XML 43 R30.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Restatement of Previously Reported Consolidated Financial Statements | 12 Months Ended
--- | ---
Dec. 31, 2015
Accounting Changes and Error Corrections [Abstract] |
Restatement of Previously Reported Consolidated Financial Statements | 23. Restatement of Previously Reported Consolidated Financial Statements On November 3, 2015, Archrock completed the Spin-off of its international contract operations, international aftermarket services and global fabrication businesses into a standalone public company operating as Exterran Corporation. Since the completion of the Spin-off, Archrock and Exterran Corporation have been independent, publicly traded companies. Subsequent to the Original Filing, Archrock was notified that senior management of Exterran Corporation identified errors relating to the application of percentage-of-completion accounting principles to certain engineering, procurement and construction (“EPC”) projects in the Middle East by its Belleli subsidiary. As a result of an internal investigation, Exterran Corporation’s management identified inaccuracies related to Belleli EPC projects in estimating the total costs required to complete projects, estimating penalties for liquidated damages and cost of sales amounts charged to projects impacting the years ended December 31, 2015, 2014 and 2013 (including the unaudited quarterly periods within 2015 and 2014). Additionally, prior period errors were separately identified related to the miscalculation and recovery of non-income-based tax receivables owed to Exterran Corporation from the Brazilian government as of December 31, 2011. Along with restating its financial statements to correct the errors discussed above, Exterran Corporation recorded adjustments for certain immaterial accounting errors related to the periods covered in its Form 10-K/A amending its Annual Report on Form 10-K for the year ended December 31, 2015. Archrock’s management and the Audit Committee of its Board of Directors conducted a review of the errors and inaccuracies that were identified by Exterran Corporation in order to determine the impacts of such matters on the pre-Spin-off historical financial statements of Archrock. None of the errors and inaccuracies identified relate to Archrock’s ongoing operations. The international contract operations, international aftermarket services and global fabrication results of operations have been reported as discontinued operations, net of tax, in the Original Filing and in this Form 10-K/A in Archrock’s consolidated statement of operations for all periods presented and were previously included in the international contract operations segment, aftermarket services segment and fabrication segment prior to the Spin-off. Subsequent to the Spin-off, Archrock no longer operates in the international contract operations, international aftermarket services or fabrication businesses. The financial statements included in this Form 10-K/A have been restated to reflect the adjustments described above. As a result of the errors and inaccuracies related to Belleli EPC projects, as described above, our net loss was understated by $26.9 million during the year ended December 31, 2015, and our net income was overstated by $37.8 million and $30.6 million during the years ended December 31, 2014 and 2013, respectively. The tables below summarize the effects of the restatement on our (i) balance sheets at December 31, 2015 and 2014, (ii) statements of operations for the years ended December 31, 2015, 2014 and 2013, (iii) statements of comprehensive income for the years ended December 31, 2015, 2014 and 2013, (iv) statements of equity at December 31, 2015 and 2014 and (v) statements of cash flows for the years ended December 31, 2015, 2014 and 2013. Additionally, see Note 24 for a summary of the effect of the restatement on our unaudited quarterly periods within 2015 and 2014. The table below presents the impact of the restatement on the Company's consolidated balance sheet as of December 31, 2015 (in thousands):
| December 31, 2015
| As Previously Reported |  | Adjustments |  | As Restated
Additional paid-in capital | $ | 2,820,958 |  |  | $ | 123,939 |  |  | $ | 2,944,897 |
Accumulated deficit | (2,013,799 | ) |  | (123,939 | ) |  | (2,137,738 | )
The table below presents the impact of the restatement on the Company's consolidated statement of operations and consolidated statement of comprehensive income for the year ended December 31, 2015 (in thousands, except per share amounts):
| Year Ended December 31, 2015
| As Previously Reported |  | Adjustments |  | As Restated
Consolidated Statement of Operations |  |  |  |  |
Income from discontinued operations, net of tax | $ | 60,408 |  |  | $ | (26,731 | ) |  | $ | 33,677 |
Net loss | (98,966 | ) |  | (26,731 | ) |  | (125,697 | )
Net loss attributable to Archrock stockholders | (105,818 | ) |  | (26,731 | ) |  | (132,549 | )
Basic and diluted income (loss) per common share: |  |  |  |  |
Income from discontinued operations attributable to Archrock common stockholders | $ | 0.89 |  |  | $ | (0.39 | ) |  | $ | 0.50 |
Net loss attributable to Archrock common stockholders | (1.55 | ) |  | (0.39 | ) |  | (1.94 | )
Consolidated Statement of Comprehensive Income |  |  |  |  |
Net loss | $ | (98,966 | ) |  | $ | (26,731 | ) |  | $ | (125,697 | )
Foreign currency translation adjustment | (16,776 | ) |  | (9,969 | ) |  | (26,745 | )
Total other comprehensive loss | (18,474 | ) |  | (9,969 | ) |  | (28,443 | )
Comprehensive loss | (117,440 | ) |  | (36,700 | ) |  | (154,140 | )
Comprehensive loss attributable to Archrock stockholders | (123,253 | ) |  | (36,700 | ) |  | (159,953 | )
The table below presents the impact of the restatement on the Company's consolidated statement of equity as of December 31, 2015 (in thousands):
| December 31, 2015
| As Previously Reported |  | Adjustments |  | As Restated
Additional Paid-in Capital |  |  |  |  |
Spin-off of Exterran Corporation | $ | (930,936 | ) |  | $ | 123,939 |  |  | $ | (806,997 | )
Balance at December 31, 2015 | 2,820,958 |  |  | 123,939 |  |  | 2,944,897 |
Accumulated Other Comprehensive Income |  |  |  |  |
Spin-off of Exterran Corporation | $ | (13,218 | ) |  | $ | (15,942 | ) |  | $ | (29,160 | )
Foreign currency translation adjustment | (3,558 | ) |  | 5,973 |  |  | 2,415 |
Accumulated Deficit |  |  |  |  |
Net loss | $ | (105,818 | ) |  | $ | (26,731 | ) |  | $ | (132,549 | )
Balance at December 31, 2015 | (2,013,799 | ) |  | (123,939 | ) |  | (2,137,738 | )
Total |  |  |  |  |
Spin-off of Exterran Corporation | $ | (944,154 | ) |  | $ | 107,997 |  |  | $ | (836,157 | )
Net loss | (98,966 | ) |  | (26,731 | ) |  | (125,697 | )
Foreign currency translation adjustment | (3,558 | ) |  | 5,973 |  |  | 2,415 |
The table below presents the impact of the restatement on the Company's consolidated statement of cash flows for the year ended December 31, 2015 (in thousands):
| December 31, 2015
| As Previously Reported |  | Adjustments |  | As Restated
Net loss | $ | (98,966 | ) |  | $ | (26,731 | ) |  | $ | (125,697 | )
Income from discontinued operations, net of tax | (60,408 | ) |  | 26,731 |  |  | (33,677 | )
Spin-off of Exterran Corporation | (13,218 | ) |  | (15,942 | ) |  | (29,160 | )
The table below presents the impact of the restatement on the Company's consolidated balance sheet as of December 31, 2014 (in thousands):
| December 31, 2014
| As Previously Reported |  | Adjustments |  | As Restated
Current assets associated with discontinued operations | $ | 872,158 |  |  | $ | (13,226 | ) |  | $ | 858,932 |
Total current assets | 1,185,820 |  |  | (13,226 | ) |  | 1,172,594 |
Long-term assets associated with discontinued operations | 1,211,047 |  |  | (20,294 | ) |  | 1,190,753 |
Total assets | 4,926,839 |  |  | (33,520 | ) |  | 4,893,319 |
Current liabilities associated with discontinued operations | 472,931 |  |  | 53,980 |  |  | 526,911 |
Total current liabilities | 610,083 |  |  | 53,980 |  |  | 664,063 |
Long-term liabilities associated with discontinued operations | 109,083 |  |  | (261 | ) |  | 108,822 |
Total liabilities | 2,973,794 |  |  | 53,719 |  |  | 3,027,513 |
Accumulated other comprehensive income | 15,865 |  |  | 9,969 |  |  | 25,834 |
Accumulated deficit | (1,866,397 | ) |  | (97,208 | ) |  | (1,963,605 | )
Total Archrock stockholders’ equity | 1,797,260 |  |  | (87,239 | ) |  | 1,710,021 |
Total equity | 1,953,045 |  |  | (87,239 | ) |  | 1,865,806 |
Total liabilities and equity | 4,926,839 |  |  | (33,520 | ) |  | 4,893,319 |
The table below presents the impact of the restatement on the Company's consolidated statement of operations and consolidated statement of comprehensive income for the year ended December 31, 2013 (in thousands, except per share amounts):
| Year Ended December 31, 2014
| As Previously Reported |  | Adjustments |  | As Restated
Consolidated Statement of Operations |  |  |  |  |
Income from discontinued operations, net of tax | $ | 142,995 |  |  | $ | (37,221 | ) |  | $ | 105,774 |
Net income | 125,882 |  |  | (37,221 | ) |  | 88,661 |
Net income attributable to Archrock stockholders | 98,166 |  |  | (37,221 | ) |  | 60,945 |
Basic and diluted income per common share: |  |  |  |  |
Income from discontinued operations attributable to Archrock common stockholders | $ | 2.15 |  |  | $ | (0.56 | ) |  | $ | 1.59 |
Net income attributable to Archrock common stockholders | 1.47 |  |  | (0.56 | ) |  | 0.91 |
Consolidated Statement of Comprehensive Income |  |  |  |  |
Net income | $ | 125,882 |  |  | $ | (37,221 | ) |  | $ | 88,661 |
Foreign currency translation adjustment | (14,648 | ) |  | 2,501 |  |  | (12,147 | )
Total other comprehensive loss | (15,005 | ) |  | 2,501 |  |  | (12,504 | )
Comprehensive income | 110,877 |  |  | (34,720 | ) |  | 76,157 |
Comprehensive income attributable to Archrock stockholders | 83,953 |  |  | (34,720 | ) |  | 49,233 |
The table below presents the impact of the restatement on the Company's consolidated statement of equity as of December 31, 2014 (in thousands):
| December 31, 2014
| As Previously Reported |  | Adjustments |  | As Restated
Accumulated Other Comprehensive Income |  |  |  |  |
Foreign currency translation adjustment | $ | (14,648 | ) |  | $ | 2,501 |  |  | $ | (12,147 | )
Balance at December 31, 2014 | 15,865 |  |  | 9,969 |  |  | 25,834 |
Accumulated Deficit |  |  |  |  |
Net income | $ | 98,166 |  |  | $ | (37,221 | ) |  | $ | 60,945 |
Balance at December 31, 2014 | (1,866,397 | ) |  | (97,208 | ) |  | (1,963,605 | )
Total |  |  |  |  |
Net income | $ | 125,882 |  |  | $ | (37,221 | ) |  | $ | 88,661 |
Foreign currency translation adjustment | (14,648 | ) |  | 2,501 |  |  | (12,147 | )
Balance at December 31, 2014 | 1,953,045 |  |  | (87,239 | ) |  | 1,865,806 |
The table below presents the impact of the restatement on the Company's consolidated statement of cash flows for the year ended December 31, 2014 (in thousands):
| December 31, 2014
| As Previously Reported |  | Adjustments |  | As Restated
Net income | $ | 125,882 |  |  | $ | (37,221 | ) |  | $ | 88,661 |
Income from discontinued operations, net of tax | (142,995 | ) |  | 37,221 |  |  | (105,774 | )
The table below presents the impact of the restatement on the Company's consolidated statement of operations and consolidated statement of comprehensive income for the year ended December 31, 2013 (in thousands, except per share amounts):
| Year Ended December 31, 2013
| As Previously Reported |  | Adjustments |  | As Restated
Consolidated Statement of Operations |  |  |  |  |
Income from discontinued operations, net of tax | $ | 158,790 |  |  | $ | (29,136 | ) |  | $ | 129,654 |
Net income | 155,742 |  |  | (29,136 | ) |  | 126,606 |
Net income attributable to Archrock stockholders | 123,164 |  |  | (29,136 | ) |  | 94,028 |
Basic and diluted income per common share: |  |  |  |  |
Income from discontinued operations attributable to Archrock common stockholders | $ | 2.46 |  |  | $ | (0.45 | ) |  | $ | 2.01 |
Net income attributable to Archrock common stockholders | 1.91 |  |  | (0.45 | ) |  | 1.46 |
Consolidated Statement of Comprehensive Income |  |  |  |  |
Net income | $ | 155,742 |  |  | $ | (29,136 | ) |  | $ | 126,606 |
Foreign currency translation adjustment | 4,531 |  |  | 3,035 |  |  | 7,566 |
Total other comprehensive income | 11,748 |  |  | 3,035 |  |  | 14,783 |
Comprehensive income | 167,490 |  |  | (26,101 | ) |  | 141,389 |
Comprehensive income attributable to Archrock stockholders | 129,333 |  |  | (26,101 | ) |  | 103,232 |
The table below presents the impact of the restatement on the Company's consolidated statement of equity as of December 31, 2013 (in thousands):
| December 31, 2013
| As Previously Reported |  | Adjustments |  | As Restated
Accumulated Other Comprehensive Income |  |  |  |  |
Balance, January 1, 2013 | $ | 23,909 |  |  | $ | 4,433 |  |  | $ | 28,342 |
Foreign currency translation adjustment | 4,531 |  |  | 3,035 |  |  | 7,566 |
Balance at December 31, 2013 | 30,078 |  |  | 7,468 |  |  | 37,546 |
Accumulated Deficit |  |  |  |  |
Balance, January 1, 2013 | $ | (2,047,408 | ) |  | $ | (30,851 | ) |  | $ | (2,078,259 | )
Net income | 123,164 |  |  | (29,136 | ) |  | 94,028 |
Balance at December 31, 2013 | (1,924,244 | ) |  | (59,987 | ) |  | (1,984,231 | )
Total |  |  |  |  |
Balance, January 1, 2013 | $ | 1,702,259 |  |  | $ | (26,418 | ) |  | $ | 1,675,841 |
Net income | 155,742 |  |  | (29,136 | ) |  | 126,606 |
Foreign currency translation adjustment | 4,531 |  |  | 3,035 |  |  | 7,566 |
Balance at December 31, 2013 | 1,813,428 |  |  | (52,519 | ) |  | 1,760,909 |
The table below presents the impact of the restatement on the Company's consolidated statement of cash flows for the year ended December 31, 2013 (in thousands):
| Year ended December 31, 2013
| As Previously Reported |  | Adjustments |  | As Restated
Net income | $ | 155,742 |  |  | $ | (29,136 | ) |  | $ | 126,606 |
Income from discontinued operations, net of tax | (158,790 | ) |  | 29,136 |  |  | (129,654 | )

X
- References No definition available. + Details
Name: | us-gaap_AccountingChangesAndErrorCorrectionsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB Topic 6.G.2.b(b)(1)) -URI http://asc.fasb.org/extlink&oid=26874127&loc=d3e31034-122693 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22644-107794 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 45 -Paragraph 23 -URI http://asc.fasb.org/extlink&oid=6368906&loc=d3e21914-107793 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22595-107794 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22499-107794 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 1.N.Q3) -URI http://asc.fasb.org/extlink&oid=26874127&loc=d3e30840-122693 + Details
Name: | us-gaap_AccountingChangesAndErrorCorrectionsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration