Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 25, 2019 | Jun. 29, 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-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 36,387,703 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,909.5 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Revenues from products and services | $ 337,466 | ||
Leasing | 47,160 | $ 42,392 | $ 41,625 |
Total revenues | 384,626 | 455,469 | 538,731 |
Cost of sales: | |||
Total cost of sales | 271,499 | 305,394 | 328,404 |
Selling, general and administrative | 104,039 | 116,251 | 53,246 |
Engineering and product development | 39,422 | 42,160 | 44,325 |
Impairment, restructuring and other charges | 98,602 | 60,968 | 0 |
Gain on sale of assets | (6,198) | (168) | (103) |
Total costs and expenses | 507,364 | 524,605 | 425,872 |
Operating income (loss) | (122,738) | (69,136) | 112,859 |
Interest income | 8,040 | 3,564 | 3,037 |
Interest expense | (291) | (72) | (28) |
Income (loss) before income taxes | (114,989) | (65,644) | 115,868 |
Income tax provision (benefit) | (19,294) | 34,995 | 22,647 |
Net income (loss) | $ (95,695) | $ (100,639) | $ 93,221 |
Earnings (loss) per common share: | |||
Basic (in dollars per share) | $ (2.58) | $ (2.69) | $ 2.48 |
Diluted (in dollars per share) | $ (2.58) | $ (2.69) | $ 2.47 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 37,075 | 37,457 | 37,537 |
Diluted (in shares) | 37,075 | 37,457 | 37,667 |
Products | |||
Revenues: | |||
Revenues from products and services | $ 265,052 | $ 351,132 | $ 433,012 |
Cost of sales: | |||
Total cost of sales | 200,494 | 246,005 | 268,405 |
Services | |||
Revenues: | |||
Revenues from products and services | 72,414 | 61,945 | 64,094 |
Cost of sales: | |||
Total cost of sales | 62,109 | 53,303 | 52,611 |
Leasing | |||
Cost of sales: | |||
Total cost of sales | $ 8,896 | $ 6,086 | $ 7,388 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income (loss) | $ (74,912) | $ (10,358) | $ (3,042) | $ (7,383) | $ (71,488) | $ (29,260) | $ 15 | $ 94 | $ (95,695) | $ (100,639) | $ 93,221 |
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | (18,823) | 24,117 | (49,141) | ||||||||
Total comprehensive income (loss) | $ (114,518) | $ (76,522) | $ 44,080 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 418,100 | $ 493,180 |
Trade receivables, net | 202,165 | 191,629 |
Inventories, net | 191,194 | 291,087 |
Prepaids and other current assets | 41,522 | 32,653 |
Total current assets | 852,981 | 1,008,549 |
Property, plant and equipment, net | 274,123 | 284,247 |
Deferred income taxes | 7,995 | 5,364 |
Goodwill | 7,714 | 47,624 |
Intangible assets | 34,974 | 38,408 |
Other assets | 14,723 | 15,613 |
Total assets | 1,192,510 | 1,399,805 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 26,693 | 33,480 |
Accrued income taxes | 3,138 | 24,714 |
Customer prepayments | 9,648 | 4,767 |
Accrued compensation | 10,537 | 11,412 |
Other accrued liabilities | 32,242 | 25,538 |
Total current liabilities | 82,258 | 99,911 |
Deferred income taxes | 2,466 | 3,432 |
Income tax payable | 9,623 | 0 |
Other long-term liabilities | 2,001 | 2,001 |
Total liabilities | 96,348 | 105,344 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity: | ||
Preferred stock: 10,000,000 shares authorized at $0.01 par value (none issued) | 0 | 0 |
Common stock: | ||
100,000,000 shares authorized at $0.01 par value at December 31, 2018 and 2017, 36,264,001 and 38,132,693 issued and outstanding at December 31, 2018 and 2017 | 376 | 372 |
Additional paid-in capital | 34,953 | 20,083 |
Retained earnings | 1,205,946 | 1,400,296 |
Accumulated other comprehensive losses | (145,113) | (126,290) |
Total stockholders' equity | 1,096,162 | 1,294,461 |
Total liabilities and stockholders' equity | $ 1,192,510 | $ 1,399,805 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
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) | 36,264,001 | 38,132,693 |
Common stock, shares outstanding (in shares) | 36,264,001 | 38,132,693 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income (loss) | $ (95,695) | $ (100,639) | $ 93,221 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 35,312 | 40,974 | 31,857 |
Stock-based compensation expense | 13,459 | 14,270 | 12,217 |
Impairment and other non-cash charges | 98,602 | 60,968 | 0 |
Loss (gain) on sale of equipment | (6,198) | (168) | (103) |
Deferred income taxes | (4,091) | 17,231 | (3,400) |
Changes in operating assets and liabilities: | |||
Trade receivables, net | (11,855) | 26,112 | 106,544 |
Inventories, net | 49,926 | 37,642 | 7,873 |
Prepaids and other assets | (15,084) | 10,107 | 9,816 |
Excess tax benefits of stock options and awards | 0 | 0 | (135) |
Accounts payable and accrued expenses | (18,755) | 1,765 | (11,368) |
Other, net | (118) | (269) | 0 |
Net cash provided by operating activities | 45,503 | 107,993 | 246,522 |
Investing activities | |||
Purchase of property, plant and equipment | (32,061) | (27,622) | (25,763) |
Proceeds from sale of equipment | 16,888 | 3,170 | 357 |
Acquisition of business, net of cash acquired | 0 | (20,440) | (132,443) |
Net cash used in investing activities | (15,173) | (44,892) | (157,849) |
Financing activities | |||
Proceeds from exercise of stock options | 1,616 | 560 | 2,206 |
Excess tax benefits of stock options and awards | 0 | 0 | 135 |
ABL Credit Facility issuance costs | (815) | 0 | 0 |
Repurchase of common shares | (100,000) | 0 | (24,234) |
Net cash used in financing activities | (99,199) | 560 | (21,893) |
Effect of exchange rate changes on cash activities | (6,211) | 6,022 | (24,619) |
Increase (decrease) in cash and cash equivalents | (75,080) | 69,683 | 42,161 |
Cash and cash equivalents at beginning of year | 493,180 | 423,497 | 381,336 |
Cash and cash equivalents at end of year | $ 418,100 | $ 493,180 | $ 423,497 |
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, 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 (loss) | 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) | (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 | 24,117 | |||
Net income (loss) | (100,639) | (100,639) | |||
Comprehensive income (loss) | (76,522) | ||||
Options exercised and awards vested | 560 | 560 | |||
Stock option expense | 14,270 | 14,270 | |||
Other | (271) | (3) | (215) | (53) | |
Ending Balance at Dec. 31, 2017 | 1,294,461 | 372 | 20,083 | 1,400,296 | (126,290) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (18,823) | (18,823) | |||
Net income (loss) | (95,695) | (95,695) | |||
Comprehensive income (loss) | (114,518) | ||||
Options exercised and awards vested | 1,616 | 25 | 1,591 | ||
Stock option expense | 13,459 | 13,459 | |||
Repurchase of common stock | (100,000) | (20) | (99,980) | ||
Other | (539) | (1) | (180) | (358) | |
Ending Balance at Dec. 31, 2018 | $ 1,096,162 | $ 376 | $ 34,953 | $ 1,205,946 | $ (145,113) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Options exercised and awards vested in shares (in shares) | 261,055 | 208,163 | 163,547 |
Treasury stock shares (in shares) | 1,991,206 | 401,000 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2018 | |
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) and Honing, Inc., both located in Houston, Texas; DQ Holdings Pty. Ltd., located in Perth, Australia; Dril-Quip Cross (Ghana) Ltd., located in Takoradi, Ghana; PT DQ Oilfield Services Indonesia, located in Jakarta, Indonesia; Dril-Quip (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; Dril-Quip Qatar LLC, located in Doha, Qatar; Dril-Quip TIW 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. 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, 2018 | |
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 net realizable value. Company manufactured inventory is valued principally using standard costs, which are calculated based upon direct costs incurred and overhead allocations and approximate actual costs. Inventory purchased from third-party vendors is principally valued at the weighted average cost. Periodically, obsolescence reviews are performed on slow-moving inventories and reserves are established based on current assessments about future demands and market conditions. Inventory Reserves. Periodically, obsolescence reviews are performed on slow-moving inventories and reserves are established based on current assessments about future demands and market conditions. The Company determines the reserve percentages based on an analysis of stocking levels, historical sales levels and future sales forecasts anticipated for inventory items by product type. The inventory values have been reduced by a reserve for excess and slow-moving inventories of $108.6 million and $83.6 million as of December 31, 2018 and 2017 , respectively. If market conditions are less favorable than those projected by management, additional inventory reserves may be required. Property, Plant and Equipment Property, plant and equipment are carried at cost, with depreciation provided on a straight-line basis over their estimated useful lives. We capitalize costs incurred to enhance, improve and extend the useful lives of our property and equipment and expense costs incurred to repair and maintain the existing condition of our assets. Goodwill and indefinite-lived intangible assets. For goodwill and intangible assets with indefinite lives, an assessment for impairment is performed annually or when there is an indication an impairment may have occurred. We complete our annual impairment test for goodwill and other indefinite-lived intangibles using an assessment date of October 1. Goodwill is reviewed for impairment by comparing the carrying value of each of our reporting unit’s net assets, including allocated goodwill, to the estimated fair value of the reporting unit. We determine the fair value of our reporting units using a discounted cash flow approach. We selected this valuation approach because we believe it, combined with our best judgment regarding underlying assumptions and estimates, provides the best estimate of fair value for each of our reporting units. Determining the fair value of a reporting unit requires the use of estimates and assumptions. Such estimates and assumptions include revenue growth rates, future operating margins, the weighted average cost of capital ("discount rates"), a terminal growth value, and future market conditions, among others. We believe that the estimates and assumptions used in our impairment assessments are reasonable. If the reporting unit’s carrying value is greater than its calculated fair value, we recognize a goodwill impairment charge for the amount by which the carrying value of goodwill exceeds its fair value. 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 net realizable value. Restructuring costs and other charges As a result of unfavorable market conditions, combined with the impact of decreased capital expenditure budgets within the industry driven by sustained low oil prices, we announced a cost reduction plan primarily focused on workforce reductions and the reorganization of certain facilities in the second quarter of 2018. We incurred restructuring and other charges associated with the cost reduction plan of $60.0 million during the year ended December 31, 2018. Costs incurred for employee termination benefits during the year ended December 31, 2018 were $7.3 million . Additionally, we incurred non-cash inventory and long-lived asset write-downs of approximately $32.1 million and $14.9 million , respectively, as a result of expected changes in our business structure and where specific products are manufactured. Remaining costs incurred of approximately $5.7 million related to professional fees for consulting services for the strategic planning and implementation efforts. These charges are reflected as "Impairment, restructuring and other charges" in our consolidated statement of operations. We did no t incur restructuring charges during the years ended December 31, 2017 and 2016. Additionally, in connection with our preparation and review of the financial statements for the year ended December 31, 2018, we recorded an impairment charge of $38.6 million for the fourth quarter of 2018 as a result of our updated assessment of current market conditions and restructuring efforts. For further information, see Note 9 , Goodwill . Income Taxes The Company accounts for income taxes using the asset and liability method. Current income taxes are provided on income reported for financial statement purposes, adjusted for transactions that do not enter into the computation of income taxes payable in the same year. Deferred tax assets and liabilities are measured using enacted tax rates for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred income tax assets to the amounts that are expected more likely than not to be realized in the future. The Company classifies interest and penalties related to uncertain tax positions as income taxes in its financial statements. Revenue Recognition Product revenues The Company recognizes product revenues from two methods: • product revenues are recognized over time as control is transferred to the customer; and • product revenues from the sale of products that do not qualify for the over time method are recognized as point in time. Revenues recognized under the over time method The Company uses the over time method on long-term project contracts that have the following characteristics: • the contracts call for products which are designed to customer specifications; • the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration; • the contracts contain specific terms as to milestones, progress billings and delivery dates; • product requirements cannot be filled directly from the Company’s standard inventory; and • The Company has an enforceable right to payment for any work completed to date and the enforceable payment includes a reasonable profit margin. For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percentage complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs to be recognized. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. Under the over time method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported in trade receivables. Unbilled revenues are expected to be billed and collected within one year. At December 31, 2018 and 2017 , receivables included $57.0 million and $41.0 million of unbilled receivables, respectively. For the year ended December 31, 2018 , there were 22 projects representing approximately 16% of the Company’s total revenues and approximately 23% of its product revenues, and eight projects during 2017 representing approximately 13% of the Company’s total revenues and approximately 16% of its product revenues, which were accounted for using over time method of accounting. Revenues recognized under the point in time method Revenues from the sale of standard inventory products, not accounted for under the over time method, are recorded at the point in time that the customer obtains control of the promised asset and the Company satisfies its performance obligation. This point in time recognition aligns with 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 leasing 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. 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 $(0.8) million , $12.7 million and $(25.6) million during the year ended December 31, 2018 , 2017 and 2016 , 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, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02 “Leases (Topic 842)” to increase transparency and comparability among organizations by requiring (1) recognition of lease assets and lease liabilities on the balance sheet and (2) disclosure of key information about leasing arrangements. Topic 842 is effective for fiscal years and interim periods beginning after December 15, 2018. A modified retrospective approach is required for adoption for all leases that exist at or commence after the date of initial application with an option to use certain practical expedients. We expect to use the package of practical expedients that allows us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We additionally expect to use the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component. We will adopt this guidance at the adoption date of January 1, 2019, using the transition method that allows us to initially apply Topic 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We do not expect to recognize a material adjustment to retained earnings upon adoption. We are additionally assessing the impact of Topic 842 on our internal controls over financial reporting. We determine if an arrangement is a lease at inception. We lease certain offices, shop and warehouse facilities, automobiles and equipment under both operating and capital lease arrangements. Capital leases are expected to be accounted for as finance leases upon adoption of Topic 842, and we do not expect any significant changes to the accounting for such leases upon adoption. Under Topic 842, operating leases result in the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments. Under Topic 842, operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, upon adoption of Topic 842, we will use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments. The operating lease ROU assets will also include any lease payments made and exclude lease incentives. Our lease terms may include options to extend or terminate the lease that we are reasonably certain to exercise. Lease expense under Topic 842 will be recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, and we expect to account for the lease and non-lease components as a single lease component under Topic 842. The adoption of Topic 842 will have an estimated $7.1 million impact on our consolidated balance sheet based on our current portfolio of leases due to the recognition of the ROU assets and lease liabilities. The adoption of Topic 842 is not expected to have a material impact on our consolidated income statement or our consolidated cash flow statement. Because of the transition method we will use to adopt Topic 842, Topic 842 will not be applied to periods prior to adoption and the adoption of Topic 842 will have no impact on our previously reported results. The future minimum lease payments for our operating leases as of December 31, 2018 are discussed in Note 15 to the consolidated financial statements. The undiscounted total of such payments was $9.4 million . Upon adoption of Topic 842, we expect to recognize operating lease ROU assets and lease liabilities that reflect the present value of these future payments. After the adoption of Topic 842, we will first report the operating lease ROU assets and lease liabilities as of March 31, 2019 based on our lease portfolio as of that date. The components of our historic lease expense and the future lease payments are discussed in Note 13 to the consolidated financial statements. The capital leases addressed in Note 14 are expected to be accounted for as finance leases upon adoption of Topic 842, and we do not expect any significant changes to the accounting for such leases upon adoption. 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 $1.7 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 a decrease of approximately $1.6 million in our results from operations for the year ended December 31, 2018 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. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
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 with the intention 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. 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. 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. Other long-term liabilities consist of contingent consideration related to the OPT acquisition in the amount of $2.0 million . |
Revenue Recognition (Adoption o
Revenue Recognition (Adoption of ASC 606) | 12 Months Ended |
Dec. 31, 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: Twelve months ended December 31, 2018 Western Hemisphere Eastern Hemisphere Asia-Pacific Intercompany Total (In thousands) Product Revenues $ 170,282 $ 71,719 $ 23,051 $ — $ 265,052 Service Revenues 40,958 19,687 11,769 — 72,414 Total $ 211,240 $ 91,406 $ 34,820 $ — $ 337,466 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 63,379 Transfers to Accounts Receivable (22,016 ) Contract Assets at December 31, 2018 $ 83,188 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2017 $ 4,767 Additions 114,236 Revenue Recognized (109,355 ) Contract Liabilities at December 31, 2018 $ 9,648 Receivables, which are included in trade receivables, net, were $190.3 million and $136.5 million for the year s ended December 31, 2018 and 2017 , respectively. The amount of revenues from performance obligations satisfied (or partially satisfied) in previous periods was $12.1 million for the year ended December 31, 2018 . The contract liabilities primarily relate to advance payments from customers and are included in "Customer prepayments" in our accompanying 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 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 December 31, 2018 . Remaining Performance Obligations The aggregate amount of the transaction price allocated to remaining performance obligations from our over time product lines was $42.0 million as of December 31, 2018 . The Company expects to recognize revenue on approximately 98% and 2% 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. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories consist of the following: December 31, 2018 2017 (In thousands) Raw materials and supplies $ 55,878 $ 70,188 Work in progress 51,251 65,382 Finished goods 192,632 239,083 299,761 374,653 Less: allowance for obsolete and excess inventory (108,567 ) (83,566 ) Total inventory $ 191,194 $ 291,087 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 (In thousands) Land improvements 10-25 years $ 7,774 $ 7,485 Buildings 15-40 years 212,501 183,437 Machinery, equipment and other 3-10 years 375,240 361,959 595,515 552,881 Less accumulated depreciation (349,701 ) (315,091 ) 245,814 237,790 Land 12,524 13,464 Construction work in process 15,785 32,993 Total property, plant and equipment $ 274,123 $ 284,247 Depreciation expense totaled $32.8 million, $ 38.6 million and $ 31.6 million for 2018 , 2017 and 2016 , respectively. |
Impairment, Restructuring and O
Impairment, Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment, Restructuring and Other Charges | Impairment, Restructuring and Other Charges Restructuring Charges As a result of unfavorable market conditions, including lower commodity prices, the decline in expected offshore rig counts, decreases in our customers’ capital budgets and potential delays associated with certain of our long term projects, as well as the decline in our stock price in December 2018 which resulted in our market capitalization decreasing to below the carrying value of our assets, we announced a cost reduction plan primarily focused on workforce reductions and the reorganization of certain facilities in the second quarter of 2018. In conjunction with the strategic review, the Company adjusted its forecast for recovery to reflect a more delayed recovery in the offshore industry, with pre-downturn demand not returning until after 2025. We incurred restructuring and other charges associated with the cost reduction plan of $60.0 million during the year ended December 31, 2018. Costs incurred for employee termination benefits during the year ended December 31, 2018 were $7.3 million . Additionally, we incurred non-cash inventory and long-lived asset write-downs of approximately $32.1 million and $14.9 million , respectively, as a result of changes in our business structure and where specific products are manufactured. Remaining costs incurred of approximately $5.7 million related to professional fees for consulting services for the strategic planning and implementation efforts. These charges are reflected as "Impairment, restructuring and other charges" in our consolidated statement of operations. We did not incur restructuring charges during the years ended December 31, 2017 and 2016. The following table summarizes the components of charges included in "Impairment, restructuring and other charges" in our consolidated statement of operations for the year ended December 31, 2018 (in thousands): Year Ended December 31, 2018 Inventory impairment $ 32,070 Long-lived asset impairment 14,902 Severance 7,324 Professional service fees 5,300 Exit costs 447 Total restructuring and other charges $ 60,043 The following table summarizes the changes to our accrued liability balance related to restructuring and other charges for the year ended December 31, 2018 (in thousands): December 31, 2018 Balance at January 1, 2018 $ — Additions for costs expensed 12,624 Reductions for payments (5,626 ) Ending balance at December 31, 2018 $ 6,998 Goodwill In connection with our preparation and review of financial statements for the year ended December 31, 2018, we recorded an impairment charge of $38.6 million for the fourth quarter of 2018 as a result of our updated assessment of current market conditions and restructuring efforts. For further information, see Note 9 , Goodwill . 2017 Impairment of Inventory and Long-lived Assets In connection with our preparation and review of financial statements for the year ended December 31, 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 the fair values of such assets 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 were recorded for the year ended December 31, 2016. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill There was no impairment of goodwill during the years ended December 31, 2017 and 2016. The changes in the carrying amount of goodwill by reporting unit during the year ended December 31, 2018 were as follows: Carrying Value Carrying Value January 1, 2018 Foreign Currency Translation Impairments December 31, 2018 (In thousands) Western Hemisphere $ 39,158 $ (599 ) $ (38,559 ) $ — Eastern Hemisphere 8,466 (752 ) — 7,714 Asia Pacific — — — — Total $ 47,624 $ (1,351 ) $ (38,559 ) $ 7,714 At October 1, 2018, 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 revised strategic budget for 2019 and for future periods, and management’s beliefs about future activity levels. The discount rates 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 rates for our reporting units. Forecasted cash flows in future periods were estimated using a terminal value calculation, which considered long-term earnings growth rates. In December 2018, the overall offshore market conditions declined. This decline was evidenced by lower commodity prices, decline in expected offshore rig counts, decrease in our customers’ capital budgets and potential delays associated with certain of our long term projects. Further, in December 2018 due to the decline in our stock price, our market capitalization dropped below the carrying value of our assets. As a result, an interim goodwill impairment analysis was performed in connection with our preparation and review of financial statements for the year ended December 31, 2018. Based on this analysis, we recorded an impairment loss of $38.6 million for our Western Hemisphere reporting unit for the year ended December 31, 2018. Following this impairment charge, the Western Hemisphere reporting unit has no remaining goodwill balance. The remaining goodwill balance is associated with our Eastern Hemisphere reporting unit. Based on our interim goodwill impairment analysis the fair value of the Eastern Hemisphere reporting unit exceeds its carry value by 71% . Further declines in the overall offshore market, commodity prices, or sustained lower valuation for the Company’s common stock could indicate a reduction in the estimate of the Eastern Hemisphere’s reporting unit fair value which, in turn, could lead to additional impairment charges associated with goodwill. No goodwill impairment losses were recorded for the years ended December 31, 2017 and 2016. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks 15 years $ 8,236 $ — $ (72 ) $ 8,164 Patents 15 - 30 years 6,026 (1,925 ) (11 ) 4,090 Customer relationships 5 - 15 years 25,703 (2,953 ) (260 ) 22,490 Non-compete agreements 3 years 171 (113 ) — 58 Organizational Costs indefinite 172 — — 172 $ 40,308 $ (4,991 ) $ (343 ) $ 34,974 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 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. In December 2018, the overall offshore market conditions declined. This decline was evidenced by lower commodity prices, decline in expected offshore rig counts, decrease in our customers’ capital budgets and potential delays associated with certain of our long term projects. As a result, we determined that the trademark asset is no longer indefinite lived and determined a 15 -year useful life to be appropriate based on our current market forecast. Amortization expense was $2.4 million , $2.4 million and $0.2 million for 2018 , 2017 and 2016 , respectively. Based on the carrying value of intangible assets at December 31, 2018 , amortization expense for the subsequent five years is estimated to be as follows: 2019 — $2.2 million ; 2020 — $2.1 million ; 2021 — $2.1 million ; 2022 — $2.1 million ; and 2023 — $2.1 million . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income taxes consisted of the following: Year Ended December 31, 2018 2017 2016 (In thousands) Domestic $ (120,784 ) $ (84,278 ) $ 33,543 Foreign 5,795 18,634 82,325 Total $ (114,989 ) $ (65,644 ) $ 115,868 The income tax provision (benefit) consists of the following: Year Ended December 31, 2018 2017 2016 (In thousands) Current: Federal $ (24,366 ) $ 20,435 $ 8,461 Foreign 9,163 (2,671 ) 15,246 Total current (15,203 ) 17,764 23,707 Deferred: Federal — 20,592 1,121 Foreign (4,091 ) (3,361 ) (2,181 ) Total deferred (4,091 ) 17,231 (1,060 ) Total $ (19,294 ) $ 34,995 $ 22,647 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, 2018 2017 2016 Federal income tax statutory rate 21.00 % 35.00 % 35.00 % Foreign income tax rate differential (0.94 ) 2.41 (11.66 ) Foreign development tax incentive 0.24 1.78 (0.93 ) Nondeductible goodwill impairment (5.21 ) — — Exempt income 2.32 — — Foreign inclusions (SubF / GILTI net of FTC) (2.40 ) — — Transition tax (net of FTC) 5.80 (28.62 ) — Nondeductible expenses (1.03 ) (1.75 ) 0.54 Foreign intellectual property tax benefit — 16.06 (1.08 ) Manufacturing benefit (1.18 ) — (0.99 ) Change in valuation allowance (1.99 ) (35.61 ) — Changes to PY Accruals (1.17 ) (4.01 ) 0.48 Deferred tax rate change 0.66 (20.66 ) — Change in Uncertain tax positions (0.78 ) (25.59 ) — Interest on net equity 1.02 3.15 — Other 0.44 4.53 (1.81 ) Effective tax rate 16.78 % (53.31 )% 19.55 % 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, 2018 2017 (In thousands) Deferred tax assets: Foreign tax credit carryforward 2,918 3,094 Inventory 28,181 20,816 Net operating losses 4,899 5,380 Allowance for doubtful accounts 1,729 1,200 Reserve for accrued liabilities 3,357 3,177 Stock options 3,908 3,553 Other 1,003 1,811 Total deferred tax assets 45,995 39,031 Valuation allowance (31,833 ) (29,539 ) Deferred tax liabilities: Property, plant and equipment (6,601 ) (2,618 ) Goodwill & Intangibles (881 ) (4,161 ) Other (1,151 ) (781 ) Total deferred tax (8,633 ) (7,560 ) Net deferred tax asset (liability) 5,529 1,932 Tax operating loss carryforwards totaled $18.1 million at December 31, 2018. These operating losses will expire as shown in the table below. Tax operating losses Expiration (in thousands) $ 2,258 2019-2024 10,990 2025-2031 2,431 2032-2037 2,409 Indefinite $ 18,088 In assessing the realizability of our deferred tax assets, the Company has assessed whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. In making this determination, the Company considered taxable income in prior years, if carryback is permitted, the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies. The Company has a three-year cumulative loss at December 31, 2018 in the United States and certain foreign jurisdictions and has recorded a valuation allowance at December 31, 2018 of $31.8 million against deferred tax assets in those jurisdictions. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (US Tax Reform). In 2017, we recorded provisional amounts for certain enactment-date effects of US Tax Reform by applying the guidance provided in Staff Accounting Bulletin 118 because we had not yet completed our enactment-date accounting for these said effects. In 2017, the Company recorded tax expense related to the enactment-date effects of US Tax Reform that included recording the one-time transition tax liability related to undistributed earnings of certain foreign subsidiaries that were not previously taxed and adjusting deferred tax assets and liabilities. The changes to the 2017 enactment-date provisional amounts increased the effective tax rate in 2018 by 13.7% . At December 31, 2018, we have now completed our accounting for all the enactment-date income tax effects of US Tax Reform. As further discussed below, during 2018, we recognized adjustments of $15.8 million to the provisional amounts recorded at December 31, 2017 and included these adjustments as a component of income tax expense from continuing operations. 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 accrued income tax liabilities of $32.6 million under the transition tax. Upon further analyses of US Tax Reform and additional Notices and regulations issued and proposed by the US Department of the Treasury and the Internal Revenue Service, we finalized our calculations of the transition tax liability during 2018. We decreased our December 31, 2017 provisional amount by $15.8 million , which is included as a component of income tax expense from continuing operations. 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 of December 31, 2017, we remeasured certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future, by recording a provisional amount of $13.6 million . Upon further analysis of certain aspects of US Tax Reform and refinement of our calculations during the year ended December 31, 2018, we adjusted our provisional amount by $1.6 million , which is included as a component of income tax expense from continuing operations. US Tax Reform subjects a US shareholder to tax on Global Intangible Low-Taxed Income (GILTI). We have elected to account for GILTI in the year that the tax is incurred as a period expense. Certain undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested and, accordingly, no provision for income taxes has been provided thereon. The estimate of undistributed earnings of the Company’s foreign subsidiaries amounted to $453 million as of December 31, 2018. Upon distribution of those earnings in the form of dividends or otherwise, after consideration of the transition tax, the Company may be subject to both income taxes and withholding taxes payable. Determination of the amount of the potential tax liability on repatriation is not practicable at this time. 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 $18.6 million at December 31, 2018 due to uncertainty in tax positions taken in the U.S. and certain foreign tax jurisdictions. The tax years which remain subject to examination by major tax jurisdictions are the years ended December 31, 2012 through December 31, 2018. A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows: 2018 2017 2016 (In thousands) Balance at beginning of year $ 18,323 $ 5,151 $ — Additions for tax positions related to the current year — 16,800 — Additions for tax positions related to the prior year 325 — 3,628 Additions related to acquisitions — — 1,523 Settlements with tax authorities — (3,628 ) — Balance at end of year $ 18,648 $ 18,323 $ 5,151 The amounts above exclude accrued interest and penalties of $1.1 million , $0.6 million , and $0.6 million at December 31, 2018, 2017 and 2016 respectively. The Company classifies interest and penalties relating to uncertain tax positions within Tax expense(benefit) in the Consolidated Statement of Income (Loss). It is reasonably possible that the Company's existing liabilities for unrecognized tax benefits may increase or decrease in the year ending December 31, 2019, 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, 2018, if recognized, $8.2 million of the Company's unrecognized tax benefits would favorably impact the effective tax rate. The Company paid $3.8 million , $8.4 million and $23.0 million in income taxes in 2018, 2017 and 2016, respectively. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Current other accrued liabilities consist of the following: December 31, 2018 2017 (In thousands) Payroll taxes $ 6,227 $ 6,591 Property, sales and other taxes 7,898 8,340 Commissions payable 5,248 408 Accrued vendor costs 2,973 7,068 Accrued warranties 1,868 1,535 Severance 5,498 — Other 2,530 1,596 Total $ 32,242 $ 25,538 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
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 $4.1 million , $4.3 million and $4.6 million in 2018 , 2017 and 2016 , respectively. |
Asset Backed Loan (ABL) Credit
Asset Backed Loan (ABL) Credit Facility | 12 Months Ended |
Dec. 31, 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 December 31, 2018 . As of December 31, 2018 , the availability under the ABL Credit Facility was $52.2 million , after taking into account the outstanding letters of credit of approximately $1.7 million issued under the facility. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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 $5.4 million , $6.0 million and $5.0 million in 2018 , 2017 and 2016 , respectively. Future annual minimum lease commitments at December 31, 2018 are as follows: 2019 — $2.0 million ; 2020 — $1.5 million ; 2021 — $0.8 million ; 2022 — $0.5 million ; 2023 — $0.4 million ; and thereafter— $4.2 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 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, certain of the Company's products 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, 2018 | |
Segment Reporting [Abstract] | |
Geographic Segments | Geographic Segments Year Ended December 31, 2018 2017 2016 (In thousands) Western Hemisphere Revenues Products Standard Products $ 135,687 $ 215,907 $ 250,466 Percentage of Completion 34,595 1,178 3,893 Total Products 170,282 217,085 254,359 Services Technical Advisory 29,973 28,053 22,554 Reconditioning 10,985 8,846 13,049 Total Services (excluding rental tools) 40,958 36,899 35,603 Leasing 25,302 28,151 27,747 Total Services (including rental tools) 66,260 65,050 63,350 Intercompany 13,343 27,554 43,856 Eliminations — — — Total $ 249,885 $ 309,689 $ 361,565 Depreciation and amortization $ 23,314 $ 30,441 $ 21,396 Income (loss) before taxes $ (29,823 ) $ (18,099 ) $ 91,221 Eastern Hemisphere Revenues Products Standard Products $ 49,216 $ 43,260 $ 76,647 Percentage of Completion 22,503 26,404 30,215 Total Products 71,719 69,664 106,862 Services Technical Advisory 16,499 15,313 19,568 Reconditioning 3,188 1,958 4,116 Total Services (excluding rental tools) 19,687 17,271 23,684 Leasing 13,639 10,776 11,134 Total Services (including rental tools) 33,326 28,047 34,818 Intercompany 2,010 772 337 Eliminations — — — Total $ 107,055 $ 98,483 $ 142,017 Depreciation and amortization $ 4,578 $ 4,096 $ 4,965 Income before taxes $ 20,495 $ 1,379 $ 60,835 Year Ended December 31, Asia Pacific Hemisphere 2018 2017 2016 (In thousands) Revenues Products Standard Products $ 19,569 $ 34,951 $ 30,928 Percentage of Completion 3,482 29,432 40,863 Total Products 23,051 64,383 71,791 Services Technical Advisory 10,143 7,559 4,209 Reconditioning 1,626 216 598 Total Services (excluding rental tools) 11,769 7,775 4,807 Leasing 8,219 3,465 2,744 Total Services (including rental tools) 19,988 11,240 7,551 Intercompany 2,058 781 1,882 Eliminations — — — Total $ 45,097 $ 76,404 $ 81,224 Depreciation and amortization $ 4,785 $ 4,063 $ 4,436 Income (loss) before taxes $ (3,123 ) $ 4,928 $ 12,779 Corporate Depreciation and amortization $ 2,635 $ 2,374 $ 1,060 Loss before taxes $ (102,538 ) $ (53,852 ) $ (48,967 ) Consolidated Revenues Products Standard Products $ 204,472 $ 294,118 $ 358,041 Percentage of Completion 60,580 57,014 74,971 Total Products 265,052 351,132 433,012 Services Technical Advisory 56,615 50,925 46,331 Reconditioning 15,799 11,020 17,763 Total Services (excluding rental tools) 72,414 61,945 64,094 Leasing 47,160 42,392 41,625 Total Services (including rental tools) 119,574 104,337 105,719 Intercompany 17,411 29,107 46,075 Eliminations (17,411 ) (29,107 ) (46,075 ) Total $ 384,626 $ 455,469 $ 538,731 Depreciation and amortization $ 35,312 $ 40,974 $ 31,857 Income (loss) before taxes $ (114,989 ) $ (65,644 ) $ 115,868 December 31, 2018 2017 (In thousands) Total long-lived assets: Western Hemisphere $ 412,624 $ 482,636 Eastern Hemisphere 256,899 264,828 Asia Pacific 65,944 58,606 Eliminations (395,938 ) (414,814 ) Total $ 339,529 $ 391,256 Total assets: Western Hemisphere $ 708,723 $ 877,779 Eastern Hemisphere 788,171 752,967 Asia Pacific 154,298 185,229 Eliminations (458,682 ) (416,170 ) Total $ 1,192,510 $ 1,399,805 In 2018 , BP and its affiliated companies accounted for approximately 13% of the Company’s total revenues. In 2017 and 2016 , Chevron and its affiliated companies accounted for approximately 14% and 16% , respectively, of the Company’s total revenues. No other customer accounted for more than 10% of the Company’s total revenues in 2018 , 2017 or 2016. During the fourth quarter of 2017, the Company pursued a restructuring of its entities to prepare it for potential increased activity in international markets. The main focus of the restructuring was to consolidate excess foreign cash held offshore and create an internal financing capability. The excess foreign cash is now held in a treasury concentration center in the Eastern Hemisphere where it is invested when not required to fund international operations. When required, these funds can be easily deployed to meet the working capital requirements of 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, 2018 | |
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, 2018 | |
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, 2018 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, 2017 280,212 $ 59.84 Granted — — Exercised (35,375 ) 31.59 Forfeited (20,750 ) 67.71 Outstanding at December 31, 2018 224,087 $ 63.57 — 2.1 Exercisable at year-end 224,087 $ 63.57 — 2.1 The total intrinsic value of stock options exercised in 2018 , 2017 and 2016 was $0.7 million , $0.4 million and $1.0 million , respectively. The income tax benefit realized from stock options exercised was $157,442 , $153,759 and $357,000 for the years ended December 31, 2018 , 2017 and 2016, respectively. There were 6,180 anti-dilutive stock option shares on December 31, 2018 . Stock-based compensation is recognized as selling, general and administrative expense in the accompanying Consolidated Statements of Income. For the years ended December 31, 2018 , 2017 and 2016 , there was no stock-based compensation expense for stock option awards. No stock-based compensation expense was capitalized during 2018 , 2017 and 2016 . 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, 2018 , 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, 2018 and 2017 , 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: Restricted Stock Weighted-average Grant Date Fair Value Unvested at December 31, 2017 397,298 $ 46.76 Granted 197,380 41.93 Vested (169,434 ) 49.73 Forfeited (22,065 ) 46.17 Unvested at December 31, 2018 403,179 $ 43.18 RSA compensation expense for the years ended December 31, 2018 , 2017 and 2016 totaled $8.8 million , $8.4 million and $7.2 million , respectively. For 2018 , 2017 and 2016 , the income tax benefit recognized in net income for RSAs was $1.5 million , $1.9 million and $1.2 million , respectively. As of December 31, 2018 , there was $16.5 million of total unrecognized compensation cost related to nonvested RSAs, which is expected to be recognized over a weighted average period of 2.2 years. There were 239,952 anti-dilutive restricted shares on December 31, 2018 . Performance Unit Awards On October 28, 2018 , 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 $54.62 for the 2018 grants, $54.64 for the 2017 grants and $53.46 for the 2016 grants, approximately 126.8% , 131.7% and 110.3% , respectively, of the grant date 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 , 2017 and 2018 to September 30, 2019, 2020 and 2021, 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: 2018 2017 2016 Grant date October 28, 2018 October 28, 2017 October 28, 2016 Performance period October 1, 2018 to September 30, 2021 October 1, 2017 to September 30, 2020 October 1, 2016 to September 30, 2019 Volatility 32.6% 34.0% 32.5% Risk-free interest rate 2.9% 1.7% 1.0% Grant date price $43.09 $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, 2017 264,274 $ 59.97 Granted 88,179 54.62 Vested (48,072 ) 79.00 Forfeited (16,288 ) 79.00 Nonvested balance at December 31, 2018 288,093 $ 54.22 Performance Unit compensation expense was $4.2 million , $5.4 million and $4.6 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The income tax benefit recognized in net income for Performance Units was $0.4 million , $0.8 million and $0.5 million , for the years ended December 31, 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , there was $9.6 million of total unrecognized compensation expense related to nonvested Performance Units which is expected to be recognized over a weighted average period of 2.1 years. There were 169,354 anti-dilutive Performance Units at December 31, 2018 . 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, 2018 is presented below: DSA Number of Shares Weighted Average Grant Date Fair Value Per Share Non-vested balance at December 31, 2017 17,514 $ 54.80 Granted 9,539 48.32 Vested (8,174 ) 58.47 Forfeited — — Nonvested balance at December 31, 2018 18,879 $ 49.93 Director stock compensation awards expense for 2018 was $460,884 as compared to $462,968 for 2017 and 405,000 for 2016 . For 2018 , 2017 and 2016 , the income tax benefit recognized in net income for DSAs was $81,879 , $115,002 , and $19,000 , respectively. There was $291,168 of unrecognized compensation expense related to nonvested DSAs, which is expected to be recognized over a weighted average period of one year. There were 9,291 anti-dilutive DSA shares on December 31, 2018 . The following table summarizes information for equity compensation plans in effect as of December 31, 2018 : 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 224,087 $ 63.57 1,279,330 Total 224,087 $ 63.57 1,279,330 (1) Excludes 422,058 shares of unvested RSAs and DSAs and 288,093 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, 2018 | |
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, 2018 2017 2016 (In thousands, except per share amounts) Net income (loss) $ (95,695 ) $ (100,639 ) $ 93,221 Weighted average basic common shares outstanding 37,075 37,457 37,537 Effect of dilutive securities - stock options and awards — — 130 Total shares and dilutive securities 37,075 37,457 37,667 Basic earnings (loss) per common share $ (2.58 ) $ (2.69 ) $ 2.48 Diluted earnings (loss) per common share $ (2.58 ) $ (2.69 ) $ 2.47 For the years ended December 31, 2018, 2017 and 2016, 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, 2018 2017 2016 (In thousands) Director stock awards 9 8 2 Stock options 6 21 — Performance share units 169 160 64 Restricted stock awards 240 186 110 |
Stock Repurchase Plan
Stock Repurchase Plan | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stock Repurchase Plan | Stock Repurchase Plan On February 26, 2015, the Company announced that the Board of Directors had authorized a stock repurchase plan under which the Company was authorized to repurchase up to $100 million of its common stock. As part of the repurchase plan, the Company repurchased 400,500 shares under this plan for a total of $24.2 million during 2016. All repurchased shares were subsequently cancelled. On July 26, 2016, the Board of Directors authorized a stock repurchase plan under which the Company was authorized to repurchase up to $100 million of its common stock. During the year ended December 31, 2018, the Company purchased 1,991,206 shares under the share repurchase plan for approximately $100 million . The repurchase plan was completed on October 19, 2018. All repurchased shares have been cancelled as of December 31, 2018. Refer to Item 5. Market for Registrant's Common Stock, Related Stockholder Matters and Issuer Purchases of Equity Securities for further discussion. No repurchases were made pursuant to this plan during 2017. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 Revenues $ 99,173 $ 94,861 $ 93,257 $ 97,335 Cost of sales 67,750 69,444 65,630 68,675 Gross profit 31,423 25,417 27,627 28,660 Operating income (loss) (6,277 ) (3,551 ) (14,084 ) (98,826 ) Net income (loss) (7,383 ) (3,042 ) (10,358 ) (74,912 ) Earnings (loss) per share: Basic (1) $ (0.20 ) $ (0.08 ) $ (0.28 ) $ (2.09 ) Diluted (1) $ (0.20 ) $ (0.08 ) $ (0.28 ) $ (2.09 ) 2017 Revenues $ 119,228 $ 127,922 $ 100,346 $ 107,973 Cost of sales 82,440 87,549 63,050 72,355 Gross profit 36,788 40,373 37,296 35,618 Operating income (loss) (870 ) (1,114 ) (62,045 ) (5,107 ) Net income (loss) 94 15 (29,260 ) (71,488 ) Earnings (loss) per share: Basic (1) $ — $ — $ (0.78 ) $ 0.03 Diluted (1) $ — $ — $ (0.78 ) $ 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, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events On February 26, 2019, the Company announced that the Board of Directors had authorized a new stock repurchase program under which the Company is authorized to repurchase up to $100 million of its common stock. The repurchase program has no set expiration date. Repurchases under the program will be made through open market purchases, privately negotiated transactions or plans, instructions or contracts established under Rule 10b5-1 under the Exchange Act. The manner, timing and amount of any purchase will be determined by management based on an evaluation of market conditions, stock price, liquidty and other factors. The program does not obligate the Company to acquire any particular amount of common stock and may be modified or superseded at any time at the Company’s discretion. Any repurchased shares are expected to be cancelled. No repurchases have been made pursuant to this program at the time of this filing. |
Schedule II_Valuation and Quali
Schedule II—Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, 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, 2018 $ 4,519 $ 3,794 $ (2,647 ) $ 5,666 December 31, 2017 5,570 1,709 (2,760 ) 4,519 December 31, 2016 $ 7,739 $ 1,259 $ (3,428 ) $ 5,570 Allowance for excess and slow moving inventory December 31, 2018 $ 83,566 $ 34,155 $ (9,154 ) $ 108,567 December 31, 2017 45,648 32,204 5,714 83,566 December 31, 2016 $ 39,247 $ 5,748 $ 653 $ 45,648 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 net realizable value. Company manufactured inventory is valued principally using standard costs, which are calculated based upon direct costs incurred and overhead allocations and approximate actual costs. Inventory purchased from third-party vendors is principally valued at the weighted average cost. Periodically, obsolescence reviews are performed on slow-moving inventories and reserves are established based on current assessments about future demands and market conditions. Inventory Reserves. Periodically, obsolescence reviews are performed on slow-moving inventories and reserves are established based on current assessments about future demands and market conditions. The Company determines the reserve percentages based on an analysis of stocking levels, historical sales levels and future sales forecasts anticipated for inventory items by product type. The inventory values have been reduced by a reserve for excess and slow-moving inventories of $108.6 million and $83.6 million as of December 31, 2018 and 2017 , respectively. If market conditions are less favorable than those projected by management, additional inventory reserves may be required. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost, with depreciation provided on a straight-line basis over their estimated useful lives. We capitalize costs incurred to enhance, improve and extend the useful lives of our property and equipment and expense costs incurred to repair and maintain the existing condition of our assets. |
Goodwill and indefinite-lived intangible assets | Goodwill and indefinite-lived intangible assets. For goodwill and intangible assets with indefinite lives, an assessment for impairment is performed annually or when there is an indication an impairment may have occurred. We complete our annual impairment test for goodwill and other indefinite-lived intangibles using an assessment date of October 1. Goodwill is reviewed for impairment by comparing the carrying value of each of our reporting unit’s net assets, including allocated goodwill, to the estimated fair value of the reporting unit. We determine the fair value of our reporting units using a discounted cash flow approach. We selected this valuation approach because we believe it, combined with our best judgment regarding underlying assumptions and estimates, provides the best estimate of fair value for each of our reporting units. Determining the fair value of a reporting unit requires the use of estimates and assumptions. Such estimates and assumptions include revenue growth rates, future operating margins, the weighted average cost of capital ("discount rates"), a terminal growth value, and future market conditions, among others. We believe that the estimates and assumptions used in our impairment assessments are reasonable. If the reporting unit’s carrying value is greater than its calculated fair value, we recognize a goodwill impairment charge for the amount by which the carrying value of goodwill exceeds its 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 net realizable value. |
Restructuring and Other Charges | Restructuring costs and other charges As a result of unfavorable market conditions, combined with the impact of decreased capital expenditure budgets within the industry driven by sustained low oil prices, we announced a cost reduction plan primarily focused on workforce reductions and the reorganization of certain facilities in the second quarter of 2018. We incurred restructuring and other charges associated with the cost reduction plan of $60.0 million during the year ended December 31, 2018. Costs incurred for employee termination benefits during the year ended December 31, 2018 were $7.3 million . Additionally, we incurred non-cash inventory and long-lived asset write-downs of approximately $32.1 million and $14.9 million , respectively, as a result of expected changes in our business structure and where specific products are manufactured. Remaining costs incurred of approximately $5.7 million related to professional fees for consulting services for the strategic planning and implementation efforts. These charges are reflected as "Impairment, restructuring and other charges" in our consolidated statement of operations. We did no t incur restructuring charges during the years ended December 31, 2017 and 2016. Additionally, in connection with our preparation and review of the financial statements for the year ended December 31, 2018, we recorded an impairment charge of $38.6 million for the fourth quarter of 2018 as a result of our updated assessment of current market conditions and restructuring efforts. For further information, see Note 9 , Goodwill . |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Current income taxes are provided on income reported for financial statement purposes, adjusted for transactions that do not enter into the computation of income taxes payable in the same year. Deferred tax assets and liabilities are measured using enacted tax rates for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred income tax assets to the amounts that are expected more likely than not to be realized in the future. The Company classifies interest and penalties related to uncertain tax positions as income taxes in its financial statements |
Revenue Recognition | Revenue Recognition Product revenues The Company recognizes product revenues from two methods: • product revenues are recognized over time as control is transferred to the customer; and • product revenues from the sale of products that do not qualify for the over time method are recognized as point in time. Revenues recognized under the over time method The Company uses the over time method on long-term project contracts that have the following characteristics: • the contracts call for products which are designed to customer specifications; • the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration; • the contracts contain specific terms as to milestones, progress billings and delivery dates; • product requirements cannot be filled directly from the Company’s standard inventory; and • The Company has an enforceable right to payment for any work completed to date and the enforceable payment includes a reasonable profit margin. For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percentage complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs to be recognized. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. Under the over time method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported in trade receivables. Unbilled revenues are expected to be billed and collected within one year. At December 31, 2018 and 2017 , receivables included $57.0 million and $41.0 million of unbilled receivables, respectively. For the year ended December 31, 2018 , there were 22 projects representing approximately 16% of the Company’s total revenues and approximately 23% of its product revenues, and eight projects during 2017 representing approximately 13% of the Company’s total revenues and approximately 16% of its product revenues, which were accounted for using over time method of accounting. Revenues recognized under the point in time method Revenues from the sale of standard inventory products, not accounted for under the over time method, are recorded at the point in time that the customer obtains control of the promised asset and the Company satisfies its performance obligation. This point in time recognition aligns with 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 leasing 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 |
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 $(0.8) million , $12.7 million and $(25.6) million during the year ended December 31, 2018 , 2017 and 2016 , 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. |
Revenue Recognition (Adoption_2
Revenue Recognition (Adoption of ASC 606) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from Contract with Customer | Revenues from contracts with customers consisted of the following: Twelve months ended December 31, 2018 Western Hemisphere Eastern Hemisphere Asia-Pacific Intercompany Total (In thousands) Product Revenues $ 170,282 $ 71,719 $ 23,051 $ — $ 265,052 Service Revenues 40,958 19,687 11,769 — 72,414 Total $ 211,240 $ 91,406 $ 34,820 $ — $ 337,466 |
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 63,379 Transfers to Accounts Receivable (22,016 ) Contract Assets at December 31, 2018 $ 83,188 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2017 $ 4,767 Additions 114,236 Revenue Recognized (109,355 ) Contract Liabilities at December 31, 2018 $ 9,648 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31, 2018 2017 (In thousands) Raw materials and supplies $ 55,878 $ 70,188 Work in progress 51,251 65,382 Finished goods 192,632 239,083 299,761 374,653 Less: allowance for obsolete and excess inventory (108,567 ) (83,566 ) Total inventory $ 191,194 $ 291,087 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of: Estimated Useful Lives December 31, 2018 2017 (In thousands) Land improvements 10-25 years $ 7,774 $ 7,485 Buildings 15-40 years 212,501 183,437 Machinery, equipment and other 3-10 years 375,240 361,959 595,515 552,881 Less accumulated depreciation (349,701 ) (315,091 ) 245,814 237,790 Land 12,524 13,464 Construction work in process 15,785 32,993 Total property, plant and equipment $ 274,123 $ 284,247 |
Impairment, Restructuring and_2
Impairment, Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Restructuring and Related Costs | The following table summarizes the components of charges included in "Impairment, restructuring and other charges" in our consolidated statement of operations for the year ended December 31, 2018 (in thousands): Year Ended December 31, 2018 Inventory impairment $ 32,070 Long-lived asset impairment 14,902 Severance 7,324 Professional service fees 5,300 Exit costs 447 Total restructuring and other charges $ 60,043 |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the changes to our accrued liability balance related to restructuring and other charges for the year ended December 31, 2018 (in thousands): December 31, 2018 Balance at January 1, 2018 $ — Additions for costs expensed 12,624 Reductions for payments (5,626 ) Ending balance at December 31, 2018 $ 6,998 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 were as follows: Carrying Value Carrying Value January 1, 2018 Foreign Currency Translation Impairments December 31, 2018 (In thousands) Western Hemisphere $ 39,158 $ (599 ) $ (38,559 ) $ — Eastern Hemisphere 8,466 (752 ) — 7,714 Asia Pacific — — — — Total $ 47,624 $ (1,351 ) $ (38,559 ) $ 7,714 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks 15 years $ 8,236 $ — $ (72 ) $ 8,164 Patents 15 - 30 years 6,026 (1,925 ) (11 ) 4,090 Customer relationships 5 - 15 years 25,703 (2,953 ) (260 ) 22,490 Non-compete agreements 3 years 171 (113 ) — 58 Organizational Costs indefinite 172 — — 172 $ 40,308 $ (4,991 ) $ (343 ) $ 34,974 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income (loss) before income taxes consisted of the following: Year Ended December 31, 2018 2017 2016 (In thousands) Domestic $ (120,784 ) $ (84,278 ) $ 33,543 Foreign 5,795 18,634 82,325 Total $ (114,989 ) $ (65,644 ) $ 115,868 |
Schedule of Income Tax Provision (Benefit) | The income tax provision (benefit) consists of the following: Year Ended December 31, 2018 2017 2016 (In thousands) Current: Federal $ (24,366 ) $ 20,435 $ 8,461 Foreign 9,163 (2,671 ) 15,246 Total current (15,203 ) 17,764 23,707 Deferred: Federal — 20,592 1,121 Foreign (4,091 ) (3,361 ) (2,181 ) Total deferred (4,091 ) 17,231 (1,060 ) Total $ (19,294 ) $ 34,995 $ 22,647 |
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, 2018 2017 2016 Federal income tax statutory rate 21.00 % 35.00 % 35.00 % Foreign income tax rate differential (0.94 ) 2.41 (11.66 ) Foreign development tax incentive 0.24 1.78 (0.93 ) Nondeductible goodwill impairment (5.21 ) — — Exempt income 2.32 — — Foreign inclusions (SubF / GILTI net of FTC) (2.40 ) — — Transition tax (net of FTC) 5.80 (28.62 ) — Nondeductible expenses (1.03 ) (1.75 ) 0.54 Foreign intellectual property tax benefit — 16.06 (1.08 ) Manufacturing benefit (1.18 ) — (0.99 ) Change in valuation allowance (1.99 ) (35.61 ) — Changes to PY Accruals (1.17 ) (4.01 ) 0.48 Deferred tax rate change 0.66 (20.66 ) — Change in Uncertain tax positions (0.78 ) (25.59 ) — Interest on net equity 1.02 3.15 — Other 0.44 4.53 (1.81 ) Effective tax rate 16.78 % (53.31 )% 19.55 % |
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, 2018 2017 (In thousands) Deferred tax assets: Foreign tax credit carryforward 2,918 3,094 Inventory 28,181 20,816 Net operating losses 4,899 5,380 Allowance for doubtful accounts 1,729 1,200 Reserve for accrued liabilities 3,357 3,177 Stock options 3,908 3,553 Other 1,003 1,811 Total deferred tax assets 45,995 39,031 Valuation allowance (31,833 ) (29,539 ) Deferred tax liabilities: Property, plant and equipment (6,601 ) (2,618 ) Goodwill & Intangibles (881 ) (4,161 ) Other (1,151 ) (781 ) Total deferred tax (8,633 ) (7,560 ) Net deferred tax asset (liability) 5,529 1,932 |
Summary of Operating Loss Carryforwards | Tax operating losses Expiration (in thousands) $ 2,258 2019-2024 10,990 2025-2031 2,431 2032-2037 2,409 Indefinite $ 18,088 |
Schedule of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows: 2018 2017 2016 (In thousands) Balance at beginning of year $ 18,323 $ 5,151 $ — Additions for tax positions related to the current year — 16,800 — Additions for tax positions related to the prior year 325 — 3,628 Additions related to acquisitions — — 1,523 Settlements with tax authorities — (3,628 ) — Balance at end of year $ 18,648 $ 18,323 $ 5,151 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Accrued Liabilities | Current other accrued liabilities consist of the following: December 31, 2018 2017 (In thousands) Payroll taxes $ 6,227 $ 6,591 Property, sales and other taxes 7,898 8,340 Commissions payable 5,248 408 Accrued vendor costs 2,973 7,068 Accrued warranties 1,868 1,535 Severance 5,498 — Other 2,530 1,596 Total $ 32,242 $ 25,538 |
Geographic Segments (Tables)
Geographic Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | Year Ended December 31, 2018 2017 2016 (In thousands) Western Hemisphere Revenues Products Standard Products $ 135,687 $ 215,907 $ 250,466 Percentage of Completion 34,595 1,178 3,893 Total Products 170,282 217,085 254,359 Services Technical Advisory 29,973 28,053 22,554 Reconditioning 10,985 8,846 13,049 Total Services (excluding rental tools) 40,958 36,899 35,603 Leasing 25,302 28,151 27,747 Total Services (including rental tools) 66,260 65,050 63,350 Intercompany 13,343 27,554 43,856 Eliminations — — — Total $ 249,885 $ 309,689 $ 361,565 Depreciation and amortization $ 23,314 $ 30,441 $ 21,396 Income (loss) before taxes $ (29,823 ) $ (18,099 ) $ 91,221 Eastern Hemisphere Revenues Products Standard Products $ 49,216 $ 43,260 $ 76,647 Percentage of Completion 22,503 26,404 30,215 Total Products 71,719 69,664 106,862 Services Technical Advisory 16,499 15,313 19,568 Reconditioning 3,188 1,958 4,116 Total Services (excluding rental tools) 19,687 17,271 23,684 Leasing 13,639 10,776 11,134 Total Services (including rental tools) 33,326 28,047 34,818 Intercompany 2,010 772 337 Eliminations — — — Total $ 107,055 $ 98,483 $ 142,017 Depreciation and amortization $ 4,578 $ 4,096 $ 4,965 Income before taxes $ 20,495 $ 1,379 $ 60,835 Year Ended December 31, Asia Pacific Hemisphere 2018 2017 2016 (In thousands) Revenues Products Standard Products $ 19,569 $ 34,951 $ 30,928 Percentage of Completion 3,482 29,432 40,863 Total Products 23,051 64,383 71,791 Services Technical Advisory 10,143 7,559 4,209 Reconditioning 1,626 216 598 Total Services (excluding rental tools) 11,769 7,775 4,807 Leasing 8,219 3,465 2,744 Total Services (including rental tools) 19,988 11,240 7,551 Intercompany 2,058 781 1,882 Eliminations — — — Total $ 45,097 $ 76,404 $ 81,224 Depreciation and amortization $ 4,785 $ 4,063 $ 4,436 Income (loss) before taxes $ (3,123 ) $ 4,928 $ 12,779 Corporate Depreciation and amortization $ 2,635 $ 2,374 $ 1,060 Loss before taxes $ (102,538 ) $ (53,852 ) $ (48,967 ) Consolidated Revenues Products Standard Products $ 204,472 $ 294,118 $ 358,041 Percentage of Completion 60,580 57,014 74,971 Total Products 265,052 351,132 433,012 Services Technical Advisory 56,615 50,925 46,331 Reconditioning 15,799 11,020 17,763 Total Services (excluding rental tools) 72,414 61,945 64,094 Leasing 47,160 42,392 41,625 Total Services (including rental tools) 119,574 104,337 105,719 Intercompany 17,411 29,107 46,075 Eliminations (17,411 ) (29,107 ) (46,075 ) Total $ 384,626 $ 455,469 $ 538,731 Depreciation and amortization $ 35,312 $ 40,974 $ 31,857 Income (loss) before taxes $ (114,989 ) $ (65,644 ) $ 115,868 December 31, 2018 2017 (In thousands) Total long-lived assets: Western Hemisphere $ 412,624 $ 482,636 Eastern Hemisphere 256,899 264,828 Asia Pacific 65,944 58,606 Eliminations (395,938 ) (414,814 ) Total $ 339,529 $ 391,256 Total assets: Western Hemisphere $ 708,723 $ 877,779 Eastern Hemisphere 788,171 752,967 Asia Pacific 154,298 185,229 Eliminations (458,682 ) (416,170 ) Total $ 1,192,510 $ 1,399,805 |
Stock-Based Compensation and _2
Stock-Based Compensation and Stock Awards (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Option Activity | Option activity for the year ended December 31, 2018 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, 2017 280,212 $ 59.84 Granted — — Exercised (35,375 ) 31.59 Forfeited (20,750 ) 67.71 Outstanding at December 31, 2018 224,087 $ 63.57 — 2.1 Exercisable at year-end 224,087 $ 63.57 — 2.1 |
Summary of RSA Activity | The Company’s RSA activity and related information is presented below: Restricted Stock Weighted-average Grant Date Fair Value Unvested at December 31, 2017 397,298 $ 46.76 Granted 197,380 41.93 Vested (169,434 ) 49.73 Forfeited (22,065 ) 46.17 Unvested at December 31, 2018 403,179 $ 43.18 |
Schedule of Valuation Assumptions | Assumptions used in the Monte Carlo simulation are as follows: 2018 2017 2016 Grant date October 28, 2018 October 28, 2017 October 28, 2016 Performance period October 1, 2018 to September 30, 2021 October 1, 2017 to September 30, 2020 October 1, 2016 to September 30, 2019 Volatility 32.6% 34.0% 32.5% Risk-free interest rate 2.9% 1.7% 1.0% Grant date price $43.09 $41.50 $48.45 |
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, 2017 264,274 $ 59.97 Granted 88,179 54.62 Vested (48,072 ) 79.00 Forfeited (16,288 ) 79.00 Nonvested balance at December 31, 2018 288,093 $ 54.22 |
Schedule of DSA Activity | The Company's DSA activity for the year ended December 31, 2018 is presented below: DSA Number of Shares Weighted Average Grant Date Fair Value Per Share Non-vested balance at December 31, 2017 17,514 $ 54.80 Granted 9,539 48.32 Vested (8,174 ) 58.47 Forfeited — — Nonvested balance at December 31, 2018 18,879 $ 49.93 |
Schedule of Information for Stock Option Plans | The following table summarizes information for equity compensation plans in effect as of December 31, 2018 : 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 224,087 $ 63.57 1,279,330 Total 224,087 $ 63.57 1,279,330 (1) Excludes 422,058 shares of unvested RSAs and DSAs and 288,093 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 (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 (In thousands, except per share amounts) Net income (loss) $ (95,695 ) $ (100,639 ) $ 93,221 Weighted average basic common shares outstanding 37,075 37,457 37,537 Effect of dilutive securities - stock options and awards — — 130 Total shares and dilutive securities 37,075 37,457 37,667 Basic earnings (loss) per common share $ (2.58 ) $ (2.69 ) $ 2.48 Diluted earnings (loss) per common share $ (2.58 ) $ (2.69 ) $ 2.47 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the years ended December 31, 2018, 2017 and 2016, 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, 2018 2017 2016 (In thousands) Director stock awards 9 8 2 Stock options 6 21 — Performance share units 169 160 64 Restricted stock awards 240 186 110 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 Revenues $ 99,173 $ 94,861 $ 93,257 $ 97,335 Cost of sales 67,750 69,444 65,630 68,675 Gross profit 31,423 25,417 27,627 28,660 Operating income (loss) (6,277 ) (3,551 ) (14,084 ) (98,826 ) Net income (loss) (7,383 ) (3,042 ) (10,358 ) (74,912 ) Earnings (loss) per share: Basic (1) $ (0.20 ) $ (0.08 ) $ (0.28 ) $ (2.09 ) Diluted (1) $ (0.20 ) $ (0.08 ) $ (0.28 ) $ (2.09 ) 2017 Revenues $ 119,228 $ 127,922 $ 100,346 $ 107,973 Cost of sales 82,440 87,549 63,050 72,355 Gross profit 36,788 40,373 37,296 35,618 Operating income (loss) (870 ) (1,114 ) (62,045 ) (5,107 ) Net income (loss) 94 15 (29,260 ) (71,488 ) Earnings (loss) per share: Basic (1) $ — $ — $ (0.78 ) $ 0.03 Diluted (1) $ — $ — $ (0.78 ) $ 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 (Detail)
Organization (Detail) $ in Millions | Jan. 06, 2017USD ($) | Dec. 31, 2018SegmentLocation |
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 |
Significant Accounting Polici_3
Significant Accounting Policies (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Sep. 30, 2018Source | Dec. 31, 2018USD ($)ProjectMethod | Dec. 31, 2017USD ($)Project | Dec. 31, 2016USD ($) | |
Accounting Policies [Line Items] | |||||
Inventory reserves | $ (108,567,000) | $ (108,567,000) | $ (83,566,000) | ||
Restructuring and other charges | 60,043,000 | 0 | $ 0 | ||
Severance costs | 7,324,000 | ||||
Inventory write-down | 32,070,000 | ||||
Long-lived asset impairment | 38,600,000 | 14,902,000 | |||
Restructuring costs | $ 5,700,000 | ||||
Number of product revenue sources | Method | 2 | ||||
Unbilled receivables | 57,000,000 | $ 57,000,000 | $ 41,000,000 | ||
Number of projects | Project | 22 | 8 | |||
Percentage of total revenues | 16.00% | 13.00% | |||
Percentage of product revenues | 23.00% | 16.00% | |||
Number of service revenue sources | Source | 2 | ||||
Loss (gain) in foreign currency exchange transactions | $ (800,000) | $ 12,700,000 | $ (25,600,000) | ||
Inventories | |||||
Accounting Policies [Line Items] | |||||
Inventory reserves | $ (108,600,000) | $ (108,600,000) | $ (83,600,000) |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Undiscounted lease payment liability | $ 9,400 | $ 9,400 | |||||||||||
Retained earnings | 1,205,946 | $ 1,400,296 | 1,205,946 | $ 1,400,296 | |||||||||
Increase (decrease) in results from operations | $ (98,826) | $ (14,084) | $ (3,551) | $ (6,277) | $ (5,107) | $ (62,045) | $ (1,114) | $ (870) | (122,738) | $ (69,136) | $ 112,859 | ||
Accounting Standards Update 2014-09 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Increase (decrease) in results from operations | $ (1,600) | ||||||||||||
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 | $ 1,700 | ||||||||||||
Scenario, Forecast | Accounting Standards Update 2016-02 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Right-of-use asset | $ 7,100 | ||||||||||||
Operating lease, liability | $ 7,100 |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 06, 2017 | Nov. 10, 2016 | Oct. 14, 2016 |
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 | $ 142.7 | ||
Acquisition costs | $ 2.5 | ||
Revenues | $ 49.4 | ||
Pre-tax operating loss | 15.5 | ||
Net loss from business acquisition | $ 15.9 | ||
Technology Alliance Inc. | |||
Business Acquisition [Line Items] | |||
Purchase price as a result of business acquisition | $ 20 | ||
Other Noncurrent Liabilities | OPT | |||
Business Acquisition [Line Items] | |||
Purchase price as a result of business acquisition | $ 2 |
Revenue Recognition (Adoption_3
Revenue Recognition (Adoption of ASC 606) - Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 337,466 | ||
Products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 265,052 | $ 351,132 | $ 433,012 |
Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 72,414 | ||
Intercompany | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Intercompany | Products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Intercompany | Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Western Hemisphere | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 211,240 | ||
Western Hemisphere | Operating Segments | Products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 170,282 | ||
Western Hemisphere | Operating Segments | Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 40,958 | ||
Eastern Hemisphere | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 91,406 | ||
Eastern Hemisphere | Operating Segments | Products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 71,719 | ||
Eastern Hemisphere | Operating Segments | Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 19,687 | ||
Asia Pacific | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 34,820 | ||
Asia Pacific | Operating Segments | Products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 23,051 | ||
Asia Pacific | Operating Segments | Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 11,769 |
Revenue Recognition (Adoption_4
Revenue Recognition (Adoption of ASC 606) - Contract Asset and Liability (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Change in Contract with Customer, Asset [Abstract] | |
Contract Assets at December 31, 2017 | $ 41,825 |
Additions | 63,379 |
Transfers to Accounts Receivable | (22,016) |
Contract Assets at December 31, 2018 | 83,188 |
Change in Contract with Customer, Liability [Abstract] | |
Contract Liabilities at December 31, 2017 | 4,767 |
Additions | 114,236 |
Revenue Recognized | (109,355) |
Contract Liabilities at December 31, 2018 | $ 9,648 |
Revenue Recognition (Adoption_5
Revenue Recognition (Adoption of ASC 606) - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable | $ 190.3 | $ 136.5 |
Performance obligation satisfied in previous period | 12.1 | |
Performance obligation | $ 42 | |
Transferred over Time | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation percentage | 98.00% | |
Expected timing of satisfaction period | 12 months | |
Transferred over Time | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation percentage | 2.00% | |
Expected timing of satisfaction period | 24 months |
Inventories, net (Detail)
Inventories, net (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 55,878 | $ 70,188 |
Work in progress | 51,251 | 65,382 |
Finished goods | 192,632 | 239,083 |
Inventory, gross, Total | 299,761 | 374,653 |
Less: allowance for obsolete and excess inventory | (108,567) | (83,566) |
Total inventory | $ 191,194 | $ 291,087 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 595,515 | $ 552,881 |
Less accumulated depreciation | (349,701) | (315,091) |
Property, Plant and Equipment Less Accumulated Depreciation | 245,814 | 237,790 |
Total property, plant and equipment | 274,123 | 284,247 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7,774 | 7,485 |
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 | $ 212,501 | 183,437 |
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 | $ 375,240 | 361,959 |
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 | $ 12,524 | 13,464 |
Construction work in process | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 15,785 | $ 32,993 |
Property, Plant and Equipment_4
Property, Plant and Equipment, net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 32.8 | $ 38.6 | $ 31.6 |
Impairment, Restructuring and_3
Impairment, Restructuring and Other Charges - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other charges | $ 60,043,000 | $ 0 | $ 0 | ||
Severance costs | 7,324,000 | ||||
Inventory write-down | 32,070,000 | ||||
Long-lived asset impairment | $ 38,600,000 | 14,902,000 | |||
Restructuring costs | 5,700,000 | ||||
Impairments | 38,559,000 | $ 0 | 0 | ||
Restructuring charges | $ 0 | 12,624,000 | $ 0 | ||
Inventory | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 33,600,000 | ||||
Property, Plant and Equipment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 27,400,000 |
Impairment, Restructuring and_4
Impairment, Restructuring and Other Charges - Schedule of Impairments and other Charges (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Inventory impairment | $ 32,070,000 | |||
Long-lived asset impairment | $ 38,600,000 | 14,902,000 | ||
Severance | 7,324,000 | |||
Professional service fees | 5,300,000 | |||
Exit costs | 447,000 | |||
Total restructuring and other charges | $ 60,043,000 | $ 0 | $ 0 |
Impairment, Restructuring and_5
Impairment, Restructuring and Other Charges - Schedule of Restructuring and Other Charges (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Balance at January 1, 2018 | $ 0 | ||
Additions for costs expensed | $ 0 | 12,624,000 | $ 0 |
Reductions for payments | (5,626,000) | ||
Ending balance at December 31, 2018 | $ 0 | $ 6,998,000 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning balance | $ 47,624,000 | ||
Foreign Currency Translation | (1,351,000) | ||
Impairments | (38,559,000) | $ 0 | $ 0 |
Goodwill, Ending balance | 7,714,000 | 47,624,000 | |
Western Hemisphere | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning balance | 39,158,000 | ||
Foreign Currency Translation | (599,000) | ||
Impairments | (38,559,000) | ||
Goodwill, Ending balance | 0 | 39,158,000 | |
Eastern Hemisphere | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning balance | 8,466,000 | ||
Foreign Currency Translation | (752,000) | ||
Impairments | 0 | ||
Goodwill, Ending balance | $ 7,714,000 | 8,466,000 | |
Percentage fair value in excess of carrying value | 71.00% | ||
Asia Pacific | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning balance | $ 0 | ||
Foreign Currency Translation | 0 | ||
Impairments | 0 | ||
Goodwill, Ending balance | $ 0 | $ 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived, Gross Book Value | $ 172 | |
Accumulated Amortization | (4,991) | $ (2,700) |
Finite-Lived, Foreign Currency Translation | (343) | 72 |
Indefinite-lived Intangible Assets, Foreign Currency Translation | 0 | |
Indefinite-lived Intangible, Net Book Value | 172 | |
Indefinite and Finite-Lived, Gross Book Value | 40,308 | 41,036 |
Indefinite and Finite-Lived, Net Book Value | 34,974 | 38,408 |
Trademarks | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived, Gross Book Value | 8,236 | 8,416 |
Accumulated Amortization | 0 | 0 |
Finite-Lived, Foreign Currency Translation | (72) | 56 |
Finite-Lived, Net Book Value | 8,164 | 8,472 |
Patents | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived, Gross Book Value | 6,026 | 5,946 |
Accumulated Amortization | (1,925) | (968) |
Finite-Lived, Foreign Currency Translation | (11) | 80 |
Finite-Lived, Net Book Value | 4,090 | 5,058 |
Customer relationships | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived, Gross Book Value | 25,703 | 26,503 |
Accumulated Amortization | (2,953) | (1,675) |
Finite-Lived, Foreign Currency Translation | (260) | (64) |
Finite-Lived, Net Book Value | $ 22,490 | $ 24,764 |
Non-compete agreements | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 3 years | 3 years |
Finite-Lived, Gross Book Value | $ 171 | $ 171 |
Accumulated Amortization | (113) | (57) |
Finite-Lived, Foreign Currency Translation | 0 | 0 |
Finite-Lived, Net Book Value | $ 58 | $ 114 |
Minimum | Patents | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | 15 years |
Minimum | Customer relationships | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 5 years | 5 years |
Maximum | Patents | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 30 years | 30 years |
Maximum | Customer relationships | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | 15 years |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 2.4 | $ 2.4 | $ 0.2 |
Amortization expense for 2019 | 2.2 | ||
Amortization expense for 2020 | 2.1 | ||
Amortization expense for 2021 | 2.1 | ||
Amortization expense for 2022 | 2.1 | ||
Amortization expense for 2023 | $ 2.1 | ||
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 15 years |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (120,784) | $ (84,278) | $ 33,543 |
Foreign | 5,795 | 18,634 | 82,325 |
Income (loss) before income taxes | $ (114,989) | $ (65,644) | $ 115,868 |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ (24,366) | $ 20,435 | $ 8,461 |
Foreign | 9,163 | (2,671) | 15,246 |
Total current | (15,203) | 17,764 | 23,707 |
Deferred: | |||
Federal | 0 | 20,592 | 1,121 |
Foreign | (4,091) | (3,361) | (2,181) |
Total deferred | (4,091) | 17,231 | (1,060) |
Total | $ (19,294) | $ 34,995 | $ 22,647 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax statutory rate | 21.00% | 35.00% | 35.00% |
Foreign income tax rate differential | (0.94%) | 2.41% | (11.66%) |
Foreign development tax incentive | 0.24% | 1.78% | (0.93%) |
Nondeductible goodwill impairment | (5.21%) | 0.00% | 0.00% |
Exempt income | 2.32% | 0.00% | 0.00% |
Foreign inclusions (SubF / GILTI net of FTC) | (2.40%) | (0.00%) | (0.00%) |
Transition tax (net of FTC) | 5.80% | (28.62%) | 0.00% |
Nondeductible expenses | (1.03%) | (1.75%) | 0.54% |
Foreign intellectual property tax benefit | 0.00% | 16.06% | (1.08%) |
Manufacturing benefit | (1.18%) | (0.00%) | (0.99%) |
Change in valuation allowance | (1.99%) | (35.61%) | 0.00% |
Changes to PY Accruals | (1.17%) | (4.01%) | 0.48% |
Deferred tax rate change | 0.66% | (20.66%) | 0.00% |
Change in Uncertain tax positions | (0.78%) | (25.59%) | 0.00% |
Interest on net equity | 1.02% | 3.15% | 0.00% |
Other | 0.44% | 4.53% | (1.81%) |
Effective tax rate | 16.78% | (53.31%) | 19.55% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Foreign tax credit carryforward | $ 2,918 | $ 3,094 |
Inventory | 28,181 | 20,816 |
Net operating losses | 4,899 | 5,380 |
Allowance for doubtful accounts | 1,729 | 1,200 |
Reserve for accrued liabilities | 3,357 | 3,177 |
Stock options | 3,908 | 3,553 |
Other | 1,003 | 1,811 |
Total deferred tax assets | 45,995 | 39,031 |
Valuation allowance | (31,833) | (29,539) |
Deferred tax liabilities: | ||
Property, plant and equipment | (6,601) | (2,618) |
Goodwill & Intangibles | (881) | (4,161) |
Other | (1,151) | (781) |
Total deferred tax | (8,633) | (7,560) |
Net deferred tax asset | $ 5,529 | $ 1,932 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Net operating loss carryforwards | $ 18,088 | |||
Valuation allowance | $ 31,833 | $ 29,539 | ||
Increase in provisional income tax rate | 13.70% | |||
Transition tax for accumulated foreign earnings | $ 15,800 | $ (15,800) | ||
Cash and cash equivalents tax rate | 15.50% | |||
All other earnings, tax rate | 8.00% | |||
Accrued income tax liabilities related to TCJA | $ 32,600 | |||
Provisional income tax expense | 1,600 | 13,600 | ||
Undistributed foreign earnings | 453,000 | |||
Uncertain tax positions | 18,648 | 18,323 | $ 5,151 | $ 0 |
Income tax penalties and interest accrued | 1,100 | 600 | 600 | |
Unrecognized tax benefits that would impact effective tax rate | 8,200 | |||
Income taxes paid | $ 3,800 | $ 8,400 | $ 23,000 |
Income Taxes - Schedule of Oper
Income Taxes - Schedule of Operating Loss Carryforward (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 18,088 |
2019-2024 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 2,258 |
2025-2031 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 10,990 |
2025-2031 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 2,431 |
Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 2,409 |
Income Taxes - Schedule of Unce
Income Taxes - Schedule of Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 18,323 | $ 5,151 | $ 0 |
Additions for tax positions related to the current year | 0 | 16,800 | 0 |
Additions for tax positions related to the prior year | 325 | 0 | 3,628 |
Additions related to acquisitions | 0 | 0 | 1,523 |
Settlements with tax authorities | 0 | (3,628) | 0 |
Ending balance | $ 18,648 | $ 18,323 | $ 5,151 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Payroll taxes | $ 6,227 | $ 6,591 |
Property, sales and other taxes | 7,898 | 8,340 |
Commissions payable | 5,248 | 408 |
Accrued vendor costs | 2,973 | 7,068 |
Accrued warranties | 1,868 | 1,535 |
Severance | 5,498 | 0 |
Other | 2,530 | 1,596 |
Total | $ 32,242 | $ 25,538 |
Employee Benefit Plans (Detail)
Employee Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |||
Employee benefit plans, contribution expense | $ 4.1 | $ 4.3 | $ 4.6 |
Asset Backed Loan (ABL) Credi_2
Asset Backed Loan (ABL) Credit Facility (Details) - ABL Credit Facility - Revolving Credit Facility | Feb. 23, 2018USD ($) | Sep. 30, 2018 | Dec. 31, 2018USD ($) |
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 | $ 52,200,000 | ||
Letters of credit outstanding | $ 1,700,000 | ||
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% |
Commitments and Contingencies (
Commitments and Contingencies (Detail) $ in Millions | 2 Months Ended | 12 Months Ended | |||
Jan. 31, 2011USD ($)assessment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | |
Commitments And Contingencies [Line Items] | |||||
Lease expense incurred | $ 5.4 | $ 6 | $ 5 | ||
2,019 | 2 | ||||
2,020 | 1.5 | ||||
2,021 | 0.8 | ||||
2,022 | 0.5 | ||||
2,023 | 0.4 | ||||
Thereafter | $ 4.2 | ||||
Brazil | |||||
Commitments And Contingencies [Line Items] | |||||
Number of tax assessments | assessment | 2 | ||||
Value of assessments served on Brazilian subsidiary | $ 13 | ||||
Court deposit | $ 8.8 | $ 8.8 |
Geographic Segments - Schedule
Geographic Segments - Schedule of Segment Reporting (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 97,335 | $ 93,257 | $ 94,861 | $ 99,173 | $ 107,973 | $ 100,346 | $ 127,922 | $ 119,228 | $ 384,626 | $ 455,469 | $ 538,731 |
Depreciation and amortization | 35,312 | 40,974 | 31,857 | ||||||||
Income (loss) before taxes | (114,989) | (65,644) | 115,868 | ||||||||
Total long-lived assets | 339,529 | 391,256 | 339,529 | 391,256 | |||||||
Total assets | 1,192,510 | 1,399,805 | 1,192,510 | 1,399,805 | |||||||
Intercompany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 17,411 | 29,107 | 46,075 | ||||||||
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (17,411) | (29,107) | (46,075) | ||||||||
Total long-lived assets | (395,938) | (414,814) | (395,938) | (414,814) | |||||||
Total assets | (458,682) | (416,170) | (458,682) | (416,170) | |||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 2,635 | 2,374 | 1,060 | ||||||||
Income (loss) before taxes | (102,538) | (53,852) | (48,967) | ||||||||
Western Hemisphere | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 249,885 | 309,689 | 361,565 | ||||||||
Western Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 23,314 | 30,441 | 21,396 | ||||||||
Income (loss) before taxes | (29,823) | (18,099) | 91,221 | ||||||||
Total long-lived assets | 412,624 | 482,636 | 412,624 | 482,636 | |||||||
Total assets | 708,723 | 877,779 | 708,723 | 877,779 | |||||||
Western Hemisphere | Intercompany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 13,343 | 27,554 | 43,856 | ||||||||
Western Hemisphere | Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eastern Hemisphere | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 107,055 | 98,483 | 142,017 | ||||||||
Eastern Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 4,578 | 4,096 | 4,965 | ||||||||
Income (loss) before taxes | 20,495 | 1,379 | 60,835 | ||||||||
Total long-lived assets | 256,899 | 264,828 | 256,899 | 264,828 | |||||||
Total assets | 788,171 | 752,967 | 788,171 | 752,967 | |||||||
Eastern Hemisphere | Intercompany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,010 | 772 | 337 | ||||||||
Eastern Hemisphere | Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Asia-Pacific | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 45,097 | 76,404 | 81,224 | ||||||||
Asia-Pacific | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 4,785 | 4,063 | 4,436 | ||||||||
Income (loss) before taxes | (3,123) | 4,928 | 12,779 | ||||||||
Total long-lived assets | 65,944 | 58,606 | 65,944 | 58,606 | |||||||
Total assets | $ 154,298 | $ 185,229 | 154,298 | 185,229 | |||||||
Asia-Pacific | Intercompany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,058 | 781 | 1,882 | ||||||||
Asia-Pacific | Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Products | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 265,052 | 351,132 | 433,012 | ||||||||
Products | Western Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 170,282 | 217,085 | 254,359 | ||||||||
Products | Eastern Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 71,719 | 69,664 | 106,862 | ||||||||
Products | Asia-Pacific | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 23,051 | 64,383 | 71,791 | ||||||||
Technical Advisory | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 56,615 | 50,925 | 46,331 | ||||||||
Technical Advisory | Western Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 29,973 | 28,053 | 22,554 | ||||||||
Technical Advisory | Eastern Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 16,499 | 15,313 | 19,568 | ||||||||
Technical Advisory | Asia-Pacific | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 10,143 | 7,559 | 4,209 | ||||||||
Reconditioning | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 15,799 | 11,020 | 17,763 | ||||||||
Reconditioning | Western Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 10,985 | 8,846 | 13,049 | ||||||||
Reconditioning | Eastern Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,188 | 1,958 | 4,116 | ||||||||
Reconditioning | Asia-Pacific | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,626 | 216 | 598 | ||||||||
Total Services (excluding rental tools) | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 72,414 | 61,945 | 64,094 | ||||||||
Total Services (excluding rental tools) | Western Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 40,958 | 36,899 | 35,603 | ||||||||
Total Services (excluding rental tools) | Eastern Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 19,687 | 17,271 | 23,684 | ||||||||
Total Services (excluding rental tools) | Asia-Pacific | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 11,769 | 7,775 | 4,807 | ||||||||
Leasing | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 47,160 | 42,392 | 41,625 | ||||||||
Leasing | Western Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 25,302 | 28,151 | 27,747 | ||||||||
Leasing | Eastern Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 13,639 | 10,776 | 11,134 | ||||||||
Leasing | Asia-Pacific | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 8,219 | 3,465 | 2,744 | ||||||||
Total Services (including rental tools) | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 119,574 | 104,337 | 105,719 | ||||||||
Total Services (including rental tools) | Western Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 66,260 | 65,050 | 63,350 | ||||||||
Total Services (including rental tools) | Eastern Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 33,326 | 28,047 | 34,818 | ||||||||
Total Services (including rental tools) | Asia-Pacific | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 19,988 | 11,240 | 7,551 | ||||||||
Transferred at Point in Time | Products | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 204,472 | 294,118 | 358,041 | ||||||||
Transferred at Point in Time | Products | Western Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 135,687 | 215,907 | 250,466 | ||||||||
Transferred at Point in Time | Products | Eastern Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 49,216 | 43,260 | 76,647 | ||||||||
Transferred at Point in Time | Products | Asia-Pacific | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 19,569 | 34,951 | 30,928 | ||||||||
Transferred over Time | Products | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 60,580 | 57,014 | 74,971 | ||||||||
Transferred over Time | Products | Western Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 34,595 | 1,178 | 3,893 | ||||||||
Transferred over Time | Products | Eastern Hemisphere | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 22,503 | 26,404 | 30,215 | ||||||||
Transferred over Time | Products | Asia-Pacific | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 3,482 | $ 29,432 | $ 40,863 |
Geographic Segments - Additiona
Geographic Segments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018SegmentLocation | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Number of geographic segments | Segment | 3 | ||
Number of headquarter locations | Location | 3 | ||
BP | Sales Revenue, Net | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 13.00% | ||
Chevron and Affiliated Companies | Sales Revenue, Net | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of revenue | 14.00% | 16.00% |
Stockholders' Equity (Detail)
Stockholders' Equity (Detail) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 | 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 _3
Stock-Based Compensation and Stock Awards - Stock Options - Additional Information (Detail) | May 13, 2004shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | May 12, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved (up to) (in shares) | 224,087 | 280,212 | |||
Granted (in shares) | 0 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Intrinsic value of stock options exercised | $ | $ 700,000 | $ 400,000 | $ 1,000,000 | ||
Income tax benefit realized from stock options exercised | $ | $ 157,442 | $ 153,759 | $ 357,000 | ||
Anti-dilutive awards (in shares) | 6,180 | 21,000 | 0 | ||
Stock-based compensation expense for stock option exercises | $ | $ 0 | $ 0 | $ 0 | ||
Capitalized expense | $ | 0 | $ 0 | $ 0 | ||
Unrecognized compensation expense related to share based compensation | $ | $ 0 | ||||
2004 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
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] | |||||
Common stock reserved (up to) (in shares) | 2,696,294 | ||||
Options granted period | 10 years | ||||
Vesting period (in years) | 4 years | ||||
2017 Plan | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved (up to) (in shares) | 1,500,000 | ||||
Granted (in shares) | 0 |
Stock-Based Compensation and _4
Stock-Based Compensation and Stock Awards - Schedule of Option Activity (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Number of Options | |
Options Outstanding, Beginning Balance (in shares) | shares | 280,212 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (35,375) |
Forfeited (in shares) | shares | (20,750) |
Options Outstanding, Ending Balance (in shares) | shares | 224,087 |
Options Exercisable (in shares) | shares | 224,087 |
Weighted Average Price | |
Weighted Average Price Outstanding, Beginning Balance (in dollars per share) | $ / shares | $ 59.84 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 31.59 |
Forfeited (in dollars per share) | $ / shares | 67.71 |
Weighted Average Price Outstanding, Ending Balance (in dollars per share) | $ / shares | 63.57 |
Weighted Average Price Exercisable (in dollars per share) | $ / shares | $ 63.57 |
Aggregate Intrinsic Value (in millions) | |
Aggregate intrinsic value Outstanding | $ | $ 0 |
Aggregate intrinsic value Exercisable | $ | $ 0 |
Weighted Average Remaining Contractual Life (in years) | |
Weighted Average Remaining Contractual Life Outstanding (in years) | 2 years 1 month 6 days |
Weighted Average Remaining Contractual Life Exercisable (in years) | 2 years 1 month 6 days |
Stock-Based Compensation and _5
Stock-Based Compensation and Stock Awards - Restricted Stock Awards - Additional Information (Detail) - Restricted Stock Awards - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Restricted stock awards compensation expense | $ 8.8 | $ 8.4 | $ 7.2 |
Income tax benefit recognized | 1.5 | $ 1.9 | $ 1.2 |
Unrecognized compensation expense related to share based compensation | $ 16.5 | ||
Period of recognition for unrecognized compensation expense related to nonvested stock options (in years) | 2 years 2 months 12 days | ||
Anti-dilutive awards (in shares) | 239,952 | 186,000 | 110,000 |
Stock-Based Compensation and _6
Stock-Based Compensation and Stock Awards - Summary of RSA Activity (Detail) - Restricted Stock Awards | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Restricted Stock | |
Nonvested options, Beginning Balance (in shares) | shares | 397,298 |
Granted (in shares) | shares | 197,380 |
Vested (in shares) | shares | (169,434) |
Forfeited (in shares) | shares | (22,065) |
Nonvested options, Ending Balance (in shares) | shares | 403,179 |
Weighted Average Grant Date Fair Value Per Unit | |
Nonvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 46.76 |
Granted (in dollars per share) | $ / shares | 41.93 |
Vested (in dollars per share) | $ / shares | 49.73 |
Forfeited (in dollars per share) | $ / shares | 46.17 |
Nonvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 43.18 |
Stock-Based Compensation and _7
Stock-Based Compensation and Stock Awards - Performance Unit Awards - Additional Information (Detail) - Performance Unit Awards $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)component$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date price (in dollars per share) | $ / shares | $ 43.09 | $ 41.50 | $ 48.45 |
Percentage of grant share price (as a percentage) | 126.80% | 131.70% | 110.30% |
Number of components companies in the Philadelphia Oil Service Index | component | 15 | ||
Performance unit compensation expense | $ 4.2 | $ 5.4 | $ 4.6 |
Income tax benefit recognized | 0.4 | $ 0.8 | $ 0.5 |
Unrecognized compensation expense related to share based compensation | $ 9.6 | ||
Period of recognition for unrecognized compensation expense related to nonvested stock options (in years) | 2 years 1 month 6 days | ||
Anti-dilutive performance share units (in shares) | shares | 169,354 | 160,000 | 64,000 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Participants earning under the term (as a percentage) | 0.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Participants earning under the term (as a percentage) | 200.00% |
Stock-Based Compensation and _8
Stock-Based Compensation and Stock Awards - Schedule of Assumptions Used in Monte Carlo Simulation (Detail) - Performance Unit Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility (as a percentage) | 32.60% | 34.00% | 32.50% |
Risk-free interest rate (as a percentage) | 2.90% | 1.70% | 1.00% |
Grant date price (in dollars per share) | $ 43.09 | $ 41.50 | $ 48.45 |
Stock-Based Compensation and _9
Stock-Based Compensation and Stock Awards - Summary of PSA Activity (Detail) - Performance Unit Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of shares | |||
Nonvested options, Beginning Balance (in shares) | 264,274 | ||
Granted (in shares) | 88,179 | ||
Vested (in shares) | (48,072) | ||
Forfeited (in shares) | (16,288) | ||
Nonvested options, Ending Balance (in shares) | 288,093 | 264,274 | |
Weighted Average Grant Date Fair Value Per Unit | |||
Nonvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ 59.97 | ||
Granted (in dollars per share) | 54.62 | $ 54.64 | $ 53.46 |
Vested (in dollars per share) | 79 | ||
Forfeited (in dollars per share) | 79 | ||
Nonvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ 54.22 | $ 59.97 |
Stock-Based Compensation and_10
Stock-Based Compensation and Stock Awards - Director Stock Compensation Awards - Additional Information (Detail) - DSA - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 460,884 | $ 462,968 | $ 405,000 | |
Income tax benefit recognized | 81,879 | $ 115,002 | $ 19,000 | |
Unrecognized compensation expense related to share based compensation | $ 291,168 | |||
Period of recognition for unrecognized compensation expense related to nonvested stock options (in years) | 1 year | |||
Anti-dilutive awards (in shares) | 9,291 |
Stock-Based Compensation and_11
Stock-Based Compensation and Stock Awards - Schedule of DSA Activity (Detail) - DSA | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of shares | |
Nonvested options, Beginning Balance (in shares) | shares | 17,514 |
Granted (in shares) | shares | 9,539 |
Vested (in shares) | shares | (8,174) |
Forfeited (in shares) | shares | 0 |
Nonvested options, Ending Balance (in shares) | shares | 18,879 |
Weighted Average Grant Date Fair Value Per Unit | |
Nonvested Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 54.80 |
Granted (in dollars per share) | $ / shares | 48.32 |
Vested (in dollars per share) | $ / shares | 58.47 |
Forfeited (in dollars per share) | $ / shares | 0 |
Nonvested Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 49.93 |
Stock-Based Compensation and_12
Stock-Based Compensation and Stock Awards - Schedule of Information for Stock Option Plans (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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) | 224,087 | |
Weighted-average exercise price of outstanding options (in dollars per share) | $ 63.57 | |
Number of securities remaining available for future issuance under equity compensation plan (in shares) | 1,279,330 | |
RSA and DSA | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units (in shares) | 422,058 | |
Performance Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units (in shares) | 288,093 | 264,274 |
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) | 224,087 | |
Weighted-average exercise price of outstanding options (in dollars per share) | $ 63.57 | |
Number of securities remaining available for future issuance under equity compensation plan (in shares) | 1,279,330 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ (74,912) | $ (10,358) | $ (3,042) | $ (7,383) | $ (71,488) | $ (29,260) | $ 15 | $ 94 | $ (95,695) | $ (100,639) | $ 93,221 |
Weighted average basic common shares outstanding (in shares) | 37,075 | 37,457 | 37,537 | ||||||||
Effect of dilutive securities-stock options and awards (in shares) | 0 | 0 | 130 | ||||||||
Total shares and dilutive securities (in shares) | 37,075 | 37,457 | 37,667 | ||||||||
Basic earnings per common share (in dollars per share) | $ (2.09) | $ (0.28) | $ (0.08) | $ (0.20) | $ 0.03 | $ (0.78) | $ 0 | $ 0 | $ (2.58) | $ (2.69) | $ 2.48 |
Diluted earnings per common share (in dollars per share) | $ (2.09) | $ (0.28) | $ (0.08) | $ (0.20) | $ 0.03 | $ (0.78) | $ 0 | $ 0 | $ (2.58) | $ (2.69) | $ 2.47 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Director stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 9,000 | 8,000 | 2,000 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 6,180 | 21,000 | 0 |
Performance Unit Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 169,354 | 160,000 | 64,000 |
Restricted Stock Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive performance share units (in shares) | 239,952 | 186,000 | 110,000 |
Stock Repurchase Plan (Detail)
Stock Repurchase Plan (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 26, 2016 | Feb. 26, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchased and canceled (in shares) | 0 | ||||
Stock repurchased and canceled | $ 100,000,000 | $ 24,234,000 | |||
2015 Stock Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase plan (up to) | $ 100,000,000 | ||||
Stock repurchased and canceled (in shares) | 400,500 | ||||
Stock repurchased and canceled | $ 24,200,000 | ||||
2016 Stock Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase plan (up to) | $ 100,000,000 | ||||
Stock repurchased and canceled (in shares) | 1,991,206 | ||||
Stock repurchased and canceled | $ 100,000,000 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 97,335 | $ 93,257 | $ 94,861 | $ 99,173 | $ 107,973 | $ 100,346 | $ 127,922 | $ 119,228 | $ 384,626 | $ 455,469 | $ 538,731 |
Cost of sales | 68,675 | 65,630 | 69,444 | 67,750 | 72,355 | 63,050 | 87,549 | 82,440 | 271,499 | 305,394 | 328,404 |
Gross profit | 28,660 | 27,627 | 25,417 | 31,423 | 35,618 | 37,296 | 40,373 | 36,788 | |||
Operating income (loss) | (98,826) | (14,084) | (3,551) | (6,277) | (5,107) | (62,045) | (1,114) | (870) | (122,738) | (69,136) | 112,859 |
Net income (loss) | $ (74,912) | $ (10,358) | $ (3,042) | $ (7,383) | $ (71,488) | $ (29,260) | $ 15 | $ 94 | $ (95,695) | $ (100,639) | $ 93,221 |
Earnings (loss) per share: | |||||||||||
Basic (in dollars per share) | $ (2.09) | $ (0.28) | $ (0.08) | $ (0.20) | $ 0.03 | $ (0.78) | $ 0 | $ 0 | $ (2.58) | $ (2.69) | $ 2.48 |
Diluted (in dollars per share) | $ (2.09) | $ (0.28) | $ (0.08) | $ (0.20) | $ 0.03 | $ (0.78) | $ 0 | $ 0 | $ (2.58) | $ (2.69) | $ 2.47 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Feb. 26, 2019USD ($) |
Subsequent Event [Line Items] | |
Stock repurchase plan (up to) | $ 100,000,000 |
Repurchases made | $ 0 |
Schedule II_Valuation and Qua_2
Schedule II—Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for doubtful trade receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 4,519 | $ 5,570 | $ 7,739 |
Charges to costs and expenses | 3,794 | 1,709 | 1,259 |
Recoveries and write offs | (2,647) | (2,760) | (3,428) |
Balance at end of period | 5,666 | 4,519 | 5,570 |
Allowance for excess and slow moving inventory | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 83,566 | 45,648 | 39,247 |
Charges to costs and expenses | 34,155 | 32,204 | 5,748 |
Recoveries and write offs | (9,154) | 5,714 | 653 |
Balance at end of period | $ 108,567 | $ 83,566 | $ 45,648 |
Uncategorized Items - drq-20181
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,683,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,683,000 |