Print Page  Close Window

SEC Filings

10-Q
KEY ENERGY SERVICES INC filed this Form 10-Q on 11/09/2017
Entire Document
 

Impairment Expense
There were no impairments recorded in the three months ended September 30, 2017. During the three months ended September 30, 2016, we recorded a $40.0 million impairment to reduce the carrying value of the assets and related liabilities of our Mexican business unit, which was at the time being held for sale, to fair market value.
Interest Expense, Net of Amounts Capitalized
Interest expense decreased $13.0 million, or 61.7%, to $8.1 million for the three months ended September 30, 2017, compared to $21.1 million for the same period in 2016. The decrease is primarily related to the elimination of the Predecessor Company’s senior secured notes in connection with our emergence from voluntary reorganization.
Other (Income) Loss, Net
During the quarter ended September 30, 2017, we recognized other income, net, of $4.6 million, compared to other loss, net, of $0.2 million for the quarter ended September 30, 2016. Our foreign exchange loss relates to U.S. dollar-denominated transactions in our foreign businesses and fluctuations in exchange rates between local currencies and the U.S. dollar.
The following table summarizes the components of other (income) loss, net for the periods indicated:
 
Successor
 
 
Predecessor
 
Three Months Ended September 30, 2017
 
 
Three Months Ended September 30, 2016
Interest income
$
(182
)
 
 
$
(104
)
Foreign exchange (gain) loss
(15
)
 
 
351

Other, net
(4,381
)
 
 
(93
)
Total
$
(4,578
)
 
 
$
154

Reorganization Items, Net
Reorganization item expenses were $0.1 million for the three months ended September 30, 2017, and there were no reorganization item expenses for the same period in 2016. Reorganization items consist of professional fees incurred in connection with our emergence from voluntary reorganization.
Income Tax Benefit
We recorded an income tax benefit of $0.1 million on a pre-tax loss of $38.3 million in the three months ended September 30, 2017, compared to an income tax benefit of $0.1 million on a pre-tax loss of $130.9 million in the three months ended September 30, 2016. Our effective tax rate was 0.3% for the three months ended September 30, 2017, compared to 0.1% for the three months ended September 30, 2016. Our effective tax rates for such periods differ from the U.S. statutory rate of 35% due to a number of factors, including the mix of profit and loss between domestic and international taxing jurisdictions and the impact of permanent items, including expenses subject to statutorily imposed limitations such as meals and entertainment expenses, that affect book income but do not affect taxable income and discrete tax adjustments, such as valuation allowances against deferred tax assets and tax expense or benefit recognized for uncertain tax positions.

25