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BUSINESS SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2015
BUSINESS SEGMENT INFORMATION  
BUSINESS SEGMENT INFORMATION
7. BUSINESS SEGMENT INFORMATION

 

RPC’s service lines have been aggregated into two reportable oil and gas services segments, Technical Services and Support Services, because of the similarities between the financial performance and approach to managing the service lines within each of the segments, as well as the economic and business conditions impacting their business activity levels. Corporate includes selected administrative costs incurred by the Company that are not allocated to business units. Gains or losses on disposition of assets are reviewed by the Company’s chief decision maker on a consolidated basis, and accordingly the Company does not report these gains or losses at the segment level.

 

Technical Services include RPC’s oil and gas service lines that utilize people and equipment to perform value-added completion, production and maintenance services directly to a customer’s well. These services include pressure pumping services, snubbing, coiled tubing, nitrogen pumping, well control consulting and firefighting, downhole tools, wireline, and fluid pumping services. These Technical Services are primarily used in the completion, production and maintenance of oil and gas wells. The principal markets for this segment include the United States, including the Gulf of Mexico, the mid-continent, southwest, Rocky Mountain and Appalachian regions, and international locations including primarily Africa, Australia, Canada, China and Mexico. Customers include major multi-national and independent oil and gas producers, and selected nationally-owned oil companies.

 

Support Services include RPC’s oil and gas service lines that primarily provide equipment for customer use or services to assist customer operations. The equipment and services include drill pipe and related tools, pipe handling, inspection and storage services and oilfield training services. The demand for these services tends to be influenced primarily by customer drilling-related activity levels. The principal markets for this segment include the United States, including the Gulf of Mexico and the mid-continent regions, and selected international locations. Customers include domestic operations of major multi-national and independent oil and gas producers, and selected nationally-owned oil companies.

 

Inter-segment revenues are generally recorded in segment operating results at prices that management believes approximate prices for arm’s length transactions and are not material to operating results.

 

Certain information with respect to RPC’s business segments is set forth in the following tables:

 

    Three months ended 
September 30,		     Nine months ended
September 30,		  
(in thousands)   2015     2014     2015     2014  
Revenues:                                
Technical Services   $ 271,346     $ 576,908     $ 925,245     $ 1,588,270  
Support Services     20,578       43,776       70,509       116,937  
Total revenues   $ 291,924     $ 620,684     $ 995,754     $ 1,705,207  
Operating (loss) profit:                                
Technical Services   $ (44,240 )   $ 102,849     $ (87,631 )   $ 267,462  
Support Services     (1,850 )     14,735       599       31,190  
Corporate     (1,594 )     (3,239 )     (9,695 )     (12,407 )
Loss on disposition of assets, net     (3,791 )     (7,684 )     (1,115 )     (11,321 )
Total operating (loss) profit   $ (51,475 )   $ 106,661     $ (97,842 )   $ 274,924  
Interest expense     (250 )     (456 )     (1,331 )     (842 )
Interest income     5       4       20       14  
Other (expense) income, net     (2,219 )     (454 )     3,902       457  
(Loss) income before income taxes   $ (53,939 )   $ 105,755     $ (95,251 )   $ 274,553  

 

As of and nine months ended September 30,
2015		   Technical
Services		     Support
Services		     Corporate     Total  
(in thousands)                        
Depreciation and amortization   $ 179,778     $ 24,667     $ 379     $ 204,824  
Capital expenditures     144,715       9,732       755       155,202  
Identifiable assets   $ 1,094,802     $ 116,890     $ 76,399     $ 1,288,091  

 

As of and nine months ended September 30,
2014		   Technical
Services		     Support
Services		     Corporate     Total  
(in thousands)                        
Depreciation and amortization   $ 145,054     $ 23,727     $ 460     $ 169,241  
Capital expenditures     213,244       23,360       869       237,473  
Identifiable assets   $ 1,384,353     $ 168,123     $ 63,557     $ 1,616,033