Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | RPC INC | ||
Entity Central Index Key | 742,278 | ||
Trading Symbol | res | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-Known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 215,210,657 | ||
Entity Public Float | $ 814,644,000 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 116,262 | $ 91,050 |
Accounts receivable, net | 323,533 | 377,853 |
Inventories | 130,083 | 114,866 |
Income taxes receivable | 35,832 | 40,243 |
Prepaid expenses | 9,766 | 8,992 |
Other current assets | 3,462 | 7,131 |
Current assets | 618,938 | 640,135 |
Property, plant and equipment, net | 517,982 | 443,928 |
Goodwill | 32,150 | 32,150 |
Other assets | 30,510 | 31,011 |
Total assets | 1,199,580 | 1,147,224 |
LIABILITIES | ||
Accounts payable | 103,401 | 103,462 |
Accrued payroll and related expenses | 25,715 | 23,577 |
Accrued insurance expenses | 6,183 | 5,299 |
Accrued state, local and other taxes | 3,081 | 8,655 |
Income taxes payable | 4,706 | 3,224 |
Other accrued expenses | 151 | 1,143 |
Current liabilities | 143,237 | 145,360 |
Long-term accrued insurance expenses | 12,072 | 10,376 |
Long-term pension liabilities | 29,638 | 35,635 |
Deferred income taxes | 60,375 | 39,437 |
Other long-term liabilities | 3,839 | 4,719 |
Total liabilities | 249,161 | 235,527 |
Commitments and contingencies (Note 9) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.10 par value, 1,000,000 shares authorized, none issued | ||
Common stock, $0.10 par value, 349,000,000 shares authorized, 214,543,511 and 216,543,552 shares issued and outstanding in 2018 and 2017, respectively | 21,454 | 21,654 |
Capital in excess of par value | 0 | 0 |
Retained earnings | 947,711 | 906,745 |
Accumulated other comprehensive loss | (18,746) | (16,702) |
Total stockholders' equity | 950,419 | 911,697 |
Total liabilities and stockholders' equity | $ 1,199,580 | $ 1,147,224 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 349,000,000 | 349,000,000 |
Common stock, shares issued | 214,543,511 | 216,543,552 |
Common stock, shares outstanding | 214,543,511 | 216,543,552 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
REVENUES | $ 1,721,005 | $ 1,595,227 | $ 728,974 |
COSTS AND EXPENSES: | |||
Cost of revenues (exclusive of items shown separately below) | 1,183,048 | 1,050,809 | 607,888 |
Selling, general and administrative expenses | 168,151 | 159,194 | 150,690 |
Depreciation and amortization | 163,120 | 163,537 | 217,258 |
Gain on disposition of assets, net | (3,344) | (4,530) | (7,920) |
Operating profit (loss) | 210,030 | 226,217 | (238,942) |
Interest expense | (489) | (426) | (681) |
Interest income | 2,426 | 1,494 | 467 |
Other income (expense), net | 9,313 | 5,531 | (204) |
Income (loss) before income taxes | 221,280 | 232,816 | (239,360) |
Income tax provision (benefit) | 45,878 | 70,305 | (98,114) |
Net income (loss) | $ 175,402 | $ 162,511 | $ (141,246) |
EARNINGS (LOSS) PER SHARE | |||
Basic (in dollars per share) | $ 0.82 | $ 0.75 | $ (0.66) |
Diluted (in dollars per share) | 0.82 | 0.75 | (0.66) |
Dividends paid per share (in dollars per share) | $ 0.47 | $ 0.20 | $ 0.05 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Other Comprehensive Income [Abstract] | |||
NET INCOME (LOSS) | $ 175,402 | $ 162,511 | $ (141,246) |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES: | |||
Pension adjustment | (1,408) | 1,033 | (788) |
Foreign currency translation | (621) | 391 | 652 |
Unrealized (loss) gain on securities, net reclassification adjustments | (24) | 3 | |
COMPREHENSIVE INCOME (LOSS) | $ 173,373 | $ 163,911 | $ (141,379) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2015 | $ 21,699 | $ 948,551 | $ (17,969) | $ 952,281 | |
Balance (in shares) at Dec. 31, 2015 | 216,991,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued for stock incentive plans, net | $ 80 | $ 9,508 | 9,588 | ||
Stock issued for stock incentive plans, net (in shares) | 796,000 | ||||
Stock purchased and retired | $ (30) | (9,935) | 6,708 | (3,257) | |
Stock purchased and retired (in shares) | (298,000) | ||||
Net income (loss) | (141,246) | (141,246) | |||
Pension adjustment, net of taxes | (788) | (788) | |||
Foreign currency translation | 652 | 652 | |||
Unrealized gain (loss) on securities, net of taxes and reclassification adjustment | 3 | 3 | |||
Dividends declared | (10,861) | (10,861) | |||
Excess tax benefits for share- based payments | 427 | 427 | |||
Balance at Dec. 31, 2016 | $ 21,749 | 803,152 | (18,102) | 806,799 | |
Balance (in shares) at Dec. 31, 2016 | 217,489,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued for stock incentive plans, net | $ 42 | 11,048 | 11,090 | ||
Stock issued for stock incentive plans, net (in shares) | 420,000 | ||||
Stock purchased and retired | $ (137) | (11,048) | (15,599) | (26,784) | |
Stock purchased and retired (in shares) | (1,365,000) | ||||
Net income (loss) | 162,511 | 162,511 | |||
Pension adjustment, net of taxes | 1,033 | 1,033 | |||
Foreign currency translation | 391 | 391 | |||
Unrealized gain (loss) on securities, net of taxes and reclassification adjustment | (24) | (24) | |||
Dividends declared | (43,319) | (43,319) | |||
Balance at Dec. 31, 2017 | $ 21,654 | 906,745 | (16,702) | $ 911,697 | |
Balance (in shares) at Dec. 31, 2017 | 216,544,000 | 216,543,552 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued for stock incentive plans, net | $ 37 | 9,382 | $ 9,419 | ||
Stock issued for stock incentive plans, net (in shares) | 367,000 | ||||
Stock purchased and retired | $ (237) | $ (9,382) | (33,382) | (43,001) | |
Stock purchased and retired (in shares) | (2,367,000) | ||||
Net income (loss) | 175,402 | 175,402 | |||
Pension adjustment, net of taxes | (1,408) | (1,408) | |||
Foreign currency translation | (621) | (621) | |||
Dividends declared | 101,069 | 101,069 | |||
Balance at Dec. 31, 2018 | $ 21,454 | 947,711 | (18,746) | $ 950,419 | |
Balance (in shares) at Dec. 31, 2018 | 214,544,000 | 214,543,511 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adoption of accounting standard (Note 1) | $ 15 | $ (15) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | |||
Net income (loss) | $ 175,402 | $ 162,511 | $ (141,246) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation, amortization and other non-cash charges | 166,789 | 166,558 | 221,038 |
Stock-based compensation expense | 9,419 | 11,090 | 10,218 |
Gain on disposition of assets, net | (3,344) | (4,530) | (7,920) |
Gain due to insurance recovery | (9,646) | ||
Gain due to benefit plan financing arrangement | (1,020) | ||
Deferred income tax provision (benefit) | 21,395 | (42,609) | (34,209) |
Excess tax benefits for share-based payments | (427) | ||
(Increase) decrease in assets: | |||
Accounts receivable | 53,982 | (208,642) | 64,715 |
Income taxes receivable | 4,410 | 16,931 | (5,355) |
Inventories | (15,660) | (6,275) | 20,294 |
Prepaid expenses | (778) | (2,272) | 2,244 |
Other current assets | 3,375 | (1,222) | 2 |
Other non-current assets | 1,494 | (4,779) | (1,851) |
Increase (decrease) in liabilities: | |||
Accounts payable | (7,754) | 29,176 | (6,250) |
Income taxes payable | 1,482 | (1,705) | (2,710) |
Accrued payroll and related expenses | 2,193 | 11,408 | (4,540) |
Accrued insurance expenses | 884 | 1,200 | (197) |
Accrued state, local and other taxes | (5,574) | 5,561 | 256 |
Other accrued expenses | (994) | (5,335) | 5,017 |
Pension liabilities | (7,862) | 4,398 | (1,385) |
Long-term accrued insurance expenses | 1,696 | 839 | (1,811) |
Other long-term liabilities | (880) | 1,401 | (14,179) |
Net cash provided by operating activities | 389,009 | 133,704 | 101,704 |
INVESTING ACTIVITIES | |||
Capital expenditures | (242,610) | (117,509) | (33,938) |
Proceeds from sale of assets | 13,237 | 13,123 | 12,599 |
Proceeds from insurance recovery | 9,646 | ||
Proceeds from benefit plan refinancing arrangement | 2,218 | ||
Re-investment in benefit plan financing arrangement | (2,218) | ||
Net cash used for investing activities | (219,727) | (104,386) | (21,339) |
FINANCING ACTIVITIES | |||
Payment of dividends | (101,069) | (43,319) | (10,861) |
Debt issue costs for notes payable to banks | (35) | ||
Excess tax benefits for share-based payments | 427 | ||
Cash paid for common stock purchased and retired | (43,001) | (26,784) | (3,257) |
Net cash used for financing activities | (144,070) | (70,103) | (13,726) |
Net increase (decrease) in cash and cash equivalents | 25,212 | (40,785) | 66,639 |
Cash and cash equivalents at beginning of year | 91,050 | 131,835 | 65,196 |
Cash and cash equivalents at end of year | $ 116,262 | $ 91,050 | $ 131,835 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies | |
Significant Accounting Policies | Note 1: Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of RPC, Inc. and its wholly-owned subsidiaries (“RPC” or the “Company”). All significant intercompany accounts and transactions have been eliminated. Common Stock RPC is authorized to issue 349,000,000 shares of common stock, $0.10 par value. Holders of common stock are entitled to receive dividends when, as, and if declared by the Board of Directors out of legally available funds. Each share of common stock is entitled to one vote on all matters submitted to a vote of stockholders. Holders of common stock do not have cumulative voting rights. In the event of any liquidation, dissolution or winding up of the Company, holders of common stock are entitled to ratable distribution of the remaining assets available for distribution to stockholders. Preferred Stock RPC is authorized to issue up to 1,000,000 shares of preferred stock, $0.10 par value. As of December 31, 2018, there were no shares of preferred stock issued. The Board of Directors is authorized, subject to any limitations prescribed by law, to provide for the issuance of preferred stock as a class without series or, if so determined from time to time, in one or more series, and by filing a certificate pursuant to the applicable laws of the state of Delaware and to fix the designations, powers, preferences and rights, exchangeability for shares of any other class or classes of stock. Any preferred stock to be issued could rank prior to the common stock with respect to dividend rights and rights on liquidation. Dividends On January 22, 2019, the Board of Directors declared a regular quarterly cash dividend of $0.10 per share payable March 11, 2019 to common stockholders of record at the close of business on February 11, 2019. Subject to industry conditions and RPC’s earnings, financial condition, and other relevant factors, the Company expects to continue to pay regular quarterly cash dividends to common stockholders. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are used in the determination of the allowance for doubtful accounts, income taxes, accrued insurance expenses, depreciable lives of assets, and pension liabilities. Revenues RPC recognizes revenues from contracts with its customers based on the amount of consideration it receives in exchange for the services provided. See Note 2 for additional information. Concentration of Credit Risk Substantially all of the Company’s customers are engaged in the oil and gas industry. This concentration of customers may impact overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic and industry conditions. The Company provided oilfield services to several hundred customers during each of the last three years. There was no customer that accounted for more than 10 percent of the Company’s revenues in 2018, 2017 or 2016. Additionally, there was no customer that accounted for more than 10 percent of accounts receivable as of December 31, 2018 or 2017. Cash and Cash Equivalents Highly liquid investments with original maturities of three months or less when acquired are considered to be cash equivalents. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits. RPC maintains cash equivalents and investments in one or more large financial institutions, and RPC’s policy restricts investment in any securities rated less than “investment grade” by national rating services. Investments Investments classified as available-for-sale securities are stated at their fair values, with the unrealized gains and losses, net of tax, reported as a separate component of stockholders’ equity. The cost of securities sold is based on the specific identification method. Realized gains and losses, declines in value judged to be other than temporary, interest, and dividends with respect to available-for-sale securities are included in interest income. The Company realized no gains or losses on its available-for-sale securities during 2018 and 2017, and an immaterial realized loss during 2016. Securities that are held in the non-qualified Supplemental Executive Retirement Plan (“SERP”) are classified as trading. See Note 11 for further information regarding the SERP. The change in fair value of trading securities is presented as compensation cost in selling, general and administrative expenses on the consolidated statements of operations. Management determines the appropriate classification of investments at the time of purchase and re-evaluates such designations as of each balance sheet date. Accounts Receivable The majority of the Company’s accounts receivable is due principally from major and independent oil and natural gas exploration and production companies. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are considered past due after 60 days and are stated at amounts due from customers, net of an allowance for doubtful accounts. Allowance for Doubtful Accounts Accounts receivable are carried at the amounts due from customers, reduced by an allowance for estimated amounts that may not be collectible in the future. The estimated allowance for doubtful accounts is based on an evaluation of industry trends, financial condition of customers, historical write-off experience, current economic conditions, and in the case of international customers, judgments about the economic and political environment of the related country and region. Accounts are written off against the allowance for doubtful accounts when the Company determines that amounts are uncollectible and recoveries of previously written-off accounts are recorded when collected. Inventories Inventories, which consist principally of (i) raw materials and supplies that are consumed providing services to the Company’s customers, (ii) spare parts for equipment used in providing these services and (iii) components and attachments for manufactured equipment used in providing services, are recorded at the lower of cost and net realizable value. Cost is determined using first-in, first-out (“FIFO”) method or the weighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company regularly reviews inventory quantities on hand and records a write-down for excess or obsolete inventory based primarily on its estimated forecast of product demand, market conditions, production requirements and technological developments. Property, Plant and Equipment Property, plant and equipment, including software costs, are reported at cost less accumulated depreciation and amortization, which is provided on a straight-line basis over the estimated useful lives of the assets. Annual depreciation and amortization expenses are computed using the following useful lives: operating equipment, 3 to 20 years; buildings and leasehold improvements, 15 to 39 years or the life of the lease; furniture and fixtures, 5 to 7 years; software, 5 years; and vehicles, 3 to 5 years. The cost of assets retired or otherwise disposed of and the related accumulated depreciation and amortization are eliminated from the accounts in the year of disposal with the resulting gain or loss credited or charged to income from operations. Expenditures for additions, major renewals, and betterments are capitalized. Expenditures for restoring an identifiable asset to working condition or for maintaining the asset in good working order constitute repairs and maintenance and are expensed as incurred. RPC records impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The Company periodically reviews the values assigned to long-lived assets, such as property, plant and equipment, to determine if any impairments should be recognized. Management believes that the long-lived assets in the accompanying balance sheets have not been impaired. During 2016, RPC recorded immaterial write-downs on certain equipment to comply with the Company’s policy to store and maintain key equipment in an efficient manner. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets of businesses acquired. The carrying amount of goodwill by reportable segment was as follows: Years Ended December 31, 2018 2017 (in thousands) Technical Services $ 30,992 $ 30,992 Support Services 1,158 1,158 Goodwill $ 32,150 $ 32,150 Goodwill is reviewed annually, or more frequently, if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount, for impairment. In 2018 and 2017, the Company performed a quantitative impairment test by estimating the fair value of each of its reporting units using a discounted cash flow analysis based on management’s short-term and long-term forecast of operating results. The discounted cash flow analysis for each reporting unit includes assumptions regarding discount rates, revenue growth rates, expected profitability margins, forecasted capital expenditures, and the timing of expected future cash flows. Based on the analysis, the Company concluded that the fair value of its reporting units exceeded their carrying amount and therefore no impairment of goodwill occurred for the years ended December 31, 2018 and 2017. The Company completed a comprehensive qualitative assessment of the various factors that impact goodwill for the year ended December 31, 2016, and concluded it is more likely than not that the fair value of its reporting units exceeded their carrying amounts as of the annual test date and therefore no impairment of its goodwill occurred for the year ended December 31, 2016. Advertising Advertising expenses are charged to expense during the period in which they are incurred. Advertising expenses totaled $2,220,000 in 2018, $1,696,000 in 2017, and $1,296,000 in 2016. Insurance Expenses RPC self-insures, up to certain policy-specified limits, certain risks related to general liability, workers’ compensation, vehicle and equipment liability, and employee health insurance plan costs. The estimated cost of claims under these self-insurance programs is estimated and accrued as the claims are incurred (although actual settlement of the claims may not be made until future periods) and may subsequently be revised based on developments relating to such claims. The portion of these estimated outstanding claims expected to be paid more than one year in the future is classified as long-term accrued insurance expenses. Income Taxes Deferred tax liabilities and assets are determined based on the difference between the financial and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The newly enacted Tax Cuts and Jobs Act required the revaluation of our deferred tax assets and liabilities to reflect the change in Federal income tax rates from 35 percent to 21 percent. The Company’s net deferred tax liability as of December 31, 2018 has been reduced through a discrete income tax provision adjustment of $19.3 million related to this rate change. The Company establishes a valuation allowance against the carrying value of deferred tax assets when the Company determines that it is more likely than not that the asset will not be realized through future taxable income. Defined Benefit Pension Plan The Company has a defined benefit pension plan that provides monthly benefits upon retirement at age 65 to eligible employees with at least one year of service prior to 2002. In 2002, the Company’s Board of Directors approved a resolution to cease all future retirement benefit accruals under the defined benefit pension plan. See Note 11 for a full description of this plan and the related accounting and funding policies. Share Repurchases The Company records the cost of share repurchases in stockholders’ equity as a reduction to common stock to the extent of par value of the shares acquired and the remainder is allocated to capital in excess of par value and retained earnings if capital in excess of par value is depleted. The Company tracks capital in excess of par value on a cumulative basis for each reporting period, discloses the excess over capital in excess of par value as part of stock purchased and retired in the consolidated statements of stockholders’ equity. Earnings per Share Basic and diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. In addition, the Company has periodically issued share-based payment awards that contain non-forfeitable rights to dividends and are therefore considered participating securities. See Note 11 for further information on restricted stock granted to employees. Restricted shares of common stock (participating securities) outstanding and a reconciliation of weighted average shares outstanding is as follows: (In thousands except per share data ) 2018 2017 2016 Net income (loss) available for stockholders $ 175,402 $ 162,511 $ (141,246 ) Less: Adjustments for losses attributable to participating securities (1,839 ) (2,102 ) (147 ) Net income (loss) used in calculating per share amounts $ 173,563 $ 160,409 $ (141,393 ) Weighted average shares outstanding (including participating securities) 215,198 217,194 217,509 Adjustment for participating securities (2,453 ) (2,891 ) (3,282 ) Shares used in calculating basic and diluted earnings (loss) per share 212,745 214,303 214,227 Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, investments, accounts payable, and debt. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of such instruments. The Company’s investments are classified as available-for-sale securities with the exception of investments held in the non-qualified Supplemental Executive Retirement Plan (“SERP”) which are classified as trading securities. All of these securities are carried at fair value in the accompanying consolidated balance sheets. See Note 9 for additional information. Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payment awards, net estimated forfeitures. Thus, compensation cost is amortized for those shares expected to vest on a straight-line basis over the requisite service period of the award. See Note 11 for additional information. Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued the following applicable Accounting Standards Updates (ASU): Recently Adopted Accounting Standards: Accounting Standards Update (ASU) No. 2014-09, Revenue from Contacts with Customers (Topic 606): ASC 606, Revenue from Contracts with Customers ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. Recently Issued Accounting Standards Not Yet Adopted: To be adopted in 2019: ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Leases (Topic 842). To be adopted in 2020 and later: ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Note 2: Revenues Accounting Policy RPC’s contract revenues are generated principally from providing oilfield services. These services are based on mutually agreed upon pricing with the customer prior to the services being delivered and, given the nature of the services, do not include the right of return. Pricing for these services is a function of rates based on the nature of the specific job, with consideration for the extent of equipment, labor, and consumables needed for the job. RPC typically satisfies its performance obligations over time as the services are performed. RPC records revenues based on the transaction price agreed upon with its customers. Sales tax charged to customers is presented on a net basis within the consolidated statements of operations and therefore excluded from revenues. Nature of services RPC provides a broad range of specialized oilfield services to independent and major oil and gas companies engaged in the exploration, production and development of oil gas properties throughout the United States and in selected international markets. RPC manages its business as either (1) services offered on the well site with equipment and personnel (Technical Services) or (2) services and tools offered off the well site (Support Services). For more detailed information about operating segments, see Note 13. RPC contracts with its customers to provide the following services by reportable segment: Technical Services · Includes pressure pumping, downhole tools services, coiled tubing, nitrogen, snubbing and other oilfield related services including wireline, well control, fishing and pump down services. Support Services · Rental tools – RPC rents tools to its customers for use with onshore and offshore oil and gas well drilling, completion and workover activities. · Other support services include oilfield pipe inspection services, pipe management and pipe storage; well control training and consulting. Our contracts with customers are generally very short-term in nature and generally consist of a single performance obligation – the provision of oil field services. Payment terms RPC’s contracts with the customer states the final terms of the sales, including the description, quantity, and price of each service to be delivered. The Company’s contracts are generally short-term in nature and in most situations, RPC provides services ahead of payment - i.e., RPC has fulfilled the performance obligation prior to submitting a customer invoice. RPC invoices the customer upon completion of the specified services and collection generally occurs between 30 to 60 days after invoicing. As the Company enters into contracts with its customers, it generally expects there to be no significant timing difference between the date the services are provided to the customer (satisfaction of the performance obligation) and the date cash consideration is received. Accordingly, there is no financing component to our arrangements with customers. Significant judgments RPC believes the output method is a reasonable measure of progress for the satisfaction of our performance obligations, which are satisfied over time, as it provides a faithful depiction of (1) our performance toward complete satisfaction of the performance obligation under the contract and (2) the value transferred to the customer of the services performed under the contract. RPC has elected the right to invoice practical expedient for recognizing revenue related to its performance obligations. Disaggregation of revenues See Note 13 for disaggregation of revenue by operating segment and services offered in each of them and by geographic regions. Timing of revenue recognition for each of the periods presented is shown below: (in thousands) 2018 2017 2016 Oil field services transferred at a point in time $ - $ - $ - Oil field services transferred over time 1,721,005 1,595,227 728,974 Total revenues $ 1,721,005 $ 1,595,227 $ 728,974 Contract balances Contract assets representing the Company’s rights to consideration for work completed but not billed are included in Accounts receivable, net on the Consolidated Balance Sheets are shown below: (in thousands) 2018 2017 Unbilled trade receivables $ 56,408 $ 68,494 Substantially all of the unbilled trade receivables as of December 31, 2018 and December 31, 2017 were invoiced during the following quarter. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Receivable | |
Accounts Receivable | Note 3: Accounts Receivable Accounts receivable, net consists of the following: December 31, 2018 2017 (in thousands) Trade receivables: Billed $ 266,660 $ 296,588 Unbilled 56,408 68,494 Other receivables 5,278 17,242 Total 328,346 382,324 Less: allowance for doubtful accounts (4,813 ) (4,471 ) Accounts receivable, net $ 323,533 $ 377,853 Trade receivables relate to revenues generated from equipment and services, for which credit is extended based on our evaluation of the customer’s credit worthiness. Unbilled receivables represent revenues earned but not billed to the customer until future dates, usually within one month. Other receivables consists primarily of net amounts receivable from an agent, that operates internationally, as well as amounts due from the favorable resolution of state tax audits and rebates due from suppliers. Changes in the Company’s allowance for doubtful accounts are as follows: Years Ended December 31, 2018 2017 (in thousands) Beginning balance $ 4,471 $ 2,553 Bad debt expense 588 1,441 Accounts written-off (260 ) (105 ) Recoveries 14 582 Ending balance $ 4,813 $ 4,471 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventories | |
Inventories | Note 4: Inventories Inventories are $130,083,000 at December 31, 2018 and $114,866,000 at December 31, 2017 and consist of raw materials, parts and supplies. The reserve for obsolete and slow moving inventory is $10,168,000 at December 31, 2018 and $3,875,000 at December 31, 2017. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 5: Property, Plant and Equipment Property, plant and equipment are presented at cost net of accumulated depreciation and consist of the following: December 31, 2018 2017 (in thousands) Land $ 21,159 $ 19,991 Buildings and leasehold improvements 140,269 138,072 Operating equipment 1,429,906 1,419,670 Computer software 24,619 23,017 Furniture and fixtures 7,606 7,656 Vehicles 528,250 494,833 Gross property, plant and equipment 2,151,809 2,103,239 Less: accumulated depreciation (1,633,827 ) (1,659,311 ) Net property, plant and equipment $ 517,982 $ 443,928 Depreciation expense was $166.2 million in 2018, $166.9 million in 2017, and $220.6 million in 2016, and includes amounts recorded as costs of revenues. There were no capital leases outstanding as of December 31, 2018 and December 31, 2017. The Company had accounts payable for purchases of property and equipment of $14.8 million as of December 31, 2018, $7.1 million as of December 31, 2017, and $3.4 million as of December 31, 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Income Taxes | Note 6: Income Taxes The Tax Cuts and Jobs Act (“the Act”) effective January 1, 2018, included a reduction to the US federal tax rate from 35 percent to 21 percent, a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, adjustment of deferred tax assets and liabilities for the new corporate tax rate, and adjustments to deductible compensation of our executive officers. The Act also imposes a new tax on foreign earnings and profits in excess of a deemed return on tangible assets of foreign subsidiaries referred to as Global Low Taxed Intangible Income (“GILTI”), a new tax on certain payments between a U.S. corporation and its foreign subsidiaries referred to as Base Erosion and Anti-Abuse Minimum Tax (“BEAT”), and a tax deduction on certain qualifying income related to export sales of property or services referred to as Foreign Derived Intangible Income (“FDII”). The Company applied the guidance in SAB 118 when accounting for the enactment-date effects of the Act in 2017 and throughout 2018. In 2017, the Company recorded a discrete tax benefit of $19.3 million related to the enactment-date effects of the Act that included adjustments to the Company’s net deferred tax liabilities. In 2018, the Company adjusted the enactment-date provisional amounts by decreasing tax expense by an additional $5.1 million, recorded as a discrete tax benefit. These adjustments were recorded as components of income tax expense from continuing operations. As of December 31, 2018, the Company has completed its accounting for all of the enactment-date income tax effects of the Act. Discussion of specific provisions of the Act follows: One-time transition tax The one-time transition tax is based on the Company’s total post-1986 foreign earnings and profits (E&P), a tax that was previously deferred until repatriation of those earnings and profits. At December 31, 2017, the Company estimated the one-time transitional tax to be not material and no provision was included as a component of tax expense in 2017. Based on further analysis of the Act, and notices and regulations issued by the US Department of the Treasury and the Internal Revenue Service, the Company concluded that the tax impact of the Act from un-repatriated earnings and profits of our foreign subsidiaries was not material. Executive compensation arrangements As of December 31, 2017, we evaluated the deductibility of our executive compensation arrangements and the related impacts on both current and deferred taxes based on the guidance that was available at that time. At December 31, 2017, we recorded tax expense related to executive compensation of approximately $1.3 million. During 2018, with additional guidance from the US Department of Treasury and the Internal Revenue Service, we refined our calculations, and reduced our 2017 provisional expense by approximately $0.5 million. GILTI Our analysis at December 31, 2017, related to GILTI was incomplete, and therefore did not record a GILTI-related adjustment. Under FASB guidance, the Company elected to treat tax related to GILTI as a period expense rather than create a deferred tax for the temporary differences that are expected to reverse in future years. As of December 31, 2018, the impact of the Act on the Company related to Global Low Taxed Intangible Income was not material. BEAT The Company has analyzed the Act’s provisions related to Base Erosion and Profit Shifting, and has determined the impact to our financial statements to be not material. No provision was included as a component of tax expense in either 2017 or 2018. In summary, due to the complexity of the FDII, GILTI, and BEAT provisions of the Act, the Company is continuing to evaluate their impact in 2018. At this time, the Company has incorporated its best estimate for each of these provisions within the annual effective tax rate for 2018. The Company will continue to monitor developments as new information becomes available with respect to each of FDII, GILTI or BEAT and anticipates refining the calculations in connection with the filing of its 2018 US federal income tax return. The following table lists the components of the provision (benefit) for income taxes: Years ended December 31, 2018 2017 2016 (in thousands) Current provision (benefit): Federal $ 13,708 $ 95,995 $ (43,993 ) State 3,932 13,966 (24,479 ) Foreign 6,843 2,953 4,567 Deferred provision (benefit): Federal 23,203 (39,710 ) (31,505 ) State (1,808 ) (2,899 ) (2,704 ) Total income tax provision (benefit) $ 45,878 $ 70,305 $ (98,114 ) Reconciliation between the federal statutory rate and RPC’s effective tax rate is as follows: Years ended December 31, 2018 2017 2016 Federal statutory rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 2.6 1.9 1.3 Tax credits (0.1 ) (0.7 ) 0.1 Non-deductible expenses 1.8 2.0 (0.7 ) Change in contingencies — — 6.6 Adjustments related to the Act (2.3 ) (8.3 ) — Adjustments related to vesting of restricted stock (0.8 ) (1.2 ) — Other (1.5 ) 1.5 (1.3 ) Effective tax rate 20.7 % 30.2 % 41.0 % Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2018 2017 (in thousands) Deferred tax assets: Self-insurance $ 5,055 $ 4,660 Pension 7,261 8,730 State net operating loss carryforwards 1,663 4,048 Bad debt 1,291 1,149 Accrued payroll 1,416 1,117 Stock-based compensation 3,501 3,612 Foreign tax credits — 3,592 All others 3,166 1,681 Valuation allowance (445 ) (3,994 ) Gross deferred tax assets 22,908 24,595 Deferred tax liabilities: Depreciation (71,647 ) (53,119 ) Goodwill amortization (6,587 ) (6,450 ) Basis differences in consolidated limited liability company (4,636 ) (4,102 ) Basis differences in joint ventures (408 ) (355 ) All others (5 ) (6 ) Gross deferred tax liabilities (83,283 ) (64,032 ) Net deferred tax liabilities $ (60,375 ) $ (39,437 ) The Company's current intention is to permanently reinvest funds held in our foreign subsidiaries outside of the U.S., with the possible exception of repatriation of funds that have been previously subject to U.S. federal and state taxation or when it would be tax effective through the utilization of foreign tax credits, or would otherwise create no additional U.S. tax cost. As of December 31, 2018, the Company has net operating loss carryforwards related to state income taxes of $27.6 million (gross) that will expire between 2019 and 2035. As of December 31, 2018, the Company has a valuation allowance of $390 thousand, representing the tax-affected amount of loss carryforwards that the Company does not expect to utilize, against the corresponding deferred tax asset. Additionally, as of December 31, 2018, the Company has capital loss carryforwards of $56 thousand that are not expected to be utilized, and have a full valuation allowance against the corresponding deferred tax assets. Total net income tax payments (refunds) were $18.0 million in 2018, $98.0 million in 2017, and $(42.4) million in 2016. The Company and its subsidiaries are subject to U.S. federal and state income taxes in multiple jurisdictions. In many cases, our uncertain tax positions are related to tax years that remain open and subject to examination by the relevant taxing authorities. In general, the Company’s 2015 through 2018 tax years remain open to examination. Additional years may be open to the extent attributes are being carried forward to an open year. In March 2017, the Internal Revenue Service (IRS) initiated an examination of the Company’s Federal Income Tax Returns for the years 2013 through 2016. The IRS concluded it examinations, without adjustment, in the fourth quarter 2018. As of December 31, 2018 and 2017, our liability for unrecognized tax benefits related primarily to state income taxes did not change and remained at $2,215,000, and is recognized as a component of other long-term liabilities in the accompanying consolidated balance sheet. The liability, if recognized, would affect our effective rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2018 2017 Balance at January 1 $ 2,215,000 $ 2,215,000 Additions based on tax positions related to the current year — — Additions for tax positions of prior years — — Reductions for tax positions of prior years — — Balance at December 31 $ 2,215,000 $ 2,215,000 The Company’s policy is to record interest and penalties related to income tax matters as income tax expense. Accrued interest and penalties as of December 31, 2018 and 2017 were $263 thousand and $193 thousand, respectively. It is reasonably possible that the amount of the unrecognized tax benefits with respect to our unrecognized tax positions will increase or decrease in the next 12 months. These changes may result from, among other things, state tax settlements under voluntary disclosure agreements, or conclusions of ongoing examinations or reviews. However, quantification of an estimated range cannot be made at this time. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Long-Term Debt | |
Long-Term Debt | Note 7: Long-Term Debt The Company has a revolving credit facility with Bank of America and five other lenders which provides for a line of credit of up to $125 million, including a $35 million letter of credit subfacility, and a $35 million swingline subfacility. The revolving credit facility contains customary terms and conditions, including restrictions on indebtedness, dividend payments, business combinations and other related items. The revolving credit facility includes a full and unconditional guarantee by the Company's 100 percent owned domestic subsidiaries whose assets equal substantially all of the consolidated assets of the Company and its subsidiaries. Certain of the Company’s minor subsidiaries are not guarantors. On July 26, 2018, the Company entered into Amendment No. 4 to Credit Agreement (the “Amendment”). The Amendment, among other matters, replaces the existing minimum tangible net worth covenant with the following covenants: (i) when RPC’s trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million, a maximum consolidated leverage ratio of 2.50:1.00 and a minimum debt service coverage ratio of 2.00:1.00, and (ii) otherwise, a minimum tangible net worth covenant of no less than $600 million. The Amendment additionally (1) extends the Credit Agreement maturity date from January 17, 2019 to July 26, 2023, (2) eliminates any borrowing base limitations on revolving loans when RPC’s trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million, (3) reduces the commitment fees payable by RPC by 7.5 basis points at each pricing level and (4) reduces the letter of credit sublimit from $50 million to $35 million. As of December 31, 2018, the Company was in compliance with these covenants. Revolving loans under the amended revolving credit facility bear interest at one of the following two rates at the Company’s election: · The Eurodollar Rate, which is the rate per annum equal to the London Interbank Offering Rate (“LIBOR”); plus, a margin ranging from 1.125% to 2.125%, based on a quarterly consolidated leverage ratio calculation; or · the Base Rate, which is a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 0.50%, (b) Bank of America’s publicly announced “prime rate,” and (c) the Eurodollar Rate plus 1.00%; in each case plus a margin that ranges from 0.125% to 1.125% based on a quarterly consolidated leverage ratio calculation. In addition, the Company pays an annual fee ranging from 0.15% to 0.25%, based on a quarterly consolidated leverage ratio calculation, on the unused portion of the credit facility. The Company has incurred total loan origination fees and other debt related costs associated with this revolving credit facility in the aggregate of approximately $3.3 million. These costs are being amortized to interest expense over the remaining term of the loan, and the remaining net balance of $0.3 million at December 31, 2018 is classified as part of non-current other assets. As of December 31, 2018, RPC had no outstanding borrowings under the revolving credit facility, and letters of credit outstanding relating to self-insurance programs and contract bids totaled $19.5 million; therefore, a total of $105.5 million of the facility was available. Interest incurred, which includes facility fees on the unused portion of the revolving credit facility and the amortization of loan cost, and interest paid on the credit facility were as follows for the periods indicated: Years Ended December 31, 2018 2017 2016 (in thousands) Interest incurred $ 390 $ 415 $ 449 Interest paid $ 241 $ 181 $ 284 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive (Loss) Income | |
Accumulated Other Comprehensive (Loss) Income | Note 8: Accumulated Other Comprehensive (Loss) Income Accumulated other comprehensive (loss) income consists of the following (in thousands): Pension Unrealized Foreign Total Balance at December 31, 2016 $ (15,503 ) $ 39 $ (2,638 ) $ (18,102 ) Change during 2017: Before-tax amount 776 (38 ) 391 1,129 Tax (expense) benefit (283 ) 14 — (269 ) Reclassification adjustment, net of taxes: Realized loss on securities — — — — Amortization of net loss (1) 540 — — 540 Total activity in 2017 1,033 (24 ) 391 1,400 Balance at December 31, 2017 $ (14,470 ) $ 15 $ (2,247 ) $ (16,702 ) Change during 2018: Before-tax amount (2,712 ) (15 ) (621 ) (3,348 ) Tax (expense) benefit 665 — — 665 Reclassification adjustment, net of taxes: Realized loss on securities — — — — Amortization of net loss (1) 639 — — 639 Total activity in 2018 (1,408 ) (15 ) (621 ) (2,044 ) Balance at December 31, 2018 $ (15,878 ) $ — $ (2,868 ) $ (18,746 ) (1) Reported as part of selling, general and administrative expenses. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures | |
Fair Value Disclosures | Note 9: Fair Value Disclosures The various inputs used to measure assets at fair value establish a hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three broad levels as follows: 1. Level 1 – Quoted market prices in active markets for identical assets or liabilities. 2. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. 3. Level 3 – Unobservable inputs developed using the Company’s estimates and assumptions, which reflect those that market participants would use. The following table summarizes the valuation of financial instruments measured at fair value on a recurring basis on the balance sheet as of December 31, 2018 and 2017: Fair Value Measurements at December 31, 2018 with: (in thousands) Total Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) Assets: Available-for-sale securities – equity securities $ 211 $ 211 $ — $ — Investments measured at net asset value - trading securities $ 22,815 Fair Value Measurements at December 31, 2017 with: (in thousands) Total Quoted prices in Significant observable Significant unobservable (Level 1) (Level 2) (Level 3) Assets: Available-for-sale securities – equity securities $ 270 $ 270 $ — $ — Investments measured at net asset value - trading securities $ 23,463 The Company determines the fair value of marketable securities classified as available-for-sale through quoted market prices. The total fair value is the final closing price, as defined by the exchange in which the asset is actively traded, on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. Marketable securities classified as trading are comprised of the SERP assets, as described in Note 11, and are recorded primarily at their net cash surrender values, calculated using their net asset values, which approximates fair value, as provided by the issuing insurance company. Significant observable inputs, in addition to quoted market prices, were used to value the trading securities. The Company’s policy is to recognize transfers between levels at the beginning of quarterly reporting periods. For the year ended December 31, 2018 there were no significant transfers in or out of levels 1, 2 or 3. Under the Company’s revolving credit facility, there was no balance outstanding at December 31, 2018 and 2017. Outstanding balances based on the quote from the lender (level 2 inputs) is similar to the fair value as of the same date. The borrowings under our revolving credit facility bear variable interest rates as described in Note 7. The Company is subject to interest rate risk on the variable component of the interest rate. The carrying amounts of other financial instruments reported in the balance sheet for current assets and current liabilities approximate their fair values because of the short maturity of these instruments. The Company currently does not use the fair value option to measure any of its existing financial instruments and has not determined whether or not it will elect this option for financial instruments it may acquire in the future. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure | |
Commitments and Contingencies | Note 10: Commitments and Contingencies Lease Commitments - (in thousands) 2019 $ 11,819 2020 10,651 2021 7,758 2022 5,618 2023 2,929 Thereafter 6,170 Total rental commitments $ 44,945 Total rental expense, including short-term rentals, charged to operations was $21,576,000 in 2018, $17,112,000 in 2017, and $15,723,000 in 2016. Income Taxes - Sales and Use Taxes - Litigation |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 11: Employee Benefit Plans Defined Benefit Pension Plan The Company’s Retirement Income Plan, a trusteed defined benefit pension plan, provides monthly benefits upon retirement at age 65 to substantially all employees with at least one year of service prior to 2002. During 2001, the plan became a multiple employer plan, with Marine Products Corporation as an adopting employer. The Company’s projected benefit obligation exceeds the fair value of the plan assets under its pension plan by $5.1 million and thus the plan was under-funded as of December 31, 2018. The following table sets forth the funded status of the Retirement Income Plan and the amounts recognized in RPC’s consolidated balance sheets: December 31, 2018 2017 (in thousands) Accumulated benefit obligation at end of year $ 43,417 $ 46,397 CHANGE IN PROJECTED BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 46,397 $ 44,315 Service cost — — Interest cost 1,832 1,932 Amendments — — Actuarial loss (2,658 ) 2,206 Benefits paid (2,154 ) (2,056 ) Projected benefit obligation at end of year $ 43,417 $ 46,397 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 38,050 $ 34,745 Actual return on plan assets (2,532 ) 5,361 Employer contribution 5,000 — Benefits paid (2,154 ) (2,056 ) Fair value of plan assets at end of year $ 38,364 $ 38,050 Funded status at end of year $ (5,053 ) $ (8,347 ) December 31, 2018 2017 (in thousands) AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) CONSIST OF: Net loss $ 24,650 $ 22,762 Prior service cost (credit) — — Net transition obligation (asset) — — $ 24,650 $ 22,762 The accumulated benefit obligation for the Retirement Income Plan at December 31, 2018 and 2017 has been disclosed above. The Company uses a December 31 measurement date for this qualified plan. Amounts recognized in the consolidated balance sheets consist of: December 31, 2018 2017 (in thousands) Funded status of the Retirement Income Plan $ (5,053 ) $ (8,347 ) SERP liability (24,585 ) (27,288 ) Long-term pension liabilities $ (29,638 ) $ (35,635 ) RPC’s funding policy is to contribute to the defined benefit pension plan the amount required, if any, under the Employee Retirement Income Security Act of 1974. Amounts contributed to the plan totaled $5.0 million in 2018 and no contributions were made in 2017. The components of net periodic benefit cost of the Retirement Income Plan are summarized as follows: Years ended December 31, 2018 2017 2016 (in thousands) Service cost for benefits earned during the period $ — $ — $ — Interest cost on projected benefit obligation 1,832 1,932 2,006 Expected return on plan assets (2,837 ) (2,356 ) (2,131 ) Amortization of net loss 824 851 799 Net periodic benefit plan cost $ (181 ) $ 427 $ 674 The Company recognized pre-tax (increases) decreases to the funded status in accumulated other comprehensive loss of $1,888,000 in 2018, $(1,650,000) in 2017, and $1,240,000 in 2016. There were no previously unrecognized prior service costs as of December 31, 2018, 2017 and 2016. The pre-tax amounts recognized in accumulated other comprehensive loss for the years ended December 31, 2018, 2017 and 2016 are summarized as follows: (in thousands) 2018 2017 2016 Net (gain) loss $ 2,712 $ (799 ) $ 2,039 Amortization of net loss (824 ) (851 ) (799 ) Net transition obligation (asset) — — — Amount recognized in accumulated other comprehensive loss $ 1,888 $ (1,650 ) $ 1,240 The amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in 2019 are as follows: (in thousands) 2019 Amortization of net loss $ 897 Prior service cost (credit) — Net transition obligation (asset) — Estimated net periodic benefit plan cost $ 897 The weighted average assumptions as of December 31 used to determine the projected benefit obligation and net benefit cost were as follows: December 31, 2018 2017 2016 Projected Benefit Obligation: Discount rate 4.65 % 4.00 % 4.45 % Rate of compensation increase N/A N/A N/A Net Benefit Cost: Discount rate 4.00 % 4.45 % 4.70 % Expected return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase N/A N/A N/A The Company’s expected return on assets assumption is derived from a detailed periodic assessment conducted by its management and its investment advisor. It includes a review of anticipated future long-term performance of individual asset classes and consideration of the appropriate asset allocation strategy given the anticipated requirements of the plan to determine the average rate of earnings expected on the funds invested to provide for the pension plan benefits. While the study gives appropriate consideration to recent fund performance and historical returns, the rate of return assumption is derived primarily from a long-term, prospective view. Based on its recent assessment, the Company has concluded that its expected long-term return assumption of seven percent is reasonable. The plan’s weighted average asset allocation at December 31, 2018 and 2017 by asset category along with the target allocation for 2019 are as follows: Target Allocation Percentage of Plan Assets December 31, 2019 2018 2017 Asset Category Cash and cash equivalents 0% - 3% 3.0 % 2.8 % Fixed income securities 15% - 100% 29.1 % 20.7 % Domestic equity securities 0% - 40% 39.5 % 23.8 % International equity securities 0% - 30% 19.0 % 42.4 % Investments measured at net asset value 0% - 12% 9.4 % 10.3 % Total 100.0 % 100.0 % The Company’s overall investment strategy is to achieve a mix of approximately 70 percent of investments for long-term growth and 30 percent for near-term benefit payments, with a wide diversification of asset types, fund strategies and fund managers. Equity securities primarily include investments in large-cap and small-cap companies domiciled domestically and internationally. Fixed-income securities include corporate bonds, mortgage-backed securities, sovereign bonds, and U.S. Treasuries. Other types of investments include real estate funds and private equity funds that follow several different investment strategies. For each of the asset categories in the pension plan, the investment strategy is identical – maximize the long-term rate of return on plan assets with an acceptable level of risk in order to minimize the cost of providing pension benefits. The investment policy establishes a target allocation for each asset class which is rebalanced as required. The plan utilizes a number of investment approaches, including but not limited to individual market securities, equity and fixed income funds in which the underlying securities are marketable, and debt funds to achieve this target allocation. Although not required, Company management will evaluate contributing to the pension plan during 2019. Some of our assets, primarily our private equity and real estate funds, do not have readily determinable market values given the specific investment structures involved and the nature of the underlying investments. For plan asset reporting as of December 31, 2018, publicly traded asset pricing was used where possible. For assets without readily determinable values, estimates were derived from investment manager statements combined with discussions focusing on underlying fundamentals and significant events. Additionally, these investments are valued based on the net asset value per share calculated by the funds in which the plan has invested and the valuation is based on significant non-observable inputs which do not have a readily determinable fair value. The valuations are subject to judgments and assumptions of the funds which may prove to be incorrect, resulting in risks of incorrect valuation of these investments. The Company seeks to mitigate these risks by evaluating the appropriateness of the funds’ judgments and assumptions by reviewing the financial data included in the funds’ financial statements for reasonableness. The following tables present our plan assets using the fair value hierarchy as of December 31, 2018 and 2017. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. See Note 9 for a brief description of the three levels under the fair value hierarchy. Fair Value Hierarchy as of December 31, 2018: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 1,140 $ 1,140 $ — Fixed Income Securities (2) 11,163 — 11,163 Domestic Equity Securities (3) 15,182 5,602 9,581 International Equity Securities (4) 7,279 — 7,279 Total Assets in the Fair Value Hierarchy $ 34,764 $ 6,742 $ 28,023 Investments measured at Net Asset Value 3,600 Investments at Fair Value $ 38,364 Fair Value Hierarchy as of December 31, 2017: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 1,084 $ 1,084 $ — Fixed Income Securities (2) 9,064 — 9,064 Domestic Equity Securities (3) 16,103 5,930 10,173 International Equity Securities (4) 7,889 — 7,889 Total Assets in the Fair Value Hierarchy $ 34,140 $ 7,014 $ 27,126 Investments measured at Net Asset Value 3,910 Investments at Fair Value $ 38,050 (1) Cash and cash equivalents, which are used to pay benefits and plan administrative expenses, are held in Rule 2a-7 money market funds. (2) Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. (3) Domestic equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. (4) International equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. The Company estimates that the future benefits payable for the Retirement Income Plan over the next ten years are as follows: (in thousands) 2019 $ 2,693 2020 2,741 2021 2,828 2022 2,868 2023 2,886 2024-2028 $ 14,971 Supplemental Executive Retirement Plan (SERP) The Company permits selected highly compensated employees to defer a portion of their compensation into the SERP. The SERP assets are invested primarily in company-owned life insurance (“COLI”) policies as a funding source to satisfy the obligations of the SERP. The assets are subject to claims by creditors, and the Company can designate them to another purpose at any time. Investments in COLI policies consisted of $47.9 million in variable life insurance policies as of December 31, 2018 and $51.0 million as of December 31, 2017. In the COLI policies, the Company is able to allocate the investment of the assets across a set of choices provided by the insurance underwriters, including fixed income securities and equity funds. The COLI policies are recorded at their net cash surrender values, which approximates fair value, as provided by the issuing insurance company, whose Standard & Poor’s credit rating was A+. The Company classifies the SERP assets as trading securities as described in Note 1. The fair value of these assets totaled $22,815,000 as of December 31, 2018 and $23,463,000 as of December 31, 2017. The SERP assets are reported in other assets on the balance sheet. The changes in the fair value of these assets, and normal insurance expenses are recorded in the consolidated statement of operations as compensation cost within selling, general and administrative expenses. Trading (losses) gains related to the SERP assets totaled $(2,282,000) in 2018, $3,156,000 in 2017, and $966,000 in 2016. The SERP liability includes participant deferrals net of distributions is recorded on the balance sheet in long-term pension liabilities with any change in the fair value of the liabilities recorded as compensation cost within selling, general and administrative expenses in the consolidated statements of operations. As a result of Company-owned life insurance policy claims, the Company received insurance proceeds of $2,218,000 less a cash surrender value of $1,182,000 and recorded tax-free gains of $1,020,000 during 2018; these gains are recorded as an adjustment to compensation cost within selling, general and administrative expenses in the consolidated statements of operations. Proceeds received have been reinvested into mutual funds held as supplemental retirement plan assets. 401(k) Plan RPC sponsors a defined contribution 401(k) plan that is available to substantially all full-time employees with more than three months of service. This plan allows employees to make tax-deferred contributions from one to 25 percent of their annual compensation, not exceeding the permissible contribution imposed by the Internal Revenue Code. As of December 31, 2018, the Company made matching contributions of fifty cents ($0.50) for each dollar ($1.00) of a participant’s contribution to the 401(k) Plan that does not exceed six percent of his or her annual compensation. Effective January 1, 2019, the Company makes 100 percent matching contributions for each dollar ($1.00) of a participant’s contribution to the 401(k) Plan for the first three percent of his or her annual compensation and fifty cents ($0.50) for each dollar ($1.00) of a participant’s contribution to the 401(k) Plan for the next three percent of his or her annual compensation. Employees vest in the RPC contributions after three years of service. The charges to expense for the Company’s contributions to the 401(k) plan were $5,704,000 in 2018, $4,509,000 in 2017, and $3,250,000 in 2016. Stock Incentive Plans The Company has issued stock options and restricted stock to employees under three 10-year stock incentive plans that were approved by stockholders in 1994, 2004 and 2014. The 1994 plan expired in 2004 and the 2004 Plan expired in 2014. In April 2014, the Company reserved 8,000,000 shares of common stock under the 2014 Stock Incentive Plan with a term of 10 years expiring in April 2024. This plan provides for the issuance of various forms of stock incentives, including, among others, incentive and non-qualified stock options and restricted shares. As of December 31, 2018, 5,402,634 shares were available for grant. The Company recognizes compensation expense for the unvested portion of awards outstanding over the remainder of the service period. The compensation cost recorded for these awards is based on their fair value at the grant date less the cost of estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods to reflect actual forfeitures. Cash flows related to share-based payment awards to employees that result in tax benefits in excess of recognized cumulative compensation cost (excess tax benefits) are classified as a financing activity in the accompanying consolidated statements of cash flows. Pre-tax stock-based employee compensation expense was $9,419,000 in 2018 ($7,111,000 after tax), $11,090,000 in 2017 ($7,042,000 after tax), and $10,218,000 in 2016 ($6,488,000 after tax). Stock Options Stock options are granted at an exercise price equal to the fair market value of the Company’s common stock at the date of grant except for grants of incentive stock options to owners of greater than 10 percent of the Company’s voting securities which must be made at 110 percent of the fair market value of the Company’s common stock. Options generally vest ratably over a period of five years and expire in 10 years, except incentive stock options granted to owners of greater than 10 percent of the Company’s voting securities, which expire in five years. The Company estimates the fair value of stock options as of the date of grant using the Black-Scholes option pricing model. The Company has not granted stock options to employees since 2003 and there are none outstanding. There were no stock options exercised during 2018, 2017 or 2016 and there are no stock options outstanding as of December 31, 2018. Restricted Stock The Company has granted employees time lapse restricted stock which vest after a stipulated number of years from the grant date, depending on the terms of the issue. Time lapse restricted shares issued vest in 20 percent increments annually starting with the second anniversary of the grant. Grantees receive dividends declared and retain voting rights for the granted shares. The agreement under which the restricted stock is issued provides that shares awarded may not be sold or otherwise transferred until restrictions established under the stock plans have lapsed. Upon termination of employment from RPC, with the exception of death (fully vests), disability or retirement (partially vests based on duration of service), shares with restrictions are forfeited in accordance with the plan. The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2018: Shares Weighted Average Grant- Non-vested shares at January 1, 2018 2,736,365 $ 14.50 Granted 522,800 25.13 Vested (750,880 ) 13.06 Forfeited (156,135 ) 17.10 Non-vested shares at December 31, 2018 2,352,150 $ 17.15 The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2017: Shares Weighted Average Grant- Non-vested shares at January 1, 2017 3,217,075 $ 12.91 Granted 563,065 21.66 Vested (900,051 ) 13.34 Forfeited (143,724 ) 14.25 Non-vested shares at December 31, 2017 2,736,365 $ 14.50 The fair value of restricted share awards is based on the market price of the Company’s stock on the date of the grant and is amortized to compensation expense, net of estimated forfeitures, on a straight-line basis over the requisite service period. The weighted average grant date fair value per share of these restricted stock awards was $25.13 for 2018, $21.66 for 2017 and $10.77 for 2016. The total fair value of shares vested was $16,483,000 during 2018, $19,480,000 during 2017 and $9,751,000 during 2016. Pursuant to the adoption of ASU 2017-09 in 2017, the classification of excess tax benefits realized from tax compensation deductions in excess of compensation expense have been reflected as follows: · $1,899,000 for 2018 and $2,803,000 for 2017 have been recorded as a discrete income tax adjustments and classified within operating activities as part of net income in the consolidated statements of cash flows; and · $427,000 for 2016 was credited to capital in excess of par value and classified within financing activities as an inflow in addition to being disclosed as an outflow within operating activities in the consolidated statements of cash flows. Other Information As of December 31, 2018, total unrecognized compensation cost related to non-vested restricted shares was $43,498,000 which is expected to be recognized over a weighted-average period of 3.2 years. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions | |
Related Party Transactions | Note 12: Related Party Transactions Marine Products Corporation Effective in 2001, the Company spun off the business conducted through Chaparral Boats, Inc. (“Chaparral”), RPC’s former powerboat manufacturing segment. RPC accomplished the spin-off by contributing 100 percent of the issued and outstanding stock of Chaparral to Marine Products Corporation (a Delaware corporation) (“Marine Products”), a newly formed wholly owned subsidiary of RPC, and then distributing the common stock of Marine Products to RPC stockholders. In conjunction with the spin-off, RPC and Marine Products entered into various agreements that define the companies’ relationship. In accordance with a Transition Support Services agreement, which may be terminated by either party, RPC provides certain administrative services, including financial reporting and income tax administration, acquisition assistance, etc., to Marine Products. Charges from the Company (or from corporations that are subsidiaries of the Company) for such services were $873,000 in 2018, $849,000 in 2017, and $739,000 in 2016. The Company’s receivable due from Marine Products for these services was $28,000 as of December 31, 2018 and $47,000 as of December 31, 2017. Many of the Company’s directors are also directors of Marine Products and all of the executive officers are employees of both the Company and Marine Products. Other The Company periodically purchases in the ordinary course of business equipment or services from suppliers, who are owned by significant officers or stockholders, or affiliated with the directors of RPC. The total amounts paid to these affiliated parties were $1,467,000 in 2018, $1,372,000 in 2017 and $890,000 in 2016. RPC receives certain administrative services and rents office space from Rollins, Inc. (a company of which Mr. R. Randall Rollins is also Chairman and which is otherwise affiliated with RPC). The service agreements between Rollins, Inc. and the Company provide for the provision of services on a cost reimbursement basis and are terminable on six months’ notice. The services covered by these agreements include office space, administration of certain employee benefit programs, and other administrative services. Charges to the Company (or to corporations which are subsidiaries of the Company) for such services and rent totaled $101,000 in 2018, $104,000 in 2017 and $111,000 in 2016. A group that includes the Company’s Chairman of the Board, R. Randall Rollins and his brother Gary W. Rollins, who is also a director of the Company, and certain companies under their control, controls in excess of fifty percent of the Company’s voting power. RPC and Marine Products own 50 percent each of a limited liability company called 255 RC, LLC that was created for the joint purchase and ownership of a corporate aircraft. The purchase of the aircraft was completed in January 2015, and the purchase was funded primarily by a $2,554,000 contribution by each company to 255 RC, LLC. Each of RPC and Marine Products is a party to an operating lease agreement with 255 RC, LLC for a period of five years. RPC recorded certain net operating costs comprised of rent and an allocable share of fixed costs of $199,000 in 2018 and $197,000 in 2017 and 2016 for the corporate aircraft. The Company accounts for this investment using the equity method and its proportionate share of income or loss is recorded in selling, general and administrative expenses. As of December 31, 2018, the investment closely approximates the underlying equity in the net assets of 255 RC, LLC. |
Business Segment and Entity wid
Business Segment and Entity wide Disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Business Segment Information | |
Business Segment and Entity wide Disclosures | Note 13: Business Segment and Entity wide Disclosures RPC’s reportable segments are the same as its operating segments. RPC manages its business under Technical Services and Support Services. Technical Services is comprised of service lines that generate revenue based on equipment, personnel or materials at the well site and are closely aligned with completion and production activities of the customers. Support Services is comprised of service lines which generate revenue from services and equipment offered off the well site and are closely aligned with the customers’ drilling activities. Selected overhead including centralized support services and regulatory compliance are classified as Corporate. Technical Services consists primarily of pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline and fishing. The services offered under Technical Services are high capital and personnel intensive businesses. The Company considers all of these services to be closely integrated oil and gas well servicing businesses, and makes resource allocation and performance assessment decisions based on this operating segment as a whole across these various services. Support Services consist primarily of drill pipe and related tools, pipe handling, pipe inspection and storage services, and oilfield training and consulting services. The demand for these services tends to be influenced primarily by customer drilling-related activity levels. The Company’s Chief Operating Decision Maker (“CODM”) assesses performance and makes resource allocation decisions regarding, among others, staffing, growth and maintenance capital expenditures and key initiatives based on the operating segments outlined above. Segment Revenues: RPC’s operating segment revenues by major service lines are shown in the following table: (in thousands) 2018 2017 2016 Technical Services: Pressure Pumping $ 945,919 $ 993,538 $ 336,550 Downhole Tools 423,811 294,606 169,754 Coiled Tubing 100,049 109,462 70,511 Nitrogen 49,198 38,961 37,172 Snubbing 17,818 23,838 18,903 All other 110,418 77,946 46,764 Total Technical Services $ 1,647,213 $ 1,538,351 $ 679,654 Support Services: Rental Tools $ 50,809 $ 30,264 $ 21,443 All other 22,983 26,612 27,877 Total Support Services $ 73,792 $ 56,876 $ 49,320 Total Revenues $ 1,721,005 $ 1,595,227 $ 728,974 The accounting policies of the reportable segments are the same as those described in Note 1 to these consolidated financial statements. RPC evaluates the performance of its segments based on revenues, operating profits and return on invested capital. Gains or losses on disposition of assets are reviewed by the CODM on a consolidated basis, and accordingly the Company does not report gains or losses at the segment level. Inter-segment revenues are generally recorded in segment operating results at prices that management believes approximate prices for arm’s length transactions and are not material to operating results. Summarized financial information concerning RPC’s reportable segments for the years ended December 31, 2018, 2017 and 2016 are shown in the following table: (in thousands) Technical Support Corporate Gain (loss) on Total 2018 Revenues $ 1,647,213 $ 73,792 $ — $ — $ 1,721,005 Operating profit (loss) 216,703 4,612 (14,629 ) 3,344 210,030 Capital expenditures 230,262 10,364 1,984 — 242,610 Depreciation and amortization 150,508 12,174 438 — 163,120 Identifiable assets 925,305 78,413 195,862 — 1,199,580 2017 Revenues $ 1,538,351 $ 56,876 $ — $ — $ 1,595,227 Operating (loss) profit 251,476 (12,228 ) (17,561 ) 4,530 226,217 Capital expenditures 106,131 9,949 1,429 — 117,509 Depreciation and amortization 145,507 17,570 460 — 163,537 Identifiable assets 896,803 75,568 174,853 — 1,147,224 2016 Revenues $ 679,654 $ 49,320 $ — $ — $ 728,974 Operating loss (203,804 ) (26,021 ) (17,037 ) 7,920 (238,942 ) Capital expenditures 28,380 2,928 2,630 — 33,938 Depreciation and amortization 191,181 25,606 471 — 217,258 Identifiable assets 733,008 76,876 225,568 — 1,035,452 The following summarizes revenues for the United States and separately for all international locations combined for the years ended December 31, 2018, 2017 and 2016. The revenues are presented based on the location of the use of the equipment or services. Assets related to international operations are less than 10 percent of RPC’s consolidated assets, and therefore are not presented. Years ended December 31, 2018 2017 2016 (in thousands) United States Revenues $ 1,630,569 $ 1,539,462 $ 677,755 International Revenues 90,436 55,765 51,219 $ 1,721,005 $ 1,595,227 $ 728,974 |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS For the years ended (in thousands) Balance at Charged to Net (Deductions) Balance Year ended December 31, 2018 Allowance for doubtful accounts $ 4,471 $ 588 $ (246 ) (1) $ 4,813 Deferred tax asset valuation allowance $ 3,994 $ — (2) $ (3,549 ) $ 445 Reserve for obsolete or slow moving inventory $ 3,875 $ 8,088 $ (1,794 ) (3) $ 10,169 Year ended December 31, 2017 Allowance for doubtful accounts $ 2,553 $ 1,441 $ 477 (1) $ 4,471 Deferred tax asset valuation allowance $ 356 $ 3,638 (2) $ — $ 3,994 Reserve for obsolete or slow moving inventory $ 3,052 $ 5,869 $ (5,046 ) (3) $ 3,875 Year ended December 31, 2016 Allowance for doubtful accounts $ 10,605 $ 6,021 $ (14,073 ) (1) $ 2,553 Deferred tax asset valuation allowance $ 276 $ 80 (2) $ — $ 356 Reserve for obsolete or slow moving inventory $ 2,588 $ 6,401 $ (5,937 ) (3) $ 3,052 (1) Net (deductions) recoveries in the allowance for doubtful accounts principally reflect the write-off of previously reserved accounts net of recoveries. (2) The valuation allowance for deferred tax assets is increased or decreased each year to reflect the state net operating losses, foreign tax credits and capital losses that management believes will not be utilized before they expire. (3) Net (deductions) recoveries in the reserve for obsolete or slow moving inventory principally reflect the write-off and/ or disposal of previously reserved inventory. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of RPC, Inc. and its wholly-owned subsidiaries (“RPC” or the “Company”). All significant intercompany accounts and transactions have been eliminated. |
Common Stock | Common Stock RPC is authorized to issue 349,000,000 shares of common stock, $0.10 par value. Holders of common stock are entitled to receive dividends when, as, and if declared by the Board of Directors out of legally available funds. Each share of common stock is entitled to one vote on all matters submitted to a vote of stockholders. Holders of common stock do not have cumulative voting rights. In the event of any liquidation, dissolution or winding up of the Company, holders of common stock are entitled to ratable distribution of the remaining assets available for distribution to stockholders. |
Preferred Stock | Preferred Stock RPC is authorized to issue up to 1,000,000 shares of preferred stock, $0.10 par value. As of December 31, 2018, there were no shares of preferred stock issued. The Board of Directors is authorized, subject to any limitations prescribed by law, to provide for the issuance of preferred stock as a class without series or, if so determined from time to time, in one or more series, and by filing a certificate pursuant to the applicable laws of the state of Delaware and to fix the designations, powers, preferences and rights, exchangeability for shares of any other class or classes of stock. Any preferred stock to be issued could rank prior to the common stock with respect to dividend rights and rights on liquidation. |
Dividends | Dividends On January 22, 2019, the Board of Directors declared a regular quarterly cash dividend of $0.10 per share payable March 11, 2019 to common stockholders of record at the close of business on February 11, 2019. Subject to industry conditions and RPC’s earnings, financial condition, and other relevant factors, the Company expects to continue to pay regular quarterly cash dividends to common stockholders. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are used in the determination of the allowance for doubtful accounts, income taxes, accrued insurance expenses, depreciable lives of assets, and pension liabilities. |
Revenues | Revenues RPC recognizes revenues from contracts with its customers based on the amount of consideration it receives in exchange for the services provided. See Note 2 for additional information |
Concentration of Credit Risk | Concentration of Credit Risk Substantially all of the Company’s customers are engaged in the oil and gas industry. This concentration of customers may impact overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic and industry conditions. The Company provided oilfield services to several hundred customers during each of the last three years. There was no customer that accounted for more than 10 percent of the Company’s revenues in 2018, 2017 or 2016. Additionally, there was no customer that accounted for more than 10 percent of accounts receivable as of December 31, 2018 or 2017. |
Cash and Cash Equivalents | Cash and Cash Equivalents Highly liquid investments with original maturities of three months or less when acquired are considered to be cash equivalents. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits. RPC maintains cash equivalents and investments in one or more large financial institutions, and RPC’s policy restricts investment in any securities rated less than “investment grade” by national rating services. |
Investments | Investments Investments classified as available-for-sale securities are stated at their fair values, with the unrealized gains and losses, net of tax, reported as a separate component of stockholders’ equity. The cost of securities sold is based on the specific identification method. Realized gains and losses, declines in value judged to be other than temporary, interest, and dividends with respect to available-for-sale securities are included in interest income. The Company realized no gains or losses on its available-for-sale securities during 2018 and 2017, and an immaterial realized loss during 2016. Securities that are held in the non-qualified Supplemental Executive Retirement Plan (“SERP”) are classified as trading. See Note 11 for further information regarding the SERP. The change in fair value of trading securities is presented as compensation cost in selling, general and administrative expenses on the consolidated statements of operations. Management determines the appropriate classification of investments at the time of purchase and re-evaluates such designations as of each balance sheet date. |
Accounts Receivable | Accounts Receivable The majority of the Company’s accounts receivable is due principally from major and independent oil and natural gas exploration and production companies. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are considered past due after 60 days and are stated at amounts due from customers, net of an allowance for doubtful accounts. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Accounts receivable are carried at the amounts due from customers, reduced by an allowance for estimated amounts that may not be collectible in the future. The estimated allowance for doubtful accounts is based on an evaluation of industry trends, financial condition of customers, historical write-off experience, current economic conditions, and in the case of international customers, judgments about the economic and political environment of the related country and region. Accounts are written off against the allowance for doubtful accounts when the Company determines that amounts are uncollectible and recoveries of previously written-off accounts are recorded when collected. |
Inventories | Inventories Inventories, which consist principally of (i) raw materials and supplies that are consumed providing services to the Company’s customers, (ii) spare parts for equipment used in providing these services and (iii) components and attachments for manufactured equipment used in providing services, are recorded at the lower of cost and net realizable value. Cost is determined using first-in, first-out (“FIFO”) method or the weighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company regularly reviews inventory quantities on hand and records a write-down for excess or obsolete inventory based primarily on its estimated forecast of product demand, market conditions, production requirements and technological developments. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, including software costs, are reported at cost less accumulated depreciation and amortization, which is provided on a straight-line basis over the estimated useful lives of the assets. Annual depreciation and amortization expenses are computed using the following useful lives: operating equipment, 3 to 20 years; buildings and leasehold improvements, 15 to 39 years or the life of the lease; furniture and fixtures, 5 to 7 years; software, 5 years; and vehicles, 3 to 5 years. The cost of assets retired or otherwise disposed of and the related accumulated depreciation and amortization are eliminated from the accounts in the year of disposal with the resulting gain or loss credited or charged to income from operations. Expenditures for additions, major renewals, and betterments are capitalized. Expenditures for restoring an identifiable asset to working condition or for maintaining the asset in good working order constitute repairs and maintenance and are expensed as incurred. RPC records impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The Company periodically reviews the values assigned to long-lived assets, such as property, plant and equipment, to determine if any impairments should be recognized. Management believes that the long-lived assets in the accompanying balance sheets have not been impaired. During 2016, RPC recorded immaterial write-downs on certain equipment to comply with the Company’s policy to store and maintain key equipment in an efficient manner. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets of businesses acquired. The carrying amount of goodwill by reportable segment was as follows: Years Ended December 31, 2018 2017 (in thousands) Technical Services $ 30,992 $ 30,992 Support Services 1,158 1,158 Goodwill $ 32,150 $ 32,150 Goodwill is reviewed annually, or more frequently, if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount, for impairment. In 2018 and 2017, the Company performed a quantitative impairment test by estimating the fair value of each of its reporting units using a discounted cash flow analysis based on management’s short-term and long-term forecast of operating results. The discounted cash flow analysis for each reporting unit includes assumptions regarding discount rates, revenue growth rates, expected profitability margins, forecasted capital expenditures, and the timing of expected future cash flows. Based on the analysis, the Company concluded that the fair value of its reporting units exceeded their carrying amount and therefore no impairment of goodwill occurred for the years ended December 31, 2018 and 2017. The Company completed a comprehensive qualitative assessment of the various factors that impact goodwill for the year ended December 31, 2016, and concluded it is more likely than not that the fair value of its reporting units exceeded their carrying amounts as of the annual test date and therefore no impairment of its goodwill occurred for the year ended December 31, 2016. |
Advertising | Advertising Advertising expenses are charged to expense during the period in which they are incurred. Advertising expenses totaled $2,220,000 in 2018, $1,696,000 in 2017, and $1,296,000 in 2016. |
Insurance Expenses | Insurance Expenses RPC self-insures, up to certain policy-specified limits, certain risks related to general liability, workers’ compensation, vehicle and equipment liability, and employee health insurance plan costs. The estimated cost of claims under these self-insurance programs is estimated and accrued as the claims are incurred (although actual settlement of the claims may not be made until future periods) and may subsequently be revised based on developments relating to such claims. The portion of these estimated outstanding claims expected to be paid more than one year in the future is classified as long-term accrued insurance expenses. |
Income Taxes | Income Taxes Deferred tax liabilities and assets are determined based on the difference between the financial and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The newly enacted Tax Cuts and Jobs Act required the revaluation of our deferred tax assets and liabilities to reflect the change in Federal income tax rates from 35 percent to 21 percent. The Company’s net deferred tax liability as of December 31, 2018 has been reduced through a discrete income tax provision adjustment of $19.3 million related to this rate change. The Company establishes a valuation allowance against the carrying value of deferred tax assets when the Company determines that it is more likely than not that the asset will not be realized through future taxable income. |
Defined Benefit Pension Plan | Defined Benefit Pension Plan The Company has a defined benefit pension plan that provides monthly benefits upon retirement at age 65 to eligible employees with at least one year of service prior to 2002. In 2002, the Company’s Board of Directors approved a resolution to cease all future retirement benefit accruals under the defined benefit pension plan. See Note 11 for a full description of this plan and the related accounting and funding policies. |
Share Repurchases | Share Repurchases The Company records the cost of share repurchases in stockholders’ equity as a reduction to common stock to the extent of par value of the shares acquired and the remainder is allocated to capital in excess of par value and retained earnings if capital in excess of par value is depleted. The Company tracks capital in excess of par value on a cumulative basis for each reporting period, discloses the excess over capital in excess of par value as part of stock purchased and retired in the consolidated statements of stockholders’ equity. |
Earnings per Share | Earnings per Share Basic and diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. In addition, the Company has periodically issued share-based payment awards that contain non-forfeitable rights to dividends and are therefore considered participating securities. See Note 11 for further information on restricted stock granted to employees. Restricted shares of common stock (participating securities) outstanding and a reconciliation of weighted average shares outstanding is as follows: (In thousands except per share data ) 2018 2017 2016 Net income (loss) available for stockholders $ 175,402 $ 162,511 $ (141,246 ) Less: Adjustments for losses attributable to participating securities (1,839 ) (2,102 ) (147 ) Net income (loss) used in calculating per share amounts $ 173,563 $ 160,409 $ (141,393 ) Weighted average shares outstanding (including participating securities) 215,198 217,194 217,509 Adjustment for participating securities (2,453 ) (2,891 ) (3,282 ) Shares used in calculating basic and diluted earnings (loss) per share 212,745 214,303 214,227 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, investments, accounts payable, and debt. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of such instruments. The Company’s investments are classified as available-for-sale securities with the exception of investments held in the non-qualified Supplemental Executive Retirement Plan (“SERP”) which are classified as trading securities. All of these securities are carried at fair value in the accompanying consolidated balance sheets. See Note 9 for additional information. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payment awards, net estimated forfeitures. Thus, compensation cost is amortized for those shares expected to vest on a straight-line basis over the requisite service period of the award. See Note 11 for additional information. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued the following applicable Accounting Standards Updates (ASU): Recently Adopted Accounting Standards: Accounting Standards Update (ASU) No. 2014-09, Revenue from Contacts with Customers (Topic 606): ASC 606, Revenue from Contracts with Customers ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. Recently Issued Accounting Standards Not Yet Adopted: To be adopted in 2019: ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Leases (Topic 842). To be adopted in 2020 and later: ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies | |
Schedule of carrying amount of goodwill by reportable segment | Years Ended December 31, 2018 2017 (in thousands) Technical Services $ 30,992 $ 30,992 Support Services 1,158 1,158 Goodwill $ 32,150 $ 32,150 |
Schedule of reconciliation of weighted average shares outstanding | (In thousands except per share data ) 2018 2017 2016 Net income (loss) available for stockholders $ 175,402 $ 162,511 $ (141,246 ) Less: Adjustments for losses attributable to participating securities (1,839 ) (2,102 ) (147 ) Net income (loss) used in calculating per share amounts $ 173,563 $ 160,409 $ (141,393 ) Weighted average shares outstanding (including participating securities) 215,198 217,194 217,509 Adjustment for participating securities (2,453 ) (2,891 ) (3,282 ) Shares used in calculating basic and diluted earnings (loss) per share 212,745 214,303 214,227 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenues | (in thousands) 2018 2017 2016 Oil field services transferred at a point in time $ - $ - $ - Oil field services transferred over time 1,721,005 1,595,227 728,974 Total revenues $ 1,721,005 $ 1,595,227 $ 728,974 |
Schedule of contract assets included in accounts receivable | (in thousands) 2018 2017 Unbilled trade receivables $ 56,408 $ 68,494 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Receivable | |
Schedule of components of accounts receivables | December 31, 2018 2017 (in thousands) Trade receivables: Billed $ 266,660 $ 296,588 Unbilled 56,408 68,494 Other receivables 5,278 17,242 Total 328,346 382,324 Less: allowance for doubtful accounts (4,813 ) (4,471 ) Accounts receivable, net $ 323,533 $ 377,853 |
Schedule of changes in allowance for doubtful accounts | Years Ended December 31, 2018 2017 (in thousands) Beginning balance $ 4,471 $ 2,553 Bad debt expense 588 1,441 Accounts written-off (260 ) (105 ) Recoveries 14 582 Ending balance $ 4,813 $ 4,471 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment | |
Schedule of property, plant and equipment at cost net of accumulated depreciation | December 31, 2018 2017 (in thousands) Land $ 21,159 $ 19,991 Buildings and leasehold improvements 140,269 138,072 Operating equipment 1,429,906 1,419,670 Computer software 24,619 23,017 Furniture and fixtures 7,606 7,656 Vehicles 528,250 494,833 Gross property, plant and equipment 2,151,809 2,103,239 Less: accumulated depreciation (1,633,827 ) (1,659,311 ) Net property, plant and equipment $ 517,982 $ 443,928 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Schedule of components of provision (benefit) for income taxes | Years ended December 31, 2018 2017 2016 (in thousands) Current provision (benefit): Federal $ 13,708 $ 95,995 $ (43,993 ) State 3,932 13,966 (24,479 ) Foreign 6,843 2,953 4,567 Deferred provision (benefit): Federal 23,203 (39,710 ) (31,505 ) State (1,808 ) (2,899 ) (2,704 ) Total income tax provision (benefit) $ 45,878 $ 70,305 $ (98,114 ) |
Schedule of reconciliation between the federal statutory rate and effective tax rate | Years ended December 31, 2018 2017 2016 Federal statutory rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 2.6 1.9 1.3 Tax credits (0.1 ) (0.7 ) 0.1 Non-deductible expenses 1.8 2.0 (0.7 ) Change in contingencies — — 6.6 Adjustments related to the Act (2.3 ) (8.3 ) — Adjustments related to vesting of restricted stock (0.8 ) (1.2 ) — Other (1.5 ) 1.5 (1.3 ) Effective tax rate 20.7 % 30.2 % 41.0 % |
Schedule of deferred tax assets and liabilities | December 31, 2018 2017 (in thousands) Deferred tax assets: Self-insurance $ 5,055 $ 4,660 Pension 7,261 8,730 State net operating loss carryforwards 1,663 4,048 Bad debt 1,291 1,149 Accrued payroll 1,416 1,117 Stock-based compensation 3,501 3,612 Foreign tax credits — 3,592 All others 3,166 1,681 Valuation allowance (445 ) (3,994 ) Gross deferred tax assets 22,908 24,595 Deferred tax liabilities: Depreciation (71,647 ) (53,119 ) Goodwill amortization (6,587 ) (6,450 ) Basis differences in consolidated limited liability company (4,636 ) (4,102 ) Basis differences in joint ventures (408 ) (355 ) All others (5 ) (6 ) Gross deferred tax liabilities (83,283 ) (64,032 ) Net deferred tax liabilities $ (60,375 ) $ (39,437 ) |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | 2018 2017 Balance at January 1 $ 2,215,000 $ 2,215,000 Additions based on tax positions related to the current year — — Additions for tax positions of prior years — — Reductions for tax positions of prior years — — Balance at December 31 $ 2,215,000 $ 2,215,000 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long-Term Debt | |
Schedule of interest incurred and paid on the credit facility, interest capitalized related to facilities and equipment under construction, and the related weighted average interest rates on long term debt | Years Ended December 31, 2018 2017 2016 (in thousands) Interest incurred $ 390 $ 415 $ 449 Interest paid $ 241 $ 181 $ 284 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive (Loss) Income | |
Schedule of accumulated other comprehensive (loss) income | Pension Unrealized Foreign Total Balance at December 31, 2016 $ (15,503 ) $ 39 $ (2,638 ) $ (18,102 ) Change during 2017: Before-tax amount 776 (38 ) 391 1,129 Tax (expense) benefit (283 ) 14 — (269 ) Reclassification adjustment, net of taxes: Realized loss on securities — — — — Amortization of net loss (1) 540 — — 540 Total activity in 2017 1,033 (24 ) 391 1,400 Balance at December 31, 2017 $ (14,470 ) $ 15 $ (2,247 ) $ (16,702 ) Change during 2018: Before-tax amount (2,712 ) (15 ) (621 ) (3,348 ) Tax (expense) benefit 665 — — 665 Reclassification adjustment, net of taxes: Realized loss on securities — — — — Amortization of net loss (1) 639 — — 639 Total activity in 2018 (1,408 ) (15 ) (621 ) (2,044 ) Balance at December 31, 2018 $ (15,878 ) $ — $ (2,868 ) $ (18,746 ) (1) Reported as part of selling, general and administrative expenses. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures | |
Schedule of valuation of financial instruments measured at fair value on a recurring basis | Fair Value Measurements at December 31, 2018 with: (in thousands) Total Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) Assets: Available-for-sale securities – equity securities $ 211 $ 211 $ — $ — Investments measured at net asset value - trading securities $ 22,815 Fair Value Measurements at December 31, 2017 with: (in thousands) Total Quoted prices in Significant observable Significant unobservable (Level 1) (Level 2) (Level 3) Assets: Available-for-sale securities – equity securities $ 270 $ 270 $ — $ — Investments measured at net asset value - trading securities $ 23,463 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure | |
Schedule of future minimum rental payments for operating leases | (in thousands) 2019 $ 11,819 2020 10,651 2021 7,758 2022 5,618 2023 2,929 Thereafter 6,170 Total rental commitments $ 44,945 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefit Plans | |
Schedule of funded status of the retirement income plan | December 31, 2018 2017 (in thousands) Accumulated benefit obligation at end of year $ 43,417 $ 46,397 CHANGE IN PROJECTED BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 46,397 $ 44,315 Service cost — — Interest cost 1,832 1,932 Amendments — — Actuarial loss (2,658 ) 2,206 Benefits paid (2,154 ) (2,056 ) Projected benefit obligation at end of year $ 43,417 $ 46,397 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 38,050 $ 34,745 Actual return on plan assets (2,532 ) 5,361 Employer contribution 5,000 — Benefits paid (2,154 ) (2,056 ) Fair value of plan assets at end of year $ 38,364 $ 38,050 Funded status at end of year $ (5,053 ) $ (8,347 ) December 31, 2018 2017 (in thousands) AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) CONSIST OF: Net loss $ 24,650 $ 22,762 Prior service cost (credit) — — Net transition obligation (asset) — — $ 24,650 $ 22,762 |
Schedule of amounts recognized in balance sheet | December 31, 2018 2017 (in thousands) Funded status of the Retirement Income Plan $ (5,053 ) $ (8,347 ) SERP liability (24,585 ) (27,288 ) Long-term pension liabilities $ (29,638 ) $ (35,635 ) |
Schedule of net periodic benefit cost | Years ended December 31, 2018 2017 2016 (in thousands) Service cost for benefits earned during the period $ — $ — $ — Interest cost on projected benefit obligation 1,832 1,932 2,006 Expected return on plan assets (2,837 ) (2,356 ) (2,131 ) Amortization of net loss 824 851 799 Net periodic benefit plan cost $ (181 ) $ 427 $ 674 |
Schedule of amounts recognized in other comprehensive loss | (in thousands) 2018 2017 2016 Net (gain) loss $ 2,712 $ (799 ) $ 2,039 Amortization of net loss (824 ) (851 ) (799 ) Net transition obligation (asset) — — — Amount recognized in accumulated other comprehensive loss $ 1,888 $ (1,650 ) $ 1,240 |
Schedule of components of net periodic benefit | (in thousands) 2019 Amortization of net loss $ 897 Prior service cost (credit) — Net transition obligation (asset) — Estimated net periodic benefit plan cost $ 897 |
Schedule of weighted average assumptions | December 31, 2018 2017 2016 Projected Benefit Obligation: Discount rate 4.65 % 4.00 % 4.45 % Rate of compensation increase N/A N/A N/A Net Benefit Cost: Discount rate 4.00 % 4.45 % 4.70 % Expected return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase N/A N/A N/A |
Schedule of allocation of plan assets | Target Allocation Percentage of Plan Assets December 31, 2019 2018 2017 Asset Category Cash and cash equivalents 0% - 3% 3.0 % 2.8 % Fixed income securities 15% - 100% 29.1 % 20.7 % Domestic equity securities 0% - 40% 39.5 % 23.8 % International equity securities 0% - 30% 19.0 % 42.4 % Investments measured at net asset value 0% - 12% 9.4 % 10.3 % Total 100.0 % 100.0 % |
Schedule of level three defined benefit plan assets | Fair Value Hierarchy as of December 31, 2018: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 1,140 $ 1,140 $ — Fixed Income Securities (2) 11,163 — 11,163 Domestic Equity Securities (3) 15,182 5,602 9,581 International Equity Securities (4) 7,279 — 7,279 Total Assets in the Fair Value Hierarchy $ 34,764 $ 6,742 $ 28,023 Investments measured at Net Asset Value 3,600 Investments at Fair Value $ 38,364 Fair Value Hierarchy as of December 31, 2017: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 1,084 $ 1,084 $ — Fixed Income Securities (2) 9,064 — 9,064 Domestic Equity Securities (3) 16,103 5,930 10,173 International Equity Securities (4) 7,889 — 7,889 Total Assets in the Fair Value Hierarchy $ 34,140 $ 7,014 $ 27,126 Investments measured at Net Asset Value 3,910 Investments at Fair Value $ 38,050 (1) Cash and cash equivalents, which are used to pay benefits and plan administrative expenses, are held in Rule 2a-7 money market funds. (2) Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. (3) Domestic equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. (4) International equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. |
Schedule of future benefits payable for the retirement income plan over the next ten years | (in thousands) 2019 $ 2,693 2020 2,741 2021 2,828 2022 2,868 2023 2,886 2024-2028 $ 14,971 |
Schedule of summary of the changes in non-vested restricted shares | The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2018: Shares Weighted Average Grant- Non-vested shares at January 1, 2018 2,736,365 $ 14.50 Granted 522,800 25.13 Vested (750,880 ) 13.06 Forfeited (156,135 ) 17.10 Non-vested shares at December 31, 2018 2,352,150 $ 17.15 The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2017: Shares Weighted Average Grant- Non-vested shares at January 1, 2017 3,217,075 $ 12.91 Granted 563,065 21.66 Vested (900,051 ) 13.34 Forfeited (143,724 ) 14.25 Non-vested shares at December 31, 2017 2,736,365 $ 14.50 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Segment Information | |
Schedule of operating segment revenues by major service lines | (in thousands) 2018 2017 2016 Technical Services: Pressure Pumping $ 945,919 $ 993,538 $ 336,550 Downhole Tools 423,811 294,606 169,754 Coiled Tubing 100,049 109,462 70,511 Nitrogen 49,198 38,961 37,172 Snubbing 17,818 23,838 18,903 All other 110,418 77,946 46,764 Total Technical Services $ 1,647,213 $ 1,538,351 $ 679,654 Support Services: Rental Tools $ 50,809 $ 30,264 $ 21,443 All other 22,983 26,612 27,877 Total Support Services $ 73,792 $ 56,876 $ 49,320 Total Revenues $ 1,721,005 $ 1,595,227 $ 728,974 |
Schedule of summarized financial information concerning reportable segments | (in thousands) Technical Support Corporate Gain (loss) on Total 2018 Revenues $ 1,647,213 $ 73,792 $ — $ — $ 1,721,005 Operating profit (loss) 216,703 4,612 (14,629 ) 3,344 210,030 Capital expenditures 230,262 10,364 1,984 — 242,610 Depreciation and amortization 150,508 12,174 438 — 163,120 Identifiable assets 925,305 78,413 195,862 — 1,199,580 2017 Revenues $ 1,538,351 $ 56,876 $ — $ — $ 1,595,227 Operating (loss) profit 251,476 (12,228 ) (17,561 ) 4,530 226,217 Capital expenditures 106,131 9,949 1,429 — 117,509 Depreciation and amortization 145,507 17,570 460 — 163,537 Identifiable assets 896,803 75,568 174,853 — 1,147,224 2016 Revenues $ 679,654 $ 49,320 $ — $ — $ 728,974 Operating loss (203,804 ) (26,021 ) (17,037 ) 7,920 (238,942 ) Capital expenditures 28,380 2,928 2,630 — 33,938 Depreciation and amortization 191,181 25,606 471 — 217,258 Identifiable assets 733,008 76,876 225,568 — 1,035,452 |
Schedule of revenues are presented based on the location of the use of the product or service | Years ended December 31, 2018 2017 2016 (in thousands) United States Revenues $ 1,630,569 $ 1,539,462 $ 677,755 International Revenues 90,436 55,765 51,219 $ 1,721,005 $ 1,595,227 $ 728,974 |
Significant Accounting Polici_4
Significant Accounting Policies - Summary of carrying amount of goodwill by reportable segment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Significant Accounting Policies [Line Items] | ||
Goodwill | $ 32,150 | $ 32,150 |
Operating Segments | Technical Services | ||
Significant Accounting Policies [Line Items] | ||
Goodwill | 30,992 | 30,992 |
Operating Segments | Support Services | ||
Significant Accounting Policies [Line Items] | ||
Goodwill | $ 1,158 | $ 1,158 |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of reconciliation of weighted average shares outstanding along with earnings per share attributable to restricted shares of common stock (Details 1) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant Accounting Policies | |||
Net income (loss) available for stockholders | $ 175,402 | $ 162,511 | $ (141,246) |
Less: Adjustments for losses attributable to participating securities | (1,839) | (2,102) | (147) |
Net income (loss) used in calculating per share amounts | $ 173,563 | $ 160,409 | $ (141,393) |
Weighted average shares outstanding (including participating securities) | 215,198 | 217,194 | 217,509 |
Adjustment for participating securities | (2,453) | (2,891) | (3,282) |
Shares used in calculating basic and diluted earnings (loss) per share | 212,745 | 214,303 | 214,227 |
Significant Accounting Polici_6
Significant Accounting Policies (Detail Textuals) - $ / shares | 1 Months Ended | 12 Months Ended | ||
Jan. 22, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant Accounting Policies [Line Items] | ||||
Common stock, shares authorized (in shares) | 349,000,000 | 349,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | ||
Number of votes each common shareholders entitled to provide | one vote | one vote | ||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | ||
Subsequent event | Dividend declared | ||||
Significant Accounting Policies [Line Items] | ||||
Dividends payable, amount per share | $ 0.10 | |||
Dividends payable, date declared | Jan. 22, 2019 | |||
Dividends payable, date to be payable | Mar. 11, 2019 | |||
Dividends payable, date of record | Feb. 11, 2019 | |||
Customer concentration risk | Revenue | ||||
Significant Accounting Policies [Line Items] | ||||
Description of customers accounted for concentration of credit risk | no customers that accounted for more than 10 percent of the Company's revenues | no customers that accounted for more than 10 percent of the Company's revenues | no customers that accounted for more than 10 percent of the Company's revenues | |
Customer concentration risk benchmark percentage | 10 | 10 | 10 | |
Customer concentration risk | Accounts receivable | ||||
Significant Accounting Policies [Line Items] | ||||
Description of customers accounted for concentration of credit risk | no customers that accounted for more than 10 percent of accounts receivable | no customers that accounted for more than 10 percent of accounts receivable | ||
Customer concentration risk benchmark percentage | 10 | 10 |
Significant Accounting Polici_7
Significant Accounting Policies (Detail Textuals 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant Accounting Policies [Line Items] | |||
Depreciation method used for property, plant and equipment | straight-line basis | ||
Goodwill | $ 32,150 | $ 32,150 | |
Advertising expenses | $ 2,220,000 | $ 1,696,000 | $ 1,296,000 |
Defined benefit pension plan eligibility criteria | defined benefit pension plan that provides monthly benefits upon retirement at age 65 to eligible employees with at least one year of service prior to 2002. | ||
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
Discrete tax benefit adjustment | $ 19,300 | ||
Earliest tax year | |||
Significant Accounting Policies [Line Items] | |||
Statutory federal income tax rate | 35.00% | ||
Latest tax year | |||
Significant Accounting Policies [Line Items] | |||
Statutory federal income tax rate | 21.00% | ||
Operating equipment | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | 3 to 20 years | ||
Buildings and leasehold improvements | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | 15 to 39 years or the life of the lease | ||
Furniture and fixtures | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | 5 to 7 years | ||
Software | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | 5 years | ||
Vehicles | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives of the assets | 3 to 5 years |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 1,721,005 | $ 1,595,227 | $ 728,974 |
Oil field services transferred at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Oil field services transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 1,721,005 | $ 1,595,227 | $ 728,974 |
Revenues (Details 1)
Revenues (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled | $ 56,408 | $ 68,494 |
Revenues (Details Textuals)
Revenues (Details Textuals) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Term of specified services and collection | 30 to 60 days |
Accounts Receivable - Summary o
Accounts Receivable - Summary of components of accounts receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Trade receivables: | ||
Billed | $ 266,660 | $ 296,588 |
Unbilled | 56,408 | 68,494 |
Other receivables | 5,278 | 17,242 |
Total | 328,346 | 382,324 |
Less: allowance for doubtful accounts | (4,813) | (4,471) |
Accounts receivable, net | $ 323,533 | $ 377,853 |
Accounts Receivable - Summary_2
Accounts Receivable - Summary of changes in allowance for doubtful accounts (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Beginning balance | $ 4,471 | $ 2,553 |
Bad debt expense | 588 | 1,441 |
Accounts written-off | (260) | (105) |
Recoveries | 14 | 582 |
Ending balance | $ 4,813 | $ 4,471 |
Inventories (Detail Textuals)
Inventories (Detail Textuals) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Inventories | ||
Raw materials, parts and supplies of inventories | $ 130,083,000 | $ 114,866,000 |
Reserve for obsolete and slow moving inventory | $ 10,168,000 | $ 3,875,000 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of property, plant and equipment presented at cost net of accumulated depreciation (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 2,151,809 | $ 2,103,239 |
Less: accumulated depreciation | (1,633,827) | (1,659,311) |
Net property, plant and equipment | 517,982 | 443,928 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 21,159 | 19,991 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 140,269 | 138,072 |
Operating equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 1,429,906 | 1,419,670 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 24,619 | 23,017 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 7,606 | 7,656 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 528,250 | $ 494,833 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Detail Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment | |||
Depreciation expense | $ 166.2 | $ 166.9 | $ 220.6 |
Accounts payable for purchases of property and equipment | $ 14.8 | $ 7.1 | $ 3.4 |
Income Taxes - Summary of compo
Income Taxes - Summary of components of provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current provision (benefit): | |||
Federal | $ 13,708 | $ 95,995 | $ (43,993) |
State | 3,932 | 13,966 | (24,479) |
Foreign | 6,843 | 2,953 | 4,567 |
Deferred provision (benefit): | |||
Federal | 23,203 | (39,710) | (31,505) |
State | (1,808) | (2,899) | (2,704) |
Total income tax provision (benefit) | $ 45,878 | $ 70,305 | $ (98,114) |
Income Taxes - Summary of recon
Income Taxes - Summary of reconciliation between federal statutory rate and effective tax rate (Details 1) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes | |||
Federal statutory rate | 21.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 2.60% | 1.90% | 1.30% |
Tax credits | (0.10%) | (0.70%) | 0.10% |
Non-deductible expenses | 1.80% | 2.00% | (0.70%) |
Change in contingencies | 0.00% | 0.00% | 6.60% |
Adjustments related to the Act | (2.30%) | (8.30%) | 0.00% |
Adjustments related to vesting of restricted stock | (0.80%) | (1.20%) | 0.00% |
Other | (1.50%) | 1.50% | (1.30%) |
Effective tax rate | 20.70% | 30.20% | 41.00% |
Income Taxes - Summary of signi
Income Taxes - Summary of significant components of deferred tax assets and liabilities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Self-insurance | $ 5,055 | $ 4,660 |
Pension | 7,261 | 8,730 |
State net operating loss carryforwards | 1,663 | 4,048 |
Bad debt | 1,291 | 1,149 |
Accrued payroll | 1,416 | 1,117 |
Stock-based compensation | 3,501 | 3,612 |
Foreign tax credits | 0 | 3,592 |
All others | 3,166 | 1,681 |
Valuation allowance | (445) | (3,994) |
Gross deferred tax assets | 22,908 | 24,595 |
Deferred tax liabilities: | ||
Depreciation | (71,647) | (53,119) |
Goodwill amortization | (6,587) | (6,450) |
Basis differences in consolidated limited liability company | (4,636) | (4,102) |
Basis differences in joint ventures | (408) | (355) |
All others | (5) | (6) |
Gross deferred tax liabilities | (83,283) | (64,032) |
Net deferred tax liabilities | $ (60,375) | $ (39,437) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of beginning and ending amount of unrecognized tax benefits (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at January 1 | $ 2,215,000 | $ 2,215,000 |
Additions based on tax positions related to the current year | 0 | 0 |
Additions for tax positions of prior years | 0 | 0 |
Reductions for tax positions of prior years | 0 | 0 |
Balance at December 31 | $ 2,215,000 | $ 2,215,000 |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
Discrete tax benefit adjustment | $ 19,300 | ||
Discrete income tax provision adjustment related to vesting of restricted stock | $ 5,100 | ||
Tax expense related to executive compensation | 1,300 | ||
Provisional expense | 500 | ||
Deferred tax assets, valuation allowance | 445 | 3,994 | |
Capital loss carryforwards | 56 | ||
Total net income tax (refunds) payments | 18,000 | 98,000 | $ (42,400) |
Unrecognized tax benefits | 2,215,000 | 2,215,000 | $ 2,215,000 |
Accrued interest and penalties | $ 263 | $ 193 | |
Earliest tax year | |||
Operating Loss Carryforwards [Line Items] | |||
Statutory federal income tax rate | 35.00% | ||
Latest tax year | |||
Operating Loss Carryforwards [Line Items] | |||
Statutory federal income tax rate | 21.00% | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards related to state income taxes | $ 27,600 | ||
Deferred tax assets, valuation allowance | $ 390 |
Long-Term Debt (Details)
Long-Term Debt (Details) - Revolving credit facility - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | |||
Interest incurred | $ 390 | $ 415 | $ 449 |
Interest paid | $ 241 | $ 181 | $ 284 |
Long-Term Debt (Detail Textuals
Long-Term Debt (Detail Textuals) - Revolving credit facility - Option 2 - Eurodollar Borrowings | 12 Months Ended |
Dec. 31, 2018Interest_Rate | |
Line of Credit Facility [Line Items] | |
Number of credit facility interest rate | 2 |
Description of reference rate basis | London Interbank Offering Rate ("LIBOR") |
Minimum | |
Line of Credit Facility [Line Items] | |
Range of margin based on quarterly debt covenant calculation | 1.125% |
Maximum | |
Line of Credit Facility [Line Items] | |
Range of margin based on quarterly debt covenant calculation | 2.125% |
Long-Term Debt (Detail Textua_2
Long-Term Debt (Detail Textuals 1) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jul. 26, 2018 | Jun. 30, 2016 | Dec. 31, 2018 | |
Revolving credit facility | |||
Line of Credit Facility [Line Items] | |||
Term of line of credit facility | 5 years | ||
Amount of credit facility | $ 125 | ||
Borrowing capacity description | the Company entered into Amendment No. 4 to Credit Agreement (the "Amendment"). The Amendment, among other matters, replaces the existing minimum tangible net worth covenant with the following covenants: (i) when RPC's trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million, a maximum consolidated leverage ratio of 2.50:1.00 and a minimum debt service coverage ratio of 2.00:1.00, and (ii) otherwise, a minimum tangible net worth covenant of no less than $600 million. The Amendment additionally (1) extends the Credit Agreement maturity date from January 17, 2019 to July 26, 2023, (2) eliminates any borrowing base limitations on revolving loans when RPC's trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million, (3) reduces the commitment fees payable by RPC by 7.5 basis points at each pricing level and (4) reduces the letter of credit sublimit from $50 million to $35 million. | ||
Borrowing base of line of credit | $ 125 | ||
Minimum tangible net worth | $ 600 | ||
Description of variable rate basis of debt instrument | Revolving loans under the amended revolving credit facility bear interest at one of the following two rates at the Company's election:· The Eurodollar Rate, which is the rate per annum equal to the London Interbank Offering Rate ("LIBOR"); plus, a margin ranging from 1.125% to 2.125%, based on a quarterly consolidated leverage ratio calculation; or· the Base Rate, which is a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 0.50%, (b) Bank of America's publicly announced "prime rate," and (c) the Eurodollar Rate plus 1.00%; in each case plus a margin that ranges from 0.125% to 1.125% based on a quarterly consolidated leverage ratio calculation. | ||
Loan origination fees and other debt related costs | $ 3.3 | ||
Non-current other assets net | $ 0.3 | ||
Revolving credit facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Fees on unused portion of facility | 0.15% | ||
Revolving credit facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Fees on unused portion of facility | 0.25% | ||
Revolving credit facility | Domestic subsidiaries | |||
Line of Credit Facility [Line Items] | |||
Percentage of ownership | 100.00% | ||
Revolving credit facility | Option 1 A | |||
Line of Credit Facility [Line Items] | |||
Description of reference rate basis | Federal Funds Rate | ||
Basis spread on variable rate | 0.50% | ||
Revolving credit facility | Option 1 A | Minimum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.125% | ||
Revolving credit facility | Option 1 A | Maximum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
Revolving credit facility | Option 1 B | |||
Line of Credit Facility [Line Items] | |||
Description of reference rate basis | Prime rate | ||
Revolving credit facility | Option 1 B | Minimum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.125% | ||
Revolving credit facility | Option 1 B | Maximum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
Revolving credit facility | Option 1 C | |||
Line of Credit Facility [Line Items] | |||
Description of reference rate basis | Eurodollar Rate | ||
Basis spread on variable rate | 1.00% | ||
Revolving credit facility | Option 1 C | Minimum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.125% | ||
Revolving credit facility | Option 1 C | Maximum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
Letter of credit subfacility | |||
Line of Credit Facility [Line Items] | |||
Amount of credit facility | $ 35 | ||
Letter of swingline subfacility | |||
Line of Credit Facility [Line Items] | |||
Amount of credit facility | $ 35 |
Long-Term Debt (Detail Textua_3
Long-Term Debt (Detail Textuals 2) $ in Millions | Dec. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | |
Letter of credit outstanding amount | $ 105.5 |
Uncommitted letter of credit facility | |
Line of Credit Facility [Line Items] | |
Letter of credit outstanding amount | $ 19.5 |
Long-Term Debt (Detail Textua_4
Long-Term Debt (Detail Textuals 3) - Amended revolving credit facility $ in Millions | 1 Months Ended |
Jul. 26, 2018USD ($) | |
Option 1 A | |
Line of Credit Facility [Line Items] | |
Borrowing capacity description | (i) when RPC's trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million, a maximum consolidated leverage ratio of 2.50:1.00 and a minimum debt service coverage ratio of 2.00:1.00, |
Maximum consolidated leverage ratio | 2.50:1.00 |
Minimum debt service coverage ratio | 2.00:1.00 |
Option 2 | |
Line of Credit Facility [Line Items] | |
Borrowing capacity description | (ii) otherwise, a minimum tangible net worth covenant of no less than $600 million. |
Minimum tangible net worth | $ 600 |
Option 2A | |
Line of Credit Facility [Line Items] | |
Borrowing capacity description | The Amendment additionally (1) extends the Credit Agreement maturity date from January 17, 2019 to July 26, 2023, |
Option 2B | |
Line of Credit Facility [Line Items] | |
Borrowing capacity description | (2) eliminates any borrowing base limitations on revolving loans when RPC's trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million, |
Option 2C | |
Line of Credit Facility [Line Items] | |
Borrowing capacity description | (3) reduces the commitment fees payable by RPC by 7.5 basis points at each pricing level |
Reduction in commitment fees payable | 7.50% |
Option 2D | |
Line of Credit Facility [Line Items] | |
Borrowing capacity description | (4) reduces the letter of credit sublimit from $50 million to $35 million. As of December 31, 2018, the Company was in compliance with these covenants. |
Borrowing base of line of credit | $ 35 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Summary of components of accumulated other comprehensive (loss) income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | $ (16,702) | $ (18,102) | |
Change during the period | |||
Before-tax amount | (3,348) | 1,129 | |
Tax (expense) benefit | 665 | (269) | |
Reclassification adjustment, net of taxes: | |||
Realized loss on securities | 0 | 0 | |
Amortization of net loss | [1] | 639 | 540 |
Total activity in period | (2,044) | 1,400 | |
Balance | (18,746) | (16,702) | |
Pension Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (14,470) | (15,503) | |
Change during the period | |||
Before-tax amount | (2,712) | 776 | |
Tax (expense) benefit | 665 | (283) | |
Reclassification adjustment, net of taxes: | |||
Realized loss on securities | 0 | 0 | |
Amortization of net loss | [1] | 639 | 540 |
Total activity in period | (1,408) | 1,033 | |
Balance | (15,878) | (14,470) | |
Unrealized Gain (Loss) On Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 15 | 39 | |
Change during the period | |||
Before-tax amount | (15) | (38) | |
Tax (expense) benefit | 0 | 14 | |
Reclassification adjustment, net of taxes: | |||
Realized loss on securities | 0 | 0 | |
Amortization of net loss | [1] | 0 | 0 |
Total activity in period | (15) | (24) | |
Balance | 0 | 15 | |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (2,247) | (2,638) | |
Change during the period | |||
Before-tax amount | (621) | 391 | |
Tax (expense) benefit | 0 | 0 | |
Reclassification adjustment, net of taxes: | |||
Realized loss on securities | 0 | 0 | |
Amortization of net loss | [1] | 0 | 0 |
Total activity in period | (621) | 391 | |
Balance | $ (2,868) | $ (2,247) | |
[1] | Reported as part of selling, general and administrative expenses. |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of valuation of financial instruments measured at fair value on recurring basis (Details) - Fair value on a recurring basis - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Available-for-sale securities - equity securities | $ 211 | $ 270 |
Investments measured at net asset value - trading securities | 22,815 | 23,463 |
Quoted prices in active markets for identical assets (Level 1) | ||
Assets: | ||
Available-for-sale securities - equity securities | 211 | 270 |
Significant other observable inputs (Level 2) | ||
Assets: | ||
Available-for-sale securities - equity securities | 0 | 0 |
Significant unobservable inputs (Level 3) | ||
Assets: | ||
Available-for-sale securities - equity securities | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of minimum annual rentals (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure | |
2,019 | $ 11,819 |
2,020 | 10,651 |
2,021 | 7,758 |
2,022 | 5,618 |
2,023 | 2,929 |
Thereafter | 6,170 |
Total rental commitments | $ 44,945 |
Commitments and Contingencies_2
Commitments and Contingencies (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure | |||
Total rental expense, including short-term rentals | $ 21,576,000 | $ 17,112,000 | $ 15,723,000 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of funded status of Retirement Income Plan and amounts recognized in consolidated balance sheets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation at end of year | $ 43,417 | $ 46,397 | |
Retirement Income Plan | |||
CHANGE IN PROJECTED BENEFIT OBLIGATION: | |||
Benefit obligation at beginning of year | 46,397 | 44,315 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 1,832 | 1,932 | 2,006 |
Amendments | 0 | 0 | |
Actuarial loss | (2,658) | 2,206 | |
Benefits paid | 2,154 | 2,056 | |
Projected benefit obligation at end of year | 43,417 | 46,397 | 44,315 |
CHANGE IN PLAN ASSETS: | |||
Fair value of plan assets at beginning of year | 38,050 | 34,745 | |
Actual return on plan assets | (2,532) | 5,361 | |
Employer contribution | 5,000 | 0 | |
Benefits paid | (2,154) | (2,056) | |
Fair value of plan assets at end of year | 38,364 | 38,050 | 34,745 |
Funded status at end of year | (5,053) | (8,347) | |
AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) CONSIST OF: | |||
Net loss | 24,650 | 22,762 | |
Prior service cost (credit) | 0 | 0 | |
Net transition obligation (asset) | 0 | 0 | $ 0 |
Before-tax amount | $ 24,650 | $ 22,762 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of amounts recognized in consolidated balance sheets (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term pension liabilities | $ (29,638) | $ (35,635) |
Retirement Income Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status of the Retirement Income Plan | (5,053) | (8,347) |
SERP liability | (24,585) | (27,288) |
Long-term pension liabilities | $ (29,638) | $ (35,635) |
Employee Benefit Plans - Summ_3
Employee Benefit Plans - Summary of components of net periodic benefit cost (Details 2) - Retirement Income Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for benefits earned during the period | $ 0 | $ 0 | $ 0 |
Interest cost on projected benefit obligation | 1,832 | 1,932 | 2,006 |
Expected return on plan assets | (2,837) | (2,356) | (2,131) |
Amortization of net loss | 824 | 851 | 799 |
Net periodic benefit plan cost | $ (181) | $ 427 | $ 674 |
Employee Benefit Plans - Summ_4
Employee Benefit Plans - Summary of pre tax amounts recognized in comprehensive loss (Details 3) - Retirement Income Plan - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net (gain) loss | $ 2,712 | $ (799) | $ 2,039 |
Amortization of net loss | (824) | (851) | (799) |
Net transition obligation (asset) | 0 | 0 | 0 |
Amount recognized in accumulated other comprehensive loss | $ 1,888 | $ (1,650) | $ 1,240 |
Employee Benefit Plans - Summ_5
Employee Benefit Plans - Summary of accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in 2018 (Details 4) $ in Thousands | Dec. 31, 2018USD ($) |
Employee Benefit Plans | |
Amortization of net loss | $ 897 |
Prior service cost (credit) | 0 |
Net transition obligation (asset) | 0 |
Estimated net periodic benefit plan cost | $ 897 |
Employee Benefit Plans - Summ_6
Employee Benefit Plans - Summary of weighted average assumptions used to determine projected benefit obligation and net benefit cost (Details 5) - Retirement Income Plan | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Projected Benefit Obligation: | |||
Discount rate | 4.65% | 4.00% | 4.45% |
Rate of compensation increase | |||
Net Benefit Cost: | |||
Discount rate | 4.00% | 4.45% | 4.70% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Rate of compensation increase |
Employee Benefit Plans - Summ_7
Employee Benefit Plans - Summary of plan weighted average asset allocation by asset category along with target allocation for 2019 (Details 6) - Retirement Income Plan | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 3.00% | 2.80% |
Cash and cash equivalents | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 0.00% | |
Cash and cash equivalents | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 3.00% | |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 29.10% | 20.70% |
Fixed income securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 15.00% | |
Fixed income securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 100.00% | |
Domestic Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 39.50% | 23.80% |
Domestic Equity Securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 0.00% | |
Domestic Equity Securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 40.00% | |
International Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 19.00% | 42.40% |
International Equity Securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 0.00% | |
International Equity Securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 30.00% | |
Investments measured at net asset value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 9.40% | 10.30% |
Investments measured at net asset value | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 0.00% | |
Investments measured at net asset value | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 12.00% |
Employee Benefit Plans - Summ_8
Employee Benefit Plans - Summary of plan assets using fair value hierarchy (Details 7) - Retirement Income Plan - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at Net Asset Value | $ 3,600 | $ 3,910 | |
Investments at Fair Value | 38,364 | 38,050 | |
Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [1] | 1,140 | 1,084 |
Cash and Cash Equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [1] | 0 | 0 |
Cash and Cash Equivalents | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [1] | 1,140 | 1,084 |
Fixed Income Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [2] | 0 | 0 |
Fixed Income Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [2] | 11,163 | 9,064 |
Fixed Income Securities | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [2] | 11,163 | 9,064 |
Domestic Equity Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [3] | 5,602 | 5,930 |
Domestic Equity Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [3] | 9,581 | 10,173 |
Domestic Equity Securities | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [3] | 15,182 | 16,103 |
International Equity Securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [4] | 0 | 0 |
International Equity Securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [4] | 7,279 | 7,889 |
International Equity Securities | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | [4] | 7,279 | 7,889 |
Investment | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 34,764 | 34,140 | |
Investment | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | 6,742 | 7,014 | |
Investment | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets in the Fair Value Hierarchy | $ 28,023 | $ 27,126 | |
[1] | Cash and cash equivalents, which are used to pay benefits and plan administrative expenses, are held in Rule 2a-7 money market funds. | ||
[2] | Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. | ||
[3] | Domestic equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. | ||
[4] | International equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. |
Employee Benefit Plans - Summ_9
Employee Benefit Plans - Summary of future benefits payable for Retirement Income Plan over next ten years (Details 8) - Retirement Income Plan $ in Thousands | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 2,693 |
2,020 | 2,741 |
2,021 | 2,828 |
2,022 | 2,868 |
2,023 | 2,886 |
2024-2028 | $ 14,971 |
Employee Benefit Plans - Sum_10
Employee Benefit Plans - Summary of changes in non vested restricted shares (Details 9) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares | |||
Non-vested shares at January 1 | 2,736,365 | 3,217,075 | |
Granted | 522,800 | 563,065 | |
Vested | (750,880) | (900,051) | |
Forfeited | (156,135) | (143,724) | |
Non-vested shares at December 31 | 2,352,150 | 2,736,365 | 3,217,075 |
Weighted Average Grant-Date Fair Value | |||
Non-vested shares at January 1 | $ 14.50 | $ 12.91 | |
Granted | 25.13 | 21.66 | $ 10.77 |
Vested | 13.06 | 13.34 | |
Forfeited | 17.10 | 14.25 | |
Non-vested shares at December 31 | $ 17.15 | $ 14.50 | $ 12.91 |
Employee Benefit Plans (Detail
Employee Benefit Plans (Detail Textuals) - Retirement Income Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation exceeds fair value of the plan assets | $ (5,053) | $ (8,347) | |
Employer contribution | 5,000 | 0 | |
Accumulated other comprehensive loss, before tax | $ 1,888 | $ (1,650) | $ 1,240 |
Expected long-term return assumption | 7.00% | 7.00% | 7.00% |
Percentage of investment for long term growth | 70.00% | ||
Percentage for near term benefit payments | 30.00% |
Employee Benefit Plans (Detai_2
Employee Benefit Plans (Detail Textuals 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Proceeds from benefit plan refinancing arrangement | $ 2,218,000 | |
Supplemental Retirement Plan ('SERP') | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Variable life insurance policies investment amount | 47,900,000 | $ 51,000,000 |
Fair value of plan assets | 22,815,000 | 23,463,000 |
Trading (losses) gains related to the SERP assets | (2,282,000) | $ 3,156,000 |
Proceeds from benefit plan refinancing arrangement | 2,218,000 | |
Life insurance cash surrender value | 1,182,000 | |
Life insurance tax-free gains | $ 1,020,000 |
Employee Benefit Plans (Detai_3
Employee Benefit Plans (Detail Textuals 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Benefit Plans | |||
Minimum percentage of annual contribution per employee | 1.00% | ||
Maximum percentage of annual contribution per employee | 25.00% | ||
Percentage of employer matching contribution | 50.00% | ||
Minimum number of service period for employees to be fully vested | 3 years | ||
Threshold limit percentage of employee compensation | 6.00% | ||
Percentage of matching contributions | 100.00% | ||
Annual compensation | $ 1 | ||
Employer contribution | $ 5,704,000 | $ 4,509,000 | $ 3,250,000 |
Employee Benefit Plans (Detai_4
Employee Benefit Plans (Detail Textuals 3) - Stock Incentive Plans - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of stock options and restricted stock issued | 10 years | ||
Common stock reserved for future issuance | 8,000,000 | ||
Number of shares available for grants | 5,402,634 | ||
Pre-tax stock-based employee compensation expense | $ 9,419,000 | $ 11,090,000 | $ 10,218,000 |
After tax stock-based employee compensation expense | $ 7,111,000 | $ 7,042,000 | $ 6,488,000 |
Employee Benefit Plans (Detai_5
Employee Benefit Plans (Detail Textuals 4) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits for compensation expense for restricted stock awards | $ 427,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Minimum ownership considered major owner | 10.00% | ||
Percentage of fair market value of the common stock for major owners | 110.00% | ||
Vesting period | 5 years | ||
Expiration period of the stock | 10 years | ||
Expiration period of the stock of majority owners | 5 years | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation award, vesting percentage | 20.00% | ||
Weighted average grant date fair value (in dollars per share) | $ 25.13 | $ 21.66 | $ 10.77 |
Total fair value of shares vested | $ 16,483,000 | $ 19,480,000 | $ 9,751,000 |
Tax benefits for compensation expense for restricted stock awards | 1,899,000 | $ 2,803,000 | $ 427,000 |
Unrecognized compensation cost related to non-vested restricted shares | $ 43,498,000 | ||
Period for recognition of compensation cost related to non-vested restricted shares | 3 years 2 months 12 days |
Related Party Transactions (Det
Related Party Transactions (Detail Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Voting power held by entity | one vote | one vote | |
Marine Products | |||
Related Party Transaction [Line Items] | |||
Spinoff transaction percentage | 100.00% | ||
Transition Support Services Agreement | Marine Products | |||
Related Party Transaction [Line Items] | |||
Aggregate amount of services received | $ 873,000 | $ 849,000 | $ 739,000 |
Receivable (payable) due from (to) related party | 28,000 | 47,000 | |
Other | |||
Related Party Transaction [Line Items] | |||
Products or services from suppliers | 1,467,000 | 1,372,000 | 890,000 |
Administrative services and rent | $ 101,000 | 104,000 | 111,000 |
Voting power held by entity | excess of fifty percent | ||
255 RC, LLC | Marine Products | |||
Related Party Transaction [Line Items] | |||
Joint venture ownership interest percentage | 50.00% | ||
Operating lease agreement term | 5 years | ||
Investment in joint venture | $ 2,554,000 | ||
Rent and allocable fixed cost for corporate aircraft | $ 199,000 | $ 197,000 | $ 197,000 |
Business Segment Information (D
Business Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total Revenues | $ 1,721,005 | $ 1,595,227 | $ 728,974 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 1,721,005 | 1,595,227 | 728,974 |
Operating Segments | Technical Services | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 1,647,213 | 1,538,351 | 679,654 |
Operating Segments | Technical Services | Pressure Pumping | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 945,919 | 993,538 | 336,550 |
Operating Segments | Technical Services | Downhole Tools | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 423,811 | 294,606 | 169,754 |
Operating Segments | Technical Services | Coiled Tubing | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 100,049 | 109,462 | 70,511 |
Operating Segments | Technical Services | Nitrogen | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 49,198 | 38,961 | 37,172 |
Operating Segments | Technical Services | Snubbing | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 17,818 | 23,838 | 18,903 |
Operating Segments | Technical Services | All Other Technical Services | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 110,418 | 77,946 | 46,764 |
Operating Segments | Support Services | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 73,792 | 56,876 | 49,320 |
Operating Segments | Support Services | Rental Tools | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 50,809 | 30,264 | 21,443 |
Operating Segments | Support Services | All Other Support Services | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | $ 22,983 | $ 26,612 | $ 27,877 |
Business Segment Information -
Business Segment Information - Summary of financial information concerning reportable segments (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,721,005 | $ 1,595,227 | $ 728,974 |
Operating profit (loss) | 210,030 | 226,217 | (238,942) |
Capital expenditures | 242,610 | 117,509 | 33,938 |
Depreciation and amortization | 163,120 | 163,537 | 217,258 |
Identifiable assets | 1,199,580 | 1,147,224 | 1,035,452 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,721,005 | 1,595,227 | 728,974 |
Operating Segments | Technical Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,647,213 | 1,538,351 | 679,654 |
Operating profit (loss) | 216,703 | 251,476 | (203,804) |
Capital expenditures | 230,262 | 106,131 | 28,380 |
Depreciation and amortization | 150,508 | 145,507 | 191,181 |
Identifiable assets | 925,305 | 896,803 | 733,008 |
Operating Segments | Support Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | 73,792 | 56,876 | 49,320 |
Operating profit (loss) | 4,612 | (12,228) | (26,021) |
Capital expenditures | 10,364 | 9,949 | 2,928 |
Depreciation and amortization | 12,174 | 17,570 | 25,606 |
Identifiable assets | 78,413 | 75,568 | 76,876 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Operating profit (loss) | (14,629) | (17,561) | (17,037) |
Capital expenditures | 1,984 | 1,429 | 2,630 |
Depreciation and amortization | 438 | 460 | 471 |
Identifiable assets | 195,862 | 174,853 | 225,568 |
Gain (loss) on disposition of assets, net | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Operating profit (loss) | 3,344 | 4,530 | 7,920 |
Capital expenditures | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 |
Identifiable assets | $ 0 | $ 0 | $ 0 |
Business Segment Information _2
Business Segment Information - Summary of selected information between United States and all international locations (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total Revenues | $ 1,721,005 | $ 1,595,227 | $ 728,974 |
United States Revenues | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 1,630,569 | 1,539,462 | 677,755 |
International Revenues | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | $ 90,436 | $ 55,765 | $ 51,219 |
Business Segment Information _3
Business Segment Information (Detail Textuals) | 12 Months Ended |
Dec. 31, 2018Segment | |
Business Segment Information | |
Number of reportable segments | 2 |
Percentage of assets related to international operations | less than 10 percent |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Allowance for doubtful accounts | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 4,471 | $ 2,553 | $ 10,605 | |
Charged to Costs and Expenses | 588 | 1,441 | 6,021 | |
Net (Deductions) Recoveries | [1] | (246) | 477 | (14,073) |
Balance at End of Period | 4,813 | 4,471 | 2,553 | |
Deferred tax asset valuation allowance | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 3,994 | 356 | 276 | |
Charged to Costs and Expenses | [2] | 0 | 3,638 | 80 |
Net (Deductions) Recoveries | (3,549) | 0 | 0 | |
Balance at End of Period | 445 | 3,994 | 356 | |
Reserve for obsolete or slow moving inventory | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 3,875 | 3,052 | 2,588 | |
Charged to Costs and Expenses | 8,088 | 5,869 | 6,401 | |
Net (Deductions) Recoveries | [3] | (1,794) | (5,046) | (5,937) |
Balance at End of Period | $ 10,169 | $ 3,875 | $ 3,052 | |
[1] | Net (deductions) recoveries in the allowance for doubtful accounts principally reflect the write-off of previously reserved accounts net of recoveries. | |||
[2] | The valuation allowance for deferred tax assets is increased or decreased each year to reflect the state net operating losses, foreign tax credits and capital losses that management believes will not be utilized before they expire. | |||
[3] | Net (deductions) recoveries in the reserve for obsolete or slow moving inventory principally reflect the write-off and/ or disposal of previously reserved inventory. |