Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 22, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
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 | $ 777,800,000 | ||
Entity Common Stock, Shares Outstanding | 34,413,906 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common Stock, $.01 par value per share | ||
Trading Symbol | DRQ | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-13439 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 74-2162088 | ||
Entity Address, Address Line One | 2050 West Sam Houston Parkway S. | ||
Entity Address, Address Line Two | Suite 1100 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Country | US | ||
Entity Address, Postal Zip Code | 77042 | ||
City Area Code | 713 | ||
Local Phone Number | 939-7711 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement for its 2024 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A are incorporated by reference in Part III of this Form 10-K | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Houston, Texas | ||
Auditor Firm ID | 238 | ||
Document Financial Statement Error Correction [Flag] | false |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Total revenues | $ 424,060 | $ 361,924 | $ 322,448 |
Cost of sales: | |||
Total cost of sales | 308,503 | 265,935 | 242,356 |
Selling, general and administrative | 101,517 | 94,206 | 115,036 |
Engineering and product development | 12,649 | 11,740 | 15,104 |
Restructuring and other charges | 3,245 | 13,364 | 78,933 |
Gain on sale of property, plant and equipment | (8,754) | (20,019) | (4,482) |
Acquisition costs | 6,451 | 0 | 0 |
Change in fair value of earn-out liability | (2,282) | 0 | 0 |
Foreign currency transaction loss (gain) | (2,549) | (3,756) | 836 |
Total costs and expenses | 418,780 | 361,470 | 447,783 |
Operating income (loss) | 5,280 | 454 | (125,335) |
Interest expense (income), net | (8,188) | (4,249) | 212 |
Income (loss) before income taxes | 13,468 | 4,703 | (125,547) |
Income tax provision | 12,864 | 6,327 | 2,946 |
Net income (loss) | $ 604 | $ (1,624) | $ (128,493) |
Net income (loss) per common share: | |||
Basic | $ 0.02 | $ (0.05) | $ (3.63) |
Diluted | $ 0.02 | $ (0.05) | $ (3.63) |
Weighted average common shares outstanding: | |||
Basic | 34,174 | 34,237 | 35,331 |
Diluted | 34,473 | 34,237 | 35,331 |
Products | |||
Revenues: | |||
Revenues from products and services | $ 271,021 | $ 240,762 | $ 213,263 |
Cost of sales: | |||
Total cost of sales | 211,414 | 203,759 | 178,494 |
Services | |||
Revenues: | |||
Revenues from products and services | 105,680 | 79,129 | 74,143 |
Cost of sales: | |||
Total cost of sales | 72,900 | 32,046 | 33,173 |
Leasing | |||
Revenues: | |||
Leasing | 47,359 | 42,033 | 35,042 |
Cost of sales: | |||
Total cost of sales | $ 24,189 | $ 30,130 | $ 30,689 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 604 | $ (1,624) | $ (128,493) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (1,535) | (12,024) | (6,874) |
Total comprehensive income (loss) | $ (931) | $ (13,648) | $ (135,367) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 187,323 | $ 259,407 | |
Restricted cash | 4,077 | 5,397 | |
Short-Term Investments | 25,908 | 32,232 | |
Trade receivables, net | 135,569 | 90,861 | |
Unbilled receivables | 148,429 | 144,428 | |
Inventories | 194,593 | 146,004 | |
Prepaids expenses | 14,119 | 19,874 | |
Other current assets | 9,699 | 32,438 | |
Assets held for sale | 0 | 19,383 | |
Total current assets | 719,717 | 750,024 | |
Operating lease right of use assets | 16,343 | 4,872 | |
Property, plant and equipment, net | 217,631 | 181,270 | |
Deferred income taxes | 8,989 | 4,488 | |
Goodwill | 16,654 | [1] | 0 |
Intangible assets | 41,941 | 23,348 | |
Other assets | 6,906 | 5,949 | |
Total assets | 1,028,181 | 969,951 | |
Current liabilities: | |||
Accounts payable | 65,696 | 43,019 | |
Accrued income taxes | 5,942 | 4,868 | |
Contract liabilities | 7,583 | 8,020 | |
Accrued compensation | 14,035 | 11,296 | |
Operating lease liabilities | 2,118 | 1,054 | |
Other accrued liabilities | 22,329 | 19,298 | |
Total current liabilities | 117,703 | 87,555 | |
Deferred income taxes | 10,564 | 3,756 | |
Income tax payable | 346 | 823 | |
Operating lease liabilities, long-term | 14,554 | 3,807 | |
Other long-term liabilities | 3,754 | 1,658 | |
Total liabilities | 146,921 | 97,599 | |
Contingencies (Note 17) | |||
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, 34,386,577 and 34,157,057 shares issued and outstanding at December 31, 2023 and December 31, 2022 | 343 | 343 | |
Additional paid-in capital | 100,289 | 90,450 | |
Retained earnings | 950,719 | 950,168 | |
Accumulated other comprehensive losses | (170,091) | (168,609) | |
Total stockholders' equity | 881,260 | 872,352 | |
Total liabilities and stockholders' equity | $ 1,028,181 | $ 969,951 | |
[1] As of December 31, 2023, the Goodwill balance is included in long-lived assets in the Well Construction business segment. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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) | 34,386,577 | 34,157,057 |
Common stock, shares outstanding (in shares) | 34,386,577 | 34,157,057 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flow from operating activities: | |||
Net Income (Loss) | $ 604 | $ (1,624) | $ (128,493) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 30,324 | 29,421 | 30,381 |
Stock-based compensation expense | 10,892 | 10,363 | 14,895 |
Restructuring and other charges | (2,042) | 7,829 | 75,214 |
Gain on sale of property, plant and equipment | (8,754) | (20,019) | (4,482) |
Acquisition costs | 3,381 | 0 | 0 |
Deferred income taxes | (2,867) | 6,401 | (8,701) |
Changes in operating assets and liabilities: | |||
Trade receivables, net | (25,839) | 8,566 | 13,966 |
Unbilled receivables | (3,245) | (43,077) | 37,721 |
Inventories, net | (28,635) | (1,151) | (5,482) |
Prepaids and other assets | 30,751 | (12,545) | 10,650 |
Accounts payable and accrued expenses | 4,210 | (20,768) | 3,015 |
Other, net | (1,053) | (167) | (256) |
Net cash provided by (used in) operating activities | 7,727 | (36,771) | 38,428 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (32,626) | (18,866) | (9,990) |
Proceeds from sale of property, plant and equipment | 28,776 | 20,993 | 6,783 |
Acquisition of Great North, net of cash acquired | (82,287) | 0 | 0 |
Purchase of short-term investments | (48,866) | (32,232) | 0 |
Maturities of short-term investments | 55,190 | 0 | 0 |
Net cash used in investing activities | (79,813) | (30,105) | (3,207) |
Cash flows from financing activities: | |||
Repurchase of common shares | 0 | (20,807) | (24,191) |
Other | (124) | (83) | (109) |
Net cash used in financing activities | (124) | (20,890) | (24,300) |
Effect of exchange rate changes on cash activities | (1,194) | (2,881) | (1,425) |
Increase (decrease) in cash and cash equivalents | (73,404) | (90,647) | 9,496 |
Cash and cash equivalents at beginning of year | 264,804 | 355,451 | 345,955 |
Cash and cash equivalents at end of year | $ 191,400 | $ 264,804 | $ 355,451 |
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, 2020 | $ 1,041,528 | $ 363 | $ 65,613 | $ 1,125,263 | $ (149,711) |
Foreign currency translation adjustment | (6,874) | (6,874) | |||
Net Income (Loss) | (128,493) | (128,493) | |||
Comprehensive loss | (135,367) | ||||
Repurchase of common stock | (24,191) | (11) | (24,180) | ||
Payroll taxes for shares withheld | (254) | (254) | |||
Stock-based compensation expense | 14,895 | 14,895 | |||
Ending Balance at Dec. 31, 2021 | 896,611 | 352 | 80,254 | 972,590 | (156,585) |
Foreign currency translation adjustment | (12,024) | (12,024) | |||
Net Income (Loss) | (1,624) | (1,624) | |||
Comprehensive loss | (13,648) | ||||
Repurchase of common stock | (20,807) | (9) | (20,798) | ||
Payroll taxes for shares withheld | (167) | (167) | |||
Stock-based compensation expense | 10,363 | 10,363 | |||
Ending Balance at Dec. 31, 2022 | 872,352 | 343 | 90,450 | 950,168 | (168,609) |
Foreign currency translation adjustment | (1,535) | (53) | (1,482) | ||
Net Income (Loss) | 604 | 604 | |||
Comprehensive loss | (931) | ||||
Payroll taxes for shares withheld | (1,053) | (1,053) | |||
Stock-based compensation expense | 10,892 | 10,892 | |||
Ending Balance at Dec. 31, 2023 | $ 881,260 | $ 343 | $ 100,289 | $ 950,719 | $ (170,091) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Treasury stock shares (in shares) | 888,197 | 1,109,187 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 604 | $ (1,624) | $ (128,493) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization
Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Dril-Quip, Inc., a Delaware corporation (the “Company” or “Dril-Quip”), is a leading developer of innovative technologies for the energy industry, designing and manufacturing best-in-class products for traditional oil and gas, and certain energy transition applications. The Company designs, manufactures, sells and services highly engineered drilling and production equipment for both offshore and onshore applications. The Company’s principal products consist of subsea and surface wellheads, specialty connectors and associated pipes, subsea production systems, mudline hanger systems, production riser systems, dry tree systems, subsea manifolds, line hangers and expandable liner systems, multi-frac well connections, conventional wellhead, thermal wellhead, completion packers and safety and kelly 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. On July 31, 2023, the Company acquired 100 % of the issued and outstanding shares of 1185641 B.C. LTD (d/b/a Great North Wellhead and Frac, “Great North”) for a purchase price of $ 105 million CAD, approximately $ 79.8 million. The purchase price is subject to customary purchase price adjustments and includes potential earnout payments of up to $ 30 million CAD, approximately $ 22.8 million, to be paid over the course of 2024 and 2025 if Great North Wellhead and its subsidiaries meet specific revenue growth targets. For information with respect to this item, see “Business Acquisitions,” Note 3 of Notes to the Consolidated Financial Statements. During the quarter ended March 31, 2023, the Company reorganized its structure in order to streamline operations and leadership around more focused and integrated product and service lines to align with its business strategy. To reflect the Company’s new organizational structure, the Company changed presentation of its segments in 2023 into the following three reportable business segments: Subsea Products, Subsea Services, and Well Construction. Segment operating results for the prior year comparative period have been restated to reflect this change. Previously, the Company’s operations were organized into three geographic segments. Our Subsea Products business manufactures highly engineered, field-proven products with a wide array of deepwater drilling equipment and technology that meets the requirements for harsh subsea environments. Our Subsea Services business provides high-level aftermarket support and technical services with field technicians that support the full installation and lifecycle management of regulatory and industry standards, as well as offering industry training programs. Our Well Construction business provides products and services utilized in the construction of the wellbore such as completions, casing hardware and liner hanger systems. The Well Construction business also includes all of Great North’s operations as of the acquisition date. These products and services are used on both land and offshore markets. Additionally, Corporate includes the expenses and assets of the Company’s corporate office functions, legal and other administrative expenses that are managed at a consolidated level. For information with respect to our segments, see “Business Segments,” Note 13 of Notes to the Consolidated Financial Statements. For a listing of all of Dril-Quip’s subsidiaries, please see Exhibit 21.1 to this report. Revision to Previously Reported Financial Information In conjunction with our close process for the second quarter of 2023, we identified accounting errors related to an indemnification receivable and duplicate billing errors impacting prior periods. In the third quarter of 2022, due to the expiration of the statute of limitations of an Uncertain Tax Position (“UTP”), we released the liability for this UTP, but failed to write-off the related indemnification receivable previously obtained from the seller of an acquired business, resulting in an overstatement of operating income during the period. In addition, the Company identified billing errors in 2022 and 2021 that resulted in an overstatement of revenue and trade receivables. We have assessed these errors, individually and in the aggregate, and concluded that they were not material to any prior annual or interim period. However, the aggregate amount of the prior period errors would have been material to our current consolidated statements of income and to our anticipated full year results and therefore, we have revised our previously issued financial information. For more details, see “Revision to Previously Reported Financial Information,” Note 5 of Notes to the Consolidated Financial Statements. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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. Reclassifications We reclassified approximately $ 5.5 million of accrued bonus related to our short-term incentive plan for the year ended December 31, 2022, from other accrued liabilities to accrued compensation to conform to our current year presentation. These reclassifications to the prior period were made to conform to the current period presentation and did not have an impact on our consolidated statements of income (loss), consolidated balance sheets, consolidated statements of comprehensive income (loss), consolidated statements of stockholders’ equity and 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 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. 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. The Company’s ABL Credit Facility, dated February 23, 2018, as amended, was terminated effective February 22, 2022. 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 December 31, 2023, the cash balance in that account was approximat ely $ 4.1 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 “Restricted cash” in our consolidated balance sheets as at December 31, 2023 and December 31, 2022. Withdrawals from this cash collateral account are only allowed at such point a given letter of credit has expired or has been cancelled. Short-term Investments Short-term investments that have a maturity greater than three months and less than a year from the date of purchase 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. 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. Trade receivables has been reduced by $ 6.5 million and $ 5.0 million as of December 31, 2023 and 2022 , respectively. 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, excess and obsolete inventories of $ 66.2 million and $ 75.9 million as of December 31, 2023 and 2022 , 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. Assets Acquired and Liabilities Assumed in Business Combinations The Company accounts for its business combinations under the provisions of Accounting Standards Codification Topic 805-10, Business Combinations (“ASC 805-10”), which requires that the purchase method of accounting be used for all business combinations. Assets acquired and liabilities assumed are recorded at the date of acquisition at their respective fair values. For transactions that are business combinations, the Company evaluates the existence of goodwill. Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination. ASC 805-10 also specifies criteria that intangible assets acquired in a business combination must meet to be recognized and reported apart from goodwill. Acquisition-related expenses are recognized separately from the business combinations and are expensed as incurred. The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed are based on various assumptions and valuation methodologies requiring considerable management judgment. The fair value of property, plant and equipment is estimated using either the market approach or cost approach, depending on the availability of market information, The fair value of customer relationships is estimated using a multi-period excess earnings method. Under this method, the value is derived from cash flow projections for the customer relationships acquired, which includes significant judgments and assumptions relating to baseline revenue and revenue growth rates, EBITDA margins, contributory asset charges, customer attrition rate, and discount rate . The fair value of trademarks and developed technologies are estimated using the relief from royalty method. The valuation of an acquired business is based on available information at the acquisition date and assumptions that are believed to be reasonable. However, a change in facts and circumstances as of the acquisition date can result in subsequent adjustments during the measurement period, but no later than one year from the acquisition date. 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 judgments 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. 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. A qualitative assessment was performed in 2023 and it was determined that a quantitative assessment was not necessary. Impairment exists when the carrying amount of a reporting unit exceeds its fair value. Restructuring and Other Charges Restructuring and other charges consist of costs associated with our 2021 global strategic plan initiated in the fourth quarter of 2021, in an effort to realign our subsea product business with the market conditions. Prior to the 2021 global strategic plan, restructuring and other charges were incurred as part of the 2018 global strategic plan, initiated to realign our manufacturing facilities globally and which concluded as of the third quarter of 2021. These charges are reflected as “Restructuring and other charges” in our consolidated statements of income (loss). Income Tax 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. At December 31, 2023 and 2022, unbilled receivables included $ 90.2 million and $ 92.6 million of unbilled receivables related to products accounted for using the over time method of accounting, respectively. For the year ended December 31, 2023, there were 75 projects representing approximately 25.5 % of the Company’s total revenues and approximately 40.0 % of its product revenues, and 79 projects during 2022 representing approximately 34.7 % of the Company’s total revenues and approximately 52.1 % 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. 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 gain of $ 2.0 million in 2023, a transaction gain of $ 3.0 million in 2022 and a transaction loss of $ 0.7 million in 2021 . Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, short-term investments, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature. Fair Value Measurements The Company applies the applicable accounting guidance for fair value measurements. This guidance provides the definition of fair value, describes the method used to appropriately measure fair value in accordance with generally accepted accounting principles, and outlines fair value disclosure requirements. The fair value hierarchy established under this guidance prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: • Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 - Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted prices, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. • Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant. 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. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Business Acquisitions | 3. Business Acquisitions On July 31, 2023, the Company acquired 100 % of the issued and outstanding shares of 1185641 B.C. LTD (d/b/a Great North Wellhead and Frac, “Great North”) for a purchase price of $ 105 million CAD, approximately $ 79.8 million, which is subject to customary adjustments for cash and working capital. The acquisition of Great North allows Dril-Quip to service its clients with Great North’s products. The acquired business contributed revenues of $ 35.2 million and earnings of $ 2.7 million to Dril- Quip for the period from August 1, 2023 to December 31, 2023. The following unaudited pro forma summary presents consolidated information of Dril-Quip as if the business combination had occurred on January 1, 2022. Pro forma twelve months ended 2023 2022 (In thousands) (unaudited) Revenues $ 478,874 $ 449,099 Net income (loss) $ 9,535 $ 835 These pro forma amounts have been calculated after applying Dril-Quip’s accounting policies and adjusting the results of Great North to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant, and equipment, and intangible assets had been applied from January 1, 2022, with the consequential tax effects. Dril-Quip incurred $ 6.5 million of acquisition-related costs for the year ended December 31, 2023. These expenses are included in “Acquisition costs” in the consolidated statements of income (loss) for the respective periods and are reflected in the pro forma earnings for the year ended December 31, 2022, in the table above. The following table summarizes the consideration transferred to acquire Great North: Fair value of consideration transferred: (In thousands) Cash $ 84,097 Contingent consideration 3,571 Total $ 87,668 The acquisition of Great North includes a contingent consideration arrangement that requires additional consideration to be paid by Dril-Quip to the sellers of Great North based on the future revenues of Great North for FY 2024 and 2025. The range of the undiscounted amounts Dril-Quip could pay under the contingent consideration agreement is between zero and $ 30 million CAD, approximately $ 22.8 million. The fair value of the contingent consideration recognized on the acquisition date was $ 3.6 million. The Company will be required to remeasure this liability to fair value quarterly with any changes in the fair value recorded in income until the final payment is made. The Company remeasured the fair value of the contingent consideration as of December 31, 2023, resulting in a reduction of $ 2.3 million . The fair value of the contingent consideration was estimated by applying a Monte-Carlo valuation model based on Level 3 inputs. For information with respect to our fair value measurements, see “Fair Value Measurements,” Note 4 of Notes to the Consolidated Financial Statements. The contingent consideration is included in other long-term liabilities as of December 31, 2023. The following table sets forth the preliminary purchase price allocation, which was based on fair value of assets acquired and liabilities assumed at the acquisition date, July 31, 2023: Preliminary amounts of identified assets acquired and liabilities assumed: (In thousands) Cash $ 1,810 Accounts receivable 16,499 Prepaid expenses and other current assets 609 Inventory 16,068 Property, plant and equipment 29,338 Right of use assets 11,115 Intangible assets (1) 22,263 Total assets acquired $ 97,702 Accounts payable 7,034 Accrued expenses 3,522 Deferred revenue 47 Lease liability, long-term 11,115 Deferred taxes 5,075 Total liabilities assumed $ 26,793 Net identifiable assets acquired $ 70,909 Goodwill 16,759 Net assets acquired $ 87,668 (1) Includes $ 4.0 million of trademarks with a weighted average useful life of 10 years, $ 3.6 million of patents with a weighted average useful life of 15 years, and $ 14.7 million of customer relationships with a weighted average useful life of 10 years. See “Goodwill and Intangible Assets,” Note 11 of Notes to the Consolidated Financial Statements for further information regarding intangible assets. Acquired assets and liabilities were recorded at estimated fair value as of the acquisition date. The excess of the purchase price over the estimated fair value of tangible and intangible identifiable net assets resulted in the recognition of goodwill of $ 16.8 million, all of which is included in long-lived assets in the Well Construction business segment and is attributable to expected synergies from combining operations as well as intangible assets which do not qualify for separate recognition. This goodwill is not tax deductible. The goodwill was determined on the basis of the fair values of the tangible and intangible assets and liabilities as of the acquisition date. It may be adjusted if the provisional fair values change as a result of circumstances existing at the acquisition date. Such fair value adjustments may arise in respect to intangible assets, inventories and property, plant and equipment, upon completion of the necessary valuations and physical verifications of such assets. The amount of deferred taxes may also be adjusted during the measurement period. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements As of December 31, 2023, the Company’s Level 3 instruments consist of contingent purchase consideration liabilities related to the acquisition of Great North (Note 3). The fair value of such earn-out liabilities is generally determined using a Monte Carlo Simulation that includes significant inputs that are not observable. Significant inputs include management's estimate of revenue and other market inputs, including expected revenue volatility ( 6.7 %) and a revenue discount rate ( 8.4 %). The fair value of certain earn-out liabilities is derived using the estimated probability of success of achieving the earn-out periods discounted to present value. The fair value of contingent consideration liabilities is remeasured at each reporting period at the estimated fair value based on the inputs on the date of remeasurement, with the change in fair value recognized in “Change in fair value of earn-out liability” on the consolidated statements of income. The Company’s contingent consideration measured at fair value for the periods presented are as follows (in thousands): December 31, 2023 December 31, 2022 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Liability: Contingent consideration (1) $ 1,208 - - $ 1,208 $ - - - - Total liabilities $ 1,208 $ - $ - $ 1,208 $ - $ - $ - $ - (1) As of December 31, 2023, contingent consideration includes certain amounts in other long-term liabilities on the Company’s consolidated balance sheets. The following table provides a reconciliation of changes in the fair value of the Company’s earn-out liabilities associated with the Company’s acquisition measured at fair value for the twelve months ended December 31, 2023, 2022, and 2021 (in thousands): Twelve Months Ended 2023 2022 2021 Beginning period balance $ - $ - $ - Additions to contingent consideration 3,571 - - Payments of contingent consideration - - - Fair value adjustment of earn-out liabilities ( 2,341 ) - - Currency translation adjustment ( 22 ) - - Ending period balance $ 1,208 $ - $ - |
Revision to Previously Reported
Revision to Previously Reported Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision to Previously Reported Financial Information | 5. Revision to Previously Reported Financial Information In conjunction with our close process for the second quarter of 2023, we identified accounting errors related to an indemnification receivable and duplicate billing errors impacting prior periods. In the third quarter of 2022, due to the expiration of the statute of limitations of an Uncertain Tax Position (“UTP”), we released the liability for this UTP, but failed to write-off the related indemnification receivable previously obtained from the seller of an acquired business, resulting in an overstatement of operating income during the period. In addition, the Company identified billing errors in 2022 and 2021 that resulted in an overstatement of revenue and trade receivables. The following table presents the impact of correcting the errors on the affected line items of our consolidated balance sheet as of December 31, 2022: December 31, 2022 As Reported Adjustments As Revised (In thousands) Trade receivables, net $ 91,504 $ ( 643 ) $ 90,861 Other current assets 34,359 ( 1,921 ) 32,438 Total current assets 752,588 ( 2,564 ) 750,024 Total assets 972,515 ( 2,564 ) 969,951 Total stockholders’ equity 874,916 ( 2,564 ) 872,352 The following table presents the impact of correcting the errors on the affected line items of our consolidated statement of income (loss) for the twelve months ended December 31, 2022: Twelve months ended December 31, 2022 As Reported Adjustments As Revised (In thousands, except per share data) Total revenues $ 362,070 $ ( 146 ) $ 361,924 Restructuring and other charges 11,443 1,921 13,364 Operating income 2,521 ( 2,067 ) 454 Income before income taxes 6,770 ( 2,067 ) 4,703 Net income (loss) 443 ( 2,067 ) ( 1,624 ) Net income (loss) per common share: Basic 0.01 ( 0.06 ) ( 0.05 ) Diluted 0.01 ( 0.06 ) ( 0.05 ) The following table presents the impact of correcting the errors on the affected line items of our consolidated balance sheet as of December 31, 2021: December 31, 2021 As Reported Adjustments As Revised (In thousands) Trade receivables, net $ 100,987 $ ( 497 ) $ 100,490 Total current assets 745,549 ( 497 ) 745,052 Total assets 1,010,426 ( 497 ) 1,009,929 Total stockholders' equity 897,108 ( 497 ) 896,611 The following table presents the impact of correcting the errors on the affected line items of our consolidated statement of income (loss) for the twelve months ended December 31, 2021: Twelve months ended December 31, 2021 As Reported Adjustments As Revised (In thousands, except per share data) Total revenues $ 322,945 $ ( 497 ) $ 322,448 Operating income (loss) ( 124,838 ) ( 497 ) ( 125,335 ) Income (loss) before income taxes ( 125,050 ) ( 497 ) ( 125,547 ) Net income (loss) ( 127,996 ) ( 497 ) ( 128,493 ) Net income (loss) per common share: Basic ( 3.62 ) ( 0.01 ) ( 3.63 ) Diluted ( 3.62 ) ( 0.01 ) ( 3.63 ) The consolidated statemen t of stockholders’ equity for the period from January 1, 2022 to December 31, 2022 has also been revised to reflect the impacts to net earnings. The impact of the error arising in 2021, as reflected above, has been reflected as a reduction to opening retained earnings in the amount of $ 0.5 million in the consolidated statement of stockholders’ equity. The Company also assessed the impact of all these errors on the statement of cash flows and noted that there was no impact to the net cash provided by (used in) operating activities as the changes in assets and net income offset completely. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 6. Revenue Recognition Revenues from contracts with customers consisted of the following: Twelve Months Ended December 31, 2023 2022 2021 (In thousands) Revenues: Products: Subsea products $ 198,321 $ 194,237 $ 168,361 Well construction 72,700 46,525 44,902 Total products 271,021 240,762 213,263 Services: Subsea services 72,241 60,937 58,086 Well construction services 33,439 18,192 16,057 Total services 105,680 79,129 74,143 Leasing: Subsea leasing 29,023 33,694 27,970 Well Construction leasing 18,336 8,339 7,072 Total leasing (1) 47,359 42,033 35,042 Total revenues $ 424,060 $ 361,924 $ 322,448 (1) As of December 31, 2023, revenues from contracts with customers includes leasing revenues. Leasing revenue was previously excluded in the Annual Report on Form 10-K filed as of December 31, 2022. Contract Balances Balances related to contrac ts with customers consisted of the following: Contract Assets (amounts shown in thousands) Contract Assets at December 31, 2022 $ 144,428 Additions 417,248 Transfers to Accounts Receivable ( 413,247 ) Contract Assets at December 31, 2023 $ 148,429 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2022 $ 8,020 Additions 6,364 Revenue Recognized ( 6,801 ) Contract Liabilities at December 31, 2023 $ 7,583 Contract asset receivables were $ 148.4 million and $ 144.4 million for the years ended December 31, 2023 and 2022, respectively. Contract assets include unbilled accounts receivable associated with contracts accounted for under the over time accounting method which were approximately $ 90.2 million and $ 92.6 million at December 31, 2023 and 2022, 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. As of December 31, 2023, contract assets and liabilities includes leasing. Leasing was previously excluded in the Annual Report on Form 10-K filed as of December 31, 2022. Obligations for returns and refunds were considered immaterial as of December 31, 2023 and 2022. Remaining Performance Obligations The aggregate amount of the transaction price allocated to remaining performance obligations from our over time product lines was $ 43.0 million as of December 31, 2023. The Company expects to recognize revenue on approximately 98.6 % of the remaining performance obligations over the next 12 months and the remaining 1.4 % 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
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories Inventories, which are stated at the lower of average cost or net realizable value, consist of the following: December 31, 2023 2022 (In thousands) Raw materials and supplies $ 34,950 $ 21,956 Work in progress 33,911 38,263 Finished goods 125,732 85,785 Total inventory $ 194,593 $ 146,004 |
Assets Held For Sale
Assets Held For Sale | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | 8. Assets Held for Sale In the second quarter of 2022, the Company actively marketed for sale its corporate administrative building, forge facility and aftermarket facility 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 a net amount of approximately $ 18.9 million and a gain on sale of approximately $ 18.0 million of which $ 0.8 million was realized in 2023. In March 2023, we sold our aftermarket facility for a net amount of approximately $ 14.5 million and a gain on sale of approximately $ 5.9 million. In December 2023, we sold our corporate administrative building for a net amount of approximately $ 10.9 million and a gain on sale of approximately $ 0.1 million. As of December 31, 2023, the Company has no assets held for sale. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | 9. Restructuring and Other Charges Restructuring and other charges consist of costs associated with our 2021 global strategic plan initiated in the fourth quarter of 2021, in an effort to realign our business with the market conditions. Prior to the 2021 global strategic plan, restructuring and other charges were incurred as part of the 2018 global strategic plan, initiated to realign our manufacturing facilities globally and which concluded as of the third quarter of 2021. During 2023, the Company incurred $ 3.2 million of additional costs under the 2021 global strategic plan. The restructuring charges incurred during the current year primarily consist of office moves, site cleanup, preparation costs, severance, consulting and legal fees. During the second quarter of 2023, the Company reassessed the reasonability of a restructuring liability related to its Well Construction business. During our assessment certain market exit costs became known and the liability was adjusted accordingly, resulting in a release of approximately $ 2.3 million, which partially offsets the current year restructuring costs. Severance charges totaled approximately $ 0.4 million for the year. During 2022, the Company incurred $ 13.4 million of additional costs under the 2021 global strategic plan. These charges were primarily related to write-downs of long-lived assets, severance and other charges. Long-lived asset write-downs consisted of $ 3.2 million for the Houston corporate administrative building and $ 2.5 million for obsolete machinery and equipment. Severance charges related to restructuring plan totaled approximately $ 0.9 million for the year. Other charges totaled $ 6.8 million and consisted of consulting and legal fees, office moves, site cleanup and preparation costs. During 2021, the Company incurred restructuring charges 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. Additionally, 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. 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, 2023, 2022 and 2021 (in thousands): Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Inventory write-down $ - $ - $ 66,910 Severance 374 951 3,760 Long-lived asset write-down - 5,678 4,240 Other 2,871 6,735 4,023 $ 3,245 $ 13,364 $ 78,933 The following table summarizes the changes to our accrued liability balances related to restructuring and other charges as of December 31, 2023 (in thousands): Total Balance at December 31, 2022 $ 3,802 Additions for costs expensed - Reductions for payments ( 645 ) Other ( 2,527 ) Ending balance at December 31, 2023 $ 630 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | 10. Property, Plant and Equipment, net Property, plant and equipment consists of: Estimated Useful December 31, Lives 2023 2022 (In thousands) Land improvements 10 - 25 years $ 7,910 $ 7,240 Buildings 15 - 40 years 174,085 169,315 Machinery, equipment and other 3 - 10 years 440,008 385,745 622,003 562,300 Less: Accumulated depreciation ( 439,776 ) ( 410,850 ) 182,227 151,450 Land 10,357 9,858 Construction work in process 25,047 19,962 Total property, plant and equipment $ 217,631 $ 181,270 Depreciation expense totaled $ 26.7 million , $ 26.6 million and $ 27.2 million for 2023, 2022 and 2021 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 11. Goodwill and Intangible Assets Goodwill The following table summarizes the change in goodwill, which was acquired in the acquisition of Great North in 2023 (in millions): Total Net balance as of December 31, 2022 $ - Addition due to business combination 16.8 Impairments - Foreign currency translation ( 0.1 ) Net balance as of December 31, 2023 (1) $ 16.7 (1) As of December 31, 2023, the Goodwill balance is included in long-lived assets in the Well Construction business segment. Intangible Assets Intangible assets, the majority of which were acquired in the acquisition of TIW Corporation in 2016, OilPatch Technologies in 2017, and Great North in July 2023, consist of the following: Estimated December 31, 2023 Gross Book Accumulated Foreign Currency Net Book Value (In thousands) Trademarks 10 - 15 years $ 12,091 $ ( 2,811 ) $ 4 $ 9,284 Patents 15 - 30 years 9,686 ( 4,200 ) ( 22 ) 5,464 Customer relationships 5 - 15 years 40,291 ( 13,095 ) ( 3 ) 27,193 Organizational Costs 3 years 163 ( 163 ) - - $ 62,231 $ ( 20,269 ) $ ( 21 ) $ 41,941 Estimated December 31, 2022 Gross Book Accumulated Foreign Currency Net Book Value (In thousands) Trademarks 10 - 15 years $ 8,233 $ ( 2,118 ) $ ( 79 ) $ 6,036 Patents 15 - 30 years 6,055 ( 3,699 ) - 2,356 Customer relationships 5 - 15 years 26,028 ( 10,878 ) ( 234 ) 14,916 Organizational costs 3 years 183 ( 131 ) ( 12 ) 40 $ 40,499 $ ( 16,826 ) $ ( 325 ) $ 23,348 Amortization expense was $ 3.6 million , $ 2.8 million , $ 3.0 million , respectively for each of the years 2023, 2022 and 2021. Based on the carrying value of intangible assets at December 31, 2023, amortization expense for the subsequent five years is estimated to be as follows: 2024 — $ 4.9 million ; 2025 — $ 4.8 million ; 2026 — $ 4.8 million ; 2027 — $ 4.6 million ; and 2028 — $ 4.6 million . |
Leases and Lease Commitments
Leases and Lease Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases and Lease Commitments | 12. 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, 2023 and 2022 was approximately $ 1.7 million and $ 0.6 million, respectively. 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, 2023 December 31, 2022 Classification (In thousands) Assets Operating Operating lease right of use assets $ 16,343 $ 4,872 Finance Other assets 1,086 132 Total lease assets $ 17,429 $ 5,004 Liabilities Current Operating Operating lease liabilities $ 2,118 $ 1,054 Finance Other accrued liabilities 188 43 Noncurrent Operating Operating lease liabilities, long-term 14,554 3,807 Finance Other long-term liabilities 915 98 Total lease liabilities $ 17,775 $ 5,002 As most of our leases do not provide an implicit rate, we use our incremental borrowing rate. Our lease costs are as follows: Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2021 (In thousands) Classification Operating lease cost Selling, general and administrative $ 2,701 $ 1,910 $ 1,602 Short-term lease costs Selling, general and administrative 1,654 621 1,296 Amortization of leased assets Selling, general and administrative 145 86 114 Interest on lease liabilities Net interest expense 41 11 59 Total lease cost $ 4,541 $ 2,628 $ 3,071 The Company leases certain offices, shop and warehouse facilities, automobiles and equipment. Total lease expense incurred was $ 4.4 million , $ 2.5 million , and $ 2.9 million in 2023, 2022 and 2021, respectively. The five year and beyond maturity of our lease obligations is presented below: Twelve months ended December 31, 2023 Operating Finance Leases Leases Total (In thousands) 2024 $ 2,993 $ 363 $ 3,356 2025 2,789 341 3,130 2026 2,547 345 2,892 2027 2,450 214 2,664 2028 2,119 - 2,119 After 2028 11,169 - 11,169 Total lease payments 24,067 1,263 25,330 Less: interest 7,395 160 7,555 Present value of lease liabilities $ 16,672 $ 1,103 $ 17,775 The lease term and discount rate for our operating and finance leases is as follows: December 31, 2023 Weighted average remaining lease term (years) Operating leases 9.9 Finance leases 3.6 Weighted average discount rate Operating leases 8.1 % Finance leases 8.9 % We had no material non-cash financing or operating leases entered into during the twelve months ended December 31, 2023. Other information pertaining to our lease obligations is as follows: December 31, 2023 December 31, 2022 December 31, 2021 (In thousands) Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,356 $ 1,949 $ 1,591 Operating cash flows from finance leases 42 11 59 Financing cash flows from finance leases 124 83 109 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | 13. Business Segments Operating segments are defined in FASB ASC Topic 280, Segment Reporting, as components of an enterprise about which separate financial information is available and evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. During the quarter ended March 31, 2023, the Company reorganized its structure in order to streamline operations and leadership around more focused and integrated product and service lines to align with its business strategy. To reflect the Company’s new organizational structure, the Company changed presentation of its segments in 2023 into the following three reportable business segments: Subsea Products, Subsea Services, and Well Construction. Segment operating results for the prior year comparative period have been restated to reflect this change. Previously, the Company’s operations were organized into three geographic segments. The Company evaluates segment performance based on operating income. The accounting policies of the segments are the same as described in the summary of significant accounting policies. Subsea Products. The Company’s Subsea Products segment designs, manufactures and sells a variety of products including subsea wellheads, connectors and surface equipment, and subsea production systems. Subsea Services . The Company’s Subsea Services segment delivers a variety of technical services including subsea rental services, subsea rework services and subsea services shared support. Well Construction . The Company’s Well Construction business provides products and services utilized in the construction of the wellbore such as completions, casing hardware and liner hanger systems. In July of 2023, the Company acquired Great North and includes its product, service and leasing solutions within the Well Construction segment. Great North offers pressure control and completion solutions, including customized and highly engineered wellhead products for use in heavy oil and thermal production locations, proprietary completion solutions such as the Multi-Well Frac Connector TM, as well as related installation and maintenance services. During the year ended December 31, 2023, the Company incurred restructuring and other charges (benefit) under the 2021 global strategic plan of ($ 1.9 ) million in Well Construction and $ 0.4 million in Subsea Services. During the year ended December 31, 2022, the Company incurred restructuring and other charges under the 2021 global strategic plan of $ 2.5 million in Subsea Products. All other restructuring charges for 2023 and 2022 related to Corporate. For information with respect to this item, see “Restructuring and Other Charges,” Note 9 of Notes to the Consolidated Financial Statements. The following tables presents selected financial data by business segment: Years ended December 31, 2023 2022 2021 (In thousands) Revenue Subsea products $ 198,321 $ 194,252 $ 168,363 Subsea services 101,264 94,186 85,875 Well construction 124,475 73,486 68,210 Total revenue $ 424,060 $ 361,924 $ 322,448 Depreciation and amortization Subsea products 6,694 7,691 7,168 Subsea services 10,259 10,876 12,138 Well construction 10,511 6,374 6,541 Segment depreciation and amortization 27,464 24,941 25,847 Corporate (1) 2,860 4,480 4,534 Total depreciation and amortization $ 30,324 $ 29,421 $ 30,381 Operating income (loss) Subsea products $ 8,522 $ 8,917 $ ( 21,863 ) Subsea services 18,411 8,374 ( 22,370 ) Well construction 10,848 14,268 ( 14,577 ) Segment operating income (loss) 37,781 31,559 ( 58,810 ) Corporate (1) ( 32,501 ) ( 31,105 ) ( 66,525 ) Total operating income (loss) $ 5,280 $ 454 $ ( 125,335 ) (1) Corporate includes the expenses and assets of the Company’s corporate office functions, legal and other administrative expenses that are managed at a consolidated level. The Company does not allocate assets to its reportable segments as they are not included in the review performed by the Chief Operating Decision Maker (CODM) for purposes of assessing segment performance and allocating resources. The balance sheet is reviewed on a consolidated basis and is not used in the context of segment reporting. The following table presents the Company ’s assets by geographic region: December 31, 2023 2022 (In thousands) Long-lived assets Western Hemisphere $ 118,181 $ 528,035 Eastern Hemisphere 232,584 202,994 Asia-Pacific 51,401 53,922 Canada 79,202 - Eliminations ( 172,904 ) ( 565,024 ) Total long-lived assets $ 308,464 $ 219,927 Assets Western Hemisphere $ 656,333 $ 1,077,232 Eastern Hemisphere 622,755 581,950 Asia-Pacific 190,687 185,285 Canada 111,362 - Eliminations ( 552,956 ) ( 874,516 ) Total Assets $ 1,028,181 $ 969,951 The Company has substantial international operations, with $ 317.6 million of revenues derived from foreign sales in 2023, as compared to $ 239.6 million in 2022 and $ 205.7 million in 2021. Substantially all of the Company’s domestic revenue relates to operations in the U. S. Gulf of Mexico. Domestic revenue was $ 106.4 million in 2023, $ 122.3 million in 2022 and $ 116.7 million in 2021. Revenue is based on the location where services are provided and products are sold. The Company is not dependent on any one customer or group of customers. In 2023 , the Company’s top 15 customers represented approximately 59 % of total revenues, and Chevron Corporation and its affiliated companies (“Chevron”) accounted for approximately 11 % of total revenues. In 2022 , the Company’s top 15 customers represented approximately 60 % of total revenues, and Chevron accounted for approximately 10 % of total revenues. In 2021 , the Company’s top 15 customers represented approximately 59 % of total revenue, and Chevron accounted for approximately 12 % of total revenues. No other customer accounted for more than 10 % of total revenues in 2023, 2022 or 2021 . |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 14. Income Tax Income (loss) before income taxes consisted of the following: Year Ended December 31, 2023 2022 2021 (In thousands) Domestic $ ( 15,464 ) $ ( 33,082 ) $ ( 135,403 ) Foreign 28,932 37,785 9,856 Total $ 13,468 $ 4,703 $ ( 125,547 ) The income tax provision (benefit) consists of the following: Year Ended December 31, 2023 2022 2021 (In thousands) Current: Federal $ ( 451 ) $ ( 8,632 ) $ 833 Foreign 15,992 8,635 10,579 Total current 15,541 3 11,412 Deferred: Federal 343 ( 289 ) ( 56 ) Foreign ( 3,020 ) 6,613 ( 8,410 ) Total deferred ( 2,677 ) 6,324 ( 8,466 ) Total $ 12,864 $ 6,327 $ 2,946 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, 2023 2022 2021 Federal income tax statutory rate 21.00 % 21.00 % 21.00 % Change in withholding tax reserve 3.86 ( 4.52 ) 0.79 Foreign income tax rate differential 7.37 31.51 - Foreign development tax incentive ( 1.06 ) 12.32 ( 0.24 ) Exempt income ( 1.30 ) ( 4.54 ) 0.54 Foreign taxes and inclusions (net of FTC) 6.16 82.63 ( 1.15 ) Nondeductible expenses 21.88 38.72 ( 2.82 ) Change in valuation allowance 5.80 336.85 ( 21.87 ) Changes to prior year accruals 33.91 37.56 0.23 Deferred tax rate change ( 0.13 ) 0.77 0.11 Change in uncertain tax positions ( 3.54 ) ( 420.45 ) ( 0.19 ) Interest on net equity - 9.23 0.41 General business credits ( 7.09 ) ( 13.91 ) 1.31 Branch income 9.07 9.93 ( 0.29 ) Other ( 0.42 ) ( 2.57 ) ( 0.19 ) Effective tax rate 95.51 % 134.53 % - 2.36 % 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, 2023 2022 (In thousands) Deferred tax assets: Foreign tax credit carryforward $ 19,179 $ 17,577 General business credit carryforward 8,008 7,053 Inventory 11,156 9,564 Net operating losses 29,321 32,278 Allowance for doubtful accounts 440 970 Reserve for accrued liabilities 3,302 2,769 Stock options and awards 1,350 904 Unrealized gain/loss - 810 Disallowed interest carryforward 1,437 2,662 Capitalized R&D costs 4,653 3,282 Other 2,162 820 Total deferred tax assets 81,008 78,689 Valuation allowance ( 60,863 ) ( 59,952 ) Deferred tax liabilities: Property, plant and equipment ( 7,346 ) ( 7,652 ) Goodwill & Intangibles ( 6,263 ) ( 1,519 ) Deferred revenue ( 2,851 ) ( 2,728 ) Reserve for unremitted earnings ( 2,713 ) ( 2,244 ) Unrealized gain/loss ( 561 ) - Other ( 1,986 ) ( 3,862 ) Total deferred tax liability ( 21,720 ) ( 18,005 ) Net deferred tax asset (liability) $ ( 1,575 ) $ 732 The Company has $ 19.2 million of excess foreign tax credits of which $ 16.2 million will expire in years ending 2024 - 2032 and $ 3.0 million are carried forward indefinitely. The Company has $ 8.0 million of general business credits which expire in tax years ending 2037 - 2043. Tax operating loss carryforwards totaled $ 140.0 million (gross) at December 31, 2023. These operating losses will expire as shown in the table below. Tax operating losses Expiration (in thousands) $ 2,411 2023 - 2028 - 2029 - 2034 1,811 2035 - 2040 718 2041 - 2046 135,053 Indefinite $ 139,993 The United States gross loss carryforwards of approximately $ 135.5 millio n, includes $ 134.4 million of losses which are indefinite. 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, 2023 in the United States and certain foreign jurisdictions and has recorded a valuation allowance at December 31, 2023 of $ 60.9 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 (“NOLs”) periods. During the year ended December 31, 2023, the Comp any has received $ 15.8 million in N OL carryback claims and $ 5.2 million in transition tax payment refund. Except with respect to our operations in Canada, the Company no longer asserts the indefinite reinvestment assertion. We maintain a deferred foreign tax liability, which had a balance of $ 2.7 million as of December 31, 2023. It is primarily related to estimated foreign withholding tax associated with repatriating non-U.S. earnings back to the United States. The indefinite reinvestment assertion with respect to Canada pertains to earnings of $ 2.7 million as of December 31, 2023. 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 recently enacted Global Anti-Base Erosion (“GloBE”) rules (“GloBE Rules”) is a “top-up tax” that applies to the excess profits calculated on a jurisdictional basis. Based upon the applicable thresholds of the GloBE Rules, we do not anticipate being subject to the tax but will continue to monitor developments. 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 largest 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 $ 0.3 million at December 31, 2023 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 March 31, 2017 through December 31, 2023. A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows: 2023 2022 2021 (In thousands) Balance at beginning of year $ 631 $ 18,618 $ 18,665 Additions for tax positions related to the current year 192 482 3 Reductions for tax positions related to the prior year ( 550 ) ( 18,469 ) ( 50 ) Balance at end of year $ 273 $ 631 $ 18,618 The amounts above exclude accrued interest and penalties of $ 0.1 million , $ 0.2 million and $ 2.4 million at December 31, 2023, 2022 and 2021 respectively. The Company classifies interest and penalties relating to uncertain tax positions within “Income tax provision (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, 2023, 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, 2023, if recognized, $ 0.3 million of the Company’s unrecognized tax benefits would favorably impact the effective tax rate. The Company received net income tax refund of $ 13.7 million in 2023, paid net income taxes of $ 1.3 million and net income taxes of $ 2.0 million in 2022 and 2021 , respectively. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities | 15. Other Accrued Liabilities Current other accrued liabilities consist of the following: December 31, 2023 2022 (In thousands) Accrued vendor costs $ 5,553 $ 4,357 Property, sales and other taxes 9,336 4,341 Commissions payable 319 1,289 Payroll taxes 1,951 2,521 Accrued restructuring costs 630 2,812 Accrued severance - 990 Accrued insurance 1,062 - Other 3,478 2,988 Total $ 22,329 $ 19,298 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 16. 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. The Company’s contribution expense under these plans was $ 3.3 million , $ 2.8 million and $ 1.0 million in 2023, 2022 and 2021 , respectively. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 17. 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. On August 10, 2023, the First District of Texas Court of Appeals rendered a judgment that affirmed the judgment of the 127th District Court of Harris County in favor of the Company. FMC filed a petition for review with the Texas Supreme Court on November 27, 2023. 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. |
Stock Repurchase Plan
Stock Repurchase Plan | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stock Repurchase Plan | 18. 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. On February 22, 2022, the Board of Directors authorized an incremental $ 100 million share repurchase plan. The repurchase plans have no set expiration date and any repurchased shares are expected to be cancelled. For the year ended December 31, 2023, the Company did no t purchase any shares under the share repurchase plans. However, the Company withheld 46,172 shares for restricted stock awards vested in 2023 at an average price of approximately $ 23.70 . During the year ended December 31, 2022, the Company purchased 888,197 shares at an average price of $ 23.41 under the share repurchase plan for approximately $ 20.8 million and has retired such shares. 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 and has retired such shares. |
Stock-Based Compensation and St
Stock-Based Compensation and Stock Awards | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation and Stock Awards | 19. Stock-Based Compensation and Stock Awards 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. Restricted Stock Awards On October 28, 2023 and 2022 and 2021, 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, 2022 579,804 $ 23.34 Granted 330,696 22.93 Vested ( 250,176 ) 23.42 Forfeited ( 50,493 ) 23.92 Unvested at December 31, 2023 609,831 $ 23.04 RSA compensation expense for the years ended December 31, 2023, 2022 and 2021 totaled $ 6.1 million , $ 6.1 million and $ 8.0 million , respectively. For 2023, 2022 and 2021, the income tax benefit recognized in net income for RSAs was $ 1.2 million , $ 1.1 million and $ 1.3 million , respectively. As of December 31, 2023, there was $ 13.3 million of total unrecognized compensation cost related to unvested RSAs, which is expected to be recognized over a weighted average period of 2.2 years. There were no anti-dilutive restricted shares on December 31, 2023. Performance Unit Awards On October 28, 2023, 2022 and 2021, 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 $ 24.80 for the 2023 grants, $ 29.38 f or the 2022 grants, and $ 29.88 for the 2021 grants, approximately 108.9 %, 126.2 % , and 126.9 %, 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. Starting with the 2022 grants, the Philadelphia Oil Service Index was replaced by the VanEck Oil Services ETF Index. The TSR is calculated over a three -year period from October 1, 2023 and 2022 and 2021 to September 30, 2026 and 2025, and 2024, 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: 2023 2022 2021 Grant date October 28, 2023 October 28, 2022 October 28, 2021 Performance period October 1, 2023 to September 30, 2026 October 1, 2022 to September 30, 2025 October 1, 2021 to September 30, 2024 Volatility 49.0 % 57.3 % 56.1 % Risk-free interest rate 4.9 % 4.4 % 0.8 % Grant date price $ 22.78 $ 23.28 $ 23.54 The Company’s Performance Unit activity and related information is presented below: Number of Weighted Unvested balance at December 31, 2022 331,820 $ 29.06 Granted 147,053 24.80 Forfeited ( 72,292 ) 32.05 Unvested balance at December 31, 2023 406,581 $ 26.99 Performance Unit compensation expense was $ 3.5 million , $ 2.9 million and $ 5.5 million for the years ended December 31, 2023, 2022 and 2021 , respectively. The income tax benefit recognized in net income for Performance Units was zero for the years ended December 31, 2023 and 2022, and $ 0.7 million , for the year ended December 31, 2021. As of December 31, 2023, there was $ 6.8 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 no anti-dilutive Performance Units at December 31, 2023. 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, 2023 is presented below: DSA Number Weighted Unvested balance at December 31, 2022 71,935 $ 24.85 Granted 56,816 24.14 Vested ( 50,877 ) 25.24 Unvested balance at December 31, 2023 77,874 $ 24.08 Director stock compensation awards expense was $ 1.4 million for the years ended December 31, 2023, 2022, and 2021. For 2023, 2022, and 2021, the income tax benefit recognized in net income for DSAs was $ 0.3 million , $ 0.3 million , and $ 0.2 million , respectively. There was $ 1.1 million of unrecognized compensation expense related to unvested DSAs, which is expected to be recognized over a weighted average period of 1.0 year. There were no anti-dilutive DSA shares on December 31, 2023. Equity Compensation Plan Information The following table summarizes information for equity compensation plans in effect as of December 31, 2023: Number of (1) Weighted- (2) Number of Plan category (a) (b) (c) Equity compensation plans approved by stockholders 406,581 $ 26.99 634,997 Total 406,581 $ 26.99 634,997 (1) Excludes 687,705 shares of unvested RSAs and DSAs, which were granted pursuant to the 2017 Plan. Includes 406,581 unvested Performance Units shown at 100 % level of performance achievement. (2) The weighted average exercise price does not take into account 406,581 unvested Performance Units, which do not have an exercise price. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 20. Earnings Per Share The following is a reconciliation of the basic and diluted earnings per share computation. Year Ended December 31, 2023 2022 2021 (In thousands, except per Net income (loss) $ 604 $ ( 1,624 ) $ ( 128,493 ) Weighted average basic common shares outstanding 34,174 34,237 35,331 Effect of dilutive securities - stock options and awards 299 - - Total shares and dilutive securities 34,473 34,237 35,331 Basic net income (loss) per common share $ 0.02 $ ( 0.05 ) $ ( 3.63 ) Diluted net income (loss) per common share $ 0.02 $ ( 0.05 ) $ ( 3.63 ) For the years ended December 31, 2023, 2022 and 2021, 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, 2023 2022 2021 (In thousands) Director stock awards - - 62 Stock options - - 46 Performance share units - - 325 Restricted stock awards - - 485 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events None |
Schedule II_Valuation and Quali
Schedule II—Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 $ 5,017 $ 1,850 $ ( 412 ) $ 6,455 December 31, 2022 $ 5,247 $ 1,748 $ ( 1,978 ) $ 5,017 December 31, 2021 $ 2,155 $ 3,933 $ ( 841 ) $ 5,247 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | 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. |
Reclassifications | Reclassifications We reclassified approximately $ 5.5 million of accrued bonus related to our short-term incentive plan for the year ended December 31, 2022, from other accrued liabilities to accrued compensation to conform to our current year presentation. These reclassifications to the prior period were made to conform to the current period presentation and did not have an impact on our consolidated statements of income (loss), consolidated balance sheets, consolidated statements of comprehensive income (loss), consolidated statements of stockholders’ equity and 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 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. |
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. The Company’s ABL Credit Facility, dated February 23, 2018, as amended, was terminated effective February 22, 2022. 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 December 31, 2023, the cash balance in that account was approximat ely $ 4.1 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 “Restricted cash” in our consolidated balance sheets as at December 31, 2023 and December 31, 2022. Withdrawals from this cash collateral account are only allowed at such point a given letter of credit has expired or has been cancelled. |
Short-term investments | Short-term Investments Short-term investments that have a maturity greater than three months and less than a year from the date of purchase 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. |
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. Trade receivables has been reduced by $ 6.5 million and $ 5.0 million as of December 31, 2023 and 2022 , respectively. 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, excess and obsolete inventories of $ 66.2 million and $ 75.9 million as of December 31, 2023 and 2022 , 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. |
Assets Acquired and Liabilities Assumed in Business Combinations | Assets Acquired and Liabilities Assumed in Business Combinations The Company accounts for its business combinations under the provisions of Accounting Standards Codification Topic 805-10, Business Combinations (“ASC 805-10”), which requires that the purchase method of accounting be used for all business combinations. Assets acquired and liabilities assumed are recorded at the date of acquisition at their respective fair values. For transactions that are business combinations, the Company evaluates the existence of goodwill. Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination. ASC 805-10 also specifies criteria that intangible assets acquired in a business combination must meet to be recognized and reported apart from goodwill. Acquisition-related expenses are recognized separately from the business combinations and are expensed as incurred. The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed are based on various assumptions and valuation methodologies requiring considerable management judgment. The fair value of property, plant and equipment is estimated using either the market approach or cost approach, depending on the availability of market information, The fair value of customer relationships is estimated using a multi-period excess earnings method. Under this method, the value is derived from cash flow projections for the customer relationships acquired, which includes significant judgments and assumptions relating to baseline revenue and revenue growth rates, EBITDA margins, contributory asset charges, customer attrition rate, and discount rate . The fair value of trademarks and developed technologies are estimated using the relief from royalty method. The valuation of an acquired business is based on available information at the acquisition date and assumptions that are believed to be reasonable. However, a change in facts and circumstances as of the acquisition date can result in subsequent adjustments during the measurement period, but no later than one year from the acquisition date. |
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 judgments 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. |
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. A qualitative assessment was performed in 2023 and it was determined that a quantitative assessment was not necessary. Impairment exists when the carrying amount of a reporting unit exceeds its fair value. |
Restructuring and Other Charges | Restructuring and Other Charges Restructuring and other charges consist of costs associated with our 2021 global strategic plan initiated in the fourth quarter of 2021, in an effort to realign our subsea product business with the market conditions. Prior to the 2021 global strategic plan, restructuring and other charges were incurred as part of the 2018 global strategic plan, initiated to realign our manufacturing facilities globally and which concluded as of the third quarter of 2021. These charges are reflected as “Restructuring and other charges” in our consolidated statements of income (loss). |
Income Tax | Income Tax 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. At December 31, 2023 and 2022, unbilled receivables included $ 90.2 million and $ 92.6 million of unbilled receivables related to products accounted for using the over time method of accounting, respectively. For the year ended December 31, 2023, there were 75 projects representing approximately 25.5 % of the Company’s total revenues and approximately 40.0 % of its product revenues, and 79 projects during 2022 representing approximately 34.7 % of the Company’s total revenues and approximately 52.1 % 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. 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 gain of $ 2.0 million in 2023, a transaction gain of $ 3.0 million in 2022 and a transaction loss of $ 0.7 million in 2021 . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, short-term investments, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature. |
Fair Value Measurements | Fair Value Measurements The Company applies the applicable accounting guidance for fair value measurements. This guidance provides the definition of fair value, describes the method used to appropriately measure fair value in accordance with generally accepted accounting principles, and outlines fair value disclosure requirements. The fair value hierarchy established under this guidance prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: • Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 - Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted prices, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. • Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant. |
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. |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Schedule of Pro forma Consolidated Results of Operations | The following unaudited pro forma summary presents consolidated information of Dril-Quip as if the business combination had occurred on January 1, 2022. Pro forma twelve months ended 2023 2022 (In thousands) (unaudited) Revenues $ 478,874 $ 449,099 Net income (loss) $ 9,535 $ 835 |
Summary of Consideration Transferred to Acquire Great North | The following table summarizes the consideration transferred to acquire Great North: Fair value of consideration transferred: (In thousands) Cash $ 84,097 Contingent consideration 3,571 Total $ 87,668 |
Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed | The following table sets forth the preliminary purchase price allocation, which was based on fair value of assets acquired and liabilities assumed at the acquisition date, July 31, 2023: Preliminary amounts of identified assets acquired and liabilities assumed: (In thousands) Cash $ 1,810 Accounts receivable 16,499 Prepaid expenses and other current assets 609 Inventory 16,068 Property, plant and equipment 29,338 Right of use assets 11,115 Intangible assets (1) 22,263 Total assets acquired $ 97,702 Accounts payable 7,034 Accrued expenses 3,522 Deferred revenue 47 Lease liability, long-term 11,115 Deferred taxes 5,075 Total liabilities assumed $ 26,793 Net identifiable assets acquired $ 70,909 Goodwill 16,759 Net assets acquired $ 87,668 (1) Includes $ 4.0 million of trademarks with a weighted average useful life of 10 years, $ 3.6 million of patents with a weighted average useful life of 15 years, and $ 14.7 million of customer relationships with a weighted average useful life of 10 years. See “Goodwill and Intangible Assets,” Note 11 of Notes to the Consolidated Financial Statements for further information regarding intangible assets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of company's contingent consideration measured at fair value | The Company’s contingent consideration measured at fair value for the periods presented are as follows (in thousands): December 31, 2023 December 31, 2022 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Liability: Contingent consideration (1) $ 1,208 - - $ 1,208 $ - - - - Total liabilities $ 1,208 $ - $ - $ 1,208 $ - $ - $ - $ - (1) As of December 31, 2023, contingent consideration includes certain amounts in other long-term liabilities on the Company’s consolidated balance sheets. |
Summary of reconciliation of changes in the fair value of the Company's earn-out liabilities | The following table provides a reconciliation of changes in the fair value of the Company’s earn-out liabilities associated with the Company’s acquisition measured at fair value for the twelve months ended December 31, 2023, 2022, and 2021 (in thousands): Twelve Months Ended 2023 2022 2021 Beginning period balance $ - $ - $ - Additions to contingent consideration 3,571 - - Payments of contingent consideration - - - Fair value adjustment of earn-out liabilities ( 2,341 ) - - Currency translation adjustment ( 22 ) - - Ending period balance $ 1,208 $ - $ - |
Revision to Previously Report_2
Revision to Previously Reported Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The following table presents the impact of correcting the errors on the affected line items of our consolidated balance sheet as of December 31, 2022: December 31, 2022 As Reported Adjustments As Revised (In thousands) Trade receivables, net $ 91,504 $ ( 643 ) $ 90,861 Other current assets 34,359 ( 1,921 ) 32,438 Total current assets 752,588 ( 2,564 ) 750,024 Total assets 972,515 ( 2,564 ) 969,951 Total stockholders’ equity 874,916 ( 2,564 ) 872,352 The following table presents the impact of correcting the errors on the affected line items of our consolidated statement of income (loss) for the twelve months ended December 31, 2022: Twelve months ended December 31, 2022 As Reported Adjustments As Revised (In thousands, except per share data) Total revenues $ 362,070 $ ( 146 ) $ 361,924 Restructuring and other charges 11,443 1,921 13,364 Operating income 2,521 ( 2,067 ) 454 Income before income taxes 6,770 ( 2,067 ) 4,703 Net income (loss) 443 ( 2,067 ) ( 1,624 ) Net income (loss) per common share: Basic 0.01 ( 0.06 ) ( 0.05 ) Diluted 0.01 ( 0.06 ) ( 0.05 ) The following table presents the impact of correcting the errors on the affected line items of our consolidated balance sheet as of December 31, 2021: December 31, 2021 As Reported Adjustments As Revised (In thousands) Trade receivables, net $ 100,987 $ ( 497 ) $ 100,490 Total current assets 745,549 ( 497 ) 745,052 Total assets 1,010,426 ( 497 ) 1,009,929 Total stockholders' equity 897,108 ( 497 ) 896,611 The following table presents the impact of correcting the errors on the affected line items of our consolidated statement of income (loss) for the twelve months ended December 31, 2021: Twelve months ended December 31, 2021 As Reported Adjustments As Revised (In thousands, except per share data) Total revenues $ 322,945 $ ( 497 ) $ 322,448 Operating income (loss) ( 124,838 ) ( 497 ) ( 125,335 ) Income (loss) before income taxes ( 125,050 ) ( 497 ) ( 125,547 ) Net income (loss) ( 127,996 ) ( 497 ) ( 128,493 ) Net income (loss) per common share: Basic ( 3.62 ) ( 0.01 ) ( 3.63 ) Diluted ( 3.62 ) ( 0.01 ) ( 3.63 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from Contract with Customers | Revenues from contracts with customers consisted of the following: Twelve Months Ended December 31, 2023 2022 2021 (In thousands) Revenues: Products: Subsea products $ 198,321 $ 194,237 $ 168,361 Well construction 72,700 46,525 44,902 Total products 271,021 240,762 213,263 Services: Subsea services 72,241 60,937 58,086 Well construction services 33,439 18,192 16,057 Total services 105,680 79,129 74,143 Leasing: Subsea leasing 29,023 33,694 27,970 Well Construction leasing 18,336 8,339 7,072 Total leasing (1) 47,359 42,033 35,042 Total revenues $ 424,060 $ 361,924 $ 322,448 (1) As of December 31, 2023, revenues from contracts with customers includes leasing revenues. Leasing revenue was previously excluded in the Annual Report on Form 10-K filed as of December 31, 2022. |
Schedule of Contract Asset and Liability | Balances related to contrac ts with customers consisted of the following: Contract Assets (amounts shown in thousands) Contract Assets at December 31, 2022 $ 144,428 Additions 417,248 Transfers to Accounts Receivable ( 413,247 ) Contract Assets at December 31, 2023 $ 148,429 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2022 $ 8,020 Additions 6,364 Revenue Recognized ( 6,801 ) Contract Liabilities at December 31, 2023 $ 7,583 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories, which are stated at the lower of average cost or net realizable value, consist of the following: December 31, 2023 2022 (In thousands) Raw materials and supplies $ 34,950 $ 21,956 Work in progress 33,911 38,263 Finished goods 125,732 85,785 Total inventory $ 194,593 $ 146,004 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022 and 2021 (in thousands): Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Inventory write-down $ - $ - $ 66,910 Severance 374 951 3,760 Long-lived asset write-down - 5,678 4,240 Other 2,871 6,735 4,023 $ 3,245 $ 13,364 $ 78,933 |
Schedule of Accrued Liabilities Related to Restructuring and Others Charges | Current other accrued liabilities consist of the following: December 31, 2023 2022 (In thousands) Accrued vendor costs $ 5,553 $ 4,357 Property, sales and other taxes 9,336 4,341 Commissions payable 319 1,289 Payroll taxes 1,951 2,521 Accrued restructuring costs 630 2,812 Accrued severance - 990 Accrued insurance 1,062 - Other 3,478 2,988 Total $ 22,329 $ 19,298 |
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 31, 2023 (in thousands): Total Balance at December 31, 2022 $ 3,802 Additions for costs expensed - Reductions for payments ( 645 ) Other ( 2,527 ) Ending balance at December 31, 2023 $ 630 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of: Estimated Useful December 31, Lives 2023 2022 (In thousands) Land improvements 10 - 25 years $ 7,910 $ 7,240 Buildings 15 - 40 years 174,085 169,315 Machinery, equipment and other 3 - 10 years 440,008 385,745 622,003 562,300 Less: Accumulated depreciation ( 439,776 ) ( 410,850 ) 182,227 151,450 Land 10,357 9,858 Construction work in process 25,047 19,962 Total property, plant and equipment $ 217,631 $ 181,270 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Change in Goodwill | The following table summarizes the change in goodwill, which was acquired in the acquisition of Great North in 2023 (in millions): Total Net balance as of December 31, 2022 $ - Addition due to business combination 16.8 Impairments - Foreign currency translation ( 0.1 ) Net balance as of December 31, 2023 (1) $ 16.7 (1) As of December 31, 2023, the Goodwill balance is included in long-lived assets in the Well Construction business segment. |
Schedule of Intangible Assets | Intangible assets, the majority of which were acquired in the acquisition of TIW Corporation in 2016, OilPatch Technologies in 2017, and Great North in July 2023, consist of the following: Estimated December 31, 2023 Gross Book Accumulated Foreign Currency Net Book Value (In thousands) Trademarks 10 - 15 years $ 12,091 $ ( 2,811 ) $ 4 $ 9,284 Patents 15 - 30 years 9,686 ( 4,200 ) ( 22 ) 5,464 Customer relationships 5 - 15 years 40,291 ( 13,095 ) ( 3 ) 27,193 Organizational Costs 3 years 163 ( 163 ) - - $ 62,231 $ ( 20,269 ) $ ( 21 ) $ 41,941 Estimated December 31, 2022 Gross Book Accumulated Foreign Currency Net Book Value (In thousands) Trademarks 10 - 15 years $ 8,233 $ ( 2,118 ) $ ( 79 ) $ 6,036 Patents 15 - 30 years 6,055 ( 3,699 ) - 2,356 Customer relationships 5 - 15 years 26,028 ( 10,878 ) ( 234 ) 14,916 Organizational costs 3 years 183 ( 131 ) ( 12 ) 40 $ 40,499 $ ( 16,826 ) $ ( 325 ) $ 23,348 |
Leases and Lease Commitments (T
Leases and Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 December 31, 2022 Classification (In thousands) Assets Operating Operating lease right of use assets $ 16,343 $ 4,872 Finance Other assets 1,086 132 Total lease assets $ 17,429 $ 5,004 Liabilities Current Operating Operating lease liabilities $ 2,118 $ 1,054 Finance Other accrued liabilities 188 43 Noncurrent Operating Operating lease liabilities, long-term 14,554 3,807 Finance Other long-term liabilities 915 98 Total lease liabilities $ 17,775 $ 5,002 |
Schedule of Lease Costs | Our lease costs are as follows: Twelve Months Ended December 31, 2023 December 31, 2022 December 31, 2021 (In thousands) Classification Operating lease cost Selling, general and administrative $ 2,701 $ 1,910 $ 1,602 Short-term lease costs Selling, general and administrative 1,654 621 1,296 Amortization of leased assets Selling, general and administrative 145 86 114 Interest on lease liabilities Net interest expense 41 11 59 Total lease cost $ 4,541 $ 2,628 $ 3,071 |
Schedule of Maturity of Lease Obligations | The five year and beyond maturity of our lease obligations is presented below: Twelve months ended December 31, 2023 Operating Finance Leases Leases Total (In thousands) 2024 $ 2,993 $ 363 $ 3,356 2025 2,789 341 3,130 2026 2,547 345 2,892 2027 2,450 214 2,664 2028 2,119 - 2,119 After 2028 11,169 - 11,169 Total lease payments 24,067 1,263 25,330 Less: interest 7,395 160 7,555 Present value of lease liabilities $ 16,672 $ 1,103 $ 17,775 |
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, 2023 Weighted average remaining lease term (years) Operating leases 9.9 Finance leases 3.6 Weighted average discount rate Operating leases 8.1 % Finance leases 8.9 % |
Schedule of Other Information Pertaining to Lease Obligations | Other information pertaining to our lease obligations is as follows: December 31, 2023 December 31, 2022 December 31, 2021 (In thousands) Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,356 $ 1,949 $ 1,591 Operating cash flows from finance leases 42 11 59 Financing cash flows from finance leases 124 83 109 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | The following tables presents selected financial data by business segment: Years ended December 31, 2023 2022 2021 (In thousands) Revenue Subsea products $ 198,321 $ 194,252 $ 168,363 Subsea services 101,264 94,186 85,875 Well construction 124,475 73,486 68,210 Total revenue $ 424,060 $ 361,924 $ 322,448 Depreciation and amortization Subsea products 6,694 7,691 7,168 Subsea services 10,259 10,876 12,138 Well construction 10,511 6,374 6,541 Segment depreciation and amortization 27,464 24,941 25,847 Corporate (1) 2,860 4,480 4,534 Total depreciation and amortization $ 30,324 $ 29,421 $ 30,381 Operating income (loss) Subsea products $ 8,522 $ 8,917 $ ( 21,863 ) Subsea services 18,411 8,374 ( 22,370 ) Well construction 10,848 14,268 ( 14,577 ) Segment operating income (loss) 37,781 31,559 ( 58,810 ) Corporate (1) ( 32,501 ) ( 31,105 ) ( 66,525 ) Total operating income (loss) $ 5,280 $ 454 $ ( 125,335 ) (1) Corporate includes the expenses and assets of the Company’s corporate office functions, legal and other administrative expenses that are managed at a consolidated level. The following table presents the Company ’s assets by geographic region: December 31, 2023 2022 (In thousands) Long-lived assets Western Hemisphere $ 118,181 $ 528,035 Eastern Hemisphere 232,584 202,994 Asia-Pacific 51,401 53,922 Canada 79,202 - Eliminations ( 172,904 ) ( 565,024 ) Total long-lived assets $ 308,464 $ 219,927 Assets Western Hemisphere $ 656,333 $ 1,077,232 Eastern Hemisphere 622,755 581,950 Asia-Pacific 190,687 185,285 Canada 111,362 - Eliminations ( 552,956 ) ( 874,516 ) Total Assets $ 1,028,181 $ 969,951 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Taxes | Income (loss) before income taxes consisted of the following: Year Ended December 31, 2023 2022 2021 (In thousands) Domestic $ ( 15,464 ) $ ( 33,082 ) $ ( 135,403 ) Foreign 28,932 37,785 9,856 Total $ 13,468 $ 4,703 $ ( 125,547 ) |
Schedule of Income Tax Provision (Benefit) | The income tax provision (benefit) consists of the following: Year Ended December 31, 2023 2022 2021 (In thousands) Current: Federal $ ( 451 ) $ ( 8,632 ) $ 833 Foreign 15,992 8,635 10,579 Total current 15,541 3 11,412 Deferred: Federal 343 ( 289 ) ( 56 ) Foreign ( 3,020 ) 6,613 ( 8,410 ) Total deferred ( 2,677 ) 6,324 ( 8,466 ) Total $ 12,864 $ 6,327 $ 2,946 |
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, 2023 2022 2021 Federal income tax statutory rate 21.00 % 21.00 % 21.00 % Change in withholding tax reserve 3.86 ( 4.52 ) 0.79 Foreign income tax rate differential 7.37 31.51 - Foreign development tax incentive ( 1.06 ) 12.32 ( 0.24 ) Exempt income ( 1.30 ) ( 4.54 ) 0.54 Foreign taxes and inclusions (net of FTC) 6.16 82.63 ( 1.15 ) Nondeductible expenses 21.88 38.72 ( 2.82 ) Change in valuation allowance 5.80 336.85 ( 21.87 ) Changes to prior year accruals 33.91 37.56 0.23 Deferred tax rate change ( 0.13 ) 0.77 0.11 Change in uncertain tax positions ( 3.54 ) ( 420.45 ) ( 0.19 ) Interest on net equity - 9.23 0.41 General business credits ( 7.09 ) ( 13.91 ) 1.31 Branch income 9.07 9.93 ( 0.29 ) Other ( 0.42 ) ( 2.57 ) ( 0.19 ) Effective tax rate 95.51 % 134.53 % - 2.36 % |
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, 2023 2022 (In thousands) Deferred tax assets: Foreign tax credit carryforward $ 19,179 $ 17,577 General business credit carryforward 8,008 7,053 Inventory 11,156 9,564 Net operating losses 29,321 32,278 Allowance for doubtful accounts 440 970 Reserve for accrued liabilities 3,302 2,769 Stock options and awards 1,350 904 Unrealized gain/loss - 810 Disallowed interest carryforward 1,437 2,662 Capitalized R&D costs 4,653 3,282 Other 2,162 820 Total deferred tax assets 81,008 78,689 Valuation allowance ( 60,863 ) ( 59,952 ) Deferred tax liabilities: Property, plant and equipment ( 7,346 ) ( 7,652 ) Goodwill & Intangibles ( 6,263 ) ( 1,519 ) Deferred revenue ( 2,851 ) ( 2,728 ) Reserve for unremitted earnings ( 2,713 ) ( 2,244 ) Unrealized gain/loss ( 561 ) - Other ( 1,986 ) ( 3,862 ) Total deferred tax liability ( 21,720 ) ( 18,005 ) Net deferred tax asset (liability) $ ( 1,575 ) $ 732 |
Summary of Operating Loss Carryforwards | Tax operating loss carryforwards totaled $ 140.0 million (gross) at December 31, 2023. These operating losses will expire as shown in the table below. Tax operating losses Expiration (in thousands) $ 2,411 2023 - 2028 - 2029 - 2034 1,811 2035 - 2040 718 2041 - 2046 135,053 Indefinite $ 139,993 |
Schedule of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows: 2023 2022 2021 (In thousands) Balance at beginning of year $ 631 $ 18,618 $ 18,665 Additions for tax positions related to the current year 192 482 3 Reductions for tax positions related to the prior year ( 550 ) ( 18,469 ) ( 50 ) Balance at end of year $ 273 $ 631 $ 18,618 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities Related to Restructuring and Others Charges | Current other accrued liabilities consist of the following: December 31, 2023 2022 (In thousands) Accrued vendor costs $ 5,553 $ 4,357 Property, sales and other taxes 9,336 4,341 Commissions payable 319 1,289 Payroll taxes 1,951 2,521 Accrued restructuring costs 630 2,812 Accrued severance - 990 Accrued insurance 1,062 - Other 3,478 2,988 Total $ 22,329 $ 19,298 |
Stock-Based Compensation and _2
Stock-Based Compensation and Stock Awards (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2022 579,804 $ 23.34 Granted 330,696 22.93 Vested ( 250,176 ) 23.42 Forfeited ( 50,493 ) 23.92 Unvested at December 31, 2023 609,831 $ 23.04 |
Schedule of Assumptions Used in Monte Carlo Simulation | Assumptions used in the Monte Carlo simulation are as follows: 2023 2022 2021 Grant date October 28, 2023 October 28, 2022 October 28, 2021 Performance period October 1, 2023 to September 30, 2026 October 1, 2022 to September 30, 2025 October 1, 2021 to September 30, 2024 Volatility 49.0 % 57.3 % 56.1 % Risk-free interest rate 4.9 % 4.4 % 0.8 % Grant date price $ 22.78 $ 23.28 $ 23.54 |
Summary of PSA Activity | The Company’s Performance Unit activity and related information is presented below: Number of Weighted Unvested balance at December 31, 2022 331,820 $ 29.06 Granted 147,053 24.80 Forfeited ( 72,292 ) 32.05 Unvested balance at December 31, 2023 406,581 $ 26.99 |
Schedule of DSA Activity | The Company ’s DSA activity for the year ended December 31, 2023 is presented below: DSA Number Weighted Unvested balance at December 31, 2022 71,935 $ 24.85 Granted 56,816 24.14 Vested ( 50,877 ) 25.24 Unvested balance at December 31, 2023 77,874 $ 24.08 |
Schedule of Information for Stock Option Plans | The following table summarizes information for equity compensation plans in effect as of December 31, 2023: Number of (1) Weighted- (2) Number of Plan category (a) (b) (c) Equity compensation plans approved by stockholders 406,581 $ 26.99 634,997 Total 406,581 $ 26.99 634,997 (1) Excludes 687,705 shares of unvested RSAs and DSAs, which were granted pursuant to the 2017 Plan. Includes 406,581 unvested Performance Units shown at 100 % level of performance achievement. (2) The weighted average exercise price does not take into account 406,581 unvested Performance Units, which do not have an exercise price. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 2021 (In thousands, except per Net income (loss) $ 604 $ ( 1,624 ) $ ( 128,493 ) Weighted average basic common shares outstanding 34,174 34,237 35,331 Effect of dilutive securities - stock options and awards 299 - - Total shares and dilutive securities 34,473 34,237 35,331 Basic net income (loss) per common share $ 0.02 $ ( 0.05 ) $ ( 3.63 ) Diluted net income (loss) per common share $ 0.02 $ ( 0.05 ) $ ( 3.63 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the years ended December 31, 2023, 2022 and 2021, 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, 2023 2022 2021 (In thousands) Director stock awards - - 62 Stock options - - 46 Performance share units - - 325 Restricted stock awards - - 485 |
Organization - Additional Infor
Organization - Additional Information (Details) $ in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jul. 31, 2023 USD ($) | Jul. 31, 2023 CAD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2023 CAD ($) | Mar. 31, 2023 Segment | Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||||
Number of reportable business segments | Segment | 3 | 3 | ||||||
Purchase price | $ 82,287 | $ 0 | $ 0 | |||||
Number of geographic segments | Segment | 3 | |||||||
Great North Wellhead and Frac | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, percentage of voting interests acquired | 100% | 100% | 100% | 100% | ||||
Purchase price | $ 79,800 | $ 105 | $ 79,800 | $ 105 | ||||
Fair value of the contingent consideration | $ 22,800 | $ 22,800 | ||||||
Great North Wellhead and Frac | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value of the contingent consideration | $ 30 | $ 30 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) Project | Dec. 31, 2022 USD ($) Project | Dec. 31, 2021 USD ($) | |
Accounting Policies [Line Items] | ||||
Accrued bonuses | $ 5,500 | |||
Prepaids expenses | $ 14,119 | 19,874 | ||
Outstanding cash balance | $ 4,100 | |||
Amount to maintain by company, description | the outstanding letters of credit plus 5% at all times | |||
Trade receivables reduced amount | $ 6,500 | 5,000 | ||
Inventory reserves | 66,200 | 75,900 | ||
Goodwill impairment loss | 0 | |||
Restructuring and other charges | 3,245 | 13,364 | $ 78,933 | |
Inventory write-down | 0 | 0 | 66,910 | |
Severance | 374 | 951 | 3,760 | |
Unbilled receivables | $ 148,429 | $ 144,428 | ||
Number of projects | Project | 75 | 79 | ||
Percentage of total revenues | 25.50% | 34.70% | ||
Percentage of product revenues | 40% | 52.10% | ||
Gain (loss) in foreign currency exchange transactions | $ 2,000 | $ 3,000 | 700 | |
2018 Global Strategic Plan | ||||
Accounting Policies [Line Items] | ||||
Inventory write-down | 19,300 | |||
Severance | 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 | $ 1,000 | 400 | 900 | |
Restructuring costs | 6,800 | |||
Over Time Method | ||||
Accounting Policies [Line Items] | ||||
Unbilled receivables | $ 90,200 | $ 92,600 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) $ in Thousands, $ in Millions | 1 Months Ended | 5 Months Ended | 12 Months Ended | ||||||||
Jul. 31, 2023 USD ($) | Jul. 31, 2023 CAD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||||
Business Acquisition [Line Items] | |||||||||||
Purchase price | $ 82,287 | $ 0 | $ 0 | ||||||||
Contingent consideration | [1] | $ 1,208 | 1,208 | 0 | |||||||
Goodwill | 16,654 | [2] | 16,654 | [2] | 0 | ||||||
Acquisition related costs | 6,500 | ||||||||||
Revenues of acquired business since acquisition date | 35,200 | ||||||||||
Net income of acquired business since acquisition date | 2,700 | ||||||||||
Fair Value, Inputs, Level 3 [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Contingent consideration | [1] | 1,208 | 1,208 | $ 0 | |||||||
Great North Wellhead and Frac [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price | $ 79,800 | $ 105 | $ 79,800 | $ 105 | |||||||
Business acquisition, percentage of voting interests acquired | 100% | 100% | |||||||||
Contingent consideration | $ 3,600 | $ 3,600 | |||||||||
Reduction of fair value of contigent consideration | $ 2,300 | $ 2,300 | |||||||||
Fair value of the contingent consideration | 22,800 | 22,800 | |||||||||
Goodwill | $ 16,759 | $ 16,759 | |||||||||
Great North Wellhead and Frac [Member] | Maximum [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Fair value of the contingent consideration | $ 30 | 30 | |||||||||
Great North Wellhead and Frac [Member] | Minimum [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Fair value of the contingent consideration | $ 0 | ||||||||||
[1] As of December 31, 2023, contingent consideration includes certain amounts in other long-term liabilities on the Company’s consolidated balance sheets. As of December 31, 2023, the Goodwill balance is included in long-lived assets in the Well Construction business segment. |
Business Acquisitions - Pro For
Business Acquisitions - Pro Forma Consolidated Results of Operations (Details) - Great North Wellhead and Frac [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Revenues | $ 478,874 | $ 449,099 |
Net income (loss) | $ 9,535 | $ 835 |
Business Acquisitions - Summary
Business Acquisitions - Summary of Consideration Transferred to Acquire Great North (Details) - Great North Wellhead and Frac [Member] $ in Thousands | 1 Months Ended |
Jul. 31, 2023 USD ($) | |
Business Acquisition [Line Items] | |
Cash | $ 84,097 |
Contingent consideration | 3,571 |
Total | $ 87,668 |
Business Acquisitions - Purchas
Business Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | [1] | Jul. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 16,654 | $ 0 | |||
Great North Wellhead and Frac [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 1,810 | ||||
Accounts receivable | 16,499 | ||||
Prepaid expenses and other current assets | 609 | ||||
Inventory | 16,068 | ||||
Property, plant and equipment | 29,338 | ||||
Right of use assets | 11,115 | ||||
Intangible assets (1) | [2] | 22,263 | |||
Total assets acquired | 97,702 | ||||
Accounts payable | 7,034 | ||||
Accrued expenses | 3,522 | ||||
Deferred revenue | 47 | ||||
Lease liability, current | 11,115 | ||||
Deferred taxes | 5,075 | ||||
Total liabilities assumed | 26,793 | ||||
Net identifiable assets acquired | 70,909 | ||||
Goodwill | 16,759 | ||||
Net assets acquired | $ 87,668 | ||||
[1] As of December 31, 2023, the Goodwill balance is included in long-lived assets in the Well Construction business segment. (1) Includes $ 4.0 million of trademarks with a weighted average useful life of 10 years, $ 3.6 million of patents with a weighted average useful life of 15 years, and $ 14.7 million of customer relationships with a weighted average useful life of 10 years. See “Goodwill and Intangible Assets,” Note 11 of Notes to the Consolidated Financial Statements for further information regarding intangible assets. |
Business Acquisitions - Purch_2
Business Acquisitions - Purchase Price Allocation (Parenthetical) (Details) - Great North Wellhead and Frac [Member] $ in Millions | 1 Months Ended |
Jul. 31, 2023 USD ($) | |
Trademarks [Member] | |
Business Acquisition [Line Items] | |
Acquired amount | $ 4 |
Weighted-average useful lives in years | 10 years |
Patents [Member] | |
Business Acquisition [Line Items] | |
Acquired amount | $ 3.6 |
Weighted-average useful lives in years | 15 years |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Acquired amount | $ 14.7 |
Weighted-average useful lives in years | 10 years |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Level 3 | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Expected revenue volatility | 6.70% |
Revenue discount rate | 8.40% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Company's Contingent Consideration Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Liability: | |||
Contingent consideration | [1] | $ 1,208 | $ 0 |
Total liabilities | 1,208 | 0 | |
Level 1 | |||
Liability: | |||
Contingent consideration | [1] | 0 | 0 |
Total liabilities | 0 | 0 | |
Level 2 | |||
Liability: | |||
Contingent consideration | [1] | 0 | 0 |
Total liabilities | 0 | 0 | |
Level 3 | |||
Liability: | |||
Contingent consideration | [1] | 1,208 | 0 |
Total liabilities | $ 1,208 | $ 0 | |
[1] As of December 31, 2023, contingent consideration includes certain amounts in other long-term liabilities on the Company’s consolidated balance sheets. |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Reconciliation of Changes in the Fair Value of the Company's Earn-out Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |||
Beginning period balance | $ 0 | $ 0 | $ 0 |
Additions to contingent consideration | 3,571 | 0 | 0 |
Payments of contingent consideration | 0 | 0 | 0 |
Fair value adjustment of earn-out liabilities | (2,341) | 0 | 0 |
Currency translation adjustment | (22) | 0 | 0 |
Ending period balance | $ 1,208 | $ 0 | $ 0 |
Revision to Previously Report_3
Revision to Previously Reported Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Trade receivables, net | $ 135,569 | $ 90,861 | $ 100,490 | |
Other current assets | 9,699 | 32,438 | ||
Total current assets | 719,717 | 750,024 | 745,052 | |
Total assets | 1,028,181 | 969,951 | 1,009,929 | |
Total stockholders equity | $ 881,260 | 872,352 | 896,611 | $ 1,041,528 |
As Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Trade receivables, net | 91,504 | 100,987 | ||
Other current assets | 34,359 | |||
Total current assets | 752,588 | 745,549 | ||
Total assets | 972,515 | 1,010,426 | ||
Total stockholders equity | 874,916 | 897,108 | ||
Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Trade receivables, net | (643) | (497) | ||
Other current assets | (1,921) | |||
Total current assets | (2,564) | (497) | ||
Total assets | (2,564) | (497) | ||
Total stockholders equity | $ (2,564) | $ (497) |
Revision to Previously Report_4
Revision to Previously Reported Financial Information - Statement of Income (Loss) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Total revenues | $ 424,060 | $ 361,924 | $ 322,448 |
Restructuring and other charges | 3,245 | 13,364 | 78,933 |
Operating income (loss) | 5,280 | 454 | (125,335) |
Income (loss) before income taxes | 13,468 | 4,703 | (125,547) |
Net Income (Loss) | $ 604 | $ (1,624) | $ (128,493) |
Net income (loss) per common share: | |||
Basic | $ 0.02 | $ (0.05) | $ (3.63) |
Diluted | $ 0.02 | $ (0.05) | $ (3.63) |
As Reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Total revenues | $ 362,070 | $ 322,945 | |
Restructuring and other charges | 11,443 | ||
Operating income (loss) | 2,521 | (124,838) | |
Income (loss) before income taxes | 6,770 | (125,050) | |
Net Income (Loss) | $ 443 | $ (127,996) | |
Net income (loss) per common share: | |||
Basic | $ 0.01 | $ (3.62) | |
Diluted | $ 0.01 | $ (3.62) | |
Adjustments | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Total revenues | $ (146) | $ (497) | |
Restructuring and other charges | 1,921 | ||
Operating income (loss) | (2,067) | (497) | |
Income (loss) before income taxes | (2,067) | (497) | |
Net Income (Loss) | $ (2,067) | $ (497) | |
Net income (loss) per common share: | |||
Basic | $ (0.06) | $ (0.01) | |
Diluted | $ (0.06) | $ (0.01) |
Revision to Previously Report_5
Revision to Previously Reported Financial Information - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Reduction to opening retained earnings | $ 950,719 | $ 950,168 | |
Adjustments | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Reduction to opening retained earnings | $ 500 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues From Contracts With Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 424,060 | $ 361,924 | $ 322,448 | |
Products | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 271,021 | 240,762 | 213,263 | |
Products | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 271,021 | 240,762 | 213,263 | |
Subsea Products | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 198,321 | 194,237 | 168,361 | |
Well construction | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 72,700 | 46,525 | 44,902 | |
Subsea Services | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 72,241 | 60,937 | 58,086 | |
Well construction Services | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 33,439 | 18,192 | 16,057 | |
Total Services (excluding rental tools) | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 105,680 | 79,129 | 74,143 | |
Sub Leasing | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 29,023 | 33,694 | 27,970 | |
Well Construction Leasing | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 18,336 | 8,339 | 7,072 | |
Leasing | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | [1] | $ 47,359 | $ 42,033 | $ 35,042 |
[1] (1) As of December 31, 2023, revenues from contracts with customers includes leasing revenues. Leasing revenue was previously excluded in the Annual Report on Form 10-K filed as of December 31, 2022. |
Revenue Recognition - Contract
Revenue Recognition - Contract Asset and Liability (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Contract Assets | |
Contract Assets at December 31, 2022 | $ 144,428 |
Additions | 417,248 |
Transfers to Accounts Receivable | (413,247) |
Contract Assets at December 31, 2023 | 148,429 |
Contract Liabilities | |
Contract Liabilities at December 31, 2022 | 8,020 |
Contract Liabilities at December 31, 2023 | 7,583 |
Other Current Liabilities | |
Contract Liabilities | |
Contract Liabilities at December 31, 2022 | 8,020 |
Additions | 6,364 |
Revenue Recognized | (6,801) |
Contract Liabilities at December 31, 2023 | $ 7,583 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Receivables, included in trade receivables | $ 148,429 | $ 144,428 |
Unbilled receivables | 148,429 | 144,428 |
Performance obligation | 43,000 | |
Receivables (Included in Trade Receivables) | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Receivables, included in trade receivables | 148,400 | 144,400 |
Unbilled receivables | $ 90,200 | $ 92,600 |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information (Details 1) | Dec. 31, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-12-31 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 98.60% |
Expected timing of satisfaction period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 1.40% |
Expected timing of satisfaction period | 0 years |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 34,950 | $ 21,956 |
Work in progress | 33,911 | 38,263 |
Finished goods | 125,732 | 85,785 |
Total inventory | $ 194,593 | $ 146,004 |
Assets Held For Sale (Details)
Assets Held For Sale (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Assets held for sale | $ 0 | $ 0 | $ 19,383,000 | |||
Gain on sale of facility | 8,754,000 | $ 20,019,000 | $ 4,482,000 | |||
Forge Facility | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Assets held for sale | 0 | 0 | ||||
Net proceeds from sale of productive assets | 10,900,000 | $ 18,900,000 | ||||
Gain on sale of facility | $ 100,000 | $ 18,000,000 | ||||
Realized gain on assets held for sale | $ 800,000 | |||||
Aftermarket facility | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net proceeds from sale of productive assets | $ 14,500,000 | |||||
Gain on sale of facility | $ 5,900,000 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Inventory write-down | $ 0 | $ 0 | $ 66,910 | |
Additions for costs expensed | 0 | |||
Restructuring reserve | 630 | 3,802 | ||
Severance cost | 374 | 951 | 3,760 | |
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 | |||
Additions for costs expensed | 3,200 | 13,400 | ||
Restructuring reserve | 2,300 | |||
Long-lived asset write-downs | $ 4,200 | |||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of Intangible Assets, Indefinite-Lived (Excluding Goodwill) | |||
Severance cost | $ 1,000 | $ 400 | 900 | |
Restructuring costs | 6,800 | |||
2021 Global Strategic Plan | Corporate, Non-Segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Long-lived asset write-downs | 3,200 | |||
2021 Global Strategic Plan | Machinery and equipment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventory write-down | $ 2,500 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |||
Inventory write-down | $ 0 | $ 0 | $ 66,910 |
Severance | 374 | 951 | 3,760 |
Long-lived asset write-down | 0 | 5,678 | 4,240 |
Other | 2,871 | 6,735 | 4,023 |
Total impairment, restructuring and other charges | $ 3,245 | $ 13,364 | $ 78,933 |
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, 2023 USD ($) | |
Restructuring and Related Activities [Abstract] | |
Beginning balance | $ 3,802 |
Additions for costs expensed | $ 0 |
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring And Other Charges |
Reductions for payments | $ (645) |
Other | 2,527 |
Ending balance | $ 630 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 622,003 | $ 562,300 |
Less: Accumulated depreciation | (439,776) | (410,850) |
Property, Plant and Equipment Less Accumulated Depreciation | 182,227 | 151,450 |
Total property, plant and equipment | 217,631 | 181,270 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,910 | 7,240 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 174,085 | 169,315 |
Machinery, equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 440,008 | 385,745 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,357 | 9,858 |
Construction work in process | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 25,047 | $ 19,962 |
Minimum [Member] | Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | |
Minimum [Member] | Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years | |
Minimum [Member] | 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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 26.7 | $ 26.6 | $ 27.2 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Changes in Goodwill (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Beginning balance | $ 0 | |
Addition due to business combination | 16,800 | |
Impairments | 0 | |
Foreign currency translation | (100) | |
Goodwill, Ending balance | $ 16,654 | [1] |
[1] As of December 31, 2023, the Goodwill balance is included in long-lived assets in the Well Construction business segment. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived, Gross Book Value | $ 62,231 | $ 40,499 |
Accumulated Amortization | (20,269) | (16,826) |
Finite-Lived, Foreign Currency Translation | (21) | (325) |
Finite-Lived, Net Book Value | 41,941 | 23,348 |
Trademarks | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived, Gross Book Value | 12,091 | 8,233 |
Accumulated Amortization | (2,811) | (2,118) |
Finite-Lived, Foreign Currency Translation | 4 | (79) |
Finite-Lived, Net Book Value | $ 9,284 | $ 6,036 |
Trademarks | Minimum [Member] | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 10 years | 10 years |
Trademarks | Maximum | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | 15 years |
Patents | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived, Gross Book Value | $ 9,686 | $ 6,055 |
Accumulated Amortization | (4,200) | (3,699) |
Finite-Lived, Foreign Currency Translation | (22) | 0 |
Finite-Lived, Net Book Value | $ 5,464 | $ 2,356 |
Patents | Minimum [Member] | ||
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 | $ 40,291 | $ 26,028 |
Accumulated Amortization | (13,095) | (10,878) |
Finite-Lived, Foreign Currency Translation | (3) | (234) |
Finite-Lived, Net Book Value | $ 27,193 | $ 14,916 |
Customer relationships | Minimum [Member] | ||
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 | $ 163 | $ 183 |
Accumulated Amortization | (163) | (131) |
Finite-Lived, Foreign Currency Translation | 0 | (12) |
Finite-Lived, Net Book Value | $ 0 | $ 40 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 3.6 | $ 2.8 | $ 3 |
Amortization expense for 2024 | 4.9 | ||
Amortization expense for 2025 | 4.8 | ||
Amortization expense for 2026 | 4.8 | ||
Amortization expense for 2027 | 4.6 | ||
Amortization expense for 2028 | $ 4.6 |
Leases and Lease Commitments -
Leases and Lease Commitments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee Lease Description [Line Items] | |||
Lease expense recognize on a straight-line basis | $ 1.7 | $ 0.6 | |
Lease expense incurred | $ 4.4 | $ 2.5 | $ 2.9 |
Leases and Lease Commitments _2
Leases and Lease Commitments - Schedule of Classification of Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Operating | $ 16,343 | $ 4,872 |
Finance | $ 1,086 | $ 132 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Total lease assets | $ 17,429 | $ 5,004 |
Current | ||
Operating | 2,118 | 1,054 |
Finance | $ 188 | $ 43 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Noncurrent | ||
Operating | $ 14,554 | $ 3,807 |
Finance | $ 915 | $ 98 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Total lease liabilities | $ 17,775 | $ 5,002 |
Leases and Lease Commitments _3
Leases and Lease Commitments - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessor Lease Description [Line Items] | |||
Total lease cost | $ 4,541 | $ 2,628 | $ 3,071 |
Selling, General and Administrative | |||
Lessor Lease Description [Line Items] | |||
Operating lease cost | 2,701 | 1,910 | 1,602 |
Short-term lease costs | 1,654 | 621 | 1,296 |
Amortization of leased Assets | 145 | 86 | 114 |
Net Interest Expense | |||
Lessor Lease Description [Line Items] | |||
Interest on lease liabilities | $ 41 | $ 11 | $ 59 |
Leases and Lease Commitments _4
Leases and Lease Commitments - Schedule of Maturity of Lease Obligations (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Operating Leases | |
2024 | $ 2,993 |
2025 | 2,789 |
2026 | 2,547 |
2027 | 2,450 |
2028 | 2,119 |
After 2028 | 11,169 |
Total lease payments | 24,067 |
Less: interest | 7,395 |
Present value of lease liabilities | 16,672 |
Finance Leases | |
2024 | 363 |
2025 | 341 |
2026 | 345 |
2027 | 214 |
2028 | 0 |
After 2028 | 0 |
Total lease payments | 1,263 |
Less: interest | 160 |
Present value of lease liabilities | 1,103 |
Total | |
2024 | 3,356 |
2025 | 3,130 |
2026 | 2,892 |
2027 | 2,664 |
2028 | 2,119 |
After 2028 | 11,169 |
Total lease payments | 25,330 |
Less: interest | 7,555 |
Present value of lease liabilities | $ 17,775 |
Leases and Lease Commitments _5
Leases and Lease Commitments - Schedule of Lease Term and Discount Rate for Operating and Finance Leases (Details) | Dec. 31, 2023 |
Leases [Abstract] | |
Weighted average remaining lease term, Operating leases | 9 years 10 months 24 days |
Weighted average remaining lease term, Finance leases | 3 years 7 months 6 days |
Weighted average discount rate, Operating leases | 8.10% |
Weighted average discount rate, Finance leases | 8.90% |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 2,356 | $ 1,949 | $ 1,591 |
Operating cash flows from finance leases | 42 | 11 | 59 |
Financing cash flows from finance leases | $ 124 | $ 83 | $ 109 |
Business Segments - Additional
Business Segments - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 Segment | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) Segment Customer | Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) Customer | |
Concentration Risk [Line Items] | |||||
Inventory write-down | $ 0 | $ 0 | $ 66,910 | ||
Number of reportable business segments | Segment | 3 | 3 | |||
Number of geographic segments | Segment | 3 | ||||
Restructuring and Related Cost, Incurred Cost | $ 0 | ||||
Revenues | $ 424,060 | $ 361,924 | $ 322,448 | ||
Number of major customers | Customer | 15 | 15 | 15 | ||
Long-lived asset write-down | $ 0 | $ 5,678 | $ 4,240 | ||
No other customer | |||||
Concentration Risk [Line Items] | |||||
Number of major customers | Customer | 0 | 0 | 0 | ||
2021 Global Strategic Plan | |||||
Concentration Risk [Line Items] | |||||
Inventory write-down | $ 47,700 | ||||
Restructuring and Related Cost, Incurred Cost | $ 3,200 | $ 13,400 | |||
Well construction | 2021 Global Strategic Plan | |||||
Concentration Risk [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | (1,900) | ||||
Subsea Services | 2021 Global Strategic Plan | |||||
Concentration Risk [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | 400 | ||||
Subsea Products | 2021 Global Strategic Plan | |||||
Concentration Risk [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | $ 2,500 | ||||
Customer Concentration Risk | Revenue from Contract with Customer, Product and Service Benchmark | No other customer | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 10% | 10% | 10% | ||
Customer Concentration Risk | Revenue from Contract with Customer, Product and Service Benchmark | Customer 15 | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 59% | 60% | 59% | ||
Customer Concentration Risk | Revenue from Contract with Customer, Product and Service Benchmark | Chevron | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 11% | 10% | 12% | ||
Non-US | |||||
Concentration Risk [Line Items] | |||||
Revenues | $ 317,600 | $ 239,600 | $ 205,700 | ||
US | |||||
Concentration Risk [Line Items] | |||||
Revenues | $ 106,400 | 122,300 | 116,700 | ||
Previously Reported | |||||
Concentration Risk [Line Items] | |||||
Number of geographic segments | Segment | 3 | ||||
Revenues | $ 362,070 | $ 322,945 |
Business Segments - Schedule of
Business Segments - Schedule of Segment Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 424,060 | $ 361,924 | $ 322,448 | |
Depreciation and amortization | 30,324 | 29,421 | 30,381 | |
Operating income (loss) | 5,280 | 454 | (125,335) | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | [1] | 2,860 | 4,480 | 4,534 |
Operating income (loss) | [1] | (32,501) | (31,105) | (66,525) |
Segment depreciation and amortization | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 27,464 | 24,941 | 25,847 | |
Segment operating income (loss) | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 37,781 | 31,559 | (58,810) | |
Subsea Products | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 198,321 | 194,252 | 168,363 | |
Operating income (loss) | 8,522 | 8,917 | (21,863) | |
Subsea Products | Segment depreciation and amortization | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 6,694 | 7,691 | 7,168 | |
Subsea Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 101,264 | 94,186 | 85,875 | |
Operating income (loss) | 18,411 | 8,374 | (22,370) | |
Subsea Services | Segment depreciation and amortization | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 10,259 | 10,876 | 12,138 | |
Well construction | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 124,475 | 73,486 | 68,210 | |
Operating income (loss) | 10,848 | 14,268 | (14,577) | |
Well construction | Segment depreciation and amortization | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ 10,511 | $ 6,374 | $ 6,541 | |
[1] Corporate includes the expenses and assets of the Company’s corporate office functions, legal and other administrative expenses that are managed at a consolidated level. |
Business Segments - Schedule _2
Business Segments - Schedule of Assets by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | $ 308,464 | $ 219,927 | |
Total assets | 1,028,181 | 969,951 | $ 1,009,929 |
Operating Segments | Western Hemisphere | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | 118,181 | 528,035 | |
Total assets | 656,333 | 1,077,232 | |
Operating Segments | Eastern Hemisphere | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | 232,584 | 202,994 | |
Total assets | 622,755 | 581,950 | |
Operating Segments | Asia-Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | 51,401 | 53,922 | |
Total assets | 190,687 | 185,285 | |
Operating Segments | Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | 79,202 | 0 | |
Total assets | 111,362 | 0 | |
Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total long-lived assets | (172,904) | (565,024) | |
Total assets | $ (552,956) | $ (874,516) |
Income Tax - Schedule of Income
Income Tax - Schedule of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (15,464) | $ (33,082) | $ (135,403) |
Foreign | 28,932 | 37,785 | 9,856 |
Income (loss) before income taxes | $ 13,468 | $ 4,703 | $ (125,547) |
Income Tax - Schedule of Inco_2
Income Tax - Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ (451) | $ (8,632) | $ 833 |
Foreign | 15,992 | 8,635 | 10,579 |
Total current | 15,541 | 3 | 11,412 |
Deferred: | |||
Federal | 343 | (289) | (56) |
Foreign | (3,020) | 6,613 | (8,410) |
Total deferred | (2,677) | 6,324 | (8,466) |
Total | $ 12,864 | $ 6,327 | $ 2,946 |
Income Tax - Schedule of Effect
Income Tax - Schedule of Effective Income Tax Rate Reflected in Provision for Income Taxes and U.S. Federal Statutory Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax statutory rate | 21% | 21% | 21% |
Change in withholding tax reserve | 3.86% | (4.52%) | 0.79% |
Foreign income tax rate differential | 7.37% | 31.51% | 0% |
Foreign development tax incentive | (1.06%) | 12.32% | (0.24%) |
Exempt income | (1.30%) | (4.54%) | 0.54% |
Foreign taxes and inclusions (net of FTC) | 6.16% | 82.63% | (1.15%) |
Nondeductible expenses | 21.88% | 38.72% | (2.82%) |
Change in valuation allowance | 5.80% | 336.85% | (21.87%) |
Changes to prior year accruals | 33.91% | 37.56% | 0.23% |
Deferred tax rate change | (0.13%) | 0.77% | 0.11% |
Change in uncertain tax positions | (3.54%) | (420.45%) | (0.19%) |
Interest on net equity | 0% | 9.23% | 0.41% |
General business credits | (7.09%) | (13.91%) | 1.31% |
Branch income | 9.07% | 9.93% | (0.29%) |
Other | (0.42%) | (2.57%) | (0.19%) |
Effective tax rate | 95.51% | 134.53% | (2.36%) |
Income Tax - Components of Net
Income Tax - Components of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Foreign tax credit carryforward | $ 19,179 | $ 17,577 |
General business credit carryforward | 8,008 | 7,053 |
Inventory | 11,156 | 9,564 |
Net operating losses | 29,321 | 32,278 |
Allowance for doubtful accounts | 440 | 970 |
Reserve for accrued liabilities | 3,302 | 2,769 |
Stock options and awards | 1,350 | 904 |
Unrealized gain/loss | 810 | |
Disallowed interest carryforward | 1,437 | 2,662 |
Capitalized R&D costs | 4,653 | 3,282 |
Other | 2,162 | 820 |
Total deferred tax assets | 81,008 | 78,689 |
Valuation allowance | (60,863) | (59,952) |
Deferred tax liabilities: | ||
Property, plant and equipment | (7,346) | (7,652) |
Goodwill & Intangibles | (6,263) | (1,519) |
Deferred revenue | (2,851) | (2,728) |
Reserve for unremitted earnings | (2,713) | (2,244) |
Unrealized gain/loss | (561) | 0 |
Other | (1,986) | (3,862) |
Total deferred tax liability | (21,720) | (18,005) |
Net deferred tax liability | $ (1,575) | |
Net deferred tax asset | $ 732 |
Income Tax - Additional Informa
Income Tax - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Unusual Risk Or Uncertainty [Line Items] | ||||
Foreign tax credit carryforward | $ 19,179 | $ 17,577 | ||
General business credit carryforward | 8,008 | 7,053 | ||
Gross operating loss carryforwards | 139,993 | |||
Valuation allowance | 60,863 | 59,952 | ||
Deferred foreign tax liability | 2,713 | 2,244 | ||
Uncertain tax positions | 273 | 631 | $ 18,618 | $ 18,665 |
Income tax penalties and interest accrued | 100 | 200 | 2,400 | |
Unrecognized tax benefits that would impact effective tax rate | 300 | |||
Income taxes paid | 13,700 | $ 1,300 | $ 2,000 | |
Canada | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Deferred foreign tax liability | 2,700 | |||
Domestic Country | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Gross operating loss carryforwards | 135,500 | |||
Indefinite | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Foreign tax credit carryforward | 3,000 | |||
Gross operating loss carryforwards | 135,053 | |||
Indefinite | Domestic Country | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Gross operating loss carryforwards | 134,400 | |||
2024-2032 | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Foreign tax credit carryforward | 16,200 | |||
2037-2043 | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
General business credit carryforward | 8,000 | |||
Covid 19 | ||||
Unusual Risk Or Uncertainty [Line Items] | ||||
Net operating loss carryback claims | 15,800 | |||
Income taxes paid | $ 5,200 |
Income Tax - Schedule of Operat
Income Tax - Schedule of Operating Loss Carryforward (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Gross operating loss carryforwards | $ 139,993 |
2023-2028 | |
Operating Loss Carryforwards [Line Items] | |
Gross operating loss carryforwards | 2,411 |
2029-2034 | |
Operating Loss Carryforwards [Line Items] | |
Gross operating loss carryforwards | 0 |
2035-2040 | |
Operating Loss Carryforwards [Line Items] | |
Gross operating loss carryforwards | 1,811 |
2041-2046 | |
Operating Loss Carryforwards [Line Items] | |
Gross operating loss carryforwards | 718 |
Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Gross operating loss carryforwards | $ 135,053 |
Income Tax - Schedule of Uncert
Income Tax - Schedule of Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 631 | $ 18,618 | $ 18,665 |
Additions for tax positions related to the current year | 192 | 482 | 3 |
Reductions for tax positions related to the prior year | (550) | (18,469) | (50) |
Ending balance | $ 273 | $ 631 | $ 18,618 |
Other Accrued Liabilities - Sch
Other Accrued Liabilities - Schedule of Accrued Liabilities Related to Restructuring and Others Charges (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Accrued vendor costs | $ 5,553 | $ 4,357 |
Property, sales and other taxes | 9,336 | 4,341 |
Commissions payable | 319 | 1,289 |
Payroll taxes | 1,951 | 2,521 |
Accrued restructuring costs | 630 | 2,812 |
Accrued severance | 0 | 990 |
Accrued insurance | 1,062 | 0 |
Other | 3,478 | 2,988 |
Total | $ 22,329 | $ 19,298 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Postemployment Benefits [Abstract] | |||
Employee benefit plans, contribution expense | $ 3.3 | $ 2.8 | $ 1 |
Stock Repurchase Plan - Additio
Stock Repurchase Plan - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 22, 2022 | Feb. 26, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchased authorized amount | $ 100,000 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period | 250,176 | ||||
Vested (in dollars per share) | $ 23.42 | ||||
Stock repurchased and canceled | $ (20,807) | $ (24,191) | |||
2019 Stock Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchased authorized amount | $ 100,000 | ||||
Stock repurchased and canceled (in shares) | 0 | 888,197 | 1,109,187 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period | 46,172 | ||||
Vested (in dollars per share) | $ 23.7 | ||||
Average price per share | $ 23.41 | $ 21.79 | |||
Stock repurchased and canceled | $ 20,800 | $ 24,200 |
Stock-Based Compensation and _3
Stock-Based Compensation and Stock Awards - Stock Options - Additional Information (Details) - Employee Stock Option - shares | 12 Months Ended | ||||
May 12, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | May 12, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Antidilutive securities (in shares) | 0 | 0 | 46,000 | ||
2017 Plan [Member] | |||||
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 |
Stock-Based Compensation and _4
Stock-Based Compensation and Stock Awards - Restricted Stock Awards - Additional Information (Details) - Restricted stock awards [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards compensation expense | $ 6.1 | $ 6.1 | $ 8 |
Income tax benefit recognized | 1.2 | $ 1.1 | $ 1.3 |
Unrecognized compensation expense related to share based compensation | $ 13.3 | ||
Period of recognition for unrecognized compensation expense related to nonvested stock options (in years) | 2 years 2 months 12 days | ||
Antidilutive securities (in shares) | 0 | 0 | 485,000 |
Stock-Based Compensation and _5
Stock-Based Compensation and Stock Awards - Summary of RSA Activity (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Restricted Stock | |
Unvested options, Beginning Balance (in shares) | shares | 579,804 |
Granted (in shares) | shares | 330,696 |
Vested (in shares) | shares | (250,176) |
Forfeited (in shares) | shares | (50,493) |
Unvested options, Ending Balance (in shares) | shares | 609,831 |
Weighted-Average Grant Date Fair Value | |
Unvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 23.34 |
Granted (in dollars per share) | $ / shares | 22.93 |
Vested (in dollars per share) | $ / shares | 23.42 |
Forfeited (in dollars per share) | $ / shares | 23.92 |
Unvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 23.04 |
Stock-Based Compensation and _6
Stock-Based Compensation and Stock Awards - Performance Unit Awards - Additional Information (Details) - Performance Unit Awards [Member] $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) Component $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Oct. 28, 2023 $ / shares | Oct. 28, 2022 $ / shares | Oct. 28, 2021 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price (in dollars per share) | $ / shares | $ 22.78 | $ 23.28 | $ 23.54 | $ 24.8 | $ 29.38 | $ 29.88 |
Percentage of grant share price (as a percentage) | 108.90% | 126.20% | 126.90% | |||
Number of components companies in the Philadelphia Oil Service Index | Component | 15 | |||||
Performance unit compensation expense | $ 3.5 | $ 2.9 | $ 5.5 | |||
Income tax benefit recognized | 0 | $ 0 | $ 0.7 | |||
Unrecognized compensation expense related to share based compensation | $ 6.8 | |||||
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 | 0 | 0 | 325,000 | |||
Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Participants earning under the term (as a percentage) | 0% | |||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Participants earning under the term (as a percentage) | 200% |
Stock-Based Compensation and _7
Stock-Based Compensation and Stock Awards - Schedule of Assumptions Used in Monte Carlo Simulation (Details) - Performance Unit Awards [Member] - $ / shares | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 28, 2023 | Oct. 28, 2022 | Oct. 28, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Volatility (as a percentage) | 49% | 57.30% | 56.10% | |||
Risk-free interest rate (as a percentage) | 4.90% | 4.40% | 0.80% | |||
Grant date price (in dollars per share) | $ 22.78 | $ 23.28 | $ 23.54 | $ 24.8 | $ 29.38 | $ 29.88 |
Stock-Based Compensation and _8
Stock-Based Compensation and Stock Awards - Summary of PSA Activity (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of Performance Units | |
Unvested options, Beginning Balance (in shares) | shares | 579,804 |
Granted (in shares) | shares | 330,696 |
Vested (in shares) | shares | (250,176) |
Forfeited (in shares) | shares | (50,493) |
Unvested options, Ending Balance (in shares) | shares | 609,831 |
Weighted-Average Grant Date Fair Value | |
Unvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 23.34 |
Granted (in dollars per share) | $ / shares | 22.93 |
Vested (in dollars per share) | $ / shares | 23.42 |
Forfeited (in dollars per share) | $ / shares | 23.92 |
Unvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 23.04 |
Performance Unit Awards [Member] | |
Number of Performance Units | |
Unvested options, Beginning Balance (in shares) | shares | 331,820 |
Granted (in shares) | shares | 147,053 |
Forfeited (in shares) | shares | (72,292) |
Unvested options, Ending Balance (in shares) | shares | 406,581 |
Weighted-Average Grant Date Fair Value | |
Unvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 29.06 |
Granted (in dollars per share) | $ / shares | 24.8 |
Forfeited (in dollars per share) | $ / shares | 32.05 |
Unvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 26.99 |
Stock-Based Compensation and _9
Stock-Based Compensation and Stock Awards - Director Stock Compensation Awards - Additional Information (Details) - DSA [Member] - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fees in lieu of cash (equal to) (as a percentage) | 125% | |||
Director stock compensation awards expense | $ 1.4 | $ 1.4 | $ 1.4 | |
Income tax benefit recognized | 0.3 | $ 0.3 | $ 0.2 | |
Unrecognized compensation expense related to share based compensation | $ 1.1 | |||
Period of recognition for unrecognized compensation expense related to nonvested stock options (in years) | 1 year | |||
Antidilutive securities (in shares) | 0 |
Stock-Based Compensation and_10
Stock-Based Compensation and Stock Awards - Schedule of DSA Activity (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Restricted Stock | |
Unvested options, Beginning Balance (in shares) | shares | 579,804 |
Granted (in shares) | shares | 330,696 |
Vested (in shares) | shares | (250,176) |
Unvested options, Ending Balance (in shares) | shares | 609,831 |
Weighted Average Remaining Contractual Life (in years) | |
Unvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 23.34 |
Granted (in dollars per share) | $ / shares | 22.93 |
Vested (in dollars per share) | $ / shares | 23.42 |
Unvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 23.04 |
DSA [Member] | |
Restricted Stock | |
Unvested options, Beginning Balance (in shares) | shares | 71,935 |
Granted (in shares) | shares | 56,816 |
Vested (in shares) | shares | (50,877) |
Unvested options, Ending Balance (in shares) | shares | 77,874 |
Weighted Average Remaining Contractual Life (in years) | |
Unvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 24.85 |
Granted (in dollars per share) | $ / shares | 24.14 |
Vested (in dollars per share) | $ / shares | 25.24 |
Unvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 24.08 |
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, 2023 | Dec. 31, 2022 | |
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) | 406,581 | |
Weighted- average exercise price of outstanding options, warrants and rights (in dollars per shares) | $ 26.99 | |
Number of securities remaining available for future issuance under equity compensation plan (in shares) | 634,997 | |
Unvested stock and units (in shares) | 609,831 | 579,804 |
Percentage of achievement of performance conditions | 100% | |
Employee Stock Option | 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) | 406,581 | |
Weighted- average exercise price of outstanding options, warrants and rights (in dollars per shares) | $ 26.99 | |
Number of securities remaining available for future issuance under equity compensation plan (in shares) | 634,997 | |
RSA and DSA [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units (in shares) | 687,705 | |
Performance Unit Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units (in shares) | 406,581 | 331,820 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income (loss) | $ 604 | $ (1,624) | $ (128,493) |
Weighted average basic common shares outstanding | 34,174 | 34,237 | 35,331 |
Effect of dilutive securities - stock options and awards | 299 | 0 | 0 |
Total shares and dilutive securities | 34,473 | 34,237 | 35,331 |
Basic net income (loss) per common share | $ 0.02 | $ (0.05) | $ (3.63) |
Diluted net income (loss) per common share | $ 0.02 | $ (0.05) | $ (3.63) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Director stock awards | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 0 | 0 | 62,000 |
Employee Stock Option | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 0 | 0 | 46,000 |
Performance Unit Awards [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 0 | 0 | 325,000 |
Restricted stock awards [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 0 | 0 | 485,000 |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts (Details) - Allowance for doubtful trade receivables - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 5,017 | $ 5,247 | $ 2,155 |
Charges to costs and expenses | 1,850 | 1,748 | 3,933 |
Recoveries and write offs | (412) | (1,978) | (841) |
Balance at end of period | $ 6,455 | $ 5,017 | $ 5,247 |