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Discontinued Operations
 12 Months Ended
Dec. 31, 2011
Discontinued Operations
2. Discontinued Operations

On January 20, 2010, the Company exited the drilling and completion fluids business, which had previously been presented as one of the Company’s reportable operating segments. On that date, the Company’s wholly owned subsidiary, Ambar Lone Star Fluid Services LLC, completed the sale of substantially all of its assets, excluding billed accounts receivable. The sales price was approximately $42.6 million. Upon the Company’s exit from the drilling and completion fluids business, the Company classified its drilling and completion fluids operating segment as a discontinued operation and an impairment loss was recognized in 2009 to reduce the carrying value of the assets to be disposed of to fair value less estimated costs to sell and no significant gain or loss was recognized in connection with the sale in 2010. The results of operations of this business have been reclassified and presented as results of discontinued operations for all periods presented in these consolidated financial statements.

On January 27, 2011, the stock of the Company’s electric wireline subsidiary, Universal Wireline, Inc., was sold in a cash transaction for $25.5 million. Except for inventory, the working capital of Universal Wireline, Inc. was excluded from the sale and retained by a subsidiary of the Company. Universal Wireline, Inc. was formed in 2010 to acquire the electric wireline business of Key Energy Services, Inc., as discussed in Note 3. The results of operations of this business have been presented as results of discontinued operations in these consolidated financial statements. As of December 31, 2010, the assets to be disposed of were classified as held for sale and are presented separately within current assets under the caption “Assets held for sale” in the consolidated balance sheet. Upon being classified as held for sale, the assets to be disposed of were recorded at fair value less estimated costs to sell resulting in a charge of $2.2 million. Due to the fact that the carrying value of the assets had been adjusted to net realizable value, no significant additional gain or loss was recognized in connection with the sale.

Summarized operating results from discontinued operations for the years ended December 31, 2011, 2010 and 2009 are shown below (in thousands):

 

     2011     2010     2009  

Drilling and completion fluids revenues

    $ —      $ 3,737      $ 79,786   

Electric wireline revenues

      1,104        5,712        —   
  

 

 

    

 

 

    

 

 

  

Operating revenues from discontinued operations

    $ 1,104      $ 9,449      $ 79,786   
  

 

 

    

 

 

    

 

 

  

Loss from discontinued operations before income taxes

    $ (576 )    $ (1,499 )    $ (6,538 ) 

Income tax benefit

      209        543        2,208   
  

 

 

    

 

 

    

 

 

  

Loss from discontinued operations

    $ (367 )    $ (956 )    $ (4,330 ) 
  

 

 

    

 

 

    

 

 

  

The components of assets held for sale at December 31, 2010 are shown below (in thousands):

 

Assets held for sale:

   

Inventory

    $ 756   

Property and equipment, net

      24,769   

Reserve to reduce disposal group to fair value less costs to sell

      (2,155 ) 
  

 

 

  

Total assets held for sale

    $ 23,370