | ) | — | |||||||||||||||
Other investing activities, net | — | 3,881 | — | — | 3,881 | ||||||||||||||||
Net cash used in investing activities | — | (43,593 | ) | (3,164 | ) | (36,539 | ) | (83,296 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Repayment of capital lease obligations | — | (379 | ) | — | — | (379 | ) | ||||||||||||||
Proceeds from borrowings on revolving credit facility | 155,000 | — | — | — | 155,000 | ||||||||||||||||
Repayments on revolving credit facility | (135,000 | ) | — | — | — | (135,000 | ) | ||||||||||||||
Payment of deferred financing costs | (69 | ) | — | — | — | (69 | ) | ||||||||||||||
Repurchases of common stock | (3,134 | ) | — | — | — | (3,134 | ) | ||||||||||||||
Intercompany notes and accounts | (36,539 | ) | — | — | 36,539 | — | |||||||||||||||
Other financing activities, net | (1,501 | ) | — | — | — | (1,501 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | (21,243 | ) | (379 | ) | — | 36,539 | 14,917 | ||||||||||||||
Effect of changes in exchange rates on cash | — | — | 484 | — | 484 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (21,243 | ) | 1,312 | (1,283 | ) | — | (21,214 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 39,617 | 1,601 | 4,731 | — | 45,949 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 18,374 | $ | 2,913 | $ | 3,448 | $ | — | $ | 24,735 | |||||||||||
ACQUISITION_OF_NONCONTROLLING_1
ACQUISITION OF NONCONTROLLING INTEREST (Details) (USD $) | Mar. 07, 2010 | Sep. 01, 2009 | Jun. 30, 2013 | Apr. 09, 2013 | Oct. 31, 2008 | 2-May-14 | Mar. 07, 2013 | Mar. 07, 2010 | Jun. 30, 2014 | Aug. 05, 2013 |
In Millions, unless otherwise specified | person | Geostream | Geostream | Geostream | Geostream | Al Mansoori Petroleum Services Limited Liability Company [Member] | Key Energy Services Incorporation And Subsidiaries [Member] | Key Energy Services Incorporation And Subsidiaries [Member] | Al Mansoori Key Energy Services L L C [Member] | Al Mansoori Key Energy Services L L C [Member] |
person | ||||||||||
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of acquired interest | ' | ' | 50.00% | 50.00% | 26.00% | ' | ' | ' | ' | ' |
Aggregate cost of acquired interest | ' | ' | ' | $14.60 | $17.40 | ' | ' | ' | ' | ' |
Business combination, percentage of voting interests acquired | ' | 24.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Cost of Acquired Entity, Purchase Price | ' | 16.4 | ' | ' | ' | ' | ' | ' | ' | 5.1 |
Total controlling interest, percentage | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest entities, ownership interest | ' | ' | ' | ' | ' | ' | 49.00% | ' | ' | ' |
Additional percentage acquired | ' | ' | ' | ' | ' | 51.00% | ' | ' | ' | ' |
Number Of Board Of Directors Seats | 5 | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Business Acquisition, Remaining Payments | ' | ' | ' | ' | ' | ' | ' | ' | $5.10 | ' |
EQUITY_Details
EQUITY (Details) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Apr. 09, 2013 | Oct. 31, 2008 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 |
Common Stock | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Retained Earnings | Retained Earnings | Noncontrolling Interest | Noncontrolling Interest | Geostream | Geostream | Geostream | Geostream | Geostream | Geostream | |||||
Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Noncontrolling Interest | ||||||||||||||||||
Schedule of Equity Component [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of acquired interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | 26.00% | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of period (in shares) | ' | ' | 152,331,006 | ' | 152,331,000 | 151,070,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | $1,251,093 | $1,287,332 | $15,233 | $15,108 | $953,306 | $925,132 | ($15,414) | ($6,148) | $297,968 | $319,736 | $0 | $33,504 | ' | ' | ' | ' | ' | ' |
Foreign currency translation | 3,264 | -3,848 | -2,001 | -5,366 | ' | ' | ' | ' | -2,001 | -4,699 | ' | ' | 0 | -667 | ' | ' | ' | ' | ' | ' |
Common stock purchases (in shares) | ' | ' | ' | ' | -283,000 | -410,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock purchases | ' | ' | -2,211 | -3,134 | -28 | -42 | -2,183 | -3,092 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation (in shares) | ' | ' | ' | ' | 1,537,000 | 1,783,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | ' | ' | 7,101 | 9,393 | 154 | 178 | 6,947 | 9,215 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess tax expense from share-based compensation | ' | ' | -1,221 | -1,501 | ' | ' | -1,221 | -1,501 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of the 50% noncontrolling interest in Geostream (Note 3) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -13,114 | ' | ' | 22,432 | -4,350 | -31,196 |
Net income (loss) | -52,196 | -3,772 | -64,095 | -3,958 | ' | ' | ' | ' | ' | ' | -64,095 | -4,402 | 0 | 444 | ' | ' | ' | ' | ' | ' |
Balance at end of period (in shares) | 153,584,564 | ' | 153,584,564 | ' | 153,585,000 | 152,443,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at end of period | $1,188,666 | $1,269,652 | $1,188,666 | $1,269,652 | $15,359 | $15,244 | $956,849 | $952,186 | ($17,415) | ($15,197) | $233,873 | $315,334 | $0 | $2,085 | ' | ' | ' | ' | ' | ' |
OTHER_BALANCE_SHEET_INFORMATIO2
OTHER BALANCE SHEET INFORMATION - Other Current Assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other current assets: | ' | ' |
Deferred tax assets | $18,119 | $11,707 |
Prepaid current assets | 21,474 | 28,435 |
Reinsurance receivable | 9,447 | 9,113 |
VAT asset | 21,596 | 21,683 |
Other | 17,111 | 25,608 |
Total | $87,747 | $96,546 |
OTHER_BALANCE_SHEET_INFORMATIO3
OTHER BALANCE SHEET INFORMATION OTHER BALANCE SHEET INFORMATION - Other Noncurrent Assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other non-current assets: | ' | ' |
Deferred tax assets | $22,606 | $22,313 |
Reinsurance receivable | 9,875 | 9,397 |
Deposits | 1,641 | 1,533 |
Equity method investments | 1,038 | 962 |
Other | 471 | 1,548 |
Total | $35,631 | $35,753 |
OTHER_BALANCE_SHEET_INFORMATIO4
OTHER BALANCE SHEET INFORMATION - Other Current Liabilities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other current liabilities: | ' | ' |
Accrued payroll, taxes and employee benefits | $24,193 | $34,956 |
Accrued operating expenditures | 41,574 | 36,573 |
Income, sales, use and other taxes | 28,907 | 37,064 |
Self-insurance reserve | 33,043 | 32,129 |
Accrued interest | 15,241 | 15,285 |
Insurance premium financing | 2,327 | 8,049 |
Share-based compensation and other liabilities | 5,879 | 5,889 |
Total | $151,164 | $169,945 |
OTHER_BALANCE_SHEET_INFORMATIO5
OTHER BALANCE SHEET INFORMATION - Other Noncurrent Liabilities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other non-current liabilities: | ' | ' |
Asset retirement obligations | $12,293 | $11,999 |
Environmental liabilities | 6,080 | 6,176 |
Accrued rent | 560 | 853 |
Accrued sales, use and other taxes | 5,377 | 5,552 |
Other | 2,142 | 1,075 |
Total | $26,452 | $25,655 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS - Carrying Amount of Goodwill (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Roll Forward] | ' |
31-Dec-13 | $624,875 |
Goodwill impairment | -22,437 |
Impact of foreign currency translation | -599 |
30-Jun-14 | 601,839 |
U.S. | ' |
Goodwill [Roll Forward] | ' |
31-Dec-13 | 597,456 |
Goodwill impairment | 0 |
Impact of foreign currency translation | 0 |
30-Jun-14 | 597,456 |
International | ' |
Goodwill [Roll Forward] | ' |
31-Dec-13 | 27,419 |
Goodwill impairment | -22,437 |
Impact of foreign currency translation | -599 |
30-Jun-14 | $4,383 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | $131,887 | $132,004 |
Accumulated amortization | -102,248 | -90,858 |
Net carrying value | 29,639 | 41,146 |
Noncompete agreements | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 9,332 | 9,332 |
Accumulated amortization | -8,050 | -7,104 |
Net carrying value | 1,282 | 2,228 |
Patents, trademarks and tradename | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 13,808 | 14,039 |
Accumulated amortization | -6,492 | -223 |
Net carrying value | 7,316 | 13,816 |
Customer relationships and contracts | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 100,385 | 100,271 |
Accumulated amortization | -82,990 | -78,926 |
Net carrying value | 17,395 | 21,345 |
Developed technology | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 7,583 | 7,583 |
Accumulated amortization | -3,937 | -3,826 |
Net carrying value | 3,646 | 3,757 |
Customer Backlog | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 779 | 779 |
Accumulated amortization | -779 | -779 |
Net carrying value | $0 | $0 |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Weighted Average Remaining Amortization Periods and Expected Amortization Expense for Next Five Years for Intangible Assets (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Finite-Lived Intangible Assets [Line Items] | ' |
Remainder of 2014 | $4,814 |
Expected Amortization Expense-2014 | 5,662 |
Expected Amortization Expense-2015 | 3,985 |
Expected Amortization Expense-2016 | 2,715 |
Expected Amortization Expense-2017 | 1,358 |
Expected Amortization Expense-2018 | 1,041 |
Noncompete agreements | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted Average Remaining Amortization Period | '4 months |
Remainder of 2014 | 719 |
Expected Amortization Expense-2014 | 308 |
Expected Amortization Expense-2015 | 255 |
Expected Amortization Expense-2016 | 0 |
Expected Amortization Expense-2017 | 0 |
Expected Amortization Expense-2018 | 0 |
Patents, trademarks and tradename | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted Average Remaining Amortization Period | '3 years 11 months |
Remainder of 2014 | 20 |
Expected Amortization Expense-2014 | 40 |
Expected Amortization Expense-2015 | 40 |
Expected Amortization Expense-2016 | 40 |
Expected Amortization Expense-2017 | 17 |
Expected Amortization Expense-2018 | 0 |
Customer relationships and contracts | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted Average Remaining Amortization Period | '5 years 6 months |
Remainder of 2014 | 3,964 |
Expected Amortization Expense-2014 | 5,093 |
Expected Amortization Expense-2015 | 3,469 |
Expected Amortization Expense-2016 | 2,454 |
Expected Amortization Expense-2017 | 1,120 |
Expected Amortization Expense-2018 | 820 |
Developed technology | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Weighted Average Remaining Amortization Period | '16 years 6 months |
Remainder of 2014 | 111 |
Expected Amortization Expense-2014 | 221 |
Expected Amortization Expense-2015 | 221 |
Expected Amortization Expense-2016 | 221 |
Expected Amortization Expense-2017 | 221 |
Expected Amortization Expense-2018 | $221 |
GOODWILL_AND_OTHER_INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Indefinite-lived trade names | $7,200,000 | ' | $7,200,000 | ' |
Amortization of intangible assets | 2,600,000 | 4,900,000 | 5,200,000 | 9,700,000 |
Goodwill impairment | ' | ' | -22,437,000 | ' |
Impairment of Intangible Assets (Excluding Goodwill) | ' | ' | $6,300,000 | ' |
LONGTERM_DEBT_Schedule_of_Debt
LONG-TERM DEBT - Schedule of Debt (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Senior Secured Credit Facility revolving loans due 2016 | $40,000 | $85,000 |
Net unamortized premium on debt | 3,704 | 3,981 |
Total debt | 718,704 | 767,554 |
Less current portion | 0 | -3,573 |
Long-term debt | 718,704 | 763,981 |
Senior Notes 6.75 Percent Due 2021 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Notes | 675,000 | 675,000 |
Senior Notes 8.375 Percent Due 2014 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Notes | $0 | $3,573 |
LONGTERM_DEBT_875_Senior_Notes
LONG-TERM DEBT - 8.75% Senior Notes due 2014 (Details) (Senior Notes 8.375 Percent Due 2014, USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Debt Instrument [Line Items] | ' |
Debt stated percentage | 8.38% |
Senior Notes | ' |
Debt Instrument [Line Items] | ' |
Long-term debt | $3.60 |
Interest Paid | $0.10 |
Debt stated percentage | 8.38% |
Debt instrument interest rate payment date | 'Interest on the 2014 Notes was payable on JuneB 1 and DecemberB 1 of each year. |
LONGTERM_DEBT_675_Senior_Notes
LONG-TERM DEBT - 6.75% Senior Notes due 2021 (Details) (USD $) | 6 Months Ended | |||
Jun. 30, 2014 | Mar. 05, 2013 | Mar. 08, 2012 | Mar. 04, 2011 | |
Fiscal Year 2016 | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Debt redemption price percent of principal amount | 103.38% | ' | ' | ' |
Fiscal Year 2017 | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Debt redemption price percent of principal amount | 102.25% | ' | ' | ' |
Fiscal Year 2018 | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Debt redemption price percent of principal amount | 101.13% | ' | ' | ' |
Fiscal Year 2019 And Thereafter | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Debt redemption price percent of principal amount | 100.00% | ' | ' | ' |
Senior Notes 6.75 Percent Due 2021 | Prior To March 1, 2016 | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Senior notes, call feature | 'At any time and from time to time prior to March 1, 2016, we may, at our option, redeem all or a portion of the 2021 Notes at a redemption price equal to 100% of the principal amount plus a premium with respect to the 2021 Notes plus accrued and unpaid interest to the redemption date. The premium is the excess of (i) the present value of the redemption price of 103.375% of the principal amount, plus all remaining scheduled interest payments due through March 1, 2016 discounted at the treasury rate plus 0.5% over (ii) the principal amount of the note. If we experience a change of control, subject to certain exceptions, we must give holders of the 2021 Notes the opportunity to sell to us their 2021 Notes, in whole or in part, at a purchase price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest to the date of purchase. | ' | ' | ' |
Senior notes, latest call date | 1-Mar-16 | ' | ' | ' |
Debt redemption price percent of principal amount | 103.38% | ' | ' | ' |
Additional interest rate above Federal Funds rate | 0.50% | ' | ' | ' |
Debt purchase price percent of principal amount | 101.00% | ' | ' | ' |
Senior Notes | Senior Notes 6.75 Percent Due 2021 | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Senior notes, carrying value | ' | $200,000,000 | $200,000,000 | $475,000,000 |
Debt stated percentage | ' | ' | ' | 6.75% |
Capitalized finance costs | $4,600,000 | ' | ' | ' |
Debt instrument interest rate payment date | ' Interest on the 2021 Notes is payable on MarchB 1 and SeptemberB 1 of each year. | ' | ' | ' |
Senior notes, maturity date | 1-Mar-21 | ' | ' | ' |
LONGTERM_DEBT_Senior_Secured_C
LONG-TERM DEBT - Senior Secured Credit Facility (Details) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jul. 27, 2011 | |
At End Of Each Fiscal Quarter Thereafter | Amendment Of Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | 2011 Credit Facility | |
Maximum | Minimum | Foreign Subsidiaries | Foreign Subsidiaries | Acquisition Covenants | Acquisition Covenants | Revolving Credit Facility | Letter of Credit | LIBOR | LIBOR | Other Loans | Other Loans | Amendment Of Credit Facility | Amendment Of Credit Facility | |||||||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | ||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $550,000,000 |
Line of credit, expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Mar-16 | ' |
Increase in total commitments | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized finance costs | ' | 1,400,000 | 4,900,000 | ' | 4,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, interest rate basis points | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 2.25% | 2.00% | 1.25% | ' | ' |
Interest coverage ratio | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional interest rate above Federal Funds rate | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional interest rate above one-month adjusted LIBOR | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee minimum | ' | ' | 0.50% | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated funded indebtedness to total capitalization ratio | ' | ' | ' | ' | ' | ' | 0.45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage ratio | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | 4 | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument covenant annual capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Coverage ratio | 2 | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, remaining borrowing capacity | ' | ' | 189,300,000 | ' | 189,300,000 | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40,000,000 | $49,100,000 | ' | ' | ' | ' | ' | ' |
Line of credit, weighted average interest rate | ' | ' | 2.88% | 2.67% | 2.88% | 2.68% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, covenant terms | ' | ' | ' | ' | 'the amended 2011 Credit Facility contains certain affirmative and negative covenants, including, without limitation, restrictions on (i) liens; (ii) debt, guarantees and other contingent obligations; (iii) mergers and consolidations; (iv) sales, transfers and other dispositions of property or assets; (v) loans, acquisitions, joint ventures and other investments (with acquisitions permitted so long as, after giving pro forma effect thereto, no default or event of default exists under the 2011 Credit Facility, the pro forma consolidated total leverage ratio does not exceed 4.00 to 1.00, we are in compliance with other financial covenants and we have at least $25.0 million of availability under the 2011 Credit Facility); (vi) dividends and other distributions to, and redemptions and repurchases from, equityholders; (vii) making investments, loans or advances; (viii) selling properties; (ix) prepaying, redeeming or repurchasing subordinated (contractually or structurally) debt; (x) engaging in transactions with affiliates; (xi) entering into hedging arrangements; (xii) entering into sale and leaseback transactions; (xiii) granting negative pledges other than to the lenders; (xiv) changes in the nature of business; (xv) amending organizational documents; and (xvi) changes in accounting policies or reporting practices; in each of the foregoing cases, with certain exceptions. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LONGTERM_DEBT_Letter_of_Credit
LONG-TERM DEBT Letter of Credit Facility (Details) (Letter of Credit, USD $) | Jun. 30, 2014 |
Letter of Credit | ' |
Line of Credit Facility [Line Items] | ' |
Maximum borrowing capacity | $15,000,000 |
Line of credit, amount outstanding | $2,000,000 |
OTHER_INCOME_NET_Detail
OTHER INCOME, NET (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Interest income | ($30) | ($84) | ($48) | ($95) |
Foreign exchange (gain) loss | -1,377 | 1,398 | -11 | 473 |
Other, net | -1,326 | -884 | -2,743 | -1,171 |
Total | $2,733 | ($430) | $2,802 | $793 |
INCOME_TAXES_Additional_Inform
INCOME TAXES - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Effective tax rate | 15.40% | 37.90% | 21.20% | 42.00% | ' |
Effective Tax Rate Excluding Non-Deductible Impairment Expense | 28.90% | ' | 32.80% | ' | ' |
Unrecognized tax benefits, net of federal tax benefit, if recognized, would impact effective tax rate | $0.90 | ' | $0.90 | ' | $0.90 |
Tax expense related to unrecognized tax benefits | 0.1 | 0.1 | ' | ' | ' |
Accrued liability for the payment of interest and penalties | 0.1 | ' | 0.1 | ' | 0.4 |
Remaining unrecognized tax positions, that may be recognized in the next twelve months | $0.40 | ' | $0.40 | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) (USD $) | 15 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
lawsuit | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Aggregate amount of contingent litigation liabilities | $0.40 | ' |
Number of lawsuits filed | 5 | ' |
Self-insurance liabilities related to workers' compensation, vehicular liabilities, and general liability claims recorded | 64.4 | 62.1 |
Insurance receivables which partially offset self-insurance liabilities | 19.3 | 18.5 |
Environmental remediation liabilities recorded | $6.10 | $6.20 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator | ' | ' | ' | ' |
LOSS ATTRIBUTABLE TO KEY | ($52,196) | ($4,128) | ($64,095) | ($4,402) |
Denominator | ' | ' | ' | ' |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 153,496 | 152,384 | 153,157 | 152,175 |
Basic and diluted (per share) | ($0.34) | ($0.03) | ($0.42) | ($0.03) |
EARNINGS_PER_SHARE_Additional_
EARNINGS PER SHARE - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Stock Option | ' | ' | ' | ' |
Antidilutive Securiites Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 1.3 | 1.7 | 1.4 | 1.7 |
Stock Appreciation Rights (SARs) | ' | ' | ' | ' |
Antidilutive Securiites Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 0.3 | 0.3 | 0.3 | 0.3 |
SHAREBASED_COMPENSATION_Additi
SHARE-BASED COMPENSATION - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Feb. 28, 2014 | Jan. 31, 2014 | Jun. 30, 2014 | 31-May-14 | 31-May-13 |
Restricted Stock | Phantom Stock [Member] | Performance Based Units | Performance Based Units | Performance Based Units | Outside directors | Outside directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense recognized | $2.40 | $2.20 | $7.10 | $8.10 | ' | ' | ' | ' | ' | $1.60 | $1.80 |
Income tax benefit recognized related to share-based awards | 0.7 | 0.9 | 2.3 | 3.1 | ' | ' | ' | ' | ' | ' | ' |
Compensation expense expected to be recognized | ' | ' | ' | ' | 13.6 | ' | ' | ' | 3.3 | ' | ' |
Compensation expense expected to be recognized, weighted average remaining vesting period | ' | ' | ' | ' | '1 year 5 months | ' | ' | ' | '1 year 1 month | ' | ' |
Shares outstanding (shares) | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Shares of common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 197,865 | ' |
Performance units issued | ' | ' | ' | ' | ' | ' | 100,000 | 500,000 | ' | ' | ' |
Award requisite service period | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of outstanding performance units issued | $6 | ' | $6 | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_Number
SHARE-BASED COMPENSATION - Number of Performance Units Earned Based on Relative Placement of Total Stockholder Return for Period Within Peer Group (Details) | 6 Months Ended |
Jun. 30, 2014 | |
First | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentile Ranking in Peer Group | 100.00% |
Performance Units Earned as a Percentage of Target | 200.00% |
Second | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentile Ranking in Peer Group | 91.00% |
Performance Units Earned as a Percentage of Target | 180.00% |
Third | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentile Ranking in Peer Group | 82.00% |
Performance Units Earned as a Percentage of Target | 160.00% |
Fourth | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentile Ranking in Peer Group | 73.00% |
Performance Units Earned as a Percentage of Target | 140.00% |
Fifth | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentile Ranking in Peer Group | 64.00% |
Performance Units Earned as a Percentage of Target | 120.00% |
Sixth | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentile Ranking in Peer Group | 55.00% |
Performance Units Earned as a Percentage of Target | 100.00% |
Seventh | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentile Ranking in Peer Group | 45.00% |
Performance Units Earned as a Percentage of Target | 75.00% |
Eighth | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentile Ranking in Peer Group | 36.00% |
Performance Units Earned as a Percentage of Target | 50.00% |
Ninth | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentile Ranking in Peer Group | 27.00% |
Performance Units Earned as a Percentage of Target | 25.00% |
Tenth | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentile Ranking in Peer Group | 18.00% |
Performance Units Earned as a Percentage of Target | 0.00% |
Eleventh | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentile Ranking in Peer Group | 9.00% |
Performance Units Earned as a Percentage of Target | 0.00% |
Twelfth | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Percentile Ranking in Peer Group | 0.00% |
Performance Units Earned as a Percentage of Target | 0.00% |
TRANSACTIONS_WITH_RELATED_PART1
TRANSACTIONS WITH RELATED PARTIES - Additional Information (Details) (Outside directors, Anadarko, USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Outside directors | Anadarko | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Transactions with related party, revenue | $9.30 | $7.60 | $18.10 | $14.20 | ' |
Transactions with related party, receivables | $3.70 | ' | $3.70 | ' | $4.90 |
ESTIMATED_FAIR_VALUE_OF_FINANC2
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Financial liabilities: | ' | ' |
Credit Facility revolving loans, carrying value | $40,000,000 | $85,000,000 |
Financial liabilities: | ' | ' |
Credit Facility revolving loans, fair value | 40,000,000 | 85,000,000 |
Senior Notes 6.75% Issued March 24 2011 | ' | ' |
Financial liabilities: | ' | ' |
Senior notes, carrying value | 675,000,000 | 675,000,000 |
Financial liabilities: | ' | ' |
Senior Notes, fair value | 705,038,000 | 690,390,000 |
Senior Notes 8.375 Percent Due 2014 | ' | ' |
Financial liabilities: | ' | ' |
Senior notes, carrying value | 0 | 3,573,000 |
Financial liabilities: | ' | ' |
Senior Notes, fair value | 0 | 3,627,000 |
Argentina Operations | ' | ' |
Financial assets: | ' | ' |
Notes and accounts receivable - related parties, carrying amount | 10,205,000 | 12,355,000 |
Financial assets: | ' | ' |
Notes and accounts receivable - related parties, fair value | $10,205,000 | $12,355,000 |
ESTIMATED_FAIR_VALUE_OF_FINANC3
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS - Additional Information (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Credit Facility revolving loans | $40,000,000 | $85,000,000 |
Senior Notes 6.75% Issued March 24 2011 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt stated percentage | 6.75% | ' |
Senior notes, carrying value | 675,000,000 | 675,000,000 |
Senior Notes, fair value | 705,038,000 | 690,390,000 |
Percentage of Senior Notes fair value over carrying value | 104.50% | ' |
Senior Notes 8.375 Percent Due 2014 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Debt stated percentage | 8.38% | ' |
Senior notes, carrying value | 0 | 3,573,000 |
Senior Notes, fair value | $0 | $3,627,000 |
SEGMENT_INFORMATION_Additional
SEGMENT INFORMATION - Additional Information (Details) (USD $) | 6 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 09, 2013 | Sep. 01, 2009 | Oct. 31, 2008 | Jun. 30, 2014 | Apr. 09, 2013 | Aug. 05, 2013 |
ft | Geostream | Geostream | Geostream | Geostream | Geostream | Geostream | Al Mansoori Key Energy Services L L C [Member] | |
International | International | |||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of acquired interest | ' | 50.00% | 50.00% | ' | 26.00% | ' | 50.00% | ' |
Aggregate cost of acquired interest | ' | ' | $14.60 | ' | $17.40 | ' | $14.60 | ' |
Cumulative percentage ownership after all transactions | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Description of rigs used | 'Our rigs encompass various sizes and capabilities, allowing us to service all types of wells with depths up to 20,000 feet. | ' | ' | ' | ' | ' | ' | ' |
Maximum depth of wells that can be serviced (in feet) | 20,000 | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Cost of Acquired Entity, Purchase Price | ' | ' | ' | $16.40 | ' | ' | ' | $5.10 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues from external customers | $350,595 | $411,390 | $706,736 | $839,839 | ' | ||||
Intersegment revenues | 0 | 0 | 0 | 0 | ' | ||||
Depreciation and amortization | 52,184 | 58,208 | 103,279 | 112,401 | ' | ||||
Goodwill and tradenames impairment | 28,687 | 0 | 28,687 | 0 | ' | ||||
Other operating expenses | 320,764 | 344,838 | 631,932 | 707,265 | ' | ||||
Operating income (loss) | -51,040 | 8,344 | -57,162 | 20,173 | ' | ||||
Interest expense, net of amounts capitalized | 13,426 | 13,984 | 26,980 | 27,788 | ' | ||||
Income (loss) before income taxes | -61,733 | -6,070 | -81,340 | -6,822 | ' | ||||
Long-lived assets | 2,005,115 | [1] | 2,112,570 | [1] | 2,005,115 | [1] | 2,112,570 | [1] | ' |
Total assets | 2,457,606 | 2,732,437 | 2,457,606 | 2,732,437 | 2,587,470 | ||||
Capital expenditures, excluding acquisitions | 40,904 | 35,433 | 69,429 | 72,577 | ' | ||||
U.S. | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues from external customers | 324,515 | 361,698 | 648,559 | 707,770 | ' | ||||
Intersegment revenues | 199 | -139 | 434 | 8,462 | ' | ||||
Depreciation and amortization | 40,941 | 47,484 | 81,644 | 92,274 | ' | ||||
Goodwill and tradenames impairment | 0 | ' | 0 | ' | ' | ||||
Other operating expenses | 259,434 | 259,121 | 507,118 | 522,128 | ' | ||||
Operating income (loss) | 24,140 | 55,093 | 59,797 | 93,368 | ' | ||||
Interest expense, net of amounts capitalized | -1 | 0 | -1 | 1 | ' | ||||
Income (loss) before income taxes | 25,292 | 55,210 | 61,714 | 93,419 | ' | ||||
Long-lived assets | 1,629,912 | [1] | 1,671,666 | [1] | 1,629,912 | [1] | 1,671,666 | [1] | ' |
Total assets | 2,871,428 | 2,654,754 | 2,871,428 | 2,654,754 | ' | ||||
Capital expenditures, excluding acquisitions | 36,346 | 26,659 | 60,306 | 49,969 | ' | ||||
International | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues from external customers | 26,080 | 49,692 | 58,177 | 132,069 | ' | ||||
Intersegment revenues | 2,547 | 2,676 | 4,768 | 4,195 | ' | ||||
Depreciation and amortization | 7,795 | 7,463 | 15,699 | 13,963 | ' | ||||
Goodwill and tradenames impairment | 28,687 | ' | 28,687 | ' | ' | ||||
Other operating expenses | 26,444 | 53,235 | 61,128 | 117,238 | ' | ||||
Operating income (loss) | -36,846 | -11,006 | -47,337 | 868 | ' | ||||
Interest expense, net of amounts capitalized | 26 | 15 | 28 | 64 | ' | ||||
Income (loss) before income taxes | -35,289 | -11,762 | -47,237 | 1,294 | ' | ||||
Long-lived assets | 269,153 | [1] | 333,096 | [1] | 269,153 | [1] | 333,096 | [1] | ' |
Total assets | 436,067 | 556,325 | 436,067 | 556,325 | ' | ||||
Capital expenditures, excluding acquisitions | 1,796 | 2,196 | 3,670 | 13,163 | ' | ||||
Functional Support | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues from external customers | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | ' |
Intersegment revenues | 543 | [2] | 23 | [2] | 1,085 | [2] | 147 | [2] | ' |
Depreciation and amortization | 3,448 | [2] | 3,261 | [2] | 5,936 | [2] | 6,164 | [2] | ' |
Goodwill and tradenames impairment | 0 | [2] | ' | 0 | [2] | ' | ' | ||
Other operating expenses | 34,886 | [2] | 32,482 | [2] | 63,686 | [2] | 67,899 | [2] | ' |
Operating income (loss) | -38,334 | [2] | -35,743 | [2] | -69,622 | [2] | -74,063 | [2] | ' |
Interest expense, net of amounts capitalized | 13,401 | [2] | 13,969 | [2] | 26,953 | [2] | 27,723 | [2] | ' |
Income (loss) before income taxes | -51,736 | [2] | -49,518 | [2] | -95,817 | [2] | -101,535 | [2] | ' |
Long-lived assets | 268,796 | [1],[2] | 292,818 | [1],[2] | 268,796 | [1],[2] | 292,818 | [1],[2] | ' |
Total assets | -346,182 | [2] | 23,035 | [2] | -346,182 | [2] | 23,035 | [2] | ' |
Capital expenditures, excluding acquisitions | 2,762 | [2] | 6,578 | [2] | 5,453 | [2] | 9,445 | [2] | ' |
Reconciling Eliminations | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues from external customers | 0 | 0 | 0 | 0 | ' | ||||
Intersegment revenues | -3,289 | -2,560 | -6,287 | -12,804 | ' | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ' | ||||
Goodwill and tradenames impairment | 0 | ' | 0 | ' | ' | ||||
Other operating expenses | 0 | 0 | 0 | 0 | ' | ||||
Operating income (loss) | 0 | 0 | 0 | 0 | ' | ||||
Interest expense, net of amounts capitalized | 0 | 0 | 0 | 0 | ' | ||||
Income (loss) before income taxes | 0 | 0 | 0 | 0 | ' | ||||
Long-lived assets | -162,746 | [1] | -185,010 | [1] | -162,746 | [1] | -185,010 | [1] | ' |
Total assets | -503,707 | -501,677 | -503,707 | -501,677 | ' | ||||
Capital expenditures, excluding acquisitions | $0 | $0 | $0 | $0 | ' | ||||
[1] | Long lived assets include fixed assets, goodwill, intangibles and other assets | ||||||||
[2] | Functional Support is geographically located in the United States. |
CONDENSED_CONSOLIDATING_FINANC2
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Balance Sheets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ' | ' |
Current assets | $452,491 | $506,153 | ' | ' |
Property and equipment, net | 1,325,508 | 1,365,646 | ' | ' |
Goodwill | 601,839 | 624,875 | ' | ' |
Deferred financing costs, net | 12,498 | 13,897 | ' | ' |
Intercompany notes and accounts receivable and investment in subsidiaries | 0 | 0 | ' | ' |
Other assets | 65,270 | 76,899 | ' | ' |
TOTAL ASSETS | 2,457,606 | 2,587,470 | 2,732,437 | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Current liabilities | 216,843 | 232,344 | ' | ' |
Long-term debt and capital leases, less current portion | 718,704 | 763,981 | ' | ' |
Intercompany notes and accounts payable | 0 | 0 | ' | ' |
Deferred tax liabilities | 275,557 | 284,453 | ' | ' |
Other long-term liabilities | 57,836 | 55,599 | ' | ' |
Equity | 1,188,666 | 1,251,093 | 1,269,652 | 1,287,332 |
TOTAL LIABILITIES AND EQUITY | 2,457,606 | 2,587,470 | ' | ' |
Parent Company | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Current assets | 30,170 | 50,321 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Deferred financing costs, net | 12,498 | 13,897 | ' | ' |
Intercompany notes and accounts receivable and investment in subsidiaries | 3,323,502 | 3,421,607 | ' | ' |
Other assets | 0 | 0 | ' | ' |
TOTAL ASSETS | 3,366,170 | 3,485,825 | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Current liabilities | 22,447 | 26,097 | ' | ' |
Long-term debt and capital leases, less current portion | 718,704 | 763,981 | ' | ' |
Intercompany notes and accounts payable | 1,162,648 | 1,162,648 | ' | ' |
Deferred tax liabilities | 272,540 | 280,828 | ' | ' |
Other long-term liabilities | 1,183 | 1,195 | ' | ' |
Equity | 1,188,648 | 1,251,076 | ' | ' |
TOTAL LIABILITIES AND EQUITY | 3,366,170 | 3,485,825 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Current assets | 359,392 | 398,188 | ' | ' |
Property and equipment, net | 1,211,710 | 1,244,216 | ' | ' |
Goodwill | 597,458 | 597,457 | ' | ' |
Deferred financing costs, net | 0 | 0 | ' | ' |
Intercompany notes and accounts receivable and investment in subsidiaries | 1,435,544 | 1,364,174 | ' | ' |
Other assets | 52,951 | 34,278 | ' | ' |
TOTAL ASSETS | 3,657,055 | 3,638,313 | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Current liabilities | 167,332 | 182,497 | ' | ' |
Long-term debt and capital leases, less current portion | 0 | 0 | ' | ' |
Intercompany notes and accounts payable | 2,684,469 | 2,667,943 | ' | ' |
Deferred tax liabilities | 4,643 | 4,643 | ' | ' |
Other long-term liabilities | 56,393 | 54,486 | ' | ' |
Equity | 744,218 | 728,744 | ' | ' |
TOTAL LIABILITIES AND EQUITY | 3,657,055 | 3,638,313 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Current assets | 62,929 | 57,644 | ' | ' |
Property and equipment, net | 113,798 | 121,430 | ' | ' |
Goodwill | 4,381 | 27,418 | ' | ' |
Deferred financing costs, net | 0 | 0 | ' | ' |
Intercompany notes and accounts receivable and investment in subsidiaries | 35,271 | 12,939 | ' | ' |
Other assets | 12,319 | 42,621 | ' | ' |
TOTAL ASSETS | 228,698 | 262,052 | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Current liabilities | 27,064 | 23,750 | ' | ' |
Long-term debt and capital leases, less current portion | 0 | 0 | ' | ' |
Intercompany notes and accounts payable | 117,273 | 97,050 | ' | ' |
Deferred tax liabilities | -1,626 | -1,819 | ' | ' |
Other long-term liabilities | 260 | -82 | ' | ' |
Equity | 85,727 | 143,153 | ' | ' |
TOTAL LIABILITIES AND EQUITY | 228,698 | 262,052 | ' | ' |
Eliminations | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Current assets | 0 | 0 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Deferred financing costs, net | 0 | 0 | ' | ' |
Intercompany notes and accounts receivable and investment in subsidiaries | -4,794,317 | -4,798,720 | ' | ' |
Other assets | 0 | 0 | ' | ' |
TOTAL ASSETS | -4,794,317 | -4,798,720 | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Current liabilities | 0 | 0 | ' | ' |
Long-term debt and capital leases, less current portion | 0 | 0 | ' | ' |
Intercompany notes and accounts payable | -3,964,390 | -3,927,641 | ' | ' |
Deferred tax liabilities | 0 | 801 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Equity | -829,927 | -871,880 | ' | ' |
TOTAL LIABILITIES AND EQUITY | ($4,794,317) | ($4,798,720) | ' | ' |
CONDENSED_CONSOLIDATING_FINANC3
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Unaudited Statements of Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ' | ' | ' | ' |
REVENUES | $350,595 | $411,390 | $706,736 | $839,839 |
Direct operating expense | 262,883 | 287,102 | 521,185 | 586,284 |
Depreciation and amortization expense | 52,184 | 58,208 | 103,279 | 112,401 |
General and administrative expense | 57,881 | 57,736 | 110,747 | 120,981 |
Goodwill and tradenames impairment | 28,687 | 0 | 28,687 | 0 |
Operating income (loss) | -51,040 | 8,344 | -57,162 | 20,173 |
Interest expense, net of amounts capitalized | 13,426 | 13,984 | 26,980 | 27,788 |
Other expense (income), net | -2,733 | 430 | -2,802 | -793 |
Loss before income taxes | -61,733 | -6,070 | -81,340 | -6,822 |
Income tax expense (benefit) | 9,537 | 2,298 | 17,245 | 2,864 |
Net loss | -52,196 | -3,772 | -64,095 | -3,958 |
Income attributable to noncontrolling interest | 0 | 356 | 0 | 444 |
LOSS ATTRIBUTABLE TO KEY | -52,196 | -4,128 | -64,095 | -4,402 |
Parent Company | ' | ' | ' | ' |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ' | ' | ' | ' |
REVENUES | 0 | 0 | 0 | 0 |
Direct operating expense | 0 | 0 | 0 | 0 |
Depreciation and amortization expense | 0 | 0 | 0 | 0 |
General and administrative expense | 242 | 262 | 478 | 516 |
Goodwill and tradenames impairment | 0 | ' | 0 | ' |
Operating income (loss) | -242 | -262 | -478 | -516 |
Interest expense, net of amounts capitalized | 13,402 | 14,124 | 26,954 | 28,015 |
Other expense (income), net | -618 | -911 | -1,289 | -1,809 |
Loss before income taxes | -13,026 | -13,475 | -26,143 | -26,722 |
Income tax expense (benefit) | 7,977 | -3,631 | 10,983 | -2,383 |
Net loss | -5,049 | -17,106 | -15,160 | -29,105 |
Income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
LOSS ATTRIBUTABLE TO KEY | -5,049 | -17,106 | -15,160 | -29,105 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ' | ' | ' | ' |
REVENUES | 326,835 | 389,847 | 657,310 | 795,231 |
Direct operating expense | 245,267 | 273,188 | 481,925 | 559,230 |
Depreciation and amortization expense | 48,702 | 55,533 | 96,465 | 107,590 |
General and administrative expense | 55,459 | 52,543 | 105,007 | 110,364 |
Goodwill and tradenames impairment | 0 | ' | 0 | ' |
Operating income (loss) | -22,593 | 8,583 | -26,087 | 18,047 |
Interest expense, net of amounts capitalized | -1 | -155 | -1 | -291 |
Other expense (income), net | -572 | -77 | -1,296 | -1,246 |
Loss before income taxes | -22,020 | 8,815 | -24,790 | 19,584 |
Income tax expense (benefit) | 2,094 | 6,154 | 5,843 | 5,271 |
Net loss | -19,926 | 14,969 | -18,947 | 24,855 |
Income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
LOSS ATTRIBUTABLE TO KEY | -19,926 | 14,969 | -18,947 | 24,855 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ' | ' | ' | ' |
REVENUES | 30,272 | 44,807 | 63,553 | 88,297 |
Direct operating expense | 20,632 | 32,637 | 45,684 | 63,120 |
Depreciation and amortization expense | 3,482 | 2,675 | 6,814 | 4,811 |
General and administrative expense | 5,623 | 9,449 | 12,957 | 18,301 |
Goodwill and tradenames impairment | 28,687 | ' | 28,687 | ' |
Operating income (loss) | -28,152 | 46 | -30,589 | 2,065 |
Interest expense, net of amounts capitalized | 25 | 15 | 27 | 64 |
Other expense (income), net | -1,564 | 701 | -248 | 738 |
Loss before income taxes | -26,613 | -670 | -30,368 | 1,263 |
Income tax expense (benefit) | -534 | -225 | 419 | -24 |
Net loss | -27,147 | -895 | -29,949 | 1,239 |
Income attributable to noncontrolling interest | 0 | 356 | 0 | 444 |
LOSS ATTRIBUTABLE TO KEY | -27,147 | -1,251 | -29,949 | 795 |
Eliminations | ' | ' | ' | ' |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ' | ' | ' | ' |
REVENUES | -6,512 | -23,264 | -14,127 | -43,689 |
Direct operating expense | -3,016 | -18,723 | -6,424 | -36,066 |
Depreciation and amortization expense | 0 | 0 | 0 | 0 |
General and administrative expense | -3,443 | -4,518 | -7,695 | -8,200 |
Goodwill and tradenames impairment | 0 | ' | 0 | ' |
Operating income (loss) | -53 | -23 | -8 | 577 |
Interest expense, net of amounts capitalized | 0 | 0 | 0 | 0 |
Other expense (income), net | 21 | 717 | 31 | 1,524 |
Loss before income taxes | -74 | -740 | -39 | -947 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net loss | -74 | -740 | -39 | -947 |
Income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
LOSS ATTRIBUTABLE TO KEY | ($74) | ($740) | ($39) | ($947) |
CONDENSED_CONSOLIDATING_FINANC4
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Unaudited Statements Of Cash Flows (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | ' | ' |
Net cash provided by operating activities | $107,268 | $46,681 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -69,429 | -72,577 |
Acquisition of the 50% noncontrolling interest in Geostream | 0 | -14,600 |
Intercompany notes and accounts | 0 | 0 |
Other investing activities, net | 9,389 | 3,881 |
Net cash used in investing activities | -60,040 | -83,296 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ' | ' |
Repayments of long-term debt | -3,573 | 0 |
Repayment of capital lease obligations | 0 | -379 |
Proceeds from borrowings on revolving credit facility | 115,000 | 155,000 |
Repayments on revolving credit facility | -160,000 | -135,000 |
Payment of deferred financing costs | 0 | -69 |
Repurchases of common stock | -2,211 | -3,134 |
Intercompany notes and accounts | 0 | 0 |
Other financing activities, net | -1,221 | -1,501 |
Net cash provided by (used in) financing activities | -52,005 | 14,917 |
Effect of changes in exchange rates on cash | -81 | 484 |
Net decrease in cash and cash equivalents | -4,858 | -21,214 |
Cash and cash equivalents, beginning of period | 28,306 | 45,949 |
Cash and cash equivalents, end of period | 23,448 | 24,735 |
Parent Company | ' | ' |
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | ' | ' |
Net cash provided by operating activities | 0 | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | 0 | 0 |
Acquisition of the 50% noncontrolling interest in Geostream | ' | 0 |
Intercompany notes and accounts | 0 | 0 |
Other investing activities, net | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ' | ' |
Repayments of long-term debt | -3,573 | ' |
Repayment of capital lease obligations | ' | 0 |
Proceeds from borrowings on revolving credit facility | 115,000 | 155,000 |
Repayments on revolving credit facility | -160,000 | -135,000 |
Payment of deferred financing costs | ' | -69 |
Repurchases of common stock | -2,211 | -3,134 |
Intercompany notes and accounts | 41,350 | -36,539 |
Other financing activities, net | -1,221 | -1,501 |
Net cash provided by (used in) financing activities | -10,655 | -21,243 |
Effect of changes in exchange rates on cash | 0 | 0 |
Net decrease in cash and cash equivalents | -10,655 | -21,243 |
Cash and cash equivalents, beginning of period | 23,115 | 39,617 |
Cash and cash equivalents, end of period | 12,460 | 18,374 |
Guarantor Subsidiaries | ' | ' |
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | ' | ' |
Net cash provided by operating activities | 100,170 | 45,284 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -66,280 | -69,413 |
Acquisition of the 50% noncontrolling interest in Geostream | ' | -14,600 |
Intercompany notes and accounts | -41,350 | 36,539 |
Other investing activities, net | 9,389 | 3,881 |
Net cash used in investing activities | -98,241 | -43,593 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ' | ' |
Repayments of long-term debt | 0 | ' |
Repayment of capital lease obligations | ' | -379 |
Proceeds from borrowings on revolving credit facility | 0 | 0 |
Repayments on revolving credit facility | 0 | 0 |
Payment of deferred financing costs | ' | 0 |
Repurchases of common stock | 0 | 0 |
Intercompany notes and accounts | 0 | 0 |
Other financing activities, net | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | -379 |
Effect of changes in exchange rates on cash | 0 | 0 |
Net decrease in cash and cash equivalents | 1,929 | 1,312 |
Cash and cash equivalents, beginning of period | 788 | 1,601 |
Cash and cash equivalents, end of period | 2,717 | 2,913 |
Non-Guarantor Subsidiaries | ' | ' |
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | ' | ' |
Net cash provided by operating activities | 7,098 | 1,397 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | -3,149 | -3,164 |
Acquisition of the 50% noncontrolling interest in Geostream | ' | 0 |
Intercompany notes and accounts | 0 | 0 |
Other investing activities, net | 0 | 0 |
Net cash used in investing activities | -3,149 | -3,164 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ' | ' |
Repayments of long-term debt | 0 | ' |
Repayment of capital lease obligations | ' | 0 |
Proceeds from borrowings on revolving credit facility | 0 | 0 |
Repayments on revolving credit facility | 0 | 0 |
Payment of deferred financing costs | ' | 0 |
Repurchases of common stock | 0 | 0 |
Intercompany notes and accounts | 0 | 0 |
Other financing activities, net | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Effect of changes in exchange rates on cash | -81 | 484 |
Net decrease in cash and cash equivalents | 3,868 | -1,283 |
Cash and cash equivalents, beginning of period | 4,403 | 4,731 |
Cash and cash equivalents, end of period | 8,271 | 3,448 |
Eliminations | ' | ' |
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | ' | ' |
Net cash provided by operating activities | 0 | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital expenditures | 0 | 0 |
Acquisition of the 50% noncontrolling interest in Geostream | ' | 0 |
Intercompany notes and accounts | 41,350 | -36,539 |
Other investing activities, net | 0 | 0 |
Net cash used in investing activities | 41,350 | -36,539 |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ' | ' |
Repayments of long-term debt | 0 | ' |
Repayment of capital lease obligations | ' | 0 |
Proceeds from borrowings on revolving credit facility | 0 | 0 |
Repayments on revolving credit facility | 0 | 0 |
Payment of deferred financing costs | ' | 0 |
Repurchases of common stock | 0 | 0 |
Intercompany notes and accounts | -41,350 | 36,539 |
Other financing activities, net | 0 | 0 |
Net cash provided by (used in) financing activities | -41,350 | 36,539 |
Effect of changes in exchange rates on cash | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 |