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Segment Information
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Information
Segment Information

Reporting Segments

Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. We are comprised of three reportable segments: International Services, U.S. Services and Tubular Sales.

The International Services segment provides tubular services in international offshore markets and in several onshore international regions. Our customers in these international markets are primarily large exploration and production companies, including integrated oil and gas companies and national oil and gas companies.

The U.S. Services segment provides tubular services in almost all of the active onshore oil and gas drilling regions in the U.S., including the Permian Basin, Bakken Shale, Barnett Shale, Eagle Ford Shale, Haynesville Shale, Marcellus Shale and Utica Shale, as well as in the U.S. Gulf of Mexico.

The Tubular Sales segment designs, manufactures and distributes large outside diameter ("OD") pipe, connectors and casing attachments and sells large OD pipe originally manufactured by various pipe mills. We also provide specialized fabrication and welding services in support of offshore projects, including drilling and production risers, flowlines and pipeline end terminations, as well as long length tubulars (up to 300 feet in length) for use as caissons or pilings. This segment also designs and manufactures proprietary equipment for use in our International and U.S. Services segments.

The operating results of the Tubular Sales component that was sold in June 2013 have been accounted for as discontinued operations and have been excluded from the segment results below.

Adjusted EBITDA

We define Adjusted EBITDA as income from continuing operations before net interest income or expense, depreciation and amortization, income tax benefit or expense, asset impairments, gain or loss on sale of assets, foreign currency gain or loss, stock-based compensation, other non-cash adjustments and unusual charges. We review Adjusted EBITDA on both a consolidated basis and on a segment basis. We use Adjusted EBITDA to assess our financial performance because it allows us to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and items outside the control of our management team (such as income tax rates). Adjusted EBITDA has limitations as an analytical tool and should not be considered as an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with generally accepted accounting principles in the U.S. ("GAAP").

Our CODM uses Adjusted EBITDA as the primary measure of segment reporting performance.

The following table presents a reconciliation of Segment Adjusted EBITDA to income from continuing operations (in thousands):
 
Year Ended December 31,
 
2015
 
2014
 
2013
Segment Adjusted EBITDA:
 
 
 
 
 
International Services
$
182,475

 
$
231,469

 
$
199,620

U.S. Services
93,871

 
180,575

 
198,442

Tubular Sales
40,999

 
38,366

 
40,624

Total
317,345

 
450,410

 
438,686

Corporate and other
96

 
(34
)
 
53

Adjusted EBITDA Total
317,441

 
450,376

 
438,739

Interest income (expense), net
341

 
87

 
(653
)
Income tax expense
(37,319
)
 
(75,412
)
 
(38,727
)
Depreciation and amortization
(108,962
)
 
(90,041
)
 
(78,082
)
Gain on sale of assets
1,038

 
(289
)
 
122

Foreign currency loss
(6,358
)
 
(17,041
)
 
(2,556
)
Stock-based compensation expense
(26,119
)
 
(38,368
)
 
(7,220
)
Severance and other costs
(35,484
)
 
—

 
—

Change in value of contingent consideration
1,532

 
—

 
—

IPO transaction-related costs (1)
—

 
—

 
(3,428
)
Income from continuing operations
$
106,110

 
$
229,312

 
$
308,195


 
 
(1)
Represents charges incurred in connection with our IPO, primarily those amounts attributable to the restructuring in advance of the IPO.

The following table sets forth certain financial information with respect to our reportable segments. Included in “Corporate and Other” are intersegment eliminations and costs associated with activities of a general nature (in thousands):
 
International
Services
 
U.S.
Services
 
Tubular Sales
 
Corporate
and Other
 
Total
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
Revenue from external customers
$
442,107

 
$
326,437

 
$
206,056

 
$
—

 
$
974,600

Inter-segment revenues
754

 
25,844

 
35,927

 
(62,525
)
 
—

Adjusted EBITDA
182,475

 
93,871

 
40,999

 
96

 
317,441

Depreciation and amortization
58,163

 
46,548

 
4,251

 
—

 
108,962

Property, plant and equipment
288,089

 
248,153

 
88,717

 
—

 
624,959

Capital expenditures
42,772

 
28,881

 
28,070

 
—

 
99,723

 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
 
 
 
 
Revenue from external customers
$
537,259

 
$
439,638

 
$
175,735

 
$
—

 
$
1,152,632

Inter-segment revenues
1,471

 
23,734

 
64,542

 
(89,747
)
 
—

Adjusted EBITDA
231,469

 
180,575

 
38,366

 
(34
)
 
450,376

Depreciation and amortization
52,363

 
34,314

 
3,364

 
—

 
90,041

Property, plant and equipment
314,031

 
149,485

 
116,626

 
—

 
580,142

Capital expenditures
100,483

 
30,215

 
42,254

 
—

 
172,952

 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2013
 
 
 
 
 
 
 
 
 
Revenue from external customers
$
475,297

 
$
434,940

 
$
167,485

 
$
—

 
$
1,077,722

Inter-segment revenues
3,275

 
20,552

 
71,271

 
(95,098
)
 
—

Adjusted EBITDA
199,620

 
198,442

 
40,624

 
53

 
438,739

Depreciation and amortization
41,177

 
33,102

 
3,803

 
—

 
78,082

Property, plant and equipment
278,452

 
132,502

 
100,245

 
—

 
511,199

Capital expenditures
97,120

 
56,586

 
30,798

 
—

 
184,504


The CODM does not review total assets by segment as part of the financial information provided; therefore, no asset information is provided in the above table.

We are a Netherlands based company and we derive our revenue from services and product sales to clients primarily in the oil and gas industry. No single customer accounted for more than 10% of our revenue for the years ended December 31, 2015, 2014 and 2013.

Geographic Areas
 
Year Ended December 31,
 
2015
 
2014
 
2013
Revenue:
 
 
 
 
 
United States
$
530,133

 
$
573,773

 
$
542,562

Europe/Middle East/Africa
314,173

 
385,064

 
310,603

Latin America
56,515

 
55,021

 
78,019

Asia Pacific
55,995

 
77,952

 
63,709

Other countries
17,784

 
60,822

 
82,829

 
$
974,600

 
$
1,152,632

 
$
1,077,722


The revenue generated in The Netherlands was immaterial for the years ended December 31, 2015, 2014 and 2013. Other than the United States and Dubai, which had revenues of $140.4 million, no individual country represented more than 10% of our revenue for the year ended December 31, 2015. Other than the United States, no individual country represented more than 10% of our revenue for each of the years ended December 31, 2014 and 2013.
 
December 31,
 
2015
 
2014
Long-Lived Assets (PP&E)
 
 
 
United States
$
336,870

 
$
266,111

International
288,089

 
314,031

 
$
624,959

 
$
580,142


Based on the unique nature of our operating structure, revenue generating assets are interchangeable between international countries and are not separately identifiable. Revenues from customers and long-lived assets in The Netherlands were insignificant in each of the years presented.