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

9 Months Ended

Sep. 30, 2015

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

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Income (loss) from continuing operations attributable to Exterran stockholders	$	(25,080	)	$	16,047		$	(13,294	)	$	24,524
Income from discontinued operations, net of tax	18,776			18,003			37,743			54,499
Less: Net income attributable to participating securities	(141		)	(448		)	(384		)	(1,157		)
Net income (loss) attributable to Exterran common stockholders	$	(6,445	)	$	33,602		$	24,065		$	77,866

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Weighted average common shares outstanding including participating securities	69,530		67,347		69,403		66,820
Less: Weighted average participating securities outstanding	(970	)	(915	)	(962	)	(959	)
Weighted average common shares outstanding — used in basic income (loss) per common share	68,560		66,432		68,441		65,861
Net dilutive potential common shares issuable:
On exercise of options and vesting of restricted stock units	*		468		*		527
On exercise of warrants	**		3,506		—		2,929
On conversion of 4.25% convertible senior notes due 2014	**		**		**		*
Weighted average common shares outstanding — used in diluted income (loss) per common share	68,560		70,406		68,441		69,317

________________________________


*	Excluded from diluted income (loss) per common share as their inclusion would have been anti-dilutive.


**	Not applicable as these instruments were not outstanding during the period.

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 September 30,		Nine Months Ended September 30,
	2015	2014	2015	2014
Net dilutive potential common shares issuable:
On exercise of options where exercise price is greater than average market value for the period	503	326	482	470
On exercise of options and vesting of restricted stock units	172	—	248	—
On exercise of warrants	*	—	—	—
On conversion of 4.25% convertible senior notes due 2014	*	*	*	9,431
Net dilutive potential common shares issuable	675	326	730	9,901

________________________________


*	Not applicable as these instruments were not outstanding during the period.

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 nine months ended September 30, 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
Loss recognized in other comprehensive income (loss), net of tax	(439		)	(1)	(6,519		)	(3)	(6,958		)
Loss reclassified from accumulated other comprehensive income (loss), net of tax	1,243			(2)	—				1,243
Other comprehensive income (loss) attributable to Exterran stockholders	804				(6,519		)		(5,715		)
Accumulated other comprehensive income (loss), September 30, 2014	$	(542	)		$	24,905			$	24,363
Accumulated other comprehensive income (loss), January 1, 2015	$	(911	)		$	16,776			$	15,865
Loss recognized in other comprehensive income (loss), net of tax	(3,553		)	(4)	(1,754		)	(6)	(5,307		)
Loss reclassified from accumulated other comprehensive income (loss), net of tax	1,602			(5)	—				1,602
Other comprehensive loss attributable to Exterran stockholders	(1,951		)		(1,754		)		(3,705		)
Accumulated other comprehensive income (loss), September 30, 2015	$	(2,862	)		$	15,022			$	12,160

________________________________

(1)

During the three months ended September 30, 2014, we recognized a gain of $0.3 million and a tax provision of $0.1 million, in other comprehensive income (loss), net of tax, related to changes in the fair value of derivative financial instruments. During the nine months ended September 30, 2014, we recognized a loss of $0.7 million and a tax benefit of $0.3 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 September 30, 2014, we reclassified a $0.7 million loss to interest expense and a tax benefit of $0.3 million to provision for income taxes in our condensed consolidated statements of operations from accumulated other comprehensive income (loss). During the nine months ended September 30, 2014, we reclassified a $1.9 million loss to interest expense and a tax benefit of $0.7 million to provision for income taxes in our condensed consolidated statements of operations from accumulated other comprehensive income (loss).


(3)	During the three and nine months ended September 30, 2014, we recognized a loss of $6.3 million and $6.5 million, respectively, in other comprehensive income (loss), net of tax, related to changes in foreign currency translation adjustment.

(4)

During the three months ended September 30, 2015, we recognized a loss of $2.5 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. During the nine months ended September 30, 2015, we recognized a loss of $5.4 million and a tax benefit of $1.8 million, in other comprehensive income (loss), net of tax, related to changes in the fair value of derivative financial instruments.

(5)

During the three months ended September 30, 2015, we reclassified a $0.9 million loss to interest expense and a tax benefit of $0.3 million to provision for income taxes in our condensed consolidated statements of operations from accumulated other comprehensive income (loss). During the nine months ended September 30, 2015, we reclassified a $2.5 million loss to interest expense and a tax benefit of $0.9 million to provision for income taxes in our condensed consolidated statements of operations from accumulated other comprehensive income (loss).


(6)	During the three and nine months ended September 30, 2015, we recognized a gain of $4.9 million and a loss of $1.8 million, respectively, in other comprehensive income (loss), net of tax, related to changes in foreign currency translation adjustment.

Summary of carrying amount and fair value of debt

The following table summarizes the carrying amount and fair value of our debt as of September 30, 2015 and December 31, 2014 (in thousands):



	September 30, 2015				December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Fixed rate debt	$	1,041,904	$	928,000	$	1,041,402	$	960,000
Floating rate debt	1,034,000		1,035,000		985,500		986,000
Total debt	$	2,075,904	$	1,963,000	$	2,026,902	$	1,946,000