Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Superior Energy Services Inc | |
Entity Central Index Key | 886,835 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 150,745,672 | |
Entity Well-known Seasoned Issuer | Yes | |
Trading Symbol | spn | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 500,262 | $ 393,046 |
Accounts receivable, net of allowance for doubtful accounts of $22,748 and $22,076 at June 30, 2015 and December 31, 2014, respectively | 570,528 | 926,768 |
Deferred Tax Assets, Net, Current | 26,387 | 32,138 |
Prepaid expenses | 62,107 | 74,750 |
Inventory and other current assets | 192,930 | 185,429 |
Assets of Disposal Group, Including Discontinued Operation, Current | 131,582 | 116,680 |
Total current assets | 1,483,796 | 1,728,811 |
Property, plant and equipment, net of accumulated depreciation and depletion of $2,245,051 and $2,269,542 at June 30, 2015 and December 31, 2014, respectively | 2,461,629 | 2,733,839 |
Goodwill | 1,892,377 | 2,468,409 |
Notes receivable | 26,811 | 25,970 |
Intangible and other long-term assets, net of accumulated amortization of $80,486 and $81,386 at June 30, 2015 and December 31, 2014, respectively | 350,974 | 420,360 |
Total assets | 6,215,587 | 7,377,389 |
Current liabilities: | ||
Accounts payable | 134,681 | 225,306 |
Accrued expenses | 305,622 | 363,747 |
Income taxes payable | 7,501 | 40,213 |
Current maturities of long-term debt | 26,279 | 20,941 |
Total current liabilities | 484,815 | 712,047 |
Disposal Group, Including Discontinued Operation, Liabilities | 10,732 | 61,840 |
Deferred income taxes | 559,516 | 702,996 |
Decommissioning liabilities | 93,076 | 88,000 |
Long-term debt, net | 1,618,686 | 1,627,842 |
Other long-term liabilities | $ 173,922 | $ 166,766 |
Stockholders' equity: | ||
Preferred stock of $0.01 par value. Authorized, 5,000,000 shares; none issued | ||
Common stock of $0.001 par value. Authorized - 250,000,000, Issued and Outstanding - 150,749,697 as of June 30, 2015 Authorized - 250,000,000, Issued - 149,648,826, Outstanding, 149,708,825 at December 31, 2014 | $ 151 | $ 150 |
Additional Paid in Capital | 2,647,272 | 2,620,328 |
Accumulated other comprehensive loss, net | (36,725) | (36,280) |
Retained earnings | 674,874 | 1,495,540 |
Total stockholders' equity | 3,285,572 | 4,079,738 |
Total liabilities and stockholders' equity | $ 6,215,587 | $ 7,377,389 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets [Abstract] | ||
Allowance for doubtful accounts | $ 22,748 | $ 22,076 |
Accumulated depreciation and depletion on Property, plant and equipment | 2,245,051 | 2,269,542 |
Accumulated amortization of Intangible and other long-term assets | $ 80,486 | $ 81,386 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 150,749,697 | 149,648,826 |
Common stock, shares outstanding | 150,749,697 | 149,708,825 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Consolidated Statements of Operations [Abstract] | ||||
Services | $ 534,959 | $ 836,666 | $ 1,220,423 | $ 1,639,005 |
Rentals | 175,825 | 270,886 | 407,596 | 529,965 |
Total Revenues | 710,784 | 1,107,552 | 1,628,019 | 2,168,970 |
Costs and expenses: | ||||
Cost of services (exclusive of items shown separately below) | 465,533 | 650,293 | 1,047,779 | 1,301,898 |
Cost of Services | 387,565 | 552,411 | 869,558 | 1,106,173 |
Cost of rentals | 77,968 | 97,882 | 178,221 | 195,725 |
Depreciation, depletion, amortization and accretion | 158,352 | 160,965 | 320,572 | 323,283 |
General and administrative expenses | 129,661 | 146,853 | 280,623 | 302,772 |
Reduction in value of assets | 807,637 | 807,637 | ||
Income from operations | (850,399) | 149,441 | (828,592) | 241,017 |
Other income (expense): | ||||
Interest expense, net | (25,382) | (24,560) | (48,591) | (48,441) |
Other Nonoperating Income (Expense) | (6,524) | 606 | (7,495) | 571 |
Income from continuing operations before income taxes | (882,305) | 125,487 | (884,678) | 193,147 |
Income taxes | (107,173) | 46,430 | (108,051) | 71,464 |
Net income (loss) from continuing operations | (775,132) | 79,057 | (776,627) | 121,683 |
Income (loss) from discontinued operations, net of tax | (9,857) | (3,895) | (19,497) | (9,849) |
Net income | $ (784,989) | $ 75,162 | $ (796,124) | $ 111,834 |
Earnings per share information: | ||||
Continuing operations | $ (5.15) | $ 0.51 | $ (5.17) | $ 0.77 |
Discontinued operations | (0.07) | (0.03) | (0.13) | (0.06) |
Basic earnings per share | (5.22) | 0.48 | (5.30) | 0.71 |
Continuing operations | (5.15) | 0.50 | (5.17) | 0.76 |
Discontinued operations | (0.07) | (0.03) | (0.13) | (0.06) |
Diluted earnings per share | (5.22) | 0.47 | (5.30) | 0.70 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.08 | $ 0.08 | $ 0.16 | $ 0.16 |
Weighted average common shares used in computing earnings per share: | ||||
Basic | 150,485 | 156,399 | 150,196 | 157,302 |
Incremental common shares from stock based compensation | 2,702 | 2,692 | ||
Diluted | 150,485 | 159,101 | 150,196 | 159,994 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Consolidated Statement of Comprehensive Income [Abstract] | ||||
Net income | $ (784,989) | $ 75,162 | $ (796,124) | $ 111,834 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 1,089 | 1,153 | ||
Change in cumulative translation adjustment | 14,234 | 4,392 | (445) | 5,719 |
Comprehensive income | $ (770,755) | $ 80,643 | $ (796,569) | $ 118,706 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ (796,124) | $ 111,834 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion, amortization and accretion | 320,572 | 324,671 |
Deferred income taxes | (140,031) | (10,769) |
Reduction in value of assets including discontinued operations | 807,637 | |
Stock based and performance share unit compensation expense | 24,943 | 22,118 |
Amortization of debt acquisition costs and note discount | 3,881 | 4,113 |
Other reconciling items, net | (243) | (20,047) |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||
Accounts receivable | 349,926 | (30,287) |
Inventory and other current assets | 5,273 | 17,041 |
Accounts payable | (85,195) | 6,367 |
Accrued expenses | (69,908) | (7,570) |
Income taxes | (33,280) | 28,014 |
Other, net | 46,065 | (5,740) |
Net Cash Provided by (Used in) Operating Activities, Total | 433,516 | 439,745 |
Cash flows from investing activities: | ||
Payments for capital expenditures | (240,305) | (315,233) |
Purchase of Leased Vessel | 46,442 | |
Proceeds from Sale of Available-for-sale Securities, Equity | 10,622 | |
Other | (2,909) | 9,865 |
Net Cash Provided by (Used in) Investing Activities, Total | (289,656) | (294,746) |
Cash flows from financing activities: | ||
Payment to Extinguish Capital Lease Obligation | 20,933 | |
Proceeds from issuance of long-term debt | 6,946 | |
Principal payments of long-term debt | (10,483) | (10,000) |
Payments of Ordinary Dividends, Common Stock | 24,021 | 25,216 |
Proceeds from exercise of stock options | 8,800 | 10,328 |
Payments for purchase and retirement of Common Stock | (116,539) | |
Other | (3,718) | 739 |
Net Cash Provided by (Used in) Financing Activities, Total | (43,409) | (140,688) |
Payments on revolving line of credit | 7,475 | 7,562 |
Proceeds From Revolving Line Of Credit | 7,475 | 7,562 |
Effect of exchange rate changes on cash | 6,765 | 1,295 |
Net increase in cash and cash equivalents | 107,216 | 5,606 |
Cash and cash equivalents at beginning of period | 393,046 | 196,047 |
Cash and cash equivalents at end of period | $ 500,262 | $ 201,653 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | (1) Basis of Presentation Certain information and footnote disclosures normally in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission; however, management believes the disclosures that are made are adequate to make the information presented not misleading. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Superior Energy Services, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2014 , and Management’s Discussion and Analysis of Financial Condition and Results of Operations herein. The financial information of Superior Energy Services, Inc. and subsidiaries (the Company) for the three and six months ended June 30, 2015 and 2014 has not been audited. However, in the opinion of management, all adjustments necessary to present fairly the results of operations for the periods presented have been included therein. Certain previously reported amounts have been reclassified to conform to the 2015 presentation. The results of operations for the first six months of the year are not necessarily indicative of the results of operations that might be expected for the entire year. Due to the nature of the Company’s business, the Company is involved, from time to time, in routine litigation or subject to disputes or claims regarding its business activities. Legal costs related to these matters are expensed as incurred. In management’s opinion, none of the pending litigation, disputes or claims is expected to have a material adverse effect on the Company’s financial condition, results of operations or liquidity. The Company evaluates events that occur after the balance sheet date but before the financial statements are issued for potential recognition or disclosure. Based on the evaluation, the Company determined that there were no material subsequent events for recognition or disclosure other than those disclosed herein. |
Reduction in Value of Assets
Reduction in Value of Assets | 6 Months Ended |
Jun. 30, 2015 | |
Reduction in Value of Assets [Abstract] | |
Reduction in Value of Assets [Text Block] | (2) Reduction in Value of Assets Since late 2014, oil and gas prices have declined significantly to their lowest levels since 2009. As a result of the reduced price of oil and gas and the subsequent downturn in the oil and gas industry, the Company has experienced a decline in demand for most of its services in the U.S. land businesses, primarily in the Production Services and Onshore Completion and Workover Services segments. For the quarter ended June 30, 2015, the Company recorded $807.6 million in expense related to reduction in value of assets. The components of reduction in value of assets are as follows (in thousands): Reduction in value of goodwill $ Reduction in value of long-lived assets Retirements of long-lived assets Reduction in value of assets related to sale of a business Total reduction in value of assets $ Reduction in Value of Goodwill Goodwill is tested for impairment annually as of October 1 or on an interim basis if events or circumstances indicate that the fair value of the asset has decreased below its carrying value. The Company completed a qualitative analysis of its goodwill as of June 30, 2015 and determined that further testing of the Production Services segment’s goodwill was necessary. Due to the downturn in the oil and gas industry and the impact it has had on activity levels for oilfield services, the Company’s goodwill impairment evaluation indicated that the carrying value of the Production Services segment exceeded its fair value so that goodwill was potentially impaired. The Company then performed the second step of the goodwill impairment test, which involved calculating the implied fair value of its goodwill by allocating the fair value of the Production Services segment to all of the assets and liabilities (other than goodwill) and comparing it to the carrying amount of goodwill. To estimate the fair value of the reporting unit (which is consistent with the reported business segments), the Company used a weighting of the discounted cash flow method and the public company guideline method of determining fair value of the reporting unit. The Company weighted the discounted cash flow method 80% and the public company guideline method 20% due to differences between the Company’s reporting unit and peer companies’ size, profitability and diversity of operations. The Company determined that the implied fair value of its goodwill for the Production Services segment was less than its carrying value and recorded a $575.4 million impairment of the Production Services segment’s goodwill, which is included in the reduction in value of assets in the consolidated statement of operations. The reduction in value of goodwill in the Production Services segment was primarily driven by the continued decline in demand for coiled tubing services. During the second quarter of 2015, the demand for coiled tubing services continued to decline and the Company’s forecast did not indicate a timely recovery sufficient to support the carrying value of the goodwill. Reduction in Value of Long-Lived Assets Long-lived assets, such as property, plant and equipment and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is assessed by a comparison of the carrying amount of such assets to their fair value calculated, in part, by the estimated undiscounted future cash flows expected to be generated by the assets. Cash flow estimates are based upon, among other things, historical results adjusted to reflect the best estimate of future market rates, utilization levels, and operating performance. Estimates of cash flows may differ from actual cash flows due to, among other things, changes in economic conditions or changes in an asset’s operating performance. The Company’s assets are grouped by subsidiary or division for the impairment testing, which represent the lowest level of identifiable cash flows. If the asset grouping’s fair value is less than the carrying amount of those items, impairment losses are recorded in the amount by which the carrying amount of such assets exceeds the fair value. The estimate of fair value represents the Company’s best estimate based on industry trends and reference to market transactions and is subject to variability. During the second quarter of 2015, the Company recorded $150.3 million in expense in connection with the reduction in value of its long-lived assets. The reduction in value of assets expense was comprised of $78.5 million related to equipment and $43.1 million related to intangibles in the coiled tubing division within the Production Services segment and $12.9 million related to mechanical drilling rigs included in the Onshore Completion and Workover Services segment. In addition, the Company recorded a $15.8 million expense related to reduction in carrying values of certain international accommodation units included in the Drilling Products and Services segment. The reduction in value of assets in the Production Services segment was primarily driven by the decline in demand for coiled tubing services. During the second quarter of 2015, the demand for these services continued to decline and the Company’s forecast did not indicate a timely recovery sufficient to support the carrying values of these assets. The reduction in value of assets in the Onshore Completion and Workover Services segment related to the reduction in carrying values of the mechanical drilling rigs, primarily as a result of the decreased demand for certain mechanical drilling rigs driven by the downturn in the oil and gas market. The reduction in value of assets in the Drilling Products and Services segment related to certain international accommodation units primarily driven by the decrease in demand for the rental of accommodation units and a decrease in the Company’s forecast for future rentals of these units. Retirements of Long-Lived Assets During the second quarter of 2015, the Company recorded $42.5 million for retirement and abandonment of inoperable and/or functionally obsolete long-lived assets that would require a significant cost to refurbish. The total amount recorded includes $27.3 million for the Onshore Completion and Workover Services segment and $15.2 million for the Production Services segment. Reduction in Value of Assets Related to Sale of Coiled Tubing Business in Mexico During the second quarter of 2015, the Company sold its Mexico based coiled tubing business and related asse ts . The Company received proceeds in the form of cash and a note receivable. The Company recorded a full valuation allowance on the note receivable in the amount of $ 16.8 million because its collectability was not reasonably assured. In connection with the sale, the Company recorded a $39.4 million reduction in value of assets, primarily related to property, plant and equipment and intangible assets. |
Dispositions
Dispositions | 6 Months Ended |
Jun. 30, 2015 | |
Dispositions [Abstract] | |
Dispositions | (3) Discontinued Operations During 2014, the Company conducted a strategic review and analysis of its subsea construction business. As of June 30, 2015, the Company was committed to sell the remaining assets of and exit its subsea construction business. The disposition of the remaining assets of this business is expected to be completed during 2015. During 2014, the Company also made a decision to discontinue its conventional decommissioning business. As of June 30, 2015, the Company was committed to sell the assets of and exit its conventional decommissioning business. The disposition of the assets of this business is expected to be completed during 2015. Both of the subsea construction business and conventional decommissioning business were included in the Technical Solutions segment. As of June 30, 2015 , the assets and liabilities of these businesses were classified as held for sale. For the three and six months ended June 30, 2015 and 2014 , the results of operations of these businesses are reported as discontinued operations in the consolidated statements of operations . The following summarizes certain financial information of the businesses reported as discontinued operations (in thousands): Three Months Ended June 30, 2015 2014 Revenues $ $ Loss from discontinued operations, net of tax benefit of $343 and $3,311, respectively Six Months Ended June 30, 2015 2014 Revenues $ $ Loss from discontinued operations, net of tax benefit of $1,716 and $6,068, respectively $ $ The following summarizes the assets and liabilities related to the businesses reported as discontinued operations (in thousands): June 30, 2015 December 31, 2014 Accounts receivable, net $ $ Prepaid expenses Inventory and other current assets Current assets $ $ Property, plant and equipment, net Intangible and other long-term assets, net - Long-term assets $ $ Accounts payable Accrued expenses Current liabilities $ $ Other long-term liabilities $ - $ During 2015, the Company spent $67.4 million to purchase two leased vessels. The purchase price for one of the vessels included the extinguishment of the related capital lease obligation of $20.9 million. These purchases were made to eliminate lease payments and facilitate the disposition of the vessels. During the second quarter of 2015, the Company recorded a $ 15.5 million reduction in value of marine vessels. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | (4) Earnings per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed in the same manner as basic earnings per share except that the denominator is increased to include the number of additional common shares that could have been outstanding assuming the exercise of stock options and the conversion of restricted stock units. For the three and six months ended June 30, 2015, the Company incurred a loss from continuing operations; therefore, the impact of any incremental shares would be anti-dilutive. Stock options for approximately 550,000 shares of the Company’s common stock for the three months ended June 30, 2014 and approximately 1,220,000 shares of the Company’s common stock for the six months ended June 30, 2014 were excluded in the computation of diluted earnings per share for the period as the effect would have been anti-dilutive. |
Stock Based Compensation Plans
Stock Based Compensation Plans | 6 Months Ended |
Jun. 30, 2015 | |
Stock Based Compensation Plans [Abstract] | |
Stock Based Compensation Plans | (5) Stock-Based Compensation Plans The Company maintains various stock incentive plans that provide long-term incentives to the Company’s key employees, including officers, directors, consultants and advisors (Eligible Participants). Under the stock incentive plans, the Company may grant incentive stock options, non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights, other stock-based awards or any combination thereof to Eligible Participants. The Company’s total compensation expense related to these plans was approximately $ 24.5 million and $ 22.6 million for the six months ended June 30, 2015 and 2014 , respectively, which is reflected in general and administrative expenses. |
Inventory and Other Current Ass
Inventory and Other Current Assets | 6 Months Ended |
Jun. 30, 2015 | |
Inventory and Other Current Assets [Abstract] | |
Inventory and Other Current Assets | (6) Inventory and Other Current Assets Inventory and other current assets includes approximately $174.1 million and $165.6 million of inventory as of June 30, 2015 and December 31, 2014 , respectively. Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out or weighted-average cost methods for finished goods and work-in-process. Supplies and consumables consist principally of products used in our services provided to customers. The components of the inventory balances are as follows (in thousands): June 30, 2015 December 31, 2014 Finished goods $ $ Raw materials Work-in-process Supplies and consumables Total $ $ |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt [Abstract] | |
Debt | (7) Debt Credit Facility The Company has a $ 1.0 billion bank credit facility, comprised of a $ 600 million revolving credit facility and a $ 400 million term loan. The principal balance of the term loan is payable in installments of $ 5.0 million on the last day of each fiscal quarter, which began on June 30, 2012. As of June 30, 2015 , the Company had $335 million outstanding under the term loan and had no amounts outstanding under the revolving portion of its credit facility. The Company also had approximately $ 43.2 million of letters of credit outstanding that reduce the Company’s borrowing availability under the revolving portion of the credit facility. Any amounts outstanding under the bank credit facility are due on February 7, 2017. Amounts borrowed under the credit facility bear interest at LIBOR plus margins that depend on the Company’s credit rating. Senior Unsecured Notes The Company has outstanding $ 500 million of 6 3/8% unsecured senior notes due 2019. The indenture governing the 6 3/8% senior notes requires semi-annual interest payments on May 1 and November 1 of each year through the maturity date of May 1, 2019. The Company also has outstanding $ 800 million of 7 1/8% unsecured senior notes due 2021. The indenture governing the 7 1/8% senior notes requires semi-annual interest payments on June 15 and December 15 of each year through the maturity date of December 15, 2021. |
Decommissioning Liabilities
Decommissioning Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Decommissioning Liabilities [Abstract] | |
Decommissioning Liabilities | (8) Decommissioning Liabilities The Company records estimated future decommissioning liabilities in accordance with the authoritative guidance related to asset retirement obligations, which requires entities to record the fair value of a liability for an asset retirement obligation in the period in which it is incurred, with a corresponding increase in the carrying amount of the related long-lived asset. Subsequent to initial measurement, the decommissioning liability is required to be accreted each period to present value. The Company’s decommissioning liabilities associated with the Bullwinkle platform and its related assets consist of costs related to the plugging of wells, the removal of the related platform and equipment, and site restoration. The Company reviews the adequacy of its decommissioning liabilities whenever indicators suggest that the estimated cash flows needed to satisfy the liabilities have changed materially. The following table summarizes the activity for the Company’s decommissioning liabilities for the six months ended June 30, 2015 and 2014 (in thousands): Six Months Ended June 30, 2015 2014 Decommissioning liabilities, December 31, 2014 and 2013, respectively $ $ Liabilities acquired and incurred Accretion Revisions in estimated timing and cash flows Total decommissioning liabilities, June 30, 2015 and 2014, respectively $ $ |
Notes Receivable
Notes Receivable | 6 Months Ended |
Jun. 30, 2015 | |
Notes Receivable [Abstract] | |
Notes Receivable | (9) Notes Receivable Notes receivable consist of a commitment from the seller of an oil and gas property acquired by the Company towards costs associated with the abandonment of the acquired property. Pursuant to an agreement with the seller, the Company will invoice the seller an agreed upon amount at the completion of certain decommissioning activities. The gross amount of this obligation totals $ 115.0 million and is recorded at present value using an effective interest rate of 6.58 %. The related discount is amortized to interest income based on the expected timing of completion of the decommissioning activities. The Company recorded interest income related to notes receivable of $ 0.8 million for the six months ended June 30, 2015 and 2014 . |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Information [Abstract] | |
Segment Information | (10) Segment Information Business Segments The Drilling Products and Services segment rents and sells bottom hole assemblies, premium drill pipe, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, completion, production and workover activities. It also provides on-site accommodations and bolting and machining services. The Onshore Completion and Workover Services segment provides pressure pumping services used to complete and stimulate production in new oil and gas wells, fluid handling services and well servicing rigs that provide a variety of well completion, workover and maintenance services. The Production Services segment provides intervention services such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, production testing and optimization, and remedial pumping services. It also provides specialized pressure control tools used to manage and control pressure throughout the life of a well. The Technical Solutions segment provides services typically requiring specialized engineering, manufacturing or project planning, including well control services, well containment systems, stimulation and sand control services and well plug and abandonment services. It also includes production handling arrangements and the production and sale of oil and gas. For the three and six months ended June 30, 2015 and 2014 , operating results for the Company’s subsea construction and conventional decommissioning businesses are reported in discontinued operations (see note 3). Previously those operating results were reported within the Technical Solutions segment. The Company evaluates the performance of its reportable segments based on income or loss from operations. The segment measure is calculated as follows: segment revenues less segment operating expenses, depreciation expense and allocated general and administrative expenses. General and administrative expenses are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, other methods which the Company believes to be a reasonable reflection of the utilization of services provided. The Company believes this segment measure is useful in evaluating the performance of its reportable segments because it highlights operating trends and aids analytical comparisons. Summarized financial information for the Company’s segments for the three and six months ended June 30, 2015 and 2014 is shown in the following tables (in thousands): Three Months Ended June 30, 2015 Onshore Drilling Completion Products and and Workover Production Technical Consolidated Services Services Services Solutions Unallocated Total Revenues $ $ $ $ $ - $ Cost of services and rentals (exclusive of items shown separately below) - Depreciation, depletion, amortization and accretion - General and administrative expenses - Reduction in value of assets - - Income (loss) from operations - Interest expense, net - - Other expense - - - - Income (loss) from continuing operations before income taxes $ $ $ $ $ $ Three Months Ended June 30, 2014 Onshore Drilling Completion Products and and Workover Production Technical Consolidated Services Services Services Solutions Unallocated Total Revenues $ $ $ $ $ - $ Cost of services and rentals (exclusive of items shown separately below) - Depreciation, depletion, amortization and accretion - General and administrative expenses - Income from operations - Interest expense, net - - - Other expense - - - - Income (loss) from continuing operations before income taxes $ $ $ $ $ $ Six Months Ended June 30, 2015 Onshore Drilling Completion Products and and Workover Production Technical Consolidated Services Services Services Solutions Unallocated Total Revenues $ $ $ $ $ - $ Cost of services and rentals (exclusive of items shown separately below) - Depreciation, depletion, amortization and accretion - General and administrative expenses - Reduction in value of assets - - Income (loss) from operations - Interest expense, net - - Other expense - - - - Income (loss) from continuing operations before income taxes $ $ $ $ $ $ Six Months Ended June 30, 2014 Onshore Drilling Completion Products and and Workover Production Technical Consolidated Services Services Services Solutions Unallocated Total Revenues $ $ $ $ $ - $ Cost of services and rentals (exclusive of items shown separately below) - Depreciation, depletion, amortization and accretion - General and administrative expenses - Income from operations - Interest expense, net - - - Other income (expense) - - - - Income (loss) from continuing operations before income taxes $ $ $ $ $ $ Identifiable Assets Onshore Drilling Completion Products and and Workover Production Technical Consolidated Services Services Services Solutions Unallocated Total June 30, 2015 $ $ $ $ $ - $ December 31, 2014 $ $ $ $ $ - $ As of June 30, 2015 and December 31, 2014, the Technical Solutions segment included $131.6 million and $ 116.7 million, respectively, of identifiable assets of the subsea construction and conventional decommissioning businesses that were classified as assets held for sale on the consolidated balance sheets. Geographic Segments The Company attributes revenue to various countries based on the location of where services are performed or the destination of the drilling products or equipment sold or rented. Long-lived assets consist primarily of property, plant and equipment and are attributed to various countries based on the physical location of the asset at the end of a period. As of June 30, 2015 and December 31, 2014, the assets of the subsea construction and conventional decommissioning businesses are classified as assets held for sale on the consolidated balance sheets. The Company’s revenue by geographic area for the three and six months ended June 30, 2015 and 2014 and long-lived assets by geographic area as of June 30, 2015 and December 31, 2014 are as follows (in thousands): Revenues Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 United States $ $ $ $ Other Countries Total $ $ $ $ Long-Lived Assets June 30, 2015 December 31, 2014 United States $ $ Other Countries Total, net $ $ |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (11) Fair Value Measurements The Company follows the authoritative guidance for fair value measurements relating to financial and nonfinancial assets and liabilities, including presentation of required disclosures herein. This guidance establishes a fair value framework requiring the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets and liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1 : Unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 : Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical assets or liabilities in inactive markets; or model-derived valuations or other inputs that can be corroborated by observable market data. Level 3 : Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. The following tables provide a summary of the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements at Reporting Date Using June 30, 2015 Level 1 Level 2 Level 3 Intangible and other long-term assets, net Non-qualified deferred compensation assets $ $ $ - Interest rate swaps $ - $ - Accounts payable Non-qualified deferred compensation liabilities $ - $ - Other long-term liabilities Non-qualified deferred compensation liabilities $ - $ - December 31, 2014 Level 1 Level 2 Level 3 Intangible and other long-term assets, net Non-qualified deferred compensation assets $ $ $ - Interest rate swaps $ - $ - Accounts payable Non-qualified deferred compensation liabilities $ - $ - Other long-term liabilities Non-qualified deferred compensation liabilities $ - $ - The Company’s non-qualified deferred compensation plans allow officers, certain highly compensated employees and non-employee directors to defer receipt of a portion of their compensation and contribute such amounts to one or more hypothetical investment funds. The Company entered into separate trust agreements, subject to general creditors, to segregate assets of each plan and reports the accounts of the trusts in its condensed consolidated financial statements. These investments are reported at fair value based on unadjusted quoted prices in active markets for identifiable assets and observable inputs for similar assets and liabilities, which represent Levels 1 and 2, respectively, in the fair value hierarchy. The Company has three interest rate swap agreements related to its fixed rate debt maturing in 2021 for notional amounts of $ 100 million each, whereby the Company is entitled to receive semi-annual interest payments at a fixed rate of 7 1/8% per annum and is obligated to make semi-annual interest payments at floating rates, which are adjusted every 90 days, based on LIBOR plus a fixed margin. The swap agreements, scheduled to terminate on December 15, 2021, are designated as fair value hedges of a portion of the Company’s 7 1/8% senior notes, as the derivatives have been tested to be highly effective in offsetting changes in the fair value of the underlying notes. As these derivatives are classified as fair value hedges, the changes in the fair value of the derivatives are offset against the changes in the fair value of the underlying note in interest expense, net (see note 12). The fair value of the Company’s cash equivalents, accounts receivable and current maturities of long-term debt approximates their carrying amounts. The fair value of the Company’s long-term debt was approximately $ 1, 714.8 million and $ 1,624.3 million as of June 30, 2015 and December 31, 2014 , respectively. The fair value of these debt instruments is determined by reference to the market value of the instruments as quoted in over-the-counter markets, which are Level 1 inputs. The following table reflects the fair value measurements used in testing the impairment of long-lived assets and goodwill during the six months ended June 30, 2015 (in thousands): Fair Value Measurements at Reporting Date Using June 30, 2015 (Level 1) (Level 2) (Level 3) Total Losses Property, plant and equipment, net $ $ - $ - $ $ Goodwill $ - - $ $ Intangible assets $ $ - $ - $ $ See note 2 for a discussion of reduction in value of assets expense recorded during the second quarter of 2015. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | (12) Derivative Financial Instruments From time to time, the Company may employ interest rate swaps in an attempt to achieve a more balanced debt portfolio between fixed and variable interest. The Company does not use derivative financial instruments for trading or speculative purposes. The Company has three interest rate swaps for notional amounts of $100 million each related to its 7 1/8% senior notes maturing in December 2021. These interest rate swaps are accounted for as fair value hedges since the swaps hedge against the change in fair value of fixed rate debt resulting from changes in interest rates. The Company recorded a derivative asset relating to these swaps of $4.9 million and $4.2 million within intangible and other long term assets in the consolidated balance sheets as of June 30, 2015 and December 31, 2014 , respectively . The changes in fair value of the interest rate swaps are included in the adjustments to reconcile net income to net cash provided by operating activities in the consolidated statement of cash flows. The location and effect of the derivative instruments on the condensed consolidated statement of operations, presented on a pre-tax basis, are as follows (in thousands): Three Months Ended June 30, Effect of derivative instrument Location of (gain) loss recognized 2015 2014 Interest rate swap Interest expense, net $ $ Hedged item - debt Interest expense, net $ $ Six Months Ended June 30, Effect of derivative instrument Location of (gain) loss recognized 2015 2014 Interest rate swap Interest expense, net $ $ Hedged item - debt Interest expense, net $ $ For the six months ended June 30, 2015 and 2014 , approximately $ 0.7 million and $ 1.6 million of interest income, respectively, was related to the ineffectiveness associated with these fair value hedges. Hedge ineffectiveness represents the difference between the changes in fair value of the derivative instruments and the changes in fair value of the fixed rate debt attributable to changes in the benchmark interest rate. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | (13) Income Taxes The Company follows authoritative guidance with respect to accounting for uncertainty in income taxes. It is the Company’s policy to recognize interest and applicable penalties, if any, related to uncertain tax positions in income tax expense. The Company had approximately $35.7 million and $ 30.3 million of unrecorded tax benefits as of June 30, 2015 and December 31, 2014 , respectively , all of which would impact the Company’s effective tax rate if recognized. The increase in the unrecognized tax benefits during the second quarter of 2015 was due to an expectation of unfavorable results in an ongoing foreign audit. |
Related Party Disclosures
Related Party Disclosures | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Disclosures | (14) Related Party Disclosures During 2014, the Company purchased services, products and equipment, as well as leased certain facilities, from companies affiliated with a former officer, who retired during the first quarter of 2015, of one of its subsidiaries. The Company believes the transactions reflected below with these related parties were on terms and conditions no less favorable to the Company than transactions with unaffiliated parties. For the six months ended June 30, 2014, these related party transactions totaled $85.2 million, of which $38.7 million was purchased from ORTEQ Energy Services , $0.6 million was purchased from Ortowski Construction, $5.6 million was paid to Resource Transport, LLC, $26.8 million was purchased from Texas Specialty Sands, LLC, $12.2 million was purchased from ProFuel, LLC and $1.3 million was related to facilities leased from Timber Creek Real Estate Partners. As of December 31, 2014 , the Company’s trade accounts payable includes amounts due to these companies totaling $26.8 million, of which $10.1 million was due ORTEQ Energy Services, $1.7 million was due Resource Transport, LLC, $14.0 million was due Texas Specialty Sands, LLC, and $1.0 million was due ProFuel, LLC. No amount was due Timber Creek Real Estate Partners. The Company’s President and Chief Executive Officer serves as an independent director of the board of Linn Energy, LLC (Linn), an independent oil and gas development company with focus areas in the Rockies, Mid-Continent, the Hugoton Basin, California, the Permian Basin, Michigan, Illinois and east Texas. The Company recorded revenues from Linn and its subsidiaries of $4.2 million and $10.9 million for the six months ended June 30, 2015 and 2014 , respectively. The Company had trade receivables from Linn and its subsidiaries of $1.0 million and $1.6 million as of June 30, 2015 and December 31, 2014 , respectively. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles | |
Recently Issued Accounting Pronouncements, Policy [Policy Text Block] | (15) Recently Issued Accounting Pronouncements In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-11, Inventory – Simplifying the Measurement of Inventory , which applies to inventory measured using first-in, first-out or average cost. The guidance in this update states that inventory within scope shall be measured at the lower of cost or net realizable value, and when the net realizable value of inventory is lower than its cost, the difference shall be recognized as a loss in earnings. The new standard is effective for the Company beginning on January 1, 2017 and should be applied on a prospective basis. The Company is evaluating the effect that ASU 2015-11 will have on its consolidated financial statements and related disclosures. In April 2015, the Financial Accounting Standards Board issued ASU No. 2015-03, Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs , which changes the presentation of debt issuance costs. The guidance in this update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The new standard is effective for the Company on January 1, 2016 and should be applied on a retrospective basis. The ASU is not expected to have a significant impact on the Company’s financial statements. In May 2014, the Financial Accounting Standards Board issued ASU No. 2014-09, Revenue from Contracts with Customers , which will replace most existing revenue recognition guidance in GAAP. The guidance in this update requires an entity to recognize the amount of revenue that it expects to be entitled for the transfer of promised goods or services to customers. The new standard is effective for the Company on January 1, 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the accounting guidance on its ongoing financial reporting. |
Reduction in Value of Assets (T
Reduction in Value of Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Reduction in Value of Assets [Abstract] | |
Reduction in Value of Assets [Table Text Block] | Reduction in value of goodwill $ Reduction in value of long-lived assets Retirements of long-lived assets Reduction in value of assets related to sale of a business Total reduction in value of assets $ |
Dispositions (Tables)
Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Dispositions [Abstract] | |
Components of income (loss) from discontinued operations | Three Months Ended June 30, 2015 2014 Revenues $ $ Loss from discontinued operations, net of tax benefit of $343 and $3,311, respectively Six Months Ended June 30, 2015 2014 Revenues $ $ Loss from discontinued operations, net of tax benefit of $1,716 and $6,068, respectively $ $ |
Assets and liabilities of disposal groups | June 30, 2015 December 31, 2014 Accounts receivable, net $ $ Prepaid expenses Inventory and other current assets Current assets $ $ Property, plant and equipment, net Intangible and other long-term assets, net - Long-term assets $ $ Accounts payable Accrued expenses Current liabilities $ $ Other long-term liabilities $ - $ |
Inventory and Other Current A24
Inventory and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | June 30, 2015 December 31, 2014 Finished goods $ $ Raw materials Work-in-process Supplies and consumables Total $ $ |
Decommissioning Liabilities (Ta
Decommissioning Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Decommissioning Liabilities [Abstract] | |
Summary the activity for company's decommissioning liabilities | Six Months Ended June 30, 2015 2014 Decommissioning liabilities, December 31, 2014 and 2013, respectively $ $ Liabilities acquired and incurred Accretion Revisions in estimated timing and cash flows Total decommissioning liabilities, June 30, 2015 and 2014, respectively $ $ |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Information [Abstract] | |
Identifiable Assets | Identifiable Assets Onshore Drilling Completion Products and and Workover Production Technical Consolidated Services Services Services Solutions Unallocated Total June 30, 2015 $ $ $ $ $ - $ December 31, 2014 $ $ $ $ $ - $ |
Company's information by geographic area | Revenues Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 United States $ $ $ $ Other Countries Total $ $ $ $ Long-Lived Assets June 30, 2015 December 31, 2014 United States $ $ Other Countries Total, net $ $ |
Schedule Of Segment Reporting Information By Segment | Three Months Ended June 30, 2015 Onshore Drilling Completion Products and and Workover Production Technical Consolidated Services Services Services Solutions Unallocated Total Revenues $ $ $ $ $ - $ Cost of services and rentals (exclusive of items shown separately below) - Depreciation, depletion, amortization and accretion - General and administrative expenses - Reduction in value of assets - - Income (loss) from operations - Interest expense, net - - Other expense - - - - Income (loss) from continuing operations before income taxes $ $ $ $ $ $ Three Months Ended June 30, 2014 Onshore Drilling Completion Products and and Workover Production Technical Consolidated Services Services Services Solutions Unallocated Total Revenues $ $ $ $ $ - $ Cost of services and rentals (exclusive of items shown separately below) - Depreciation, depletion, amortization and accretion - General and administrative expenses - Income from operations - Interest expense, net - - - Other expense - - - - Income (loss) from continuing operations before income taxes $ $ $ $ $ $ Six Months Ended June 30, 2015 Onshore Drilling Completion Products and and Workover Production Technical Consolidated Services Services Services Solutions Unallocated Total Revenues $ $ $ $ $ - $ Cost of services and rentals (exclusive of items shown separately below) - Depreciation, depletion, amortization and accretion - General and administrative expenses - Reduction in value of assets - - Income (loss) from operations - Interest expense, net - - Other expense - - - - Income (loss) from continuing operations before income taxes $ $ $ $ $ $ Six Months Ended June 30, 2014 Onshore Drilling Completion Products and and Workover Production Technical Consolidated Services Services Services Solutions Unallocated Total Revenues $ $ $ $ $ - $ Cost of services and rentals (exclusive of items shown separately below) - Depreciation, depletion, amortization and accretion - General and administrative expenses - Income from operations - Interest expense, net - - - Other income (expense) - - - - Income (loss) from continuing operations before income taxes $ $ $ $ $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Summary of financial assets and liabilities measured at fair value on recurring basis | Fair Value Measurements at Reporting Date Using June 30, 2015 Level 1 Level 2 Level 3 Intangible and other long-term assets, net Non-qualified deferred compensation assets $ $ $ - Interest rate swaps $ - $ - Accounts payable Non-qualified deferred compensation liabilities $ - $ - Other long-term liabilities Non-qualified deferred compensation liabilities $ - $ - December 31, 2014 Level 1 Level 2 Level 3 Intangible and other long-term assets, net Non-qualified deferred compensation assets $ $ $ - Interest rate swaps $ - $ - Accounts payable Non-qualified deferred compensation liabilities $ - $ - Other long-term liabilities Non-qualified deferred compensation liabilities $ - $ - |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | Fair Value Measurements at Reporting Date Using June 30, 2015 (Level 1) (Level 2) (Level 3) Total Losses Property, plant and equipment, net $ $ - $ - $ $ Goodwill $ - - $ $ Intangible assets $ $ - $ - $ $ |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Financial Instruments [Abstract] | |
Location and effect of the derivative instrument on the statements of operations | Three Months Ended June 30, Effect of derivative instrument Location of (gain) loss recognized 2015 2014 Interest rate swap Interest expense, net $ $ Hedged item - debt Interest expense, net $ $ Six Months Ended June 30, Effect of derivative instrument Location of (gain) loss recognized 2015 2014 Interest rate swap Interest expense, net $ $ Hedged item - debt Interest expense, net $ $ |
Reduction in Value of Assets (D
Reduction in Value of Assets (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Reduction in Value of Property Plant and Equipment Held-for-use | $ 150,256 | $ 107,142 |
Reduction in Value of Intangible Assets | 43,114 | |
Reduction in Value of Goodwill | 575,389 | 575,389 |
Retirements of long-lived assets | 42,545 | |
Reduction in value of assets related to sale of business | 39,447 | |
Reduction in value of assets | 807,637 | 807,637 |
Valuation Allowances and Reserves, Adjustments | 16,800 | |
Production Services [Member] | ||
Reduction in Value of Property Plant and Equipment Held-for-use | 78,500 | |
Reduction in Value of Intangible Assets | 43,100 | |
Retirements of long-lived assets | 15,200 | |
Reduction in value of assets | 751,577 | 751,577 |
Onshore Completion and Workover Services [Member] | ||
Reduction in Value of Property Plant and Equipment Held-for-use | 12,900 | |
Retirements of long-lived assets | 27,300 | |
Reduction in value of assets | 40,263 | 40,263 |
Drilling Products and Services [Member] | ||
Reduction in Value of Property Plant and Equipment Held-for-use | 15,800 | |
Reduction in value of assets | $ 15,797 | $ 15,797 |
Dispositions (Narrative) (Detai
Dispositions (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase price of leased vessels | $ 67.4 | |
Amount of notes receivable net | $ 115 | |
Impairment Of Long Lived Assets To Be Disposed Of | $ 15.5 | |
Ullswater Vessel [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Repayments of Long-term Capital Lease Obligations | $ 20.9 |
Dispositions (Components of inc
Dispositions (Components of income (loss) from discontinued operations, net of tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement Additional Disclosures by Disposal Groups Including Discontinued Operations [Line Items] | ||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (9,857) | $ (3,895) | $ (19,497) | $ (9,849) |
Segment, Discontinued Operations [Member] | ||||
Income Statement Additional Disclosures by Disposal Groups Including Discontinued Operations [Line Items] | ||||
Revenues | 15,167 | 38,524 | 18,107 | 77,526 |
Income tax expense (benefit) | (343) | (3,311) | (1,716) | (6,068) |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (9,857) | $ (3,895) | $ (19,497) | $ (9,849) |
Dispositions (Assets and liabil
Dispositions (Assets and liabilities of disposal groups) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets of discontinued operations | $ 131,582 | $ 116,680 |
Segment, Discontinued Operations [Member] | ||
Accounts receivable, net, of discontinued operations | 12,713 | 16,701 |
Prepaid expenses of discontinued operations | 1,393 | 2,463 |
Inventory and other current assets of discontinued operations | 1,399 | 5,576 |
Current assets of discontinued operations | 15,505 | 24,740 |
Property, plant and equipment, net, of discontinued operations | 116,077 | 91,171 |
Intangible and other long-term assets, net, of discontinued operations | 769 | |
Long-term assets of discontinued operations | 116,077 | 91,940 |
Accounts payable of discontinued operations | 1,717 | 20,530 |
Accrued expenses of discontinued operations | 9,015 | 24,496 |
Current liabilities of discontinued operations | $ 10,732 | 45,026 |
Other long-term liabilities of discontinued operations | $ 16,814 |
Earnings per Share (Details)
Earnings per Share (Details) - Jun. 30, 2014 - shares | Total | Total |
Earnings Per Share [Abstract] | ||
Stock options | 550,000 | 1,220,000 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Stock Based Compensation Plans [Abstract] | ||
Compensation expense | $ 24.5 | $ 22.6 |
Inventory and Other Current A35
Inventory and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory and Other Current Assets [Abstract] | ||
Inventory | $ 174,097 | $ 165,562 |
Finished Goods | 76,435 | 72,788 |
Work in progress | 23,439 | 20,317 |
Raw materials | 26,366 | 29,718 |
Supplies and consumables | $ 47,857 | $ 42,739 |
Debt (Details)
Debt (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Credit Facility, Term Loan Amount Outstanding | $ 335 |
Credit facility, total borrowing capacity | 1,000 |
Line of credit facility, revolving borrowing capacity | 600 |
Aggregate principal amount of term loan | 400 |
Line of Credit Facility, Periodic Payment | 5 |
Letters of Credit Outstanding, Amount | 43.2 |
Long-term Line of Credit | 0 |
Unsecured Senior Notes Due 2019 [Member] | |
Debt Instrument [Line Items] | |
Senior Notes | $ 500 |
Stated interest rate on unsecured senior notes | 6.375% |
Unsecured Senior Notes Due 2021 [Member] | |
Debt Instrument [Line Items] | |
Senior Notes | $ 800 |
Decommissioning Liabilities (De
Decommissioning Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Summary of the activity for the Company's decommissioning liabilities | |||
Decommissioning liabilities, December 31, 2014 and 2013, respectively | $ 88,000 | $ 83,519 | |
Liabilities acquired and incurred | 1,176 | 797 | |
Accretion | 2,418 | 2,344 | |
Revision estimated liabilities | 1,482 | (1,040) | |
Total decommissioning liabilities, June 30, 2015 and 2014, respectively | 93,076 | $ 85,620 | |
Long-term decommissioning liabilities | $ 93,076 | $ 88,000 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Notes Receivable [Abstract] | |||
Amount of notes receivable net | $ 115 | $ 115 | |
Interest rate percentage to record present value of notes receivable | 6.58% | ||
Company recorded interest income | $ 0.8 | $ 0.8 |
Segment Information (Financial
Segment Information (Financial information for Company's segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 710,784 | $ 1,107,552 | $ 1,628,019 | $ 2,168,970 | |
Cost of services (exclusive of items shown separately below) | 465,533 | 650,293 | 1,047,779 | 1,301,898 | |
Depreciation, depletion, amortization and accretion | 158,352 | 160,965 | 320,572 | 323,283 | |
General and administrative expenses | 129,661 | 146,853 | 280,623 | 302,772 | |
Reduction in value of assets | 807,637 | 807,637 | |||
Income from operations | (850,399) | 149,441 | (828,592) | 241,017 | |
Interest income (expense), net | (25,382) | (24,560) | (48,591) | (48,441) | |
Other Nonoperating Income (Expense) | (6,524) | 606 | (7,495) | 571 | |
Income (loss) from continuing operations before income taxes | (882,305) | 125,487 | (884,678) | 193,147 | |
Identifiable Assets | 6,215,587 | 6,215,587 | $ 7,377,389 | ||
Disposal Group, Including Discontinued Operation, Assets | 131,600 | 131,600 | 116,700 | ||
Subsea and Technical Solutions [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 127,007 | 139,646 | 242,322 | 269,742 | |
Cost of services (exclusive of items shown separately below) | 77,991 | 71,530 | 151,557 | 144,523 | |
Depreciation, depletion, amortization and accretion | 16,473 | 18,059 | 30,638 | 32,948 | |
General and administrative expenses | 29,066 | 26,646 | 58,094 | 55,249 | |
Income from operations | 3,477 | 23,411 | 2,033 | 37,022 | |
Interest income (expense), net | 424 | 398 | 841 | 763 | |
Income (loss) from continuing operations before income taxes | 3,901 | 23,809 | 2,874 | 37,785 | |
Identifiable Assets | 926,833 | 926,833 | 946,813 | ||
Production Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 208,744 | 343,876 | 460,213 | 665,111 | |
Cost of services (exclusive of items shown separately below) | 156,615 | 231,119 | 347,929 | 458,344 | |
Depreciation, depletion, amortization and accretion | 36,671 | 40,180 | 75,831 | 81,988 | |
General and administrative expenses | 36,435 | 45,243 | 80,117 | 92,431 | |
Reduction in value of assets | 751,577 | 751,577 | |||
Income from operations | (772,554) | 27,334 | (795,241) | 32,348 | |
Interest income (expense), net | (369) | (134) | |||
Income (loss) from continuing operations before income taxes | (772,923) | 27,334 | (795,375) | 32,348 | |
Identifiable Assets | 1,160,351 | 1,160,351 | 2,116,171 | ||
Onshore Completion and Workover Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 226,363 | 398,048 | 577,355 | 787,925 | |
Cost of services (exclusive of items shown separately below) | 182,143 | 274,907 | 436,258 | 559,142 | |
Depreciation, depletion, amortization and accretion | 55,479 | 55,382 | 115,290 | 115,986 | |
General and administrative expenses | 33,031 | 36,011 | 71,323 | 74,979 | |
Reduction in value of assets | 40,263 | 40,263 | |||
Income from operations | (84,553) | 31,748 | (85,779) | 37,818 | |
Income (loss) from continuing operations before income taxes | (84,553) | 31,748 | (85,779) | 37,818 | |
Identifiable Assets | 2,785,323 | 2,785,323 | 3,010,295 | ||
Drilling Products and Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 148,670 | 225,982 | 348,129 | 446,192 | |
Cost of services (exclusive of items shown separately below) | 48,784 | 72,737 | 112,035 | 139,889 | |
Depreciation, depletion, amortization and accretion | 49,729 | 47,344 | 98,813 | 92,361 | |
General and administrative expenses | 31,129 | 38,953 | 71,089 | 80,113 | |
Reduction in value of assets | 15,797 | 15,797 | |||
Income from operations | 3,231 | 66,948 | 50,395 | 133,829 | |
Income (loss) from continuing operations before income taxes | 3,231 | 66,948 | 50,395 | 133,829 | |
Identifiable Assets | 1,343,080 | 1,343,080 | $ 1,304,110 | ||
Unallocated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Interest income (expense), net | (25,437) | (24,958) | (49,298) | (49,204) | |
Other Nonoperating Income (Expense) | (6,524) | 606 | (7,495) | 571 | |
Income (loss) from continuing operations before income taxes | $ (31,961) | $ (24,352) | $ (56,793) | $ (48,633) |
Segment Information (Company's
Segment Information (Company's information by geographic area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total Revenues | $ 710,784 | $ 1,107,552 | $ 1,628,019 | $ 2,168,970 | |
Total, Long-lived assets | 2,461,629 | 2,461,629 | $ 2,733,839 | ||
UNITED STATES | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 541,337 | 932,941 | 1,301,780 | 1,825,260 | |
Long-lived assets | 2,114,080 | 2,114,080 | 2,416,306 | ||
Other Countries Member | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 169,447 | $ 174,611 | 326,239 | $ 343,710 | |
Long-lived assets | $ 347,549 | $ 347,549 | $ 317,533 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Millions | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) |
Fair Value Measurements [Abstract] | ||
Adjustment Interval of Variable Rate on Interest Rate Swap | 90 | |
Interest rate swap agreement for notional amount | $ 100 | |
Fair value of long term debt | $ 1,714.8 | $ 1,624.3 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial assets and liabilities measured at fair value on a recurring basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Non-Qualified Deferred Compensation Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible and other long-term assets | $ 11,858 | $ 12,982 |
Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible and other long-term assets | 4,860 | 4,183 |
Non Qualified Deferred Compensation Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts payable | 661 | 2,291 |
Other long-term liabilities | 17,440 | 14,720 |
Level 1 [Member] | Non-Qualified Deferred Compensation Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible and other long-term assets | $ 368 | $ 1,481 |
Level 1 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible and other long-term assets | ||
Level 1 [Member] | Non Qualified Deferred Compensation Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts payable | ||
Other long-term liabilities | ||
Level 2 [Member] | Non-Qualified Deferred Compensation Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible and other long-term assets | $ 11,490 | $ 11,501 |
Level 2 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible and other long-term assets | 4,860 | 4,183 |
Level 2 [Member] | Non Qualified Deferred Compensation Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts payable | 661 | 2,291 |
Other long-term liabilities | $ 17,440 | $ 14,720 |
Level 3 [Member] | Non-Qualified Deferred Compensation Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible and other long-term assets | ||
Level 3 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible and other long-term assets | ||
Level 3 [Member] | Non Qualified Deferred Compensation Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts payable | ||
Other long-term liabilities |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements Used in Testing) (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Fair Value Measurements [Abstract] | ||
Reduction in Value of Goodwill | $ 575,389 | $ 575,389 |
Reduction in Value of Intangible Assets | 43,114 | |
Reduction in Value of Property Plant and Equipment Held-for-use | 150,256 | 107,142 |
Impairment Of Long Lived Assets To Be Disposed Of | 15,500 | |
Finite lived intngible assets fair value used in testing for impairment | 6,345 | 6,345 |
Goodwill fair value measurement used in testing for impairment | 329,594 | 329,594 |
Property, Plant and Equipment Fair Measurment Used in Testing Impairment of Long-lived Assets | $ 97,114 | $ 97,114 |
Derivative Financial Instrume44
Derivative Financial Instruments (Narrative) (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Derivatives, Fair Value [Line Items] | |||
Adjustment Interval of Variable Rate on Interest Rate Swap | 90 | ||
Derivative asset | $ 4.9 | $ 4.2 | |
Interest income (expense) related to the ineffectiveness associated with the fair value hedge | 0.7 | $ 1.6 | |
Interest rate swap agreement for notional amount | 100 | ||
July 2013 Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate swap agreement for notional amount | $ 100 |
Derivative Financial Instrume45
Derivative Financial Instruments (The location and effect of the derivative instrument on the condensed consolidated statement of operations, pre-tax basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Amount of (gain) loss recognized | $ 586 | $ (937) | $ (677) | $ (1,573) |
Hedged Item Debt [Member] | Interest Expense, Net [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Amount of (gain) loss recognized | (2,671) | 3,613 | (486) | 7,061 |
Interest Rate Swap [Member] | Interest Expense, Net [Member] | ||||
Derivative Instruments, (Gain) Loss [Line Items] | ||||
Amount of (gain) loss recognized | $ 3,257 | $ (4,550) | $ (191) | $ (8,634) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Income Taxes [Abstract] | ||
Unrecorded tax benefits | $ 35.7 | $ 30.3 |
Related Party Disclosure (Detai
Related Party Disclosure (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Purchase of services | $ 85.2 | ||
Trade Accounts Payable | $ 26.8 | ||
Ortowski Construction [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchase of services | 0.6 | ||
ORTEQ Energy Services [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchase of services | 38.7 | ||
Trade Accounts Payable | 10.1 | ||
Resource Transport [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchase of services | 5.6 | ||
Trade Accounts Payable | 1.7 | ||
Texas Specialty Sands [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchase of services | 26.8 | ||
Trade Accounts Payable | 14 | ||
ProFuel LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchase of services | 12.2 | ||
Trade Accounts Payable | 1 | ||
TIMBER CREEK REAL ESTATE PARTNERS [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchase of services | 1.3 | ||
LINNENERGY[MEMBER] | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue from Related Parties | $ 4.2 | $ 10.9 | |
Accounts Receivable, Related Parties, Current | $ 1 | $ 1.6 |