Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 24, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | DRIL-QUIP, INC. | |
Entity Central Index Key | 0001042893 | |
Trading Symbol | DRQ | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock Shares Outstanding | 33,919,726 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-13439 | |
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 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of each class | Common Stock, $0.01 par value per share | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 290,279 | $ 355,451 |
Short term investments | 25,287 | 0 |
Trade receivables, net | 81,666 | 100,987 |
Unbilled receivables | 138,533 | 102,597 |
Inventories, net | 140,530 | 145,724 |
Prepaids and other current assets | 49,457 | 40,790 |
Total | 20,006 | 0 |
Total current assets | 745,758 | 745,549 |
Operating lease right of use assets | 4,932 | 5,258 |
Property, plant and equipment, net | 181,359 | 216,200 |
Deferred income taxes | 8,893 | 11,381 |
Intangible assets | 23,868 | 26,446 |
Other assets | 5,714 | 5,592 |
Total assets | 970,524 | 1,010,426 |
Current liabilities: | ||
Accounts payable | 46,484 | 35,232 |
Accrued income taxes | 2,106 | 4,102 |
Contract liabilities | 8,859 | 9,746 |
Accrued compensation | 8,420 | 6,291 |
Operating lease liabilities | 1,007 | 1,046 |
Other accrued liabilities | 22,411 | 37,246 |
Total current liabilities | 89,287 | 93,663 |
Deferred income taxes | 3,918 | 3,925 |
Income tax payable | 6,501 | 9,627 |
Operating lease liabilities, long-term | 3,817 | 4,170 |
Other long-term liabilities | 2,164 | 1,933 |
Total liabilities | 105,687 | 113,318 |
Contingencies (Note 12) | ||
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, 33,919,726 and 34,774,156 shares issued and outstanding at September 30, 2022 and December 31, 2021 | 343 | 352 |
Additional paid-in capital | 87,917 | 80,254 |
Retained earnings | 952,991 | 973,087 |
Accumulated other comprehensive losses | (176,414) | (156,585) |
Total stockholders' equity | 864,837 | 897,108 |
Total liabilities and stockholders' equity | $ 970,524 | $ 1,010,426 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
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) | 33,919,726 | 34,774,156 |
Common stock, shares outstanding (in shares) | 33,919,726 | 34,774,156 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues: | ||||
Revenues from products and services | $ 78,951 | $ 73,182 | $ 233,667 | $ 219,829 |
Total revenues | 88,141 | 82,997 | 265,256 | 245,033 |
Cost of sales: | ||||
Total cost of sales | 65,710 | 62,834 | 199,368 | 181,159 |
Selling, general and administrative | 22,431 | 25,265 | 67,322 | 84,416 |
Engineering and product development | 2,645 | 3,510 | 9,041 | 11,270 |
Restructuring and other charges | 2,180 | 0 | 7,977 | 26,020 |
(Gain) loss on sale of property, plant and equipment | (17,276) | (13) | (17,770) | (3,886) |
Foreign currency transaction gains | (1,901) | (1,663) | (5,574) | (764) |
Total costs and expenses | 73,789 | 89,933 | 260,364 | 298,215 |
Operating income (loss) | 14,352 | (6,936) | 4,892 | (53,182) |
Interest income | 379 | 188 | 1,155 | 300 |
Interest expense | (131) | (94) | (284) | (592) |
Income (loss) before income taxes | 14,600 | (6,842) | 5,763 | (53,474) |
Income tax provision (benefit) | (610) | 4,301 | 5,061 | 11,094 |
Net income (loss) | $ 15,210 | $ (11,143) | $ 702 | $ (64,568) |
Loss per common share: | ||||
Basic (in dollars per share) | $ 0.45 | $ (0.31) | $ 0.02 | $ (1.82) |
Diluted (in dollars per share) | $ 0.44 | $ (0.31) | $ 0.02 | $ (1.82) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 33,948 | 35,387 | 34,304 | 35,386 |
Diluted (in shares) | 34,232 | 35,387 | 34,580 | 35,386 |
Products | ||||
Revenues: | ||||
Revenues from products and services | $ 58,508 | $ 53,622 | $ 176,129 | $ 165,066 |
Cost of sales: | ||||
Total cost of sales | 49,714 | 48,120 | 151,932 | 133,243 |
Services | ||||
Revenues: | ||||
Revenues from products and services | 20,443 | 19,560 | 57,538 | 54,763 |
Cost of sales: | ||||
Total cost of sales | 8,105 | 7,020 | 24,773 | 24,687 |
Leasing | ||||
Revenues: | ||||
Leasing | 9,190 | 9,815 | 31,589 | 25,204 |
Cost of sales: | ||||
Total cost of sales | $ 7,891 | $ 7,694 | $ 22,663 | $ 23,229 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 15,210 | $ (11,143) | $ 702 | $ (64,568) |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustments | (10,487) | (6,548) | (19,829) | (5,592) |
Total comprehensive loss | $ 4,723 | $ (17,691) | $ (19,127) | $ (70,160) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating activities | ||
Net income (loss) | $ 702 | $ (64,568) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 22,352 | 22,658 |
Stock-based compensation expense | 7,669 | 9,541 |
Restructuring and other charges | 6,119 | 22,465 |
Gain on sale of property, plant and equipment | (17,770) | (3,886) |
Deferred income taxes | 1,538 | (993) |
Changes in operating assets and liabilities: | ||
Trade receivables, net | 16,980 | 11,632 |
Unbilled receivables | (38,097) | 25,961 |
Inventories, net | 2,255 | (6,680) |
Prepaids and other assets | (10,775) | 14,706 |
Accounts payable and accrued expenses | (10,124) | 2,902 |
Other, net | (16) | 0 |
Net cash provided by (used in) operating activities | (19,167) | 33,738 |
Investing activities | ||
Purchase of property, plant and equipment | (13,712) | (7,928) |
Proceeds from sale of property, plant and equipment | 18,535 | 5,967 |
Purchase of short-term investments | (25,287) | 0 |
Net cash used in investing activities | (20,464) | (1,961) |
Financing activities | ||
Repurchase of common shares | (20,807) | (1,132) |
Other | (74) | (113) |
Net cash used in financing activities | (20,881) | (1,245) |
Effect of exchange rate changes on cash activities | (4,660) | (1,315) |
Increase (decrease) in cash and cash equivalents | (65,172) | 29,217 |
Cash and cash equivalents at beginning of period | 355,451 | 345,955 |
Cash and cash equivalents at end of period | $ 290,279 | $ 375,172 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Losses |
Beginning 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 | (5,592) | (5,592) | |||
Net income (loss) | (64,568) | (64,568) | |||
Comprehensive income (loss) | (70,160) | ||||
Repurchase of common shares | (1,132) | (1,132) | |||
Stock-based compensation expense | 9,541 | 9,541 | |||
Ending Balance at Sep. 30, 2021 | 979,777 | 363 | 75,154 | 1,059,563 | (155,303) |
Beginning Balance at Jun. 30, 2021 | 995,324 | 363 | 71,878 | 1,071,838 | (148,755) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (6,548) | (6,548) | |||
Net income (loss) | (11,143) | (11,143) | |||
Comprehensive income (loss) | (17,691) | ||||
Repurchase of common shares | (1,132) | (1,132) | |||
Stock-based compensation expense | 3,276 | 3,276 | |||
Ending Balance at Sep. 30, 2021 | 979,777 | 363 | 75,154 | 1,059,563 | (155,303) |
Beginning Balance at Dec. 31, 2021 | 897,108 | 352 | 80,254 | 973,087 | (156,585) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (19,829) | (19,829) | |||
Net income (loss) | 702 | 702 | |||
Comprehensive income (loss) | (19,127) | ||||
Repurchase of common shares | (20,807) | (9) | (20,798) | ||
Stock-based compensation expense | 7,669 | 7,669 | |||
Other | (6) | (6) | |||
Ending Balance at Sep. 30, 2022 | 864,837 | 343 | 87,917 | 952,991 | (176,414) |
Beginning Balance at Jun. 30, 2022 | 868,689 | 348 | 85,351 | 948,917 | (165,927) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (10,487) | (10,487) | |||
Net income (loss) | 15,210 | 15,210 | |||
Comprehensive income (loss) | 4,723 | ||||
Repurchase of common shares | (11,150) | (5) | (11,145) | ||
Stock-based compensation expense | 2,569 | 2,569 | |||
Other | 6 | (3) | 9 | ||
Ending Balance at Sep. 30, 2022 | $ 864,837 | $ 343 | $ 87,917 | $ 952,991 | $ (176,414) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Treasury stock shares (in shares) | 457,467 | 45,225 | 888,197 | 45,225 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation 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. The condensed consolidated financial statements included herein are unaudited. The balance sheet at December 31, 2021 has been derived from the audited consolidated financial statements as of that date. In the opinion of management, the unaudited condensed consolidated interim financial statements include all normal recurring adjustments necessary for a fair statement of the financial position as of September 30, 2022 and the results of operations and comprehensive income (loss) for the three and nine months ended September 30, 2022 and 2021 and cash flows for the nine months ended September 30, 2022 and 2021. Certain information and footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The results of operations and comprehensive income (loss) for the three and nine months ended September 30, 2022 and cash flows for the nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year. The condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 . |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. 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 as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition and asset recoverability tests and inventories . Revenue Recognition The Company generates revenues through the sale of products, the sale of services and the leasing of running tools. The Company normally negotiates contracts for products, including those accounted for under the over-time method, rental tools and services separately. Modifications to the scope and price of sales contracts may occur in the form of variations and change orders. 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 instead choose to use a third party or its own personnel. Leasing Revenues The Company earns leasing revenues from the rental of running tools. Revenues from rental of running tools are recognized 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. As a result of the lease termination, the Company had approximately $ 2.3 million in unbilled revenue that was expensed in second quarter of 2021. Leasing revenue from renting this facility that was not recognized due to the termination of the lease agreement was approximately $ 0.5 million and $ 1.5 million for the three and nine months ended September 30, 2021, respectively. The Company has numerous other forging suppliers and, through the end of the third quarter of 2022, has not experienced any disruptions in forging supply as a result of the lease termination. Short-term Investments Short-term investments are comprised primarily of time deposits, certificates of deposit, commercial paper, bonds and notes, substantially all of which are denominated in U.S. dollars and are stated at cost plus accrued interest, which approximates fair value. The Company expects to hold all of its Short-term investments to maturity. For purposes of the Consolidated Financial Statements, the Company does not consider Short-term investments to be cash equivalents. 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. Impairment of Long-Lived Assets Long-lived assets, including property, plant and equipment and definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We evaluate our property and equipment and definite-lived intangible assets for impairment whenever changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Should the review indicate that the carrying value is not fully recoverable, the amount of the impairment loss is determined by comparing the carrying value to the estimated fair value. We assess recoverability based on undiscounted future net cash flows. Estimating future net cash flows requires us to make judgements regarding long-term forecasts of future revenues and costs related to the assets subject to review. These forecasts are uncertain in that they require assumptions about our revenue growth, operating margins, capital expenditures, future market conditions and technological developments. If changes in these assumptions occur, our expectations regarding future net cash flows may change such that a material impairment could result. Restructuring and Other Charges During the third quarter of 2022, the Company incurred $ 2.2 million of additional costs under the 2021 global strategic plan. These charges were primarily related to consulting and legal fees, office moves and site cleanup, and preparation costs. During the first half of 2021, the Company incurred additional costs under the former 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. The Company did not incur any additional costs in the third quarter of 2021. T hese charges are reflected as "Restructuring and other charges" in our condensed consolidated statements of income (loss). Repurchase of Equity Securities On February 22, 2022, the Board of Directors authorized an incremental $ 100.0 million share repurchase plan. The repurchase plans have no set expiration date and any repurchased shares are expected to be cancelled. The manner, timing and amount of any purchase will be determined by management based on an evaluation of market conditions, stock price, liquidity and other factors. The program does not obligate the Company to acquire any amount of common stock and may be modified or superseded at any time at the Company’s discretion. For the three months ended September 30, 2022, the Company purchased 457,467 shares under the share repurchase plans at an average price of approximately $ 24.35 per share totaling approximately $ 11.1 million and has retired such shares. For the nine months ended September 30, 2022, the Company purchased 888,197 shares under the share repurchase plans at an average price of approximately $ 23.41 per share totaling approximately $ 20.8 million and has retired such shares. For the three and nine months ended September 30, 2021, the Company purchased 45,225 shares under the share repurchase plan at an average price of approximately $ 25.02 per share totaling approximately $ 1.1 million and has retired such shares. Earnings Per Share Basic earnings per common share is computed by dividing net income (loss) 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 awards using the treasury stock method. In each relevant period, the net income (loss) used in the basic and dilutive earnings per share calculations is the same. The following table reconciles the weighted average basic number of common shares outstanding and the weighted average diluted number of common shares outstanding for the purpose of calculating basic and diluted earnings per share: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Weighted average common shares outstanding – basic 33,948 35,387 34,304 35,386 Dilutive effect of common stock awards 284 - 276 - Weighted average common shares outstanding – diluted 34,232 35,387 34,580 35,386 For the three and nine months ended September 30, 2022 and 2021, the Company has excluded the following common stock options and awards because their impact on the income/(loss) per share is anti-dilutive (in thousands on a weighted average basis): Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Director stock awards 1 63 - 60 Stock options - 54 - 56 Performance share units - 323 - 328 Restricted stock awards 2 477 1 479 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Revenues from contracts with customers (excludes leasing) consisted of the following: Three months ended September 30, Western Eastern Asia- Total 2022 2021 2022 2021 2022 2021 2022 2021 (In thousands) Product Revenues $ 36,242 $ 37,612 $ 12,150 $ 10,217 $ 10,116 $ 5,793 $ 58,508 $ 53,622 Service Revenues 14,416 12,872 3,980 2,458 2,047 4,230 20,443 19,560 Total $ 50,658 $ 50,484 $ 16,130 $ 12,675 $ 12,163 $ 10,023 $ 78,951 $ 73,182 Nine months ended September 30, Western Eastern Asia- Total 2022 2021 2022 2021 2022 2021 2022 2021 (In thousands) Product Revenues $ 116,768 $ 112,787 $ 36,103 $ 25,505 $ 23,258 $ 26,774 $ 176,129 $ 165,066 Service Revenues 39,067 33,813 10,507 7,748 7,964 13,202 57,538 54,763 Total $ 155,835 $ 146,600 $ 46,610 $ 33,253 $ 31,222 $ 39,976 $ 233,667 $ 219,829 Contract Balances Balances related to contracts with customers consisted of the following: Contract Assets (amounts shown in thousands) Contract Assets at December 31, 2021 $ 97,716 Additions 108,136 Transfers to Trade Receivables, Net ( 71,733 ) Contract Assets at September 30, 2022 $ 134,119 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2021 $ 9,222 Additions 1,698 Revenue Recognized ( 3,411 ) Contract Liabilities at September 30, 2022 $ 7,509 Contract assets include unbilled accounts receivable associated with contracts accounted for under the over-time accounting method which were approximately $ 90.8 million and $ 58.7 million at September 30, 2022 and December 31, 2021, respectively. Unbilled contract assets are transferred to trade receivables, net, when the rights become unconditional. Contract liabilities primarily relate to advance payments from customers. Obligations for returns and refunds were considered immaterial as of September 30, 2022. Remaining Performance Obligations The aggregate amount of the transaction price allocated to remaining performance obligations from our over-time product lines was $ 63.2 million as of September 30, 2022. The Company expects to recognize revenue on approximately 92.7 % of the remaining performance obligations over the next 12 months and the remaining 7.3 % thereafter . The Company applies the practical expedient available under the revenue standard and does not disclose information about remaining performance obligations that have original expected durations of one year or less. |
Stock-Based Compensation and St
Stock-Based Compensation and Stock Awards | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation and Stock Awards | 4. Stock-Based Compensation and Stock Awards During the three and nine months ended September 30, 2022, the Company recognized approximately $ 2.6 million and $ 7.7 million of stock-based compensation expense. Stock-based compensation is included in "Selling, general and administrative" in our accompanying condensed consolidated statements of income (loss) and "Additional paid-in capital" in our accompanying condensed consolidated balance sheets. During the three and nine months ended September 30, 2021, the Company recognized approximately $ 3.3 million and $ 9.5 million of stock-based compensation expense. |
Inventories, net
Inventories, net | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 5. Inventories, net Inventories consist of the following: September 30, December 31, 2022 2021 (In thousands) Raw materials and supplies $ 25,778 $ 27,398 Work in progress 30,814 28,361 Finished goods 173,197 218,946 229,789 274,705 Less: allowance for slow moving and excess inventory ( 89,259 ) ( 128,981 ) Total inventory $ 140,530 $ 145,724 |
Assets Held For Sale
Assets Held For Sale | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | 6. Assets Held for Sale In the second quarter of 2022, the Company actively marketed for sale its corporate administrative building, forge facilities and aftermarket facilities in connection with the consolidation of its operations into a smaller footprint at its campus in Houston, Texas. In September 2022, we sold our forge facility for approximately $ 18.9 million. The Company expects to sell the remaining two facilities within a year. In accordance with the applicable accounting guidance, FASB ASC 360-10-45-9, the Company reclassified the buildings' net carrying amount from Property, plant and equipment, net, to Assets held for sale on the Condensed Consolidated Balance Sheets at September 30, 2022. Of the $ 20.0 million classified as Assets Held for Sale, $ 11.5 million was held in DQ Corporate and $ 8.6 million in the Western Hemisphere. We wrote down approximately $ 2.6 million in the nine months ended September 30, 2022 to reflect the net carrying amount of the corporate administrative building assets to their estimated fair value, less estimated costs to sell the building. The long-lived asset write-downs are included in the Restructuring and Other Charges line item of the Condensed Consolidated Statements of Income (Loss) for the nine months ended period ended September 30, 2022 . No long-lived asset write downs were recorded in the three and nine-month period ended September 30, 2021 . |
Impairment, Restructuring and O
Impairment, Restructuring and Other Charges | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Impairment, Restructuring and Other Charges | 7. Impairment, Restructuring and Other Charges Restructuring and Other Charges During the three and nine months ended September 30, 2022, the Company incurred additional costs of approximately $ 2.2 million and $ 8.0 million, respectively, under the 2021 global strategic plan. The year-to-date charges were primarily related to the write-downs of long-lived assets and other charges of approximately $ 5.1 million and $ 2.9 million, respectively. Other charges consisted of office moves, site cleanup, preparation costs, consulting and legal fees. During the nine months ended September 30, 2021, the Company incurred additional costs under the former 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. The Company did not incur any additional costs during the three months ended September 30, 2021. The following table summarizes the components of charges included in "Restructuring and other charges" in our condensed consolidated statements of income (loss) for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Inventory write-down $ - $ - $ - $ 19,251 Severance - - 32 2,745 Long-lived asset write-down - - 5,055 - Other 2,180 - 2,890 4,024 $ 2,180 $ - $ 7,977 $ 26,020 The following table summarizes the changes to our accrued liability balance related to restructuring and other charges as of September 30, 2022 (in thousands): Total Beginning balance at January 1, 2022 $ 4,000 Additions for costs expensed 2,901 Reductions for payments ( 3,347 ) Other 4 Ending balance at September 30, 2022 $ 3,558 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. Intangible Assets Intangible assets, the majority of which were acquired in the acquisition of TIW and OPT, consist of the following: September 30, 2022 Estimated Gross Accumulated Foreign Net Book (In thousands) Trademarks 15 years $ 8,202 $ ( 1,963 ) $ ( 107 ) $ 6,132 Patents 15 - 30 years 6,049 ( 3,587 ) ( 1 ) 2,461 Customer relationships 5 - 15 years 26,002 ( 10,407 ) ( 370 ) 15,225 Organizational costs 3 years 183 ( 112 ) ( 21 ) 50 $ 40,436 $ ( 16,069 ) $ ( 499 ) $ 23,868 December 31, 2021 Estimated Gross Accumulated Foreign Net Book (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 |
Asset Backed Loan (ABL) Credit
Asset Backed Loan (ABL) Credit Facility | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Asset Backed Loan (ABL) Credit Facility | 9. Credit Facility The Company's ABL Credit Facility, dated February 23, 2018, as amended, was terminated effective February 22, 2022. In addition, we opened a new cash collateral account with JPMorgan Chase Bank, N.A., in which cash was transferred to facilitate our existing letters of credit. As of September 30, 2022 , the cash balance in that account was approximately $ 5.4 million. The Company is required to maintain a balance equal to the outstanding letters of credit plus 5% at all times , which is considered as restricted cash and is included in "C ash and cash equivalents" in our condensed consolidated balance sheets as at September 30, 2022 and December 31, 2021 . Withdrawals from this cash collateral account are only allowed at such point that a given letter of credit has expired or has been cancelled. |
Geographic Areas
Geographic Areas | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Geographic Areas | 10. Geographic Areas 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. Three months ended September 30, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 (In thousands) Revenues Products Point in Time $ 17,355 $ 22,692 $ 3,992 $ 6,276 $ 4,628 $ 3,953 $ - $ - $ 25,975 $ 32,921 Over-Time 18,887 14,920 8,158 3,941 5,488 1,840 - - 32,533 20,701 Total Products 36,242 37,612 12,150 10,217 10,116 5,793 - - 58,508 53,622 Services Technical Advisory 9,899 10,814 3,303 2,038 1,131 3,629 - - 14,333 16,481 Reconditioning 4,517 2,058 677 420 916 601 - - 6,110 3,079 Total Services 14,416 12,872 3,980 2,458 2,047 4,230 - - 20,443 19,560 Leasing 5,310 6,627 3,588 1,564 292 1,624 - - 9,190 9,815 Total Services 19,726 19,499 7,568 4,022 2,339 5,854 - - 29,633 29,375 Intercompany 1,352 4,029 120 920 1,518 576 - 2,990 5,525 Eliminations - - - - - - ( 2,990 ) ( 5,525 ) ( 2,990 ) ( 5,525 ) Total Revenues $ 57,320 $ 61,140 $ 19,838 $ 15,159 $ 13,973 $ 12,223 $ ( 2,990 ) $ ( 5,525 ) $ 88,141 $ 82,997 Depreciation and amortization $ 4,257 $ 4,736 $ 997 $ 1,044 $ 965 $ 1,194 $ 904 $ 925 $ 7,123 $ 7,899 Income (loss) before income taxes $ 25,135 $ 8,417 $ 5,578 $ ( 1,273 ) $ ( 562 ) $ 2,002 $ ( 15,551 ) $ ( 15,988 ) $ 14,600 $ ( 6,842 ) During the three months ended September 30, 2022, the Company incurred additional $ 2.2 million costs under the 2021 global strategic plan. These charges were primarily related to office moves, site cleanup, preparation costs, consulting and legal fees at DQ Corporate. During the three months ended September 30, 2021, the Company did not incur any restructuring and other charges. Nine months ended September 30, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 (In thousands) Revenues Products Point in Time $ 57,861 $ 76,927 $ 11,089 $ 17,086 $ 15,746 $ 19,420 $ - $ - $ 84,696 $ 113,433 Over-Time 58,907 35,860 25,014 8,419 7,512 7,354 - - 91,433 51,633 Total Products 116,768 112,787 36,103 25,505 23,258 26,774 - - 176,129 165,066 Services Technical Advisory 27,863 26,916 8,594 6,058 6,130 11,603 - - 42,587 44,577 Reconditioning 11,204 6,897 1,913 1,690 1,834 1,599 - - 14,951 10,186 Total Services 39,067 33,813 10,507 7,748 7,964 13,202 - - 57,538 54,763 Leasing 18,937 15,297 8,059 4,635 4,593 5,272 - - 31,589 25,204 Total Services 58,004 49,110 18,566 12,383 12,557 18,474 - - 89,127 79,967 Intercompany 9,558 8,807 2,580 1,558 3,127 8,875 - - 15,265 19,240 Eliminations - - - - - - ( 15,265 ) ( 19,240 ) ( 15,265 ) ( 19,240 ) Total $ 184,330 $ 170,704 $ 57,249 $ 39,446 $ 38,942 $ 54,123 $ ( 15,265 ) $ ( 19,240 ) $ 265,256 $ 245,033 Depreciation and amortization $ 13,486 $ 13,291 $ 3,072 $ 3,021 $ 3,064 $ 3,576 $ 2,730 $ 2,770 $ 22,352 $ 22,658 Income (loss) before income taxes $ 47,780 $ ( 13,136 ) $ 7,935 $ ( 583 ) $ ( 739 ) $ 17,540 $ ( 49,213 ) $ ( 57,295 ) $ 5,763 ( 53,474 ) During the nine months ended September 30, 2022, the Company incurred additional costs under the 2021 global strategic plan. These charges were primarily related to a $ 2.6 million write down of our Houston corporate administrative building in DQ Corporate and other long-lived asset write downs of $ 2.5 million in the Western Hemisphere. In addition, there were other charges of $ 2.9 million primarily related to office moves, site cleanup, preparation costs, consulting and legal fees at DQ Corporate. During the nine months ended September 30, 2021 , we recorded $ 26.0 million of restructuring and other charges. These charges were related to non-cash inventory write downs, severance charges and other charges, primarily consisting of facilities restructuring exit costs and consulting fees. Of these charges, $ 21.0 million was recorded in the Western Hemisphere, $ 1.6 million in the Eastern Hemisphere and $ 3.4 million at DQ Corporate. September 30, December 31, (In thousands) Total long-lived assets: Western Hemisphere $ 304,501 $ 335,760 Eastern Hemisphere 218,909 224,345 Asia-Pacific 55,302 58,308 Eliminations ( 353,946 ) ( 353,536 ) Total $ 224,766 $ 264,877 Total assets: Western Hemisphere $ 856,459 $ 686,361 Eastern Hemisphere 794,465 805,574 Asia-Pacific 180,276 184,097 Eliminations ( 860,676 ) ( 665,606 ) Total $ 970,524 $ 1,010,426 As of September 30, 2022, the Company had recorded a $ 2.6 million write down of our Houston corporate administrative building at DQ Corporate and other long-lived asset write downs of $ 2.5 million in the Western Hemisphere. As of September 30, 2021 , we had $ 19.1 million of non-cash inventory write-downs in the Western Hemisphere and $ 0.2 million in the Eastern Hemisphere as we shifted from the manufacturing of our downhole tools products business to a vendor outsourcing model. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 11. Income Tax The effective tax rate for the three and nine months ended September 30, 2022 was ( 4.2 )% and 87.8 % compared to ( 62.9 )% and ( 20.7 )% , respectively, for the same periods in 2021. The change in the effective tax rate between the periods resulted primarily due to the change in projected earnings mix by geography and tax jurisdiction as compared to the prior period, changes in valuation allowances in the United States, changes in uncertain tax positions, foreign inclusions, changes in nondeductible compensation, and the mix of earnings in jurisdictions with differing tax rates. We have historically considered the majority of undistributed earnings of our foreign subsidiaries and equity investees to be indefinitely reinvested, and, accordingly, no deferred taxes had been provided on the indefinitely reinvested earnings. As of June 30, 2020, the Company reversed its indefinite reinvestment assertion. As a result, we recorded a deferred foreign tax liability, which had a balance of $ 2.5 million as of September 30, 2022 and is primarily related to estimated foreign withholding tax associated with repatriating all non-U.S. earnings back to the United States. The Company is subject to ongoing tax authority examinations in various jurisdictions in which it operates. The Company reviews its accrual for uncertain tax positions at each reporting period and updates positions based on available information. In October 2022, the Company completed and closed an examination. The Company expects to reflect a decrease in its accrual for unrecognized tax benefits resulting from the formal closure of the examination by the taxing authority of $6.2 million in the fourth quarter of 2022. It is still reasonably possible that the Company's existing liabilities for unrecognized tax benefits could change within the next 12 months, due to the progression of other tax authority examinations and the expiration of statutes of limitation. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 12. Contingencies 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 has 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. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. |
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 as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition and asset recoverability tests and inventories |
Revenue Recognition | Revenue Recognition The Company generates revenues through the sale of products, the sale of services and the leasing of running tools. The Company normally negotiates contracts for products, including those accounted for under the over-time method, rental tools and services separately. Modifications to the scope and price of sales contracts may occur in the form of variations and change orders. 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 instead choose to use a third party or its own personnel. Leasing Revenues The Company earns leasing revenues from the rental of running tools. Revenues from rental of running tools are recognized 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. As a result of the lease termination, the Company had approximately $ 2.3 million in unbilled revenue that was expensed in second quarter of 2021. Leasing revenue from renting this facility that was not recognized due to the termination of the lease agreement was approximately $ 0.5 million and $ 1.5 million for the three and nine months ended September 30, 2021, respectively. The Company has numerous other forging suppliers and, through the end of the third quarter of 2022, has not experienced any disruptions in forging supply as a result of the lease termination. Short-term Investments Short-term investments are comprised primarily of time deposits, certificates of deposit, commercial paper, bonds and notes, substantially all of which are denominated in U.S. dollars and are stated at cost plus accrued interest, which approximates fair value. The Company expects to hold all of its Short-term investments to maturity. For purposes of the Consolidated Financial Statements, the Company does not consider Short-term investments to be cash equivalents. |
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. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, including property, plant and equipment and definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We evaluate our property and equipment and definite-lived intangible assets for impairment whenever changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Should the review indicate that the carrying value is not fully recoverable, the amount of the impairment loss is determined by comparing the carrying value to the estimated fair value. We assess recoverability based on undiscounted future net cash flows. Estimating future net cash flows requires us to make judgements regarding long-term forecasts of future revenues and costs related to the assets subject to review. These forecasts are uncertain in that they require assumptions about our revenue growth, operating margins, capital expenditures, future market conditions and technological developments. If changes in these assumptions occur, our expectations regarding future net cash flows may change such that a material impairment could result. |
Restructuring and Other Charges | Restructuring and Other Charges During the third quarter of 2022, the Company incurred $ 2.2 million of additional costs under the 2021 global strategic plan. These charges were primarily related to consulting and legal fees, office moves and site cleanup, and preparation costs. During the first half of 2021, the Company incurred additional costs under the former 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. The Company did not incur any additional costs in the third quarter of 2021. T hese charges are reflected as "Restructuring and other charges" in our condensed consolidated statements of income (loss). |
Repurchase of Equity Securities | Repurchase of Equity Securities On February 22, 2022, the Board of Directors authorized an incremental $ 100.0 million share repurchase plan. The repurchase plans have no set expiration date and any repurchased shares are expected to be cancelled. The manner, timing and amount of any purchase will be determined by management based on an evaluation of market conditions, stock price, liquidity and other factors. The program does not obligate the Company to acquire any amount of common stock and may be modified or superseded at any time at the Company’s discretion. For the three months ended September 30, 2022, the Company purchased 457,467 shares under the share repurchase plans at an average price of approximately $ 24.35 per share totaling approximately $ 11.1 million and has retired such shares. For the nine months ended September 30, 2022, the Company purchased 888,197 shares under the share repurchase plans at an average price of approximately $ 23.41 per share totaling approximately $ 20.8 million and has retired such shares. For the three and nine months ended September 30, 2021, the Company purchased 45,225 shares under the share repurchase plan at an average price of approximately $ 25.02 per share totaling approximately $ 1.1 million and has retired such shares. |
Earnings Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net income (loss) 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 awards using the treasury stock method. In each relevant period, the net income (loss) used in the basic and dilutive earnings per share calculations is the same. The following table reconciles the weighted average basic number of common shares outstanding and the weighted average diluted number of common shares outstanding for the purpose of calculating basic and diluted earnings per share: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Weighted average common shares outstanding – basic 33,948 35,387 34,304 35,386 Dilutive effect of common stock awards 284 - 276 - Weighted average common shares outstanding – diluted 34,232 35,387 34,580 35,386 For the three and nine months ended September 30, 2022 and 2021, the Company has excluded the following common stock options and awards because their impact on the income/(loss) per share is anti-dilutive (in thousands on a weighted average basis): Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Director stock awards 1 63 - 60 Stock options - 54 - 56 Performance share units - 323 - 328 Restricted stock awards 2 477 1 479 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share | The following table reconciles the weighted average basic number of common shares outstanding and the weighted average diluted number of common shares outstanding for the purpose of calculating basic and diluted earnings per share: Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Weighted average common shares outstanding – basic 33,948 35,387 34,304 35,386 Dilutive effect of common stock awards 284 - 276 - Weighted average common shares outstanding – diluted 34,232 35,387 34,580 35,386 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the three and nine months ended September 30, 2022 and 2021, the Company has excluded the following common stock options and awards because their impact on the income/(loss) per share is anti-dilutive (in thousands on a weighted average basis): Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Director stock awards 1 63 - 60 Stock options - 54 - 56 Performance share units - 323 - 328 Restricted stock awards 2 477 1 479 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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: Three months ended September 30, Western Eastern Asia- Total 2022 2021 2022 2021 2022 2021 2022 2021 (In thousands) Product Revenues $ 36,242 $ 37,612 $ 12,150 $ 10,217 $ 10,116 $ 5,793 $ 58,508 $ 53,622 Service Revenues 14,416 12,872 3,980 2,458 2,047 4,230 20,443 19,560 Total $ 50,658 $ 50,484 $ 16,130 $ 12,675 $ 12,163 $ 10,023 $ 78,951 $ 73,182 Nine months ended September 30, Western Eastern Asia- Total 2022 2021 2022 2021 2022 2021 2022 2021 (In thousands) Product Revenues $ 116,768 $ 112,787 $ 36,103 $ 25,505 $ 23,258 $ 26,774 $ 176,129 $ 165,066 Service Revenues 39,067 33,813 10,507 7,748 7,964 13,202 57,538 54,763 Total $ 155,835 $ 146,600 $ 46,610 $ 33,253 $ 31,222 $ 39,976 $ 233,667 $ 219,829 |
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, 2021 $ 97,716 Additions 108,136 Transfers to Trade Receivables, Net ( 71,733 ) Contract Assets at September 30, 2022 $ 134,119 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2021 $ 9,222 Additions 1,698 Revenue Recognized ( 3,411 ) Contract Liabilities at September 30, 2022 $ 7,509 |
Inventories, net (Tables)
Inventories, net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: September 30, December 31, 2022 2021 (In thousands) Raw materials and supplies $ 25,778 $ 27,398 Work in progress 30,814 28,361 Finished goods 173,197 218,946 229,789 274,705 Less: allowance for slow moving and excess inventory ( 89,259 ) ( 128,981 ) Total inventory $ 140,530 $ 145,724 |
Impairment, Restructuring and_2
Impairment, Restructuring and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Impairment, Restructuring and Other Charges | The following table summarizes the components of charges included in "Restructuring and other charges" in our condensed consolidated statements of income (loss) for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Inventory write-down $ - $ - $ - $ 19,251 Severance - - 32 2,745 Long-lived asset write-down - - 5,055 - Other 2,180 - 2,890 4,024 $ 2,180 $ - $ 7,977 $ 26,020 |
Schedule of Accrued Liabilities Related to Restructuring and Others Charges | The following table summarizes the changes to our accrued liability balance related to restructuring and other charges as of September 30, 2022 (in thousands): Total Beginning balance at January 1, 2022 $ 4,000 Additions for costs expensed 2,901 Reductions for payments ( 3,347 ) Other 4 Ending balance at September 30, 2022 $ 3,558 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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: September 30, 2022 Estimated Gross Accumulated Foreign Net Book (In thousands) Trademarks 15 years $ 8,202 $ ( 1,963 ) $ ( 107 ) $ 6,132 Patents 15 - 30 years 6,049 ( 3,587 ) ( 1 ) 2,461 Customer relationships 5 - 15 years 26,002 ( 10,407 ) ( 370 ) 15,225 Organizational costs 3 years 183 ( 112 ) ( 21 ) 50 $ 40,436 $ ( 16,069 ) $ ( 499 ) $ 23,868 December 31, 2021 Estimated Gross Accumulated Foreign Net Book (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 |
Geographic Areas (Tables)
Geographic Areas (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | Three months ended September 30, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 (In thousands) Revenues Products Point in Time $ 17,355 $ 22,692 $ 3,992 $ 6,276 $ 4,628 $ 3,953 $ - $ - $ 25,975 $ 32,921 Over-Time 18,887 14,920 8,158 3,941 5,488 1,840 - - 32,533 20,701 Total Products 36,242 37,612 12,150 10,217 10,116 5,793 - - 58,508 53,622 Services Technical Advisory 9,899 10,814 3,303 2,038 1,131 3,629 - - 14,333 16,481 Reconditioning 4,517 2,058 677 420 916 601 - - 6,110 3,079 Total Services 14,416 12,872 3,980 2,458 2,047 4,230 - - 20,443 19,560 Leasing 5,310 6,627 3,588 1,564 292 1,624 - - 9,190 9,815 Total Services 19,726 19,499 7,568 4,022 2,339 5,854 - - 29,633 29,375 Intercompany 1,352 4,029 120 920 1,518 576 - 2,990 5,525 Eliminations - - - - - - ( 2,990 ) ( 5,525 ) ( 2,990 ) ( 5,525 ) Total Revenues $ 57,320 $ 61,140 $ 19,838 $ 15,159 $ 13,973 $ 12,223 $ ( 2,990 ) $ ( 5,525 ) $ 88,141 $ 82,997 Depreciation and amortization $ 4,257 $ 4,736 $ 997 $ 1,044 $ 965 $ 1,194 $ 904 $ 925 $ 7,123 $ 7,899 Income (loss) before income taxes $ 25,135 $ 8,417 $ 5,578 $ ( 1,273 ) $ ( 562 ) $ 2,002 $ ( 15,551 ) $ ( 15,988 ) $ 14,600 $ ( 6,842 ) Nine months ended September 30, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 (In thousands) Revenues Products Point in Time $ 57,861 $ 76,927 $ 11,089 $ 17,086 $ 15,746 $ 19,420 $ - $ - $ 84,696 $ 113,433 Over-Time 58,907 35,860 25,014 8,419 7,512 7,354 - - 91,433 51,633 Total Products 116,768 112,787 36,103 25,505 23,258 26,774 - - 176,129 165,066 Services Technical Advisory 27,863 26,916 8,594 6,058 6,130 11,603 - - 42,587 44,577 Reconditioning 11,204 6,897 1,913 1,690 1,834 1,599 - - 14,951 10,186 Total Services 39,067 33,813 10,507 7,748 7,964 13,202 - - 57,538 54,763 Leasing 18,937 15,297 8,059 4,635 4,593 5,272 - - 31,589 25,204 Total Services 58,004 49,110 18,566 12,383 12,557 18,474 - - 89,127 79,967 Intercompany 9,558 8,807 2,580 1,558 3,127 8,875 - - 15,265 19,240 Eliminations - - - - - - ( 15,265 ) ( 19,240 ) ( 15,265 ) ( 19,240 ) Total $ 184,330 $ 170,704 $ 57,249 $ 39,446 $ 38,942 $ 54,123 $ ( 15,265 ) $ ( 19,240 ) $ 265,256 $ 245,033 Depreciation and amortization $ 13,486 $ 13,291 $ 3,072 $ 3,021 $ 3,064 $ 3,576 $ 2,730 $ 2,770 $ 22,352 $ 22,658 Income (loss) before income taxes $ 47,780 $ ( 13,136 ) $ 7,935 $ ( 583 ) $ ( 739 ) $ 17,540 $ ( 49,213 ) $ ( 57,295 ) $ 5,763 ( 53,474 ) September 30, December 31, (In thousands) Total long-lived assets: Western Hemisphere $ 304,501 $ 335,760 Eastern Hemisphere 218,909 224,345 Asia-Pacific 55,302 58,308 Eliminations ( 353,946 ) ( 353,536 ) Total $ 224,766 $ 264,877 Total assets: Western Hemisphere $ 856,459 $ 686,361 Eastern Hemisphere 794,465 805,574 Asia-Pacific 180,276 184,097 Eliminations ( 860,676 ) ( 665,606 ) Total $ 970,524 $ 1,010,426 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2022 Location Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of geographic segments | Segment | 3 |
Number of headquarter locations | Location | 3 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Feb. 22, 2022 | |
Accounting Policies [Line Items] | ||||||
Additions for costs expensed | $ 2,200 | $ 2,901 | ||||
Inventory write down | $ 0 | $ 0 | $ 0 | $ 19,251 | ||
Unrecognized lease revenue | $ 500 | $ 1,500 | ||||
Leasing | $ 2,300 | |||||
Shares authorized to be repurchased (up to) | $ 100,000 | |||||
Treasury stock shares (in shares) | 457,467 | 45,225 | 888,197 | 45,225 | ||
Average price of shares (in dollars per share) | $ 24.35 | $ 25.02 | $ 23.41 | $ 25.02 | ||
Treasury stock, value of acquired shares | $ 11,100 | $ 1,100 | $ 20,800 | $ 1,100 | ||
2021 Global Strategic Plan Member | ||||||
Accounting Policies [Line Items] | ||||||
Additions for costs expensed | 2,200 | 8,000 | ||||
Inventory write down | $ 5,100 | |||||
Restructuring costs | $ 2,900 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounting Policies [Abstract] | ||||
Weighted average common shares outstanding basic (in shares) | 33,948 | 35,387 | 34,304 | 35,386 |
Dilutive effect of common stock awards (in shares) | 284 | 0 | 276 | 0 |
Weighted average common shares outstanding diluted (in shares) | 34,232 | 35,387 | 34,580 | 35,386 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Director stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 1 | 63 | 0 | 60 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 0 | 54 | 0 | 56 |
Performance share units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 0 | 323 | 0 | 328 |
Restricted stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 2 | 477 | 1 | 479 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues From Contracts With Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 78,951 | $ 73,182 | $ 233,667 | $ 219,829 |
Western Hemisphere | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 50,658 | 50,484 | 155,835 | 146,600 |
Eastern Hemisphere | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 16,130 | 12,675 | 46,610 | 33,253 |
Asia Pacific | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 12,163 | 10,023 | 31,222 | 39,976 |
Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 58,508 | 53,622 | 176,129 | 165,066 |
Products | Western Hemisphere | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 36,242 | 37,612 | 116,768 | 112,787 |
Products | Eastern Hemisphere | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 12,150 | 10,217 | 36,103 | 25,505 |
Products | Asia Pacific | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 10,116 | 5,793 | 23,258 | 26,774 |
Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 20,443 | 19,560 | 57,538 | 54,763 |
Services | Western Hemisphere | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 14,416 | 12,872 | 39,067 | 33,813 |
Services | Eastern Hemisphere | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 3,980 | 2,458 | 10,507 | 7,748 |
Services | Asia Pacific | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 2,047 | $ 4,230 | $ 7,964 | $ 13,202 |
Revenue Recognition - Contract
Revenue Recognition - Contract Asset and Liability (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Contract Assets | |
Contract Assets at December 31, 2021 | $ 97,716 |
Additions | 108,136 |
Transfers to Trade Receivables, Net | (71,733) |
Contract Assets at June 30, 2022 | 134,119 |
Contract Liabilities | |
Contract Liabilities at December 31, 2021 | 9,746 |
Contract Liabilities at June 30, 2022 | 8,859 |
Other Current Liabilities | |
Contract Liabilities | |
Contract Liabilities at December 31, 2021 | 9,222 |
Additions | 1,698 |
Revenue Recognized | (3,411) |
Contract Liabilities at June 30, 2022 | $ 7,509 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Unbilled receivables | $ 138,533 | $ 102,597 |
Performance obligation | 63,200 | |
Receivables (Included in Trade Receivables) | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Unbilled receivables | $ 90,800 | $ 58,700 |
Revenue Recognition - Narrati_2
Revenue Recognition - Narrative (Details1) | Sep. 30, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 92.70% |
Expected timing of satisfaction period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 7.30% |
Expected timing of satisfaction period | 0 years |
Stock-Based Compensation and _2
Stock-Based Compensation and Stock Awards - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 2.6 | $ 3.3 | $ 7.7 | $ 9.5 |
Inventories, net - Schedule of
Inventories, net - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 25,778 | $ 27,398 |
Work in progress | 30,814 | 28,361 |
Finished goods | 173,197 | 218,946 |
Inventory, gross, Total | 229,789 | 274,705 |
Less: allowance for slow moving and excess inventory | (89,259) | (128,981) |
Total inventory | $ 140,530 | $ 145,724 |
Assets Held For Sale (Details)
Assets Held For Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment of Real Estate | $ 2,600 | ||||
Asset Impairment Charges | $ 0 | $ 0 | 5,055 | $ 0 | |
Assets Held for Sale | 20,006 | 20,006 | $ 0 | ||
DQ Corporate | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Assets Held for Sale | 11,500 | 11,500 | |||
Western Hemisphere | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Asset Impairment Charges | 2,500 | ||||
Assets Held for Sale | $ 8,600 | 8,600 | |||
Corporate Headquarters Building | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Asset Impairment Charges | $ 0 | $ 0 | |||
Forge Facility | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds From Sale Of Productive Assets | $ 18,900 |
Impairment, Restructuring and_3
Impairment, Restructuring and Other Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Additions for costs expensed | $ 2,200 | $ 2,901 | ||
Inventory Write-down | 0 | $ 0 | 0 | $ 19,251 |
2021 Global Strategic Plan Member | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additions for costs expensed | 2,200 | 8,000 | ||
Inventory Write-down | $ 5,100 | |||
Restructuring costs | $ 2,900 |
Impairment, Restructuring and_4
Impairment, Restructuring and Other Charges - Schedule of Impairment, Restructuring and Other Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | ||||
Inventory write-down | $ 0 | $ 0 | $ 0 | $ 19,251 |
Severance | 0 | 0 | 32 | 2,745 |
Long-lived asset write-down | 0 | 0 | 5,055 | 0 |
Other | 2,180 | 0 | 2,890 | 4,024 |
Total impairment, restructuring and other charges | $ 2,180 | $ 0 | $ 7,977 | $ 26,020 |
Impairment, Restructuring and_5
Impairment, Restructuring and Other Charges - Schedule of Accrued Liabilities Related to Restructuring and Others Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | ||
Beginning balance | $ 4,000 | |
Additions for costs expensed | $ 2,200 | 2,901 |
Reductions for payments | (3,347) | |
Other | 4 | |
Ending balance | $ 3,558 | $ 3,558 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived, Gross Book Value | $ 40,436 | $ 40,578 |
Accumulated Amortization | (16,069) | (14,068) |
Finite-Lived, Foreign Currency Translation | (499) | (64) |
Finite-Lived, Net Book Value | $ 23,868 | $ 26,446 |
Trademarks | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | 15 years |
Finite-Lived, Gross Book Value | $ 8,202 | $ 8,257 |
Accumulated Amortization | (1,963) | (1,579) |
Finite-Lived, Foreign Currency Translation | (107) | (23) |
Finite-Lived, Net Book Value | 6,132 | 6,655 |
Patents | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived, Gross Book Value | 6,049 | 6,058 |
Accumulated Amortization | (3,587) | (3,285) |
Finite-Lived, Foreign Currency Translation | (1) | (1) |
Finite-Lived, Net Book Value | $ 2,461 | $ 2,772 |
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 | $ 26,002 | $ 26,078 |
Accumulated Amortization | (10,407) | (9,128) |
Finite-Lived, Foreign Currency Translation | (370) | (38) |
Finite-Lived, Net Book Value | $ 15,225 | $ 16,912 |
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 | 3 years |
Finite-Lived, Gross Book Value | $ 183 | $ 185 |
Accumulated Amortization | (112) | (76) |
Finite-Lived, Foreign Currency Translation | (21) | (2) |
Finite-Lived, Net Book Value | $ 50 | $ 107 |
Asset Backed Loan (ABL) Credi_2
Asset Backed Loan (ABL) Credit Facility (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Outstanding cash balance | $ 5.4 |
Amount to maintain by company, description | outstanding letters of credit plus 5% at all times |
Geographic Areas - Additional I
Geographic Areas - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) Location Segment | Sep. 30, 2021 USD ($) | |
Concentration Risk [Line Items] | ||||
Number of geographic segments | Segment | 3 | |||
Number of headquarter locations | Location | 3 | |||
Restructuring and Related Cost, Incurred Cost | $ 2,200 | $ 2,901 | ||
Restructuring and other charges | 2,180 | $ 0 | 7,977 | $ 26,020 |
Inventory write down | 0 | 0 | 0 | 19,251 |
Long-lived asset write-down | 0 | 0 | 5,055 | 0 |
Other | $ 2,180 | $ 0 | 2,890 | 4,024 |
Corporate, Non-Segment | ||||
Concentration Risk [Line Items] | ||||
Restructuring and other charges | 2,600 | 3,400 | ||
Corporate, Non-Segment | Consulting Fees | ||||
Concentration Risk [Line Items] | ||||
Other | 2,900 | |||
Western Hemisphere | ||||
Concentration Risk [Line Items] | ||||
Restructuring and other charges | 21,000 | |||
Inventory write down | 19,100 | |||
Long-lived asset write-down | $ 2,500 | |||
Eastern Hemisphere | ||||
Concentration Risk [Line Items] | ||||
Restructuring and other charges | 1,600 | |||
Inventory write down | $ 200 |
Geographic Areas - Schedule of
Geographic Areas - Schedule of Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 88,141 | $ 82,997 | $ 265,256 | $ 245,033 | |
Depreciation and amortization | 7,123 | 7,899 | 22,352 | 22,658 | |
Income (loss) before income taxes | 14,600 | (6,842) | 5,763 | (53,474) | |
Total long-lived assets | 224,766 | 224,766 | $ 264,877 | ||
Total assets | 970,524 | 970,524 | 1,010,426 | ||
Intercompany | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,990 | 5,525 | 15,265 | 19,240 | |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (2,990) | (5,525) | (15,265) | (19,240) | |
Total long-lived assets | (353,946) | (353,946) | (353,536) | ||
Total assets | (860,676) | (860,676) | (665,606) | ||
Western Hemisphere | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 57,320 | 61,140 | 184,330 | 170,704 | |
Western Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 4,257 | 4,736 | 13,486 | 13,291 | |
Income (loss) before income taxes | 25,135 | 8,417 | 47,780 | (13,136) | |
Total long-lived assets | 304,501 | 304,501 | 335,760 | ||
Total assets | 856,459 | 856,459 | 686,361 | ||
Western Hemisphere | Intercompany | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,352 | 4,029 | 9,558 | 8,807 | |
Eastern Hemisphere | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 19,838 | 15,159 | 57,249 | 39,446 | |
Eastern Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 997 | 1,044 | 3,072 | 3,021 | |
Income (loss) before income taxes | 5,578 | (1,273) | 7,935 | (583) | |
Total long-lived assets | 218,909 | 218,909 | 224,345 | ||
Total assets | 794,465 | 794,465 | 805,574 | ||
Eastern Hemisphere | Intercompany | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 120 | 920 | 2,580 | 1,558 | |
Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 13,973 | 12,223 | 38,942 | 54,123 | |
Asia Pacific | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 965 | 1,194 | 3,064 | 3,576 | |
Income (loss) before income taxes | (562) | 2,002 | (739) | 17,540 | |
Total long-lived assets | 55,302 | 55,302 | 58,308 | ||
Total assets | 180,276 | 180,276 | $ 184,097 | ||
Asia Pacific | Intercompany | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,518 | 576 | 3,127 | 8,875 | |
Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (2,990) | (5,525) | (15,265) | (19,240) | |
Depreciation and amortization | 904 | 925 | 2,730 | 2,770 | |
Income (loss) before income taxes | (15,551) | (15,988) | (49,213) | (57,295) | |
Corporate, Non-Segment | Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (2,990) | (5,525) | (15,265) | (19,240) | |
Products | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 58,508 | 53,622 | 176,129 | 165,066 | |
Products | Operating Segments | Transferred at Point in Time | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 25,975 | 32,921 | 84,696 | 113,433 | |
Products | Operating Segments | Transferred Over Time | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 32,533 | 20,701 | 91,433 | 51,633 | |
Products | Western Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 36,242 | 37,612 | 116,768 | 112,787 | |
Products | Western Hemisphere | Operating Segments | Transferred at Point in Time | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 17,355 | 22,692 | 57,861 | 76,927 | |
Products | Western Hemisphere | Operating Segments | Transferred Over Time | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 18,887 | 14,920 | 58,907 | 35,860 | |
Products | Eastern Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 12,150 | 10,217 | 36,103 | 25,505 | |
Products | Eastern Hemisphere | Operating Segments | Transferred at Point in Time | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 3,992 | 6,276 | 11,089 | 17,086 | |
Products | Eastern Hemisphere | Operating Segments | Transferred Over Time | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 8,158 | 3,941 | 25,014 | 8,419 | |
Products | Asia Pacific | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 10,116 | 5,793 | 23,258 | 26,774 | |
Products | Asia Pacific | Operating Segments | Transferred at Point in Time | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 4,628 | 3,953 | 15,746 | 19,420 | |
Products | Asia Pacific | Operating Segments | Transferred Over Time | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 5,488 | 1,840 | 7,512 | 7,354 | |
Technical Advisory | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 14,333 | 16,481 | 42,587 | 44,577 | |
Technical Advisory | Western Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 9,899 | 10,814 | 27,863 | 26,916 | |
Technical Advisory | Eastern Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 3,303 | 2,038 | 8,594 | 6,058 | |
Technical Advisory | Asia Pacific | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,131 | 3,629 | 6,130 | 11,603 | |
Reconditioning | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 6,110 | 3,079 | 14,951 | 10,186 | |
Reconditioning | Western Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 4,517 | 2,058 | 11,204 | 6,897 | |
Reconditioning | Eastern Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 677 | 420 | 1,913 | 1,690 | |
Reconditioning | Asia Pacific | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 916 | 601 | 1,834 | 1,599 | |
Total Services (excluding rental tools) | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 20,443 | 19,560 | 57,538 | 54,763 | |
Total Services (excluding rental tools) | Western Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 14,416 | 12,872 | 39,067 | 33,813 | |
Total Services (excluding rental tools) | Eastern Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 3,980 | 2,458 | 10,507 | 7,748 | |
Total Services (excluding rental tools) | Asia Pacific | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,047 | 4,230 | 7,964 | 13,202 | |
Leasing | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 9,190 | 9,815 | 31,589 | 25,204 | |
Leasing | Western Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 5,310 | 6,627 | 18,937 | 15,297 | |
Leasing | Eastern Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 3,588 | 1,564 | 8,059 | 4,635 | |
Leasing | Asia Pacific | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 292 | 1,624 | 4,593 | 5,272 | |
Total Services (including rental tools) | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 29,633 | 29,375 | 89,127 | 79,967 | |
Total Services (including rental tools) | Western Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 19,726 | 19,499 | 58,004 | 49,110 | |
Total Services (including rental tools) | Eastern Hemisphere | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 7,568 | 4,022 | 18,566 | 12,383 | |
Total Services (including rental tools) | Asia Pacific | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 2,339 | $ 5,854 | $ 12,557 | $ 18,474 |
Income Tax - Additional Informa
Income Tax - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate, percent | (4.20%) | (62.90%) | (87.80%) | (20.70%) |
Deferred foreign tax liability | $ 2.5 | $ 2.5 |