Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 27, 2015 | |
Document Documentand Entity Information [Abstract] | ||
Entity Registrant Name | KEY ENERGY SERVICES INC | |
Entity Central Index Key | 318,996 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | KEG | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 157,583,222 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 225,481 | $ 27,304 |
Accounts receivable, net of allowance for doubtful accounts of $4,973 and $2,925, respectively | 181,234 | 289,466 |
Inventories | 35,143 | 30,171 |
Other current assets | 79,520 | 86,854 |
Total current assets | 521,378 | 433,795 |
Property and equipment | 2,548,319 | 2,555,515 |
Accumulated depreciation | (1,410,785) | (1,320,257) |
Property and equipment, net | 1,137,534 | 1,235,258 |
Goodwill | 561,039 | 582,739 |
Other intangible assets, net | 12,917 | 14,500 |
Other non-current assets | 56,910 | 56,471 |
TOTAL ASSETS | 2,289,778 | 2,322,763 |
Current liabilities: | ||
Accounts payable | 44,566 | 77,631 |
Current portion of long-term debt | 3,150 | 0 |
Other current liabilities | 110,223 | 164,227 |
Total current liabilities | 157,939 | 241,858 |
Long-term debt | 961,080 | 737,691 |
Workers' compensation, vehicular and health insurance liabilities | 28,593 | 29,690 |
Deferred tax liabilities | 178,263 | 228,394 |
Other non-current liabilities | $ 27,005 | $ 27,067 |
Commitments and contingencies | ||
Equity: | ||
Common stock, $0.10 par value; 200,000,000 shares authorized, 157,654,235 and 153,557,108 shares issued and outstanding | $ 15,765 | $ 15,356 |
Additional paid-in capital | 963,612 | 960,647 |
Accumulated other comprehensive loss | (36,764) | (37,280) |
Retained earnings (deficit) | (5,715) | 119,340 |
Total equity | 936,898 | 1,058,063 |
TOTAL LIABILITIES AND EQUITY | $ 2,289,778 | $ 2,322,763 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 4,973 | $ 2,925 |
Common stock, shares issued | 157,654,235 | 153,557,108 |
Common stock, shares outstanding | 157,654,235 | 153,557,108 |
Common stock, par value (in usd per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
REVENUES | $ 197,496 | $ 350,595 | $ 465,295 | $ 706,736 |
COSTS AND EXPENSES: | ||||
Direct operating expenses | 158,841 | 262,883 | 363,371 | 521,185 |
Depreciation and amortization expense | 45,896 | 52,184 | 93,107 | 103,279 |
General and administrative expenses | 50,710 | 57,881 | 118,354 | 110,747 |
Impairment expense | 21,352 | 28,687 | 43,052 | 28,687 |
Operating loss | (79,303) | (51,040) | (152,589) | (57,162) |
Interest expense, net of amounts capitalized | 17,058 | 13,426 | 30,400 | 26,980 |
Other (income) loss, net | (248) | (2,733) | 4,184 | (2,802) |
Loss before income taxes | (96,113) | (61,733) | (187,173) | (81,340) |
Income tax benefit | 30,734 | 9,537 | 62,118 | 17,245 |
NET LOSS | $ (65,379) | $ (52,196) | $ (125,055) | $ (64,095) |
Loss per share: | ||||
Basic and diluted (per share) | $ (0.42) | $ (0.34) | $ (0.80) | $ (0.42) |
Weighted average shares outstanding: | ||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 156,347 | 153,496 | 155,586 | 153,157 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
NET LOSS | $ (65,379) | $ (52,196) | $ (125,055) | $ (64,095) |
Other comprehensive income (loss): | ||||
Foreign currency translation income (loss) | 1,213 | 3,264 | 516 | (2,001) |
COMPREHENSIVE LOSS | $ (64,166) | $ (48,932) | $ (124,539) | $ (66,096) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (125,055) | $ (64,095) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization expense | 93,107 | 103,279 |
Impairment expense | 43,052 | 28,687 |
Bad debt expense | 1,362 | 1,151 |
Accretion of asset retirement obligations | 309 | 294 |
Loss (income) from equity method investments | (13) | 79 |
Amortization and write-off of deferred financing costs and premium | 2,061 | 1,121 |
Deferred income tax benefit | (12,546) | (7,707) |
Loss on disposal of assets, net | 4,374 | 3,452 |
Share-based compensation | 6,636 | 7,101 |
Excess tax expense from share-based compensation | 2,950 | 1,221 |
Changes in working capital: | ||
Accounts receivable | 106,829 | 46,970 |
Other current assets | 6,602 | (2,419) |
Accounts payable, accrued interest and accrued expenses | (88,277) | (13,781) |
Share-based compensation liability awards | 1,119 | 1,587 |
Other assets and liabilities | (43,708) | 328 |
Net cash provided by (used in) operating activities | (1,198) | 107,268 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (32,675) | (69,429) |
Proceeds from sale of fixed assets | 9,950 | 7,239 |
Proceeds from notes receivable | 595 | 2,150 |
Net cash used in investing activities | (22,130) | (60,040) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of long-term debt | 0 | (3,573) |
Proceeds from long-term debt | 305,550 | 0 |
Proceeds from borrowings on revolving credit facility | 130,000 | 115,000 |
Repayments on revolving credit facility | (200,000) | (160,000) |
Payment of deferred financing costs | (11,072) | 0 |
Repurchases of common stock | (312) | (2,211) |
Excess tax expense from share-based compensation | (2,950) | (1,221) |
Net cash provided by (used in) financing activities | 221,216 | (52,005) |
Effect of changes in exchange rates on cash | 289 | (81) |
Net increase (decrease) in cash and cash equivalents | 198,177 | (4,858) |
Cash and cash equivalents, beginning of period | 27,304 | 28,306 |
Cash and cash equivalents, end of period | $ 225,481 | $ 23,448 |
GENERAL
GENERAL | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | GENERAL Key Energy Services, Inc., and its wholly owned subsidiaries (collectively, “Key,” the “Company,” “we,” “us,” “its,” and “our”) provide a full range of well services to major oil companies, foreign national oil companies and independent oil and natural gas production companies. Our services include rig-based and coiled tubing-based well maintenance and workover services, well completion and recompletion services, fluid management services, fishing and rental services, and other ancillary oilfield services. Additionally, certain 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 have operations in Mexico, Colombia, Ecuador, the Middle East and Russia. In addition, we have a technology development and control systems business based in Canada. The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The condensed December 31, 2014 balance sheet was prepared from audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014 (the “ 2014 Form 10-K”). Certain information relating to our organization and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in this Quarterly Report on Form 10-Q. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2014 Form 10-K. The unaudited condensed consolidated financial statements contained in this report include all normal and recurring material adjustments that, in the opinion of management, are necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented herein. The results of operations for the six months ended June 30, 2015 are not necessarily indicative of the results expected for the full year or any other interim period, due to fluctuations in demand for our services, timing of maintenance and other expenditures, and other factors. We have evaluated events occurring after the balance sheet date included in this Quarterly Report on Form 10-Q and through the date on which the unaudited condensed consolidated financial statements were issued, for possible disclosure of a subsequent event. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES | SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES The preparation of these unaudited condensed consolidated financial statements requires us to develop estimates and to make assumptions that affect our financial position, results of operations and cash flows. These estimates may also impact the nature and extent of our disclosure, if any, of our contingent liabilities. Among other things, we use estimates to (i) analyze assets for possible impairment, (ii) determine depreciable lives for our assets, (iii) assess future tax exposure and realization of deferred tax assets, (iv) determine amounts to accrue for contingencies, (v) value tangible and intangible assets, (vi) assess workers’ compensation, vehicular liability, self-insured risk accruals and other insurance reserves, (vii) provide allowances for our uncollectible accounts receivable, (viii) value our asset retirement obligations, and (ix) value our equity-based compensation. We review all significant estimates on a recurring basis and record the effect of any necessary adjustments prior to publication of our financial statements. Adjustments made with respect to the use of estimates relate to improved information not previously available. Because of the limitations inherent in this process, our actual results may differ materially from these estimates. We believe that the estimates used in the preparation of these interim financial statements are reasonable. There have been no material changes or developments in our evaluation of accounting estimates and underlying assumptions or methodologies that we believe to be a “Critical Accounting Policy or Estimate” as disclosed in our 2014 Form 10-K. Recent Accounting Developments ASU 2015-03 . In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The objective of this ASU is to simplify presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The ASU is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods, with early adoption permitted. We adopted ASU 2015-03 in the second quarter of 2015 using the retrospective transition method. As a result, $10.7 million of unamortized deferred financing costs on our December 31, 2014 balance sheet was reclassified from non-current assets to a direct deduction of long-term debt. The adoption of this standard did not affect our results of operations or cash flows. 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 must be adopted using either a full retrospective method or a modified retrospective method. During a July 2015 meeting, the FASB affirmed a proposal to defer the effective date of the new revenue standard for all entities by one year. As a result, ASU 2014-09 is effective for the Company for interim and annual reporting periods beginning after December 15, 2017 with early adoption permitted for interim and annual reporting periods beginning after December 15, 2016. We are currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements. |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 6 Months Ended |
Jun. 30, 2015 | |
ASSETS HELD FOR SALE [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE In April 2015, we announced our decision to exit markets in which we participate outside of North America. Our strategy is to sell or relocate the assets of the businesses operating in these markets. During the second quarter of 2015, certain assets of our Oman business unit, which is included in our International reporting segment, met the criteria for assets held for sale. We expect the sale of these assets to occur before the end of 2015. We recorded a $21.4 million impairment of fixed assets to reduce the carrying value of these assets to the fair market value. The assets held for sale includes $3.6 million of property and equipment, net, and $0.6 million of inventories which are included in other non-current assets and other current assets, respectively, on our June 30, 2015 condensed consolidated balance sheet. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
EQUITY | EQUITY A reconciliation of the total carrying amount of our equity accounts for the six months ended June 30, 2015 is as follows: COMMON STOCKHOLDERS Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings (Deficit) Total Number of Shares Amount at Par (in thousands) Balance at December 31, 2014 153,557 $ 15,356 $ 960,647 $ (37,280 ) $ 119,340 $ 1,058,063 Foreign currency translation — — — 516 — 516 Common stock purchases (145 ) (15 ) (297 ) — — (312 ) Share-based compensation 4,242 424 6,212 — — 6,636 Tax expense from share-based compensation — — (2,950 ) — — (2,950 ) Net loss — — — — (125,055 ) (125,055 ) Balance at June 30, 2015 157,654 $ 15,765 $ 963,612 $ (36,764 ) $ (5,715 ) $ 936,898 A reconciliation of the total carrying amount of our equity accounts for six months ended June 30, 2014 is as follows: COMMON STOCKHOLDERS Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings Total Number of Shares Amount at Par (in thousands) Balance at December 31, 2013 152,331 $ 15,233 $ 953,306 $ (15,414 ) $ 297,968 $ 1,251,093 Foreign currency translation — — — (2,001 ) — (2,001 ) Common stock purchases (283 ) (28 ) (2,183 ) — — (2,211 ) Share-based compensation 1,537 154 6,947 — — 7,101 Tax expense from share-based compensation — — (1,221 ) — — (1,221 ) Net loss — — — — (64,095 ) (64,095 ) Balance at June 30, 2014 153,585 $ 15,359 $ 956,849 $ (17,415 ) $ 233,873 $ 1,188,666 |
OTHER BALANCE SHEET INFORMATION
OTHER BALANCE SHEET INFORMATION | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Balance Sheet Disclosures [Abstract] | |
OTHER BALANCE SHEET INFORMATION | OTHER BALANCE SHEET INFORMATION The table below presents comparative detailed information about other current assets at June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 (in thousands) Other current assets: Deferred tax assets $ 14,688 $ 11,823 Prepaid current assets 21,770 28,218 Reinsurance receivable 9,131 9,200 VAT asset 17,452 18,889 Current assets held for sale 591 — Other 15,888 18,724 Total $ 79,520 $ 86,854 The table below presents comparative detailed information about other non-current assets at June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 (in thousands) Other non-current assets: Deferred tax assets $ 32,875 $ 35,238 Reinsurance receivable 9,561 9,537 Deposits 9,457 10,125 Equity method investments 1,000 987 Non-current assets held for sale 3,631 — Other 386 584 Total $ 56,910 $ 56,471 The table below presents comparative detailed information about other current liabilities at June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 (in thousands) Other current liabilities: Accrued payroll, taxes and employee benefits $ 19,394 $ 32,477 Accrued operating expenditures 18,858 45,899 Income, sales, use and other taxes 17,546 25,892 Self-insurance reserve 30,448 31,359 Accrued interest 17,869 15,241 Accrued insurance premiums 1,189 7,515 Share-based compensation and other liabilities 4,919 5,844 Total $ 110,223 $ 164,227 The table below presents comparative detailed information about other non-current liabilities at June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 (in thousands) Other non-current liabilities: Asset retirement obligations $ 12,608 $ 12,525 Environmental liabilities 5,531 5,730 Accrued rent — 263 Accrued sales, use and other taxes 6,145 5,411 Other 2,721 3,138 Total $ 27,005 $ 27,067 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the six months ended June 30, 2015 are as follows: U.S. Rig Services Fluid Management Services Coiled Tubing Services Fishing and Rental Services International Total (in thousands) December 31, 2014 $ 297,719 $ 24,479 $ 82,695 $ 173,463 $ 4,383 $ 582,739 Goodwill impairment — — (21,700 ) — — (21,700 ) June 30, 2015 $ 297,719 $ 24,479 $ 60,995 $ 173,463 $ 4,383 $ 561,039 The components of our other intangible assets as of June 30, 2015 and December 31, 2014 are as follows: June 30, 2015 December 31, 2014 (in thousands) Noncompete agreements: Gross carrying value $ 2,269 $ 2,269 Accumulated amortization (1,860 ) (1,710 ) Net carrying value 409 559 Patents, trademarks and tradenames: Gross carrying value 3,129 3,106 Accumulated amortization (283 ) (263 ) Net carrying value 2,846 2,843 Customer relationships and contracts: Gross carrying value 59,079 59,045 Accumulated amortization (53,571 ) (52,303 ) Net carrying value 5,508 6,742 Developed technology: Gross carrying value 8,494 8,494 Accumulated amortization (4,340 ) (4,138 ) Net carrying value 4,154 4,356 Customer backlog: Gross carrying value 779 779 Accumulated amortization (779 ) (779 ) Net carrying value — — Total: Gross carrying value 73,750 73,693 Accumulated amortization (60,833 ) (59,193 ) Net carrying value $ 12,917 $ 14,500 Of our intangible assets at June 30, 2015 , $2.7 million are indefinite-lived tradenames and patents which are not subject to amortization. The weighted average remaining amortization periods and expected amortization expense for the next five years for our definite lived intangible assets are as follows: Weighted average remaining amortization period (years) Expected Amortization Expense Remainder of 2015 2016 2017 2018 2019 2020 (in thousands) Noncompete agreements 1.3 $ 149 $ 260 $ — $ — $ — $ — Trademarks 2.9 20 40 40 17 — — Customer relationships and contracts 3.6 1,237 1,876 1,392 431 341 231 Developed technology 15.5 199 398 398 398 324 221 Total expected intangible asset amortization expense $ 1,605 $ 2,574 $ 1,830 $ 846 $ 665 $ 452 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. Amortization expense for our intangible assets was $0.8 million and $2.6 million for the three months ended June 30, 2015 and 2014 , respectively, and $1.6 million and $5.2 million for the six months ended June 30, 2015 and 2014 , respectively. We perform an analysis of goodwill impairment on an annual basis unless an event occurs that triggers additional interim testing. The decline in market value of our stock during the fourth quarter of 2014 was determined to be a triggering event making it 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 the 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 $19.1 million of goodwill was impaired. During the first quarter of 2015, we engaged outside consultants to assist us in finalizing our step two testing. Based on the additional analysis performed, we concluded that there was an additional $21.7 million of goodwill that was impaired. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT As of June 30, 2015 and December 31, 2014 , the components of our long-term debt were as follows: June 30, 2015 December 31, 2014 (in thousands) 6.75% Senior Notes due 2021 $ 675,000 $ 675,000 Term Loan Facility due 2020 315,000 — Senior Secured Credit Facility revolving loans due 2016 — 70,000 Debt issuance costs and unamortized premium (discount) on debt, net (25,770 ) (7,309 ) Total 964,230 737,691 Less current portion (3,150 ) — Long-term debt $ 961,080 $ 737,691 6.75% Senior Notes due 2021 We have outstanding $675.0 million of 6.75% Senior Notes due 2021 (the “2021 Notes”). 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 102.250 % 2018 101.125 % 2019 and thereafter 100.000 % 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 Facilities discussed below. Substantially all of the covenants will terminate before the 2021 Notes mature if one of two specified ratings agencies assigns the 2021 Notes an investment grade rating in the future and no events of default exist under the Indenture. As of June 30, 2015 , the 2021 Notes were rated below investment grade. Any covenants that cease to apply to us as a result of achieving an investment grade rating will not be restored, even if the investment rating assigned to the 2021 Notes later falls below investment grade. We were in compliance with these covenants as of June 30, 2015 . Credit Facilities due 2020 On June 1, 2015, we entered into a $100.0 million asset-based revolving credit facility (“ABL Facility”) due February 28, 2020 and a $315.0 million term loan facility (“Term Loan Facility”) due June 1, 2020 (together, the “Facilities”). The Facilities replaced our existing $400 million 2011 Credit Facility (defined below). The ABL Facility bears interest at an annual rate on outstanding borrowings of LIBOR plus 4.5% , with a fee on unused commitments ranging from 1.00% to 1.25% based on utilization. The Term Loan Facility was issued at an original issue discount of 3.0% with an annual rate of LIBOR plus 9.25% with a 1.00% LIBOR floor and a quarterly principal payment of $787,500 that will begin in the third quarter of 2015. The original issue discount of $9.4 million and $11.1 million of deferred financing costs will be amortized over the term of the Facilities. The Facilities contain customary representations and warranties and certain affirmative and negative covenants, including covenants that restrict our ability to take certain actions without the permission of the Facilities lenders or as permitted under the Facilities including the incurrence of debt, the granting of liens, the making of investments, the payment of dividends and the sale of assets. The Facilities also contain financial covenants requiring that we maintain an asset coverage ratio of at least 1.5 to 1.0 and that liquidity, as defined in the Facilities agreements, must not be less than $100.0 million . The ABL also includes a fixed charge coverage ratio of at least 1.0 to 1.0, which is tested only if excess availability under the ABL falls below a specified threshold or upon the occurrence of certain other events. Additionally, in certain situations, we may be required to offer to prepay some principal amounts under the Term Loan Facility including 50% of our fiscal excess cash flow, as defined in the Term Loan Facility agreement. We were in compliance with covenants of the Facilities as of June 30, 2015 . As of June 30, 2015 , we have no borrowings outstanding under the ABL Facility and $48.2 million of letters of credit outstanding with borrowing capacity of $44.4 million available subject to covenant constraints under our ABL Facility. The weighted average interest rates on the outstanding borrowings under the ABL Facility and Term Loan Facility for the three and six month periods ended June 30, 2015 were as follows: June 30, 2015 (in thousands) ABL Facility — Term Loan Facility 10.38 % Senior Secured Credit Facility On June 1, 2015, in connection with entering into the ABL Facility and the Term Loan Facility, we terminated our senior secured revolving bank credit facility, dated as of March 31, 2011, as amended through December 5, 2014 (the “2011 Credit Facility”), which was scheduled to mature no later than March 31, 2016 . The 2011 Credit Facility provided for a senior secured credit facility consisting of a revolving credit facility, letter of credit sub-facility and swing line facility of up to an aggregate principal amount of $400.0 million . The 2011 Credit Facility was terminated without any prepayment penalties. The remaining unamortized deferred financing costs of $0.8 million were written off at the time of the termination. The interest rate per annum applicable to the 2011 Credit Facility was, 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 had ranged from 225 to 300 basis points, and the applicable margin for all other loans had ranged 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 was equal to 0.5% . The weighted average interest rates on the outstanding borrowings under the 2011 Credit Facility were 3.14% and 2.88% for the three-month periods ended June 30, 2015 and June 30, 2014 , respectively, and the weighted average interest rates on the outstanding borrowings under the 2011 Credit Facility were 3.15 % and 2.88 % for six months ended June 30, 2015 and June 30, 2014 , respectively. Letter of Credit Facility On November 7, 2013, we entered into an uncommitted, unsecured $15.0 million letter of credit facility to be used solely for the issuances of performance letters of credit. As of June 30, 2015 , $2.0 million of letters of credit were outstanding under the facility. |
OTHER INCOME, NET
OTHER INCOME, NET | 6 Months Ended |
Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |
OTHER INOME, NET | OTHER (INCOME) LOSS The table below presents comparative detailed information about our other income and expense, shown on the condensed consolidated statements of operations as “ other (income) loss, net ” for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Interest income $ (25 ) $ (30 ) $ (40 ) $ (48 ) Foreign exchange (gain) loss 333 (1,377 ) 1,593 (11 ) Allowance for collectibility of notes receivable — — 3,950 — Other, net (556 ) (1,326 ) (1,319 ) (2,743 ) Total $ (248 ) $ (2,733 ) $ 4,184 $ (2,802 ) |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We are subject to U.S. federal income tax as well as income taxes in multiple state and foreign jurisdictions. Our effective tax rates for the three months ended June 30, 2015 and 2014 were 32.0% and 15.4% , respectively, and 33.2% and 21.2% for the six months ended June 30, 2015 and 2014 , respectively. Our effective tax rate varies due to the mix of pre-tax profit between the U.S. and international taxing jurisdictions with varying statutory rates, the impact of permanent differences, including goodwill impairment expense, and discrete tax adjustments, such as tax expense or benefit recognized for uncertain tax positions. The variance between our effective rate and the U.S. statutory rate reflects international profits and losses subject to varying statutory rates, the impact of permanent items, mainly non-deductible expenses such as fines and penalties, and expenses subject to statutorily imposed limitations such as meals and entertainment expenses, plus the impact of state income taxes. As of June 30, 2015 and December 31, 2014 , we had $1.0 million of unrecognized tax benefits, net of federal tax benefit, which, if recognized, would impact our effective tax rate. We recognized a tax expense of less than $0.1 million for the three months ended June 30, 2015 and 2014 , related to these items. We have substantially concluded all U.S. federal and state tax matters through the year ended December 31, 2012. We record interest and penalties related to unrecognized tax benefits as income tax expense. We have accrued a liability of $1.0 million for the payment of interest and penalties as of June 30, 2015 and December 31, 2014 . We believe that it is reasonably possible that $0.6 million of our currently remaining unrecognized tax positions, each of which is individually insignificant, may be recognized in the next twelve months as a result of a lapse of statute of limitations and settlement of ongoing audits. No release of our deferred tax asset valuation allowance was made during the three or six months ended June 30, 2015 and 2014 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation Various suits and claims arising in the ordinary course of business are pending against us. We conduct business throughout the continental United States and may be subject to jury verdicts or arbitrations that result in outcomes in favor of the plaintiffs. We are also exposed to various claims abroad. We continually assess our contingent liabilities, including potential litigation liabilities, as well as the adequacy of our accruals and our need for the disclosure of these items, if any. We establish a provision for a contingent liability when it is probable that a liability has been incurred and the amount is reasonably estimable. We have $0.2 million of other liabilities related to litigation that is deemed probable and reasonably estimable as of June 30, 2015 . We do not believe that the disposition of any of these matters will result in an additional loss materially in excess of amounts that have been recorded. Between 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. Two of the five cases have been consolidated in United States District Court for the Central District of California. A hearing on the class certification motion is scheduled for August 10, 2015. One of the remaining cases has been stayed pending outcome of the class certification motion. The fourth case is waiting for a decision regarding whether it will move forward in California state court or in federal court. The fifth case is an enforcement action for civil penalties based on California’s Private Attorneys General Act, which is pending in California state court. We have investigated the claims in all five lawsuits, and intend to vigorously defend them. At this time, we cannot estimate any possible loss or range of loss. In January, 2014, the SEC advised Key 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. On May 30, 2014, Key voluntarily disclosed the allegation involving our Mexico operations and certain information from the Company’s initial investigation to both the SEC and Department of Justice (“DOJ”). A Special Committee of our Board of Directors is investigating this allegation as well as possible violations of the FCPA involving business activities of our operations in Russia. The fact-finding portion of the Special Committee’s investigation, which also included a review of certain aspects of the Company’s operations in Colombia, as well as a risk assessment with regard to our other international locations, has been completed and the Special Committee is in the process of concluding its work. We continue to cooperate with the 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 reasonably estimate any possible loss or range of loss. 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. Defendants Key Energy Services, Inc., Richard J. Alario, J. Marshall Dodson and Newton W. Wilson III filed a Motion to Dismiss on April 14, 2015. Defendant Taylor M. Whichard III filed a Joinder in Motion and Motion to Dismiss on the same date. Because this case is in the 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 referred the demand letter to the Special Committee. We cannot predict the outcome of this matter. In March 2015, two collective action lawsuits were filed in the Southern District of Texas, Corpus Christi Division, individually and on behalf of all others similarly situated, alleging violations of the Fair Labor Standards Act of 1938 (“FLSA”). We have answered the lawsuits and asserted affirmative defenses. Because the cases are in the early stages, we cannot predict the outcomes at this time. Accordingly, we cannot estimate any possible loss or range of loss for either case. In April 2015, a collective action lawsuit was filed in the Middle District of Pennsylvania, individually and on behalf of similarly situated employees, alleging violations of the Pennsylvania Minimum Wage Act and the FLSA. This lawsuit was dismissed, without prejudice, on April 30, 2015. In May 2015, a class and collective action lawsuit was filed in the Southern District of Texas, Houston Division, individually and on behalf of all others similarly situated, alleging violations of the FLSA and the New Mexico Minimum Wage Act. We have answered the lawsuit and asserted affirmative defenses. Because the case is in the early stages, we cannot predict the outcome at this time. Accordingly, we cannot estimate any possible loss or range of loss of this case. Self-Insurance Reserves We maintain reserves for workers’ compensation and vehicle liability on our balance sheet based on our judgment and estimates using an actuarial method based on claims incurred. We estimate general liability claims on a case-by-case basis. We maintain insurance policies for workers’ compensation, vehicle liability and general liability claims. These insurance policies carry self-insured retention limits or deductibles on a per occurrence basis. The retention limits or deductibles are accounted for in our accrual process for all workers’ compensation, vehicular liability and general liability claims. As of June 30, 2015 and December 31, 2014 , we have recorded $59.0 million and $61.0 million , respectively, of self-insurance reserves related to workers’ compensation, vehicular liabilities and general liability claims. Partially offsetting these liabilities, we had $18.7 million of insurance receivables as of June 30, 2015 and December 31, 2014 . We believe that the liabilities we have recorded are appropriate based on the known facts and circumstances and do not expect further losses materially in excess of the amounts already accrued for existing claims. Environmental Remediation Liabilities For environmental reserve matters, including remediation efforts for current locations and those relating to previously disposed properties, we record liabilities when our remediation efforts are probable and the costs to conduct such remediation efforts can be reasonably estimated. As of June 30, 2015 and December 31, 2014 , we have recorded $5.5 million and $5.7 million , respectively, for our environmental remediation liabilities. We believe that the liabilities we have recorded are appropriate based on the known facts and circumstances and do not expect further losses materially in excess of the amounts already accrued. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | LOSS PER SHARE Basic loss per share is determined by dividing net loss attributable to Key by the weighted average number of common shares actually outstanding during the period. Diluted loss per common share is based on the increased number of shares that would be outstanding assuming conversion of potentially dilutive outstanding securities using the treasury stock and “as if converted” methods. The components of our loss per share are as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Basic and Diluted EPS Calculation: Numerator Net loss $ (65,379 ) $ (52,196 ) $ (125,055 ) $ (64,095 ) Denominator Weighted average shares outstanding $ 156,347 $ 153,496 $ 155,586 153,157 Basic and diluted loss per share $ (0.42 ) $ (0.34 ) $ (0.80 ) $ (0.42 ) Stock options, warrants and stock appreciation rights (“SARs”) are included in the computation of diluted loss per share using the treasury stock method. Restricted stock awards are legally considered issued and outstanding when granted and are included in basic weighted average shares outstanding. The diluted earnings per share calculations for the three and six months ended June 30, 2015 exclude the potential exercise of 1.3 million stock options and 0.3 million SARs as they would be anti-dilutive due to net loss during the period. The diluted earnings per share calculations for the three months ended June 30, 2014 exclude the potential exercise of 1.3 million stock options and 0.3 million SARs and for the six months ended June 30, 2014 exclude the potential exercise of 1.4 million stock options and 0.3 million SARs as they would be anti-dilutive due to net loss during the period. No events occurred after June 30, 2015 that would materially affect the number of weighted average shares outstanding. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION We recognized employee share-based compensation expense of $2.1 million and $2.4 million during the three months ended June 30, 2015 and 2014 , respectively, and the related income tax benefit recognized was $0.7 million for the same periods. We recognized employee share-based compensation expense of $6.2 million and $7.1 million during the six months ended June 30, 2015 and 2014 , respectively, and the related income tax expense recognized was $2.2 million and $2.3 million , respectively, for the same period. We did not capitalize any share-based compensation during the three and six months ended June 30, 2015 and 2014 . The unrecognized compensation cost related to our unvested restricted stock as of June 30, 2015 is estimated to be $10.3 million and is expected to be recognized over a weighted-average period of 1.5 years. All outstanding stock options are vested and there are no unrecognized cost related to our stock options as of June 30, 2015 . No phantom stock was outstanding as of June 30, 2015 . During May 2015 , we issued 598,860 restricted stock units to our outside directors under the Key Energy Services, Inc. 2014 Equity and Cash Incentive Plan that was approved by our stockholders on May 15, 2014 . These restricted stock units vested immediately and we recognized $1.6 million of expense related to these awards. Additionally, during May 2014 , we recognized $1.6 million of expense related to similar awards. In the first quarter of 2015, the Compensation Committee of the Board of Directors adopted both the 2014 Performance Award Agreement (“2014 PU Award Agreement”) under the Key Energy Services, Inc. 2014 Equity and Cash Incentive Plan (the “2014 Plan”) and the 2015 Performance Unit Plan (the “2015 PU Plan”). We believe that the 2015 PU Plan and 2014 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 2015 , we issued 2.1 million performance units to our executive officers under the 2014 Plan with such material terms as set forth in the 2014 PU Award Agreement. In February 2015, we issued 0.4 million performance units to certain other employees under the 2015 PU Plan. The performance units are measured based on one three -year performance period from January 1, 2015 to December 31, 2017. The number of performance units that may be earned by a participant is determined at the end of the 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 Performance Units Earned as a Percentage of Target First 200 % Second 180 % Third 160 % Fourth 140 % Fifth 120 % Sixth 100 % Seventh 0 % Eighth 0 % Ninth 0 % Tenth 0 % Eleventh 0 % Twelfth 0 % If any performance units vest for a given performance period, the award holder will be paid a cash amount equal to the vested percentage of the performance units multiplied by the closing stock price of our common stock on the last trading day of the performance period. We account for the performance units as a liability-type award as they are settled in cash. As of June 30, 2015 , the fair value of outstanding performance units was $6.2 million , and is being accreted to compensation expense over the vesting terms of the awards. As of June 30, 2015 , the unrecognized compensation cost related to our unvested performance units is estimated to be $4.8 million and is expected to be recognized over a weighted-average period of 2.4 years. |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH RELATED PARTIES | TRANSACTIONS WITH RELATED PARTIES Board of Director Relationships A member of our board of directors is the Executive Vice President, General Counsel and Chief Administrative Officer of Anadarko Petroleum Corporation (“Anadarko”), which is one of our customers. Sales to Anadarko were approximately $2.7 million and $9.3 million for the three months ended June 30, 2015 and 2014 , respectively, and $7.8 million and $18.1 million for the six months ended June 30, 2015 and 2014 , respectively. Receivables outstanding from Anadarko were approximately $1.0 million and $2.9 million as of June 30, 2015 and December 31, 2014 , respectively. Transactions with Anadarko for our services are made on terms consistent with other customers. |
ESTIMATED FAIR VALUE OF FINANCI
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS The following is a summary of the carrying amounts and estimated fair values of our financial instruments as of June 30, 2015 and December 31, 2014 . Cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities. These carrying amounts approximate fair value because of the short maturity of the instruments or because the carrying value is equal to the fair value of those instruments on the balance sheet date. June 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Financial assets: Notes receivable - Argentina operations sale $ 3,755 $ 3,755 $ 8,300 $ 8,300 Financial liabilities: 6.75% Senior Notes due 2021 $ 675,000 $ 399,938 $ 675,000 $ 413,438 Term Loan Facility due 2020 315,000 315,000 — — Credit Facility revolving loans — — 70,000 70,000 Notes receivable — Argentina operations sale . The fair value of these notes receivable are based upon the quoted market Treasury rates as of the dates indicated. The carrying values of these items approximate their fair values due to the maturity dates rapidly approaching, thus giving way to discount rates that are similar. The carrying value and fair value are net of a $4.0 million valuation allowance for collectibility of the notes receivable. 6.75% Senior Notes due 2021. The fair value of these notes are based upon the quoted market prices for those securities as of the dates indicated. The carrying value of these notes as of June 30, 2015 was $675.0 million , and the fair value was $399.9 million ( 59.3% of carrying value). Term Loan Facility due 2020 . Because the variable interest rates of these loans approximate current market rates, the fair values of the loans borrowed under this facility approximate their carrying values. Credit Facility Revolving Loans . In connection with entering into the ABL Facility and the Term Loan Facility, we terminated our 2011 Credit Facility on June 1, 2015. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2015 | |
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 and other costs in support of our reportable segments. Segment disclosures as of and for the the three and six months ended June 30, 2014 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. 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 saltwater disposal wells owned by us or a third party. In addition, we operate a fleet of hot oilers capable of pumping heated fluids used to clear soluble restrictions in a wellbore. Demand and pricing for these services generally correspond to demand for our well service rigs. Coiled Tubing Services Coiled Tubing Services involve the use of a continuous metal pipe spooled onto a large reel which is then deployed into oil and natural gas wells to perform various applications, such as wellbore clean-outs, nitrogen jet lifts, through-tubing fishing, and formation stimulations utilizing acid and chemical treatments. Coiled tubing is also used for a number of horizontal well applications such as milling temporary isolation plugs that separate frac zones, and various other pre- and post-hydraulic fracturing well preparation services. Fishing and Rental Services We offer a full line of fishing 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. We provide rig-based services such as the maintenance, workover, recompletion of existing oil wells, completion of newly-drilled wells and plugging and abandonment of wells at the end of their useful lives in each of our international markets. In addition, we have a technology development and control systems business based in Canada. In addition, in Mexico we provide drilling, coiled tubing, wireline and project management and consulting services. Our work in Mexico also requires us to provide third-party services, which vary in scope by project. 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. In April 2015, we announced our decision to exit markets in which we participate outside of North America. Our strategy is to sell or relocate the assets of the businesses operating in these markets. 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 tables set forth our unaudited segment information as of and for the three and six months ended June 30, 2015 and 2014 (in thousands): As of and for the three months ended June 30, 2015 U.S. Rig Services Fluid Management Services Coiled Tubing Services Fishing and Rental Services International Functional Support(2) Reconciling Eliminations Total Revenues from external customers $ 93,253 $ 39,178 $ 21,609 $ 28,142 $ 15,314 $ — $ — $ 197,496 Intersegment revenues 196 421 — 1,447 798 542 (3,404 ) — Depreciation and amortization 14,975 6,525 5,841 8,982 6,507 3,066 — 45,896 Impairment expense — — — — 21,352 — — 21,352 Other operating expenses 82,410 32,712 19,851 25,734 16,326 32,518 — 209,551 Operating loss (4,132 ) (59 ) (4,083 ) (6,574 ) (28,871 ) (35,584 ) — (79,303 ) Interest expense, net of amounts capitalized — — — — — 17,058 — 17,058 Loss before income taxes (4,067 ) (41 ) (4,074 ) (6,574 ) (28,919 ) (52,438 ) — (96,113 ) Long-lived assets(1) 796,551 171,058 166,931 319,480 221,832 245,188 (152,640 ) 1,768,400 Total assets 1,609,569 299,670 251,201 658,464 371,152 (481,597 ) (418,681 ) 2,289,778 Capital expenditures, excluding acquisitions 3,201 2,506 2,007 2,124 1,509 2,333 — 13,680 As of and for the three months ended June 30, 2014 U.S. Rig Services Fluid Management Services Coiled Tubing Services Fishing and Rental Services International Functional Support(2) Reconciling Eliminations Total Revenues from external customers $ 169,980 $ 62,087 $ 43,108 $ 49,340 $ 26,080 $ — $ — $ 350,595 Intersegment revenues 167 32 — — 2,547 543 (3,289 ) — Depreciation and amortization 14,630 8,255 5,968 12,088 7,795 3,448 — 52,184 Impairment expense — — — — 28,687 — — 28,687 Other operating expenses 132,389 52,874 37,722 36,449 26,444 34,886 — 320,764 Operating income (loss) 22,961 958 (582 ) 803 (36,846 ) (38,334 ) — (51,040 ) Interest expense, net of amounts capitalized — — (1 ) — 26 13,401 — 13,426 Income (loss) before income taxes 23,520 1,183 (392 ) 981 (35,289 ) (51,736 ) — (61,733 ) Long-lived assets(1) 774,613 208,563 232,228 412,033 269,153 256,298 (160,271 ) 1,992,617 Total assets 1,565,553 285,746 255,615 649,739 436,067 (358,680 ) (388,932 ) 2,445,108 Capital expenditures, excluding acquisitions 25,759 896 2,000 7,691 1,796 2,762 — 40,904 As of and for the six months ended June 30, 2015 U.S. Rig Services Fluid Management Services Coiled Tubing Services Fishing and Rental Services International Functional Support(2) Reconciling Eliminations Total Revenues from external customers $ 214,075 $ 89,933 $ 52,626 $ 70,832 $ 37,829 $ — $ — $ 465,295 Intersegment revenues 459 729 — 3,249 2,165 1,084 (7,686 ) — Depreciation and amortization 29,685 14,247 11,608 17,946 13,336 6,285 — 93,107 Impairment expense — — 21,700 — 21,352 — — 43,052 Other operating expenses 180,522 74,269 47,223 59,516 41,623 78,572 — 481,725 Operating income (loss) 3,868 1,417 (27,905 ) (6,630 ) (38,482 ) (84,857 ) — (152,589 ) Interest expense, net of amounts capitalized — — — — — 30,400 — 30,400 Income (loss) before income taxes 3,965 1,483 (27,894 ) (6,800 ) (39,550 ) (118,377 ) — (187,173 ) Long-lived assets(1) 796,551 171,058 166,931 319,480 221,832 245,188 (152,640 ) 1,768,400 Total assets 1,609,569 299,670 251,201 658,464 371,152 (481,597 ) (418,681 ) 2,289,778 Capital expenditures, excluding acquisitions 12,862 3,800 4,121 5,619 2,875 3,398 — 32,675 As of and for the six months ended June 30, 2014 U.S. Rig Services Fluid Management Services Coiled Tubing Services Fishing and Rental Services International Functional Support(2) Reconciling Eliminations Total Revenues from external customers $ 334,731 $ 123,675 $ 87,603 $ 102,550 $ 58,177 $ — $ — $ 706,736 Intersegment revenues 290 144 — — 4,768 1,085 (6,287 ) — Depreciation and amortization 28,791 16,433 11,805 24,615 15,699 5,936 — 103,279 Impairment expense — — — — 28,687 — — 28,687 Other operating expenses 258,637 103,937 70,242 74,302 61,128 63,686 — 631,932 Operating income (loss) 47,303 3,305 5,556 3,633 (47,337 ) (69,622 ) — (57,162 ) Interest expense, net of amounts capitalized — — (1 ) — 28 26,953 — 26,980 Income (loss) before income taxes 48,244 3,698 5,843 3,929 (47,237 ) (95,817 ) — (81,340 ) Long-lived assets(1) 774,613 208,563 232,228 412,033 269,153 256,298 (160,271 ) 1,992,617 Total assets 1,565,553 285,746 255,615 649,739 436,067 (358,680 ) (388,932 ) 2,445,108 Capital expenditures, excluding acquisitions 43,896 1,758 3,497 11,155 3,670 5,453 — 69,429 (1) Long-lived assets include fixed assets, goodwill, intangibles and other non-current assets. (2) Functional Support is geographically located in the United States. |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Condensed Consolidating Financial Statements [Abstract] | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Our 2021 Notes, ABL Facility and Term Loan Facility are guaranteed by virtually all our domestic subsidiaries, all of which are wholly owned. The guarantees are joint and several, full, complete and unconditional. There are no restrictions on the ability of subsidiary guarantors to transfer funds to the parent company. As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information pursuant to SEC Regulation S-X Rule 3-10, “ Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” CONDENSED CONSOLIDATING UNAUDITED BALANCE SHEETS June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets: Current assets $ 213,786 $ 262,473 $ 45,119 $ — $ 521,378 Property and equipment, net — 1,059,966 77,568 — 1,137,534 Goodwill — 556,658 4,381 — 561,039 Intercompany notes and accounts receivable and investment in subsidiaries 3,047,124 1,228,949 49,976 (4,326,049 ) — Other assets — 51,928 17,899 — 69,827 TOTAL ASSETS $ 3,260,910 $ 3,159,974 $ 194,943 $ (4,326,049 ) $ 2,289,778 Liabilities and equity: Current liabilities $ 21,018 $ 115,315 $ 21,606 $ — $ 157,939 Long-term debt 961,080 — — — 961,080 Intercompany notes and accounts payable 1,162,648 2,710,438 131,150 (4,004,236 ) — Deferred tax liabilities 178,008 398 (143 ) — 178,263 Other long-term liabilities 1,276 54,186 136 — 55,598 Equity 936,880 279,637 42,194 (321,813 ) 936,898 TOTAL LIABILITIES AND EQUITY $ 3,260,910 $ 3,159,974 $ 194,943 $ (4,326,049 ) $ 2,289,778 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (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 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 $ 3,209,894 $ 3,531,146 $ 221,109 $ (4,639,386 ) $ 2,322,763 Liabilities and equity: Current liabilities $ 22,046 $ 192,079 $ 27,733 $ — $ 241,858 Long-term debt 737,691 — — — 737,691 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 $ 3,209,894 $ 3,531,146 $ 221,109 $ (4,639,386 ) $ 2,322,763 CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS Three Months Ended June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenues $ — $ 185,061 $ 15,118 $ (2,683 ) $ 197,496 Direct operating expense — 148,714 11,325 (1,198 ) 158,841 Depreciation and amortization expense — 43,085 2,811 — 45,896 General and administrative expense 186 48,159 3,842 (1,477 ) 50,710 Impairment expense — — 21,352 — 21,352 Operating loss (186 ) (54,897 ) (24,212 ) (8 ) (79,303 ) Interest expense, net of amounts capitalized 17,058 — — — 17,058 Other (income) loss, net (582 ) 445 (126 ) 15 (248 ) Loss before income taxes (16,662 ) (55,342 ) (24,086 ) (23 ) (96,113 ) Income tax (expense) benefit 30,756 (74 ) 52 — 30,734 Net income (loss) $ 14,094 $ (55,416 ) $ (24,034 ) $ (23 ) $ (65,379 ) CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS Three Months Ended June 30, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenues $ — $ 326,835 $ 30,272 $ (6,512 ) $ 350,595 Direct operating expense — 245,267 20,632 (3,016 ) 262,883 Depreciation and amortization expense — 48,702 3,482 — 52,184 General and administrative expense 242 55,459 5,623 (3,443 ) 57,881 Impairment expense — — 28,687 — 28,687 Operating loss (242 ) (22,593 ) (28,152 ) (53 ) (51,040 ) Interest expense, net of amounts capitalized 13,402 (1 ) 25 — 13,426 Other income, net (618 ) (572 ) (1,564 ) 21 (2,733 ) Loss before income taxes (13,026 ) (22,020 ) (26,613 ) (74 ) (61,733 ) Income tax (expense) benefit 7,977 2,094 (534 ) — 9,537 Net loss $ (5,049 ) $ (19,926 ) $ (27,147 ) $ (74 ) $ (52,196 ) CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS Six Months Ended June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenues $ — $ 434,468 $ 38,069 $ (7,242 ) $ 465,295 Direct operating expense — 338,340 28,620 (3,589 ) 363,371 Depreciation and amortization expense — 87,524 5,583 — 93,107 General and administrative expense 407 113,794 7,793 (3,640 ) 118,354 Impairment expense — 21,700 21,352 — 43,052 Operating loss (407 ) (126,890 ) (25,279 ) (13 ) (152,589 ) Interest expense, net of amounts capitalized 30,400 — — — 30,400 Other (income) loss, net (900 ) 4,486 583 15 4,184 Loss before income taxes (29,907 ) (131,376 ) (25,862 ) (28 ) (187,173 ) Income tax benefit 61,618 3 497 — 62,118 Net income (loss) $ 31,711 $ (131,373 ) $ (25,365 ) $ (28 ) $ (125,055 ) CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS Six Months Ended June 30, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenues $ — $ 657,310 $ 63,553 $ (14,127 ) $ 706,736 Direct operating expense — 481,925 45,684 (6,424 ) 521,185 Depreciation and amortization expense — 96,465 6,814 — 103,279 General and administrative expense 478 105,007 12,957 (7,695 ) 110,747 Impairment expense — — 28,687 — 28,687 Operating loss (478 ) (26,087 ) (30,589 ) (8 ) (57,162 ) Interest expense, net of amounts capitalized 26,954 (1 ) 27 — 26,980 Other income, net (1,289 ) (1,296 ) (248 ) 31 (2,802 ) Loss before income taxes (26,143 ) (24,790 ) (30,368 ) (39 ) (81,340 ) Income tax benefit 10,983 5,843 419 — 17,245 Net loss $ (15,160 ) $ (18,947 ) $ (29,949 ) $ (39 ) $ (64,095 ) CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Net cash provided by (used in) operating activities $ — $ (6,317 ) $ 5,119 $ — $ (1,198 ) Cash flows from investing activities: Capital expenditures — (31,435 ) (1,240 ) — (32,675 ) Intercompany notes and accounts — 41,993 — (41,993 ) — Other investing activities, net — 10,545 — — 10,545 Net cash provided by (used in) investing activities — 21,103 (1,240 ) (41,993 ) (22,130 ) Cash flows from financing activities: Proceeds from long-term debt 305,550 — — — 305,550 Proceeds from borrowings on revolving credit facility 130,000 — — — 130,000 Repayments on revolving credit facility (200,000 ) — — — (200,000 ) Payment of deferred financing costs (11,072 ) — — — (11,072 ) Repurchases of common stock (312 ) — — — (312 ) Intercompany notes and accounts (41,993 ) — — 41,993 — Other financing activities, net (2,950 ) — — — (2,950 ) Net cash provided by financing activities 179,223 — — 41,993 221,216 Effect of changes in exchange rates on cash — — 289 — 289 Net increase in cash and cash equivalents 179,223 14,786 4,168 — 198,177 Cash and cash equivalents at beginning of period 19,949 450 6,905 — 27,304 Cash and cash equivalents at end of period $ 199,172 $ 15,236 $ 11,073 $ — $ 225,481 CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Net cash provided by operating activities $ — $ 100,170 $ 7,098 $ — $ 107,268 Cash flows from investing activities: Capital expenditures — (66,280 ) (3,149 ) — (69,429 ) Intercompany notes and accounts — (41,350 ) — 41,350 — Other investing activities, net — 9,389 — — 9,389 Net cash used in investing activities — (98,241 ) (3,149 ) 41,350 (60,040 ) Cash flows from financing activities: Repayments of long-term debt (3,573 ) — — — (3,573 ) Proceeds from borrowings on revolving credit facility 115,000 — — — 115,000 Repayments on revolving credit facility (160,000 ) — — — (160,000 ) Repurchases of common stock (2,211 ) — — — (2,211 ) Intercompany notes and accounts 41,350 — — (41,350 ) — Other financing activities, net (1,221 ) — — — (1,221 ) Net cash used in financing activities (10,655 ) — — (41,350 ) (52,005 ) Effect of changes in exchange rates on cash — — (81 ) — (81 ) Net increase (decrease) in cash and cash equivalents (10,655 ) 1,929 3,868 — (4,858 ) Cash and cash equivalents at beginning of period 23,115 788 4,403 — 28,306 Cash and cash equivalents at end of period $ 12,460 $ 2,717 $ 8,271 $ — $ 23,448 |
SIGNIFICANT ACCOUNTING POLICI23
SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Accounting Standards Not Yet Adopted in this Report | Recent Accounting Developments ASU 2015-03 . In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The objective of this ASU is to simplify presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The ASU is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods, with early adoption permitted. We adopted ASU 2015-03 in the second quarter of 2015 using the retrospective transition method. As a result, $10.7 million of unamortized deferred financing costs on our December 31, 2014 balance sheet was reclassified from non-current assets to a direct deduction of long-term debt. The adoption of this standard did not affect our results of operations or cash flows. 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 must be adopted using either a full retrospective method or a modified retrospective method. During a July 2015 meeting, the FASB affirmed a proposal to defer the effective date of the new revenue standard for all entities by one year. As a result, ASU 2014-09 is effective for the Company for interim and annual reporting periods beginning after December 15, 2017 with early adoption permitted for interim and annual reporting periods beginning after December 15, 2016. We are currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements. |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | A reconciliation of the total carrying amount of our equity accounts for the six months ended June 30, 2015 is as follows: COMMON STOCKHOLDERS Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings (Deficit) Total Number of Shares Amount at Par (in thousands) Balance at December 31, 2014 153,557 $ 15,356 $ 960,647 $ (37,280 ) $ 119,340 $ 1,058,063 Foreign currency translation — — — 516 — 516 Common stock purchases (145 ) (15 ) (297 ) — — (312 ) Share-based compensation 4,242 424 6,212 — — 6,636 Tax expense from share-based compensation — — (2,950 ) — — (2,950 ) Net loss — — — — (125,055 ) (125,055 ) Balance at June 30, 2015 157,654 $ 15,765 $ 963,612 $ (36,764 ) $ (5,715 ) $ 936,898 A reconciliation of the total carrying amount of our equity accounts for six months ended June 30, 2014 is as follows: COMMON STOCKHOLDERS Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Retained Earnings Total Number of Shares Amount at Par (in thousands) Balance at December 31, 2013 152,331 $ 15,233 $ 953,306 $ (15,414 ) $ 297,968 $ 1,251,093 Foreign currency translation — — — (2,001 ) — (2,001 ) Common stock purchases (283 ) (28 ) (2,183 ) — — (2,211 ) Share-based compensation 1,537 154 6,947 — — 7,101 Tax expense from share-based compensation — — (1,221 ) — — (1,221 ) Net loss — — — — (64,095 ) (64,095 ) Balance at June 30, 2014 153,585 $ 15,359 $ 956,849 $ (17,415 ) $ 233,873 $ 1,188,666 |
OTHER BALANCE SHEET INFORMATI25
OTHER BALANCE SHEET INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Balance Sheet Disclosures [Abstract] | |
Other Current Assets | The table below presents comparative detailed information about other current assets at June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 (in thousands) Other current assets: Deferred tax assets $ 14,688 $ 11,823 Prepaid current assets 21,770 28,218 Reinsurance receivable 9,131 9,200 VAT asset 17,452 18,889 Current assets held for sale 591 — Other 15,888 18,724 Total $ 79,520 $ 86,854 |
Other Current Liabilities | The table below presents comparative detailed information about other current liabilities at June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 (in thousands) Other current liabilities: Accrued payroll, taxes and employee benefits $ 19,394 $ 32,477 Accrued operating expenditures 18,858 45,899 Income, sales, use and other taxes 17,546 25,892 Self-insurance reserve 30,448 31,359 Accrued interest 17,869 15,241 Accrued insurance premiums 1,189 7,515 Share-based compensation and other liabilities 4,919 5,844 Total $ 110,223 $ 164,227 |
Other Noncurrent Assets | The table below presents comparative detailed information about other non-current assets at June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 (in thousands) Other non-current assets: Deferred tax assets $ 32,875 $ 35,238 Reinsurance receivable 9,561 9,537 Deposits 9,457 10,125 Equity method investments 1,000 987 Non-current assets held for sale 3,631 — Other 386 584 Total $ 56,910 $ 56,471 |
Other Noncurrent Liabilities | The table below presents comparative detailed information about other non-current liabilities at June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 (in thousands) Other non-current liabilities: Asset retirement obligations $ 12,608 $ 12,525 Environmental liabilities 5,531 5,730 Accrued rent — 263 Accrued sales, use and other taxes 6,145 5,411 Other 2,721 3,138 Total $ 27,005 $ 27,067 |
GOODWILL AND OTHER INTANGIBLE26
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2015 are as follows: U.S. Rig Services Fluid Management Services Coiled Tubing Services Fishing and Rental Services International Total (in thousands) December 31, 2014 $ 297,719 $ 24,479 $ 82,695 $ 173,463 $ 4,383 $ 582,739 Goodwill impairment — — (21,700 ) — — (21,700 ) June 30, 2015 $ 297,719 $ 24,479 $ 60,995 $ 173,463 $ 4,383 $ 561,039 |
Other Intangible Assets | The components of our other intangible assets as of June 30, 2015 and December 31, 2014 are as follows: June 30, 2015 December 31, 2014 (in thousands) Noncompete agreements: Gross carrying value $ 2,269 $ 2,269 Accumulated amortization (1,860 ) (1,710 ) Net carrying value 409 559 Patents, trademarks and tradenames: Gross carrying value 3,129 3,106 Accumulated amortization (283 ) (263 ) Net carrying value 2,846 2,843 Customer relationships and contracts: Gross carrying value 59,079 59,045 Accumulated amortization (53,571 ) (52,303 ) Net carrying value 5,508 6,742 Developed technology: Gross carrying value 8,494 8,494 Accumulated amortization (4,340 ) (4,138 ) Net carrying value 4,154 4,356 Customer backlog: Gross carrying value 779 779 Accumulated amortization (779 ) (779 ) Net carrying value — — Total: Gross carrying value 73,750 73,693 Accumulated amortization (60,833 ) (59,193 ) Net carrying value $ 12,917 $ 14,500 |
Weighted Average Remaining Amortization Periods and Expected Amortization Expense for the Next Five Years for Intangible | The weighted average remaining amortization periods and expected amortization expense for the next five years for our definite lived intangible assets are as follows: Weighted average remaining amortization period (years) Expected Amortization Expense Remainder of 2015 2016 2017 2018 2019 2020 (in thousands) Noncompete agreements 1.3 $ 149 $ 260 $ — $ — $ — $ — Trademarks 2.9 20 40 40 17 — — Customer relationships and contracts 3.6 1,237 1,876 1,392 431 341 231 Developed technology 15.5 199 398 398 398 324 221 Total expected intangible asset amortization expense $ 1,605 $ 2,574 $ 1,830 $ 846 $ 665 $ 452 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | As of June 30, 2015 and December 31, 2014 , the components of our long-term debt were as follows: June 30, 2015 December 31, 2014 (in thousands) 6.75% Senior Notes due 2021 $ 675,000 $ 675,000 Term Loan Facility due 2020 315,000 — Senior Secured Credit Facility revolving loans due 2016 — 70,000 Debt issuance costs and unamortized premium (discount) on debt, net (25,770 ) (7,309 ) Total 964,230 737,691 Less current portion (3,150 ) — Long-term debt $ 961,080 $ 737,691 |
Schedule of Debt | On or after March 1, 2016, the 2021 Notes will be subject to redemption at any time and from time to time at our option, in whole or in part, at the redemption prices below (expressed as percentages of the principal amount redeemed), plus accrued and unpaid interest to the applicable redemption date, if redeemed during the twelve-month period beginning on March 1 of the years indicated below: Year Percentage 2016 103.375 % 2017 102.250 % 2018 101.125 % 2019 and thereafter 100.000 % |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income and Expense | The table below presents comparative detailed information about our other income and expense, shown on the condensed consolidated statements of operations as “ other (income) loss, net ” for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in thousands) Interest income $ (25 ) $ (30 ) $ (40 ) $ (48 ) Foreign exchange (gain) loss 333 (1,377 ) 1,593 (11 ) Allowance for collectibility of notes receivable — — 3,950 — Other, net (556 ) (1,326 ) (1,319 ) (2,743 ) Total $ (248 ) $ (2,733 ) $ 4,184 $ (2,802 ) |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The components of our loss per share are as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Basic and Diluted EPS Calculation: Numerator Net loss $ (65,379 ) $ (52,196 ) $ (125,055 ) $ (64,095 ) Denominator Weighted average shares outstanding $ 156,347 $ 153,496 $ 155,586 153,157 Basic and diluted loss per share $ (0.42 ) $ (0.34 ) $ (0.80 ) $ (0.42 ) |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number Of Performance Units Earned Based on Relative Placement of Total Stockholder Return for Period Within Peer Group | The number of performance units that may be earned by a participant is determined at the end of the 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 Performance Units Earned as a Percentage of Target First 200 % Second 180 % Third 160 % Fourth 140 % Fifth 120 % Sixth 100 % Seventh 0 % Eighth 0 % Ninth 0 % Tenth 0 % Eleventh 0 % Twelfth 0 % |
ESTIMATED FAIR VALUE OF FINAN31
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The following is a summary of the carrying amounts and estimated fair values of our financial instruments as of June 30, 2015 and December 31, 2014 . Cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities. These carrying amounts approximate fair value because of the short maturity of the instruments or because the carrying value is equal to the fair value of those instruments on the balance sheet date. June 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Financial assets: Notes receivable - Argentina operations sale $ 3,755 $ 3,755 $ 8,300 $ 8,300 Financial liabilities: 6.75% Senior Notes due 2021 $ 675,000 $ 399,938 $ 675,000 $ 413,438 Term Loan Facility due 2020 315,000 315,000 — — Credit Facility revolving loans — — 70,000 70,000 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | The following tables set forth our unaudited segment information as of and for the three and six months ended June 30, 2015 and 2014 (in thousands): As of and for the three months ended June 30, 2015 U.S. Rig Services Fluid Management Services Coiled Tubing Services Fishing and Rental Services International Functional Support(2) Reconciling Eliminations Total Revenues from external customers $ 93,253 $ 39,178 $ 21,609 $ 28,142 $ 15,314 $ — $ — $ 197,496 Intersegment revenues 196 421 — 1,447 798 542 (3,404 ) — Depreciation and amortization 14,975 6,525 5,841 8,982 6,507 3,066 — 45,896 Impairment expense — — — — 21,352 — — 21,352 Other operating expenses 82,410 32,712 19,851 25,734 16,326 32,518 — 209,551 Operating loss (4,132 ) (59 ) (4,083 ) (6,574 ) (28,871 ) (35,584 ) — (79,303 ) Interest expense, net of amounts capitalized — — — — — 17,058 — 17,058 Loss before income taxes (4,067 ) (41 ) (4,074 ) (6,574 ) (28,919 ) (52,438 ) — (96,113 ) Long-lived assets(1) 796,551 171,058 166,931 319,480 221,832 245,188 (152,640 ) 1,768,400 Total assets 1,609,569 299,670 251,201 658,464 371,152 (481,597 ) (418,681 ) 2,289,778 Capital expenditures, excluding acquisitions 3,201 2,506 2,007 2,124 1,509 2,333 — 13,680 As of and for the three months ended June 30, 2014 U.S. Rig Services Fluid Management Services Coiled Tubing Services Fishing and Rental Services International Functional Support(2) Reconciling Eliminations Total Revenues from external customers $ 169,980 $ 62,087 $ 43,108 $ 49,340 $ 26,080 $ — $ — $ 350,595 Intersegment revenues 167 32 — — 2,547 543 (3,289 ) — Depreciation and amortization 14,630 8,255 5,968 12,088 7,795 3,448 — 52,184 Impairment expense — — — — 28,687 — — 28,687 Other operating expenses 132,389 52,874 37,722 36,449 26,444 34,886 — 320,764 Operating income (loss) 22,961 958 (582 ) 803 (36,846 ) (38,334 ) — (51,040 ) Interest expense, net of amounts capitalized — — (1 ) — 26 13,401 — 13,426 Income (loss) before income taxes 23,520 1,183 (392 ) 981 (35,289 ) (51,736 ) — (61,733 ) Long-lived assets(1) 774,613 208,563 232,228 412,033 269,153 256,298 (160,271 ) 1,992,617 Total assets 1,565,553 285,746 255,615 649,739 436,067 (358,680 ) (388,932 ) 2,445,108 Capital expenditures, excluding acquisitions 25,759 896 2,000 7,691 1,796 2,762 — 40,904 As of and for the six months ended June 30, 2015 U.S. Rig Services Fluid Management Services Coiled Tubing Services Fishing and Rental Services International Functional Support(2) Reconciling Eliminations Total Revenues from external customers $ 214,075 $ 89,933 $ 52,626 $ 70,832 $ 37,829 $ — $ — $ 465,295 Intersegment revenues 459 729 — 3,249 2,165 1,084 (7,686 ) — Depreciation and amortization 29,685 14,247 11,608 17,946 13,336 6,285 — 93,107 Impairment expense — — 21,700 — 21,352 — — 43,052 Other operating expenses 180,522 74,269 47,223 59,516 41,623 78,572 — 481,725 Operating income (loss) 3,868 1,417 (27,905 ) (6,630 ) (38,482 ) (84,857 ) — (152,589 ) Interest expense, net of amounts capitalized — — — — — 30,400 — 30,400 Income (loss) before income taxes 3,965 1,483 (27,894 ) (6,800 ) (39,550 ) (118,377 ) — (187,173 ) Long-lived assets(1) 796,551 171,058 166,931 319,480 221,832 245,188 (152,640 ) 1,768,400 Total assets 1,609,569 299,670 251,201 658,464 371,152 (481,597 ) (418,681 ) 2,289,778 Capital expenditures, excluding acquisitions 12,862 3,800 4,121 5,619 2,875 3,398 — 32,675 As of and for the six months ended June 30, 2014 U.S. Rig Services Fluid Management Services Coiled Tubing Services Fishing and Rental Services International Functional Support(2) Reconciling Eliminations Total Revenues from external customers $ 334,731 $ 123,675 $ 87,603 $ 102,550 $ 58,177 $ — $ — $ 706,736 Intersegment revenues 290 144 — — 4,768 1,085 (6,287 ) — Depreciation and amortization 28,791 16,433 11,805 24,615 15,699 5,936 — 103,279 Impairment expense — — — — 28,687 — — 28,687 Other operating expenses 258,637 103,937 70,242 74,302 61,128 63,686 — 631,932 Operating income (loss) 47,303 3,305 5,556 3,633 (47,337 ) (69,622 ) — (57,162 ) Interest expense, net of amounts capitalized — — (1 ) — 28 26,953 — 26,980 Income (loss) before income taxes 48,244 3,698 5,843 3,929 (47,237 ) (95,817 ) — (81,340 ) Long-lived assets(1) 774,613 208,563 232,228 412,033 269,153 256,298 (160,271 ) 1,992,617 Total assets 1,565,553 285,746 255,615 649,739 436,067 (358,680 ) (388,932 ) 2,445,108 Capital expenditures, excluding acquisitions 43,896 1,758 3,497 11,155 3,670 5,453 — 69,429 (1) Long-lived assets include fixed assets, goodwill, intangibles and other non-current assets. (2) Functional Support is geographically located in the United States |
CONDENSED CONSOLIDATING FINAN33
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING UNAUDITED BALANCE SHEETS June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets: Current assets $ 213,786 $ 262,473 $ 45,119 $ — $ 521,378 Property and equipment, net — 1,059,966 77,568 — 1,137,534 Goodwill — 556,658 4,381 — 561,039 Intercompany notes and accounts receivable and investment in subsidiaries 3,047,124 1,228,949 49,976 (4,326,049 ) — Other assets — 51,928 17,899 — 69,827 TOTAL ASSETS $ 3,260,910 $ 3,159,974 $ 194,943 $ (4,326,049 ) $ 2,289,778 Liabilities and equity: Current liabilities $ 21,018 $ 115,315 $ 21,606 $ — $ 157,939 Long-term debt 961,080 — — — 961,080 Intercompany notes and accounts payable 1,162,648 2,710,438 131,150 (4,004,236 ) — Deferred tax liabilities 178,008 398 (143 ) — 178,263 Other long-term liabilities 1,276 54,186 136 — 55,598 Equity 936,880 279,637 42,194 (321,813 ) 936,898 TOTAL LIABILITIES AND EQUITY $ 3,260,910 $ 3,159,974 $ 194,943 $ (4,326,049 ) $ 2,289,778 CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (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 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 $ 3,209,894 $ 3,531,146 $ 221,109 $ (4,639,386 ) $ 2,322,763 Liabilities and equity: Current liabilities $ 22,046 $ 192,079 $ 27,733 $ — $ 241,858 Long-term debt 737,691 — — — 737,691 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 $ 3,209,894 $ 3,531,146 $ 221,109 $ (4,639,386 ) $ 2,322,763 |
Condensed Consolidating Unaudited Statements of Operations | CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS Three Months Ended June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenues $ — $ 185,061 $ 15,118 $ (2,683 ) $ 197,496 Direct operating expense — 148,714 11,325 (1,198 ) 158,841 Depreciation and amortization expense — 43,085 2,811 — 45,896 General and administrative expense 186 48,159 3,842 (1,477 ) 50,710 Impairment expense — — 21,352 — 21,352 Operating loss (186 ) (54,897 ) (24,212 ) (8 ) (79,303 ) Interest expense, net of amounts capitalized 17,058 — — — 17,058 Other (income) loss, net (582 ) 445 (126 ) 15 (248 ) Loss before income taxes (16,662 ) (55,342 ) (24,086 ) (23 ) (96,113 ) Income tax (expense) benefit 30,756 (74 ) 52 — 30,734 Net income (loss) $ 14,094 $ (55,416 ) $ (24,034 ) $ (23 ) $ (65,379 ) CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS Three Months Ended June 30, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenues $ — $ 326,835 $ 30,272 $ (6,512 ) $ 350,595 Direct operating expense — 245,267 20,632 (3,016 ) 262,883 Depreciation and amortization expense — 48,702 3,482 — 52,184 General and administrative expense 242 55,459 5,623 (3,443 ) 57,881 Impairment expense — — 28,687 — 28,687 Operating loss (242 ) (22,593 ) (28,152 ) (53 ) (51,040 ) Interest expense, net of amounts capitalized 13,402 (1 ) 25 — 13,426 Other income, net (618 ) (572 ) (1,564 ) 21 (2,733 ) Loss before income taxes (13,026 ) (22,020 ) (26,613 ) (74 ) (61,733 ) Income tax (expense) benefit 7,977 2,094 (534 ) — 9,537 Net loss $ (5,049 ) $ (19,926 ) $ (27,147 ) $ (74 ) $ (52,196 ) CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS Six Months Ended June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenues $ — $ 434,468 $ 38,069 $ (7,242 ) $ 465,295 Direct operating expense — 338,340 28,620 (3,589 ) 363,371 Depreciation and amortization expense — 87,524 5,583 — 93,107 General and administrative expense 407 113,794 7,793 (3,640 ) 118,354 Impairment expense — 21,700 21,352 — 43,052 Operating loss (407 ) (126,890 ) (25,279 ) (13 ) (152,589 ) Interest expense, net of amounts capitalized 30,400 — — — 30,400 Other (income) loss, net (900 ) 4,486 583 15 4,184 Loss before income taxes (29,907 ) (131,376 ) (25,862 ) (28 ) (187,173 ) Income tax benefit 61,618 3 497 — 62,118 Net income (loss) $ 31,711 $ (131,373 ) $ (25,365 ) $ (28 ) $ (125,055 ) CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF OPERATIONS Six Months Ended June 30, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenues $ — $ 657,310 $ 63,553 $ (14,127 ) $ 706,736 Direct operating expense — 481,925 45,684 (6,424 ) 521,185 Depreciation and amortization expense — 96,465 6,814 — 103,279 General and administrative expense 478 105,007 12,957 (7,695 ) 110,747 Impairment expense — — 28,687 — 28,687 Operating loss (478 ) (26,087 ) (30,589 ) (8 ) (57,162 ) Interest expense, net of amounts capitalized 26,954 (1 ) 27 — 26,980 Other income, net (1,289 ) (1,296 ) (248 ) 31 (2,802 ) Loss before income taxes (26,143 ) (24,790 ) (30,368 ) (39 ) (81,340 ) Income tax benefit 10,983 5,843 419 — 17,245 Net loss $ (15,160 ) $ (18,947 ) $ (29,949 ) $ (39 ) $ (64,095 ) |
Condensed Consolidating Unaudited Statements of Cash Flows | CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Net cash provided by (used in) operating activities $ — $ (6,317 ) $ 5,119 $ — $ (1,198 ) Cash flows from investing activities: Capital expenditures — (31,435 ) (1,240 ) — (32,675 ) Intercompany notes and accounts — 41,993 — (41,993 ) — Other investing activities, net — 10,545 — — 10,545 Net cash provided by (used in) investing activities — 21,103 (1,240 ) (41,993 ) (22,130 ) Cash flows from financing activities: Proceeds from long-term debt 305,550 — — — 305,550 Proceeds from borrowings on revolving credit facility 130,000 — — — 130,000 Repayments on revolving credit facility (200,000 ) — — — (200,000 ) Payment of deferred financing costs (11,072 ) — — — (11,072 ) Repurchases of common stock (312 ) — — — (312 ) Intercompany notes and accounts (41,993 ) — — 41,993 — Other financing activities, net (2,950 ) — — — (2,950 ) Net cash provided by financing activities 179,223 — — 41,993 221,216 Effect of changes in exchange rates on cash — — 289 — 289 Net increase in cash and cash equivalents 179,223 14,786 4,168 — 198,177 Cash and cash equivalents at beginning of period 19,949 450 6,905 — 27,304 Cash and cash equivalents at end of period $ 199,172 $ 15,236 $ 11,073 $ — $ 225,481 CONDENSED CONSOLIDATING UNAUDITED STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Net cash provided by operating activities $ — $ 100,170 $ 7,098 $ — $ 107,268 Cash flows from investing activities: Capital expenditures — (66,280 ) (3,149 ) — (69,429 ) Intercompany notes and accounts — (41,350 ) — 41,350 — Other investing activities, net — 9,389 — — 9,389 Net cash used in investing activities — (98,241 ) (3,149 ) 41,350 (60,040 ) Cash flows from financing activities: Repayments of long-term debt (3,573 ) — — — (3,573 ) Proceeds from borrowings on revolving credit facility 115,000 — — — 115,000 Repayments on revolving credit facility (160,000 ) — — — (160,000 ) Repurchases of common stock (2,211 ) — — — (2,211 ) Intercompany notes and accounts 41,350 — — (41,350 ) — Other financing activities, net (1,221 ) — — — (1,221 ) Net cash used in financing activities (10,655 ) — — (41,350 ) (52,005 ) Effect of changes in exchange rates on cash — — (81 ) — (81 ) Net increase (decrease) in cash and cash equivalents (10,655 ) 1,929 3,868 — (4,858 ) Cash and cash equivalents at beginning of period 23,115 788 4,403 — 28,306 Cash and cash equivalents at end of period $ 12,460 $ 2,717 $ 8,271 $ — $ 23,448 |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
ASSETS HELD FOR SALE [Abstract] | |||||
Impairment expense | $ 21,352 | $ 28,687 | $ 43,052 | $ 28,687 | |
Property and equipment held for sale | 3,631 | 3,631 | $ 0 | ||
Inventories held for sale | $ 591 | $ 591 | $ 0 |
EQUITY (Details)
EQUITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period (in shares) | 153,557,108 | |||
Balance at end of period (in shares) | 157,654,235 | 157,654,235 | ||
Balance at beginning of period | $ 1,058,063 | $ 1,251,093 | ||
Foreign currency translation | $ 1,213 | $ 3,264 | 516 | (2,001) |
Common stock purchases | (312) | (2,211) | ||
Share-based compensation | 6,636 | 7,101 | ||
Tax expense from share-based compensation | (2,950) | (1,221) | ||
Net loss | (65,379) | (52,196) | (125,055) | (64,095) |
Balance at end of period | $ 936,898 | $ 1,188,666 | $ 936,898 | $ 1,188,666 |
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period (in shares) | 153,557,000 | 152,331,000 | ||
Common stock purchases (in shares) | (145,000) | (283,000) | ||
Share-based compensation (in shares) | 4,242,000 | 1,537,000 | ||
Balance at end of period (in shares) | 157,654,000 | 153,585,000 | 157,654,000 | 153,585,000 |
Balance at beginning of period | $ 15,356 | $ 15,233 | ||
Common stock purchases | (15) | (28) | ||
Share-based compensation | 424 | 154 | ||
Balance at end of period | $ 15,765 | $ 15,359 | 15,765 | 15,359 |
Additional Paid-in Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 960,647 | 953,306 | ||
Common stock purchases | (297) | (2,183) | ||
Share-based compensation | 6,212 | 6,947 | ||
Tax expense from share-based compensation | (2,950) | (1,221) | ||
Balance at end of period | 963,612 | 956,849 | 963,612 | 956,849 |
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | (37,280) | (15,414) | ||
Foreign currency translation | 516 | (2,001) | ||
Balance at end of period | (36,764) | (17,415) | (36,764) | (17,415) |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 119,340 | 297,968 | ||
Net loss | (125,055) | (64,095) | ||
Balance at end of period | $ (5,715) | $ 233,873 | $ (5,715) | $ 233,873 |
OTHER BALANCE SHEET INFORMATI36
OTHER BALANCE SHEET INFORMATION - Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other current assets: | ||
Deferred tax assets | $ 14,688 | $ 11,823 |
Prepaid current assets | 21,770 | 28,218 |
Reinsurance receivable | 9,131 | 9,200 |
VAT asset | 17,452 | 18,889 |
Inventories held for sale | 591 | 0 |
Other | 15,888 | 18,724 |
Total | $ 79,520 | $ 86,854 |
OTHER BALANCE SHEET INFORMATI37
OTHER BALANCE SHEET INFORMATION - Other Noncurrent Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other non-current assets: | ||
Deferred tax assets | $ 32,875 | $ 35,238 |
Reinsurance receivable | 9,561 | 9,537 |
Deposits | 9,457 | 10,125 |
Equity method investments | 1,000 | 987 |
Property and equipment held for sale | 3,631 | 0 |
Other | 386 | 584 |
Total | $ 56,910 | $ 56,471 |
OTHER BALANCE SHEET INFORMATI38
OTHER BALANCE SHEET INFORMATION - Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other current liabilities: | ||
Accrued payroll, taxes and employee benefits | $ 19,394 | $ 32,477 |
Accrued operating expenditures | 18,858 | 45,899 |
Income, sales, use and other taxes | 17,546 | 25,892 |
Self-insurance reserve | 30,448 | 31,359 |
Accrued interest | 17,869 | 15,241 |
Insurance premium financing | 1,189 | 7,515 |
Share-based compensation and other liabilities | 4,919 | 5,844 |
Total | $ 110,223 | $ 164,227 |
OTHER BALANCE SHEET INFORMATI39
OTHER BALANCE SHEET INFORMATION - Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other non-current liabilities: | ||
Asset retirement obligations | $ 12,608 | $ 12,525 |
Environmental liabilities | 5,531 | 5,730 |
Accrued rent | 0 | 263 |
Accrued sales, use and other taxes | 6,145 | 5,411 |
Other | 2,721 | 3,138 |
Total | $ 27,005 | $ 27,067 |
GOODWILL AND OTHER INTANGIBLE40
GOODWILL AND OTHER INTANGIBLE ASSETS - Carrying Amount of Goodwill (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Dec. 31, 2014 | Jun. 30, 2015 | |
Goodwill [Roll Forward] | ||
December 31, 2014 | $ 582,739,000 | |
Goodwill impairment | (21,700,000) | |
June 30, 2015 | $ 582,739,000 | 561,039,000 |
U.S. Rig Services | ||
Goodwill [Roll Forward] | ||
December 31, 2014 | 297,719,000 | |
Goodwill impairment | 0 | |
June 30, 2015 | 297,719,000 | 297,719,000 |
Fluid Management Services | ||
Goodwill [Roll Forward] | ||
December 31, 2014 | 24,479,000 | |
Goodwill impairment | 0 | |
June 30, 2015 | 24,479,000 | 24,479,000 |
Coiled Tubing Services | ||
Goodwill [Roll Forward] | ||
December 31, 2014 | 82,695,000 | |
Goodwill impairment | (19,100,000) | (21,700,000) |
June 30, 2015 | 82,695,000 | 60,995,000 |
Fishing and Rental Services | ||
Goodwill [Roll Forward] | ||
December 31, 2014 | 173,463,000 | |
Goodwill impairment | 0 | |
June 30, 2015 | 173,463,000 | 173,463,000 |
International | ||
Goodwill [Roll Forward] | ||
December 31, 2014 | 4,383,000 | |
Goodwill impairment | 0 | |
June 30, 2015 | $ 4,383,000 | $ 4,383,000 |
GOODWILL AND OTHER INTANGIBLE41
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Intangible Assets [Line Items] | ||
Gross carrying value | $ 73,750 | $ 73,693 |
Accumulated amortization | (60,833) | (59,193) |
Net carrying value | 12,917 | 14,500 |
Noncompete agreements | ||
Intangible Assets [Line Items] | ||
Gross carrying value | 2,269 | 2,269 |
Accumulated amortization | (1,860) | (1,710) |
Net carrying value | 409 | 559 |
Patents, trademarks and tradename | ||
Intangible Assets [Line Items] | ||
Gross carrying value | 3,129 | 3,106 |
Accumulated amortization | (283) | (263) |
Net carrying value | 2,846 | 2,843 |
Customer relationships and contracts | ||
Intangible Assets [Line Items] | ||
Gross carrying value | 59,079 | 59,045 |
Accumulated amortization | (53,571) | (52,303) |
Net carrying value | 5,508 | 6,742 |
Developed technology | ||
Intangible Assets [Line Items] | ||
Gross carrying value | 8,494 | 8,494 |
Accumulated amortization | (4,340) | (4,138) |
Net carrying value | 4,154 | 4,356 |
Customer backlog | ||
Intangible Assets [Line Items] | ||
Gross carrying value | 779 | 779 |
Accumulated amortization | (779) | (779) |
Net carrying value | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE42
GOODWILL AND OTHER INTANGIBLE ASSETS - Weighted Average Remaining Amortization Periods and Expected Amortization Expense for Next Five Years for Intangible Assets (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Finite-Lived Intangible Assets [Line Items] | |
Expected Amortization Expense-Remainder of 2015 | $ 1,605 |
Expected Amortization Expense-2016 | 2,574 |
Expected Amortization Expense-2017 | 1,830 |
Expected Amortization Expense-2018 | 846 |
Expected Amortization Expense-2019 | 665 |
Expected Amortization Expense-2020 | $ 452 |
Noncompete agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year 3 months 18 days |
Expected Amortization Expense-Remainder of 2015 | $ 149 |
Expected Amortization Expense-2016 | 260 |
Expected Amortization Expense-2017 | 0 |
Expected Amortization Expense-2018 | 0 |
Expected Amortization Expense-2019 | 0 |
Expected Amortization Expense-2020 | $ 0 |
Patents, trademarks and tradename | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 2 years 10 months 24 days |
Expected Amortization Expense-Remainder of 2015 | $ 20 |
Expected Amortization Expense-2016 | 40 |
Expected Amortization Expense-2017 | 40 |
Expected Amortization Expense-2018 | 17 |
Expected Amortization Expense-2019 | 0 |
Expected Amortization Expense-2020 | $ 0 |
Customer relationships and contracts | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years 7 months 6 days |
Expected Amortization Expense-Remainder of 2015 | $ 1,237 |
Expected Amortization Expense-2016 | 1,876 |
Expected Amortization Expense-2017 | 1,392 |
Expected Amortization Expense-2018 | 431 |
Expected Amortization Expense-2019 | 341 |
Expected Amortization Expense-2020 | $ 231 |
Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years 6 months |
Expected Amortization Expense-Remainder of 2015 | $ 199 |
Expected Amortization Expense-2016 | 398 |
Expected Amortization Expense-2017 | 398 |
Expected Amortization Expense-2018 | 398 |
Expected Amortization Expense-2019 | 324 |
Expected Amortization Expense-2020 | $ 221 |
GOODWILL AND OTHER INTANGIBLE43
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill [Line Items] | |||||
Indefinite-lived trade names | $ 2,700 | $ 2,700 | |||
Goodwill impairment | 21,700 | ||||
Amortization of intangible assets | $ 800 | $ 2,600 | 1,600 | $ 5,200 | |
Coiled Tubing Services | |||||
Goodwill [Line Items] | |||||
Goodwill impairment | $ 19,100 | $ 21,700 |
LONG-TERM DEBT - Schedule of De
LONG-TERM DEBT - Schedule of Debt (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
6.75% Senior Notes due 2021 | $ 675,000,000 | $ 675,000,000 |
Senior Secured Credit Facility revolving loans due 2016 | 0 | 70,000,000 |
Debt issuance costs and unamortized premium (discount) on debt, net | 25,770,000 | (7,309,000) |
Total debt | 964,230,000 | 737,691,000 |
Current portion of long-term debt | (3,150,000) | 0 |
Long-term debt | 961,080,000 | 737,691,000 |
Term Loan Facilities due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Term Loan Facility due 2020 | $ 315,000,000 | $ 0 |
LONG-TERM DEBT - 6.75% Senior N
LONG-TERM DEBT - 6.75% Senior Notes due 2021 (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Mar. 04, 2011 | |
Debt Instrument [Line Items] | |||
6.75% Senior Notes due 2021 | $ 675,000,000 | $ 675,000,000 | |
Fiscal Year 2016 | |||
Debt Instrument [Line Items] | |||
Debt redemption price percent of principal amount | 103.375% | ||
Fiscal Year 2017 | |||
Debt Instrument [Line Items] | |||
Debt redemption price percent of principal amount | 102.25% | ||
Fiscal Year 2018 | |||
Debt Instrument [Line Items] | |||
Debt redemption price percent of principal amount | 101.125% | ||
Fiscal Year 2019 And Thereafter | |||
Debt Instrument [Line Items] | |||
Debt redemption price percent of principal amount | 100.00% | ||
Senior Notes 6.75 Percent Due 2021 | Prior To March 1, 2016 | |||
Debt Instrument [Line Items] | |||
Senior notes, call feature | At any time and from time to time prior to March 1, 2016, we may, at our option, redeem all or a portion of the 2021 Notes at a redemption price equal to 100% of the principal amount plus a premium with respect to the 2021 Notes plus accrued and unpaid interest to the redemption date. The premium is the excess of (i) the present value of the redemption price of 103.375% of the principal amount, plus all remaining scheduled interest payments due through March 1, 2016 discounted at the treasury rate plus 0.5% over (ii) the principal amount of the note. If we experience a change of control, subject to certain exceptions, we must give holders of the 2021 Notes the opportunity to sell to us their 2021 Notes, in whole or in part, at a purchase price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest to the date of purchase. | ||
Senior notes, latest call date | Mar. 1, 2016 | ||
Debt redemption price percent of principal amount | 103.375% | ||
Additional interest rate above Federal Funds rate | 0.50% | ||
Debt purchase price percent of principal amount | 101.00% | ||
Senior Notes | Senior Notes 6.75 Percent Due 2021 | |||
Debt Instrument [Line Items] | |||
Debt stated percentage | 6.75% | ||
Debt instrument interest rate payment date | Interest on the 2021 Notes is payable on March 1 and September 1 of each year. | ||
Senior notes, maturity date | Mar. 1, 2021 |
LONG-TERM DEBT LONG-TERM DEBT -
LONG-TERM DEBT LONG-TERM DEBT - Facilities due 2020 (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 15,000,000 | $ 15,000,000 | ||||
Credit Facility revolving loans, carrying value | 0 | 0 | $ 70,000,000 | |||
Letters of Credit Outstanding, Amount | 2,000,000 | 2,000,000 | ||||
ABL Facilities due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | ||||
Line of Credit Facility, Expiration Date | Feb. 28, 2020 | |||||
Commitment fee minimum | 1.00% | 1.00% | ||||
Commitment fee maximum | 1.25% | 1.25% | ||||
Debt Instrument Interest Additional Interest Above annual L I B O R Rate | 4.50% | |||||
Fixed charge coverage ratio | 1 | 1 | ||||
Credit Facility revolving loans, carrying value | $ 0 | $ 0 | ||||
Letters of Credit Outstanding, Amount | 48,200,000 | 48,200,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 44,400,000 | 44,400,000 | ||||
Line Of Credit Facility Weighted Average Interest Rate During Period | 0.00% | |||||
Term Loan Facilities due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term Loan Facility due 2020 | $ 315,000,000 | $ 315,000,000 | $ 0 | |||
Term Loan Facilities, Expiration Date | Jun. 1, 2020 | |||||
Original Issue Discount Rate | 3.00% | 3.00% | ||||
Debt Instrument Interest Additional Interest Above annual L I B O R Rate | 9.25% | |||||
L I B O R floor | 1.00% | |||||
Quarterly Loan Principal Payment | $ 787,500 | |||||
Debt Instrument, Unamortized Discount | $ 9,400,000 | $ 9,400,000 | ||||
Loan Facility Weighted Average Interest Rate During Period | 10.38% | |||||
Credit Facilities due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Deferred Finance Costs, Gross | $ 11,100,000 | $ 11,100,000 | ||||
Leverage ratio | 1.5 | 1.5 | ||||
Minimum liquidity requirement | $ 100,000,000 | $ 100,000,000 | ||||
2011 Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee minimum | 0.50% | 0.50% | ||||
Line Of Credit Facility Weighted Average Interest Rate During Period | 3.14% | 2.88% | 3.15% | 2.88% | ||
2011 Credit Facility | Amendment Of Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 400,000,000 | $ 400,000,000 | ||||
Line of Credit Facility, Expiration Date | Mar. 31, 2016 |
LONG-TERM DEBT - Senior Secured
LONG-TERM DEBT - Senior Secured Credit Facility (Details) - Period [Domain] - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 15,000,000 | $ 15,000,000 | |||
Senior Secured Credit Facility revolving loans due 2016 | 0 | $ 0 | $ 70,000,000 | ||
Write off of Deferred Debt Issuance Cost | $ 800,000 | ||||
2011 Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Additional interest rate above Federal Funds rate | 0.50% | ||||
Additional interest rate above one-month adjusted LIBOR | 1.00% | ||||
Commitment fee minimum | 0.50% | 0.50% | |||
Line Of Credit Facility Weighted Average Interest Rate During Period | 3.14% | 2.88% | 3.15% | 2.88% | |
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. | ||||
2011 Credit Facility | L I B O R [Member] | Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line Of Credit Facility Interest Rate Basis Points | 2.25% | ||||
2011 Credit Facility | L I B O R [Member] | Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line Of Credit Facility Interest Rate Basis Points | 3.00% | ||||
2011 Credit Facility | Other Loans [Member] | Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line Of Credit Facility Interest Rate Basis Points | 1.25% | ||||
2011 Credit Facility | Other Loans [Member] | Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line Of Credit Facility Interest Rate Basis Points | 2.00% | ||||
2011 Credit Facility | Amendment Of Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 400,000,000 | $ 400,000,000 | |||
Line of Credit Facility, Expiration Date | Mar. 31, 2016 |
LONG-TERM DEBT LONG-TERM DEBT48
LONG-TERM DEBT LONG-TERM DEBT - Letter of Credit Facility (Details) $ in Millions | Jun. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
Maximum borrowing capacity | $ 15 |
Letters of Credit Outstanding, Amount | $ 2 |
OTHER INCOME, NET (Detail)
OTHER INCOME, NET (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ (25) | $ (30) | $ (40) | $ (48) |
Foreign exchange (gain) loss | 333 | (1,377) | 1,593 | (11) |
Allowance for collectibility of notes receivable | 0 | 0 | 3,950 | 0 |
Other, net | (556) | (1,326) | (1,319) | (2,743) |
Total | $ 248 | $ 2,733 | $ (4,184) | $ 2,802 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 32.00% | 15.40% | 33.20% | 21.20% | |
Unrecognized tax benefits, net of federal tax benefit, if recognized, would impact effective tax rate | $ 1 | $ 1 | $ 1 | ||
Tax expense related to unrecognized tax benefits | (0.1) | $ (0.1) | |||
Accrued liability for the payment of interest and penalties | 1 | 1 | $ 0.1 | ||
Remaining unrecognized tax positions, that may be recognized in the next twelve months | $ 0.6 | $ 0.6 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions | 1 Months Ended | 14 Months Ended | |||||
May. 31, 2015lawsuit | Apr. 30, 2015lawsuit | Mar. 31, 2015lawsuit | Aug. 31, 2014lawsuit | Jun. 30, 2014lawsuit | Jun. 30, 2015USD ($)lawsuit | Dec. 31, 2014USD ($) | |
Loss Contingencies [Line Items] | |||||||
Aggregate amount of contingent litigation liabilities | $ | $ 0.2 | ||||||
Number of lawsuits filed | 5 | ||||||
Loss Contingency, Pending Claims, Number | 1 | ||||||
Self-insurance liabilities related to workers' compensation, vehicular liabilities, and general liability claims recorded | $ | $ 59 | $ 61 | |||||
Insurance receivables which partially offset self-insurance liabilities | $ | 18.7 | 18.7 | |||||
Environmental remediation liabilities recorded | $ | $ 5.5 | $ 5.7 | |||||
Collective Action [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of lawsuits filed | 1 | 1 | 2 | ||||
Class Action [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of lawsuits filed | 2 | 4 | |||||
Enforcement Action [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of lawsuits filed | 1 | ||||||
Lawsuits consolidated to one action [Member] | Class Action [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of lawsuits filed | 2 | 2 | |||||
Pending decision regarding whether lawsuit will move forward in state or federal court [Member] | Class Action [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of lawsuits filed | 1 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator | ||||
Net loss | $ (65,379) | $ (52,196) | $ (125,055) | $ (64,095) |
Denominator | ||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 156,347 | 153,496 | 155,586 | 153,157 |
Basic and diluted (per share) | $ (0.42) | $ (0.34) | $ (0.80) | $ (0.42) |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Stock Option | ||||
Antidilutive Securiites Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1.3 | 1.3 | 1.3 | 1.4 |
Stock Appreciation Rights (SARs) | ||||
Antidilutive Securiites Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.3 | 0.3 | 0.3 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Feb. 28, 2015 | Jan. 31, 2015 | May. 31, 2014 | May. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award requisite service period | 3 years | |||||||
Share-based compensation expense recognized | $ 2.1 | $ 2.4 | $ 6.2 | $ 7.1 | ||||
Income tax benefit recognized related to share-based awards | 0.7 | $ 0.7 | 2.2 | $ 2.3 | ||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation expense expected to be recognized | $ 10.3 | $ 10.3 | ||||||
Compensation expense expected to be recognized, weighted average remaining vesting period | 1 year 6 months | |||||||
Phantom Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares outstanding (shares) | 0 | 0 | ||||||
Performance Based Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Performance units issued | 400,000 | 2,100,000 | ||||||
Fair value of outstanding performance units issued | $ 6.2 | $ 6.2 | ||||||
Compensation expense expected to be recognized | $ 4.8 | $ 4.8 | ||||||
Compensation expense expected to be recognized, weighted average remaining vesting period | 2 years 4 months 24 days | |||||||
Outside directors | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense recognized | $ 1.6 | $ 1.6 | ||||||
Shares of common stock issued | 598,860 |
SHARE-BASED COMPENSATION - Numb
SHARE-BASED COMPENSATION - Number of Performance Units Earned Based on Relative Placement of Total Stockholder Return for Period Within Peer Group (Details) | 6 Months Ended |
Jun. 30, 2015 | |
First | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Units Earned as a Percentage of Target | 200.00% |
Second | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Units Earned as a Percentage of Target | 180.00% |
Third | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Units Earned as a Percentage of Target | 160.00% |
Fourth | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Units Earned as a Percentage of Target | 140.00% |
Fifth | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Units Earned as a Percentage of Target | 120.00% |
Sixth | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Units Earned as a Percentage of Target | 100.00% |
Seventh | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Units Earned as a Percentage of Target | 0.00% |
Eighth | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Units Earned as a Percentage of Target | 0.00% |
Ninth | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Units Earned as a Percentage of Target | 0.00% |
Tenth | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Units Earned as a Percentage of Target | 0.00% |
Eleventh | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Units Earned as a Percentage of Target | 0.00% |
Twelfth | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Units Earned as a Percentage of Target | 0.00% |
TRANSACTIONS WITH RELATED PAR56
TRANSACTIONS WITH RELATED PARTIES - Additional Information (Details) - Outside directors - Anadarko - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||||
Transactions with related party, revenue | $ 2.7 | $ 9.3 | $ 7.8 | $ 18.1 | |
Transactions with related party, receivables | $ 1 | $ 1 | $ 2.9 |
ESTIMATED FAIR VALUE OF FINAN57
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financial liabilities: | ||
Credit Facility revolving loans, carrying value | $ 0 | $ 70,000 |
Credit Facility revolving loans, fair value | 0 | 70,000 |
6.75% Senior Notes due 2021 | ||
Financial liabilities: | ||
Senior notes, carrying value | 675,000 | 675,000 |
Senior notes, fair value | 399,938 | 413,438 |
Argentina Operations Sale | ||
Financial assets: | ||
Notes receivable, carrying value | 3,755 | 8,300 |
Notes receivable, fair value | 3,755 | 8,300 |
Term Loan Facilities due 2020 [Member] | ||
Financial liabilities: | ||
Senior notes, fair value | 315,000 | 0 |
Term Loan Facility due 2020 | $ 315,000 | $ 0 |
ESTIMATED FAIR VALUE OF FINAN58
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Allowance for collectibility of notes receivable | $ 0 | $ 0 | $ 3,950 | $ 0 | |
6.75% Senior Notes due 2021 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Debt stated percentage | 6.75% | 6.75% | |||
Senior notes, carrying value | $ 675,000 | $ 675,000 | $ 675,000 | ||
Senior notes, fair value | $ 399,938 | $ 399,938 | $ 413,438 | ||
Percentage of Senior Notes fair value over carrying value | 59.30% | 59.30% |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) - Jun. 30, 2015 - ft | Total |
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 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |||||
Segment Reporting Information [Line Items] | |||||||||
Revenues from external customers | $ 197,496 | $ 350,595 | $ 465,295 | $ 706,736 | |||||
Intersegment revenues | 0 | 0 | 0 | 0 | |||||
Depreciation and amortization | 45,896 | 52,184 | 93,107 | 103,279 | |||||
Impairment expense | 21,352 | 28,687 | 43,052 | 28,687 | |||||
Other operating expenses | 209,551 | 320,764 | 481,725 | 631,932 | |||||
Operating loss | (79,303) | (51,040) | (152,589) | (57,162) | |||||
Interest expense, net of amounts capitalized | 17,058 | 13,426 | 30,400 | 26,980 | |||||
Loss before income taxes | (96,113) | (61,733) | (187,173) | (81,340) | |||||
Long-lived assets | [1] | 1,768,400 | 1,992,617 | 1,768,400 | 1,992,617 | ||||
Assets | 2,289,778 | 2,445,108 | 2,289,778 | 2,445,108 | $ 2,322,763 | ||||
Capital expenditures, excluding acquisitions | 13,680 | 40,904 | 32,675 | 69,429 | |||||
U.S. Rig Services | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues from external customers | 93,253 | 169,980 | 214,075 | 334,731 | |||||
Intersegment revenues | 196 | 167 | 459 | 290 | |||||
Depreciation and amortization | 14,975 | 14,630 | 29,685 | 28,791 | |||||
Impairment expense | 0 | 0 | 0 | 0 | |||||
Other operating expenses | 82,410 | 132,389 | 180,522 | 258,637 | |||||
Operating loss | (4,132) | 22,961 | 3,868 | 47,303 | |||||
Interest expense, net of amounts capitalized | 0 | 0 | 0 | 0 | |||||
Loss before income taxes | (4,067) | 23,520 | 3,965 | 48,244 | |||||
Long-lived assets | [1] | 796,551 | 774,613 | 796,551 | 774,613 | ||||
Assets | 1,609,569 | 1,565,553 | 1,609,569 | 1,565,553 | |||||
Capital expenditures, excluding acquisitions | 3,201 | 25,759 | 12,862 | 43,896 | |||||
Fluid Management Services | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues from external customers | 39,178 | 62,087 | 89,933 | 123,675 | |||||
Intersegment revenues | 421 | 32 | 729 | 144 | |||||
Depreciation and amortization | 6,525 | 8,255 | 14,247 | 16,433 | |||||
Impairment expense | 0 | 0 | 0 | 0 | |||||
Other operating expenses | 32,712 | 52,874 | 74,269 | 103,937 | |||||
Operating loss | (59) | 958 | 1,417 | 3,305 | |||||
Interest expense, net of amounts capitalized | 0 | 0 | 0 | 0 | |||||
Loss before income taxes | (41) | 1,183 | 1,483 | 3,698 | |||||
Long-lived assets | [1] | 171,058 | 208,563 | 171,058 | 208,563 | ||||
Assets | 299,670 | 285,746 | 299,670 | 285,746 | |||||
Capital expenditures, excluding acquisitions | 2,506 | 896 | 3,800 | 1,758 | |||||
Coiled Tubing Services | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues from external customers | 21,609 | 43,108 | 52,626 | 87,603 | |||||
Intersegment revenues | 0 | 0 | 0 | 0 | |||||
Depreciation and amortization | 5,841 | 5,968 | 11,608 | 11,805 | |||||
Impairment expense | 0 | 0 | 21,700 | 0 | |||||
Other operating expenses | 19,851 | 37,722 | 47,223 | 70,242 | |||||
Operating loss | (4,083) | (582) | (27,905) | 5,556 | |||||
Interest expense, net of amounts capitalized | 0 | (1) | 0 | (1) | |||||
Loss before income taxes | (4,074) | (392) | (27,894) | 5,843 | |||||
Long-lived assets | [1] | 166,931 | 232,228 | 166,931 | 232,228 | ||||
Assets | 251,201 | 255,615 | 251,201 | 255,615 | |||||
Capital expenditures, excluding acquisitions | 2,007 | 2,000 | 4,121 | 3,497 | |||||
Fishing and Rental Services | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues from external customers | 28,142 | 49,340 | 70,832 | 102,550 | |||||
Intersegment revenues | 1,447 | 0 | 3,249 | 0 | |||||
Depreciation and amortization | 8,982 | 12,088 | 17,946 | 24,615 | |||||
Impairment expense | 0 | 0 | 0 | 0 | |||||
Other operating expenses | 25,734 | 36,449 | 59,516 | 74,302 | |||||
Operating loss | (6,574) | 803 | (6,630) | 3,633 | |||||
Interest expense, net of amounts capitalized | 0 | 0 | 0 | 0 | |||||
Loss before income taxes | (6,574) | 981 | (6,800) | 3,929 | |||||
Long-lived assets | [1] | 319,480 | 412,033 | 319,480 | 412,033 | ||||
Assets | 658,464 | 649,739 | 658,464 | 649,739 | |||||
Capital expenditures, excluding acquisitions | 2,124 | 7,691 | 5,619 | 11,155 | |||||
International | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues from external customers | 15,314 | 26,080 | 37,829 | 58,177 | |||||
Intersegment revenues | 798 | 2,547 | 2,165 | 4,768 | |||||
Depreciation and amortization | 6,507 | 7,795 | 13,336 | 15,699 | |||||
Impairment expense | 21,352 | 28,687 | 21,352 | 28,687 | |||||
Other operating expenses | 16,326 | 26,444 | 41,623 | 61,128 | |||||
Operating loss | (28,871) | (36,846) | (38,482) | (47,337) | |||||
Interest expense, net of amounts capitalized | 0 | 26 | 0 | 28 | |||||
Loss before income taxes | (28,919) | (35,289) | (39,550) | (47,237) | |||||
Long-lived assets | [1] | 221,832 | 269,153 | 221,832 | 269,153 | ||||
Assets | 371,152 | 436,067 | 371,152 | 436,067 | |||||
Capital expenditures, excluding acquisitions | 1,509 | 1,796 | 2,875 | 3,670 | |||||
Functional Support | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues from external customers | [2] | 0 | 0 | 0 | 0 | ||||
Intersegment revenues | [2] | 542 | 543 | 1,084 | 1,085 | ||||
Depreciation and amortization | [2] | 3,066 | 3,448 | 6,285 | 5,936 | ||||
Impairment expense | 0 | [2] | 0 | 0 | [2] | 0 | |||
Other operating expenses | [2] | 32,518 | 34,886 | 78,572 | 63,686 | ||||
Operating loss | (35,584) | [2] | (38,334) | (84,857) | [2] | (69,622) | [2] | ||
Interest expense, net of amounts capitalized | [2] | 17,058 | 13,401 | 30,400 | 26,953 | ||||
Loss before income taxes | [2] | (52,438) | (51,736) | (118,377) | (95,817) | ||||
Long-lived assets | [1],[2] | 245,188 | 256,298 | 245,188 | 256,298 | ||||
Assets | [2] | (481,597) | (358,680) | (481,597) | (358,680) | ||||
Capital expenditures, excluding acquisitions | [2] | 2,333 | 2,762 | 3,398 | 5,453 | ||||
Reconciling Eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues from external customers | 0 | 0 | 0 | 0 | |||||
Intersegment revenues | (3,404) | (3,289) | (7,686) | (6,287) | |||||
Depreciation and amortization | 0 | 0 | 0 | 0 | |||||
Impairment expense | 0 | 0 | 0 | 0 | |||||
Other operating expenses | 0 | 0 | 0 | 0 | |||||
Operating loss | 0 | 0 | 0 | 0 | |||||
Interest expense, net of amounts capitalized | 0 | 0 | 0 | 0 | |||||
Loss before income taxes | 0 | 0 | 0 | 0 | |||||
Long-lived assets | [1] | (152,640) | (160,271) | (152,640) | (160,271) | ||||
Assets | (418,681) | (388,932) | (418,681) | (388,932) | |||||
Capital expenditures, excluding acquisitions | $ 0 | $ 0 | $ 0 | $ 0 | |||||
[1] | Long-lived assets include fixed assets, goodwill, intangibles and other non-current assets | ||||||||
[2] | Functional Support is geographically located in the United States. |
CONDENSED CONSOLIDATING FINAN61
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Current assets | $ 521,378 | $ 433,795 | ||
Property and equipment, net | 1,137,534 | 1,235,258 | ||
Goodwill | 561,039 | 582,739 | ||
Intercompany notes and accounts receivable and investment in subsidiaries | 0 | 0 | ||
Other assets | 69,827 | 70,971 | ||
TOTAL ASSETS | 2,289,778 | 2,322,763 | $ 2,445,108 | |
LIABILITIES AND EQUITY | ||||
Current liabilities | 157,939 | 241,858 | ||
Long-term debt | 961,080 | 737,691 | ||
Intercompany notes and accounts payable | 0 | 0 | ||
Deferred tax liabilities | 178,263 | 228,394 | ||
Other Liabilities Noncurrent Other | 55,598 | 56,757 | ||
Equity | 936,898 | 1,058,063 | $ 1,188,666 | $ 1,251,093 |
TOTAL LIABILITIES AND EQUITY | 2,289,778 | 2,322,763 | ||
Parent Company | ||||
ASSETS | ||||
Current assets | 213,786 | 39,020 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intercompany notes and accounts receivable and investment in subsidiaries | 3,047,124 | 3,170,874 | ||
Other assets | 0 | 0 | ||
TOTAL ASSETS | 3,260,910 | 3,209,894 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities | 21,018 | 22,046 | ||
Long-term debt | 961,080 | 737,691 | ||
Intercompany notes and accounts payable | 1,162,648 | 1,162,648 | ||
Deferred tax liabilities | 178,008 | 228,199 | ||
Other Liabilities Noncurrent Other | 1,276 | 1,264 | ||
Equity | 936,880 | 1,058,046 | ||
TOTAL LIABILITIES AND EQUITY | 3,260,910 | 3,209,894 | ||
Guarantor Subsidiaries | ||||
ASSETS | ||||
Current assets | 262,473 | 341,188 | ||
Property and equipment, net | 1,059,966 | 1,128,776 | ||
Goodwill | 556,658 | 578,358 | ||
Intercompany notes and accounts receivable and investment in subsidiaries | 1,228,949 | 1,426,160 | ||
Other assets | 51,928 | 56,664 | ||
TOTAL ASSETS | 3,159,974 | 3,531,146 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities | 115,315 | 192,079 | ||
Long-term debt | 0 | 0 | ||
Intercompany notes and accounts payable | 2,710,438 | 2,696,051 | ||
Deferred tax liabilities | 398 | 398 | ||
Other Liabilities Noncurrent Other | 54,186 | 55,182 | ||
Equity | 279,637 | 587,436 | ||
TOTAL LIABILITIES AND EQUITY | 3,159,974 | 3,531,146 | ||
Non-Guarantor Subsidiaries | ||||
ASSETS | ||||
Current assets | 45,119 | 53,587 | ||
Property and equipment, net | 77,568 | 106,482 | ||
Goodwill | 4,381 | 4,381 | ||
Intercompany notes and accounts receivable and investment in subsidiaries | 49,976 | 42,352 | ||
Other assets | 17,899 | 14,307 | ||
TOTAL ASSETS | 194,943 | 221,109 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities | 21,606 | 27,733 | ||
Long-term debt | 0 | 0 | ||
Intercompany notes and accounts payable | 131,150 | 123,810 | ||
Deferred tax liabilities | (143) | (134) | ||
Other Liabilities Noncurrent Other | 136 | 311 | ||
Equity | 42,194 | 69,389 | ||
TOTAL LIABILITIES AND EQUITY | 194,943 | 221,109 | ||
Eliminations | ||||
ASSETS | ||||
Current assets | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intercompany notes and accounts receivable and investment in subsidiaries | (4,326,049) | (4,639,386) | ||
Other assets | 0 | 0 | ||
TOTAL ASSETS | (4,326,049) | (4,639,386) | ||
LIABILITIES AND EQUITY | ||||
Current liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Intercompany notes and accounts payable | (4,004,236) | (3,982,509) | ||
Deferred tax liabilities | 0 | (69) | ||
Other Liabilities Noncurrent Other | 0 | 0 | ||
Equity | (321,813) | (656,808) | ||
TOTAL LIABILITIES AND EQUITY | $ (4,326,049) | $ (4,639,386) |
CONDENSED CONSOLIDATING FINAN62
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Unaudited Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||||
REVENUES | $ 197,496 | $ 350,595 | $ 465,295 | $ 706,736 |
Direct operating expense | 158,841 | 262,883 | 363,371 | 521,185 |
Depreciation and amortization expense | 45,896 | 52,184 | 93,107 | 103,279 |
General and administrative expense | 50,710 | 57,881 | 118,354 | 110,747 |
Impairment expense | 21,352 | 28,687 | 43,052 | 28,687 |
Operating loss | (79,303) | (51,040) | (152,589) | (57,162) |
Interest expense, net of amounts capitalized | 17,058 | 13,426 | 30,400 | 26,980 |
Other expense (income), net | (248) | (2,733) | 4,184 | (2,802) |
Loss before income taxes | (96,113) | (61,733) | (187,173) | (81,340) |
Income tax expense (benefit) | 30,734 | 9,537 | 62,118 | 17,245 |
Net loss | 65,379 | 52,196 | 125,055 | 64,095 |
Parent Company | ||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||||
REVENUES | 0 | 0 | 0 | 0 |
Direct operating expense | 0 | 0 | 0 | 0 |
Depreciation and amortization expense | 0 | 0 | 0 | 0 |
General and administrative expense | 186 | 242 | 407 | 478 |
Impairment expense | 0 | 0 | 0 | 0 |
Operating loss | (186) | (242) | (407) | (478) |
Interest expense, net of amounts capitalized | 17,058 | 13,402 | 30,400 | 26,954 |
Other expense (income), net | (582) | (618) | (900) | (1,289) |
Loss before income taxes | (16,662) | (13,026) | (29,907) | (26,143) |
Income tax expense (benefit) | 30,756 | 7,977 | 61,618 | 10,983 |
Net loss | (14,094) | 5,049 | (31,711) | 15,160 |
Guarantor Subsidiaries | ||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||||
REVENUES | 185,061 | 326,835 | 434,468 | 657,310 |
Direct operating expense | 148,714 | 245,267 | 338,340 | 481,925 |
Depreciation and amortization expense | 43,085 | 48,702 | 87,524 | 96,465 |
General and administrative expense | 48,159 | 55,459 | 113,794 | 105,007 |
Impairment expense | 0 | 0 | 21,700 | 0 |
Operating loss | (54,897) | (22,593) | (126,890) | (26,087) |
Interest expense, net of amounts capitalized | 0 | (1) | 0 | (1) |
Other expense (income), net | 445 | (572) | 4,486 | (1,296) |
Loss before income taxes | (55,342) | (22,020) | (131,376) | (24,790) |
Income tax expense (benefit) | (74) | 2,094 | 3 | 5,843 |
Net loss | 55,416 | 19,926 | 131,373 | 18,947 |
Non-Guarantor Subsidiaries | ||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||||
REVENUES | 15,118 | 30,272 | 38,069 | 63,553 |
Direct operating expense | 11,325 | 20,632 | 28,620 | 45,684 |
Depreciation and amortization expense | 2,811 | 3,482 | 5,583 | 6,814 |
General and administrative expense | 3,842 | 5,623 | 7,793 | 12,957 |
Impairment expense | 21,352 | 28,687 | 21,352 | 28,687 |
Operating loss | (24,212) | (28,152) | (25,279) | (30,589) |
Interest expense, net of amounts capitalized | 0 | 25 | 0 | 27 |
Other expense (income), net | (126) | (1,564) | 583 | (248) |
Loss before income taxes | (24,086) | (26,613) | (25,862) | (30,368) |
Income tax expense (benefit) | 52 | (534) | 497 | 419 |
Net loss | 24,034 | 27,147 | 25,365 | 29,949 |
Eliminations | ||||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | ||||
REVENUES | (2,683) | (6,512) | (7,242) | (14,127) |
Direct operating expense | (1,198) | (3,016) | (3,589) | (6,424) |
Depreciation and amortization expense | 0 | 0 | 0 | 0 |
General and administrative expense | (1,477) | (3,443) | (3,640) | (7,695) |
Impairment expense | 0 | 0 | 0 | 0 |
Operating loss | (8) | (53) | (13) | (8) |
Interest expense, net of amounts capitalized | 0 | 0 | 0 | 0 |
Other expense (income), net | 15 | 21 | 15 | 31 |
Loss before income taxes | (23) | (74) | (28) | (39) |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net loss | $ 23 | $ 74 | $ 28 | $ 39 |
CONDENSED CONSOLIDATING FINAN63
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Unaudited Statements Of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | ||||
Net cash provided by (used in) operating activities | $ (1,198) | $ 107,268 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | $ (13,680) | $ (40,904) | (32,675) | (69,429) |
Intercompany notes and accounts | 0 | 0 | ||
Other investing activities, net | 10,545 | 9,389 | ||
Net cash used in investing activities | (22,130) | (60,040) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repayments of long-term debt | 0 | (3,573) | ||
Proceeds from borrowings on revolving credit facility | 130,000 | 115,000 | ||
Repayments on revolving credit facility | (200,000) | (160,000) | ||
Payment of deferred financing costs | (11,072) | 0 | ||
Repurchases of common stock | (312) | (2,211) | ||
Intercompany notes and accounts | 0 | 0 | ||
Other financing activities, net | (2,950) | (1,221) | ||
Net cash provided by (used in) financing activities | 221,216 | (52,005) | ||
Proceeds from long-term debt | 305,550 | 0 | ||
Effect of changes in exchange rates on cash | 289 | (81) | ||
Net increase (decrease) in cash and cash equivalents | 198,177 | (4,858) | ||
Cash and cash equivalents, beginning of period | 27,304 | 28,306 | ||
Cash and cash equivalents, end of period | 225,481 | 23,448 | 225,481 | 23,448 |
Parent Company | ||||
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | ||||
Net cash provided by (used in) operating activities | 0 | 0 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | 0 | 0 | ||
Intercompany notes and accounts | 0 | 0 | ||
Other investing activities, net | 0 | 0 | ||
Net cash used in investing activities | 0 | 0 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repayments of long-term debt | (3,573) | |||
Proceeds from borrowings on revolving credit facility | 130,000 | 115,000 | ||
Repayments on revolving credit facility | (200,000) | (160,000) | ||
Payment of deferred financing costs | (11,072) | |||
Repurchases of common stock | (312) | (2,211) | ||
Intercompany notes and accounts | (41,993) | 41,350 | ||
Other financing activities, net | (2,950) | (1,221) | ||
Net cash provided by (used in) financing activities | 179,223 | (10,655) | ||
Proceeds from long-term debt | 305,550 | |||
Effect of changes in exchange rates on cash | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 179,223 | (10,655) | ||
Cash and cash equivalents, beginning of period | 19,949 | 23,115 | ||
Cash and cash equivalents, end of period | 199,172 | 12,460 | 199,172 | 12,460 |
Guarantor Subsidiaries | ||||
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | ||||
Net cash provided by (used in) operating activities | (6,317) | 100,170 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | (31,435) | (66,280) | ||
Intercompany notes and accounts | 41,993 | (41,350) | ||
Other investing activities, net | 10,545 | 9,389 | ||
Net cash used in investing activities | 21,103 | (98,241) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repayments of long-term debt | 0 | |||
Proceeds from borrowings on revolving credit facility | 0 | 0 | ||
Repayments on revolving credit facility | 0 | 0 | ||
Payment of deferred financing costs | 0 | |||
Repurchases of common stock | 0 | 0 | ||
Intercompany notes and accounts | 0 | 0 | ||
Other financing activities, net | 0 | 0 | ||
Net cash provided by (used in) financing activities | 0 | 0 | ||
Proceeds from long-term debt | 0 | |||
Effect of changes in exchange rates on cash | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 14,786 | 1,929 | ||
Cash and cash equivalents, beginning of period | 450 | 788 | ||
Cash and cash equivalents, end of period | 15,236 | 2,717 | 15,236 | 2,717 |
Non-Guarantor Subsidiaries | ||||
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | ||||
Net cash provided by (used in) operating activities | 5,119 | 7,098 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | (1,240) | (3,149) | ||
Intercompany notes and accounts | 0 | 0 | ||
Other investing activities, net | 0 | 0 | ||
Net cash used in investing activities | (1,240) | (3,149) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repayments of long-term debt | 0 | |||
Proceeds from borrowings on revolving credit facility | 0 | 0 | ||
Repayments on revolving credit facility | 0 | 0 | ||
Payment of deferred financing costs | 0 | |||
Repurchases of common stock | 0 | 0 | ||
Intercompany notes and accounts | 0 | 0 | ||
Other financing activities, net | 0 | 0 | ||
Net cash provided by (used in) financing activities | 0 | 0 | ||
Proceeds from long-term debt | 0 | |||
Effect of changes in exchange rates on cash | 289 | (81) | ||
Net increase (decrease) in cash and cash equivalents | 4,168 | 3,868 | ||
Cash and cash equivalents, beginning of period | 6,905 | 4,403 | ||
Cash and cash equivalents, end of period | 11,073 | 8,271 | 11,073 | 8,271 |
Eliminations | ||||
Schedule of Condensed Consolidating Statement of Cash Flows [Line Items] | ||||
Net cash provided by (used in) operating activities | 0 | 0 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | 0 | 0 | ||
Intercompany notes and accounts | (41,993) | 41,350 | ||
Other investing activities, net | 0 | 0 | ||
Net cash used in investing activities | (41,993) | 41,350 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repayments of long-term debt | 0 | |||
Proceeds from borrowings on revolving credit facility | 0 | 0 | ||
Repayments on revolving credit facility | 0 | 0 | ||
Payment of deferred financing costs | 0 | |||
Repurchases of common stock | 0 | 0 | ||
Intercompany notes and accounts | 41,993 | (41,350) | ||
Other financing activities, net | 0 | 0 | ||
Net cash provided by (used in) financing activities | 41,993 | (41,350) | ||
Proceeds from long-term debt | 0 | |||
Effect of changes in exchange rates on cash | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents, beginning of period | 0 | 0 | ||
Cash and cash equivalents, end of period | $ 0 | $ 0 | $ 0 | $ 0 |