XML 41 R27.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Segment Information | 9 Months Ended
--- | ---
Sep. 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 net income (loss) 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 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 net income (loss) (in thousands):
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
Segment Adjusted EBITDA: |  |  |  |  |  |  |
International Services | $ | 4,532 |  |  | $ | 39,157 |  |  | $ | 31,752 |  |  | $ | 146,752 |
U.S. Services | (7,933 | ) |  | 18,251 |  |  | (18,433 | ) |  | 79,914 |
Tubular Sales | 165 |  |  | 15,985 |  |  | 1,343 |  |  | 27,082 |
Corporate and other | 159 |  |  | 12 |  |  | 361 |  |  | 37 |
Adjusted EBITDA Total | (3,077 | ) |  | 73,405 |  |  | 15,023 |  |  | 253,785 |
Interest income, net | 646 |  |  | 173 |  |  | 1,050 |  |  | 150 |
Income tax benefit (expense) | 6,800 |  |  | (10,771 | ) |  | 15,311 |  |  | (32,662 | )
Depreciation and amortization | (26,545 | ) |  | (29,032 | ) |  | (84,278 | ) |  | (80,743 | )
Gain on sale of assets | 46 |  |  | 1,392 |  |  | 1,095 |  |  | 521 |
Foreign currency loss | (1,696 | ) |  | (5,329 | ) |  | (5,907 | ) |  | (6,563 | )
Equity-based compensation expense | (3,828 | ) |  | (6,096 | ) |  | (12,356 | ) |  | (22,470 | )
Severance and other charges | (14,534 | ) |  | (1,186 | ) |  | (18,858 | ) |  | (14,208 | )
Change in value of contingent consideration | — |  |  | 1,532 |  |  | — |  |  | 1,532 |
Unrealized and realized gains (losses) | (10 | ) |  | — |  |  | (973 | ) |  | — |
Net income (loss) | $ | (42,198 | ) |  | $ | 24,088 |  |  | $ | (89,893 | ) |  | $ | 99,342 |
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 September 30, 2016 |  |  |  |  |  |  |  |  |
Revenue from external customers | $ | 51,028 |  |  | $ | 34,057 |  |  | $ | 20,029 |  |  | $ | — |  |  | $ | 105,114 |
Inter-segment revenues | (1 | ) |  | 3,641 |  |  | 5,036 |  |  | (8,676 | ) |  | — |
Adjusted EBITDA | 4,532 |  |  | (7,933 | ) |  | 165 |  |  | 159 |  |  | (3,077 | )
Three Months Ended September 30, 2015 |  |  |  |  |  |  |  |  |
Revenue from external customers | $ | 103,076 |  |  | $ | 74,417 |  |  | $ | 62,390 |  |  | $ | — |  |  | $ | 239,883 |
Inter-segment revenues | 102 |  |  | 5,654 |  |  | 7,188 |  |  | (12,944 | ) |  | — |
Adjusted EBITDA | 39,157 |  |  | 18,251 |  |  | 15,985 |  |  | 12 |  |  | 73,405 |
Nine Months Ended September 30, 2016 |  |  |  |  |  |  |  |  |
Revenue from external customers | $ | 191,440 |  |  | $ | 119,955 |  |  | $ | 68,151 |  |  | $ | — |  |  | $ | 379,546 |
Inter-segment revenues | 45 |  |  | 11,691 |  |  | 15,053 |  |  | (26,789 | ) |  | — |
Adjusted EBITDA | 31,752 |  |  | (18,433 | ) |  | 1,343 |  |  | 361 |  |  | 15,023 |
Nine Months Ended September 30, 2015 |  |  |  |  |  |  |  |  |
Revenue from external customers | $ | 349,918 |  |  | $ | 262,120 |  |  | $ | 159,586 |  |  | $ | — |  |  | $ | 771,624 |
Inter-segment revenues | 709 |  |  | 20,211 |  |  | 29,622 |  |  | (50,542 | ) |  | — |
Adjusted EBITDA | 146,752 |  |  | 79,914 |  |  | 27,082 |  |  | 37 |  |  | 253,785 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration