Parker Drilling (PKDC) 10-Q 2 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 27, 2018
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Trading Symbol	PKD
Entity Registrant Name	PARKER DRILLING CO /DE/
Entity Central Index Key	76,321
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		139,385,824

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 118,315	$ 141,549
Accounts and Notes Receivable, net of allowance for bad debts of $7,596 at March 31, 2018 and $7,564 at December 31, 2017	126,685	122,511
Rig materials and supplies	31,822	31,415
Other current assets	20,438	22,361
Total current assets	297,260	317,836
Property, plant and equipment, net of accumulated depreciation of $1,353,509 at March 31, 2018 and $1,343,105 at December 31, 2017	610,744	625,771
Goodwill (Note 2)	6,708	6,708
Intangible assets, net (Note 2)	6,551	7,128
Deferred income taxes	1,826	1,284
Other noncurrent assets	28,041	31,552
Total assets	951,130	990,279
Current liabilities:
Accounts payable and accrued liabilities	90,372	99,246
Accrued income taxes	4,191	4,430
Total current liabilities	94,563	103,676
Long-term debt, net of unamortized debt issuance costs of $6,596 at March 31, 2018 and $7,029 at December 31, 2017	578,404	577,971
Other long-term liabilities	11,110	12,433
Long-term deferred tax liability	78	78
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred Stock, $1.00 par value, 1,942,000 shares authorized, 7.25% Series A Mandatory Convertible, 500,000 shares issued and outstanding	500	500
Common Stock, $0.16 2/3 par value, authorized 280,000,000 shares, issued and outstanding, 139,249,563 shares (138,935,734 shares in 2017)	23,192	23,140
Capital in excess of par value	744,644	744,746
Accumulated deficit	(497,549)	(468,753)
Accumulated other comprehensive income (loss)	(3,812)	(3,512)
Total stockholders' equity	266,975	296,121
Total liabilities and stockholders' equity	$ 951,130	$ 990,279

CONSOLIDATED CONDENSED BALANCE3

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for bad debts	$ 7,596	$ 7,564
Accumulated depreciation and amortization on property, plant and equipment	1,353,509	1,343,105
Debt issuance costs	$ 6,596	$ 7,029
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	1,942,000	1,942,000
Preferred dividend percentage	7.25%	7.25%
Preferred stock, shares issued	500,000	500,000
Preferred stock, shares outstanding	500,000	500,000
Common stock, par value (in dollars per share)	$ 0.166667	$ 0.166667
Common stock, shares authorized	280,000,000	280,000,000
Common stock, shares issued	139,249,563	138,935,734
Common stock, shares outstanding	139,249,563	138,935,734

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Revenues	$ 109,675	$ 98,271
Expenses:
Operating expenses	91,534	85,814
Depreciation and amortization	28,549	32,202
Total expenses	120,083	118,016
Total operating gross margin (loss)	(10,408)	(19,745)
General and administrative expense	(6,201)	(7,040)
Gain (loss) on disposition of assets, net	343	(352)
Total operating income (loss)	(16,266)	(27,137)
Other income (expense):
Interest expense	(11,240)	(10,870)
Interest income	23	10
Other	291	530
Total other income (expense)	(10,926)	(10,330)
Income (loss) before income taxes	(27,192)	(37,467)
Income tax expense (benefit)	1,604	2,342
Net income (loss)	(28,796)	(39,809)
Less: Mandatory convertible preferred stock dividend	906	0
Net income (loss) available to common stockholders	$ (29,702)	$ (39,809)
Basic earnings (loss) per common share (in dollars per share)	$ (0.21)	$ (0.31)
Diluted earnings (loss) per common share (in dollars per share)	$ (0.21)	$ (0.31)
Number of common shares used in computing earnings per share:
Basic (in shares)	138,765,995	130,142,527
Diluted (in shares)	138,765,995	130,142,527

CONSOLIDATED CONDENSED STATEME5

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Comprehensive income (loss):
Net income (loss)	$ (28,796)	$ (39,809)
Other comprehensive income (loss), net of tax:
Currency translation difference on related borrowings	276	83
Currency translation difference on foreign currency net investments	(576)	763
Total other comprehensive income (loss), net of tax:	(300)	846
Comprehensive income (loss) attributable to controlling interest	$ (29,096)	$ (38,963)

CONSOLIDATED CONDENSED STATEME6

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ (28,796)	$ (39,809)
Adjustments to reconcile net income (loss):
Depreciation and amortization	28,549	32,202
(Gain) loss on disposition of assets	(343)	352
Deferred tax expense (benefit)	(543)	(642)
Expenses not requiring cash	1,107	2,150
Change in assets and liabilities:
Accounts and notes receivable	(4,179)	(4,874)
Other assets	10,011	(2,692)
Accounts payable and accrued liabilities	(17,962)	(15,937)
Accrued income taxes	(48)	1,665
Net cash provided by (used in) operating activities	(12,204)	(27,585)
Cash flows from investing activities:
Capital expenditures	(8,924)	(14,451)
Proceeds from the sale of assets	70	46
Net cash provided by (used in) investing activities	(8,854)	(14,405)
Cash flows from financing activities:
Payments of debt issuance costs	(1,148)	0
Preferred stock dividend	(906)	0
Shares surrendered in lieu of tax	(122)	(352)
Proceeds from the issuance of common stock	0	25,200
Proceeds from the issuance of mandatory convertible preferred stock	0	50,000
Payment of equity issuance costs	0	(2,861)
Net cash provided by (used in) financing activities	(2,176)	71,987
Net increase (decrease) in cash and cash equivalents	(23,234)	29,997
Cash and cash equivalents at beginning of period	141,549	119,691
Cash and cash equivalents at end of period	118,315	149,688
Supplemental cash flow information:
Interest paid	20,588	20,588
Income taxes paid	$ 1,996	$ 1,551

CONSOLIDATED CONDENSED STATEME7

CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2018 - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Stock	Common Stock	Treasury Stock	Capital in Excess of Par Value	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Stockholders' equity, beginning balance at Dec. 31, 2017	$ 296,121	$ 500	$ 23,310	$ (170)	$ 744,746	$ (468,753)	$ (3,512)
Shares outstanding, beginning balance at Dec. 31, 2017	139,436
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Activity in employees’ stock plans	$ (123)		52	0	(175)
Activity in employees’ stock plans (in shares)	314
Amortization of stock-based awards	$ 979				979
Mandatory convertible preferred stock dividend	(906)				(906)
Comprehensive Income:
Net income (loss)	(28,796)					(28,796)
Other comprehensive income (loss)	(300)						(300)
Stockholders' equity, ending balance at Mar. 31, 2018	$ 266,975	$ 500	$ 23,362	$ (170)	$ 744,644	$ (497,549)	$ (3,812)
Shares outstanding, ending balance at Mar. 31, 2018	139,750

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1 - Summary of Significant Accounting Policies The Consolidated Condensed Financial Statements as of March 31, 2018 and for the three months ended March 31, 2018 and 2017 are unaudited. In the opinion of Parker Drilling Company (Parker Drilling or the Company), these consolidated condensed financial statements include all adjustments, which, unless otherwise disclosed, are of a normal recurring nature, necessary for their fair presentation for the periods presented. The results for interim periods are not necessarily indicative of results for the entire year. The consolidated condensed financial statements presented herein should be read in connection with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017 . Nature of Operations — Our business is comprised of two business lines: (1) Drilling Services and (2) Rental Tools Services. We report our Drilling Services business as two reportable segments: (1) U.S. (Lower 48) Drilling and (2) International & Alaska Drilling. We report our Rental Tools Services business as two reportable segments: (1) U.S. Rental Tools and (2) International Rental Tools. For more details see Note 11 - Reportable Segments . Consolidation — The consolidated condensed financial statements include the accounts of the Company and subsidiaries in which we exercise control or have a controlling financial interest, including entities, if any, in which the Company is allocated a majority of the entity’s losses or returns, regardless of ownership percentage. If a subsidiary of Parker Drilling has a 50 percent interest in an entity but Parker Drilling’s interest in the subsidiary or the entity does not meet the consolidation criteria described above, then that interest is accounted for under the equity method. Reclassifications — Certain reclassifications have been made to prior period amounts to conform to the current period presentation. These reclassifications did not materially affect our consolidated financial results. Use of Estimates — The preparation of our consolidated condensed financial statements in accordance with accounting policies generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect our reported amounts of assets and liabilities, our disclosure of contingent assets and liabilities at the date of the consolidated condensed financial statements, and our revenues and expenses during the periods reported. Estimates are typically used when accounting for certain significant items such as legal or contractual liability accruals, mobilization and deferred mobilization, self-insured medical/dental plans, income taxes and valuation allowance, and other items requiring the use of estimates. Estimates are based on a number of variables which may include third party valuations, historical experience, where applicable, and assumptions that we believe are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ from management estimates. Purchase Price Allocation — We allocate the purchase price of an acquired business to its identifiable assets and liabilities in accordance with the acquisition method based on estimated fair values at the transaction date. Transaction and integration costs associated with an acquisition are expensed as incurred. The excess of the purchase price over the amount allocated to the assets and liabilities, if any, is recorded as goodwill. We use all available information to estimate fair values, including quoted market prices, the carrying value of acquired assets, and widely accepted valuation techniques such as discounted cash flows. We typically engage third-party appraisal firms to assist in fair value determination of inventories, identifiable intangible assets, and any other significant assets or liabilities. Judgments made in determining the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact our results of operations. Goodwill — We perform our annual goodwill impairment review during the fourth quarter, as of October 1, and more frequently if negative conditions or other triggering events arise. The quantitative impairment test we perform for goodwill utilizes certain assumptions, including forecasted revenues and costs assumptions. See Note 2 - Goodwill and Intangible Assets for further discussion. Intangible Assets — Our intangible assets are related to trade names, customer relationships, and developed technology, which were acquired through acquisition and are classified as definite lived intangibles, that are generally amortized over a weighted average period of approximately three to six years. We assess the recoverability of the unamortized balance of our intangible assets when indicators of impairment are present based on expected future profitability and undiscounted expected cash flows and their contribution to our overall operations. Should the review indicate that the carrying value is not fully recoverable, the excess of the carrying value over the fair value of the intangible assets would be recognized as an impairment loss. See Note 2 - Goodwill and Intangible Assets for further discussion. Impairment — We evaluate the carrying amounts of long-lived assets for potential impairment when events occur or circumstances change that indicate the carrying values of such assets may not be recoverable. We evaluate recoverability by determining the undiscounted estimated future net cash flows for the respective asset groups identified. If the sum of the estimated undiscounted cash flows is less than the carrying value of the asset group, we measure the impairment as the amount by which the assets’ carrying value exceeds the fair value of such assets. Management considers a number of factors such as estimated future cash flows from the assets, appraisals and current market value analysis in determining fair value. Assets are written down to fair value if the final estimate of current fair value is below the net carrying value. The assumptions used in the impairment evaluation are inherently uncertain and require management judgment. Income Taxes — Income taxes are accounted for under the asset and liability method and have been provided for based upon tax laws and rates in effect in the countries in which operations are conducted and income or losses are generated. There is little or no expected relationship between the provision for or benefit from income taxes and income or loss before income taxes as the countries in which we operate have taxation regimes that vary not only with respect to nominal rate, but also in terms of the availability of deductions, credits, and other benefits. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the temporary differences are expected to be recovered or settled and the effect of changes in tax rates is recognized in income in the period in which the change is enacted. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. In order to determine the amount of deferred tax assets or liabilities, as well as the valuation allowances, we must make estimates and assumptions regarding future taxable income, where rigs will be deployed and other matters. Changes in these estimates and assumptions, including changes in tax laws and other changes impacting our ability to recognize the underlying deferred tax assets, could require us to adjust the valuation allowances. The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized and changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Earnings (Loss) Per Share (EPS) — Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. The effects of dilutive securities, stock options, unvested restricted stock, assumed conversion of mandatory convertible preferred stock and convertible debt are included in the diluted EPS calculation, when applicable. Concentrations of Credit Risk — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade receivables with a variety of national and international oil and natural gas companies. We generally do not require collateral on our trade receivables. We depend on a limited number of significant customers. Our largest customer, Exxon Neftegas Limited (ENL), constituted approximately 28.6 percent of our consolidated revenues for the three months ended March 31, 2018 . Excluding reimbursable revenues of $12.1 million , ENL constituted approximately 20.1 percent of our total consolidated revenues for the three months ended March 31, 2018 . We had deposits in domestic banks in excess of federally insured limits of approximately $76.5 million and $97.6 million , as of March 31, 2018 and December 31, 2017 , respectively. In addition, we had uninsured deposits in foreign banks of $45.1 million and $45.6 million as of March 31, 2018 and December 31, 2017 , respectively. Legal and Investigative Matters — We accrue estimates of the probable and estimable costs for the resolution of certain legal and investigative matters. We do not accrue any amounts for other matters for which the liability is not probable and reasonably estimable. Generally, the estimate of probable costs related to these matters is developed in consultation with our legal advisors. The estimates take into consideration factors such as the complexity of the issues, litigation risks and settlement costs. If the actual settlement costs, final judgments, or fines, after appeals, differ from our estimates, our future financial results may be adversely affected.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Note 2 - Goodwill and Intangible Assets We account for business combinations using the acquisition method of accounting. Under this method, assets and liabilities, including any remaining noncontrolling interests, are recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of assets acquired, net of liabilities assumed, plus the value of any noncontrolling interests, is recognized as goodwill. We perform our annual goodwill impairment review during the fourth quarter, as of October 1, and more frequently if negative conditions or other triggering events arise. Should current market conditions worsen or persist for an extended period of time, an impairment of the carrying value of our goodwill could occur. All of the Company’s goodwill and intangible assets are allocated to the International Rental Tools segment. Goodwill The change in the carrying amount of goodwill for the period ended March 31, 2018 is as follows: Dollars in thousands Goodwill Balance at December 31, 2017 $ 6,708 Additions — Balance at March 31, 2018 $ 6,708 Of the total amount of goodwill recognized, zero is expected to be deductible for income tax purposes. Intangible Assets Intangible Assets consist of the following: Balance at March 31, 2018 Dollars in thousands Estimated Useful Life (Years) Gross Carrying Amount Write-off Due to Disposal Accumulated Amortization Net Carrying Amount Amortized intangible assets: Developed technology 6 $ 11,630 $ — $ (5,815 ) $ 5,815 Trade names 5 4,940 (332 ) (3,872 ) 736 Total amortized intangible assets $ 16,570 $ (332 ) $ (9,687 ) $ 6,551 Amortization expense was $0.6 million and $0.7 million for the three months ended March 31, 2018 and 2017 , respectively. Our remaining intangibles amortization expense for the next five years is presented below: Dollars in thousands Expected future intangible amortization expense 2018 $ 1,730 2019 $ 2,306 2020 $ 2,030 2021 $ 485 Beyond 2021 $ —

Long-term Debt

Long-term Debt	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Long-term Debt	Note 3 - Long-term Debt The following table illustrates the Company’s current debt portfolio as of March 31, 2018 and December 31, 2017 : Dollars in thousands March 31, December 31, 6.75% Senior Notes, due July 2022 $ 360,000 $ 360,000 7.50% Senior Notes, due August 2020 225,000 225,000 Total principal 585,000 585,000 Less: unamortized debt issuance costs (6,596 ) (7,029 ) Total long-term debt 578,404 577,971 6.75% Senior Notes, due July 2022 On January 22, 2014 , we issued $360.0 million aggregate principal amount of 6.75% Senior Notes due July 2022 ( 6.75% Notes) pursuant to an Indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. The 6.75% Notes are general unsecured obligations of the Company and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 6.75% Notes are jointly and severally guaranteed by all of our subsidiaries that guarantee indebtedness under the Second Amended and Restated Senior Secured Credit Agreement, as amended from time-to-time (2015 Secured Credit Agreement) and our 7.50% Senior Notes, due 2020 ( 7.50% Notes, and collectively with the 6.75% Notes, the Senior Notes). Interest on the 6.75% Notes is payable on January 15 and July 15 of each year, beginning July 15, 2014. Debt issuance costs related to the 6.75% Notes of approximately $7.6 million ( $4.4 million net of amortization as of March 31, 2018 ) are being amortized over the term of the notes using the effective interest rate method. We may redeem all or a part of the 6.75% Notes upon appropriate notice, at redemption prices decreasing each year after January 15, 2018 to par beginning January 15, 2020. As of March 31, 2018 , the redemption price is 103.375 percent and we have not made any redemptions to date. If we experience certain changes in control, we must offer to repurchase the 6.75% Notes at 101.0 percent of the aggregate principal amount, plus accrued and unpaid interest and additional interest, if any, to the date of repurchase. The Indenture limits our ability and the ability of certain subsidiaries to: (i) sell assets, (ii) pay dividends or make other distributions on capital stock or redeem or repurchase capital stock or subordinated indebtedness, (iii) make investments, (iv) incur or guarantee additional indebtedness, (v) create or incur liens, (vi) enter into sale and leaseback transactions, (vii) incur dividend or other payment restrictions affecting subsidiaries, (viii) merge or consolidate with other entities, (ix) enter into transactions with affiliates, and (x) engage in certain business activities. Additionally, the Indenture contains certain restrictive covenants designating certain events as Events of Default. These covenants are subject to a number of important exceptions and qualifications. 7.50% Senior Notes, due August 2020 On July 30, 2013 , we issued $225.0 million aggregate principal amount of the 7.50% Notes pursuant to an Indenture between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee. The 7.50% Notes are general unsecured obligations of the Company and rank equal in right of payment with all of our existing and future senior unsecured indebtedness. The 7.50% Notes are jointly and severally guaranteed by all of our subsidiaries that guarantee indebtedness under the 2015 Secured Credit Agreement and the 6.75% Notes. Interest on the 7.50% Notes is payable on February 1 and August 1 of each year, beginning February 1, 2014. Debt issuance costs related to the 7.50% Notes of approximately $5.6 million ( $2.2 million , net of amortization as of March 31, 2018 ) are being amortized over the term of the notes using the effective interest rate method. We may redeem all or a part of the 7.50% Notes upon appropriate notice, at redemption prices decreasing each year after August 1, 2016 to par beginning August 1, 2018. As of March 31, 2018 , the redemption price is 101.875 percent and we have not made any redemptions to date. If we experience certain changes in control, we must offer to repurchase the 7.50% Notes at 101.0 percent of the aggregate principal amount, plus accrued and unpaid interest and additional interest, if any, to the date of repurchase. The Indenture limits our ability and the ability of certain subsidiaries to: (i) sell assets, (ii) pay dividends or make other distributions on capital stock or redeem or repurchase capital stock or subordinated indebtedness, (iii) make investments, (iv) incur or guarantee additional indebtedness, (v) create or incur liens, (vi) enter into sale and leaseback transactions, (vii) incur dividend or other payment restrictions affecting subsidiaries, (viii) merge or consolidate with other entities, (ix) enter into transactions with affiliates, and (x) engage in certain business activities. Additionally, the Indenture contains certain restrictive covenants designating certain events as Events of Default. These covenants are subject to a number of important exceptions and qualifications. 2015 Secured Credit Agreement On January 26, 2015 we entered into the 2015 Secured Credit Agreement. The 2015 Secured Credit Agreement was originally comprised of a $200.0 million revolving credit facility (Revolver), which was reduced to $80.0 million in February 2018. The 2015 Secured Credit Agreement formerly included financial maintenance covenants, including a Leverage Ratio, Consolidated Interest Coverage Ratio, Senior Secured Leverage Ratio, and Asset Coverage Ratio, many of which were suspended beginning in September 2015. On February 14, 2018, we executed the Fifth Amendment to the 2015 Secured Credit Agreement (the Fifth Amendment) which modified the credit facility to an Asset-Based Lending (ABL) structure and reduced the size of the Revolver from $100.0 million to $80.0 million . The Fifth Amendment eliminated the financial maintenance covenants previously in effect and replaced them with a liquidity covenant of $30.0 million and a monthly borrowing base calculation based on eligible rental equipment and eligible domestic accounts receivable. The liquidity covenant requires the Company to maintain a minimum of $30.0 million of liquidity (defined as availability under the borrowing base and cash on hand), of which $15.0 million is restricted, resulting in a maximum availability at any one time of the lesser of (a) an amount equal to our borrowing base minus $15.0 million , or (b) $65.0 million . Our ability to borrow under the 2015 Secured Credit Agreement is determined by reference to our borrowing base. The Fifth Amendment also allows for refinancing our existing Senior Notes with either secured or unsecured debt, adds the ability for the Company to designate certain of its subsidiaries as “Designated Borrowers” and removes our availability to make certain restricted payments. The debt issuance costs incurred relating to the Fifth Amendment were $1.1 million . Debt issuance costs remaining as of March 31, 2018 were $1.6 million which are being amortized through January 2020 on a straight line basis. Our obligations under the 2015 Secured Credit Agreement are guaranteed by substantially all of our direct and indirect domestic subsidiaries, other than immaterial subsidiaries and subsidiaries generating revenues primarily outside the United States, each of which has executed guaranty agreements, and are secured by first priority liens on our accounts receivable, specified rigs including barge rigs in the GOM and land rigs in Alaska, certain U.S.-based rental equipment of the Company and its subsidiary guarantors and the equity interests of certain of the Company’s subsidiaries. In addition to the liquidity covenant and borrowing base requirements, the 2015 Secured Credit Agreement contains customary affirmative and negative covenants, such as limitations on indebtedness and liens, and restrictions on entry into certain affiliate transactions and payments (including certain payments of dividends). As of March 31, 2018 , we were in compliance with all covenants contained in the 2015 Secured Credit Agreement. Our Revolver is available for general corporate purposes and to support letters of credit. Interest on Revolver loans accrues at a Base Rate plus an Applicable Rate or LIBOR plus an Applicable Rate. Revolving loans are available subject to a monthly borrowing base calculation. As of March 31, 2018 the borrowing base under the $80.0 million Revolver was $72.6 million , which was further reduced by $15.0 million of restricted liquidity and $5.7 million in supporting letters of credit outstanding, resulting in availability under the revolver of $51.9 million . There were no amounts drawn on the Revolver as of March 31, 2018 .

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 4 - Fair Value of Financial Instruments Certain of our assets and liabilities are required to be measured at fair value on a recurring basis. For purposes of recording fair value adjustments for certain financial and non-financial assets and liabilities, and determining fair value disclosures, we estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability. The fair value measurement and disclosure requirements of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic No. 820, Fair Value Measurement and Disclosures requires inputs that we categorize using a three-level hierarchy, from highest to lowest level of observable inputs, as follows: • Level 1 — Unadjusted quoted prices for identical assets or liabilities in active markets; • Level 2 — Direct or indirect observable inputs, including quoted prices or other market data, for similar assets or liabilities in active markets or identical assets or liabilities in less active markets; and • Level 3 — Unobservable inputs that require significant judgment for which there is little or no market data. When multiple input levels are required for a valuation, we categorize the entire fair value measurement according to the lowest level of input that is significant to the entire measurement even though we may also have utilized significant inputs that are more readily observable. The amounts reported in our consolidated condensed balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value. Fair value of our debt instruments is determined using Level 2 inputs. Fair values and related carrying values of our debt instruments were as follows for the periods indicated: March 31, 2018 December 31, 2017 Dollars in thousands Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt 6.75% Notes $ 360,000 $ 279,900 $ 360,000 $ 296,100 7.50% Notes 225,000 205,313 225,000 206,438 Total $ 585,000 $ 485,213 $ 585,000 $ 502,538 Market conditions could cause an instrument to be reclassified from Level 1 to Level 2, or Level 2 to Level 3. There were no transfers between levels of the fair value hierarchy or any changes in the valuation techniques used during the three months ended March 31, 2018 .

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 5 - Income Taxes We apply the accounting guidance related to accounting for uncertainty in income taxes. This guidance prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. At March 31, 2018 , we had a liability for unrecognized tax benefits of $5.8 million , primarily related to foreign operations, (all of which, if recognized, would favorably impact our effective tax rate.). At December 31, 2017 , we had a liability for unrecognized tax benefits of $5.4 million , all of which would favorably impact our effective tax rate upon recognition. In addition, we recognize interest and penalties that could be applied to uncertain tax positions in periodic income tax expense. As of March 31, 2018 and December 31, 2017 , we had approximately $2.2 million and $2.1 million , respectively, of accrued interest and penalties related to uncertain tax positions. Income tax expense was $1.6 million and $2.3 million for the three months ended March 31, 2018 and 2017 , respectively. Despite the pre-tax loss for the first quarter of 2018 , we recognized income tax expense due to the jurisdictional mix of income and loss during the quarter, along with our continued inability to recognize the benefits associated with certain losses as a result of valuation allowances.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 6 - Commitments and Contingencies We are a party to various lawsuits and claims arising out of the ordinary course of business. We estimate the range of our liability related to pending litigation when we believe the amount or range of loss can be estimated. We record our best estimate of a loss when the loss is considered probable. When a liability is probable and there is a range of estimated loss with no best estimate in the range, we record the minimum estimated liability related to the lawsuits or claims. As additional information becomes available, we assess the potential liability related to our pending litigation and claims and revise our estimates. Due to uncertainties related to the resolution of lawsuits and claims, the ultimate outcome may differ significantly from our estimates. In the opinion of management and based on liability accruals provided, our ultimate exposure with respect to these pending lawsuits and claims is not expected to have a material adverse effect on our consolidated condensed balance sheets or statements of cash flows, although they could have a material adverse effect on our consolidated condensed statements of operations for a particular reporting period.

Common and Preferred Stock Issu

Common and Preferred Stock Issuance	3 Months Ended
	Mar. 31, 2018
Class of Stock Disclosures [Abstract]
Common and Preferred Stock Issuances	Note 7 - Common and Preferred Stock Issuances In February 2017, we issued 12,000,000 shares of common stock, par value $0.16 2 / 3 per share, at the public offering price of $2.10 per share, and 500,000 shares of 7.25% Series A Mandatory Convertible Preferred Stock (Convertible Preferred Stock), par value $1.00 per share, with a liquidation preference of $100 per share, for total net proceeds of $72.3 million , after underwriting discount and offering expenses. The dividends on our Convertible Preferred Stock are payable on a cumulative basis when, as and if declared by our board of directors, or an authorized committee of our board of directors, at an annual rate of 7.25 percent of the liquidation preference of $100 per share . We may pay declared dividends in cash or, subject to certain limitations, in shares of our common stock, or in any combination of cash and shares of our common stock on March 31, June 30, September 30 and December 31 of each year, commencing on June 30, 2017 and ending on, and including, March 31, 2020. Unless converted earlier, each share of our Convertible Preferred Stock will automatically convert into between 41.4079 and 47.6190 shares of our common stock (respectively, the “minimum conversion rate” and “maximum conversion rate”), subject to anti-dilution adjustments. The number of shares of our common stock issuable on conversion will be determined based on the volume weighted-average price, of our common stock over the 20 consecutive trading day period beginning on, and including, the 23rd scheduled trading day immediately preceding March 31, 2020. Except in limited circumstances, at any time prior to March 31, 2020, a holder may convert Convertible Preferred Stock into shares of our common stock at the minimum conversion rate of 41.4079 shares of common stock per share of Convertible Preferred Stock, subject to anti-dilution adjustments. On February 28, 2018, the Company declared a cash dividend of $1.8125 per share of our Convertible Preferred Stock for the period beginning on December 31, 2017 and ending on March 30, 2018, which was paid on April 2, 2018 to mandatory convertible preferred stockholders of record as of March 15, 2018.

Earnings (Loss) Per share (EPS)

Earnings (Loss) Per share (EPS)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings (Loss) Per Share (EPS)	Note 8 - Earnings (Loss) Per Share (EPS) Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. The effects of dilutive securities, stock options, unvested restricted stock, convertible debt and equity are included in the diluted EPS calculation, when applicable. The following table represents the computation of earnings per share for the three months ended March 31, 2018 and 2017 , respectively: Three months ended March 31, 2018 Net Income (Loss) Available to Common Stockholders (Numerator) Shares (Denominator) Per-Share Amount Basic earnings (loss) per common share $ (29,702,000 ) 138,765,995 $ (0.21 ) Effect of dilutive securities: Restricted stock units (1) — — — Mandatory convertible preferred stock (2) $ — — — Diluted earnings (loss) per common share $ (29,702,000 ) 138,765,995 $ (0.21 ) Three months ended March 31, 2017 Net Income (Loss) Available to Common Stockholders (Numerator) Shares (Denominator) Per-Share Amount Basic earnings (loss) per common share $ (39,809,000 ) 130,142,527 $ (0.31 ) Effect of dilutive securities: Restricted stock units (1) — — — Mandatory convertible preferred stock (2) $ — — — Diluted earnings (loss) per common share $ (39,809,000 ) 130,142,527 $ (0.31 ) (1) For the three months ended March 31, 2018 and 2017 , respectively, all common shares potentially issuable in connection with outstanding restricted stock unit awards have been excluded from the calculation of diluted EPS as the Company incurred losses during the periods, therefore, inclusion of such potential common shares would be anti-dilutive. (2) Weighted average common shares issuable upon the assumed conversion of our Convertible Preferred Stock (as defined below) totaling 23,809,500 shares were excluded from the computation of diluted EPS as such shares would be anti-dilutive.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Accumulated Other Comprehensive Income	Note 9 - Accumulated Other Comprehensive Income Accumulated other comprehensive loss consisted of the following: Dollars in thousands Foreign Currency Items December 31, 2017 $ (3,512 ) Current period other comprehensive income (loss), net of tax (300 ) March 31, 2018 $ (3,812 ) There were no amounts reclassified out of accumulated other comprehensive loss for the three months ended March 31, 2018 .

Revenue from Contracts with Cus

Revenue from Contracts with Customers	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Note 10 - Revenue from Contracts with Customers We adopted the Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) effective January 1, 2018 using the modified retrospective implementation method. Accordingly, we have applied the five-step method outlined in Topic 606 for determining when and how revenue is recognized to all contracts that were not completed as of the date of adoption. Revenues for reporting periods beginning as of January 1, 2018 are presented under Topic 606, while prior period amounts have not been adjusted and continue to be reported under the previous revenue recognition guidance. For contracts that were modified before the effective date, we have considered the modification guidance within the new standard and determined that the revenue recognized and contract balances recorded prior to adoption for such contracts were not impacted. While Topic 606 requires additional disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, its adoption has not had a material impact on the measurement or recognition of our revenues. As part of the adoption no adjustments were needed to the consolidated balance sheets, statements of operations and statements of cash flows. Our business is comprised of two business lines: (1) Drilling Services and (2) Rental Tools Services. See Note 11 - Reportable Segments for further details on these business lines and revenue disaggregation amounts. Our Drilling Services and Rental Tools Services provided under each contract is a single performance obligation satisfied over time and comprised of a series of distinct time increments, or service periods. Total revenue is determined for each individual contract by estimating both fixed and variable consideration expected to be earned over the contract term. Fixed consideration generally relates to activities that are not distinct within the context of our contracts and is recognized on a straight-line basis over the contract term. Variable consideration generally relates to distinct service periods during the contract term and are recognized in the period when the services are performed. Our contract terms generally range from 2 to 60 months. The amount estimated for variable consideration may be constrained (reduced) and is only recognized as revenue to the extent that it is probable that a significant reversal of previously recognized revenue will not occur during the contract term. When determining if variable consideration should be constrained, management considers whether there are factors outside the Company’s control that could result in a significant reversal of revenue as well as the likelihood and magnitude of a potential reversal of revenue. These estimates are re-assessed each reporting period as required. Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on invoiced amounts are typically 30 days. Drilling Services Business Dayrate Revenues - Our drilling services contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The dayrate invoices billed to the customer are typically determined based on the varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly increment to which it relates within the contract term, and therefore, recognized in line with the contractual rate billed for the services provided for any given hour. Mobilization Revenues - We may receive fees (on either a fixed lump-sum or variable dayrate basis) for the mobilization of our rigs. These activities are not considered to be distinct within the context of the contract and therefore, the associated revenues are allocated to the overall performance obligation and recognized ratably over the initial term of the related drilling contract. We record a contract liability for mobilization fees received, which is amortized ratably to revenue as services are rendered over the initial term of the related drilling contract. The amortized amount is adjusted accordingly if the term of the initial contract is extended. Capital Modification Revenues - We may, from time to time, receive fees from our customers for capital improvements to our rigs to meet contractual requirements (on either a fixed lump-sum or variable dayrate basis). Such revenues are allocated to the overall performance obligation and recognized ratably over the initial term of the related drilling contract as these activities are not considered to be distinct within the context of our contracts. We record a contract liability for such fees and recognize them ratably as revenue over the initial term of the related drilling contract. Demobilization Revenues - We may receive fees (on either a fixed lump-sum or variable dayrate basis) for the demobilization of our rigs. Due to the inherent uncertainty regarding the realization, we have elected to not recognize demobilization revenues till the uncertainty is resolved. Therefore, demobilization revenues are recognized once the related performance obligations have been completed. Reimbursable revenues - We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request in accordance with a drilling contract or other agreement. Such reimbursable revenues are variable and subject to uncertainty, as the amounts received and timing thereof is highly dependent on factors outside of our control. Accordingly, reimbursable revenues are not included in the total transaction price until the uncertainty is resolved, which typically occurs when the related costs are incurred on behalf of a customer. We are generally considered a principal in such transactions and record the associated revenues at the gross amount billed to the customer in our consolidated condensed statements of operations. Such amounts are recognized once the services have been performed. Such amounts totaled $14.3 million and $ 15.3 million for the three months ended March 31, 2018 and 2017 , respectively. Rental Tools Services Business Dayrate Revenues - Our rental tools services contracts generally provide for payment on a dayrate basis depending on the rate for the tool defined in the contract. Such dayrate consideration is allocated to the distinct hourly increment it relates to within the contract term, and therefore, recognized in line with the contractual rate billed for the services provided for any given hour. Contract costs The following is a description of the different costs that we may incur for our contracts: Mobilization costs - These costs include certain direct and incremental costs incurred for mobilization of contracted rigs. These costs relate directly to a contract, enhance resources of the Company that will be used in satisfying its performance obligations in the future and are expected to be recovered. These costs are capitalized when incurred as a current or noncurrent asset (depending on the length of the initial contract term), and are amortized over the initial term of the related drilling contract. Demobilization costs - These costs are incurred for the demobilization of rigs at contract completion and are recognized as incurred during the demobilization process. Capital Modification costs - These costs are incurred for rig modifications or upgrades required for a contract, which are considered to be capital improvements, are capitalized as property, plant and equipment and depreciated over the estimated useful life of the improvement. Contract balances The following table provides information about contract assets and contract liabilities from contracts with customers: Dollars in thousands March 31, December 31, Contract assets - current (1) 915 973 Contract assets - noncurrent (1) — — Total contract assets $ 915 $ 973 Contract liabilities - current (2) $ (200 ) $ (641 ) Contract liabilities - noncurrent (2) (354 ) (380 ) Total contract liabilities $ (554 ) $ (1,021 ) (1) Contract assets - current and contract assets - noncurrent are included in other current assets and other noncurrent assets respectively, in our consolidated condensed balance sheet as of March 31, 2018 and December 31, 2017 . (2) Contract liabilities - current and contract liabilities - noncurrent are included in accounts payable and accrued liabilities and other long-term liabilities respectively, in our consolidated condensed balance sheet as of March 31, 2018 and December 31, 2017 . Contract assets relate to mobilization costs. During the three months ended March 31, 2018 , the amount of amortization of such costs was $1.0 million and there was no impairment loss in relation to capitalized costs. Contract liabilities relate to mobilization revenues and capital modification revenues, where, cash has been received but performance obligations have not been fulfilled. These liabilities are reduced and revenue is recognized as performance obligations are fulfilled. Contract assets and contract liabilities are netted together at the contract level and presented on a net basis as current or noncurrent contract asset or contract liability. Significant changes to contract assets and contract liabilities balances during the three months ended March 31, 2018 are shown below: Dollars in thousands Contract Contract Liabilities Balance at December 31, 2017 $ 973 $ (1,021 ) Decrease due to recognition of revenue that was included in the beginning contract liability balance (424 ) 467 Increase due to cash received, excluding amounts recognized as revenue during the period — — Increase due to revenue recognized during the period but contingent on future performance 366 — Balance at March 31, 2018 $ 915 $ (554 ) Transaction price allocated to the remaining performance obligations The following table includes revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. Three months ended March 31, 2018 Dollars in thousands Remaining 2018 2019 2020 Beyond 2020 Total Deferred revenue $965 $324 $239 $581 $2,109 The revenues included above consists of mobilization and capital modification revenues for both wholly and partially unsatisfied performance obligations, which has been estimated for purposes of allocating across the entire corresponding performance obligations. The amounts are derived from the specific terms within contracts that contain such provisions, and the expected timing for recognition of such revenue is based on the estimated start date and duration of each respective contract based on information known at March 31, 2018 . The actual timing of recognition of such amounts may vary due to factors outside of our control. We have applied the disclosure practical expedient in ASC 606-10-50-14A(b) and have not included estimated variable consideration related to wholly unsatisfied performance obligations or to distinct future time increments within our contracts.

Reportable Segments

Reportable Segments	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Reportable Segments	Note 11 - Reportable Segments Our business is comprised of two business lines: (1) Drilling Services and (2) Rental Tools Services. We report our Drilling Services business as two reportable segments: (1) U.S. (Lower 48) Drilling and (2) International & Alaska Drilling. We report our Rental Tools Services business as two reportable segments: (1) U.S. Rental Tools and (2) International Rental Tools. Within the four reportable segments, we have aggregated our Arctic, Eastern Hemisphere and Latin America business units under International & Alaska Drilling, one business unit under U.S. (Lower 48) Drilling, one business unit under U.S. Rental Tools and one business unit under International Rental Tools, for a total of six business units. The Company has aggregated each of its business units in one of the four reporting segments based on the guidelines of the FASB ASC Topic No. 280, Segment Reporting. We eliminate inter-segment revenues and expenses. We disclose revenues under the four reportable segments based on the similarity of the use and markets for the groups of products and services within each segment. Drilling Services Business In our Drilling Services business, we drill oil, natural gas and geothermal wells for customers in both the U.S. and international markets. We provide this service with both Company-owned rigs and customer-owned rigs. We refer to the provision of drilling services with customer-owned rigs as our operations and management (“O&M”) service in which operators own their own drilling rigs but choose Parker Drilling to operate and manage the rigs for them. The nature and scope of activities involved in drilling an oil and natural gas well is similar whether it is drilled with a Company-owned rig (as part of a traditional drilling contract) or a customer-owned rig (as part of an O&M contract). In addition, we provide project-related services, such as engineering, procurement, project management, commissioning of customer-owned drilling rig projects, operations execution, and quality and safety management. We have extensive experience and expertise in drilling geologically challenging wells and in managing the logistical and technological challenges of operating in remote, harsh and ecologically sensitive areas. U.S. (Lower 48) Drilling Our U.S. (Lower 48) Drilling segment provides drilling services with our Gulf of Mexico (“GOM”) barge drilling rig fleet, and markets our U.S. (Lower 48)-based O&M services. Our GOM barge drilling fleet operates barge rigs that drill for oil and natural gas in shallow waters in and along the inland waterways and coasts of Louisiana, Alabama and Texas. The majority of these wells are drilled in shallow water depths ranging from 6 to 12 feet. Our rigs are suitable for a variety of drilling programs, from inland coastal waters requiring shallow draft barges, to open water drilling on both state and federal water projects requiring more robust capabilities. The barge drilling industry in the GOM is characterized by cyclical activity where utilization and dayrates are typically driven by oil and natural gas prices and our customers’ access to project financing. Contract terms typically consist of well-to-well or multi-well programs, most commonly ranging from 20 to 180 days. International & Alaska Drilling Our International & Alaska Drilling segment provides drilling services, using both Company-owned rigs and O&M contracts, and project-related services. The drilling markets in which this segment operates have one or more of the following characteristics: • customers typically are major, independent, or national oil and natural gas companies or integrated service providers; • drilling programs in remote locations with little infrastructure, requiring a large inventory of spare parts and other ancillary equipment and self-supported service capabilities; • complex wells and/or harsh environments (such as high pressures, deep depths, hazardous or geologically challenging conditions and sensitive environments) requiring specialized equipment and considerable experience to drill; and • O&M contracts that generally cover periods of one year or more. During the quarter ended March 31, 2018, we had rigs operating on Sakhalin Island, Russia and in Alaska, Kazakhstan, the Kurdistan Region of Iraq, Guatemala and Indonesia. In addition, we had O&M and ongoing project-related services for customer-owned rigs in Kuwait, Canada, Indonesia and on Sakhalin Island, Russia. Rental Tools Services Business In our Rental Tools Services business, we provide premium rental equipment and services to exploration & production (“E&P”) companies, drilling contractors and service companies on land and offshore in the U.S. and select international markets. Tools we provide include standard and heavy-weight drill pipe, all of which are available with standard or high-torque connections, tubing, drill collars, pressure control equipment, including blowout preventers and more. We also provide well construction services, which include tubular running services and downhole tool rentals, well intervention services, which include whipstock, fishing and related services, and inspection and machine shop support. Rental tools are used during drilling and/or workover programs and are requested by the customer as needed, requiring us to keep a broad inventory of rental tools in stock. Rental tools are usually rented on a daily or monthly basis. U.S. Rental Tools Our U.S. Rental Tools segment is headquartered in New Iberia, Louisiana. We maintain an inventory of rental tools for deepwater, drilling, completion, workover, and production applications at facilities in Louisiana, Texas, Oklahoma, Wyoming, North Dakota and West Virginia. Our largest single market for rental tools is U.S. land drilling, a cyclical market driven primarily by oil and natural gas prices and our customers’ access to project financing. A portion of our U.S. rental tools business is supplying tubular goods and other equipment to offshore GOM customers. International Rental Tools Our International Rental Tools segment is headquartered in Dubai, United Arab Emirates. We maintain an inventory of rental tools and provide well construction, well intervention, and surface and tubular services to our customers in the Middle East, Latin America, United Kingdom, Europe, and Asia-Pacific regions. The following table represents the results of operations by reportable segment: Three Months Ended Dollars in thousands 2018 2017 Revenues: (1) Drilling Services: U.S. (Lower 48) Drilling $ 1,354 $ 1,215 International & Alaska Drilling 56,096 63,213 Total Drilling Services 57,450 64,428 Rental Tools Services: U.S. Rental Tools 34,748 20,231 International Rental Tools 17,477 13,612 Total Rental Tools Services 52,225 33,843 Total revenues 109,675 98,271 Operating gross margin: (2) Drilling Services: U.S. (Lower 48) Drilling (5,288 ) (7,226 ) International & Alaska Drilling (5,336 ) (1,785 ) Total Drilling Services (10,624 ) (9,011 ) Rental Tools Services: U.S. Rental Tools 4,231 (3,773 ) International Rental Tools (4,015 ) (6,961 ) Total Rental Tools Services 216 (10,734 ) Total operating gross margin (10,408 ) (19,745 ) General and administrative expense (6,201 ) (7,040 ) Gain (loss) on disposition of assets, net 343 (352 ) Total operating income (loss) (16,266 ) (27,137 ) Interest expense (11,240 ) (10,870 ) Interest income 23 10 Other income (loss) 291 530 Income (loss) before income taxes $ (27,192 ) $ (37,467 ) (1) For the three months ended March 31, 2018 , our largest customer, ENL , constituted approximately 28.6 percent of our total consolidated revenues and approximately 55.9 percent of our International & Alaska Drilling segment revenues. Excluding reimbursable revenues of $12.1 million , ENL constituted approximately 20.1 percent of our total consolidated revenues and approximately 45.9 percent of our International & Alaska Drilling segment revenues. For the three months ended March 31, 2017 , our largest customer, ENL , constituted approximately 34.9 percent of our total consolidated revenues and approximately 54.3 percent of our International & Alaska Drilling segment revenues. Excluding reimbursable revenues of $13.0 million , ENL constituted approximately 25.7 percent of our total consolidated revenues and approximately 44.4 percent of our International & Alaska Drilling segment revenues. Our second largest customer, BP, constituted 11.3 percent, of our total consolidated revenues and approximately 17.6 percent of our International & Alaska Drilling segment revenues. (2) Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense. The following table shows the Company’s revenues by geographic region: Three months ended March 31, 2018 Dollars in thousands United States Russia EMEA & Asia Latin America Other CIS Other Total Revenues $43,995 $31,292 $20,044 $3,513 $3,550 $7,281 $109,675 Three months ended March 31, 2017 Dollars in thousands United States Russia EMEA & Asia Latin America Other CIS Other Total Revenues $32,573 $34,448 $15,101 $2,866 $6,308 $6,975 $98,271

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Note 12 - Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This accounting standards update requires (a) an entity to separate the lease components from the non-lease components in a contract where the lease component will be accounted for under ASU 2016-02 and the non-lease component will be accounted for under ASU 2014-09, (b) recognition of lease assets and lease liabilities by lessees and derecognition of the leased asset and recognition of a net investment in the lease by the lessor and (c) additional disclosure requirements for both lessees and lessors. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, although early adoption is permitted. Upon adoption, a retrospective approach is required for leases that exist, or are entered into, after the beginning of the earliest comparative period presented. Under the updated accounting standard, we have determined that our drilling contracts may contain a lease component; therefore, our adoption of the standard could require that we separately recognize revenues associated with the lease and service components. In January 2018, the FASB issued a Proposed Accounting Standard Update to provide targeted improvements to Update 2016-02, which (1) provides for a new transition method whereby entities may elect to adopt the Update using a prospective with cumulative catch-up approach and (2) provides lessors with a practical expedient to not separate non-lease components from the related lease components, by class of underlying asset. On March 28, 2018, the FASB held a meeting to approve certain additional amendments to Update 2016-02, including a revision to the practical expedient that would allow a lessor to account for the combined lease and non-lease components under Topic 606 when the non-lease component is the predominant element of the combined component. Depending on the criteria included in the final Update, this practical expedient may be available to us. We will adopt ASU 2016-02 on January 1, 2019. Our adoption, and the ultimate effect on our consolidated condensed financial statements, will be based on an evaluation of the contract-specific facts and circumstances, and such effect could introduce variability to the timing of our revenue recognition relative to current accounting standards. We are evaluating the requirements to determine the effect such requirements may have on our consolidated balance sheets, statements of operations, statements of cash flows and on the disclosures contained in our notes to the consolidated financial statements upon the adoption of ASU 2016-02. Depending on the results of the evaluation our ultimate conclusions may vary. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU supersedes the revenue recognition requirements in ASC 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Effective January 1, 2018, we adopted ASU 2014-09 using the modified retrospective approach and it did not have a material impact on our consolidated balance sheets, statement of operations, statements of cash flows, and on the disclosures contained in our notes to the consolidated financial statements. See Note 10 - Revenue from Contracts with Customers for further details.

Parent, Guarantor, Non-Guaranto

Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements	Note 13 - Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements Set forth on the following pages are the consolidating condensed financial statements of Parker Drilling. The Company’s 2015 Secured Credit Agreement and Senior Notes are fully and unconditionally guaranteed by substantially all of our direct and indirect domestic subsidiaries, other than immaterial subsidiaries and subsidiaries generating revenues primarily outside the United States, subject to the following customary release provisions: • in connection with any sale or other disposition of all or substantially all of the assets of that guarantor (including by way of merger or consolidation) to a person that is not (either before or after giving effect to such transaction) a subsidiary of the Company; • in connection with any sale of such amount of capital stock as would result in such guarantor no longer being a subsidiary to a person that is not (either before or after giving effect to such transaction) a subsidiary of the Company; • if the Company designates any restricted subsidiary that is a guarantor as an unrestricted subsidiary; • if the guarantee by a guarantor of all other indebtedness of the Company or any other guarantor is released, terminated or discharged, except by, or as a result of, payment under such guarantee; or • upon legal defeasance or covenant defeasance (satisfaction and discharge of the indenture). There are currently no restrictions on the ability of the restricted subsidiaries to transfer funds to Parker Drilling in the form of cash dividends, loans or advances. Parker Drilling is a holding company with no operations, other than through its subsidiaries. Separate financial statements for each guarantor company are not provided as the Company complies with the exception to Rule 3-10(f) of Regulation S-X. All guarantor subsidiaries are owned 100 percent by the parent company. We are providing unaudited consolidating condensed financial information of the parent, Parker Drilling, the guarantor subsidiaries, and the non-guarantor subsidiaries as of March 31, 2018 and December 31, 2017 and for the three months ended March 31, 2018 and 2017 , respectively. The consolidating condensed financial statements present investments in both consolidated and unconsolidated subsidiaries using the equity method of accounting. PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATING CONDENSED BALANCE SHEET (Dollars in Thousands) (Unaudited) March 31, 2018 Parent Guarantor Non-Guarantor Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 56,723 $ 16,509 $ 45,083 $ — $ 118,315 Accounts and Notes receivable, net — 35,177 91,508 — 126,685 Rig materials and supplies — (2,869 ) 34,318 373 31,822 Other current assets — 5,613 14,825 — 20,438 Total current assets 56,723 54,430 185,734 373 297,260 Property, plant and equipment, net (19 ) 423,377 187,144 242 610,744 Goodwill — 6,708 — — 6,708 Intangible assets, net — 6,551 — — 6,551 Investment in subsidiaries and intercompany advances 2,931,773 2,983,588 4,024,920 (9,940,281 ) — Other noncurrent assets (256,973 ) 234,495 533,156 (480,811 ) 29,867 Total assets $ 2,731,504 $ 3,709,149 $ 4,930,954 $ (10,420,477 ) $ 951,130 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ (70,088 ) $ 191,260 $ 586,677 $ (617,477 ) $ 90,372 Accrued income taxes 80,627 (59,776 ) (16,660 ) — 4,191 Total current liabilities 10,539 131,484 570,017 (617,477 ) 94,563 Long-term debt, net 578,404 — — — 578,404 Other long-term liabilities 2,867 3,875 4,368 — 11,110 Deferred tax liability — — 78 — 78 Intercompany payables 1,871,869 1,468,837 2,495,167 (5,835,873 ) — Total liabilities 2,463,679 1,604,196 3,069,630 (6,453,350 ) 684,155 Total equity 267,825 2,104,953 1,861,324 (3,967,127 ) 266,975 Total liabilities and stockholders’ equity $ 2,731,504 $ 3,709,149 $ 4,930,954 $ (10,420,477 ) $ 951,130 PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATING CONDENSED BALANCE SHEET (Dollars in Thousands) (Unaudited) December 31, 2017 Parent Guarantor Non-Guarantor Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 75,342 $ 20,655 $ 45,552 $ — $ 141,549 Accounts and Notes receivable, net — 32,338 90,173 — 122,511 Rig materials and supplies — (3,025 ) 34,440 — 31,415 Other current assets — 6,362 15,999 — 22,361 Total current assets 75,342 56,330 186,164 — 317,836 Property, plant and equipment, net (19 ) 428,556 197,234 — 625,771 Goodwill — 6,708 — — 6,708 Intangible assets, net — 7,128 — — 7,128 Investment in subsidiaries and intercompany advances 2,955,050 2,971,456 3,955,553 (9,882,059 ) — Other noncurrent assets (261,232 ) 237,755 537,124 (480,811 ) 32,836 Total assets $ 2,769,141 $ 3,707,933 $ 4,876,075 $ (10,362,870 ) $ 990,279 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ (51,060 ) $ 179,247 $ 588,536 $ (617,477 ) $ 99,246 Accrued income taxes 76,883 (56,870 ) (15,583 ) — 4,430 Total current liabilities 25,823 122,377 572,953 (617,477 ) 103,676 Long-term debt, net 577,971 — — — 577,971 Other long-term liabilities 2,867 5,741 3,825 — 12,433 Deferred tax liability (1 ) — 79 — 78 Intercompany payables 1,865,810 1,465,744 2,430,340 (5,761,894 ) — Total liabilities 2,472,470 1,593,862 3,007,197 (6,379,371 ) 694,158 Total equity 296,671 2,114,071 1,868,878 (3,983,499 ) 296,121 Total liabilities and stockholders’ equity $ 2,769,141 $ 3,707,933 $ 4,876,075 $ (10,362,870 ) $ 990,279 PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS (Dollars in Thousands) (Unaudited) Three months ended March 31, 2018 Parent Guarantor Non-Guarantor Eliminations Consolidated Revenues $ — $ 42,591 $ 81,622 $ (14,538 ) $ 109,675 Operating expenses — 25,817 80,255 (14,538 ) 91,534 Depreciation and amortization — 19,996 8,553 — 28,549 Total operating gross margin (loss) — (3,222 ) (7,186 ) — (10,408 ) General and administrative expense (1) (89 ) (5,983 ) (129 ) — (6,201 ) Gain (loss) on disposition of assets, net — 11 332 — 343 Total operating income (loss) (89 ) (9,194 ) (6,983 ) — (16,266 ) Other income (expense): Interest expense (12,228 ) 223 (2,056 ) 2,821 (11,240 ) Interest income 182 181 2,481 (2,821 ) 23 Other — 2 289 — 291 Equity in net earnings of subsidiaries (16,372 ) — — 16,372 — Total other income (expense) (28,418 ) 406 714 16,372 (10,926 ) Income (loss) before income taxes (28,507 ) (8,788 ) (6,269 ) 16,372 (27,192 ) Income tax expense (benefit) 288 329 987 — 1,604 Net income (loss) (28,795 ) (9,117 ) (7,256 ) 16,372 (28,796 ) Less: Mandatory convertible preferred stock dividend 906 — — — 906 Net income (loss) available to common stockholders $ (29,701 ) $ (9,117 ) $ (7,256 ) $ 16,372 $ (29,702 ) (1) General and administrative expenses for field operations are included in operating expenses. PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS (Dollars in Thousands) (Unaudited) Three months ended March 31, 2017 Parent Guarantor Non-Guarantor Eliminations Consolidated Revenues $ — $ 27,893 $ 88,237 $ (17,859 ) $ 98,271 Operating expenses — 20,950 82,723 (17,859 ) 85,814 Depreciation and amortization — 21,188 11,014 — 32,202 Total operating gross margin (loss) — (14,245 ) (5,500 ) — (19,745 ) General and administrative expense (1) (78 ) (6,870 ) (92 ) — (7,040 ) Gain (loss) on disposition of assets, net — (216 ) (136 ) — (352 ) Total operating income (loss) (78 ) (21,331 ) (5,728 ) — (27,137 ) Other income (expense): Interest expense (11,669 ) (45 ) (1,942 ) 2,786 (10,870 ) Interest income 149 179 2,468 (2,786 ) 10 Other — 32 498 — 530 Equity in net earnings of subsidiaries (21,780 ) — — 21,780 — Total other income (expense) (33,300 ) 166 1,024 21,780 (10,330 ) Income (loss) before income taxes (33,378 ) (21,165 ) (4,704 ) 21,780 (37,467 ) Income tax expense (benefit) 6,430 (5,577 ) 1,489 — 2,342 Net income (loss) (39,808 ) (15,588 ) (6,193 ) 21,780 (39,809 ) Less: Mandatory convertible preferred stock dividend — — — — Net income (loss) available to common stockholders $ (39,808 ) $ (15,588 ) $ (6,193 ) $ 21,780 $ (39,809 ) (1) General and administrative expenses for field operations are included in operating expenses. PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Dollars in Thousands) (Unaudited) Three months ended March 31, 2018 Parent Guarantor Non-Guarantor Eliminations Consolidated Comprehensive income (loss): Net income (loss) $ (28,795 ) $ (9,117 ) $ (7,256 ) $ 16,372 $ (28,796 ) Other comprehensive income (loss), net of tax: Currency translation difference on related borrowings — — 276 — 276 Currency translation difference on foreign currency net investments — — (576 ) — (576 ) Total other comprehensive income (loss), net of tax: — — (300 ) — (300 ) Comprehensive income (loss) (28,795 ) (9,117 ) (7,556 ) 16,372 (29,096 ) PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Dollars in Thousands) (Unaudited) Three Months Ended March 31, 2017 Parent Guarantor Non-Guarantor Eliminations Consolidated Comprehensive income (loss): Net income (loss) $ (39,808 ) $ (15,588 ) $ (6,193 ) $ 21,780 $ (39,809 ) Other comprehensive income (loss), net of tax: Currency translation difference on related borrowings — — 83 — 83 Currency translation difference on foreign currency net investments — — 763 — 763 Total other comprehensive income (loss), net of tax: — — 846 — 846 Comprehensive income (loss) (39,808 ) (15,588 ) (5,347 ) 21,780 (38,963 ) PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (Dollars in Thousands) (Unaudited) Three Months Ended March 31, 2018 Parent Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (28,795 ) $ (9,117 ) $ (7,256 ) $ 16,372 $ (28,796 ) Adjustments to reconcile net income (loss): Depreciation and amortization — 19,996 8,553 — 28,549 (Gain) loss on disposition of assets — (11 ) (332 ) — (343 ) Deferred tax expense (benefit) (3,420 ) 3,015 (138 ) — (543 ) Expenses not requiring cash 1,411 (10 ) (11,032 ) 10,738 1,107 Change in assets and liabilities: Accounts and notes receivable — (2,840 ) (1,339 ) — (4,179 ) Other assets 23,587 (10,095 ) (61,331 ) 57,850 10,011 Accounts payable and accrued liabilities (12,971 ) 5,333 74,636 (84,960 ) (17,962 ) Accrued income taxes 3,745 (2,907 ) (886 ) — (48 ) Net cash provided by (used in) operating activities (16,443 ) 3,364 875 — (12,204 ) Cash flows from investing activities: Capital expenditures — (7,554 ) (1,370 ) — (8,924 ) Proceeds from the sale of assets — 44 26 — 70 Net cash provided by (used in) investing activities — (7,510 ) (1,344 ) — (8,854 ) Cash flows from financing activities: Payments of debt issuance costs (1,148 ) — — — (1,148 ) Preferred stock dividend (906 ) — — — (906 ) Shares surrendered in lieu of tax (122 ) — — — (122 ) Net cash provided by (used in) financing activities (2,176 ) — — — (2,176 ) Net increase (decrease) in cash and cash equivalents (18,619 ) (4,146 ) (469 ) — (23,234 ) Cash and cash equivalents at beginning of period 75,342 20,655 45,552 — 141,549 Cash and cash equivalents at end of period $ 56,723 $ 16,509 $ 45,083 $ — $ 118,315 PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (Dollars in Thousands) (Unaudited) Three Months Ended March 31, 2017 Parent Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (39,808 ) $ (15,588 ) $ (6,193 ) $ 21,780 $ (39,809 ) Adjustments to reconcile net income (loss) Depreciation and amortization — 21,188 11,014 — 32,202 (Gain) loss on disposition of assets — 216 136 — 352 Deferred tax expense (benefit) (5,641 ) 5,165 (166 ) — (642 ) Expenses not requiring cash 1,781 91 278 — 2,150 Equity in net earnings of subsidiaries 21,780 — — (21,780 ) — Change in assets and liabilities: Accounts and notes receivable — (3,668 ) (1,206 ) — (4,874 ) Other assets 17,984 (18,296 ) (2,380 ) — (2,692 ) Accounts payable and accrued liabilities (34,867 ) 15,591 3,339 — (15,937 ) Accrued income taxes (5,783 ) 7,055 393 — 1,665 Net cash provided by (used in) operating activities (44,554 ) 11,754 5,215 — (27,585 ) Cash flows from investing activities: Capital expenditures — (10,994 ) (3,457 ) — (14,451 ) Proceeds from the sale of assets — — 46 — 46 Net cash provided by (used in) investing activities — (10,994 ) (3,411 ) — (14,405 ) Cash flows from financing activities: Proceeds from the issuance of common stock 25,200 — — — 25,200 Proceeds from the issuance of mandatory convertible preferred stock 50,000 — — — 50,000 Payment of equity issuance costs (2,861 ) — — — (2,861 ) Shares surrendered in lieu of tax (352 ) — — — (352 ) Intercompany advances, net 4,106 (2,090 ) (2,016 ) — — Net cash provided by (used in) financing activities 76,093 (2,090 ) (2,016 ) — 71,987 Net change in cash and cash equivalents 31,539 (1,330 ) (212 ) — 29,997 Cash and cash equivalents at beginning of period 65,000 14,365 40,326 — 119,691 Cash and cash equivalents at end of period $ 96,539 $ 13,035 $ 40,114 $ — $ 149,688

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Nature of Operations	Our business is comprised of two business lines: (1) Drilling Services and (2) Rental Tools Services. We report our Drilling Services business as two reportable segments: (1) U.S. (Lower 48) Drilling and (2) International & Alaska Drilling. We report our Rental Tools Services business as two reportable segments: (1) U.S. Rental Tools and (2) International Rental Tools.
Consolidation	The consolidated condensed financial statements include the accounts of the Company and subsidiaries in which we exercise control or have a controlling financial interest, including entities, if any, in which the Company is allocated a majority of the entity’s losses or returns, regardless of ownership percentage. If a subsidiary of Parker Drilling has a 50 percent interest in an entity but Parker Drilling’s interest in the subsidiary or the entity does not meet the consolidation criteria described above, then that interest is accounted for under the equity method.
Reclassifications	Certain reclassifications have been made to prior period amounts to conform to the current period presentation. These reclassifications did not materially affect our consolidated financial results.
Use of Estimates	The preparation of our consolidated condensed financial statements in accordance with accounting policies generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect our reported amounts of assets and liabilities, our disclosure of contingent assets and liabilities at the date of the consolidated condensed financial statements, and our revenues and expenses during the periods reported. Estimates are typically used when accounting for certain significant items such as legal or contractual liability accruals, mobilization and deferred mobilization, self-insured medical/dental plans, income taxes and valuation allowance, and other items requiring the use of estimates. Estimates are based on a number of variables which may include third party valuations, historical experience, where applicable, and assumptions that we believe are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ from management estimates.
Purchase Price Allocation	We allocate the purchase price of an acquired business to its identifiable assets and liabilities in accordance with the acquisition method based on estimated fair values at the transaction date. Transaction and integration costs associated with an acquisition are expensed as incurred. The excess of the purchase price over the amount allocated to the assets and liabilities, if any, is recorded as goodwill. We use all available information to estimate fair values, including quoted market prices, the carrying value of acquired assets, and widely accepted valuation techniques such as discounted cash flows. We typically engage third-party appraisal firms to assist in fair value determination of inventories, identifiable intangible assets, and any other significant assets or liabilities. Judgments made in determining the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact our results of operations.
Goodwill	We perform our annual goodwill impairment review during the fourth quarter, as of October 1, and more frequently if negative conditions or other triggering events arise. The quantitative impairment test we perform for goodwill utilizes certain assumptions, including forecasted revenues and costs assumptions.
Intangible Assets	Our intangible assets are related to trade names, customer relationships, and developed technology, which were acquired through acquisition and are classified as definite lived intangibles, that are generally amortized over a weighted average period of approximately three to six years. We assess the recoverability of the unamortized balance of our intangible assets when indicators of impairment are present based on expected future profitability and undiscounted expected cash flows and their contribution to our overall operations. Should the review indicate that the carrying value is not fully recoverable, the excess of the carrying value over the fair value of the intangible assets would be recognized as an impairment loss.
Impairment	We evaluate the carrying amounts of long-lived assets for potential impairment when events occur or circumstances change that indicate the carrying values of such assets may not be recoverable. We evaluate recoverability by determining the undiscounted estimated future net cash flows for the respective asset groups identified. If the sum of the estimated undiscounted cash flows is less than the carrying value of the asset group, we measure the impairment as the amount by which the assets’ carrying value exceeds the fair value of such assets. Management considers a number of factors such as estimated future cash flows from the assets, appraisals and current market value analysis in determining fair value. Assets are written down to fair value if the final estimate of current fair value is below the net carrying value. The assumptions used in the impairment evaluation are inherently uncertain and require management judgment.
Income Taxes	Income taxes are accounted for under the asset and liability method and have been provided for based upon tax laws and rates in effect in the countries in which operations are conducted and income or losses are generated. There is little or no expected relationship between the provision for or benefit from income taxes and income or loss before income taxes as the countries in which we operate have taxation regimes that vary not only with respect to nominal rate, but also in terms of the availability of deductions, credits, and other benefits. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the temporary differences are expected to be recovered or settled and the effect of changes in tax rates is recognized in income in the period in which the change is enacted. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. In order to determine the amount of deferred tax assets or liabilities, as well as the valuation allowances, we must make estimates and assumptions regarding future taxable income, where rigs will be deployed and other matters. Changes in these estimates and assumptions, including changes in tax laws and other changes impacting our ability to recognize the underlying deferred tax assets, could require us to adjust the valuation allowances. The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized and changes in recognition or measurement are reflected in the period in which the change in judgment occurs.
Earnings (Loss) Per Share (EPS)	Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. The effects of dilutive securities, stock options, unvested restricted stock, assumed conversion of mandatory convertible preferred stock and convertible debt are included in the diluted EPS calculation, when applicable.
Concentrations of Credit Risk	Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade receivables with a variety of national and international oil and natural gas companies. We generally do not require collateral on our trade receivables. We depend on a limited number of significant customers.
Legal and Investigation Matters	We accrue estimates of the probable and estimable costs for the resolution of certain legal and investigative matters. We do not accrue any amounts for other matters for which the liability is not probable and reasonably estimable. Generally, the estimate of probable costs related to these matters is developed in consultation with our legal advisors. The estimates take into consideration factors such as the complexity of the issues, litigation risks and settlement costs. If the actual settlement costs, final judgments, or fines, after appeals, differ from our estimates, our future financial results may be adversely affected.
Recent Accounting Pronouncements	In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This accounting standards update requires (a) an entity to separate the lease components from the non-lease components in a contract where the lease component will be accounted for under ASU 2016-02 and the non-lease component will be accounted for under ASU 2014-09, (b) recognition of lease assets and lease liabilities by lessees and derecognition of the leased asset and recognition of a net investment in the lease by the lessor and (c) additional disclosure requirements for both lessees and lessors. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, although early adoption is permitted. Upon adoption, a retrospective approach is required for leases that exist, or are entered into, after the beginning of the earliest comparative period presented. Under the updated accounting standard, we have determined that our drilling contracts may contain a lease component; therefore, our adoption of the standard could require that we separately recognize revenues associated with the lease and service components. In January 2018, the FASB issued a Proposed Accounting Standard Update to provide targeted improvements to Update 2016-02, which (1) provides for a new transition method whereby entities may elect to adopt the Update using a prospective with cumulative catch-up approach and (2) provides lessors with a practical expedient to not separate non-lease components from the related lease components, by class of underlying asset. On March 28, 2018, the FASB held a meeting to approve certain additional amendments to Update 2016-02, including a revision to the practical expedient that would allow a lessor to account for the combined lease and non-lease components under Topic 606 when the non-lease component is the predominant element of the combined component. Depending on the criteria included in the final Update, this practical expedient may be available to us. We will adopt ASU 2016-02 on January 1, 2019. Our adoption, and the ultimate effect on our consolidated condensed financial statements, will be based on an evaluation of the contract-specific facts and circumstances, and such effect could introduce variability to the timing of our revenue recognition relative to current accounting standards. We are evaluating the requirements to determine the effect such requirements may have on our consolidated balance sheets, statements of operations, statements of cash flows and on the disclosures contained in our notes to the consolidated financial statements upon the adoption of ASU 2016-02. Depending on the results of the evaluation our ultimate conclusions may vary. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU supersedes the revenue recognition requirements in ASC 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Effective January 1, 2018, we adopted ASU 2014-09 using the modified retrospective approach and it did not have a material impact on our consolidated balance sheets, statement of operations, statements of cash flows, and on the disclosures contained in our notes to the consolidated financial statements. See Note 10 - Revenue from Contracts with Customers for further details.

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The change in the carrying amount of goodwill for the period ended March 31, 2018 is as follows: Dollars in thousands Goodwill Balance at December 31, 2017 $ 6,708 Additions — Balance at March 31, 2018 $ 6,708
Schedule of Intangible Assets	Intangible Assets consist of the following: Balance at March 31, 2018 Dollars in thousands Estimated Useful Life (Years) Gross Carrying Amount Write-off Due to Disposal Accumulated Amortization Net Carrying Amount Amortized intangible assets: Developed technology 6 $ 11,630 $ — $ (5,815 ) $ 5,815 Trade names 5 4,940 (332 ) (3,872 ) 736 Total amortized intangible assets $ 16,570 $ (332 ) $ (9,687 ) $ 6,551
Schedule of Intangible Assets, Future Amortization Expense	Our remaining intangibles amortization expense for the next five years is presented below: Dollars in thousands Expected future intangible amortization expense 2018 $ 1,730 2019 $ 2,306 2020 $ 2,030 2021 $ 485 Beyond 2021 $ —

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Summary of Company's Current Debt Portfolio	The following table illustrates the Company’s current debt portfolio as of March 31, 2018 and December 31, 2017 : Dollars in thousands March 31, December 31, 6.75% Senior Notes, due July 2022 $ 360,000 $ 360,000 7.50% Senior Notes, due August 2020 225,000 225,000 Total principal 585,000 585,000 Less: unamortized debt issuance costs (6,596 ) (7,029 ) Total long-term debt 578,404 577,971

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Values and Related Carrying Values of Debt Instruments	Fair value of our debt instruments is determined using Level 2 inputs. Fair values and related carrying values of our debt instruments were as follows for the periods indicated: March 31, 2018 December 31, 2017 Dollars in thousands Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt 6.75% Notes $ 360,000 $ 279,900 $ 360,000 $ 296,100 7.50% Notes 225,000 205,313 225,000 206,438 Total $ 585,000 $ 485,213 $ 585,000 $ 502,538

Earnings (Loss) Per Share (EP25

Earnings (Loss) Per Share (EPS) (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule of Computation of Earnings per Share	The following table represents the computation of earnings per share for the three months ended March 31, 2018 and 2017 , respectively: Three months ended March 31, 2018 Net Income (Loss) Available to Common Stockholders (Numerator) Shares (Denominator) Per-Share Amount Basic earnings (loss) per common share $ (29,702,000 ) 138,765,995 $ (0.21 ) Effect of dilutive securities: Restricted stock units (1) — — — Mandatory convertible preferred stock (2) $ — — — Diluted earnings (loss) per common share $ (29,702,000 ) 138,765,995 $ (0.21 ) Three months ended March 31, 2017 Net Income (Loss) Available to Common Stockholders (Numerator) Shares (Denominator) Per-Share Amount Basic earnings (loss) per common share $ (39,809,000 ) 130,142,527 $ (0.31 ) Effect of dilutive securities: Restricted stock units (1) — — — Mandatory convertible preferred stock (2) $ — — — Diluted earnings (loss) per common share $ (39,809,000 ) 130,142,527 $ (0.31 ) (1) For the three months ended March 31, 2018 and 2017 , respectively, all common shares potentially issuable in connection with outstanding restricted stock unit awards have been excluded from the calculation of diluted EPS as the Company incurred losses during the periods, therefore, inclusion of such potential common shares would be anti-dilutive. (2) Weighted average common shares issuable upon the assumed conversion of our Convertible Preferred Stock (as defined below) totaling 23,809,500 shares were excluded from the computation of diluted EPS as such shares would be anti-dilutive.

Accumulated Other Comprehensi26

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Schedule of accumulated other comprehensive income	Accumulated other comprehensive loss consisted of the following: Dollars in thousands Foreign Currency Items December 31, 2017 $ (3,512 ) Current period other comprehensive income (loss), net of tax (300 ) March 31, 2018 $ (3,812 )

Revenue from Contracts with C27

Revenue from Contracts with Customers (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Contract with Customer, Asset and Liability	Significant changes to contract assets and contract liabilities balances during the three months ended March 31, 2018 are shown below: Dollars in thousands Contract Contract Liabilities Balance at December 31, 2017 $ 973 $ (1,021 ) Decrease due to recognition of revenue that was included in the beginning contract liability balance (424 ) 467 Increase due to cash received, excluding amounts recognized as revenue during the period — — Increase due to revenue recognized during the period but contingent on future performance 366 — Balance at March 31, 2018 $ 915 $ (554 ) The following table provides information about contract assets and contract liabilities from contracts with customers: Dollars in thousands March 31, December 31, Contract assets - current (1) 915 973 Contract assets - noncurrent (1) — — Total contract assets $ 915 $ 973 Contract liabilities - current (2) $ (200 ) $ (641 ) Contract liabilities - noncurrent (2) (354 ) (380 ) Total contract liabilities $ (554 ) $ (1,021 ) (1) Contract assets - current and contract assets - noncurrent are included in other current assets and other noncurrent assets respectively, in our consolidated condensed balance sheet as of March 31, 2018 and December 31, 2017 . (2) Contract liabilities - current and contract liabilities - noncurrent are included in accounts payable and accrued liabilities and other long-term liabilities respectively, in our consolidated condensed balance sheet as of March 31, 2018 and December 31, 2017 .
Revenue Expected to be Recognized in the Future Related to Performance Obligations	The following table includes revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. Three months ended March 31, 2018 Dollars in thousands Remaining 2018 2019 2020 Beyond 2020 Total Deferred revenue $965 $324 $239 $581 $2,109

Reportable Segments (Tables)

Reportable Segments (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Results of Operations by Reportable Segment	The following table represents the results of operations by reportable segment: Three Months Ended Dollars in thousands 2018 2017 Revenues: (1) Drilling Services: U.S. (Lower 48) Drilling $ 1,354 $ 1,215 International & Alaska Drilling 56,096 63,213 Total Drilling Services 57,450 64,428 Rental Tools Services: U.S. Rental Tools 34,748 20,231 International Rental Tools 17,477 13,612 Total Rental Tools Services 52,225 33,843 Total revenues 109,675 98,271 Operating gross margin: (2) Drilling Services: U.S. (Lower 48) Drilling (5,288 ) (7,226 ) International & Alaska Drilling (5,336 ) (1,785 ) Total Drilling Services (10,624 ) (9,011 ) Rental Tools Services: U.S. Rental Tools 4,231 (3,773 ) International Rental Tools (4,015 ) (6,961 ) Total Rental Tools Services 216 (10,734 ) Total operating gross margin (10,408 ) (19,745 ) General and administrative expense (6,201 ) (7,040 ) Gain (loss) on disposition of assets, net 343 (352 ) Total operating income (loss) (16,266 ) (27,137 ) Interest expense (11,240 ) (10,870 ) Interest income 23 10 Other income (loss) 291 530 Income (loss) before income taxes $ (27,192 ) $ (37,467 ) (1) For the three months ended March 31, 2018 , our largest customer, ENL , constituted approximately 28.6 percent of our total consolidated revenues and approximately 55.9 percent of our International & Alaska Drilling segment revenues. Excluding reimbursable revenues of $12.1 million , ENL constituted approximately 20.1 percent of our total consolidated revenues and approximately 45.9 percent of our International & Alaska Drilling segment revenues. For the three months ended March 31, 2017 , our largest customer, ENL , constituted approximately 34.9 percent of our total consolidated revenues and approximately 54.3 percent of our International & Alaska Drilling segment revenues. Excluding reimbursable revenues of $13.0 million , ENL constituted approximately 25.7 percent of our total consolidated revenues and approximately 44.4 percent of our International & Alaska Drilling segment revenues. Our second largest customer, BP, constituted 11.3 percent, of our total consolidated revenues and approximately 17.6 percent of our International & Alaska Drilling segment revenues. (2) Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense.
Schedule of Revenue by Geographic Region	The following table shows the Company’s revenues by geographic region: Three months ended March 31, 2018 Dollars in thousands United States Russia EMEA & Asia Latin America Other CIS Other Total Revenues $43,995 $31,292 $20,044 $3,513 $3,550 $7,281 $109,675 Three months ended March 31, 2017 Dollars in thousands United States Russia EMEA & Asia Latin America Other CIS Other Total Revenues $32,573 $34,448 $15,101 $2,866 $6,308 $6,975 $98,271

Parent, Guarantor, Non-Guaran29

Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements (Tables)	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidating Condensed Balance Sheet	PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATING CONDENSED BALANCE SHEET (Dollars in Thousands) (Unaudited) March 31, 2018 Parent Guarantor Non-Guarantor Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 56,723 $ 16,509 $ 45,083 $ — $ 118,315 Accounts and Notes receivable, net — 35,177 91,508 — 126,685 Rig materials and supplies — (2,869 ) 34,318 373 31,822 Other current assets — 5,613 14,825 — 20,438 Total current assets 56,723 54,430 185,734 373 297,260 Property, plant and equipment, net (19 ) 423,377 187,144 242 610,744 Goodwill — 6,708 — — 6,708 Intangible assets, net — 6,551 — — 6,551 Investment in subsidiaries and intercompany advances 2,931,773 2,983,588 4,024,920 (9,940,281 ) — Other noncurrent assets (256,973 ) 234,495 533,156 (480,811 ) 29,867 Total assets $ 2,731,504 $ 3,709,149 $ 4,930,954 $ (10,420,477 ) $ 951,130 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ (70,088 ) $ 191,260 $ 586,677 $ (617,477 ) $ 90,372 Accrued income taxes 80,627 (59,776 ) (16,660 ) — 4,191 Total current liabilities 10,539 131,484 570,017 (617,477 ) 94,563 Long-term debt, net 578,404 — — — 578,404 Other long-term liabilities 2,867 3,875 4,368 — 11,110 Deferred tax liability — — 78 — 78 Intercompany payables 1,871,869 1,468,837 2,495,167 (5,835,873 ) — Total liabilities 2,463,679 1,604,196 3,069,630 (6,453,350 ) 684,155 Total equity 267,825 2,104,953 1,861,324 (3,967,127 ) 266,975 Total liabilities and stockholders’ equity $ 2,731,504 $ 3,709,149 $ 4,930,954 $ (10,420,477 ) $ 951,130 PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATING CONDENSED BALANCE SHEET (Dollars in Thousands) (Unaudited) December 31, 2017 Parent Guarantor Non-Guarantor Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 75,342 $ 20,655 $ 45,552 $ — $ 141,549 Accounts and Notes receivable, net — 32,338 90,173 — 122,511 Rig materials and supplies — (3,025 ) 34,440 — 31,415 Other current assets — 6,362 15,999 — 22,361 Total current assets 75,342 56,330 186,164 — 317,836 Property, plant and equipment, net (19 ) 428,556 197,234 — 625,771 Goodwill — 6,708 — — 6,708 Intangible assets, net — 7,128 — — 7,128 Investment in subsidiaries and intercompany advances 2,955,050 2,971,456 3,955,553 (9,882,059 ) — Other noncurrent assets (261,232 ) 237,755 537,124 (480,811 ) 32,836 Total assets $ 2,769,141 $ 3,707,933 $ 4,876,075 $ (10,362,870 ) $ 990,279 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued liabilities $ (51,060 ) $ 179,247 $ 588,536 $ (617,477 ) $ 99,246 Accrued income taxes 76,883 (56,870 ) (15,583 ) — 4,430 Total current liabilities 25,823 122,377 572,953 (617,477 ) 103,676 Long-term debt, net 577,971 — — — 577,971 Other long-term liabilities 2,867 5,741 3,825 — 12,433 Deferred tax liability (1 ) — 79 — 78 Intercompany payables 1,865,810 1,465,744 2,430,340 (5,761,894 ) — Total liabilities 2,472,470 1,593,862 3,007,197 (6,379,371 ) 694,158 Total equity 296,671 2,114,071 1,868,878 (3,983,499 ) 296,121 Total liabilities and stockholders’ equity $ 2,769,141 $ 3,707,933 $ 4,876,075 $ (10,362,870 ) $ 990,279
Consolidating Condensed Statement of Operations	PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS (Dollars in Thousands) (Unaudited) Three months ended March 31, 2018 Parent Guarantor Non-Guarantor Eliminations Consolidated Revenues $ — $ 42,591 $ 81,622 $ (14,538 ) $ 109,675 Operating expenses — 25,817 80,255 (14,538 ) 91,534 Depreciation and amortization — 19,996 8,553 — 28,549 Total operating gross margin (loss) — (3,222 ) (7,186 ) — (10,408 ) General and administrative expense (1) (89 ) (5,983 ) (129 ) — (6,201 ) Gain (loss) on disposition of assets, net — 11 332 — 343 Total operating income (loss) (89 ) (9,194 ) (6,983 ) — (16,266 ) Other income (expense): Interest expense (12,228 ) 223 (2,056 ) 2,821 (11,240 ) Interest income 182 181 2,481 (2,821 ) 23 Other — 2 289 — 291 Equity in net earnings of subsidiaries (16,372 ) — — 16,372 — Total other income (expense) (28,418 ) 406 714 16,372 (10,926 ) Income (loss) before income taxes (28,507 ) (8,788 ) (6,269 ) 16,372 (27,192 ) Income tax expense (benefit) 288 329 987 — 1,604 Net income (loss) (28,795 ) (9,117 ) (7,256 ) 16,372 (28,796 ) Less: Mandatory convertible preferred stock dividend 906 — — — 906 Net income (loss) available to common stockholders $ (29,701 ) $ (9,117 ) $ (7,256 ) $ 16,372 $ (29,702 ) (1) General and administrative expenses for field operations are included in operating expenses. PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS (Dollars in Thousands) (Unaudited) Three months ended March 31, 2017 Parent Guarantor Non-Guarantor Eliminations Consolidated Revenues $ — $ 27,893 $ 88,237 $ (17,859 ) $ 98,271 Operating expenses — 20,950 82,723 (17,859 ) 85,814 Depreciation and amortization — 21,188 11,014 — 32,202 Total operating gross margin (loss) — (14,245 ) (5,500 ) — (19,745 ) General and administrative expense (1) (78 ) (6,870 ) (92 ) — (7,040 ) Gain (loss) on disposition of assets, net — (216 ) (136 ) — (352 ) Total operating income (loss) (78 ) (21,331 ) (5,728 ) — (27,137 ) Other income (expense): Interest expense (11,669 ) (45 ) (1,942 ) 2,786 (10,870 ) Interest income 149 179 2,468 (2,786 ) 10 Other — 32 498 — 530 Equity in net earnings of subsidiaries (21,780 ) — — 21,780 — Total other income (expense) (33,300 ) 166 1,024 21,780 (10,330 ) Income (loss) before income taxes (33,378 ) (21,165 ) (4,704 ) 21,780 (37,467 ) Income tax expense (benefit) 6,430 (5,577 ) 1,489 — 2,342 Net income (loss) (39,808 ) (15,588 ) (6,193 ) 21,780 (39,809 ) Less: Mandatory convertible preferred stock dividend — — — — Net income (loss) available to common stockholders $ (39,808 ) $ (15,588 ) $ (6,193 ) $ 21,780 $ (39,809 ) (1) General and administrative expenses for field operations are included in operating expenses.
Consolidating Condensed Statements of Comprehensive Income (Loss)	PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Dollars in Thousands) (Unaudited) Three months ended March 31, 2018 Parent Guarantor Non-Guarantor Eliminations Consolidated Comprehensive income (loss): Net income (loss) $ (28,795 ) $ (9,117 ) $ (7,256 ) $ 16,372 $ (28,796 ) Other comprehensive income (loss), net of tax: Currency translation difference on related borrowings — — 276 — 276 Currency translation difference on foreign currency net investments — — (576 ) — (576 ) Total other comprehensive income (loss), net of tax: — — (300 ) — (300 ) Comprehensive income (loss) (28,795 ) (9,117 ) (7,556 ) 16,372 (29,096 ) PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Dollars in Thousands) (Unaudited) Three Months Ended March 31, 2017 Parent Guarantor Non-Guarantor Eliminations Consolidated Comprehensive income (loss): Net income (loss) $ (39,808 ) $ (15,588 ) $ (6,193 ) $ 21,780 $ (39,809 ) Other comprehensive income (loss), net of tax: Currency translation difference on related borrowings — — 83 — 83 Currency translation difference on foreign currency net investments — — 763 — 763 Total other comprehensive income (loss), net of tax: — — 846 — 846 Comprehensive income (loss) (39,808 ) (15,588 ) (5,347 ) 21,780 (38,963 )
Consolidated Condensed Statements of Cash Flows	PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (Dollars in Thousands) (Unaudited) Three Months Ended March 31, 2018 Parent Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (28,795 ) $ (9,117 ) $ (7,256 ) $ 16,372 $ (28,796 ) Adjustments to reconcile net income (loss): Depreciation and amortization — 19,996 8,553 — 28,549 (Gain) loss on disposition of assets — (11 ) (332 ) — (343 ) Deferred tax expense (benefit) (3,420 ) 3,015 (138 ) — (543 ) Expenses not requiring cash 1,411 (10 ) (11,032 ) 10,738 1,107 Change in assets and liabilities: Accounts and notes receivable — (2,840 ) (1,339 ) — (4,179 ) Other assets 23,587 (10,095 ) (61,331 ) 57,850 10,011 Accounts payable and accrued liabilities (12,971 ) 5,333 74,636 (84,960 ) (17,962 ) Accrued income taxes 3,745 (2,907 ) (886 ) — (48 ) Net cash provided by (used in) operating activities (16,443 ) 3,364 875 — (12,204 ) Cash flows from investing activities: Capital expenditures — (7,554 ) (1,370 ) — (8,924 ) Proceeds from the sale of assets — 44 26 — 70 Net cash provided by (used in) investing activities — (7,510 ) (1,344 ) — (8,854 ) Cash flows from financing activities: Payments of debt issuance costs (1,148 ) — — — (1,148 ) Preferred stock dividend (906 ) — — — (906 ) Shares surrendered in lieu of tax (122 ) — — — (122 ) Net cash provided by (used in) financing activities (2,176 ) — — — (2,176 ) Net increase (decrease) in cash and cash equivalents (18,619 ) (4,146 ) (469 ) — (23,234 ) Cash and cash equivalents at beginning of period 75,342 20,655 45,552 — 141,549 Cash and cash equivalents at end of period $ 56,723 $ 16,509 $ 45,083 $ — $ 118,315 PARKER DRILLING COMPANY AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (Dollars in Thousands) (Unaudited) Three Months Ended March 31, 2017 Parent Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (39,808 ) $ (15,588 ) $ (6,193 ) $ 21,780 $ (39,809 ) Adjustments to reconcile net income (loss) Depreciation and amortization — 21,188 11,014 — 32,202 (Gain) loss on disposition of assets — 216 136 — 352 Deferred tax expense (benefit) (5,641 ) 5,165 (166 ) — (642 ) Expenses not requiring cash 1,781 91 278 — 2,150 Equity in net earnings of subsidiaries 21,780 — — (21,780 ) — Change in assets and liabilities: Accounts and notes receivable — (3,668 ) (1,206 ) — (4,874 ) Other assets 17,984 (18,296 ) (2,380 ) — (2,692 ) Accounts payable and accrued liabilities (34,867 ) 15,591 3,339 — (15,937 ) Accrued income taxes (5,783 ) 7,055 393 — 1,665 Net cash provided by (used in) operating activities (44,554 ) 11,754 5,215 — (27,585 ) Cash flows from investing activities: Capital expenditures — (10,994 ) (3,457 ) — (14,451 ) Proceeds from the sale of assets — — 46 — 46 Net cash provided by (used in) investing activities — (10,994 ) (3,411 ) — (14,405 ) Cash flows from financing activities: Proceeds from the issuance of common stock 25,200 — — — 25,200 Proceeds from the issuance of mandatory convertible preferred stock 50,000 — — — 50,000 Payment of equity issuance costs (2,861 ) — — — (2,861 ) Shares surrendered in lieu of tax (352 ) — — — (352 ) Intercompany advances, net 4,106 (2,090 ) (2,016 ) — — Net cash provided by (used in) financing activities 76,093 (2,090 ) (2,016 ) — 71,987 Net change in cash and cash equivalents 31,539 (1,330 ) (212 ) — 29,997 Cash and cash equivalents at beginning of period 65,000 14,365 40,326 — 119,691 Cash and cash equivalents at end of period $ 96,539 $ 13,035 $ 40,114 $ — $ 149,688

Summary of Significant Accoun30

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)segmentbusiness_line	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Revenue, Major Customer [Line Items]
Number of business lines | business_line	2
Percentage accounted for under the equity method	50.00%
Deposits in domestic bank	$ 76.5		$ 97.6
Uninsured deposits in foreign banks	45.1		$ 45.6
Exxon Neftegas Limited
Revenue, Major Customer [Line Items]
Reimbursement revenue	$ 12.1	$ 13
Customer Concentration Risk | Sales Revenue, Net | Exxon Neftegas Limited
Revenue, Major Customer [Line Items]
Percentage of revenue from major customer	28.60%	34.90%
Customer Concentration Risk | Sales Revenue, Net Of Reimbursable Revenues | Exxon Neftegas Limited
Revenue, Major Customer [Line Items]
Percentage of revenue from major customer	20.10%	25.70%
Minimum
Revenue, Major Customer [Line Items]
Estimated Useful Life (Years)	3 years
Maximum
Revenue, Major Customer [Line Items]
Estimated Useful Life (Years)	6 years
U.S. (Lower 48) Drilling
Revenue, Major Customer [Line Items]
Number of business lines | business_line	2
Number of reportable segments | segment	2
International & Alaska Drilling
Revenue, Major Customer [Line Items]
Number of reportable segments | segment	2
International & Alaska Drilling | Customer Concentration Risk | Sales Revenue, Net | Exxon Neftegas Limited
Revenue, Major Customer [Line Items]
Percentage of revenue from major customer	55.90%	54.30%
International & Alaska Drilling | Customer Concentration Risk | Sales Revenue, Net Of Reimbursable Revenues | Exxon Neftegas Limited
Revenue, Major Customer [Line Items]
Percentage of revenue from major customer	45.90%	44.40%

Goodwill and Intangible Asset31

Goodwill and Intangible Assets - Goodwill (Details)	3 Months Ended
	Mar. 31, 2018USD ($)
Goodwill [Roll Forward]
Balance at December 31, 2017	$ 6,708,000
Additions	0
Balance at March 31, 2018	6,708,000
Goodwill expected tax deductible amount	$ 0

Goodwill and Intangible Asset32

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 16,570
Write-off Due to Disposal	(332)
Accumulated Amortization	(9,687)
Net Carrying Amount	6,551
Amortization of Intangible Assets	$ 600	$ 700
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (Years)	6 years
Gross Carrying Amount	$ 11,630
Write-off Due to Disposal	0
Accumulated Amortization	(5,815)
Net Carrying Amount	$ 5,815
Trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (Years)	5 years
Gross Carrying Amount	$ 4,940
Write-off Due to Disposal	(332)
Accumulated Amortization	(3,872)
Net Carrying Amount	$ 736

Goodwill and Intangible Asset33

Goodwill and Intangible Assets - Expected Future Intangibles Amortization Expense (Details) $ in Thousands	Mar. 31, 2018USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2,018	$ 1,730
2,019	2,306
2,020	2,030
2,021	485
Beyond 2,021	$ 0

Long-term Debt - Summary of Com

Long-term Debt - Summary of Company's Current Debt Portfolio (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total principal	$ 585,000	$ 585,000
Less: unamortized debt issuance costs	(6,596)	(7,029)
Total long-term debt	578,404	577,971
6.75% Senior Notes, due July 2022
Debt Instrument [Line Items]
Total principal	360,000	360,000
Less: unamortized debt issuance costs	(4,400)
7.50% Senior Notes, due August 2020
Debt Instrument [Line Items]
Total principal	225,000	$ 225,000
Less: unamortized debt issuance costs	$ (2,200)

Long-term Debt - Additional Inf

Long-term Debt - Additional Information (Detail) - USD ($)	Mar. 31, 2018	Feb. 14, 2018	Dec. 31, 2017	Jan. 26, 2015	Jan. 22, 2014	Jul. 30, 2013
Debt Instrument [Line Items]
Deferred acquisition costs	$ 6,596,000		$ 7,029,000
2015 Secured Credit Agreement
Debt Instrument [Line Items]
Deferred acquisition costs	1,100,000
Maximum borrowing capacity		$ 80,000,000	$ 100,000,000	$ 200,000,000
Minimum liquidity amount		30,000,000
Minimum liquidity amount, restricted amount	15,000,000	15,000,000
Maximum borrowing capacity net of restricted liquidity amount and outstanding letters of credit		$ 65,000,000
Unamortized debt issuance expense	1,600,000
Senior secured credit facility	72,600,000
Letters of credit outstanding	5,700,000
Remaining borrowing capacity	51,900,000
Long-term line of credit	0
6.75% Senior Notes, due July 2022
Debt Instrument [Line Items]
Percentage of notes guaranteed by restricted subsidiaries					6.75%
Aggregate principal amount					$ 360,000,000
Debt issuance costs	7,600,000
Deferred acquisition costs	$ 4,400,000
Redemption price after year three	103.375%
Redemption price after year five					101.00%
7.50% Senior Notes, due August 2020
Debt Instrument [Line Items]
Percentage of notes guaranteed by restricted subsidiaries						7.50%
Aggregate principal amount						$ 225,000,000
Debt issuance costs	$ 5,600,000
Deferred acquisition costs	$ 2,200,000
Redemption price after year three	101.875%
Redemption price after year five						101.00%

Fair Value of Financial Instr36

Fair Value of Financial Instruments - Fair Values and Related Carrying Values of Debt Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Jan. 22, 2014	Jul. 30, 2013
6.75% Senior Notes, due July 2022
Long-term debt
Percentage of notes guaranteed by restricted subsidiaries			6.75%
7.50% Senior Notes, due August 2020
Long-term debt
Percentage of notes guaranteed by restricted subsidiaries				7.50%
Carrying Amount
Long-term debt
Long term debt Fair value	$ 585,000	$ 585,000
Carrying Amount | 6.75% Senior Notes, due July 2022
Long-term debt
Long term debt Fair value	360,000	360,000
Carrying Amount | 7.50% Senior Notes, due August 2020
Long-term debt
Long term debt Fair value	225,000	225,000
Fair Value
Long-term debt
Long term debt Fair value	485,213	502,538
Fair Value | 6.75% Senior Notes, due July 2022
Long-term debt
Long term debt Fair value	279,900	296,100
Fair Value | 7.50% Senior Notes, due August 2020
Long-term debt
Long term debt Fair value	$ 205,313	$ 206,438

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Liability for unrecognized tax	$ 5,800		$ 5,400
Accrued interest and penalties applied to uncertain tax positions	2,200		$ 2,100
Income tax expense (benefit)	$ 1,604	$ 2,342

Common and Preferred Stock Is38

Common and Preferred Stock Issuance (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 28, 2018	Feb. 28, 2017	Mar. 31, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Common stock, par value (in dollars per share)			$ 0.166667	$ 0.166667
Preferred dividend percentage			7.25%	7.25%
Preferred stock, par value (in dollars per share)			$ 1	$ 1
Preferred stock, liquidation preference per share (in dollars per share)			$ 100
Issuance of common stock and mandatory convertible preferred stock		$ 72.3
Convertible preferred stock, terms of conversion, measurement period			20 days
Preferred stock, dividends per share, declared (in dollars per share)	$ 1.8125
Common Stock
Class of Stock [Line Items]
Common stock, shares issued		12,000,000
Stock issued, price per share (in dollars per share)		$ 2.10
Common Stock | Minimum
Class of Stock [Line Items]
Convertible preferred stock, shares issued upon conversion			41.4079
Common Stock | Maximum
Class of Stock [Line Items]
Convertible preferred stock, shares issued upon conversion			47.6190
Preferred Stock
Class of Stock [Line Items]
Common stock, shares issued		500,000
Series A Preferred Stock
Class of Stock [Line Items]
Preferred dividend percentage			7.25%

Earnings (Loss) Per Share (EP39

Earnings (Loss) Per Share (EPS) - Summary of Earnings Per Share (EPS) (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Basic earnings (loss) per share	$ (29,702)	$ (39,809)
Diluted earnings (loss) per share	$ (29,702)	$ (39,809)
Basic earnings (loss) per share (in shares)	138,765,995	130,142,527
Effect of dilutive securities:
Restricted stock units (in shares)	0	0
Mandatory convertible preferred stock (in shares)	0	0
Diluted earnings (loss) per share (in shares)	138,765,995	130,142,527
Basic earnings (loss) per common share (in dollars per share)	$ (0.21)	$ (0.31)
Diluted earnings (loss) per common share (in dollars per share)	$ (0.21)	$ (0.31)
Shares excluded from the computation of diluted EPS	23,809,500

Accumulated Other Comprehensi40

Accumulated Other Comprehensive Income (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Stockholders' equity, beginning balance	$ 296,121,000
Current period other comprehensive income (loss), net of tax	(300,000)	$ 846,000
Stockholders' equity, ending balance	266,975,000
Reclassification out of accumulated other comprehensive loss	0
Foreign Currency Items
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Stockholders' equity, beginning balance	(3,512,000)
Current period other comprehensive income (loss), net of tax	(300,000)
Stockholders' equity, ending balance	$ (3,812,000)

Revenue from Contracts with C41

Revenue from Contracts with Customers - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)business_line	Mar. 31, 2017USD ($)
Revenue from Contract with Customer [Abstract]
Number of business lines | business_line	2
Disaggregation of Revenue [Line Items]
Typical payment term	30 days
Total revenues	$ 109,675	$ 98,271
Capitalized contract cost, amortization	1,000
Reimbursable revenue
Disaggregation of Revenue [Line Items]
Total revenues	$ 14,300	$ 15,300
Minimum
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	2 months
Maximum
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	60 months

Revenue from Contracts with C42

Revenue from Contracts with Customers - Summary of Accounts And Notes Receivable And Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Revenue from Contract with Customer [Abstract]
Contract Assets - current		$ 915	$ 973
Contract Assets - noncurrent		0	0
Total contract assets	$ 973	915	973
Contract Liabilities - current		(200)	(641)
Contract Liabilities - noncurrent		(354)	(380)
Total contract liabilities	(1,021)	$ (554)	$ (1,021)
Change in Contract with Customer, Asset [Roll Forward]
Contract Assets	973
Decrease due to recognition of revenue that was included in the beginning contract liability balance	(424)
Increase due to cash received, excluding amounts recognized as revenue during the period	0
Increase due to revenue recognized during the period but contingent on future performance	366
Contract Assets	915
Change in Contract with Customer, Liability [Roll Forward]
Contract Liabilities	(1,021)
Decrease due to recognition of revenue that was included in the beginning contract liability balance	467
Increase due to cash received, excluding amounts recognized as revenue during the period	0
Increase due to revenue recognized during the period but contingent on future performance	0
Contract Liabilities	$ (554)

Revenue from Contracts with C43

Revenue from Contracts with Customers - Summary of Future Obligations (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue	$ 965
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue	$ 324
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue	$ 239
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred revenue	$ 2,109
Revenue, remaining performance obligation, expected timing of satisfaction, period

Reportable Segments - Additiona

Reportable Segments - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2018segmentbusiness_lineft
Segment Information [Line Items]
Number of business lines | business_line	2
Number of operating segments	4
U.S. (Lower 48) Drilling
Segment Information [Line Items]
Number of business lines | business_line	2
Number of reportable segments	2
U.S. (Lower 48) Drilling | Minimum
Segment Information [Line Items]
Underwater drilling depth | ft	6
Drilling contract terms	20 days
U.S. (Lower 48) Drilling | Maximum
Segment Information [Line Items]
Underwater drilling depth | ft	12
Drilling contract terms	180 days
International & Alaska Drilling
Segment Information [Line Items]
Number of reportable segments	2
Drilling contract terms	1 year

Reportable Segments - Results o

Reportable Segments - Results of Operations by Reportable Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Revenues	$ 109,675	$ 98,271
Operating gross margin:
Total operating gross margin	(10,408)	(19,745)
General and administrative expense	(6,201)	(7,040)
Gain (loss) on disposition of assets, net	343	(352)
Total operating income (loss)	(16,266)	(27,137)
Interest expense	(11,240)	(10,870)
Interest income	23	10
Other	291	530
Income (loss) before income taxes	(27,192)	(37,467)
Exxon Neftegas Limited
Operating gross margin:
Reimbursement revenue	$ 12,100	$ 13,000
Exxon Neftegas Limited | Customer Concentration Risk | Sales Revenue, Net
Operating gross margin:
Percentage of revenue from major customer	28.60%	34.90%
Exxon Neftegas Limited | Customer Concentration Risk | Sales Revenue, Net Of Reimbursable Revenues
Operating gross margin:
Percentage of revenue from major customer	20.10%	25.70%
BP Exploration Alaska, Inc. | Customer Concentration Risk | Sales Revenue, Net
Operating gross margin:
Percentage of revenue from major customer		11.30%
Total Rental Tools Services
Revenues:
Revenues	$ 52,225	$ 33,843
Operating gross margin:
Total operating gross margin	216	(10,734)
U.S. Rental Tools
Revenues:
Revenues	34,748	20,231
Operating gross margin:
Total operating gross margin	4,231	(3,773)
International Rental Tools
Revenues:
Revenues	17,477	13,612
Operating gross margin:
Total operating gross margin	(4,015)	(6,961)
Total Drilling Services
Revenues:
Revenues	57,450	64,428
Operating gross margin:
Total operating gross margin	(10,624)	(9,011)
U.S. (Lower 48) Drilling
Revenues:
Revenues	1,354	1,215
Operating gross margin:
Total operating gross margin	(5,288)	(7,226)
International & Alaska Drilling
Revenues:
Revenues	56,096	63,213
Operating gross margin:
Total operating gross margin	$ (5,336)	$ (1,785)
International & Alaska Drilling | Exxon Neftegas Limited | Customer Concentration Risk | Sales Revenue, Net
Operating gross margin:
Percentage of revenue from major customer	55.90%	54.30%
International & Alaska Drilling | Exxon Neftegas Limited | Customer Concentration Risk | Sales Revenue, Net Of Reimbursable Revenues
Operating gross margin:
Percentage of revenue from major customer	45.90%	44.40%
International & Alaska Drilling | BP Exploration Alaska, Inc. | Customer Concentration Risk | Sales Revenue, Net Of Reimbursable Revenues
Operating gross margin:
Percentage of revenue from major customer		17.60%

Reportable Segments - Revenue b

Reportable Segments - Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 109,675	$ 98,271
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	43,995	32,573
Russia
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	31,292	34,448
EMEA & Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	20,044	15,101
Latin America
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3,513	2,866
Other CIS
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3,550	6,308
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 7,281	$ 6,975

Parent, Guarantor, Non-Guaran47

Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Percentage of guaranteed subsidiaries by the parent companies	100.00%

Parent, Guarantor, Non-Guaran48

Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements - Consolidating Condensed Balance Sheet (Detail) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 118,315	$ 141,549	$ 149,688	$ 119,691
Accounts and Notes receivable, net	126,685	122,511
Rig materials and supplies	31,822	31,415
Other current assets	20,438	22,361
Total current assets	297,260	317,836
Property, plant and equipment, net	610,744	625,771
Goodwill (Note 2)	6,708	6,708
Intangible assets, net (Note 2)	6,551	7,128
Investment in subsidiaries and intercompany advances	0	0
Other noncurrent assets	29,867	32,836
Total assets	951,130	990,279
Current liabilities:
Accounts payable and accrued liabilities	90,372	99,246
Accrued income taxes	4,191	4,430
Total current liabilities	94,563	103,676
Long-term debt, net	578,404	577,971
Other long-term liabilities	11,110	12,433
Long-term deferred tax liability	78	78
Intercompany Payables	0	0
Total liabilities	684,155	694,158
Total stockholders' equity	266,975	296,121
Total liabilities and stockholders' equity	951,130	990,279
Reportable Legal Entities | Parent
Current assets:
Cash and cash equivalents	56,723	75,342	96,539	65,000
Accounts and Notes receivable, net	0	0
Rig materials and supplies	0	0
Other current assets	0	0
Total current assets	56,723	75,342
Property, plant and equipment, net	(19)	(19)
Goodwill (Note 2)	0	0
Intangible assets, net (Note 2)	0	0
Investment in subsidiaries and intercompany advances	2,931,773	2,955,050
Other noncurrent assets	(256,973)	(261,232)
Total assets	2,731,504	2,769,141
Current liabilities:
Accounts payable and accrued liabilities	(70,088)	(51,060)
Accrued income taxes	80,627	76,883
Total current liabilities	10,539	25,823
Long-term debt, net	578,404	577,971
Other long-term liabilities	2,867	2,867
Long-term deferred tax liability	0	(1)
Intercompany Payables	1,871,869	1,865,810
Total liabilities	2,463,679	2,472,470
Total stockholders' equity	267,825	296,671
Total liabilities and stockholders' equity	2,731,504	2,769,141
Reportable Legal Entities | Guarantor
Current assets:
Cash and cash equivalents	16,509	20,655	13,035	14,365
Accounts and Notes receivable, net	35,177	32,338
Rig materials and supplies	(2,869)	(3,025)
Other current assets	5,613	6,362
Total current assets	54,430	56,330
Property, plant and equipment, net	423,377	428,556
Goodwill (Note 2)	6,708	6,708
Intangible assets, net (Note 2)	6,551	7,128
Investment in subsidiaries and intercompany advances	2,983,588	2,971,456
Other noncurrent assets	234,495	237,755
Total assets	3,709,149	3,707,933
Current liabilities:
Accounts payable and accrued liabilities	191,260	179,247
Accrued income taxes	(59,776)	(56,870)
Total current liabilities	131,484	122,377
Long-term debt, net	0	0
Other long-term liabilities	3,875	5,741
Long-term deferred tax liability	0	0
Intercompany Payables	1,468,837	1,465,744
Total liabilities	1,604,196	1,593,862
Total stockholders' equity	2,104,953	2,114,071
Total liabilities and stockholders' equity	3,709,149	3,707,933
Reportable Legal Entities | Non-Guarantor
Current assets:
Cash and cash equivalents	45,083	45,552	40,114	40,326
Accounts and Notes receivable, net	91,508	90,173
Rig materials and supplies	34,318	34,440
Other current assets	14,825	15,999
Total current assets	185,734	186,164
Property, plant and equipment, net	187,144	197,234
Goodwill (Note 2)	0	0
Intangible assets, net (Note 2)	0	0
Investment in subsidiaries and intercompany advances	4,024,920	3,955,553
Other noncurrent assets	533,156	537,124
Total assets	4,930,954	4,876,075
Current liabilities:
Accounts payable and accrued liabilities	586,677	588,536
Accrued income taxes	(16,660)	(15,583)
Total current liabilities	570,017	572,953
Long-term debt, net	0	0
Other long-term liabilities	4,368	3,825
Long-term deferred tax liability	78	79
Intercompany Payables	2,495,167	2,430,340
Total liabilities	3,069,630	3,007,197
Total stockholders' equity	1,861,324	1,868,878
Total liabilities and stockholders' equity	4,930,954	4,876,075
Eliminations
Current assets:
Cash and cash equivalents	0	0	$ 0	$ 0
Accounts and Notes receivable, net	0	0
Rig materials and supplies	373	0
Other current assets	0	0
Total current assets	373	0
Property, plant and equipment, net	242	0
Goodwill (Note 2)	0	0
Intangible assets, net (Note 2)	0	0
Investment in subsidiaries and intercompany advances	(9,940,281)	(9,882,059)
Other noncurrent assets	(480,811)	(480,811)
Total assets	(10,420,477)	(10,362,870)
Current liabilities:
Accounts payable and accrued liabilities	(617,477)	(617,477)
Accrued income taxes	0	0
Total current liabilities	(617,477)	(617,477)
Long-term debt, net	0	0
Other long-term liabilities	0	0
Long-term deferred tax liability	0	0
Intercompany Payables	(5,835,873)	(5,761,894)
Total liabilities	(6,453,350)	(6,379,371)
Total stockholders' equity	(3,967,127)	(3,983,499)
Total liabilities and stockholders' equity	$ (10,420,477)	$ (10,362,870)

Parent, Guarantor, Non-Guaran49

Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements - Consolidating Condensed Statement of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Financial Statements [Line Items]
Revenues	$ 109,675	$ 98,271
Operating expenses	91,534	85,814
Depreciation and amortization	28,549	32,202
Total operating gross margin (loss)	(10,408)	(19,745)
General and administrative expense	(6,201)	(7,040)
Gain (loss) on disposition of assets, net	343	(352)
Total operating income (loss)	(16,266)	(27,137)
Other income (expense):
Interest expense	(11,240)	(10,870)
Interest income	23	10
Other	291	530
Equity in net earnings of subsidiaries	0	0
Total other income (expense)	(10,926)	(10,330)
Income (loss) before income taxes	(27,192)	(37,467)
Income tax expense (benefit)	1,604	2,342
Net income (loss)	(28,796)	(39,809)
Less: Mandatory convertible preferred stock dividend	906	0
Net income (loss) available to common stockholders	(29,702)	(39,809)
Reportable Legal Entities | Parent
Condensed Financial Statements [Line Items]
Revenues	0	0
Operating expenses	0	0
Depreciation and amortization	0	0
Total operating gross margin (loss)	0	0
General and administrative expense	(89)	(78)
Gain (loss) on disposition of assets, net	0	0
Total operating income (loss)	(89)	(78)
Other income (expense):
Interest expense	(12,228)	(11,669)
Interest income	182	149
Other	0	0
Equity in net earnings of subsidiaries	(16,372)	(21,780)
Total other income (expense)	(28,418)	(33,300)
Income (loss) before income taxes	(28,507)	(33,378)
Income tax expense (benefit)	288	6,430
Net income (loss)	(28,795)	(39,808)
Less: Mandatory convertible preferred stock dividend	906	0
Net income (loss) available to common stockholders	(29,701)	(39,808)
Reportable Legal Entities | Guarantor
Condensed Financial Statements [Line Items]
Revenues	42,591	27,893
Operating expenses	25,817	20,950
Depreciation and amortization	19,996	21,188
Total operating gross margin (loss)	(3,222)	(14,245)
General and administrative expense	(5,983)	(6,870)
Gain (loss) on disposition of assets, net	11	(216)
Total operating income (loss)	(9,194)	(21,331)
Other income (expense):
Interest expense	223	(45)
Interest income	181	179
Other	2	32
Equity in net earnings of subsidiaries	0	0
Total other income (expense)	406	166
Income (loss) before income taxes	(8,788)	(21,165)
Income tax expense (benefit)	329	(5,577)
Net income (loss)	(9,117)	(15,588)
Less: Mandatory convertible preferred stock dividend	0	0
Net income (loss) available to common stockholders	(9,117)	(15,588)
Reportable Legal Entities | Non-Guarantor
Condensed Financial Statements [Line Items]
Revenues	81,622	88,237
Operating expenses	80,255	82,723
Depreciation and amortization	8,553	11,014
Total operating gross margin (loss)	(7,186)	(5,500)
General and administrative expense	(129)	(92)
Gain (loss) on disposition of assets, net	332	(136)
Total operating income (loss)	(6,983)	(5,728)
Other income (expense):
Interest expense	(2,056)	(1,942)
Interest income	2,481	2,468
Other	289	498
Equity in net earnings of subsidiaries	0	0
Total other income (expense)	714	1,024
Income (loss) before income taxes	(6,269)	(4,704)
Income tax expense (benefit)	987	1,489
Net income (loss)	(7,256)	(6,193)
Less: Mandatory convertible preferred stock dividend	0	0
Net income (loss) available to common stockholders	(7,256)	(6,193)
Eliminations
Condensed Financial Statements [Line Items]
Revenues	(14,538)	(17,859)
Operating expenses	(14,538)	(17,859)
Depreciation and amortization	0	0
Total operating gross margin (loss)	0	0
General and administrative expense	0	0
Gain (loss) on disposition of assets, net	0	0
Total operating income (loss)	0	0
Other income (expense):
Interest expense	2,821	2,786
Interest income	(2,821)	(2,786)
Other	0	0
Equity in net earnings of subsidiaries	16,372	21,780
Total other income (expense)	16,372	21,780
Income (loss) before income taxes	16,372	21,780
Income tax expense (benefit)	0	0
Net income (loss)	16,372	21,780
Less: Mandatory convertible preferred stock dividend	0
Net income (loss) available to common stockholders	$ 16,372	$ 21,780

Parent, Guarantor, Non-Guaran50

Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements - Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Schedule of Condensed Statement of Comprehensive Income [Line Items]
Net income (loss)	$ (28,796)	$ (39,809)
Other comprehensive income (loss), net of tax:
Currency translation difference on related borrowings	276	83
Currency translation difference on foreign currency net investments	(576)	763
Total other comprehensive income (loss), net of tax:	(300)	846
Comprehensive income (loss) attributable to controlling interest	(29,096)	(38,963)
Reportable Legal Entities | Parent
Schedule of Condensed Statement of Comprehensive Income [Line Items]
Net income (loss)	(28,795)	(39,808)
Other comprehensive income (loss), net of tax:
Currency translation difference on related borrowings	0	0
Currency translation difference on foreign currency net investments	0	0
Total other comprehensive income (loss), net of tax:	0	0
Comprehensive income (loss) attributable to controlling interest	(28,795)	(39,808)
Reportable Legal Entities | Guarantor
Schedule of Condensed Statement of Comprehensive Income [Line Items]
Net income (loss)	(9,117)	(15,588)
Other comprehensive income (loss), net of tax:
Currency translation difference on related borrowings	0	0
Currency translation difference on foreign currency net investments	0	0
Total other comprehensive income (loss), net of tax:	0	0
Comprehensive income (loss) attributable to controlling interest	(9,117)	(15,588)
Reportable Legal Entities | Non-Guarantor
Schedule of Condensed Statement of Comprehensive Income [Line Items]
Net income (loss)	(7,256)	(6,193)
Other comprehensive income (loss), net of tax:
Currency translation difference on related borrowings	276	83
Currency translation difference on foreign currency net investments	(576)	763
Total other comprehensive income (loss), net of tax:	(300)	846
Comprehensive income (loss) attributable to controlling interest	(7,556)	(5,347)
Eliminations
Schedule of Condensed Statement of Comprehensive Income [Line Items]
Net income (loss)	16,372	21,780
Other comprehensive income (loss), net of tax:
Currency translation difference on related borrowings	0	0
Currency translation difference on foreign currency net investments	0	0
Total other comprehensive income (loss), net of tax:	0	0
Comprehensive income (loss) attributable to controlling interest	$ 16,372	$ 21,780

Parent, Guarantor, Non-Guaran51

Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements - Consolidated Condensed Statement of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ (28,796)	$ (39,809)
Adjustments to reconcile net income (loss)
Depreciation and amortization	28,549	32,202
(Gain) loss on disposition of assets	(343)	352
Deferred tax expense (benefit)	(543)	(642)
Expenses not requiring cash	1,107	2,150
Equity in net earnings of subsidiaries	0	0
Change in assets and liabilities:
Accounts and notes receivable	(4,179)	(4,874)
Other assets	10,011	(2,692)
Accounts payable and accrued liabilities	(17,962)	(15,937)
Accrued income taxes	(48)	1,665
Net cash provided by (used in) operating activities	(12,204)	(27,585)
Cash flows from investing activities:
Capital expenditures	(8,924)	(14,451)
Proceeds from the sale of assets	70	46
Net cash provided by (used in) investing activities	(8,854)	(14,405)
Cash flows from financing activities:
Payments of debt issuance costs	(1,148)	0
Preferred stock dividend	(906)	0
Shares surrendered in lieu of tax	(122)	(352)
Proceeds from the issuance of common stock	0	25,200
Proceeds from the issuance of mandatory convertible preferred stock	0	50,000
Payment of equity issuance costs	0	(2,861)
Intercompany advances, net		0
Net cash provided by (used in) financing activities	(2,176)	71,987
Net increase (decrease) in cash and cash equivalents	(23,234)	29,997
Cash and cash equivalents at beginning of period	141,549	119,691
Cash and cash equivalents at end of period	118,315	149,688
Reportable Legal Entities | Parent
Cash flows from operating activities:
Net income (loss)	(28,795)	(39,808)
Adjustments to reconcile net income (loss)
Depreciation and amortization	0	0
(Gain) loss on disposition of assets	0	0
Deferred tax expense (benefit)	(3,420)	(5,641)
Expenses not requiring cash	1,411	1,781
Equity in net earnings of subsidiaries	16,372	21,780
Change in assets and liabilities:
Accounts and notes receivable	0	0
Other assets	23,587	17,984
Accounts payable and accrued liabilities	(12,971)	(34,867)
Accrued income taxes	3,745	(5,783)
Net cash provided by (used in) operating activities	(16,443)	(44,554)
Cash flows from investing activities:
Capital expenditures	0	0
Proceeds from the sale of assets	0	0
Net cash provided by (used in) investing activities	0	0
Cash flows from financing activities:
Payments of debt issuance costs	(1,148)
Preferred stock dividend	(906)
Shares surrendered in lieu of tax	(122)	(352)
Proceeds from the issuance of common stock		25,200
Proceeds from the issuance of mandatory convertible preferred stock		50,000
Payment of equity issuance costs		(2,861)
Intercompany advances, net		4,106
Net cash provided by (used in) financing activities	(2,176)	76,093
Net increase (decrease) in cash and cash equivalents	(18,619)	31,539
Cash and cash equivalents at beginning of period	75,342	65,000
Cash and cash equivalents at end of period	56,723	96,539
Reportable Legal Entities | Guarantor
Cash flows from operating activities:
Net income (loss)	(9,117)	(15,588)
Adjustments to reconcile net income (loss)
Depreciation and amortization	19,996	21,188
(Gain) loss on disposition of assets	(11)	216
Deferred tax expense (benefit)	3,015	5,165
Expenses not requiring cash	(10)	91
Equity in net earnings of subsidiaries	0	0
Change in assets and liabilities:
Accounts and notes receivable	(2,840)	(3,668)
Other assets	(10,095)	(18,296)
Accounts payable and accrued liabilities	5,333	15,591
Accrued income taxes	(2,907)	7,055
Net cash provided by (used in) operating activities	3,364	11,754
Cash flows from investing activities:
Capital expenditures	(7,554)	(10,994)
Proceeds from the sale of assets	44	0
Net cash provided by (used in) investing activities	(7,510)	(10,994)
Cash flows from financing activities:
Payments of debt issuance costs	0
Preferred stock dividend	0
Shares surrendered in lieu of tax	0	0
Proceeds from the issuance of common stock		0
Proceeds from the issuance of mandatory convertible preferred stock		0
Payment of equity issuance costs		0
Intercompany advances, net		(2,090)
Net cash provided by (used in) financing activities	0	(2,090)
Net increase (decrease) in cash and cash equivalents	(4,146)	(1,330)
Cash and cash equivalents at beginning of period	20,655	14,365
Cash and cash equivalents at end of period	16,509	13,035
Reportable Legal Entities | Non-Guarantor
Cash flows from operating activities:
Net income (loss)	(7,256)	(6,193)
Adjustments to reconcile net income (loss)
Depreciation and amortization	8,553	11,014
(Gain) loss on disposition of assets	(332)	136
Deferred tax expense (benefit)	(138)	(166)
Expenses not requiring cash	(11,032)	278
Equity in net earnings of subsidiaries	0	0
Change in assets and liabilities:
Accounts and notes receivable	(1,339)	(1,206)
Other assets	(61,331)	(2,380)
Accounts payable and accrued liabilities	74,636	3,339
Accrued income taxes	(886)	393
Net cash provided by (used in) operating activities	875	5,215
Cash flows from investing activities:
Capital expenditures	(1,370)	(3,457)
Proceeds from the sale of assets	26	46
Net cash provided by (used in) investing activities	(1,344)	(3,411)
Cash flows from financing activities:
Payments of debt issuance costs	0
Preferred stock dividend	0
Shares surrendered in lieu of tax	0	0
Proceeds from the issuance of common stock		0
Proceeds from the issuance of mandatory convertible preferred stock		0
Payment of equity issuance costs		0
Intercompany advances, net		(2,016)
Net cash provided by (used in) financing activities	0	(2,016)
Net increase (decrease) in cash and cash equivalents	(469)	(212)
Cash and cash equivalents at beginning of period	45,552	40,326
Cash and cash equivalents at end of period	45,083	40,114
Eliminations
Cash flows from operating activities:
Net income (loss)	16,372	21,780
Adjustments to reconcile net income (loss)
Depreciation and amortization	0	0
(Gain) loss on disposition of assets	0	0
Deferred tax expense (benefit)	0	0
Expenses not requiring cash	10,738	0
Equity in net earnings of subsidiaries	(16,372)	(21,780)
Change in assets and liabilities:
Accounts and notes receivable	0	0
Other assets	57,850	0
Accounts payable and accrued liabilities	(84,960)	0
Accrued income taxes	0	0
Net cash provided by (used in) operating activities	0	0
Cash flows from investing activities:
Capital expenditures	0	0
Proceeds from the sale of assets	0	0
Net cash provided by (used in) investing activities	0	0
Cash flows from financing activities:
Payments of debt issuance costs	0
Preferred stock dividend	0
Shares surrendered in lieu of tax	0	0
Proceeds from the issuance of common stock		0
Proceeds from the issuance of mandatory convertible preferred stock		0
Payment of equity issuance costs		0
Intercompany advances, net		0
Net cash provided by (used in) financing activities	0	0
Net increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0
Cash and cash equivalents at end of period	$ 0	$ 0