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Segment Information
 6 Months Ended
Jun. 30, 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, equity-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
 
Six Months Ended
 
June 30,
 
June 30,
 
2016
 
2015
 
2016
 
2015
Segment Adjusted EBITDA:
 
 
 
 
 
 
 
International Services
$
(4,159
)
 
$
55,311

 
$
27,220

 
$
107,596

U.S. Services
(11,318
)
 
16,714

 
(10,500
)
 
61,662

Tubular Sales
1,624

 
7,978

 
1,178

 
11,097

Corporate and other
180

 
31

 
202

 
24

Adjusted EBITDA Total
(13,673
)
 
80,034

 
18,100

 
180,379

Interest income (expense), net
198

 
(31
)
 
404

 
(23
)
Income tax benefit (expense)
7,705

 
(10,629
)
 
8,511

 
(21,891
)
Depreciation and amortization
(28,283
)
 
(27,710
)
 
(57,733
)
 
(51,711
)
Gain (loss) on sale of assets
279

 
(687
)
 
1,049

 
(871
)
Foreign currency loss
(4,170
)
 
(2,767
)
 
(4,211
)
 
(1,234
)
Equity-based compensation expense
(4,320
)
 
(8,308
)
 
(8,528
)
 
(16,373
)
Severance and other charges
(3,718
)
 
(1,049
)
 
(4,324
)
 
(13,022
)
Unrealized and realized gains (losses)
695

 
—

 
(963
)
 
—

Income (loss) from continuing operations
$
(45,287
)
 
$
28,853

 
$
(47,695
)
 
$
75,254



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 June 30, 2016
 
 
 
 
 
 
 
 
 
Revenue from external customers
$
57,350

 
$
37,118

 
$
26,478

 
$
—

 
$
120,946

Inter-segment revenues
29

 
3,940

 
4,351

 
(8,320
)
 
—

Adjusted EBITDA
(4,159
)
 
(11,318
)
 
1,624

 
180

 
(13,673
)
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
Revenue from external customers
$
122,640

 
$
78,418

 
$
53,246

 
$
—

 
$
254,304

Inter-segment revenues
229

 
6,644

 
10,544

 
(17,417
)
 
—

Adjusted EBITDA
55,311

 
16,714

 
7,978

 
31

 
80,034

 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
Revenue from external customers
$
140,412

 
$
85,898

 
$
48,122

 
$
—

 
$
274,432

Inter-segment revenues
45

 
8,050

 
10,017

 
(18,112
)
 
—

Adjusted EBITDA
27,220

 
(10,500
)
 
1,178

 
202

 
18,100

 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
Revenue from external customers
$
246,841

 
$
187,704

 
$
97,196

 
$
—

 
$
531,741

Inter-segment revenues
606

 
14,558

 
22,435

 
(37,599
)
 
—

Adjusted EBITDA
107,596

 
61,662

 
11,097

 
24

 
180,379