Note 11 Segment Information

The following table sets forth financial information with respect to our reportable operating segments:


		Three Months Ended
		March 31,
		2017		2016
	(In thousands)
Operating revenues:
Drilling & Rig Services:
U.S.		$	161,934	$	148,676
Canada			27,808		17,494
International			338,223		401,055
Rig Services			71,441		53,853
Subtotal Drilling & Rig Services			599,406		621,078

Other reconciling items (1)			(36,856)		(23,507)
Total		$	562,550	$	597,571


		Three Months Ended
		March 31,
		2017		2016
	(In thousands)
Adjusted operating income (loss): (2)
Drilling & Rig Services:
U.S.		$	(63,182)	$	(47,559)
Canada			(4,011)		(7,278)
International			11,974		46,872
Rig Services			(9,109)		(10,644)
Total		$	(64,328)	$	(18,609)


		Three Months Ended
		March 31,
		2017		2016
	(In thousands)
Reconciliation of adjusted operating income (loss) to net income (loss) from continuing operations before income taxes:
Total segment adjusted operating income (loss) (2)		$	(64,328)	$	(18,609)
Other reconciling items (3)			(39,604)		(35,157)
Earnings (losses) from unconsolidated affiliates			2		(167,151)
Investment income (loss)			721		343
Interest expense			(56,518)		(45,730)
Other, net			(13,510)		(182,404)
Income (loss) from continuing operations before income taxes		$	(173,237)	$	(448,708)


	March 31,		December 31,
	2017		2016
	(In thousands)
Total assets:
Drilling & Rig Services:
U.S.	$	3,246,887	$	3,172,767
Canada		332,121		329,620
International		3,552,771		3,600,057
Rig Services		370,470		359,435
Subtotal Drilling & Rig Services		7,502,249		7,461,879
Other reconciling items (3)		593,063		725,136
Total	$	8,095,312	$	8,187,015

(1)

Represents the elimination of inter-segment transactions.

(2)

Adjusted operating income (loss) is computed by subtracting the sum of direct costs, general and administrative expenses, research and engineering expenses and depreciation and amortization from operating revenues. Management evaluates the performance of our operating segments using adjusted operating income (loss), which is a segment performance measure, because it believes that this financial measure reflects our ongoing profitability and performance. In addition, securities analysts and investors use this measure as one of the metrics on which they analyze our performance. A reconciliation to income (loss) from continuing operations before income taxes is provided in the above table.

(3)

Represents the elimination of inter-segment transactions and unallocated corporate expenses, assets and capital expenditures.