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10-Q
SUPERIOR ENERGY SERVICES INC filed this Form 10-Q on 10/26/2016
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The following table summarizes the components of loss from discontinued operations, net of tax (in thousands):



 

 

 

 

 

 



 

Three Months Ended September 30,



 

2016

 

2015

Revenues

 

$

 -

 

$

588 



 

 

 

 

 

 

Loss from discontinued operations, net of tax benefit of $0 and
$275, respectively

 

 

(4,085)

 

 

(4,610)



















 

 

 

 

 

 



 

Nine Months Ended September 30,



 

2016

 

2015

Revenues

 

$

 -

 

$

18,694 



 

 

 

 

 

 

Loss from discontinued operations, net of tax benefit of $0 and
$1,991, respectively

 

 

(8,577)

 

 

(24,107)



For the three and nine months ended September 30, 2015, loss from discontinued operations included $0.5 million and $1.6 million, respectively, of loss related to the conventional decommissioning business.



The following summarizes the assets and liabilities related to the businesses reported as discontinued operations (in thousands):



 

 

 

 

 

 



 

 

 

 

 

 



 

September 30, 2016

 

December 31, 2015

Current assets

 

$

2,247 

 

$

2,600 

Property, plant and equipment, net

 

 

60,000 

 

 

92,634 

Total assets

 

$

62,247 

 

$

95,234 

Current liabilities

 

$

3,080 

 

$

4,661 



At December 31, 2015, assets held for sale also included $26.6 million of property, plant and equipment related to the conventional decommissioning business. 



(14Related Party Disclosures





The Company’s President and Chief Executive Officer serves as an independent director of the board of Linn Energy, LLC (Linn), an independent oil and gas development company.  The Company recorded revenues from Linn and its subsidiaries of $4.0 million and $6.0 million for the nine months ended September 30, 2016 and 2015, respectively.  The Company had trade receivables from Linn and its subsidiaries of $0.5 million and $2.0 million as of September 30, 2016 and December 31, 2015, respectively.



(15)  Recently Issued Accounting Guidance



In March, 2016, the Financial Accounting Standards Board (FASB) issued accounting standards update (ASU) 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which relates to the accounting for employee share-based payments.  The guidance in this update addresses several aspects of the accounting for share-based payments, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows.  The new standard is effective for the Company beginning on January 1, 2017.  The Company is evaluating the effect that ASU 2016-09 will have on its consolidated financial statements and related disclosures.

   

In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize the assets and liabilities arising from leases on the balance sheet. The new standard is effective for the Company beginning on January 1, 2019 and should be applied using a modified retrospective approach. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures.



In July 2015, the FASB issued ASU No. 2015-11, Inventory – Simplifying the Measurement of Inventory, which applies to inventory measured using first-in, first-out or average cost. The guidance in this update states that inventory within its scope shall be measured at the lower of cost or net realizable value, and when the net realizable value of inventory is lower than its cost, the difference shall be recognized as a loss in earnings. The new standard is effective for the Company beginning on January 1, 2017 and should be applied on a prospective basis. The Company is evaluating the effect that ASU 2015-11 will have on its consolidated financial statements and related disclosures.



In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in GAAP.  The guidance in this update requires an entity to recognize the amount of revenue that it expects to be

15

 


 

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