Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 17, 2015 | Jun. 30, 2014 |
Document Documentand Entity Information [Abstract] | |||
Entity Registrant Name | KEY ENERGY SERVICES INC | ||
Entity Central Index Key | 318996 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | KEG | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 154,398,693 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $778.90 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $27,304 | $28,306 |
Accounts receivable, net of allowance for doubtful accounts of $2,925 and $766 | 289,466 | 348,966 |
Inventories | 30,171 | 32,335 |
Other current assets | 86,854 | 96,546 |
Total current assets | 433,795 | 506,153 |
Property and equipment, gross | 2,555,515 | 2,606,738 |
Accumulated depreciation | -1,320,257 | -1,241,092 |
Property and equipment, net | 1,235,258 | 1,365,646 |
Goodwill | 582,739 | 624,875 |
Other intangible assets, net | 14,500 | 41,146 |
Deferred financing costs, net | 10,735 | 13,897 |
Other assets | 56,471 | 35,753 |
TOTAL ASSETS | 2,333,498 | 2,587,470 |
Current liabilities: | ||
Accounts payable | 77,631 | 58,826 |
Other current liabilities | 164,227 | 169,945 |
Current portion of long-term debt | 0 | 3,573 |
Total current liabilities | 241,858 | 232,344 |
Long-term debt | 748,426 | 763,981 |
Workers' compensation, vehicular and health insurance liabilities | 29,690 | 29,944 |
Deferred tax liabilities | 228,394 | 284,453 |
Other non-current accrued liabilities | 27,067 | 25,655 |
Commitments and contingencies | ||
Equity: | ||
Common stock, $0.10 par value; 200,000,000 shares authorized, 153,557,108 and 152,331,006 shares issued and outstanding | 15,356 | 15,233 |
Additional paid-in capital | 960,647 | 953,306 |
Accumulated other comprehensive loss | -37,280 | -15,414 |
Retained earnings | 119,340 | 297,968 |
Total equity | 1,058,063 | 1,251,093 |
TOTAL LIABILITIES AND EQUITY | $2,333,498 | $2,587,470 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $2,925 | $766 |
Common stock, par value (usd per share) | $0.10 | $0.10 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 153,557,108 | 152,331,006 |
Common stock, shares outstanding (shares) | 153,557,108 | 152,331,006 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||||||||||
Revenues | $354,802 | $365,798 | $350,595 | $356,141 | $362,164 | $389,673 | $411,390 | $428,449 | $1,427,336 | $1,591,676 | $1,960,070 |
COSTS AND EXPENSES: | |||||||||||
Direct operating expenses | 266,354 | 272,112 | 262,883 | 258,302 | 259,881 | 268,297 | 287,102 | 299,182 | 1,059,651 | 1,114,462 | 1,308,845 |
Depreciation and amortization expense | 200,738 | 225,297 | 213,783 | ||||||||
General and administrative expenses | 249,646 | 221,753 | 230,496 | ||||||||
Impairment expense | 121,176 | 0 | 0 | ||||||||
Operating income (loss) | -203,875 | 30,164 | 206,946 | ||||||||
Interest expense, net of amounts capitalized | 54,227 | 55,204 | 53,566 | ||||||||
Other (income) loss, net | 1,009 | -803 | -6,649 | ||||||||
Income (loss) from continuing operations before tax | -259,111 | -24,237 | 160,029 | ||||||||
Income tax (expense) benefit | 80,483 | 3,064 | -57,352 | ||||||||
Income (loss) from continuing operations | -178,628 | -21,173 | 102,677 | ||||||||
Loss from discontinued operations, net of tax | 0 | 0 | -93,568 | ||||||||
Net income (loss) | -52,304 | -62,229 | -52,196 | -11,899 | -12,518 | -4,697 | -3,772 | -186 | -178,628 | -21,173 | 9,109 |
Income attributable to noncontrolling interest | 0 | 595 | 1,487 | ||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | -52,304 | -62,229 | -52,196 | -11,899 | -12,518 | -4,848 | -4,128 | -274 | -178,628 | -21,768 | 7,622 |
Earnings (loss) per share from continuing operations attributable to Key: | |||||||||||
Basic (usd per share) | ($1.16) | ($0.14) | $0.67 | ||||||||
Diluted (usd per share) | ($1.16) | ($0.14) | $0.67 | ||||||||
Loss per share from discontinued operations: | |||||||||||
Basic loss per share from discontinued operations (usd per share) | $0 | $0 | ($0.62) | ||||||||
Diluted (usd per share) | $0 | $0 | ($0.62) | ||||||||
Earnings (loss) per share attributable to Key: | |||||||||||
Basic (usd per share) | ($1.16) | ($0.14) | $0.05 | ||||||||
Diluted (usd per share) | ($1.16) | ($0.14) | $0.05 | ||||||||
Income (loss) from continuing operations attributable to Key: | |||||||||||
Income (loss) from continuing operations | -178,628 | -21,173 | 102,677 | ||||||||
Income attributable to noncontrolling interest | 0 | 595 | 1,487 | ||||||||
Income (loss) from continuing operations attributable to Key | ($178,628) | ($21,768) | $101,190 | ||||||||
Weighted Average Shares Outstanding: | |||||||||||
Basic (shares) | 153,371 | 152,271 | 151,106 | ||||||||
Diluted (shares) | 153,371 | 152,271 | 151,125 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Income (loss) from continuing operations | ($178,628) | ($21,173) | $102,677 |
Other comprehensive income (loss): | |||
Foreign currency translation income (loss), net of tax | -21,866 | -5,607 | 1,933 |
Reclassification adjustment for sales of foreign subsidiaries | 0 | 0 | 51,892 |
Total other comprehensive income (loss) | -21,866 | -5,607 | 53,825 |
COMPREHENSIVE INCOME (LOSS) FROM CONTINUING OPERATIONS, NET OF TAX | -200,494 | -26,780 | 156,502 |
Comprehensive loss from discontinued operations | 0 | 0 | -93,568 |
COMPREHENSIVE INCOME (LOSS) | -200,494 | -26,780 | 62,934 |
Comprehensive (income) loss attributable to noncontrolling interest | 0 | 96 | -3,229 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO KEY | ($200,494) | ($26,684) | $59,705 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | ($178,628) | ($21,173) | $9,109 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization expense | 200,738 | 225,297 | 213,783 |
Impairment expense | 121,176 | 0 | 84,732 |
Bad debt expense | 2,710 | 634 | 1,299 |
Accretion of asset retirement obligations | 605 | 604 | 594 |
(Income) loss from equity method investments | -25 | 447 | 926 |
Amortization and write-off of deferred financing costs and premium on debt | 2,606 | 2,244 | 2,664 |
Deferred income tax expense (benefit) | -82,922 | -11,929 | 35,998 |
Capitalized interest | 0 | -607 | -1,314 |
(Gain) loss on disposal of assets, net | 8,686 | -2,972 | 1,661 |
Share-based compensation | 10,949 | 13,785 | 13,306 |
Excess tax expense (benefit) from share-based compensation | 1,240 | 1,848 | -4,085 |
Changes in working capital: | |||
Accounts receivable | 54,024 | 54,003 | -15,409 |
Other current assets | -2,471 | 5,915 | -42,558 |
Accounts payable and accrued liabilities | 15,114 | -82,318 | 60,665 |
Share-based compensation liability awards | -846 | 954 | 1,555 |
Other assets and liabilities | 11,212 | 41,911 | 6,734 |
Net cash provided by operating activities | 164,168 | 228,643 | 369,660 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | -161,639 | -164,137 | -447,160 |
Proceeds from sale of fixed assets | 15,844 | 17,256 | 17,127 |
Proceeds from sale of assets held for sale | 0 | 0 | 2,000 |
Payment of accrued acquisition cost of the 51% noncontrolling interest in AlMansoori Key Energy Services LLC | -5,100 | 0 | 0 |
Acquisition of the 50% noncontrolling interest in Geostream | 0 | -14,600 | 0 |
Proceeds from notes receivable | 4,055 | 600 | 0 |
Investments in Wilayat Key Energy, LLC | 0 | 0 | -676 |
Net cash used in investing activities | -146,840 | -160,881 | -428,709 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of long-term debt | -3,573 | 0 | 0 |
Proceeds from long-term debt | 0 | 0 | 205,000 |
Repayment of capital lease obligations | 0 | -393 | -1,959 |
Proceeds from borrowings on revolving credit facility | 260,000 | 220,000 | 275,000 |
Repayments on revolving credit facility | -275,000 | -300,000 | -405,000 |
Payment of deferred financing costs | 0 | -69 | -4,597 |
Repurchases of common stock | -2,245 | -3,196 | -7,519 |
Proceeds from exercise of stock options and warrants | 0 | 14 | 901 |
Excess tax (expense) benefit from share-based compensation | -1,240 | -1,848 | 4,085 |
Other financing activities, net | 0 | 0 | 8,035 |
Net cash provided by (used in) financing activities | -22,058 | -85,492 | 73,946 |
Effect of changes in exchange rates on cash | 3,728 | 87 | -4,391 |
Net increase (decrease) in cash and cash equivalents | -1,002 | -17,643 | 10,506 |
Cash and cash equivalents at beginning of period | 28,306 | 45,949 | 35,443 |
Cash and cash equivalents at end of period | $27,304 | $28,306 | $45,949 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | Apr. 09, 2013 | Oct. 31, 2008 | Aug. 05, 2013 |
Geostream [Member] | |||
Ownership percentage | 50.00% | 26.00% | |
Al Mansoori Petroleum Services Limited Liability Company [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 51.00% |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss | Retained Earnings | Non controlling Interest | Geostream [Member] | Geostream [Member] | Geostream [Member] | Geostream [Member] | AlMansoori Key Energy Services LLC | AlMansoori Key Energy Services LLC | AlMansoori Key Energy Services LLC | AlMansoori Key Energy Services LLC |
In Thousands, unless otherwise specified | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss | Non controlling Interest | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss | Non controlling Interest | ||||||||
Beginning Balance at Dec. 31, 2011 | $1,214,631 | $15,073 | $915,400 | ($58,231) | $312,114 | $30,275 | ||||||||
Beginning Balance (in shares) at Dec. 31, 2011 | 150,733 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Foreign currency translation | 1,933 | 0 | 0 | 191 | 0 | 1,742 | ||||||||
Foreign currency impact on sale of Argentina (Note 3) | 51,892 | 0 | 0 | 51,892 | 0 | 0 | ||||||||
Common stock purchases (in shares) | -483 | |||||||||||||
Common stock purchases | -7,519 | -48 | -7,471 | 0 | 0 | 0 | ||||||||
Exercise of stock options and warrants (in shares) | 100 | |||||||||||||
Exercise of stock options and warrants | 901 | 10 | 891 | 0 | 0 | 0 | ||||||||
Share-based compensation (in shares) | 788 | |||||||||||||
Share-based compensation | 13,306 | 80 | 13,226 | 0 | 0 | 0 | ||||||||
Tax benefits from share-based compensation | 4,085 | 0 | 4,085 | 0 | 0 | 0 | ||||||||
Shares surrendered (shares) | -68 | |||||||||||||
Shares surrendered | -1,006 | -7 | -999 | 0 | 0 | 0 | ||||||||
Net income (loss) | 9,109 | 0 | 0 | 0 | 7,622 | 1,487 | ||||||||
Ending Balance at Dec. 31, 2012 | 1,287,332 | 15,108 | 925,132 | -6,148 | 319,736 | 33,504 | ||||||||
Ending Balance (in shares) at Dec. 31, 2012 | 151,070 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Foreign currency translation | -5,607 | 0 | 0 | -4,916 | 0 | -691 | ||||||||
Common stock purchases (in shares) | -416 | |||||||||||||
Common stock purchases | -3,196 | -42 | -3,154 | 0 | 0 | 0 | ||||||||
Exercise of stock options and warrants (in shares) | 4 | |||||||||||||
Exercise of stock options and warrants | 14 | 0 | 14 | 0 | 0 | 0 | ||||||||
Share-based compensation (in shares) | 1,673 | |||||||||||||
Share-based compensation | 13,785 | 167 | 13,618 | 0 | 0 | 0 | ||||||||
Tax benefits from share-based compensation | -1,848 | 0 | -1,848 | 0 | 0 | 0 | ||||||||
Acquisition | -13,114 | 22,432 | -4,350 | -31,196 | -5,100 | -2,888 | 0 | -2,212 | ||||||
Net income (loss) | -21,173 | 0 | 0 | 0 | -21,768 | 595 | ||||||||
Ending Balance at Dec. 31, 2013 | 1,251,093 | 15,233 | 953,306 | -15,414 | 297,968 | 0 | ||||||||
Ending Balance (in shares) at Dec. 31, 2013 | 152,331 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Foreign currency translation | -21,866 | 0 | 0 | -21,866 | 0 | 0 | ||||||||
Common stock purchases (in shares) | -291 | |||||||||||||
Common stock purchases | -2,245 | -29 | -2,216 | 0 | 0 | 0 | ||||||||
Exercise of stock options (in shares) | 0 | |||||||||||||
Share-based compensation (in shares) | 1,517 | |||||||||||||
Share-based compensation | 10,949 | 152 | 10,797 | 0 | 0 | 0 | ||||||||
Tax benefits from share-based compensation | -1,240 | 0 | -1,240 | 0 | 0 | 0 | ||||||||
Net income (loss) | -178,628 | 0 | 0 | 0 | -178,628 | 0 | ||||||||
Ending Balance at Dec. 31, 2014 | $1,058,063 | $15,356 | $960,647 | ($37,280) | $119,340 | $0 | ||||||||
Ending Balance (in shares) at Dec. 31, 2014 | 153,557 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) | Apr. 09, 2013 | Oct. 31, 2008 | Aug. 05, 2013 |
Geostream [Member] | |||
Ownership percentage | 50.00% | 26.00% | |
Al Mansoori Petroleum Services Limited Liability Company [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 51.00% |
ORGANIZATION_AND_SUMMARY_OF_SI
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes) | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Key Energy Services, Inc., and its wholly owned subsidiaries (collectively, “Key,” the “Company,” “we,” “us” 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 of our rigs are capable of specialty drilling applications. We operate in most major oil and natural gas producing regions of the continental United States, and we 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. | ||
Basis of Presentation | ||
The consolidated financial statements included in this Annual Report on Form 10-K present our financial position, results of operations and cash flows for the periods presented in accordance with generally accepted accounting principles in the United States (“GAAP”). | ||
The preparation of these 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 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 our estimates are reasonable. | ||
We have evaluated events occurring after the balance sheet date included in this Annual Report on Form 10-K for possible disclosure as a subsequent event. Management monitored for subsequent events through the date that these financial statements were issued. | ||
We revised our reportable business segments effective in the fourth quarter of 2014, and in connection with the revision, we have revised disclosures for the corresponding items of segment information for the years ended December 31, 2013 and 2012. The revised reportable segments are U.S. Rig Services, Fluid Management Services, Coiled Tubing Services, Fishing and Rental Services and International. We also have a “Functional Support” segment associated with overhead costs in support of our reportable segments. We revised our segments to reflect changes in management’s resource allocation and performance assessment in making decisions regarding our business. Our U.S. Rig Services, Fluid Management Services, Coiled Tubing Services, Fishing and Rental Services operate geographically within the United States. The International reportable segment includes our operations in Mexico, Colombia, Ecuador, Russia, Bahrain and Oman. Our Canadian subsidiary is also reflected in our International reportable segment. These changes reflect our current operating focus in compliance with Accounting Standards Codification (“ASC”) No. 280, Segment Reporting (“ASC 280”). These presentation changes did not impact our consolidated net income, earnings per share, total current assets, total assets or total stockholders’ equity. | ||
On February 17, 2012, the Company announced its decision to sell its business and operations in Argentina (the “Argentina business”) and on September 14, 2012 completed the sale of the Argentina business. In accordance with applicable accounting requirements and guidance, the Company has reclassified and presented the Argentina business as a discontinued operation for the 2012 period. | ||
Principles of Consolidation | ||
Within our consolidated financial statements, we include our accounts and the accounts of our majority-owned or controlled subsidiaries. We eliminate intercompany accounts and transactions. When we have an interest in an entity for which we do not have significant control or influence, we account for that interest using the cost method. When we have an interest in an entity and can exert significant influence but not control, we account for that interest using the equity method. | ||
Acquisitions | ||
From time to time, we acquire businesses or assets that are consistent with our long-term growth strategy. Results of operations for acquisitions are included in our financial statements beginning on the date of acquisition and are accounted for using the acquisition method. For all business combinations (whether partial, full or in stages), the acquirer records 100% of all assets and liabilities of the acquired business, including goodwill, at their fair values; including contingent consideration. Final valuations of assets and liabilities are obtained and recorded as soon as practicable no later than one year from the date of the acquisition. | ||
Revenue Recognition | ||
We recognize revenue when all of the following criteria have been met: (i) evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price to the customer is fixed and determinable and (iv) collectability is reasonably assured. | ||
• | Evidence of an arrangement exists when a final understanding between us and our customer has occurred, and can be evidenced by a completed customer purchase order, field ticket, supplier contract, or master service agreement. | |
• | Delivery has occurred or services have been rendered when we have completed requirements pursuant to the terms of the arrangement as evidenced by a field ticket or service log. | |
• | The price to the customer is fixed and determinable when the amount that is required to be paid is agreed upon. Evidence of the price being fixed and determinable is evidenced by contractual terms, our price book, a completed customer purchase order, or a field ticket. | |
• | Collectability is reasonably assured when we screen our customers and provide goods and services to customers according to determined credit terms that have been granted in accordance with our credit policy. | |
We present our revenues net of any sales taxes collected by us from our customers that are required to be remitted to local or state governmental taxing authorities. | ||
We review our contracts for multiple element revenue arrangements. Deliverables will be separated into units of accounting and assigned fair value if they have standalone value to our customer, have objective and reliable evidence of fair value, and delivery of undelivered items is substantially controlled by us. We believe that the negotiated prices for deliverables in our services contracts are representative of fair value since the acceptance or non-acceptance of each element in the contract does not affect the other elements. | ||
Cash and Cash Equivalents | ||
We consider short-term investments with an original maturity of less than three months to be cash equivalents. At December 31, 2014, we have not entered into any compensating balance arrangements, but all of our obligations under our 2011 Credit Facility (as defined below) with a syndicate of banks of which JPMorgan Chase Bank, N.A. is the administrative agent were secured by most of our assets, including assets held by our subsidiaries, which includes our cash and cash equivalents. We restrict investment of cash to financial institutions with high credit standing and limit the amount of credit exposure to any one financial institution. | ||
We maintain our cash in bank deposit and brokerage accounts which exceed federally insured limits. As of December 31, 2014, accounts were guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 and substantially all of our accounts held deposits in excess of the FDIC limits. | ||
We believe that the cash held by our other foreign subsidiaries could be repatriated for general corporate use without material withholdings. From time to time and in the normal course of business in connection with our operations or ongoing legal matters, we are required to place certain amounts of our cash in deposit accounts with restrictions that limit our ability to withdraw those funds. | ||
Certain of our cash accounts are zero-balance controlled disbursement accounts that do not have right of offset against our other cash balances. We present the outstanding checks written against these zero-balance accounts as a component of accounts payable in the accompanying consolidated balance sheets. | ||
Accounts Receivable and Allowance for Doubtful Accounts | ||
We establish provisions for losses on accounts receivable if we determine that there is a possibility that we will not collect all or part of the outstanding balances. We regularly review accounts over 150 days past due from the invoice date for collectability and establish or adjust our allowance as necessary using the specific identification method. If we exhaust all collection efforts and determine that the balance will never be collected, we write off the accounts receivable and the associated provision for uncollectible accounts. | ||
From time to time we are entitled to proceeds under our insurance policies for amounts that we have reserved in our self-insurance liability. We present these insurance receivables gross on our balance sheet as a component of other assets, separate from the corresponding liability. | ||
Concentration of Credit Risk and Significant Customers | ||
Our customers include major oil and natural gas production companies, independent oil and natural gas production companies, and foreign national oil and natural gas production companies. We perform ongoing credit evaluations of our customers and usually do not require material collateral. We maintain reserves for potential credit losses when necessary. Our results of operations and financial position should be considered in light of the fluctuations in demand experienced by oilfield service companies as changes in oil and gas producers’ expenditures and budgets occur. These fluctuations can impact our results of operations and financial position as supply and demand factors directly affect utilization and hours which are the primary determinants of our net cash provided by operating activities. | ||
During the years ended December 31, 2014 and December 31, 2013, Chevron Texaco Exploration and Production accounted for approximately 15% of our consolidated revenue. During the year ended December 31, 2012, Pemex and Occidental Petroleum Corporation accounted for approximately 12% and 10% of our consolidated revenue, respectively. No other customer accounted for more than 10% of our consolidated revenue in 2014, 2013 or 2012. | ||
Receivables outstanding from Pemex were approximately 19% of our total accounts receivable as of December 31, 2013. No other customer accounted for more than 10% of our total accounts receivable as of December 31, 2014 and 2013. | ||
Inventories | ||
Inventories, which consist primarily of equipment parts and spares for use in our operations and supplies held for consumption, are valued at the lower of average cost or market. | ||
Property and Equipment | ||
Property and equipment are carried at cost less accumulated depreciation. Depreciation is provided for our assets over the estimated depreciable lives of the assets using the straight-line method. Depreciation expense for the years ended December 31, 2014, 2013 and 2012 was $191.9 million, $206.2 million and $190.5 million, respectively. We depreciate our operational assets over their depreciable lives to their salvage value, which is a value higher than the assets’ value as scrap. Salvage value approximates 10% of an operational asset’s acquisition cost. When an operational asset is stacked or taken out of service, we review its physical condition, depreciable life and ultimate salvage value to determine if the asset is operable and whether the remaining depreciable life and salvage value should be adjusted. When we scrap an asset, we accelerate the depreciation of the asset down to its salvage value. When we dispose of an asset, a gain or loss is recognized. | ||
As of December 31, 2014, the estimated useful lives of our asset classes are as follows: | ||
Description | Years | |
Well service rigs and components | 15-Mar | |
Oilfield trucks, vehicles and related equipment | 7-Apr | |
Fishing and rental tools, coiled tubing units and equipment, tubulars and pressure control equipment | 10-Mar | |
Disposal wells | 15 | |
Furniture and equipment | 7-Mar | |
Buildings and improvements | 15-30 | |
From time to time, we lease certain of our operating assets under capital lease obligations whose terms run from 55 to 60 months. These assets are depreciated over their estimated useful lives or the term of the capital lease obligation, whichever is shorter. | ||
A long-lived asset or asset group should be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. For purposes of testing for impairment, we group our long-lived assets along our lines of business based on the services provided, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. We would record an impairment charge, reducing the net carrying value to an estimated fair value, if the asset group’s estimated future cash flows were less than its net carrying value. Events or changes in circumstance that cause us to evaluate our fixed assets for recoverability and possible impairment may include changes in market conditions, such as adverse movements in the prices of oil and natural gas, or changes of an asset group, such as its expected future life, intended use or physical condition, which could reduce the fair value of certain of our property and equipment. The development of future cash flows and the determination of fair value for an asset group involves significant judgment and estimates. We identified a triggering event in the third quarter of 2014 that resulted in a recording of a reduction in value of fixed assets of $62.1 million in our Fishing and Rental Services segment. We did not identify any trigger events causing us to test our tangible and finite-lived intangible assets for impairment during the years ended December 31, 2013 or 2012. See “Note 8. Property and Equipment,” for further discussion. | ||
Asset Retirement Obligations | ||
We recognize a liability for the fair value of all legal obligations associated with the retirement of tangible long-lived assets and capitalize an equal amount as a cost of the asset. We depreciate the additional cost over the estimated useful life of the assets. Our obligations to perform our asset retirement activities are unconditional, despite the uncertainties that may exist surrounding an individual retirement activity. Accordingly, we recognize a liability for the fair value of a conditional asset retirement obligation if the fair value can be reasonably estimated. In determining the fair value, we examine the inputs that we believe a market participant would use if we were to transfer the liability. We probability-weight the potential costs a third-party would charge, adjust the cost for inflation for the estimated life of the asset, and discount this cost using our credit adjusted risk free rate. Significant judgment is involved in estimating future cash flows associated with such obligations, as well as the ultimate timing of those cash flows. If our estimates of the amount or timing of the cash flows change, such changes may have a material impact on our results of operations. See “Note 11. Asset Retirement Obligations.” | ||
Deposits | ||
Due to capacity constraints on equipment manufacturers, we have been required to make advanced payments for certain oilfield service equipment and other items used in the normal course of business. As of December 31, 2014 and December 31, 2013, deposits totaled $10.1 million and $1.5 million, respectively. Deposits consist primarily of payments made related to high demand long-lead time items. | ||
Capitalized Interest | ||
Interest is capitalized on the average amount of accumulated expenditures for major capital projects under construction using an effective interest rate based on related debt until the underlying assets are placed into service. The capitalized interest is added to the cost of the assets and amortized to depreciation expense over the useful life of the assets, and is included in the depreciation and amortization line in the accompanying consolidated statements of operations. | ||
Deferred Financing Costs | ||
Deferred financing costs associated with long-term debt are carried at cost and are amortized to interest expense using the effective interest method over the life of the related debt instrument. When the related debt instrument is retired, any remaining unamortized costs are included in the determination of the gain or loss on the extinguishment of the debt. We record gains and losses from the extinguishment of debt as a part of continuing operations. See “Note 14. Long-term Debt,” for further discussion. | ||
Goodwill and Other Intangible Assets | ||
Goodwill results from business combinations and represents the excess of the acquisition consideration over the fair value of the net assets acquired. Goodwill and other intangible assets not subject to amortization are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. | ||
The test for impairment of indefinite-lived intangible assets allows us to first assess the qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If our qualitative analysis shows that it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount we will perform the two-step goodwill impairment test. In the first step of the test, a fair value is calculated for each of our reporting units, and that fair value is compared to the carrying value of the reporting unit, including the reporting unit’s goodwill. If the fair value of the reporting unit exceeds its carrying value, there is no impairment, and the second step of the test is not performed. If the carrying value exceeds the fair value for the reporting unit, then the second step of the test is required. | ||
The second step of the test compares the implied fair value of the reporting unit’s goodwill to its carrying value. The implied fair value of the reporting unit’s goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, with the purchase price being equal to the fair value of the reporting unit. If the implied fair value of the reporting unit’s goodwill is in excess of its carrying value, no impairment is recorded. If the carrying value is in excess of the implied fair value, an impairment equal to the excess is recorded. | ||
To assist management in the preparation and analysis of the valuation of our reporting units, we utilize the services of a third-party valuation consultant. The ultimate conclusions of the valuation techniques remain our sole responsibility. The determination of the fair value used in the test is heavily impacted by the market prices of our equity and debt securities, as well as the assumptions and estimates about our future activity levels, profitability and cash flows. | ||
We conduct our annual impairment test as of October 1 of each year. While this test is required on an annual basis, it can also be required more frequently based on changes in external factors or other triggering events. In 2014, we experienced several triggering events that required us to perform additional interim testing for the possible impairment of goodwill, which resulted in the recording of a reduction in value of our goodwill of $41.5 million and other intangible assets of $17.6 million. See “Note 9. Goodwill and Other Intangible Assets,” for further discussion. | ||
Internal-Use Software | ||
We capitalize costs incurred during the application development stage of internal-use software and amortize these costs over the software’s estimated useful life, generally five to seven years. Costs incurred related to selection or maintenance of internal-use software are expensed as incurred. | ||
Litigation | ||
When estimating our liabilities related to litigation, we take into account all available facts and circumstances in order to determine whether a loss is probable and reasonably estimable. | ||
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. We establish a provision for a contingent liability when it is probable that a liability has been incurred and the amount is reasonably estimable. See “Note 15. Commitments and Contingencies.” | ||
Environmental | ||
Our operations routinely involve the storage, handling, transport and disposal of bulk waste materials, some of which contain oil, contaminants, and regulated substances. These operations are subject to various federal, state and local laws and regulations intended to protect the environment. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed. We record liabilities on an undiscounted basis when our remediation efforts are probable and the costs to conduct such remediation efforts can be reasonably estimated. While our litigation reserves reflect the application of our insurance coverage, our environmental reserves do not reflect management’s assessment of the insurance coverage that may apply to the matters at issue. See “Note 15. Commitments and Contingencies.” | ||
Self-Insurance | ||
We are largely self-insured against physical damage to our equipment and automobiles as well as workers’ compensation claims. The accruals that we maintain on our consolidated balance sheet relate to these deductibles and self-insured retentions, which we estimate through the use of historical claims data and trend analysis. To assist management with the liability amount for our self-insurance reserves, we utilize the services of a third party actuary. The actual outcome of any claim could differ significantly from estimated amounts. We adjust loss estimates in the calculation of these accruals, based upon actual claim settlements and reported claims. See “Note 15. Commitments and Contingencies.” | ||
Income Taxes | ||
We account for deferred income taxes using the asset and liability method and provide income taxes for all significant temporary differences. Management determines our current tax liability as well as taxes incurred as a result of current operations, but which are deferred until future periods. Current taxes payable represent our liability related to our income tax returns for the current year, while net deferred tax expense or benefit represents the change in the balance of deferred tax assets and liabilities reported on our consolidated balance sheets. Management estimates the changes in both deferred tax assets and liabilities using the basis of assets and liabilities for financial reporting purposes and for enacted rates that management estimates will be in effect when the differences reverse. Further, management makes certain assumptions about the timing of temporary tax differences for the differing treatments of certain items for tax and accounting purposes or whether such differences are permanent. The final determination of our tax liability involves the interpretation of local tax laws, tax treaties, and related authorities in each jurisdiction as well as the significant use of estimates and assumptions regarding the scope of future operations and results achieved and the timing and nature of income earned and expenditures incurred. | ||
We establish valuation allowances to reduce deferred tax assets if we determine that it is more likely than not (e.g., a likelihood of more than 50%) that some portion or all of the deferred tax assets will not be realized in future periods. To assess the likelihood, we use estimates and judgment regarding our future taxable income, as well as the jurisdiction in which this taxable income is generated, to determine whether a valuation allowance is required. Such evidence can include our current financial position, our results of operations, both actual and forecasted results, the reversal of deferred tax liabilities, and tax planning strategies as well as the current and forecasted business economics of our industry. Additionally, we record uncertain tax positions at their net recognizable amount, based on the amount that management deems is more likely than not to be sustained upon ultimate settlement with the tax authorities in the domestic and international tax jurisdictions in which we operate. See “Note 13. Income Taxes” for further discussion of accounting for income taxes, changes in our valuation allowance, components of our tax rate reconciliation and realization of loss carryforwards. | ||
Earnings Per Share | ||
Basic earnings per common share is determined by dividing net earnings applicable to common stock by the weighted average number of common shares actually outstanding during the period. Diluted earnings per common share is based on the increased number of shares that would be outstanding assuming conversion of dilutive outstanding convertible securities using the treasury stock and “as if converted” methods. See “Note 10. Earnings Per Share.” | ||
Share-Based Compensation | ||
In the past, we have issued stock options, shares of restricted common stock, restricted stock units, stock appreciation rights (“SARs”), phantom shares and performance units to our employees as part of those employees’ compensation and as a retention tool. For our options, restricted shares and SARs, we calculate the fair value of the awards on the grant date and amortize that fair value to compensation expense ratably over the vesting period of the award, net of estimated and actual forfeitures. The fair value of our stock option and SAR awards are estimated using a Black-Scholes fair value model. The valuation of our stock options and SARs requires us to estimate the expected term of award, which we estimated using the simplified method, as we did not have sufficient historical exercise information because of past legal restrictions on the exercise of our stock options. Additionally, the valuation of our stock option and SARs awards is also dependent on our historical stock price volatility, which we calculate using a lookback period equivalent to the expected term of the award, a risk-free interest rate, and an estimate of future forfeitures. The grant-date fair value of our restricted stock awards is determined using our stock price on the grant date. Our phantom shares and performance units are treated as “liability” awards and carried at fair value at each balance sheet date, with changes in fair value recorded as a component of compensation expense and an offsetting liability on our consolidated balance sheet. We record share-based compensation as a component of general and administrative and direct operating expense for the applicable individual. See “Note 19. Share-Based Compensation.” | ||
Foreign Currency Gains and Losses | ||
With respect to our operations in Russia, where the local currency is the functional currency, assets and liabilities are translated at the rates of exchange on the balance sheet date, while income and expense items are translated at average rates of exchange during the period. The resulting gains or losses arising from the translation of accounts from the functional currency to the U.S. dollar are included as a separate component of stockholders’ equity in other comprehensive income until a partial or complete sale or liquidation of our net investment in the foreign entity. As of December 31, 2011, the functional currency for Mexico, Russia and Canada was the local currency and the functional currency for Colombia and the Middle East was the U. S. dollar. Due to significant changes in economic facts and circumstances, the functional currency for Mexico and Canada was changed to the U.S. dollar effective January 1, 2012. See “Note 16. Accumulated Other Comprehensive Loss.” | ||
From time to time our foreign subsidiaries may enter into transactions that are denominated in currencies other than their functional currency. These transactions are initially recorded in the functional currency of that subsidiary based on the applicable exchange rate in effect on the date of the transaction. At the end of each month, these transactions are remeasured to an equivalent amount of the functional currency based on the applicable exchange rates in effect at that time. Any adjustment required to remeasure a transaction to the equivalent amount of the functional currency at the end of the month is recorded in the income or loss of the foreign subsidiary as a component of other income, net. | ||
Comprehensive Income | ||
We display comprehensive income (loss) and its components in our financial statements, and we classify items of comprehensive income by their nature in our financial statements and display the accumulated balance of other comprehensive income separately in our stockholders’ equity. | ||
Leases | ||
We lease real property and equipment through various leasing arrangements. When we enter into a leasing arrangement, we analyze the terms of the arrangement to determine whether the lease should be accounted for as an operating lease or a capital lease. | ||
We periodically incur costs to improve the assets that we lease under these arrangements. If the value of the leasehold improvements exceeds our threshold for capitalization, we record the improvement as a component of our property and equipment and amortize the improvement over the useful life of the improvement or the lease term, whichever is shorter. | ||
Certain of our operating lease agreements are structured to include scheduled and specified rent increases over the term of the lease agreement. These increases may be the result of an inducement or “rent holiday” conveyed to us early in the lease, or are included to reflect the anticipated effects of inflation. We recognize scheduled and specified rent increases on a straight-line basis over the term of the lease agreement. In addition, certain of our operating lease agreements contain incentives to induce us to enter into the lease agreement, such as up-front cash payments to us, payment by the lessor of our costs, such as moving expenses, or the assumption by the lessor of our pre-existing lease agreements with third parties. Any payments made to us or on our behalf represent incentives that we consider to be a reduction of our rent expense, and are recognized on a straight-line basis over the term of the lease agreement. | ||
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 Contracts 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. |
ACQUISITIONS_Notes
ACQUISITIONS (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS |
2013 Acquisition of Noncontrolling Interests | |
Geostream. On October 31, 2008, we acquired a 26% interest in OOO Geostream Services Group (“Geostream”) for $17.4 million. Geostream is a limited liability company incorporated in the Russian Federation that provides a wide range of drilling, workover and reservoir engineering services. 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 was accounted for as an equity transaction. Therefore, our acquisition of the noncontrolling 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 (the “Joint Venture”) and the acquisition of the underlying business for $5.1 million. The acquisition of the 51% noncontrolling interest in AlMansoori Key Energy Services, LLC was accounted for as an equity transaction and therefore did not result in a gain or loss. During the fourth quarter the Joint Venture was formally liquidated and $5.1 million was transferred to AlMansoori. |
DISCONTINUED_OPERATIONS_Notes
DISCONTINUED OPERATIONS (Notes) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ||||
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS | |||
In September 2012, we completed the sale of our Argentina operations for approximately $12.5 million, net of transaction costs. The $12.5 million net proceeds from the sale of Argentina operations included $2.0 million received in cash and the balance in notes receivable which was comprised of non-interest bearing notes. These notes are included in "other current assets" in our condensed consolidated balance sheets. | ||||
In connection with the sale, we recognized a total loss of $85.8 million, which includes the noncash impairment charge of $41.5 million recorded in the first quarter of 2012, and a write-off of $51.9 million cumulative translation adjustment previously recorded in accumulated other comprehensive loss during the third quarter of 2012. We are reporting the results of our Argentina operations in discontinued operations for 2012. | ||||
The following table presents the results of operations for the Argentina business sold in this transaction for the year ended December 31, 2012 (in thousands): | ||||
REVENUES | $ | 75,815 | ||
COSTS AND EXPENSES: | ||||
Direct operating expenses | 72,664 | |||
Depreciation and amortization expense | 143 | |||
General and administrative expenses | 11,232 | |||
Asset retirements and impairments | 85,755 | |||
Operating loss | (93,979 | ) | ||
Interest expense, net of amounts capitalized | 168 | |||
Other expense, net | 3,725 | |||
Loss before taxes | (97,872 | ) | ||
Income tax benefit | 4,304 | |||
Net loss | $ | (93,568 | ) |
SEVERANCE_CONTRACT_TERMINATION
SEVERANCE, CONTRACT TERMINATION AND MOBILIZATION COSTS (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |
Severance, Contract Termination and Mobilization Costs | SEVERANCE, CONTRACT TERMINATION AND MOBILIZATION COSTS |
In the second quarter of 2013, we implemented a significant restructuring of our Fluid Management Services and our corporate cost structure to better align them with current market conditions. As a result of this restructuring, we recognized approximately $6.3 million of severance expenses in the second quarter of 2013. The severance costs were based on obligations under our existing severance agreements. Furthermore, we recognized lease cancellation fees of $1.9 million primarily related to our Fluid Management Services. Additionally, in our international business, due to customer spending reductions in Mexico, we began redeploying idle rigs from the North Region of Mexico to higher demand markets, incurring mobilization cost of $2.3 million. These costs are reflected in our consolidated statements of operations and include $8.3 million of direct operating expenses and $2.2 million of general and administrative expenses. On a segment basis, $7.2 million, $2.3 million, $0.3 million and $0.7 million is associated with our International, Fluid Management Services, U.S. Rig Services and Functional Support segments, respectively. The restructuring activities were implemented in the second quarter of 2013 and were completed in the fourth quarter of 2013. |
OTHER_BALANCE_SHEET_INFORMATIO
OTHER BALANCE SHEET INFORMATION (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Balance Sheet Disclosures [Abstract] | ||||||||
OTHER BALANCE SHEET INFORMATION | OTHER BALANCE SHEET INFORMATION | |||||||
The table below presents comparative detailed information about other current assets at December 31, 2014 and 2013: | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(in thousands) | ||||||||
Other current assets: | ||||||||
Current deferred tax assets | $ | 11,823 | $ | 11,707 | ||||
Prepaid current assets | 28,218 | 28,435 | ||||||
Reinsurance receivable | 9,200 | 9,113 | ||||||
VAT asset | 18,889 | 21,683 | ||||||
Other | 18,724 | 25,608 | ||||||
Total | $ | 86,854 | $ | 96,546 | ||||
The table below presents comparative detailed information about other non-current assets at December 31, 2014 and 2013: | ||||||||
31-Dec-14 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Other non-current assets: | ||||||||
Deferred tax assets | $ | 35,238 | $ | 22,313 | ||||
Reinsurance receivable | 9,537 | 9,397 | ||||||
Deposits | 10,125 | 1,533 | ||||||
Equity method investments | 987 | 962 | ||||||
Other | 584 | 1,548 | ||||||
Total | $ | 56,471 | $ | 35,753 | ||||
The table below presents comparative detailed information about other current liabilities at December 31, 2014 and 2013: | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(in thousands) | ||||||||
Other current liabilities: | ||||||||
Accrued payroll, taxes and employee benefits | $ | 32,477 | $ | 34,956 | ||||
Accrued operating expenditures | 45,899 | 36,573 | ||||||
Income, sales, use and other taxes | 25,892 | 37,064 | ||||||
Self-insurance reserves | 31,359 | 32,129 | ||||||
Accrued interest | 15,241 | 15,285 | ||||||
Accrued insurance premiums | 7,515 | 8,049 | ||||||
Other | 5,844 | 5,889 | ||||||
Total | $ | 164,227 | $ | 169,945 | ||||
The table below presents comparative detailed information about other non-current liabilities at December 31, 2014 and 2013: | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(in thousands) | ||||||||
Other non-current accrued liabilities: | ||||||||
Asset retirement obligations | $ | 12,525 | $ | 11,999 | ||||
Environmental liabilities | 5,730 | 6,176 | ||||||
Accrued rent | 263 | 853 | ||||||
Accrued sales, use and other taxes | 5,411 | 5,552 | ||||||
Other | 3,138 | 1,075 | ||||||
Total | $ | 27,067 | $ | 25,655 | ||||
OTHER_INCOME_NET_Notes
OTHER INCOME, NET (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
OTHER INCOME, NET | OTHER EXPENSE (INCOME), NET | |||||||||||
The table below presents comparative detailed information about our other income and expense from continuing operations for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Interest income | $ | (82 | ) | $ | (220 | ) | $ | (46 | ) | |||
Foreign exchange (gain) loss | 3,733 | 834 | (4,726 | ) | ||||||||
Other, net | (2,642 | ) | (1,417 | ) | (1,877 | ) | ||||||
Total | $ | 1,009 | $ | (803 | ) | $ | (6,649 | ) | ||||
ALLOWANCE_FOR_DOUBTFUL_ACCOUNT
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Notes) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Valuation Allowance [Abstract] | ||||||||||||||||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS | ALLOWANCE FOR DOUBTFUL ACCOUNTS | |||||||||||||||||||
The table below presents a rollforward of our allowance for doubtful accounts for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||
Additions | ||||||||||||||||||||
Balance at | Charged to | Charged to | Deductions | Balance at | ||||||||||||||||
Beginning | Expense | Other | End of | |||||||||||||||||
of Period | Accounts | Period | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
As of December 31, 2014 | $ | 766 | $ | 2,710 | $ | — | $ | (551 | ) | $ | 2,925 | |||||||||
As of December 31, 2013 | 2,860 | 634 | — | (2,728 | ) | 766 | ||||||||||||||
As of December 31, 2012 | 8,013 | 1,299 | 6 | (6,458 | ) | 2,860 | ||||||||||||||
PROPERTY_AND_EQUIPMENT_Notes
PROPERTY AND EQUIPMENT (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT | |||||||
Property and equipment consists of the following: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Major classes of property and equipment: | ||||||||
Oilfield service equipment | $ | 1,927,353 | $ | 1,960,208 | ||||
Disposal wells | 88,465 | 87,681 | ||||||
Motor vehicles | 288,523 | 304,244 | ||||||
Furniture and equipment | 132,617 | 122,218 | ||||||
Buildings and land | 91,553 | 86,085 | ||||||
Work in progress | 27,004 | 46,302 | ||||||
Gross property and equipment | 2,555,515 | 2,606,738 | ||||||
Accumulated depreciation | (1,320,257 | ) | (1,241,092 | ) | ||||
Net property and equipment | $ | 1,235,258 | $ | 1,365,646 | ||||
Interest is capitalized on the average amount of accumulated expenditures for major capital projects under construction using an effective interest rate based on related debt until the underlying assets are placed into service. Capitalized interest for the years ended December 31, 2014, 2013 and 2012 was zero, $0.6 million, and $1.3 million, respectively. As of December 31, 2014 and 2013, we have no capital lease obligations. | ||||||||
Depreciation of assets held under capital leases was zero, $1.9 million, and $2.8 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is included in depreciation and amortization expense in the accompanying consolidated statements of operations. | ||||||||
The decline in market value of our common stock in comparison to the carrying value of our assets during the third quarter of 2014 was determined to be a triggering event. This triggering event required us to perform step one of the goodwill impairment test to identify potential impairment. Our step one testing indicated potential impairment in our Fishing and Rental Services segment which required us to perform step two of the goodwill impairment test to determine the amount of impairment, if any. Our preliminary step two testing performed during the third quarter of 2014, using a discounted cash flow model to determine fair value, concluded that certain assets, primarily frac stack and well testing assets, were impaired. As a result, we recorded an estimated pre-tax charge of $60.8 million in the third quarter of 2014. Our preliminary step two testing also indicated no impairment of goodwill in our Fishing and Rental Services segment. During the fourth quarter of 2014 we finalized our step two testing, preliminarily performed in the third quarter of 2014, based on additional analysis performed by outside consultants. As a result, we recorded an additional pre-tax asset impairment charge of $1.3 million in the fourth quarter of 2014. | ||||||||
During the fourth quarter the market value of our stock continued to decline and we determined it was necessary to perform the first step of the goodwill impairment test for our U.S. Rig Services, Coiled Tubing Services, Fishing and Rental Services and Fluid Management Services segments. The results of our step one analysis indicated potential impairment in our Coiled Tubing Services segment. Step two of the goodwill impairment testing for the Coiled Tubing Services segment was performed preliminarily during the fourth quarter of 2014 and our analysis concluded that that there was no impairment of goodwill. In addition, our analysis concluded that there was no impairment of fixed assets. Step two testing for our Coiled Tubing Services segment will be concluded in the first quarter of 2015 and any adjustment to the amount recorded, which could differ materially, will be recorded in the first quarter of 2015. There were no asset impairment charges for the years ended 2013 and 2012. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS (Notes) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||
The changes in the carrying amount of our goodwill for the years ended December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||||||
U.S. Rig Services | Fluid Management Services | Coiled Tubing Services | Fishing and Rental Services | International | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
31-Dec-12 | $ | 297,719 | $ | 24,479 | $ | 101,795 | $ | 173,463 | $ | 29,025 | $ | 626,481 | ||||||||||||
Impact of foreign currency translation | — | — | — | — | (1,606 | ) | (1,606 | ) | ||||||||||||||||
31-Dec-13 | 297,719 | 24,479 | 101,795 | 173,463 | 27,419 | 624,875 | ||||||||||||||||||
Goodwill impairment | — | — | (19,100 | ) | — | (22,437 | ) | (41,537 | ) | |||||||||||||||
Impact of foreign currency translation | — | — | — | — | (599 | ) | (599 | ) | ||||||||||||||||
31-Dec-14 | $ | 297,719 | $ | 24,479 | $ | 82,695 | $ | 173,463 | $ | 4,383 | $ | 582,739 | ||||||||||||
The components of our other intangible assets as of December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Noncompete agreements: | ||||||||||||||||||||||||
Gross carrying value | $ | 2,269 | $ | 9,332 | ||||||||||||||||||||
Accumulated amortization | (1,710 | ) | (7,104 | ) | ||||||||||||||||||||
Net carrying value | $ | 559 | $ | 2,228 | ||||||||||||||||||||
Patents, trademarks and tradenames: | ||||||||||||||||||||||||
Gross carrying value | $ | 3,106 | $ | 14,039 | ||||||||||||||||||||
Accumulated amortization | (263 | ) | (223 | ) | ||||||||||||||||||||
Net carrying value | $ | 2,843 | $ | 13,816 | ||||||||||||||||||||
Customer relationships and contracts: | ||||||||||||||||||||||||
Gross carrying value | $ | 59,045 | $ | 100,271 | ||||||||||||||||||||
Accumulated amortization | (52,303 | ) | (78,926 | ) | ||||||||||||||||||||
Net carrying value | $ | 6,742 | $ | 21,345 | ||||||||||||||||||||
Developed technology: | ||||||||||||||||||||||||
Gross carrying value | $ | 8,494 | $ | 7,583 | ||||||||||||||||||||
Accumulated amortization | (4,138 | ) | (3,826 | ) | ||||||||||||||||||||
Net carrying value | $ | 4,356 | $ | 3,757 | ||||||||||||||||||||
Customer backlog: | ||||||||||||||||||||||||
Gross carrying value | $ | 779 | $ | 779 | ||||||||||||||||||||
Accumulated amortization | (779 | ) | (779 | ) | ||||||||||||||||||||
Net carrying value | $ | — | $ | — | ||||||||||||||||||||
Total: | ||||||||||||||||||||||||
Gross carrying value | $ | 73,693 | $ | 132,004 | ||||||||||||||||||||
Accumulated amortization | (59,193 | ) | (90,858 | ) | ||||||||||||||||||||
Net carrying value | $ | 14,500 | $ | 41,146 | ||||||||||||||||||||
Amortization expense for our intangible assets with determinable lives was as follows: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Noncompete agreements | $ | 1,671 | $ | 2,082 | $ | 3,827 | ||||||||||||||||||
Patents and trademarks | 40 | 40 | 309 | |||||||||||||||||||||
Customer relationships and contracts | 6,749 | 16,726 | 18,941 | |||||||||||||||||||||
Developed technology | 316 | 221 | 221 | |||||||||||||||||||||
Total intangible asset amortization expense | $ | 8,776 | $ | 19,069 | $ | 23,298 | ||||||||||||||||||
Of our intangible assets at December 31, 2014, $2.7 million are indefinite-lived tradenames and patents which are not subject to amortization. These tradenames are tested for impairment annually using a relief from royalty method. 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) | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Noncompete agreements | 1.8 | $ | 309 | $ | 250 | $ | — | $ | — | $ | — | |||||||||||||
Trademarks | 3.4 | 40 | 40 | 40 | 17 | — | ||||||||||||||||||
Customer relationships and contracts | 5 | 2,473 | 1,875 | 1,392 | 431 | 341 | ||||||||||||||||||
Developed technology | 16 | 400 | 400 | 400 | 400 | 324 | ||||||||||||||||||
Total expected intangible asset amortization expense | $ | 3,222 | $ | 2,565 | $ | 1,832 | $ | 848 | $ | 665 | ||||||||||||||
Certain of our 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. | ||||||||||||||||||||||||
We perform an analysis of goodwill impairment on an annual basis unless an event occurs that triggers additional interim testing. During 2014 we identified several triggering events requiring us to perform testing for possible goodwill impairment. | ||||||||||||||||||||||||
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 was fully impaired, and that $6.3 million of Russia's tradename intangible assets was impaired as well. We concluded that there was no impairment to Russia's other long-lived assets. | ||||||||||||||||||||||||
The decline in market value of our common stock in comparison to the carrying value of our assets during the third quarter of 2014 was determined to be a triggering event requiring us to perform testing for possible goodwill impairment in our U.S. Rig Services, Coiled Tubing Services, Fishing and Rental Services and Fluid Management Services segments. Our step one testing indicated there may be impairment in our Fishing and Rental Services segment. No impairment was indicated in our other U.S. segments. Step two of the goodwill impairment testing for the Fishing and Rental Service segment was performed preliminarily during the third quarter of 2014 and, while our preliminary analysis concluded that that there was no impairment of goodwill, it did indicate that there was an impairment of fixed assets. During the fourth quarter of 2014 we engaged outside consultants to finalize our step two testing. The additional analysis preformed by our consultants confirmed that there was no impairment of goodwill. The analysis did conclude that $7.7 million of customer relationship and $3.6 million of tradename intangible assets in our Fishing and Rental Services segment was impaired. | ||||||||||||||||||||||||
During the fourth quarter we performed our annual qualitative analysis of goodwill impairment as of October 1, 2014. Based on this analysis we determined our Canadian reporting unit, which is included in our International reporting segment, did not have an indication of impairment. However, the market value of our stock continued to decline during the fourth quarter and we determined it was necessary to perform the first step of the goodwill impairment test for our U.S. Rig Services, Coiled Tubing Services, Fishing and Rental Services and Fluid Management Services segments. Based on the results of our step one analysis, the fair value of our U.S. Rig Services, Fluid Management Services and Fishing and Rental Services segments exceeded their carrying values, but indicated potential impairment in our Coiled Tubing Services segment. Step two of the goodwill impairment testing for the Coiled Tubing Services segment was performed preliminarily during the fourth quarter of 2014 and our analysis concluded that $19.1 million of goodwill was impaired and recorded in the fourth quarter. Our analysis concluded that there was no impairment of fixed assets. Step two testing will be concluded in the first quarter of 2015 and any adjustment to the amount recorded, which could differ materially, will be recorded in the first quarter of 2015. See “Note 8. Property and Equipment,” for further discussion. |
EARNINGS_PER_SHARE_Notes
EARNINGS PER SHARE (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE | |||||||||||
The following table presents our basic and diluted earnings per share (“EPS”) for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands, except per share amounts) | ||||||||||||
Basic EPS Calculation: | ||||||||||||
Numerator | ||||||||||||
Income (loss) from continuing operations attributable to Key | $ | (178,628 | ) | $ | (21,768 | ) | $ | 101,190 | ||||
Loss from discontinued operations, net of tax | — | — | (93,568 | ) | ||||||||
Income (loss) attributable to Key | $ | (178,628 | ) | $ | (21,768 | ) | $ | 7,622 | ||||
Denominator | ||||||||||||
Weighted average shares outstanding | 153,371 | 152,271 | 151,106 | |||||||||
Basic earnings (loss) per share from continuing operations attributable to Key | $ | (1.16 | ) | $ | (0.14 | ) | $ | 0.67 | ||||
Basic loss per share from discontinued operations | — | — | (0.62 | ) | ||||||||
Basic earnings (loss) per share attributable to Key | $ | (1.16 | ) | $ | (0.14 | ) | $ | 0.05 | ||||
Diluted EPS Calculation: | ||||||||||||
Numerator | ||||||||||||
Income (loss) from continuing operations attributable to Key | $ | (178,628 | ) | $ | (21,768 | ) | $ | 101,190 | ||||
Loss from discontinued operations, net of tax | — | — | (93,568 | ) | ||||||||
Income (loss) attributable to Key | $ | (178,628 | ) | $ | (21,768 | ) | $ | 7,622 | ||||
Denominator | ||||||||||||
Weighted average shares outstanding | 153,371 | 152,271 | 151,106 | |||||||||
Stock options | — | — | 19 | |||||||||
Total | 153,371 | 152,271 | 151,125 | |||||||||
Diluted earnings (loss) per share from continuing operations attributable to Key | $ | (1.16 | ) | $ | (0.14 | ) | $ | 0.67 | ||||
Diluted loss per share from discontinued operations | — | — | (0.62 | ) | ||||||||
Diluted earnings (loss) per share attributable to Key | $ | (1.16 | ) | $ | (0.14 | ) | $ | 0.05 | ||||
Stock options, warrants and SARs are included in the computation of diluted earnings 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 calculation for the years ended December 31, 2014, 2013, and 2012 exclude the potential exercise of 1.4 million, 1.7 million and 2.0 million stock options, respectively, and 0.3 million, 0.3 million and 0.4 million SARs, respectively, because the effects of such exercises on earnings per share would be anti-dilutive. | ||||||||||||
There have been no material changes in share amounts subsequent to the balance sheet date that would have a material impact on the earnings per share calculation for the year ended December 31, 2014. However, we issued 0.9 million shares of restricted stock on January 30, 2015. |
ASSET_RETIREMENT_OBLIGATIONS_N
ASSET RETIREMENT OBLIGATIONS (Notes) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ||||
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS | |||
In connection with our well servicing activities, we operate a number of SWD facilities. Our operations involve the transportation, handling and disposal of fluids in our SWD facilities that are by-products of the drilling process. SWD facilities used in connection with our fluid hauling operations are subject to future costs associated with the retirement of these properties. As a result, we have incurred costs associated with the proper storage and disposal of these materials. | ||||
Annual accretion of the assets associated with the asset retirement obligations was $0.6 million for the years ended December 31, 2014, 2013 and 2012. A summary of changes in our asset retirement obligations is as follows (in thousands): | ||||
Balance at December 31, 2012 | $ | 11,659 | ||
Additions | 174 | |||
Costs incurred | (135 | ) | ||
Accretion expense | 604 | |||
Disposals | (303 | ) | ||
Balance at December 31, 2013 | 11,999 | |||
Additions | — | |||
Costs incurred | (79 | ) | ||
Accretion expense | 605 | |||
Disposals | — | |||
Balance at December 31, 2014 | $ | 12,525 | ||
ESTIMATED_FAIR_VALUE_OF_FINANC
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Notes) | 12 Months Ended | |||||||||||||||
Dec. 31, 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 December 31, 2014 and 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. | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Notes receivable — Argentina operations sale | $ | 8,300 | $ | 8,300 | $ | 12,355 | $ | 12,355 | ||||||||
Financial liabilities: | ||||||||||||||||
6.75% Senior Notes due 2021 | $ | 675,000 | $ | 413,438 | $ | 675,000 | $ | 690,390 | ||||||||
8.375% Senior Notes due 2014 | — | — | 3,573 | 3,627 | ||||||||||||
Credit Facility revolving loans | 70,000 | 70,000 | 85,000 | 85,000 | ||||||||||||
Notes receivable — Argentina operations sale. The fair value of these notes 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 is based upon the quoted market prices for those securities as of the dates indicated. The carrying value of these notes as of December 31, 2014 was $675.0 million, and the fair value was $413.4 million (61.3% 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 the variable interest rates of these loans approximate current market 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 December 31, 2014 were $70.0 million. |
INCOME_TAXES_Notes
INCOME TAXES (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
INCOME TAXES | INCOME TAXES | |||||||||||
The components of our income tax expense are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Current income tax expense: | ||||||||||||
Federal and state | $ | (755 | ) | $ | (8,515 | ) | $ | (16,165 | ) | |||
Foreign | (1,684 | ) | (350 | ) | (5,189 | ) | ||||||
(2,439 | ) | (8,865 | ) | (21,354 | ) | |||||||
Deferred income tax (expense) benefit: | ||||||||||||
Federal and state | 69,508 | (4,870 | ) | (32,729 | ) | |||||||
Foreign | 13,414 | 16,799 | (3,269 | ) | ||||||||
82,922 | 11,929 | (35,998 | ) | |||||||||
Total income tax (expense) benefit | $ | 80,483 | $ | 3,064 | $ | (57,352 | ) | |||||
The sources of our income or loss from continuing operations before income taxes and noncontrolling interest were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Domestic income (loss) | $ | (202,973 | ) | $ | 29,086 | $ | 129,865 | |||||
Foreign income (loss) | (56,138 | ) | (53,323 | ) | 30,164 | |||||||
Total income (loss) | $ | (259,111 | ) | $ | (24,237 | ) | $ | 160,029 | ||||
We made federal income tax payments of zero, $30.0 million and $5.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. We made state income tax payments of $1.6 million, $2.9 million and $2.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. We made foreign tax payments of $1.1 million, $2.3 million and $5.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. For the years ended December 31, 2014, 2013 and 2012, tax benefit (expense) allocated to stockholders’ equity for compensation expense for income tax purposes in excess of amounts recognized for financial reporting purposes was $1.2 million, $1.8 million and $4.1 million, respectively. In addition, we received federal income tax refunds of $11.9 million, $25.1 million and $16.7 million during the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Income tax expense differs from amounts computed by applying the statutory federal rate as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income tax computed at Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes | 1.4 | % | (6.0 | )% | 2.5 | % | ||||||
Meals and entertainment | (0.7 | )% | (7.7 | )% | — | % | ||||||
Foreign rate difference | (0.7 | )% | (8.0 | )% | — | % | ||||||
Non-deductible goodwill | (3.9 | )% | — | % | — | % | ||||||
Other | — | % | (0.7 | )% | (1.7 | )% | ||||||
Effective income tax rate | 31.1 | % | 12.6 | % | 35.8 | % | ||||||
As of December 31, 2014 and 2013, our deferred tax assets and liabilities consisted of the following: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss and tax credit carryforwards | $ | 64,107 | $ | 36,860 | ||||||||
Capital loss carryforwards | 21,417 | 21,417 | ||||||||||
Self-insurance reserves | 15,751 | 16,217 | ||||||||||
Allowance for doubtful accounts | 1,046 | 199 | ||||||||||
Accrued liabilities | 6,283 | 8,981 | ||||||||||
Share-based compensation | 7,254 | 7,759 | ||||||||||
Other | 869 | (392 | ) | |||||||||
Total deferred tax assets | 116,727 | 91,041 | ||||||||||
Valuation allowance for deferred tax assets | (22,247 | ) | (22,248 | ) | ||||||||
Net deferred tax assets | 94,480 | 68,793 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (225,136 | ) | (269,167 | ) | ||||||||
Intangible assets | (46,543 | ) | (48,807 | ) | ||||||||
Other | (4,134 | ) | (1,252 | ) | ||||||||
Total deferred tax liabilities | (275,813 | ) | (319,226 | ) | ||||||||
Net deferred tax liability, net of valuation allowance | $ | (181,333 | ) | $ | (250,433 | ) | ||||||
The December 31, 2014 net deferred tax liability balance is comprised of $228.4 million long-term deferred tax liability, less $11.8 million current deferred tax asset and $35.2 million long-term deferred tax asset. The December 31, 2013 net deferred liability balance is comprised of $284.5 million long-term deferred tax liability, less $11.7 million current deferred tax asset and $22.3 million long-term deferred tax asset. | ||||||||||||
In recording deferred income tax assets, we consider whether it is more likely than not that some portion or all of the deferred income tax assets will be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those deferred income tax assets would be deductible. We consider the scheduled reversal of deferred income tax liabilities and projected future taxable income for this determination. To fully realize the deferred income tax assets related to our federal net operating loss carryforwards that do not have a valuation allowance due to Section 382 limitations, we would need to generate future federal taxable income of approximately $0.1 million over the next four years. With certain exceptions noted below, we believe that after considering all the available objective evidence, both positive and negative, historical and prospective, with greater weight given to the historical evidence, it is more likely than not that these assets will be realized. | ||||||||||||
We estimate that as of December 31, 2014, 2013 and 2012, we have available $50.7 million, $2.4 million and $2.8 million, respectively, of federal net operating loss carryforwards. Approximately $2.4 million of our net operating losses as of December 31, 2014 are subject to a $5,000 annual Section 382 limitation and expire in 2016 through 2018. The gross deferred tax asset associated with our federal net operating loss carryforward at December 31, 2014 is $17.8 million. Due to annual limitations under Sections 382 and 383, management believes that we will not be able to utilize all available carryforwards prior to their ultimate expiration. At December 31, 2014 and 2013, we had a valuation allowance of $0.8 million related to the deferred tax asset associated with our remaining federal net operating loss carryforwards that will expire before utilization due to Section 382 limitations. | ||||||||||||
We estimate that as of December 31, 2014, 2013 and 2012, we have available approximately $102.0 million, $64.9 million and $44.4 million, respectively, of state net operating loss carryforwards that will expire between 2015 and 2034. The deferred tax asset associated with our remaining state net operating loss carryforwards at December 31, 2014 is $5.2 million, net of federal tax benefit. Management believes that it is more likely than not that we will be able to utilize all available state carryforwards prior to their ultimate expiration. | ||||||||||||
We estimate that as of December 31, 2014, 2013 and 2012, we have available approximately $177.5 million, $117.6 million, and $34.4 million, respectively, of foreign net operating loss carryforwards that will expire between 2020 and 2030. The gross deferred tax asset associated with our foreign net operating loss carryforwards at December 31, 2014 is $50.4 million. Management believes that it is more likely than not that we will be able to utilize the net operating loss carryforwards prior to their ultimate expiration in all foreign jurisdictions in which we currently operate. | ||||||||||||
The Company recognized a valuation allowance of $21.4 million as of December 31, 2014 against the deferred tax asset associated with the capital loss carryforward. The capital loss carryforward will expire in 2017. | ||||||||||||
We did not provide for U.S. income taxes or withholding taxes on unremitted earnings of our Mexico, Canada, Colombia and the Middle East subsidiaries, as these earnings are considered permanently reinvested because the cash flow generated by these businesses is needed to fund additional equipment and working capital requirements in these jurisdictions. Furthermore, we did not provide for U.S. income taxes on unremitted earnings of our other foreign subsidiaries as our tax basis in these foreign subsidiaries exceeded the book basis. | ||||||||||||
We file income tax returns in the United States federal jurisdiction and various states and foreign jurisdictions. In 2014 the Internal Revenue Service (“IRS”) concluded their audit of our returns for the tax years ended December 31, 2010, 2011 and 2012 with no material changes. Our other significant filings, which are in Mexico, are currently being examined for tax years 2009 and 2010. | ||||||||||||
As of December 31, 2014, 2013 and 2012, we had $1.0 million, $0.9 million and $1.2 million, respectively, of unrecognized tax benefits which, if recognized, would impact our effective tax rate. We have accrued $0.1 million, $0.4 million and $0.3 million for the payment of interest and penalties as of December 31, 2014, 2013 and 2012, respectively. We believe that it is reasonably possible that $0.6 million of our currently remaining unrecognized tax positions, each of which are individually insignificant, may be recognized by the end of 2015 as a result of a lapse of the statute of limitations and settlement of an open audit. | ||||||||||||
We recognized a net tax benefit of less than $0.1 million in 2014 for expirations of statutes of limitations. | ||||||||||||
The following table presents the gross activity during 2014 and 2013 related to our liabilities for uncertain tax positions (in thousands): | ||||||||||||
Balance at January 1, 2013 | $ | 1,593 | ||||||||||
Additions based on tax positions related to the current year | 251 | |||||||||||
Reductions for tax positions from prior years | (473 | ) | ||||||||||
Settlements | — | |||||||||||
Balance at December 31, 2013 | 1,371 | |||||||||||
Additions based on tax positions related to the current year | 108 | |||||||||||
Reductions for tax positions from prior years | (30 | ) | ||||||||||
Settlements | — | |||||||||||
Balance at December 31, 2014 | 1,449 | |||||||||||
Tax Legislative Changes | ||||||||||||
Tax Increase Prevention Act of 2014. On December 19, 2014, H.R. 5771, Tax Increase Prevention Act of 2014, was signed into law. The new law retroactively extends for one year, until the end of 2014, most of the provisions of the American Taxpayer Relief Act that expired at the end of 2013, including the first-year bonus depreciation deduction of 50% of the adjusted basis of qualified property acquired and placed in service during 2014. | ||||||||||||
On September 13, 2013, the United States Treasury Department and the IRS issued final regulations providing comprehensive guidance on the tax treatment of costs incurred to acquire, repair, or improve tangible property. The final regulations are generally effective for taxable years beginning on or after January 1, 2014. On January 16, 2015 the IRS issued procedural guidance for taxpayers to follow with respect to filing applications for changes in accounting methods. This guidance includes the method change procedures that taxpayers must follow for adopting the tangible property regulations. We are currently assessing the future impacts of these regulations, but do not anticipate a material impact on our financial condition, results of operations or cash flows. |
LONGTERM_DEBT_Notes
LONG-TERM DEBT (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT | |||||||||||
The components of our long-term debt are as follows: | ||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||
(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 | 70,000 | 85,000 | ||||||||||
Net unamortized premium on debt | 3,426 | 3,981 | ||||||||||
Total debt | 748,426 | 767,554 | ||||||||||
Less current portion | — | (3,573 | ) | |||||||||
Total long-term debt and capital leases | $ | 748,426 | $ | 763,981 | ||||||||
8.375% Senior Notes due 2014 | ||||||||||||
On November 29, 2007, we issued $425.0 million aggregate principal amount of 8.375% Senior Notes due 2014 (the “2014 Notes”). In March of 2011, we repurchased $421.4 million aggregate principal amount of our 2014 Notes. On February 25, 2014, we redeemed the remaining $3.6 million aggregate principal amount and paid $0.1 million accrued interest of 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 offer, 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 December 31, 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 credit rating assigned to the 2021 Notes later falls below investment grade. We were in compliance with these covenants at December 31, 2014. | ||||||||||||
Senior Secured Credit Facility | ||||||||||||
On December 5, 2014, we entered into the Second Amendment to Credit Agreement (the “Amendment”) for our $400.0 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, our “2011 Credit Facility”), which is an important source of liquidity for us. The Amendment decreased the total commitments by the lenders under the credit facility from $550.0 million to $400.0 million, which will automatically be further reduced from $400.0 million to $350.0 million on July 1, 2015. Among other changes, the Amendment modified the definition of earnings before interest, taxes, depreciation and amortization (as calculated pursuant to the terms of our 2011 Credit Facility, “EBITDA”) to allow for the add back of (i) all expenses incurred during the second and third quarters of 2014 related to the Company’s compliance with the FCPA and (ii) up to $50.0 million of additional expenses incurred in relation to the Company’s FCPA compliance commencing in the fourth quarter of 2014. Our 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. Our 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 our 2011 Credit Facility, with any such increases being subject to compliance with the restrictive covenants in our 2011 Credit Facility and in the Indenture, as well as lender approval. | ||||||||||||
We capitalized $4.9 million of financing costs in connection with the execution of our 2011 Credit Facility and an additional $1.4 million related to the first amendment that will be amortized over the term of the debt. The $0.4 million remaining unamortized financing costs related to the first amendment was written off at the time of the second amendment. | ||||||||||||
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%. | ||||||||||||
Our 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 55%; | |||||||||||
• | our senior secured leverage ratio of senior secured funded debt to trailing four quarters EBITDA be no greater than 2.00 to 1.00; | |||||||||||
• | we maintain a consolidated interest coverage ratio of trailing four quarters EBITDA to interest expense for no less than the ratio specified for such fiscal quarter as indicated in the table below: | |||||||||||
Fiscal Quarter Ending | Ratio | |||||||||||
December 31, 2014 through September 30, 2015 | 2.75 to 1.00 | |||||||||||
December 31, 2015 and thereafter | 3.00 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; 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, our 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 our 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 our 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. | ||||||||||||
We were in compliance with these covenants at December 31, 2014. We may prepay our 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 December 31, 2014, we had borrowings of $70.0 million under the revolving credit facility, $50.4 million of letters of credit outstanding with borrowing capacity of $279.6 million available considering covenant constraints under our 2011 Credit Facility. For the years ended December 31, 2014 and 2013, the weighted average interest rates on the outstanding borrowings under our 2011 Credit Facility was 2.97% and 2.76%, 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 December 31, 2014, $3.0 million of letters of credit were outstanding under the facility. | ||||||||||||
Long-Term Debt Principal Repayment and Interest Expense | ||||||||||||
Presented below is a schedule of the repayment requirements of long-term debt for each of the next five years and thereafter as of December 31, 2014: | ||||||||||||
Principal Amount of Long-Term Debt | ||||||||||||
(in thousands) | ||||||||||||
2015 | $ | — | ||||||||||
2016 | 70,000 | |||||||||||
2017 | — | |||||||||||
2018 | — | |||||||||||
2019 | — | |||||||||||
Thereafter | 675,000 | |||||||||||
Total long-term debt | $ | 745,000 | ||||||||||
Interest expense for the years ended December 31, 2014, 2013 and 2012 consisted of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Cash payments | $ | 49,410 | $ | 51,705 | $ | 46,767 | ||||||
Commitment and agency fees paid | 2,179 | 1,799 | 1,450 | |||||||||
Amortization of premium on debt | (556 | ) | (556 | ) | (463 | ) | ||||||
Amortization of deferred financing costs | 2,800 | 2,800 | 2,695 | |||||||||
Write-off of deferred financing costs | 362 | — | — | |||||||||
Net change in accrued interest | 32 | 63 | 4,431 | |||||||||
Capitalized interest | — | (607 | ) | (1,314 | ) | |||||||
Net interest expense | $ | 54,227 | $ | 55,204 | $ | 53,566 | ||||||
As of December 31, 2014, 2013 and 2012, the weighted average interest rates of our variable rate debt was 3.14%, 2.88% and 2.70%, respectively. | ||||||||||||
Deferred Financing Costs | ||||||||||||
A summary of deferred financing costs including capitalized costs, write-offs and amortization, for the years ended December 31, 2014 and 2013 are presented in the table below (in thousands): | ||||||||||||
Balance at December 31, 2012 | $ | 16,628 | ||||||||||
Capitalized costs | 69 | |||||||||||
Amortization | (2,800 | ) | ||||||||||
Balance at December 31, 2013 | 13,897 | |||||||||||
Amortization | (2,800 | ) | ||||||||||
Write-off | (362 | ) | ||||||||||
Balance at December 31, 2014 | $ | 10,735 | ||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Notes) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||
Operating Lease Arrangements | ||||
We lease certain property and equipment under non-cancelable operating leases that expire at various dates through 2021, with varying payment dates throughout each month. In addition, we have a number of leases scheduled to expire during 2015. | ||||
As of December 31, 2014, the future minimum lease payments under non-cancelable operating leases are as follows (in thousands): | ||||
Lease Payments | ||||
2015 | $ | 13,960 | ||
2016 | 9,006 | |||
2017 | 4,250 | |||
2018 | 2,632 | |||
2019 | 2,012 | |||
Thereafter | 3,057 | |||
Total | $ | 34,917 | ||
We are also party to a significant number of month-to-month leases that can be canceled at any time. Operating lease expense was $22.3 million, $23.9 million, and $24.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||
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 the need for 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 estimable. As of December 31, 2014, the aggregate amount of our liabilities related to litigation that are deemed probable and reasonably estimable is $0.1 million. 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. Our liabilities related to litigation matters that were deemed probable and reasonably estimable as of December 31, 2013 were $0.3 million. | ||||
Between May of 2013 and June of 2014, five lawsuits (four class actions and one enforcement action) were filed in California involving alleged violations of California's wage and hour laws. In general, the lawsuits allege failure to pay wages, including overtime and minimum wages, failure to pay final wages upon employment terminations 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. Because these cases are in relatively early stages, and we have not yet briefed class certification issues, we cannot predict the outcome of these lawsuits at this time. Accordingly, we cannot estimate any possible loss or range of loss. | ||||
In January, 2014, the SEC advised us that it is investigating possible violations of the U.S. Foreign Corrupt Practices Act (“FCPA”) involving business activities of Key’s operations in Russia. 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 FCPA and other applicable laws. A Special Committee of our Board of Directors is investigating this allegation as well as the possible violations of the FCPA involving business activities of our operations in Russia. The Special Committee’s investigations, which also include 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 investigations by 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. The Special Committee of our Board of Directors currently expects to substantially complete the fact-finding phase of its investigation by the end of March 2015. | ||||
In August 2014, two class action lawsuits were filed in the U.S. District Court, Southern District of Texas, Houston Division, individually and on behalf of all other persons similarly situated against the Company and certain officers of the Company, alleging violations of federal securities laws, specifically, violations of Section 10(b) and Rule 10(b)-5, Section 20(a) of the Securities Exchange Act of 1934. Those lawsuits were styled as follows: Sean Cady, Individually and on Behalf of All Other Persons Similarly Situated v. Key Energy Services, Inc., Richard J. Alario, and J. Marshall Dodson, No. 4:14-cv-2368, filed on August 15, 2014; and Ian W. Davidson, Individually and on Behalf of All Other Persons Similarly Situated v. Key Energy Services, Inc., Richard J. Alario, and J. Marshall Dodson, No. 4.14-cv-2403, filed on August 21, 2014. On December 11, 2014, the Court entered an order that consolidated the two lawsuits into one action, along with any future filed tag-along actions brought on behalf of purchasers of Key Energy Services, Inc. common stock. The order also appointed Inter-Local Pension Fund as the lead plaintiff in the class action and approved the law firm of Spector Roseman Kodroff & Willis, P.C. as lead counsel for the consolidated class and Kendall Law Group, LLP, as local counsel for the consolidated class. The lead plaintiff filed the consolidated amended complaint on February 13, 2015. Among other changes, the consolidated amended complaint adds Taylor M. Whichard III and Newton W. Wilson III as defendants and expands the class period to include the timeframe between September 4, 2012 and July 17, 2014. Because this case is in early stages, we cannot predict the outcome at this time. Accordingly, we cannot estimate any possible loss or range of loss. | ||||
In addition, in a letter dated September 4, 2014, a purported shareholder of the Company demanded that the Board commence an independent internal investigation into and legal proceedings against each member of the Board, a former member of the Board and certain officers of the Company for alleged violations of Maryland and/or federal law. The letter alleges that the Board and senior officers breached their fiduciary duties to the Company, including the duty of loyalty and due care, by (i) improperly accounting for goodwill, (ii) causing the Company to potentially violate the FCPA, resulting in an investigation by the SEC, (iii) causing the Company to engage in improper conduct related to the Company’s Russia operations; and (iv) making false statements regarding, and failing to properly account for, certain contracts with Pemex. As described in the letter, the purported shareholder believes that the legal proceedings should seek recovery of damages in an unspecified amount allegedly sustained by the Company. The Board of Directors has referred the demand letter to the Special Committee. We cannot predict the outcome of this matter. | ||||
Tax Audits | ||||
We are routinely the subject of audits by tax authorities, and in the past have received material assessments from tax auditors. As of December 31, 2014 and 2013, we have recorded reserves that management feels are appropriate for future potential liabilities as a result of prior audits. While we believe we have fully reserved for these assessments, the ultimate amount of settlements can vary from our estimates. | ||||
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, vehicular 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 December 31, 2014 and 2013, we have recorded $61.0 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 approximately $18.7 million and $18.5 million of insurance receivables as of December 31, 2014 and 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 December 31, 2014 and 2013, we have recorded $5.7 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. | ||||
We provide performance bonds to provide financial surety assurances for the remediation and maintenance of our SWD properties to comply with environmental protection standards. Costs for SWD properties may be mandatory (to comply with applicable laws and regulations), in the future (required to divest or cease operations), or for optimization (to improve operations, but not for safety or regulatory compliance). |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated Other Comprehensive Loss (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||
The components of our accumulated other comprehensive loss are as follows (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Foreign currency translation loss | $ | (37,280 | ) | $ | (15,414 | ) | ||
Accumulated other comprehensive loss | $ | (37,280 | ) | $ | (15,414 | ) | ||
Upon the completion of the sale of our Argentina operations on September 14, 2012, the accumulated foreign currency translation balance related to Argentina was reversed out of our accumulated other comprehensive loss and recorded as part of our 2012 loss from discontinued operations. | ||||||||
The local currency is the functional currency for our operations in Russia. As of December 31, 2014 and 2013, one U.S. dollar was equal to 56.45 and 32.77 Russian rubles, respectively. As of December 31, 2011, the functional currency for Mexico, Russia and Canada was the local currency and the functional currency for Colombia and the Middle East was the U.S. dollar. Due to significant changes in economic facts and circumstances, the functional currency for Mexico and Canada was changed to the U.S. dollar effective January 1, 2012. The cumulative translation gains and losses resulting from translating financial statements from the functional currency to U.S. dollars are included in other comprehensive income and accumulated in stockholders’ equity until a partial or complete sale or liquidation of our net investment in the entity. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS |
We maintain a 401(k) plan as part of our employee benefits package. We match 100% of employee contributions up to 4% of the employee’s salary, which vest immediately, into our 401(k) plan, subject to maximums of $10,400, $10,200 and $10,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Our matching contributions were $10.9 million, $10.4 million and $10.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. We do not offer participants the option to purchase shares of our common stock through a 401(k) plan fund. |
STOCKHOLDERS_EQUITY_Notes
STOCKHOLDERS' EQUITY (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY |
Common Stock | |
As of December 31, 2014 and 2013, we had 200,000,000 shares of common stock authorized with a par value of $0.10 per share, of which 153,557,108 shares were issued and outstanding at December 31, 2014 and 152,331,006 shares were issued and outstanding at December 31, 2013. During 2014, 2013 and 2012, no dividends were declared or paid. Under the terms of the 2021 Notes and our 2011 Credit Facility, we must meet certain financial covenants before we may pay dividends. We currently do not intend to pay dividends. | |
Tax Withholding | |
We repurchase shares of restricted common stock that have been previously granted to certain of our employees, pursuant to an agreement under which those individuals are permitted to sell shares back to us in order to satisfy the minimum income tax withholding requirements related to vesting of these grants. We repurchased a total of 290,697 shares, 416,101 shares and 482,951 shares for an aggregate cost of $2.2 million, $3.2 million and $7.5 million during 2014, 2013 and 2012, respectively, which represented the fair market value of the shares based on the price of our stock on the dates of purchase. |
SHAREBASED_COMPENSATION_Notes
SHARE-BASED COMPENSATION (Notes) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Share-based Compensation [Abstract] | |||||||||||
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION | ||||||||||
2014 Incentive Plan | |||||||||||
On May 15, 2014, our stockholders approved the 2014 Equity and Cash Incentive Plan (the “2014 Incentive Plan”). The 2014 Incentive Plan is administered by our board of directors or a committee designated by our board of directors (the “Committee”). Our board of directors or the Committee (the “Administrator”) will have the power and authority to select Participants (as defined below) in the 2014 Plan and grant Awards as defined below) to such Participants pursuant to the terms of the 2014 Incentive Plan. The 2014 Incentive Plan expires May 15, 2024. The 2014 Plan was established as a successor to the Company’s 2012 Equity Cash and Incentive Plan (the “2012 Incentive Plan” ), the 2009 Equity Cash and Incentive Plan (the “2009 Incentive Plan” ) and the 2007 Equity Cash and Incentive Plan (the “2007 Incentive Plan”, collectively with the 2012 Plan and the 2009 Plan, the “Prior Plans”). The Prior Plans were merged with and into the 2014 Plan effective as of May 15, 2014. Outstanding awards under the Prior Plans will continue in effect according to their terms as in effect before the merger of the Prior Plans into the 2014 Plan (subject to such amendments as the Administrator deems appropriate), and the shares with respect to outstanding grants under the Prior Plans will be issued or transferred under the 2014 Plan. No additional grants will be made under the Prior Plans. | |||||||||||
Subject to adjustment, the total number of shares of our common stock that will be available for grant of Awards under the 2014 Plan may not exceed 12,310,750 shares; however, for purposes of this limitation, any stock subject to an Award that is canceled, forfeited, expires or otherwise terminates without the issuance of stock, is settled in cash, or is exchanged with the Administrator's permission, prior to the issuance of stock, for an Award not involving stock, will again become available for issuance under the 2014 Incentive Plan. Awards may be in the form of stock options (incentive stock options and nonqualified stock options), restricted stock, restricted stock units, performance compensation awards and SARs (collectively, "Awards"). Awards may be granted to employees, directors and, in some cases, consultants and those individuals whom the Administrator determines are reasonably expected to become employees, directors or consultants following the grant date of the Award (“Participants”). However, incentive stock options may be granted only to employees. | |||||||||||
Our board of directors at any time, and from time to time, may amend or terminate the 2014 Incentive Plan. However, except as provided otherwise in the 2014 Incentive Plan, no amendment will be effective unless approved by the stockholders of the Company to the extent stockholder approval is necessary to satisfy any applicable law or securities exchange listing requirements. Further, if the exercise price of an option, including an incentive stock option, exceeds the fair market value of our common stock on a given date, the Committee has the authority to reduce the exercise price of such option to a new exercise price that is no less than the then-current fair market value of our common stock; provided that such action shall first have been approved by a vote of our stockholders. The Administrator at any time, and from time to time, may amend the terms of any one or more Awards; however, if the amendment would constitute an impairment of the rights under any Award, we must request the consent of the Participant and the Participant must consent in writing. It is expressly contemplated that the board may amend the 2014 Incentive Plan in any respect our board of directors deem necessary or advisable to provide eligible employees with the maximum benefits provided or to be provided under the provisions of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder relating to incentive stock options and/or to bring the 2014 Incentive Plan and/or Awards granted under it into compliance therewith. As of December 31, 2014, there were 10.0 million shares available for grant under the 2014 Incentive Plan. | |||||||||||
Stock Option Awards | |||||||||||
Stock option awards granted under our incentive plans have a maximum contractual term of ten years from the date of grant. Shares issuable upon exercise of a stock option are issued from authorized but unissued shares of our common stock. The following tables summarize the stock option activity (shares in thousands): | |||||||||||
Year Ended December 31, 2014 | |||||||||||
Options | Weighted Average | Weighted Average | |||||||||
Exercise Price | Fair Value | ||||||||||
Outstanding at beginning of period | 1,372 | $ | 14.1 | $ | 6 | ||||||
Granted | — | $ | — | $ | — | ||||||
Exercised | — | $ | — | $ | — | ||||||
Cancelled or expired | (53 | ) | $ | 14.7 | $ | 6.23 | |||||
Outstanding at end of period | 1,319 | $ | 14.07 | $ | 5.99 | ||||||
Exercisable at end of period | 1,319 | $ | 14.07 | $ | 5.99 | ||||||
We did not grant any stock options during the years ended December 31, 2014, 2013 and 2012. No stock options vested during the year ended December 31, 2014. We recognized zero, zero and less than $0.1 million in pre-tax expense related to stock options for the years ended December 31, 2014, 2013 and 2012, respectively. We recognized tax benefits of zero, zero and less than $0.1 million, related to our stock options for the years ended December 31, 2014, 2013 and 2012, respectively. All of the stock option awards were vested as of December 31, 2012. The weighted average remaining contractual term for stock option awards exercisable as of December 31, 2014 is 1.3 years. The intrinsic value of the options exercised for the years ended December 31, 2014, 2013 and 2012 was zero, less than $0.1 million and $0.6 million, respectively. We received no cash from the exercise of options for the year ended December 31, 2014 with zero associated tax benefits. | |||||||||||
Common Stock Awards | |||||||||||
Our common stock awards include restricted stock awards and restricted stock units. The weighted average grant date fair market value of all common stock awards granted during the years ended December 31, 2014, 2013 and 2012 was $7.31, $7.56, $13.44, respectively. The total fair market value of all common stock awards vested during the years ended December 31, 2014, 2013 and 2012 was $12.0 million, $16.6 million and $14.2 million, respectively. | |||||||||||
The following tables summarize information for the year ended December 31, 2014 about our unvested common stock awards that we have outstanding (shares in thousands): | |||||||||||
Year Ended December 31, 2014 | |||||||||||
Outstanding | Weighted Average | ||||||||||
Issuance Price | |||||||||||
Shares at beginning of period | 2,246 | $ | 9.68 | ||||||||
Granted | 1,893 | $ | 7.31 | ||||||||
Vested | (1,187 | ) | $ | 10.12 | |||||||
Cancelled | (386 | ) | $ | 8.41 | |||||||
Shares at end of period | 2,566 | $ | 7.92 | ||||||||
We have issued 197,865 shares, 288,780 shares and 153,063 shares of common stock to our non-employee directors that vested immediately upon issuance during 2014, 2013 and 2012, respectively. For common stock grants that vest immediately upon issuance, we record expense equal to the fair market value of the shares on the date of grant. For common stock awards that do not immediately vest, we recognize compensation expense ratably over the graded vesting period of the grant, net of estimated and actual forfeitures. For the years ended December 31, 2014, 2013 and 2012, we recognized $10.9 million, $13.8 million and $13.3 million, respectively, of pre-tax expense from continuing operations associated with common stock awards, including common stock grants to our outside directors. In connection with the expense related to common stock awards recognized during the year ended December 31, 2014, we recognized tax benefits of $3.8 million. Tax benefits for the years ended December 31, 2013 and 2012 were $5.2 million and $4.2 million, respectively. For the unvested common stock awards outstanding as of December 31, 2014, we anticipate that we will recognize $8.2 million of pre-tax expense over the next 0.9 years. | |||||||||||
Performance Units | |||||||||||
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 | % | — | % | |||||||
Eleventh | 9 | % | — | % | |||||||
Twelfth | — | % | — | % | |||||||
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 December 31, 2014, the fair value of outstanding performance units was $0.5 million, and is being accreted to compensation expense over the vesting terms of the awards. As of December 31, 2014, the unrecognized compensation cost related to our unvested performance units is estimated to be $0.3 million and is expected to be recognized over a weighted-average period of 1.0 years. | |||||||||||
Phantom Share Plan | |||||||||||
In December 2006, we announced the implementation of a “Phantom Share Plan,” in which certain of our employees were granted “Phantom Shares.” Phantom Shares vest ratably over a four-year period and convey the right to the grantee to receive a cash payment on the anniversary date of the grant equal to the fair market value of the Phantom Shares vesting on that date. Grantees are not permitted to defer this payment to a later date. The Phantom Shares are a “liability” type award and we account for these awards at fair value. We recognize compensation expense related to the Phantom Shares based on the change in the fair value of the awards during the period and the percentage of the service requirement that has been performed, net of estimated and actual forfeitures, with an offsetting liability recorded on our consolidated balance sheets. We recognized pre-tax compensation benefit from continuing operations, associated with the Phantom Shares of zero, zero and less than $0.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, no Phantom Shares were outstanding. | |||||||||||
We recognized income tax benefit associated with the Phantom Shares of zero, zero and less than $0.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. During 2014, there were no cash payments related to the Phantom Shares. | |||||||||||
Stock Appreciation Rights | |||||||||||
In August 2007, we issued approximately 587,000 SARs to our executive officers. Each SAR has a ten-year term from the date of grant. The vesting of all outstanding SAR awards was accelerated during the fourth quarter of 2008. Upon the exercise of a SAR, the recipient will receive an amount equal to the difference between the exercise price and the fair market value of a share of our common stock on the date of exercise, multiplied by the number of shares of common stock for which the SAR was exercised. All payments will be made in shares of our common stock. Prior to exercise, the SAR does not entitle the recipient to receive any shares of our common stock and does not provide the recipient with any voting or other stockholders’ rights. We account for these SARs as equity awards and recognize compensation expense ratably over the vesting period of the SAR based on their fair value on the date of issuance, net of estimated and actual forfeitures. We did not recognize any expense associated with these awards during 2014, 2013 and 2012. We did not forfeit any SARs during 2014. As of December 31, 2014, 0.3 million SARs remained unexercised. |
TRANSACTIONS_WITH_RELATED_PART
TRANSACTIONS WITH RELATED PARTIES (Notes) | 12 Months Ended |
Dec. 31, 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 $32.5 million, $41.2 million and $37.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. Receivables outstanding from Anadarko were $2.9 million and $4.9 million as of December 31, 2014 and 2013, respectively. Transactions with Anadarko for our services are made on terms consistent with other customers. | |
A member of our board of directors serves on the United States Advisory Board of the Alexander Proudfoot practice of Management Consulting Group PLC (“Proudfoot”), which provided consulting services related to our general and administrative cost restructuring initiative in 2012. Payments to Proudfoot were zero, zero and $1.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Notes
(Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Noncash investing and financing activities: | ||||||||||||
Sale of Argentina operations/Notes receivable | $ | — | $ | — | $ | 12,955 | ||||||
Asset retirement obligations | — | 174 | — | |||||||||
Supplemental cash flow information: | ||||||||||||
Cash paid for interest | $ | 51,589 | $ | 53,504 | $ | 48,217 | ||||||
Cash paid for taxes | 2,699 | 35,239 | 13,148 | |||||||||
Tax refunds | 13,109 | 26,361 | 18,681 | |||||||||
Cash paid for interest includes cash payments for interest on our long-term debt and capital lease obligations, and commitment and agency fees paid. |
SEGMENT_INFORMATION_Notes
SEGMENT INFORMATION (Notes) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION | |||||||||||||||||||||||||||||||
We revised our reportable business segments as of the fourth quarter of 2014. The revised reportable segments are U.S. Rig Services, Fluid Management Services, Coiled Tubing Services, Fishing and Rental Services and International. We also have a “Functional Support” segment associated with overhead costs in support of our reportable segments. Segment disclosures as of and for the years ended December 31, 2013 and 2012 have been revised to reflect the change in reportable segments. We revised our segments to reflect changes in management’s resource allocation and performance assessment in making decisions regarding our business. Our U.S. Rig Services, Fluid Management Services, Coiled Tubing Services, Fishing and Rental Services operate geographically within the United States. The International reportable segment includes our operations in Mexico, Colombia, Ecuador, Russia, Bahrain and Oman. Our Canadian subsidiary is also reflected in our International reportable segment. We evaluate the performance of our segments based on gross margin measures. All inter-segment sales pricing is based on current market conditions. These changes reflect our current operating focus in compliance with ASC 280. We aggregate services that create our reportable segments in accordance with ASC 280, and the accounting policies for our segments are the same as those described in “Note 1. Organization and Summary of Significant Accounting Policies” above. | ||||||||||||||||||||||||||||||||
U.S. Rig Services | ||||||||||||||||||||||||||||||||
Our U.S. Rig 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 SWD 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 | ||||||||||||||||||||||||||||||||
Our International segment includes operations in Mexico, Colombia, Ecuador, the Middle East and Russia. In addition, we have a technology development and control systems business based in Canada. Also, prior to the sale of our Argentina business in the third quarter of 2012, we operated in Argentina. We are reporting the results of our Argentina business as discontinued operations for the 2012 period. 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, in Mexico we provide drilling, coiled tubing, wireline and project management and consulting services. Our work in Mexico also requires us to provide third party services which varies 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 2. Acquisitions” for further discussion. | ||||||||||||||||||||||||||||||||
Our Russian operations provide drilling, workover, and reservoir engineering services. On April 9, 2013, we completed the acquisition of the remaining 50% noncontrolling interest in Geostream for $14.6 million. We now own 100% of Geostream. See “Note 2. Acquisitions” 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 | ||||||||||||||||||||||||||||||||
Our Functional Support segment includes unallocated overhead costs associated with administrative support for our U.S. and International reporting segments. | ||||||||||||||||||||||||||||||||
Financial Summary | ||||||||||||||||||||||||||||||||
The following table presents our segment information as of and for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||||||||||
As of and for the year ended December 31, 2014 | ||||||||||||||||||||||||||||||||
U.S. Rig Service | Fluid Management Services | Coiled Tubing Services | Fishing and Rental Services | International | Functional | Reconciling | Total | |||||||||||||||||||||||||
Support(2) | Eliminations | |||||||||||||||||||||||||||||||
Revenues from external customers | $ | 679,045 | $ | 249,589 | $ | 173,364 | $ | 212,598 | $ | 112,740 | $ | — | $ | — | $ | 1,427,336 | ||||||||||||||||
Intersegment revenues | 706 | 1,258 | — | 6,078 | 9,142 | 1,988 | (19,172 | ) | — | |||||||||||||||||||||||
Depreciation and amortization | 59,190 | 31,870 | 23,375 | 44,004 | 30,311 | 11,988 | — | 200,738 | ||||||||||||||||||||||||
Impairment expense | — | — | 19,100 | 73,389 | 28,687 | — | — | 121,176 | ||||||||||||||||||||||||
Other operating expenses | 523,468 | 214,392 | 141,708 | 154,149 | 119,174 | 156,406 | — | 1,309,297 | ||||||||||||||||||||||||
Operating income (loss) | 96,387 | 3,327 | (10,819 | ) | (58,944 | ) | (65,432 | ) | (168,394 | ) | — | (203,875 | ) | |||||||||||||||||||
Interest expense, net of amounts capitalized | — | — | — | — | 32 | 54,195 | — | 54,227 | ||||||||||||||||||||||||
Income (loss) from continuing operations before tax | 96,922 | 3,581 | (10,442 | ) | (58,794 | ) | (68,924 | ) | (221,454 | ) | — | (259,111 | ) | |||||||||||||||||||
Long-lived assets(1) | 796,654 | 181,041 | 196,265 | 326,218 | 270,893 | 278,904 | (150,272 | ) | 1,899,703 | |||||||||||||||||||||||
Total assets | 1,608,122 | 295,670 | 260,375 | 669,823 | 397,295 | (510,229 | ) | (387,558 | ) | 2,333,498 | ||||||||||||||||||||||
Capital expenditures, excluding acquisitions | 90,982 | 3,920 | 10,815 | 30,389 | 7,560 | 17,973 | — | 161,639 | ||||||||||||||||||||||||
As of and for the year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
U.S. Rig Service | Fluid Management Services | Coiled Tubing Services | Fishing and Rental Services | International | Functional | Reconciling | Total | |||||||||||||||||||||||||
Support(2) | Eliminations | |||||||||||||||||||||||||||||||
Revenues from external customers | $ | 673,465 | $ | 271,709 | $ | 193,184 | $ | 238,611 | $ | 214,707 | $ | — | $ | — | $ | 1,591,676 | ||||||||||||||||
Intersegment revenues | 4,283 | 700 | 10 | 5,637 | 8,715 | 509 | (19,854 | ) | — | |||||||||||||||||||||||
Depreciation and amortization | 64,804 | 37,510 | 25,877 | 53,785 | 30,227 | 13,094 | — | 225,297 | ||||||||||||||||||||||||
Other operating expenses | 475,103 | 230,161 | 143,880 | 153,517 | 211,137 | 122,417 | — | 1,336,215 | ||||||||||||||||||||||||
Operating income (loss) | 133,558 | 4,038 | 23,427 | 31,309 | (26,657 | ) | (135,511 | ) | — | 30,164 | ||||||||||||||||||||||
Interest expense, net of amounts capitalized | 1 | — | — | — | 62 | 55,141 | — | 55,204 | ||||||||||||||||||||||||
Income (loss) from continuing operations before tax | 133,642 | 4,110 | 23,436 | 31,351 | (26,795 | ) | (189,981 | ) | — | (24,237 | ) | |||||||||||||||||||||
Long-lived assets(1) | 746,021 | 222,075 | 246,889 | 420,486 | 333,273 | 301,032 | (188,459 | ) | 2,081,317 | |||||||||||||||||||||||
Total assets | 1,511,419 | 279,950 | 246,180 | 637,163 | 497,938 | (181,940 | ) | (403,240 | ) | 2,587,470 | ||||||||||||||||||||||
Capital expenditures, excluding acquisitions | 79,761 | 7,307 | 12,682 | 25,378 | 19,541 | 19,468 | — | 164,137 | ||||||||||||||||||||||||
As of and for the year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
U.S. Rig Service | Fluid Management Services | Coiled Tubing Services | Fishing and Rental Services | International | Functional | Reconciling | Total | |||||||||||||||||||||||||
Support(2) | Eliminations | |||||||||||||||||||||||||||||||
Revenues from external customers | $ | 788,512 | $ | 353,597 | $ | 215,876 | $ | 268,783 | $ | 333,302 | $ | — | $ | — | $ | 1,960,070 | ||||||||||||||||
Intersegment revenues | 39,257 | 263 | 15 | 4,332 | 6,273 | 15 | (50,155 | ) | — | |||||||||||||||||||||||
Depreciation and amortization | 69,513 | 40,637 | 25,205 | 47,147 | 19,643 | 11,638 | — | 213,783 | ||||||||||||||||||||||||
Other operating expenses | 524,704 | 287,396 | 175,542 | 171,283 | 250,667 | 129,749 | — | 1,539,341 | ||||||||||||||||||||||||
Operating income (loss) | 194,295 | 25,564 | 15,129 | 50,353 | 62,992 | (141,387 | ) | — | 206,946 | |||||||||||||||||||||||
Interest expense, net of amounts capitalized | 11 | — | 1 | 5 | 172 | 53,377 | — | 53,566 | ||||||||||||||||||||||||
Income (loss) from continuing operations before tax | 194,558 | 25,712 | 15,182 | 50,394 | 68,036 | (193,853 | ) | — | 160,029 | |||||||||||||||||||||||
Long-lived assets(1) | 749,031 | 250,872 | 265,786 | 453,690 | 334,329 | 286,369 | (168,283 | ) | 2,171,794 | |||||||||||||||||||||||
Total assets | 1,343,275 | 261,310 | 215,125 | 595,963 | 541,882 | 153,665 | (349,632 | ) | 2,761,588 | |||||||||||||||||||||||
Capital expenditures, excluding acquisitions | 69,105 | 35,491 | 45,545 | 97,660 | 171,095 | 28,264 | — | 447,160 | ||||||||||||||||||||||||
-1 | Long-lived assets include: fixed assets, goodwill, intangibles and other assets. | |||||||||||||||||||||||||||||||
-2 | Functional Support is geographically located in the United States. |
UNAUDITED_QUARTERLY_RESULTS_OF
UNAUDITED QUARTERLY RESULTS OF OPERATIONS (Notes) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
UNAUDITED QUARTERLY RESULTS OF OPERATIONS | UNAUDITED QUARTERLY RESULTS OF OPERATIONS | |||||||||||||||
The following table presents our summarized, unaudited quarterly information for the two most recent years covered by these consolidated financial statements (in thousands, except for per share data): | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Year Ended December 31, 2014: | ||||||||||||||||
Revenues | $ | 356,141 | $ | 350,595 | $ | 365,798 | $ | 354,802 | ||||||||
Direct operating expenses | 258,302 | 262,883 | 272,112 | 266,354 | ||||||||||||
Net loss | (11,899 | ) | (52,196 | ) | (62,229 | ) | (52,304 | ) | ||||||||
Loss attributable to Key | (11,899 | ) | (52,196 | ) | (62,229 | ) | (52,304 | ) | ||||||||
Loss per share(1): | ||||||||||||||||
Basic and Diluted | (0.08 | ) | (0.34 | ) | (0.41 | ) | (0.34 | ) | ||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Year Ended December 31, 2013: | ||||||||||||||||
Revenues | $ | 428,449 | $ | 411,390 | $ | 389,673 | $ | 362,164 | ||||||||
Direct operating expenses | 299,182 | 287,102 | 268,297 | 259,881 | ||||||||||||
Net loss | (186 | ) | (3,772 | ) | (4,697 | ) | (12,518 | ) | ||||||||
Loss attributable to Key | (274 | ) | (4,128 | ) | (4,848 | ) | (12,518 | ) | ||||||||
Loss per share(1): | ||||||||||||||||
Basic and Diluted | — | (0.03 | ) | (0.03 | ) | (0.08 | ) | |||||||||
-1 | Quarterly earnings per common share are based on the weighted average number of shares outstanding during the quarter, and the sum of the quarters may not equal annual earnings per common share. |
CONDENSED_CONSOLIDATING_FINANC
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Notes) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Condensed Consolidating Financial Statements [Abstract] | ||||||||||||||||||||
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |||||||||||||||||||
Our 2021 Notes are guaranteed by virtually all of 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 BALANCE SHEETS | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Current assets | $ | 39,020 | $ | 341,188 | $ | 53,587 | $ | — | $ | 433,795 | ||||||||||
Property and equipment, net | — | 1,128,776 | 106,482 | — | 1,235,258 | |||||||||||||||
Goodwill | — | 578,358 | 4,381 | — | 582,739 | |||||||||||||||
Deferred financing costs, net | 10,735 | — | — | — | 10,735 | |||||||||||||||
Intercompany notes and accounts receivable and investment in subsidiaries | 3,170,874 | 1,426,160 | 42,352 | (4,639,386 | ) | — | ||||||||||||||
Other assets | — | 56,664 | 14,307 | — | 70,971 | |||||||||||||||
TOTAL ASSETS | $ | 3,220,629 | $ | 3,531,146 | $ | 221,109 | $ | (4,639,386 | ) | $ | 2,333,498 | |||||||||
Liabilities and equity: | ||||||||||||||||||||
Current liabilities | $ | 22,046 | $ | 192,079 | $ | 27,733 | $ | — | $ | 241,858 | ||||||||||
Long-term debt and capital leases, less current portion | 748,426 | — | — | — | 748,426 | |||||||||||||||
Intercompany notes and accounts payable | 1,162,648 | 2,696,051 | 123,810 | (3,982,509 | ) | — | ||||||||||||||
Deferred tax liabilities | 228,199 | 398 | (134 | ) | (69 | ) | 228,394 | |||||||||||||
Other long-term liabilities | 1,264 | 55,182 | 311 | — | 56,757 | |||||||||||||||
Equity | 1,058,046 | 587,436 | 69,389 | (656,808 | ) | 1,058,063 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 3,220,629 | $ | 3,531,146 | $ | 221,109 | $ | (4,639,386 | ) | $ | 2,333,498 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
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 STATEMENTS OF OPERATIONS | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | $ | — | $ | 1,325,670 | $ | 125,262 | $ | (23,596 | ) | 1,427,336 | ||||||||||
Direct operating expense | — | 979,018 | 90,584 | (9,951 | ) | 1,059,651 | ||||||||||||||
Depreciation and amortization expense | — | 187,676 | 13,062 | — | 200,738 | |||||||||||||||
General and administrative expense | 941 | 239,276 | 23,054 | (13,625 | ) | 249,646 | ||||||||||||||
Impairment expense | — | 92,489 | 28,687 | — | 121,176 | |||||||||||||||
Operating loss | (941 | ) | (172,789 | ) | (30,125 | ) | (20 | ) | (203,875 | ) | ||||||||||
Interest expense, net of amounts capitalized | 54,195 | — | 32 | — | 54,227 | |||||||||||||||
Other (income) expense, net | (1,976 | ) | 666 | 2,276 | 43 | 1,009 | ||||||||||||||
Loss from continuing operations before taxes | (53,160 | ) | (173,455 | ) | (32,433 | ) | (63 | ) | (259,111 | ) | ||||||||||
Income tax benefit | 68,883 | 10,551 | 1,179 | (130 | ) | 80,483 | ||||||||||||||
Income (loss) from continuing operations | 15,723 | (162,904 | ) | (31,254 | ) | (193 | ) | (178,628 | ) | |||||||||||
Discontinued operations | — | — | — | — | — | |||||||||||||||
Net income (loss) | 15,723 | (162,904 | ) | (31,254 | ) | (193 | ) | (178,628 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | — | — | — | |||||||||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | $ | 15,723 | $ | (162,904 | ) | $ | (31,254 | ) | $ | (193 | ) | $ | (178,628 | ) | ||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | $ | — | $ | 1,494,683 | $ | 161,536 | $ | (64,543 | ) | $ | 1,591,676 | |||||||||
Direct operating expense | — | 1,046,376 | 118,028 | (49,942 | ) | 1,114,462 | ||||||||||||||
Depreciation and amortization expense | — | 214,334 | 10,963 | — | 225,297 | |||||||||||||||
General and administrative expense | 1,077 | 202,599 | 33,336 | (15,259 | ) | 221,753 | ||||||||||||||
Operating income (loss) | (1,077 | ) | 31,374 | (791 | ) | 658 | 30,164 | |||||||||||||
Interest expense, net of amounts capitalized | 55,747 | (606 | ) | 63 | — | 55,204 | ||||||||||||||
Other (income) expense, net | (3,616 | ) | (1,126 | ) | 316 | 3,623 | (803 | ) | ||||||||||||
Income (loss) from continuing operations before taxes | (53,208 | ) | 33,106 | (1,170 | ) | (2,965 | ) | (24,237 | ) | |||||||||||
Income tax (expense) benefit | (13,385 | ) | 15,456 | 993 | — | 3,064 | ||||||||||||||
Income (loss) from continuing operations | (66,593 | ) | 48,562 | (177 | ) | (2,965 | ) | (21,173 | ) | |||||||||||
Discontinued operations | — | — | — | — | — | |||||||||||||||
Net income (loss) | (66,593 | ) | 48,562 | (177 | ) | (2,965 | ) | (21,173 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | 595 | — | 595 | |||||||||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | $ | (66,593 | ) | $ | 48,562 | $ | (772 | ) | $ | (2,965 | ) | $ | (21,768 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | $ | — | $ | 1,867,198 | $ | 165,248 | $ | (72,376 | ) | $ | 1,960,070 | |||||||||
Direct operating expense | — | 1,254,087 | 117,293 | (62,535 | ) | 1,308,845 | ||||||||||||||
Depreciation and amortization expense | — | 205,755 | 8,028 | — | 213,783 | |||||||||||||||
General and administrative expense | 1,046 | 216,069 | 24,853 | (11,472 | ) | 230,496 | ||||||||||||||
Operating income (loss) | (1,046 | ) | 191,287 | 15,074 | 1,631 | 206,946 | ||||||||||||||
Interest expense, net of amounts capitalized | 54,690 | (1,292 | ) | 170 | (2 | ) | 53,566 | |||||||||||||
Other income, net | (5,500 | ) | (1,474 | ) | (3,142 | ) | 3,467 | (6,649 | ) | |||||||||||
Income (loss) from continuing operations before taxes | (50,236 | ) | 194,053 | 18,046 | (1,834 | ) | 160,029 | |||||||||||||
Income tax expense | (48,893 | ) | (3,385 | ) | (5,073 | ) | (1 | ) | (57,352 | ) | ||||||||||
Income (loss) from continuing operations | (99,129 | ) | 190,668 | 12,973 | (1,835 | ) | 102,677 | |||||||||||||
Discontinued operations | — | — | (93,568 | ) | — | (93,568 | ) | |||||||||||||
Net income (loss) | (99,129 | ) | 190,668 | (80,595 | ) | (1,835 | ) | 9,109 | ||||||||||||
Income attributable to noncontrolling interest | — | — | 1,487 | — | 1,487 | |||||||||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | $ | (99,129 | ) | $ | 190,668 | $ | (82,082 | ) | $ | (1,835 | ) | $ | 7,622 | |||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 158,707 | $ | 5,461 | $ | — | $ | 164,168 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | — | (154,952 | ) | (6,687 | ) | — | (161,639 | ) | ||||||||||||
Payment of accrued acquisition cost of the 51% noncontrolling interest in AlMansoori Key Energy Services LLC | — | (5,100 | ) | — | — | (5,100 | ) | |||||||||||||
Intercompany notes and accounts | — | (18,892 | ) | — | 18,892 | — | ||||||||||||||
Other investing activities, net | — | 19,899 | — | — | 19,899 | |||||||||||||||
Net cash used in investing activities | — | (159,045 | ) | (6,687 | ) | 18,892 | (146,840 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Repayment of long-term debt | (3,573 | ) | — | — | — | (3,573 | ) | |||||||||||||
Proceeds from borrowings on revolving credit facility | 260,000 | — | — | — | 260,000 | |||||||||||||||
Repayments on revolving credit facility | (275,000 | ) | — | — | — | (275,000 | ) | |||||||||||||
Repurchases of common stock | (2,245 | ) | — | — | — | (2,245 | ) | |||||||||||||
Intercompany notes and accounts | 18,892 | — | — | (18,892 | ) | — | ||||||||||||||
Other financing activities, net | (1,240 | ) | — | — | — | (1,240 | ) | |||||||||||||
Net cash used in financing activities | (3,166 | ) | — | — | (18,892 | ) | (22,058 | ) | ||||||||||||
Effect of changes in exchange rates on cash | — | — | 3,728 | — | 3,728 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (3,166 | ) | (338 | ) | 2,502 | — | (1,002 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 23,115 | 788 | 4,403 | — | 28,306 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 19,949 | $ | 450 | $ | 6,905 | $ | — | $ | 27,304 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 222,364 | $ | 6,279 | $ | — | $ | 228,643 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | — | (157,443 | ) | (6,694 | ) | — | (164,137 | ) | ||||||||||||
Acquisition of the 50% noncontrolling interest in Geostream | — | (14,600 | ) | — | — | (14,600 | ) | |||||||||||||
Intercompany notes and accounts | — | (68,597 | ) | — | 68,597 | — | ||||||||||||||
Other investing activities, net | — | 17,856 | — | — | 17,856 | |||||||||||||||
Net cash used in investing activities | — | (222,784 | ) | (6,694 | ) | 68,597 | (160,881 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Repayments of capital lease obligations | — | (393 | ) | — | — | (393 | ) | |||||||||||||
Proceeds from borrowings on revolving credit facility | 220,000 | — | — | — | 220,000 | |||||||||||||||
Repayments on revolving credit facility | (300,000 | ) | — | — | — | (300,000 | ) | |||||||||||||
Payment of deferred financing cost | (69 | ) | — | — | — | (69 | ) | |||||||||||||
Repurchases of common stock | (3,196 | ) | — | — | — | (3,196 | ) | |||||||||||||
Intercompany notes and accounts | 68,597 | — | — | (68,597 | ) | — | ||||||||||||||
Other financing activities, net | (1,834 | ) | — | — | — | (1,834 | ) | |||||||||||||
Net cash used in financing activities | (16,502 | ) | (393 | ) | — | (68,597 | ) | (85,492 | ) | |||||||||||
Effect of changes in exchange rates on cash | — | — | 87 | — | 87 | |||||||||||||||
Net decrease in cash and cash equivalents | (16,502 | ) | (813 | ) | (328 | ) | — | (17,643 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 39,617 | 1,601 | 4,731 | — | 45,949 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 23,115 | $ | 788 | $ | 4,403 | $ | — | $ | 28,306 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 349,208 | $ | 20,452 | $ | — | $ | 369,660 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | — | (430,045 | ) | (17,115 | ) | — | (447,160 | ) | ||||||||||||
Intercompany notes and accounts | 676 | 49,926 | — | (50,602 | ) | — | ||||||||||||||
Other investing activities, net | (676 | ) | 19,127 | — | — | 18,451 | ||||||||||||||
Net cash used in investing activities | — | (360,992 | ) | (17,115 | ) | (50,602 | ) | (428,709 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from long term debt | 205,000 | — | — | — | 205,000 | |||||||||||||||
Repayments of capital lease obligations | — | (1,959 | ) | — | — | (1,959 | ) | |||||||||||||
Proceeds from borrowings on revolving credit facility | 275,000 | — | — | — | 275,000 | |||||||||||||||
Repayments on revolving credit facility | (405,000 | ) | — | — | — | (405,000 | ) | |||||||||||||
Payment of deferred financing cost | (4,597 | ) | — | — | — | (4,597 | ) | |||||||||||||
Repurchases of common stock | (7,519 | ) | — | — | — | (7,519 | ) | |||||||||||||
Intercompany notes and accounts | (49,926 | ) | (676 | ) | — | 50,602 | — | |||||||||||||
Other financing activities, net | 4,986 | 8,035 | — | — | 13,021 | |||||||||||||||
Net cash provided by financing activities | 17,944 | 5,400 | — | 50,602 | 73,946 | |||||||||||||||
Effect of changes in exchange rates on cash | — | — | (4,391 | ) | — | (4,391 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 17,944 | (6,384 | ) | (1,054 | ) | — | 10,506 | |||||||||||||
Cash and cash equivalents at beginning of period | 21,673 | 7,985 | 5,785 | — | 35,443 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 39,617 | $ | 1,601 | $ | 4,731 | $ | — | $ | 45,949 | ||||||||||
Recovered_Sheet1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Significant Accounting Policies [Line Items] | ||
Basis of Presentation | Basis of Presentation | |
The consolidated financial statements included in this Annual Report on Form 10-K present our financial position, results of operations and cash flows for the periods presented in accordance with generally accepted accounting principles in the United States (“GAAP”). | ||
The preparation of these 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 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 our estimates are reasonable. | ||
We have evaluated events occurring after the balance sheet date included in this Annual Report on Form 10-K for possible disclosure as a subsequent event. Management monitored for subsequent events through the date that these financial statements were issued. | ||
We revised our reportable business segments effective in the fourth quarter of 2014, and in connection with the revision, we have revised disclosures for the corresponding items of segment information for the years ended December 31, 2013 and 2012. The revised reportable segments are U.S. Rig Services, Fluid Management Services, Coiled Tubing Services, Fishing and Rental Services and International. We also have a “Functional Support” segment associated with overhead costs in support of our reportable segments. We revised our segments to reflect changes in management’s resource allocation and performance assessment in making decisions regarding our business. Our U.S. Rig Services, Fluid Management Services, Coiled Tubing Services, Fishing and Rental Services operate geographically within the United States. The International reportable segment includes our operations in Mexico, Colombia, Ecuador, Russia, Bahrain and Oman. Our Canadian subsidiary is also reflected in our International reportable segment. These changes reflect our current operating focus in compliance with Accounting Standards Codification (“ASC”) No. 280, Segment Reporting (“ASC 280”). These presentation changes did not impact our consolidated net income, earnings per share, total current assets, total assets or total stockholders’ equity. | ||
On February 17, 2012, the Company announced its decision to sell its business and operations in Argentina (the “Argentina business”) and on September 14, 2012 completed the sale of the Argentina business. In accordance with applicable accounting requirements and guidance, the Company has reclassified and presented the Argentina business as a discontinued operation for the 2012 period. | ||
Principles of Consolidation | Principles of Consolidation | |
Within our consolidated financial statements, we include our accounts and the accounts of our majority-owned or controlled subsidiaries. We eliminate intercompany accounts and transactions. When we have an interest in an entity for which we do not have significant control or influence, we account for that interest using the cost method. When we have an interest in an entity and can exert significant influence but not control, we account for that interest using the equity method. | ||
Acquisitions | Acquisitions | |
From time to time, we acquire businesses or assets that are consistent with our long-term growth strategy. Results of operations for acquisitions are included in our financial statements beginning on the date of acquisition and are accounted for using the acquisition method. For all business combinations (whether partial, full or in stages), the acquirer records 100% of all assets and liabilities of the acquired business, including goodwill, at their fair values; including contingent consideration. Final valuations of assets and liabilities are obtained and recorded as soon as practicable no later than one year from the date of the acquisition. | ||
Revenue Recognition | Revenue Recognition | |
We recognize revenue when all of the following criteria have been met: (i) evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price to the customer is fixed and determinable and (iv) collectability is reasonably assured. | ||
• | Evidence of an arrangement exists when a final understanding between us and our customer has occurred, and can be evidenced by a completed customer purchase order, field ticket, supplier contract, or master service agreement. | |
• | Delivery has occurred or services have been rendered when we have completed requirements pursuant to the terms of the arrangement as evidenced by a field ticket or service log. | |
• | The price to the customer is fixed and determinable when the amount that is required to be paid is agreed upon. Evidence of the price being fixed and determinable is evidenced by contractual terms, our price book, a completed customer purchase order, or a field ticket. | |
• | Collectability is reasonably assured when we screen our customers and provide goods and services to customers according to determined credit terms that have been granted in accordance with our credit policy. | |
We present our revenues net of any sales taxes collected by us from our customers that are required to be remitted to local or state governmental taxing authorities. | ||
We review our contracts for multiple element revenue arrangements. Deliverables will be separated into units of accounting and assigned fair value if they have standalone value to our customer, have objective and reliable evidence of fair value, and delivery of undelivered items is substantially controlled by us. We believe that the negotiated prices for deliverables in our services contracts are representative of fair value since the acceptance or non-acceptance of each element in the contract does not affect the other elements. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
We consider short-term investments with an original maturity of less than three months to be cash equivalents. At December 31, 2014, we have not entered into any compensating balance arrangements, but all of our obligations under our 2011 Credit Facility (as defined below) with a syndicate of banks of which JPMorgan Chase Bank, N.A. is the administrative agent were secured by most of our assets, including assets held by our subsidiaries, which includes our cash and cash equivalents. We restrict investment of cash to financial institutions with high credit standing and limit the amount of credit exposure to any one financial institution. | ||
We maintain our cash in bank deposit and brokerage accounts which exceed federally insured limits. As of December 31, 2014, accounts were guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 and substantially all of our accounts held deposits in excess of the FDIC limits. | ||
We believe that the cash held by our other foreign subsidiaries could be repatriated for general corporate use without material withholdings. From time to time and in the normal course of business in connection with our operations or ongoing legal matters, we are required to place certain amounts of our cash in deposit accounts with restrictions that limit our ability to withdraw those funds. | ||
Certain of our cash accounts are zero-balance controlled disbursement accounts that do not have right of offset against our other cash balances. We present the outstanding checks written against these zero-balance accounts as a component of accounts payable in the accompanying consolidated balance sheets. | ||
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts | |
We establish provisions for losses on accounts receivable if we determine that there is a possibility that we will not collect all or part of the outstanding balances. We regularly review accounts over 150 days past due from the invoice date for collectability and establish or adjust our allowance as necessary using the specific identification method. If we exhaust all collection efforts and determine that the balance will never be collected, we write off the accounts receivable and the associated provision for uncollectible accounts. | ||
From time to time we are entitled to proceeds under our insurance policies for amounts that we have reserved in our self-insurance liability. We present these insurance receivables gross on our balance sheet as a component of other assets, separate from the corresponding liability. | ||
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers | |
Our customers include major oil and natural gas production companies, independent oil and natural gas production companies, and foreign national oil and natural gas production companies. We perform ongoing credit evaluations of our customers and usually do not require material collateral. We maintain reserves for potential credit losses when necessary. Our results of operations and financial position should be considered in light of the fluctuations in demand experienced by oilfield service companies as changes in oil and gas producers’ expenditures and budgets occur. These fluctuations can impact our results of operations and financial position as supply and demand factors directly affect utilization and hours which are the primary determinants of our net cash provided by operating activities. | ||
During the years ended December 31, 2014 and December 31, 2013, Chevron Texaco Exploration and Production accounted for approximately 15% of our consolidated revenue. During the year ended December 31, 2012, Pemex and Occidental Petroleum Corporation accounted for approximately 12% and 10% of our consolidated revenue, respectively. No other customer accounted for more than 10% of our consolidated revenue in 2014, 2013 or 2012. | ||
Receivables outstanding from Pemex were approximately 19% of our total accounts receivable as of December 31, 2013. No other customer accounted for more than 10% of our total accounts receivable as of December 31, 2014 and 2013. | ||
Inventories | Inventories | |
Inventories, which consist primarily of equipment parts and spares for use in our operations and supplies held for consumption, are valued at the lower of average cost or market. | ||
Property and Equipment | Property and Equipment | |
Property and equipment are carried at cost less accumulated depreciation. Depreciation is provided for our assets over the estimated depreciable lives of the assets using the straight-line method. Depreciation expense for the years ended December 31, 2014, 2013 and 2012 was $191.9 million, $206.2 million and $190.5 million, respectively. We depreciate our operational assets over their depreciable lives to their salvage value, which is a value higher than the assets’ value as scrap. Salvage value approximates 10% of an operational asset’s acquisition cost. When an operational asset is stacked or taken out of service, we review its physical condition, depreciable life and ultimate salvage value to determine if the asset is operable and whether the remaining depreciable life and salvage value should be adjusted. When we scrap an asset, we accelerate the depreciation of the asset down to its salvage value. When we dispose of an asset, a gain or loss is recognized. | ||
As of December 31, 2014, the estimated useful lives of our asset classes are as follows: | ||
Description | Years | |
Well service rigs and components | 15-Mar | |
Oilfield trucks, vehicles and related equipment | 7-Apr | |
Fishing and rental tools, coiled tubing units and equipment, tubulars and pressure control equipment | 10-Mar | |
Disposal wells | 15 | |
Furniture and equipment | 7-Mar | |
Buildings and improvements | 15-30 | |
From time to time, we lease certain of our operating assets under capital lease obligations whose terms run from 55 to 60 months. These assets are depreciated over their estimated useful lives or the term of the capital lease obligation, whichever is shorter. | ||
A long-lived asset or asset group should be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. For purposes of testing for impairment, we group our long-lived assets along our lines of business based on the services provided, which is the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. We would record an impairment charge, reducing the net carrying value to an estimated fair value, if the asset group’s estimated future cash flows were less than its net carrying value. Events or changes in circumstance that cause us to evaluate our fixed assets for recoverability and possible impairment may include changes in market conditions, such as adverse movements in the prices of oil and natural gas, or changes of an asset group, such as its expected future life, intended use or physical condition, which could reduce the fair value of certain of our property and equipment. The development of future cash flows and the determination of fair value for an asset group involves significant judgment and estimates. We identified a triggering event in the third quarter of 2014 that resulted in a recording of a reduction in value of fixed assets of $62.1 million in our Fishing and Rental Services segment. We did not identify any trigger events causing us to test our tangible and finite-lived intangible assets for impairment during the years ended December 31, 2013 or 2012. See “Note 8. Property and Equipment,” for further discussion. | ||
Asset Retirement Obligations | Asset Retirement Obligations | |
We recognize a liability for the fair value of all legal obligations associated with the retirement of tangible long-lived assets and capitalize an equal amount as a cost of the asset. We depreciate the additional cost over the estimated useful life of the assets. Our obligations to perform our asset retirement activities are unconditional, despite the uncertainties that may exist surrounding an individual retirement activity. Accordingly, we recognize a liability for the fair value of a conditional asset retirement obligation if the fair value can be reasonably estimated. In determining the fair value, we examine the inputs that we believe a market participant would use if we were to transfer the liability. We probability-weight the potential costs a third-party would charge, adjust the cost for inflation for the estimated life of the asset, and discount this cost using our credit adjusted risk free rate. Significant judgment is involved in estimating future cash flows associated with such obligations, as well as the ultimate timing of those cash flows. If our estimates of the amount or timing of the cash flows change, such changes may have a material impact on our results of operations. See “Note 11. Asset Retirement Obligations.” | ||
Deposits | Deposits | |
Due to capacity constraints on equipment manufacturers, we have been required to make advanced payments for certain oilfield service equipment and other items used in the normal course of business. As of December 31, 2014 and December 31, 2013, deposits totaled $10.1 million and $1.5 million, respectively. Deposits consist primarily of payments made related to high demand long-lead time items. | ||
Deferred Financing Costs | Deferred Financing Costs | |
Deferred financing costs associated with long-term debt are carried at cost and are amortized to interest expense using the effective interest method over the life of the related debt instrument. When the related debt instrument is retired, any remaining unamortized costs are included in the determination of the gain or loss on the extinguishment of the debt. We record gains and losses from the extinguishment of debt as a part of continuing operations. See “Note 14. Long-term Debt,” for further discussion. | ||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |
Goodwill results from business combinations and represents the excess of the acquisition consideration over the fair value of the net assets acquired. Goodwill and other intangible assets not subject to amortization are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. | ||
The test for impairment of indefinite-lived intangible assets allows us to first assess the qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If our qualitative analysis shows that it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount we will perform the two-step goodwill impairment test. In the first step of the test, a fair value is calculated for each of our reporting units, and that fair value is compared to the carrying value of the reporting unit, including the reporting unit’s goodwill. If the fair value of the reporting unit exceeds its carrying value, there is no impairment, and the second step of the test is not performed. If the carrying value exceeds the fair value for the reporting unit, then the second step of the test is required. | ||
The second step of the test compares the implied fair value of the reporting unit’s goodwill to its carrying value. The implied fair value of the reporting unit’s goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, with the purchase price being equal to the fair value of the reporting unit. If the implied fair value of the reporting unit’s goodwill is in excess of its carrying value, no impairment is recorded. If the carrying value is in excess of the implied fair value, an impairment equal to the excess is recorded. | ||
To assist management in the preparation and analysis of the valuation of our reporting units, we utilize the services of a third-party valuation consultant. The ultimate conclusions of the valuation techniques remain our sole responsibility. The determination of the fair value used in the test is heavily impacted by the market prices of our equity and debt securities, as well as the assumptions and estimates about our future activity levels, profitability and cash flows. | ||
We conduct our annual impairment test as of October 1 of each year. While this test is required on an annual basis, it can also be required more frequently based on changes in external factors or other triggering events. In 2014, we experienced several triggering events that required us to perform additional interim testing for the possible impairment of goodwill, which resulted in the recording of a reduction in value of our goodwill of $41.5 million and other intangible assets of $17.6 million. See “Note 9. Goodwill and Other Intangible Assets,” for further discussion. | ||
Internal-Use Software | Internal-Use Software | |
We capitalize costs incurred during the application development stage of internal-use software and amortize these costs over the software’s estimated useful life, generally five to seven years. Costs incurred related to selection or maintenance of internal-use software are expensed as incurred. | ||
Litigation | Litigation | |
When estimating our liabilities related to litigation, we take into account all available facts and circumstances in order to determine whether a loss is probable and reasonably estimable. | ||
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. We establish a provision for a contingent liability when it is probable that a liability has been incurred and the amount is reasonably estimable. See “Note 15. Commitments and Contingencies.” | ||
Environmental | Environmental | |
Our operations routinely involve the storage, handling, transport and disposal of bulk waste materials, some of which contain oil, contaminants, and regulated substances. These operations are subject to various federal, state and local laws and regulations intended to protect the environment. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed. We record liabilities on an undiscounted basis when our remediation efforts are probable and the costs to conduct such remediation efforts can be reasonably estimated. While our litigation reserves reflect the application of our insurance coverage, our environmental reserves do not reflect management’s assessment of the insurance coverage that may apply to the matters at issue. See “Note 15. Commitments and Contingencies.” | ||
Self-Insurance | Self-Insurance | |
We are largely self-insured against physical damage to our equipment and automobiles as well as workers’ compensation claims. The accruals that we maintain on our consolidated balance sheet relate to these deductibles and self-insured retentions, which we estimate through the use of historical claims data and trend analysis. To assist management with the liability amount for our self-insurance reserves, we utilize the services of a third party actuary. The actual outcome of any claim could differ significantly from estimated amounts. We adjust loss estimates in the calculation of these accruals, based upon actual claim settlements and reported claims. See “Note 15. Commitments and Contingencies.” | ||
Income Taxes | Income Taxes | |
We account for deferred income taxes using the asset and liability method and provide income taxes for all significant temporary differences. Management determines our current tax liability as well as taxes incurred as a result of current operations, but which are deferred until future periods. Current taxes payable represent our liability related to our income tax returns for the current year, while net deferred tax expense or benefit represents the change in the balance of deferred tax assets and liabilities reported on our consolidated balance sheets. Management estimates the changes in both deferred tax assets and liabilities using the basis of assets and liabilities for financial reporting purposes and for enacted rates that management estimates will be in effect when the differences reverse. Further, management makes certain assumptions about the timing of temporary tax differences for the differing treatments of certain items for tax and accounting purposes or whether such differences are permanent. The final determination of our tax liability involves the interpretation of local tax laws, tax treaties, and related authorities in each jurisdiction as well as the significant use of estimates and assumptions regarding the scope of future operations and results achieved and the timing and nature of income earned and expenditures incurred. | ||
We establish valuation allowances to reduce deferred tax assets if we determine that it is more likely than not (e.g., a likelihood of more than 50%) that some portion or all of the deferred tax assets will not be realized in future periods. To assess the likelihood, we use estimates and judgment regarding our future taxable income, as well as the jurisdiction in which this taxable income is generated, to determine whether a valuation allowance is required. Such evidence can include our current financial position, our results of operations, both actual and forecasted results, the reversal of deferred tax liabilities, and tax planning strategies as well as the current and forecasted business economics of our industry. Additionally, we record uncertain tax positions at their net recognizable amount, based on the amount that management deems is more likely than not to be sustained upon ultimate settlement with the tax authorities in the domestic and international tax jurisdictions in which we operate. See “Note 13. Income Taxes” for further discussion of accounting for income taxes, changes in our valuation allowance, components of our tax rate reconciliation and realization of loss carryforwards. | ||
Earnings Per Share | Earnings Per Share | |
Basic earnings per common share is determined by dividing net earnings applicable to common stock by the weighted average number of common shares actually outstanding during the period. Diluted earnings per common share is based on the increased number of shares that would be outstanding assuming conversion of dilutive outstanding convertible securities using the treasury stock and “as if converted” methods. See “Note 10. Earnings Per Share.” | ||
Share-Based Compensation | Share-Based Compensation | |
In the past, we have issued stock options, shares of restricted common stock, restricted stock units, stock appreciation rights (“SARs”), phantom shares and performance units to our employees as part of those employees’ compensation and as a retention tool. For our options, restricted shares and SARs, we calculate the fair value of the awards on the grant date and amortize that fair value to compensation expense ratably over the vesting period of the award, net of estimated and actual forfeitures. The fair value of our stock option and SAR awards are estimated using a Black-Scholes fair value model. The valuation of our stock options and SARs requires us to estimate the expected term of award, which we estimated using the simplified method, as we did not have sufficient historical exercise information because of past legal restrictions on the exercise of our stock options. Additionally, the valuation of our stock option and SARs awards is also dependent on our historical stock price volatility, which we calculate using a lookback period equivalent to the expected term of the award, a risk-free interest rate, and an estimate of future forfeitures. The grant-date fair value of our restricted stock awards is determined using our stock price on the grant date. Our phantom shares and performance units are treated as “liability” awards and carried at fair value at each balance sheet date, with changes in fair value recorded as a component of compensation expense and an offsetting liability on our consolidated balance sheet. We record share-based compensation as a component of general and administrative and direct operating expense for the applicable individual. See “Note 19. Share-Based Compensation.” | ||
Foreign Currency Gains and Losses | Foreign Currency Gains and Losses | |
With respect to our operations in Russia, where the local currency is the functional currency, assets and liabilities are translated at the rates of exchange on the balance sheet date, while income and expense items are translated at average rates of exchange during the period. The resulting gains or losses arising from the translation of accounts from the functional currency to the U.S. dollar are included as a separate component of stockholders’ equity in other comprehensive income until a partial or complete sale or liquidation of our net investment in the foreign entity. As of December 31, 2011, the functional currency for Mexico, Russia and Canada was the local currency and the functional currency for Colombia and the Middle East was the U. S. dollar. Due to significant changes in economic facts and circumstances, the functional currency for Mexico and Canada was changed to the U.S. dollar effective January 1, 2012. See “Note 16. Accumulated Other Comprehensive Loss.” | ||
From time to time our foreign subsidiaries may enter into transactions that are denominated in currencies other than their functional currency. These transactions are initially recorded in the functional currency of that subsidiary based on the applicable exchange rate in effect on the date of the transaction. At the end of each month, these transactions are remeasured to an equivalent amount of the functional currency based on the applicable exchange rates in effect at that time. Any adjustment required to remeasure a transaction to the equivalent amount of the functional currency at the end of the month is recorded in the income or loss of the foreign subsidiary as a component of other income, net. | ||
Comprehensive Income | Comprehensive Income | |
We display comprehensive income (loss) and its components in our financial statements, and we classify items of comprehensive income by their nature in our financial statements and display the accumulated balance of other comprehensive income separately in our stockholders’ equity. | ||
Leases | Leases | |
We lease real property and equipment through various leasing arrangements. When we enter into a leasing arrangement, we analyze the terms of the arrangement to determine whether the lease should be accounted for as an operating lease or a capital lease. | ||
We periodically incur costs to improve the assets that we lease under these arrangements. If the value of the leasehold improvements exceeds our threshold for capitalization, we record the improvement as a component of our property and equipment and amortize the improvement over the useful life of the improvement or the lease term, whichever is shorter. | ||
Certain of our operating lease agreements are structured to include scheduled and specified rent increases over the term of the lease agreement. These increases may be the result of an inducement or “rent holiday” conveyed to us early in the lease, or are included to reflect the anticipated effects of inflation. We recognize scheduled and specified rent increases on a straight-line basis over the term of the lease agreement. In addition, certain of our operating lease agreements contain incentives to induce us to enter into the lease agreement, such as up-front cash payments to us, payment by the lessor of our costs, such as moving expenses, or the assumption by the lessor of our pre-existing lease agreements with third parties. Any payments made to us or on our behalf represent incentives that we consider to be a reduction of our rent expense, and are recognized on a straight-line basis over the term of the lease agreement. | ||
New Accounting Standards 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 Contracts 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. | ||
Capitalized Interest Costs | ||
Significant Accounting Policies [Line Items] | ||
Property and Equipment | Capitalized Interest | |
Interest is capitalized on the average amount of accumulated expenditures for major capital projects under construction using an effective interest rate based on related debt until the underlying assets are placed into service. The capitalized interest is added to the cost of the assets and amortized to depreciation expense over the useful life of the assets, and is included in the depreciation and amortization line in the accompanying consolidated statements of operations. |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Estimated Useful Lives of Asset Classes | As of December 31, 2014, the estimated useful lives of our asset classes are as follows: | |
Description | Years | |
Well service rigs and components | 15-Mar | |
Oilfield trucks, vehicles and related equipment | 7-Apr | |
Fishing and rental tools, coiled tubing units and equipment, tubulars and pressure control equipment | 10-Mar | |
Disposal wells | 15 | |
Furniture and equipment | 7-Mar | |
Buildings and improvements | 15-30 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ||||
Results of Operations and Balance Sheet Disclosures for Businesses Being Sold | The following table presents the results of operations for the Argentina business sold in this transaction for the year ended December 31, 2012 (in thousands): | |||
REVENUES | $ | 75,815 | ||
COSTS AND EXPENSES: | ||||
Direct operating expenses | 72,664 | |||
Depreciation and amortization expense | 143 | |||
General and administrative expenses | 11,232 | |||
Asset retirements and impairments | 85,755 | |||
Operating loss | (93,979 | ) | ||
Interest expense, net of amounts capitalized | 168 | |||
Other expense, net | 3,725 | |||
Loss before taxes | (97,872 | ) | ||
Income tax benefit | 4,304 | |||
Net loss | $ | (93,568 | ) |
Recovered_Sheet2
Other Balance Sheet Information (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Balance Sheet Disclosures [Abstract] | ||||||||
Other Current Assets | The table below presents comparative detailed information about other current assets at December 31, 2014 and 2013: | |||||||
31-Dec-14 | 31-Dec-13 | |||||||
(in thousands) | ||||||||
Other current assets: | ||||||||
Current deferred tax assets | $ | 11,823 | $ | 11,707 | ||||
Prepaid current assets | 28,218 | 28,435 | ||||||
Reinsurance receivable | 9,200 | 9,113 | ||||||
VAT asset | 18,889 | 21,683 | ||||||
Other | 18,724 | 25,608 | ||||||
Total | $ | 86,854 | $ | 96,546 | ||||
Other Non-Current Assets | The table below presents comparative detailed information about other non-current assets at December 31, 2014 and 2013: | |||||||
31-Dec-14 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Other non-current assets: | ||||||||
Deferred tax assets | $ | 35,238 | $ | 22,313 | ||||
Reinsurance receivable | 9,537 | 9,397 | ||||||
Deposits | 10,125 | 1,533 | ||||||
Equity method investments | 987 | 962 | ||||||
Other | 584 | 1,548 | ||||||
Total | $ | 56,471 | $ | 35,753 | ||||
Other Current Liabilities | The table below presents comparative detailed information about other current liabilities at December 31, 2014 and 2013: | |||||||
31-Dec-14 | 31-Dec-13 | |||||||
(in thousands) | ||||||||
Other current liabilities: | ||||||||
Accrued payroll, taxes and employee benefits | $ | 32,477 | $ | 34,956 | ||||
Accrued operating expenditures | 45,899 | 36,573 | ||||||
Income, sales, use and other taxes | 25,892 | 37,064 | ||||||
Self-insurance reserves | 31,359 | 32,129 | ||||||
Accrued interest | 15,241 | 15,285 | ||||||
Accrued insurance premiums | 7,515 | 8,049 | ||||||
Other | 5,844 | 5,889 | ||||||
Total | $ | 164,227 | $ | 169,945 | ||||
Other Non-Current Liabilities | The table below presents comparative detailed information about other non-current liabilities at December 31, 2014 and 2013: | |||||||
31-Dec-14 | 31-Dec-13 | |||||||
(in thousands) | ||||||||
Other non-current accrued liabilities: | ||||||||
Asset retirement obligations | $ | 12,525 | $ | 11,999 | ||||
Environmental liabilities | 5,730 | 6,176 | ||||||
Accrued rent | 263 | 853 | ||||||
Accrued sales, use and other taxes | 5,411 | 5,552 | ||||||
Other | 3,138 | 1,075 | ||||||
Total | $ | 27,067 | $ | 25,655 | ||||
Other_Income_Net_Tables
Other Income, Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
Other Income, Net | The table below presents comparative detailed information about our other income and expense from continuing operations for the years ended December 31, 2014, 2013 and 2012: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Interest income | $ | (82 | ) | $ | (220 | ) | $ | (46 | ) | |||
Foreign exchange (gain) loss | 3,733 | 834 | (4,726 | ) | ||||||||
Other, net | (2,642 | ) | (1,417 | ) | (1,877 | ) | ||||||
Total | $ | 1,009 | $ | (803 | ) | $ | (6,649 | ) | ||||
Recovered_Sheet3
Allowance for Doubtful Accounts (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Valuation Allowance [Abstract] | ||||||||||||||||||||
Allowance for Doubtful Accounts | The table below presents a rollforward of our allowance for doubtful accounts for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||
Additions | ||||||||||||||||||||
Balance at | Charged to | Charged to | Deductions | Balance at | ||||||||||||||||
Beginning | Expense | Other | End of | |||||||||||||||||
of Period | Accounts | Period | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
As of December 31, 2014 | $ | 766 | $ | 2,710 | $ | — | $ | (551 | ) | $ | 2,925 | |||||||||
As of December 31, 2013 | 2,860 | 634 | — | (2,728 | ) | 766 | ||||||||||||||
As of December 31, 2012 | 8,013 | 1,299 | 6 | (6,458 | ) | 2,860 | ||||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Property and equipment consists of the following: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Major classes of property and equipment: | ||||||||
Oilfield service equipment | $ | 1,927,353 | $ | 1,960,208 | ||||
Disposal wells | 88,465 | 87,681 | ||||||
Motor vehicles | 288,523 | 304,244 | ||||||
Furniture and equipment | 132,617 | 122,218 | ||||||
Buildings and land | 91,553 | 86,085 | ||||||
Work in progress | 27,004 | 46,302 | ||||||
Gross property and equipment | 2,555,515 | 2,606,738 | ||||||
Accumulated depreciation | (1,320,257 | ) | (1,241,092 | ) | ||||
Net property and equipment | $ | 1,235,258 | $ | 1,365,646 | ||||
Recovered_Sheet4
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Carrying Amount of Goodwill | The changes in the carrying amount of our goodwill for the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||
U.S. Rig Services | Fluid Management Services | Coiled Tubing Services | Fishing and Rental Services | International | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
31-Dec-12 | $ | 297,719 | $ | 24,479 | $ | 101,795 | $ | 173,463 | $ | 29,025 | $ | 626,481 | ||||||||||||
Impact of foreign currency translation | — | — | — | — | (1,606 | ) | (1,606 | ) | ||||||||||||||||
31-Dec-13 | 297,719 | 24,479 | 101,795 | 173,463 | 27,419 | 624,875 | ||||||||||||||||||
Goodwill impairment | — | — | (19,100 | ) | — | (22,437 | ) | (41,537 | ) | |||||||||||||||
Impact of foreign currency translation | — | — | — | — | (599 | ) | (599 | ) | ||||||||||||||||
31-Dec-14 | $ | 297,719 | $ | 24,479 | $ | 82,695 | $ | 173,463 | $ | 4,383 | $ | 582,739 | ||||||||||||
Other Intangible Assets | The components of our other intangible assets as of December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Noncompete agreements: | ||||||||||||||||||||||||
Gross carrying value | $ | 2,269 | $ | 9,332 | ||||||||||||||||||||
Accumulated amortization | (1,710 | ) | (7,104 | ) | ||||||||||||||||||||
Net carrying value | $ | 559 | $ | 2,228 | ||||||||||||||||||||
Patents, trademarks and tradenames: | ||||||||||||||||||||||||
Gross carrying value | $ | 3,106 | $ | 14,039 | ||||||||||||||||||||
Accumulated amortization | (263 | ) | (223 | ) | ||||||||||||||||||||
Net carrying value | $ | 2,843 | $ | 13,816 | ||||||||||||||||||||
Customer relationships and contracts: | ||||||||||||||||||||||||
Gross carrying value | $ | 59,045 | $ | 100,271 | ||||||||||||||||||||
Accumulated amortization | (52,303 | ) | (78,926 | ) | ||||||||||||||||||||
Net carrying value | $ | 6,742 | $ | 21,345 | ||||||||||||||||||||
Developed technology: | ||||||||||||||||||||||||
Gross carrying value | $ | 8,494 | $ | 7,583 | ||||||||||||||||||||
Accumulated amortization | (4,138 | ) | (3,826 | ) | ||||||||||||||||||||
Net carrying value | $ | 4,356 | $ | 3,757 | ||||||||||||||||||||
Customer backlog: | ||||||||||||||||||||||||
Gross carrying value | $ | 779 | $ | 779 | ||||||||||||||||||||
Accumulated amortization | (779 | ) | (779 | ) | ||||||||||||||||||||
Net carrying value | $ | — | $ | — | ||||||||||||||||||||
Total: | ||||||||||||||||||||||||
Gross carrying value | $ | 73,693 | $ | 132,004 | ||||||||||||||||||||
Accumulated amortization | (59,193 | ) | (90,858 | ) | ||||||||||||||||||||
Net carrying value | $ | 14,500 | $ | 41,146 | ||||||||||||||||||||
Amortization Expense for Intangible Assets with Determinable Lives | Amortization expense for our intangible assets with determinable lives was as follows: | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Noncompete agreements | $ | 1,671 | $ | 2,082 | $ | 3,827 | ||||||||||||||||||
Patents and trademarks | 40 | 40 | 309 | |||||||||||||||||||||
Customer relationships and contracts | 6,749 | 16,726 | 18,941 | |||||||||||||||||||||
Developed technology | 316 | 221 | 221 | |||||||||||||||||||||
Total intangible asset amortization expense | $ | 8,776 | $ | 19,069 | $ | 23,298 | ||||||||||||||||||
Weighted Average Remaining Amortization Periods and Expected Amortization Expense for the Next Five Years for Intangible | Of our intangible assets at December 31, 2014, $2.7 million are indefinite-lived tradenames and patents which are not subject to amortization. These tradenames are tested for impairment annually using a relief from royalty method. 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) | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Noncompete agreements | 1.8 | $ | 309 | $ | 250 | $ | — | $ | — | $ | — | |||||||||||||
Trademarks | 3.4 | 40 | 40 | 40 | 17 | — | ||||||||||||||||||
Customer relationships and contracts | 5 | 2,473 | 1,875 | 1,392 | 431 | 341 | ||||||||||||||||||
Developed technology | 16 | 400 | 400 | 400 | 400 | 324 | ||||||||||||||||||
Total expected intangible asset amortization expense | $ | 3,222 | $ | 2,565 | $ | 1,832 | $ | 848 | $ | 665 | ||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | The following table presents our basic and diluted earnings per share (“EPS”) for the years ended December 31, 2014, 2013 and 2012: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands, except per share amounts) | ||||||||||||
Basic EPS Calculation: | ||||||||||||
Numerator | ||||||||||||
Income (loss) from continuing operations attributable to Key | $ | (178,628 | ) | $ | (21,768 | ) | $ | 101,190 | ||||
Loss from discontinued operations, net of tax | — | — | (93,568 | ) | ||||||||
Income (loss) attributable to Key | $ | (178,628 | ) | $ | (21,768 | ) | $ | 7,622 | ||||
Denominator | ||||||||||||
Weighted average shares outstanding | 153,371 | 152,271 | 151,106 | |||||||||
Basic earnings (loss) per share from continuing operations attributable to Key | $ | (1.16 | ) | $ | (0.14 | ) | $ | 0.67 | ||||
Basic loss per share from discontinued operations | — | — | (0.62 | ) | ||||||||
Basic earnings (loss) per share attributable to Key | $ | (1.16 | ) | $ | (0.14 | ) | $ | 0.05 | ||||
Diluted EPS Calculation: | ||||||||||||
Numerator | ||||||||||||
Income (loss) from continuing operations attributable to Key | $ | (178,628 | ) | $ | (21,768 | ) | $ | 101,190 | ||||
Loss from discontinued operations, net of tax | — | — | (93,568 | ) | ||||||||
Income (loss) attributable to Key | $ | (178,628 | ) | $ | (21,768 | ) | $ | 7,622 | ||||
Denominator | ||||||||||||
Weighted average shares outstanding | 153,371 | 152,271 | 151,106 | |||||||||
Stock options | — | — | 19 | |||||||||
Total | 153,371 | 152,271 | 151,125 | |||||||||
Diluted earnings (loss) per share from continuing operations attributable to Key | $ | (1.16 | ) | $ | (0.14 | ) | $ | 0.67 | ||||
Diluted loss per share from discontinued operations | — | — | (0.62 | ) | ||||||||
Diluted earnings (loss) per share attributable to Key | $ | (1.16 | ) | $ | (0.14 | ) | $ | 0.05 | ||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Asset Retirement Obligation Disclosure [Abstract] | ||||
Summary of Changes in Asset Retirement Obligations | A summary of changes in our asset retirement obligations is as follows (in thousands): | |||
Balance at December 31, 2012 | $ | 11,659 | ||
Additions | 174 | |||
Costs incurred | (135 | ) | ||
Accretion expense | 604 | |||
Disposals | (303 | ) | ||
Balance at December 31, 2013 | 11,999 | |||
Additions | — | |||
Costs incurred | (79 | ) | ||
Accretion expense | 605 | |||
Disposals | — | |||
Balance at December 31, 2014 | $ | 12,525 | ||
Recovered_Sheet5
Estimated Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 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 December 31, 2014 and 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. | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Notes receivable — Argentina operations sale | $ | 8,300 | $ | 8,300 | $ | 12,355 | $ | 12,355 | ||||||||
Financial liabilities: | ||||||||||||||||
6.75% Senior Notes due 2021 | $ | 675,000 | $ | 413,438 | $ | 675,000 | $ | 690,390 | ||||||||
8.375% Senior Notes due 2014 | — | — | 3,573 | 3,627 | ||||||||||||
Credit Facility revolving loans | 70,000 | 70,000 | 85,000 | 85,000 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Components of Income Tax Expense | The components of our income tax expense are as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Current income tax expense: | ||||||||||||
Federal and state | $ | (755 | ) | $ | (8,515 | ) | $ | (16,165 | ) | |||
Foreign | (1,684 | ) | (350 | ) | (5,189 | ) | ||||||
(2,439 | ) | (8,865 | ) | (21,354 | ) | |||||||
Deferred income tax (expense) benefit: | ||||||||||||
Federal and state | 69,508 | (4,870 | ) | (32,729 | ) | |||||||
Foreign | 13,414 | 16,799 | (3,269 | ) | ||||||||
82,922 | 11,929 | (35,998 | ) | |||||||||
Total income tax (expense) benefit | $ | 80,483 | $ | 3,064 | $ | (57,352 | ) | |||||
Sources of Income or Loss from Continuing Operations Before Income Taxes and Noncontrolling Interest | The sources of our income or loss from continuing operations before income taxes and noncontrolling interest were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Domestic income (loss) | $ | (202,973 | ) | $ | 29,086 | $ | 129,865 | |||||
Foreign income (loss) | (56,138 | ) | (53,323 | ) | 30,164 | |||||||
Total income (loss) | $ | (259,111 | ) | $ | (24,237 | ) | $ | 160,029 | ||||
Income Tax Expense Computed by Applying the Statutory Federal Rate | Income tax expense differs from amounts computed by applying the statutory federal rate as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income tax computed at Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes | 1.4 | % | (6.0 | )% | 2.5 | % | ||||||
Meals and entertainment | (0.7 | )% | (7.7 | )% | — | % | ||||||
Foreign rate difference | (0.7 | )% | (8.0 | )% | — | % | ||||||
Non-deductible goodwill | (3.9 | )% | — | % | — | % | ||||||
Other | — | % | (0.7 | )% | (1.7 | )% | ||||||
Effective income tax rate | 31.1 | % | 12.6 | % | 35.8 | % | ||||||
Deferred Tax Assets and Liabilities | As of December 31, 2014 and 2013, our deferred tax assets and liabilities consisted of the following: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss and tax credit carryforwards | $ | 64,107 | $ | 36,860 | ||||||||
Capital loss carryforwards | 21,417 | 21,417 | ||||||||||
Self-insurance reserves | 15,751 | 16,217 | ||||||||||
Allowance for doubtful accounts | 1,046 | 199 | ||||||||||
Accrued liabilities | 6,283 | 8,981 | ||||||||||
Share-based compensation | 7,254 | 7,759 | ||||||||||
Other | 869 | (392 | ) | |||||||||
Total deferred tax assets | 116,727 | 91,041 | ||||||||||
Valuation allowance for deferred tax assets | (22,247 | ) | (22,248 | ) | ||||||||
Net deferred tax assets | 94,480 | 68,793 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (225,136 | ) | (269,167 | ) | ||||||||
Intangible assets | (46,543 | ) | (48,807 | ) | ||||||||
Other | (4,134 | ) | (1,252 | ) | ||||||||
Total deferred tax liabilities | (275,813 | ) | (319,226 | ) | ||||||||
Net deferred tax liability, net of valuation allowance | $ | (181,333 | ) | $ | (250,433 | ) | ||||||
Liabilities for Uncertain Tax Positions | The following table presents the gross activity during 2014 and 2013 related to our liabilities for uncertain tax positions (in thousands): | |||||||||||
Balance at January 1, 2013 | $ | 1,593 | ||||||||||
Additions based on tax positions related to the current year | 251 | |||||||||||
Reductions for tax positions from prior years | (473 | ) | ||||||||||
Settlements | — | |||||||||||
Balance at December 31, 2013 | 1,371 | |||||||||||
Additions based on tax positions related to the current year | 108 | |||||||||||
Reductions for tax positions from prior years | (30 | ) | ||||||||||
Settlements | — | |||||||||||
Balance at December 31, 2014 | 1,449 | |||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Long-Term Debt | The components of our long-term debt are as follows: | |||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||
(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 | 70,000 | 85,000 | ||||||||||
Net unamortized premium on debt | 3,426 | 3,981 | ||||||||||
Total debt | 748,426 | 767,554 | ||||||||||
Less current portion | — | (3,573 | ) | |||||||||
Total long-term debt and capital leases | $ | 748,426 | $ | 763,981 | ||||||||
Redemption Prices (Expressed as Percentages of the Principal Amount Redeemed) | 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 | % | ||||||||||
Consolidated interest coverage ratio | ||||||||||||
• | we maintain a consolidated interest coverage ratio of trailing four quarters EBITDA to interest expense for no less than the ratio specified for such fiscal quarter as indicated in the table below: | |||||||||||
Fiscal Quarter Ending | Ratio | |||||||||||
December 31, 2014 through September 30, 2015 | 2.75 to 1.00 | |||||||||||
December 31, 2015 and thereafter | 3.00 to 1.00 | |||||||||||
Schedule of Repayment Requirements of Long-Term Debt | Presented below is a schedule of the repayment requirements of long-term debt for each of the next five years and thereafter as of December 31, 2014: | |||||||||||
Principal Amount of Long-Term Debt | ||||||||||||
(in thousands) | ||||||||||||
2015 | $ | — | ||||||||||
2016 | 70,000 | |||||||||||
2017 | — | |||||||||||
2018 | — | |||||||||||
2019 | — | |||||||||||
Thereafter | 675,000 | |||||||||||
Total long-term debt | $ | 745,000 | ||||||||||
Interest Expense | Interest expense for the years ended December 31, 2014, 2013 and 2012 consisted of the following: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Cash payments | $ | 49,410 | $ | 51,705 | $ | 46,767 | ||||||
Commitment and agency fees paid | 2,179 | 1,799 | 1,450 | |||||||||
Amortization of premium on debt | (556 | ) | (556 | ) | (463 | ) | ||||||
Amortization of deferred financing costs | 2,800 | 2,800 | 2,695 | |||||||||
Write-off of deferred financing costs | 362 | — | — | |||||||||
Net change in accrued interest | 32 | 63 | 4,431 | |||||||||
Capitalized interest | — | (607 | ) | (1,314 | ) | |||||||
Net interest expense | $ | 54,227 | $ | 55,204 | $ | 53,566 | ||||||
Summary of Deferred Financing Costs Including Cost Capitalized, Amortized, and Written Off in Determination of Loss on Extinguishment of Debt | A summary of deferred financing costs including capitalized costs, write-offs and amortization, for the years ended December 31, 2014 and 2013 are presented in the table below (in thousands): | |||||||||||
Balance at December 31, 2012 | $ | 16,628 | ||||||||||
Capitalized costs | 69 | |||||||||||
Amortization | (2,800 | ) | ||||||||||
Balance at December 31, 2013 | 13,897 | |||||||||||
Amortization | (2,800 | ) | ||||||||||
Write-off | (362 | ) | ||||||||||
Balance at December 31, 2014 | $ | 10,735 | ||||||||||
Recovered_Sheet6
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | As of December 31, 2014, the future minimum lease payments under non-cancelable operating leases are as follows (in thousands): | |||
Lease Payments | ||||
2015 | $ | 13,960 | ||
2016 | 9,006 | |||
2017 | 4,250 | |||
2018 | 2,632 | |||
2019 | 2,012 | |||
Thereafter | 3,057 | |||
Total | $ | 34,917 | ||
Recovered_Sheet7
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||
Accumulated Other Comprehensive Loss | The components of our accumulated other comprehensive loss are as follows (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Foreign currency translation loss | $ | (37,280 | ) | $ | (15,414 | ) | ||
Accumulated other comprehensive loss | $ | (37,280 | ) | $ | (15,414 | ) |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Share-based Compensation [Abstract] | |||||||||||
Summary of Stock Option Activity | The following tables summarize the stock option activity (shares in thousands): | ||||||||||
Year Ended December 31, 2014 | |||||||||||
Options | Weighted Average | Weighted Average | |||||||||
Exercise Price | Fair Value | ||||||||||
Outstanding at beginning of period | 1,372 | $ | 14.1 | $ | 6 | ||||||
Granted | — | $ | — | $ | — | ||||||
Exercised | — | $ | — | $ | — | ||||||
Cancelled or expired | (53 | ) | $ | 14.7 | $ | 6.23 | |||||
Outstanding at end of period | 1,319 | $ | 14.07 | $ | 5.99 | ||||||
Exercisable at end of period | 1,319 | $ | 14.07 | $ | 5.99 | ||||||
Summary of Common Share Awards Issued | The following tables summarize information for the year ended December 31, 2014 about our unvested common stock awards that we have outstanding (shares in thousands): | ||||||||||
Year Ended December 31, 2014 | |||||||||||
Outstanding | Weighted Average | ||||||||||
Issuance Price | |||||||||||
Shares at beginning of period | 2,246 | $ | 9.68 | ||||||||
Granted | 1,893 | $ | 7.31 | ||||||||
Vested | (1,187 | ) | $ | 10.12 | |||||||
Cancelled | (386 | ) | $ | 8.41 | |||||||
Shares at end of period | 2,566 | $ | 7.92 | ||||||||
Summary of Performance Units By Placement | 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 | % | — | % | |||||||
Eleventh | 9 | % | — | % | |||||||
Twelfth | — | % | — | % |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||
Supplemental Cash Flow Information | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Noncash investing and financing activities: | ||||||||||||
Sale of Argentina operations/Notes receivable | $ | — | $ | — | $ | 12,955 | ||||||
Asset retirement obligations | — | 174 | — | |||||||||
Supplemental cash flow information: | ||||||||||||
Cash paid for interest | $ | 51,589 | $ | 53,504 | $ | 48,217 | ||||||
Cash paid for taxes | 2,699 | 35,239 | 13,148 | |||||||||
Tax refunds | 13,109 | 26,361 | 18,681 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||
Segment Information | The following table presents our segment information as of and for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||||
As of and for the year ended December 31, 2014 | ||||||||||||||||||||||||||||||||
U.S. Rig Service | Fluid Management Services | Coiled Tubing Services | Fishing and Rental Services | International | Functional | Reconciling | Total | |||||||||||||||||||||||||
Support(2) | Eliminations | |||||||||||||||||||||||||||||||
Revenues from external customers | $ | 679,045 | $ | 249,589 | $ | 173,364 | $ | 212,598 | $ | 112,740 | $ | — | $ | — | $ | 1,427,336 | ||||||||||||||||
Intersegment revenues | 706 | 1,258 | — | 6,078 | 9,142 | 1,988 | (19,172 | ) | — | |||||||||||||||||||||||
Depreciation and amortization | 59,190 | 31,870 | 23,375 | 44,004 | 30,311 | 11,988 | — | 200,738 | ||||||||||||||||||||||||
Impairment expense | — | — | 19,100 | 73,389 | 28,687 | — | — | 121,176 | ||||||||||||||||||||||||
Other operating expenses | 523,468 | 214,392 | 141,708 | 154,149 | 119,174 | 156,406 | — | 1,309,297 | ||||||||||||||||||||||||
Operating income (loss) | 96,387 | 3,327 | (10,819 | ) | (58,944 | ) | (65,432 | ) | (168,394 | ) | — | (203,875 | ) | |||||||||||||||||||
Interest expense, net of amounts capitalized | — | — | — | — | 32 | 54,195 | — | 54,227 | ||||||||||||||||||||||||
Income (loss) from continuing operations before tax | 96,922 | 3,581 | (10,442 | ) | (58,794 | ) | (68,924 | ) | (221,454 | ) | — | (259,111 | ) | |||||||||||||||||||
Long-lived assets(1) | 796,654 | 181,041 | 196,265 | 326,218 | 270,893 | 278,904 | (150,272 | ) | 1,899,703 | |||||||||||||||||||||||
Total assets | 1,608,122 | 295,670 | 260,375 | 669,823 | 397,295 | (510,229 | ) | (387,558 | ) | 2,333,498 | ||||||||||||||||||||||
Capital expenditures, excluding acquisitions | 90,982 | 3,920 | 10,815 | 30,389 | 7,560 | 17,973 | — | 161,639 | ||||||||||||||||||||||||
As of and for the year ended December 31, 2013 | ||||||||||||||||||||||||||||||||
U.S. Rig Service | Fluid Management Services | Coiled Tubing Services | Fishing and Rental Services | International | Functional | Reconciling | Total | |||||||||||||||||||||||||
Support(2) | Eliminations | |||||||||||||||||||||||||||||||
Revenues from external customers | $ | 673,465 | $ | 271,709 | $ | 193,184 | $ | 238,611 | $ | 214,707 | $ | — | $ | — | $ | 1,591,676 | ||||||||||||||||
Intersegment revenues | 4,283 | 700 | 10 | 5,637 | 8,715 | 509 | (19,854 | ) | — | |||||||||||||||||||||||
Depreciation and amortization | 64,804 | 37,510 | 25,877 | 53,785 | 30,227 | 13,094 | — | 225,297 | ||||||||||||||||||||||||
Other operating expenses | 475,103 | 230,161 | 143,880 | 153,517 | 211,137 | 122,417 | — | 1,336,215 | ||||||||||||||||||||||||
Operating income (loss) | 133,558 | 4,038 | 23,427 | 31,309 | (26,657 | ) | (135,511 | ) | — | 30,164 | ||||||||||||||||||||||
Interest expense, net of amounts capitalized | 1 | — | — | — | 62 | 55,141 | — | 55,204 | ||||||||||||||||||||||||
Income (loss) from continuing operations before tax | 133,642 | 4,110 | 23,436 | 31,351 | (26,795 | ) | (189,981 | ) | — | (24,237 | ) | |||||||||||||||||||||
Long-lived assets(1) | 746,021 | 222,075 | 246,889 | 420,486 | 333,273 | 301,032 | (188,459 | ) | 2,081,317 | |||||||||||||||||||||||
Total assets | 1,511,419 | 279,950 | 246,180 | 637,163 | 497,938 | (181,940 | ) | (403,240 | ) | 2,587,470 | ||||||||||||||||||||||
Capital expenditures, excluding acquisitions | 79,761 | 7,307 | 12,682 | 25,378 | 19,541 | 19,468 | — | 164,137 | ||||||||||||||||||||||||
As of and for the year ended December 31, 2012 | ||||||||||||||||||||||||||||||||
U.S. Rig Service | Fluid Management Services | Coiled Tubing Services | Fishing and Rental Services | International | Functional | Reconciling | Total | |||||||||||||||||||||||||
Support(2) | Eliminations | |||||||||||||||||||||||||||||||
Revenues from external customers | $ | 788,512 | $ | 353,597 | $ | 215,876 | $ | 268,783 | $ | 333,302 | $ | — | $ | — | $ | 1,960,070 | ||||||||||||||||
Intersegment revenues | 39,257 | 263 | 15 | 4,332 | 6,273 | 15 | (50,155 | ) | — | |||||||||||||||||||||||
Depreciation and amortization | 69,513 | 40,637 | 25,205 | 47,147 | 19,643 | 11,638 | — | 213,783 | ||||||||||||||||||||||||
Other operating expenses | 524,704 | 287,396 | 175,542 | 171,283 | 250,667 | 129,749 | — | 1,539,341 | ||||||||||||||||||||||||
Operating income (loss) | 194,295 | 25,564 | 15,129 | 50,353 | 62,992 | (141,387 | ) | — | 206,946 | |||||||||||||||||||||||
Interest expense, net of amounts capitalized | 11 | — | 1 | 5 | 172 | 53,377 | — | 53,566 | ||||||||||||||||||||||||
Income (loss) from continuing operations before tax | 194,558 | 25,712 | 15,182 | 50,394 | 68,036 | (193,853 | ) | — | 160,029 | |||||||||||||||||||||||
Long-lived assets(1) | 749,031 | 250,872 | 265,786 | 453,690 | 334,329 | 286,369 | (168,283 | ) | 2,171,794 | |||||||||||||||||||||||
Total assets | 1,343,275 | 261,310 | 215,125 | 595,963 | 541,882 | 153,665 | (349,632 | ) | 2,761,588 | |||||||||||||||||||||||
Capital expenditures, excluding acquisitions | 69,105 | 35,491 | 45,545 | 97,660 | 171,095 | 28,264 | — | 447,160 | ||||||||||||||||||||||||
-1 | Long-lived assets include: fixed assets, goodwill, intangibles and other assets. | |||||||||||||||||||||||||||||||
-2 | Functional Support is geographically located in the United States. |
Recovered_Sheet8
Unaudited Quarterly Results of Operations (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Summarized Quarterly Information | our summarized, unaudited quarterly information for the two most recent years covered by these consolidated financial statements (in thousands, except for per share data): | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Year Ended December 31, 2014: | ||||||||||||||||
Revenues | $ | 356,141 | $ | 350,595 | $ | 365,798 | $ | 354,802 | ||||||||
Direct operating expenses | 258,302 | 262,883 | 272,112 | 266,354 | ||||||||||||
Net loss | (11,899 | ) | (52,196 | ) | (62,229 | ) | (52,304 | ) | ||||||||
Loss attributable to Key | (11,899 | ) | (52,196 | ) | (62,229 | ) | (52,304 | ) | ||||||||
Loss per share(1): | ||||||||||||||||
Basic and Diluted | (0.08 | ) | (0.34 | ) | (0.41 | ) | (0.34 | ) | ||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
Year Ended December 31, 2013: | ||||||||||||||||
Revenues | $ | 428,449 | $ | 411,390 | $ | 389,673 | $ | 362,164 | ||||||||
Direct operating expenses | 299,182 | 287,102 | 268,297 | 259,881 | ||||||||||||
Net loss | (186 | ) | (3,772 | ) | (4,697 | ) | (12,518 | ) | ||||||||
Loss attributable to Key | (274 | ) | (4,128 | ) | (4,848 | ) | (12,518 | ) | ||||||||
Loss per share(1): | ||||||||||||||||
Basic and Diluted | — | (0.03 | ) | (0.03 | ) | (0.08 | ) | |||||||||
-1 | Quarterly earnings per common share are based on the weighted average number of shares outstanding during the quarter, and the sum of the quarters may not equal annual earnings per common share. |
Recovered_Sheet9
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Condensed Consolidating Financial Statements [Abstract] | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Current assets | $ | 39,020 | $ | 341,188 | $ | 53,587 | $ | — | $ | 433,795 | ||||||||||
Property and equipment, net | — | 1,128,776 | 106,482 | — | 1,235,258 | |||||||||||||||
Goodwill | — | 578,358 | 4,381 | — | 582,739 | |||||||||||||||
Deferred financing costs, net | 10,735 | — | — | — | 10,735 | |||||||||||||||
Intercompany notes and accounts receivable and investment in subsidiaries | 3,170,874 | 1,426,160 | 42,352 | (4,639,386 | ) | — | ||||||||||||||
Other assets | — | 56,664 | 14,307 | — | 70,971 | |||||||||||||||
TOTAL ASSETS | $ | 3,220,629 | $ | 3,531,146 | $ | 221,109 | $ | (4,639,386 | ) | $ | 2,333,498 | |||||||||
Liabilities and equity: | ||||||||||||||||||||
Current liabilities | $ | 22,046 | $ | 192,079 | $ | 27,733 | $ | — | $ | 241,858 | ||||||||||
Long-term debt and capital leases, less current portion | 748,426 | — | — | — | 748,426 | |||||||||||||||
Intercompany notes and accounts payable | 1,162,648 | 2,696,051 | 123,810 | (3,982,509 | ) | — | ||||||||||||||
Deferred tax liabilities | 228,199 | 398 | (134 | ) | (69 | ) | 228,394 | |||||||||||||
Other long-term liabilities | 1,264 | 55,182 | 311 | — | 56,757 | |||||||||||||||
Equity | 1,058,046 | 587,436 | 69,389 | (656,808 | ) | 1,058,063 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 3,220,629 | $ | 3,531,146 | $ | 221,109 | $ | (4,639,386 | ) | $ | 2,333,498 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
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 STATEMENTS OF OPERATIONS | |||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | $ | — | $ | 1,325,670 | $ | 125,262 | $ | (23,596 | ) | 1,427,336 | ||||||||||
Direct operating expense | — | 979,018 | 90,584 | (9,951 | ) | 1,059,651 | ||||||||||||||
Depreciation and amortization expense | — | 187,676 | 13,062 | — | 200,738 | |||||||||||||||
General and administrative expense | 941 | 239,276 | 23,054 | (13,625 | ) | 249,646 | ||||||||||||||
Impairment expense | — | 92,489 | 28,687 | — | 121,176 | |||||||||||||||
Operating loss | (941 | ) | (172,789 | ) | (30,125 | ) | (20 | ) | (203,875 | ) | ||||||||||
Interest expense, net of amounts capitalized | 54,195 | — | 32 | — | 54,227 | |||||||||||||||
Other (income) expense, net | (1,976 | ) | 666 | 2,276 | 43 | 1,009 | ||||||||||||||
Loss from continuing operations before taxes | (53,160 | ) | (173,455 | ) | (32,433 | ) | (63 | ) | (259,111 | ) | ||||||||||
Income tax benefit | 68,883 | 10,551 | 1,179 | (130 | ) | 80,483 | ||||||||||||||
Income (loss) from continuing operations | 15,723 | (162,904 | ) | (31,254 | ) | (193 | ) | (178,628 | ) | |||||||||||
Discontinued operations | — | — | — | — | — | |||||||||||||||
Net income (loss) | 15,723 | (162,904 | ) | (31,254 | ) | (193 | ) | (178,628 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | — | — | — | |||||||||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | $ | 15,723 | $ | (162,904 | ) | $ | (31,254 | ) | $ | (193 | ) | $ | (178,628 | ) | ||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | $ | — | $ | 1,494,683 | $ | 161,536 | $ | (64,543 | ) | $ | 1,591,676 | |||||||||
Direct operating expense | — | 1,046,376 | 118,028 | (49,942 | ) | 1,114,462 | ||||||||||||||
Depreciation and amortization expense | — | 214,334 | 10,963 | — | 225,297 | |||||||||||||||
General and administrative expense | 1,077 | 202,599 | 33,336 | (15,259 | ) | 221,753 | ||||||||||||||
Operating income (loss) | (1,077 | ) | 31,374 | (791 | ) | 658 | 30,164 | |||||||||||||
Interest expense, net of amounts capitalized | 55,747 | (606 | ) | 63 | — | 55,204 | ||||||||||||||
Other (income) expense, net | (3,616 | ) | (1,126 | ) | 316 | 3,623 | (803 | ) | ||||||||||||
Income (loss) from continuing operations before taxes | (53,208 | ) | 33,106 | (1,170 | ) | (2,965 | ) | (24,237 | ) | |||||||||||
Income tax (expense) benefit | (13,385 | ) | 15,456 | 993 | — | 3,064 | ||||||||||||||
Income (loss) from continuing operations | (66,593 | ) | 48,562 | (177 | ) | (2,965 | ) | (21,173 | ) | |||||||||||
Discontinued operations | — | — | — | — | — | |||||||||||||||
Net income (loss) | (66,593 | ) | 48,562 | (177 | ) | (2,965 | ) | (21,173 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | 595 | — | 595 | |||||||||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | $ | (66,593 | ) | $ | 48,562 | $ | (772 | ) | $ | (2,965 | ) | $ | (21,768 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | $ | — | $ | 1,867,198 | $ | 165,248 | $ | (72,376 | ) | $ | 1,960,070 | |||||||||
Direct operating expense | — | 1,254,087 | 117,293 | (62,535 | ) | 1,308,845 | ||||||||||||||
Depreciation and amortization expense | — | 205,755 | 8,028 | — | 213,783 | |||||||||||||||
General and administrative expense | 1,046 | 216,069 | 24,853 | (11,472 | ) | 230,496 | ||||||||||||||
Operating income (loss) | (1,046 | ) | 191,287 | 15,074 | 1,631 | 206,946 | ||||||||||||||
Interest expense, net of amounts capitalized | 54,690 | (1,292 | ) | 170 | (2 | ) | 53,566 | |||||||||||||
Other income, net | (5,500 | ) | (1,474 | ) | (3,142 | ) | 3,467 | (6,649 | ) | |||||||||||
Income (loss) from continuing operations before taxes | (50,236 | ) | 194,053 | 18,046 | (1,834 | ) | 160,029 | |||||||||||||
Income tax expense | (48,893 | ) | (3,385 | ) | (5,073 | ) | (1 | ) | (57,352 | ) | ||||||||||
Income (loss) from continuing operations | (99,129 | ) | 190,668 | 12,973 | (1,835 | ) | 102,677 | |||||||||||||
Discontinued operations | — | — | (93,568 | ) | — | (93,568 | ) | |||||||||||||
Net income (loss) | (99,129 | ) | 190,668 | (80,595 | ) | (1,835 | ) | 9,109 | ||||||||||||
Income attributable to noncontrolling interest | — | — | 1,487 | — | 1,487 | |||||||||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | $ | (99,129 | ) | $ | 190,668 | $ | (82,082 | ) | $ | (1,835 | ) | $ | 7,622 | |||||||
Condensed Consolidating Unaudited Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 158,707 | $ | 5,461 | $ | — | $ | 164,168 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | — | (154,952 | ) | (6,687 | ) | — | (161,639 | ) | ||||||||||||
Payment of accrued acquisition cost of the 51% noncontrolling interest in AlMansoori Key Energy Services LLC | — | (5,100 | ) | — | — | (5,100 | ) | |||||||||||||
Intercompany notes and accounts | — | (18,892 | ) | — | 18,892 | — | ||||||||||||||
Other investing activities, net | — | 19,899 | — | — | 19,899 | |||||||||||||||
Net cash used in investing activities | — | (159,045 | ) | (6,687 | ) | 18,892 | (146,840 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Repayment of long-term debt | (3,573 | ) | — | — | — | (3,573 | ) | |||||||||||||
Proceeds from borrowings on revolving credit facility | 260,000 | — | — | — | 260,000 | |||||||||||||||
Repayments on revolving credit facility | (275,000 | ) | — | — | — | (275,000 | ) | |||||||||||||
Repurchases of common stock | (2,245 | ) | — | — | — | (2,245 | ) | |||||||||||||
Intercompany notes and accounts | 18,892 | — | — | (18,892 | ) | — | ||||||||||||||
Other financing activities, net | (1,240 | ) | — | — | — | (1,240 | ) | |||||||||||||
Net cash used in financing activities | (3,166 | ) | — | — | (18,892 | ) | (22,058 | ) | ||||||||||||
Effect of changes in exchange rates on cash | — | — | 3,728 | — | 3,728 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (3,166 | ) | (338 | ) | 2,502 | — | (1,002 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 23,115 | 788 | 4,403 | — | 28,306 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 19,949 | $ | 450 | $ | 6,905 | $ | — | $ | 27,304 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 222,364 | $ | 6,279 | $ | — | $ | 228,643 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | — | (157,443 | ) | (6,694 | ) | — | (164,137 | ) | ||||||||||||
Acquisition of the 50% noncontrolling interest in Geostream | — | (14,600 | ) | — | — | (14,600 | ) | |||||||||||||
Intercompany notes and accounts | — | (68,597 | ) | — | 68,597 | — | ||||||||||||||
Other investing activities, net | — | 17,856 | — | — | 17,856 | |||||||||||||||
Net cash used in investing activities | — | (222,784 | ) | (6,694 | ) | 68,597 | (160,881 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Repayments of capital lease obligations | — | (393 | ) | — | — | (393 | ) | |||||||||||||
Proceeds from borrowings on revolving credit facility | 220,000 | — | — | — | 220,000 | |||||||||||||||
Repayments on revolving credit facility | (300,000 | ) | — | — | — | (300,000 | ) | |||||||||||||
Payment of deferred financing cost | (69 | ) | — | — | — | (69 | ) | |||||||||||||
Repurchases of common stock | (3,196 | ) | — | — | — | (3,196 | ) | |||||||||||||
Intercompany notes and accounts | 68,597 | — | — | (68,597 | ) | — | ||||||||||||||
Other financing activities, net | (1,834 | ) | — | — | — | (1,834 | ) | |||||||||||||
Net cash used in financing activities | (16,502 | ) | (393 | ) | — | (68,597 | ) | (85,492 | ) | |||||||||||
Effect of changes in exchange rates on cash | — | — | 87 | — | 87 | |||||||||||||||
Net decrease in cash and cash equivalents | (16,502 | ) | (813 | ) | (328 | ) | — | (17,643 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 39,617 | 1,601 | 4,731 | — | 45,949 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 23,115 | $ | 788 | $ | 4,403 | $ | — | $ | 28,306 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 349,208 | $ | 20,452 | $ | — | $ | 369,660 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | — | (430,045 | ) | (17,115 | ) | — | (447,160 | ) | ||||||||||||
Intercompany notes and accounts | 676 | 49,926 | — | (50,602 | ) | — | ||||||||||||||
Other investing activities, net | (676 | ) | 19,127 | — | — | 18,451 | ||||||||||||||
Net cash used in investing activities | — | (360,992 | ) | (17,115 | ) | (50,602 | ) | (428,709 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from long term debt | 205,000 | — | — | — | 205,000 | |||||||||||||||
Repayments of capital lease obligations | — | (1,959 | ) | — | — | (1,959 | ) | |||||||||||||
Proceeds from borrowings on revolving credit facility | 275,000 | — | — | — | 275,000 | |||||||||||||||
Repayments on revolving credit facility | (405,000 | ) | — | — | — | (405,000 | ) | |||||||||||||
Payment of deferred financing cost | (4,597 | ) | — | — | — | (4,597 | ) | |||||||||||||
Repurchases of common stock | (7,519 | ) | — | — | — | (7,519 | ) | |||||||||||||
Intercompany notes and accounts | (49,926 | ) | (676 | ) | — | 50,602 | — | |||||||||||||
Other financing activities, net | 4,986 | 8,035 | — | — | 13,021 | |||||||||||||||
Net cash provided by financing activities | 17,944 | 5,400 | — | 50,602 | 73,946 | |||||||||||||||
Effect of changes in exchange rates on cash | — | — | (4,391 | ) | — | (4,391 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 17,944 | (6,384 | ) | (1,054 | ) | — | 10,506 | |||||||||||||
Cash and cash equivalents at beginning of period | 21,673 | 7,985 | 5,785 | — | 35,443 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 39,617 | $ | 1,601 | $ | 4,731 | $ | — | $ | 45,949 | ||||||||||
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||||
Goodwill impairment | ($41,537,000) | ||||
Depreciation expense | 191,900,000 | 206,200,000 | 190,500,000 | ||
Salvage value as a percentage of operational asset's acquisition cost | 10.00% | 10.00% | |||
Deposits | 10,100,000 | 10,100,000 | 1,500,000 | ||
Indefinite-Lived Trade Names | 2,700,000 | 2,700,000 | |||
Tangible Asset Impairment Charges | 1,300,000 | 60,800,000 | 62,100,000 | ||
Impairment of intangible assets | 17,600,000 | ||||
Customer Concentration Risk | Sales Revenue, Net [Member] | Chevron Texaco Exploration and Production [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration of risk percentage | 15.00% | 15.00% | |||
Customer Concentration Risk | Sales Revenue, Net [Member] | Pemex [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration of risk percentage | 12.00% | ||||
Customer Concentration Risk | Sales Revenue, Net [Member] | Oxy Inc [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration of risk percentage | 10.00% | ||||
Customer Concentration Risk | Accounts Receivable | Pemex [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration of risk percentage | 19.00% | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Cash in bank deposit and brokerage accounts guaranteed by FDIC | $250,000 | $250,000 | |||
Capital lease, terms | 60 months | ||||
Capitalized internal-use software, useful life | 7 years | ||||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Accounts reviewed for collectability, days past due from invoice date | 150 days | ||||
Capital lease, terms | 55 months | ||||
Capitalized internal-use software, useful life | 5 years | ||||
The likelihood that some portion or all of the deferred tax assets will not be realized in future periods | 50.00% |
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies - Estimated Useful Lives of Asset Classes (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Well Service Rigs And Components | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 3 years |
Well Service Rigs And Components | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 15 years |
Oilfield Trucks, Vehicles And Related Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 4 years |
Oilfield Trucks, Vehicles And Related Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 7 years |
Well Intervention Units And Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 3 years |
Well Intervention Units And Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 10 years |
Fishing and rental tools, tubular and pressure control equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 3 years |
Fishing and rental tools, tubular and pressure control equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 10 years |
Disposal Wells | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 15 years |
Disposal Wells | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 15 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 3 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 7 years |
Building and Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 15 years |
Building and Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, useful life | 30 years |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 10 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 07, 2010 | Sep. 01, 2009 | Aug. 05, 2013 | Apr. 09, 2013 | Oct. 31, 2008 | |
person | ||||||||
Business Acquisition [Line Items] | ||||||||
Number Of Board Of Directors Seats | 5 | |||||||
Payment of accrued acquisition cost of the 51% noncontrolling interest in AlMansoori Key Energy Services LLC | $5,100,000 | $0 | $0 | |||||
Al Mansoori Petroleum Services Limited Liability Company [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity Method Investment, Additional Percentage Aquired | 51.00% | 51.00% | ||||||
Key Energy Services Incorporation And Subsidiaries [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 49.00% | |||||||
Number Of Board Of Directors Seats | 3 | |||||||
AlMansoori Key Energy Services LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Purchase Price | 5,100,000 | |||||||
Geostream [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership percentage | 50.00% | 26.00% | ||||||
Equity Method Investment, Aggregate Cost | 14,600,000 | 17,400,000 | ||||||
Business acquisition, percentage acquired interest | 24.00% | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Percentage | 50.00% | |||||||
Business Acquisition, Purchase Price | $16,400,000 |
Discontinued_Operations_Sale_o
Discontinued Operations - Sale of Argentina Narrative (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of discontinued operations | $0 | $0 | $2,000,000 | |||
Argentina Operations [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash and noncash proceeds from divestiture of business | 12,500,000 | |||||
Proceeds from sale of discontinued operations | 2,000,000 | |||||
Gain (loss) on sale of discontinued operations | -85,800,000 | |||||
Noncash impairment charge | 41,500,000 | |||||
Write off of previously recorded translation adjustment | $51,900,000 |
Recovered_Sheet10
Discontinued Operations - Sale Of Argentina, Income Statement Disclosures (Details) (USD $) | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenues | $354,802,000 | $365,798,000 | $350,595,000 | $356,141,000 | $362,164,000 | $389,673,000 | $411,390,000 | $428,449,000 | $1,427,336,000 | $1,591,676,000 | $1,960,070,000 | |
Costs and Expenses [Abstract] | ||||||||||||
Direct operating expenses | 266,354,000 | 272,112,000 | 262,883,000 | 258,302,000 | 259,881,000 | 268,297,000 | 287,102,000 | 299,182,000 | 1,059,651,000 | 1,114,462,000 | 1,308,845,000 | |
Depreciation and amortization expense | 200,738,000 | 225,297,000 | 213,783,000 | |||||||||
General and administrative expenses | 249,646,000 | 221,753,000 | 230,496,000 | |||||||||
Asset retirements and impairments | 0 | |||||||||||
Operating income (loss) | -203,875,000 | 30,164,000 | 206,946,000 | |||||||||
Interest expense, net of amounts capitalized | 54,227,000 | 55,204,000 | 53,566,000 | |||||||||
Other expense, net | 1,009,000 | -803,000 | -6,649,000 | |||||||||
Income (loss) from continuing operations before tax | -259,111,000 | -24,237,000 | 160,029,000 | |||||||||
Income tax benefit | 80,483,000 | 3,064,000 | -57,352,000 | |||||||||
Net income (loss) | -52,304,000 | -62,229,000 | -52,196,000 | -11,899,000 | -12,518,000 | -4,697,000 | -3,772,000 | -186,000 | -178,628,000 | -21,173,000 | 9,109,000 | |
Segment, Discontinued Operations [Member] | Argentina Operations [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenues | 75,815,000 | |||||||||||
Costs and Expenses [Abstract] | ||||||||||||
Direct operating expenses | 72,664,000 | |||||||||||
Depreciation and amortization expense | 143,000 | |||||||||||
General and administrative expenses | 11,232,000 | |||||||||||
Asset retirements and impairments | 85,755,000 | |||||||||||
Operating income (loss) | -93,979,000 | |||||||||||
Interest expense, net of amounts capitalized | 168,000 | |||||||||||
Other expense, net | 3,725,000 | |||||||||||
Income (loss) from continuing operations before tax | -97,872,000 | |||||||||||
Income tax benefit | 4,304,000 | |||||||||||
Net income (loss) | ($93,568,000) |
SEVERANCE_CONTRACT_TERMINATION1
SEVERANCE, CONTRACT TERMINATION AND MOBILIZATION COSTS (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | |
Severance Costs | $6.30 |
Restructuring and Related Cost, Lease Cancellation Fees | 1.9 |
Restructuring and Related Cost, Equipment Mobilization Costs | 2.3 |
Operating Expense [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Redeployment Costs | 8.3 |
General and Administrative Expense [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Redeployment Costs | 2.2 |
International | |
Restructuring Reserve [Roll Forward] | |
Expense | 7.2 |
Fishing And Rental Services [Member] | |
Restructuring Reserve [Roll Forward] | |
Expense | 2.3 |
U.S. Rig Services [Member] | |
Restructuring Reserve [Roll Forward] | |
Expense | 0.3 |
Functional Support [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Cost, Redeployment Costs | $0.70 |
Other_Balance_Sheet_Informatio1
Other Balance Sheet Information - Other Current Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other current assets: | ||
Deferred tax assets | $11,823 | $11,707 |
Prepaid current assets | 28,218 | 28,435 |
Reinsurance receivable | 9,200 | 9,113 |
VAT asset | 18,889 | 21,683 |
Other | 18,724 | 25,608 |
Total | $86,854 | $96,546 |
Recovered_Sheet11
OTHER BALANCE SHEET INFORMATION Other Balance Sheet Information - Other-Non Current Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other non-current assets: | ||
Deferred tax assets | $35,238 | $22,313 |
Reinsurance receivable | 9,537 | 9,397 |
Deposits | 10,125 | 1,533 |
Equity method investments | 987 | 962 |
Other | 584 | 1,548 |
Total | $56,471 | $35,753 |
Other_Balance_Sheet_Informatio2
Other Balance Sheet Information - Other Current Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other current liabilities: | ||
Accrued payroll, taxes and employee benefits | $32,477 | $34,956 |
Accrued operating expenditures | 45,899 | 36,573 |
Income, sales, use and other taxes | 25,892 | 37,064 |
Self-insurance reserves | 31,359 | 32,129 |
Accrued interest | 15,241 | 15,285 |
Insurance premium financing | 7,515 | 8,049 |
Other | 5,844 | 5,889 |
Total | $164,227 | $169,945 |
Other_Balance_Sheet_Informatio3
Other Balance Sheet Information - Other Non-Current Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other non-current liabilities: | ||
Asset retirement obligations | $12,525 | $11,999 |
Environmental liabilities | 5,730 | 6,176 |
Accrued rent | 263 | 853 |
Accrued sales, use and other taxes | 5,411 | 5,552 |
Other | 3,138 | 1,075 |
Total | $27,067 | $25,655 |
Other_Income_Net_Detail
Other Income, Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expenses [Abstract] | |||
Interest income | ($82) | ($220) | ($46) |
Foreign exchange (gain) loss | 3,733 | 834 | -4,726 |
Other, net | -2,642 | -1,417 | -1,877 |
Total | $1,009 | ($803) | ($6,649) |
Allowance_for_Doubtful_Account1
Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $766 | $2,860 | $8,013 |
Charged to Expense | 2,710 | 634 | 1,299 |
Charged to Other Accounts | 0 | 0 | 6 |
Deductions | -551 | -2,728 | -6,458 |
Balance at End of Period | $2,925 | $766 | $2,860 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $2,555,515 | $2,606,738 |
Accumulated depreciation | -1,320,257 | -1,241,092 |
Property and equipment, net | 1,235,258 | 1,365,646 |
Oilfield service equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,927,353 | 1,960,208 |
Disposal Wells | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 88,465 | 87,681 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 288,523 | 304,244 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 132,617 | 122,218 |
Buildings and land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 91,553 | 86,085 |
Work in progres | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $27,004 | $46,302 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||||
Capitalized interest cost | $0 | $607,000 | $1,314,000 | ||
Depreciation of assets held under capital leases | 0 | 1,900,000 | 2,800,000 | ||
Tangible Asset Impairment Charges | $1,300,000 | $60,800,000 | $62,100,000 |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Beginning Balance | $624,875 | $626,481 |
Impact of foreign currency translation | -599 | -1,606 |
Goodwill impairment | -41,537 | |
Ending Balance | 582,739 | 624,875 |
U.S. Rig Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 297,719 | 297,719 |
Impact of foreign currency translation | 0 | 0 |
Goodwill impairment | 0 | |
Ending Balance | 297,719 | 297,719 |
Fluid Management Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 24,479 | 24,479 |
Impact of foreign currency translation | 0 | 0 |
Goodwill impairment | 0 | |
Ending Balance | 24,479 | 24,479 |
Coiled Tubing Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 101,795 | 101,795 |
Impact of foreign currency translation | 0 | 0 |
Goodwill impairment | -19,100 | |
Ending Balance | 82,695 | 101,795 |
Fishing And Rental Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 173,463 | 173,463 |
Impact of foreign currency translation | 0 | 0 |
Goodwill impairment | 0 | |
Ending Balance | 173,463 | 173,463 |
International | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 27,419 | 29,025 |
Impact of foreign currency translation | -599 | -1,606 |
Goodwill impairment | -22,437 | |
Ending Balance | $4,383 | $27,419 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Other Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $73,693 | $132,004 |
Accumulated amortization | -59,193 | -90,858 |
Net carrying value | 14,500 | 41,146 |
Noncompete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 2,269 | 9,332 |
Accumulated amortization | -1,710 | -7,104 |
Net carrying value | 559 | 2,228 |
Patents, trademarks and tradename | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 3,106 | 14,039 |
Accumulated amortization | -263 | -223 |
Net carrying value | 2,843 | 13,816 |
Customer relationships and contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 59,045 | 100,271 |
Accumulated amortization | -52,303 | -78,926 |
Net carrying value | 6,742 | 21,345 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 8,494 | 7,583 |
Accumulated amortization | -4,138 | -3,826 |
Net carrying value | 4,356 | 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_3
Goodwill and Other Intangible Assets - Amortization Expense for Intangible Assets with Determinable Lives (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization expense | $8,776 | $19,069 | $23,298 |
Noncompete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization expense | 1,671 | 2,082 | 3,827 |
Patents, trademarks and tradename | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization expense | 40 | 40 | 309 |
Customer relationships and contracts | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization expense | 6,749 | 16,726 | 18,941 |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization expense | $316 | $221 | $221 |
Goodwill_and_Other_Inatngible_
Goodwill and Other Inatngible Assets - Indefinite Lived Intangible Assets (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Indefinite-Lived Trade Names | $2.70 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Weighted Average Remaining Amortization Periods and Expected Amortization Expense for the Next Five Years for Intangible Assets (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | |
2014 | $3,222 |
2015 | 2,565 |
2016 | 1,832 |
2017 | 848 |
2018 | 665 |
Noncompete agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 1 year 9 months |
2014 | 309 |
2015 | 250 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
Patents, trademarks and tradename | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 3 years 5 months |
2014 | 40 |
2015 | 40 |
2016 | 40 |
2017 | 17 |
2018 | 0 |
Customer relationships and contracts | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 5 years |
2014 | 2,473 |
2015 | 1,875 |
2016 | 1,392 |
2017 | 431 |
2018 | 341 |
Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Amortization Period | 16 years |
2014 | 400 |
2015 | 400 |
2016 | 400 |
2017 | 400 |
2018 | $324 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |
Goodwill, Impairment Loss | $41,537,000 |
Impairment of intangible assets | 17,600,000 |
International | |
Finite-Lived Intangible Assets [Line Items] | |
Goodwill, Impairment Loss | 22,437,000 |
Impairment of intangible assets | 6,300,000 |
Fishing And Rental Services [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Goodwill, Impairment Loss | 0 |
Fishing And Rental Services [Member] | Customer Relationships And Contracts [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Impairment of intangible assets | 7,700,000 |
Fishing And Rental Services [Member] | Patents, trademarks and tradename | |
Finite-Lived Intangible Assets [Line Items] | |
Impairment of intangible assets | $3,600,000 |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 30, 2014 |
Numerator | ||||||||||||
Income (loss) from continuing operations attributable to Key | ($178,628) | ($21,768) | $101,190 | |||||||||
Loss from discontinued operations, net of tax | 0 | 0 | -93,568 | |||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | -52,304 | -62,229 | -52,196 | -11,899 | -12,518 | -4,848 | -4,128 | -274 | -178,628 | -21,768 | 7,622 | |
Denominator | ||||||||||||
Weighted average shares outstanding (shares) | 153,371,000 | 152,271,000 | 151,106,000 | |||||||||
Basic earnings (loss) per share from continuing operations attributable to Key (usd per share) | ($1.16) | ($0.14) | $0.67 | |||||||||
Basic loss per share from discontinued operations (usd per share) | $0 | $0 | ($0.62) | |||||||||
Basic earnings (loss) per share attributable to Key (usd per share) | ($1.16) | ($0.14) | $0.05 | |||||||||
Numerator | ||||||||||||
Income (loss) from continuing operations attributable to Key | -178,628 | -21,768 | 101,190 | |||||||||
Loss from discontinued operations, net of tax | 0 | 0 | -93,568 | |||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | ($52,304) | ($62,229) | ($52,196) | ($11,899) | ($12,518) | ($4,848) | ($4,128) | ($274) | ($178,628) | ($21,768) | $7,622 | |
Denominator | ||||||||||||
Weighted average shares outstanding (shares) | 153,371,000 | 152,271,000 | 151,106,000 | |||||||||
Total (shares) | 153,371,000 | 152,271,000 | 151,125,000 | |||||||||
Diluted earnings (loss) per share from continuing operations attributable to Key (usd per share) | ($1.16) | ($0.14) | $0.67 | |||||||||
Diluted earnings (loss) per share from discontinued operations (usd per share) | $0 | $0 | ($0.62) | |||||||||
Diluted earnings per share attributable to Key (usd per share) | ($1.16) | ($0.14) | $0.05 | |||||||||
Stock Options [Member] | ||||||||||||
Denominator | ||||||||||||
Share based payment award (shares) | 0 | 0 | 19,000 | |||||||||
Outstanding Stock Awards | ||||||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||||||
Awards granted during period (shares) | 1,893,000 | 900,000 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from diluted earnings per share calculation | 1.4 | 1.7 | 2 |
Stock Appreciation Rights (SARs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from diluted earnings per share calculation | 0.3 | 0.3 | 0.4 |
Asset_Retirement_Obligations_A
Asset Retirement Obligations - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Asset Retirement Obligation Disclosure [Abstract] | |||
Accretion of asset retirement obligations | $605 | $604 | $600 |
Asset_Retirement_Obligations_S
Asset Retirement Obligations - Summary of Changes in Asset Retirement Obligations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | $11,999 | $11,659 | |
Additions | 0 | 174 | |
Asset Retirement Obligation Costs | 79 | 135 | |
Accretion of asset retirement obligations | 605 | 604 | 600 |
Disposals | 0 | -303 | |
Ending balance | $12,525 | $11,999 | $11,659 |
Estimated_Fair_Value_of_Financ1
Estimated Fair Value of Financial Instruments - Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 04, 2011 | Nov. 29, 2007 |
In Thousands, unless otherwise specified | ||||
Financial assets: | ||||
Notes receivable - Argentina operations sale | $8,300 | $12,355 | ||
Notes receivable - Argentina operations sale, fair value | 8,300 | 12,355 | ||
Financial liabilities: | ||||
Credit Facility revolving loans | 70,000 | 85,000 | ||
Credit Facility revolving loans, fair value | 70,000 | 85,000 | ||
Senior Notes 6.75% issued March 4, 2011 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Senior Notes, interest rate | 6.75% | 6.75% | ||
Financial liabilities: | ||||
Senior Notes | 675,000 | 675,000 | 475,000 | |
Senior Notes, fair value | 413,438 | 690,390 | ||
Percentage of Senior Notes fair value over carrying value | 61.30% | |||
Senior Notes 8.375 Percent Due 2014 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Senior Notes, interest rate | 8.38% | 8.38% | ||
Financial liabilities: | ||||
Senior Notes | 0 | 3,573 | 425,000 | |
Senior Notes, fair value | $0 | $3,627 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||
Deferred tax liabilities | $228,394,000 | $284,453,000 | |
Deferred tax assets | 11,823,000 | 11,707,000 | |
Deferred Tax Assets, Net, Noncurrent | 35,238,000 | 22,313,000 | |
Income tax payments | 2,699,000 | 35,239,000 | 13,148,000 |
Tax benefit (expense) allocated to stockholders' equity for compensation expense for income tax purposes in excess of amounts recognized for financial reporting purposes | 1,200,000 | 1,800,000 | 4,100,000 |
Income tax refund | 13,109,000 | 26,361,000 | 18,681,000 |
Deferred tax assets gross | 116,727,000 | 91,041,000 | |
Deferred tax asset, valuation allowance | 22,247,000 | 22,248,000 | |
Unrecognized tax benefits, if recognized, would impact effective tax rate | 1,000,000 | 900,000 | 1,200,000 |
Amount accrued for the payment of interest and penalties | 100,000 | 400,000 | 300,000 |
Unrecognized tax positions which may be recognized as a result of a lapse of the statute of limitations | 600,000 | ||
Net tax benefit for expirations of statutes of limitations | 100,000 | ||
First-year bonus depreciation deduction rate | 50.00% | ||
Federal Net Operating Loss Carryforward [Member] | |||
Income Taxes [Line Items] | |||
Deferred tax assets gross | 17,800,000 | ||
Federal | |||
Income Taxes [Line Items] | |||
Income tax payments | 0 | 30,000,000 | 5,100,000 |
Income tax refund | 11,900,000 | 25,100,000 | 16,700,000 |
Amount of future federal taxable income needed to fully realize the deferred income tax assets related to federal net operating loss carryforwards | 100,000 | ||
Number Of Years To Generate Future Federal Taxable Income | 4 years | ||
Net operating loss carryforwards | 50,700,000 | 2,400,000 | 2,800,000 |
Federal | Minimum | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | 1-Jan-16 | ||
Federal | Maximum | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | 31-Dec-18 | ||
Federal | Section 382 Limitation | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 2,400,000 | ||
Net operating loss carryforwards, annual limitation | 5,000 | ||
State | |||
Income Taxes [Line Items] | |||
Net income tax payments | 1,600,000 | 2,900,000 | 2,900,000 |
Net operating loss carryforwards | 102,000,000 | 64,900,000 | 44,400,000 |
Operating loss carryforwards not subject to expiration | 5,200,000 | ||
State | Minimum | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | 1-Jan-15 | ||
State | Maximum | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | 31-Dec-34 | ||
Foreign | |||
Income Taxes [Line Items] | |||
Net income tax payments | 1,100,000 | 2,300,000 | 5,200,000 |
Net operating loss carryforwards | 177,500,000 | 117,600,000 | 34,400,000 |
Deferred tax assets gross | 50,400,000 | ||
Foreign | Minimum | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | 1-Jan-20 | ||
Foreign | Maximum | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | 31-Dec-30 | ||
Federal [Member] | |||
Income Taxes [Line Items] | |||
Deferred tax asset, valuation allowance | 800,000 | ||
Capital Loss Carryforward [Member] | |||
Income Taxes [Line Items] | |||
Deferred tax asset, valuation allowance | $21,400,000 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current income tax (expense) benefit: | |||
Federal and state | ($755) | ($8,515) | ($16,165) |
Foreign | -1,684 | -350 | -5,189 |
Current income tax (expense) benefit, total | -2,439 | -8,865 | -21,354 |
Deferred income tax (expense) benefit: | |||
Federal and state | 69,508 | -4,870 | -32,729 |
Foreign | 13,414 | 16,799 | -3,269 |
Deferred income tax (expense) benefit, total | 82,922 | 11,929 | -35,998 |
Total income tax (expense) benefit | $80,483 | $3,064 | ($57,352) |
Income_Taxes_Sources_of_Income
Income Taxes - Sources of Income or Loss from Continuing Operations Before Income Taxes and Noncontrolling Interest (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic income | ($202,973) | $29,086 | $129,865 |
Foreign (loss) income | -56,138 | -53,323 | 30,164 |
Income (loss) from continuing operations before tax | ($259,111) | ($24,237) | $160,029 |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense Computed by Applying the Statutory Federal Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Income tax computed at Federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes | 1.40% | -6.00% | 2.50% |
Meals and entertainment | -0.70% | -7.70% | 0.00% |
Foreign rate difference | -0.70% | -8.00% | 0.00% |
Non-deductible goodwill | -3.90% | 0.00% | 0.00% |
Other | 0.00% | -0.70% | -1.70% |
Effective income tax rate | 31.10% | 12.60% | 35.80% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating loss and tax credit carryforwards | $64,107 | $36,860 |
Capital loss carryforwards | 21,417 | 21,417 |
Self-insurance reserves | 15,751 | 16,217 |
Allowance for doubtful accounts | 1,046 | 199 |
Accrued liabilities | 6,283 | 8,981 |
Share-based compensation | 7,254 | 7,759 |
Other | 869 | -392 |
Total deferred tax assets | 116,727 | 91,041 |
Valuation allowance for deferred tax assets | -22,247 | -22,248 |
Net deferred tax assets | 94,480 | 68,793 |
Deferred tax liabilities: | ||
Property and equipment | -225,136 | -269,167 |
Intangible assets | -46,543 | -48,807 |
Other | -4,134 | -1,252 |
Total deferred tax liabilities | 275,813 | 319,226 |
Net deferred tax liability, net of valuation allowance | ($181,333) | ($250,433) |
Income_Taxes_Liabilities_for_U
Income Taxes - Liabilities for Uncertain Tax Positions (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning Balance | $1,371 | $1,593 |
Additions based on tax positions related to the current year | 108 | 251 |
Reductions for tax positions from prior years | -30 | -473 |
Settlements | 0 | 0 |
Ending Balance | $1,449 | $1,371 |
INCOME_TAXES_Income_Taxes_Valu
INCOME TAXES Income Taxes - Valuation Allowance (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Valuation Allowance [Line Items] | ||
Deferred tax asset, valuation allowance | $22,247 | $22,248 |
Federal Net Operating Loss Carryforward [Member] | ||
Valuation Allowance [Line Items] | ||
Deferred tax asset, valuation allowance | 800 | |
Capital Loss Carryforward [Member] | ||
Valuation Allowance [Line Items] | ||
Deferred tax asset, valuation allowance | $21,400 |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | $70,000 | $85,000 |
Net unamortized premium on debt | 3,426 | 3,981 |
Total debt | 748,426 | 767,554 |
Less current portion | 0 | -3,573 |
Total long-term debt and capital leases | 748,426 | 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_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 12 Months Ended | ||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 07, 2013 | Mar. 31, 2011 | Nov. 29, 2007 | Mar. 08, 2012 | Mar. 04, 2011 | Mar. 05, 2013 | |
Debt Instrument [Line Items] | |||||||||
Cash payments | $49,410,000 | $51,705,000 | $46,767,000 | ||||||
Write-off of deferred financing costs | -362,000 | ||||||||
Long-term line of credit | 70,000,000 | 85,000,000 | |||||||
Weighted average interest rate of variable rate debt | 3.14% | 2.88% | 2.70% | ||||||
2011 Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Capitalized financing costs | 4,900,000 | ||||||||
Line of Credit Facility, 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. | ||||||||
Senior Secured Credit Facility, aggregate principal amount | 100,000,000 | ||||||||
Additional interest rate above Federal Funds rate | 0.50% | ||||||||
Additional interest rate above one-month adjusted LIBOR | 1.00% | ||||||||
Unused commitment fees on the facility, minimum | 0.50% | ||||||||
Senior Secured Credit Facility, available amount | 279,600,000 | ||||||||
Senior Secured Credit Facility, weighted average interest rate on the outstanding borrowings | 2.97% | 2.76% | |||||||
2011 Credit Facility | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term line of credit | 70,000,000 | ||||||||
2011 Credit Facility | Letter of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term line of credit | 50,400,000 | ||||||||
2011 Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Collateral Coverage Ratio | 2 | ||||||||
Rato of indebtness to total capitalization | 55.00% | ||||||||
Credit facility financial covenants, leverage ratio | 2 | ||||||||
2011 Credit Facility | Foreign Subsidiaries | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Secured Credit Facility, limit of capital expenditures and investments in foreign subsidiaries | 250,000,000 | ||||||||
2011 Credit Facility | Foreign Subsidiaries | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Minimum consolidated total leverage ratio to limit capital expenditures and investments in foreign subsidiaries to $250.0 million per fiscal year | 3 | ||||||||
2011 Credit Facility | Acquisition Covenants | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Secured Credit Facility, available amount | 25,000,000 | ||||||||
2011 Credit Facility | Acquisition Covenants | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility financial covenants, leverage ratio | 4 | ||||||||
Letter of Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Secured Credit Facility, aggregate principal amount | 15,000,000 | ||||||||
Long-term line of credit | 3,000,000 | ||||||||
Fiscal Quarter Ending Dec 31, 2014 through Sep 30, 2015 [Domain] | 2011 Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility financial covenants, interest coverage ratio | 2.75 | ||||||||
Fiscal Quarter Ending Dec 31, 2015 and thereafter [Domain] | 2011 Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility financial covenants, interest coverage ratio | 3 | ||||||||
Senior Notes 8.375 Percent Due 2014 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes, aggregate principal amount | 0 | 3,573,000 | 425,000,000 | ||||||
Debt Instrument Principal Amount Repurchased Or Redeemed | 3,600,000 | 421,400,000 | |||||||
Cash payments | 100,000 | ||||||||
Senior Notes, interest rate | 8.38% | 8.38% | |||||||
Senior Notes 6.75 Percent Due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes, aggregate principal amount | 675,000,000 | 675,000,000 | 475,000,000 | ||||||
Senior Notes, interest rate | 6.75% | 6.75% | |||||||
Senior Notes, Noncurrent, Increase (Decrease) | 200,000,000 | ||||||||
Capitalized financing costs | 4,600,000 | ||||||||
Senior Notes, maturity date | 1-Mar-21 | ||||||||
Senior Notes 6.75 Percent Due 2021 | Prior to March 1 2016 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, 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. 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 | ||||||||
Senior Notes, redemption percentage | 103.38% | ||||||||
Repurchase of notes, purchase price | 101.00% | ||||||||
Additional interest rate above Federal Funds rate | 0.50% | ||||||||
Amendment of Credit Facility | 2011 Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Capitalized financing costs | 1,400,000 | ||||||||
Amendment of Credit Facility | Dec 5, 2014 through Jun 30, 2015 [Domain] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Secured Credit Facility, aggregate principal amount | 400,000,000 | ||||||||
Amendment of Credit Facility | Before Dec 5, 2014 [Domain] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Secured Credit Facility, aggregate principal amount | 550,000,000 | ||||||||
Amendment of Credit Facility | July 1, 2015 and thereafter [Domain] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Secured Credit Facility, aggregate principal amount | 350,000,000 | ||||||||
L I B O R [Member] | 2011 Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis points | 2.25% | ||||||||
L I B O R [Member] | 2011 Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis points | 3.00% | ||||||||
Other Loans [Member] | 2011 Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis points | 1.25% | ||||||||
Other Loans [Member] | 2011 Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis points | 2.00% | ||||||||
Private Placement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes, aggregate principal amount | $200,000,000 |
LongTerm_Debt_Redemption_Price
Long-Term Debt - Redemption Prices (Expressed as Percentages of the Principal Amount Redeemed) (Detail) | Dec. 31, 2014 |
2016 | |
Debt Instrument [Line Items] | |
Percentage | 103.38% |
2017 | |
Debt Instrument [Line Items] | |
Percentage | 102.25% |
2018 | |
Debt Instrument [Line Items] | |
Percentage | 101.13% |
2019 and thereafter | |
Debt Instrument [Line Items] | |
Percentage | 100.00% |
LongTerm_Debt_Schedule_of_Repa
Long-Term Debt - Schedule of Repayment Requirements of Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2014 | $0 |
2015 | 70,000 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
Thereafter | 675,000 |
Total long-term debt | $745,000 |
LongTerm_Debt_Interest_Expense
Long-Term Debt - Interest Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Disclosure [Abstract] | |||
Cash payments | $49,410 | $51,705 | $46,767 |
Commitment and agency fees paid | 2,179 | 1,799 | 1,450 |
Amortization of premium on debt | -556 | -556 | -463 |
Amortization of deferred financing costs | 2,800 | 2,800 | 2,695 |
Write-off of deferred financing costs | 362 | ||
Net change in accrued interest | 32 | 63 | 4,431 |
Capitalized interest | 0 | -607 | -1,314 |
Net interest expense | $54,227 | $55,204 | $53,566 |
LongTerm_Debt_Summary_of_Defer
Long-Term Debt - Summary of Deferred Financing Costs Including Cost Capitalized, Amortized, and Written Off in Determination of Loss on Extinguishment of Debt (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Finance Costs [Roll Forward] | |||
Beginning Balance | $13,897 | $16,628 | |
Capitalized costs | 69 | ||
Amortization of deferred financing costs | -2,800 | -2,800 | -2,695 |
Write-off of deferred financing costs | -362 | ||
Ending Balance | $10,735 | $13,897 | $16,628 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Future Minimum Lease Payments Under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2014 | $13,960 |
2015 | 9,006 |
2016 | 4,250 |
2017 | 2,632 |
2018 | 2,012 |
Thereafter | 3,057 |
Total | $34,917 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 14 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | |
lawsuit | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Operating lease expense | $22,300,000 | $23,900,000 | $24,400,000 | |
Aggregate amount of contingent litigation liabilities | 100,000 | 300,000 | ||
Loss Contingency, New Claims Filed, Number | 5 | |||
Self-insurance liabilities related to workers' compensation, vehicular liabilities, and general liability claims recorded | 61,000,000 | 62,100,000 | ||
Insurance receivables which partially offset self-insurance liabilities | 18,700,000 | 18,500,000 | ||
Environmental liabilities | $5,730,000 | $6,176,000 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Foreign currency translation loss | ($37,280) | ($15,414) |
Accumulated other comprehensive loss | ($37,280) | ($15,414) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Summary of Conversion Ratios Used to Translate the Financial Statements and Cumulative Currency Translation Gains and Losses, Net of Tax, for Each Currency " (Detail) (Currency, Russian Rouble) | Dec. 31, 2014 | Dec. 31, 2013 |
Currency, Russian Rouble | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Conversion ratio | 56.45 | 32.77 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | |||
Percentage of employee contributions matched | 100.00% | ||
Percentage of employee's salary matched, maximum | 4.00% | ||
Employee contributions, maximum | $10,400 | $10,200 | $10,000 |
Matching contributions | $10,900,000 | $10,400,000 | $10,700,000 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders' Equity Note [Abstract] | |||
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 | |
Common stock, par value (usd per share) | $0.10 | $0.10 | |
Common stock, shares issued (shares) | 153,557,108 | 152,331,006 | |
Restricted common stock, shares repurchased (shares) | 290,697 | 416,101 | 482,951 |
Restricted common stock, aggregate cost | $2.20 | $3.20 | $7.50 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | Jan. 30, 2014 | Aug. 31, 2007 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted to participants to purchase common stock and/or stock appreciation rights during any one year period (shares) | 0 | |||||
Intrinsic value of options exercised | $0 | $100,000 | $600,000 | |||
Cash received from exercise of options, recognition of associated tax benefits | 0 | |||||
Weighted average remaining contractual term for stock option awards exercisable | 1 year 4 months | |||||
Cash received from exercise of options | 0 | 14,000 | 901,000 | |||
Percentage Of Performance Units Measured On First Year After Grant Date | 50.00% | |||||
Percentage Of Performance Units Measured Based On Second Year After Grant Date | 50.00% | |||||
Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration Term | 10 years | |||||
Recognized pre-tax compensation expense | 0 | 0 | 100,000 | |||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Recognized pre-tax compensation expense | 10,900,000 | 13,800,000 | 13,300,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $7.31 | $7.56 | $13.44 | |||
Share Based Compensation Arrangement By Share Based Payment Award Options Vested Fair Value | 12,000,000 | 16,600,000 | 14,200,000 | |||
Recognized tax benefits (expenses) related to compensation expense | 3,800,000 | 5,200,000 | 4,200,000 | |||
Compensation expense expected to be recognized | 8,200,000 | |||||
Compensation expense expected to be recognized, weighted average remaining vesting period | 11 months | |||||
Performance Based Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
fair value of outstanding performance units | 500,000 | |||||
Compensation expense expected to be recognized | 300,000 | |||||
Compensation expense expected to be recognized, weighted average remaining vesting period | 1 year | |||||
Awards granted during period (shares) | 100,000 | 500,000 | ||||
Stock Appreciation Rights (SARs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration Term | 10 years | |||||
Awards granted during period (shares) | 587,000 | |||||
Unexercised equity awards (shares) | 300,000 | |||||
2014 Equity and Cash Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant under Incentive Plan (shares) | 10,000,000 | |||||
2014 Equity and Cash Incentive Plan [Member] | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock available for grant (shares) | 12,310,750 | |||||
Phantom Share Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Recognized pre-tax compensation expense | 0 | 100,000 | ||||
Recognized tax benefits (expenses) related to compensation expense | $0 | $0 | $100,000 | |||
Vesting term | 4 years | |||||
Non Employee Director [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 197,865 | 288,780 | 153,063 |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Options | |
Beginning Balance (shares) | 1,372 |
Granted (shares) | 0 |
Exercised (shares) | 0 |
Cancelled or expired (shares) | -53 |
Ending Balance (shares) | 1,319 |
Exercisable at end of period (shares) | 1,319 |
Weighted Average Exercise Price | |
Beginning Balance (usd per share) | $14.10 |
Granted (usd per share) | $0 |
Exercised (usd per share) | $0 |
Cancelled or expired (usd per share) | $14.70 |
Ending Balance (usd per share) | $14.07 |
Exercisable at end of period (usd per share) | $14.07 |
Weighted Average Fair Value | |
Beginning Balance (usd per share) | $6 |
Granted (usd per share) | $0 |
Exercised (usd per share) | $0 |
Cancelled or expired (usd per share) | $6.23 |
Ending Balance (usd per share) | $5.99 |
Exercisable at end of period (usd per share) | $5.99 |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of Stock Options Outstanding and Exercisable (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding Number of Options Outstanding (shares) | 1,319 | 1,372 |
Options Outstanding Weighted Average Exercise Price (usd per share) | $14.07 | $14.10 |
Options Outstanding Weighted Average Fair Value (usd per share) | $5.99 | $6 |
Options Exercisable Number of Options Exercisable (shares) | 1,319 | |
Options Exercisable Weighted Average Exercise Price (usd per share) | $14.07 | |
Options Exercisable Weighted Average Fair Value (usd per share) | $5.99 |
ShareBased_Compensation_Summar2
Share-Based Compensation - Summary of Common Share Awards Issued (Detail) (Outstanding Stock Awards, USD $) | 1 Months Ended | 12 Months Ended |
Jan. 30, 2014 | Dec. 31, 2014 | |
Outstanding Stock Awards | ||
Outstanding | ||
Shares at beginning of period (shares) | 2,246,000 | 2,246,000 |
Awards granted during period (shares) | 900,000 | 1,893,000 |
Previously issued shares vesting during period (shares) | -1,187,000 | |
Shares cancelled during period (shares) | -386,000 | |
Shares at end of period (shares) | 2,566,000 | |
Weighted Average Issuance Price | ||
Shares at beginning of period (usd per share) | $9.68 | $9.68 |
Shares issued during period (usd per share) | $7.31 | |
Previously issued shares vesting during period (usd per share) | $10.12 | |
Shares cancelled during period (usd per share) | $8.41 | |
Shares at end of period (usd per share) | $7.92 |
ShareBased_Compensation_Schedu
Share-Based Compensation - Schedule Of Performance Units By Placement (Details) | 12 Months Ended | 1 Months Ended | |
Dec. 31, 2014 | Feb. 28, 2014 | Jan. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 2 years | ||
First [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentile Ranking in Peer Group | 100.00% | ||
Performance Units Earned a Percentage of Target | 200.00% | ||
Second [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentile Ranking in Peer Group | 91.00% | ||
Performance Units Earned a Percentage of Target | 180.00% | ||
Third [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentile Ranking in Peer Group | 82.00% | ||
Performance Units Earned a Percentage of Target | 160.00% | ||
Fourth [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentile Ranking in Peer Group | 73.00% | ||
Performance Units Earned a Percentage of Target | 140.00% | ||
Fifth [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentile Ranking in Peer Group | 64.00% | ||
Performance Units Earned a Percentage of Target | 120.00% | ||
Sixth [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentile Ranking in Peer Group | 55.00% | ||
Performance Units Earned a Percentage of Target | 100.00% | ||
Seventh [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentile Ranking in Peer Group | 45.00% | ||
Performance Units Earned a Percentage of Target | 75.00% | ||
Eighth [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentile Ranking in Peer Group | 36.00% | ||
Performance Units Earned a Percentage of Target | 50.00% | ||
Ninth [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentile Ranking in Peer Group | 27.00% | ||
Performance Units Earned a Percentage of Target | 25.00% | ||
Tenth [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentile Ranking in Peer Group | 18.00% | ||
Performance Units Earned a Percentage of Target | 0.00% | ||
Eleventh [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentile Ranking in Peer Group | 9.00% | ||
Performance Units Earned a Percentage of Target | 0.00% | ||
Twelfth [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentile Ranking in Peer Group | 0.00% | ||
Performance Units Earned a Percentage of Target | 0.00% | ||
Performance Based Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted during period (shares) | 100,000 | 500,000 |
Recovered_Sheet12
Transactions with Related Parties - Additional Information (Detail) (Outside directors, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Anadarko | |||
Related Party Transaction [Line Items] | |||
Transactions with related party, receivables | $2.90 | $4.90 | |
Transactions with related party, revenue | 32.5 | 41.2 | 37 |
Proudfoot | |||
Related Party Transaction [Line Items] | |||
Transactions with related party, expenses | $0 | $0 | $1.90 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Noncash investing and financing activities: | |||
Sale of Argentina operations/Notes receivable | $0 | $0 | $12,955 |
Asset retirement obligations | 0 | 174 | 0 |
Supplemental cash flow information: | |||
Cash paid for interest | 51,589 | 53,504 | 48,217 |
Cash paid for taxes | 2,699 | 35,239 | 13,148 |
Tax refunds | $13,109 | $26,361 | $18,681 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Apr. 09, 2013 | Sep. 01, 2009 | Oct. 31, 2008 | Aug. 05, 2013 |
ft | |||||
Segment Reporting Information [Line Items] | |||||
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 | ||||
Maintenance period, description | Maintenance services generally take less than 48 hours to complete | ||||
Geostream [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Equity Method Investment, Aggregate Cost | $14.60 | $17.40 | |||
Business Acquisition, Purchase Price | 16.4 | ||||
Ownership percentage | 50.00% | 26.00% | |||
International | Geostream [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 100.00% | ||||
AlMansoori Key Energy Services LLC | |||||
Segment Reporting Information [Line Items] | |||||
Business Acquisition, Purchase Price | $5.10 |
Segment_Information_Detail
Segment Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues from external customers | $354,802 | $365,798 | $350,595 | $356,141 | $362,164 | $389,673 | $411,390 | $428,449 | $1,427,336 | $1,591,676 | $1,960,070 | |||||
Intersegment revenues | 0 | 0 | 0 | |||||||||||||
Depreciation and amortization | 200,738 | 225,297 | 213,783 | |||||||||||||
Impairment expense | 121,176 | 0 | 0 | |||||||||||||
Other operating expenses | 1,309,297 | 1,336,215 | 1,539,341 | |||||||||||||
Operating income (loss) | -203,875 | 30,164 | 206,946 | |||||||||||||
Interest expense, net of amounts capitalized | 54,227 | 55,204 | 53,566 | |||||||||||||
Income (loss) from continuing operations before tax | -259,111 | -24,237 | 160,029 | |||||||||||||
Long-lived assets | 1,899,703 | [1] | 2,081,317 | 1,899,703 | [1] | 2,081,317 | 2,171,794 | |||||||||
Total assets | 2,333,498 | 2,587,470 | 2,333,498 | 2,587,470 | 2,761,588 | |||||||||||
Capital expenditures | -161,639 | -164,137 | -447,160 | |||||||||||||
U.S. Rig Services [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues from external customers | 679,045 | 673,465 | 788,512 | |||||||||||||
Intersegment revenues | 706 | 4,283 | 39,257 | |||||||||||||
Depreciation and amortization | 59,190 | 64,804 | 69,513 | |||||||||||||
Impairment expense | 0 | |||||||||||||||
Other operating expenses | 523,468 | 475,103 | 524,704 | |||||||||||||
Operating income (loss) | 96,387 | 133,558 | 194,295 | |||||||||||||
Interest expense, net of amounts capitalized | 0 | 1 | 11 | |||||||||||||
Income (loss) from continuing operations before tax | 96,922 | 133,642 | 194,558 | |||||||||||||
Long-lived assets | 796,654 | [1] | 746,021 | [1] | 796,654 | [1] | 746,021 | [1] | 749,031 | [1] | ||||||
Total assets | 1,608,122 | 1,511,419 | 1,608,122 | 1,511,419 | 1,343,275 | |||||||||||
Capital expenditures | -90,982 | -79,761 | -69,105 | |||||||||||||
Fluid Management Services [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues from external customers | 249,589 | 271,709 | 353,597 | |||||||||||||
Intersegment revenues | 1,258 | 700 | 263 | |||||||||||||
Depreciation and amortization | 31,870 | 37,510 | 40,637 | |||||||||||||
Impairment expense | 0 | |||||||||||||||
Other operating expenses | 214,392 | 230,161 | 287,396 | |||||||||||||
Operating income (loss) | 3,327 | 4,038 | 25,564 | |||||||||||||
Interest expense, net of amounts capitalized | 0 | 0 | 0 | |||||||||||||
Income (loss) from continuing operations before tax | 3,581 | 4,110 | 25,712 | |||||||||||||
Long-lived assets | 181,041 | [1] | 222,075 | [1] | 181,041 | [1] | 222,075 | [1] | 250,872 | [1] | ||||||
Total assets | 295,670 | 279,950 | 295,670 | 279,950 | 261,310 | |||||||||||
Capital expenditures | -3,920 | -7,307 | -35,491 | |||||||||||||
Coiled Tubing Services [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues from external customers | 173,364 | 193,184 | 215,876 | |||||||||||||
Intersegment revenues | 0 | 10 | 15 | |||||||||||||
Depreciation and amortization | 23,375 | 25,877 | 25,205 | |||||||||||||
Impairment expense | 19,100 | |||||||||||||||
Other operating expenses | 141,708 | 143,880 | 175,542 | |||||||||||||
Operating income (loss) | -10,819 | 23,427 | 15,129 | |||||||||||||
Interest expense, net of amounts capitalized | 0 | 0 | 1 | |||||||||||||
Income (loss) from continuing operations before tax | -10,442 | 23,436 | 15,182 | |||||||||||||
Long-lived assets | 196,265 | [1] | 246,889 | [1] | 196,265 | [1] | 246,889 | [1] | 265,786 | [1] | ||||||
Total assets | 260,375 | 246,180 | 260,375 | 246,180 | 215,125 | |||||||||||
Capital expenditures | -10,815 | -12,682 | -45,545 | |||||||||||||
Fishing And Rental Services [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues from external customers | 212,598 | 238,611 | 268,783 | |||||||||||||
Intersegment revenues | 6,078 | 5,637 | 4,332 | |||||||||||||
Depreciation and amortization | 44,004 | 53,785 | 47,147 | |||||||||||||
Impairment expense | 73,389 | |||||||||||||||
Other operating expenses | 154,149 | 153,517 | 171,283 | |||||||||||||
Operating income (loss) | -58,944 | 31,309 | 50,353 | |||||||||||||
Interest expense, net of amounts capitalized | 0 | 0 | 5 | |||||||||||||
Income (loss) from continuing operations before tax | -58,794 | 31,351 | 50,394 | |||||||||||||
Long-lived assets | 326,218 | [1] | 420,486 | [1] | 326,218 | [1] | 420,486 | [1] | 453,690 | [1] | ||||||
Total assets | 669,823 | 637,163 | 669,823 | 637,163 | 595,963 | |||||||||||
Capital expenditures | -30,389 | -25,378 | -97,660 | |||||||||||||
International | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues from external customers | 112,740 | 214,707 | 333,302 | |||||||||||||
Intersegment revenues | 9,142 | 8,715 | 6,273 | |||||||||||||
Depreciation and amortization | 30,311 | 30,227 | 19,643 | |||||||||||||
Impairment expense | 28,687 | |||||||||||||||
Other operating expenses | 119,174 | 211,137 | 250,667 | |||||||||||||
Operating income (loss) | -65,432 | -26,657 | 62,992 | |||||||||||||
Interest expense, net of amounts capitalized | 32 | 62 | 172 | |||||||||||||
Income (loss) from continuing operations before tax | -68,924 | -26,795 | 68,036 | |||||||||||||
Long-lived assets | 270,893 | [1] | 333,273 | [1] | 270,893 | [1] | 333,273 | [1] | 334,329 | [1] | ||||||
Total assets | 397,295 | 497,938 | 397,295 | 497,938 | 541,882 | |||||||||||
Capital expenditures | -7,560 | -19,541 | -171,095 | |||||||||||||
Functional Support | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues from external customers | 0 | [2] | 0 | [2] | 0 | [2] | ||||||||||
Intersegment revenues | 1,988 | [2] | 509 | [2] | 15 | [2] | ||||||||||
Depreciation and amortization | 11,988 | [2] | 13,094 | [2] | 11,638 | [2] | ||||||||||
Impairment expense | 0 | [2] | ||||||||||||||
Other operating expenses | 156,406 | [2] | 122,417 | [2] | 129,749 | [2] | ||||||||||
Operating income (loss) | -168,394 | [2] | -135,511 | [2] | -141,387 | [2] | ||||||||||
Interest expense, net of amounts capitalized | 54,195 | [2] | 55,141 | [2] | 53,377 | [2] | ||||||||||
Income (loss) from continuing operations before tax | -221,454 | [2] | -189,981 | [2] | -193,853 | [2] | ||||||||||
Long-lived assets | 278,904 | [1],[2] | 301,032 | [1],[2] | 278,904 | [1],[2] | 301,032 | [1],[2] | 286,369 | [1],[2] | ||||||
Total assets | -510,229 | [2] | -181,940 | [2] | -510,229 | [2] | -181,940 | [2] | 153,665 | [2] | ||||||
Capital expenditures | -17,973 | [2] | -19,468 | [2] | -28,264 | [2] | ||||||||||
Reconciling Eliminations | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Revenues from external customers | 0 | 0 | 0 | |||||||||||||
Intersegment revenues | -19,172 | -19,854 | -50,155 | |||||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||||
Impairment expense | 0 | |||||||||||||||
Other operating expenses | 0 | 0 | 0 | |||||||||||||
Operating income (loss) | 0 | 0 | 0 | |||||||||||||
Interest expense, net of amounts capitalized | 0 | 0 | 0 | |||||||||||||
Income (loss) from continuing operations before tax | 0 | 0 | 0 | |||||||||||||
Long-lived assets | -150,272 | [1] | -188,459 | [1] | -150,272 | [1] | -188,459 | [1] | -168,283 | [1] | ||||||
Total assets | -387,558 | -403,240 | -387,558 | -403,240 | -349,632 | |||||||||||
Capital expenditures | $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. |
Unaudited_Quarterly_Results_of1
Unaudited Quarterly Results of Operations - Summarized Quarterly Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Revenues | $354,802 | $365,798 | $350,595 | $356,141 | $362,164 | $389,673 | $411,390 | $428,449 | $1,427,336 | $1,591,676 | $1,960,070 | ||||||||
Direct operating expenses | 266,354 | 272,112 | 262,883 | 258,302 | 259,881 | 268,297 | 287,102 | 299,182 | 1,059,651 | 1,114,462 | 1,308,845 | ||||||||
Net income (loss) | -52,304 | -62,229 | -52,196 | -11,899 | -12,518 | -4,697 | -3,772 | -186 | -178,628 | -21,173 | 9,109 | ||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | ($52,304) | ($62,229) | ($52,196) | ($11,899) | ($12,518) | ($4,848) | ($4,128) | ($274) | ($178,628) | ($21,768) | $7,622 | ||||||||
Earnings (loss) per share: | |||||||||||||||||||
Basic and Diluted (usd per share) | ($0.34) | [1] | ($0.41) | [1] | ($0.34) | [1] | ($0.08) | [1] | ($0.08) | [1] | ($0.03) | [1] | ($0.03) | [1] | $0 | [1] | |||
[1] | Quarterly earnings per common share are based on the weighted average number of shares outstanding during the quarter, and the sum of the quarters may not equal annual earnings per common share. |
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets: | ||||
Current assets | $433,795 | $506,153 | ||
Property and equipment, net | 1,235,258 | 1,365,646 | ||
Goodwill | 582,739 | 624,875 | 626,481 | |
Deferred financing costs, net | 10,735 | 13,897 | 16,628 | |
Other assets | 70,971 | 76,899 | ||
TOTAL ASSETS | 2,333,498 | 2,587,470 | 2,761,588 | |
Liabilities and equity: | ||||
Current liabilities | 241,858 | 232,344 | ||
Long-term debt and capital leases, less current portion | 748,426 | 763,981 | ||
Deferred tax liabilities | 228,394 | 284,453 | ||
Other long-term liabilities | 56,757 | 55,599 | ||
Equity | 1,058,063 | 1,251,093 | 1,287,332 | 1,214,631 |
TOTAL LIABILITIES AND EQUITY | 2,333,498 | 2,587,470 | ||
Intercompany | ||||
Assets: | ||||
Intercompany notes and accounts receivable and investment in subsidiaries | 0 | 0 | ||
Liabilities and equity: | ||||
Intercompany notes and accounts payable | 0 | 0 | ||
Parent Company | ||||
Assets: | ||||
Current assets | 39,020 | 50,321 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred financing costs, net | 10,735 | 13,897 | ||
Other assets | 0 | 0 | ||
TOTAL ASSETS | 3,220,629 | 3,485,825 | ||
Liabilities and equity: | ||||
Current liabilities | 22,046 | 26,097 | ||
Long-term debt and capital leases, less current portion | 748,426 | 763,981 | ||
Deferred tax liabilities | 228,199 | 280,828 | ||
Other long-term liabilities | 1,264 | 1,195 | ||
Equity | 1,058,046 | 1,251,076 | ||
TOTAL LIABILITIES AND EQUITY | 3,220,629 | 3,485,825 | ||
Parent Company | Intercompany | ||||
Assets: | ||||
Intercompany notes and accounts receivable and investment in subsidiaries | 3,170,874 | 3,421,607 | ||
Liabilities and equity: | ||||
Intercompany notes and accounts payable | 1,162,648 | 1,162,648 | ||
Guarantor Subsidiaries | ||||
Assets: | ||||
Current assets | 341,188 | 398,188 | ||
Property and equipment, net | 1,128,776 | 1,244,216 | ||
Goodwill | 578,358 | 597,457 | ||
Deferred financing costs, net | 0 | 0 | ||
Other assets | 56,664 | 34,278 | ||
TOTAL ASSETS | 3,531,146 | 3,638,313 | ||
Liabilities and equity: | ||||
Current liabilities | 192,079 | 182,497 | ||
Long-term debt and capital leases, less current portion | 0 | 0 | ||
Deferred tax liabilities | 398 | 4,643 | ||
Other long-term liabilities | 55,182 | 54,486 | ||
Equity | 587,436 | 728,744 | ||
TOTAL LIABILITIES AND EQUITY | 3,531,146 | 3,638,313 | ||
Guarantor Subsidiaries | Intercompany | ||||
Assets: | ||||
Intercompany notes and accounts receivable and investment in subsidiaries | 1,426,160 | 1,364,174 | ||
Liabilities and equity: | ||||
Intercompany notes and accounts payable | 2,696,051 | 2,667,943 | ||
Non-Guarantor Subsidiaries | ||||
Assets: | ||||
Current assets | 53,587 | 57,644 | ||
Property and equipment, net | 106,482 | 121,430 | ||
Goodwill | 4,381 | 27,418 | ||
Deferred financing costs, net | 0 | 0 | ||
Other assets | 14,307 | 42,621 | ||
TOTAL ASSETS | 221,109 | 262,052 | ||
Liabilities and equity: | ||||
Current liabilities | 27,733 | 23,750 | ||
Long-term debt and capital leases, less current portion | 0 | 0 | ||
Deferred tax liabilities | -134 | -1,819 | ||
Other long-term liabilities | 311 | -82 | ||
Equity | 69,389 | 143,153 | ||
TOTAL LIABILITIES AND EQUITY | 221,109 | 262,052 | ||
Non-Guarantor Subsidiaries | Intercompany | ||||
Assets: | ||||
Intercompany notes and accounts receivable and investment in subsidiaries | 42,352 | 12,939 | ||
Liabilities and equity: | ||||
Intercompany notes and accounts payable | 123,810 | 97,050 | ||
Consolidation, Eliminations | ||||
Assets: | ||||
Current assets | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred financing costs, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
TOTAL ASSETS | -4,639,386 | -4,798,720 | ||
Liabilities and equity: | ||||
Current liabilities | 0 | 0 | ||
Long-term debt and capital leases, less current portion | 0 | 0 | ||
Deferred tax liabilities | -69 | 801 | ||
Other long-term liabilities | 0 | 0 | ||
Equity | -656,808 | -871,880 | ||
TOTAL LIABILITIES AND EQUITY | -4,639,386 | -4,798,720 | ||
Consolidation, Eliminations | Intercompany | ||||
Assets: | ||||
Intercompany notes and accounts receivable and investment in subsidiaries | -4,639,386 | -4,798,720 | ||
Liabilities and equity: | ||||
Intercompany notes and accounts payable | ($3,982,509) | ($3,927,641) |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||||||||||
Revenues | $354,802 | $365,798 | $350,595 | $356,141 | $362,164 | $389,673 | $411,390 | $428,449 | $1,427,336 | $1,591,676 | $1,960,070 |
Direct operating expense | 266,354 | 272,112 | 262,883 | 258,302 | 259,881 | 268,297 | 287,102 | 299,182 | 1,059,651 | 1,114,462 | 1,308,845 |
Depreciation and amortization expense | 200,738 | 225,297 | 213,783 | ||||||||
General and administrative expense | 249,646 | 221,753 | 230,496 | ||||||||
Impairment expense | 121,176 | 0 | 0 | ||||||||
Operating income (loss) | -203,875 | 30,164 | 206,946 | ||||||||
Interest expense, net of amounts capitalized | 54,227 | 55,204 | 53,566 | ||||||||
Other (income) loss, net | 1,009 | -803 | -6,649 | ||||||||
Income (loss) from continuing operations before tax | -259,111 | -24,237 | 160,029 | ||||||||
Income tax (expense) benefit | 80,483 | 3,064 | -57,352 | ||||||||
Income (loss) from continuing operations | -178,628 | -21,173 | 102,677 | ||||||||
Discontinued operations | 0 | 0 | -93,568 | ||||||||
Net income (loss) | -52,304 | -62,229 | -52,196 | -11,899 | -12,518 | -4,697 | -3,772 | -186 | -178,628 | -21,173 | 9,109 |
Income attributable to noncontrolling interest | 0 | 595 | 1,487 | ||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | -52,304 | -62,229 | -52,196 | -11,899 | -12,518 | -4,848 | -4,128 | -274 | -178,628 | -21,768 | 7,622 |
Parent Company | |||||||||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Direct operating expense | 0 | 0 | 0 | ||||||||
Depreciation and amortization expense | 0 | 0 | 0 | ||||||||
General and administrative expense | 941 | 1,077 | 1,046 | ||||||||
Impairment expense | 0 | ||||||||||
Operating income (loss) | -941 | -1,077 | -1,046 | ||||||||
Interest expense, net of amounts capitalized | 54,195 | 55,747 | 54,690 | ||||||||
Other (income) loss, net | -1,976 | -3,616 | -5,500 | ||||||||
Income (loss) from continuing operations before tax | -53,160 | -53,208 | -50,236 | ||||||||
Income tax (expense) benefit | 68,883 | -13,385 | -48,893 | ||||||||
Income (loss) from continuing operations | 15,723 | -66,593 | -99,129 | ||||||||
Discontinued operations | 0 | 0 | 0 | ||||||||
Net income (loss) | 15,723 | -66,593 | -99,129 | ||||||||
Income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | 15,723 | -66,593 | -99,129 | ||||||||
Guarantor Subsidiaries | |||||||||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||||||||||
Revenues | 1,325,670 | 1,494,683 | 1,867,198 | ||||||||
Direct operating expense | 979,018 | 1,046,376 | 1,254,087 | ||||||||
Depreciation and amortization expense | 187,676 | 214,334 | 205,755 | ||||||||
General and administrative expense | 239,276 | 202,599 | 216,069 | ||||||||
Impairment expense | 92,489 | ||||||||||
Operating income (loss) | -172,789 | 31,374 | 191,287 | ||||||||
Interest expense, net of amounts capitalized | 0 | -606 | -1,292 | ||||||||
Other (income) loss, net | 666 | -1,126 | -1,474 | ||||||||
Income (loss) from continuing operations before tax | -173,455 | 33,106 | 194,053 | ||||||||
Income tax (expense) benefit | 10,551 | 15,456 | -3,385 | ||||||||
Income (loss) from continuing operations | -162,904 | 48,562 | 190,668 | ||||||||
Discontinued operations | 0 | 0 | 0 | ||||||||
Net income (loss) | -162,904 | 48,562 | 190,668 | ||||||||
Income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | -162,904 | 48,562 | 190,668 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||||||||||
Revenues | 125,262 | 161,536 | 165,248 | ||||||||
Direct operating expense | 90,584 | 118,028 | 117,293 | ||||||||
Depreciation and amortization expense | 13,062 | 10,963 | 8,028 | ||||||||
General and administrative expense | 23,054 | 33,336 | 24,853 | ||||||||
Impairment expense | 28,687 | ||||||||||
Operating income (loss) | -30,125 | -791 | 15,074 | ||||||||
Interest expense, net of amounts capitalized | 32 | 63 | 170 | ||||||||
Other (income) loss, net | 2,276 | 316 | -3,142 | ||||||||
Income (loss) from continuing operations before tax | -32,433 | -1,170 | 18,046 | ||||||||
Income tax (expense) benefit | 1,179 | 993 | -5,073 | ||||||||
Income (loss) from continuing operations | -31,254 | -177 | 12,973 | ||||||||
Discontinued operations | 0 | 0 | -93,568 | ||||||||
Net income (loss) | -31,254 | -177 | -80,595 | ||||||||
Income attributable to noncontrolling interest | 0 | 595 | 1,487 | ||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | -31,254 | -772 | -82,082 | ||||||||
Consolidation, Eliminations | |||||||||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||||||||||
Revenues | -23,596 | -64,543 | -72,376 | ||||||||
Direct operating expense | -9,951 | -49,942 | -62,535 | ||||||||
Depreciation and amortization expense | 0 | 0 | 0 | ||||||||
General and administrative expense | -13,625 | -15,259 | -11,472 | ||||||||
Impairment expense | 0 | ||||||||||
Operating income (loss) | -20 | 658 | 1,631 | ||||||||
Interest expense, net of amounts capitalized | 0 | 0 | -2 | ||||||||
Other (income) loss, net | 43 | 3,623 | 3,467 | ||||||||
Income (loss) from continuing operations before tax | -63 | -2,965 | -1,834 | ||||||||
Income tax (expense) benefit | -130 | 0 | -1 | ||||||||
Income (loss) from continuing operations | -193 | -2,965 | -1,835 | ||||||||
Discontinued operations | 0 | 0 | 0 | ||||||||
Net income (loss) | -193 | -2,965 | -1,835 | ||||||||
Income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
INCOME (LOSS) ATTRIBUTABLE TO KEY | ($193) | ($2,965) | ($1,835) |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | |||
Net cash provided by operating activities | $164,168 | $228,643 | $369,660 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | -161,639 | -164,137 | -447,160 |
Acquisition of the 50% noncontrolling interest in Geostream | 0 | -14,600 | 0 |
Payment of accrued acquisition cost of the 51% noncontrolling interest in AlMansoori Key Energy Services LLC | 5,100 | 0 | 0 |
Intercompany notes and accounts | 0 | 0 | 0 |
Other investing activities, net | 19,899 | 17,856 | 18,451 |
Net cash used in investing activities | -146,840 | -160,881 | -428,709 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of long-term debt | -3,573 | 0 | 0 |
Proceeds from long-term debt | 0 | 0 | 205,000 |
Repayment of capital lease obligations | 0 | -393 | -1,959 |
Proceeds from borrowings on revolving credit facility | 260,000 | 220,000 | 275,000 |
Repayments on revolving credit facility | -275,000 | -300,000 | -405,000 |
Payment of deferred financing costs | 0 | -69 | -4,597 |
Repurchases of common stock | -2,245 | -3,196 | -7,519 |
Intercompany notes and accounts | 0 | 0 | 0 |
Other financing activities, net | -1,240 | -1,834 | 13,021 |
Net cash provided by (used in) financing activities | -22,058 | -85,492 | 73,946 |
Effect of changes in exchange rates on cash | 3,728 | 87 | -4,391 |
Net increase (decrease) in cash and cash equivalents | -1,002 | -17,643 | 10,506 |
Cash and cash equivalents at beginning of period | 28,306 | 45,949 | 35,443 |
Cash and cash equivalents at end of period | 27,304 | 28,306 | 45,949 |
Parent Company | |||
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | |||
Net cash provided by operating activities | 0 | 0 | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | 0 | 0 | 0 |
Acquisition of the 50% noncontrolling interest in Geostream | 0 | ||
Payment of accrued acquisition cost of the 51% noncontrolling interest in AlMansoori Key Energy Services LLC | 0 | ||
Intercompany notes and accounts | 0 | 0 | 676 |
Other investing activities, net | 0 | 0 | -676 |
Net cash used in investing activities | 0 | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of long-term debt | -3,573 | ||
Proceeds from long-term debt | 205,000 | ||
Repayment of capital lease obligations | 0 | 0 | |
Proceeds from borrowings on revolving credit facility | 260,000 | 220,000 | 275,000 |
Repayments on revolving credit facility | -275,000 | -300,000 | -405,000 |
Payment of deferred financing costs | -69 | -4,597 | |
Repurchases of common stock | -2,245 | -3,196 | -7,519 |
Intercompany notes and accounts | 18,892 | 68,597 | -49,926 |
Other financing activities, net | -1,240 | -1,834 | 4,986 |
Net cash provided by (used in) financing activities | -3,166 | -16,502 | 17,944 |
Effect of changes in exchange rates on cash | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | -3,166 | -16,502 | 17,944 |
Cash and cash equivalents at beginning of period | 23,115 | 39,617 | 21,673 |
Cash and cash equivalents at end of period | 19,949 | 23,115 | 39,617 |
Guarantor Subsidiaries | |||
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | |||
Net cash provided by operating activities | 158,707 | 222,364 | 349,208 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | -154,952 | -157,443 | -430,045 |
Acquisition of the 50% noncontrolling interest in Geostream | -14,600 | ||
Payment of accrued acquisition cost of the 51% noncontrolling interest in AlMansoori Key Energy Services LLC | 5,100 | ||
Intercompany notes and accounts | -18,892 | -68,597 | 49,926 |
Other investing activities, net | 19,899 | 17,856 | 19,127 |
Net cash used in investing activities | -159,045 | -222,784 | -360,992 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of long-term debt | 0 | ||
Proceeds from long-term debt | 0 | ||
Repayment of capital lease obligations | -393 | -1,959 | |
Proceeds from borrowings on revolving credit facility | 0 | 0 | 0 |
Repayments on revolving credit facility | 0 | 0 | 0 |
Payment of deferred financing costs | 0 | 0 | |
Repurchases of common stock | 0 | 0 | 0 |
Intercompany notes and accounts | 0 | 0 | -676 |
Other financing activities, net | 0 | 0 | 8,035 |
Net cash provided by (used in) financing activities | 0 | -393 | 5,400 |
Effect of changes in exchange rates on cash | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | -338 | -813 | -6,384 |
Cash and cash equivalents at beginning of period | 788 | 1,601 | 7,985 |
Cash and cash equivalents at end of period | 450 | 788 | 1,601 |
Non-Guarantor Subsidiaries | |||
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | |||
Net cash provided by operating activities | 5,461 | 6,279 | 20,452 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | -6,687 | -6,694 | -17,115 |
Acquisition of the 50% noncontrolling interest in Geostream | 0 | ||
Payment of accrued acquisition cost of the 51% noncontrolling interest in AlMansoori Key Energy Services LLC | 0 | ||
Intercompany notes and accounts | 0 | 0 | 0 |
Other investing activities, net | 0 | 0 | 0 |
Net cash used in investing activities | -6,687 | -6,694 | -17,115 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of long-term debt | 0 | ||
Proceeds from long-term debt | 0 | ||
Repayment of capital lease obligations | 0 | 0 | |
Proceeds from borrowings on revolving credit facility | 0 | 0 | 0 |
Repayments on revolving credit facility | 0 | 0 | 0 |
Payment of deferred financing costs | 0 | 0 | |
Repurchases of common stock | 0 | 0 | 0 |
Intercompany notes and accounts | 0 | 0 | 0 |
Other financing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 | 0 |
Effect of changes in exchange rates on cash | 3,728 | 87 | -4,391 |
Net increase (decrease) in cash and cash equivalents | 2,502 | -328 | -1,054 |
Cash and cash equivalents at beginning of period | 4,403 | 4,731 | 5,785 |
Cash and cash equivalents at end of period | 6,905 | 4,403 | 4,731 |
Consolidation, Eliminations | |||
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | |||
Net cash provided by operating activities | 0 | 0 | 0 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | 0 | 0 | 0 |
Acquisition of the 50% noncontrolling interest in Geostream | 0 | ||
Payment of accrued acquisition cost of the 51% noncontrolling interest in AlMansoori Key Energy Services LLC | 0 | ||
Intercompany notes and accounts | 18,892 | 68,597 | -50,602 |
Other investing activities, net | 0 | 0 | 0 |
Net cash used in investing activities | 18,892 | 68,597 | -50,602 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of long-term debt | 0 | ||
Proceeds from long-term debt | 0 | ||
Repayment of capital lease obligations | 0 | 0 | |
Proceeds from borrowings on revolving credit facility | 0 | 0 | 0 |
Repayments on revolving credit facility | 0 | 0 | 0 |
Payment of deferred financing costs | 0 | 0 | |
Repurchases of common stock | 0 | 0 | 0 |
Intercompany notes and accounts | -18,892 | -68,597 | 50,602 |
Other financing activities, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | -18,892 | -68,597 | 50,602 |
Effect of changes in exchange rates on cash | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 | $0 |