Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2012

Summary of Significant Accounting Policies

Inventory

	September 30,		December 31,
	2012		2011
	(In thousands)
Raw materials	$	148,323	$	133,480
Work-in-progress	45,959		50,951
Finished goods	62,876		88,421
	$	257,158	$	272,852

Change in the carrying amount of goodwill for various contract drilling segments and other operating segments

	Balance as of December 31, 2011		Acquisitions and Purchase Price Adjustments		Disposals and Impairments			Cumulative Translation Adjustment		Balance as of September 30, 2012
	(In thousands)
Drilling and Rig Services:
U.S. Lower 48 Land Drilling	$	30,154	$	—	$	—		$	—	$	30,154
U.S. Offshore	7,296		—		7,296		(1)	—		—
Alaska	19,995		—		—			—		19,995
International	18,983		—		18,983		(1)	—		—
Other Rig Services	34,766		—		3,035		(2)	518		32,249
Subtotal Drilling and Rig Services	111,194		—		29,314			518		82,398
Completion and Production Services:
U.S. Land Well-servicing	55,072		—		—			—		55,072
Pressure Pumping	334,992		—		—			—		334,992
Subtotal Completion and Production Services	390,064		—		—			—		390,064
Total	$	501,258	$	—	$	29,314		$	518	$	472,462

(1)Represents the impairment of goodwill associated with our U.S. Offshore and International reporting units. As of June 30, 2012, these reporting units had no recorded goodwill. The impairments were deemed necessary due to the prolonged uncertainty of utilization of some of our rigs as a result of changes in our customers’ plans for future drilling operations in the Gulf of Mexico as well as our international markets. A significantly prolonged period of lower natural gas prices or changes in laws and regulations could continue to adversely affect the demand for and prices of our services, which could result in future goodwill impairment charges for other reporting units due to the potential impact on our estimate of our future operating results.

(2)Represents the removal of goodwill in connection with our sale of Peak USA to an unrelated third party for $13.5 million cash during the second quarter of 2012.  Peak USA, a subsidiary included in our Other Rig Services reporting unit, provided trucking and logistics services to the oilfield service market in the U.S. Lower 48 states.