Supplemental Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 2014

Supplemental Guarantor Financial Information

Condensed Consolidating Balance Sheet

September 30, 2014

(In thousands)

	Parent		Guarantor Subsidiaries		Other Subsidiaries		Eliminations			Consolidation
ASSETS

Current assets	$	7,589	$	694,679	$	548,677	$	—		$	1,250,945
Current assets associated with discontinued operations	—		—		189		—			189
Total current assets	7,589		694,679		548,866		—			1,251,134
Property, plant and equipment, net	—		1,144,525		2,150,408		—			3,294,933
Investments in affiliates	1,779,866		1,742,489		—		(3,522,355		)	—
Goodwill	—		—		3,738		—			3,738
Intangible and other assets, net	6,453		28,728		214,795		—			249,976
Intercompany receivables	745,246		13,248		561,346		(1,319,840		)	—
Long-term assets associated with discontinued operations	—		—		18,977		—			18,977
Total long-term assets	2,531,565		2,928,990		2,949,264		(4,842,195		)	3,567,624
Total assets	$	2,539,154	$	3,623,669	$	3,498,130	$	(4,842,195	)	$	4,818,758

LIABILITIES AND EQUITY

Current liabilities	$	8,876	$	362,898	$	259,406	$	—		$	631,180
Current liabilities associated with discontinued operations	—		—		2,037		—			2,037
Total current liabilities	8,876		362,898		261,443		—			633,217
Long-term debt	736,500		1,220		1,220,013		—			1,957,733
Intercompany payables	—		1,306,592		13,248		(1,319,840		)	—
Other long-term liabilities	—		173,093		92,698		—			265,791
Long-term liabilities associated with discontinued operations	—		—		291		—			291
Total liabilities	745,376		1,843,803		1,587,693		(1,319,840		)	2,857,032
Total equity	1,793,778		1,779,866		1,910,437		(3,522,355		)	1,961,726
Total liabilities and equity	$	2,539,154	$	3,623,669	$	3,498,130	$	(4,842,195	)	$	4,818,758

Condensed Consolidating Balance Sheet

December 31, 2013

(In thousands)

	Parent		Guarantor Subsidiaries		Other Subsidiaries		Eliminations			Consolidation
ASSETS

Current assets	$	141	$	710,801	$	509,747	$	—		$	1,220,689
Current assets associated with discontinued operations	—		—		442		—			442
Total current assets	141		710,801		510,189		—			1,221,131
Property, plant and equipment, net	—		1,143,111		1,677,161		—			2,820,272
Investments in affiliates	1,851,131		1,680,215		—		(3,531,346		)	—
Intangible and other assets, net	20,060		29,555		126,451		(11,230		)	164,836
Intercompany receivables	536,382		14,818		633,678		(1,184,878		)	—
Long-term assets associated with discontinued operations	—		—		20,918		—			20,918
Total long-term assets	2,407,573		2,867,699		2,458,208		(4,727,454		)	3,006,026
Total assets	$	2,407,714	$	3,578,500	$	2,968,397	$	(4,727,454	)	$	4,227,157

LIABILITIES AND EQUITY

Current liabilities	$	2,963	$	369,829	$	264,681	$	—		$	637,473
Current liabilities associated with discontinued operations	—		—		3,233		—			3,233
Total current liabilities	2,963		369,829		267,914		—			640,706
Long-term debt	742,661		1,539		757,955		—			1,502,155
Intercompany payables	—		1,170,060		14,818		(1,184,878		)	—
Other long-term liabilities	—		185,941		95,710		(11,230		)	270,421
Long-term liabilities associated with discontinued operations	—		—		447		—			447
Total liabilities	745,624		1,727,369		1,136,844		(1,196,108		)	2,413,729
Total equity	1,662,090		1,851,131		1,831,553		(3,531,346		)	1,813,428
Total liabilities and equity	$	2,407,714	$	3,578,500	$	2,968,397	$	(4,727,454	)	$	4,227,157

Condensed Consolidating Statement of Operations and Comprehensive Income

Condensed Consolidating Statement of Operations and Comprehensive Income

Three Months Ended September 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	367,326		$	408,847		$	(52,341	)	$	723,832
Costs of sales (excluding depreciation and amortization expense)	—			260,530			249,158			(52,341		)	457,347
Selling, general and administrative	61			43,437			51,308			—			94,806
Depreciation and amortization	—			32,040			66,216			—			98,256
Long-lived asset impairment	—			7,783			4,602			—			12,385
Restructuring charges	—			94			125			—			219
Interest expense	9,593			396			15,748			—			25,737
Intercompany charges, net	(9,006		)	8,026			980			—			—
Equity in income of affiliates	(34,481		)	(28,290		)	(4,951		)	62,771			(4,951		)
Other (income) expense, net	10			1,301			3,352			—			4,663
Income before income taxes	33,823			42,009			22,309			(62,771		)	35,370
Provision for (benefit from) income taxes	(227		)	7,528			3,914			—			11,215
Income from continuing operations	34,050			34,481			18,395			(62,771		)	24,155
Income from discontinued operations, net of tax	—			—			18,003			—			18,003
Net income	34,050			34,481			36,398			(62,771		)	42,158
Less: Net income attributable to the noncontrolling interest	—			—			(8,108		)	—			(8,108		)
Net income attributable to Exterran stockholders	34,050			34,481			28,290			(62,771		)	34,050
Other comprehensive loss attributable to Exterran stockholders	(5,630		)	(5,687		)	(5,498		)	11,185			(5,630		)
Comprehensive income attributable to Exterran stockholders	$	28,420		$	28,794		$	22,792		$	(51,586	)	$	28,420

Condensed Consolidating Statement of Operations and Comprehensive Income

Three Months Ended September 30, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	465,950		$	372,263		$	(62,629	)	$	775,584
Costs of sales (excluding depreciation and amortization expense)	—			340,418			252,864			(62,629		)	530,653
Selling, general and administrative	45			43,951			49,585			—			93,581
Depreciation and amortization	—			31,252			50,053			—			81,305
Long-lived asset impairment	—			3,737			834			—			4,571
Interest expense	18,775			391			9,716			—			28,882
Intercompany charges, net	(8,701		)	7,562			1,139			—			—
Equity in income of affiliates	(47,564		)	(24,351		)	(4,778		)	71,915			(4,778		)
Other (income) expense, net	10			(1,736		)	(3,753		)	—			(5,479		)
Income before income taxes	37,435			64,726			16,603			(71,915		)	46,849
Provision for (benefit from) income taxes	(3,542		)	17,162			3,089			—			16,709
Income from continuing operations	40,977			47,564			13,514			(71,915		)	30,140
Income from discontinued operations, net of tax	—			—			15,121			—			15,121
Net income	40,977			47,564			28,635			(71,915		)	45,261
Less: Net income attributable to the noncontrolling interest	—			—			(4,284		)	—			(4,284		)
Net income attributable to Exterran stockholders	40,977			47,564			24,351			(71,915		)	40,977
Other comprehensive income attributable to Exterran stockholders	7,511			6,984			7,105			(14,089		)	7,511
Comprehensive income attributable to Exterran stockholders	$	48,488		$	54,548		$	31,456		$	(86,004	)	$	48,488

Condensed Consolidating Statement of Operations and Comprehensive Income

Nine Months Ended September 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	1,085,562		$	1,183,139		$	(162,591	)	$	2,106,110
Costs of sales (excluding depreciation and amortization expense)	—			798,368			714,388			(162,591		)	1,350,165
Selling, general and administrative	211			131,668			151,217			—			283,096
Depreciation and amortization	—			102,651			193,083			—			295,734
Long-lived asset impairment	—			16,960			9,079			—			26,039
Restructuring charges	—			4,692			702			—			5,394
Interest expense	45,208			1,634			39,925			—			86,767
Intercompany charges, net	(27,177		)	24,568			2,609			—			—
Equity in income of affiliates	(90,910		)	(102,779		)	(14,553		)	193,689			(14,553		)
Other (income) expense, net	30			3,082			(4,554		)	—			(1,442		)
Income before income taxes	72,638			104,718			91,243			(193,689		)	74,910
Provision for (benefit from) income taxes	(6,385		)	13,808			24,071			—			31,494
Income from continuing operations	79,023			90,910			67,172			(193,689		)	43,416
Income from discontinued operations, net of tax	—			—			54,499			—			54,499
Net income	79,023			90,910			121,671			(193,689		)	97,915
Less: Net income attributable to the noncontrolling interest	—			—			(18,892		)	—			(18,892		)
Net income attributable to Exterran stockholders	79,023			90,910			102,779			(193,689		)	79,023
Other comprehensive loss attributable to Exterran stockholders	(5,715		)	(6,531		)	(6,071		)	12,602			(5,715		)
Comprehensive income attributable to Exterran stockholders	$	73,308		$	84,379		$	96,708		$	(181,087	)	$	73,308

Condensed Consolidating Statement of Operations and Comprehensive Income

Nine Months Ended September 30, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Revenues	$	—		$	1,515,558		$	1,129,181		$	(223,353	)	$	2,421,386
Costs of sales (excluding depreciation and amortization expense)	—			1,162,518			756,679			(223,353		)	1,695,844
Selling, general and administrative	205			134,473			134,782			—			269,460
Depreciation and amortization	—			96,720			147,982			—			244,702
Long-lived asset impairment	—			9,326			15,382			—			24,708
Interest expense	57,698			1,709			27,599			—			87,006
Intercompany charges, net	(26,785		)	22,820			3,965			—			—
Equity in income of affiliates	(121,084		)	(77,640		)	(14,165		)	198,724			(14,165		)
Other (income) expense, net	29			(8,353		)	(14,186		)	—			(22,510		)
Income before income taxes	89,937			173,985			71,143			(198,724		)	136,341
Provision for (benefit from) income taxes	(10,580		)	52,901			12,995			—			55,316
Income from continuing operations	100,517			121,084			58,148			(198,724		)	81,025
Income from discontinued operations, net of tax	—			—			47,531			—			47,531
Net income	100,517			121,084			105,679			(198,724		)	128,556
Less: Net income attributable to the noncontrolling interest	—			—			(28,039		)	—			(28,039		)
Net income attributable to Exterran stockholders	100,517			121,084			77,640			(198,724		)	100,517
Other comprehensive income attributable to Exterran stockholders	4,861			4,769			5,351			(10,120		)	4,861
Comprehensive income attributable to Exterran stockholders	$	105,378		$	125,853		$	82,991		$	(208,844	)	$	105,378

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2014

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Cash flows from operating activities:
Net cash provided by (used in) continuing operations	$	(1,743	)	$	79,455		$	198,456		$	—		$	276,168
Net cash provided by discontinued operations	—			—			3,954			—			3,954
Net cash provided by (used in) operating activities	(1,743		)	79,455			202,410			—			280,122
Cash flows from investing activities:
Capital expenditures	—			(116,458		)	(269,281		)	—			(385,739		)
Proceeds from sale of property, plant and equipment	—			8,274			11,462			—			19,736
Payments for MidCon acquisitions	—			(11,743		)	(483,012		)	—			(494,755		)
Capital distributions received from consolidated subsidiaries	—			40,688			—			(40,688		)	—
Increase in restricted cash	—			—			(245		)	—			(245		)
Return of investments in non-consolidated affiliates	—			—			14,750			—			14,750
Investment in consolidated subsidiaries	—			(13,813		)	—			13,813			—
Cash invested in non-consolidated affiliates	—			—			(197		)	—			(197		)
Return of investments in consolidated subsidiaries	252,482			—			—			(252,482		)	—
Net cash provided by (used in) continuing operations	252,482			(93,052		)	(726,523		)	(279,357		)	(846,450		)
Net cash provided by discontinued operations	—			—			49,835			—			49,835
Net cash provided by (used in) investing activities	252,482			(93,052		)	(676,688		)	(279,357		)	(796,615		)
Cash flows from financing activities:
Proceeds from borrowings of long-term debt	1,056,001			—			793,798			—			1,849,799
Repayments of long-term debt	(1,073,500		)	—			(332,500		)	—			(1,406,000		)
Payments for debt issuance costs	—			—			(6,923		)	—			(6,923		)
Payments above face value for redemption of convertible debt	(15,007		)	—			—			—			(15,007		)
Payments for settlement of interest rate swaps that include financing elements	—			—			(2,844		)	—			(2,844		)
Net proceeds from the sale of Partnership units	—			—			169,471			—			169,471
Proceeds from stock options exercised	11,637			—			—			—			11,637
Proceeds from stock issued pursuant to our employee stock purchase plan	1,324			—			—			—			1,324
Purchases of treasury stock	(6,372		)	—			—			—			(6,372		)
Dividends to Exterran stockholders	(30,047		)	—			—			—			(30,047		)
Stock-based compensation excess tax benefit	8,269			—			—			—			8,269
Distributions to noncontrolling partners in the Partnership	—			—			(95,581		)	40,688			(54,893		)
Net proceeds from sale of general partner units	—			—			3,573			(3,573		)	—
Capital distributions to affiliates	—			(252,482		)	—			252,482			—
Capital contributions received from parent	—			—			10,240			(10,240		)	—
Borrowings (repayments) between consolidated subsidiaries, net	(203,025		)	264,974			(61,949		)	—			—
Net cash provided by (used in) financing activities	(250,720		)	12,492			477,285			279,357			518,414
Effect of exchange rate changes on cash and cash equivalents	—			—			(3,797		)	—			(3,797		)
Net increase (decrease) in cash and cash equivalents	19			(1,105		)	(790		)	—			(1,876		)
Cash and cash equivalents at beginning of period	11			1,554			34,100			—			35,665
Cash and cash equivalents at end of period	$	30		$	449		$	33,310		$	—		$	33,789

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Other Subsidiaries			Eliminations			Consolidation
Cash flows from operating activities:
Net cash provided by continuing operations	$	6,301		$	117,958		$	97,925		$	—		$	222,184
Net cash provided by discontinued operations	—			—			6,054			—			6,054
Net cash provided by operating activities	6,301			117,958			103,979			—			228,238
Cash flows from investing activities:
Capital expenditures	—			(143,823		)	(167,418		)	3,378			(307,863		)
Proceeds from sale of property, plant and equipment	—			21,475			65,881			(3,378		)	83,978
Capital distributions received from consolidated subsidiaries	—			32,612			—			(32,612		)	—
Return of investments in non-consolidated affiliates	—			—			14,165			—			14,165
Investment in consolidated subsidiaries	—			(16,830		)	—			16,830			—
Net cash used in continuing operations	—			(106,566		)	(87,372		)	(15,782		)	(209,720		)
Net cash provided by discontinued operations	—			—			58,449			—			58,449
Net cash used in investing activities	—			(106,566		)	(28,923		)	(15,782		)	(151,271		)
Cash flows from financing activities:
Proceeds from borrowings of long-term debt	854,501			—			923,536			—			1,778,037
Repayments of long-term debt	(911,750		)	—			(884,500		)	—			(1,796,250		)
Payments for debt issuance costs	—			—			(11,929		)	—			(11,929		)
Payments for settlement of interest rate swaps that include financing elements	—			—			(1,271		)	—			(1,271		)
Proceeds from stock options exercised	5,975			—			—			—			5,975
Proceeds from stock issued pursuant to our employee stock purchase plan	1,213			—			—			—			1,213
Purchases of treasury stock	(3,594		)	—			—			—			(3,594		)
Stock-based compensation excess tax benefit	1,075			—			—			—			1,075
Distributions to noncontrolling partners in the Partnership	—			—			(78,856		)	32,612			(46,244		)
Capital contributions received from parent	—			—			16,830			(16,830		)	—
Borrowings (repayments) between consolidated subsidiaries, net	46,272			(17,339		)	(28,933		)	—			—
Net cash used in financing activities	(6,308		)	(17,339		)	(65,123		)	15,782			(72,988		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(1,516		)	—			(1,516		)
Net increase (decrease) in cash and cash equivalents	(7		)	(5,947		)	8,417			—			2,463
Cash and cash equivalents at beginning of period	24			10,461			24,116			—			34,601
Cash and cash equivalents at end of period	$	17		$	4,514		$	32,533		$	—		$	37,064