Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 26, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | DRIL-QUIP INC | ||
Entity Central Index Key | 1,042,893 | ||
Trading Symbol | DRQ | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 38,136,258 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,832,300,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Products | $ 351,132,000 | $ 433,012,000 | $ 685,364,000 |
Services | 104,337,000 | 105,719,000 | 158,946,000 |
Total revenues | 455,469,000 | 538,731,000 | 844,310,000 |
Cost of sales: | |||
Products | 246,005,000 | 268,405,000 | 382,925,000 |
Services | 59,389,000 | 59,999,000 | 76,361,000 |
Total cost of sales | 305,394,000 | 328,404,000 | 459,286,000 |
Selling, general and administrative | 116,083,000 | 53,143,000 | 88,044,000 |
Engineering and product development | 42,160,000 | 44,325,000 | 48,145,000 |
Impairment and other charges | 60,968,000 | 0 | 0 |
Total costs and expenses | 524,605,000 | 425,872,000 | 595,475,000 |
Operating income (loss) | (69,136,000) | 112,859,000 | 248,835,000 |
Interest income | 3,564,000 | 3,037,000 | 948,000 |
Interest expense | (72,000) | (28,000) | (12,000) |
Income (loss) before taxes | (65,644,000) | 115,868,000 | 249,771,000 |
Income tax (benefit) provision | 34,995,000 | 22,647,000 | 57,763,000 |
Net income (loss) | $ (100,639,000) | $ 93,221,000 | $ 192,008,000 |
Earnings per common share: | |||
Basic (in dollars per share) | $ (2.69) | $ 2.48 | $ 5 |
Diluted (in dollars per share) | $ (2.69) | $ 2.47 | $ 4.98 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 37,457,413 | 37,537,000 | 38,364,000 |
Diluted (in shares) | 37,457,413 | 37,667,000 | 38,531,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income (loss) | $ (71,492) | $ (29,260) | $ 15 | $ 94 | $ 1,302 | $ 19,013 | $ 36,137 | $ 36,769 | $ (100,639) | $ 93,221 | $ 192,008 |
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | 24,117 | (49,141) | (51,060) | ||||||||
Total comprehensive income (loss) | $ (76,522) | $ 44,080 | $ 140,948 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 493,180 | $ 423,497 |
Trade receivables, net | 191,629 | 213,513 |
Inventories, net | 291,087 | 355,413 |
Deferred income taxes | 0 | 24,497 |
Prepaids and other current assets | 32,653 | 39,791 |
Total current assets | 1,008,549 | 1,056,711 |
Property, plant and equipment, net | 284,247 | 323,149 |
Deferred income taxes | 5,364 | 1,699 |
Goodwill | 47,624 | 34,371 |
Intangible assets | 38,408 | 29,594 |
Other assets | 15,613 | 15,880 |
Total assets | 1,399,805 | 1,461,404 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 33,480 | 36,108 |
Accrued income taxes | 24,714 | 24,543 |
Customer prepayments | 4,767 | 11,884 |
Accrued compensation | 11,412 | 10,829 |
Other accrued liabilities | 25,538 | 18,116 |
Total current liabilities | 99,911 | 101,480 |
Deferred income taxes | 3,432 | 3,500 |
Other long-term liabilities | 2,001 | 0 |
Total liabilities | 105,344 | 104,980 |
Commitments and contingencies (Note 13) | ||
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 at December 31, 2017 and 2016, 38,132,693 and 37,797,317 issued and outstanding at December 31, 2017 and 2016 | 372 | 375 |
Additional paid-in capital | 20,083 | 5,468 |
Retained earnings | 1,400,296 | 1,500,988 |
Accumulated other comprehensive losses | (126,290) | (150,407) |
Total stockholders' equity | 1,294,461 | 1,356,424 |
Total liabilities and stockholders' equity | $ 1,399,805 | $ 1,461,404 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 38,132,693 | 37,797,317 |
Common stock, shares outstanding (in shares) | 38,132,693 | 37,797,317 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net income (loss) | $ (100,639) | $ 93,221 | $ 192,008 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 40,974 | 31,857 | 30,477 |
Stock-based compensation expense | 14,270 | 12,217 | 13,125 |
Impairment and other non-cash charges | 60,968 | 0 | 0 |
Loss (gain) on sale of equipment | (168) | (103) | 69 |
Deferred income taxes | 17,231 | (3,400) | (3,465) |
Changes in operating assets and liabilities: | |||
Trade receivables, net | 26,112 | 106,544 | 36,729 |
Inventories, net | 37,642 | 7,873 | 28,539 |
Prepaids and other assets | 10,107 | 9,816 | (17,883) |
Excess tax benefits of stock options and awards | 0 | (135) | (70) |
Accounts payable and accrued expenses | 1,765 | (11,368) | (89,374) |
Other, net | (269) | 0 | 0 |
Net cash provided by operating activities | 107,993 | 246,522 | 190,155 |
Investing activities | |||
Purchase of property, plant and equipment | (27,622) | (25,763) | (27,079) |
Proceeds from sale of equipment | 3,170 | 357 | 424 |
Acquisition of business, net of cash acquired | (20,440) | (132,443) | 0 |
Net cash used in investing activities | (44,892) | (157,849) | (26,655) |
Financing activities | |||
Proceeds from exercise of stock options | 560 | 2,206 | 2,170 |
Excess tax benefits of stock options and awards | 0 | 135 | 70 |
Repurchase of common shares | 0 | (24,234) | (75,805) |
Net cash used in financing activities | 560 | (21,893) | (73,565) |
Effect of exchange rate changes on cash activities | 6,022 | (24,619) | (7,304) |
Increase (decrease) in cash and cash equivalents | 69,683 | 42,161 | 82,631 |
Cash and cash equivalents at beginning of year | 423,497 | 381,336 | 298,705 |
Cash and cash equivalents at end of year | $ 493,180 | $ 423,497 | $ 381,336 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2014 | $ 1,245,192 | $ 388 | $ 16,480 | $ 1,278,528 | $ (50,204) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (51,060) | (51,060) | |||
Net income (loss) | 192,008 | 192,008 | |||
Comprehensive income | 140,948 | ||||
Options exercised and awards vested | 2,170 | 0 | 2,170 | ||
Stock option expense | 13,125 | 13,125 | |||
Excess tax benefits - stock options and awards | (1,172) | (1,172) | |||
Repurchase of common stock | (75,805) | (10) | (30,603) | (45,192) | |
Ending Balance at Dec. 31, 2015 | 1,324,458 | 378 | 0 | 1,425,344 | (101,264) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (49,141) | (49,141) | |||
Net income (loss) | 93,221 | 93,221 | |||
Comprehensive income | 44,080 | ||||
Options exercised and awards vested | 2,206 | 1 | 2,205 | ||
Stock option expense | 12,217 | 12,217 | |||
Excess tax benefits - stock options and awards | (2,241) | (2,241) | |||
Repurchase of common stock | (24,234) | (4) | (6,713) | (17,517) | |
Other | (62) | 0 | 0 | (60) | (2) |
Ending Balance at Dec. 31, 2016 | 1,356,424 | 375 | 5,468 | 1,500,988 | (150,407) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | 24,117 | 0 | 24,117 | ||
Net income (loss) | (100,639) | (100,639) | |||
Comprehensive income | (76,522) | ||||
Options exercised and awards vested | 560 | 560 | |||
Stock option expense | 14,270 | 0 | 14,270 | 0 | 0 |
Other | (271) | (3) | (215) | (53) | 0 |
Ending Balance at Dec. 31, 2017 | $ 1,294,461 | $ 372 | $ 20,083 | $ 1,400,296 | $ (126,290) |
CONSOLIDATED STATEMENTS OF STO8
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Options exercised and awards vested in shares (in shares) | 208,613,000 | 163,547,000 | 168,268,000 |
Treasury stock shares (in shares) | 400,500,000 | 1,184,700,000 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Dril-Quip, Inc., a Delaware corporation (the “Company” or “Dril-Quip”), designs, manufactures, sells and services highly engineered drilling and production equipment that is well suited primarily for use in deepwater, harsh environment and severe service applications. The Company’s principal products consist of subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors, diverters and safety valves. Dril-Quip’s products are used by major integrated, large independent and foreign national oil and gas companies and drilling contractors throughout the world. Dril-Quip also provides technical advisory assistance on an as-requested basis during installation of its products, as well as rework and reconditioning services for customer-owned Dril-Quip products. In addition, Dril-Quip’s customers may rent or purchase running tools from the Company for use in the installation and retrieval of the Company’s products. The Company’s operations are organized into three geographic segments—Western Hemisphere (including North and South America; headquartered in Houston, Texas), Eastern Hemisphere (including Europe and Africa; headquartered in Aberdeen, Scotland) and Asia Pacific (including the Pacific Rim, Southeast Asia, Australia, India and the Middle East; headquartered in Singapore). Each of these segments sells similar products and services and the Company has major manufacturing facilities in all three of its regional headquarter locations as well as in Macae, Brazil. The Company’s major subsidiaries are Dril-Quip (Europe) Limited, located in Aberdeen with branches in Denmark, Norway and Holland; Dril-Quip Asia Pacific PTE Ltd., located in Singapore; and Dril-Quip do Brasil LTDA, located in Macae, Brazil. Other operating subsidiaries include TIW Corporation (TIW), located in Houston, Texas; DQ Holdings Pty. Ltd., located in Perth, Australia. Other subsidiaries include Dril-Quip (Ghana) Ltd., located in Takoradi, Ghana; PT DQ Oilfield Services Indonesia, located in Jakarta, Indonesia; Dril-Quip (Nigeria) Ltd., located in Port Harcourt, Nigeria; Dril-Quip Egypt for Petroleum Services S.A.E., located in Alexandria, Egypt; Dril-Quip Oilfield Services (Tianjin) Co. Ltd., located in Tianjin, China, with branches in Shezhen and Beijing, China; and Dril-Quip Qatar LLC, located in Doha, Qatar; TIW de Mexico S.A. de C.V., located in Villahermosa, Mexico; TIW de Venezuela S.A., located in Anaco, Venezuela and with a registered branch located in Shushufindi, Ecuador; TIW (UK) Limited, located in Aberdeen, Scotland; TIW Hungary LLC, located in Szolnok, Hungary; and TIW International, LLC., with a registered branch located in Singapore. On November 10, 2016, the Company acquired TIW, a Texas corporation, located in Houston, Texas, and all of its subsidiaries. TIW manufactures consumable downhole products for the onshore and offshore global oil and gas market. For a listing of all of Dril-Quip's subsidiaries, please see Exhibit 21.1 to this report. On January 6, 2017, the Company acquired The Technologies Alliance Inc. d/b/a OilPatch Technologies (OPT) for approximately $20.0 million , which was integrated into the Company's existing Western Hemisphere operations. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 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. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets 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 from those estimates. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition, inventories and contingent liabilities. Cash and Cash Equivalents Short-term investments that have a maturity of three months or less from the date of purchase are classified as cash equivalents. The Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in U.S. Treasury obligations and repurchase agreements backed by U.S. Treasury obligations. The Company’s investment objectives continue to be the preservation of capital and the maintenance of liquidity. Trade Receivables The Company maintains an allowance for doubtful accounts on trade receivables equal to amounts estimated to be uncollectible. This estimate is based upon historical collection experience combined with a specific review of each customer’s outstanding trade receivable balance. 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 market. 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. Periodically, obsolescence reviews are performed on slow-moving inventories and reserves are established based on current assessments about future demands and market conditions. The inventory values have been reduced by a reserve for excess and slow-moving inventories. Inventory reserves of $83.5 million and $45.6 million were recorded as of December 31, 2017 and 2016 , respectively. If market conditions are less favorable than those projected by management, additional inventory reserves may be required. Inventories acquired from TIW and OPT as of November 10, 2016 and January 6, 2017, respectively, have been recorded at provisional fair values. For additional information, see Note 4 , Business Acquisitions. 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. Property, plant and equipment acquired from TIW and OPT as of November 10, 2016 and January 6, 2017, respectively, have been recorded at provisional fair values. For additional information, see Note 4 , Business Acquisitions. Goodwill Goodwill consists of the excess of the acquisition costs over the fair value of net assets acquired in business combinations. Goodwill is reviewed for impairment annually in the fourth quarter of each year and when events or changes in circumstances indicate that the carrying amount may be impaired. For this purpose, goodwill is evaluated at the reporting unit level. Dril-Quip recorded goodwill related to the acquisition of TIW and OPT. For further information regarding goodwill, see Note 8 , Goodwill. Intangible Assets Definite-lived intangible assets consist of patents and customer relationships. Dril-Quip recognizes amortization expense for definite-lived intangible assets on a straight-line basis over the estimated useful lives. Indefinite-lived intangible assets consist of trademarks, specifically trade names acquired as part of the acquisition of TIW. Indefinite-lived intangible assets are stated at cost and are not amortized; instead, they are tested for impairment at least annually. The Company reviews acquired trademarks for impairment in the fourth quarter of each year and when events or changes in circumstances indicate that the assets may be impaired. The fair value of trademarks is estimated using the relief from royalty method to estimate the value of the cost savings and a discounted cash flows method to estimate the value of future income. The sum of these two values for each trademark is the fair value of the trademark. If the carrying amount of trademarks exceeds the estimated fair value, the impairment is calculated as the excess of carrying amount over the estimate of fair value. For additional information regarding other assets, see Note 9 , Intangible Assets. Impairment of Long-Lived Assets Long-lived assets, including property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to be generated by the asset, an impairment charge is recognized by reflecting the asset at its fair value. We review the recoverability of the carrying value of our assets based upon estimated future cash flows while taking into consideration assumptions and estimates, including the future use of the asset, remaining useful life of the asset and service potential of the asset. Additionally, inventories are valued at the lower of cost or market. In connection with our preparation and review of financial statements for the quarter ended September 30, 2017, after considering current Brent crude (Brent) consensus forecasts and expected rig counts for the foreseeable future, we determined the carrying amount of certain of our long-lived assets in the Western Hemisphere exceeded their respective fair values due to projected declines in asset utilization, and that the cost of some of our worldwide inventory exceeded its market value. As a result, we recorded corresponding impairments and other charges. Primarily as a result of the factors described above, we recorded charges of approximately $33.6 million related to inventory and $ 27.4 million related to fixed assets. No additional impairments were recorded during the three months ended December 31, 2017. Additionally, no impairments of long-lived assets were recorded in 2016 or 2015 . Income Taxes The Company accounts for income taxes using the asset and liability method. Current income taxes are provided on income reported for financial statement purposes, adjusted for transactions that do not enter into the computation of income taxes payable in the same year. Deferred tax assets and liabilities are measured using enacted tax rates for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred income tax assets to the amounts that are expected more likely than not to be realized in the future. The Company classifies interest and penalties related to uncertain tax positions as income taxes in its financial statements. In view of the recent enactment of US Tax Reform, the Company recorded estimated provisional reserves to account for the re-measurement of deferred tax assets due to the corporate tax rate change from 35% to 21% and the impact of the one-time transition tax for unremitted foreign earnings. Revenue Recognition Product revenues The Company recognizes product revenues from two methods: • product revenues recognized under the percentage-of-completion method; and • product revenues from the sale of products that do not qualify for the percentage-of-completion method. Revenues recognized under the percentage-of-completion method The Company uses the percentage-of-completion 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; and • product requirements cannot be filled directly from the Company’s standard inventory. 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. 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 percentage-of-completion 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 trade receivables. Unbilled revenues are expected to be billed and collected within one year. At December 31, 2017 and 2016 , receivables included $41.0 million and $56.8 million of unbilled receivables, respectively. For the year ended December 31, 2017 , there were eight projects representing approximately 13% of the Company’s total revenues and approximately 16% of its product revenues, and 10 projects during 2016 representing approximately 14% of the Company’s total revenues and approximately 17% of its product revenues, which were accounted for using percentage-of-completion accounting. Revenues not recognized under the percentage-of-completion method Revenues from the sale of inventory products, not accounted for under the percentage-of-completion method, are recorded at the time the manufacturing processes are complete and ownership is transferred to the customer. Service revenues The Company earns service revenues from three sources: • technical advisory assistance; • rental of running tools; and • rework and reconditioning of customer-owned Dril-Quip products. The Company does not install products for its customers, but it does provide technical advisory assistance. At the time of delivery of the product, the customer is not obligated to buy or rent the Company’s running tools and the Company is not obligated to perform any subsequent services relating to installation. Technical advisory assistance service revenue is recorded at the time the service is rendered. Service revenues associated with the rental of running and installation tools are recorded as earned. Rework and reconditioning service revenues are recorded when the refurbishment process is complete. The Company normally negotiates contracts for products, including those accounted for under the percentage-of-completion 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. 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 experienced exchange losses (gains) of approximately $12.7 million , $(25.6) million and $(3.9) million in 2017 , 2016 and 2015 , respectively, net of income taxes. These amounts are included in selling, general and administrative costs in the Consolidated Statements of Income on a pre-tax basis. Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature. Concentration of Credit Risk Financial instruments which subject the Company to concentrations of credit risk primarily include trade receivables. The Company grants credit to its customers, which operate primarily in the oil and gas industry. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company maintains reserves for potential losses, and actual losses have historically been within management’s expectations. In addition, the Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in obligations of the U.S. Treasury and repurchase agreements backed by U.S. Treasury obligations. Changes in the financial markets and interest rates could affect the interest earned on short-term investments. Earnings Per Share Basic earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed considering the dilutive effect of stock options and awards using the treasury stock method. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards In September 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-13, "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842)". This update clarifies the definition of a public business entity for the application of the new revenue recognition and leasing standards. This update did not have an impact on our assessment of these standards, discussed below in connection with ASU 2014-09, and will not impact our implementation strategies. The revenue standard is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years, and the leasing standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting." This update clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company did not identify any modifications to its existing awards and therefore has concluded that there is no impact to its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350).” The standard simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendment should be applied on a prospective basis. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has adopted this standard as of October 1, 2017. In January 2017, the FASB issued ASU 2017-01, “Business Combinations: Clarifying the Definition of a Business (Topic 805).” This update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has adopted this standard as of December 31, 2017. In March 2016, the FASB issued ASU 2016-09 “Improvements to Employee Share-Based Payment Accounting (Topic 718).” The standard simplifies several aspects of accounting for share-based payment transactions, including the accounting for income taxes, forfeitures and statutory withholding requirements, as well as classification in the statement of cash flows. The standard is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted this standard as of January 1, 2017. The primary impact of this standard is the income tax effects of awards recognized when the awards are vested or settled is now reflected in the statement of cash flows as part of net income from operating activities. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842).” The new standard requires lessees to recognize lease assets (right of use) and lease obligations (lease liability) for leases previously classified as operating leases under generally accepted accounting principles on the balance sheet for leases with terms in excess of 12 months. The standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company is in the process of assessing its contractual commitments and arrangements with respect to the required presentation and disclosure under the new lease standard and its impact. Remaining implementation matters include completing the gap analysis between current requirements and the new leasing standard, establishing new policies, procedures and controls and quantifying any adjustments upon adoption. In November 2015, the FASB issued ASU 2015-17 “Income Taxes (Topic 740)." The new standard requires that deferred tax assets and liabilities be classified as noncurrent on a classified balance sheet. The Company adopted this standard in the first quarter of 2017 on a prospective basis. In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)", herein referred to as the "New Standard." The amendment applies a new five-step revenue recognition model to be used in recognizing revenues associated with customer contracts. The amendment requires disclosure sufficient to enable readers of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures, significant judgments and changes in judgments and assets recognized from the costs to obtain or fulfill the contract. The standard’s effective date was originally for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. On April 1, 2015, the FASB voted to defer the effective date by one year to December 15, 2017 and interim periods within annual reporting periods beginning after December 15, 2017. The new revenue standard permits companies to either apply the requirements retrospectively to all prior periods presented or apply the requirements in the year of adoption through a cumulative adjustment. The Company has engaged a third-party expert to review our significant revenue streams and identify the required changes to our revenue recognition policies. Based on our existing customer contracts and relationships, we do not expect the implementation of the new guidance to have a material impact on our consolidated financial statements upon adoption. The Company’s evaluation of the impact could change if we enter into new revenue arrangements in the future or interpretations of the new guidance further evolve. While not expected to be material, the more significant changes to the Company’s revenue recognition policies are in the following areas: • Products: Revenues for products sold in Brazil not under the percentage-of-completion method are primarily recognized upon receipt of approval to invoice the customer due to formal customer acceptance procedures. Under the New Standard, the Company assessed the customer acceptance procedures and determined that Dril-Quip and the customer can objectively determine that the agreed-upon specifications of the product have been met and control transfers to the customer upon delivery of the product. As a result, under the New Standard, revenue is recognized at a point in time upon transfer of control of the product. • Services: ◦ Technical Advisory - Similar to products, revenues for technical advisory services provided in Brazil are currently recognized upon receipt of approval to invoice due to formal customer acceptance procedures. Under the New Standard, the Company assessed the customer acceptance procedures and determined that Dril-Quip and the customer can objectively determine that the agreed-upon specifications of the services have been met and control transfers to the customer as the services are provided. As a result, revenue under the New Standard is recognized over time as the services are being performed. ◦ Rework and reconditioning -Revenues for rework and reconditioning services provided in Brazil are currently recognized upon receipt of approval to invoice due to formal customer acceptance procedures. Under the New Standard, the Company assessed the customer acceptance procedures and determined that Dril-Quip and the customer can objectively determine that the agreed-upon specifications of the services have been met and control transfers to the customer as the services are provided. As a result, revenue under the New Standard is recognized over time as the services are being performed. Revenues for rework and reconditioning services are primarily recognized at a point in time upon completion of the services. Under the New Standard, revenue from such services is expected to be recognized over time as the services are provided and control is transferred to the customer. • Fines and liquidated damages are currently expensed when incurred. Under the New Standard, fines and liquidated damages are estimated at contract inception and at each subsequent reporting period and the total transaction price is reduced accordingly (i.e. impacts revenue instead of expense). • The Company uses local agents in certain countries and may pay the local agents a commission related to individual contracts. Currently, these commissions are expensed as incurred. However, under the New Standard, in situations in which the local agent is determined to be the principal in the relationship (i.e. they are the customer), the commission is consideration payable to a customer, and therefore reduces the total transaction price (i.e. impacts revenue instead of expense). In situations in which the local agent is determined not to be the principal in the relationship, the commission will be assessed to determine if it is a cost to obtain a contract and will be capitalized accordingly. We are continuing our assessment of potential changes to our disclosures under the New Standard. The Company currently expects to adopt the standard using the modified retrospective method, which requires us to report revenue under the New Standard for 2018 and future periods, and recognize a cumulative effect adjustment in retained earnings for differences resulting from application of the New Standard to contracts that were not substantially complete at January 1, 2018. We have considered the new expanded disclosures associated with the new revenue standard for the first quarter of 2018. We will provide additional disclosures regarding any material differences in reported financial statement line items in 2018 when compared to the amounts what would have been reported under legacy accounting guidance. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions TIW Acquisition On October 14, 2016, the Company entered into an agreement with Pearce Industries, Inc. to acquire all the outstanding common stock, par value $100.00 per share, of TIW for a cash purchase price of $142.7 million , which was subject to customary adjustments for cash and working capital. The acquisition closed on November 10, 2016 and is expected to strengthen the Company's liner hanger sales and increase market share. Additionally, the acquisition of TIW gave Dril-Quip a presence in the onshore oil and gas market. Total acquisition costs through December 31, 2017 in connection with the purchase of TIW were $2.5 million and were expensed in general and administrative costs. Purchase Price Allocation 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 $33.5 million , the majority of which is included in long-lived assets in the Western Hemisphere and is attributable to expected synergies from combining operations as well as intangible assets which do not qualify for separate recognition. The amount of goodwill that is deductible for income tax purposes is not significant. 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 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. For further information regarding goodwill, see Note 8 , Goodwill. The following table sets forth the purchase price allocation, which was based on fair value of assets acquired and liabilities assumed at the acquisition date, November 10, 2016: Valuation at November 10, 2016 (In thousands) Cash $ 1,829 Trade receivables 9,794 Inventories 29,896 Prepaid and other current assets 3,572 Deferred income taxes 205 Property, plant and equipment 38,058 Intangible assets (1) 29,808 Total assets acquired 113,162 Accounts payable 10,325 Customer prepayments 2,757 Other accrued liabilities 2,644 Deferred tax liabilities, non-current 2,261 Total liabilities assumed 17,987 Net identifiable assets acquired 95,175 Goodwill 33,522 Net assets acquired $ 128,697 (1) Includes $3.0 million of patents with a weighted average useful life of 10 years , $8.4 million of tradenames with an indefinite life and $18.1 million of customer relationships with a weighted average useful life of 15 years . See Note 9 , Intangible Assets, for further information regarding intangible assets. Summary of Unaudited Pro Forma Information TIW's results of operations have been included in Dril-Quip's financial statements for the period subsequent to the closing of the acquisition on November 10, 2016. Business acquired from TIW contributed revenues of $49.4 million , a pre-tax operating loss of $15.5 million and a net loss of $15.9 million for the year ended December 31, 2017 . The following table reflects the unaudited pro forma consolidated results of operations for the periods presented, as though the acquisition of TIW had occurred on January 1, 2015: Year Ended December 31, 2016 2015 (In thousands, except per share data) (Unaudited) Revenues $ 595,797 $ 943,714 Net income $ 84,756 $ 193,310 Basic earnings per share $ 2.26 $ 5.04 Diluted earnings per share $ 2.25 $ 5.02 The unaudited pro forma financial information is presented for illustrative purposes only and is not indicative of the results of operations that would have been realized if the acquisition had been completed on the date indicated, nor is it indicative of future operating results. The pro forma results do not include, for example, the effects of anticipated synergies from the acquisition. As a result of the full consolidation of TIW, we will no longer communicate the results of TIW net income beginning in 2018. OPT On January 6, 2017, the Company acquired OPT for approximately $20.0 million , which was subject to customary adjustments for cash and working capital. The acquisition was accounted for as a business combination in accordance with ASC 805. The purchase price was subject to closing adjustments and was funded with cash on hand. The acquisition does not have a material impact on the Company's Consolidated Balance Sheets. OPT's results of operations for the periods prior to this acquisition were not material to the Company's Consolidated Statements of Operations. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories consist of the following: December 31, 2017 2016 (In thousands) Raw materials and supplies $ 70,188 $ 85,684 Work in progress 65,382 81,645 Finished goods 239,083 233,732 374,653 401,061 Less: allowance for obsolete and excess inventory (see Note 7) (83,566 ) (45,648 ) Total inventory $ 291,087 $ 355,413 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment consists of: Estimated Useful Lives December 31, 2017 2016 (In thousands) Land improvements 10-25 years $ 7,485 $ 8,585 Buildings 15-40 years 183,437 191,485 Machinery, equipment and other 3-10 years 361,959 370,578 552,881 570,649 Less accumulated depreciation (315,091 ) (293,854 ) 237,790 276,795 Land 13,464 12,120 Construction work in process 32,993 34,234 Total property, plant and equipment $ 284,247 $ 323,149 Depreciation expense totaled $38.6 million, $31.6 million and $30.5 million for 2017 , 2016 and 2015 , respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill by reporting unit during the year ended December 31, 2017 were as follows: Carrying Value Carrying Value January 1, 2017 Acquisitions Foreign Currency Translation Purchase Price Adjustments December 31, 2017 (In thousands) Western Hemisphere $ 26,632 $ 12,788 $ 587 $ (849 ) $ 39,158 Eastern Hemisphere 7,739 — 727 — 8,466 Asia Pacific — — — — — Total $ 34,371 $ 12,788 $ 1,314 $ (849 ) $ 47,624 At October 1, 2017, the Company performed its annual impairment test on each of its reporting units and concluded that there had been no impairment because the estimated fair values of each of those reporting units exceeded its carrying value. Relevant events and circumstances that could have a negative impact on goodwill include: macroeconomic conditions; industry and market conditions, such as commodity prices; operating cost factors; overall financial performance; the impact of dispositions and acquisitions; and other entity-specific events. Further declines in commodity prices or sustained lower valuation for the Company's common stock could indicate a reduction in the estimate of reporting unit fair value which, in turn, could lead to an impairment of reporting unit goodwill. The fair values were determined using the net present value of the expected future cash flows for each reporting unit. During the Company’s goodwill impairment analysis, the Company determined the fair value of each of its reporting units as a whole using discounted cash flow analysis, which requires significant assumptions and estimates about the future operations of each reporting unit. The assumptions about future cash flows and growth rates are based on our current budget for 2018 and for future periods, as well as our strategic plans and management’s beliefs about future activity levels. The discount rate we used for future periods could change substantially if the cost of debt or equity were to significantly increase or decrease, or if we were to choose different comparable companies in determining the appropriate discount rate for our reporting units. Forecasted cash flows in future periods were estimated using a terminal value calculation, which considered long-term earnings growth rates. There was no impairment of goodwill during the years ended December 31, 2017 and 2016. |
Impairments and Other Charges
Impairments and Other Charges | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairments and Other Charges | Impairments and Other Charges We carry a variety of long-lived assets on our balance sheet, including property, plant and equipment, goodwill and other intangibles. We conduct impairment tests on long-lived assets if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We review the recoverability of the carrying value of our assets based upon estimated future cash flows while taking into consideration assumptions and estimates including the future use of the asset, remaining useful life of the asset and service potential of the asset. Additionally, inventories are valued at the lower of cost or net realizable value. In connection with our preparation and review of financial statements for the quarter ended September 30, 2017, after considering current Brent crude (Brent) consensus forecasts and expected rig counts for the foreseeable future, we determined the carrying amount of certain of our long-lived assets in the Western Hemisphere exceeded their respective fair values due to projected declines in asset utilization, and that the cost of some of our worldwide inventory exceeded its market value. As a result, we recorded corresponding impairments and other charges. Primarily as a result of the factors described above, we recorded charges of approximately $33.6 million related to inventory and $27.4 million related to fixed assets during the three and nine months ended September 30, 2017. We updated our evaluation as of December 31, 2017, and did not require any further adjustment. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets, the majority of which were acquired in the acquisition of TIW and OPT, consist of the following: Estimated Useful Lives 2017 Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks indefinite $ 8,416 $ — $ 56 $ 8,472 Patents 15 - 30 years 5,946 (968 ) 80 5,058 Customer relationships 5 - 15 years 26,503 (1,675 ) (64 ) 24,764 Non-compete agreements 3 years 171 (57 ) — 114 $ 41,036 $ (2,700 ) $ 72 $ 38,408 Estimated Useful Lives 2016 Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks indefinite $ 8,416 $ — $ — $ 8,416 Patents 15 - 30 years 3,583 (294 ) — 3,289 Customer relationships 5 - 15 years 18,057 (168 ) — 17,889 $ 30,056 $ (462 ) $ — $ 29,594 At October 1, 2017, the Company performed its annual impairment test on its indefinite and definite-lived intangible assets and concluded that there had been no impairment because the estimated fair values of each of those intangible assets exceeded its carrying value. Relevant events and circumstances that could have a negative impact on intangible assets include: macroeconomic conditions; industry and market conditions, such as commodity prices; operating cost factors; overall financial performance; the impact of dispositions and acquisitions; and other entity-specific events. Further declines in commodity prices or sustained lower valuation for the Company's common stock could indicate a reduction in the estimate of the intangible assets' fair value which, in turn, could lead to an impairment of the intangible asset. Amortization expense was $2.4 million , $0.2 million and none for 2017 , 2016 and 2015 , respectively. Based on the carrying value of intangible assets at December 31, 2017 , amortization expense for the subsequent five years is estimated to be as follows: 2018 — $2.2 million ; 2019 — $2.2 million ; 2020 — $2.1 million ; 2021 — $2.1 million ; and 2022 — $2.1 million . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income taxes consisted of the following: Year Ended December 31, 2017 2016 2015 (In thousands) Domestic $ (84,278 ) $ 33,543 $ 107,158 Foreign 18,634 82,325 142,613 Total $ (65,644 ) $ 115,868 $ 249,771 The income tax provision (benefit) consists of the following: Year Ended December 31, 2017 2016 2015 (In thousands) Current: Federal $ 20,435 $ 8,461 $ 33,017 Foreign (2,671 ) 15,246 28,229 Total current 17,764 23,707 61,246 Deferred: Federal 20,592 1,121 (1,611 ) Foreign (3,361 ) (2,181 ) (1,872 ) Total deferred 17,231 (1,060 ) (3,483 ) Total $ 34,995 $ 22,647 $ 57,763 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, 2017 2016 2015 Federal income tax statutory rate 35.0 % 35.0 % 35.0 % Foreign income tax rate differential 2.4 (11.7 ) (7.3 ) Foreign development tax incentive 1.8 (0.9 ) (1.3 ) Manufacturing benefit — (1.1 ) (1.4 ) Foreign intellectual property tax benefit 16.1 (1.0 ) (0.8 ) Tax Cuts and Jobs Act (TCJA) Transition Tax (49.7 ) — — Deferred tax rate change (20.7 ) — — Change in valuation allowance (35.6 ) — — Other (2.6 ) (0.8 ) (1.1 ) Effective income tax rate (53.3 )% 19.5 % 23.1 % 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, 2017 2016 (In thousands) Net current deferred tax assets: Inventory $ 20,816 $ 21,531 Net operating losses 5,380 3,019 Allowance for doubtful accounts 1,200 1,311 Reserve for accrued liabilities 3,177 840 Stock options 3,553 6,052 Other 1,811 867 Net current deferred tax assets 35,937 33,620 Valuation allowance $ (26,445 ) $ (3,071 ) Net non-current deferred tax liability: Property, plant and equipment (2,618 ) (7,899 ) Goodwill & Intangibles (4,161 ) (1,653 ) Other (781 ) 1,699 Net non-current deferred tax liabilities (7,560 ) (7,853 ) Net deferred tax asset $ 1,932 $ 22,696 Net operating loss carryforwards totaled $23.3 million at December 31, 2017. These operating losses will expire as shown in the table below. Net operating losses Expiration (In thousands) $ 5,132 2019-2024 6,993 2025-2031 2,200 2032-2037 8,995 Indefinite $ 23,319 In assessing the realizability of our deferred tax assets, the Company has considered 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 we are allowed to consider taxable income in prior years if carryback is permitted, the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies. Based on the Company anticipating to be in a projected three year cumulative loss at December 31, 2017 in the United States and certain foreign subsidiaries and the inability to generate future taxable income from the four sources outlined, we have determined it is more likely than not that a portion of deferred taxes will not be realized. Therefore, the Company has recorded a valuation allowance at the December 31, 2017 of $26.4 million . On December 22, 2017, the US Tax Reform was enacted. US Tax Reform includes a number of changes which will impact our business. These changes include but are not limited to, a reduction in the corporate tax rate from 35% to 21% starting in 2018, the elimination or reduction of certain domestic deductions and credits and limitations on the deductibility of interest expense and executive compensation. US Tax Reform also transitions U.S international taxation from a worldwide tax system to a modified territorial system, which includes base erosion prevention measures on non-U.S. earnings, which may have the effect of subjecting certain earnings of our foreign subsidiaries to U.S. taxation. US Tax Reform also includes a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. Changes in tax rates and tax law are accounted for in the period of enactment. Therefore, during the year ended December 31, 2017, we recorded a charge totaling $46.2 million for our current estimate related to the provisions of US Tax Reform. US Tax Reform eliminated the deferral of U.S. income tax on the historical unrepatriated earnings by imposing a transition tax, which is a one-time mandatory deemed repatriation tax on undistributed earnings. The transition tax is assessed on the U.S. shareholder’s share of the foreign corporation’s accumulated foreign earnings that have not previously been taxed. Earnings in the form of cash and cash equivalents will be taxed at a rate of 15.5% and all other earnings will be taxed at a rate of 8.0% . As of December 31, 2017, we have accrued income tax liabilities of $32.6 million under the transition tax. Our deferred tax assets and liabilities are measured at the rate expected to apply when these temporary differences are expected to be realized or settled. As our deferred tax assets exceeded the balance of our deferred tax liabilities at the date of enactment, we have recorded an adjustment of $13.6 million , reflecting the decrease in the U.S. corporate income tax rate and other changes to U.S. tax law. For the GILTI provisions of US Tax Reform, a provisional estimate could not be made as the Company has not yet completed its assessment or elected an accounting policy to either recognize deferred taxes for basis differences expected to reverse as GILTI or to record GILTI as period costs if and when incurred. The Company is also still evaluating whether to change its indefinite reinvestment assertion in light of US Tax Reform and consider that conclusion to be incomplete under guidance issued by the SEC. If the Company subsequently changes its assertion during the measurement period, the Company will account for the change in assertion as part of the US Tax Reform enactment. The Company is required to recognize the impact of a tax position that is more likely than not to be sustained upon examination based upon the technical merits of the position, including resolution of any appeals. An evaluation was performed for the tax years which remain subject to examination by major tax jurisdictions as of December 31, 2017, which are the years ended December 31, 2011 through December 31, 2017. The Company has occasionally been assessed interest or penalties by major tax jurisdictions; these assessments historically have not materially impacted the Company’s financial results. Interest expense assessed by tax jurisdictions is included with interest expense and assessed penalties are included in selling, general and administrative expenses. 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 uncertain tax position of $18.9 million at December 31, 2017 due to uncertainty in special provisions in U.S. and foreign tax jurisdictions. A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions for the year ended December 31, 2017 is as follows: 2017 (In thousands) Balance at beginning of year $ 5,717 Additions for tax positions related to the current year 16,800 Settlements with tax authorities (3,628 ) Balance at end of year $ 18,889 It is reasonably possible that the Company's existing liabilities for unrecognized tax benefits may increase or decrease in the year ending December 31, 2017, 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, 2017, if recognized, $16.8 million of the Company's unrecognized tax benefits, including interest and penalties, would favorably impact the effective tax rate. The Company paid $8.4 million , $23.0 million and $61.7 million in income taxes in 2017, 2016 and 2015, respectively. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Current other accrued liabilities consist of the following: December 31, 2017 2016 (In thousands) Payroll taxes $ 6,591 $ 3,151 Property, sales and other taxes 8,340 6,258 Commissions payable 408 1,424 Accrued vendor costs 7,068 2,185 Accrued warranties 1,535 3,853 Other 1,596 1,245 Total $ 25,538 $ 18,116 Other long-term liabilities consist of contingent consideration related to the OPT acquisition in the amount of $2.0 million . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has a defined-contribution 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 was $4.3 million , $4.6 million and $5.7 million in 2017 , 2016 and 2015 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company leases certain offices, shop and warehouse facilities, automobiles and equipment. Total lease expense incurred was $6.0 million , $5.0 million and $5.1 million in 2017 , 2016 and 2015 , respectively. Future annual minimum lease commitments at December 31, 2017 are as follows: 2018 — $3.9 million ; 2019 — $2.2 million ; 2020 — $1.8 million ; 2021 — $0.9 million ; 2022 — $0.8 million ; and thereafter— $6.2 million . Brazilian Tax Issue From 2002 to 2007, the Company’s Brazilian subsidiary imported goods through the State of Espirito Santo in Brazil and subsequently transferred them to its facility in the State of Rio de Janeiro. During that period, the Company’s Brazilian subsidiary paid taxes to the State of Espirito Santo on its imports. Upon the final sale of these goods, the Company’s Brazilian subsidiary collected taxes from customers and remitted them to the State of Rio de Janeiro net of the taxes paid on importation of those goods to the State of Espirito Santo in accordance with the Company’s understanding of Brazilian tax laws. In August 2007, the State of Rio de Janeiro served the Company’s Brazilian subsidiary with assessments to collect a state tax on the importation of goods through the State of Espirito Santo from 2002 to 2007 claiming that these taxes were due and payable to it under applicable law. The Company settled these assessments with payments to the State of Rio de Janeiro of $ 12.2 million in March 2010 and $ 3.9 million in December 2010. Approximately $ 7.8 million of these settlement payments were attributable to penalties, interest and amounts that had expired under the statute of limitations so that amount was recorded as an expense. The remainder of the settlement payments generated credits (recorded as a long-term prepaid tax) to be used to offset future state taxes on sales to customers in the State of Rio de Janeiro, subject to certification by the tax authorities. During the second quarter of 2015, the tax authorities certified approximately $ 8.3 million of those credits paid in 2010 and granted an additional $ 2.3 million in inflation-related credits. The additional amount of credits granted by the tax authorities increased long-term prepaid taxes and decreased selling, general and administrative expenses by $ 2.3 million . In December 2010 and January 2011, the Company’s Brazilian subsidiary was served with two additional assessments totaling approximately $ 13.0 million from the State of Rio de Janeiro to cancel the credits associated with the tax payments to the State of Espirito Santo (Santo Credits) on the importation of goods from July 2005 to October 2007. The Santo Credits are not related to the credits described above. The Company has objected to these assessments on the grounds that they would represent double taxation on the importation of the same goods and that the Company is entitled to the credits under applicable Brazilian law. With regard to the December 2010 assessment, the Company’s Brazilian subsidiary filed an appeal with a State of Rio de Janeiro judicial court to annul the tax assessment following a ruling against the Company by the tax administration’s highest council. In connection with that appeal, the Company was required to deposit with the court approximately $ 3.1 million in December 2014 as the full amount of the assessment with penalties and interest. The Company filed a similar appeal in the judicial system with regard to the January 2011 assessment and was required to deposit with the court approximately $5.7 million in December 2016. The Company believes that these credits are valid and that success in the judicial court process is probable. Based upon this analysis, the Company has not accrued any liability in conjunction with this matter. Since 2007, the Company’s Brazilian subsidiary has paid taxes on the importation of goods directly to the State of Rio de Janeiro and the Company does not expect any similar issues to exist for periods subsequent to 2007. 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 dependency on the condition of the oil and gas industry. Additionally, products of the Company are used in potentially hazardous drilling, completion, and production applications that can cause personal injury, product liability and environmental claims. Although exposure to such risk has not resulted in any significant problems in the past, there can be no assurance that ongoing and future developments will not adversely impact the Company. The Company is also involved in a number of legal actions arising in the ordinary course of business. Although no assurance can be given with respect to the ultimate outcome of such legal action, in the opinion of management, the ultimate liability with respect thereto will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. |
Geographic Segments
Geographic Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Geographic Segments | Geographic Segments Year Ended December 31, 2017 2016 2015 (In thousands) Revenues: Western Hemisphere Products $ 217,084 $ 254,359 $ 332,452 Services 65,050 63,350 88,376 Intercompany 27,554 43,856 53,429 Total $ 309,688 $ 361,565 $ 474,257 Eastern Hemisphere Products $ 69,664 $ 106,862 $ 234,853 Services 28,048 34,818 52,963 Intercompany 772 337 5,799 Total $ 98,484 $ 142,017 $ 293,615 Asia Pacific Products $ 64,383 $ 71,791 $ 118,059 Services 11,239 7,551 17,607 Intercompany 781 1,882 5,124 Total $ 76,404 $ 81,224 $ 140,790 Summary Products $ 351,132 $ 433,012 $ 685,364 Services 104,337 105,719 158,946 Intercompany 29,107 46,075 64,352 Eliminations (29,107 ) (46,075 ) (64,352 ) Total $ 455,469 $ 538,731 $ 844,310 Depreciation and amortization: Western Hemisphere $ 30,441 $ 21,395 $ 20,093 Eastern Hemisphere 4,096 4,965 5,685 Asia Pacific 4,064 4,437 4,491 Corporate 2,374 1,060 208 Total $ 40,974 $ 31,857 $ 30,477 Income before income taxes: Western Hemisphere $ (18,099 ) $ 91,221 $ 155,763 Eastern Hemisphere 1,379 60,835 89,349 Asia Pacific 4,927 12,779 38,155 Corporate (53,706 ) (50,941 ) (43,264 ) Eliminations (146 ) 1,974 9,768 Total $ (65,644 ) $ 115,868 $ 249,771 December 31, 2017 2016 (In thousands) Total long-lived assets: Western Hemisphere $ 482,636 $ 317,875 Eastern Hemisphere 264,828 33,338 Asia Pacific 58,606 53,960 Eliminations (414,814 ) (480 ) Total $ 391,256 $ 404,693 Total assets: Western Hemisphere $ 877,779 $ 775,358 Eastern Hemisphere 752,967 318,529 Asia Pacific 185,229 370,043 Eliminations (416,170 ) (2,526 ) Total $ 1,399,805 $ 1,461,404 In 2017 , Chevron and its affiliated companies accounted for approximately 14% of the Company’s total revenues. In 2016 and 2015 , Chevron and its affiliated companies accounted for approximately 16% and 12% , respectively, of the Company’s total revenues. No other customer accounted for more than 10% of the Company’s total revenues in 2017 , 2016 or 2015. During the fourth quarter of 2017, the Company pursued a restructuring of its entities to prepare it for increased activity in the international markets. The main focus of the restructuring was to create an internal financing capability by taking advantage of excess cash held offshore. The excess foreign cash is now held in a treasury concentration center in the Eastern Hemisphere where it is invested for higher yields when not required to fund international operations. When required, these funds can be easily deployed to meet the working capital requirements of all foreign operations. This structure was put in place as the Company expects that when the market rebounds, future work will come from international markets, especially Europe and Asia Pacific. The Company’s operations are organized into three geographic segments—Western Hemisphere (including North and South America; headquartered in Houston, Texas), Eastern Hemisphere (including Europe and Africa; headquartered in Aberdeen, Scotland) and Asia Pacific (including the Pacific Rim, Southeast Asia, Australia, India and the Middle East; headquartered in Singapore). Each of these segments sells similar products and services and the Company has major manufacturing facilities in all three of its regional headquarter locations as well as in Macae, Brazil. Eliminations of operating profits are related to intercompany inventory transfers that are deferred until shipment is made to third party customers. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity On November 24, 2008, the Board of Directors declared a dividend of one right (a “Right”) for each outstanding share of the Company’s common stock to stockholders of record at the close of business on December 5, 2008. Each Right entitled the registered holder to purchase from the Company a unit consisting of one one-hundredth of a share (a “Fractional Share”) of Series A Junior Participating Preferred Stock, par value $0.01 per share (the “Preferred Stock”), at a purchase price of $100 per Fractional Share, subject to adjustment. The Rights were exercisable in the event any person or group acquired 15% or more of the Company’s common stock, and until such time were inseparable from and traded with the Company's common stock. The related rights agreement was amended on February 26, 2018 to accelerate the expiration of the Rights from the close of business on November 24, 2018 to the close of business on February 26, 2018, and had the effect of terminating the rights agreement on that date. At the time of the termination of the rights agreement, all of the Rights distributed to holders of the Company’s common stock pursuant to the rights agreement expired. |
Stock-Based Compensation and St
Stock-Based Compensation and Stock Awards | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Stock Awards | Stock-Based Compensation and Stock Awards On May 13, 2004, the Company’s stockholders approved the 2004 Incentive Plan of Dril-Quip, Inc. (as amended in 2012 and approved by the Company’s stockholders on May 10, 2012, the “2004 Plan”), which reserved up to 2,696,294 shares of common stock to be used in connection with the 2004 Plan. Persons eligible for awards under the 2004 Plan are employees holding positions of responsibility with the Company or any of its subsidiaries and members of the Board of Directors. On May 12, 2017, the Company’s stockholders approved the 2017 Omnibus Incentive Plan of Dril-Quip, Inc. (the “2017 Plan”), which reserved up to 1,500,000 shares of common stock to be used in connection with the 2017 Plan. Persons eligible for awards under the 2017 Plan are employees with the Company or any of its subsidiaries and members of the Board of Directors. Stock Options Options granted under the 2004 Plan have a term of ten years and become exercisable in cumulative annual increments of one-fourth of the total number of shares of common stock subject thereto, beginning on the first anniversary of the date of the grant. No stock options have been granted under the 2017 Plan. The fair value of stock options granted was estimated on the grant date using the Black-Scholes option pricing model. The expected life was based on the Company’s historical trends, and volatility is based on the historical volatility over the expected life of the options. The risk-free interest rate is based on U.S. Treasury yield curve at the grant date. The Company does not pay dividends and, therefore, there is no assumed dividend yield. Option activity for the year ended December 31, 2017 was as follows: Number of Options Weighted Average Price Aggregate Intrinsic Value (in millions) Weighted Average Remaining Contractual Life (in years) Outstanding at December 31, 2016 351,959 $ 57.66 Granted — — Exercised (23,247 ) 31.31 Forfeited (48,500 ) 57.71 Outstanding at December 31, 2017 280,212 $ 59.84 $ 0.6 2.9 Exercisable at December 31, 2017 280,212 $ 59.84 $ 0.6 2.9 The total intrinsic value of stock options exercised in 2017 , 2016 and 2015 was $0.4 million , $1.0 million and $0.8 million , respectively. The income tax benefit realized from stock options exercised was $153,759 , $357,000 and $263,000 for the years ended December 31, 2017 , 2016 and 2015, respectively. There were 21,483 anti-dilutive stock option shares on December 31, 2017 . Stock-based compensation is recognized as selling, general and administrative expense in the accompanying Consolidated Statements of Income. For the years ended December 31, 2017 and December 31, 2016 , there was no stock-based compensation expense for stock option awards. For the year ended December 31 ,2015, stock-based compensation expense for stock option awards was $1.1 million . No stock-based compensation expense was capitalized during 2017 , 2016 and 2015. Options granted to employees vest over four years and the Company recognizes compensation expense on a straight-line basis over the vesting period of the options. At December 31, 2017 , there was no unrecognized compensation expense related to non-vested stock options as all outstanding options were fully vested. Restricted Stock Awards On October 28, 2017 and 2016 , pursuant to the 2017 Plan and the 2004 Plan, respectively, the Company awarded officers, directors and key employees restricted stock awards (RSAs), which is an award of common stock subject to time vesting. The awards issued under both the 2017 Plan and the 2004 Plan are restricted as to transference, sale and other disposition. These RSAs vest ratably over a three -year period. The RSAs may also vest in case 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: RSA Number of Shares Weighted Average Grant Date Fair Value Per Share Nonvested balance at December 31, 2016 269,383 $ 57.59 Granted 261,095 43.56 Vested (127,674 ) 55.31 Forfeited (5,506 ) 52.81 Nonvested balance at December 31, 2017 397,298 $ 46.76 RSA compensation expense for the years ended December 31, 2017 , 2016 and 2015 totaled $8.4 million , $7.2 million and $6.3 million , respectively . For 2017 , 2016 and 2015, the income tax benefit recognized in net income for RSAs was $1.9 million , $1.2 million and $1.8 million , respectively. As of December 31, 2017 , there was $16.7 million of total unrecognized compensation cost related to nonvested RSAs, which is expected to be recognized over a weighted average period of 2.3 years. There were 186,112 anti-dilutive restricted shares on December 31, 2017 . Performance Unit Awards On October 28, 2017 and 2016 , pursuant to the 2017 Plan and the 2004 Plan, the Company awarded performance unit awards (Performance Units) to officers and key employees. The Performance Units were valued based on a Monte Carlo simulation at $54.64 for the 2017 grants and $53.46 for the 2016 grants, approximately 131.7% and 110.3% , respectively, of the grant share price. Under the plans, 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. The TSR is calculated over a three -year period from October 1, 2016 and 2017 to September 30, 2019 and 2020 , 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: 2017 2016 Grant date October 28, 2017 October 28, 2016 Performance period October 1, 2017 to September 30, 2020 October 1, 2016 to September 30, 2019 Volatility 34.0% 32.5% Risk-free interest rate 1.7% 1.0% Grant date price $41.50 $48.45 The Company’s Performance Unit activity and related information is presented below: Number of Performance Units Weighted Average Grant Date Fair Value Per Unit Nonvested balance at December 31, 2016 196,219 $ 78.42 Granted 122,810 54.64 Vested (52,444 ) 126.84 Forfeited (2,311 ) 126.84 Nonvested balance at December 31, 2017 264,274 $ 59.97 Performance Unit compensation expense was $5.4 million for the year ended December 31, 2017 , $4.6 million for 2016 and $4.5 million for 2015. For 2017 , 2016 and 2015, the income tax benefit recognized in net income for Performance Units was $0.8 million , $0.5 million and $1.1 million , respectively. As of December 31, 2017 , there was $10.2 million of total unrecognized compensation expense related to nonvested Performance Units which is to be recognized over a weighted average period of 2.2 years. There were 159,810 anti-dilutive Performance Units at December 31, 2017 . 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 (DSA) 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 on the second year after the grant date. The Company's DSA activity for the year ended December 31, 2017 is presented below: DSA Number of Shares Weighted Average Grant Date Fair Value Per Share Nonvested balance at December 31, 2016 13,422 $ 62.46 Granted 9,340 51.58 Vested (5,248 ) 68.70 Forfeited — — Nonvested balance at December 31, 2017 17,514 $ 54.80 Director stock compensation awards expense for 2017 was $462,948 as compared to $405,000 for 2016 and $328,000 for 2015. For 2017 , 2016 and 2015, the income tax benefit recognized in net income for DSAs was $115,002 , $19,000 and $41,000 , respectively. There was $301,934 of unrecognized compensation expense related to nonvested DSAs, which is expected to be recognized over a weighted average period of one year. There were 7,703 anti-diluted DSA shares on December 31, 2017 . The following table summarizes information for equity compensation plans in effect as of December 31, 2017 : Number of securities to be issued upon exercise of outstanding options (1) Weighted-average exercise price of outstanding options Number of securities remaining available for future issuance under equity compensation plan (excluding securities reflected in column (a)) Plan category (a) (b) (c) Equity compensation plans approved by stockholders Stock options 280,212 $ 59.84 198,472 Total 280,212 $ 59.84 198,472 (1) Excludes 414,812 shares of unvested RSAs and DSAs and 264,274 of unvested Performance Units, which were granted pursuant to the 2017 Plan and the 2004 Plan, both of which were approved by the stockholders. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following is a reconciliation of the basic and diluted earnings per share computation. Year Ended December 31, 2017 2016 2015 (In thousands, except per share amounts) Net income (loss) $ (100,639 ) $ 93,221 $ 192,008 Weighted average basic common shares outstanding 37,457 37,537 38,364 Effect of dilutive securities - stock options and awards — 130 167 Total shares and dilutive securities 37,457 37,667 38,531 Basic earnings (loss) per common share $ (2.69 ) $ 2.48 $ 5.00 Diluted earnings (loss) per common share $ (2.69 ) $ 2.47 $ 4.98 For the years ended December 31, 2017, 2016 and 2015, 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, 2017 2016 2015 (In thousands) Director stock awards 8 2 2 Stock options 21 — — Performance share units 160 64 61 Restricted stock awards 186 110 97 |
Stock Repurchase Plan
Stock Repurchase Plan | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stock Repurchase Plan | Stock Repurchase Plan On July 26, 2016, the Board of Directors authorized a stock repurchase plan under which the Company can repurchase up to $100 million of its common stock. The repurchase plan has no set expiration date and any repurchased shares are expected to be cancelled. No repurchases have been made pursuant to this plan during 2017. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited): Quarter Ended March 31 June 30 September 30 December 31 (In thousands, except per share data) Unaudited 2017 Revenues $ 119,228 $ 127,922 $ 100,346 $ 107,971 Cost of sales 82,440 87,549 63,050 72,356 Gross profit 36,788 40,373 37,296 35,615 Operating income (loss) (870 ) (1,114 ) (62,045 ) (5,110 ) Net income (loss) 94 15 (29,260 ) (71,492 ) Earnings (loss) per share: Basic (1) $ — $ — $ (0.78 ) $ (1.90 ) Diluted (1) — — (0.78 ) (1.90 ) 2016 Revenues $ 166,561 $ 142,439 $ 123,640 $ 106,091 Cost of sales 93,096 79,881 77,633 77,794 Gross profit 73,465 62,558 46,007 28,297 Operating income (loss) 49,343 45,217 22,933 (4,634 ) Net income (loss) 36,769 36,137 19,013 1,302 Earnings (loss) per share: Basic (1) $ 0.97 $ 0.96 $ 0.51 $ 0.03 Diluted (1) $ 0.97 $ 0.96 $ 0.51 $ 0.03 (1) The sum of the quarterly per share amounts may not equal the annual amount reported, as per share amounts are computed independently for each quarter and for the full year. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events New ABL Credit Facility On February 23, 2018 , the Company, as borrower, and the Company’s subsidiaries TIW Corporation and Honing, Inc., as guarantors, entered into a five -year senior secured revolving credit facility (the “New ABL Credit Facility”) with JPMorgan Chase Bank, N.A., as administrative agent, and other financial institutions as lenders with total commitments of $100.0 million , including up to $10.0 million available for letters of credit. The maximum amount that the Company may borrow under the New ABL Credit Facility is subject to the borrowing base, which is based on a percentage of eligible accounts receivable and eligible inventory, subject to reserves and other adjustments. All obligations under the New ABL Credit Facility are fully and unconditionally guaranteed jointly and severally by the Company, TIW, Honing, Inc., and future significant domestic subsidiaries, subject to customary exceptions. Borrowings under the New ABL Credit Facility are secured by liens on substantially all of the Company’s personal property, and bear interest at the Company’s option at either (i) the CB Floating Rate (as defined therein), calculated as the rate of interest publicly announced by JPMorgan Chase Bank, N.A., as its “prime rate,” subject to each increase or decrease in such prime rate effective as of the date such change occurs, with such CB Floating Rate not being less than Adjusted One Month LIBOR Rate (as defined therein) or (ii) the Adjusted LIBO Rate (as defined therein), plus, in each case, an applicable margin. The applicable margin ranges from 1.00% to 1.50% per annum for CBFR loans and 2.00% to 2.50% per annum for Eurodollar loans and, in each case, is based on the Company’s leverage ratio. The unused portion of the New ABL Credit Facility is subject to a commitment fee that varies from 0.250% to 0.375% per annum, according to average unused commitments under the New ABL Credit Facility. Interest on Eurodollar loans is payable at the end of the selected interest period, but no less frequently than quarterly. Interest on CB Floating Rate loans is payable monthly in arrears. The New ABL Credit Facility contains various covenants and restrictive provisions which limit the Company’s ability to, among other things, (1) enter into asset sales; (2) incur additional indebtedness; (3) make investments or loans and create liens; (4) pay certain dividends or make other distributions and (5) engage in transactions with affiliates. The New ABL Credit Facility also requires the Company to maintain a fixed charge coverage ratio based on the ratio of EBITDA (as defined therein) to Fixed Charges (as defined therein) during certain periods, including when availability under the New ABL Credit Facility is under certain levels. If the Company fails to perform its obligations under the agreement that results in an event of default, the commitments under the New ABL Credit Facility could be terminated and any outstanding borrowings under the New ABL Credit Facility may be declared immediately due and payable. The New ABL Credit Facility also contains cross default provisions that apply to the Company’s other indebtedness. The Company is in compliance with the related covenants as of February 27, 2018 . As of February 27, 2018 , the Company had no borrowings outstanding under the New ABL Credit Facility no letters of credit outstanding under the New ABL Credit Facility and availability of $71.0 million . Termination of Rights Agreement On February 26, 2018, the Company entered into Amendment No. 1 (the “Amendment”) to the Rights Agreement (the “Rights Agreement”), dated as of November 24, 2008, by and between the Company and Computershare Inc., as successor-in-interest to Computershare Shareowner Services LLC (formerly known as Mellon Investor Services LLC), as rights agent. The Amendment accelerated the expiration of the Company’s rights to purchase Series A Junior Participating Preferred Stock, par value $0.01 per share (the “Rights”), from 5:00 p.m., New York City time, on November 24, 2018 to 5:00 p.m., New York City time, on February 26, 2018 , and had the effect of terminating the Rights Agreement on that date. At the time of the termination of the Rights Agreement, all of the Rights distributed to holders of the Company’s common stock pursuant to the Rights Agreement expired. Restated Certificate of Incorporation On February 26, 2018, the Company filed with the Secretary of State of the State of Delaware a restated certificate of incorporation as adopted by the Board of Directors. The restated certificate of incorporation did not further amend the Company’s existing certificate of incorporation and only restates and integrates into a single instrument all prior amendments to the existing certificate of incorporation. Immediately prior to filing the above-referenced restated certificate of incorporation on February 26, 2018, the Company filed a Certificate of Elimination with the Delaware Secretary of State to eliminate the Series A Junior Participating Preferred Stock. No shares of such securities were outstanding or will be issued. Copies of the Restated Certificate of Incorporation and Certificate of Elimination are filed as Exhibits 3.1 and 3.2. New Contract in the First Quarter of 2018 In February 2018, the Company was awarded a contract to supply top tensioned riser (TTR) systems and related services for the development of the CA Rong Do Project located offshore Vietnam operated by Repsol with the participation of Mubadala, PVEP and PetroVietnam. The project will be in our Asia Pacific region and will affect our bookings in the backlog disclosure for the first quarter of 2018. |
Schedule II_Valuation and Quali
Schedule II—Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II—Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts Description Balance at beginning of period Charges to costs and expenses Recoveries and write offs Balance at end of period (In thousands) Allowance for doubtful trade receivables December 31, 2017 5,570 1,709 (2,760 ) 4,519 December 31, 2016 7,739 1,259 (3,428 ) 5,570 December 31, 2015 6,241 5,741 (4,243 ) 7,739 Allowance for excess and slow moving inventory December 31, 2017 45,648 32,204 5,714 83,566 December 31, 2016 39,247 5,748 653 45,648 December 31, 2015 34,607 8,512 (3,872 ) 39,247 |
Significant Accounting Polici30
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets 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 from those estimates. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition, inventories and contingent liabilities. |
Cash and Cash Equivalents | Cash and Cash Equivalents Short-term investments that have a maturity of three months or less from the date of purchase are classified as cash equivalents. The Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in U.S. Treasury obligations and repurchase agreements backed by U.S. Treasury obligations. The Company’s investment objectives continue to be the preservation of capital and the maintenance of liquidity. |
Trade Receivables | Trade Receivables The Company maintains an allowance for doubtful accounts on trade receivables equal to amounts estimated to be uncollectible. This estimate is based upon historical collection experience combined with a specific review of each customer’s outstanding trade receivable balance. 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 market. 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. Periodically, obsolescence reviews are performed on slow-moving inventories and reserves are established based on current assessments about future demands and market conditions. The inventory values have been reduced by a reserve for excess and slow-moving inventories. Inventory reserves of $83.5 million and $45.6 million were recorded as of December 31, 2017 and 2016 , respectively. If market conditions are less favorable than those projected by management, additional inventory reserves may be required. Inventories acquired from TIW and OPT as of November 10, 2016 and January 6, 2017, respectively, have been recorded at provisional fair values. |
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. Property, plant and equipment acquired from TIW and OPT as of November 10, 2016 and January 6, 2017, respectively, have been recorded at provisional fair values. |
Goodwill | Goodwill Goodwill consists of the excess of the acquisition costs over the fair value of net assets acquired in business combinations. Goodwill is reviewed for impairment annually in the fourth quarter of each year and when events or changes in circumstances indicate that the carrying amount may be impaired. For this purpose, goodwill is evaluated at the reporting unit level. Dril-Quip recorded goodwill related to the acquisition of TIW and OPT. |
Intangible Assets | Intangible Assets Definite-lived intangible assets consist of patents and customer relationships. Dril-Quip recognizes amortization expense for definite-lived intangible assets on a straight-line basis over the estimated useful lives. Indefinite-lived intangible assets consist of trademarks, specifically trade names acquired as part of the acquisition of TIW. Indefinite-lived intangible assets are stated at cost and are not amortized; instead, they are tested for impairment at least annually. The Company reviews acquired trademarks for impairment in the fourth quarter of each year and when events or changes in circumstances indicate that the assets may be impaired. The fair value of trademarks is estimated using the relief from royalty method to estimate the value of the cost savings and a discounted cash flows method to estimate the value of future income. The sum of these two values for each trademark is the fair value of the trademark. If the carrying amount of trademarks exceeds the estimated fair value, the impairment is calculated as the excess of carrying amount over the estimate of fair value. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, including property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to be generated by the asset, an impairment charge is recognized by reflecting the asset at its fair value. We review the recoverability of the carrying value of our assets based upon estimated future cash flows while taking into consideration assumptions and estimates, including the future use of the asset, remaining useful life of the asset and service potential of the asset. Additionally, inventories are valued at the lower of cost or market. In connection with our preparation and review of financial statements for the quarter ended September 30, 2017, after considering current Brent crude (Brent) consensus forecasts and expected rig counts for the foreseeable future, we determined the carrying amount of certain of our long-lived assets in the Western Hemisphere exceeded their respective fair values due to projected declines in asset utilization, and that the cost of some of our worldwide inventory exceeded its market value. As a result, we recorded corresponding impairments and other charges. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Current income taxes are provided on income reported for financial statement purposes, adjusted for transactions that do not enter into the computation of income taxes payable in the same year. Deferred tax assets and liabilities are measured using enacted tax rates for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred income tax assets to the amounts that are expected more likely than not to be realized in the future. The Company classifies interest and penalties related to uncertain tax positions as income taxes in its financial statements. |
Revenue Recognition | Revenue Recognition Product revenues The Company recognizes product revenues from two methods: • product revenues recognized under the percentage-of-completion method; and • product revenues from the sale of products that do not qualify for the percentage-of-completion method. |
Revenues recognized under the percentage-of-completion method | Revenues recognized under the percentage-of-completion method The Company uses the percentage-of-completion 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; and • product requirements cannot be filled directly from the Company’s standard inventory. 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. 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 percentage-of-completion 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 trade receivables. Unbilled revenues are expected to be billed and collected within one year. At December 31, 2017 and 2016 , receivables included $41.0 million and $56.8 million of unbilled receivables, respectively. For the year ended December 31, 2017 , there were eight projects representing approximately 13% of the Company’s total revenues and approximately 16% of its product revenues, and 10 projects during 2016 representing approximately 14% of the Company’s total revenues and approximately 17% of its product revenues, which were accounted for using percentage-of-completion accounting. |
Revenues not recognized under the percentage-of-completion method | Revenues not recognized under the percentage-of-completion method Revenues from the sale of inventory products, not accounted for under the percentage-of-completion method, are recorded at the time the manufacturing processes are complete and ownership is transferred to the customer. |
Service revenues | Service revenues The Company earns service revenues from three sources: • technical advisory assistance; • rental of running tools; and • rework and reconditioning of customer-owned Dril-Quip products. |
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 experienced exchange losses (gains) of approximately $12.7 million , $(25.6) million and $(3.9) million in 2017 , 2016 and 2015 , respectively, net of income taxes. These amounts are included in selling, general and administrative costs in the Consolidated Statements of Income on a pre-tax basis. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which subject the Company to concentrations of credit risk primarily include trade receivables. The Company grants credit to its customers, which operate primarily in the oil and gas industry. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company maintains reserves for potential losses, and actual losses have historically been within management’s expectations. In addition, the Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in obligations of the U.S. Treasury and repurchase agreements backed by U.S. Treasury obligations. Changes in the financial markets and interest rates could affect the interest earned on short-term investments. |
Earnings Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed considering the dilutive effect of stock options and awards using the treasury stock method. |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth the purchase price allocation, which was based on fair value of assets acquired and liabilities assumed at the acquisition date, November 10, 2016: Valuation at November 10, 2016 (In thousands) Cash $ 1,829 Trade receivables 9,794 Inventories 29,896 Prepaid and other current assets 3,572 Deferred income taxes 205 Property, plant and equipment 38,058 Intangible assets (1) 29,808 Total assets acquired 113,162 Accounts payable 10,325 Customer prepayments 2,757 Other accrued liabilities 2,644 Deferred tax liabilities, non-current 2,261 Total liabilities assumed 17,987 Net identifiable assets acquired 95,175 Goodwill 33,522 Net assets acquired $ 128,697 (1) Includes $3.0 million of patents with a weighted average useful life of 10 years , $8.4 million of tradenames with an indefinite life and $18.1 million of customer relationships with a weighted average useful life of 15 years . See Note 9 , Intangible Assets, for further information regarding intangible assets. |
Schedule of Pro Forma Information | The following table reflects the unaudited pro forma consolidated results of operations for the periods presented, as though the acquisition of TIW had occurred on January 1, 2015: Year Ended December 31, 2016 2015 (In thousands, except per share data) (Unaudited) Revenues $ 595,797 $ 943,714 Net income $ 84,756 $ 193,310 Basic earnings per share $ 2.26 $ 5.04 Diluted earnings per share $ 2.25 $ 5.02 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31, 2017 2016 (In thousands) Raw materials and supplies $ 70,188 $ 85,684 Work in progress 65,382 81,645 Finished goods 239,083 233,732 374,653 401,061 Less: allowance for obsolete and excess inventory (see Note 7) (83,566 ) (45,648 ) Total inventory $ 291,087 $ 355,413 |
Property, Plant and Equipment33
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of: Estimated Useful Lives December 31, 2017 2016 (In thousands) Land improvements 10-25 years $ 7,485 $ 8,585 Buildings 15-40 years 183,437 191,485 Machinery, equipment and other 3-10 years 361,959 370,578 552,881 570,649 Less accumulated depreciation (315,091 ) (293,854 ) 237,790 276,795 Land 13,464 12,120 Construction work in process 32,993 34,234 Total property, plant and equipment $ 284,247 $ 323,149 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reporting unit during the year ended December 31, 2017 were as follows: Carrying Value Carrying Value January 1, 2017 Acquisitions Foreign Currency Translation Purchase Price Adjustments December 31, 2017 (In thousands) Western Hemisphere $ 26,632 $ 12,788 $ 587 $ (849 ) $ 39,158 Eastern Hemisphere 7,739 — 727 — 8,466 Asia Pacific — — — — — Total $ 34,371 $ 12,788 $ 1,314 $ (849 ) $ 47,624 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets | Intangible assets, the majority of which were acquired in the acquisition of TIW and OPT, consist of the following: Estimated Useful Lives 2017 Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks indefinite $ 8,416 $ — $ 56 $ 8,472 Patents 15 - 30 years 5,946 (968 ) 80 5,058 Customer relationships 5 - 15 years 26,503 (1,675 ) (64 ) 24,764 Non-compete agreements 3 years 171 (57 ) — 114 $ 41,036 $ (2,700 ) $ 72 $ 38,408 Estimated Useful Lives 2016 Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks indefinite $ 8,416 $ — $ — $ 8,416 Patents 15 - 30 years 3,583 (294 ) — 3,289 Customer relationships 5 - 15 years 18,057 (168 ) — 17,889 $ 30,056 $ (462 ) $ — $ 29,594 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income (loss) before income taxes consisted of the following: Year Ended December 31, 2017 2016 2015 (In thousands) Domestic $ (84,278 ) $ 33,543 $ 107,158 Foreign 18,634 82,325 142,613 Total $ (65,644 ) $ 115,868 $ 249,771 |
Schedule of Income Tax Provision (Benefit) | The income tax provision (benefit) consists of the following: Year Ended December 31, 2017 2016 2015 (In thousands) Current: Federal $ 20,435 $ 8,461 $ 33,017 Foreign (2,671 ) 15,246 28,229 Total current 17,764 23,707 61,246 Deferred: Federal 20,592 1,121 (1,611 ) Foreign (3,361 ) (2,181 ) (1,872 ) Total deferred 17,231 (1,060 ) (3,483 ) Total $ 34,995 $ 22,647 $ 57,763 |
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, 2017 2016 2015 Federal income tax statutory rate 35.0 % 35.0 % 35.0 % Foreign income tax rate differential 2.4 (11.7 ) (7.3 ) Foreign development tax incentive 1.8 (0.9 ) (1.3 ) Manufacturing benefit — (1.1 ) (1.4 ) Foreign intellectual property tax benefit 16.1 (1.0 ) (0.8 ) Tax Cuts and Jobs Act (TCJA) Transition Tax (49.7 ) — — Deferred tax rate change (20.7 ) — — Change in valuation allowance (35.6 ) — — Other (2.6 ) (0.8 ) (1.1 ) Effective income tax rate (53.3 )% 19.5 % 23.1 % |
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, 2017 2016 (In thousands) Net current deferred tax assets: Inventory $ 20,816 $ 21,531 Net operating losses 5,380 3,019 Allowance for doubtful accounts 1,200 1,311 Reserve for accrued liabilities 3,177 840 Stock options 3,553 6,052 Other 1,811 867 Net current deferred tax assets 35,937 33,620 Valuation allowance $ (26,445 ) $ (3,071 ) Net non-current deferred tax liability: Property, plant and equipment (2,618 ) (7,899 ) Goodwill & Intangibles (4,161 ) (1,653 ) Other (781 ) 1,699 Net non-current deferred tax liabilities (7,560 ) (7,853 ) Net deferred tax asset $ 1,932 $ 22,696 |
Schedule of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions for the year ended December 31, 2017 is as follows: 2017 (In thousands) Balance at beginning of year $ 5,717 Additions for tax positions related to the current year 16,800 Settlements with tax authorities (3,628 ) Balance at end of year $ 18,889 |
Summary of Operating Loss Carryforwards | These operating losses will expire as shown in the table below. Net operating losses Expiration (In thousands) $ 5,132 2019-2024 6,993 2025-2031 2,200 2032-2037 8,995 Indefinite $ 23,319 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Accrued Liabilities | accrued liabilities consist of the following: December 31, 2017 2016 (In thousands) Payroll taxes $ 6,591 $ 3,151 Property, sales and other taxes 8,340 6,258 Commissions payable 408 1,424 Accrued vendor costs 7,068 2,185 Accrued warranties 1,535 3,853 Other 1,596 1,245 Total $ 25,538 $ 18,116 |
Geographic Segments (Tables)
Geographic Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | Year Ended December 31, 2017 2016 2015 (In thousands) Revenues: Western Hemisphere Products $ 217,084 $ 254,359 $ 332,452 Services 65,050 63,350 88,376 Intercompany 27,554 43,856 53,429 Total $ 309,688 $ 361,565 $ 474,257 Eastern Hemisphere Products $ 69,664 $ 106,862 $ 234,853 Services 28,048 34,818 52,963 Intercompany 772 337 5,799 Total $ 98,484 $ 142,017 $ 293,615 Asia Pacific Products $ 64,383 $ 71,791 $ 118,059 Services 11,239 7,551 17,607 Intercompany 781 1,882 5,124 Total $ 76,404 $ 81,224 $ 140,790 Summary Products $ 351,132 $ 433,012 $ 685,364 Services 104,337 105,719 158,946 Intercompany 29,107 46,075 64,352 Eliminations (29,107 ) (46,075 ) (64,352 ) Total $ 455,469 $ 538,731 $ 844,310 Depreciation and amortization: Western Hemisphere $ 30,441 $ 21,395 $ 20,093 Eastern Hemisphere 4,096 4,965 5,685 Asia Pacific 4,064 4,437 4,491 Corporate 2,374 1,060 208 Total $ 40,974 $ 31,857 $ 30,477 Income before income taxes: Western Hemisphere $ (18,099 ) $ 91,221 $ 155,763 Eastern Hemisphere 1,379 60,835 89,349 Asia Pacific 4,927 12,779 38,155 Corporate (53,706 ) (50,941 ) (43,264 ) Eliminations (146 ) 1,974 9,768 Total $ (65,644 ) $ 115,868 $ 249,771 December 31, 2017 2016 (In thousands) Total long-lived assets: Western Hemisphere $ 482,636 $ 317,875 Eastern Hemisphere 264,828 33,338 Asia Pacific 58,606 53,960 Eliminations (414,814 ) (480 ) Total $ 391,256 $ 404,693 Total assets: Western Hemisphere $ 877,779 $ 775,358 Eastern Hemisphere 752,967 318,529 Asia Pacific 185,229 370,043 Eliminations (416,170 ) (2,526 ) Total $ 1,399,805 $ 1,461,404 |
Stock-Based Compensation and 39
Stock-Based Compensation and Stock Awards (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Option Activity | Option activity for the year ended December 31, 2017 was as follows: Number of Options Weighted Average Price Aggregate Intrinsic Value (in millions) Weighted Average Remaining Contractual Life (in years) Outstanding at December 31, 2016 351,959 $ 57.66 Granted — — Exercised (23,247 ) 31.31 Forfeited (48,500 ) 57.71 Outstanding at December 31, 2017 280,212 $ 59.84 $ 0.6 2.9 Exercisable at December 31, 2017 280,212 $ 59.84 $ 0.6 2.9 |
Summary of RSA Activity | The Company’s RSA activity and related information is presented below: RSA Number of Shares Weighted Average Grant Date Fair Value Per Share Nonvested balance at December 31, 2016 269,383 $ 57.59 Granted 261,095 43.56 Vested (127,674 ) 55.31 Forfeited (5,506 ) 52.81 Nonvested balance at December 31, 2017 397,298 $ 46.76 |
Summary of PSA Activity | The Company’s Performance Unit activity and related information is presented below: Number of Performance Units Weighted Average Grant Date Fair Value Per Unit Nonvested balance at December 31, 2016 196,219 $ 78.42 Granted 122,810 54.64 Vested (52,444 ) 126.84 Forfeited (2,311 ) 126.84 Nonvested balance at December 31, 2017 264,274 $ 59.97 |
Schedule of DSA Activity | The Company's DSA activity for the year ended December 31, 2017 is presented below: DSA Number of Shares Weighted Average Grant Date Fair Value Per Share Nonvested balance at December 31, 2016 13,422 $ 62.46 Granted 9,340 51.58 Vested (5,248 ) 68.70 Forfeited — — Nonvested balance at December 31, 2017 17,514 $ 54.80 |
Schedule of Information for Stock Option Plans | The following table summarizes information for equity compensation plans in effect as of December 31, 2017 : Number of securities to be issued upon exercise of outstanding options (1) Weighted-average exercise price of outstanding options Number of securities remaining available for future issuance under equity compensation plan (excluding securities reflected in column (a)) Plan category (a) (b) (c) Equity compensation plans approved by stockholders Stock options 280,212 $ 59.84 198,472 Total 280,212 $ 59.84 198,472 (1) Excludes 414,812 shares of unvested RSAs and DSAs and 264,274 of unvested Performance Units, which were granted pursuant to the 2017 Plan and the 2004 Plan, both of which were approved by the stockholders. |
Monte Carlo Simulation | |
Schedule of Assumptions Used in Monte Carlo Simulation | Assumptions used in the Monte Carlo simulation are as follows: 2017 2016 Grant date October 28, 2017 October 28, 2016 Performance period October 1, 2017 to September 30, 2020 October 1, 2016 to September 30, 2019 Volatility 34.0% 32.5% Risk-free interest rate 1.7% 1.0% Grant date price $41.50 $48.45 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 (In thousands, except per share amounts) Net income (loss) $ (100,639 ) $ 93,221 $ 192,008 Weighted average basic common shares outstanding 37,457 37,537 38,364 Effect of dilutive securities - stock options and awards — 130 167 Total shares and dilutive securities 37,457 37,667 38,531 Basic earnings (loss) per common share $ (2.69 ) $ 2.48 $ 5.00 Diluted earnings (loss) per common share $ (2.69 ) $ 2.47 $ 4.98 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the years ended December 31, 2017, 2016 and 2015, 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, 2017 2016 2015 (In thousands) Director stock awards 8 2 2 Stock options 21 — — Performance share units 160 64 61 Restricted stock awards 186 110 97 |
Quarterly Results of Operatio41
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations | Quarter Ended March 31 June 30 September 30 December 31 (In thousands, except per share data) Unaudited 2017 Revenues $ 119,228 $ 127,922 $ 100,346 $ 107,971 Cost of sales 82,440 87,549 63,050 72,356 Gross profit 36,788 40,373 37,296 35,615 Operating income (loss) (870 ) (1,114 ) (62,045 ) (5,110 ) Net income (loss) 94 15 (29,260 ) (71,492 ) Earnings (loss) per share: Basic (1) $ — $ — $ (0.78 ) $ (1.90 ) Diluted (1) — — (0.78 ) (1.90 ) 2016 Revenues $ 166,561 $ 142,439 $ 123,640 $ 106,091 Cost of sales 93,096 79,881 77,633 77,794 Gross profit 73,465 62,558 46,007 28,297 Operating income (loss) 49,343 45,217 22,933 (4,634 ) Net income (loss) 36,769 36,137 19,013 1,302 Earnings (loss) per share: Basic (1) $ 0.97 $ 0.96 $ 0.51 $ 0.03 Diluted (1) $ 0.97 $ 0.96 $ 0.51 $ 0.03 (1) The sum of the quarterly per share amounts may not equal the annual amount reported, as per share amounts are computed independently for each quarter and for the full year. |
Organization - Additional Infor
Organization - Additional Information (Detail) $ in Millions | Jan. 06, 2017USD ($) | Dec. 31, 2017USD ($)SegmentLocation |
Business Acquisition [Line Items] | ||
Number of geographic segments | Segment | 3 | |
Number of headquarter locations | Location | 3 | |
Technology Alliance Inc. | ||
Business Acquisition [Line Items] | ||
Consideration transferred | $ | $ 20 | $ 2 |
Significant Accounting Polici43
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017USD ($)ProjectSourceMethod | Dec. 31, 2016USD ($)Project | Dec. 31, 2015USD ($) | |
Accounting Policies [Line Items] | |||
Inventory reserves | $ (83,566,000) | $ (45,648,000) | |
Impairments and other charges related to inventory | 33,600,000 | ||
Impairments and other charges related to fixed sssets | 27,400,000 | ||
Impairments of long-lived assets | $ 0 | 0 | $ 0 |
Number of product revenue sources | Method | 2 | ||
Unbilled receivables | $ 41,000,000 | $ 56,800,000 | |
Number of projects | Project | 8 | 10 | |
Percentage of total revenues | 13.00% | 14.00% | |
Percentage of product revenues | 16.00% | 17.00% | |
Number of service revenue sources | Source | 3 | ||
Gains in foreign currency exchange transactions | $ (12,700,000) | $ 25,600,000 | $ 3,900,000 |
Inventories | |||
Accounting Policies [Line Items] | |||
Inventory reserves | $ (83,500,000) | $ (45,600,000) |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 06, 2017 | Oct. 14, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Nov. 10, 2016 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 47,624 | $ 34,371 | $ 47,624 | ||||
TIW Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Stock purchase agreement, par value of common stock (in dollars per share) | $ 100 | ||||||
Purchase price as a result of business acquisition | $ 142,700 | ||||||
Acquisition costs | $ 2,500 | ||||||
Goodwill | $ 33,522 | ||||||
Revenues | 49,400 | 595,797 | $ 943,714 | ||||
Pre-tax operating loss | (15,500) | $ 84,756 | $ 193,310 | ||||
Net loss from business acquisition | (15,900) | ||||||
Technology Alliance Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price as a result of business acquisition | $ 20,000 | $ 2,000 |
Business Acquisitions - Schedul
Business Acquisitions - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Nov. 10, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 47,624 | $ 34,371 | |
TIW Corporation | |||
Business Acquisition [Line Items] | |||
Cash | $ 1,829 | ||
Trade receivables | 9,794 | ||
Inventories | 29,896 | ||
Prepaid and other current assets | 3,572 | ||
Deferred income taxes | 205 | ||
Property, plant and equipment | 38,058 | ||
Intangible assets | 29,808 | ||
Total assets acquired | 113,162 | ||
Accounts payable | 10,325 | ||
Customer prepayments | 2,757 | ||
Other accrued liabilities | 2,644 | ||
Deferred tax liabilities, non-current | 2,261 | ||
Total liabilities assumed | 17,987 | ||
Net identifiable assets acquired | 95,175 | ||
Goodwill | 33,522 | ||
Net assets acquired | 128,697 | ||
Patents | TIW Corporation | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 3,000 | ||
Weighted average useful life | 10 years | ||
Trade Names | TIW Corporation | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 8,400 | ||
Customer relationships | TIW Corporation | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 18,100 | ||
Weighted average useful life | 15 years |
Business Acquisitions - Sched46
Business Acquisitions - Schedule of Pro Forma Information (Details) - TIW Corporation - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||
Revenues | $ 49,400 | $ 595,797 | $ 943,714 |
Net income | $ (15,500) | $ 84,756 | $ 193,310 |
Basic earnings per share (in dollars per share) | $ 2.26 | $ 5.04 | |
Diluted earnings per share (in dollars per share) | $ 2.25 | $ 5.02 |
Inventories, net - Schedule of
Inventories, net - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 70,188 | $ 85,684 |
Work in progress | 65,382 | 81,645 |
Finished goods | 239,083 | 233,732 |
Inventory, gross, Total | 374,653 | 401,061 |
Less: allowance for obsolete and excess inventory | (83,566) | (45,648) |
Total inventory | $ 291,087 | $ 355,413 |
Property, Plant and Equipment48
Property, Plant and Equipment, net - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 552,881 | $ 570,649 |
Less accumulated depreciation | (315,091) | (293,854) |
property, Plant and Equipment Less Accumulated Depreciation | 237,790 | 276,795 |
Total property, plant and equipment | 284,247 | 323,149 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7,485 | 8,585 |
Land improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | |
Land improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 25 years | |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 183,437 | 191,485 |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 40 years | |
Machinery, equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 361,959 | 370,578 |
Machinery, equipment and other | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Machinery, equipment and other | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 13,464 | 12,120 |
Construction work in process | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 32,993 | $ 34,234 |
Property, Plant and Equipment49
Property, Plant and Equipment, net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 38.6 | $ 31.6 | $ 30.5 |
Impairments and Other Charges -
Impairments and Other Charges - Narrative (Details) $ in Millions | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairments and other charges related to inventory | $ (33.6) |
Impairments and other charges related to fixed assets | $ (27.4) |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning balance | $ 34,371 |
Acquisitions | 12,788 |
Foreign Currency Translation | 1,314 |
Purchase Price Adjustments | (849) |
Goodwill, Ending balance | 47,624 |
Western Hemisphere | |
Goodwill [Roll Forward] | |
Goodwill, Beginning balance | 26,632 |
Acquisitions | 12,788 |
Foreign Currency Translation | 587 |
Purchase Price Adjustments | (849) |
Goodwill, Ending balance | 39,158 |
Eastern Hemisphere | |
Goodwill [Roll Forward] | |
Goodwill, Beginning balance | 7,739 |
Acquisitions | 0 |
Foreign Currency Translation | 727 |
Purchase Price Adjustments | 0 |
Goodwill, Ending balance | 8,466 |
Asia Pacific | |
Goodwill [Roll Forward] | |
Goodwill, Beginning balance | 0 |
Acquisitions | 0 |
Foreign Currency Translation | 0 |
Purchase Price Adjustments | 0 |
Goodwill, Ending balance | $ 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Trademarks | $ 8,416 | $ 8,416 |
Gross Book Value | 41,036 | 30,056 |
Accumulated Amortization | (2,700) | (462) |
Foreign Currency Translation | 72 | 0 |
Trademarks and foreign currency translation | 8,472 | 8,416 |
Net Book Value | 38,408 | 29,594 |
Patents | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Book Value | 5,946 | 3,583 |
Accumulated Amortization | (968) | (294) |
Foreign Currency Translation | 80 | 0 |
Net Book Value | 5,058 | 3,289 |
Customer relationships | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Book Value | 26,503 | 18,057 |
Accumulated Amortization | (1,675) | (168) |
Foreign Currency Translation | (64) | 0 |
Net Book Value | 24,764 | 17,889 |
Non-compete agreements | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Book Value | 171 | |
Accumulated Amortization | (57) | |
Foreign Currency Translation | 0 | |
Net Book Value | $ 114 | |
Estimated Useful Lives | 3 years | |
Minimum | Patents | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | |
Minimum | Customer relationships | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 5 years | |
Maximum | Patents | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 30 years | |
Maximum | Customer relationships | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | |
Foreign Currency Translation | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Trademarks | $ 56 | $ 0 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 2,400,000 | $ 200,000 | $ 0 |
Amortization expense for 2018 | 2,200,000 | ||
Amortization expense for 2019 | 2,200,000 | ||
Amortization expense for 2020 | 2,100,000 | ||
Amortization expense for 2021 | 2,100,000 | ||
Amortization expense for 2022 | $ 2,100,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (84,278,000) | $ 33,543,000 | $ 107,158,000 |
Foreign | 18,634,000 | 82,325,000 | 142,613,000 |
Income (loss) before taxes | $ (65,644,000) | $ 115,868,000 | $ 249,771,000 |
Income Taxes - Schedule of In55
Income Taxes - Schedule of Income Tax Provision (Benefit) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 20,435,000 | $ 8,461,000 | $ 33,017,000 |
Foreign | (2,671,000) | 15,246,000 | 28,229,000 |
Total current | 17,764,000 | 23,707,000 | 61,246,000 |
Deferred: | |||
Federal | 20,592,000 | 1,121,000 | (1,611,000) |
Foreign | (3,361,000) | (2,181,000) | (1,872,000) |
Total deferred | 17,231,000 | (1,060,000) | (3,483,000) |
Total | $ 34,995,000 | $ 22,647,000 | $ 57,763,000 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reflected in Provision for Income Taxes and U.S. Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax statutory rate | 35.00% | 35.00% | 35.00% |
Foreign income tax rate differential | 2.40% | (11.70%) | (7.30%) |
Foreign development tax incentive | 1.80% | (0.90%) | (1.30%) |
Manufacturing benefit | (0.00%) | (1.10%) | (1.40%) |
Foreign intellectual property tax benefit | 16.10% | (1.00%) | (0.80%) |
TCJA Transition Tax | (49.70%) | 0.00% | 0.00% |
Deferred tax rate change | (20.70%) | 0.00% | 0.00% |
Change in valuation allowance | (35.60%) | (0.00%) | (0.00%) |
Other | (2.60%) | (0.80%) | (1.10%) |
Effective income tax rate | (53.30%) | 19.50% | 23.10% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Net current deferred tax assets: | ||
Inventory | $ 20,816 | $ 21,531 |
Net operating losses | 5,380 | 3,019 |
Allowance for doubtful accounts | 1,200 | 1,311 |
Reserve for accrued liabilities | 3,177 | 840 |
Stock options | 3,553 | 6,052 |
Other | 1,811 | 867 |
Net current deferred tax assets | 35,937 | 33,620 |
Valuation allowance | (26,445) | (3,071) |
Net non-current deferred tax liability: | ||
Property, plant and equipment | (2,618) | (7,899) |
Goodwill & Intangibles | (4,161) | (1,653) |
Other | (781) | 1,699 |
Net non-current deferred tax liabilities | (7,560) | (7,853) |
Net deferred tax asset | $ 1,932 | $ 22,696 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Dec. 22, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||||
Net operating loss carryforwards | $ 23,319,000 | |||
Valuation allowance | 26,445,000 | $ 3,071,000 | ||
Provisions for US tax reform | 46,200,000 | |||
Percentage of cash and cash equivalents | 15.50% | |||
Percentage of other tax rates | 8.00% | |||
Accrued income tax liabilities related to TCJA | 32,600,000 | |||
Adjustment to corporate tax rate | $ 13,600,000 | |||
Uncertain tax positions | 18,889,000 | 5,717,000 | ||
Increase in unrecognized tax benefits | 16,800,000 | |||
Income taxes paid | $ 8,400,000 | $ 23,000,000 | $ 61,700,000 |
Income Taxes - Schedule of Unce
Income Taxes - Schedule of Uncertain Tax Positions (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Beginning balance | $ 5,717 |
Additions for tax positions related to the current year | 16,800 |
Settlements with tax authorities | (3,628) |
Ending balance | $ 18,889 |
Income Taxes - Schedule of Oper
Income Taxes - Schedule of Operating Loss Carryforward (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 23,319 |
2019-2024 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,132 |
2025-2031 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 6,993 |
2032-2037 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 2,200 |
Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 8,995 |
Other Accrued Liabilities - Sch
Other Accrued Liabilities - Schedule of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jan. 06, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Accrued Liabilities [Line Items] | |||
Payroll taxes | $ 6,591 | $ 3,151 | |
Property, sales and other taxes | 8,340 | 6,258 | |
Commissions payable | 408 | 1,424 | |
Accrued vendor costs | 7,068 | 2,185 | |
Accrued warranties | 1,535 | 3,853 | |
Other | 1,596 | 1,245 | |
Total | 25,538 | $ 18,116 | |
Technology Alliance Inc. | |||
Other Accrued Liabilities [Line Items] | |||
Purchase price as a result of business acquisition | $ 20,000 | $ 2,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |||
Employee benefit plans, contribution expense | $ 4.3 | $ 4.6 | $ 5.7 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 10 Months Ended | 12 Months Ended | ||||
Dec. 31, 2010USD ($) | Mar. 31, 2010USD ($) | Jan. 31, 2011USD ($)Assessment | Jun. 30, 2015USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Commitments And Contingencies [Line Items] | |||||||||
Lease expense incurred | $ 6 | $ 5 | $ 5.1 | ||||||
2,018 | 3.9 | ||||||||
2,019 | 2.2 | ||||||||
2,020 | 1.8 | ||||||||
2,021 | 0.9 | ||||||||
2,022 | 0.8 | ||||||||
Thereafter | $ 6.2 | ||||||||
Brazil | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Tax assessment settled with payments | $ 3.9 | $ 12.2 | |||||||
Amount of interest, penalties and monetary restatement fees on tax assessments | $ 7.8 | ||||||||
Tax credits certified | $ 8.3 | ||||||||
Number of tax assessments | Assessment | 2 | ||||||||
Value of assessments served on Brazilian subsidiary | $ 13 | ||||||||
Court deposit | $ 5.7 | $ 3.1 | |||||||
Brazil | Inflation Related Credits | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Tax credits certified | $ 2.3 |
Geographic Segments - Schedule
Geographic Segments - Schedule of Segment Reporting (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Products | $ 351,132,000 | $ 433,012,000 | $ 685,364,000 | ||||||||
Services | 104,337,000 | 105,719,000 | 158,946,000 | ||||||||
Revenues | $ 107,971,000 | $ 100,346,000 | $ 127,922,000 | $ 119,228,000 | $ 106,091,000 | $ 123,640,000 | $ 142,439,000 | $ 166,561,000 | 455,469,000 | 538,731,000 | 844,310,000 |
Depreciation and amortization | 40,974,000 | 31,857,000 | 30,477,000 | ||||||||
Income before income taxes | (65,644,000) | 115,868,000 | 249,771,000 | ||||||||
Total long-lived assets | 391,256,000 | 404,693,000 | 391,256,000 | 404,693,000 | |||||||
Total assets | 1,399,805,000 | 1,461,404,000 | 1,399,805,000 | 1,461,404,000 | |||||||
Intercompany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 29,107,000 | 46,075,000 | 64,352,000 | ||||||||
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (29,107,000) | (46,075,000) | (64,352,000) | ||||||||
Income before income taxes | (146,000) | 1,974,000 | 9,768,000 | ||||||||
Total long-lived assets | (414,814,000) | (480,000) | (414,814,000) | (480,000) | |||||||
Total assets | (416,170,000) | (2,526,000) | (416,170,000) | (2,526,000) | |||||||
Western Hemisphere | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Products | 217,084,000 | 254,359,000 | 332,452,000 | ||||||||
Services | 65,050,000 | 63,350,000 | 88,376,000 | ||||||||
Western Hemisphere | Intercompany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 27,554,000 | 43,856,000 | 53,429,000 | ||||||||
Western Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 309,688,000 | 361,565,000 | 474,257,000 | ||||||||
Depreciation and amortization | 30,441,000 | 21,395,000 | 20,093,000 | ||||||||
Income before income taxes | (18,099,000) | 91,221,000 | 155,763,000 | ||||||||
Total long-lived assets | 482,636,000 | 317,875,000 | 482,636,000 | 317,875,000 | |||||||
Total assets | 877,779,000 | 775,358,000 | 877,779,000 | 775,358,000 | |||||||
Eastern Hemisphere | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Products | 69,664,000 | 106,862,000 | 234,853,000 | ||||||||
Services | 28,048,000 | 34,818,000 | 52,963,000 | ||||||||
Eastern Hemisphere | Intercompany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 772,000 | 337,000 | 5,799,000 | ||||||||
Eastern Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 98,484,000 | 142,017,000 | 293,615,000 | ||||||||
Depreciation and amortization | 4,096,000 | 4,965,000 | 5,685,000 | ||||||||
Income before income taxes | 1,379,000 | 60,835,000 | 89,349,000 | ||||||||
Total long-lived assets | 264,828,000 | 33,338,000 | 264,828,000 | 33,338,000 | |||||||
Total assets | 752,967,000 | 318,529,000 | 752,967,000 | 318,529,000 | |||||||
Asia-Pacific | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Products | 64,383,000 | 71,791,000 | 118,059,000 | ||||||||
Services | 11,239,000 | 7,551,000 | 17,607,000 | ||||||||
Asia-Pacific | Intercompany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 781,000 | 1,882,000 | 5,124,000 | ||||||||
Asia-Pacific | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 76,404,000 | 81,224,000 | 140,790,000 | ||||||||
Depreciation and amortization | 4,064,000 | 4,437,000 | 4,491,000 | ||||||||
Income before income taxes | 4,927,000 | 12,779,000 | 38,155,000 | ||||||||
Total long-lived assets | 58,606,000 | 53,960,000 | 58,606,000 | 53,960,000 | |||||||
Total assets | $ 185,229,000 | $ 370,043,000 | 185,229,000 | 370,043,000 | |||||||
Corporate | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 2,374,000 | 1,060,000 | 208,000 | ||||||||
Income before income taxes | $ (53,706,000) | $ (50,941,000) | $ (43,264,000) |
Geographic Segments - Additiona
Geographic Segments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017SegmentLocation | Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||
Number of geographic segments | Segment | 3 | ||
Number of headquarter locations | Location | 3 | ||
Sales Revenue, Net | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 10.00% | 10.00% | 10.00% |
Chevron and Affiliated Companies | Sales Revenue, Net | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 14.00% | 16.00% | 12.00% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 24, 2008 |
Class of Stock [Line Items] | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Series A Junior Participating Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | ||
Share price (in dollars per share) | $ 100 | ||
Percentage of preferred stock exercisable | 15.00% |
Stock-Based Compensation and 67
Stock-Based Compensation and Stock Awards - Stock Options - Additional Information (Detail) | May 13, 2004 | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | May 12, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved (up to) (in shares) | shares | 280,212 | 351,959 | 1,500,000 | ||
Intrinsic value of stock options exercised | $ 400,000 | $ 1,000,000 | $ 800,000 | ||
Anti-dilutive awards (in shares) | shares | 21,483 | 186,112 | |||
Stock-based compensation expense for stock option exercises | $ 0 | 1,100,000 | |||
Capitalized expense | $ 0 | 0 | 0 | ||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Income tax benefit realized from stock options exercised | $ 153,759 | $ 357,000,000 | $ 263,000,000 | ||
Anti-dilutive awards (in shares) | shares | 21,000 | 0 | 0 | ||
Unrecognized compensation expense related to share based compensation | $ 0 | ||||
2004 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted period | 10 years | ||||
Cumulative annual increments of the total number of shares | 0.25 | ||||
2004 Plan | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years |
Stock-Based Compensation and 68
Stock-Based Compensation and Stock Awards - Schedule of Option Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Options | ||
Options Outstanding, Beginning Balance (in shares) | 351,959 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (23,247) | |
Forfeited (in shares) | (48,500) | |
Options Outstanding, Ending Balance (in shares) | 280,212 | 351,959 |
Options Exercisable (in shares) | 280,212 | |
Weighted Average Price | ||
Weighted Average Price Outstanding, Beginning Balance (in dollars per share) | $ 57.66 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 31.31 | |
Forfeited (in dollars per share) | 57.71 | |
Weighted Average Price Outstanding, Ending Balance (in dollars per share) | 59.84 | $ 57.66 |
Weighted Average Price Exercisable (in dollars per share) | $ 59.84 | |
Aggregate Intrinsic Value (in millions) | ||
Aggregate intrinsic value Outstanding | $ 0.6 | |
Aggregate intrinsic value Exercisable | $ 0.6 | |
Weighted Average Remaining Contractual Life (in years) | ||
Weighted Average Remaining Contractual Life Outstanding (in years) | 2 years 10 months 20 days | |
Weighted Average Remaining Contractual Life Exercisable (in years) | 2 years 10 months 20 days |
Stock-Based Compensation and 69
Stock-Based Compensation and Stock Awards - Restricted Stock Awards - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards compensation expense | $ 8.4 | $ 7.2 | $ 6.3 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Anti-dilutive awards (in shares) | 21,483 | 186,112 | |
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Income tax benefit recognized | $ 1.9 | $ 1.2 | $ 1.8 |
Unrecognized compensation expense related to share based compensation | $ 16.7 | ||
Period of recognition for unrecognized compensation expense related to nonvested stock options (in years) | 2 years 3 months 4 days | ||
Anti-dilutive awards (in shares) | 186,000 | 110,000 | 97,000 |
Stock-Based Compensation and 70
Stock-Based Compensation and Stock Awards - Summary of RSA Activity (Detail) - Restricted Stock Awards | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
RSA Number of Shares | |
Nonvested options, Beginning Balance (in shares) | shares | 269,383 |
Granted (in shares) | shares | 261,095 |
Vested (in shares) | shares | (127,674) |
Forfeited (in shares) | shares | (5,506) |
Nonvested options, Ending Balance (in shares) | shares | 397,298 |
Weighted Average Grant Date Fair Value Per Unit | |
Nonvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 57.59 |
Granted (in dollars per share) | $ / shares | 43.56 |
Vested (in dollars per share) | $ / shares | 55.31 |
Forfeited (in dollars per share) | $ / shares | 52.81 |
Nonvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 46.76 |
Stock-Based Compensation and 71
Stock-Based Compensation and Stock Awards - Performance Unit Awards - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Company$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance Unit compensation expense | $ 5,400 | $ 4,600 | $ 4,500 |
Anti-dilutive performance share units (in shares) | shares | 21,483 | 186,112 | |
Performance Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share value based on Monte Carlo simulation (in dollars per share) | $ / shares | $ 54.64 | $ 53.46 | |
Percentage of grant share price (as a percentage) | 131.70% | 110.30% | |
Number of components companies in the Philadelphia Oil Service Index | Company | 15 | ||
Total share return period (in years) | 3 years | ||
Income tax benefit recognized | $ 762 | $ 462 | $ 1,100 |
Unrecognized compensation expense related to share based compensation | $ 10,200 | ||
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 | 159,810 | 64,000 | 61,000 |
Minimum | Performance Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Participants earning under the term (as a percentage) | 0.00% | ||
Maximum | Performance Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Participants earning under the term (as a percentage) | 200.00% |
Stock-Based Compensation and 72
Stock-Based Compensation and Stock Awards - Schedule of Assumptions Used in Monte Carlo Simulation (Detail) - Performance Unit Awards - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility (as a percentage) | 34.00% | 32.50% |
Risk-free interest rate (as a percentage) | 1.70% | 1.00% |
Grant date price (in dollars per share) | $ 41.50 | $ 48.45 |
Stock-Based Compensation and 73
Stock-Based Compensation and Stock Awards - Summary of PSA Activity (Detail) - Performance Unit Awards | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Number of shares | |
Nonvested options, Beginning Balance (in shares) | shares | 196,219 |
Granted (in shares) | shares | 122,810 |
Vested (in shares) | shares | (52,444) |
Forfeited (in shares) | shares | (2,311) |
Nonvested options, Ending Balance (in shares) | shares | 264,274 |
Weighted Average Grant Date Fair Value Per Unit | |
Nonvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 78.42 |
Granted (in dollars per share) | $ / shares | 54.64 |
Vested (in dollars per share) | $ / shares | 126.84 |
Forfeited (in dollars per share) | $ / shares | 126.84 |
Nonvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 59.97 |
Stock-Based Compensation and 74
Stock-Based Compensation and Stock Awards - Director Stock Compensation Awards - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Anti-dilutive awards (in shares) | 21,483 | 186,112 | ||
DSA | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fees in lieu of cash (equal to) (as a percentage) | 125.00% | |||
Director stock compensation awards expense | $ 463,000 | $ 405,000 | $ 328,000 | |
Income tax benefit recognized | 115,002 | $ 19,000 | $ 41,000 | |
Unrecognized compensation expense related to share based compensation | $ 302,000 | |||
Period of recognition for unrecognized compensation expense related to nonvested stock options (in years) | 1 year | |||
Anti-dilutive awards (in shares) | 7,703 |
Stock-Based Compensation and 75
Stock-Based Compensation and Stock Awards - Schedule of DSA Activity (Detail) - DSA | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Number of shares | |
Nonvested options, Beginning Balance (in shares) | shares | 13,422 |
Granted (in shares) | shares | 9,340 |
Vested (in shares) | shares | (5,248) |
Forfeited (in shares) | shares | 0 |
Nonvested options, Ending Balance (in shares) | shares | 17,514 |
Weighted Average Grant Date Fair Value Per Unit | |
Nonvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 62.46 |
Granted (in dollars per share) | $ / shares | 51.58 |
Vested (in dollars per share) | $ / shares | 68.70 |
Forfeited (in dollars per share) | $ / shares | 0 |
Nonvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 54.80 |
Stock-Based Compensation and 76
Stock-Based Compensation and Stock Awards - Schedule of Information for Stock Option Plans (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of securities to be issued upon exercise of outstanding options (in shares) | 280,212 | |
Weighted-average exercise price of outstanding options (in dollars per share) | $ 59.84 | |
Number of securities remaining available for future issuance under equity compensation plan (in shares) | 198,472 | |
Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units (in shares) | 397,298 | 269,383 |
Performance Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units (in shares) | 264,274 | 196,219 |
Stock options | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of securities to be issued upon exercise of outstanding options (in shares) | 280,212 | |
Weighted-average exercise price of outstanding options (in dollars per share) | $ 59.84 | |
Number of securities remaining available for future issuance under equity compensation plan (in shares) | 198,472 | |
2004 Plan | Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units (in shares) | 414,812 | |
2004 Plan | Performance Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units (in shares) | 264,274 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ (71,492) | $ (29,260) | $ 15 | $ 94 | $ 1,302 | $ 19,013 | $ 36,137 | $ 36,769 | $ (100,639) | $ 93,221 | $ 192,008 |
Weighted average basic common shares outstanding (in shares) | 37,457,413 | 37,537,000 | 38,364,000 | ||||||||
Effect of dilutive securities-stock options and awards (in shares) | 0 | 130,000 | 167,000 | ||||||||
Total shares and dilutive securities (in shares) | 37,457,413 | 37,667,000 | 38,531,000 | ||||||||
Basic earnings per common share (in dollars per share) | $ (1.90) | $ (0.78) | $ 0 | $ 0 | $ 0.03 | $ 0.51 | $ 0.96 | $ 0.97 | $ (2.69) | $ 2.48 | $ 5 |
Diluted earnings per common share (in dollars per share) | $ (1.90) | $ (0.78) | $ 0 | $ 0 | $ 0.03 | $ 0.51 | $ 0.96 | $ 0.97 | $ (2.69) | $ 2.47 | $ 4.98 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 21,483 | 186,112 | |
Director stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 8,000 | 2,000 | 2,000 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 21,000 | 0 | 0 |
Performance Unit Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 159,810 | 64,000 | 61,000 |
Restricted Stock Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 186,000 | 110,000 | 97,000 |
Stock Repurchase Plan - Additio
Stock Repurchase Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 26, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares repurchased (in shares) | 400,500,000 | 1,184,700,000 | ||
2016 Stock Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase plan (up to) | $ 100,000,000 | |||
2017 Stock Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares repurchased (in shares) | 0 |
Quarterly Results of Operatio80
Quarterly Results of Operations (Unaudited) - Schedule of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 107,971 | $ 100,346 | $ 127,922 | $ 119,228 | $ 106,091 | $ 123,640 | $ 142,439 | $ 166,561 | $ 455,469 | $ 538,731 | $ 844,310 |
Cost of sales | 72,356 | 63,050 | 87,549 | 82,440 | 77,794 | 77,633 | 79,881 | 93,096 | 305,394 | 328,404 | 459,286 |
Gross profit | 35,615 | 37,296 | 40,373 | 36,788 | 28,297 | 46,007 | 62,558 | 73,465 | |||
Operating income (loss) | (5,110) | (62,045) | (1,114) | (870) | (4,634) | 22,933 | 45,217 | 49,343 | (69,136) | 112,859 | 248,835 |
Net income (loss) | $ (71,492) | $ (29,260) | $ 15 | $ 94 | $ 1,302 | $ 19,013 | $ 36,137 | $ 36,769 | $ (100,639) | $ 93,221 | $ 192,008 |
Earnings (loss) per share: | |||||||||||
Basic (in dollars per share) | $ (1.90) | $ (0.78) | $ 0 | $ 0 | $ 0.03 | $ 0.51 | $ 0.96 | $ 0.97 | $ (2.69) | $ 2.48 | $ 5 |
Diluted (in dollars per share) | $ (1.90) | $ (0.78) | $ 0 | $ 0 | $ 0.03 | $ 0.51 | $ 0.96 | $ 0.97 | $ (2.69) | $ 2.47 | $ 4.98 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events - Narrative (Details) - USD ($) | Feb. 23, 2018 | Feb. 27, 2018 | Feb. 26, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
ABL Credit Facility | Revolving Credit Facility | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, term | 5 years | ||||
Total commitments | $ 100,000,000 | ||||
Amount available for letters of credit | $ 10,000,000 | ||||
Minimum | ABL Credit Facility | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Commitment fee percentage | 0.25% | ||||
Minimum | CB Floating Rate | ABL Credit Facility | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Minimum | Eurodollar | ABL Credit Facility | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Maximum | ABL Credit Facility | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Commitment fee percentage | 0.375% | ||||
Maximum | CB Floating Rate | ABL Credit Facility | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Maximum | Eurodollar | ABL Credit Facility | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
Series A Preferred Stock | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Preferred stock, par value (in dollars per share) | $ 0.01 | ||||
Scenario, Forecast | ABL Credit Facility | |||||
Subsequent Event [Line Items] | |||||
Available borrowing capacity | $ 71,000,000 |
Schedule II_Valuation and Qua82
Schedule II—Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for doubtful trade receivables | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 5,570 | $ 7,739 | $ 6,241 |
Charges to costs and expenses | 1,709 | 1,259 | 5,741 |
Recoveries and write offs | (2,760) | (3,428) | (4,243) |
Balance at end of period | 4,519 | 5,570 | 7,739 |
Allowance for excess and slow moving inventory | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 45,648 | 39,247 | 34,607 |
Charges to costs and expenses | 32,204 | 5,748 | 8,512 |
Recoveries and write offs | 5,714 | 653 | (3,872) |
Balance at end of period | $ 83,566 | $ 45,648 | $ 39,247 |