Organization and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Loss from continuing operations attributable to Archrock stockholders	$	(10,181	)	$	(9,632	)	$	(28,553	)	$	(15,902	)
Loss from discontinued operations, net of tax	(54		)	(16		)	(54		)	(42		)
Net loss attributable to Archrock stockholders	(10,235		)	(9,648		)	(28,607		)	(15,944		)
Less: Net income attributable to participating securities	(179		)	(135		)	(513		)	(470		)
Net loss attributable to Archrock common stockholders	$	(10,414	)	$	(9,783	)	$	(29,120	)	$	(16,414	)

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 September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Weighted average common shares outstanding including participating securities	70,952		70,603		70,847		70,450
Less: Weighted average participating securities outstanding	(1,308	)	(1,539	)	(1,327	)	(1,492	)
Weighted average common shares outstanding — used in basic income (loss) per common share	69,644		69,064		69,520		68,958
Net dilutive potential common shares issuable:
On exercise of options	*		*		*		*
On the settlement of employee stock purchase plan shares	*		—		*		—
Weighted average common shares outstanding — used in diluted income (loss) per common share	69,644		69,064		69,520		68,958


*	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 September 30,		Nine Months Ended September 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	240	469	278	640
On exercise of options	100	88	116	44
On the settlement of employee stock purchase plan shares ⁽¹⁾	—	—	—	—
Net dilutive potential common shares issuable	340	557	394	684


⁽¹⁾	The Archrock, Inc. 2017 Employee Stock Purchase Plan commenced during the third quarter of 2017. For the three and nine months ended September 30, 2017 potential common shares calculated under the treasury stock method were immaterial.

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, 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⁾	(2,132		)
Loss reclassified from accumulated other comprehensive loss, net of tax⁽²⁾	994
Other comprehensive loss attributable to Archrock stockholders	(1,138		)
Accumulated other comprehensive loss, September 30, 2016	$	(2,708	)

Accumulated other comprehensive loss, January 1, 2017	$	(1,678	)
Gain recognized in other comprehensive income, net of tax⁽³⁾	1,104
Loss reclassified from accumulated other comprehensive loss, net of tax⁽⁴⁾	769
Other comprehensive income attributable to Archrock stockholders	1,873
Accumulated other comprehensive loss, September 30, 2017	$	195

⁽¹⁾

During the three months ended September 30, 2016, we recognized a gain of $0.9 million and a tax provision of $0.3 million, in other comprehensive income (loss) related to the change in the fair value of derivative instruments. During the nine months ended September 30, 2016, we recognized a loss of $3.1 million and a tax benefit of $1.0 million in other comprehensive income (loss) related to the change in the fair value of derivative instruments.

⁽²⁾

During the three months ended September 30, 2016, we reclassified a loss of $0.5 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 nine months ended September 30, 2016, we reclassified a loss of $1.5 million to interest expense and a tax benefit of $0.5 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 September 30, 2017, we recognized a gain of $1.2 million and a tax provision of $0.3 million in other comprehensive income (loss) related to the change in the fair value of derivative instruments. During the nine months ended September 30, 2017, we recognized a gain of $1.4 million and tax provision of $0.3 million in other comprehensive income (loss) related to the change in the fair value of derivative instruments.

⁽⁴⁾

During the three months ended September 30, 2017, we reclassified a loss of $0.3 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 nine months ended September 30, 2017, we reclassified a loss of $1.2 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).