Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 21, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | DRIL-QUIP, INC. | ||
Entity Central Index Key | 0001042893 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 1,178,900,000 | ||
Entity Common Stock, Shares Outstanding | 34,792,487 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common Stock, $.01 par value per share | ||
Trading Symbol | DRQ | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-13439 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 74-2162088 | ||
Entity Address, Address Line One | 6401 N. Eldridge Parkway | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Country | US | ||
Entity Address, Postal Zip Code | 77041 | ||
City Area Code | 713 | ||
Local Phone Number | 939-7711 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement for its 2021 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A are incorporated by reference in Part III of this Form 10-K | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Houston, Texas | ||
Auditor Firm ID | 238 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Revenues from products and services | $ 287,903 | $ 334,411 | |
Total revenues | 322,945 | 364,973 | $ 414,806 |
Cost of sales: | |||
Total cost of sales | 242,356 | 269,698 | 295,007 |
Selling, general and administrative | 115,036 | 95,057 | 98,412 |
Engineering and product development | 15,104 | 18,920 | 17,329 |
Impairments | 0 | 7,719 | 0 |
Restructuring and other charges | 78,933 | 35,380 | 4,396 |
Gain on sale of assets | (4,482) | (587) | (1,511) |
Foreign currency transaction (gains) and losses | 836 | 2,345 | (1,630) |
Total costs and expenses | 447,783 | 428,532 | 412,003 |
Operating income (loss) | (124,838) | (63,559) | 2,803 |
Interest income | 575 | 2,131 | 7,940 |
Interest expense | (787) | (621) | (314) |
Income (loss) before taxes | (125,050) | (62,049) | 10,429 |
Income tax provision (benefit) | 2,946 | (31,281) | 8,709 |
Net income (loss) | $ (127,996) | $ (30,768) | $ 1,720 |
Income (loss) per common share: | |||
Basic (in dollars per share) | $ (3.62) | $ (0.87) | $ 0.05 |
Diluted (in dollars per share) | $ (3.62) | $ (0.87) | $ 0.05 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 35,331 | 35,260 | 35,839 |
Diluted (in shares) | 35,331 | 35,260 | 36,152 |
Products | |||
Revenues: | |||
Revenues from products and services | $ 213,760 | $ 258,834 | $ 303,279 |
Cost of sales: | |||
Total cost of sales | 178,494 | 200,758 | 223,502 |
Services | |||
Revenues: | |||
Revenues from products and services | 74,143 | 75,577 | 72,018 |
Cost of sales: | |||
Total cost of sales | 33,173 | 37,449 | 36,550 |
Leasing | |||
Revenues: | |||
Leasing | 35,042 | 30,562 | 39,509 |
Cost of sales: | |||
Total cost of sales | $ 30,689 | $ 31,491 | $ 34,955 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (127,996) | $ (30,768) | $ 1,720 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (6,874) | (6,148) | 1,550 |
Total comprehensive income (loss) | $ (134,870) | $ (36,916) | $ 3,270 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 355,451 | $ 345,955 |
Trade receivables, net | 100,987 | 116,202 |
Unbilled receivables | 102,597 | 140,318 |
Inventories, net | 145,724 | 212,536 |
Prepaids and other current assets | 40,790 | 48,182 |
Total current assets | 745,549 | 863,193 |
Operating lease right of use assets | 5,258 | 6,962 |
Property, plant and equipment, net | 216,200 | 234,823 |
Deferred income taxes | 11,381 | 5,768 |
Intangible assets | 26,446 | 29,434 |
Other assets | 5,592 | 10,992 |
Total assets | 1,010,426 | 1,151,172 |
Current liabilities: | ||
Accounts payable | 35,232 | 37,424 |
Accrued income taxes | 4,102 | 4,343 |
Contract liabilities | 9,746 | 11,339 |
Accrued compensation | 6,291 | 5,015 |
Operating lease liabilities | 1,046 | 1,110 |
Other accrued liabilities | 37,246 | 26,281 |
Total current liabilities | 93,663 | 85,512 |
Deferred income taxes | 3,925 | 6,779 |
Income tax payable | 9,627 | 9,383 |
Operating lease liabilities, long-term | 4,170 | 5,845 |
Other long-term liabilities | 1,933 | 2,125 |
Total liabilities | 113,318 | 109,644 |
Contingencies (Note 15) | ||
Stockholders' equity: | ||
Preferred stock: 10,000,000 shares authorized at $0.01 par value (none issued) | 0 | 0 |
Common stock: | ||
100,000,000 shares authorized at $0.01 par value, 34,774,156 and 35,417,712 shares issued and outstanding at December 31, 2021 and December 31, 2020 | 352 | 363 |
Additional paid-in capital | 80,254 | 65,613 |
Retained earnings | 973,087 | 1,125,263 |
Accumulated other comprehensive losses | (156,585) | (149,711) |
Total stockholders' equity | 897,108 | 1,041,528 |
Total liabilities and stockholders' equity | $ 1,010,426 | $ 1,151,172 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 34,774,156 | 35,417,712 |
Common stock, shares outstanding (in shares) | 34,774,156 | 35,417,712 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | |||
Net income (loss) | $ (127,996) | $ (30,768) | $ 1,720 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 30,381 | 32,389 | 34,020 |
Release of contingent consideration | 0 | 0 | (2,001) |
Stock-based compensation expense | 14,895 | 12,914 | 15,721 |
Impairments | 0 | 7,719 | 0 |
Restructuring and other charges | 75,214 | 35,380 | 174 |
Gain on sale of property, plant and equipment | (4,482) | (587) | (1,511) |
Deferred income taxes | 8,701 | 4,950 | 598 |
Changes in operating assets and liabilities: | |||
Trade receivables, net | 13,469 | (9,522) | 10,783 |
Unbilled receivables | 37,721 | 216 | (57,032) |
Inventories, net | (5,482) | (28,290) | (14,054) |
Prepaids and other assets | 10,650 | (24,930) | 10,980 |
Accounts payable and accrued expenses | 3,015 | (20,387) | 15,343 |
Other, net | (256) | (172) | (63) |
Net cash provided by (used in) operating activities | 38,428 | (21,088) | 14,678 |
Investing activities | |||
Purchase of property, plant and equipment | (9,990) | (11,943) | (11,501) |
Proceeds from sale of equipment | 6,783 | 6,315 | 3,030 |
Net cash used in investing activities | (3,207) | (5,628) | (8,471) |
Financing activities | |||
Proceeds from exercise of stock options | 0 | 0 | 2,181 |
Repurchase of common shares | (24,191) | (25,000) | (26,570) |
Other | (109) | (183) | (183) |
Net cash used in financing activities | (24,300) | (25,183) | (24,572) |
Effect of exchange rate changes on cash activities | (1,425) | (1,092) | (789) |
Increase (decrease) in cash and cash equivalents | 9,496 | (52,991) | (19,153) |
Cash and cash equivalents at beginning of year | 345,955 | 398,946 | 418,100 |
Cash and cash equivalents at end of year | $ 355,451 | $ 345,955 | $ 398,946 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Losses |
Beginning Balance at Dec. 31, 2018 | $ 1,096,162 | $ 376 | $ 34,953 | $ 1,205,946 | $ (145,113) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | 1,550 | 1,550 | |||
Net income (loss) | 1,720 | 1,720 | |||
Comprehensive income (loss) | 3,270 | ||||
Repurchase of common stock | (26,570) | (6) | (26,564) | ||
Options exercised and awards vested | 2,181 | 2,181 | |||
Stock option expense | 15,721 | 15,721 | |||
Other | (63) | 1 | 15 | (79) | |
Ending Balance at Dec. 31, 2019 | 1,090,701 | 371 | 52,870 | 1,181,023 | (143,563) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (6,148) | (6,148) | |||
Net income (loss) | (30,768) | (30,768) | |||
Comprehensive income (loss) | (36,916) | ||||
Repurchase of common stock | (25,000) | (8) | (24,992) | ||
Shares withheld for payment of employee payroll taxes | (171) | (171) | |||
Stock option expense | 12,914 | 12,914 | |||
Ending Balance at Dec. 31, 2020 | 1,041,528 | 363 | 65,613 | 1,125,263 | (149,711) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (6,874) | (6,874) | |||
Net income (loss) | (127,996) | (127,996) | |||
Comprehensive income (loss) | (134,870) | ||||
Repurchase of common stock | (24,191) | (11) | (24,180) | ||
Shares withheld for payment of employee payroll taxes | (254) | (254) | |||
Stock option expense | 14,895 | 14,895 | |||
Ending Balance at Dec. 31, 2021 | $ 897,108 | $ 352 | $ 80,254 | $ 973,087 | $ (156,585) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Options exercised and awards vested (in shares) | 478,246 | ||
Treasury stock shares (in shares) | 1,063,962 | 808,389 | 615,940 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Dril-Quip, Inc., a Delaware corporation (the “Company” or “Dril-Quip”), designs, manufactures, sells and services highly engineered drilling and production equipment that is well suited primarily for use in deepwater, harsh environment and severe service applications. The Company’s principal products consist of subsea and surface wellheads, subsea and surface production trees, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors, diverters and safety valves. Dril-Quip’s products are used by major integrated, large independent and foreign national oil and gas companies and drilling contractors throughout the world. Dril-Quip also provides technical advisory assistance on an as-requested basis during installation of its products, as well as rework and reconditioning services for customer-owned Dril-Quip products. In addition, Dril-Quip’s customers may rent or purchase running tools from the Company for use in the installation and retrieval of the Company’s products. The Company’s operations are organized into three geographic segments — Western Hemisphere (including North and South America; headquartered in Houston, Texas), Eastern Hemisphere (including Europe and Africa; headquartered in Aberdeen, Scotland) and Asia-Pacific (including the Pacific Rim, Southeast Asia, Australia, India and the Middle East; headquartered in Singapore). Each of these segments sells similar products and services, and the Company has manufacturing facilities in all three of its regional headquarter locations, as well as in Macae, Brazil. The Company’s major subsidiaries are Dril-Quip (Europe) Limited, located in Aberdeen with branches in Azerbaijan, Denmark, Norway and Holland; Dril-Quip Asia-Pacific PTE Ltd., located in Singapore; and Dril-Quip do Brasil LTDA, located in Macae, Brazil. Other operating subsidiaries include TIW Corporation (TIW) and Honing, Inc., both located in Houston, Texas; DQ Holdings Pty. Ltd., located in Perth, Australia; Dril-Quip Cross (Ghana) Ltd., located in Takoradi, Ghana; PT DQ Oilfield Services Indonesia, located in Jakarta, Indonesia; Dril-Quip Egypt for Petroleum Services S.A.E., located in Alexandria, Egypt; Dril-Quip TIW Saudi Arabia Limited, located in Dammam, Kingdom of Saudi Arabia; Dril-Quip Oilfield Services (Tianjin) Co. Ltd., located in Tianjin, China, with branches in Shenzhen and Beijing, China; Dril-Quip Qatar LLC, located in Doha, Qatar; Dril-Quip TIW Mexico S. de R.L.C.V., located in Villahermosa, Mexico; Dril-Quip Venezuela S.C.A., located in Anaco, Venezuela and with a registered branch located in Ecuador; TIW (UK) Limited, located in Aberdeen, Scotland; and TIW International LLC, with a registered branch located in Singapore. For a listing of all of Dril-Quip's subsidiaries, please see Exhibit 21.1 to this report. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation on the Consolidated Statements of Income (Loss), Consolidated Balance Sheets and the Consolidated Statements of Cash Flows . Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The worldwide spread of COVID-19 has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect COVID-19 as a global pandemic may have, and, as a result, the ultimate impact of COVID-19 and the extent to which COVID-19 continues to impact the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition and slow moving and excess inventories. Cash and Cash Equivalents Short-term investments that have a maturity of three months or less from the date of purchase are classified as cash equivalents. The Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in U.S. Treasury obligations and repurchase agreements backed by U.S. Treasury obligations. The Company’s investment objectives continue to be the preservation of capital and the maintenance of liquidity. Trade Receivables The Company maintains an allowance for doubtful accounts on trade receivables equal to amounts estimated to be uncollectible. This estimate is based upon historical collection experience combined with a specific review of each customer’s outstanding trade receivable balance. The allowance estimate includes expected recoveries of amounts previously written off and expected to be written off in the valuation account. Management believes that the allowance for doubtful accounts is adequate; however, actual write-offs may exceed the recorded allowance. Inventories Inventory costs are determined principally by the use of the first-in, first-out (FIFO) costing method and are stated at the lower of cost or net realizable value. Company manufactured inventory is valued principally using standard costs, which are calculated based upon direct costs incurred and overhead allocations and approximate actual costs. Inventory purchased from third-party vendors is principally valued at the weighted average cost. Inventory Reserves Periodically, obsolescence reviews are performed on slow moving and excess inventories and reserves are established based on current assessments about future demands and market conditions. The Company determines the reserve percentages based on an analysis of stocking levels, historical sales levels and future sales forecasts anticipated for inventory items by product type. The inventory values have been reduced by a reserve for slow moving and excess inventories of $ 129.0 million and $ 82.1 million as of December 31, 2021 and 2020 , respectively. If market conditions are less favorable than those projected by management, additional inventory reserves may be required. Property, Plant and Equipment Property, plant and equipment are carried at cost, with depreciation provided on a straight-line basis over their estimated useful lives. We capitalize costs incurred to enhance, improve and extend the useful lives of our property and equipment and expense costs incurred to repair and maintain the existing condition of our assets. Goodwill and intangible assets For goodwill and intangible assets, an assessment for impairment is performed annually or when there is an indication an impairment may have occurred. Goodwill is not amortized but rather tested for impairment annually on October 1 or when events occur or circumstances change that would trigger such a review. The impairment test entails an assessment of qualitative factors to determine whether it is more likely than not that an impairment exists. If it is more likely than not that an impairment exists, then a quantitative impairment test is performed. Impairment exists when the carrying amount of a reporting unit exceeds its fair value. In March 2020, the overall offshore market conditions declined primarily due to the outbreak of the COVID-19 pandemic and the developments in the global oil markets. This decline was evidenced by lower commodity prices, decline in expected offshore rig counts, decrease in our customers’ capital budgets and potential contract delays. As a result, an interim goodwill impairment analysis was performed in connection with the preparation and review of financial statements during the first quarter of 2020. Based on this analysis, we fully impaired our goodwill balance of $ 7.7 million, all of which was in the Eastern Hemisphere reporting unit. Impairment of Long-Lived Assets Long-lived assets, including property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to be generated by the asset, an impairment charge is recognized by reflecting the asset at its fair value. We review the recoverability of the carrying value of our assets based upon estimated future cash flows while taking into consideration assumptions and estimates, including the future use of the asset, remaining useful life of the asset and service potential of the asset. In the fourth quarter of 2021, we wrote-down long-lived assets of approximately $ 4.2 million related to our R&D facility in Singapore. Restructuring and other charges R estructuring and other charges consist of costs associated with our global strategic plan that was initiated in 2018 to better align our operations with market conditions. During 2021, the Company incurred additional costs under the 2018 global strategic plan as we exited from certain underperforming countries and markets and shifted from manufacturing in-house to a vendor outsourcing model which resulted in inventory write-downs of approximately $19.3 million, severance charges of $2.7 million and other charges of $4.0 million, consisting of facilities-related market exit costs and consulting fees. This concluded our 2018 global strategic plan as of the third quarter of 2021. In the fourth quarter of 2021, in an effort to realign our subsea product business with the market conditions, we initiated a 2021 global strategic plan. As part of the 2021 global strategic plan we discontinued certain product categories which resulted in inventory write-downs, long-lived asset write-downs and severance charges of approximately $47.7 million, $4.2 million, and $1.0 million, respectively, during the fourth quarter of 2021. During 2020, the overall offshore market conditions declined as a result of the COVID-19 pandemic and developments in global oil markets and decreases in our customers’ capital budgets. As such, we incurred additional costs under our existing 2018 global strategic plan to realign our manufacturing facilities globally. We incurred restructuring and other charges of $ 35.4 million related to non-cash inventory write-downs, severance, long-lived asset write-downs and other charges of approximately $ 17.3 million, $ 8.4 million, $ 8.3 million, and $ 1.4 million, respectively, for the year ended December 31, 2020. Other charges consisted primarily of professional fees related to the global strategic plan. During 2019, we incurred approximately $ 4.4 million of expenses primarily associated with professional fees related to our strategic restructuring and approximately $ 1.1 million in severance payout to our former Chief Operating Officer, pursuant to a separation agreement entered into with him during the first quarter of 2019. Income Taxes The Company accounts for income taxes using the asset and liability method. Current income taxes are provided on income reported for financial statement purposes, adjusted for transactions that do not enter into the computation of income taxes payable in the same year. Deferred tax assets and liabilities are measured using enacted tax rates for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred income tax assets to the amounts that are expected more likely than not to be realized in the future. The Company classifies interest and penalties related to uncertain tax positions as income taxes in its financial statements. Revenue Recognition Product revenues The Company recognizes product revenues from two methods: • product revenues are recognized over time as control is transferred to the customer; and • product revenues from the sale of products that do not qualify for the over time method are recognized as point in time. Revenues recognized under the over time method The Company uses the over time method on long-term project contracts that have the following characteristics: • the contracts call for products which are designed to customer specifications; • the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration; • the contracts contain specific terms as to milestones, progress billings and delivery dates; • product requirements cannot be filled directly from the Company’s standard inventory; and • The Company has an enforceable right to payment for any work completed to date and the enforceable payment includes a reasonable profit margin. For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percentage complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs to be recognized. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. Under the over time method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported in unbilled receivables. Unbilled revenues are expected to be billed and collected within one year. At December 31, 2021 and 2020, unbilled receivables included $ 58.7 million and $ 96.5 million of unbilled receivables related to products accounted for using over time method of accounting, respectively. For the year ended December 31, 2021, there were 54 projects representing approximately 21.7 % of the Company’s total revenues and approximately 32.7 % of its product revenues, and 57 projects during 2020 representing approximately 33.2 % of the Company’s total revenues and approximately 46.9 % of its product revenues, which were accounted for using over time method of accounting. Revenues recognized under the point in time method Revenues from the sale of standard inventory products, not accounted for under the over time method, are recorded at the point in time that the customer obtains control of the promised asset and the Company satisfies its performance obligation. This point in time recognition aligns with when the product is available to the customer, which is when the Company typically has a present right to payment, title transfers to the customer, the customer or its carrier has physical possession and the customer has significant risks and rewards of ownership. The Company may provide product storage to some customers. Revenues for these products are recognized at the point in time that control of the product transfers to the customer, the reason for storage is requested by the customer, the product is separately identified, the product is ready for physical transfer to the customer and the Company does not have the ability to use or direct the use of the product. This point in time typically occurs when the products are moved to storage. We receive payment after control of the products has transferred to the customer. Service revenues The Company recognizes service revenues from two sources: • technical advisory assistance; and • rework and reconditioning of customer-owned Dril-Quip products. The Company generally does not install products for its customers, but it does provide technical advisory assistance. The Company normally negotiates contracts for products, including those accounted for under the over time method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may use a third party or their own personnel. The contracts for these services are typically considered day-to-day. Rework and reconditioning service revenues are recorded using the over time method based on the remaining steps that need to be completed as the refurbishment process is performed. The measurement of progress considers, among other things, the time necessary for completion of each step in the reconditioning plan, the materials to be purchased, labor and ordering procedures. We receive payment after the services have been performed by billing customers periodically (typically monthly). Leasing revenues The Company earns leasing revenues from the rental of running tools. Revenues from rental of running tools are recognized within leasing revenues on a day rate basis over the lease term, which is generally between one to three months. On April 30, 2021, as a result of lower activity stemming from the COVID-19 pandemic, AFGlobal Corporation provided a 90-day written notice of termination of the lease agreement between the Company and AFGlobal in relation to the Company’s forge facility and equipment at its Houston Eldridge campus. Based on the initial 5-year term of the lease agreement, the Company had straight-lined the total anticipated lease revenue for that initial term into equal monthly lease revenue. As a result of the lease termination, the Company has approximately $ 2.3 million in unbilled revenue that was expensed in second quarter of 2021. The Company has numerous other forging suppliers and does not expect any disruptions in forging supply as a result of the lease termination. Practical Expedients As permitted under Accounting Standards Update (ASU) 2016-02 “Leases (Topic 842),” we elected the package of practical expedients permitted under the transition guidance which, among other things, allows companies to carry forward their historical lease classification. Foreign Currency The financial statements of foreign subsidiaries are translated into U.S. dollars at period-end exchange rates except for revenues and expenses, which are translated at average monthly rates. Translation adjustments are reflected as a separate component of stockholders’ equity and have no effect on current earnings or cash flows. Foreign currency exchange transactions are recorded using the exchange rate at the date of the settlement. The Company had, net of income taxes, a transaction loss of $ 0.7 million in 2021, a transaction loss of $ 1.9 million in 2020 and a transaction gain of $ 1.3 million in 2019 . Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature. Concentration of Credit Risk Financial instruments which subject the Company to concentrations of credit risk primarily include trade receivables. The Company grants credit to its customers, which operate primarily in the oil and gas industry. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company maintains reserves for potential losses, and actual losses have historically been within management’s expectations. In addition, the Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in obligations of the U.S. Treasury and repurchase agreements backed by U.S. Treasury obligations. Changes in the financial markets and interest rates could affect the interest earned on short-term investments. Earnings Per Share Basic earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed considering the dilutive effect of stock options and awards using the treasury stock method. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | 3. New Accounting Standards In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12 “Income Taxes (Topic 740).” Topic 740 is effective for fiscal years and interim periods beginning after December 15, 2020. This update simplifies the accounting for income taxes by removing certain exceptions such as the exception to the incremental approach for intraperiod tax allocation, the exception to the requirement to recognize a deferred tax liability for equity method investments, the exception to the ability not to recognize a deferred tax liability for a foreign subsidiary and the exception to the general methodology for calculating income taxes in an interim period. The adoption of ASU 2019-12 did not have a material impact on our financial position, results of operations or cash flows. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 4. Revenue Recognition Revenues from contracts with customers (excludes leasing) consisted of the following: Twelve Months Ended December 31, 2021 Western Eastern Asia- Total (In thousands) Product Revenues $ 146,609 $ 34,912 $ 32,239 $ 213,760 Service Revenues 45,680 10,268 18,195 74,143 Total $ 192,289 $ 45,180 $ 50,434 $ 287,903 Twelve Months Ended December 31, 2020 Western Eastern Asia- Total (In thousands) Product Revenues $ 151,351 $ 56,038 $ 51,445 $ 258,834 Service Revenues 45,536 14,332 15,709 75,577 Total $ 196,887 $ 70,370 $ 67,154 $ 334,411 Contract Balances Balances related to contracts with customers consisted of the following: Contract Assets (amounts shown in thousands) Contract Assets at December 31, 2020 $ 135,973 Additions 97,721 Transfers to Accounts Receivable ( 135,978 ) Contract Assets at December 31, 2021 $ 97,716 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2020 $ 10,815 Additions 5,936 Revenue Recognized ( 7,529 ) Contract Liabilities at December 31, 2021 $ 9,222 Contract asset receivables were $ 97.7 million and $ 136.0 million for the years ended December 31, 2021 and 2020, respectively. Contract assets include unbilled accounts receivable associated with contracts accounted for under the over time accounting method which were approximately $ 58.7 million and $ 96.5 million at December 31, 2021 and 2020, respectively. Unbilled contract assets are transferred to the trade receivables, net, when the rights become unconditional. The contract liabilities primarily relate to advance payments from customers. Obligations for returns and refunds were considered immaterial as of December 31, 2021. Remaining Performance Obligations The aggregate amount of the transaction price allocated to remaining performance obligations from our over time product lines was $ 65.8 million as of December 31, 2021. The Company expects to recognize revenue on approximately 86.3 % of the remaining performance obligations over the next 12 months and the remaining 13.7 % thereafter . The Company applies the practical expedient available under the new revenue standard and does not disclose information about remaining performance obligations that have original expected durations of one year or less. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 5. Inventories, net Inventories consist of the following: December 31, 2021 2020 (In thousands) Raw materials and supplies $ 27,398 $ 32,833 Work in progress 28,361 44,924 Finished goods 218,946 216,928 274,705 294,685 Less: allowance for slow moving and excess inventory ( 128,981 ) ( 82,149 ) Total inventory $ 145,724 $ 212,536 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | . Property, Plant and Equipment, net Property, plant and equipment consists of: Estimated Useful December 31, Lives 2021 2020 (In thousands) Land improvements 10 - 25 years $ 7,374 $ 7,379 Buildings 15 - 40 years 206,037 206,732 Machinery, equipment and other 3 - 10 years 398,995 390,803 612,406 604,914 Less accumulated depreciation ( 419,834 ) ( 399,095 ) 192,572 205,819 Land 12,261 12,408 Construction work in process 11,367 16,596 Total property, plant and equipment $ 216,200 $ 234,823 Depreciation expense totaled $ 27.2 million , $ 28.7 million and $ 31.0 million for 2021, 2020 and 2019 , respectively. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | 7. Restructuring and Other Charges In the fourth quarter of 2021, in an effort to realign our subsea product business with the market conditions, we initiated a 2021 global strategic plan. As part of the 2021 global strategic plan we discontinued certain product categories which resulted in inventory write-downs, long-lived asset write-downs and severance charges of approximately $ 47.7 million, $ 4.2 million, and $ 1.0 million, respectively. During 2021, the Company incurred additional costs under the 2018 global strategic plan to realign manufacturing facilities globally. These charges were primarily related to the restructuring of our downhole tools business where we exited certain underperforming countries and markets and shifted from manufacturing in-house to a vendor sourcing model which resulted in inventory write-downs of approximately $ 19.3 million, severance charges of $ 2.7 million and other charges of $ 4.0 million, consisting of facilities-related market exit costs and consulting fees. This concluded our 2018 global strategic plan as of the third quarter of 2021. As a result of unfavorable market conditions primarily due to the COVID-19 pandemic and developments in global oil markets, which triggered historically low crude oil prices and decreases in our customers’ capital budgets, we incurred additional costs under our 2018 global strategic plan primarily focused on workforce reductions and the reorganization of certain facilities during the first quarter of 2020. These charges are reflected as "Restructuring and other charges" in our Consolidated Statements of Income (Loss). The following table summarizes the components of charges included in "Restructuring and other charges" in our Consolidated Statements of Income (Loss) for the year ended December 31, 2021, 2020 and 2019 (in thousands): Year Ended December 31, 2021 December 31, 2020 December 31, 2019 Inventory write-down $ 66,910 $ 17,272 $ - Severance 3,760 8,462 1,125 Long-lived asset write-down 4,240 8,269 - Other 4,023 1,377 3,271 $ 78,933 $ 35,380 $ 4,396 The following table summarizes the changes to our accrued liability balances related to restructuring and other charges as of December 30, 2021 (in thousands): December 31, 2021 Balance at January 1, 2021 $ 1,146 Additions for costs expensed 5,577 Reductions for payments ( 2,723 ) Ending balance at December 31, 2021 $ 4,000 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 8. Goodwill In March 2020, the overall offshore market conditions declined primarily due to the outbreak of the COVID-19 pandemic and the developments in the global oil markets. This decline was evidenced by lower commodity prices, decline in expected offshore rig counts, decrease in our customers’ capital budgets and potential contract delays. As a result, an interim goodwill impairment analysis was performed in connection with the preparation and review of financial statements during the first quarter of 2020. Based on this analysis, we fully impaired our goodwill balance of $ 7.7 million, all of which was in the Eastern Hemisphere reporting unit. These charges are reflected as "Impairments" in our Consolidated Statements of Income (Loss). |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 9. Intangible Assets Intangible assets, the majority of which were acquired in the acquisition of TIW and OPT, consist of the following: Estimated 2021 Gross Book Accumulated Foreign Currency Net Book Value (In thousands) Trademarks 15 years $ 8,257 $ ( 1,579 ) $ ( 23 ) $ 6,655 Patents 15 - 30 years 6,058 ( 3,285 ) ( 1 ) 2,772 Customer relationships 5 - 15 years 26,078 ( 9,128 ) ( 38 ) 16,912 Organizational Costs 3 years 185 ( 76 ) ( 2 ) 107 $ 40,578 $ ( 14,068 ) $ ( 64 ) $ 26,446 Estimated 2020 Gross Book Accumulated Foreign Currency Net Book Value (In thousands) Trademarks 15 years $ 8,238 $ ( 1,033 ) $ ( 5 ) $ 7,200 Patents 15 - 30 years 6,054 ( 2,715 ) ( 2 ) 3,337 Customer relationships 5 - 15 years 25,966 ( 7,304 ) 65 18,727 Organizational costs indefinite 179 ( 15 ) 6 170 $ 40,437 $ ( 11,067 ) $ 64 $ 29,434 Amortization expense was $ 3.0 million , $ 3.0 million, $ 2.9 million, respectively for each of the years 2021, 2020 and 2019. Based on the carrying value of intangible assets at December 31, 2021, amortization expense for the subsequent five years is estimated to be as follows: 2022 — $ 2.8 million ; 2023 — $ 2.8 million ; 2024 — $ 2.8 million ; 2025 — $ 2.8 million ; and 2026 — $ 2.8 million . |
Leases and Lease Commitments
Leases and Lease Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases and Lease Commitments | 10. Leases and Lease Commitments We lease facilities related to sales and service, manufacturing, reconditioning, certain office spaces, apartments and warehouse, all of which we classify as operating leases. In addition, we also lease certain office equipment and vehicles, which we classify as financing leases. Leases with an initial term of 12 months or less are not recorded on the Company’s Consolidated Balance Sheets; short-term lease expense for the twelve months ended December 31, 2021 was approximately $ 1.3 million . Most leases include one or more options to renew, with renewal terms that can extend the lease term on a monthly, annual or longer basis. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements is limited by the expected lease term unless there is a transfer of title or purchase option that is reasonably certain of being exercised. Certain lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. December 31, 2021 December 31, 2020 Classification (In thousands) (In thousands) Assets Operating Operating lease right of use assets $ 5,258 $ 6,962 Finance Other assets 164 228 Total lease assets $ 5,422 $ 7,190 Liabilities Current Operating Operating lease liabilities $ 1,046 $ 1,110 Finance Other accrued liabilities 127 141 Noncurrent Operating Operating lease liabilities, long-term 4,170 5,845 Finance Other long-term liabilities 52 93 Total lease liabilities $ 5,395 $ 7,189 As most of our leases do not provide an implicit rate, we use our incremental borrowing rate, which is based on our rate for the ABL Credit Facility (as defined herein). Our lease costs are as follows: Twelve Months Ended December 31, 2021 December 31, 2020 December 31, 2019 (In thousands) (In thousands) (In thousands) Classification Operating lease cost Selling, general and administrative $ 1,602 $ 1,617 $ 1,713 Short-term lease costs Selling, general and administrative 1,296 2,173 2,104 Amortization of leased assets Selling, general and administrative 114 186 361 Interest on lease liabilities Net interest expense 59 14 25 Total lease cost $ 3,071 $ 3,990 $ 4,203 The Company leases certain offices, shop and warehouse facilities, automobiles and equipment. Total lease expense incurred was $ 2.9 million , $ 3.8 million , and $ 3.8 million in 2021, 2020 and 2019, respectively. The five year and beyond maturity of our lease obligations is presented below: Twelve months ended December 31, 2021 Operating Finance Leases Leases Total (In thousands) 2022 $ 1,266 $ 135 $ 1,401 2023 758 33 791 2024 515 20 535 2025 493 - 493 2026 493 - 493 After 2026 3,362 - 3,362 Total lease payments 6,887 188 7,075 Less: interest 1,671 9 1,680 Present value of lease liabilities $ 5,216 $ 179 $ 5,395 The lease term and discount rate for our operating and finance leases is as follows: December 31, 2021 Weighted average remaining lease term (years) Operating leases 11.3 Finance leases 1.7 Weighted average discount rate Operating leases 5.1 % Finance leases 5.5 % We had no material non-cash financing or operating leases entered into during the twelve months ended December 31, 2021. Other information pertaining to our lease obligations is as follows: December 31, 2021 December 31, 2020 December 31, 2019 (In thousands) (In thousands) (In thousands) Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,591 $ 1,615 $ 1,737 Operating cash flows from finance leases 59 16 28 Financing cash flows from finance leases 109 183 183 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes Income (loss) before income taxes consisted of the following: Year Ended December 31, 2021 2020 2019 (In thousands) Domestic $ ( 135,403 ) $ ( 76,056 ) $ ( 51,041 ) Foreign 10,353 14,007 61,470 Total $ ( 125,050 ) $ ( 62,049 ) $ 10,429 The income tax provision (benefit) consists of the following: Year Ended December 31, 2021 2020 2019 (In thousands) Current: Federal $ 833 $ ( 44,752 ) $ ( 569 ) Foreign 10,579 8,454 8,513 Total current 11,412 ( 36,298 ) 7,944 Deferred: Federal ( 56 ) - - Foreign ( 8,410 ) 5,017 765 Total deferred ( 8,466 ) 5,017 765 Total $ 2,946 $ ( 31,281 ) $ 8,709 The Company’s effective income tax rate fluctuates from the U.S. statutory tax rate based on, among other factors, changes in pretax income in jurisdictions with varying statutory tax rates, impact of valuation allowances, changes in tax legislation, and other permanent differences related to the recognition of income and expense between U.S. GAAP and applicable tax rules. The difference between the effective income tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows: Year Ended December 31, 2021 2020 2019 Federal income tax statutory rate 21.00 % 21.00 % 21.00 % CARES Act NOL rate differential (2019 and 2020) - 32.60 - Accrual for undistributed earnings 0.79 ( 5.15 ) - Foreign income tax rate differential - ( 1.03 ) 16.20 Foreign development tax incentive ( 0.24 ) ( 0.38 ) ( 0.91 ) Nondeductible goodwill impairment - ( 2.42 ) - Exempt income 0.54 1.25 ( 24.02 ) Foreign taxes and inclusions (net of FTC) ( 1.15 ) ( 9.26 ) 21.00 Nondeductible expenses ( 2.82 ) ( 5.35 ) 15.51 Manufacturing benefit - ( 7.32 ) - Change in valuation allowance ( 21.87 ) 28.26 24.96 Changes to prior year accruals 0.23 ( 3.15 ) 6.28 Deferred tax rate change 0.11 ( 0.10 ) ( 0.36 ) Change in uncertain tax positions ( 0.19 ) ( 0.83 ) 4.31 Interest on net equity 0.41 - - General business credits 1.31 2.32 ( 11.14 ) Branch income ( 0.29 ) ( 0.31 ) 9.64 Other ( 0.19 ) 0.28 1.03 Effective tax rate - 2.36 % 50.41 % 83.50 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred tax assets (liabilities) are as follows: As of December 31, 2021 2020 (In thousands) Deferred tax assets: Foreign tax credit carryforward $ 9,190 $ 4,202 General business credit carryforward 3,853 2,347 Inventory 22,178 13,536 Net operating losses 21,348 1,250 Allowance for doubtful accounts 1,043 490 Reserve for accrued liabilities 3,161 4,029 Stock options 868 1,670 Unrealized gain/loss 1,217 1,554 Disallowed interest carryforward 2,071 1,912 Other 221 1,939 Total deferred tax assets 65,150 32,929 Valuation allowance ( 44,235 ) ( 17,049 ) Deferred tax liabilities: Property, plant and equipment ( 7,233 ) ( 6,048 ) Goodwill & Intangibles ( 1,796 ) ( 1,903 ) Deferred revenue ( 1,258 ) ( 3,415 ) Reserve for unremitted earnings ( 2,586 ) ( 3,608 ) Other ( 586 ) ( 1,917 ) Total deferred tax liability ( 13,459 ) ( 16,891 ) Net deferred tax asset $ 7,456 $ ( 1,011 ) The Company has $ 9.2 million of excess foreign tax credits of which $ 4.7 million will expire in years ending 2024-2031 and $ 4.5 million are carried forward indefinitely. The Company has $ 3.9 million of general business credits which expire in tax year ending 2037-2041. Tax operating loss carryforwards totaled $ 100.9 milli on (gross) at December 31, 2021. These operating losses will expire as shown in the table below. Tax operating losses Expiration (in thousands) $ 2,228 2022-2027 - 2028-2034 1,843 2035-2040 96,837 Indefinite $ 100,908 The United States gross loss carryforwards of approximately $ 95.8 million, includes $ 94.7 million of losses which are indefinite and the remaining are in relation to various foreign jurisdictions. In assessing the realizability of our deferred tax assets, the Company has assessed whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. In making this determination, the Company considered taxable income in prior years, if carryback is permitted, the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies. The Company has a three-year cumulative loss at December 31, 2021 in the United States and certain foreign jurisdictions and has recorded a valuation allowance at December 31, 2021 of $ 44.2 million against deferred tax assets in those jurisdictions. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted on March 27, 2020 and includes tax relief provisions and incentives for businesses impacted by COVID-19. The CARES Act includes provisions relating to net operating loss carryback periods. The Company has $ 14.8 million in outstanding NOL carryback claims as of December 31, 2021 including the estimated carryback claim relating to the 2020 tax year, which is reflected in Prepaids and other current assets on the consolidated balance sheet. The Company expects to receive carryback claims by the end of 2022. As the Company no longer asserts the indefinite reinvestment assertion, we maintain a deferred foreign tax liability, which had a balance of $ 2.6 million as of December 31, 2021. It is primarily related to estimated foreign withholding tax associated with repatriating all non-U.S. earnings back to the United States. U.S. Tax Reform subjects a U.S. shareholder to tax on Global Intangible Low-Taxed Income (GILTI). We have elected to account for GILTI in the year that the tax is incurred as a period expense. The Company operates in multiple jurisdictions with complex tax and regulatory environments and our tax returns are periodically audited or subjected to review by tax authorities. We monitor tax law changes and the potential impact to our results of operations. The Company evaluates uncertain tax positions for recognition and measurement in the consolidated financial statements. To recognize a tax position, the Company determines whether it is more likely than not that the tax positions will be sustained upon examination, including resolution of any related appeals or litigation, based on the technical merits of the position. A tax position that meets the more likely than not threshold is measured to determine the amount of benefit to be recognized in the consolidated financial statements. The amount of tax benefit recognized with respect to any tax position is measured as the lar gest amount of benefit that is greater than 50 percent likely of being realized upon settlement. The Company had an accrual for uncertain tax position of $ 18.6 million at December 31, 2021 due to uncertainty in tax positions taken in the U.S. and certain foreign tax jurisdictions. The tax years which remain subject to examination by major tax jurisdictions are the years ended December 31, 2016 through December 31, 2021. A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows: 2021 2020 2019 (In thousands) Balance at beginning of year $ 18,665 $ 18,665 $ 18,648 Additions for tax positions related to the current year 3 3 - Reductions for tax positions related to the prior year ( 50 ) ( 3 ) 17 Balance at end of year $ 18,618 $ 18,665 $ 18,665 The amounts above exclude accrued interest and penalties of $ 2.4 million , $ 2.1 million and $ 1.6 million at December 31, 2021, 2020 and 2019 respectively. The Company classifies interest and penalties relating to uncertain tax positions within Tax expense(benefit) in the Consolidated Statements of Income (Loss) . It is reasonably possible that the Company's existing liabilities for unrecognized tax benefits may increase or decrease in the year ending December 31, 2021, primarily due to the progression of any audits and the expiration of statutes of limitation. However, the Company cannot reasonably estimate a range of potential changes in its existing liabilities for unrecognized tax benefits due to various uncertainties, such as the unresolved nature of any possible audits. As of December 31, 2021, if recognized, $ 7.3 million of the Company's unrecognized tax benefits would favorably impact the effective tax rate. The Company paid net income taxes of $ 2.0 million in 2021 and received net income tax refunds of $ 18.2 million and $ 10.9 million in 2020 and 2019 , respectively. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities | 12. Other Accrued Liabilities Current other accrued liabilities consist of the following: December 31, 2021 2020 (In thousands) Accrued vendor costs $ 13,359 $ 10,610 Property, sales and other taxes 5,911 6,014 Commissions payable 1,450 1,065 Payroll taxes 3,621 4,760 Accrued restructuring costs 3,000 - Accrued severance 1,001 1,147 Accrued bonus 5,700 - Other 3,204 2,685 Total $ 37,246 $ 26,281 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 13. Employee Benefit Plans The Company sponsors a defined-contribution (cash balance) 401(k) plan covering domestic employees and a defined-contribution pension plan covering certain foreign employees. The Company generally makes contributions to the plans equal to each participant’s eligible contributions for the plan year up to a specified percentage of the participant’s annual compensation. Due to cost containment measures put in place in response to COVID-19, the Company suspended the employer match for U.S. employees starting July 1, 2020 with the expectation that the match will resume when market conditions recover. The Company’s contribution expense under these plans was $ 1.0 million , $ 2.5 million and $ 4.1 million in 2021, 2020 and 2019 , respectively. |
Asset Backed Loan (ABL) Credit
Asset Backed Loan (ABL) Credit Facility | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Asset Backed Loan (ABL) Credit Facility | 14. Asset Backed Loan (ABL) Credit Facility On February 23, 2018, the Company, as borrower, and the Company’s subsidiaries TIW and Honing, Inc., as guarantors, entered into a five -year senior secured revolving credit facility (the “ABL Credit Facility”) with JPMorgan Chase Bank, N.A., as administrative agent, and other financial institutions as lenders with total commitments of $ 100.0 million , including up to $ 10.0 million available for letters of credit. The maximum amount that the Company may borrow under the ABL Credit Facility is subject to the borrowing base, which is based on a percentage of eligible accounts receivable and eligible inventory, subject to reserves and other adjustments. The Company's ABL Credit Facility, dated February 23, 2018 , as amended was terminated effective February 22, 2022 and otherwise would have matured on February 23, 2023. We have approximately $ 0.2 million of unamortized debt issuance costs as of December 31, 2021 that will be written off upon early termination of the credit facility. In addition, we opened a new account with JP Morgan Chase Bank, N.A., to facilitate our existing and future letters of credit. We transferred approximately $ 7.1 million of letters of credit upon termination of our ABL Credit Facility to JP Morgan Chase, N.A. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Contingencies Brazilian Tax Issue From 2002 to 2007, the Company’s Brazilian subsidiary imported goods through, and paid taxes on such imports to, the State of Espirito Santo in Brazil. Upon the final sale of these goods, the Company’s Brazilian subsidiary collected taxes from customers and remitted them to the State of Rio de Janeiro net of the taxes paid on importation of those goods to the State of Espirito Santo in accordance with the Company’s understanding of Brazilian tax laws. In December 2010 and January 2011, the Company’s Brazilian subsidiary was served with two assessments totaling approximately $ 13.0 million from the State of Rio de Janeiro to cancel the credits associated with the tax payments to the State of Espirito Santo on the importation of goods from July 2005 to October 2007. The Company's Brazilian subsidiary objected to these assessments and filed appeals with a State of Rio de Janeiro judicial court to annul both of these tax assessments. In the first quarter of 2021, the relevant governmental agencies of the State of Rio de Janeiro authorized an amnesty program with interest discounts and reduced fines. The Company’s Brazilian subsidiary elected to participate in this amnesty program and recorded the settlement amount of approximately $ 2.1 million as of March 31, 2021. As a result of settling these tax assessments with the relevant governmental agencies pursuant to the amnesty program, the security amounts previously deposited with the court totaling approximately $ 6 million at current exchange rates were returned to our Brazilian subsidiary during the second and third quarter of 2021. FMC Technologies Lawsuit On October 5, 2020, FMC Technologies, Inc. (“FMC”) sued the Company alleging misappropriation of trade secrets and sought money damages and injunctive relief in the 127th District Court of Harris County in an action styled FMC Technologies, Inc. v. Richard Murphy and Dril-Quip, Inc., Cause No. 2020-63081. FMC alleged that its former employee communicated FMC trade secrets to the Company and the Company used those trade secrets in its VXTe subsea tree systems. On April 29, 2021, the jury returned a verdict in favor of the Company. FMC filed a notice of appeal on August 20, 2021. The Company intends to continue its vigorous defense of this matter on appeal. General The Company operates its business and markets its products and services in most of the significant oil and gas producing areas in the world and is, therefore, subject to the risks customarily attendant to international operations and is dependent on the condition of the oil and gas industry. Additionally, certain of the Company’s products are used in potentially hazardous drilling, completion, and production applications that can cause personal injury, property damage and environmental claims. Although exposure to such risks have not resulted in any significant problems for the Company in the past, ongoing exposure to these risks and future developments could adversely impact the Company in the future. The Company is also involved in a number of legal actions arising in the ordinary course of business. Although no assurance can be given with respect to the ultimate outcome of such legal action, in the opinion of management, the ultimate liability with respect thereto will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. |
Geographic Segments
Geographic Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Geographic Segments | 16. Geographic Segments Year Ended December 31, 2021 2020 2019 (In thousands) Western Hemisphere Revenues Products Point in Time $ 99,051 $ 79,433 $ 108,006 Over Time 47,558 71,918 54,061 Total Products 146,609 151,351 162,067 Services Technical Advisory 36,897 33,431 31,962 Reconditioning 8,783 12,105 10,733 Total Services (excluding Leasing) 45,680 45,536 42,695 Leasing 20,944 18,448 22,202 Total Services (including Leasing) 66,624 63,984 64,897 Intercompany 14,084 13,015 12,856 Total $ 227,317 $ 228,350 $ 239,820 Depreciation and amortization $ 17,889 $ 19,716 $ 21,737 Income (loss) before taxes $ ( 32,033 ) $ 3,067 $ 19,882 Eastern Hemisphere Revenues Products Point in Time $ 21,188 $ 30,191 $ 65,416 Over Time 13,724 25,847 20,641 Total Products 34,912 56,038 86,057 Services Technical Advisory 7,920 9,489 15,100 Reconditioning 2,348 4,843 3,409 Total Services (excluding Leasing) 10,268 14,332 18,509 Leasing 5,970 7,610 12,351 Total Services (including Leasing) 16,238 21,942 30,860 Intercompany 2,056 2,375 1,267 Total $ 53,206 $ 80,355 $ 118,184 Depreciation and amortization $ 4,027 $ 3,820 $ 4,163 Income before taxes $ 4,502 $ 3,284 $ 28,045 Year Ended December 31, Asia-Pacific 2021 2020 2019 (In thousands) Revenues Products Point in Time $ 23,531 $ 27,897 $ 44,908 Over Time 8,708 23,548 10,247 Total Products 32,239 51,445 55,155 Services Technical Advisory 16,824 12,372 9,369 Reconditioning 1,371 3,337 1,445 Total Services (excluding Leasing) 18,195 15,709 10,814 Leasing 8,128 4,504 4,956 Total Services (including Leasing) 26,323 20,213 15,770 Intercompany 9,047 13,084 5,792 Total $ 67,609 $ 84,742 $ 76,717 Depreciation and amortization $ 4,777 $ 5,126 $ 5,038 Income before taxes $ 4,860 $ 5,921 $ 27,302 Corporate Depreciation and amortization $ 3,688 $ 3,727 $ 3,082 Loss before taxes $ ( 102,379 ) $ ( 74,321 ) $ ( 64,800 ) Consolidated Revenues Products Point in Time $ 143,770 $ 137,521 $ 218,330 Over Time 69,990 121,313 84,949 Total Products 213,760 258,834 303,279 Services Technical Advisory 61,641 55,292 56,431 Reconditioning 12,502 20,285 15,587 Total Services (excluding Leasing) 74,143 75,577 72,018 Leasing 35,042 30,562 39,509 Total Services (including Leasing) 109,185 106,139 111,527 Intercompany 25,187 28,474 19,915 Eliminations ( 25,187 ) ( 28,474 ) ( 19,915 ) Total $ 322,945 $ 364,973 $ 414,806 Depreciation and amortization $ 30,381 $ 32,389 $ 34,020 Income (loss) before taxes $ ( 125,050 ) $ ( 62,049 ) $ 10,429 December 31, 2021 2020 (In thousands) Total long-lived assets: Western Hemisphere $ 335,760 $ 350,577 Eastern Hemisphere 224,345 222,741 Asia-Pacific 58,308 68,600 Eliminations ( 353,536 ) ( 353,939 ) Total $ 264,877 $ 287,979 Total assets: Western Hemisphere $ 686,361 $ 769,649 Eastern Hemisphere 805,574 779,147 Asia-Pacific 184,097 186,808 Eliminations ( 665,606 ) ( 584,432 ) Total $ 1,010,426 $ 1,151,172 During 2021, we recorded inventory write-downs of approximately $ 66.9 million. Out of these, $ 44.2 million was recorded in the Western Hemisphere, $ 13.0 million in the Asia-Pacific region and $ 9.7 million in the Eastern Hemisphere. Additionally, we wrote-down approximately $ 4.2 million of our long-lived assets in the Asia-Pacific region. During 2020, we wrote down $ 25.5 million related to inventory and long-lived assets balances, with $ 22.3 million recorded in the Eastern Hemisphere and $ 3.2 million in the Western Hemisphere. We also recorded a full impairment of our goodwill balance of $ 7.7 million during the first quarter of 2020, all of which was in the Eastern Hemisphere. The Company’s operations are organized into three geographic segments—Western Hemisphere (including North and South America; headquartered in Houston, Texas), Eastern Hemisphere (including Europe and Africa; headquartered in Aberdeen, Scotland) and Asia-Pacific (including the Pacific Rim, Southeast Asia, Australia, India and the Middle East; headquartered in Singapore). Each of these segments sells similar products and services, and the Company has manufacturing facilities in all three of its regional headquarter locations as well as in Macae, Brazil. Eliminations of operating profits are related to intercompany inventory transfers that are deferred until shipment is made to third party customers. |
Stock Repurchase Plan
Stock Repurchase Plan | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stock Repurchase Plan | 17. Stock Repurchase Plan On February 26, 2019, the Board of Directors authorized a share repurchase plan under which the Company can repurchase up to $ 100 million of its common stock. The repurchase plan has no set expiration date and any repurchased shares are expected to be cancelled. During the year ended December 31, 2021, the Company purchased 1,109,187 shares at an average price of $ 21.79 under the share repurchase plan for approximately $ 24.2 million . During the year ended December 31, 2020, the Company purchased 808,389 shares at an average price of $ 30.91 under the share repurchase plan for approximately $ 25.0 million. During the year ended December 31, 2019, the Company purchased 615,940 shares at an average price of $ 43.12 under the share repurchase plan for approximately $ 26.6 million. Refer to Item 5. Market for Registrant's Common Stock, Related Stockholder Matters and Issuer Purchases of Equity Securities for further discussion. |
Stock-Based Compensation and St
Stock-Based Compensation and Stock Awards | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation and Stock Awards | 18. Stock-Based Compensation and Stock Awards On May 13, 2004, the Company’s stockholders approved the 2004 Incentive Plan of Dril-Quip, Inc. (as amended in 2012 and approved by the Company’s stockholders on May 10, 2012, the “2004 Plan”), which reserved up to 2,696,294 shares of common stock for awards under the 2004 Plan. Persons eligible for awards under the 2004 Plan are employees holding positions of responsibility with the Company or any of its subsidiaries and members of the Board of Directors. On May 12, 2017, the Company’s stockholders approved the 2017 Omnibus Incentive Plan of Dril-Quip, Inc. (the “2017 Plan”), which reserved up to 1,500,000 shares of common stock to be used for awards under the 2017 Plan. Persons eligible for awards under the 2017 Plan are employees of the Company or any of its subsidiaries and members of the Board of Directors. On May 12, 2021, the Company’s stockholders approved an amendment to the 2017 Plan to add 1,900,000 shares of common stock to be used for awards under the 2017 Plan. Stock Options The last outstanding options granted under the 2004 Plan expired on October 28, 2021 . No stock options have been granted under the 2017 Plan. Options granted under the 2004 Plan ha d term of ten years and were exercisable in cumulative annual increments of one-fourth of the total num ber of shares of common stock subject thereto, beginning on the first anniversary of the date of the grant. Restricted Stock Awards On October 28, 2021 and 2020 and 2019, pursuant to the 2017 Plan, the Company awarded officers, directors and key employees restricted stock awards (RSAs), which is an award of common stock subject to time vesting. These RSA are restricted as to transference, sale and other disposition, and vest ratably over a three-year period. The RSAs may also vest in the event of a change of control. Upon termination, whether voluntary or involuntary, the RSAs that have not vested will be returned to the Company resulting in stock forfeitures. The fair market value of the stock on the date of grant is amortized and charged to selling, general and administrative expense over the stipulated time period over which the RSAs vest on a straight-line basis, net of estimated forfeitures. The Company’s RSA activity and related information is presented below: Restricted Weighted- Unvested at December 31, 2020 480,776 $ 30.20 Granted 276,783 23.96 Vested ( 265,840 ) 32.21 Forfeited ( 26,684 ) 27.78 Unvested at December 31, 2021 465,035 $ 25.48 RSA compensation expense for the years ended December 31, 2021, 2020 and 2019 totaled $ 8.0 million , $ 7.5 million and $ 8.6 million , respectively. For 2021, 2020 and 2019, the income tax benefit recognized in net income for RSAs was $ 1.3 million , $ 1.1 million and $ 2.0 million , respectively. As of December 31, 2021, there was $ 5.9 million of total unrecognized compensation cost related to unvested RSAs, which is expected to be recognized over a weighted average period of 2.9 years. There were 485,047 anti-dilutive restricted shares on December 31, 2021. Performance Unit Awards On October 28, 2021, 2020 and 2019, pursuant to the 2017 Plan, the Company awarded performance unit awards (Performance Units) to officers and key employees. The Performance Units were valued on a per unit basis based on a Monte Carlo simulation at $ 29.88 f or the 2021 grants, $ 32.05 for the 2020 grants, and $ 48.47 for the 2019 grants, approximately 126.9 %, 134.3 % and 108.9 %, respectively, of the grant date share price. Under the terms of the Performance Units, participants may earn from 0 % to 200 % of their target award based upon the Company’s relative total share return (TSR) in comparison to the 15 component companies of the Philadelphia Oil Service Index and, starting with the 2020 grants, the S&P 500 Index. The TSR is calculated over a three -year period from October 1, 2021 and 2020 and 2019 to September 30, 2024 and 2023, and 2022, respectively, and assumes reinvestment of dividends for companies within the index that pay dividends, which Dril-Quip does not. Assumptions used in the Monte Carlo simulation are as follows: 2021 2020 2019 Grant date October 28, 2021 October 28, 2020 October 28, 2019 Performance period October 1, 2021 to September 30, 2024 October 1, 2020 to September 30, 2023 October 1, 2019 to September 30, 2022 Volatility 56.1 % 50.9 % 38.8 % Risk-free interest rate 0.8 % 0.2 % 1.7 % Grant date price $ 23.54 $ 23.86 $ 44.53 The Company’s Performance Unit activity and related information is presented below: Number of Weighted Unvested balance at December 31, 2020 330,967 $ 42.10 Granted 96,111 29.88 Vested ( 166,693 ) 45.52 Forfeited ( 36,011 ) 38.92 Unvested balance at December 31, 2021 224,374 $ 34.83 Performance Unit compensation expense was $ 5.5 million , $ 4.0 million and $ 9.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. The income tax benefit recognized in net income for Performance Units was $ 0.7 million , $ 0.8 million and $ 1.9 million , for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021, there was $ 5.0 million of total unrecognized compensation expense related to unvested Performance Units which is expected to be recognized over a weighted average period of 2.2 years. There were 324,781 anti-dilutive Performance Units at December 31, 2021. Director Stock Compensation Awards In June 2014, the Board of Directors authorized a stock compensation program for the directors pursuant to the 2004 Plan. This program continues under the 2017 Plan. Under this program, the Directors may elect to receive all or a portion of their fees in the form of restricted stock awards (DSAs) in an amount equal to 125 % of the fees in lieu of cash. The awards are made quarterly on the first business day after the end of each calendar quarter and vest on January 1 of the second year after the grant date. The Company's DSA activity for the year ended December 31, 2021 is presented below: DSA Number Weighted Unvested balance at December 31, 2020 62,196 $ 30.18 Granted 52,455 25.61 Vested ( 43,865 ) 29.94 Unvested balance at December 31, 2021 70,786 $ 26.94 Director stock compensation awards expense for 2021 was $ 1,396,356 as compared to $ 1,464,590 for 2020 and $ 782,125 for 2019. For 2021, 2020, and 2019, the income tax benefit recognized in net income for DSAs was $ 230,971 , $ 208,106 , and $ 58,901 , respectively. There was $ 1,030,916 of unrecognized compensation expense related to unvested DSAs, which is expected to be recognized over a weighted average period of one year . There were 62,363 anti-dilutive DSA shares on December 31, 2021. Equity Compensation Plan Information The following table summarizes information for equity compensation plans in effect as of December 31, 2021 : Number of (1) Weighted- (2) Number of Plan category (a) (b) (c) Equity compensation plans approved by stockholders 224,374 $ 34.83 1,549,243 Total 224,374 $ 34.83 1,549,243 (1) Excludes 535,821 shares of unvested RSAs and DSAs, which were granted pursuant to the 2017 Plan and the 2004 Plan. Includes 224,,374 unvested Performance Units shown at 100 % level of performance achievement. (2) The weighted average exercise price does not take into account 224,374 unvested Performance Units, which do not have an exercise price. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 19. Earnings Per Share The following is a reconciliation of the basic and diluted earnings per share computation. Year Ended December 31, 2021 2020 2019 (In thousands, except per Net income (loss) $ ( 127,996 ) $ ( 30,768 ) $ 1,720 Weighted average basic common shares outstanding 35,331 35,260 35,839 Effect of dilutive securities - stock options and awards - - 313 Total shares and dilutive securities 35,331 35,260 36,152 Basic income (loss) per common share $ ( 3.62 ) $ ( 0.87 ) $ 0.05 Diluted income (loss) per common share $ ( 3.62 ) $ ( 0.87 ) $ 0.05 For the years ended December 31, 2021, 2020 and 2019, the Company has excluded the following common stock options and awards because their impact on the loss per share is anti-dilutive (in thousands on a weighted average basis): Year Ended December 31, 2021 2020 2019 (In thousands) Director stock awards 62 49 6 Stock options 46 109 185 Performance share units 325 349 15 Restricted stock awards 485 352 46 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events The Company's ABL Credit Facility, dated February 23, 2018, as amended was terminated effective February 22, 2022 and otherwise would have matured on February 23, 2023. We have approximately $ 0.2 million of unamortized debt issuance costs as of December 31, 2021 that will be written off upon early termination of the credit facility. In addition, we opened a new account with JP Morgan Chase Bank, N.A., to facilitate our existing and future letters of credit. We transferred approximately $ 7.1 million of letters of credit upon termination of our ABL Credit Facility to JP Morgan Chase, N.A. |
Schedule II_Valuation and Quali
Schedule II—Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II—Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts Description Balance at Charges to Recoveries and Balance at (In thousands) Allowance for doubtful trade receivables December 31, 2021 $ 2,155 $ 3,933 $ ( 841 ) $ 5,247 December 31, 2020 $ 2,214 $ 1,876 $ ( 1,935 ) $ 2,155 December 31, 2019 $ 5,666 $ 617 $ ( 4,069 ) $ 2,214 Allowance for slow moving and excess inventory December 31, 2021 $ 82,149 $ 61,905 $ ( 15,073 ) $ 128,981 December 31, 2020 $ 71,020 $ 15,595 $ ( 4,466 ) $ 82,149 December 31, 2019 $ 108,567 $ 1,032 $ ( 38,579 ) $ 71,020 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation on the Consolidated Statements of Income (Loss), Consolidated Balance Sheets and the Consolidated Statements of Cash Flows |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The worldwide spread of COVID-19 has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect COVID-19 as a global pandemic may have, and, as a result, the ultimate impact of COVID-19 and the extent to which COVID-19 continues to impact the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition and slow moving and excess inventories. |
Cash and Cash Equivalents | Cash and Cash Equivalents Short-term investments that have a maturity of three months or less from the date of purchase are classified as cash equivalents. The Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in U.S. Treasury obligations and repurchase agreements backed by U.S. Treasury obligations. The Company’s investment objectives continue to be the preservation of capital and the maintenance of liquidity. |
Trade Receivables | Trade Receivables The Company maintains an allowance for doubtful accounts on trade receivables equal to amounts estimated to be uncollectible. This estimate is based upon historical collection experience combined with a specific review of each customer’s outstanding trade receivable balance. The allowance estimate includes expected recoveries of amounts previously written off and expected to be written off in the valuation account. Management believes that the allowance for doubtful accounts is adequate; however, actual write-offs may exceed the recorded allowance. |
Inventories | Inventories Inventory costs are determined principally by the use of the first-in, first-out (FIFO) costing method and are stated at the lower of cost or net realizable value. Company manufactured inventory is valued principally using standard costs, which are calculated based upon direct costs incurred and overhead allocations and approximate actual costs. Inventory purchased from third-party vendors is principally valued at the weighted average cost. Inventory Reserves Periodically, obsolescence reviews are performed on slow moving and excess inventories and reserves are established based on current assessments about future demands and market conditions. The Company determines the reserve percentages based on an analysis of stocking levels, historical sales levels and future sales forecasts anticipated for inventory items by product type. The inventory values have been reduced by a reserve for slow moving and excess inventories of $ 129.0 million and $ 82.1 million as of December 31, 2021 and 2020 , respectively. If market conditions are less favorable than those projected by management, additional inventory reserves may be required. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost, with depreciation provided on a straight-line basis over their estimated useful lives. We capitalize costs incurred to enhance, improve and extend the useful lives of our property and equipment and expense costs incurred to repair and maintain the existing condition of our assets. |
Goodwill and intangible assets | Goodwill and intangible assets For goodwill and intangible assets, an assessment for impairment is performed annually or when there is an indication an impairment may have occurred. Goodwill is not amortized but rather tested for impairment annually on October 1 or when events occur or circumstances change that would trigger such a review. The impairment test entails an assessment of qualitative factors to determine whether it is more likely than not that an impairment exists. If it is more likely than not that an impairment exists, then a quantitative impairment test is performed. Impairment exists when the carrying amount of a reporting unit exceeds its fair value. In March 2020, the overall offshore market conditions declined primarily due to the outbreak of the COVID-19 pandemic and the developments in the global oil markets. This decline was evidenced by lower commodity prices, decline in expected offshore rig counts, decrease in our customers’ capital budgets and potential contract delays. As a result, an interim goodwill impairment analysis was performed in connection with the preparation and review of financial statements during the first quarter of 2020. Based on this analysis, we fully impaired our goodwill balance of $ 7.7 million, all of which was in the Eastern Hemisphere reporting unit. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, including property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to be generated by the asset, an impairment charge is recognized by reflecting the asset at its fair value. We review the recoverability of the carrying value of our assets based upon estimated future cash flows while taking into consideration assumptions and estimates, including the future use of the asset, remaining useful life of the asset and service potential of the asset. In the fourth quarter of 2021, we wrote-down long-lived assets of approximately $ 4.2 million related to our R&D facility in Singapore. |
Restructuring and Other Charges | Restructuring and other charges R estructuring and other charges consist of costs associated with our global strategic plan that was initiated in 2018 to better align our operations with market conditions. During 2021, the Company incurred additional costs under the 2018 global strategic plan as we exited from certain underperforming countries and markets and shifted from manufacturing in-house to a vendor outsourcing model which resulted in inventory write-downs of approximately $19.3 million, severance charges of $2.7 million and other charges of $4.0 million, consisting of facilities-related market exit costs and consulting fees. This concluded our 2018 global strategic plan as of the third quarter of 2021. In the fourth quarter of 2021, in an effort to realign our subsea product business with the market conditions, we initiated a 2021 global strategic plan. As part of the 2021 global strategic plan we discontinued certain product categories which resulted in inventory write-downs, long-lived asset write-downs and severance charges of approximately $47.7 million, $4.2 million, and $1.0 million, respectively, during the fourth quarter of 2021. During 2020, the overall offshore market conditions declined as a result of the COVID-19 pandemic and developments in global oil markets and decreases in our customers’ capital budgets. As such, we incurred additional costs under our existing 2018 global strategic plan to realign our manufacturing facilities globally. We incurred restructuring and other charges of $ 35.4 million related to non-cash inventory write-downs, severance, long-lived asset write-downs and other charges of approximately $ 17.3 million, $ 8.4 million, $ 8.3 million, and $ 1.4 million, respectively, for the year ended December 31, 2020. Other charges consisted primarily of professional fees related to the global strategic plan. During 2019, we incurred approximately $ 4.4 million of expenses primarily associated with professional fees related to our strategic restructuring and approximately $ 1.1 million in severance payout to our former Chief Operating Officer, pursuant to a separation agreement entered into with him during the first quarter of 2019. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Current income taxes are provided on income reported for financial statement purposes, adjusted for transactions that do not enter into the computation of income taxes payable in the same year. Deferred tax assets and liabilities are measured using enacted tax rates for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred income tax assets to the amounts that are expected more likely than not to be realized in the future. The Company classifies interest and penalties related to uncertain tax positions as income taxes in its financial statements. |
Revenue Recognition | Revenue Recognition Product revenues The Company recognizes product revenues from two methods: • product revenues are recognized over time as control is transferred to the customer; and • product revenues from the sale of products that do not qualify for the over time method are recognized as point in time. Revenues recognized under the over time method The Company uses the over time method on long-term project contracts that have the following characteristics: • the contracts call for products which are designed to customer specifications; • the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration; • the contracts contain specific terms as to milestones, progress billings and delivery dates; • product requirements cannot be filled directly from the Company’s standard inventory; and • The Company has an enforceable right to payment for any work completed to date and the enforceable payment includes a reasonable profit margin. For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percentage complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs to be recognized. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. Under the over time method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported in unbilled receivables. Unbilled revenues are expected to be billed and collected within one year. At December 31, 2021 and 2020, unbilled receivables included $ 58.7 million and $ 96.5 million of unbilled receivables related to products accounted for using over time method of accounting, respectively. For the year ended December 31, 2021, there were 54 projects representing approximately 21.7 % of the Company’s total revenues and approximately 32.7 % of its product revenues, and 57 projects during 2020 representing approximately 33.2 % of the Company’s total revenues and approximately 46.9 % of its product revenues, which were accounted for using over time method of accounting. Revenues recognized under the point in time method Revenues from the sale of standard inventory products, not accounted for under the over time method, are recorded at the point in time that the customer obtains control of the promised asset and the Company satisfies its performance obligation. This point in time recognition aligns with when the product is available to the customer, which is when the Company typically has a present right to payment, title transfers to the customer, the customer or its carrier has physical possession and the customer has significant risks and rewards of ownership. The Company may provide product storage to some customers. Revenues for these products are recognized at the point in time that control of the product transfers to the customer, the reason for storage is requested by the customer, the product is separately identified, the product is ready for physical transfer to the customer and the Company does not have the ability to use or direct the use of the product. This point in time typically occurs when the products are moved to storage. We receive payment after control of the products has transferred to the customer. Service revenues The Company recognizes service revenues from two sources: • technical advisory assistance; and • rework and reconditioning of customer-owned Dril-Quip products. The Company generally does not install products for its customers, but it does provide technical advisory assistance. The Company normally negotiates contracts for products, including those accounted for under the over time method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may use a third party or their own personnel. The contracts for these services are typically considered day-to-day. Rework and reconditioning service revenues are recorded using the over time method based on the remaining steps that need to be completed as the refurbishment process is performed. The measurement of progress considers, among other things, the time necessary for completion of each step in the reconditioning plan, the materials to be purchased, labor and ordering procedures. We receive payment after the services have been performed by billing customers periodically (typically monthly). Leasing revenues The Company earns leasing revenues from the rental of running tools. Revenues from rental of running tools are recognized within leasing revenues on a day rate basis over the lease term, which is generally between one to three months. On April 30, 2021, as a result of lower activity stemming from the COVID-19 pandemic, AFGlobal Corporation provided a 90-day written notice of termination of the lease agreement between the Company and AFGlobal in relation to the Company’s forge facility and equipment at its Houston Eldridge campus. Based on the initial 5-year term of the lease agreement, the Company had straight-lined the total anticipated lease revenue for that initial term into equal monthly lease revenue. As a result of the lease termination, the Company has approximately $ 2.3 million in unbilled revenue that was expensed in second quarter of 2021. The Company has numerous other forging suppliers and does not expect any disruptions in forging supply as a result of the lease termination. Practical Expedients As permitted under Accounting Standards Update (ASU) 2016-02 “Leases (Topic 842),” we elected the package of practical expedients permitted under the transition guidance which, among other things, allows companies to carry forward their historical lease classification. |
Foreign Currency | Foreign Currency The financial statements of foreign subsidiaries are translated into U.S. dollars at period-end exchange rates except for revenues and expenses, which are translated at average monthly rates. Translation adjustments are reflected as a separate component of stockholders’ equity and have no effect on current earnings or cash flows. Foreign currency exchange transactions are recorded using the exchange rate at the date of the settlement. The Company had, net of income taxes, a transaction loss of $ 0.7 million in 2021, a transaction loss of $ 1.9 million in 2020 and a transaction gain of $ 1.3 million in 2019 . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which subject the Company to concentrations of credit risk primarily include trade receivables. The Company grants credit to its customers, which operate primarily in the oil and gas industry. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company maintains reserves for potential losses, and actual losses have historically been within management’s expectations. In addition, the Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in obligations of the U.S. Treasury and repurchase agreements backed by U.S. Treasury obligations. Changes in the financial markets and interest rates could affect the interest earned on short-term investments. |
Earnings Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed considering the dilutive effect of stock options and awards using the treasury stock method. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from Contract with Customer Excludes Leasing | Revenues from contracts with customers (excludes leasing) consisted of the following: Twelve Months Ended December 31, 2021 Western Eastern Asia- Total (In thousands) Product Revenues $ 146,609 $ 34,912 $ 32,239 $ 213,760 Service Revenues 45,680 10,268 18,195 74,143 Total $ 192,289 $ 45,180 $ 50,434 $ 287,903 Twelve Months Ended December 31, 2020 Western Eastern Asia- Total (In thousands) Product Revenues $ 151,351 $ 56,038 $ 51,445 $ 258,834 Service Revenues 45,536 14,332 15,709 75,577 Total $ 196,887 $ 70,370 $ 67,154 $ 334,411 |
Schedule of Contract Asset and Liability | Balances related to contracts with customers consisted of the following: Contract Assets (amounts shown in thousands) Contract Assets at December 31, 2020 $ 135,973 Additions 97,721 Transfers to Accounts Receivable ( 135,978 ) Contract Assets at December 31, 2021 $ 97,716 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2020 $ 10,815 Additions 5,936 Revenue Recognized ( 7,529 ) Contract Liabilities at December 31, 2021 $ 9,222 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31, 2021 2020 (In thousands) Raw materials and supplies $ 27,398 $ 32,833 Work in progress 28,361 44,924 Finished goods 218,946 216,928 274,705 294,685 Less: allowance for slow moving and excess inventory ( 128,981 ) ( 82,149 ) Total inventory $ 145,724 $ 212,536 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of: Estimated Useful December 31, Lives 2021 2020 (In thousands) Land improvements 10 - 25 years $ 7,374 $ 7,379 Buildings 15 - 40 years 206,037 206,732 Machinery, equipment and other 3 - 10 years 398,995 390,803 612,406 604,914 Less accumulated depreciation ( 419,834 ) ( 399,095 ) 192,572 205,819 Land 12,261 12,408 Construction work in process 11,367 16,596 Total property, plant and equipment $ 216,200 $ 234,823 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of Impairment, Restructuring and Other Charges | The following table summarizes the components of charges included in "Restructuring and other charges" in our Consolidated Statements of Income (Loss) for the year ended December 31, 2021, 2020 and 2019 (in thousands): Year Ended December 31, 2021 December 31, 2020 December 31, 2019 Inventory write-down $ 66,910 $ 17,272 $ - Severance 3,760 8,462 1,125 Long-lived asset write-down 4,240 8,269 - Other 4,023 1,377 3,271 $ 78,933 $ 35,380 $ 4,396 |
Schedule of Accrued Liabilities Related to Restructuring and Others Charges | Current other accrued liabilities consist of the following: December 31, 2021 2020 (In thousands) Accrued vendor costs $ 13,359 $ 10,610 Property, sales and other taxes 5,911 6,014 Commissions payable 1,450 1,065 Payroll taxes 3,621 4,760 Accrued restructuring costs 3,000 - Accrued severance 1,001 1,147 Accrued bonus 5,700 - Other 3,204 2,685 Total $ 37,246 $ 26,281 |
Restructuring and Other Charges | |
Schedule of Accrued Liabilities Related to Restructuring and Others Charges | The following table summarizes the changes to our accrued liability balances related to restructuring and other charges as of December 30, 2021 (in thousands): December 31, 2021 Balance at January 1, 2021 $ 1,146 Additions for costs expensed 5,577 Reductions for payments ( 2,723 ) Ending balance at December 31, 2021 $ 4,000 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets | Intangible assets, the majority of which were acquired in the acquisition of TIW and OPT, consist of the following: Estimated 2021 Gross Book Accumulated Foreign Currency Net Book Value (In thousands) Trademarks 15 years $ 8,257 $ ( 1,579 ) $ ( 23 ) $ 6,655 Patents 15 - 30 years 6,058 ( 3,285 ) ( 1 ) 2,772 Customer relationships 5 - 15 years 26,078 ( 9,128 ) ( 38 ) 16,912 Organizational Costs 3 years 185 ( 76 ) ( 2 ) 107 $ 40,578 $ ( 14,068 ) $ ( 64 ) $ 26,446 Estimated 2020 Gross Book Accumulated Foreign Currency Net Book Value (In thousands) Trademarks 15 years $ 8,238 $ ( 1,033 ) $ ( 5 ) $ 7,200 Patents 15 - 30 years 6,054 ( 2,715 ) ( 2 ) 3,337 Customer relationships 5 - 15 years 25,966 ( 7,304 ) 65 18,727 Organizational costs indefinite 179 ( 15 ) 6 170 $ 40,437 $ ( 11,067 ) $ 64 $ 29,434 |
Leases and Lease Commitments (T
Leases and Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Classification of Leases | Certain lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. December 31, 2021 December 31, 2020 Classification (In thousands) (In thousands) Assets Operating Operating lease right of use assets $ 5,258 $ 6,962 Finance Other assets 164 228 Total lease assets $ 5,422 $ 7,190 Liabilities Current Operating Operating lease liabilities $ 1,046 $ 1,110 Finance Other accrued liabilities 127 141 Noncurrent Operating Operating lease liabilities, long-term 4,170 5,845 Finance Other long-term liabilities 52 93 Total lease liabilities $ 5,395 $ 7,189 |
Schedule of Lease Costs | Our lease costs are as follows: Twelve Months Ended December 31, 2021 December 31, 2020 December 31, 2019 (In thousands) (In thousands) (In thousands) Classification Operating lease cost Selling, general and administrative $ 1,602 $ 1,617 $ 1,713 Short-term lease costs Selling, general and administrative 1,296 2,173 2,104 Amortization of leased assets Selling, general and administrative 114 186 361 Interest on lease liabilities Net interest expense 59 14 25 Total lease cost $ 3,071 $ 3,990 $ 4,203 |
Schedule of Maturity of Lease Obligations | The five year and beyond maturity of our lease obligations is presented below: Twelve months ended December 31, 2021 Operating Finance Leases Leases Total (In thousands) 2022 $ 1,266 $ 135 $ 1,401 2023 758 33 791 2024 515 20 535 2025 493 - 493 2026 493 - 493 After 2026 3,362 - 3,362 Total lease payments 6,887 188 7,075 Less: interest 1,671 9 1,680 Present value of lease liabilities $ 5,216 $ 179 $ 5,395 |
Schedule of Lease Term and Discount Rate for Operating and Finance Leases | The lease term and discount rate for our operating and finance leases is as follows: December 31, 2021 Weighted average remaining lease term (years) Operating leases 11.3 Finance leases 1.7 Weighted average discount rate Operating leases 5.1 % Finance leases 5.5 % |
Schedule of Other Information Pertaining to Lease Obligations | Other information pertaining to our lease obligations is as follows: December 31, 2021 December 31, 2020 December 31, 2019 (In thousands) (In thousands) (In thousands) Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,591 $ 1,615 $ 1,737 Operating cash flows from finance leases 59 16 28 Financing cash flows from finance leases 109 183 183 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income (loss) before income taxes consisted of the following: Year Ended December 31, 2021 2020 2019 (In thousands) Domestic $ ( 135,403 ) $ ( 76,056 ) $ ( 51,041 ) Foreign 10,353 14,007 61,470 Total $ ( 125,050 ) $ ( 62,049 ) $ 10,429 |
Schedule of Income Tax Provision (Benefit) | The income tax provision (benefit) consists of the following: Year Ended December 31, 2021 2020 2019 (In thousands) Current: Federal $ 833 $ ( 44,752 ) $ ( 569 ) Foreign 10,579 8,454 8,513 Total current 11,412 ( 36,298 ) 7,944 Deferred: Federal ( 56 ) - - Foreign ( 8,410 ) 5,017 765 Total deferred ( 8,466 ) 5,017 765 Total $ 2,946 $ ( 31,281 ) $ 8,709 |
Schedule of Effective Income Tax Rate Reflected in Provision for Income Taxes and U.S. Federal Statutory Rate | The difference between the effective income tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows: Year Ended December 31, 2021 2020 2019 Federal income tax statutory rate 21.00 % 21.00 % 21.00 % CARES Act NOL rate differential (2019 and 2020) - 32.60 - Accrual for undistributed earnings 0.79 ( 5.15 ) - Foreign income tax rate differential - ( 1.03 ) 16.20 Foreign development tax incentive ( 0.24 ) ( 0.38 ) ( 0.91 ) Nondeductible goodwill impairment - ( 2.42 ) - Exempt income 0.54 1.25 ( 24.02 ) Foreign taxes and inclusions (net of FTC) ( 1.15 ) ( 9.26 ) 21.00 Nondeductible expenses ( 2.82 ) ( 5.35 ) 15.51 Manufacturing benefit - ( 7.32 ) - Change in valuation allowance ( 21.87 ) 28.26 24.96 Changes to prior year accruals 0.23 ( 3.15 ) 6.28 Deferred tax rate change 0.11 ( 0.10 ) ( 0.36 ) Change in uncertain tax positions ( 0.19 ) ( 0.83 ) 4.31 Interest on net equity 0.41 - - General business credits 1.31 2.32 ( 11.14 ) Branch income ( 0.29 ) ( 0.31 ) 9.64 Other ( 0.19 ) 0.28 1.03 Effective tax rate - 2.36 % 50.41 % 83.50 % |
Components of Net Deferred Tax Assets (Liabilities) | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred tax assets (liabilities) are as follows: As of December 31, 2021 2020 (In thousands) Deferred tax assets: Foreign tax credit carryforward $ 9,190 $ 4,202 General business credit carryforward 3,853 2,347 Inventory 22,178 13,536 Net operating losses 21,348 1,250 Allowance for doubtful accounts 1,043 490 Reserve for accrued liabilities 3,161 4,029 Stock options 868 1,670 Unrealized gain/loss 1,217 1,554 Disallowed interest carryforward 2,071 1,912 Other 221 1,939 Total deferred tax assets 65,150 32,929 Valuation allowance ( 44,235 ) ( 17,049 ) Deferred tax liabilities: Property, plant and equipment ( 7,233 ) ( 6,048 ) Goodwill & Intangibles ( 1,796 ) ( 1,903 ) Deferred revenue ( 1,258 ) ( 3,415 ) Reserve for unremitted earnings ( 2,586 ) ( 3,608 ) Other ( 586 ) ( 1,917 ) Total deferred tax liability ( 13,459 ) ( 16,891 ) Net deferred tax asset $ 7,456 $ ( 1,011 ) |
Summary of Operating Loss Carryforwards | Tax operating loss carryforwards totaled $ 100.9 milli on (gross) at December 31, 2021. These operating losses will expire as shown in the table below. Tax operating losses Expiration (in thousands) $ 2,228 2022-2027 - 2028-2034 1,843 2035-2040 96,837 Indefinite $ 100,908 |
Schedule of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows: 2021 2020 2019 (In thousands) Balance at beginning of year $ 18,665 $ 18,665 $ 18,648 Additions for tax positions related to the current year 3 3 - Reductions for tax positions related to the prior year ( 50 ) ( 3 ) 17 Balance at end of year $ 18,618 $ 18,665 $ 18,665 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities Related to Restructuring and Others Charges | Current other accrued liabilities consist of the following: December 31, 2021 2020 (In thousands) Accrued vendor costs $ 13,359 $ 10,610 Property, sales and other taxes 5,911 6,014 Commissions payable 1,450 1,065 Payroll taxes 3,621 4,760 Accrued restructuring costs 3,000 - Accrued severance 1,001 1,147 Accrued bonus 5,700 - Other 3,204 2,685 Total $ 37,246 $ 26,281 |
Geographic Segments (Tables)
Geographic Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | Year Ended December 31, 2021 2020 2019 (In thousands) Western Hemisphere Revenues Products Point in Time $ 99,051 $ 79,433 $ 108,006 Over Time 47,558 71,918 54,061 Total Products 146,609 151,351 162,067 Services Technical Advisory 36,897 33,431 31,962 Reconditioning 8,783 12,105 10,733 Total Services (excluding Leasing) 45,680 45,536 42,695 Leasing 20,944 18,448 22,202 Total Services (including Leasing) 66,624 63,984 64,897 Intercompany 14,084 13,015 12,856 Total $ 227,317 $ 228,350 $ 239,820 Depreciation and amortization $ 17,889 $ 19,716 $ 21,737 Income (loss) before taxes $ ( 32,033 ) $ 3,067 $ 19,882 Eastern Hemisphere Revenues Products Point in Time $ 21,188 $ 30,191 $ 65,416 Over Time 13,724 25,847 20,641 Total Products 34,912 56,038 86,057 Services Technical Advisory 7,920 9,489 15,100 Reconditioning 2,348 4,843 3,409 Total Services (excluding Leasing) 10,268 14,332 18,509 Leasing 5,970 7,610 12,351 Total Services (including Leasing) 16,238 21,942 30,860 Intercompany 2,056 2,375 1,267 Total $ 53,206 $ 80,355 $ 118,184 Depreciation and amortization $ 4,027 $ 3,820 $ 4,163 Income before taxes $ 4,502 $ 3,284 $ 28,045 Year Ended December 31, Asia-Pacific 2021 2020 2019 (In thousands) Revenues Products Point in Time $ 23,531 $ 27,897 $ 44,908 Over Time 8,708 23,548 10,247 Total Products 32,239 51,445 55,155 Services Technical Advisory 16,824 12,372 9,369 Reconditioning 1,371 3,337 1,445 Total Services (excluding Leasing) 18,195 15,709 10,814 Leasing 8,128 4,504 4,956 Total Services (including Leasing) 26,323 20,213 15,770 Intercompany 9,047 13,084 5,792 Total $ 67,609 $ 84,742 $ 76,717 Depreciation and amortization $ 4,777 $ 5,126 $ 5,038 Income before taxes $ 4,860 $ 5,921 $ 27,302 Corporate Depreciation and amortization $ 3,688 $ 3,727 $ 3,082 Loss before taxes $ ( 102,379 ) $ ( 74,321 ) $ ( 64,800 ) Consolidated Revenues Products Point in Time $ 143,770 $ 137,521 $ 218,330 Over Time 69,990 121,313 84,949 Total Products 213,760 258,834 303,279 Services Technical Advisory 61,641 55,292 56,431 Reconditioning 12,502 20,285 15,587 Total Services (excluding Leasing) 74,143 75,577 72,018 Leasing 35,042 30,562 39,509 Total Services (including Leasing) 109,185 106,139 111,527 Intercompany 25,187 28,474 19,915 Eliminations ( 25,187 ) ( 28,474 ) ( 19,915 ) Total $ 322,945 $ 364,973 $ 414,806 Depreciation and amortization $ 30,381 $ 32,389 $ 34,020 Income (loss) before taxes $ ( 125,050 ) $ ( 62,049 ) $ 10,429 December 31, 2021 2020 (In thousands) Total long-lived assets: Western Hemisphere $ 335,760 $ 350,577 Eastern Hemisphere 224,345 222,741 Asia-Pacific 58,308 68,600 Eliminations ( 353,536 ) ( 353,939 ) Total $ 264,877 $ 287,979 Total assets: Western Hemisphere $ 686,361 $ 769,649 Eastern Hemisphere 805,574 779,147 Asia-Pacific 184,097 186,808 Eliminations ( 665,606 ) ( 584,432 ) Total $ 1,010,426 $ 1,151,172 |
Stock-Based Compensation and _2
Stock-Based Compensation and Stock Awards (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of RSA Activity | The Company’s RSA activity and related information is presented below: Restricted Weighted- Unvested at December 31, 2020 480,776 $ 30.20 Granted 276,783 23.96 Vested ( 265,840 ) 32.21 Forfeited ( 26,684 ) 27.78 Unvested at December 31, 2021 465,035 $ 25.48 |
Schedule of Valuation Assumptions | Assumptions used in the Monte Carlo simulation are as follows: 2021 2020 2019 Grant date October 28, 2021 October 28, 2020 October 28, 2019 Performance period October 1, 2021 to September 30, 2024 October 1, 2020 to September 30, 2023 October 1, 2019 to September 30, 2022 Volatility 56.1 % 50.9 % 38.8 % Risk-free interest rate 0.8 % 0.2 % 1.7 % Grant date price $ 23.54 $ 23.86 $ 44.53 |
Summary of PSA Activity | The Company’s Performance Unit activity and related information is presented below: Number of Weighted Unvested balance at December 31, 2020 330,967 $ 42.10 Granted 96,111 29.88 Vested ( 166,693 ) 45.52 Forfeited ( 36,011 ) 38.92 Unvested balance at December 31, 2021 224,374 $ 34.83 |
Schedule of DSA Activity | The Company's DSA activity for the year ended December 31, 2021 is presented below: DSA Number Weighted Unvested balance at December 31, 2020 62,196 $ 30.18 Granted 52,455 25.61 Vested ( 43,865 ) 29.94 Unvested balance at December 31, 2021 70,786 $ 26.94 |
Schedule of Information for Stock Option Plans | Equity Compensation Plan Information The following table summarizes information for equity compensation plans in effect as of December 31, 2021 : Number of (1) Weighted- (2) Number of Plan category (a) (b) (c) Equity compensation plans approved by stockholders 224,374 $ 34.83 1,549,243 Total 224,374 $ 34.83 1,549,243 (1) Excludes 535,821 shares of unvested RSAs and DSAs, which were granted pursuant to the 2017 Plan and the 2004 Plan. Includes 224,,374 unvested Performance Units shown at 100 % level of performance achievement. (2) The weighted average exercise price does not take into account 224,374 unvested Performance Units, which do not have an exercise price. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share | The following is a reconciliation of the basic and diluted earnings per share computation. Year Ended December 31, 2021 2020 2019 (In thousands, except per Net income (loss) $ ( 127,996 ) $ ( 30,768 ) $ 1,720 Weighted average basic common shares outstanding 35,331 35,260 35,839 Effect of dilutive securities - stock options and awards - - 313 Total shares and dilutive securities 35,331 35,260 36,152 Basic income (loss) per common share $ ( 3.62 ) $ ( 0.87 ) $ 0.05 Diluted income (loss) per common share $ ( 3.62 ) $ ( 0.87 ) $ 0.05 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the years ended December 31, 2021, 2020 and 2019, the Company has excluded the following common stock options and awards because their impact on the loss per share is anti-dilutive (in thousands on a weighted average basis): Year Ended December 31, 2021 2020 2019 (In thousands) Director stock awards 62 49 6 Stock options 46 109 185 Performance share units 325 349 15 Restricted stock awards 485 352 46 |
Organization - Additional Infor
Organization - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021LocationSegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of geographic segments | Segment | 3 |
Number of headquarter locations | Location | 3 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2021USD ($)Project | Dec. 31, 2020USD ($)Project | Dec. 31, 2019USD ($) | |
Accounting Policies [Line Items] | |||||||
Inventory reserves | $ 128,981 | $ 128,981 | $ 82,149 | ||||
Goodwill impairment loss | $ 7,700 | ||||||
Restructuring and other charges | 78,933 | 35,380 | $ 4,396 | ||||
Inventory write-down | 66,910 | 17,272 | 0 | ||||
Long-lived asset write-downs | 4,200 | 8,300 | |||||
Severance costs | 3,760 | 8,462 | 1,125 | ||||
Restructuring costs | 1,400 | 4,400 | |||||
Unbilled receivables | 102,597 | $ 102,597 | $ 140,318 | ||||
Number of projects | Project | 54 | 57 | |||||
Percentage of total revenues | 21.70% | 33.20% | |||||
Percentage of product revenues | 32.70% | 46.90% | |||||
Leasing revenues | $ 2,300 | ||||||
Gain (loss) in foreign currency exchange transactions | $ (700) | $ 1,900 | $ 1,300 | ||||
2018 Global Strategic Plan | |||||||
Accounting Policies [Line Items] | |||||||
Inventory write-down | 19,300 | ||||||
Severance costs | 2,700 | ||||||
Restructuring costs | 4,000 | ||||||
2021 Global Strategic Plan | |||||||
Accounting Policies [Line Items] | |||||||
Inventory write-down | 47,700 | ||||||
Long-lived asset write-downs | 4,200 | ||||||
Severance costs | 1,000 | ||||||
Over Time Method | |||||||
Accounting Policies [Line Items] | |||||||
Unbilled receivables | 58,700 | 58,700 | 96,500 | ||||
Covid 19 | |||||||
Accounting Policies [Line Items] | |||||||
Severance costs | 8,400 | ||||||
Chief Operating Officer | |||||||
Accounting Policies [Line Items] | |||||||
Severance costs | $ 1,100 | ||||||
Inventories | |||||||
Accounting Policies [Line Items] | |||||||
Inventory reserves | $ 129,000 | $ 129,000 | $ 82,100 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues From Contracts With Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 287,903 | $ 334,411 | |
Western Hemisphere | Operating Segments | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 192,289 | 196,887 | |
Eastern Hemisphere | Operating Segments | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 45,180 | 70,370 | |
Asia Pacific | Operating Segments | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 50,434 | 67,154 | |
Products | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 213,760 | 258,834 | $ 303,279 |
Products | Western Hemisphere | Operating Segments | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 146,609 | 151,351 | |
Products | Eastern Hemisphere | Operating Segments | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 34,912 | 56,038 | |
Products | Asia Pacific | Operating Segments | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 32,239 | 51,445 | |
Services | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 74,143 | 75,577 | |
Services | Western Hemisphere | Operating Segments | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 45,680 | 45,536 | |
Services | Eastern Hemisphere | Operating Segments | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 10,268 | 14,332 | |
Services | Asia Pacific | Operating Segments | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 18,195 | $ 15,709 |
Revenue Recognition - Contract
Revenue Recognition - Contract Asset and Liability (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Contract Assets | |
Contract Assets at December 31, 2020 | $ 135,973 |
Additions | 97,721 |
Transfers to Accounts Receivable | (135,978) |
Contract Assets at December 31, 2021 | 97,716 |
Contract Liabilities | |
Contract Liabilities at December 31, 2020 | 11,339 |
Contract Liabilities at December 31, 2021 | 9,746 |
Other Current Liabilities | |
Contract Liabilities | |
Contract Liabilities at December 31, 2020 | 10,815 |
Additions | 5,936 |
Revenue Recognized | (7,529) |
Contract Liabilities at December 31, 2021 | $ 9,222 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Receivables, included in trade receivables | $ 97,716 | $ 135,973 |
Unbilled receivables | 102,597 | 140,318 |
Performance obligation | 65,800 | |
Receivables (Included in Trade Receivables) | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Receivables, included in trade receivables | 97,700 | 136,000 |
Unbilled receivables | $ 58,700 | $ 96,500 |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information (Details 1) | Dec. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-12-31 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 86.30% |
Expected timing of satisfaction period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 13.70% |
Expected timing of satisfaction period | 0 years |
Inventories, net - Schedule of
Inventories, net - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 27,398 | $ 32,833 |
Work in progress | 28,361 | 44,924 |
Finished goods | 218,946 | 216,928 |
Inventory, gross, Total | 274,705 | 294,685 |
Less: allowance for slow moving and excess inventory | (128,981) | (82,149) |
Total inventory | $ 145,724 | $ 212,536 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 612,406 | $ 604,914 |
Less accumulated depreciation | (419,834) | (399,095) |
Property Plant And Equipment Less Accumulated Depreciation | 192,572 | 205,819 |
Total property, plant and equipment | 216,200 | 234,823 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,374 | 7,379 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 206,037 | 206,732 |
Machinery, equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 398,995 | 390,803 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 12,261 | 12,408 |
Construction work in process | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 11,367 | $ 16,596 |
Minimum | Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | |
Minimum | Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years | |
Minimum | Machinery, equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Maximum | Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 25 years | |
Maximum | Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 40 years | |
Maximum | Machinery, equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years |
Property, Plant and Equipment_4
Property, Plant and Equipment, net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 27.2 | $ 28.7 | $ 31 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Inventory write-down | $ 66,910 | $ 17,272 | $ 0 | |
Long-lived asset write-downs | $ 4,200 | 8,300 | ||
Severance cost | 3,760 | 8,462 | 1,125 | |
Restructuring costs | $ 1,400 | $ 4,400 | ||
2018 Global Strategic Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventory write-down | 19,300 | |||
Severance cost | 2,700 | |||
Restructuring costs | $ 4,000 | |||
2021 Global Strategic Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventory write-down | 47,700 | |||
Long-lived asset write-downs | 4,200 | |||
Severance cost | $ 1,000 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Impairment, Restructuring and Other Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |||
Inventory write-down | $ 66,910 | $ 17,272 | $ 0 |
Severance cost | 3,760 | 8,462 | 1,125 |
Long-lived asset write-down | 4,240 | 8,269 | 0 |
Other | 4,023 | 1,377 | 3,271 |
Total impairment, restructuring and other charges | $ 78,933 | $ 35,380 | $ 4,396 |
Restructuring and Other Charg_5
Restructuring and Other Charges - Schedule of Accrued Liabilities Related to Restructuring and Others Charges (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Restructuring and Related Activities [Abstract] | |
Beginning balance | $ 1,146 |
Additions for costs expensed | 5,577 |
Reductions for payments | (2,723) |
Ending balance | $ 4,000 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Line Items] | |
Goodwill impairment loss | $ 7.7 |
Eastern Hemisphere | |
Goodwill [Line Items] | |
Goodwill impairment loss | $ 7.7 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (14,068) | $ (11,067) |
Finite-Lived, Foreign Currency Translation | 64 | 64 |
Indefinite-lived, Gross Book Value | 179 | |
Indefinite-lived Intangible Assets, Accumulated Amortization | (15) | |
Indefinite-lived Intangible Assets, Foreign Currency Translation | 6 | |
Indefinite-lived Intangible, Net Book Value | 170 | |
Indefinite and Finite-Lived, Gross Book Value | 40,578 | 40,437 |
Indefinite and Finite-Lived, Net Book Value | $ 26,446 | $ 29,434 |
Trademarks | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | 15 years |
Finite-Lived, Gross Book Value | $ 8,257 | $ 8,238 |
Accumulated Amortization | (1,579) | (1,033) |
Finite-Lived, Foreign Currency Translation | (23) | 5 |
Finite-Lived, Net Book Value | 6,655 | 7,200 |
Patents | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived, Gross Book Value | 6,058 | 6,054 |
Accumulated Amortization | (3,285) | (2,715) |
Finite-Lived, Foreign Currency Translation | (1) | 2 |
Finite-Lived, Net Book Value | $ 2,772 | $ 3,337 |
Patents | Minimum | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | 15 years |
Patents | Maximum | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 30 years | 30 years |
Customer relationships | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived, Gross Book Value | $ 26,078 | $ 25,966 |
Accumulated Amortization | (9,128) | (7,304) |
Finite-Lived, Foreign Currency Translation | 38 | 65 |
Finite-Lived, Net Book Value | $ 16,912 | $ 18,727 |
Customer relationships | Minimum | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 5 years | 5 years |
Customer relationships | Maximum | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | 15 years |
Organizational Costs | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 3 years | |
Indefinite-lived, Gross Book Value | $ 185 | |
Indefinite-lived Intangible Assets, Accumulated Amortization | (76) | |
Indefinite-lived Intangible Assets, Foreign Currency Translation | (2) | |
Indefinite-lived Intangible, Net Book Value | $ 107 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 3 | $ 3 | $ 2.9 |
Amortization expense for 2022 | 2.8 | ||
Amortization expense for 2023 | 2.8 | ||
Amortization expense for 2024 | 2.8 | ||
Amortization expense for 2025 | 2.8 | ||
Amortization expense for 2026 | $ 2.8 |
Leases and Lease Commitments -
Leases and Lease Commitments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | $ 897,108 | $ 1,041,528 | $ 1,090,701 | $ 1,096,162 |
Operating lease liabilities | 1,046 | 1,110 | ||
Operating lease liabilities, long-term | 4,170 | 5,845 | ||
Lease expense recognize on a straight-line basis | 1,300 | |||
Lease expense incurred | $ 2,900 | $ 3,800 | $ 3,800 |
Leases and Lease Commitments _2
Leases and Lease Commitments - Schedule of Classification of Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Operating | $ 5,258 | $ 6,962 |
Finance | $ 164 | $ 228 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Total lease assets | $ 5,422 | $ 7,190 |
Current | ||
Operating | 1,046 | 1,110 |
Finance | $ 127 | $ 141 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Noncurrent | ||
Operating | $ 4,170 | $ 5,845 |
Finance | $ 52 | $ 93 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Total lease liabilities | $ 5,395 | $ 7,189 |
Leases and Lease Commitments _3
Leases and Lease Commitments - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessor Lease Description [Line Items] | |||
Total lease cost | $ 3,071 | $ 3,990 | $ 4,203 |
Selling, General and Administrative | |||
Lessor Lease Description [Line Items] | |||
Operating lease cost | 1,602 | 1,617 | 1,713 |
Short-term lease costs | 1,296 | 2,173 | 2,104 |
Amortization of leased Assets | 114 | 186 | 361 |
Net Interest Expense | |||
Lessor Lease Description [Line Items] | |||
Interest on lease liabilities | $ 59 | $ 14 | $ 25 |
Leases and Lease Commitments _4
Leases and Lease Commitments - Schedule of Maturity of Lease Obligations (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Leases | |
2022 | $ 1,266 |
2023 | 758 |
2024 | 515 |
2025 | 493 |
2026 | 493 |
After 2026 | 3,362 |
Total lease payments | 6,887 |
Less: interest | 1,671 |
Present value of lease liabilities | 5,216 |
Finance Leases | |
2022 | 135 |
2023 | 33 |
2024 | 20 |
Total lease payments | 188 |
Less: interest | 9 |
Present value of lease liabilities | 179 |
Total | |
2022 | 1,401 |
2023 | 791 |
2024 | 535 |
2025 | 493 |
2026 | 493 |
After 2026 | 3,362 |
Total lease payments | 7,075 |
Less: interest | 1,680 |
Present value of lease liabilities | $ 5,395 |
Leases and Lease Commitments _5
Leases and Lease Commitments - Schedule of Lease Term and Discount Rate for Operating and Finance Leases (Details) | Dec. 31, 2021 |
Leases [Abstract] | |
Weighted average remaining lease term, Operating leases | 11 years 3 months 18 days |
Weighted average remaining lease term, Finance leases | 1 year 8 months 12 days |
Weighted average discount rate, Operating leases | 5.10% |
Weighted average discount rate, Finance leases | 5.50% |
Leases and Lease Commitments _6
Leases and Lease Commitments - Schedule of Other Information Pertaining to Lease Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 1,591 | $ 1,615 | $ 1,737 |
Operating cash flows from finance leases | 59 | 16 | 28 |
Financing cash flows from finance leases | $ 109 | $ 183 | $ 183 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (135,403) | $ (76,056) | $ (51,041) |
Foreign | 10,353 | 14,007 | 61,470 |
Income (loss) before taxes | $ (125,050) | $ (62,049) | $ 10,429 |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 833 | $ (44,752) | $ (569) |
Foreign | 10,579 | 8,454 | 8,513 |
Total current | 11,412 | (36,298) | 7,944 |
Deferred: | |||
Federal | (56) | 0 | 0 |
Foreign | (8,410) | 5,017 | 765 |
Total deferred | (8,466) | 5,017 | 765 |
Total | $ 2,946 | $ (31,281) | $ 8,709 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reflected in Provision for Income Taxes and U.S. Federal Statutory Rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax statutory rate | 21.00% | 21.00% | 21.00% |
CARES Act NOL rate differential (2019 and 2020) | 0 | 3,260 | |
Accrual for undistributed earnings | 0.0079 | (515) | |
Foreign income tax rate differential | 0.00% | (1.03%) | 16.20% |
Foreign development tax incentive | (0.24%) | (0.38%) | (0.91%) |
Nondeductible goodwill impairment | 0.00% | (2.42%) | |
Exempt income | 0.54% | 1.25% | (24.02%) |
Foreign taxes and inclusions (net of FTC) | (1.15%) | (9.26%) | 21.00% |
Nondeductible expenses | (2.82%) | (5.35%) | 15.51% |
Manufacturing benefit | 0.00% | (7.32%) | |
Change in valuation allowance | (21.87%) | 28.26% | 24.96% |
Changes to prior year accruals | 0.23% | (3.15%) | 6.28% |
Deferred tax rate change | 0.11% | (0.10%) | (0.36%) |
Change in uncertain tax positions | (0.19%) | (0.83%) | 4.31% |
Interest on net equity | 0.41% | ||
General business credits | 1.31% | 2.32% | (11.14%) |
Branch income | (0.29%) | (0.31%) | 9.64% |
Other | (0.19%) | 0.28% | 1.03% |
Effective tax rate | (2.36%) | 50.41% | 83.50% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Foreign tax credit carryforward | $ 9,190 | $ 4,202 |
General business credit carryforward | 3,853 | 2,347 |
Inventory | 22,178 | 13,536 |
Net operating losses | 21,348 | 1,250 |
Allowance for doubtful accounts | 1,043 | 490 |
Reserve for accrued liabilities | 3,161 | 4,029 |
Stock options | 868 | 1,670 |
Unrealized gain/loss | 1,217 | 1,554 |
Disallowed interest carryforward | 2,071 | 1,912 |
Other | 221 | 1,939 |
Total deferred tax assets | 65,150 | 32,929 |
Valuation allowance | (44,235) | (17,049) |
Deferred tax liabilities: | ||
Property, plant and equipment | (7,233) | (6,048) |
Goodwill & Intangibles | (1,796) | (1,903) |
Deferred revenue | (1,258) | (3,415) |
Reserve for unremitted earnings | (2,586) | (3,608) |
Other | 586 | 1,917 |
Deferred Tax Liabilities, Gross, Total | 13,459 | 16,891 |
Net deferred tax asset | $ 7,456 | $ 1,011 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unusual Risk Or Uncertainty [Line Items] | ||||
Foreign tax credit carryforward | $ 9,190 | $ 4,202 | ||
General business credit carryforward | 3,853 | 2,347 | ||
Gross operating loss carryforwards | 100,908 | |||
Valuation allowance | 44,235 | 17,049 | ||
Deferred foreign tax liability | 2,586 | 3,608 | ||
Uncertain tax positions | 18,618 | 18,665 | $ 18,665 | $ 18,648 |
Income tax penalties and interest accrued | 2,400 | 2,100 | 1,600 | |
Unrecognized tax benefits that would impact effective tax rate | 7,300 | |||
Income taxes paid | 2,000 | $ 18,200 | $ 10,900 | |
Domestic Country | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Gross operating loss carryforwards | 95,800 | |||
Indefinite | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Foreign tax credit carryforward | 4,500 | |||
Gross operating loss carryforwards | 96,837 | |||
Indefinite | Domestic Country | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Gross operating loss carryforwards | 94,700 | |||
2024-2031 | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Foreign tax credit carryforward | 4,700 | |||
2037-2041 | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
General business credit carryforward | 3,900 | |||
Covid 19 | Prepaids and Other Current Assets | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Net operating loss carryback claims | $ 14,800 |
Income Taxes - Schedule of Oper
Income Taxes - Schedule of Operating Loss Carryforward (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Loss Carryforwards [Line Items] | |
Gross operating loss carryforwards | $ 100,908 |
2022-2027 | |
Operating Loss Carryforwards [Line Items] | |
Gross operating loss carryforwards | 2,228 |
2028-2034 | |
Operating Loss Carryforwards [Line Items] | |
Gross operating loss carryforwards | 0 |
2035-2040 | |
Operating Loss Carryforwards [Line Items] | |
Gross operating loss carryforwards | 1,843 |
Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Gross operating loss carryforwards | $ 96,837 |
Income Taxes - Schedule of Unce
Income Taxes - Schedule of Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 18,665 | $ 18,665 | $ 18,648 |
Additions for tax positions related to the current year | 3 | 3 | 0 |
Reductions for tax positions related to the prior year | (50) | (3) | 17 |
Ending balance | $ 18,618 | $ 18,665 | $ 18,665 |
Other Accrued Liabilities - Sch
Other Accrued Liabilities - Schedule of Accrued Liabilities Related to Restructuring and Others Charges (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Accrued vendor costs | $ 13,359 | $ 10,610 |
Property, sales and other taxes | 5,911 | 6,014 |
Commissions payable | 1,450 | 1,065 |
Payroll taxes | 3,621 | 4,760 |
Accrued restructuring costs | 3,000 | 0 |
Accrued severance | 1,001 | 1,147 |
Accrued Bonus | 5,700 | 0 |
Other | 3,204 | 2,685 |
Total | $ 37,246 | $ 26,281 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |||
Employee benefit plans, contribution expense | $ 1 | $ 2.5 | $ 4.1 |
Asset Backed Loan (ABL) Credi_2
Asset Backed Loan (ABL) Credit Facility (Details) - USD ($) | Feb. 23, 2018 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Expense | $ 200,000 | |
Transfer Of Letter Of Credit | 7,100,000 | |
ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Expense | $ 200,000 | |
ABL Credit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt instrument, term | 5 years | |
Total commitments | $ 100,000,000 | |
Amount available for letters of credit (up to) | $ 10,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - Brazil $ in Millions | 2 Months Ended | 3 Months Ended | ||
Jan. 31, 2011USD ($)Assessment | Mar. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Commitments And Contingencies [Line Items] | ||||
Number of tax assessments | Assessment | 2 | |||
Value of assessments served on Brazilian subsidiary | $ 13 | |||
Court deposit | $ 6 | $ 6 | ||
Subsidiary to settle and pay off taxes | $ 2.1 |
Geographic Segments - Schedule
Geographic Segments - Schedule of Segment Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 322,945 | $ 364,973 | $ 414,806 |
Depreciation and amortization | 30,381 | 32,389 | 34,020 |
Income (loss) before taxes | (125,050) | (62,049) | 10,429 |
Total long-lived assets | 264,877 | 287,979 | |
Total assets | 1,010,426 | 1,151,172 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 30,381 | 32,389 | 34,020 |
Income (loss) before taxes | (125,050) | 62,049 | (10,429) |
Intercompany | |||
Segment Reporting Information [Line Items] | |||
Revenues | 25,187 | 28,474 | 19,915 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 3,688 | 3,727 | 3,082 |
Income (loss) before taxes | (102,379) | (74,321) | (64,800) |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (25,187) | (28,474) | (19,915) |
Total long-lived assets | (353,536) | (353,939) | |
Total assets | (665,606) | (584,432) | |
Products | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 213,760 | 258,834 | 303,279 |
Products | Operating Segments | Transferred at Point in Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 143,770 | 137,521 | 218,330 |
Products | Operating Segments | Transferred Over Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 69,990 | 121,313 | 84,949 |
Technical Advisory | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 61,641 | 55,292 | 56,431 |
Reconditioning | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 12,502 | 20,285 | 15,587 |
Total Services (excluding Leasing) | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 74,143 | 75,577 | 72,018 |
Leasing | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 35,042 | 30,562 | 39,509 |
Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 109,185 | 106,139 | 111,527 |
Western Hemisphere | |||
Segment Reporting Information [Line Items] | |||
Revenues | 227,317 | 228,350 | 239,820 |
Western Hemisphere | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 17,889 | 19,716 | 21,737 |
Income (loss) before taxes | (32,033) | 3,067 | 19,882 |
Total long-lived assets | 335,760 | 350,577 | |
Total assets | 686,361 | 769,649 | |
Western Hemisphere | Intercompany | |||
Segment Reporting Information [Line Items] | |||
Revenues | 14,084 | 13,015 | 12,856 |
Western Hemisphere | Products | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 146,609 | 151,351 | 162,067 |
Western Hemisphere | Products | Operating Segments | Transferred at Point in Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 99,051 | 79,433 | 108,006 |
Western Hemisphere | Products | Operating Segments | Transferred Over Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 47,558 | 71,918 | 54,061 |
Western Hemisphere | Technical Advisory | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 36,897 | 33,431 | 31,962 |
Western Hemisphere | Reconditioning | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 8,783 | 12,105 | 10,733 |
Western Hemisphere | Total Services (excluding Leasing) | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 45,680 | 45,536 | 42,695 |
Western Hemisphere | Leasing | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 20,944 | 18,448 | 22,202 |
Western Hemisphere | Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 66,624 | 63,984 | 64,897 |
Eastern Hemisphere | |||
Segment Reporting Information [Line Items] | |||
Revenues | 53,206 | 80,355 | 118,184 |
Eastern Hemisphere | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 4,027 | 3,820 | 4,163 |
Income (loss) before taxes | 4,502 | 3,284 | 28,045 |
Total long-lived assets | 224,345 | 222,741 | |
Total assets | 805,574 | 779,147 | |
Eastern Hemisphere | Intercompany | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,056 | 2,375 | 1,267 |
Eastern Hemisphere | Products | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 34,912 | 56,038 | 86,057 |
Eastern Hemisphere | Products | Operating Segments | Transferred at Point in Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 21,188 | 30,191 | 65,416 |
Eastern Hemisphere | Products | Operating Segments | Transferred Over Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 13,724 | 25,847 | 20,641 |
Eastern Hemisphere | Technical Advisory | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,920 | 9,489 | 15,100 |
Eastern Hemisphere | Reconditioning | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,348 | 4,843 | 3,409 |
Eastern Hemisphere | Total Services (excluding Leasing) | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 10,268 | 14,332 | 18,509 |
Eastern Hemisphere | Leasing | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,970 | 7,610 | 12,351 |
Eastern Hemisphere | Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 16,238 | 21,942 | 30,860 |
Asia-Pacific | |||
Segment Reporting Information [Line Items] | |||
Revenues | 67,609 | 84,742 | 76,717 |
Asia-Pacific | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 4,777 | 5,126 | 5,038 |
Income (loss) before taxes | 4,860 | 5,921 | 27,302 |
Total long-lived assets | 58,308 | 68,600 | |
Total assets | 184,097 | 186,808 | |
Asia-Pacific | Intercompany | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9,047 | 13,084 | 5,792 |
Asia-Pacific | Products | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 32,239 | 51,445 | 55,155 |
Asia-Pacific | Products | Operating Segments | Transferred at Point in Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 23,531 | 27,897 | 44,908 |
Asia-Pacific | Products | Operating Segments | Transferred Over Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 8,708 | 23,548 | 10,247 |
Asia-Pacific | Technical Advisory | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 16,824 | 12,372 | 9,369 |
Asia-Pacific | Reconditioning | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,371 | 3,337 | 1,445 |
Asia-Pacific | Total Services (excluding Leasing) | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 18,195 | 15,709 | 10,814 |
Asia-Pacific | Leasing | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 8,128 | 4,504 | 4,956 |
Asia-Pacific | Services | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 26,323 | $ 20,213 | $ 15,770 |
Geographic Segments - Additiona
Geographic Segments - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)LocationSegment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Concentration Risk [Line Items] | ||||
Inventory write-down | $ 66,910,000 | $ 17,272,000 | $ 0 | |
Impairment of inventory and long-lived assets | 25,500,000 | |||
Goodwill impairment loss | $ 7,700,000 | |||
Number of geographic segments | Segment | 3 | |||
Number of headquarter locations | Location | 3 | |||
Operating Segments | ||||
Concentration Risk [Line Items] | ||||
Inventory write-down | $ 66,900,000 | |||
Eastern Hemisphere | ||||
Concentration Risk [Line Items] | ||||
Inventory write-down | 9,700,000 | |||
Impairment of inventory and long-lived assets | 22,300,000 | |||
Goodwill impairment loss | $ 7,700,000 | |||
Western Hemisphere | ||||
Concentration Risk [Line Items] | ||||
Inventory write-down | 44,200,000 | |||
Impairment of inventory and long-lived assets | $ 3,200,000 | |||
Asia Pacific | ||||
Concentration Risk [Line Items] | ||||
Inventory write-down | 13,000,000 | |||
Impairment of inventory and long-lived assets | $ 4,200 |
Stock Repurchase Plan - Additio
Stock Repurchase Plan - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 22, 2022 | Feb. 26, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchased authorized amount | $ 100,000 | ||||
Stock repurchased and canceled | $ (24,191) | $ (25,000) | $ (26,570) | ||
2019 Stock Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchased authorized amount | $ 100,000 | ||||
Stock repurchased and canceled (in shares) | 1,109,187 | 808,389 | 615,940 | ||
Average price per share | $ 21.79 | $ 30.91 | $ 43.12 | ||
Stock repurchased and canceled | $ 24,200 | $ 25,000 | $ 26,600 |
Stock-Based Compensation and _3
Stock-Based Compensation and Stock Awards - Stock Options - Additional Information (Details) | May 12, 2021shares | May 13, 2004shares | Dec. 31, 2021shares | Dec. 31, 2020shares | Dec. 31, 2019shares | May 12, 2017shares |
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Antidilutive securities (in shares) | 46,000 | 109,000 | 185,000 | |||
2004 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cumulative annual increments of the total number of shares | 0.25 | |||||
Outstanding options, expiration date | Oct. 28, 2021 | |||||
2004 Plan | Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved (up to) (in shares) | 2,696,294 | |||||
Options granted period | 10 years | |||||
2017 Plan | Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock reserved (up to) (in shares) | 1,500,000 | |||||
Increase in common stock shares reserved | 1,900,000 | |||||
Granted (in shares) | 0 |
Stock-Based Compensation and _4
Stock-Based Compensation and Stock Awards - Restricted Stock Awards - Additional Information (Details) - Restricted stock awards - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards compensation expense | $ 8 | $ 7.5 | $ 8.6 |
Income tax benefit recognized | 1.3 | $ 1.1 | $ 2 |
Unrecognized compensation expense related to share based compensation | $ 5.9 | ||
Period of recognition for unrecognized compensation expense related to nonvested stock options (in years) | 2 years 10 months 24 days | ||
Antidilutive securities (in shares) | 485,047 | 352,000 | 46,000 |
Stock-Based Compensation and _5
Stock-Based Compensation and Stock Awards - Summary of RSA Activity (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Restricted Stock | |
Unvested options, Beginning Balance (in shares) | shares | 480,776 |
Granted (in shares) | shares | 276,783 |
Vested (in shares) | shares | (265,840) |
Forfeited (in shares) | shares | (26,684) |
Unvested options, Ending Balance (in shares) | shares | 465,035 |
Weighted Average Remaining Contractual Life (in years) | |
Unvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 30.20 |
Granted (in dollars per share) | $ / shares | 23.96 |
Vested (in dollars per share) | $ / shares | 32.21 |
Forfeited (in dollars per share) | $ / shares | 27.78 |
Unvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 25.48 |
Stock-Based Compensation and _6
Stock-Based Compensation and Stock Awards - Performance Unit Awards - Additional Information (Details) - Performance Unit Awards $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021USD ($)Component$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Oct. 28, 2021$ / shares | Oct. 28, 2020$ / shares | Oct. 28, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price (in dollars per share) | $ / shares | $ 23.54 | $ 23.86 | $ 44.53 | $ 29.88 | $ 32.05 | $ 48.47 |
Percentage of grant share price (as a percentage) | 126.90% | 134.30% | 108.90% | |||
Number of components companies in the Philadelphia Oil Service Index | Component | 15 | |||||
Performance unit compensation expense | $ 5.5 | $ 4 | $ 9.6 | |||
Income tax benefit recognized | 0.7 | $ 0.8 | $ 1.9 | |||
Unrecognized compensation expense related to share based compensation | $ 5 | |||||
Period of recognition for unrecognized compensation expense related to nonvested stock options (in years) | 2 years 2 months 12 days | |||||
Anti-dilutive performance share units (in shares) | shares | 324,781 | 349,000 | 15,000 | |||
Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Participants earning under the term (as a percentage) | 0.00% | |||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Participants earning under the term (as a percentage) | 200.00% |
Stock-Based Compensation and _7
Stock-Based Compensation and Stock Awards - Schedule of Assumptions Used in Monte Carlo Simulation (Details) - Performance Unit Awards - $ / shares | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 28, 2021 | Oct. 28, 2020 | Oct. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Volatility (as a percentage) | 56.10% | 50.90% | 38.80% | |||
Risk-free interest rate (as a percentage) | 0.80% | 0.20% | 1.70% | |||
Grant date price (in dollars per share) | $ 23.54 | $ 23.86 | $ 44.53 | $ 29.88 | $ 32.05 | $ 48.47 |
Stock-Based Compensation and _8
Stock-Based Compensation and Stock Awards - Summary of PSA Activity (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Restricted Stock | |
Unvested options, Beginning Balance (in shares) | shares | 480,776 |
Granted (in shares) | shares | 276,783 |
Vested (in shares) | shares | (265,840) |
Forfeited (in shares) | shares | (26,684) |
Unvested options, Ending Balance (in shares) | shares | 465,035 |
Weighted Average Remaining Contractual Life (in years) | |
Unvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 30.20 |
Granted (in dollars per share) | $ / shares | 23.96 |
Vested (in dollars per share) | $ / shares | 32.21 |
Forfeited (in dollars per share) | $ / shares | 27.78 |
Unvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 25.48 |
Performance Unit Awards | |
Restricted Stock | |
Unvested options, Beginning Balance (in shares) | shares | 330,967 |
Granted (in shares) | shares | 96,111 |
Vested (in shares) | shares | (166,693) |
Forfeited (in shares) | shares | (36,011) |
Unvested options, Ending Balance (in shares) | shares | 224,374 |
Weighted Average Remaining Contractual Life (in years) | |
Unvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 42.10 |
Granted (in dollars per share) | $ / shares | 29.88 |
Vested (in dollars per share) | $ / shares | 45.52 |
Forfeited (in dollars per share) | $ / shares | 38.92 |
Unvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 34.83 |
Stock-Based Compensation and _9
Stock-Based Compensation and Stock Awards - Director Stock Compensation Awards - Additional Information (Details) - DSA - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fees in lieu of cash (equal to) (as a percentage) | 125.00% | |||
Director stock compensation awards expense | $ 1,396,356 | $ 1,464,590 | $ 782,125 | |
Income tax benefit recognized | 230,971 | $ 208,106 | $ 58,901 | |
Unrecognized compensation expense related to share based compensation | $ 1,030,916 | |||
Period of recognition for unrecognized compensation expense related to nonvested stock options (in years) | 1 year | |||
Antidilutive securities (in shares) | 62,363 |
Stock-Based Compensation and_10
Stock-Based Compensation and Stock Awards - Schedule of DSA Activity (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Restricted Stock | |
Unvested options, Beginning Balance (in shares) | shares | 480,776 |
Granted (in shares) | shares | 276,783 |
Vested (in shares) | shares | (265,840) |
Unvested options, Ending Balance (in shares) | shares | 465,035 |
Weighted Average Remaining Contractual Life (in years) | |
Unvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 30.20 |
Granted (in dollars per share) | $ / shares | 23.96 |
Vested (in dollars per share) | $ / shares | 32.21 |
Unvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 25.48 |
DSA | |
Restricted Stock | |
Unvested options, Beginning Balance (in shares) | shares | 62,196 |
Granted (in shares) | shares | 52,455 |
Vested (in shares) | shares | (43,865) |
Unvested options, Ending Balance (in shares) | shares | 70,786 |
Weighted Average Remaining Contractual Life (in years) | |
Unvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 30.18 |
Granted (in dollars per share) | $ / shares | 25.61 |
Vested (in dollars per share) | $ / shares | 29.94 |
Unvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 26.94 |
Stock-Based Compensation and_11
Stock-Based Compensation and Stock Awards - Schedule of Information for Stock Option Plans (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 224,374 | |
Weighted- average exercise price of outstanding options, warrants and rights (in dollars per shares) | $ 34.83 | |
Number of securities remaining available for future issuance under equity compensation plan (in shares) | 1,549,243 | |
Unvested stock and units (in shares) | 465,035 | 480,776 |
Percentage of achievement of performance conditions | 100.00% | |
Stock options | Stock options(Approved) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 224,374 | |
Weighted- average exercise price of outstanding options, warrants and rights (in dollars per shares) | $ 34.83 | |
Number of securities remaining available for future issuance under equity compensation plan (in shares) | 1,549,243 | |
RSA and DSA | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units (in shares) | 535,821 | |
Performance Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units (in shares) | 224,374 | 330,967 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net income (loss) | $ (127,996) | $ (30,768) | $ 1,720 |
Weighted average basic common shares outstanding | 35,331 | 35,260 | 35,839 |
Effect of dilutive securities - stock options and awards | 0 | 0 | 313 |
Total shares and dilutive securities | 35,331 | 35,260 | 36,152 |
Basic income (loss) per common share | $ (3.62) | $ (0.87) | $ 0.05 |
Diluted income (loss) per common share | $ (3.62) | $ (0.87) | $ 0.05 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Director stock awards | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 62,000 | 49,000 | 6,000 |
Stock options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 46,000 | 109,000 | 185,000 |
Performance Unit Awards | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 324,781 | 349,000 | 15,000 |
Restricted stock awards | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 485,047 | 352,000 | 46,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Millions | Feb. 22, 2022 | Dec. 31, 2021 |
Subsequent Events [Abstract] | ||
Unamortized Debt Issuance Expense | $ 0.2 | |
Transfer Of Letter Of Credit | $ 7.1 | |
Stock Repurchase Program, Authorized Amount | $ 100 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 118 |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful trade receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 2,155 | $ 2,214 | $ 5,666 |
Charges to costs and expenses | 3,933 | 1,876 | 617 |
Recoveries and write offs | (841) | (1,935) | (4,069) |
Balance at end of period | 5,247 | 2,155 | 2,214 |
Allowance for slow moving and excess inventory | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 82,149 | 71,020 | 108,567 |
Charges to costs and expenses | 61,905 | 15,595 | 1,032 |
Recoveries and write offs | (15,073) | (4,466) | (38,579) |
Balance at end of period | $ 128,981 | $ 82,149 | $ 71,020 |