Supplemental Balance Sheet, Income Statement and Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2014

Supplemental Balance Sheet, Income Statement and Cash Flow Information

Accrued liabilities

	September 30,		December 31,
	2014		2013
	(In thousands)
Accrued compensation	$	182,028	$	172,803
Deferred revenue	314,773		202,918
Other taxes payable	58,287		76,781
Workers’ compensation liabilities	29,459		29,459
Interest payable	17,857		64,728
Warranty accrual	4,791		4,653
Litigation reserves	23,750		30,784
Current liability to discontinued operations	23,817		64,404
Professional fees	2,842		2,971
Current deferred tax liability	3,075		3,075
Current liability to acquisition of KVS	22,033		22,033
Other accrued liabilities	19,796		22,484
	$	702,508	$	697,093

Investment income (loss)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014			2013		2014			2013
	(In thousands)
Interest and dividend income	$	2,323		$	1,107	$	5,318		$	4,225
Gains (losses) on investments, net	(134		)	122		4,917		(1)	91,246		(2)
	$	2,189		$	1,229	$	10,235		$	95,471

(1) Includes realized gains of $4.9 million from the sale of available-for-sale securities.

(2) Includes realized gains of $88.2 million from the sale of available-for-sale securities and net realized gains of $2.5 million from the sale of our trading securities.

Losses (gains) on sales and disposals of long-lived assets and other expense (income), net

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(In thousands)
Losses (gains) on sales, disposals and involuntary conversions of long-lived assets	$	(27,641	)(1)	$	2,806		$	(14,095	)(1)	$	8,150
Litigation expenses	3,177			1,983			6,804			7,642
Merger transaction expenses	17,000		(2)	—			17,000		(2)	—
Foreign currency transaction losses (gains)	2,374			(290		)	3,417			7,017
Other losses (gains)	3,577			(1,233		)	3,341			4,436
	$	(1,513	)	$	3,266		$	16,467		$	27,245

(1) Includes a $22.2 million gain related to the disposition of our Alaska E&P assets. See Note 12 — Assets Held-for-Sale and Discontinued Operations.

(2) Represents transaction costs related to the merger with CJES, including professional fees and other costs incurred to re-organize the business in contemplation of the merger.

Schedule of impairments and other charges

	Three Months		Nine Months
	Ended		Ended
	September 30,		September 30,
	2013		2013
	(In thousands)
Termination of employment contract	$	—	$	45,000	(1)
Loss on tendered notes	208,197		208,197		(2)
Provision for retirement of assets	14,044		14,044		(3)
Impairment of long-lived assets	20,000		20,000		(4)
	$	242,241	$	287,241

(1) Represents a one-time stock grant valued at $27.0 million, which vested immediately, and $18.0 million in cash awarded and paid to Mr. Petrello in connection with the termination of his prior employment agreement. See Note 9 — Commitments and Contingencies to our 2013 Annual Report for additional discussion.

(2) Represents the loss related to the extinguishment of debt in connection with the tender offer for our 9.25% senior notes.

(3) Represents provision for retirement of long-lived assets in our International operations totaling $14.0 million, which reduced the carrying value of some assets to their salvage value. The retirements were related to assets in Saudi Arabia and included obsolete top-drives, nonworking trucks, generators, engines and other miscellaneous equipment. A continued period of lower oil prices and its potential impact on our utilization and dayrates could result in the recognition of future impairment charges to additional assets if future cash flow estimates, based upon information then available to management, indicate that the carrying value of those assets may not be recoverable.

(4) Represents impairment of $20.0 million to our fleet of coil-tubing units in our Completion & Production Services operating segment.  Intense competition and oversupply of equipment has led to lower utilization and margins for this product line, and we have recently decided to suspend the majority of our operations for these assets. When these factors were considered as part of our annual impairment tests on long-lived assets, the sum of the estimated future cash flows, on an undiscounted basis, was less than the carrying amount of these assets.  The estimated fair values of these assets were calculated using discounted cash flow models involving assumptions based on our utilization of the assets, revenues as well as direct costs, capital expenditures and working capital requirements.  We believe the fair value estimated for purposes of these tests represents a Level 3 fair value measurement.  A prolonged period of slow economic recovery could continue to adversely affect the demand for and prices of our services, which could result in future impairment charges for other reporting units due to the potential impact on our estimate of our future operating results.

Schedule of changes in accumulated other comprehensive income (loss)

	Gains (losses) on cash flow hedges			Unrealized gains (losses) on available- for-sale securities			Defined benefit pension plan items			Foreign currency items			Total
	(In thousands)
As of January 1, 2013 (1)	$	(2,793	)	$	134,229		$	(7,632	)	$	216,339		$	340,143
Other comprehensive income (loss) before reclassifications	—			1,549			—			(36,853		)	(35,304		)
Amounts reclassified from accumulated other comprehensive income (loss) (2)	280			(85,456		)	516			—			(84,660		)
Net other comprehensive income (loss)	280			(83,907		)	516			(36,853		)	(119,964		)
As of September 30, 2013	$	(2,513	)	$	50,322		$	(7,116	)	$	179,486		$	220,179

	Gains (losses) on cash flow hedges			Unrealized gains (losses) on available- for-sale securities			Defined benefit pension plan items			Foreign currency items			Total
	(In thousands)
As of January 1, 2014 (1)	$	(2,419	)	$	71,742		$	(4,075	)	$	150,892		$	216,140
Other comprehensive income (loss) before reclassifications	—			(34,646		)	—			(46,052		)	(80,698		)
Amounts reclassified from accumulated other comprehensive income (loss) (2)	280			(3,726		)	226			—			(3,220		)
Net other comprehensive income (loss)	280			(38,372		)	226			(46,052		)	(83,918		)
As of September 30, 2014	$	(2,139	)	$	33,370		$	(3,849	)	$	104,840		$	132,222

(1) Reflects amounts reclassified from foreign currency translation adjustment to retained earnings as discussed in Note 2—Summary of Significant Accounting Policies.

(2) All amounts are net of tax. Amounts in parentheses indicate debits.

Schedule of line items that were reclassified from net income

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Line item in consolidated statement of income (loss)	2014			2013			2014		2013
	(In thousands)
Investment income (loss)	$	(267	)	$	2		$	4,636	$	88,159
Interest expense	153			153			459		459
General and administrative expenses	123			280			369		842
Total before tax	$	(543	)	$	(431	)	$	3,808	$	86,858
Tax expense (benefit)	(141		)	(168		)	588		2,198
Reclassification adjustment for (gains)/losses included in net income (loss)	$	(402	)	$	(263	)	$	3,220	$	84,660