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

3 Months Ended

Mar. 31, 2015

Basis of Presentation and Summary of Significant Accounting Policies

Summary of net income attributable to Exterran common stockholders used in the calculation of basic and diluted income per common share

The following table summarizes net income attributable to Exterran common stockholders used in the calculation of basic and diluted income per common share (in thousands):


	Three Months Ended March 31,
	2015			2014
Income from continuing operations attributable to Exterran stockholders	$	13,429		$	13,869
Income from discontinued operations, net of tax	18,713			18,727
Less: Net income attributable to participating securities	(410		)	(480		)
Net income attributable to Exterran common stockholders	$	31,732		$	32,116

Schedule of potential shares of common stock that were included in computing diluted income attributable to Exterran common stockholders per common share

The following table shows the potential shares of common stock that were included in computing diluted income attributable to Exterran common stockholders per common share (in thousands):


	Three Months Ended March 31,
	2015		2014
Weighted average common shares outstanding including participating securities	69,179		66,416
Less: Weighted average participating securities outstanding	(927	)	(1,026	)
Weighted average common shares outstanding — used in basic income per common share	68,252		65,390
Net dilutive potential common shares issuable:
On exercise of options and vesting of restricted stock units	282		616
On settlement of employee stock purchase plan shares	—		2
On exercise of warrants	—		1,784
On conversion of 4.25% convertible senior notes due 2014	*		**
Weighted average common shares outstanding — used in diluted income per common share	68,534		67,792

*Not applicable as the debt instrument was not outstanding during the period.

**Excluded from diluted income 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 common stockholders per common share

The following table shows the potential shares of common stock issuable that were excluded from computing diluted income (loss) attributable to Exterran common stockholders per common share as their inclusion would have been anti-dilutive (in thousands):


	Three Months Ended March 31,
	2015	2014

Net dilutive potential common shares issuable:
On exercise of options where exercise price is greater than average market value for the period	568	586
On conversion of 4.25% convertible senior notes due 2014	—	15,393
Net dilutive potential common shares issuable	568	15,979

Schedule of changes in accumulated other comprehensive income (loss) by component, net of tax, excluding noncontrolling interest

The following table presents the changes in accumulated other comprehensive income (loss) by component, net of tax and excluding noncontrolling interest, during the three months ended March 31, 2014 and 2015 (in thousands):


	Derivatives Cash Flow Hedges			Foreign Currency Translation Adjustment			Total
Accumulated other comprehensive income (loss), January 1, 2014	$	(1,346	)	$	31,424		$	30,078
Gain (loss) recognized in other comprehensive income (loss), net of tax	(254		)(1)	1,134			880
Loss reclassified from accumulated other comprehensive income (loss), net of tax	438		(2)	—			438
Other comprehensive income attributable to Exterran stockholders	184			1,134			1,318
Accumulated other comprehensive income (loss), March 31, 2014	$	(1,162	)	$	32,558		$	31,396

Accumulated other comprehensive income (loss), January 1, 2015	$	(911	)	$	16,776		$	15,865
Loss recognized in other comprehensive income (loss), net of tax	(1,502		)(3)	(10,362		)	(11,864		)
Loss reclassified from accumulated other comprehensive income (loss), net of tax	460		(4)	—			460
Other comprehensive loss attributable to Exterran stockholders	(1,042		)	(10,362		)	(11,404		)
Accumulated other comprehensive income (loss), March 31, 2015	$	(1,953	)	$	6,414		$	4,461

(1)

During the three months ended March 31, 2014, we recognized a loss of $0.4 million and a tax benefit of $0.1 million, in other comprehensive income (loss), net of tax, related to changes in the fair value of derivative financial instruments.

(2)

During the three months ended March 31, 2014, we reclassified a $0.6 million loss to interest expense and a tax benefit of $0.2 million to provision for income taxes, in our condensed consolidated statements of operations from accumulated other comprehensive income (loss).

(3)

During the three months ended March 31, 2015, we recognized a loss of $2.3 million and a tax benefit of $0.8 million, in other comprehensive income (loss), net of tax, related to changes in the fair value of derivative financial instruments.

(4)

During the three months ended March 31, 2015, we reclassified a $0.7 million loss to interest expense and a tax benefit of $0.2 million to provision for (benefit from) income taxes, in our condensed consolidated statements of operations from accumulated other comprehensive income (loss).

Summary of carrying amount and fair value of debt

The following table summarizes the carrying amount and fair value of our debt as of March 31, 2015 and December 31, 2014 (in thousands):


	March 31, 2015				December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Fixed rate debt	$	1,041,575	$	1,006,000	$	1,041,402	$	960,000
Floating rate debt	1,006,000		1,007,000		985,500		986,000
Total debt	$	2,047,575	$	2,013,000	$	2,026,902	$	1,946,000