Segment Information

9 Months Ended

Sep. 30, 2017

Segment Information

Segment Information

Note 12 Segment Information

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

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2017		2016		2017		2016
	(In thousands)
Operating revenues:
Drilling & Rig Services:
U.S.		$	222,747	$	116,095	$	572,025	$	405,113
Canada			18,073		10,444		63,002		34,555
International			374,106		363,552		1,092,667		1,165,631
Rig Services			87,538		58,950		251,993		152,051
Subtotal Drilling & Rig Services			702,464		549,041		1,979,687		1,757,350
Other reconciling items (1)			(40,361)		(29,312)		(123,679)		(68,459)
Total		$	662,103	$	519,729	$	1,856,008	$	1,688,891

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2017		2016		2017		2016
	(In thousands)
Adjusted operating income (loss): (2)
Drilling & Rig Services:
U.S.		$	(53,536)	$	(58,876)	$	(172,797)	$	(154,763)
Canada			(7,494)		(10,156)		(16,519)		(28,265)
International			32,316		43,595		80,464		144,326
Rig Services			(4,671)		(12,937)		(15,048)		(43,238)
Total		$	(33,385)	$	(38,374)	$	(123,900)	$	(81,940)

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2017		2016		2017		2016
	(In thousands)
Reconciliation of segment adjusted operating income (loss) to net income (loss) from continuing operations before income taxes:
Total segment adjusted operating income (loss) (2)		$	(33,385)	$	(38,374)	$	(123,900)	$	(81,940)
Other reconciling items (3)			(40,820)		(33,600)		(123,531)		(97,205)
Earnings (losses) from unconsolidated affiliates			4		2		6		(221,918)
Investment income (loss)			373		310		208		923
Interest expense			(54,607)		(46,836)		(165,813)		(137,803)
Other, net			(5,559)		(10,392)		(29,173)		(267,403)
Income (loss) from continuing operations before income taxes		$	(133,994)	$	(128,890)	$	(442,203)	$	(805,346)

	September 30,		December 31,
	2017		2016
	(In thousands)
Total assets:
Drilling & Rig Services:
U.S.	$	3,288,663	$	3,172,767
Canada		341,114		329,620
International		3,433,515		3,600,057
Rig Services		443,169		359,435
Subtotal Drilling & Rig Services		7,506,461		7,461,879
Other reconciling items (3)		582,124		725,136
Total	$	8,088,585	$	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.

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