Segment Information (Tables)

6 Months Ended

Jun. 30, 2017

Segment Information

Financial information with respect to operating segments

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

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2017		2016		2017		2016
	(In thousands)
Operating revenues:
Drilling & Rig Services:
U.S.		$	187,344	$	140,342	$	349,278	$	289,018
Canada			17,121		6,617		44,929		24,111
International			380,338		401,024		718,561		802,079
Rig Services			93,014		39,248		164,455		93,101
Subtotal Drilling & Rig Services			677,817		587,231		1,277,223		1,208,309
Other reconciling items (1)			(46,462)		(15,640)		(83,318)		(39,147)
Total		$	631,355	$	571,591	$	1,193,905	$	1,169,162

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2017		2016		2017		2016
	(In thousands)
Adjusted operating income (loss): (2)
Drilling & Rig Services:
U.S.		$	(56,079)	$	(48,328)	$	(119,261)	$	(95,887)
Canada			(5,014)		(10,831)		(9,025)		(18,109)
International			36,174		53,859		48,148		100,731
Rig Services			(1,268)		(19,657)		(10,377)		(30,301)
Total		$	(26,187)	$	(24,957)	$	(90,515)	$	(43,566)

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2017		2016		2017		2016
	(In thousands)
Reconciliation of adjusted operating income (loss) to net income (loss) from continuing operations before income taxes:
Total segment adjusted operating income (loss) (2)		$	(26,187)	$	(24,957)	$	(90,515)	$	(43,566)
Other reconciling items (3)			(43,107)		(28,448)		(82,711)		(63,605)
Earnings (losses) from unconsolidated affiliates			—		(54,769)		2		(221,920)
Investment income (loss)			(886)		270		(165)		613
Interest expense			(54,688)		(45,237)		(111,206)		(90,967)
Other, net			(10,104)		(74,607)		(23,614)		(257,011)
Income (loss) from continuing operations before income taxes		$	(134,972)	$	(227,748)	$	(308,209)	$	(676,456)

	June 30,		December 31,
	2017		2016
	(In thousands)
Total assets:
Drilling & Rig Services:
U.S.	$	3,273,973	$	3,172,767
Canada		329,744		329,620
International		3,514,574		3,600,057
Rig Services		371,359		359,435
Subtotal Drilling & Rig Services		7,489,650		7,461,879
Other reconciling items (3)		602,808		725,136
Total	$	8,092,458	$	8,187,015

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

(2) 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. Management evaluates the performance of our operating segments using adjusted operating income (loss), which is a segment performance measure, because it believes that this financial measure reflects 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. A reconciliation to income (loss) from continuing operations before income taxes is provided in the above table.

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