Basis of Presentation and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2013

Basis of Presentation and Summary of Significant Accounting Policies

Summary of net income attributable to Exterran stockholders

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

Schedule of the potential shares of common stock that were included in computing dilutive income (loss) attributable to Exterran stockholders per common share

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.

Schedule of potential shares of common stock issuable, excluded from computation of diluted income (loss), attributable to Exterran stockholders per common share

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

Schedule of changes in accumulated other comprehensive income by component, net of tax excluding non-controlling interest

	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.

Summary of fair value and carrying value of debt

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