Segment Information

6 Months Ended

Jun. 30, 2016

Segment Information

Segment Information

Note 11 Segment Information

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
	(In thousands)
Operating revenues: (1)
Drilling & Rig Services:
U.S.	$	140,342	$	321,169	$	289,018	$	774,990
Canada		6,617		21,413		24,111		79,253
International		401,024		458,545		802,079		897,706
Rig Services (2)		39,248		100,599		93,101		244,683
Subtotal Drilling & Rig Services		587,231		901,726		1,208,309		1,996,632
Completion & Production Services:
Completion Services		—		—		—		207,860
Production Services		—		—		—		158,512
Subtotal Completion & Production Services		—		—		—		366,372
Other reconciling items (3)		(15,640)		(38,421)		(39,147)		(84,992)
Total	$	571,591	$	863,305	$	1,169,162	$	2,278,012

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
	(In thousands)
Adjusted operating income (loss): (1) (4)
Drilling & Rig Services:
U.S.	$	(48,328)	$	31,445	$	(95,887)	$	108,483
Canada		(10,831)		(8,268)		(18,109)		(1,910)
International		53,859		83,571		100,731		182,373
Rig Services (2)		(19,657)		(1,575)		(30,301)		11,298
Subtotal Drilling & Rig Services		(24,957)		105,173		(43,566)		300,244
Completion & Production Services:
Completion Services		—		—		—		(55,243)
Production Services		—		—		—		(3,559)
Subtotal Completion & Production Services		—		—		—		(58,802)
Other reconciling items (5)		(28,448)		(34,876)		(63,605)		(84,200)
Total	$	(53,405)	$	70,297	$	(107,171)	$	157,242
Earnings (losses) from unconsolidated affiliates (6)	$	(54,769)	$	(1,116)	$	(221,920)	$	5,386

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
	(In thousands)
Reconciliation of adjusted operating income (loss) to net income (loss) from continuing operations before income taxes:
Total adjusted operating income (loss) (4)	$	(53,405)	$	70,297	$	(107,171)	$	157,242
Earnings (losses) from unconsolidated affiliates (6)		(54,769)		(1,116)		(221,920)		5,386
Investment income		270		1,181		613		2,150
Interest expense		(45,237)		(44,469)		(90,967)		(91,070)
Other, net		(74,607)		(1,338)		(257,011)		54,504
Income (loss) from continuing operations before income taxes	$	(227,748)	$	24,555	$	(676,456)	$	128,212

	June 30,		December 31,
	2016		2015
	(In thousands)
Total assets:
Drilling & Rig Services:
U.S.	$	3,450,492	$	3,654,216
Canada		347,129		371,151
International		3,799,976		4,108,416
Rig Services		400,737		430,319
Subtotal Drilling & Rig Services		7,998,334		8,564,102
Investment in unconsolidated affiliates (7)		888		415,177
Other reconciling items (5)		657,083		558,561
Total	$	8,656,305	$	9,537,840

(1) All periods present the operating activities of most of our wholly owned oil and gas businesses as discontinued operations.

(2) Includes our other services comprised of our drilling technology and top drive manufacturing, directional drilling, rig instrumentation and software services.

(3) Represents the elimination of inter-segment transactions.

(4) 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. Adjusted operating income (loss) is a non-GAAP measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of our operating segments and the consolidated company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect 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. Other companies in our industry may compute these measures differently. 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.

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

(6) Represents our share of the net income (loss), as adjusted for our basis difference, of our unconsolidated affiliates accounted for by the equity method including losses of $54.8 million and $221.9 million for the three and six months ended June 30, 2016, respectively, and $0.8 million for each of the three and six months ended June 30, 2015, related to our share of the net loss of CJES, which we report on a one-quarter lag.

(7) Represents our investments in unconsolidated affiliates accounted for using the equity method as of June 30, 2016 and December 31, 2015, respectively, including our investment in CJES.