Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements (Tables)

3 Months Ended

Mar. 31, 2013

Text Block [Abstract]

Consolidating Condensed Balance Sheet

PARKER DRILLING COMPANY AND SUBSIDIARIES

CONSOLIDATING CONDENSED BALANCE SHEET

(Dollars in Thousands)

(Unaudited)

	March 31, 2013
	Parent			Guarantor			Non-Guarantor			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	43,492		$	5,921		$	34,274		$	—		$	83,687
Accounts and notes receivable, net		289,982			114,738			297,628			(514,716	)		187,632
Rig materials and supplies		—			3,101			26,287			—			29,388
Deferred costs		—			87			3,688			—			3,775
Deferred income taxes		—			8,939			1,467			—			10,406
Other tax assets		49,294			(32,651	)		21,167			—			37,810
Assets held for sale		—			—			11,526			—			11,526
Other current assets		—			6,974			5,715			—			12,689
Total current assets		382,768			107,109			401,752			(514,716	)		376,913
Property, plant and equipment, net		60			550,263			234,472			—			784,795
Investment in subsidiaries and intercompany advances		778,610			(226,204	)		1,494,006			(2,046,412	)		—
Other noncurrent assets		51,717			54,886			11,778			—			118,381
Total assets	$	1,213,155		$	486,054		$	2,142,008		$	(2,561,128	)	$	1,280,089
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	10,000		$	—		$	—		$	—		$	10,000
Accounts payable and accrued liabilities		76,716			97,718			211,324			(229,108	)		156,650
Accrued income taxes		(631	)		1,754			4,291			—			5,414
Total current liabilities		86,085			99,472			215,615			(229,108	)		172,064
Long-term debt		466,449			—			—			—			466,449
Other long-term liabilities		3,933			5,436			13,387			—			22,756
Long-term deferred tax liability		—			36,458			(10,951	)		—			25,507
Intercompany payables		62,584			43,656			247,656			(353,896	)		—
Contingencies		—			—			—			—			—
Stockholders’ equity:
Common stock		19,902			18,049			43,003			(61,052	)		19,902
Capital in excess of par value		648,241			733,115			1,455,243			(2,188,358	)		648,241
Retained earnings (accumulated deficit)		(74,039	)		(450,132	)		178,846			271,286			(74,039	)
Total controlling interest stockholders’ equity		594,104			301,032			1,677,092			(1,978,124	)		594,104
Noncontrolling interest		—			—			(791	)		—			(791	)
Total Equity		594,104			301,032			1,676,301			(1,978,124	)		593,313
Total liabilities and stockholders’ equity	$	1,213,155		$	486,054		$	2,142,008		$	(2,561,128	)	$	1,280,089

PARKER DRILLING COMPANY AND SUBSIDIARIES

CONSOLIDATING CONDENSED BALANCE SHEET

(Dollars in Thousands)

(Unaudited)

	December 31, 2012
	Parent			Guarantor			Non-Guarantor			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents		42,251			11,023			34,612			—			87,886
Accounts and notes receivable, net		289,957			98,747			292,644			(512,786	)		168,562
Rig materials and supplies		—			2,834			26,026			—			28,860
Deferred costs		—			—			1,089			—			1,089
Deferred income taxes		—			7,615			1,127			—			8,742
Other tax assets		46,249			(31,136	)		18,411			—			33,524
Assets held for sale		—			—			11,550			—			11,550
Other current assets		—			8,675			4,146			—			12,821
Total current assets		378,457			97,758			389,605			(512,786	)		353,034
Property, plant and equipment, net		60			548,794			237,304			—			786,158
Investment in subsidiaries and intercompany advances		780,878			(233,388	)		1,467,429			(2,014,919	)		—
Other noncurrent assets		43,569			59,541			13,431			—			116,541
Total assets		1,202,964			472,705			2,107,769			(2,527,705	)		1,255,733
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt		10,000			—			—			—			10,000
Accounts payable and accrued liabilities		65,839			93,243			205,864			(227,200	)		137,746
Accrued income taxes		—			612			3,508			—			4,120
Total current liabilities		75,839			93,855			209,372			(227,200	)		151,866
Long-term debt		469,205			—			—			—			469,205
Other long-term liabilities		3,933			6,129			13,120			—			23,182
Long-term deferred tax liability		—			36,894			(16,047	)		—			20,847
Intercompany payables		62,583			43,657			216,320			(322,560	)		—
Contingencies		—			—			—			—			—
Stockholders’ equity:
Common stock		19,818			18,049			43,003			(61,052	)		19,818
Capital in excess of par value		646,217			733,112			1,455,246			(2,188,358	)		646,217
Retained earnings (accumulated deficit)		(74,631	)		(458,991	)		187,526			271,465			(74,631	)
Total controlling interest stockholders’ equity		591,404			292,170			1,685,775			(1,977,945	)		591,404
Noncontrolling interest		—			—			(771	)		—			(771	)
Total Equity		591,404			292,170			1,685,004			(1,977,945	)		590,633
Total liabilities and stockholders’ equity		1,202,964			472,705			2,107,769			(2,527,705	)		1,255,733

Consolidating Condensed Statement of Operations

PARKER DRILLING COMPANY AND SUBSIDIARIES

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

(Dollars in Thousands)

(Unaudited)

	Three months ended March 31, 2013
	Parent			Guarantor			Non-Guarantor			Eliminations			Consolidated
Total revenues	$	—		$	104,362		$	86,300		$	(23,507	)	$	167,155
Operating expenses		—			58,578			81,975			(23,507	)		117,046
Depreciation and amortization		—			18,659			10,853			—			29,512
Total operating gross margin		—			27,125			(6,528	)		—			20,597
General and administration expense (1)		(45	)		(12,754	)		(84	)		—			(12,883	)
Gain on disposition of assets, net		—			1,108			40			—			1,148
Total operating income (loss)		(45	)		15,479			(6,572	)		—			8,862
Other income and (expense):
Interest expense		(10,980	)		(24	)		(3,417	)		4,415			(10,006	)
Changes in fair value of derivative positions		37			—			—			—			37
Interest income		1,569			190			2,715			(4,415	)		59
Other		—			103			13			—			116
Equity in net earnings of subsidiaries		179			—			—			(179	)		—
Total other income (expense)		(9,195	)		269			(689	)		(179	)		(9,794	)
Income (benefit) before income taxes		(9,240	)		15,748			(7,261	)		(179	)		(932	)
Income tax expense (benefit)		(9,832	)		5,589			2,739			—			(1,504	)
Net income (loss)		592			10,159			(10,000	)		(179	)		572
Less: Net (loss) attributable to noncontrolling interest		—			—			(20	)		—			(20	)
Net income (loss) attributable to controlling interest	$	592		$	10,159		$	(9,980	)	$	(179	)	$	592

(1) General and administration expenses for field operations are included in operating expenses.

PARKER DRILLING COMPANY AND SUBSIDIARIES

CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS

(Dollars in Thousands)

(Unaudited)

	Three months ended March 31, 2012
	Parent			Guarantor			Non-Guarantor			Eliminations			Consolidated
Total revenues		—			99,157			103,025			(25,613	)		176,569
Operating expenses		—			43,559			76,986			(25,613	)		94,932
Depreciation and amortization		—			15,595			12,024			—			27,619
Total operating gross margin		—			40,003			14,015			—			54,018
General and administration expense (1)		(45	)		(5,374	)		(78	)		—			(5,497	)
Gain on disposition of assets, net		—			418			74			—			492
Total operating income (loss)		(45	)		35,047			14,011			—			49,013
Other income and (expense):
Interest expense		(9,001	)		(36	)		(1,949	)		2,949			(8,037	)
Interest income		95			178			2,702			(2,949	)		26
Changes in fair value of derivative positions		(49	)		—			—			—			(49	)
Other		—			13			3			—			16
Equity in net earnings of subsidiaries		31,900			—			—			(31,900	)		—
Total other income (expense)		22,945			155			756			(31,900	)		(8,044	)
Income (benefit) before income taxes		22,900			35,202			14,767			(31,900	)		40,969
Income tax expense (benefit):
Current		(8,110	)		11,479			6,262			—			9,631
Deferred		4,618			2,550			(2,156	)		—			5,012
Total income tax expense (benefit)		(3,492	)		14,029			4,106			—			14,643
Net income (loss)		26,392			21,173			10,661			(31,900	)		26,326
Less: Net (loss) attributable to noncontrolling interest		—			—			(66	)		—			(66	)
Net income (loss) attributable to controlling interest		26,392			21,173			10,727			(31,900	)		26,392

Consolidated Condensed Statements of Cash Flows

PARKER DRILLING COMPANY AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)

(Unaudited)

	Three Months Ended March 31, 2013
	Parent			Guarantor			Non-Guarantor			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)	$	592		$	10,159		$	(10,000	)	$	(179	)	$	572
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		—			18,659			10,853			—			29,512
Gain on disposition of assets		—			(1,108	)		(40	)		—			(1,148	)
Deferred income tax expense		(8,310	)		2,936			3,767			—			(1,607	)
Expenses not requiring cash		2,951			5,875			(1,647	)		—			7,179
Equity in net earnings of subsidiaries		(179	)		—			—			179			—
Change in accounts receivable		(25	)		(14,540	)		(3,992	)		—			(18,557	)
Change in other assets		(3,051	)		(3,030	)		(1,937	)		—			(8,018	)
Change in accrued income taxes		(630)			1,141			1,049			—			1,560
Change in liabilities		10,412			3,784			3,551			—			17,747
Net cash provided by (used in) operating activities		1,760			23,876			1,604			—			27,240
Cash flows from investing activities:
Capital expenditures		—			(21,998	)		(8,025	)		—			(30,023	)
Proceeds from the sale of assets		—			1,504			46			—			1,550
Net cash (used in) investing activities		—			(20,494	)		(7,979	)		—			(28,473	)
Cash flows from financing activities:
Paydown on term note		(2,500	)		—			—			—			(2,500	)
Payment of debt issuance costs		(307	)		—			—			—			(307	)
Excess tax benefit from stock-based compensation		(159	)		—			—			—			(159	)
Intercompany advances, net		2,447			(8,484	)		6,037			—			—
Net cash provided by (used in) financing activities		(519	)		(8,484	)		6,037			—			(2,966	)
Net change in cash and cash equivalents		1,241			(5,102	)		(338	)		—			(4,199	)
Cash and cash equivalents at beginning of year		42,251			11,023			34,612			—			87,886
Cash and cash equivalents at end of year	$	43,492		$	5,921		$	34,274		$	—		$	83,687

PARKER DRILLING COMPANY AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)

(Unaudited)

	Three months Ended March 31, 2012
	Parent			Guarantor			Non-Guarantor			Eliminations			Consolidated
Cash flows from operating activities:
Net income (loss)		26,392			21,173			10,661			(31,900	)		26,326
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		—			15,595			12,024			—			27,619
Loss on extinguishment of debt		—			—			—			—			—
Gain on disposition of assets		—			(418	)		(74	)		—			(492	)
Deferred income tax expense		4,618			2,550			(2,156	)		—			5,012
Expenses not requiring cash		6,839			191			(31	)		—			6,999
Equity in net earnings of subsidiaries		(31,900	)		—			—			31,900			—
Change in accounts receivable		(95	)		(2,326	)		(3,859	)		—			(6,280	)
Change in other assets		(20,726	)		16,618			689			—			(3,419	)
Change in accrued income taxes		(322	)		(30	)		(98	)		—			(450	)
Change in liabilities		6,476			(24,073	)		(1,953	)		—			(19,550	)
Net cash provided by (used in) operating activities		(8,718	)		29,280			15,203			—			35,765
Cash flows from investing activities:
Capital expenditures		—			(56,611	)		(2,822	)		—			(59,433	)
Proceeds from the sale of assets		—			697			39			—			736
Net cash (used in) investing activities		—			(55,914	)		(2,783	)		—			(58,697	)
Cash flows from financing activities:
Paydown on term note		(6,000	)		—			—			—			(6,000	)
Excess tax benefit from stock-based compensation		59			—			—			—			59
Intercompany advances, net		(6,150	)		23,370			(17,220	)		—			—
Net cash provided by (used in) financing activities		(12,091	)		23,370			(17,220	)		—			(5,941	)
Net change in cash and cash equivalents		(20,809	)		(3,264	)		(4,800	)		—			(28,873	)
Cash and cash equivalents at beginning of year		55,670			4,212			37,987			—			97,869
Cash and cash equivalents at end of year		34,861			948			33,187			—			68,996