Recent Accounting Pronouncements ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Market Risk Interest Rate Risk Foreign Currency Risk Credit Risk ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 29 None. For the financial statements and supplementary data required by this Item 8, see Part IV “Item 15. Exhibits, Financial Statement  Schedules.” Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and  accounts receivable. Substantially all cash and cash equivalents are on deposit at commercial banks or investment firms. Our trade  receivables are with a variety of domestic, international and national oil and gas companies. Management considers this credit risk to be limited due to the creditworthiness and financial resources of these financial institutions and companies. We operate in a number of international areas which exposes us to foreign currency exchange rate risk. We do not currently hold or  issue forward exchange contracts or other derivative instruments for hedging or speculative purposes (a foreign exchange contract  is an agreement to exchange different currencies at a given date and at a specified rate). Foreign exchange gains and losses are the  result of fluctuations in the U.S. dollar (“USD”) against foreign currencies and are included in other (income) expense in the statements  of operations. We recognized foreign exchange losses in countries where the USD weakened against the local currency and we had net  monetary liabilities denominated in the local currency, as well as in countries where the USD strengthened against the local currency  and we had net monetary assets denominated in the local currency. We recognized foreign exchange gains in countries where the USD  strengthened against the local currency and we had net monetary liabilities denominated in the local currency, as well as in countries  where the USD weakened against the local currency and we had net monetary assets denominated in the local currency. We maintain certain debt instruments at a fixed rate whose fair value will fluctuate based on changes in interest rates and market  perception of our credit risk. The fair value of our debt at December 31, 2013 and 2012 approximated the book value. From time to time, we are exposed to interest rate risk on our Credit Facility debt, which carries a variable interest rate. At  December 31, 2013, we had an outstanding balance of $117.0 million. We are exposed to market risk, which is the potential loss arising from adverse changes in market prices and rates. We do not intend  to enter into derivative financial instruments for hedging or speculative purposes. We do not believe that our exposure to market risks,  which are primarily related to interest rate changes, is material. In February 2013, the FASB issued ASU 2013-02 relating to comprehensive income (FASB ASC Topic 220), which requires an entity  to provide information about the amounts reclassified out of accumulated other comprehensive income by component (the respec- tive line items of net income). This pronouncement is effective for fiscal years, and interim periods within those years, beginning after  December 15, 2012. We adopted this pronouncement for our fiscal year beginning January 1, 2013. The adoption of this pronounce- ment did not have a material effect on our consolidated financial statements. In July 2013, the FASB issued ASU 2013-11 relating to income taxes (FASB ASC Topic 740), which provides guidance on the presen- tation of unrecognized tax benefits. The intent is to better reflect the manner in which an entity would settle at the reporting date any  additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax  losses, or tax credit carryforwards exist. This pronouncement is effective for fiscal years, and interim periods within those years, begin- ning after December 15, 2013. We will adopt this pronouncement for our fiscal year beginning January 1, 2014. The adoption of this  pronouncement will not have a material effect on our consolidated financial statements.