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Segment Information
 3 Months Ended
Mar. 31, 2016
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 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.

Adjusted EBITDA

We define Adjusted EBITDA as income (loss) 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, unrealized and realized gain or loss, 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 (loss) from continuing operations (in thousands):
 
 
Three Months Ended
 
 
March 31,
 
 
2016
 
2015
Segment Adjusted EBITDA:
 
 
 
 
International Services
 
$
31,379

 
$
52,285

U.S. Services
 
715

 
44,893

Tubular Sales
 
(446
)
 
3,119

Corporate and other
 
21

 
(7
)
Adjusted EBITDA Total
 
31,669

 
100,290

Interest income (expense), net
 
206

 
8

Income tax benefit (expense)
 
806

 
(11,262
)
Depreciation and amortization
 
(29,450
)
 
(24,001
)
Gain (loss) on sale of assets
 
770

 
(184
)
Foreign currency gain (loss)
 
(41
)
 
1,533

Stock-based compensation expense
 
(4,104
)
 
(8,010
)
Severance and other charges
 
(606
)
 
(11,973
)
Unrealized and realized gains (losses)
 
(1,658
)
 
—

Income (loss) from continuing operations
 
$
(2,408
)
 
$
46,401



The following tables set 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
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2016
 
 
 
 
 
 
 
 
 
Revenue from external customers
$
83,063

 
$
48,779

 
$
21,644

 
$
—

 
$
153,486

Inter-segment revenues
17

 
4,110

 
5,665

 
(9,792
)
 
—

Adjusted EBITDA
31,379

 
715

 
(446
)
 
21

 
31,669

 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2015
 
 
 
 
 
 
 
 
 
Revenue from external customers
$
124,201

 
$
109,286

 
$
43,950

 
$
—

 
$
277,437

Inter-segment revenues
377

 
7,914

 
11,891

 
(20,182
)
 
—

Adjusted EBITDA
52,285

 
44,893

 
3,119

 
(7
)
 
100,290