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Note 13 - Segment Information
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
Note
13
- Segment Information
 
In accordance with ASC
No.
 
280
- Segment Reporting, the Company routinely evaluates whether its separate operating and reportable segments have changed. This determination is made based on the following factors: (
1
) the Company’s chief operating decision maker (“CODM”) is currently managing each operating segment as a separate business and evaluating the performance of each segment and making resource allocation decisions distinctly and expects to do so for the foreseeable future, and (
2
) discrete financial information for each operating segment is available.
 
Prior to the year ended
December 31, 2016,
the Company
’s reportable segments were: (i) Completion Services, (ii) Well Support Services, and (iii) Other Services. In line with the discontinuance of the small, ancillary service lines and divisions in the Other Services reportable segment, subsequent to the year ended
December 31, 2016,
the Company is disclosing
two
reportable segments, and financial information for the Other Services reportable segment is only presented for the corresponding prior year period. The Company's reportable segments are now: (i) Completion Services and (ii) Well Support Services. This segment structure reflects the financial information and reports used by the Company’s management, including its CODM, to make decisions regarding the Company’s business, including performance evaluation and resource allocation decisions. The following is a brief description of the Company's reportable segments:
 
Completion Services
 
The Company
’s Completion Services segment consists of the following businesses and service lines: (
1
) fracturing; (
2
) cased-hole wireline and pumping services; (
3
) well construction & intervention services, which includes cementing, coiled tubing and directional drilling services; and (
4
) completion support services, which includes our research & technology ("R&T") department and data control instruments business.
 
Well Support Services
 
The Company
’s Well Support Services segment consists of the following businesses and service lines: (
1
) rig services; (
2
) fluids management services; and (
3
) special services, which includes plug and abandonment, artificial lift applications and other specialty well site services.
 
Other Services
 
Other Services consisted of smaller, non-core business lines that have since been divested, including the Company's specialty chemical business, equipment manufacturing and repair business and international coiled tubing operations in the Middle East.
 
The following tables set forth certain financial information with respect to the Company
’s reportable segments.
 
   
Completion
Services
    
Well Support Services
    
Other
Services
    
Corporate / Elimination
    
Total
  
Year Ended December 31, 2017 (Successor)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Revenue from external customers
   $
1,256,511
     $
382,228
     $
—
     $
—
     $
1,638,739
  
Inter-segment revenues
    
610
      
1,437
      
—
      
(2,047
)
    
—
  
Depreciation and amortization
    
88,053
      
48,832
      
—
      
3,765
      
140,650
  
Operating income (loss)
    
137,014
      
(21,584
)
    
—
      
(131,209
)
    
(15,779
)
Net income (loss)
    
161,124
      
(19,390
)
    
—
      
(119,277
)
    
22,457
  
Adjusted EBITDA
    
221,888
      
9,233
      
—
      
(100,259
)
    
130,862
  
Capital expenditures
    
184,580
      
24,368
      
—
      
1,238
      
210,186
  
As of December 31, 2017 (Successor)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total assets
   $
1,159,188
     $
289,642
     $
—
     $
160,027
     $
1,608,857
  
Goodwill
    
147,515
      
—
      
—
      
—
      
147,515
  
Year Ended December 31, 2016 (Predecessor)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Revenue from external customers
   $
599,787
     $
363,768
     $
7,587
     $
—
     $
971,142
  
Inter-segment revenues
    
947
      
210
      
29,115
      
(30,272
)
    
—
  
Depreciation and amortization
    
141,742
      
73,600
      
2,307
      
(209
)
    
217,440
  
Operating loss
    
(306,614
)
    
(377,707
)
    
(51,778
)
    
(133,909
)
    
(870,008
)
Net loss
    
(306,866
)
    
(373,695
)
    
(58,757
)
    
(204,971
)
    
(944,289
)
Adjusted EBITDA
    
(41,624
)
    
19,456
      
(5,777
)
    
(66,897
)
    
(94,842
)
Capital expenditures
    
17,118
      
14,799
      
8,451
      
17,541
      
57,909
  
As of December 31, 2016 (Predecessor)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total assets
   $
752,225
     $
500,379
     $
50,191
     $
58,887
     $
1,361,682
  
Goodwill
    
—
      
—
      
—
      
—
      
—
  
Year Ended December 31, 2015 (Predecessor)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Revenue from external customers
   $
1,261,398
     $
459,265
     $
28,226
     $
—
     $
1,748,889
  
Inter-segment revenues
    
4,009
      
—
      
150,755
      
(154,764
)
    
—
  
Depreciation and amortization
    
199,921
      
71,389
      
5,159
      
(116
)
    
276,353
  
Operating loss
    
(882,786
)
    
(31,253
)
    
(69,129
)
    
(115,154
)
    
(1,098,322
)
Net loss
    
(883,494
)
    
(35,313
)
    
(68,584
)
    
114,849
      
(872,542
)
Adjusted EBITDA
    
51,008
      
68,809
      
(1,327
)
    
(71,734
)
    
46,756
  
Capital expenditures
    
97,283
      
37,540
      
30,444
      
1,054
      
166,321
  
As of December 31, 2015 (Predecessor)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total assets
   $
1,094,054
     $
920,008
     $
124,328
     $
60,601
     $
2,198,991
  
Goodwill
    
—
      
307,677
      
—
      
—
      
307,677
  
 
Management evaluates reportable segment performance and allocates resources based on total earnings (loss) before net interest expense, income taxes, depreciation and amortization, other income (expense), net gain or loss on disposal of assets, acquisition-related costs, and non-routine items (“Adjusted EBITDA”), because Adjusted EBITDA is considered an important measure of each reportable segment
’s performance. In addition, management believes that the disclosure of Adjusted EBITDA as a measure of each reportable segment’s operating performance allows investors to make a direct comparison to competitors, without regard to differences in capital and financing structure. Investors should be aware, however, that there are limitations inherent in using Adjusted EBITDA as a measure of overall profitability because it excludes significant expense items. An improving trend in Adjusted EBITDA
may
not
be indicative of an improvement in the Company’s profitability. To compensate for the limitations in utilizing Adjusted EBITDA as an operating measure, management also uses U.S. GAAP measures of performance, including operating income (loss) and net income (loss), to evaluate performance, but only with respect to the Company as a whole and
not
on a reportable segment basis.
 
As required under Item
 
10
(e) of Regulation S-K of the Securities Exchange Act of
1934,
as amended, included below is a reconciliation of Adjusted EBITDA, a non-GAAP financial measure, from net income (loss), which is the nearest comparable U.S. GAAP financial measure (in thousands) on a consolidated basis for the years ended
December 31, 2017,
2016
and
2015,
and on a reportable segment basis for the years ended
December 31, 2017,
2016
and
2015.
 
   
Successor
Predecessor
  
   
Years Ended December
31,
  
   
2017
    
2016
    
2015
  
Net income (loss)
   $
22,457
     $
(944,289
)
   $
(872,542
)
Interest expense, net
    
1,527
      
157,465
      
82,086
  
Income tax benefit
    
(39,760
)
    
(129,010
)
    
(299,093
)
Depreciation and amortization
    
140,650
      
217,440
      
276,353
  
Other (income) expense, net
    
(3
)
    
(9,504
)
    
(8,773
)
(Gain) loss on disposal of assets
    
(31,463
)
    
3,075
      
(544
)
Impairment expense
    
—
      
436,395
      
791,807
  
Acquisition-related costs
    
4,606
      
10,534
      
42,662
  
Severance, facility closures and other
    
5,954
      
34,179
      
16,881
  
Restructuring costs
    
11,236
      
30,401
      
—
  
Reorganization costs
    
—
      
55,330
      
—
  
Inventory write-down
    
—
      
35,350
      
31,109
  
Share-based compensation expense acceleration
    
15,658
      
7,792
      
—
  
Immaterial accounts payable accrual correction
    
—
      
—
      
(13,190
)
Adjusted EBITDA
   $
130,862
     $
(94,842
)
   $
46,756
  
 
 
   
Year Ended December 31, 2017 (Successor)
  
   
Completion
Services
    
Well
Support
Services
    
Corporate / Elimination
    
Total
  
Net income (loss)
   $
161,124
     $
(19,390
)
   $
(119,277
)
   $
22,457
  
Interest expense, net
    
634
      
87
      
806
      
1,527
  
Income tax benefit
    
(28,950
)
    
—
      
(10,810
)
    
(39,760
)
Depreciation and amortization
    
88,053
      
48,832
      
3,765
      
140,650
  
Other (income) expense, net
    
4,205
      
(2,281
)
    
(1,927
)
    
(3
)
Gain on disposal of assets
    
(7,753
)
    
(23,706
)
    
(4
)
    
(31,463
)
Acquisition-related costs
    
4,474
      
—
      
132
      
4,606
  
Severance, facility closures and other
    
—
      
5,441
      
513
      
5,954
  
Restructuring costs
    
101
      
250
      
10,885
      
11,236
  
Share-based compensation expense acceleration
    
—
      
—
      
15,658
      
15,658
  
Adjusted EBITDA
   $
221,888
     $
9,233
     $
(100,259
)
   $
130,862
  
 
   
Year Ended December 31, 2016 (Predecessor)
  
   
Completion
Services
    
Well
Support
Services
    
Other
Services
    
Corporate / Elimination
    
Total
  
Net loss
   $
(306,866
)
   $
(373,695
)
   $
(58,757
)
   $
(204,971
)
   $
(944,289
)
Interest expense, net
    
706
      
(145
)
    
—
      
156,904
      
157,465
  
Income tax benefit
    
—
      
—
      
—
      
(129,010
)
    
(129,010
)
Depreciation and amortization
    
141,742
      
73,600
      
2,307
      
(209
)
    
217,440
  
Other (income) expense, net
    
(453
)
    
(3,868
)
    
6,979
      
(12,162
)
    
(9,504
)
(Gain) loss on disposal of assets
    
(1,856
)
    
(3,105
)
    
3,060
      
4,976
      
3,075
  
Impairment expense
    
105,952
      
321,687
      
8,756
      
—
      
436,395
  
Acquisition-related costs
    
202
      
—
      
209
      
10,123
      
10,534
  
Severance, facility closures and other
    
8,226
      
4,466
      
7,558
      
13,929
      
34,179
  
Restructuring costs
    
—
      
—
      
—
      
30,401
      
30,401
  
Reorganization costs
    
—
      
—
      
—
      
55,330
      
55,330
  
Inventory write-down
    
10,723
      
516
      
24,111
      
—
      
35,350
  
Share-based compensation expense acceleration
    
—
      
—
      
—
      
7,792
      
7,792
  
Adjusted EBITDA
   $
(41,624
)
   $
19,456
     $
(5,777
)
   $
(66,897
)
   $
(94,842
)
 
 
   
Year Ended December 31, 2015 (Predecessor)
  
   
Completion
Services
    
Well
Support
Services
    
Other
Services
    
Corporate / Elimination
    
Total
  
Net income (loss)
   $
(883,494
)
   $
(35,313
)
   $
(68,584
)
   $
114,849
     $
(872,542
)
Interest expense, net
    
358
      
(41
)
    
—
      
81,769
      
82,086
  
Income tax benefit
    
—
      
—
      
—
      
(299,093
)
    
(299,093
)
Depreciation and amortization
    
199,921
      
71,389
      
5,159
      
(116
)
    
276,353
  
Other (income) expense, net
    
350
      
4,101
      
(545
)
    
(12,679
)
    
(8,773
)
(Gain) loss on disposal of assets
    
(603
)
    
(9
)
    
19
      
49
      
(544
)
Impairment expense
    
726,678
      
24,700
      
40,429
      
—
      
791,807
  
Acquisition-related costs
    
—
      
—
      
46
      
42,616
      
42,662
  
Severance, facility closures and other
    
12,368
      
2,829
      
813
      
871
      
16,881
  
Inventory write-down
    
8,620
      
1,153
      
21,336
      
—
      
31,109
  
Immaterial accounts payable accrual correction
    
(13,190
)
    
—
      
—
      
—
      
(13,190
)
Adjusted EBITDA
   $
51,008
     $
68,809
     $
(1,327
)
   $
(71,734
)
   $
46,756