Business Segments

3 Months Ended

Mar. 31, 2020

14. Business Segments

At March 31, 2020, we had three reportable business segments: (i) contract drilling of oil and natural gas wells, (ii) pressure pumping services and (iii) directional drilling services. Each of these segments represents a distinct type of business and has a separate management team that reports to our chief operating decision maker. The results of operations in these segments are regularly reviewed by the chief operating decision maker for purposes of determining resource allocation and assessing performance.

The following tables summarize selected financial information relating to our business segments (in thousands):

	Three Months Ended
	March 31,
	2020			2019
Revenues:
Contract drilling	$	267,840		$	372,743
Pressure pumping		125,107			247,601
Directional drilling		34,485			52,959
Other operations ⁽¹⁾		22,845			35,391
Elimination of intercompany revenues ⁽²⁾		(4,350	)		(4,523	)
Total revenues	$	445,927		$	704,171
Income (loss) before income taxes:
Contract drilling	$	(404,018	)	$	21,217
Pressure pumping		(35,486	)		(18,768	)
Directional drilling		(10,595	)		(5,667	)
Other operations		(18,771	)		(5,204	)
Corporate		(24,034	)		(23,697	)
Other operating (expenses) income, net ⁽³⁾		(451	)		8,736
Credit loss expense		(1,055	)		—
Interest income		657			1,032
Interest expense		(11,224	)		(12,984	)
Other		85			117
Loss before income taxes	$	(504,892	)	$	(35,218	)
Depreciation, depletion, amortization and impairment:
Contract drilling	$	111,438		$	130,317
Pressure pumping		42,671			60,135
Directional drilling		10,421			10,367
Other operations		20,259			11,788
Corporate		2,008			1,803
Total depreciation, depletion, amortization and impairment	$	186,797		$	214,410
Capital expenditures:
Contract drilling	$	49,445		$	75,725
Pressure pumping		14,280			31,400
Directional drilling		2,008			2,112
Other operations		5,264			7,773
Corporate		931			1,331
Total capital expenditures	$	71,928		$	118,341

	March 31, 2020		December 31, 2019
Identifiable assets:
Contract drilling	$	2,729,381	$	3,190,463
Pressure pumping		636,140		695,570
Directional drilling		155,350		164,273
Other operations		112,448		128,290
Corporate ⁽⁴⁾		236,965		261,019
Total assets	$	3,870,284	$	4,439,615

⁽¹⁾	^{Other operations includes our oilfield rentals business, drilling equipment service business, the electrical controls and automation business, the oil and natural gas working interests and Middle East organizational activities.}

⁽²⁾	^{Intercompany revenues consists of contract drilling and revenues from other operations for services provided to contract drilling, pressure pumping and within other operations that are generally priced at estimated external selling prices and are eliminated in consolidation.}

⁽³⁾

^{Other operating income, net includes net gains associated with the disposal of assets related to corporate strategy decisions of the executive management group. Accordingly, the related gains have been excluded from the operating results of specific segments. This caption also includes certain legal-related expenses and settlements, net of insurance reimbursements.}

⁽⁴⁾	^{Corporate assets primarily include cash on hand and certain property and equipment.}