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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
)