Segment Information

3 Months Ended

Mar. 31, 2013

Segment Information

Segment Information

Note 13 Segment Information

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

	Three Months Ended March 31,
	2013			2012
	(In thousands)
Operating revenues and Earnings (losses) from unconsolidated affiliates from continuing operations:
Drilling & Rig Services:
U.S.	$	484,773		$	627,105
Canada	126,867			144,735
International	321,516			306,465
Rig Services (1)	179,310			241,758
Subtotal Drilling & Rig Services (2)	1,112,466			1,320,063
Completion & Production Services:
Production Services	251,571			257,259
Completion Services	262,138			398,036
Subtotal Completion & Production Services (3)	513,709			655,295
Other reconciling items (4)	(44,635		)	(153,601		)
Total	$	1,581,540		$	1,821,757

	Three Months Ended March 31,
	2013			2012
	(In thousands)
Adjusted income (loss) derived from operating activities from continuing operations:(5)
Drilling & Rig Services:
U.S.	$	77,595		$	166,733
Canada	30,518			43,146
International	21,469			21,138
Rig Services (1)	7,737			29,846
Subtotal Drilling & Rig Services (2)	137,319			260,863
Completion & Production Services:
Production Services	26,014			28,029
Completion Services	17,756			64,860
Subtotal Completion & Production Services (3)	43,770			92,889
Other reconciling items (6)	(31,501		)	(38,216		)
Total adjusted income (loss) derived from operating activities	$	149,588		$	315,536
U.S. oil and gas joint venture earnings (losses)	—			(62,562		)
Interest expense	(60,008		)	(62,654		)
Investment income (loss)	79,421			20,252
Gains (losses) on sales and disposals of long-lived assets and other income (expense), net	(59,807		)	1,840
Income (loss) from continuing operations before income taxes	$	109,194		$	212,412

	March 31,		December 31,
	2013		2012
	(In thousands)
Total assets:
Drilling & Rig Services:
U.S.	$	4,191,963	$	4,157,470
Canada	666,708		699,699
International	3,600,919		3,626,307
Rig Services	679,494		644,350
Subtotal Drilling & Rig Services (8)	9,139,084		9,127,826
Completion & Production Services (7) (9)	2,316,294		2,301,802
Other reconciling items (6) (10)	1,130,079		1,226,394
Total assets:	$	12,585,457	$	12,656,022

(1) Includes our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software, and construction services. These services represent our other businesses that are not aggregated into a reportable operating segment.

(2) Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $2.8 million and $(6.1) million for the three months ended March 31, 2013 and 2012, respectively.

(3) Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $.1 million for the three months ended March 31, 2013.

(4) Represents the elimination of inter-segment transactions and earnings (losses), net from our former U.S. unconsolidated oil and gas joint venture, accounted for using the equity method, of $(62.6) million for the three months ended March 31, 2012.  In December 2012, we sold our equity interest in the oil and gas joint venture.

(5) Adjusted income (loss) derived from operating activities is computed by subtracting the sum of direct costs, general and administrative expenses, depreciation and amortization, and earnings (losses) from our former U.S. oil and gas joint venture from the sum of Operating revenues and Earnings (losses) from unconsolidated affiliates. These amounts should not be used as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of our business units and the consolidated company based on several criteria, including adjusted income (loss) derived from operating activities, because it believes that these financial measures accurately reflect our ongoing profitability. A reconciliation of this non-GAAP measure to income (loss) from continuing operations before income taxes, which is a GAAP measure, is provided in the above table.

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

(7) Reflects assets allocated to the line of business to conduct its operations. Further allocation to individual operating segments of Completion and Production Services is not available.

(8) Includes $62.7 million and $59.9 million of investments in unconsolidated affiliates accounted for using the equity method as of March 31, 2013 and December 31, 2012,  respectively.

(9) Includes $1.9 million and $1.8 million of investments in unconsolidated affiliates accounted for using the equity method as of March 31, 2013 and December 31, 2012, respectively.

(10) Includes assets of $378.9 million and $377.6 million from oil and gas businesses classified as assets held-for-sale as of March 31, 2013 and December 31, 2012, respectively.