Frank's Casing Crew and Rental Tools, Inc. - Page 3

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          principal office in Lafayette Parish, Louisiana, when it                    
          petitioned the Court.                                                       
               Petitioner is an "oil field contractor" that sells oil                 
          pipes, leases equipment used in oil fields, and provides crews              
          necessary to operate the leased equipment.  Petitioner's                    
          customers are mainly large oil companies, and many of these                 
          customers transport the leased equipment from petitioner's                  
          location to the job site.  In some cases, petitioner transports             
          the leased equipment itself, or it rents equipment from third               
          parties in order to transport the leased equipment to the job               
          site.  Petitioner incurs expenses transporting the leased                   
          equipment to the sites.                                                     
               Petitioner enters into written contracts with its customers.           
          These contracts are usually provided by the customers, and the              
          terms of each contract vary from customer to customer.  A term              
          that tends to be uniform throughout the contracts is that a                 
          customer's payment is due when petitioner sends the customer an             
          invoice that includes all supporting documentation (e.g., job               
          tickets, equipment tickets, and third party charges).  On a                 
          number of occasions during the relevant years, petitioner did not           
          invoice a customer until after the year of completion of its                
          performance of the contract because it had not yet received a               
          third party's invoice.  In those cases, petitioner postponed                
          accrual of the related income until the year of invoice.  In the            
          case of pipe sales that occurred before yearend, but were not               

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Last modified: May 25, 2011