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,
		2018		2017		2018		2017
	(In thousands)
Operating revenues:
U.S. Drilling		$	264,395	$	187,344	$	505,397	$	349,278
Canada Drilling			17,442		17,121		49,329		44,929
International Drilling			377,986		380,338		746,831		718,561
Drilling Solutions			59,859		31,829		122,507		59,194
Rig Technologies			81,321		61,185		145,990		105,261
Other reconciling items (1)			(39,083)		(46,462)		(73,940)		(83,318)
Total		$	761,920	$	631,355	$	1,496,114	$	1,193,905


		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2018		2017		2018		2017
	(In thousands)
Adjusted operating income (loss): (2)
U.S. Drilling		$	(13,107)	$	(56,079)	$	(32,853)	$	(119,261)
Canada Drilling			(4,608)		(5,014)		(5,200)		(9,025)
International Drilling			24,486		36,174		49,022		48,148
Drilling Solutions			7,546		3,772		16,267		2,794
Rig Technologies			(3,433)		(5,040)		(16,409)		(13,171)
Total segment adjusted operating income (loss)		$	10,884	$	(26,187)	$	10,827	$	(90,515)


		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2018		2017		2018		2017
	(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)		$	10,884	$	(26,187)	$	10,827	$	(90,515)
Other reconciling items (3)			(41,463)		(43,107)		(86,440)		(82,711)
Earnings (losses) from unconsolidated affiliates			(1)		—		1		2
Investment income (loss)			(3,164)		(886)		(2,699)		(165)
Interest expense			(60,592)		(54,688)		(121,978)		(111,206)
Other, net			(77,601)		(10,104)		(91,690)		(23,614)
Income (loss) from continuing operations before income taxes		$	(171,937)	$	(134,972)	$	(291,979)	$	(308,209)


	June 30,		December 31,
	2018		2017
	(In thousands)
Total assets:
U.S. Drilling	$	3,116,162	$	3,203,560
Canada Drilling		317,872		347,773
International Drilling		3,312,637		3,540,829
Drilling Solutions		201,445		182,162
Rig Technologies		467,519		459,665
Other reconciling items (3)		884,653		667,995
Total	$	8,300,288	$	8,401,984

(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.