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Segment Information
 12 Months Ended
Dec. 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 four reportable segments: International Services, U.S. Services, Tubular Sales and Blackhawk.

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 the active onshore oil and gas drilling regions in the U.S., including the Permian Basin, Eagle Ford Shale, Haynesville Shale, Marcellus Shale, DJ Basin 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 Blackhawk segment provides well construction and well intervention rental equipment, services and products, in addition to cementing tool expertise, in the U.S. and Mexican Gulf of Mexico, onshore U.S. and other select international locations.

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 other 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), income tax, foreign currency exchange rates and other charges and credits.

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):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Segment Adjusted EBITDA:
 
 
 
 
 
International Services
$
33,264

 
$
182,475

 
$
231,469

U.S. Services
(11,490
)
 
95,516

 
181,712

Tubular Sales
1,741

 
40,999

 
38,366

Blackhawk
1,038

 
—

 
—

Total
24,553

 
318,990

 
451,547

Corporate and other
478

 
96

 
(34
)
Interest income (expense), net
2,073

 
341

 
87

Income tax (expense) benefit
25,643

 
(37,319
)
 
(75,412
)
Depreciation and amortization
(114,215
)
 
(108,962
)
 
(90,041
)
Gain (loss) on sale of assets
(1,117
)
 
1,038

 
(289
)
Foreign currency loss
(10,819
)
 
(6,358
)
 
(17,041
)
Charges and credits (1)
(82,675
)
 
(61,716
)
 
(39,505
)
Net income (loss)
$
(156,079
)
 
$
106,110

 
$
229,312


 
 
(1) Comprised of Equity-based compensation expense (2016: $15,978; 2015: $26,318; 2014: $38,368), Merger and acquisition costs (2016: $13,784; 2015: none; 2014: none), Severance and other charges (2016: $46,406; 2015: $35,484; 2014: none), Changes in value of contingent consideration (2016: none; 2015: $(1,532); 2014: none), Unrealized and realized (gains) losses (2016: $110; 2015: none; 2014: none) and FCPA matters (2016: $6,397; 2015: $1,446; 2014: $1,137).


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
 
Blackhawk
 
Corporate
and Other
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Revenue from external customers
$
237,207

 
$
152,827

 
$
87,515

 
$
9,982

 
$
—

 
$
487,531

Inter-segment revenues
68

 
19,590

 
19,456

 
—

 
(39,114
)
 
—

Adjusted EBITDA
33,264

 
(11,490
)
 
1,741

 
1,038

 
478

 
*
Depreciation and amortization
59,435

 
47,438

 
4,087

 
3,255

 
—

 
114,215

Property, plant and equipment
247,913

 
201,772

 
73,316

 
44,023

 
—

 
567,024

Capital expenditures
23,461

 
18,112

 
540

 
14

 
—

 
42,127

 
 
 
 
 
 
 
 
 
 
 
 
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

 
95,516

 
40,999

 
—

 
96

 
*
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

 
181,712

 
38,366

 
—

 
(34
)
 
*
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


* Non-GAAP financial measure not disclosed.    

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. For the year ended December 31, 2016, one customer accounted for 13% of our revenue. No single customer accounted for more than 10% of our revenue for the years ended December 31, 2015 and 2014.

Geographic Areas
 
Year Ended December 31,
 
2016
 
2015
 
2014
Revenue:
 
 
 
 
 
United States
$
247,864

 
$
530,133

 
$
573,773

Europe/Middle East/Africa
160,651

 
314,173

 
385,064

Latin America
35,390

 
56,515

 
55,021

Asia Pacific
30,325

 
55,995

 
77,952

Other countries
13,301

 
17,784

 
60,822

 
$
487,531

 
$
974,600

 
$
1,152,632


The revenue generated in the Netherlands was immaterial for the years ended December 31, 2016, 2015 and 2014. Other than the United States, no individual country represented more than 10% of our revenue for the years ended December 31, 2016 and December 31, 2014. For the year ended December 31, 2015, the United States as well as the United Arab Emirates, which had revenues of $140.4 million, represented more than 10% of our revenue.
 
December 31,
 
2016
 
2015
Long-Lived Assets (PP&E)
 
 
 
United States
$
319,111

 
$
336,870

International
247,913

 
288,089

 
$
567,024

 
$
624,959


Based on the unique nature of our operating structure, revenue generating assets are interchangeable between two categories: (i) offshore and (ii) onshore. In addition, some onshore assets can only be used in the U.S. based upon certification. Revenues from customers and long-lived assets in the Netherlands were insignificant in each of the years presented.