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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended October 31, 2020
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to

Commission File No. 001-38609
 KLX Energy Services Holdings, Inc.
(Exact name of registrant as specified in its charter)
Delaware36-4904146
(State of Incorporation)(I.R.S. Employer Identification No.)

1415 Louisiana Street, Suite 2900
Houston, Texas 77002
(832) 518-4094

(Address, including zip code, and telephone number, including area code, of principal executive offices of registrant)

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, $0.01 Par ValueKLXEThe Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

The registrant has one class of common stock, $0.01 par value, of which 8,427,351 shares were outstanding as of November 27, 2020.



Table of Contents
KLX Energy Services Holdings, Inc.
Form 10-Q
Table of Contents

2

Table of Contents
PART 1 – FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

KLX Energy Services Holdings, Inc.
Condensed Consolidated Balance Sheets
(In millions of U.S. dollars and shares)
(Unaudited)
October 31, 2020January 31, 2020
ASSETS
Current assets:
Cash and cash equivalents$79.8 $123.5 
Accounts receivable–trade, net of allowance of $3.8 and $12.9
49.4 79.2 
Inventories, net23.1 12.0 
Other current assets16.2 13.8 
Total current assets168.5 228.5 
Property and equipment, net 220.5 306.8 
Goodwill 28.3 
Intangible assets, net2.6 45.8 
Other assets6.0 14.0 
Total assets$397.6 $623.4 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$34.4 $31.4 
Accrued interest14.4 7.2 
Accrued liabilities33.8 26.2 
Total current liabilities82.6 64.8 
Long-term debt243.6 243.0 
Deferred income taxes0.1  
Other non-current liabilities9.4 3.4 
Commitments, contingencies and off-balance sheet arrangements (Note 11)
Stockholders’ equity:
Common stock, $0.01 par value; 110.0 authorized; 8.5 and 5.0 issued (1)
0.1 0.1 
Additional paid-in capital468.5 416.6 
Treasury stock, at cost, 0.1 shares and 0.1 shares (1)
(4.0)(3.6)
Accumulated deficit(402.7)(100.9)
Total stockholders’ equity61.9 312.2 
Total liabilities and stockholders' equity$397.6 $623.4 
(1) Common stock and treasury stock were retroactively adjusted for the Company's 1-for-5 Reverse Stock Split effective July 28, 2020. See Note 1.

See accompanying notes to condensed consolidated financial statements.

3

Table of Contents
KLX Energy Services Holdings, Inc.
Condensed Consolidated Statements of Operations
(In millions of U.S. dollars, except per share amounts)
(Unaudited)
Three Months EndedNine Months Ended
October 31, 2020October 31, 2019October 31, 2020October 31, 2019
Revenues$70.9 $134.5 $190.1 $445.2 
Costs and expenses:
   Cost of sales80.1 119.3 220.4 367.6 
   Selling, general and administrative14.3 31.7 73.5 79.2 
   Research and development costs0.1 0.8 0.6 2.3 
   Impairment and other charges4.4 45.8 213.1 45.8 
   Bargain purchase gain2.4  (38.7) 
Operating loss(30.4)(63.1)(278.8)(49.7)
Non-operating expense:
   Interest expense, net7.7 7.2 22.7 21.7 
Loss before income tax(38.1)(70.3)(301.5)(71.4)
   Income tax expense (benefit)0.2 (0.5)0.3 (0.1)
Net loss$(38.3)$(69.8)$(301.8)$(71.3)
Net loss per share-basic (1)
$(4.56)$(15.50)$(50.26)$(16.20)
Net loss per share-diluted (1)
$(4.56)$(15.50)$(50.26)$(16.20)
(1) Basic and diluted net loss per share were retroactively adjusted for the Company’s 1-for-5 Reverse Stock
Split effective July 28, 2020. See Note 1.

See accompanying notes to condensed consolidated financial statements.
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KLX Energy Services Holdings, Inc.
Condensed Consolidated Statements of Stockholders' Equity
Three and Nine Months Ended October 31, 2020 and 2019
(In millions of U.S. dollars and shares)
(Unaudited)
Common StockAdditional Paid-in CapitalTreasury
Stock
Accumulated
Deficit
Total Stockholders’ Equity
 SharesAmount
Balance at January 31, 20205.0 $0.1 $416.6 $(3.6)$(100.9)$312.2 
Restricted stock, net of forfeitures — — (0.7)— — (0.7)
Purchase of treasury stock— — — (0.3)— (0.3)
Red Bone acquisition price shares reserved0.1 — — — —  
Net loss— — — — (243.1)(243.1)
 Balance at April 30, 20205.1 0.1 415.9 (3.9)(344.0)68.1 
Restricted stock, net of forfeitures— — 17.4 (0.1)— 17.3 
QES acquisition price shares issuance3.4 — 34.7 — — 34.7 
Net loss— — — — (20.4)(20.4)
 Balance at July 31, 20208.5 0.1 468.0 (4.0)(364.4)99.7 
Restricted stock, net of forfeitures— — 0.5 — — 0.5 
Net loss— — — — (38.3)(38.3)
 Balance at October 31, 2020 8.5 $0.1 $468.5 $(4.0)$(402.7)$61.9 
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Common StockAdditional Paid-in CapitalTreasury StockAccumulated DeficitTotal Stockholders’ Equity
Shares Amount
Balance at January 31, 20194.5 $ $345.2 $ $(4.5)$340.7 
Restricted stock, net of forfeitures — — 4.4 — — 4.4 
Tecton acquisition price shares issuance0.1 — 12.1 — — 12.1 
Red Bone acquisition price shares reserved— — 36.4 — — 36.4 
Tecton acquisition shares escrowed— — — (1.4)— (1.4)
Net loss— — — — (5.0)(5.0)
Balance at April 30, 20194.6  398.1 (1.4)(9.5)387.2 
Sale of stock under employee stock purchase plan— — 0.9 — — 0.9 
Restricted stock, net of forfeitures— — 4.5 — — 4.5 
Red Bone acquisition price shares issuance0.1 — — — —  
Net earnings— — — — 3.5 3.5 
Balance at July 31, 20194.7  403.5 (1.4)(6.0)396.1 
Restricted stock, net of forfeitures — — 4.6 (1.0)— 3.6 
Purchase of treasury stock— — — (1.2)— (1.2)
Issuance of shares reserved as a component of Red Bone acquisition price0.1 — — — —  
Net loss— — — — (69.8)(69.8)
Balance at October 31, 2019$4.8 $ $408.1 $(3.6)$(75.8)$328.7 

See accompanying notes to condensed consolidated financial statements.
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KLX Energy Services Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions of U.S. dollars)
(Unaudited)
Nine Months Ended
October 31, 2020October 31, 2019
Cash flows from operating activities:
Net loss$(301.8)$(71.3)
Adjustments to reconcile net loss to net cash flows (used in) provided by operating activities
Depreciation and amortization43.8 48.0 
Impairment and other charges213.1 45.8 
Non-cash compensation17.2 13.8 
Amortization of deferred financing fees1.0 0.8 
Provision for inventory reserve2.8 2.0 
Change in allowance for doubtful accounts(9.4)10.7 
(Gain) loss on disposal of property, equipment and other(0.2)2.1 
Bargain purchase gain(38.7) 
Changes in operating assets and liabilities:
   Accounts receivable51.5 14.8 
   Inventories(2.2)3.4 
   Other current and non-current assets7.0 (5.5)
   Accounts payable(20.2)(9.3)
   Other current and non-current liabilities0.3 (2.1)
     Net cash flows (used in) provided by operating activities(35.8)53.2 
Cash flows from investing activities:
Purchases of property and equipment(11.1)(67.4)
Proceeds from sale of property and equipment1.8 0.5 
Acquisitions, net of cash acquired(1.0)(27.6)
     Net cash flows used in investing activities(10.3)(94.5)
Cash flows from financing activities:
Purchase of treasury stock(0.4)(1.2)
Shares cancelled by employees for taxes (1.0)
Cash proceeds from stock issuance 0.8 
Change to financed payables2.8  
     Net cash flows provided by (used in) financing activities2.4 (1.4)
     Net decrease in cash and cash equivalents(43.7)(42.7)
Cash and cash equivalents, beginning of period123.5 163.8 
Cash and cash equivalents, end of period$79.8 $121.1 
Supplemental disclosures of cash flow information:
Cash paid during period for:
Income taxes paid, net of refunds$(0.3)$1.0 
Interest14.8 14.8 
Supplemental schedule of non-cash activities:
Issuance of common stock and stock based payments for QES acquisition$34.7 $ 
Change in deposits on capital expenditures(5.6)(5.8)
Accrued capital expenditures0.55.0

See accompanying notes to condensed consolidated financial statements.

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KLX Energy Services Holdings, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited – In millions of U.S. dollars)

NOTE 1 - Description of Business and Basis of Presentation

Description of Business

KLX Energy Services Holdings, Inc. (the “Company”, “KLXE” or “KLX Energy Services”) is a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas exploration and production (“E&P”) companies operating in both conventional and unconventional plays in all of the active major basins throughout the United States. The Company delivers mission critical oilfield services focused on drilling, completion, production and intervention activities for the most technically demanding wells in over 50 service and support facilities located throughout the United States.

The Company offers a complementary suite of proprietary products and specialized services that is supported by technically skilled personnel and a broad portfolio of innovative in-house manufacturing, repair and maintenance capabilities. KLXE’s primary services include coiled-tubing, directional drilling, frac rentals, fishing, pressure control, wireline, rig-assisted snubbing, fluid pumping, flowback, testing and well control services. KLXE’s primary rentals and products include hydraulic fracturing stacks, blow out preventers, tubulars, downhole tools, dissolvable plugs, composite plugs and accommodation units.

On July 24, 2020, KLXE stockholders approved an amendment to the amended and restated certificate of incorporation of KLXE (the “Reverse Stock Split Amendment”) to effect a reverse stock split of KLXE common stock at a ratio within a range of 1-for-5 and 1-for-10 (the “Reverse Stock Split”), as determined by KLXE’s board of directors (the “Board”). The Board subsequently resolved to implement the Reverse Stock Split at a ratio of 1-for-5.

On July 28, 2020, KLX Energy Services, Krypton Intermediate, LLC, an indirect wholly owned subsidiary of KLXE, Krypton Merger Sub, Inc., an indirect wholly owned subsidiary of KLXE (“Merger Sub”), and Quintana Energy Services Inc. (“QES”) completed the previously announced acquisition of QES, by means of a merger of Merger Sub with and into QES, with QES surviving the merger as a subsidiary of KLXE (the “Merger”). On July 28, 2020, immediately prior to the consummation of the Merger, the Reverse Stock Split Amendment became effective and thereby effectuated the 1-for-5 Reverse Stock Split of the Company’s issued and outstanding common stock.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All adjustments which, in the opinion of the Company’s management, are considered necessary for a fair presentation of the results of operations for the periods shown are of a normal recurring nature and have been reflected in the condensed consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of the results expected for the full fiscal year 2020 or for any future period. The information included in these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s 2019 Annual Report on Form 10-K filed with the SEC on March 24, 2020.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates.

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The accompanying unaudited condensed consolidated financial statements present the consolidated KLXE and QES financial position as of October 31, 2020, and the condensed consolidated statement of operations for the three months ended October 31, 2020 includes an entire quarter of combined results for both legacy KLXE and legacy QES. The condensed consolidated statement of operations for the nine months ended October 31, 2020 and the condensed consolidated statement of cash flows for the nine months ended October 31, 2020 includes QES’s results for the period July 29, 2020 through October 31, 2020.

Segment Reporting

The Company changed its presentation of reportable segments related to the allocation of corporate overhead costs to reflect the presentation used by the chief operational decision-making group (“CODM”) to make decisions about resources to be allocated to the Company’s reportable segments and to assess segment performance. Historically, and through July 31, 2020, the Company’s total corporate overhead costs were allocated and reported within each reportable segment. During the third quarter of 2020, the Company changed the corporate overhead allocation methodology to only include corporate costs incurred on behalf of its operating segments, which includes accounts payable, accounts receivable, insurance, audit, supply chain, health, safety and environmental and others. The remaining unallocated corporate costs are reported as a reconciling item in the Company’s segment reporting disclosures. See Note 14 for additional information. As a result of the change in presentation, the total corporate overhead costs allocated for the three and nine months ended October 31, 2020, to the Company’s three reportable segments decreased $11.2 and $54.6, respectively. For the three and nine months ended October 31, 2019, the total corporate overhead costs allocated to the Company’s three reportable segments decreased $13.6 and $44.6, respectively.

In conjunction with the change in presentation of reportable segments, the Company also changed its presentation of segment assets. Historically, and through July 31, 2020, the Company’s corporate assets were allocated and reported within each reportable segment. During the third quarter of 2020, the Company changed the presentation of total assets to present corporate assets separately as a reconciling item in its segment reporting disclosures. As a result of the change in presentation, the total corporate assets allocated to the Company’s three reportable segments decreased by $88.5 and $139.1 as of October 31, 2020 and January 31, 2020, respectively.

The Company also changed its presentation of service offering revenues. Historically, and through July 31, 2020, the Company’s service offering revenues included revenues from the completion, production and intervention market types within segment reporting. During the third quarter of 2020, the Company changed the presentation of its service offering revenues by separately reporting a drilling market type revenue, which includes directional drilling, drilling accommodation units and related drilling support services. The reclassifications are reported in the Company’s segment reporting disclosures to reflect the drilling revenue change and use of the information by the Company’s CODM. For the three and nine months ended October 31, 2020, the total drilling revenues reported within segment reporting was $15.3 and $26.9, respectively. For the three and nine months ended October 31, 2019, the total drilling revenues reported within segment reporting was $11.0 and $38.5, respectively.

These current period changes in the Company’s corporate allocation method and service offering revenue disclosures have no net impact to the condensed consolidated financial statements. The change better reflects the CODM’s philosophy on assessing performance and allocating resources as well as improves the Company’s comparability to its peer group.

Correction of Errors

During the three months ended October 31, 2020, the Company determined that accumulated depreciation was overstated following the impairment of certain property and equipment in prior periods. As a result, a prior period correction of $3.7 to reduce accumulated depreciation and depreciation expense was recorded during the three months ended October 31, 2020, of which $2.3 relates to depreciation expense recognized in the three months ended July 31, 2020 for assets impaired as of April 30, 2020.
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In addition, the Company identified a $2.0 gain on termination of leased vehicles which related to the three months ended July 31, 2020 but was recorded in the three months ended October 31, 2020. There was no impact to the condensed consolidated financial statements as of and for the nine months ended October 31, 2020 related to this error.

The Company concluded the errors were not material to previously issued financial statements.
NOTE 2 - Recent Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (“Topic 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”). The amendments in this ASU are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments in this ASU are effective for all entities, if elected, through December 31, 2022. While the exact impact of this standard is not known, the guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements.
    
In December 2019, FASB issued ASU 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes. This ASU is intended to simplify aspects of income tax approach for intraperiod tax allocations when there is a loss from continuing operations and income or a gain from other items, and to provide a general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Topic 740 also provides guidance to simplify how an entity recognizes a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, and evaluations of when step ups in the tax basis of goodwill should be considered part of a business combination. Companies should also reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The guidance is effective for the Company for the fiscal year beginning February 1, 2022. While the exact impact of this standard is not known, the guidance is not expected to have a material impact on the Company’s condensed consolidated financial statements.

In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (“Topic 230”): Classification of Certain Cash Receipts and Cash Payments, which addresses how certain cash receipts and payments are presented and classified in the statement of cash flows. These cash flow issues include debt prepayment or extinguishment costs, settlement of zero-coupon debt, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019, with early adoption permitted, and should be applied retrospectively. The adoption of ASU 2016-15 did not have a material impact on the Company’s condensed consolidated financial statements.

In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (“Topic 326”): Measurement of Credit Losses on Financial Instruments. This ASU is intended to update the measurement of credit losses on financial instruments. This update improves financial reporting by requiring earlier recognition of credit losses on financing receivables and other financial assets in scope by using the Current Expected Credit Losses (“CECL”) model. This guidance is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. The new accounting standard introduces the CECL methodology for estimating allowances for credit losses. The Company is an oilfield service company and as of October 31, 2020 had a third-party accounts receivable balance, net of allowance, of $49.4. Topic 326 is not expected to have a material impact on the Company’s condensed consolidated financial statements.
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In February 2016, FASB issued ASU 2016-02, Leases (“Topic 842”), which supersedes ASC Topic 840, Leases. Topic 842 requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. Topic 842 will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. In November 2019, FASB deferred the effective date for implementation of Topic 842 by one year and, in June 2020, FASB deferred the effective date by an additional year. The guidance under Topic 842 is effective for fiscal years beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022. Earlier adoption is permitted. To assess the impact of this guidance, the Company has established a cross functional implementation project team and is currently in the process of accumulating and evaluating all the necessary information required to properly account for its lease portfolio under the new standard. The Company is in the process of developing its new accounting policies and determining the potential aggregate impact this guidance is likely to have on its condensed consolidated financial statements as of its adoption date.
NOTE 3 - Business Combinations

QES Merger

On July 28, 2020, the Company completed the Merger with QES, a diversified provider of oilfield services to onshore oil and natural gas E&P     companies operating in the United States. The Merger purchase price was approximately $44.4 with cash paid to settle QES debt, comprised of 3.4 million shares of the Company’s common stock. Based on the Company’s preliminary purchase price allocation, the purchase price was less than the fair value of the identifiable assets acquired, which resulted in a $38.7 bargain purchase gain being recorded on the condensed consolidated statements of operations for the nine months ended October 31, 2020. The Company recorded a reduction in bargain purchase gain of $2.4 during the three months ended October 31, 2020 related to continued evaluation of the preliminary purchase price allocation. In connection with the closing of the Merger, $9.7 in outstanding borrowings and associated fees and expenses of QES's five-year asset-based revolving credit agreement (the “QES ABL Facility”) were paid off. In addition, the Company assumed certain QES compensation agreements, including restricted stock units ("RSU"), with an estimated fair value of $2.0. Based on the service period related to the period prior to the acquisition date, $0.4 was allocated to the purchase price, and $1.6 relating to post-acquisition services will be recorded as operating expenses over the remaining requisite service periods. RSUs were valued based on the July 28, 2020 grant date.

The Merger was accounted for as a purchase under FASB ASC 805, Business Combinations (“ASC 805”). The results of operations for the acquisition are included in the accompanying condensed consolidated statements of operations from the respective date of acquisition.

The fair values assigned to certain assets acquired and liabilities assumed in relation to the Company’s acquisition have been prepared on a preliminary basis with information currently available and are subject to change. The Company expects to finalize its analysis during fiscal 2020. The following table summarizes the fair values of assets acquired and liabilities assumed in the Merger in accordance with ASC 805:
QES
Cash$8.7 
Accounts receivable-trade12.2 
Inventories(1)
11.8 
Other current and non-current assets6.3
Property and equipment84.5
Accounts payable(27.2)
Other current and non-current liabilities(13.2)
Bargain purchase(38.7)
     Total purchase price (2)
$44.4 
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(1) After conforming to the Company’s inventory accounting policy, certain items acquired in the Merger were removed from Inventory balance and an offset was recorded to Bargain Purchase Gain.
(2) The total consideration transferred of $44.4 includes a cash transfer of $9.7 to pay off the QES ABL Facility.

The Company has substantially integrated portions of the QES business and, as a result, it is not practicable to report stand-alone revenues and operating (loss) earnings of the QES business since the Merger date.

Unaudited Supplemental Pro Forma Information

The unaudited supplemental pro forma financial information has been provided for illustrative purposes only and does not purport to be indicative of the actual results that would have been achieved by combining the companies for the periods presented, or of the results that may be achieved by the combined companies in the future. Further, results may vary significantly from the results reflected in the following unaudited supplemental pro forma financial information because of future events and transactions, as well as other factors. The unaudited supplemental pro forma financial information does not include adjustments to reflect the impact of other cost savings or synergies that may result from the Merger.

On a pro forma basis to give effect to the Merger, as if it occurred on February 1, 2019, revenues, net loss and loss per diluted share for the three and nine months ended October 31, 2020 and 2019 would have been as follows:
Unaudited Pro Forma
Three Months EndedNine Months Ended
October 31, 2020October 31, 2019October 31, 2020October 31, 2019
Revenues$70.9 $242.8 $283.6 $815.6 
Net loss(35.9)(116.7)(353.7)(134.5)
Loss per diluted share(4.27)(14.96)(42.61)(17.47)

2019 Acquisitions

On March 15, 2019, the Company acquired Tecton Energy Services (“Tecton”), a provider of flowback and production testing services, operating primarily in the Rocky Mountains. On March 19, 2019, the Company acquired Red Bone Services LLC (“Red Bone”), a provider of fishing and thru-tubing services in the Mid-Continent. The aggregate acquisition price of the acquisitions was approximately $74.6, comprised of approximately $47.0 in shares of the Company’s common stock issuable over time at a fixed price and approximately $27.6 in cash to the sellers and for the retirement of debt. Based on the Company’s final purchase price allocation, the excess of the purchase price over the fair value of the identifiable assets acquired approximated $51.2, of which $19.4 was allocated to intangible assets consisting of customer contracts and relationships and covenants not to compete, and $31.8 was allocated to goodwill. The useful life assigned to the customer contracts and relationships is 10 years, and the covenants not to compete are being amortized over their contractual periods of 1.5 - 3 years for Tecton and Red Bone.

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The Tecton and Red Bone acquisitions were accounted for as purchases under ASC 805. The results of operations for the acquisitions are included in the accompanying condensed consolidated statements of operations from the respective dates of acquisition. The following table summarizes the fair values of assets acquired and liabilities assumed in the Tecton and Red Bone acquisitions in accordance with ASC 805:
TectonRed Bone
Accounts receivable-trade$2.1 $7.2 
Inventories 2.7
Other current and non-current assets0.2 
Property and equipment2.823.6
Goodwill15.016.8
Identified intangibles6.213.2
Accounts payable and accrued liabilities(2.1)(4.2)
Other current and non-current liabilities(1.6)(7.3)
     Total consideration paid$22.6 $52.0 

The majority of goodwill and intangible assets for Tecton and Red Bone are not expected to be deductible for tax purposes.

The Company has substantially integrated Red Bone and, as a result, it is not practicable to report stand-alone revenues and operating earnings of the acquired business since the acquisition date. The amount of Tecton revenues included in the Company’s results was approximately $7.0 and $16.1 for the three and nine months ended October 31, 2019, respectively. It is not practicable to report stand-alone operating earnings of Tecton since the acquisition date.

Unaudited Supplemental Pro Forma Information

On a pro forma basis to give effect to the Tecton and Red Bone acquisitions, as if they occurred on February 1, 2019, revenues, net loss and loss per diluted share for the three and nine months ended October 31, 2020 and 2019 would have been as follows:
Unaudited Pro Forma
Three Months EndedNine Months Ended
October 31, 2020October 31, 2019October 31, 2020October 31, 2019
Revenues$70.9 $134.5 $190.1 $452.9 
Net loss(38.3)(69.8)(301.8)(70.8)
Loss per diluted share(4.56)(15.50)(50.26)(15.90)
NOTE 4 - Merger and Integration Costs

Merger and integration costs were recorded separately from the acquisition of assets and assumptions of liabilities in the Merger. Merger costs consist of legal and professional fees and accelerated stock compensation expense. Integration costs consist of expenses to relocate corporate headquarters, integrate the QES business, reduce headcount, and consolidate service and support facilities.

Merger and integration costs totaled $9.8 and $36.3 for the three and nine months ended October 31, 2020, respectively. $2.7 and $3.0 were recorded to cost of sales in the interim condensed consolidated statements of operations for the three and nine months ended October 31, 2020, respectively. $2.7 and $28.9 were recorded to selling, general and administrative in the interim condensed consolidated statements of operations for the three and nine months ended October 31, 2020, respectively. Lease termination costs of $4.4 and $4.4 were recorded to impairment and other charges in the interim condensed consolidated statements of operations for the three and nine months ended October 31, 2020, respectively.

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As the Company continues to integrate the QES business, there will be further charges in future periods relating to, among other things, fixed assets, facilities, workforce reductions and other assets.

The following table presents Merger and integration costs that were recorded for the three and nine months ended October 31, 2020 in the interim condensed consolidated statements of operations (in millions of U.S. dollars):
Three Months Ended October 31, 2020Nine Months Ended October 31, 2020
Merger costs$1.3 $27.8 
Integration costs8.5 8.5 
Total Merger and Integration Costs$9.8 $36.3 
NOTE 5 - Inventories, net
Inventories consisted of the following:
October 31, 2020January 31, 2020
Supplies$14.1 $5.6 
Plugs5.8 6.1 
Consumables4.0 1.0 
Work-in-progress 0.2 
Other1.4 0.6 
Subtotal25.3 13.5 
   Inventory reserve(2.2)(1.5)
Total inventories$23.1 $12.0 

Inventories, which consist of finished goods, primarily include plugs, packers and other consumables used to perform services for customers. The Company values inventories at the lower of cost or net realizable value. Inventory reserves were approximately $2.2 and $1.5 as of October 31, 2020 and January 31, 2020, respectively.

During the quarter ended October 31, 2020, the Company identified certain excess inventory of $1.2, which was written off to cost of sales in the condensed consolidated statement of operations.
NOTE 6 - Property and Equipment, Net

Property and equipment consisted of the following:
Useful Life (Years)October 31, 2020January 31, 2020
Land, buildings and improvements140$44.5 $38.2 
Machinery120222.0257.9
Furniture and equipment115183.0216.7
   Total property and equipment449.5512.8
Less accumulated depreciation229.0206.0
   Property and equipment, net$220.5 $306.8 

Depreciation expense was $14.7 and $15.7 for the three months ended October 31, 2020 and 2019, respectively, and $40.0 and $45.1 for the nine months ended October 31, 2020 and 2019, respectively.




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Assets Held for Sale

As of October 31, 2020, the Company’s condensed consolidated balance sheet includes assets classified as held for sale of $4.5. The assets held for sale are reported within other current assets on the condensed consolidated balance sheet and represent the value of five operational facilities. In light of the current market environment and as part of the ongoing integration of the QES business, the Company has consolidated operations within certain geographies rendering these locations unnecessary to support the efficient operations of the Company. These assets are being actively marketed for sale as of October 31, 2020 and are recorded at the lower of their carrying value or fair value less costs to sell.

NOTE 7 - Goodwill and Intangible Assets, Net

The following sets forth the intangible assets by major asset class, all of which were acquired through business purchase transactions:
October 31, 2020January 31, 2020
Useful Life (Years)Original CostAccumulated AmortizationNet Book ValueOriginal
Cost
Accumulated AmortizationNet Book Value
Customer contracts and relationships (1)
10$5.7 $3.1 $2.6 $43.0 $2.4 $40.6 
Covenants not to compete
1.5 - 3
0.5 0.5  4.7 1.9 2.8 
Developed technologies15   3.3 0.9 2.4 
     Total intangible assets$6.2 $3.6 $2.6 $51.0 $5.2 $45.8 

(1) The customer contracts and relationships intangible asset’s useful life was reduced from 20 to 10 years as of July 31, 2020.

Amortization expense associated with intangible assets was $0.0 and $1.0 for the three months ended October 31, 2020 and 2019, respectively, and $3.8 and $2.9 for the nine months ended October 31, 2020 and 2019, respectively. Due to the accelerated amortization of intangible assets, the Company does not expect to recognize future material amortization expense related to intangible assets. During the nine months ended October 31, 2020, accelerated amortization of $2.7 was recognized related to the Company’s customer contracts and relationships long-lived intangible. Actual future amortization expense may be different due to future acquisitions, impairments, changes in amortization periods or other factors.

Goodwill and indefinite life intangible assets are tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of the asset has decreased below its carrying value. The oilfield service industry experienced an abrupt deterioration in demand during the second half of 2019, which has continued into 2020. During the first quarter of 2020, the novel coronavirus (“COVID-19”) pandemic emerged and applied significant downward pressure on the global economy and oil demand and prices, leading North American operators to announce significant cuts to planned 2020 capital expenditures. The combination of the COVID-19 pandemic and supply concerns has driven a steep drop in oil prices, leading to decreases in demand for the Company’s services and lower current and expected revenues for the Company.

Based on the impairment indicators above, the Company performed a goodwill and long-lived asset impairment analysis during the three months ended April 30, 2020. The results of the impairment analysis concluded that the carrying amount of the long-lived assets exceeded the relative fair values of two of the reporting units asset groups. As a result, the Company recorded a $180.4 long-lived asset impairment charge, $39.2 related to intangible assets and $141.2 related to property and equipment, which is included in the condensed consolidated statements of operations for the nine months ended October 31, 2020. This charge reflects $91.3 and $89.1 of the long-lived assets attributable to the Southwest and Northeast/Mid-Con segments, respectively.

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Determining fair value requires the use of estimates and assumptions. Such estimates and assumptions include revenue growth rates, operating profit margins, weighted average cost of capital, terminal growth rates, future market share and future market conditions, among others. The Company’s cash flow projections were a significant input into the April 30, 2020 fair values. See Note 10 for additional information regarding the fair value determination. If the Company continues to be unable to achieve projected results or long-term projections are adjusted downward, it could negatively impact future valuations of the Company’s long-lived assets.

The valuation of the Company and its reportable segments’ goodwill impairment test was estimated using the guideline public company analysis and the discounted cash flow analysis, which were equally weighted in the fair value analysis. See Note 10 for additional information regarding the fair value determination. The results of the goodwill impairment test as of April 30, 2020 indicated that goodwill was impaired because the carrying value of the Rocky Mountains reporting unit exceeded its relative fair value. Accordingly, the Company recorded a $28.3 goodwill impairment charge, which is included in the condensed consolidated statements of operations for the nine months ended October 31, 2020. This charge reflects the full value of the goodwill attributable to the Rocky Mountains segment, leaving the Company with no goodwill as of October 31, 2020.

During the second quarter 2020 review of the customer relationship intangible assets, an analysis of the future contributions to revenue from these customers resulted in forecast declines of approximately 50%. As a result of the review, the Company recognized a charge of $2.7 reflecting accelerated amortization to reduce the carrying value of its customer relationships intangible. The accelerated amortization charge is included in the condensed consolidated statements of operations for the nine months ended October 31, 2020.
NOTE 8 - Accrued Liabilities

Accrued liabilities consisted of the following:
October 31, 2020January 31, 2020
Accrued salaries, vacation and related benefits$9.2 $13.9 
Accrued property taxes6.1 2.3 
Accrued incentive compensation1.1 2.3 
Other accrued liabilities17.4 7.7 
     Total accrued liabilities$33.8 

$26.2 
NOTE 9 - Long-Term Debt
As of October 31, 2020, long-term debt consisted of $250.0 principal amount of 11.5% senior secured notes due 2025 (the “Notes”) offered pursuant to Rule 144A under the Securities Act of 1933 (as amended, the “Securities Act”) and to certain non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act. On a net basis, after taking into consideration the debt issuance costs for the Notes, total debt as of October 31, 2020 was $243.6. The Notes bear interest at an annual rate of 11.5%, payable semi-annually in arrears on May 1 and November 1. Accrued interest as of October 31, 2020 was $14.4.

As of October 31, 2020, the Company also had a $100.0 asset-based revolving credit facility pursuant to a senior secured credit agreement dated August 10, 2018 (the “ABL Facility”). The ABL Facility became effective on September 14, 2018 and matures in September 2023. On October 22, 2018, the ABL Facility was amended primarily to permit the Company to issue the Notes and acquire Motley Services, LLC (“Motley”) and the definition of the required ratio (as defined in the ABL Facility) was also amended as a result of the Notes issuance.

Borrowings under the ABL Facility bear interest at a rate equal to LIBOR plus the applicable margin (as defined in the ABL Facility). There were no outstanding amounts under the ABL Facility as of October 31, 2020.

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The ABL Facility is tied to a borrowing base formula and has no maintenance financial covenants as long as the minimum level of borrowing availability is maintained. During the three months ended October 31, 2020, the Company included the acquired QES current asset collateral into the borrowing base formula used to calculate the Company’s borrowing availability. The ABL Facility is secured by, among other things, a first priority lien on the Company’s accounts receivable and inventory and contains customary conditions precedent to borrowing and affirmative and negative covenants.

Availability under the ABL Facility was $26.4 and $60.0 as of October 31, 2020 and January 31, 2020, respectively. The decrease in availability during the nine months ended October 31, 2020 is primarily related to lower levels of activity and correspondingly lower levels of accounts receivable at October 31, 2020.

The ABL Facility includes a financial covenant which requires the Company’s consolidated fixed charge coverage ratio (“FCCR”) to be at least 1.0 to 1.0 if availability falls below the greater of $10.0 or 15% of the borrowing base. At all times during the three months ended October 31, 2020, availability exceeded this threshold, and the Company was not subject to this financial covenant. As of October 31, 2020, the FCCR was below 1.0 to 1.0. The Company was in full compliance with its credit facility as of October 31, 2020.

Total letters of credit outstanding under the ABL Facility were $9.6 at October 31, 2020, of which $2.8 have been extinguished during the fourth quarter of 2020.
NOTE 10 - Fair Value Information

All financial instruments are carried at amounts that approximate estimated fair value. The fair value is the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. Assets measured at fair value are categorized based upon the lowest level of significant input to the valuations.

Level 1 – quoted prices in active markets for identical assets and liabilities.

Level 2 – quoted prices for identical assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical assets and liabilities.

Level 3 – unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions.

The carrying amounts of cash and cash equivalents, accounts receivable-trade and accounts payable represent their respective fair values due to their short-term nature. There was no debt outstanding under the ABL Facility as of October 31, 2020. The fair value of the Notes, based on market prices for publicly traded debt, which the Company classifies as Level 2 inputs, was $120.0 and $202.5 as of October 31, 2020 and January 31, 2020, respectively.

During the nine months ended October 31, 2020, goodwill and long-lived assets, including certain property and equipment and purchased intangibles subject to amortization, were impaired as a result of the first quarter 2020 interim goodwill and long-lived asset impairment tests. The goodwill Level 3 fair value was determined using the average of the guideline public company analysis and the discounted cash flow analysis, both of which were unobservable. The long-lived asset Level 3 fair value was determined using the discounted cash flow analysis using the market and income approaches, both of which were unobservable.

Fair value is measured as of the impairment date. The carrying value and fair values of the impaired assets as of April 30, 2020 was $194.0 and $52.8 for property and equipment, net, $28.3 and $0.0 for goodwill, and $39.2 and $0.0 for intangible assets, net, respectively. See Note 7 for a discussion of the changes in goodwill and long-lived asset values due to impairment charges recorded during the nine months ended October 31, 2020.
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NOTE 11 - Commitments, Contingencies and Off-Balance-Sheet Arrangements

Environmental Regulations & Liabilities

The Company is subject to various federal, state and local environmental laws and regulations that establish standards and requirements for the protection of the environment. The Company continues to monitor the status of these laws and regulations. However, the Company cannot predict the future impact of such laws and regulations, as well as standards and requirements, on its business, which are subject to change and can have retroactive effectiveness. Currently, the Company has not been fined, cited or notified of any environmental violations or liabilities that would have a material adverse effect on its condensed consolidated financial statement position, results of operations, liquidity or capital resources. However, management does recognize that by the very nature of its business, material costs could be incurred in the future to maintain compliance. The amount of such future expenditures is not determinable due to several factors, including the unknown magnitude of possible regulation or liabilities, the unknown timing and extent of the corrective actions that may be required, the determination of the Company’s liability in proportion to other responsible parties and the extent to which such expenditures are recoverable from insurance or indemnification.

Litigation

During the year ended January 31, 2020, the Company discovered a credit card theft of approximately $2.6 (which is included in cost of sales for the year ended January 31, 2020) and promptly reported the theft to its insurers and law enforcement. The Company also filed suit against several third parties to recover damages related to the theft. During the three months ended October 31, 2020, the Company received an insurance reimbursement of $2.5 from insurance providers (which is included in cost of sales for the three and nine months ended October 31, 2020). The Company implemented additional expenditure controls to reduce the likelihood of similar thefts in the future, such as daily limits on all fuel cards and additional credit card activity reviews by management.

The Company is a defendant in various legal actions arising in the normal course of business, the outcomes of which, in the opinion of management, neither individually nor in the aggregate are likely to result in a material adverse effect on the Company’s condensed consolidated financial statements.

Indemnities, Commitments and Guarantees

During its ordinary course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These indemnities include indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease, as well as indemnities to other parties to certain acquisition agreements. The duration of these indemnities, commitments and guarantees varies and, in certain cases, is indefinite. Many of these indemnities, commitments and guarantees provide for limitations on the maximum potential future payments the Company could be obligated to make. However, the Company is unable to estimate the maximum amount of liability related to its indemnities, commitments and guarantees because such liabilities are contingent upon the occurrence of events that are not reasonably determinable. Management believes that any liability for these indemnities, commitments and guarantees would not be material to the accompanying condensed consolidated financial statements. Accordingly, no significant amounts have been accrued for indemnities, commitments and guarantees.

NOTE 12 - Accounting for Stock-Based Compensation

The Company has a Long-Term Incentive Plan (“LTIP”) under which the compensation committee of the Board (the “Compensation Committee”) has the authority to grant stock options, stock appreciation rights, restricted stock, restricted stock units or other forms of equity-based or equity-related awards. Compensation
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cost for the LTIP grants is generally recorded on a straight-line basis over the vesting term of the shares based on the grant date value using the closing trading price.

Compensation cost recognized during the three and nine months ended October 31, 2020 and 2019 related to grants of restricted stock granted or approved by the Compensation Committee. Certain grants of restricted stock to directors and management accelerated in connection with the Merger on July 28, 2020, resulting in approximately $15.1 of stock-based compensation expense during the nine months ended October 31, 2020. As a result, stock-based compensation was $0.5 and $4.6 for the three months ended October 31, 2020 and 2019, respectively, and $17.2 and $13.6 for the nine months ended October 31, 2020 and 2019, respectively. Unrecognized compensation cost related to restricted stock awards made by the Company was $4.5 at October 31, 2020.

As of the date of the QES acquisition, each unvested QES restricted stock unit award was converted into a replacement 0.0969 KLXE restricted stock unit award. Approximately 2.0 million shares of QES common stock subject to awards outstanding were converted to 0.2 million shares of common stock assumed by KLXE.

The Company also has a qualified Employee Stock Purchase Plan (the “ESPP”), the terms of which allow for qualified employees (as defined in the ESPP) to participate in the purchase of designated shares of the Company’s common stock at a price equal to 85% of the closing price on the last business day of each semi-annual stock purchase period. The fair value of the employee purchase rights represents the difference between the closing price of the Company’s shares on the date of purchase and the purchase price of the shares. Because the ESPP did not have enough shares reserved to satisfy outstanding options to purchase during the offering period ended June 30, 2020, the Company refunded participants’ contributions. In addition, the Company agreed with QES to suspend the ESPP due to the Merger. As a result, compensation cost was $0.0 and $0.1 for the three months ended October 31, 2020 and 2019, respectively, and $0.0 and $0.2 for the nine months ended October 31, 2020 and 2019, respectively. The Company’s shareholders approved an amendment to the ESPP at the Company’s annual meeting on July 24, 2020, for an increase of 0.3 million shares to the ESPP’s share reserve.
NOTE 13 - Income Taxes

Income tax expense was $0.2 and $0.3 for the three and nine months ended October 31, 2020, respectively, and was comprised primarily of state and local taxes, compared to income tax benefit of $0.5 and $0.1 for the three and nine months ended October 31, 2019, respectively. The Company has a valuation allowance against its deferred tax balances, and as a result, it was unable to recognize a tax benefit at the federal statutory rate of 21% on its year to date losses.

In response to the COVID-19 pandemic, many governments have enacted or are contemplating measures to provide aid and economic stimulus. These measures may include deferring the due dates of tax payments or other changes to their income and non-income-based tax laws. The Coronavirus Aid, Relief, and Economic Security Act, which was enacted on March 27, 2020 in the United States, includes measures to assist companies, including temporary changes to income and non-income-based tax laws. The Company has deferred the employer portion of FICA tax payments of $2.9 as of October 31, 2020. This deferral is included in other non-current liabilities on the condensed consolidated balance sheet. These payments are due in two installments: half on December 31, 2021; and half on December 31, 2022. The Company continues to monitor additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service and others.
NOTE 14 - Segment Reporting

The Company is organized on a geographic basis. The Company’s reportable segments, which are also its operating segments, are comprised of the Southwest Region (the Permian Basin and the Eagle Ford Shale), the Rocky Mountains Region (the Bakken, Williston, DJ, Uinta, Powder River, Piceance and Niobrara basins) and the Northeast/Mid-Con Region (the Marcellus and Utica Shale as well as the Mid-Continent STACK and SCOOP and Haynesville Shale). The segments regularly report their results of operations and make requests
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for capital expenditures and acquisition funding to the CODM. As a result, the CODM has determined the Company has three reportable segments.

The following table presents revenues and operating (loss) earnings by reportable segment:
Three Months EndedNine Months Ended
October 31, 2020October 31, 2019October 31, 2020October 31, 2019
Revenues
Southwest$24.8 $38.5 $53.4 $149.8 
Rocky Mountains18.2 57.6 70.1 169.7 
Northeast/Mid-Con27.9 38.4 66.6 125.7 
Total revenues70.9 134.5 190.1 445.2 
Operating (loss) earnings (1)(2)
Southwest(8.2)(36.1)(113.5)(30.9)
Rocky Mountains(4.6)8.7 (45.2)31.8 
Northeast/Mid-Con(4.0)(22.1)(104.2)(6.0)
Corporate and other (1)(2)
(11.2)(13.6)(54.6)(44.6)
Bargain purchase gain(2.4) 38.7  
Total operating loss(30.4)(63.1)(278.8)(49.7)
Interest expense, net7.7 7.2 22.7 21.7 
Loss before income tax$(38.1)$(70.3)$(301.5)$(71.4)
(1) Historically, and through July 31, 2020, the Companys total corporate overhead costs were allocated and reported within each reportable segment. During the third quarter of 2020, the Company changed the corporate overhead allocation methodology to include corporate costs incurred on behalf of its operating segments, which includes accounts payable, accounts receivable, insurance, audit, supply chain, health, safety and environmental and others. The remaining unallocated corporate costs are reported as a reconciling item. The change will better reflect the CODM’s philosophy on assessing performance and allocating resources, as well as improve comparability to the Companys peer group.
(2) Operating loss for the nine-month period ended October 31, 2020 includes impairment and other charges of $213.1 which is comprised of a goodwill and long-lived asset impairment charge of $208.7, of which $91.3 was attributable to the Southwest segment, $28.3 was attributable to the Rocky Mountains segment and $89.1 was attributable to the Northeast/Mid-Con segment, and a lease termination charge of $4.4, of which $2.3 was attributable to Corporate and other and $1.4 and $0.7 was attributable to the Southwest and Northeast/Mid-con segments, respectively.

The following table presents revenues by service offering by reportable segment:
Three Months Ended
October 31, 2020October 31, 2019
SouthwestRocky
Mountains
Northeast
/Mid-Con
TotalSouthwestRocky
Mountains
Northeast
/Mid-Con
Total
Drilling$7.1 $0.2 $8.0 $15.3 $2.5 $ $8.5 $11.0 
Completion11.9 8.9 10.3 31.1 24.2 31.4 11.1 66.7 
Production1.5 4.3 1.7 7.5 3.9 13.3 6.2 23.4 
Intervention4.3 4.8 7.9 17.0 7.9 12.9 12.6 33.4 
Total revenues$24.8 $18.2 $27.9 $70.9 $38.5 $57.6 $38.4 $134.5 

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Nine Months Ended
October 31, 2020October 31, 2019
SouthwestRocky
Mountains
Northeast
/Mid-Con
TotalSouthwestRocky
Mountains
Northeast
/Mid-Con
Total
Drilling$9.2 $0.2 $17.5 $26.9 $8.4 $0.1 $30.0 $38.5 
Completion27.5 40.1 24.8 92.4 97.6 96.3 29.8 223.7 
Production 5.5 15.0 6.7 27.2 15.9 36.9 26.6 79.4 
Intervention 11.2 14.8 17.6 43.6 27.9 36.4 39.3 103.6 
Total revenues$53.4 


$70.1 


$66.6 


$190.1 


$149.8 


$169.7 


$125.7 


$445.2 

The following table presents total assets by segment:
October 31, 2020 (1)
January 31, 2020
Southwest$93.2 $153.3 
Rocky Mountains118.2 186.8 
Northeast/Mid-Con97.7 144.2 
   Total309.1 484.3