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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): JANUARY 1, 2002
PATTERSON-UTI ENERGY, INC.
(Exact name of registrant as specified in charter)
DELAWARE 0-22664 75-2504748
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
4510 LAMESA HIGHWAY
SNYDER, TEXAS 79549
(Address of Principal Executive Offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (915) 574-6300
N/A
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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ITEM 5. OTHER EVENTS.
Effective January 1, 2002, Patterson-UTI Energy, Inc. (the "Company")
adopted Statement of Financial Accounting Standards 142, "Goodwill and Other
Intangible Assets" ("SFAS No. 142"). SFAS No. 142 requires that the Company
cease amortization of all intangible assets having indefinite useful economic
lives. Such assets, including goodwill, are not to be amortized until their
lives are determined to be finite. Intangible assets with an indefinite useful
life should be tested for impairment annually or on an interim basis to
determine whether events or circumstances indicate that the fair value of the
asset has decreased below its carrying value.
Other intangible assets include covenants-not-to-compete and other
agreements. All of our intangible assets, having definite lives, are being
amortized on a straight-line basis over their estimated useful lives. The
following information related to goodwill and other intangible assets is being
provided in accordance with SFAS No. 142 (in thousands):
DECEMBER 31,
-----------------------------
2001 2000
-------- --------
Goodwill..................................................... $ 69,860 $ 69,860
Accumulated amortization..................................... (19,661) (14,996)
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Goodwill, net................................................ 50,199 54,864
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Covenants-not-to-compete and other........................... $ 3,635 $ 3,202
Accumulated amortization..................................... (2,200) (1,693)
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Other intangible assets, net................................. 1,435 1,509
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Total goodwill and intangible assets, net.................... $ 51,634 $ 56,373
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Change in the net carrying amount of goodwill for the years ended December
31, 2001 and 2000 are as follows (in thousands):
DRILLING &
DRILLING COMPLETION FLUIDS TOTAL
---------- ----------------- --------
Balance at December 31, 1999............... $ 47,819 $ 11,714 $ 59,533
Changes to goodwill................... (3,779) (890) (4,669)
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Balance at December 31, 2000............... $ 44,040 $ 10,824 $ 54,864
Changes to goodwill................... (3,775) (890) (4,665)
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Balance at December 31, 2001............... $ 40,265 $ 9,934 $ 50,199
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Amortization expense consists of the following (in thousands):
TWELVE MONTHS ENDED DECEMBER 31,
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2001 2000 1999
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Goodwill................................... $ 4,665 $ 4,669 $ 4,669
Covenants-not-to-compete and other......... 507 1,065 1,087
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$ 5,172 $ 5,734 $ 5,756
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Had SFAS No. 142 been in effect prior to January 1, 2002, the Company's
reported net income (loss) and net income (loss) per share would have been as
follows (in thousands, except per share amounts):
TWELVE MONTHS ENDED DECEMBER 31,
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2001 2000 1999
----------- ---------- ----------
Net income (loss):
Reported ...................................................... $ 164,162 $ 37,226 $ (11,737)
Goodwill amortization ......................................... 4,665 4,669 4,669
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Adjusted ...................................................... $ 168,827 $ 41,895 $ (7,068)
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Basic net income (loss) per common share:
Reported ...................................................... $ 2.15 $ 0.52 $ (0.18)
Effect of goodwill amortization ............................... 0.06 0.07 0.07
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Adjusted ...................................................... $ 2.21 $ 0.59 $ (0.11)
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Diluted net income (loss) per common share:
Reported ...................................................... $ 2.07 $ 0.50 $ (0.18)
Effect of goodwill amortization ............................... 0.06 0.06 0.07
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Adjusted ...................................................... $ 2.13 $ 0.56 $ (0.11)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PATTERSON-UTI ENERGY, INC.
Dated: June 13, 2002 By: /s/ Cloyce A. Talbott
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Cloyce A. Talbott
Chief Executive Officer