Segment Information

9 Months Ended

Sep. 30, 2013

Segment Information

Segment Information

Note 13 Segment Information

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

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2013			2012			2013			2012
	(In thousands)
Operating revenues and Earnings (losses) from unconsolidated affiliates:
Drilling & Rig Services:
U.S.	$	491,857		$	555,784		$	1,443,759		$	1,781,654
Canada	81,397			102,993			273,053			313,743
International	383,712			329,245			1,056,649			940,332
Rig Services (1)	131,151			151,625			383,502			533,934
Subtotal Drilling & Rig Services (2)	1,088,117			1,139,647			3,156,963			3,569,663
Completion & Production Services:
Production Services	246,806			254,827			742,979			752,466
Completion Services	266,520			381,241			782,674			1,166,940
Subtotal Completion & Production Services (3)	513,326			636,068			1,525,653			1,919,406
Other reconciling items (4)	(53,252		)	(145,335		)	(136,726		)	(519,083		)
Total	$	1,548,191		$	1,630,380		$	4,545,890		$	4,969,986

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2013			2012			2013			2012
	(In thousands)
Adjusted income (loss) derived from operating activities (5)
Drilling & Rig Services:
U.S.	$	92,710		$	115,207		$	240,118		$	427,291
Canada	12,244			21,679			46,657			64,296
International	54,271			30,299			108,221			67,838
Rig Services (1)	2,357			14,027			(1,739		)	58,626
Subtotal Drilling & Rig Services (2)	161,582			181,212			393,257			618,051
Completion & Production Services:
Production Services	25,909			34,035			75,394			87,461
Completion Services	13,024			47,218			37,650			158,222
Subtotal Completion & Production Services (3)	38,933			81,253			113,044			245,683
Other reconciling items (6)	(34,622		)	(36,630		)	(107,666		)	(110,442		)
Total adjusted income (loss) derived from operating activities	$	165,893		$	225,835		$	398,635		$	753,292
U.S. oil and gas joint venture earnings (losses)	—			(98,805		)	—			(301,801		)
Interest expense	(56,059		)	(63,776		)	(176,343		)	(190,068		)
Investment income (loss)	1,229			7,224			95,471			32,844
Gains (losses) on sales and disposals of long-lived assets and other income (expense), net	(3,266		)	(10,216		)	(27,245		)	(21,777		)
Impairments and other charges	(242,241		)	—			(287,241		)	(147,503		)
Income (loss) from continuing operations before income taxes	$	(134,444	)	$	60,262		$	3,277		$	124,987

	September 30,		December 31,
	2013		2012
	(In thousands)
Total assets:
Drilling & Rig Services:
U.S.	$	4,227,580	$	4,157,470
Canada	633,913		699,699
International	3,528,697		3,626,307
Rig Services	642,875		644,350
Subtotal Drilling & Rig Services (7)	9,033,065		9,127,826
Completion & Production Services (8) (9)	2,224,980		2,301,802
Other reconciling items (6)	944,071		1,226,394
Total assets:	$	12,202,116	$	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 $(2.9) million and $(0.7) million for the three months ended September 30, 2013 and 2012, respectively, and $1.0 million and $(0.7) million for the nine months ended September 30, 2013 and 2012, respectively.

(3) Includes earnings (losses), net from unconsolidated affiliates, accounted for using the equity method, of $0.3 million and $0.6 million for the three and nine months ended September 30, 2013, respectively.

(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 $(98.8) million and $(301.8) million for the three and nine months ended September 30, 2012, respectively.  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) Includes $60.9  million and $59.9 million of investments in unconsolidated affiliates accounted for using the equity method as of September 30, 2013 and December 31, 2012, respectively.

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

(9) Includes $8.0 million and $1.8 million of investments in unconsolidated affiliates accounted for using the equity method as of September 30, 2013 and December 31, 2012, respectively.