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Business Description and Basis of Presentation [Text Block]

1.	DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Description of the Business

We are one of the largest integrated providers of longer-term and temporary remote site accommodations, logistics and facility management services to the natural resource industry. Our scalable modular facilities provide long-term and temporary workforce accommodations where traditional accommodations and related infrastructure is insufficient, inaccessible or not cost effective. Once facilities are deployed in the field, we also provide catering and food services, housekeeping, laundry, facility management, water and wastewater treatment, power generation, communications and redeployment logistics. Our accommodations support workforces in the Canadian oil sands and in a variety of oil and natural gas drilling, mining and related natural resource applications as well as disaster relief efforts, primarily in Canada, Australia and the United States. We operate in three principal reportable business segments – Canadian, Australian and U.S.

On May 30, 2014, Oil States International, Inc. (Oil States) spun-off its Accommodations Segment (Accommodations) into a standalone, publicly traded Delaware corporation (Civeo US). In accordance with the Separation and Distribution Agreement, the two companies were separated by Oil States distributing to its stockholders all 106,538,044 shares of common stock of Civeo US it held after the market closed on May 30, 2014 (the Spin-Off).

On July 17, 2015, we changed our place of incorporation, pursuant to which Civeo Corporation, a British Columbia, Canada limited company formerly named Civeo Canadian Holdings ULC (Civeo Canada), became the publicly traded parent company of the Civeo group of companies (the Redomicile Transaction). The Redomicile Transaction was effected pursuant to an Agreement and Plan of Merger, dated as of April 6, 2015, between Civeo US, Civeo US Merger Co, a Delaware corporation and wholly owned subsidiary of Civeo Canada (US Merger Co), and Civeo Canada. At the effective time of the merger, (i) US Merger Co was merged with Civeo US, with Civeo US surviving the merger as a wholly owned subsidiary of Civeo Canada, and (ii) each issued share of Civeo US common stock, other than those shares of Civeo US common stock held by Civeo US in treasury, was effectively transferred to Civeo Canada and converted into one common share, no par value, of Civeo Canada. An aggregate of approximately 107.5 million Civeo Canada common shares were issued at the effective time as merger consideration. The Civeo Canada common shares are listed on the NYSE under the symbol “CVEO,” the same symbol under which the Civeo US common stock traded prior to the effective time.

On February 18, 2016, we amended our credit facility to, among other things, (i) allow us to borrow under new Canadian tranches of the credit facility, (ii) substantially reduce both the existing U.S. term loan and the Canadian revolving credit facility and (iii) increase the maximum leverage ratio allowed under the credit facility. For further information, please see Note 7 – Debt.

We incurred costs related to the Redomicile Transaction totaling $1.0 million and $1.2 million for the three months ended March 31, 2016 and 2015, respectively. In addition, we incurred costs related to the amendment to our credit facility totaling $2.1 million for the three months ended March 31, 2016. $2.0 million has been capitalized as debt issuance costs, and the remaining $0.1 million is included in interest expense.

Basis of Presentation

Unless otherwise stated or the context otherwise indicates, all references in these consolidated financial statements to “Civeo,” “the Company,” “us,” “our” or “we” for the time periods prior to July 17, 2015 refer to Civeo US and its consolidated subsidiaries. For time periods after July 17, 2015, these terms refer to Civeo Canada and its consolidated subsidiaries.

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

The accompanying unaudited consolidated financial statements of Civeo have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) pertaining to interim financial information. Certain information in footnote disclosures normally included in financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) has been condensed or omitted pursuant to these rules and regulations. The unaudited financial statements included in this report reflect all the adjustments, consisting of normal recurring adjustments, which the Company considers necessary for a fair presentation of the results of operations for the interim periods covered and for the financial condition of the Company at the date of the interim balance sheet. Results for the interim periods are not necessarily indicative of results for the full year. Certain reclassifications have been made to the December 31, 2015 consolidated balance sheet to conform to current year presentation.

The preparation of consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. If the underlying estimates and assumptions upon which the financial statements are based change in future periods, actual amounts may differ from those included in the accompanying consolidated financial statements.

The financial statements included in this report should be read in conjunction with our audited financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2015.

Note 2 - Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2016

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

2.	RECENT ACCOUNTING PRONOUNCEMENTS

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the FASB), which are adopted by us as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on our consolidated financial statements upon adoption.

In March 2016, the FASB issued Accounting Standards Update (ASU) 2016-09, “Improvements to Employee Share-Based Payment Accounting” (ASU 2016-09). This new standard requires companies to recognize the income tax effects of awards in the income statement when the awards vest or are settled. ASU 2016-09 is effective for financial statements issued for reporting periods beginning after December 15, 2016 and interim periods within the reporting periods. We are currently evaluating the impact of this new standard on our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842), which replaces the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for all leases with terms longer than 12 months.

The guidance is effective for financial statements issued for reporting periods beginning after December 15, 2018 and interim periods within the reporting periods. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the impact of this new standard on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03 “Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs” (ASU 2015-03). ASU 2015-03 simplifies the presentation of debt issuance costs by requiring that such costs be presented as a deduction from the corresponding debt liability. The guidance is effective for financial statements issued for reporting periods beginning after December 15, 2015 and interim periods within the reporting periods and requires retrospective presentation. Effective with this quarterly report on Form 10-Q for the quarter ended March 31, 2016, we have adopted the provisions of ASU 2015-03. At December 31, 2015, as a result of our adoption of ASU 2015-03, we reclassified $4.7 million of debt issuance costs to reduce our recognized debt liabilities from other current assets ($1.3 million) and other non-current assets ($3.4 million) on the accompanying unaudited consolidated balance sheet. A portion of our debt issuance costs relate to revolving lines of credit and will accordingly continue to be included in “Other current assets” or “Other non-current assets”.

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

In May 2014, the FASB issued ASU 2014-09 establishing Accounting Standards Codification (ASC) Topic 606, “Revenue from Contracts with Customers” (ASC 606). ASC 606 establishes a comprehensive new revenue recognition model designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for those goods or services and requires significantly enhanced revenue disclosures. The standard is effective for annual reporting periods beginning after December 15, 2017. Accordingly, we plan to adopt this standard in the first quarter of 2018. ASC 606 allows either full retrospective or modified retrospective transition, and early adoption is not permitted. We continue to evaluate both the impact of this new standard on our consolidated financial statements and the transition method we will utilize for adoption.

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Note 3 - Fair Value Measurements

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Text Block]

3.	FAIR VALUE MEASUREMENTS

Our financial instruments consist of cash and cash equivalents, receivables, payables and debt instruments. We believe that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values.

As of March 31, 2016 and December 31, 2015, we believe the carrying value of our floating-rate debt outstanding under our term loans and revolving credit facilities approximates their fair values because their terms include short-term interest rates and exclude penalties for prepayment. We estimated the fair value of our floating-rate term loan and revolving credit facilities using significant other observable inputs, representative of a Level 2 fair value measurement, including terms and credit spreads for these loans.

During the first quarter of 2016 and 2015, we wrote down certain long-lived assets to their fair values. Our estimate of fair value required us to use significant unobservable inputs, representative of Level 3 fair value measurements, including numerous assumptions with respect to future circumstances, such as future oil, coal and natural gas prices, anticipated spending by our customers, the cost of capital and industry and/or local market conditions that might directly impact each of the asset groups’ operations in the future and are therefore uncertain.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Note 4 - Details of Selected Balance Sheet Accounts

3 Months Ended

Mar. 31, 2016

Supplemental Balance Sheet Disclosures [Text Block]

4.	DETAILS OF SELECTED BALANCE SHEET ACCOUNTS

Additional information regarding selected balance sheet accounts at March 31, 2016 and December 31, 2015 is presented below (in thousands):

	March 31, 2016			December 31, 201 5
Accounts receivable, net:
Trade	$	40,758		$	44,650
Unbilled revenue		22,376			16,649
Other		1,163			1,289
Total accounts receivable		64,297			62,588
Allowance for doubtful accounts		(982	)		(1,121	)
Total accounts receivable, net	$	63,315		$	61,467

	March 31, 2016		December 31, 201 5
Inventories:
Finished goods and purchased products	$	2,009	$	1,854
Work in process		593		1,260
Raw materials		2,561		2,517
Total inventories	$	5,163	$	5,631

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

	Estimated Useful Life (in years)			March 31, 2016			December 31, 201 5
Property, plant and equipment, net:
Land				$	49,967		$	47,825
Accommodations assets	3	-	15		1,578,680			1,482,842
Buildings and leasehold improvements	3	-	20		28,355			29,099
Machinery and equipment	4	-	15		9,786			9,183
Office furniture and equipment	3	-	7		30,745			29,172
Vehicles	3	-	5		15,542			15,412
Construction in progress					30,576			52,558
Total property, plant and equipment					1,743,651			1,666,091
Accumulated depreciation					(797,595	)		(734,177	)
Total property, plant and equipment, net				$	946,056		$	931,914

	March 31, 2016		December 31, 201 5
Accrued liabilities:
Accrued compensation	$	8,674	$	11,726
Accrued taxes, other than income taxes		1,713		963
Accrued interest		201		12
Other		1,980		2,133
Total accrued liabilities	$	12,568	$	14,834

Note 5 - Impairment Charges

3 Months Ended

Mar. 31, 2016

Asset Impairment Charges [Text Block]

5.	IMPAIRMENT CHARGES

Quarter ended March 31, 2016.

During the first quarter of 2016, we recorded an impairment expense of $8.4 million, resulting from the impairment of fixed assets in our U.S. segment, due to a continued reduction of U.S. drilling activity in the Bakken Shale region. These fixed assets were written down to their fair value of $3.8 million. We assessed the carrying values of the asset groups to determine if they continued to be recoverable based on estimated future cash flows. Based on the assessment, the carrying values were determined to not be recoverable, and we proceeded to compare the fair value of those assets groups to their respective carrying values.

Quarter ended March 31, 2015.

During the first quarter of 2015, we made the decision to dispose of our manufacturing facility in Johnstown, Colorado. Accordingly, the facility met the criteria of held for sale, and its carrying value was adjusted downward to $8.7 million, which represents its estimated fair value less the cost to sell. We recorded a pre-tax impairment expense of $2.7 million and an additional $1.1 million write-down of our inventory as a result. During the fourth quarter of 2015, we completed the sale of the facility.

Note 6 - Earnings Per Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Text Block]

6.	EARNINGS PER SHARE

The calculation of earnings per share attributable to the Company is presented below for the periods indicated (in thousands, except per share amounts):

	THREE MONTHS ENDED MARCH 31,
	2016			201 5
Basic Loss per Share
Net loss attributable to Civeo	$	(26,822	)	$	(16	)
Less: undistributed net income to participating securities		--			--
Net loss attributable to Civeo’s common shareholders - basic	$	(26,822	)	$	(16	)

Weighted average common shares outstanding - basic		106,814			106,460

Basic loss per share	$	(0.25	)	$	(0.00	)

Diluted Loss per Share
Net loss attributable to Civeo’s common shareholders - basic	$	(26,822	)	$	(16	)
Less: undistributed net income to participating securities		--			--
Net loss attributable to Civeo’s common shareholders - diluted	$	(26,822	)	$	(16	)


Weighted average common shares outstanding - basic		106,814			106,460
Effect of dilutive securities		--			--
Weighted average common shares outstanding - diluted		106,814			106,460

Diluted loss per share	$	(0.25	)	$	(0.00	)

Note 7 - Debt

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Text Block]

DEBT

As of March 31, 2016 and December 31, 2015, long-term debt consisted of the following (in thousands):

	March 31, 2016		December 31, 2015
U.S. term loan, which matures on May 28, 2019; principal repayable on May 28, 2019; weighted average interest rate of 3.2% for the three month period ended March 31, 2016	$	24,375	$	49,375
Canadian term loan, which matures on May 28, 2019; 1.25% of aggregate principal repayable per quarter beginning December 31, 2015; weighted average interest rate of 3.4% for the three month period ended March 31, 2016		316,260		300,165
U.S. revolving credit facility, which matures on May 28, 2019, with available commitments up to $50.0 million; weighted average interest rate of 5.0% for the three month period ended March 31, 2016		800		--
Canadian revolving credit facility, which matures on May 28, 2019, with available commitments up to $100.0 million; weighted average interest rate of 3.6% for the three month period ended March 31, 2016		41,634		52,020
Canadian revolving credit facility, which matures on May 28, 2019, with available commitments up to $100.0 million; no borrowings outstanding as of March 31, 2016		--		--
Australian revolving credit facility, which matures on May 28, 2019, with available commitments up to $100.0 million; weighted average interest rate of 4.9% for the three month period ended March 31, 2016		32,239		--
		415,308		401,560
Less: Unamortized debt issuance costs		5,346		4,683
Total debt		409,962		396,877
Less: Current portion of long-term debt, including unamortized debt issuance costs, net		15,964		17,461
Long-term debt, less current maturities	$	393,998	$	379,416

Interest expense on the unaudited consolidated statements of operations is net of capitalized interest of zero and $0.4 million for the three month periods ended March 31, 2016 and 2015, respectively.

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

Amended

Credit Facility

As of December 31, 2015, our revolving credit facility consisted of (i) a $375.0 million, 5-year revolving credit facility allocated as follows: (A) a $50.0 million senior secured revolving credit facility in favor of Civeo, as borrower, (B) a $100.0 million senior secured revolving credit facility in favor of certain of our Canadian subsidiaries, as borrowers, (C) a $125.0 million senior secured revolving credit facility in favor of certain of our Canadian subsidiaries, as borrowers, and (D) a $100.0 million senior secured revolving credit facility in favor of one of our Australian subsidiaries, as borrower, and (ii) a $375.0 million, 5-year term loan facility in favor of Civeo (collectively, the Amended Credit Facility).

On February 18, 2016, the second amendment to the Amended Credit Facility became effective, which provided for the following:

●

Civeo Management LLC, an indirect wholly owned subsidiary of the Company, became a co-borrower under the US$50.0 million U.S. revolving credit facility under the Amended Credit Facility;

●

The partial prepayment of the U.S. term loan under the Amended Credit Facility in the aggregate principal amount of US$25.0 million and the reduction by US$25.0 million of the aggregate revolving loan commitments under the Canadian revolving credit facility under the Amended Credit Facility to a maximum principal amount of US$100.0 million;

●

(i) Increased the interest rate margin by 0.25% when the leverage ratio is less than 1.50x (by removing the lowest level in the leverage-based interest rate margin grid), (ii) established two additional levels to the total leverage-based grid such that the interest rates for the loans range from LIBOR +2.25% to LIBOR +5.00% and (iii) increased the undrawn commitment fee from a range of 0.45% to 0.90% to a range of 0.51% to 1.13% based on total leverage;

●

Adjusted the maximum leverage ratio financial covenant, as follows:

Period Ended	Maximum Leverage Ratio

December 31, 2015	4.00	:	1.00
March 31, 2016	4.25	:	1.00
June 30, 2016	5.25	:	1.00
September 30, 2016	5.50	:	1.00
December 31, 2016	5.50	:	1.00
March 31, 2017	5.25	:	1.00
June 30, 2017	5.25	:	1.00
September 30, 2017	5.00	:	1.00
December 31, 2017	5.00	:	1.00
March 31, 2018	4.75	:	1.00
June 30, 2018	3.75	:	1.00
September 30, 2018 & thereafter	3.50	:	1.00

●

Included a provision for a mandatory prepayment of the revolving credit facilities under the Amended Credit Facility in the event the Company and its subsidiaries hold an aggregate amount of cash exceeding US$40.0 million for a period of more than three consecutive business days, such mandatory prepayment to be made within two business days in an amount equal to the lesser of (a) an amount sufficient to reduce the aggregate amount of cash and permitted investments on hand at the Company and its subsidiaries to less than US$40.0 million or (b) an amount sufficient to repay all of the outstanding commitments under the revolving credit facilities under the Amended Credit Facility; and

●

Other technical changes and amendments to the Amended Credit Facility.

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

As a result of the second amendment, we recognized a loss during the first quarter of 2016 of approximately $0.3 million related to unamortized debt issuance costs, which is included in “Loss on extinguishment of debt” on the accompanying unaudited consolidated statements of operations.

U.S. dollar amounts outstanding under the Amended Credit Facility bear interest at a variable rate equal to LIBOR plus a margin of 2.25% to 5.00%, or a base rate plus 1.25% to 4.00%, in each case based on a ratio of our total leverage to EBITDA (as defined in the Amended Credit Facility). Canadian dollar amounts outstanding under the Amended Credit Facility bear interest at a variable rate equal to CDOR plus a margin of 2.25% to 5.00%, or a base rate plus a margin of 1.25% to 4.00%, in each case based on a ratio of our consolidated total leverage to EBITDA (as defined in the Amended Credit Facility). Australian dollar amounts outstanding under the Amended Credit Facility bear interest at a variable rate equal to BBSY plus a margin of 2.25% to 5.00%, based on a ratio of our consolidated total leverage to EBITDA (as defined in the Amended Credit Facility).

The Amended Credit Facility contains customary affirmative and negative covenants that, among other things, limit or restrict (i) subsidiary indebtedness, liens and fundamental changes, (ii) asset sales, (iii) margin stock, (iv) specified acquisitions, (v) restrictive agreements, (vi) transactions with affiliates and (vii) investments and other restricted payments, including dividends and other distributions. Specifically, we must maintain an interest coverage ratio, defined as the ratio of consolidated EBITDA (as defined in the Amended Credit Facility) to consolidated interest expense, of at least 3.0 to 1.0 and our maximum leverage ratio, defined as the ratio of total debt to consolidated EBITDA, of no greater than 4.25 to 1.0 (as of March 31, 2016). As noted above, the permitted maximum leverage ratio changes over time. Each of the factors considered in the calculations of these ratios are defined in the Amended Credit Facility. EBITDA and consolidated interest, as defined, exclude goodwill and asset impairments, debt discount amortization and other non-cash charges. We were in compliance with these covenants as of March 31, 2016.

We have 15 lenders in our Amended Credit Facility with commitments ranging from $1.2 million to $135.7 million.

Note 8 - Income Taxes

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Text Block]

8.	INCOME TAXES

The Company’s operations are conducted through its various subsidiaries in a number of countries throughout the world. The Company has provided for income taxes based upon the tax laws and rates in the countries in which operations are conducted and income is earned. For the quarter ended March 31, 2016, Civeo Canada is the public parent registered under the laws of British Columbia, Canada. For the quarter ended March 31, 2015, Civeo US, a Delaware corporation, was the public parent registered in the U.S.

We operate primarily in three jurisdictions, Canada

, Australia and the U.S., where statutory tax rates range from 27% to 35%. Our effective tax rate will vary period to period based on changes in earnings mix between these different jurisdictions.

We compute our quarterly taxes under the effective tax rate method by applying an anticipated annual effective rate to our year-to-date income, except for significant unusual or extraordinary transactions. As Australia and the U.S. are now loss jurisdictions for tax accounting purposes, Australia and the U.S. have been removed from the annual effective tax rate computation for purposes of computing the interim tax provision. Income taxes for significant and unusual or extraordinary transactions are computed and recorded in the period that the specific transaction occurs.

Our income tax benefit for the three months ended March 31, 2016 totaled $4.6 million, or 14.6% of pretax income, compared to income tax expense of $1.2 million, or 83.4% of pretax income, for the three months ended March 31, 2015. The effective tax rates in 2016 and 2015 were impacted by discrete items totaling $0.9 million and $0.5 million, respectively.

Note 9 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Text Block]

9.	COMMITMENTS AND CONTINGENCIES

We are a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning our commercial operations, products, employees and other matters, including warranty and product liability claims as a result of our products or operations. Although we can give no assurance about the outcome of pending legal and administrative proceedings and the effect such outcomes may have on us, management believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by insurance, will not have a material adverse effect on our consolidated financial position, results of operations or liquidity.

Note 10 - Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2016

Comprehensive Income (Loss) Note [Text Block]

10.	ACCUMULATED OTHER COMPREHENSIVE LOSS

Our accumulated other comprehensive loss decreased $29.3 million from $366.3 million at December 31, 2015 to $337.0 million at March 31, 2016, as a result of foreign currency exchange rate differences. Changes in other comprehensive loss during the first quarter of 2016 were primarily driven by the Australian dollar and Canadian dollar increasing in value compared to the U.S. dollar. Excluding intercompany balances, our Canadian dollar and Australian dollar functional currency net assets totaled approximately C$0.2 billion and A$0.5 billion, respectively, at March 31, 2016.

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

Note 11 - Stock Based Compensation

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

11.	S HARE BASED COMPENSATION

Our employees and non-employee directors participate in the 2014 Equity Participation Plan of Civeo Corporation (the Civeo Plan). The Civeo Plan authorizes the Board of Directors to grant options, awards of restricted shares, performance awards, dividend equivalents, awards of deferred shares, and share payments to our employees and non-employee directors. As of March 31, 2016, no more than 4.0 million Civeo common shares may be awarded under the Civeo Plan.

Upon effectiveness of the Redomicile Transaction, Civeo Canada assumed the Civeo US employee equity plans and related award agreements, including all options and awards issued or granted under such plans, as well as certain Civeo US benefit plans and agreements.

Outstanding Awards

Options.

Compensation expense associated with options recognized in the three month periods ended March 31, 2016 and 2015 totaled $

0.1 million and $

0.1 million, respectively. At March 31, 2016, unrecognized compensation cost related to options was $

0.2 million, which is expected to be recognized over a weighted average period of 1.5 years.

Restricted S

hare

/ Deferred Share

Awards.

On February 23, 2016, we granted 231,934 restricted share and deferred share awards under the Civeo Plan, which vest in three equal annual installments beginning on February 23, 2017.

Compensation expense associated with restricted share awards and deferred share awards recognized in the three month periods ended March 31, 2016 and 2015 totaled $1.1 million and $1.1 million, respectively. The total fair value of restricted share awards and deferred share awards that vested during the three months ended March 31, 2016 and 2015 was $0.3 million and $0.6 million, respectively.

At March 31, 2016, unrecognized compensation cost related to restricted share awards and deferred share awards was $6.5 million, which is expected to be recognized over a weighted average period of 2.3 years.

Phantom Share

Awards

On February 23, 2016, we granted 2,917,130 phantom share awards under the Civeo Plan, which vest in three equal annual installments beginning on February 23, 2017. We also granted 3,099,194 phantom share awards under the Canadian Long-Term Incentive Plan, which vest in three equal annual installments beginning on February 23, 2017.

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

During the three month periods ended March 31, 2016 and 2015, we recognized compensation expense associated with phantom shares totaling $0.2 million and $0.3 million, respectively. At March 31, 2016, unrecognized compensation cost related to phantom shares was $9.4 million, as remeasured at March 31, 2016, which is expected to be recognized over a weighted average period of 2.8 years.

Performance Awards

On February 23, 2016, we granted 2,400,606 performance awards under the Civeo Plan, which cliff vest in three years on February 23, 2019. These awards will be earned in amounts between 0% and 200% of the participant’s target performance share award, based on the payout percentage associated with Civeo’s relative total shareholder return rank among a peer group of 12 other companies. Because shareholder approval is required to grant these awards as equity awards to be settled in shares, as of March 31, 2016, the awards have been accounted for as a liability that is remeasured at each reporting date.

During the three month periods ended March 31, 2016 and 2015, we recognized compensation expense associated with performance awards totaling $0.1 million and zero, respectively. At March 31, 2016, unrecognized compensation cost related to performance shares was $3.5 million, as remeasured at March 31, 2016, which is expected to be recognized over a weighted average period of 2.8 years.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Note 12 - Segment and Related Information

3 Months Ended

Mar. 31, 2016

Segment Reporting Disclosure [Text Block]

12.	SEGMENT AND RELATED INFORMATION

In accordance with current accounting standards regarding disclosures about segments of an enterprise and related information, we have identified the following reportable segments: Canada, Australia and U.S., which represent our strategic focus on workforce accommodations.

Financial information by business segment for each of the three months ended March 31, 2016 and 2015 is summarized in the following table (in thousands):

	Total Revenues			Less: Intersegment Revenues			Revenues from unaffiliated customers		Depreciation and amortization		Operating income (loss)			Capital expenditures			Total assets
Three months ended March 31, 201 6
Canada	$	65,522			--		$	65,522	$	20,339	$	(9,699	)	$	1,047		$	605,414
Australia		25,510			--			25,510		11,178		(1,622	)		607			432,314
U.S.		4,004			--			4,004		1,906		(13,599	)		--			58,633
Corporate and eliminations		--			--			--		132		(1,277	)		3,107			(13,082	)
Total	$	95,036		$	--		$	95,036	$	33,555	$	(26,197	)	$	4,761		$	1,083,279

Three months ended March 31, 201 5
Canada	$	116,900			--		$	116,900	$	24,758	$	12,120		$	6,453		$	900,174
Australia		41,859			--			41,859		13,913		6,727			3,267			620,378
U.S.		14,624			(2,396	)		12,228		3,679		(6,894	)		1,116			120,802
Corporate and eliminations		(2,396	)		2,396			--		96		(7,077	)		(134	)		53,445
Total	$	170,987		$	--		$	170,987	$	42,446	$	4,876		$	10,702		$	1,694,799

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Note 4 - Details of Selected Balance Sheet Accounts (Tables)

3 Months Ended

Mar. 31, 2016

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	March 31, 2016			December 31, 201 5
Accounts receivable, net:
Trade	$	40,758		$	44,650
Unbilled revenue		22,376			16,649
Other		1,163			1,289
Total accounts receivable		64,297			62,588
Allowance for doubtful accounts		(982	)		(1,121	)
Total accounts receivable, net	$	63,315		$	61,467

Schedule of Inventory, Current [Table Text Block]

	March 31, 2016		December 31, 201 5
Inventories:
Finished goods and purchased products	$	2,009	$	1,854
Work in process		593		1,260
Raw materials		2,561		2,517
Total inventories	$	5,163	$	5,631

Property, Plant and Equipment [Table Text Block]

	Estimated Useful Life (in years)			March 31, 2016			December 31, 201 5
Property, plant and equipment, net:
Land				$	49,967		$	47,825
Accommodations assets	3	-	15		1,578,680			1,482,842
Buildings and leasehold improvements	3	-	20		28,355			29,099
Machinery and equipment	4	-	15		9,786			9,183
Office furniture and equipment	3	-	7		30,745			29,172
Vehicles	3	-	5		15,542			15,412
Construction in progress					30,576			52,558
Total property, plant and equipment					1,743,651			1,666,091
Accumulated depreciation					(797,595	)		(734,177	)
Total property, plant and equipment, net				$	946,056		$	931,914

Schedule of Accrued Liabilities [Table Text Block]

	March 31, 2016		December 31, 201 5
Accrued liabilities:
Accrued compensation	$	8,674	$	11,726
Accrued taxes, other than income taxes		1,713		963
Accrued interest		201		12
Other		1,980		2,133
Total accrued liabilities	$	12,568	$	14,834

Note 6 - Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2016

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	THREE MONTHS ENDED MARCH 31,
	2016			201 5
Basic Loss per Share
Net loss attributable to Civeo	$	(26,822	)	$	(16	)
Less: undistributed net income to participating securities		--			--
Net loss attributable to Civeo’s common shareholders - basic	$	(26,822	)	$	(16	)

Weighted average common shares outstanding - basic		106,814			106,460

Basic loss per share	$	(0.25	)	$	(0.00	)

Diluted Loss per Share
Net loss attributable to Civeo’s common shareholders - basic	$	(26,822	)	$	(16	)
Less: undistributed net income to participating securities		--			--
Net loss attributable to Civeo’s common shareholders - diluted	$	(26,822	)	$	(16	)


Weighted average common shares outstanding - basic		106,814			106,460
Effect of dilutive securities		--			--
Weighted average common shares outstanding - diluted		106,814			106,460

Diluted loss per share	$	(0.25	)	$	(0.00	)

Note 7 - Debt (Tables)

3 Months Ended

Mar. 31, 2016

Schedule of Long-term Debt Instruments [Table Text Block]

	March 31, 2016		December 31, 2015
U.S. term loan, which matures on May 28, 2019; principal repayable on May 28, 2019; weighted average interest rate of 3.2% for the three month period ended March 31, 2016	$	24,375	$	49,375
Canadian term loan, which matures on May 28, 2019; 1.25% of aggregate principal repayable per quarter beginning December 31, 2015; weighted average interest rate of 3.4% for the three month period ended March 31, 2016		316,260		300,165
U.S. revolving credit facility, which matures on May 28, 2019, with available commitments up to $50.0 million; weighted average interest rate of 5.0% for the three month period ended March 31, 2016		800		--
Canadian revolving credit facility, which matures on May 28, 2019, with available commitments up to $100.0 million; weighted average interest rate of 3.6% for the three month period ended March 31, 2016		41,634		52,020
Canadian revolving credit facility, which matures on May 28, 2019, with available commitments up to $100.0 million; no borrowings outstanding as of March 31, 2016		--		--
Australian revolving credit facility, which matures on May 28, 2019, with available commitments up to $100.0 million; weighted average interest rate of 4.9% for the three month period ended March 31, 2016		32,239		--
		415,308		401,560
Less: Unamortized debt issuance costs		5,346		4,683
Total debt		409,962		396,877
Less: Current portion of long-term debt, including unamortized debt issuance costs, net		15,964		17,461
Long-term debt, less current maturities	$	393,998	$	379,416

Schedule Of Changes In Maximum Leverage Ratio [Table Text Block]

Period Ended	Maximum Leverage Ratio

December 31, 2015	4.00	:	1.00
March 31, 2016	4.25	:	1.00
June 30, 2016	5.25	:	1.00
September 30, 2016	5.50	:	1.00
December 31, 2016	5.50	:	1.00
March 31, 2017	5.25	:	1.00
June 30, 2017	5.25	:	1.00
September 30, 2017	5.00	:	1.00
December 31, 2017	5.00	:	1.00
March 31, 2018	4.75	:	1.00
June 30, 2018	3.75	:	1.00
September 30, 2018 & thereafter	3.50	:	1.00

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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Note 12 - Segment and Related Information (Tables)

3 Months Ended

Mar. 31, 2016