XML 49 R24.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended
--- | ---
Mar. 31, 2013
Basis of Presentation and Summary of Significant Accounting Policies |
Revenue Recognition | Revenue Recognition Revenue from contract operations is recorded when earned, which generally occurs monthly when service is provided under our customer contracts. Aftermarket services revenue is recorded as products are delivered and title is transferred or services are performed for the customer. Fabrication revenue is recognized using the percentage-of-completion method when the applicable criteria are met. We estimate percentage-of-completion for compressor and accessory fabrication on a direct labor hour to total labor hour basis. Production and processing equipment fabrication percentage-of-completion is estimated using the direct labor hour to total labor hour and the cost to total cost basis. The duration of these projects is typically between three and 36 months. Fabrication revenue is recognized using the completed contract method when the applicable criteria of the percentage-of-completion method are not met. Fabrication revenue from a claim is recognized to the extent that costs related to the claim have been incurred, when collection is probable and can be reliably estimated.
Earnings (Loss) Attributable to Exterran Stockholders Per Common Share | Earnings (Loss) Attributable to Exterran Stockholders Per Common Share Basic income (loss) attributable to Exterran stockholders per common share is computed by dividing income (loss) attributable to Exterran common stockholders by the weighted average number of shares outstanding for the period. Unvested share-based awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and are included in the computation of earnings (loss) per share following the two-class method. Therefore, restricted share awards that contain nonforfeitable rights to receive dividends are included in the computation of basic and diluted earnings (loss) per share, unless their effect would be anti-dilutive. Diluted income (loss) attributable to Exterran stockholders per common share is computed using the weighted average number of shares outstanding adjusted for the incremental common stock equivalents attributed to outstanding options and warrants to purchase common stock, restricted stock, restricted stock units, stock to be issued pursuant to our employee stock purchase plan and convertible senior notes, unless their effect would be anti-dilutive. The following table summarizes net income attributable to Exterran stockholders (in thousands):
|  | Three Months Ended March 31, |
|  | 2013 |  | 2012 |
Income from continuing operations attributable to Exterran stockholders |  | $ | 16,955 |  | $ | 6,657 |
Income (loss) from discontinued operations, net of tax |  | 33,250 |  | (1,162 | )
Net income attributable to Exterran stockholders |  | $ | 50,205 |  | $ | 5,495 |
The following table shows the potential shares of common stock that were included in computing diluted income (loss) attributable to Exterran stockholders per common share (in thousands):
|  | Three Months Ended March 31, |
|  | 2013 |  | 2012 |
Weighted average common shares outstanding — used in basic income (loss) per common share |  | 65,291 |  | 64,515 |
Net dilutive potential common shares issuable: |  |  |  |  |
On exercise of options and vesting of restricted stock and restricted stock units |  | 517 |  | 54 |
On settlement of employee stock purchase plan shares |  | 2 |  | 27 |
On exercise of warrants |  | ** |  | ** |
On conversion of 4.25% convertible senior notes due 2014 |  | ** |  | ** |
On conversion of 4.75% convertible senior notes due 2014 |  | ** |  | ** |
Weighted average common shares outstanding — used in diluted income (loss) per common share |  | 65,810 |  | 64,596 |
** Excluded from diluted income (loss) per common share as their inclusion would have been anti-dilutive. There were no adjustments to net income (loss) attributable to Exterran stockholders for the diluted earnings (loss) per share calculation for the three months ended March 31, 2013 and 2012. The table below indicates the potential shares of common stock issuable that were excluded from computing diluted income (loss) attributable to Exterran stockholders per common share as their inclusion would have been anti-dilutive (in thousands):
|  | Three Months Ended March 31, |
|  | 2013 |  | 2012 |
Net dilutive potential common shares issuable: |  |  |  |  |
On exercise of options where exercise price is greater than average market value for the period |  | 926 |  | 2,510 |
On exercise of options and vesting of restricted stock and restricted stock units |  | — |  | — |
On settlement of employee stock purchase plan shares |  | — |  | — |
On exercise of warrants |  | 12,426 |  | 12,426 |
On conversion of 4.25% convertible senior notes due 2014 |  | 15,334 |  | 15,334 |
On conversion of 4.75% convertible senior notes due 2014 |  | 484 |  | 3,114 |
Net dilutive potential common shares issuable |  | 29,170 |  | 33,384 |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Components of comprehensive income (loss) are net income (loss) and all changes in equity during a period except those resulting from transactions with owners. Our accumulated other comprehensive income (loss) consists of foreign currency translation adjustments, changes in the fair value of derivative financial instruments, net of tax, that are designated as cash flow hedges and to the extent the hedge is effective, and adjustments related to changes in our ownership of the Partnership. The following table presents the changes in accumulated other comprehensive income by component, net of tax and excluding noncontrolling interest, for the three months ended March 31, 2013 and 2012:
|  | Derivatives - |  | Foreign Currency |  |  |
|  | Cash Flow Hedges |  | Translation Adjustment |  | Total |
Accumulated other comprehensive income (loss), December 31, 2012 |  | $ | (2,984 | ) | $ | 26,893 |  | $ | 23,909 |
Loss recognized in other comprehensive income, net of tax |  | (659 | ) | (5,262 | ) | (5,921 | )
Loss reclassified from accumulated other comprehensive income (loss), net of tax |  | 478 | (1) | — |  | 478 |
Other comprehensive loss attributable to Exterran stockholders |  | (181 | ) | (5,262 | ) | (5,443 | )
Accumulated other comprehensive income (loss), March 31, 2013 |  | $ | (3,165 | ) | $ | 21,631 |  | $ | 18,466 |
(1) Includes a $0.7 million loss, net of a tax benefit of $0.2 million, which are reflected in interest expense and provision for (benefit from) income taxes, respectively, in our condensed consolidated statements of operations.
|  | Derivatives - |  | Foreign Currency |  |  |
|  | Cash Flow Hedges |  | Translation Adjustment |  | Total |
Accumulated other comprehensive income (loss), December 31, 2011 |  | $ | (17,072 | ) | $ | 23,131 |  | $ | 6,059 |
Gain (loss) recognized in other comprehensive income, net of tax |  | (25 | ) | 751 |  | 726 |
Loss reclassified from accumulated other comprehensive income (loss), net of tax |  | 5,802 | (1) | — |  | 5,802 |
Other comprehensive income attributable to Exterran stockholders |  | 5,777 |  | 751 |  | 6,528 |
Accumulated other comprehensive income (loss), March 31, 2012 |  | $ | (11,295 | ) | $ | 23,882 |  | $ | 12,587 |
(1) Includes an $8.9 million loss, net of a tax benefit of $3.1 million, which are reflected in interest expense and provision for (benefit from) income taxes, respectively, in our condensed consolidated statements of operations.
Financial Instruments | Financial Instruments Our financial instruments consist of cash, restricted cash, receivables, payables, interest rate swaps and debt. At March 31, 2013 and December 31, 2012, the estimated fair values of these financial instruments approximated their carrying values as reflected in our condensed consolidated balance sheets. The fair value of our fixed rate debt has been estimated based on quoted market yields in inactive markets or model-derived calculations using market yields observed in active markets, which are Level 2 inputs. The fair value of our floating rate debt has been estimated using a discounted cash flow analysis based on interest rates offered on loans with similar terms to borrowers of similar credit quality, which are Level 3 inputs. See Note 8 for additional information regarding the fair value hierarchy. The following table summarizes the fair value and carrying value of our debt as of March 31, 2013 and December 31, 2012 (in thousands):
|  | March 31, 2013 |  | December 31, 2012 |
|  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value |
Fixed rate debt |  | $ | 1,021,154 |  | $ | 1,078,000 |  | $ | 814,423 |  | $ | 857,000 |
Floating rate debt |  | 608,500 |  | 609,000 |  | 750,500 |  | 761,000 |
Total debt |  | $ | 1,629,654 |  | $ | 1,687,000 |  | $ | 1,564,923 |  | $ | 1,618,000 |
GAAP requires that all derivative instruments (including certain derivative instruments embedded in other contracts) be recognized in the balance sheet at fair value and that changes in such fair values be recognized in earnings (loss) unless specific hedging criteria are met. Changes in the values of derivatives that meet these hedging criteria will ultimately offset related earnings effects of the hedged item pending recognition in earnings.

X
- Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for comprehensive income. + References No definition available. + Details
Name: | us-gaap_ComprehensiveIncomePolicyPolicyTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for computing basic and diluted earnings or loss per share for each class of common stock and participating security. Addresses all significant policy factors, including any antidilutive items that have been excluded from the computation and takes into account stock dividends, splits and reverse splits that occur after the balance sheet date of the latest reporting period but before the issuance of the financial statements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3630-109257 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 6, 8-16, 60 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2144384 + Details
Name: | us-gaap_EarningsPerSharePolicyTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for determining the fair value of financial instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2155942 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 8, 10, 12, 13, 14 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_FairValueOfFinancialInstrumentsPolicy
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 605 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 13.B.Q1) -URI http://asc.fasb.org/extlink&oid=6600647&loc=d3e214044-122780 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 22 -Paragraph 8, 12, 13 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18823-107790 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18726-107790 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 13 -Section B -Paragraph Question 1 + Details
Name: | us-gaap_RevenueRecognitionPolicyTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration