Innovex Downhole Solutions (INVX) 10-Q 25 Oct 18 2018 Q3 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	9 Months Ended
	Sep. 30, 2018	Oct. 24, 2018
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-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding (in shares)		35,777,241
Entity Emerging Growth Company	false
Entity Small Business	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 424,053	$ 493,180
Trade receivables, net	190,437	191,629
Inventories, net	242,123	291,087
Prepaids and other current assets	40,837	32,653
Total current assets	897,450	1,008,549
Property, plant and equipment, net	292,667	284,247
Deferred income taxes	5,512	5,364
Goodwill	47,120	47,624
Intangible assets	35,535	38,408
Other assets	14,475	15,613
Total assets	1,292,759	1,399,805
Current liabilities:
Accounts payable	21,155	33,480
Accrued income taxes	4,583	24,714
Customer prepayments	7,489	4,767
Accrued compensation	11,478	11,412
Other accrued liabilities	23,557	25,538
Total current liabilities	68,262	99,911
Deferred income taxes	3,211	3,432
Income tax payable	28,029	0
Other long-term liabilities	2,001	2,001
Total liabilities	101,503	105,344
Commitments and contingencies (Note 14)
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, 36,152,694 and 38,132,693 shares issued and outstanding at September 30, 2018 and December 31, 2017	394	372
Additional paid-in capital	31,002	20,083
Treasury shares (at cost)	(71,107)	0
Retained earnings	1,371,368	1,400,296
Accumulated other comprehensive losses	(140,401)	(126,290)
Total stockholders' equity	1,191,256	1,294,461
Total liabilities and stockholders' equity	$ 1,292,759	$ 1,399,805

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued (in shares)	0	0
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	36,152,694	38,132,693
Common stock, shares outstanding (in shares)	36,152,694	38,132,693

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues	$ 93,257,000	$ 100,346,000	$ 287,291,000	$ 347,498,000
Cost and expenses:
Cost of sales	65,630,000	63,050,000	202,824,000	233,039,000
Selling, general and administrative	31,566,000	27,985,000	83,359,000	85,060,000
Engineering and product development	10,159,000	10,379,000	30,133,000	32,537,000
Impairment and other charges	0	60,968,000	0	60,968,000
Gain on sale of assets	(14,000)	9,000	(5,113,000)	(79,000)
Total costs and expenses	107,341,000	162,391,000	311,203,000	411,525,000
Operating loss	(14,084,000)	(62,045,000)	(23,912,000)	(64,027,000)
Interest income	1,893,000	957,000	5,965,000	2,963,000
Interest expense	(195,000)	(12,000)	(545,000)	(44,000)
Loss before income taxes	(12,386,000)	(61,100,000)	(18,492,000)	(61,108,000)
Income tax provision (benefit)	(2,028,000)	(31,840,000)	2,291,000	(31,959,000)
Net loss	$ (10,358,000)	$ (29,260,000)	$ (20,783,000)	$ (29,149,000)
Loss per common share:
Basic (in dollars per share)	$ (0.28)	$ (0.78)	$ (0.56)	$ (0.78)
Diluted (in dollars per share)	$ (0.28)	$ (0.78)	$ (0.56)	$ (0.78)
Weighted average common shares outstanding:
Basic (in shares)	37,119	37,528	37,349	37,527
Diluted (in shares)	37,119	37,528	37,349	37,527
Products
Revenues	$ 63,246,000	$ 75,885,000	$ 199,010,000	$ 269,570,000
Cost and expenses:
Cost of sales	47,859,000	48,761,000	151,290,000	190,214,000
Services
Revenues	30,011,000	24,461,000	88,281,000	77,928,000
Cost and expenses:
Cost of sales	$ 17,771,000	$ 14,289,000	$ 51,534,000	$ 42,825,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (10,358)	$ (29,260)	$ (20,783)	$ (29,149)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(5,566)	13,187	(14,111)	27,786
Total comprehensive loss	$ (15,924)	$ (16,073)	$ (34,894)	$ (1,363)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating activities
Net loss	$ (20,783,000)	$ (29,149,000)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	25,966,000	32,231,000
Stock-based compensation expense	9,950,000	10,477,000
Impairment and other charges	0	60,968,000
Gain on sale of assets	(5,113,000)	(79,000)
Deferred income taxes	(914,000)	(31,529,000)
Changes in operating assets and liabilities:
Trade receivables, net	298,000	21,271,000
Inventories, net	32,610,000	32,596,000
Prepaids and other assets	(9,675,000)	17,308,000
Accounts payable and accrued expenses	(41,000)	(39,359,000)
Other, net	309,000	0
Net cash provided by operating activities	32,607,000	74,735,000
Investing activities
Purchase of property, plant and equipment	(26,683,000)	(19,563,000)
Proceeds from sale of equipment	11,244,000	1,160,000
Acquisition of business, net of cash acquired	0	(21,289,000)
Net cash used in investing activities	(15,439,000)	(39,692,000)
Financing activities
Repurchase of common shares	(80,937,000)	0
ABL Credit Facility issuance costs	(815,000)	0
Proceeds from exercise of stock options	1,106,000	455,000
Net cash provided by (used in) financing activities	(80,646,000)	455,000
Effect of exchange rate changes on cash activities	(5,649,000)	14,050,000
Increase (decrease) in cash and cash equivalents	(69,127,000)	49,548,000
Cash and cash equivalents at beginning of period	493,180,000	423,497,000
Cash and cash equivalents at end of period	$ 424,053,000	$ 473,045,000

Organization and Principles of

Organization and Principles of Consolidation	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Principles of Consolidation	Organization and Principles of Consolidation 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 Brazil LTDA, located in Macae, Brazil. Other operating subsidiaries include TIW Corporation (TIW), located in Houston, Texas; DQ Holdings Pty. Ltd., located in Perth, Australia; 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 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. The condensed consolidated financial statements included herein are unaudited. The balance sheet at December 31, 2017 has been derived from the audited consolidated financial statements at that date. In the opinion of management, the unaudited condensed consolidated interim financial statements include all normal recurring adjustments necessary for a fair statement of the financial position as of September 30, 2018 and the results of operations and comprehensive income for the three and nine months ended September 30, 2018 and 2017 and cash flows for the nine -month periods ended September 30, 2018 and 2017 . Certain information and footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Management believes the unaudited interim related disclosures in these condensed consolidated financial statements are adequate. The results of operations, comprehensive income and cash flows for the nine -month period ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year. The condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 .

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities 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. Revenue Recognition The Company generates revenues through the sale of products, the sale of services and the leasing of installation tools. The Company normally negotiates contracts for products, including those accounted for under the over time method, rental tools and services separately. Modifications to the scope and price of sales contracts may occur in the form of variations and change orders. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may instead choose to use a third party or its own personnel. Product and Service Revenues Product and service revenues are recognized as the Company satisfies the performance obligation by transferring control of the promised good or service to the customer. Revenues are measured based on consideration specified in a contract with a customer and exclude sales incentives and amounts collected on behalf of third parties. In addition, some customers may impose contractually negotiated penalties for late delivery that are excluded from the transaction price. Management has elected to utilize certain practical expedients allowed under Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606). Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer are excluded from the measurement of the transaction price. Shipping and handling activities that are performed after a customer obtains control of the good are accounted for as activities to fulfill the promise to transfer the good and thus are excluded from the transaction price. Product revenues The Company recognizes product revenues from two methods: • product revenues are recognized over time as control is transferred to the customer; and • product revenues from the sale of products that do not qualify for the over time method are recognized as point in time. Revenues recognized under the over time method The Company uses the over time method on long-term project contracts that have the following characteristics: • the contracts call for products which are designed to customer specifications; • the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration; • the contracts contain specific terms as to milestones, progress billings and delivery dates; • product requirements cannot be filled directly from the Company’s standard inventory; and • The Company has an enforceable right to payment for any work completed to date and the enforceable payment includes a reasonable profit margin. For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percentage complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs to be recognized. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. Under the over time method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Condensed 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 September 30, 2018 and December 31, 2017 , receivables included $47.3 million and $41.0 million of unbilled receivables, respectively. For the three months ended September 30, 2018 , there were eight projects representing approximately 15.7% of the Company's total revenues and approximately 23.1% of its product revenues that were accounted for using the over time method, compared to seven projects for the three months ended September 30, 2017 , which represented approximately 15.0% of the Company's total revenues and approximately 20.0% of its product revenues. For the nine months ended September 30, 2018 , there were 14 projects representing approximately 14.0% of the Company’s total revenues and approximately 20.3% of its product revenues that were accounted for using over time accounting, compared to eight projects for the nine months ended September 30, 2017 , which represented approximately 15.0% of the Company’s total revenues and approximately 19.0% of its product revenues. Revenues recognized under the point in time method Revenues from the sale of standard inventory products, not accounted for under the over time method, are recorded at the point in time that the customer obtains control of the promised asset and the Company satisfies its performance obligation. This point in time recognition aligns with the time of shipment, which is when the Company typically has a present right to payment, title transfers to the customer, the customer or its carrier has physical possession and the customer has significant risks and rewards of ownership. The Company may provide product storage to some customers. Revenues for these products are recognized at the point in time that control of the product transfers to the customer, the reason for storage is requested by the customer, the product is separately identified, the product is ready for physical transfer to the customer and the Company does not have the ability to use or direct the use of the product. This point in time typically occurs when the products are moved to storage. We receive payment after control of the products has transferred to the customer. Service revenues The Company recognizes service revenues from two sources: • technical advisory assistance; and • rework and reconditioning of customer-owned Dril-Quip products. The Company generally does not install products for its customers, but it does provide technical advisory assistance. The Company normally negotiates contracts for products, including those accounted for under the over time method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may use a third party or their own personnel. The contracts for these services are typically considered day-to-day. Rework and reconditioning service revenues are recorded using the over time method based on the remaining steps that need to be completed as the refurbishment process is performed. The measurement of progress considers, among other things, the time necessary for completion of each step in the reconditioning plan, the materials to be purchased, labor and ordering procedures. We receive payment after the services have been performed by billing customers periodically (typically monthly). Lease revenues The Company earns lease revenues from the rental of running tools. Rental revenues are recognized within service revenues on a dayrate basis over the lease term. Practical Expedients We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. 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. Restructuring and Other Charges In the third quarter of 2018, we initiated a global strategic analysis to better align our operations with current market conditions. As a result of this plan, during the three and nine months ended September 30, 2018, we incurred restructuring and other charges of approximately $3.7 million primarily related to employee termination benefits and consulting fees, which are included in "Selling, general and administrative" in our accompanying condensed consolidated statement of income (loss). Treasury Shares On July 26, 2016, the Board of Directors authorized a share repurchase plan under which the Company can repurchase up to $100 million of its common stock. The repurchase plan has no set expiration date and any repurchased shares are expected to be cancelled. For the three-month period ended September 30, 2018, the Company purchased 1,395,521 shares under the share repurchase plan at an average price of approximately $50.95 per share totaling approximately $71.1 million , which is reflected in "Treasury shares (at cost)", in our accompanying condensed consolidated balance sheet. In May 2018, the Company purchased 219,102 shares under the share repurchase plan at an average price of approximately $ 44.87 per share totaling approximately $9.8 million and retired such shares, which is reflected within our retained earnings for the period ended September 30, 2018. 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. In each relevant period, the net income used in the basic and dilutive earnings per share calculations is the same. The following table reconciles the weighted average basic number of common shares outstanding and the weighted average diluted number of common shares outstanding for the purpose of calculating basic and diluted earnings per share: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (In thousands) Weighted average common shares outstanding - basic 37,119 37,528 37,349 37,527 Dilutive effect of common stock options and awards — — — — Weighted average common shares outstanding - diluted 37,119 37,528 37,349 37,527 For the three and nine months ended September 30, 2018 , 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): Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (In thousands) Director stock awards 11 15 9 13 Stock options 181 328 196 333 Performance share units 126 212 90 207 Restricted stock awards 172 315 125 293

New Accounting Standards

New Accounting Standards	9 Months Ended
	Sep. 30, 2018
Accounting Changes and Error Corrections [Abstract]
New Accounting Standards	New Accounting Standards In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 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 has engaged a third-party expert to assist in the analysis of its lease arrangements to ensure the appropriate steps are taken in its assessment of the standard. The ultimate effect on our condensed consolidated financial statements will be based on an evaluation of the contract-specific facts and circumstances. With respect to leases in which we are the lessee, we expect to recognize a lease liability and a corresponding right of use asset. We plan to utilize the FASB package of three practical expedients under ASC 842-10-65-1(f). We are currently evaluating what other effect, if any, ASC 842 will have on our condensed consolidated financial statements and related disclosures. Adoption of ASC Topic 606, “Revenue from Contracts with Customers” In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606).” On January 1, 2018, we adopted the new accounting standard ASC 606, Revenue from Contracts with Customers and all the related amendments (the "new revenue standard”) for contracts that are not completed at the date of initial application using the modified retrospective method. We recognized the cumulative effect of the initial application of the new revenue standard as an increase to the opening balance of retained earnings at January 1, 2018 for $1.8 million . Therefore, the comparative information for prior periods has not been restated and continues to be reported under the accounting standards in effect for those periods. A majority of the Company's revenues are not subject to the new revenue standard. The adoption of ASC 606 resulted in an increase of approximately $0.1 million and $2.4 million in our results from operations for the three and nine months ended September 30, 2018 , respectively, and did not have a material impact on the Company's consolidated financial position, results of operations, equity or cash flows. A majority of our product revenues continues to be recognized when products are shipped from our facilities.

Revenue Recognition (Adoption o

Revenue Recognition (Adoption of ASC 606)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition (Adoption of ASC 606)	Revenue Recognition (Adoption of ASC 606) Revenues from contracts with customers consisted of the following: Three months ended September 30, 2018 Western Hemisphere Eastern Hemisphere Asia-Pacific Intercompany Total (In thousands) Product Revenues $ 43,825 $ 17,834 $ 1,587 $ — $ 63,246 Service Revenues 10,169 4,364 3,008 — 17,541 Total $ 53,994 $ 22,198 $ 4,595 $ — $ 80,787 Nine months ended September 30, 2018 Western Hemisphere Eastern Hemisphere Asia-Pacific Intercompany Total (In thousands) Product Revenues $ 130,259 $ 52,238 $ 16,513 $ — $ 199,010 Service Revenues 29,173 15,485 8,345 — 53,003 Total $ 159,432 $ 67,723 $ 24,858 $ — $ 252,013 Contract Balances Balances related to contracts with customers consisted of the following: Contract Assets (amounts shown in thousands) Contract Assets at December 31, 2017 $ 41,825 Additions 44,110 Transfers to Accounts Receivable 10,180 Contract Assets at September 30, 2018 $ 75,755 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2017 $ 4,767 Additions 25,039 Revenue Recognized 23,018 Contract Liabilities at September 30, 2018 $ 6,788 Receivables, which are included in trade receivables, net, were $98.3 million and $136.5 million for the nine months ended September 30, 2018 and December 31, 2017 , respectively. The amount of revenues from performance obligations satisfied (or partially satisfied) in previous periods was $3.9 million and $15.7 million for the three and nine months ended September 30, 2018 , respectively. The contract liabilities primarily relate to advance payments from customers and are included in "Customer prepayments" in our accompanying condensed consolidated balance sheets. The contract assets primarily relate to unbilled amounts typically resulting from sales under contracts when the over time method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer and is included in "Trade receivables, net" in our accompanying condensed consolidated balance sheets. Contract assets are transferred to the receivables when the rights become unconditional. Obligations for returns and refunds were considered immaterial as of September 30, 2018 . Remaining Performance Obligations The aggregate amount of the transaction price allocated to remaining performance obligations from our reconditioning services and over time product lines was $33.8 million as of September 30, 2018 . The Company expects to recognize revenue on approximately 85% and 15% of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter. The Company applies the practical expedient available under the new revenue standard and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

Stock-Based Compensation and St

Stock-Based Compensation and Stock Awards	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation and Stock Awards	Stock-Based Compensation and Stock Awards During the three and nine months ended September 30, 2018 , the Company recognized approximately $2.4 million and $10.0 million , respectively, of stock-based compensation expense, which is included in "Selling, general and administrative" in our accompanying condensed consolidated statements of income (loss) and "Additional paid-in capital" in our accompanying condensed consolidated balance sheets, compared to $3.7 million and $10.5 million recognized for the three and nine months ended September 30, 2017 , respectively. No stock-based compensation expense was capitalized during the three and nine months ended September 30, 2018 or 2017 .

Inventories, net

Inventories, net	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Inventories, net	Inventories, net Inventories consist of the following: September 30, December 31, 2018 2017 (In thousands) Raw materials and supplies $ 59,505 $ 70,188 Work in progress 53,546 65,382 Finished goods 206,543 239,083 319,594 374,653 Less: allowance for obsolete and excess inventory (77,471 ) (83,566 ) Total inventory $ 242,123 $ 291,087

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The changes in the carrying amount of goodwill by reporting unit during the nine months ended September 30, 2018 were as follows: Carrying Value Carrying Value December 31, 2017 Foreign Currency Translation September 30, 2018 (In thousands) Western Hemisphere $ 39,158 $ (93 ) $ 39,065 Eastern Hemisphere 8,466 (411 ) 8,055 Asia-Pacific — — — Total $ 47,624 $ (504 ) $ 47,120 The Company performs its annual impairment tests of goodwill as of October 1 or when there is an indication an impairment may have occurred. As of September 30, 2018, there were no indications an impairment may have occurred. The fair values used in the goodwill impairment assessment were determined using the net present value of the expected future cash flows for the reporting unit. During the Company’s goodwill impairment analysis, the Company determines the fair value of the reporting unit, as a whole, using a discounted cash flow analysis, which requires significant assumptions and estimates about future operations. The assumptions about future cash flows and growth rates are based on our current budget for the remainder of the current year, 2019 and for future periods, as well as our strategic plans and management’s beliefs about future exploration and development in the industry. Changes in management's forecast commodity price assumptions may cause us to reassess our goodwill for impairment and could result in non-cash impairment charges in the future.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets Intangible assets, substantially all of which were acquired in the acquisition of TIW and OPT, consist of the following: Estimated Useful Lives September 30, 2018 Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks indefinite $ 8,275 $ — $ (73 ) $ 8,202 Patents 15 - 30 years 5,950 (1,309 ) (32 ) 4,609 Customer relationships 5 - 15 years 25,889 (3,101 ) (136 ) 22,652 Non-compete agreements 3 years 171 (99 ) — 72 $ 40,285 $ (4,509 ) $ (241 ) $ 35,535 Estimated Useful Lives December 31, 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 Amortization expense for each of the three and nine months ended September 30, 2018 was $0.6 million and $1.7 million , respectively, compared to the three and nine months ended September 30, 2017 of $0.6 million and $1.8 million , respectively.

Gain on Sale of Assets

Gain on Sale of Assets	9 Months Ended
	Sep. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]
Gain on Sale of Assets	Gain on Sale of Assets During the second quarter of 2018, we sold certain property, plant and equipment for a net gain of approximately $5.1 million as part of our reorganization and consolidation of operations at our headquarters location in Houston, Texas. A gain on property, plant and equipment or intangible assets is calculated as the difference between the cost of the asset disposed of, net of depreciation, and the sales proceeds received. The net gain is reflected in "Gain on sale of assets" in our accompanying condensed consolidated statements of income (loss). There were no significant sales of assets during the three months ended September 30, 2018.

Impairments and Other Charges

Impairments and Other Charges	9 Months Ended
	Sep. 30, 2018
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 market. In connection with our preparation and review of financial statements for the quarter ended September 30, 2017, after considering current Brent Crude consensus forecasts and expected rig counts for the foreseeable future, we determined that 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. There were no impairments during the three and nine months ended September 30, 2018.

Asset Backed Loan (ABL) Credit

Asset Backed Loan (ABL) Credit Facility	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Asset Backed Loan (ABL) Credit Facility	Asset Backed Loan (ABL) Credit Facility On February 23, 2018, the Company, as borrower, and the Company’s subsidiaries TIW and Honing, Inc., as guarantors, entered into a five -year senior secured revolving credit facility (the “ABL Credit Facility”) with JPMorgan Chase Bank, N.A., as administrative agent, and other financial institutions as lenders with total commitments of $100.0 million , including up to $10.0 million available for letters of credit. The maximum amount that the Company may borrow under the ABL Credit Facility is subject to the borrowing base, which is based on a percentage of eligible accounts receivable and eligible inventory, subject to reserves and other adjustments. All obligations under the 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 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 (as defined therein) or (ii) the Adjusted LIBOR (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 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 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 ABL Credit Facility contains various covenants and restrictive provisions that 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 ABL Credit Facility also requires the Company to maintain a fixed charge coverage ratio of 1.0 to 1.0, based on the ratio of EBITDA (as defined therein) to Fixed Charges (as defined therein) during certain periods, including when availability under the 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 ABL Credit Facility could be terminated and any outstanding borrowings under the ABL Credit Facility may be declared immediately due and payable. The 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 September 30, 2018 . As of September 30, 2018 , the availability under the ABL Credit Facility was $ 56.0 million , after taking into account the outstanding letters of credit of approximately $0.3 million issued under the facility.

Geographic Areas

Geographic Areas	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Geographic Areas	Geographic Areas Three months ended September 30, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 (In thousands) Revenues Products Standard Products $ 34,101 $ 43,344 $ 12,918 $ 9,246 $ 1,587 $ 7,940 $ — $ — $ 48,606 $ 60,530 Percentage of Completion 9,724 — 4,916 7,954 — 7,401 — — 14,640 15,355 Total Products 43,825 43,344 17,834 17,200 1,587 15,341 — — 63,246 75,885 Services — Technical Advisory 7,305 6,732 3,612 3,931 2,889 1,701 — — 13,806 12,364 Reconditioning 2,864 2,008 752 844 119 19 — — 3,735 2,871 Total Services (excluding rental tools) 10,169 8,740 4,364 4,775 3,008 1,720 — — 17,541 15,235 Leasing 5,899 5,666 3,115 2,782 3,456 778 — — 12,470 9,226 Total Services (including rental tools) 16,068 14,406 7,479 7,557 6,464 2,498 — — 30,011 24,461 Intercompany 2,564 12,569 1,302 267 573 416 — — 4,439 13,252 Eliminations — — — — — — (4,439 ) (13,252 ) (4,439 ) (13,252 ) Total Revenues $ 62,457 $ 70,319 $ 26,615 $ 25,024 $ 8,624 $ 18,255 $ (4,439 ) $ (13,252 ) $ 93,257 $ 100,346 Depreciation and amortization $ 5,607 $ 6,827 $ 1,057 $ 1,073 $ 1,390 $ 1,015 $ 670 $ 603 $ 8,724 $ 9,518 Income (loss) before income taxes $ 13,902 $ (40,472 ) $ 8,133 $ (2,882 ) $ (301 ) $ (4,525 ) $ (34,120 ) $ (13,221 ) $ (12,386 ) $ (61,100 ) Nine months ended September 30, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 (In thousands) Revenues Products Standard Products $ 110,074 $ 162,656 $ 35,556 $ 29,919 $ 13,031 $ 26,298 $ — $ — $ 158,661 $ 218,873 Percentage of Completion 20,185 275 16,682 23,648 3,482 26,774 — — 40,349 50,697 Total Products 130,259 162,931 52,238 53,567 16,513 53,072 — — 199,010 269,570 Services Technical Advisory 20,835 21,709 12,785 11,135 7,021 5,340 — — 40,641 38,184 Reconditioning 8,338 5,985 2,700 1,392 1,324 204 — — 12,362 7,581 Total Services (excluding rental tools) 29,173 27,694 15,485 12,527 8,345 5,544 — — 53,003 45,765 Leasing 18,162 21,604 10,837 8,158 6,279 2,401 — — 35,278 32,163 Total Services (including rental tools) 47,335 49,298 26,322 20,685 14,624 7,945 — — 88,281 77,928 Intercompany 9,685 22,700 1,835 554 1,300 533 — — 12,820 23,787 Eliminations — — — — — — (12,820 ) (23,787 ) (12,820 ) (23,787 ) Total $ 187,279 $ 234,929 $ 80,395 $ 74,806 $ 32,437 $ 61,550 $ (12,820 ) $ (23,787 ) $ 287,291 $ 347,498 Depreciation and amortization $ 17,091 $ 24,153 $ 3,402 $ 3,228 $ 3,521 $ 3,046 $ 1,952 $ 1,804 $ 25,966 $ 32,231 Income (loss) before income taxes $ 12,999 $ (28,558 ) $ 13,792 $ 3,401 $ (45 ) $ 3,115 $ (45,238 ) $ (39,066 ) $ (18,492 ) $ (61,108 ) Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 (In thousands) Long-Lived Assets $ 466,703 $ 482,636 $ 256,779 $ 264,828 $ 66,466 $ 58,606 $ (394,640 ) $ (414,814 ) $ 395,309 $ 391,256 Total Assets $ 800,936 $ 877,779 $ 777,868 $ 752,967 $ 161,662 $ 185,229 $ (447,707 ) $ (416,170 ) $ 1,292,759 $ 1,399,805 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.

Income Tax

Income Tax	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Tax	Income Tax The effective tax rates for the three and nine months ended September 30, 2018 were 16.4% and (12.4)% , respectively, compared to 52.0% and 52.2% for the same periods in 2017. The Company established valuation allowances on deferred tax assets for losses and tax credits generated in each period, which, when applied to losses for the three and nine months ended September 30, 2018, resulted in lower effective tax rates than the U.S. statutory rate. The negative tax rate for the nine months ended September 30, 2018 is the result of net tax expense recorded against a pre-tax loss for the period. The change in effective tax rate from 2017 to 2018 was also impacted by the decrease in the U.S. federal corporate tax rate from 35% in 2017 to 21% in 2018. On December 22, 2017, the President of the United States signed into law P.L. 115-97, informally known as the Tax Cuts and Jobs Act of 2017 ("Tax Reform"). Tax Reform amends the Internal Revenue Code to reduce tax rates and modify policies, credits and deductions for individuals and businesses. For businesses, Tax Reform reduced the corporate federal tax rate from a maximum of 35% to 21% and transitions from a worldwide tax system to a modified territorial tax system. Tax Reform also adds many new provisions including changes to bonus depreciation, the deduction for executive compensation and interest expense, a tax on global intangible low-taxed income, the base erosion anti-abusive tax and a deduction for foreign-derived intangible income. Given the amount and complexity of the changes to tax law, we continue to finalize our accounting for the income tax effects stemming from Tax Reform. At December 31, 2017, certain provisional amounts were taken as estimates to account for the impact of Tax Reform. The actual impact of Tax Reform may differ from the estimates used due to, among other things, further refinement of our calculations, changes in interpretations and assumptions we have made, guidance that may be issued and actions we may take as a result of the tax legislation. Any adjustments to these provisional estimates will be reported as a component of income tax expense in the reporting period in which any such adjustments are identified, which will be no later than the fourth quarter of 2018. For the three and nine months ended September 30, 2018, the Company reclassified $28.0 million from current income taxes payable to non-current income taxes payable due to tax return elections, recent guidance and regulations occurring in the quarter.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies 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 December 2010 and January 2011, the Company’s Brazilian subsidiary was served with two assessments totaling approximately $13.0 million from the State of Rio de Janeiro to cancel the credits associated with the tax payments to the State of Espirito Santo (Santo Credits) on the importation of goods from July 2005 to October 2007. 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. The Company’s Brazilian subsidiary filed appeals with a State of Rio de Janeiro judicial court to annul both of these tax assessments following rulings against the Company by the tax administration’s highest council. In connection with those appeals, the Company deposited with the court a total amount of approximately $8.8 million in December 2014 and December 2016 as the full amount of the assessments with penalties and interest. 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, property damage 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.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 18, 2018, we announced that Dril-Quip (Europe) Limited, our wholly owned subsidiary, has entered into a Front End Engineering and Design (FEED) Contract and Frame Agreement with Premier Oil Exploration and Production Limited (Premier) to provide the subsea production systems for the Sea Lion Phase 1 Development located offshore the Falkland Islands. The Frame Agreement replaces the previously announced letter of intent. The current estimated value of the equipment portion of the scope of work is $207 million , which includes plans for up to 30 subsea production systems, including wellheads, horizontal trees, tubing hangers, control systems, associated production and injection manifolds and subsea umbilicals. Under the Frame Agreement, it is envisaged that Dril-Quip will provide vendor financing for up to 30% of the equipment portion of the contract. Formal contract award will be subject to agreement of a definitive contract and Premier taking a final investment decision.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities 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.
Revenue Recognition	Revenues recognized under the over time method The Company uses the over time method on long-term project contracts that have the following characteristics: • the contracts call for products which are designed to customer specifications; • the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration; • the contracts contain specific terms as to milestones, progress billings and delivery dates; • product requirements cannot be filled directly from the Company’s standard inventory; and • The Company has an enforceable right to payment for any work completed to date and the enforceable payment includes a reasonable profit margin. For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percentage complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs to be recognized. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. Under the over time method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Condensed 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. Revenue Recognition The Company generates revenues through the sale of products, the sale of services and the leasing of installation tools. The Company normally negotiates contracts for products, including those accounted for under the over time method, rental tools and services separately. Modifications to the scope and price of sales contracts may occur in the form of variations and change orders. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may instead choose to use a third party or its own personnel. Revenues recognized under the point in time method Revenues from the sale of standard inventory products, not accounted for under the over time method, are recorded at the point in time that the customer obtains control of the promised asset and the Company satisfies its performance obligation. This point in time recognition aligns with the time of shipment, which is when the Company typically has a present right to payment, title transfers to the customer, the customer or its carrier has physical possession and the customer has significant risks and rewards of ownership. The Company may provide product storage to some customers. Revenues for these products are recognized at the point in time that control of the product transfers to the customer, the reason for storage is requested by the customer, the product is separately identified, the product is ready for physical transfer to the customer and the Company does not have the ability to use or direct the use of the product. This point in time typically occurs when the products are moved to storage. We receive payment after control of the products has transferred to the customer. Service revenues The Company recognizes service revenues from two sources: • technical advisory assistance; and • rework and reconditioning of customer-owned Dril-Quip products. The Company generally does not install products for its customers, but it does provide technical advisory assistance. The Company normally negotiates contracts for products, including those accounted for under the over time method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may use a third party or their own personnel. The contracts for these services are typically considered day-to-day. Rework and reconditioning service revenues are recorded using the over time method based on the remaining steps that need to be completed as the refurbishment process is performed. The measurement of progress considers, among other things, the time necessary for completion of each step in the reconditioning plan, the materials to be purchased, labor and ordering procedures. We receive payment after the services have been performed by billing customers periodically (typically monthly).
Lease revenues	Lease revenues The Company earns lease revenues from the rental of running tools. Rental revenues are recognized within service revenues on a dayrate basis over the lease term.
Practical Expedients	Practical Expedients We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.
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.
Restructuring and Other Charges	Restructuring and Other Charges In the third quarter of 2018, we initiated a global strategic analysis to better align our operations with current market conditions. As a result of this plan, during the three and nine months ended September 30, 2018, we incurred restructuring and other charges of approximately $3.7 million primarily related to employee termination benefits and consulting fees, which are included in "Selling, general and administrative" in our accompanying condensed consolidated statement of income (loss).
Treasury Shares	Treasury Shares On July 26, 2016, the Board of Directors authorized a share repurchase plan under which the Company can repurchase up to $100 million of its common stock. The repurchase plan has no set expiration date and any repurchased shares are expected to be cancelled. For the three-month period ended September 30, 2018, the Company purchased 1,395,521 shares under the share repurchase plan at an average price of approximately $50.95 per share totaling approximately $71.1 million , which is reflected in "Treasury shares (at cost)", in our accompanying condensed consolidated balance sheet. In May 2018, the Company purchased 219,102 shares under the share repurchase plan at an average price of approximately $ 44.87 per share totaling approximately $9.8 million and retired such shares, which is reflected within our retained earnings for the period ended September 30, 2018.
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. In each relevant period, the net income used in the basic and dilutive earnings per share calculations is the same.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Schedule of Earnings Per Share	The following table reconciles the weighted average basic number of common shares outstanding and the weighted average diluted number of common shares outstanding for the purpose of calculating basic and diluted earnings per share: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (In thousands) Weighted average common shares outstanding - basic 37,119 37,528 37,349 37,527 Dilutive effect of common stock options and awards — — — — Weighted average common shares outstanding - diluted 37,119 37,528 37,349 37,527
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	For the three and nine months ended September 30, 2018 , 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): Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (In thousands) Director stock awards 11 15 9 13 Stock options 181 328 196 333 Performance share units 126 212 90 207 Restricted stock awards 172 315 125 293

Revenue Recognition (Adoption_2

Revenue Recognition (Adoption of ASC 606) (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Revenue from Contract with Customer	Revenues from contracts with customers consisted of the following: Three months ended September 30, 2018 Western Hemisphere Eastern Hemisphere Asia-Pacific Intercompany Total (In thousands) Product Revenues $ 43,825 $ 17,834 $ 1,587 $ — $ 63,246 Service Revenues 10,169 4,364 3,008 — 17,541 Total $ 53,994 $ 22,198 $ 4,595 $ — $ 80,787 Nine months ended September 30, 2018 Western Hemisphere Eastern Hemisphere Asia-Pacific Intercompany Total (In thousands) Product Revenues $ 130,259 $ 52,238 $ 16,513 $ — $ 199,010 Service Revenues 29,173 15,485 8,345 — 53,003 Total $ 159,432 $ 67,723 $ 24,858 $ — $ 252,013
Schedule of Contract Asset and Liability	Balances related to contracts with customers consisted of the following: Contract Assets (amounts shown in thousands) Contract Assets at December 31, 2017 $ 41,825 Additions 44,110 Transfers to Accounts Receivable 10,180 Contract Assets at September 30, 2018 $ 75,755 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2017 $ 4,767 Additions 25,039 Revenue Recognized 23,018 Contract Liabilities at September 30, 2018 $ 6,788

Inventories, net (Tables)

Inventories, net (Tables)	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following: September 30, December 31, 2018 2017 (In thousands) Raw materials and supplies $ 59,505 $ 70,188 Work in progress 53,546 65,382 Finished goods 206,543 239,083 319,594 374,653 Less: allowance for obsolete and excess inventory (77,471 ) (83,566 ) Total inventory $ 242,123 $ 291,087

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in the carrying amount of goodwill by reporting unit during the nine months ended September 30, 2018 were as follows: Carrying Value Carrying Value December 31, 2017 Foreign Currency Translation September 30, 2018 (In thousands) Western Hemisphere $ 39,158 $ (93 ) $ 39,065 Eastern Hemisphere 8,466 (411 ) 8,055 Asia-Pacific — — — Total $ 47,624 $ (504 ) $ 47,120

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets	Intangible assets, substantially all of which were acquired in the acquisition of TIW and OPT, consist of the following: Estimated Useful Lives September 30, 2018 Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks indefinite $ 8,275 $ — $ (73 ) $ 8,202 Patents 15 - 30 years 5,950 (1,309 ) (32 ) 4,609 Customer relationships 5 - 15 years 25,889 (3,101 ) (136 ) 22,652 Non-compete agreements 3 years 171 (99 ) — 72 $ 40,285 $ (4,509 ) $ (241 ) $ 35,535 Estimated Useful Lives December 31, 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

Geographic Areas (Tables)

Geographic Areas (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Schedule of Segment Reporting	Three months ended September 30, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 (In thousands) Revenues Products Standard Products $ 34,101 $ 43,344 $ 12,918 $ 9,246 $ 1,587 $ 7,940 $ — $ — $ 48,606 $ 60,530 Percentage of Completion 9,724 — 4,916 7,954 — 7,401 — — 14,640 15,355 Total Products 43,825 43,344 17,834 17,200 1,587 15,341 — — 63,246 75,885 Services — Technical Advisory 7,305 6,732 3,612 3,931 2,889 1,701 — — 13,806 12,364 Reconditioning 2,864 2,008 752 844 119 19 — — 3,735 2,871 Total Services (excluding rental tools) 10,169 8,740 4,364 4,775 3,008 1,720 — — 17,541 15,235 Leasing 5,899 5,666 3,115 2,782 3,456 778 — — 12,470 9,226 Total Services (including rental tools) 16,068 14,406 7,479 7,557 6,464 2,498 — — 30,011 24,461 Intercompany 2,564 12,569 1,302 267 573 416 — — 4,439 13,252 Eliminations — — — — — — (4,439 ) (13,252 ) (4,439 ) (13,252 ) Total Revenues $ 62,457 $ 70,319 $ 26,615 $ 25,024 $ 8,624 $ 18,255 $ (4,439 ) $ (13,252 ) $ 93,257 $ 100,346 Depreciation and amortization $ 5,607 $ 6,827 $ 1,057 $ 1,073 $ 1,390 $ 1,015 $ 670 $ 603 $ 8,724 $ 9,518 Income (loss) before income taxes $ 13,902 $ (40,472 ) $ 8,133 $ (2,882 ) $ (301 ) $ (4,525 ) $ (34,120 ) $ (13,221 ) $ (12,386 ) $ (61,100 ) Nine months ended September 30, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 (In thousands) Revenues Products Standard Products $ 110,074 $ 162,656 $ 35,556 $ 29,919 $ 13,031 $ 26,298 $ — $ — $ 158,661 $ 218,873 Percentage of Completion 20,185 275 16,682 23,648 3,482 26,774 — — 40,349 50,697 Total Products 130,259 162,931 52,238 53,567 16,513 53,072 — — 199,010 269,570 Services Technical Advisory 20,835 21,709 12,785 11,135 7,021 5,340 — — 40,641 38,184 Reconditioning 8,338 5,985 2,700 1,392 1,324 204 — — 12,362 7,581 Total Services (excluding rental tools) 29,173 27,694 15,485 12,527 8,345 5,544 — — 53,003 45,765 Leasing 18,162 21,604 10,837 8,158 6,279 2,401 — — 35,278 32,163 Total Services (including rental tools) 47,335 49,298 26,322 20,685 14,624 7,945 — — 88,281 77,928 Intercompany 9,685 22,700 1,835 554 1,300 533 — — 12,820 23,787 Eliminations — — — — — — (12,820 ) (23,787 ) (12,820 ) (23,787 ) Total $ 187,279 $ 234,929 $ 80,395 $ 74,806 $ 32,437 $ 61,550 $ (12,820 ) $ (23,787 ) $ 287,291 $ 347,498 Depreciation and amortization $ 17,091 $ 24,153 $ 3,402 $ 3,228 $ 3,521 $ 3,046 $ 1,952 $ 1,804 $ 25,966 $ 32,231 Income (loss) before income taxes $ 12,999 $ (28,558 ) $ 13,792 $ 3,401 $ (45 ) $ 3,115 $ (45,238 ) $ (39,066 ) $ (18,492 ) $ (61,108 ) Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 (In thousands) Long-Lived Assets $ 466,703 $ 482,636 $ 256,779 $ 264,828 $ 66,466 $ 58,606 $ (394,640 ) $ (414,814 ) $ 395,309 $ 391,256 Total Assets $ 800,936 $ 877,779 $ 777,868 $ 752,967 $ 161,662 $ 185,229 $ (447,707 ) $ (416,170 ) $ 1,292,759 $ 1,399,805

Organization and Principles o_2

Organization and Principles of Consolidation (Details) $ in Millions	Jan. 06, 2017USD ($)	Sep. 30, 2018SegmentLocation
Organization and Principles of Consolidation [Line Items]
Number of geographic segments | Segment		3
Number of headquarter locations | Location		3
Technology Alliance Inc.
Organization and Principles of Consolidation [Line Items]
Consideration transferred in acquisition | $	$ 20

Significant Accounting Polici_4

Significant Accounting Policies - Narrative (Details)	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2018USD ($)$ / sharesshares	Sep. 30, 2018USD ($)Project$ / sharesshares	Sep. 30, 2017Project	Sep. 30, 2018USD ($)ProjectSource	Sep. 30, 2017Project	Dec. 31, 2017USD ($)	Jul. 26, 2016USD ($)
Restructuring Cost and Reserve [Line Items]
Number of product revenue sources | Source				2
Unbilled receivables		$ 47,300,000		$ 47,300,000		$ 41,000,000
Number of projects | Project		8	7	14	8
Percentage of total revenues		15.70%	15.00%	14.00%	15.00%
Percentage of product revenues		23.10%	20.00%	20.30%	19.00%
Number of service revenue sources | Source				2
Restructuring and other charges		$ 3,700,000		$ 3,700,000
Average price of shares (in dollars per share) | $ / shares	$ 44.87	$ 50.95
Treasury shares (at cost)		$ 71,107,000		$ 71,107,000		$ 0
Common Stock
Restructuring Cost and Reserve [Line Items]
Shares authorized to be purchased (up to) (in shares)							$ 100,000,000
Treasury shares purchased (in shares) | shares		1,395,521
Treasury stock, value of acquired shares		$ 71,100,000
Stock repurchased and retired during period (in shares) | shares	219,102
Stock repurchased and retired during period	$ 9,800,000

Significant Accounting Polici_5

Significant Accounting Policies - Schedule of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Accounting Policies [Abstract]
Weighted average common shares outstanding—basic (in shares)	37,119	37,528	37,349	37,527
Dilutive effect of common stock options and awards (in shares)	0	0	0	0
Weighted average common shares outstanding—diluted (in shares)	37,119	37,528	37,349	37,527

Significant Accounting Polici_6

Significant Accounting Policies - Schedule of Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Director stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	11	15	9	13
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	181	328	196	333
Performance share units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	126	212	90	207
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	172	315	125	293

New Accounting Standards (Detai

New Accounting Standards (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings	$ 1,371,368	$ 1,371,368		$ 1,400,296
Revenue from contract with customer	80,787	252,013
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings			$ 1,800
Revenue from contract with customer	$ 100	$ 2,400

Revenue Recognition (Adoption_3

Revenue Recognition (Adoption of ASC 606) - Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 80,787	$ 252,013
Products
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	63,246	199,010
Services
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	17,541	53,003
Intercompany
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	0	0
Intercompany | Products
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	0	0
Intercompany | Services
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	0	0
Western Hemisphere | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	53,994	159,432
Western Hemisphere | Operating Segments | Products
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	43,825	130,259
Western Hemisphere | Operating Segments | Services
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	10,169	29,173
Eastern Hemisphere | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	22,198	67,723
Eastern Hemisphere | Operating Segments | Products
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	17,834	52,238
Eastern Hemisphere | Operating Segments | Services
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	4,364	15,485
Asia-Pacific | Operating Segments
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	4,595	24,858
Asia-Pacific | Operating Segments | Products
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	1,587	16,513
Asia-Pacific | Operating Segments | Services
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 3,008	$ 8,345

Revenue Recognition (Adoption_4

Revenue Recognition (Adoption of ASC 606) - Contract Asset and Liability (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Change in Contract with Customer, Asset [Abstract]
Contract Assets at December 31, 2017	$ 41,825
Additions	44,110
Transfers to Accounts Receivable	10,180
Contract Assets at September 30, 2018	75,755
Change in Contract with Customer, Liability [Abstract]
Contract Liabilities at December 31, 2017	4,767
Additions	25,039
Revenue Recognized	23,018
Contract Liabilities at September 30, 2018	$ 6,788

Revenue Recognition (Adoption_5

Revenue Recognition (Adoption of ASC 606) - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2017
Revenue from Contract with Customer [Abstract]
Accounts receivable	$ 98.3	$ 98.3	$ 136.5
Performance obligation satisfied in previous period	3.9	15.7
Performance obligation	$ 33.8	$ 33.8
Transferred over Time | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation percentage	85.00%	85.00%
Expected timing of satisfaction period	12 months	12 months
Transferred over Time | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation percentage	15.00%	15.00%
Expected timing of satisfaction period	24 months	24 months

Stock-Based Compensation and _2

Stock-Based Compensation and Stock Awards (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized expense	$ 0	$ 0	$ 0	$ 0
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 2,400,000	$ 3,700,000	$ 10,000,000	$ 10,500,000

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 59,505	$ 70,188
Work in progress	53,546	65,382
Finished goods	206,543	239,083
Inventory, gross, total	319,594	374,653
Less: allowance for obsolete and excess inventory	(77,471)	(83,566)
Total inventory	$ 242,123	$ 291,087

Goodwill (Details)

Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Goodwill [Roll Forward]
Goodwill, Beginning balance	$ 47,624
Foreign Currency Translation	(504)
Goodwill, Ending balance	47,120
Western Hemisphere
Goodwill [Roll Forward]
Goodwill, Beginning balance	39,158
Foreign Currency Translation	(93)
Goodwill, Ending balance	39,065
Eastern Hemisphere
Goodwill [Roll Forward]
Goodwill, Beginning balance	8,466
Foreign Currency Translation	(411)
Goodwill, Ending balance	8,055
Asia-Pacific
Goodwill [Roll Forward]
Goodwill, Beginning balance	0
Foreign Currency Translation	0
Goodwill, Ending balance	$ 0

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Indefinite-lived Intangible Assets:
Gross Book Value	$ 8,275		$ 8,275		$ 8,416
Foreign Currency Translation	(73)		(73)		56
Net Book Value	8,202		8,202		8,472
Finite-Lived Intangible Assets:
Accumulated Amortization	(4,509)		(4,509)		(2,700)
Intangible Assets:
Gross Book Value	40,285		40,285		41,036
Accumulated Amortization	(4,509)		(4,509)		(2,700)
Foreign Currency Translation	(241)		(241)		72
Net Book Value	35,535		35,535		38,408
Amortization of intangible assets	600	$ 600	1,700	$ 1,800
Patents
Finite-Lived Intangible Assets:
Gross Book Value	5,950		5,950		5,946
Accumulated Amortization	(1,309)		(1,309)		(968)
Foreign Currency Translation	(32)		(32)		80
Net Book Value	4,609		4,609		5,058
Intangible Assets:
Accumulated Amortization	(1,309)		$ (1,309)		$ (968)
Patents | Minimum
Intangible Assets:
Estimated Useful Lives			15 years		15 years
Patents | Maximum
Intangible Assets:
Estimated Useful Lives			30 years		30 years
Customer relationships
Finite-Lived Intangible Assets:
Gross Book Value	25,889		$ 25,889		$ 26,503
Accumulated Amortization	(3,101)		(3,101)		(1,675)
Foreign Currency Translation	(136)		(136)		(64)
Net Book Value	22,652		22,652		24,764
Intangible Assets:
Accumulated Amortization	(3,101)		$ (3,101)		$ (1,675)
Customer relationships | Minimum
Intangible Assets:
Estimated Useful Lives			5 years		5 years
Customer relationships | Maximum
Intangible Assets:
Estimated Useful Lives			15 years		15 years
Non-compete agreements
Finite-Lived Intangible Assets:
Gross Book Value	171		$ 171		$ 171
Accumulated Amortization	(99)		(99)		(57)
Foreign Currency Translation	0		0		0
Net Book Value	72		72		114
Intangible Assets:
Accumulated Amortization	$ (99)		$ (99)		$ (57)
Estimated Useful Lives			3 years		3 years

Gain on Sale of Assets (Details

Gain on Sale of Assets (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of assets	$ (14)		$ 9	$ (5,113)	$ (79)
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of assets		$ (5,100)

Impairments and Other Charges (

Impairments and Other Charges (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment charges related to inventory		$ 33,600,000
Impairment charges related to fixed assets				$ 27,400,000
Impairment and other charges	$ 0	$ 60,968,000	$ 0	$ 60,968,000

Asset Backed Loan (ABL) Credi_2

Asset Backed Loan (ABL) Credit Facility (Details) - ABL Credit Facility - Revolving Credit Facility	Feb. 23, 2018USD ($)	Sep. 30, 2018USD ($)
Debt Instrument [Line Items]
Debt instrument, term	5 years
Total commitments	$ 100,000,000
Amount available for letters of credit (up to)	$ 10,000,000
Fixed charges ratio		1
Available borrowing capacity		$ 56,000,000
Letters of credit outstanding		$ 300,000
Minimum
Debt Instrument [Line Items]
Commitment fee percentage	0.25%
Minimum | CB Floating Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Minimum | Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Maximum
Debt Instrument [Line Items]
Commitment fee percentage	0.375%
Maximum | CB Floating Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Maximum | Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%

Geographic Areas - Schedule of

Geographic Areas - Schedule of Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Revenues	$ 93,257	$ 100,346	$ 287,291	$ 347,498
Depreciation and amortization	8,724	9,518	25,966	32,231
Income (loss) before income taxes	(12,386)	(61,100)	(18,492)	(61,108)
Long-Lived Assets	395,309		395,309		$ 391,256
Total Assets	1,292,759		1,292,759		1,399,805
Products
Segment Reporting Information [Line Items]
Revenues	63,246	75,885	199,010	269,570
Total Services (including rental tools)
Segment Reporting Information [Line Items]
Revenues	30,011	24,461	88,281	77,928
Western Hemisphere
Segment Reporting Information [Line Items]
Revenues	62,457	70,319	187,279	234,929
Eastern Hemisphere
Segment Reporting Information [Line Items]
Revenues	26,615	25,024	80,395	74,806
Asia-Pacific
Segment Reporting Information [Line Items]
Revenues	8,624	18,255	32,437	61,550
Operating Segments | Products
Segment Reporting Information [Line Items]
Revenues	63,246	75,885	199,010	269,570
Operating Segments | Technical Advisory
Segment Reporting Information [Line Items]
Revenues	13,806	12,364	40,641	38,184
Operating Segments | Reconditioning
Segment Reporting Information [Line Items]
Revenues	3,735	2,871	12,362	7,581
Operating Segments | Total Services (excluding rental tools)
Segment Reporting Information [Line Items]
Revenues	17,541	15,235	53,003	45,765
Operating Segments | Leasing
Segment Reporting Information [Line Items]
Revenues	12,470	9,226	35,278	32,163
Operating Segments | Total Services (including rental tools)
Segment Reporting Information [Line Items]
Revenues	30,011	24,461	88,281	77,928
Operating Segments | Standard Products | Products
Segment Reporting Information [Line Items]
Revenues	48,606	60,530	158,661	218,873
Operating Segments | Percentage of Completion | Products
Segment Reporting Information [Line Items]
Revenues	14,640	15,355	40,349	50,697
Operating Segments | Western Hemisphere
Segment Reporting Information [Line Items]
Depreciation and amortization	5,607	6,827	17,091	24,153
Income (loss) before income taxes	13,902	(40,472)	12,999	(28,558)
Long-Lived Assets	466,703		466,703		482,636
Total Assets	800,936		800,936		877,779
Operating Segments | Western Hemisphere | Products
Segment Reporting Information [Line Items]
Revenues	43,825	43,344	130,259	162,931
Operating Segments | Western Hemisphere | Technical Advisory
Segment Reporting Information [Line Items]
Revenues	7,305	6,732	20,835	21,709
Operating Segments | Western Hemisphere | Reconditioning
Segment Reporting Information [Line Items]
Revenues	2,864	2,008	8,338	5,985
Operating Segments | Western Hemisphere | Total Services (excluding rental tools)
Segment Reporting Information [Line Items]
Revenues	10,169	8,740	29,173	27,694
Operating Segments | Western Hemisphere | Leasing
Segment Reporting Information [Line Items]
Revenues	5,899	5,666	18,162	21,604
Operating Segments | Western Hemisphere | Total Services (including rental tools)
Segment Reporting Information [Line Items]
Revenues	16,068	14,406	47,335	49,298
Operating Segments | Western Hemisphere | Standard Products | Products
Segment Reporting Information [Line Items]
Revenues	34,101	43,344	110,074	162,656
Operating Segments | Western Hemisphere | Percentage of Completion | Products
Segment Reporting Information [Line Items]
Revenues	9,724	0	20,185	275
Operating Segments | Eastern Hemisphere
Segment Reporting Information [Line Items]
Depreciation and amortization	1,057	1,073	3,402	3,228
Income (loss) before income taxes	8,133	(2,882)	13,792	3,401
Long-Lived Assets	256,779		256,779		264,828
Total Assets	777,868		777,868		752,967
Operating Segments | Eastern Hemisphere | Products
Segment Reporting Information [Line Items]
Revenues	17,834	17,200	52,238	53,567
Operating Segments | Eastern Hemisphere | Technical Advisory
Segment Reporting Information [Line Items]
Revenues	3,612	3,931	12,785	11,135
Operating Segments | Eastern Hemisphere | Reconditioning
Segment Reporting Information [Line Items]
Revenues	752	844	2,700	1,392
Operating Segments | Eastern Hemisphere | Total Services (excluding rental tools)
Segment Reporting Information [Line Items]
Revenues	4,364	4,775	15,485	12,527
Operating Segments | Eastern Hemisphere | Leasing
Segment Reporting Information [Line Items]
Revenues	3,115	2,782	10,837	8,158
Operating Segments | Eastern Hemisphere | Total Services (including rental tools)
Segment Reporting Information [Line Items]
Revenues	7,479	7,557	26,322	20,685
Operating Segments | Eastern Hemisphere | Standard Products | Products
Segment Reporting Information [Line Items]
Revenues	12,918	9,246	35,556	29,919
Operating Segments | Eastern Hemisphere | Percentage of Completion | Products
Segment Reporting Information [Line Items]
Revenues	4,916	7,954	16,682	23,648
Operating Segments | Asia-Pacific
Segment Reporting Information [Line Items]
Depreciation and amortization	1,390	1,015	3,521	3,046
Income (loss) before income taxes	(301)	(4,525)	(45)	3,115
Long-Lived Assets	66,466		66,466		58,606
Total Assets	161,662		161,662		185,229
Operating Segments | Asia-Pacific | Products
Segment Reporting Information [Line Items]
Revenues	1,587	15,341	16,513	53,072
Operating Segments | Asia-Pacific | Technical Advisory
Segment Reporting Information [Line Items]
Revenues	2,889	1,701	7,021	5,340
Operating Segments | Asia-Pacific | Reconditioning
Segment Reporting Information [Line Items]
Revenues	119	19	1,324	204
Operating Segments | Asia-Pacific | Total Services (excluding rental tools)
Segment Reporting Information [Line Items]
Revenues	3,008	1,720	8,345	5,544
Operating Segments | Asia-Pacific | Leasing
Segment Reporting Information [Line Items]
Revenues	3,456	778	6,279	2,401
Operating Segments | Asia-Pacific | Total Services (including rental tools)
Segment Reporting Information [Line Items]
Revenues	6,464	2,498	14,624	7,945
Operating Segments | Asia-Pacific | Standard Products | Products
Segment Reporting Information [Line Items]
Revenues	1,587	7,940	13,031	26,298
Operating Segments | Asia-Pacific | Percentage of Completion | Products
Segment Reporting Information [Line Items]
Revenues	0	7,401	3,482	26,774
Intercompany
Segment Reporting Information [Line Items]
Revenues	4,439	13,252	12,820	23,787
Intercompany | Western Hemisphere
Segment Reporting Information [Line Items]
Revenues	2,564	12,569	9,685	22,700
Intercompany | Eastern Hemisphere
Segment Reporting Information [Line Items]
Revenues	1,302	267	1,835	554
Intercompany | Asia-Pacific
Segment Reporting Information [Line Items]
Revenues	573	416	1,300	533
Eliminations
Segment Reporting Information [Line Items]
Revenues	(4,439)	(13,252)	(12,820)	(23,787)
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Depreciation and amortization	670	603	1,952	1,804
Income (loss) before income taxes	(34,120)	$ (13,221)	(45,238)	$ (39,066)
Long-Lived Assets	(394,640)		(394,640)		(414,814)
Total Assets	$ (447,707)		$ (447,707)		$ (416,170)

Geographic Areas - Narrative (D

Geographic Areas - Narrative (Details)	9 Months Ended
	Sep. 30, 2018SegmentLocation
Segment Reporting [Abstract]
Number of geographic segments | Segment	3
Number of headquarter locations | Location	3

Income Tax (Details)

Income Tax (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Effective tax rate, percent	16.40%	52.00%	(12.40%)	52.20%
Reclassification from current to non-current income tax payable			$ 28

Commitments and Contingencies (

Commitments and Contingencies (Details) - Brazil $ in Millions	2 Months Ended
	Jan. 31, 2011USD ($)Assessment	Dec. 31, 2016USD ($)	Dec. 31, 2014USD ($)
Commitments And Contingencies [Line Items]
Number of additional assessments | Assessment	2
Value of assessments served on Brazilian subsidiary	$ 13
Court deposit		$ 8.8	$ 8.8

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event $ in Millions	Oct. 18, 2018USD ($)production_system
Subsequent Event [Line Items]
Number of subsea production systems (up to) | production_system	30
Percentage of vendor financing (up to)	30.00%
Portion of Frame Agreement
Subsequent Event [Line Items]
Estimated value of subsea production systems | $	$ 207