Organization and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

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 March 31,
	2018			2017
Net loss attributable to Archrock stockholders	$	(3,816	)	$	(11,685	)
Less: Net income attributable to participating securities	(157		)	(154		)
Net loss attributable to Archrock common stockholders	$	(3,973	)	$	(11,839	)

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 loss attributable to Archrock common stockholders per common share (in thousands):



	Three Months Ended March 31,
	2018		2017
Weighted average common shares outstanding including participating securities	71,299		70,763
Less: Weighted average participating securities outstanding	(1,383	)	(1,359	)
Weighted average common shares outstanding — used in basic income (loss) per common share	69,916		69,404
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	69,916		69,404

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



	Three Months Ended March 31,
	2018	2017
Net dilutive potential common shares issuable:
On exercise of options where exercise price is greater than average market value for the period	223	311
On exercise of options	78	141
On the settlement of employee stock purchase plan shares	3	—
Net dilutive potential common shares issuable	304	452

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 three months ended March 31, 2017 and 2018 (in thousands):



	Derivatives Cash Flow Hedges
Accumulated other comprehensive loss, January 1, 2017	$	(1,678	)
Gain recognized in other comprehensive income, net of tax⁽¹⁾	236
Loss reclassified from accumulated other comprehensive loss, net of tax⁽²⁾	313
Other comprehensive income attributable to Archrock stockholders	549
Accumulated other comprehensive loss, March 31, 2017	$	(1,129	)

Accumulated other comprehensive income, January 1, 2018	$	1,197
Gain recognized in other comprehensive income, net of tax⁽³⁾	1,572
Loss reclassified from accumulated other comprehensive loss, net of tax⁽⁴⁾	425
Other comprehensive income attributable to Archrock stockholders	1,997
Accumulated other comprehensive income, March 31, 2018	$	3,194

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⁽¹⁾	During the three months ended March 31, 2017, we recognized a gain of $0.3 million and a tax provision of $0.1 million, in other comprehensive income (loss) related to the change in the fair value of derivative instruments.


⁽²⁾	During the three months ended March 31, 2017, 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).


⁽³⁾	During the three months ended March 31, 2018, we recognized a gain of $2.0 million and a tax provision of $0.4 million other comprehensive income (loss) related to the change in the fair value of derivative instruments.

⁽⁴⁾

During the three months ended March 31, 2018, we reclassified a loss of $0.2 million to interest expense and an immaterial tax benefit to provision for (benefit from) income taxes in our condensed consolidated statements of operations from accumulated other comprehensive income (loss). Additionally, we reclassified stranded tax effects resulting from the TCJA of $0.3 million to accumulated deficit in our condensed consolidated balance sheets. See Note 2 (“Recent Accounting Developments”) for further detail.