Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 21, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'DRQ | ' | ' |
Entity Registrant Name | 'DRIL-QUIP INC | ' | ' |
Entity Central Index Key | '0001042893 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 40,676,124 | ' |
Entity Public Float | ' | ' | $3,652,000,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Products | $731,617 | $610,218 | $511,650 |
Services | 140,755 | 122,813 | 89,692 |
Total revenues | 872,372 | 733,031 | 601,342 |
Cost and expenses: | ' | ' | ' |
Products | 436,359 | 384,513 | 303,995 |
Services | 77,547 | 67,153 | 57,853 |
Total cost of sales | 513,906 | 451,666 | 361,848 |
Selling, general and administrative | 94,806 | 82,218 | 70,510 |
Engineering and product development | 40,115 | 37,455 | 34,626 |
Special items | ' | ' | 4,719 |
Total costs and expenses | 648,827 | 571,339 | 471,703 |
Operating income | 223,545 | 161,692 | 129,639 |
Interest income | 587 | 462 | 418 |
Interest expense | -35 | -32 | -53 |
Income before income taxes | 224,097 | 162,122 | 130,004 |
Income tax provision | 54,270 | 42,913 | 34,737 |
Net income | $169,827 | $119,209 | $95,267 |
Earnings per common share: | ' | ' | ' |
Basic | $4.18 | $2.96 | $2.38 |
Diluted | $4.16 | $2.94 | $2.36 |
Weighted average common shares outstanding: | ' | ' | ' |
Basic | 40,648 | 40,332 | 40,071 |
Diluted | 40,865 | 40,523 | 40,322 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $47,063 | $39,995 | $42,927 | $39,842 | $30,952 | $29,657 | $29,803 | $28,797 | $169,827 | $119,209 | $95,267 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | ' | ' | ' | ' | ' | ' | ' | ' | -6,340 | 4,613 | -9,126 |
Total comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | $163,487 | $123,822 | $86,141 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $384,356 | $257,191 |
Trade receivables, net | 279,253 | 263,213 |
Inventories, net | 368,354 | 362,181 |
Deferred income taxes | 24,951 | 23,838 |
Prepaids and other current assets | 21,899 | 17,965 |
Total current assets | 1,078,813 | 924,388 |
Property, plant and equipment, net | 304,806 | 295,982 |
Other assets | 10,993 | 11,077 |
Total assets | 1,394,612 | 1,231,447 |
Current liabilities: | ' | ' |
Accounts payable | 38,801 | 28,302 |
Accrued income taxes | 13,628 | 5,604 |
Customer prepayments | 45,025 | 86,313 |
Accrued compensation | 21,556 | 14,620 |
Other accrued liabilities | 23,780 | 20,250 |
Total current liabilities | 142,790 | 155,089 |
Deferred income taxes | 9,804 | 9,926 |
Total liabilities | 152,594 | 165,015 |
Commitments and contingencies (Note 9) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock: 10,000,000 shares authorized at $0.01 par value (none issued) | ' | ' |
Common stock: 50,000,000 shares authorized at $0.01 par value, 40,673,874 and 40,475,061 issued and outstanding at December 31, 2013 and 2012 | 407 | 405 |
Additional paid-in capital | 191,965 | 179,868 |
Retained earnings | 1,069,816 | 899,989 |
Accumulated other comprehensive losses | -20,170 | -13,830 |
Total stockholders' equity | 1,242,018 | 1,066,432 |
Total liabilities and stockholders' equity | $1,394,612 | $1,231,447 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 40,673,874 | 40,475,061 |
Common stock, shares outstanding | 40,673,874 | 40,475,061 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities | ' | ' | ' |
Net income | $169,827 | $119,209 | $95,267 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 29,340 | 26,224 | 23,013 |
Stock-based compensation expense | 8,900 | 5,748 | 4,542 |
Loss (gain) on sale of equipment | 124 | 239 | -116 |
Deferred income taxes | -1,235 | 338 | -1,512 |
Special items-non-cash | ' | ' | 1,351 |
Changes in operating assets and liabilities: | ' | ' | ' |
Trade receivables, net | -17,250 | -81,566 | -22,699 |
Inventories, net | -10,562 | -81,884 | -37,490 |
Prepaids and other assets | -5,447 | 895 | -1,192 |
Excess tax benefits of stock options and awards | -2,863 | -1,487 | -1,172 |
Accounts payable and accrued expenses | -8,605 | 4,125 | 41,862 |
Net cash provided by (used in) operating activities | 162,229 | -8,159 | 101,854 |
Investing activities | ' | ' | ' |
Purchase of property, plant, and equipment | -42,633 | -50,773 | -56,213 |
Proceeds from sale of equipment | 760 | 1,774 | 2,026 |
Net cash used in investing activities | -41,873 | -48,999 | -54,187 |
Financing activities | ' | ' | ' |
Repurchase of common stock | -10,002 | ' | ' |
Principal payments on debt | ' | -39 | -269 |
Proceeds from exercise of stock options | 10,506 | 10,809 | 4,195 |
Excess tax benefits of stock options and awards | 2,863 | 1,487 | 1,172 |
Net cash provided by financing activities | 3,367 | 12,257 | 5,098 |
Effect of exchange rate changes on cash | 3,442 | 3,516 | -39 |
Increase (decrease) in cash and cash equivalents | 127,165 | -41,385 | 52,726 |
Cash and cash equivalents at beginning of year | 257,191 | 298,576 | 245,850 |
Cash and cash equivalents at end of year | $384,356 | $257,191 | $298,576 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | |||||
Balance at Dec. 31, 2010 | $828,014 | $400 | $151,418 | $685,513 | ($9,317) |
Foreign currency translation adjustment | -9,126 | ' | ' | ' | -9,126 |
Net income | 95,267 | ' | ' | 95,267 | ' |
Comprehensive income | 86,141 | ' | ' | ' | ' |
Options exercised and awards vested | 4,195 | 2 | 4,193 | ' | ' |
Stock-based compensation | 4,542 | ' | 4,544 | ' | ' |
Special items-stock-based compensation | 1,351 | ' | 1,351 | ' | ' |
Excess tax benefits-stock options and awards | 999 | ' | 999 | ' | ' |
Balance at Dec. 31, 2011 | 925,244 | 402 | 162,505 | 780,780 | -18,443 |
Foreign currency translation adjustment | 4,613 | ' | ' | ' | 4,613 |
Net income | 119,209 | ' | ' | 119,209 | ' |
Comprehensive income | 123,822 | ' | ' | ' | ' |
Options exercised and awards vested | 10,809 | 3 | 10,806 | ' | ' |
Stock-based compensation | 5,748 | ' | 5,750 | ' | ' |
Excess tax benefits-stock options and awards | 807 | ' | 807 | ' | ' |
Balance at Dec. 31, 2012 | 1,066,432 | 405 | 179,868 | 899,989 | -13,830 |
Foreign currency translation adjustment | -6,340 | ' | ' | ' | -6,340 |
Net income | 169,827 | ' | ' | 169,827 | ' |
Comprehensive income | 163,487 | ' | ' | ' | ' |
Options exercised and awards vested | 10,506 | 3 | 10,503 | ' | ' |
Stock-based compensation | 8,900 | ' | 8,900 | ' | ' |
Excess tax benefits-stock options and awards | 2,695 | ' | 2,695 | ' | ' |
Treasury stock | -10,002 | -1 | -10,001 | ' | ' |
Balance at Dec. 31, 2013 | $1,242,018 | $407 | $191,965 | $1,069,816 | ($20,170) |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Stockholders Equity [Abstract] | ' | ' | ' |
Options exercised and awards vested in shares | 284,653 | 299,635 | 133,680 |
Treasury stock shares | 85,840 | ' | ' |
Organization
Organization | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Organization | ' |
1. Organization | |
Dril-Quip, Inc., a Delaware corporation (the “Company” or “Dril-Quip”), designs, manufactures, sells and services highly engineered offshore drilling and production equipment that is well suited 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 and diverters. Dril-Quip’s products are used by major integrated, large independent and foreign national oil and gas companies in offshore areas 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 headquarter locations as well as in Macae, Brazil. The Company’s major subsidiaries are Dril-Quip (Europe) Limited (DQE), located in Aberdeen with branches in Denmark, Norway and Holland; Dril-Quip Asia Pacific PTE Ltd. (DQAP), located in Singapore; Dril-Quip do Brasil LTDA (DQB), located in Macae, Brazil; and DQ Holdings Pty Ltd. (DQH), located in Perth, Australia. Other subsidiaries include Dril-Quip (Ghana) Ltd. located in Takoradi, Ghana, PT DQ Oilfield Services Indonesia located in Jakarta, Indonesia, Dril-Quip (Nigeria) Ltd. located in Port Harcourt, Nigeria, DQ Egypt for Petroleum Services S.A.E. located in Alexandria, Egypt, Dril-Quip Oilfield Services (Tianjin) Co. Ltd. located in Tianjin, China and the Company’s newest subsidiary, Dril-Quip Qatar, LLC located in Doha, Qatar. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Significant Accounting Policies | ' | ||||
2. Significant Accounting Policies | |||||
Principles of Consolidation | |||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. | |||||
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. The following is a summary of activity relating to the allowance for doubtful accounts for the years ended December 31, 2011, 2012 and 2013: | |||||
In thousands | |||||
Balance at December 31, 2010 | $ | 1,451 | |||
Charges to costs and expenses | 410 | ||||
Recoveries/write-offs | (701 | ) | |||
Balance at December 31, 2011 | 1,160 | ||||
Charges to costs and expenses | 1,469 | ||||
Recoveries/write-offs | (516 | ) | |||
Balance at December 31, 2012 | 2,113 | ||||
Charges to costs and expenses | 910 | ||||
Recoveries/write-offs | (659 | ) | |||
Balance at December 31, 2013 | $ | 2,364 | |||
Inventories | |||||
Inventory costs are determined principally by the use of the first-in, first-out (FIFO) costing method and are stated at the lower of cost or market. Company manufactured inventory is valued principally using standard costs, which are calculated based upon direct costs incurred and overhead allocations. Inventory purchased from third party vendors is principally valued at the weighted average cost. Periodically, obsolescence reviews are performed on slow-moving inventories and reserves are established based on current assessments about future demands and market conditions. The inventory values have been reduced by a reserve for excess and slow-moving inventories. Inventory reserves of $33.2 million and $30.4 million were recorded as of December 31, 2013 and 2012, 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. | |||||
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. No impairments of long-lived assets were recorded in 2013, 2012 or 2011. | |||||
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. | |||||
Revenue Recognition | |||||
Product Revenue | |||||
The Company recognizes product revenues from two methods: | |||||
• | product revenues recognized under the percentage-of-completion method; and | ||||
• | product revenues from the sale of products that do not qualify for the percentage-of-completion method. | ||||
Revenues recognized under the percentage-of-completion method | |||||
The Company uses the percentage-of-completion method on long-term project contracts that have the following characteristics: | |||||
• | The contracts call for products which are designed to customer specifications; | ||||
• | The structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration; | ||||
• | The contracts contain specific terms as to milestones, progress billings and delivery dates; and | ||||
• | Product requirements cannot be filled directly from the Company’s standard inventory. | ||||
For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percent complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. | |||||
Under the percentage-of-completion method, billings do not always 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, 2013 and 2012, receivables included $52.9 million and $62.1 million of unbilled receivables, respectively. For the year ended December 31, 2013, there were 21 projects representing approximately 15% of the Company’s total revenues and approximately 18% of its product revenues that were accounted for using percentage-of-completion accounting, and 21 projects during 2012 which represented 20% of the Company’s total revenue and 24% of its product revenues. | |||||
Revenues not recognized under the percentage-of-completion method | |||||
Revenues from the sale of inventory products, not accounted for under the percentage-of-completion method, are recorded at the time the manufacturing processes are complete and ownership is transferred to the customer. | |||||
Service revenue | |||||
The Company earns service revenues from three sources: | |||||
• | technical advisory assistance; | ||||
• | rental of running tools; and | ||||
• | rework and reconditioning of customer owned Dril-Quip products. | ||||
The Company does not install products for its customers, but it does provide technical advisory assistance. At the time of delivery of the product, the customer is not obligated to buy or rent the Company’s running tools and the Company is not obligated to perform any subsequent services relating to installation. Technical advisory assistance service revenue is recorded at the time the service is rendered. Service revenues associated with the rental of running and installation tools are recorded as earned. Rework and reconditioning service revenues are recorded when the refurbishment process is complete. | |||||
The Company normally negotiates contracts for products, including those accounted for under the percentage-of-completion method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory services. The customer may use a third party or their own personnel. | |||||
Foreign Currency | |||||
The financial statements of foreign subsidiaries are translated into U.S. dollars at period-end exchange rates except for revenues and expenses, which are translated at average monthly rates. Translation adjustments are reflected as a separate component of stockholders’ equity and have no effect on current earnings or cash flows. | |||||
Foreign currency exchange transactions are recorded using the exchange rate at the date of the settlement. Exchange losses were approximately $4.6 million in 2013, $3.8 million in 2012, and $2.5 million in 2011, 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 such 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 share are computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share are 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, 2013 | |
Accounting Changes And Error Corrections [Abstract] | ' |
New Accounting Standards | ' |
3. New Accounting Standards | |
None. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
4. Inventories | |||||||||
Inventories consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Raw materials and supplies | $ | 85,670 | $ | 86,007 | |||||
Work in progress | 119,929 | 97,379 | |||||||
Finished goods | 195,971 | 209,221 | |||||||
401,570 | 392,607 | ||||||||
Less: allowance for obsolete and excess inventory | (33,216 | ) | (30,426 | ) | |||||
Total inventory | $ | 368,354 | $ | 362,181 | |||||
Summary of allowance for excess and slow-moving inventory: | |||||||||
In thousands | |||||||||
Balance at December 31, 2010 | $ | 24,948 | |||||||
Charges to costs and expenses | 2,888 | ||||||||
Write-offs of inventory | (1,608 | ) | |||||||
Balance at December 31, 2011 | 26,228 | ||||||||
Charges to costs and expenses | 4,651 | ||||||||
Write-offs of inventory | (453 | ) | |||||||
Balance at December 31, 2012 | 30,426 | ||||||||
Charges to costs and expenses | 3,554 | ||||||||
Write-offs of inventory | (764 | ) | |||||||
Balance at December 31, 2013 | $ | 33,216 | |||||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
5. Property, Plant and Equipment | |||||||||||||
Property, plant and equipment consists of: | |||||||||||||
Estimated | December 31, | ||||||||||||
Useful Lives | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Land and improvements | 10-25 years | $ | 26,927 | $ | 26,650 | ||||||||
Buildings | 15-40 years | 192,024 | 185,559 | ||||||||||
Machinery, equipment and other | 3-10 years | 313,772 | 288,829 | ||||||||||
532,723 | 501,038 | ||||||||||||
Less accumulated depreciation | (227,917 | ) | (205,056 | ) | |||||||||
Total property, plant and equipment | $ | 304,806 | $ | 295,982 | |||||||||
Depreciation expense for 2013 totaled $29.3 million compared to $26.2 million in 2012. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
6. Income Taxes | |||||||||||||
The Company is required to recognize the impact of a tax position that is more likely than not to be sustained upon examination based upon the technical merits of the position, including resolution of any appeals. Based on the Company’s evaluation, the Company has concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. The evaluation was performed for the tax years which remain subject to examination by major tax jurisdictions as of December 31, 2013, which are the years ended December 31, 2007 through December 31, 2013. The Company has occasionally been assessed interest or penalties by major tax jurisdictions; these assessments historically have not materially impacted the Company’s financial results. Interest expense assessed by tax jurisdictions is included with interest expense and assessed penalties are included in selling, general and administrative expenses. | |||||||||||||
The Company evaluates uncertain tax positions for recognition and measurement in the consolidated financial statements. To recognize a tax position, the Company determines whether it is more likely than not that the tax positions will be sustained upon examination, including resolution of any related appeals or litigation, based on the technical merits of the position. A tax position that meets the more likely than not threshold is measured to determine the amount of benefit to be recognized in the consolidated financial statements. The amount of tax benefit recognized with respect to any tax position is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. The Company had no uncertain tax positions that required recognition in the consolidated financial statements at December 31, 2013 and 2012. If it is more likely than not that the related tax benefits will not be realized, a valuation allowance would be established to reduce deferred tax assets. As of December 31, 2013 and 2012, the Company determined that a valuation allowance was not necessary. | |||||||||||||
Income before income taxes consisted of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Domestic | $ | 98,883 | $ | 65,271 | $ | 45,159 | |||||||
Foreign | 125,214 | 96,851 | 84,845 | ||||||||||
Total | $ | 224,097 | $ | 162,122 | $ | 130,004 | |||||||
The income tax provision (benefit) consists of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 30,962 | $ | 20,033 | $ | 13,127 | |||||||
Foreign | 24,543 | 22,542 | 23,122 | ||||||||||
Total current | 55,505 | 42,575 | 36,249 | ||||||||||
Deferred: | |||||||||||||
Federal | (1,299 | ) | 440 | (891 | ) | ||||||||
Foreign | 64 | (102 | ) | (621 | ) | ||||||||
Total deferred | (1,235 | ) | 338 | (1,512 | ) | ||||||||
Total | $ | 54,270 | $ | 42,913 | $ | 34,737 | |||||||
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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income tax statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Foreign income tax rate differential | (6.0 | ) | (5.5 | ) | (5.2 | ) | |||||||
Foreign development tax incentive | (2.6 | ) | (1.6 | ) | (0.3 | ) | |||||||
Manufacturing benefit | (1.4 | ) | (1.2 | ) | (1.3 | ) | |||||||
Other | (0.8 | ) | (0.3 | ) | (1.5 | ) | |||||||
Effective income tax rate | 24.2 | % | 26.4 | % | 26.7 | % | |||||||
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. Based upon existing market conditions and the Company’s earnings prospects, it is anticipated that all deferred tax assets will be realized in future years. Significant components of the Company’s deferred tax assets and liabilities are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Inventory | $ | 9,086 | $ | 9,846 | |||||||||
Inventory reserve | 7,807 | 7,079 | |||||||||||
Allowance for doubtful accounts | 396 | 430 | |||||||||||
Reserve for accrued liabilities | 370 | 183 | |||||||||||
Stock options | 4,323 | 4,242 | |||||||||||
Other | 2,969 | 2,058 | |||||||||||
Total deferred tax assets | 24,951 | 23,838 | |||||||||||
Deferred tax liability: | |||||||||||||
Property, plant and equipment | (9,804 | ) | (9,926 | ) | |||||||||
Net deferred tax asset | $ | 15,147 | $ | 13,912 | |||||||||
Undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested and, accordingly, no provision for U.S. federal income taxes has been provided thereon. The estimate of undistributed earnings of the Company’s foreign subsidiaries amounted to $547 million as of December 31, 2013. Upon distribution of those earnings in the form of dividends or otherwise, the Company may be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable. | |||||||||||||
On January 2, 2013, the “American Taxpayer Relief Act of 2012” extended the Research and Development tax credit retroactive to January 1, 2012 and was extended through December 31, 2013. The Research and Development credit for 2012 of $1.2 million was recognized on the Company’s 2012 U.S. federal income tax return but was recorded for financial statement purposes in the first quarter of 2013 in accordance with ASC 740. | |||||||||||||
The Company paid $41.0 million, $37.9 million and $31.9 million in income taxes in 2013, 2012 and 2011, respectively. |
Other_Accrued_Liabilities
Other Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Other Accrued Liabilities | ' | ||||||||
7. Other Accrued Liabilities | |||||||||
Other accrued liabilities consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Payroll taxes | $ | 3,559 | $ | 2,933 | |||||
Property, sales and other taxes | 6,398 | 5,166 | |||||||
Commissions payable | 2,160 | 1,497 | |||||||
Accrued vendor costs | 7,384 | 7,013 | |||||||
Other | 4,279 | 3,641 | |||||||
Total | $ | 23,780 | $ | 20,250 | |||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Postemployment Benefits [Abstract] | ' |
Employee Benefit Plans | ' |
8. 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 $4.9 million, $4.4 million and $4.0 million in 2013, 2012 and 2011, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
9. Commitments and Contingencies | |
The Company leases certain offices, shop and warehouse facilities, automobiles and equipment. Total lease expense incurred was $3.5 million, $2.9 million and $3.7 million in 2013, 2012 and 2011, respectively. Future annual minimum lease commitments at December 31, 2013 are as follows: 2014—$1,703,000; 2015—$914,000; 2016—$598,000, 2017—$484,000; 2018—$441,000; and thereafter—$5.6 million. | |
Deepwater Horizon Incident | |
On April 22, 2010, a deepwater U.S. Gulf of Mexico drilling rig known as the Deepwater Horizon, operated by BP, sank after an explosion and fire that began on April 20, 2010. The Company was named, along with other unaffiliated defendants, in both class action and other lawsuits arising from the Deepwater Horizon incident. In 2012, the judge presiding over various lawsuits and proceedings dismissed all claims asserted against the Company in those proceedings with prejudice. On April 9, 2012, the judge issued an order granting a final judgment in favor of the Company with respect to the court’s prior order that granted the Company’s Motion for Summary Judgment. | |
One of the lawsuits against the Company consolidated in the MDL Proceeding was a personal injury lawsuit initially filed in a Texas state court. The plaintiff has filed a motion to remand the lawsuit back to the Texas state court. If the lawsuit is remanded to the Texas state court, the Company intends to vigorously defend that lawsuit and does not believe it will have a material adverse impact on its results of operations. Accordingly, no liability has been accrued in conjunction with this matter. Additional lawsuits may be filed and additional investigations may be launched in the future. An adverse outcome with respect to any of these lawsuits or investigations, or any lawsuits or investigations that may arise in the future, could have a material adverse effect on the Company’s results of operations. The Company intends to continue to vigorously defend any litigation, fine and/or penalty relating to the Deepwater Horizon incident. The Company does not believe this litigation will have a material impact on its results of operations and accordingly, no liability has been accrued in conjunction with these matters. | |
At the time of the Deepwater Horizon incident, the Company had a general liability insurance program with an aggregate coverage limit of $100 million for claims with respect to property damage, injury or death and pollution. The coverage was increased to $200 million in October 2010. The insurance policies may not cover all potential claims and expenses relating to the Deepwater Horizon incident. In addition, the Company’s policies may not cover fines, penalties or costs and expenses related to government-mandated cleanup of pollution. The Company may experience further tightening of the availability of insurance coverage. If liability limits are increased or the insurance market becomes more restricted, the risks and costs of conducting offshore exploration and development activities may increase, which could materially impact the Company’s results of operations. | |
Brazilian Tax Issue | |
From 2002 to 2007, the Company’s Brazilian subsidiary imported goods through the State of Espirito Santo in Brazil and subsequently transferred them to its facility in the State of Rio de Janeiro. During that period, the Company’s Brazilian subsidiary paid taxes to the State of Espirito Santo on its imports. Upon the final sale of these goods, the Company’s Brazilian subsidiary collected taxes from customers and remitted them to the State of Rio de Janeiro net of the taxes paid on importation of those goods to the State of Espirito Santo in accordance with the Company’s understanding of Brazilian tax laws. | |
In August 2007, the State of Rio de Janeiro served the Company’s Brazilian subsidiary with assessments to collect a state tax on the importation of goods through the State of Espirito Santo from 2002 to 2007 claiming that these taxes were due and payable to it under applicable law. The Company settled these assessments with payments to the State of Rio de Janeiro of $12.2 million in March 2010 and $3.9 million in December 2010. Approximately $7.8 million of these settlement payments were attributable to penalties, interest and amounts that had expired under the statute of limitations so that amount was recorded as an expense. The remainder of the settlement payments generated credits (recorded as a prepaid tax) that can be used to offset future state taxes on sales to customers in the State of Rio de Janeiro once certified by the tax authorities under a process that is currently ongoing. When the credits are certified, the Company will have a five-year period in which to utilize them. In December 2010 and January 2011, the Company’s Brazilian subsidiary was served with additional assessments totaling approximately $13.0 million from the State of Rio de Janeiro to cancel the credits associated with the tax payments to the State of Espirito Santo (“Santo Credits”) on the importation of goods from July 2005 to October 2007. The Santo Credits are not related to the credits described in the immediately preceding paragraph. The Company has objected to this assessment as it 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 believes that these credits are valid and that success in the matter is probable. Based upon this analysis the Company has not accrued any liability in conjunction with this matter. | |
Since 2007, the Company’s Brazilian subsidiary has paid taxes on the importation of goods directly to the State of Rio de Janeiro and the Company does not expect any similar issues to exist for periods subsequent to 2007. | |
General | |
The Company operates its business and markets its products and services in most of the significant oil and gas producing areas in the world and is, therefore, subject to the risks customarily attendant to international operations and dependency on the condition of the oil and gas industry. Additionally, products of the Company are used in potentially hazardous drilling, completion, and production applications that can cause personal injury, product liability, and environmental claims. Although exposure to such risk has not resulted in any significant problems in the past, there can be no assurance that ongoing and future developments will not adversely impact the Company. | |
The Company is also involved in a number of legal actions arising in the ordinary course of business. Although no assurance can be given with respect to the ultimate outcome of such legal action, in the opinion of management, the ultimate liability with respect thereto will not have a material adverse effect on the Company’s operations, comprehensive income, financial position or cash flows. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Stockholders' Equity | ' |
10. Stockholders’ Equity | |
Under a Stockholder Rights Plan adopted by the Board of Directors on November 24, 2008, each share of common stock includes one right 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 at a specific purchase price per Fractional Share, subject to adjustment in certain events. The rights will cause substantial dilution to any person or group that attempts to acquire the Company without the approval of the Company’s Board of Directors. |
Geographic_Areas
Geographic Areas | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Geographic Areas | ' | ||||||||||||
11. Geographic Areas | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Western Hemisphere | |||||||||||||
Products | $ | 420,439 | $ | 298,853 | $ | 265,029 | |||||||
Services | 72,328 | 68,938 | 37,531 | ||||||||||
Intercompany | 51,767 | 65,803 | 73,290 | ||||||||||
Total | $ | 544,534 | $ | 433,594 | $ | 375,850 | |||||||
Eastern Hemisphere | |||||||||||||
Products | $ | 186,074 | $ | 196,328 | $ | 164,135 | |||||||
Services | 46,653 | 37,307 | 33,320 | ||||||||||
Intercompany | 1,254 | 4,065 | 3,680 | ||||||||||
Total | $ | 233,981 | $ | 237,700 | $ | 201,135 | |||||||
Asia-Pacific | |||||||||||||
Products | $ | 125,104 | $ | 115,037 | $ | 82,486 | |||||||
Services | 21,774 | 16,568 | 18,841 | ||||||||||
Intercompany | 9,155 | 968 | 3,026 | ||||||||||
Total | $ | 156,033 | $ | 132,573 | $ | 104,353 | |||||||
Summary | |||||||||||||
Products | $ | 731,617 | $ | 610,218 | $ | 511,650 | |||||||
Services | 140,755 | 122,813 | 89,692 | ||||||||||
Intercompany | 62,176 | 70,836 | 79,996 | ||||||||||
Eliminations | (62,176 | ) | (70,836 | ) | (79,996 | ) | |||||||
Total | $ | 872,372 | $ | 733,031 | $ | 601,342 | |||||||
Income before income taxes | |||||||||||||
Western Hemisphere | $ | 111,498 | $ | 76,771 | $ | 66,782 | |||||||
Eastern Hemisphere | 49,672 | 44,904 | 41,453 | ||||||||||
Asia-Pacific | 55,136 | 33,478 | 22,891 | ||||||||||
Eliminations | 7,791 | 6,969 | (1,122 | ) | |||||||||
Total | $ | 224,097 | $ | 162,122 | $ | 130,004 | |||||||
Total Long-Lived Assets: | |||||||||||||
Western Hemisphere | $ | 216,104 | $ | 215,340 | $ | 196,380 | |||||||
Eastern Hemisphere | 43,430 | 36,194 | 34,927 | ||||||||||
Asia-Pacific | 59,192 | 58,484 | 58,058 | ||||||||||
Eliminations | (2,927 | ) | (2,959 | ) | (2,809 | ) | |||||||
Total | $ | 315,799 | $ | 307,059 | $ | 286,556 | |||||||
Total Assets: | |||||||||||||
Western Hemisphere | $ | 803,069 | $ | 727,242 | $ | 666,915 | |||||||
Eastern Hemisphere | 316,473 | 275,868 | 229,043 | ||||||||||
Asia-Pacific | 292,600 | 261,319 | 209,143 | ||||||||||
Eliminations | (17,530 | ) | (32,982 | ) | (19,243 | ) | |||||||
Total | $ | 1,394,612 | $ | 1,231,447 | $ | 1,085,858 | |||||||
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 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. | |||||||||||||
In 2013 Petrobras accounted for approximately 11% of the Company’s total revenues. In 2012 and 2011, Petrobras accounted for approximately 12% and 15% respectively, of the Company’s revenues. No other customer accounted for more than 10% of the Company’s total revenues in 2013, 2012 or 2011. |
StockBased_Compensation_and_St
Stock-Based Compensation and Stock Awards | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation and Stock Awards | ' | ||||||||||||||||
12. Stock-Based Compensation and Stock Awards | |||||||||||||||||
Stock Options | |||||||||||||||||
On September 19, 1997, the Company adopted the Dril-Quip, Inc. 1997 Incentive Plan (as amended, the “1997 Plan”) and the Company reserved 3,400,000 shares of Common Stock for use in connection with the 1997 Plan. During 2001, the Company reserved an additional 1,400,000 shares for use in connection with the 1997 Plan. There are no options that remain outstanding under the 1997 Plan as the last grants were made in 2003. On May 13, 2004, the Company’s stockholders approved the 2004 Incentive Plan of Dril-Quip, Inc. (as amended in 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 1997 Plan and 2004 Plan are employees holding positions of responsibility with the Company or any of its subsidiaries and members of the Board of Directors. Options granted under the 1997 Plan and 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. | |||||||||||||||||
The fair value of stock options granted is estimated on the grant date using the Black-Scholes option pricing model. The expected life is 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. | |||||||||||||||||
On October 28, 2011, the Company granted options to purchase 213,000 shares, of Common Stock pursuant to the 2004 Plan to certain officers and employees. There were no stock options granted in 2012 or 2013. The following table presents the assumptions used in the option pricing model. | |||||||||||||||||
2011 | |||||||||||||||||
Expected life (years) | 6 | ||||||||||||||||
Volatility | 49.5 | % | |||||||||||||||
Risk-free interest rate | 1.13 | % | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Fair value of each option | $ | 32.38 | |||||||||||||||
Option activity for the year ended December 31, 2013 was as follows: | |||||||||||||||||
Number of | Weighted | Aggregate | Weighted Average | ||||||||||||||
Options | Average | intrinsic value | Remaining | ||||||||||||||
Price | (in millions) | Contractual Life | |||||||||||||||
(in years) | |||||||||||||||||
Outstanding at December 31, 2012 | 751,687 | $ | 52.74 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (234,417 | ) | 44.82 | ||||||||||||||
Forfeited | (4,375 | ) | 65.63 | ||||||||||||||
Outstanding at December 31,2013 | 512,895 | $ | 56.25 | $ | 27.5 | 6.25 | |||||||||||
Exercisable at December 31,2013 | 383,459 | $ | 52.29 | $ | 22.1 | 5.82 | |||||||||||
The total intrinsic value of stock options exercised in 2013, 2012 and 2011 was $10.7 million, $7.6 million and $4.9 million, respectively. The income tax benefit realized from stock options exercised was $3.7 million for the year ended December 31, 2013. There were no anti-dilutive stock option shares on December 31, 2013. | |||||||||||||||||
Stock-based compensation is recognized as selling, general and administrative expense in the accompanying Consolidated Statements of Income. During the years ended December 31, 2013, 2012 and 2011, stock-based compensation expense for stock option awards totaled $3.4 million, $3.8 million and $4.5 million, respectively. Stock option expense for 2011 excludes $1.4 million of non-cash expense due to the vesting of Mr. J. Mike Walker’s stock options as a result of his retirement. This expense for early vesting is included in Special items on the Consolidated Statements of Income and discussed in Note 14 of Notes to Consolidated Financial Statements. No stock-based compensation expense was capitalized during 2013, 2012 or 2011. | |||||||||||||||||
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, 2013, there was $3.7 million of total unrecognized compensation expense related to nonvested stock options. This expense is expected to be recognized over a weighted average of 1.2 years. | |||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
On October 28, 2013 pursuant to the 2004 Plan, the Company awarded officers, directors and key employees restricted stock awards (“RSA”), which is an award of common stock subject to time vesting. In May 2012, the Board of Directors amended the 2004 Plan to include non-employee directors as eligible for restricted stock awards. RSAs issued under this plan are restricted as to transference, sale and other disposition. These RSAs vest ratably over a three year period. The RSAs may also vest in case of a change of control. Upon termination, whether voluntary or involuntary, the RSAs that have not vested will be returned to the Company resulting in stock forfeitures. The fair market value of the stock on the date of grant is amortized and charged to selling, general and administrative expense over the stipulated time period over which the RSAs vest on a straight-line basis, net of estimated forfeitures. | |||||||||||||||||
The Company’s RSA activity and related information is presented below: | |||||||||||||||||
RSA | Weighted | ||||||||||||||||
Number of | Average | ||||||||||||||||
Shares | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Per Share | |||||||||||||||||
Nonvested balance at December 31, 2012 | 132,784 | $ | 69.41 | ||||||||||||||
Granted | 67,255 | 116.62 | |||||||||||||||
Vested | (50,236 | ) | 69.43 | ||||||||||||||
Forfeited | (1,050 | ) | 69.55 | ||||||||||||||
Nonvested balance at December 31, 2013 | 148,753 | $ | 90.75 | ||||||||||||||
Restricted stock awards compensation expense for the year ended December 31, 2013 totaled $3.9 million and $1.7 million for 2012 and $87,000 for 2011. For 2013, total income tax benefit recognized in net income for restricted stock awards was $2.0 million. As of December 31, 2013, there was $12.5 million of total unrecognized compensation cost related to nonvested RSAs, which is expected to be recognized over a weighted average period of 1.63 years. There were 11,923 anti-dilutive restricted shares on December 31, 2013. | |||||||||||||||||
Performance Unit Awards | |||||||||||||||||
On October 28, 2013, the Company awarded 31,707 performance unit awards (“Performance Units”) pursuant to the 2004 Plan to officers and key employees. The Performance Units were valued based on a Monte Carlo simulation at $138.31 which is approximately 118.4% of the grant share price. Under the plan, participants may earn from 0% to 200% of their target award based upon the Company’s relative total share return (“TSR”) to the 15 component companies of the Philadelphia Oil Service Index (“OSX index”). The TSR is calculated over a three year period from October 1, 2013 to September 30, 2016 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: | |||||||||||||||||
Grant date | October 28, 2013 | ||||||||||||||||
Performance period | October 1, 2013 to September 30, 2016 | ||||||||||||||||
Volatility | 34.40% | ||||||||||||||||
Risk-free interest rate | 0.57% | ||||||||||||||||
Grant date price | $116.83 | ||||||||||||||||
The Company’s Performance Unit activity and related information is presented below: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Performance | Average | ||||||||||||||||
Units | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Per | |||||||||||||||||
Performance | |||||||||||||||||
Unit | |||||||||||||||||
Nonvested balance at December 31, 2012 | 46,350 | $ | 84.66 | ||||||||||||||
Granted | 31,707 | 138.31 | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Nonvested balance at December 31, 2013 | 78,057 | $ | 106.45 | ||||||||||||||
Performance Unit compensation expense for the year ended December 31, 2013 totaled $1.6 million, $235,000 for 2012 and none for 2011. As of December 31, 2013, there was $6.5 million (based on 100% result rate) of total unrecognized compensation expense related to nonvested Performance Units which is to be recognized over a weighted average period of 1.7 years. There were 5,646 anti-dilutive performance share units at December 31, 2013. | |||||||||||||||||
The following table summarizes information for equity compensation plans in effect as of December 31, 2013: | |||||||||||||||||
Number of securities | Weighted-average | Number of securities | |||||||||||||||
to be issued upon | exercise price of | remaining available for | |||||||||||||||
exercise of | outstanding options | future issuance under | |||||||||||||||
outstanding options(1) | equity compensation plan | ||||||||||||||||
(excluding securities | |||||||||||||||||
reflected in column (a)) | |||||||||||||||||
Plan category | (a) | (b) | (c) | ||||||||||||||
Equity compensation plans approved by stockholders | |||||||||||||||||
Stock options | 512,895 | $ | 56.25 | 772,736 | |||||||||||||
Equity compensation plans not approved by stockholders | — | not applicable | — | ||||||||||||||
Total | 512,895 | $ | 56.25 | 772,736 | |||||||||||||
-1 | Excludes 148,753 shares of unvested restricted stock awards and 78,057 of unvested performance units, which were granted pursuant to the 2004 Plan approved by the stockholders. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
13. Earnings Per Share | |||||||||||||
The following is a reconciliation of the basic and diluted earnings per share computation. | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands, except per share amounts) | |||||||||||||
Net income | $ | 169,827 | $ | 119,209 | $ | 95,267 | |||||||
Weighted average basic common shares outstanding | 40,648 | 40,332 | 40,071 | ||||||||||
Effect of dilutive securities—stock options and awards | 217 | 191 | 251 | ||||||||||
Total shares and dilutive securities | 40,865 | 40,523 | 40,322 | ||||||||||
Basic earnings per common share | $ | 4.18 | $ | 2.96 | $ | 2.38 | |||||||
Diluted earnings per common share | $ | 4.16 | $ | 2.94 | $ | 2.36 | |||||||
Special_Items
Special Items | 12 Months Ended |
Dec. 31, 2013 | |
Text Block [Abstract] | ' |
Special Items | ' |
14. Special Items | |
On October 20, 2011, the Company announced that Mr. J. Mike Walker had stepped down from his positions as Chairman of the Board and Chief Executive Officer. As a result of Mr. Walker’s retirement, the Board of Directors appointed Mr. John V. Lovoi as Chairman of the Board, Mr. Blake T. DeBerry as President and Chief Executive Officer, and Mr. James A. Gariepy as Senior Vice President and Chief Operating Officer, effective October 20, 2011. Mr. DeBerry was also appointed as member of the Board of Directors to replace Mr. Walker. | |
Under the circumstances of Mr. Walker’s retirement, he was entitled to severance under his employment agreement with the Company. Pursuant to Mr. Walker’s employment agreement, the Company was obligated to pay Mr. Walker, among other things, his base salary and his annual bonus through the remaining employment period (October 27, 2014). In addition, stock options owned by Mr. Walker that were outstanding at the date of the termination of his employment were immediately vested. Accordingly, the Company recognized a pre-tax expense of $4.7 million during the fourth quarter of 2011. The amount includes base salary and bonus, including payroll taxes, which totaled $3.3 million is reflected in the accounts payable balances on the Consolidated Balance Sheets as of December 31, 2011. The acceleration of the vesting increased pre-tax non-cash expenses by $1.4 million. |
Stock_Repurchase_Plan
Stock Repurchase Plan | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Stock Repurchase Plan | ' |
15. Stock Repurchase Plan | |
On June 18, 2012, the Company’s Board of Directors approved a stock repurchase plan of up to $100 million of the Company’s common stock. During October and November 2013, the Company repurchased 85,840 shares at a total cost of approximately $10.0 million. The repurchase plan has no expiration date and all shares purchased have been cancelled. |
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited): | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Results of Operations (Unaudited): | ' | ||||||||||||||||
16. Quarterly Results of Operations (Unaudited): | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31 | June 30 | Sept. 30 | Dec. 31 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
2013 | |||||||||||||||||
Revenues | $ | 193,155 | $ | 222,031 | $ | 224,724 | $ | 232,462 | |||||||||
Cost of sales | 116,328 | 133,203 | 132,131 | 132,244 | |||||||||||||
Gross profit | 76,827 | 88,828 | 92,593 | 100,218 | |||||||||||||
Operating income | 52,177 | 56,215 | 51,985 | 63,168 | |||||||||||||
Net income | 39,842 | 42,927 | 39,995 | 47,063 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic(1) | $ | 0.98 | $ | 1.06 | $ | 0.98 | $ | 1.16 | |||||||||
Diluted(1) | 0.98 | 1.05 | 0.98 | 1.15 | |||||||||||||
2012 | |||||||||||||||||
Revenues | $ | 177,124 | $ | 176,570 | $ | 190,860 | $ | 188,477 | |||||||||
Cost of sales | 107,050 | 108,325 | 121,821 | 114,470 | |||||||||||||
Gross profit | 70,074 | 68,245 | 69,039 | 74,007 | |||||||||||||
Operating income | 40,032 | 41,349 | 38,723 | 41,588 | |||||||||||||
Net income | 28,797 | 29,803 | 29,657 | 30,952 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic(1) | $ | 0.72 | $ | 0.74 | $ | 0.73 | $ | 0.77 | |||||||||
Diluted(1) | 0.71 | 0.74 | 0.73 | 0.76 | |||||||||||||
-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. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
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. The following is a summary of activity relating to the allowance for doubtful accounts for the years ended December 31, 2011, 2012 and 2013: | |||||
In thousands | |||||
Balance at December 31, 2010 | $ | 1,451 | |||
Charges to costs and expenses | 410 | ||||
Recoveries/write-offs | (701 | ) | |||
Balance at December 31, 2011 | 1,160 | ||||
Charges to costs and expenses | 1,469 | ||||
Recoveries/write-offs | (516 | ) | |||
Balance at December 31, 2012 | 2,113 | ||||
Charges to costs and expenses | 910 | ||||
Recoveries/write-offs | (659 | ) | |||
Balance at December 31, 2013 | $ | 2,364 | |||
Inventories | ' | ||||
Inventories | |||||
Inventory costs are determined principally by the use of the first-in, first-out (FIFO) costing method and are stated at the lower of cost or market. Company manufactured inventory is valued principally using standard costs, which are calculated based upon direct costs incurred and overhead allocations. Inventory purchased from third party vendors is principally valued at the weighted average cost. Periodically, obsolescence reviews are performed on slow-moving inventories and reserves are established based on current assessments about future demands and market conditions. The inventory values have been reduced by a reserve for excess and slow-moving inventories. Inventory reserves of $33.2 million and $30.4 million were recorded as of December 31, 2013 and 2012, 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. | |||||
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. No impairments of long-lived assets were recorded in 2013, 2012 or 2011. | |||||
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. | |||||
Revenue Recognition | ' | ||||
Revenue Recognition | |||||
Product Revenue | |||||
The Company recognizes product revenues from two methods: | |||||
• | product revenues recognized under the percentage-of-completion method; and | ||||
• | product revenues from the sale of products that do not qualify for the percentage-of-completion method. | ||||
Revenues Recognized Under Percentage-of-Completion Method | ' | ||||
Revenues recognized under the percentage-of-completion method | |||||
The Company uses the percentage-of-completion method on long-term project contracts that have the following characteristics: | |||||
• | The contracts call for products which are designed to customer specifications; | ||||
• | The structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration; | ||||
• | The contracts contain specific terms as to milestones, progress billings and delivery dates; and | ||||
• | Product requirements cannot be filled directly from the Company’s standard inventory. | ||||
For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percent complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. | |||||
Under the percentage-of-completion method, billings do not always 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, 2013 and 2012, receivables included $52.9 million and $62.1 million of unbilled receivables, respectively. For the year ended December 31, 2013, there were 21 projects representing approximately 15% of the Company’s total revenues and approximately 18% of its product revenues that were accounted for using percentage-of-completion accounting, and 21 projects during 2012 which represented 20% of the Company’s total revenue and 24% of its product revenues. | |||||
Revenues Not Recognized Under Percentage-of-Completion Method | ' | ||||
Revenues not recognized under the percentage-of-completion method | |||||
Revenues from the sale of inventory products, not accounted for under the percentage-of-completion method, are recorded at the time the manufacturing processes are complete and ownership is transferred to the customer. | |||||
Service Revenue | ' | ||||
Service revenue | |||||
The Company earns service revenues from three sources: | |||||
• | technical advisory assistance; | ||||
• | rental of running tools; and | ||||
• | rework and reconditioning of customer owned Dril-Quip products. | ||||
The Company does not install products for its customers, but it does provide technical advisory assistance. At the time of delivery of the product, the customer is not obligated to buy or rent the Company’s running tools and the Company is not obligated to perform any subsequent services relating to installation. Technical advisory assistance service revenue is recorded at the time the service is rendered. Service revenues associated with the rental of running and installation tools are recorded as earned. Rework and reconditioning service revenues are recorded when the refurbishment process is complete. | |||||
The Company normally negotiates contracts for products, including those accounted for under the percentage-of-completion method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory services. The customer may use a third party or their own personnel. | |||||
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. Exchange losses were approximately $4.6 million in 2013, $3.8 million in 2012, and $2.5 million in 2011, 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 such 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 share are computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share are computed considering the dilutive effect of stock options and awards using the treasury stock method. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Summary of Activity Relating to Allowance for Doubtful Accounts | ' | ||||
The following is a summary of activity relating to the allowance for doubtful accounts for the years ended December 31, 2011, 2012 and 2013: | |||||
In thousands | |||||
Balance at December 31, 2010 | $ | 1,451 | |||
Charges to costs and expenses | 410 | ||||
Recoveries/write-offs | (701 | ) | |||
Balance at December 31, 2011 | 1,160 | ||||
Charges to costs and expenses | 1,469 | ||||
Recoveries/write-offs | (516 | ) | |||
Balance at December 31, 2012 | 2,113 | ||||
Charges to costs and expenses | 910 | ||||
Recoveries/write-offs | (659 | ) | |||
Balance at December 31, 2013 | $ | 2,364 | |||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
Inventories consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Raw materials and supplies | $ | 85,670 | $ | 86,007 | |||||
Work in progress | 119,929 | 97,379 | |||||||
Finished goods | 195,971 | 209,221 | |||||||
401,570 | 392,607 | ||||||||
Less: allowance for obsolete and excess inventory | (33,216 | ) | (30,426 | ) | |||||
Total inventory | $ | 368,354 | $ | 362,181 | |||||
Summary of Allowance for Excess and Slow-Moving Inventory | ' | ||||||||
Summary of allowance for excess and slow-moving inventory: | |||||||||
In thousands | |||||||||
Balance at December 31, 2010 | $ | 24,948 | |||||||
Charges to costs and expenses | 2,888 | ||||||||
Write-offs of inventory | (1,608 | ) | |||||||
Balance at December 31, 2011 | 26,228 | ||||||||
Charges to costs and expenses | 4,651 | ||||||||
Write-offs of inventory | (453 | ) | |||||||
Balance at December 31, 2012 | 30,426 | ||||||||
Charges to costs and expenses | 3,554 | ||||||||
Write-offs of inventory | (764 | ) | |||||||
Balance at December 31, 2013 | $ | 33,216 | |||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Schedule of Property, Plant and Equipment | ' | ||||||||||||
Property, plant and equipment consists of: | |||||||||||||
Estimated | December 31, | ||||||||||||
Useful Lives | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Land and improvements | 10-25 years | $ | 26,927 | $ | 26,650 | ||||||||
Buildings | 15-40 years | 192,024 | 185,559 | ||||||||||
Machinery, equipment and other | 3-10 years | 313,772 | 288,829 | ||||||||||
532,723 | 501,038 | ||||||||||||
Less accumulated depreciation | (227,917 | ) | (205,056 | ) | |||||||||
Total property, plant and equipment | $ | 304,806 | $ | 295,982 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Income Before Income Taxes | ' | ||||||||||||
Income before income taxes consisted of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Domestic | $ | 98,883 | $ | 65,271 | $ | 45,159 | |||||||
Foreign | 125,214 | 96,851 | 84,845 | ||||||||||
Total | $ | 224,097 | $ | 162,122 | $ | 130,004 | |||||||
Schedule of Income Tax provision (Benefit) | ' | ||||||||||||
The income tax provision (benefit) consists of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 30,962 | $ | 20,033 | $ | 13,127 | |||||||
Foreign | 24,543 | 22,542 | 23,122 | ||||||||||
Total current | 55,505 | 42,575 | 36,249 | ||||||||||
Deferred: | |||||||||||||
Federal | (1,299 | ) | 440 | (891 | ) | ||||||||
Foreign | 64 | (102 | ) | (621 | ) | ||||||||
Total deferred | (1,235 | ) | 338 | (1,512 | ) | ||||||||
Total | $ | 54,270 | $ | 42,913 | $ | 34,737 | |||||||
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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income tax statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Foreign income tax rate differential | (6.0 | ) | (5.5 | ) | (5.2 | ) | |||||||
Foreign development tax incentive | (2.6 | ) | (1.6 | ) | (0.3 | ) | |||||||
Manufacturing benefit | (1.4 | ) | (1.2 | ) | (1.3 | ) | |||||||
Other | (0.8 | ) | (0.3 | ) | (1.5 | ) | |||||||
Effective income tax rate | 24.2 | % | 26.4 | % | 26.7 | % | |||||||
Components of Deferred Tax Assets and Liabilities | ' | ||||||||||||
Significant components of the Company’s deferred tax assets and liabilities are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Inventory | $ | 9,086 | $ | 9,846 | |||||||||
Inventory reserve | 7,807 | 7,079 | |||||||||||
Allowance for doubtful accounts | 396 | 430 | |||||||||||
Reserve for accrued liabilities | 370 | 183 | |||||||||||
Stock options | 4,323 | 4,242 | |||||||||||
Other | 2,969 | 2,058 | |||||||||||
Total deferred tax assets | 24,951 | 23,838 | |||||||||||
Deferred tax liability: | |||||||||||||
Property, plant and equipment | (9,804 | ) | (9,926 | ) | |||||||||
Net deferred tax asset | $ | 15,147 | $ | 13,912 | |||||||||
Other_Accrued_Liabilities_Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||||
Schedule of Other Accrued Liabilities | ' | ||||||||
Other accrued liabilities consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Payroll taxes | $ | 3,559 | $ | 2,933 | |||||
Property, sales and other taxes | 6,398 | 5,166 | |||||||
Commissions payable | 2,160 | 1,497 | |||||||
Accrued vendor costs | 7,384 | 7,013 | |||||||
Other | 4,279 | 3,641 | |||||||
Total | $ | 23,780 | $ | 20,250 | |||||
Geographic_Areas_Tables
Geographic Areas (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule of Segment Reporting | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Western Hemisphere | |||||||||||||
Products | $ | 420,439 | $ | 298,853 | $ | 265,029 | |||||||
Services | 72,328 | 68,938 | 37,531 | ||||||||||
Intercompany | 51,767 | 65,803 | 73,290 | ||||||||||
Total | $ | 544,534 | $ | 433,594 | $ | 375,850 | |||||||
Eastern Hemisphere | |||||||||||||
Products | $ | 186,074 | $ | 196,328 | $ | 164,135 | |||||||
Services | 46,653 | 37,307 | 33,320 | ||||||||||
Intercompany | 1,254 | 4,065 | 3,680 | ||||||||||
Total | $ | 233,981 | $ | 237,700 | $ | 201,135 | |||||||
Asia-Pacific | |||||||||||||
Products | $ | 125,104 | $ | 115,037 | $ | 82,486 | |||||||
Services | 21,774 | 16,568 | 18,841 | ||||||||||
Intercompany | 9,155 | 968 | 3,026 | ||||||||||
Total | $ | 156,033 | $ | 132,573 | $ | 104,353 | |||||||
Summary | |||||||||||||
Products | $ | 731,617 | $ | 610,218 | $ | 511,650 | |||||||
Services | 140,755 | 122,813 | 89,692 | ||||||||||
Intercompany | 62,176 | 70,836 | 79,996 | ||||||||||
Eliminations | (62,176 | ) | (70,836 | ) | (79,996 | ) | |||||||
Total | $ | 872,372 | $ | 733,031 | $ | 601,342 | |||||||
Income before income taxes | |||||||||||||
Western Hemisphere | $ | 111,498 | $ | 76,771 | $ | 66,782 | |||||||
Eastern Hemisphere | 49,672 | 44,904 | 41,453 | ||||||||||
Asia-Pacific | 55,136 | 33,478 | 22,891 | ||||||||||
Eliminations | 7,791 | 6,969 | (1,122 | ) | |||||||||
Total | $ | 224,097 | $ | 162,122 | $ | 130,004 | |||||||
Total Long-Lived Assets: | |||||||||||||
Western Hemisphere | $ | 216,104 | $ | 215,340 | $ | 196,380 | |||||||
Eastern Hemisphere | 43,430 | 36,194 | 34,927 | ||||||||||
Asia-Pacific | 59,192 | 58,484 | 58,058 | ||||||||||
Eliminations | (2,927 | ) | (2,959 | ) | (2,809 | ) | |||||||
Total | $ | 315,799 | $ | 307,059 | $ | 286,556 | |||||||
Total Assets: | |||||||||||||
Western Hemisphere | $ | 803,069 | $ | 727,242 | $ | 666,915 | |||||||
Eastern Hemisphere | 316,473 | 275,868 | 229,043 | ||||||||||
Asia-Pacific | 292,600 | 261,319 | 209,143 | ||||||||||
Eliminations | (17,530 | ) | (32,982 | ) | (19,243 | ) | |||||||
Total | $ | 1,394,612 | $ | 1,231,447 | $ | 1,085,858 | |||||||
StockBased_Compensation_and_St1
Stock-Based Compensation and Stock Awards (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Schedule of Assumptions Used in Option Pricing Model | ' | ||||||||||||||||
The following table presents the assumptions used in the option pricing model. | |||||||||||||||||
2011 | |||||||||||||||||
Expected life (years) | 6 | ||||||||||||||||
Volatility | 49.5 | % | |||||||||||||||
Risk-free interest rate | 1.13 | % | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Fair value of each option | $ | 32.38 | |||||||||||||||
Schedule of Option Activity | ' | ||||||||||||||||
Option activity for the year ended December 31, 2013 was as follows: | |||||||||||||||||
Number of | Weighted | Aggregate | Weighted Average | ||||||||||||||
Options | Average | intrinsic value | Remaining | ||||||||||||||
Price | (in millions) | Contractual Life | |||||||||||||||
(in years) | |||||||||||||||||
Outstanding at December 31, 2012 | 751,687 | $ | 52.74 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (234,417 | ) | 44.82 | ||||||||||||||
Forfeited | (4,375 | ) | 65.63 | ||||||||||||||
Outstanding at December 31,2013 | 512,895 | $ | 56.25 | $ | 27.5 | 6.25 | |||||||||||
Exercisable at December 31,2013 | 383,459 | $ | 52.29 | $ | 22.1 | 5.82 | |||||||||||
Summary of RSA Activity | ' | ||||||||||||||||
The Company’s RSA activity and related information is presented below: | |||||||||||||||||
RSA | Weighted | ||||||||||||||||
Number of | Average | ||||||||||||||||
Shares | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Per Share | |||||||||||||||||
Nonvested balance at December 31, 2012 | 132,784 | $ | 69.41 | ||||||||||||||
Granted | 67,255 | 116.62 | |||||||||||||||
Vested | (50,236 | ) | 69.43 | ||||||||||||||
Forfeited | (1,050 | ) | 69.55 | ||||||||||||||
Nonvested balance at December 31, 2013 | 148,753 | $ | 90.75 | ||||||||||||||
Schedule of Assumptions Used in Monte Carlo Simulation | ' | ||||||||||||||||
Assumptions used in the Monte Carlo simulation are as follows: | |||||||||||||||||
Grant date | October 28, 2013 | ||||||||||||||||
Performance period | October 1, 2013 to September 30, 2016 | ||||||||||||||||
Volatility | 34.40% | ||||||||||||||||
Risk-free interest rate | 0.57% | ||||||||||||||||
Grant date price | $116.83 | ||||||||||||||||
Summary of PSA Activity | ' | ||||||||||||||||
The Company’s Performance Unit activity and related information is presented below: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Performance | Average | ||||||||||||||||
Units | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Per | |||||||||||||||||
Performance | |||||||||||||||||
Unit | |||||||||||||||||
Nonvested balance at December 31, 2012 | 46,350 | $ | 84.66 | ||||||||||||||
Granted | 31,707 | 138.31 | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Nonvested balance at December 31, 2013 | 78,057 | $ | 106.45 | ||||||||||||||
Schedule of Information for Stock Option Plans | ' | ||||||||||||||||
The following table summarizes information for equity compensation plans in effect as of December 31, 2013: | |||||||||||||||||
Number of securities | Weighted-average | Number of securities | |||||||||||||||
to be issued upon | exercise price of | remaining available for | |||||||||||||||
exercise of | outstanding options | future issuance under | |||||||||||||||
outstanding options(1) | equity compensation plan | ||||||||||||||||
(excluding securities | |||||||||||||||||
reflected in column (a)) | |||||||||||||||||
Plan category | (a) | (b) | (c) | ||||||||||||||
Equity compensation plans approved by stockholders | |||||||||||||||||
Stock options | 512,895 | $ | 56.25 | 772,736 | |||||||||||||
Equity compensation plans not approved by stockholders | — | not applicable | — | ||||||||||||||
Total | 512,895 | $ | 56.25 | 772,736 | |||||||||||||
-1 | Excludes 148,753 shares of unvested restricted stock awards and 78,057 of unvested performance units, which were granted pursuant to the 2004 Plan approved by the stockholders. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
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, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands, except per share amounts) | |||||||||||||
Net income | $ | 169,827 | $ | 119,209 | $ | 95,267 | |||||||
Weighted average basic common shares outstanding | 40,648 | 40,332 | 40,071 | ||||||||||
Effect of dilutive securities—stock options and awards | 217 | 191 | 251 | ||||||||||
Total shares and dilutive securities | 40,865 | 40,523 | 40,322 | ||||||||||
Basic earnings per common share | $ | 4.18 | $ | 2.96 | $ | 2.38 | |||||||
Diluted earnings per common share | $ | 4.16 | $ | 2.94 | $ | 2.36 | |||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Unaudited): (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Results of Operations | ' | ||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31 | June 30 | Sept. 30 | Dec. 31 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
2013 | |||||||||||||||||
Revenues | $ | 193,155 | $ | 222,031 | $ | 224,724 | $ | 232,462 | |||||||||
Cost of sales | 116,328 | 133,203 | 132,131 | 132,244 | |||||||||||||
Gross profit | 76,827 | 88,828 | 92,593 | 100,218 | |||||||||||||
Operating income | 52,177 | 56,215 | 51,985 | 63,168 | |||||||||||||
Net income | 39,842 | 42,927 | 39,995 | 47,063 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic(1) | $ | 0.98 | $ | 1.06 | $ | 0.98 | $ | 1.16 | |||||||||
Diluted(1) | 0.98 | 1.05 | 0.98 | 1.15 | |||||||||||||
2012 | |||||||||||||||||
Revenues | $ | 177,124 | $ | 176,570 | $ | 190,860 | $ | 188,477 | |||||||||
Cost of sales | 107,050 | 108,325 | 121,821 | 114,470 | |||||||||||||
Gross profit | 70,074 | 68,245 | 69,039 | 74,007 | |||||||||||||
Operating income | 40,032 | 41,349 | 38,723 | 41,588 | |||||||||||||
Net income | 28,797 | 29,803 | 29,657 | 30,952 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic(1) | $ | 0.72 | $ | 0.74 | $ | 0.73 | $ | 0.77 | |||||||||
Diluted(1) | 0.71 | 0.74 | 0.73 | 0.76 | |||||||||||||
-1 | The sum of the quarterly per share amounts may not equal the annual amount reported, as per share amounts are computed independently for each quarter and for the full year. |
Organization_Additional_Inform
Organization - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
Number of geographic segments | 3 |
Significant_Accounting_Policie3
Significant Accounting Policies - Summary of Activity Relating to Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounting Policies [Abstract] | ' | ' | ' |
Beginning Balance | $2,113 | $1,160 | $1,451 |
Charges to costs and expenses | 910 | 1,469 | 410 |
Recoveries/write-offs | -659 | -516 | -701 |
Ending Balance | $2,364 | $2,113 | $1,160 |
Significant_Accounting_Policie4
Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Project | Project | |||
Method | ||||
Source | ||||
Accounting Policies [Abstract] | ' | ' | ' | ' |
Inventory reserves | $33,216,000 | $30,426,000 | $26,228,000 | $24,948,000 |
Impairments of long-lived assets | 0 | 0 | 0 | ' |
Number of product revenue sources | 2 | ' | ' | ' |
Unbilled receivables | 52,900,000 | 62,100,000 | ' | ' |
Number of projects | 21 | 21 | ' | ' |
Percentage of total revenues | 15.00% | 20.00% | ' | ' |
Percentage of product revenues | 18.00% | 24.00% | ' | ' |
Number of service revenue sources | 3 | ' | ' | ' |
Losses in foreign currency exchange transactions | ($4,600,000) | ($3,800,000) | ($2,500,000) | ' |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Inventory Disclosure [Abstract] | ' | ' | ' | ' |
Raw materials and supplies | $85,670 | $86,007 | ' | ' |
Work in progress | 119,929 | 97,379 | ' | ' |
Finished goods | 195,971 | 209,221 | ' | ' |
Inventory, gross, Total | 401,570 | 392,607 | ' | ' |
Less: allowance for obsolete and excess inventory | -33,216 | -30,426 | -26,228 | -24,948 |
Total inventory | $368,354 | $362,181 | ' | ' |
Inventories_Summary_of_Allowan
Inventories - Summary of Allowance for Excess and Slow-Moving Inventory (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Inventory Disclosure [Abstract] | ' | ' | ' |
Beginning balance | $30,426 | $26,228 | $24,948 |
Charges to costs and expenses | 3,554 | 4,651 | 2,888 |
Write-offs of inventory | -764 | -453 | -1,608 |
Ending balance | $33,216 | $30,426 | $26,228 |
Property_Plant_And_Equipment_S
Property, Plant And Equipment - Schedule of Property, Plant and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Land And Improvements [Member] | Land And Improvements [Member] | Land And Improvements [Member] | Land And Improvements [Member] | Buildings [Member] | Buildings [Member] | Buildings [Member] | Buildings [Member] | Machinery, Equipment And Other [Member] | Machinery, Equipment And Other [Member] | Machinery, Equipment And Other [Member] | Machinery, Equipment And Other [Member] | ||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Useful Lives (years) | ' | ' | ' | ' | '10 years | '25 years | ' | ' | '15 years | '40 years | ' | ' | '3 years | '10 years |
Property, plant and equipment, gross | $532,723 | $501,038 | $26,927 | $26,650 | ' | ' | $192,024 | $185,559 | ' | ' | $313,772 | $288,829 | ' | ' |
Less accumulated depreciation | -227,917 | -205,056 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | $304,806 | $295,982 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property Plant And Equipment Useful Life And Values [Abstract] | ' | ' |
Depreciation expense | $29.30 | $26.20 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Amount of tax benefit recognized | 50.00% | ' | ' |
Uncertain tax positions | $0 | $0 | ' |
Undistributed earnings of the Company's foreign subsidiaries | 547 | ' | ' |
Research and Development credit | ' | 1.2 | ' |
Income taxes paid | $41 | $37.90 | $31.90 |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Domestic | $98,883 | $65,271 | $45,159 |
Foreign | 125,214 | 96,851 | 84,845 |
Income before income taxes | $224,097 | $162,122 | $130,004 |
Income_Taxes_Schedule_of_Incom1
Income Taxes - Schedule of Income Tax Provision (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Current, Federal | $30,962 | $20,033 | $13,127 |
Current, Foreign | 24,543 | 22,542 | 23,122 |
Total current | 55,505 | 42,575 | 36,249 |
Deferred, Federal | -1,299 | 440 | -891 |
Deferred, Foreign | 64 | -102 | -621 |
Total deferred | -1,235 | 338 | -1,512 |
Total | $54,270 | $42,913 | $34,737 |
Income_Taxes_Schedule_of_Effec
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal income tax statutory rate | 35.00% | 35.00% | 35.00% |
Foreign income tax rate differential | -6.00% | -5.50% | -5.20% |
Foreign development tax incentive | -2.60% | -1.60% | -0.30% |
Manufacturing benefit | -1.40% | -1.20% | -1.30% |
Other | -0.80% | -0.30% | -1.50% |
Effective income tax rate | 24.20% | 26.40% | 26.70% |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Inventory | $9,086 | $9,846 |
Inventory reserve | 7,807 | 7,079 |
Allowance for doubtful accounts | 396 | 430 |
Reserve for accrued liabilities | 370 | 183 |
Stock options | 4,323 | 4,242 |
Other | 2,969 | 2,058 |
Total deferred tax assets | 24,951 | 23,838 |
Deferred tax liability: | ' | ' |
Property, plant and equipment | -9,804 | -9,926 |
Net deferred tax asset | $15,147 | $13,912 |
Other_Accrued_Liabilities_Sche
Other Accrued Liabilities - Schedule of Other Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Payroll taxes | $3,559 | $2,933 |
Property, sales and other taxes | 6,398 | 5,166 |
Commissions payable | 2,160 | 1,497 |
Accrued vendor costs | 7,384 | 7,013 |
Other | 4,279 | 3,641 |
Total | $23,780 | $20,250 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Postemployment Benefits [Abstract] | ' | ' | ' |
Employee benefit plans, contribution expense | $4.90 | $4.40 | $4 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2010 | Apr. 20, 2010 | Dec. 31, 2010 | Mar. 31, 2010 | Aug. 31, 2007 | |
Brazil [Member] | Brazil [Member] | Brazil [Member] | ||||||
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Lease expense incurred | $3,500,000 | $2,900,000 | $3,700,000 | ' | ' | ' | ' | ' |
Future annual minimum lease commitments for the year 2014 | 1,703,000 | ' | ' | ' | ' | ' | ' | ' |
Future annual minimum lease commitments for the year 2015 | 914,000 | ' | ' | ' | ' | ' | ' | ' |
Future annual minimum lease commitments for the year 2016 | 598,000 | ' | ' | ' | ' | ' | ' | ' |
Future annual minimum lease commitments for the year 2017 | 484,000 | ' | ' | ' | ' | ' | ' | ' |
Future annual minimum lease commitments for the year 2018 | 441,000 | ' | ' | ' | ' | ' | ' | ' |
Future annual minimum lease commitments for the year, thereafter | 5,600,000 | ' | ' | ' | ' | ' | ' | ' |
General liability coverage | ' | ' | ' | 200,000,000 | 100,000,000 | ' | ' | ' |
Tax assessment settled with payments | ' | ' | ' | ' | ' | 3,900,000 | 12,200,000 | ' |
Amount of interest, penalties and monetary restatement fees on tax assessments | ' | ' | ' | ' | ' | 7,800,000 | ' | ' |
Tax credits once certified, period to utilize them | ' | ' | ' | ' | ' | ' | ' | '5 years |
Value of assessments served on Brazilian subsidiary | ' | ' | ' | ' | ' | $13,000,000 | ' | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (Series A Junior Participating Preferred Stock [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Series A Junior Participating Preferred Stock [Member] | ' |
Class of Stock [Line Items] | ' |
Rights to purchase shares | 0.01 |
Geographic_Areas_Schedule_of_S
Geographic Areas - Schedule of Segment Reporting (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Products | ' | ' | ' | ' | ' | ' | ' | ' | $731,617 | $610,218 | $511,650 |
Services | ' | ' | ' | ' | ' | ' | ' | ' | 140,755 | 122,813 | 89,692 |
Intercompany | ' | ' | ' | ' | ' | ' | ' | ' | 62,176 | 70,836 | 79,996 |
Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | -62,176 | -70,836 | -79,996 |
Total revenues | 232,462 | 224,724 | 222,031 | 193,155 | 188,477 | 190,860 | 176,570 | 177,124 | 872,372 | 733,031 | 601,342 |
Total long-lived assets | 315,799 | ' | ' | ' | 307,059 | ' | ' | ' | 315,799 | 307,059 | 286,556 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 224,097 | 162,122 | 130,004 |
Total assets | 1,394,612 | ' | ' | ' | 1,231,447 | ' | ' | ' | 1,394,612 | 1,231,447 | 1,085,858 |
Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 7,791 | 6,969 | -1,122 |
Total long-lived assets eliminations | -2,927 | ' | ' | ' | -2,959 | ' | ' | ' | -2,927 | -2,959 | -2,809 |
Total assets eliminations | -17,530 | ' | ' | ' | -32,982 | ' | ' | ' | -17,530 | -32,982 | -19,243 |
Western Hemisphere [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Products | ' | ' | ' | ' | ' | ' | ' | ' | 420,439 | 298,853 | 265,029 |
Services | ' | ' | ' | ' | ' | ' | ' | ' | 72,328 | 68,938 | 37,531 |
Intercompany | ' | ' | ' | ' | ' | ' | ' | ' | 51,767 | 65,803 | 73,290 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 544,534 | 433,594 | 375,850 |
Total long-lived assets | 216,104 | ' | ' | ' | 215,340 | ' | ' | ' | 216,104 | 215,340 | 196,380 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 111,498 | 76,771 | 66,782 |
Total assets | 803,069 | ' | ' | ' | 727,242 | ' | ' | ' | 803,069 | 727,242 | 666,915 |
Eastern Hemisphere [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Products | ' | ' | ' | ' | ' | ' | ' | ' | 186,074 | 196,328 | 164,135 |
Services | ' | ' | ' | ' | ' | ' | ' | ' | 46,653 | 37,307 | 33,320 |
Intercompany | ' | ' | ' | ' | ' | ' | ' | ' | 1,254 | 4,065 | 3,680 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 233,981 | 237,700 | 201,135 |
Total long-lived assets | 43,430 | ' | ' | ' | 36,194 | ' | ' | ' | 43,430 | 36,194 | 34,927 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 49,672 | 44,904 | 41,453 |
Total assets | 316,473 | ' | ' | ' | 275,868 | ' | ' | ' | 316,473 | 275,868 | 229,043 |
Asia-Pacific [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Products | ' | ' | ' | ' | ' | ' | ' | ' | 125,104 | 115,037 | 82,486 |
Services | ' | ' | ' | ' | ' | ' | ' | ' | 21,774 | 16,568 | 18,841 |
Intercompany | ' | ' | ' | ' | ' | ' | ' | ' | 9,155 | 968 | 3,026 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 156,033 | 132,573 | 104,353 |
Total long-lived assets | 59,192 | ' | ' | ' | 58,484 | ' | ' | ' | 59,192 | 58,484 | 58,058 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 55,136 | 33,478 | 22,891 |
Total assets | $292,600 | ' | ' | ' | $261,319 | ' | ' | ' | $292,600 | $261,319 | $209,143 |
Geographic_Areas_Additional_In
Geographic Areas - Additional Information (Detail) (Petrobras [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Petrobras [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of revenue accounted by one customer | 11.00% | 12.00% | 15.00% |
StockBased_Compensation_and_St2
Stock-Based Compensation and Stock Awards - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Oct. 28, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 19, 1997 | Dec. 31, 2001 | Sep. 19, 1997 | 13-May-04 | Oct. 28, 2013 | 13-May-04 | |
Company | Performance Unit Awards [Member] | Performance Unit Awards [Member] | Performance Unit Awards [Member] | Performance Unit Awards [Member] | Stock Options [Member] | Stock Options [Member] | Mr. J. Mike Walker's Stock Options [Member] | Restricted Stock Awards [Member] | 1997 Plan [Member] | 1997 Plan [Member] | 1997 Plan [Member] | 2004 Plan [Member] | 2004 Plan [Member] | 2004 Plan [Member] | |||
Minimum [Member] | Maximum [Member] | Stock Options [Member] | Performance Unit Awards [Member] | Stock Options [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of authorized shares purchased by options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | 1,400,000 | ' | 2,696,294 | ' | ' |
Options granted period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | '10 years | ' | ' |
Options granted to employees, percentage of vesting per year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | 25.00% | ' | ' |
Number of authorized shares purchased by options | ' | ' | ' | ' | ' | ' | ' | 213,000 | ' | ' | ' | ' | ' | ' | ' | 31,707 | ' |
Intrinsic value of stock options exercised | $10,700,000 | $7,600,000 | $4,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit recognized | ' | ' | ' | ' | ' | ' | ' | ' | 3,700,000 | ' | 2,000,000 | ' | ' | ' | ' | ' | ' |
Anti-dilutive performance share units | ' | ' | ' | 5,646 | ' | ' | ' | ' | 0 | ' | 11,923 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense for stock option exercises | 3,400,000 | 3,800,000 | 4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option expense for acceleration of the vesting stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' |
Allocated Share Based Compensation Expense Capitalized | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted to employees vesting period, in years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | '4 years |
Unrecognized compensation expense related to share based compensation | ' | ' | ' | 6,500,000 | ' | ' | ' | ' | 3,700,000 | ' | 12,500,000 | ' | ' | ' | ' | ' | ' |
Period of recognition for unrecognized compensation expense related to nonvested performance units | ' | ' | ' | '1 year 8 months 12 days | ' | ' | ' | ' | '1 year 2 months 12 days | ' | '1 year 7 months 17 days | ' | ' | ' | ' | ' | ' |
Vesting period of restricted shares issued under plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' |
Restricted stock awards compensation expense | 3,900,000 | 1,700,000 | 87,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share value based on Monte Carlo simulation | ' | ' | ' | ' | $138.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of grant share price | ' | ' | ' | ' | ' | 118.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Participants earning under the term | ' | ' | ' | ' | ' | 0.00% | 200.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of components companies in the Philadelphia Oil Service Index | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance Unit compensation expense | $1,600,000 | $235,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Result rate based on which unrecognized compensation expense is considered | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_and_St3
Stock-Based Compensation and Stock Awards - Schedule of Assumptions Used in Option Pricing Model (Detail) (USD $) | 0 Months Ended |
Oct. 28, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Expected life (years) | '6 years |
Volatility | 49.50% |
Risk-free interest rate | 1.13% |
Dividend yield | 0.00% |
Fair value of each option | $32.38 |
StockBased_Compensation_and_St4
Stock-Based Compensation and Stock Awards - Schedule of Option Activity (Detail) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Outstanding at December 31, 2012, Number of Options | 751,687 |
Granted, Number of Options | ' |
Exercised, Number of Options | -234,417 |
Forfeited, Number of Options | -4,375 |
Outstanding at December 31,2013, Number of Options | 512,895 |
Exercisable at December 31,2013, Number of Options | 383,459 |
Outstanding at December 31, 2012, Weighted Average Price | $52.74 |
Granted, Weighted Average Price | ' |
Exercised, Weighted Average Price | $44.82 |
Forfeited, Weighted Average Price | $65.63 |
Outstanding at December 31,2013, Weighted Average Price | $56.25 |
Exercisable at December 31,2013, Weighted Average Price | $52.29 |
Outstanding at December 31,2013, Aggregate intrinsic value | $27.50 |
Exercisable at December 31,2013, Aggregate intrinsic value | $22.10 |
Outstanding at December 31,2013, Weighted Average Remaining Contractual Life (in years) | '6 years 3 months |
Exercisable at December 31,2013, Weighted Average Remaining Contractual Life (in years) | '5 years 9 months 26 days |
StockBased_Compensation_and_St5
Stock-Based Compensation and Stock Awards - Summary of RSA Activity (Detail) (Restricted Stock Awards [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Stock Awards [Member] | ' |
Schedule Of Stock Options [Line Items] | ' |
Nonvested balance at December 31, 2012, Number of Performance Units | 132,784 |
Granted, RSA Number of Shares | 67,255 |
Vested, RSA Number of Shares | -50,236 |
Forfeited, RSA Number of Shares | -1,050 |
Nonvested balance at December 31, 2013, Number of Performance Units | 148,753 |
Nonvested balance at December 31, 2012, Weighted Average Grant Date Fair Value Per Performance Unit | $69.41 |
Granted, Weighted Average Grant Date Fair Value Per Share | $116.62 |
Vested, Weighted Average Grant Date Fair Value Per Share | $69.43 |
Forfeited, Weighted Average Grant Date Fair Value Per Share | $69.55 |
Nonvested balance at December 31, 2013, Weighted Average Grant Date Fair Value Per Performance Unit | $90.75 |
StockBased_Compensation_and_St6
Stock-Based Compensation and Stock Awards - Schedule of Assumptions Used in Monte Carlo Simulation (Detail) (Monte Carlo simulation [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Monte Carlo simulation [Member] | ' |
Share Based Compensation Shares Authorized Under Award Type [Line Items] | ' |
Grant date | 28-Oct-13 |
Performance period | 'October 1, 2013 to September 30, 2016 |
Volatility | 34.40% |
Risk-free interest rate | 0.57% |
Grant date price | $116.83 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of PSA Activity (Detail) (Performance Unit Awards [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Performance Unit Awards [Member] | ' |
Nonvested Share Activity [Line Items] | ' |
Nonvested balance at December 31, 2012, Number of Performance Units | 46,350 |
Granted, Number of Performance Units | 31,707 |
Vested, Number of Performance Units | ' |
Forfeited, Number of Performance Units | ' |
Nonvested balance at December 31, 2013, Number of Performance Units | 78,057 |
Nonvested balance at December 31, 2012, Weighted Average Grant Date Fair Value Per Performance Unit | $84.66 |
Granted, Weighted Average Grant Date Fair Value Per Performance Unit | $138.31 |
Vested, Weighted Average Grant Date Fair Value Per Performance Unit | ' |
Forfeited, Weighted Average Grant Date Fair Value Per Performance Unit | ' |
Nonvested balance at December 31, 2013, Weighted Average Grant Date Fair Value Per Performance Unit | $106.45 |
StockBased_Compensation_and_St7
Stock-Based Compensation and Stock Awards - Schedule of Information for Stock Option Plans (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of securities to be issued upon exercise of outstanding options | 512,895 |
Weighted-average exercise price of outstanding options | $56.25 |
Number of securities remaining available for future issuance under equity compensation plan | 772,736 |
Equity Compensation Plans Approved By Stockholders [Member] | Stock Options [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of securities to be issued upon exercise of outstanding options | 512,895 |
Weighted-average exercise price of outstanding options | $56.25 |
Number of securities remaining available for future issuance under equity compensation plan | 772,736 |
Equity Compensation Plans Not Approved By Stockholders [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of securities to be issued upon exercise of outstanding options | ' |
Weighted-average exercise price of outstanding options | 'Not applicable |
Number of securities remaining available for future issuance under equity compensation plan | ' |
StockBased_Compensation_and_St8
Stock-Based Compensation and Stock Awards - Schedule of Information for Stock Option Plans (Parenthetical) (Detail) (2004 Plan [Member]) | Dec. 31, 2013 |
Unvested restricted stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unvested stock and units | 148,753 |
Unvested performance service awards [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unvested stock and units | 78,057 |
Earnings_Per_Share_Reconciliat
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $47,063 | $39,995 | $42,927 | $39,842 | $30,952 | $29,657 | $29,803 | $28,797 | $169,827 | $119,209 | $95,267 |
Weighted average basic common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 40,648 | 40,332 | 40,071 |
Effect of dilutive securities-stock options and awards | ' | ' | ' | ' | ' | ' | ' | ' | 217 | 191 | 251 |
Total shares and dilutive securities | ' | ' | ' | ' | ' | ' | ' | ' | 40,865 | 40,523 | 40,322 |
Basic earnings per common share | $1.16 | $0.98 | $1.06 | $0.98 | $0.77 | $0.73 | $0.74 | $0.72 | $4.18 | $2.96 | $2.38 |
Diluted earnings per common share | $1.15 | $0.98 | $1.05 | $0.98 | $0.76 | $0.73 | $0.74 | $0.71 | $4.16 | $2.94 | $2.36 |
Special_Items_Additional_Infor
Special Items - Additional Information (Detail) (Mr. J. Mike Walker [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2011 |
Mr. J. Mike Walker [Member] | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' |
Pre-tax expense | $4.70 |
Salary and bonus including payroll taxes | 3.3 |
Pre-tax non-cash expenses | $1.40 |
Stock_Repurchase_Plan_Addition
Stock Repurchase Plan - Additional Information (Detail) (USD $) | 0 Months Ended | 2 Months Ended |
In Millions, except Share data, unless otherwise specified | Jun. 18, 2012 | Nov. 30, 2013 |
Equity [Abstract] | ' | ' |
Stock repurchase plan | $100 | ' |
Share repurchased | ' | 85,840 |
Total cost of share repurchased | ' | $10 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Unaudited) - Schedule of Quarterly Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $232,462 | $224,724 | $222,031 | $193,155 | $188,477 | $190,860 | $176,570 | $177,124 | $872,372 | $733,031 | $601,342 |
Cost of sales | 132,244 | 132,131 | 133,203 | 116,328 | 114,470 | 121,821 | 108,325 | 107,050 | 513,906 | 451,666 | 361,848 |
Gross profit | 100,218 | 92,593 | 88,828 | 76,827 | 74,007 | 69,039 | 68,245 | 70,074 | ' | ' | ' |
Operating income | 63,168 | 51,985 | 56,215 | 52,177 | 41,588 | 38,723 | 41,349 | 40,032 | 223,545 | 161,692 | 129,639 |
Net income | $47,063 | $39,995 | $42,927 | $39,842 | $30,952 | $29,657 | $29,803 | $28,797 | $169,827 | $119,209 | $95,267 |
Basic | $1.16 | $0.98 | $1.06 | $0.98 | $0.77 | $0.73 | $0.74 | $0.72 | $4.18 | $2.96 | $2.38 |
Diluted | $1.15 | $0.98 | $1.05 | $0.98 | $0.76 | $0.73 | $0.74 | $0.71 | $4.16 | $2.94 | $2.36 |