NOTES TO THE UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements include the accounts of Core Laboratories N.V. and its subsidiaries for which we have a controlling voting interest and/or a controlling financial interest. These financial statements have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") for interim financial information using the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all of the information and footnote disclosures required by U.S. GAAP and should be read in conjunction with the financial statements and the summary of significant accounting policies and notes thereto included in our Annual Report on Form 10-K for the year ended
December 31, 2012
(the "
2012
Annual Report").
Core Laboratories N.V. uses the equity method of accounting for investments in which it has less than a majority interest and over which it does not exercise control. Non-controlling interests have been recorded to reflect outside ownership attributable to consolidated subsidiaries that are less than 100% owned. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods presented have been included in these financial statements. Furthermore, the operating results presented for the
three and nine
months ended
September 30, 2013
may not necessarily be indicative of the results that may be expected for the year ended
December 31, 2013
.
Core Laboratories N.V.'s balance sheet information for the year ended
December 31, 2012
was derived from the
2012
audited consolidated financial statements but does not include all disclosures in accordance with U.S. GAAP.
Certain reclassifications were made to prior period amounts in order to conform to the current period presentation. These reclassifications had no impact on the reported net income or cash flows for the
three and nine
month periods ended
September 30, 2012
.
References to "Core Lab", the "Company", "we", "our" and similar phrases are used throughout this Quarterly Report on Form 10-Q and relate collectively to Core Laboratories N.V. and its consolidated subsidiaries.
2. INVENTORIES
Inventories consist of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
September 30,
2013
|
|
December 31,
2012
|
|
(Unaudited)
|
|
|
Finished goods
|
$
|
40,218
|
|
|
$
|
38,572
|
|
Parts and materials
|
10,312
|
|
|
8,818
|
|
Work in progress
|
3,116
|
|
|
1,875
|
|
Total inventories
|
$
|
53,646
|
|
|
$
|
49,265
|
|
We include freight costs incurred for shipping inventory to customers in the Cost of product sales line of the Consolidated Statements of Operations.
3. GOODWILL AND INTANGIBLES
We account for intangible assets with indefinite lives, including goodwill, in accordance with the applicable accounting guidance, which requires us to evaluate these assets for impairment annually or more frequently if an indication of impairment is possible. Based upon our most recent evaluation at the end of 2012, we determined that goodwill is not impaired. We amortize intangible assets with a finite life on a straight-line basis over their respective useful lives.
4. DEBT AND CAPITAL LEASE OBLIGATIONS
Debt is summarized in the following table (in thousands):
|
|
|
|
|
|
|
|
|
|
September 30,
2013
|
|
December 31,
2012
|
|
(Unaudited)
|
|
|
Senior notes
|
$
|
150,000
|
|
|
$
|
150,000
|
|
Credit facility
|
106,000
|
|
|
84,000
|
|
Capital lease obligations
|
39
|
|
|
73
|
|
Total debt
|
256,039
|
|
|
234,073
|
|
Less - current maturities of long-term debt and capital lease obligations
|
32
|
|
|
40
|
|
Long-term debt and capital lease obligations, net
|
$
|
256,007
|
|
|
$
|
234,033
|
|
In 2011, we issued two series of senior notes with an aggregate principal amount of
$150 million
("Senior Notes") in a private placement transaction. Series A consists of
$75 million
in aggregate principal amount of notes that bear interest at a fixed rate of
4.01%
and are due in full on
September 30, 2021
. Series B consists of
$75 million
in aggregate principal amount of notes that bear interest at a fixed rate of
4.11%
and are due in full on
September 30, 2023
. Interest on each series of the Senior Notes is payable semi-annually on March 30 and September 30.
We maintain a credit facility (the "Credit Facility") with an aggregate borrowing capacity of
$300 million
at
September 30, 2013
. The Credit Facility provides an option to increase the commitment under the Credit Facility to
$350 million
, if certain conditions are met. The Credit Facility bears interest at variable rates from LIBOR plus
1.50%
to a maximum of LIBOR plus
2.25%
. Any outstanding balance under the Credit Facility is due
September 28, 2016
when the Credit Facility matures. Interest payment terms are variable depending upon the specific type of borrowing under this facility. Our available capacity at any point in time is reduced by borrowings outstanding at the time and outstanding letters of credit which totaled
$18.7 million
at
September 30, 2013
, resulting in an available borrowing capacity under the Credit Facility of
$175.3 million
. In addition to those items under the Credit Facility, we had
$24.6 million
of outstanding letters of credit and performance guarantees and bonds from other sources as of
September 30, 2013
.
The terms of the Credit Facility and the Senior Notes require us to meet certain financial and operational covenants, including, but not limited to, certain operational and minimum equity and cash flow ratios. We believe that we are in compliance with all such covenants contained in our credit agreements. Certain of our material, wholly-owned subsidiaries are guarantors or co-borrowers under the Credit Facility and Senior Notes.
The estimated fair value of total debt at
September 30, 2013
and
December 31, 2012
approximated the book value of total debt. The fair value was estimated using Level 2 inputs by calculating the sum of the discounted future interest and principal payments through the date of maturity.
5. PENSIONS AND OTHER POSTRETIREMENT BENEFITS
Defined Benefit Plan
We provide a noncontributory defined benefit pension plan covering substantially all of our Dutch employees (the "Dutch Plan") who were hired prior to
2007
based on years of service and final pay or career average pay, depending on when the employee began participating. The benefits earned by the employees are immediately vested. We fund the future obligations of the Dutch Plan by purchasing insurance contracts from a large multi-national insurance company. The insurance contracts are purchased annually and renew after five years at which time they are replaced with new contracts that are adjusted to include changes in the benefit obligation for the current year and redemption of the expired contracts. We make annual premium payments to the insurance company based on each employee's age and current salary, and the contractual growth rate. We determine the fair value of these plan assets with the assistance of an actuary using observable inputs (Level 2), which approximates the contract value of the investments.
The following table summarizes the components of net periodic pension cost under the Dutch Plan for the
three and nine
months ended
September 30, 2013
and
2012
(in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
(Unaudited)
|
Service cost
|
$
|
394
|
|
|
$
|
273
|
|
|
$
|
1,178
|
|
|
$
|
845
|
|
Interest cost
|
417
|
|
|
409
|
|
|
1,248
|
|
|
1,262
|
|
Expected return on plan assets
|
(321
|
)
|
|
(292
|
)
|
|
(961
|
)
|
|
(902
|
)
|
Amortization of transition asset
|
(21
|
)
|
|
(21
|
)
|
|
(65
|
)
|
|
(65
|
)
|
Amortization of prior service cost
|
39
|
|
|
39
|
|
|
119
|
|
|
119
|
|
Amortization of actuarial loss
|
117
|
|
|
—
|
|
|
351
|
|
|
—
|
|
Net periodic pension cost
|
$
|
625
|
|
|
$
|
408
|
|
|
$
|
1,870
|
|
|
$
|
1,259
|
|
During the
nine
months ended
September 30, 2013
, we contributed approximately
$2.0 million
to fund the estimated
2013
premiums on investment contracts held by the Dutch Plan.
Defined Contribution Plans
We maintain five defined contribution plans (the "Defined Contribution Plans") for the benefit of eligible employees in Canada, The Netherlands, Puerto Rico, the United Kingdom and the United States. In accordance with the terms of each plan, we and our participating employees contribute up to specified limits, and under certain plans, we may make discretionary contributions consistent with the terms of each plan.
Deferred Compensation Arrangements
We have entered into deferred compensation contracts for certain key employees. The benefits under these contracts are fully vested and benefits are paid when the participants attain 65 years of age. Life insurance policies with cash surrender values have been purchased for the purpose of assisting in the funding of the deferred compensation contracts.
We have also adopted a non-qualified deferred compensation plan that allows certain highly compensated employees to defer a portion of their salary, commission and bonus, as well as the amount of any reductions in their deferrals under the deferred compensation plan for employees in the United States (the "Deferred Compensation Plan"), due to certain limitations imposed by the U.S. Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"). The Deferred Compensation Plan also provides for employer contributions to be made on behalf of participants equal in amount to certain forfeitures of, and/or reductions in, employer contributions that participants could have received under the 401(k) Plan in the absence of certain limitations imposed by the Internal Revenue Code. Employer contributions to the Deferred Compensation Plan vest ratably over a period of five years. Contributions to the plan are invested in equity and other investment fund assets within life insurance policies and carried on the balance sheet at fair value. A participant's plan benefits include the participant's deferrals, the vested portion of the employer's contributions, and deemed investment gains and losses on such amounts.
On a recurring basis, we use the market approach to value certain assets and liabilities at fair value at quoted prices in an active market (Level 1) and certain assets and liabilities using significant other observable inputs (Level 2) with the assistance of a third party specialist. We do not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). Gains and losses related to the fair value changes in the deferred compensation assets and liabilities are recorded in General and Administrative Expenses in the Consolidated Statements of Operations. The following table summarizes the fair value balances (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
Fair Value Measurement at
|
|
|
|
September 30, 2013
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
Assets:
|
|
|
|
|
|
|
|
Deferred compensation trust assets
(1)
|
$
|
16,043
|
|
|
$
|
—
|
|
|
$
|
16,043
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Deferred compensation plan
|
$
|
23,270
|
|
|
$
|
1,791
|
|
|
$
|
21,479
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurement at
|
|
|
|
December 31, 2012
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
Assets:
|
|
|
|
|
|
|
|
Deferred compensation trust assets
(1)
|
$
|
12,654
|
|
|
$
|
—
|
|
|
$
|
12,654
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Deferred compensation plan
|
$
|
18,579
|
|
|
$
|
2,667
|
|
|
$
|
15,912
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
(1) Trust assets consist of the cash surrender value of life insurance policies and are intended to assist in the funding of the deferred compensation plan.
|
6. COMMITMENTS AND CONTINGENCIES
We have been and may from time to time be named as a defendant in legal actions that arise in the ordinary course of business. These include, but are not limited to, employment-related claims and contractual disputes or claims for personal injury or property damage which occur in connection with the provision of our services and products. Management does not currently believe that any of our pending contractual, employment-related, personal injury or property damage claims and disputes will have a material effect on our future results of operations, financial position or cash flow.
In connection with an audit of the 2008 and 2009 U.S. federal income tax returns of our U.S. consolidated group, the U.S. Internal Revenue Service has proposed that certain transfer pricing positions taken by the Company be adjusted, which could result in additional federal income tax of approximately
$11 million
plus interest for this two year audit period. We believe that these transactions are valid as originally recorded, and we are appealing this proposed adjustment. It is our belief that we will prevail on this issue; consequently, we have made no additional income tax accrual for this proposed adjustment.
7. EQUITY
During the three months ended
September 30, 2013
, we repurchased
362,776
of our common shares for
$55.9 million
. Included in this total were rights to
5,964
shares valued at
$0.9 million
that were surrendered to us pursuant to the terms of a stock-based compensation plan in consideration of the participants' tax burdens that may result from the issuance of common shares under that plan. During the
nine
months ended
September 30, 2013
, we repurchased
1,105,286
of our common shares for
$156.3 million
. Included in this total were rights to
32,297
shares valued at
$4.6 million
that were surrendered to us pursuant to the terms of a stock-based compensation plan in consideration of the participants' tax burdens that may result from the issuance of common shares under that plan. Such common shares, unless canceled, may be reissued for a variety of purposes such as future acquisitions, non-employee director stock awards or employee stock awards.
At the annual meeting of shareholders on
May 16, 2013
, the shareholders approved the cancellation of
1,149,582
shares of our common stock then held as treasury stock. These treasury shares were cancelled on
August 1, 2013
, after the expiration of the waiting period required under Dutch law. In accordance with ASC 505-30-30-8, we charged the excess of the cost of the treasury stock over its par value to additional paid-in capital and retained earnings.
In
February, May and August 2013
, we paid a quarterly dividend of
$0.32
per share of common stock. In addition, on
October 8, 2013
, we declared a quarterly dividend of
$0.32
per share of common stock for shareholders of record on
October 18, 2013
and payable on
November 20, 2013
.
The following table summarizes our changes in equity for the
nine
months ended
September 30, 2013
(in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
Common Shares
|
|
Additional Paid-In Capital
|
|
Retained Earnings
|
|
Accumulated
Other
Comprehensive Income (Loss)
|
|
Treasury Stock
|
|
Non-Controlling Interests
|
|
Total Equity
|
December 31, 2012
|
$
|
1,233
|
|
|
$
|
—
|
|
|
$
|
361,255
|
|
|
$
|
(8,413
|
)
|
|
$
|
(171,845
|
)
|
|
$
|
5,683
|
|
|
$
|
187,913
|
|
Stock options exercised
|
—
|
|
|
(1,411
|
)
|
|
—
|
|
|
—
|
|
|
1,494
|
|
|
—
|
|
|
83
|
|
Stock based-awards
|
—
|
|
|
2,291
|
|
|
(327
|
)
|
|
—
|
|
|
13,444
|
|
|
—
|
|
|
15,408
|
|
Tax benefit of stock-based awards issued
|
—
|
|
|
2,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,500
|
|
Repurchase of common shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(156,271
|
)
|
|
—
|
|
|
(156,271
|
)
|
Dividends paid
|
—
|
|
|
—
|
|
|
(44,125
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44,125
|
)
|
Cancellation of common shares
|
(30
|
)
|
|
(3,380
|
)
|
|
(123,985
|
)
|
|
—
|
|
|
127,395
|
|
|
—
|
|
|
—
|
|
Amortization of deferred pension costs, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
305
|
|
|
—
|
|
|
—
|
|
|
305
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
178,087
|
|
|
—
|
|
|
—
|
|
|
391
|
|
|
178,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2013
|
$
|
1,203
|
|
|
$
|
—
|
|
|
$
|
370,905
|
|
|
$
|
(8,108
|
)
|
|
$
|
(185,783
|
)
|
|
$
|
6,074
|
|
|
$
|
184,291
|
|
Accumulated other comprehensive income (loss) consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
September 30,
2013
|
|
December 31,
2012
|
|
(Unaudited)
|
|
|
Prior service cost
|
$
|
(526
|
)
|
|
$
|
(616
|
)
|
Transition asset
|
146
|
|
|
195
|
|
Unrecognized net actuarial loss
|
(7,728
|
)
|
|
(7,992
|
)
|
Total accumulated other comprehensive income (loss)
|
$
|
(8,108
|
)
|
|
$
|
(8,413
|
)
|
8. EARNINGS PER SHARE
We compute basic earnings per common share by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common and potential common shares include additional shares in the weighted average share calculations associated with the incremental effect of dilutive employee stock options, restricted stock awards and contingently issuable shares, as determined using the treasury stock method. The
following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings per share (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
(Unaudited)
|
Weighted average basic common shares outstanding
|
45,526
|
|
|
47,232
|
|
|
45,854
|
|
|
47,436
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
Stock options
|
—
|
|
|
11
|
|
|
1
|
|
|
12
|
|
Performance shares
|
135
|
|
|
136
|
|
|
115
|
|
|
128
|
|
Restricted stock
|
167
|
|
|
149
|
|
|
180
|
|
|
178
|
|
Weighted average diluted common and potential common shares outstanding
|
45,828
|
|
|
47,528
|
|
|
46,150
|
|
|
47,754
|
|
9. OTHER (INCOME) EXPENSE, NET
The components of other (income) expense, net, were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
(Unaudited)
|
Sale of assets
|
$
|
(155
|
)
|
|
$
|
(70
|
)
|
|
$
|
(687
|
)
|
|
$
|
(383
|
)
|
Results of non-consolidated subsidiaries
|
43
|
|
|
(234
|
)
|
|
(142
|
)
|
|
(481
|
)
|
Foreign exchange
|
518
|
|
|
(610
|
)
|
|
3,040
|
|
|
(280
|
)
|
Rents and royalties
|
(156
|
)
|
|
(214
|
)
|
|
(599
|
)
|
|
(809
|
)
|
Insurance recovery
|
(336
|
)
|
|
(1,023
|
)
|
|
(882
|
)
|
|
(4,490
|
)
|
Legal entity realignment
|
—
|
|
|
—
|
|
|
—
|
|
|
1,860
|
|
NYSE Euronext Amsterdam listing
|
—
|
|
|
—
|
|
|
—
|
|
|
923
|
|
Other, net
|
127
|
|
|
(105
|
)
|
|
(648
|
)
|
|
(290
|
)
|
Total other (income) expense, net
|
$
|
41
|
|
|
$
|
(2,256
|
)
|
|
$
|
82
|
|
|
$
|
(3,950
|
)
|
We incurred property losses during Hurricane Isaac in 2012. During 2013, the insurer agreed to pay a portion of the claim which resulted in a net gain of
$0.9 million
after related expenses and the disposal of the assets. The insurer is continuing to review the remainder of the claim.
During the second quarter of 2012, we incurred legal, accounting and other fees in connection with the realignment of certain of our legal entities into a more cost effective structure and the listing of our shares on the NYSE Euronext Amsterdam Stock Exchange.
As a result of a supply disruption in 2011 from a key vendor that provided certain high performance specialty steel tubulars used with our perforating systems, we filed a claim under our business interruption insurance policy which was fully settled during 2012 for
$4.4 million
. We recorded a gain of
$3.4 million
in the first quarter of 2012 for the initial payment and a gain of
$1.0 million
in the third quarter of 2012 when the claim was settled and closed.
Foreign exchange (gain) loss by currency is summarized in the following table (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30,
|
|
September 30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
(Unaudited)
|
Australian Dollar
|
$
|
182
|
|
|
$
|
47
|
|
|
$
|
391
|
|
|
$
|
32
|
|
British Pound
|
(430
|
)
|
|
(127
|
)
|
|
111
|
|
|
(68
|
)
|
Canadian Dollar
|
(278
|
)
|
|
(581
|
)
|
|
690
|
|
|
(599
|
)
|
Euro
|
266
|
|
|
(59
|
)
|
|
620
|
|
|
(66
|
)
|
Indonesian Rupiah
|
320
|
|
|
18
|
|
|
373
|
|
|
158
|
|
Malaysian Ringgit
|
144
|
|
|
(33
|
)
|
|
332
|
|
|
46
|
|
Mexican Peso
|
52
|
|
|
(179
|
)
|
|
116
|
|
|
(140
|
)
|
Russian Ruble
|
16
|
|
|
164
|
|
|
(38
|
)
|
|
108
|
|
Other currencies, net
|
246
|
|
|
140
|
|
|
445
|
|
|
249
|
|
Total (gain) loss
|
$
|
518
|
|
|
$
|
(610
|
)
|
|
$
|
3,040
|
|
|
$
|
(280
|
)
|
10. INCOME TAX EXPENSE
The effective tax rates for the three months ended
September 30, 2013
and
2012
were
24.9%
and
25.5%
, respectively. The effective tax rates for the year-to-date
2013
and
2012
were
25.2%
and
24.9%
, respectively. The change in tax expense reflects the change in activity levels among jurisdictions with different tax rates.
11. SEGMENT REPORTING
We operate our business in three reportable segments: (1) Reservoir Description, (2) Production Enhancement and (3) Reservoir Management. These segments provide different services and products and utilize different technologies.
|
|
•
|
Reservoir Description:
Encompasses the characterization of petroleum reservoir rock, fluid and gas samples. We provide analytical and field services to characterize properties of crude oil and petroleum products to the oil and gas industry.
|
|
|
•
|
Production Enhancement:
Includes services and products relating to reservoir well completions, perforations, stimulations and production. We provide integrated services to evaluate the effectiveness of well completions and to develop solutions aimed at increasing the effectiveness of enhanced oil recovery projects.
|
|
|
•
|
Reservoir Management:
Combines and integrates information from reservoir description and production enhancement services to increase production and improve recovery of oil and gas from our clients' reservoirs.
|
Results for these segments are presented below. We use the same accounting policies to prepare our segment results as are used to prepare our Consolidated Financial Statements. All interest and other non-operating income (expense) is attributable to the Corporate & Other area and is not allocated to specific segments. Summarized financial information concerning our segments is shown in the following table (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
Reservoir Description
|
|
Production Enhancement
|
|
Reservoir Management
|
|
Corporate & Other
1
|
|
Consolidated
|
Three Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
Revenues from unaffiliated customers
|
$
|
131,533
|
|
|
$
|
119,511
|
|
|
$
|
22,119
|
|
|
$
|
—
|
|
|
$
|
273,163
|
|
Inter-segment revenues
|
656
|
|
|
791
|
|
|
301
|
|
|
(1,748
|
)
|
|
—
|
|
Segment operating income (loss)
|
35,938
|
|
|
42,284
|
|
|
6,516
|
|
|
(142
|
)
|
|
84,596
|
|
Total assets (at end of period)
|
320,505
|
|
|
261,970
|
|
|
37,005
|
|
|
37,996
|
|
|
657,476
|
|
Capital expenditures
|
5,414
|
|
|
1,467
|
|
|
285
|
|
|
1,887
|
|
|
9,053
|
|
Depreciation and amortization
|
3,856
|
|
|
2,196
|
|
|
312
|
|
|
389
|
|
|
6,753
|
|
Three Months Ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from unaffiliated customers
|
$
|
124,156
|
|
|
$
|
100,871
|
|
|
$
|
20,401
|
|
|
$
|
—
|
|
|
$
|
245,428
|
|
Inter-segment revenues
|
638
|
|
|
972
|
|
|
295
|
|
|
(1,905
|
)
|
|
—
|
|
Segment operating income (loss)
|
36,780
|
|
|
32,339
|
|
|
6,029
|
|
|
232
|
|
|
75,380
|
|
Total assets (at end of period)
|
289,830
|
|
|
247,907
|
|
|
28,194
|
|
|
72,601
|
|
|
638,532
|
|
Capital expenditures
|
4,448
|
|
|
1,882
|
|
|
290
|
|
|
2,640
|
|
|
9,260
|
|
Depreciation and amortization
|
3,557
|
|
|
1,874
|
|
|
188
|
|
|
840
|
|
|
6,459
|
|
Nine Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
Revenues from unaffiliated customers
|
$
|
386,000
|
|
|
$
|
337,141
|
|
|
$
|
74,088
|
|
|
$
|
—
|
|
|
$
|
797,229
|
|
Inter-segment revenues
|
2,131
|
|
|
2,468
|
|
|
1,124
|
|
|
(5,723
|
)
|
|
—
|
|
Segment operating income (loss)
|
107,707
|
|
|
113,761
|
|
|
23,837
|
|
|
197
|
|
|
245,502
|
|
Total assets
|
320,505
|
|
|
261,970
|
|
|
37,005
|
|
|
37,996
|
|
|
657,476
|
|
Capital expenditures
|
17,267
|
|
|
5,406
|
|
|
1,321
|
|
|
2,994
|
|
|
26,988
|
|
Depreciation and amortization
|
11,080
|
|
|
5,810
|
|
|
692
|
|
|
1,160
|
|
|
18,742
|
|
Nine Months Ended September 30, 2012
|
|
|
|
|
|
|
|
|
|
Revenues from unaffiliated customers
|
$
|
366,724
|
|
|
$
|
297,151
|
|
|
$
|
62,750
|
|
|
$
|
—
|
|
|
$
|
726,625
|
|
Inter-segment revenues
|
1,934
|
|
|
2,055
|
|
|
1,099
|
|
|
(5,088
|
)
|
|
—
|
|
Segment operating income (loss)
|
107,271
|
|
|
95,434
|
|
|
21,057
|
|
|
(2,350
|
)
|
|
221,412
|
|
Total assets
|
289,830
|
|
|
247,907
|
|
|
28,194
|
|
|
72,601
|
|
|
638,532
|
|
Capital expenditures
|
10,594
|
|
|
6,150
|
|
|
730
|
|
|
6,680
|
|
|
24,154
|
|
Depreciation and amortization
|
10,549
|
|
|
4,374
|
|
|
530
|
|
|
1,966
|
|
|
17,419
|
|
(1) "Corporate & Other" represents those items that are not directly related to a particular segment and eliminations.
12. RECENT ACCOUNTING PRONOUNCEMENTS
In February 2013, the FASB issued ASU 2013-02 relating to comprehensive income (FASB ASC Topic 220), which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component (the respective line items of net income). This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. We adopted this pronouncement for our fiscal year beginning January 1, 2013. The adoption of this pronouncement did not have a material effect on our consolidated financial statements.
In July 2013, the FASB issued ASU 2013-11 relating to income taxes (FASB ASC Topic 740), which provides guidance on the presentation of unrecognized tax benefits. The intent is to better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We are evaluating the impact that the adoption of this standard may have on our consolidated financial statements.