Organization and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2017

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 loss attributable to Archrock common stockholders used in the calculation of basic and diluted loss per common share (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Loss from continuing operations attributable to Archrock stockholders	$	(6,687	)	$	(4,451	)	$	(18,372	)	$	(6,270	)
Loss from discontinued operations, net of tax	—			(26		)	—			(26		)
Net Loss attributable to Archrock stockholders	(6,687		)	(4,477		)	(18,372		)	(6,296		)
Less: Net income attributable to participating securities	(180		)	(151		)	(334		)	(335		)
Net loss attributable to Archrock common stockholders	$	(6,867	)	$	(4,628	)	$	(18,706	)	$	(6,631	)

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 Archrock common stockholders per common share (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Weighted average common shares outstanding including participating securities	70,908		70,627		70,833		70,390
Less: Weighted average participating securities outstanding	(1,320	)	(1,606	)	(1,337	)	(1,468	)
Weighted average common shares outstanding — used in basic income (loss) per common share	69,588		69,021		69,496		68,922
Net dilutive potential common shares issuable:
On exercise of options	*		*		*		*
Weighted average common shares outstanding — used in diluted income (loss) per common share	69,588		69,021		69,496		68,922


*	Excluded from diluted income (loss) 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 Archrock common stockholders per common share as their inclusion would have been anti-dilutive (in thousands):



	Three Months Ended June 30,		Six Months Ended June 30,
	2017	2016	2017	2016
Net dilutive potential common shares issuable:
On exercise of options where exercise price is greater than average market value for the period	282	534	297	725
On exercise of options	108	45	125	23
Net dilutive potential common shares issuable	390	579	422	748

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 six months ended June 30, 2016 and 2017 (in thousands):



	Derivatives Cash Flow Hedges
Accumulated other comprehensive loss, January 1, 2016	$	(1,570	)
Loss recognized in other comprehensive loss, net of tax⁽¹⁾	(2,666		)
Loss reclassified from accumulated other comprehensive loss, net of tax⁽²⁾	655
Other comprehensive loss attributable to Archrock stockholders	(2,011		)
Accumulated other comprehensive loss, June 30, 2016	$	(3,581	)

Accumulated other comprehensive loss, January 1, 2017	$	(1,678	)
Gain recognized in other comprehensive income, net of tax⁽³⁾	173
Loss reclassified from accumulated other comprehensive loss, net of tax⁽⁴⁾	569
Other comprehensive income attributable to Archrock stockholders	742
Accumulated other comprehensive loss, June 30, 2017	$	(936	)

⁽¹⁾

During the three months ended June 30, 2016, we recognized a loss of $1.5 million and a tax benefit of $0.5 million, in other comprehensive income (loss) related to the change in the fair value of derivative financial instruments. During the six months ended June 30, 2016, we recognized a loss of $4.0 million and a tax benefit of $1.3 million, in other comprehensive income (loss) related to the change in the fair value of derivative financial instruments.

⁽²⁾

During the three months ended June 30, 2016, we reclassified a loss of $0.5 million 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). During the six months ended June 30, 2016, we reclassified a loss of $1.0 million to interest expense and a tax benefit of $0.4 million to provision for (benefit from) income taxes in our condensed consolidated statements of operations from accumulated other comprehensive income (loss).

⁽³⁾

During the three months ended June 30, 2017, we recognized a loss of $0.1 million and tax benefit of $0.1 million in other comprehensive income (loss) related to the change in the fair value of derivative financial instruments. During the six months ended June 30, 2017, we recognized a gain of $0.2 million and immaterial tax expense in other comprehensive income (loss) related to the change in the fair value of derivative financial instruments.

⁽⁴⁾

During the three months ended June 30, 2017, we reclassified a loss of $0.4 million to interest expense and a tax benefit of $0.1 million to provision for (benefit from) income taxes in our condensed consolidated statements of operations from accumulated other comprehensive income (loss). During the six months ended June 30, 2017, we reclassified a loss of $0.9 million to interest expense and a tax benefit of $0.3 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 June 30, 2017 and December 31, 2016 (in thousands):



	June 30, 2017				December 31, 2016
	Carrying Amount⁽¹⁾		Fair Value		Carrying Amount⁽¹⁾		Fair Value
Fixed rate debt	$	685,152	$	699,000	$	683,577	$	686,000
Floating rate debt	757,500		759,000		758,147		759,000
Total debt	$	1,442,652	$	1,458,000	$	1,441,724	$	1,445,000


⁽¹⁾	Carrying amounts are shown net of unamortized debt discounts and unamortized deferred financing costs. See Note 7 (“Long-Term Debt”) for further details.