Property and Equipment

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Property and Equipment

During the three months ended March 31, 2016 and 2015, we had capital expenditures of $5.5 million and $48.8 million, respectively, which includes $0.2 million and $0.7 million, respectively, of capitalized interest costs incurred during the construction periods of new drilling rigs and other drilling equipment. Capital expenditures during 2015 primarily related to our five drilling rigs which began construction during 2014, as well as unit additions to our production services fleets. As of March 31, 2016 and December 31, 2015, capital expenditures incurred for property and equipment not yet placed in service was $16.7 million and $18.6 million, respectively, primarily related to drilling equipment which will be put into service when we receive the final components that are currently on order, but which require a long lead-time for delivery.

During the three months ended March 31, 2016, we recorded net gains of $0.6 million on the disposition of property and equipment, primarily excess drill pipe. During the three months ended March 31, 2015, we recorded net losses of $1.1 million on the disposition of property and equipment, primarily for the sale of 20 of our mechanical and lower horsepower electric drilling rigs and other drilling equipment which we sold in March 2015 for aggregate proceeds of $23.3 million, $17.2 million of which was recognized as a receivable at March 31, 2015.

We evaluate for potential impairment of long-lived tangible and intangible assets subject to amortization when indicators of impairment are present.Circumstances that could indicate a potential impairment include significant adverse changes in industry trends, economic climate, legal factors, and an adverse action or assessment by a regulator. More specifically, significant adverse changes in industry trends include significant declines in revenue rates, utilization rates, oil and natural gas market prices and industry rig counts. In performing an impairment evaluation, we estimate the future undiscounted net cash flows from the use and eventual disposition of long-lived tangible and intangible assets grouped at the lowest level that cash flows can be identified. For our Production Services Segment, we perform an impairment evaluation and estimate future undiscounted cash flows for the individual reporting units (well servicing, wireline and coiled tubing).For our Drilling Services Segment, we perform an impairment evaluation and estimate future undiscounted cash flows for individual domestic drilling rig assets and for our Colombian drilling rig assets as a group.If the sum of the estimated future undiscounted net cash flows is less than the carrying amount of the asset group, then we determine the fair value of the asset group. The amount of an impairment charge is measured as the difference between the carrying amount and the fair value of the assets.The assumptions used in the impairment evaluation for long-lived assets are inherently uncertain and require management judgment.

During thethree monthsended March 31, 2015, we recorded impairment charges of$6.0 millionto reduce the carrying value of certain assets which were classified as held for sale, to their estimated fair values, based on expected sales prices.As ofMarch 31, 2016, ourcondensed consolidatedbalance sheet reflects assets held for sale of $4.3 million, which primarily represents the fair value offourdrilling rigs andother equipment.