Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 22, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | DRQ | ||
Entity Registrant Name | DRIL-QUIP INC | ||
Entity Central Index Key | 1,042,893 | ||
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 | 37,953,302 | ||
Entity Public Float | $ 2,895,800,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Products | $ 685,364 | $ 773,205 | $ 731,617 |
Services | 158,946 | 157,752 | 140,755 |
Total revenues | 844,310 | 930,957 | 872,372 |
Cost and expenses: | |||
Products | 382,925 | 428,125 | 436,359 |
Services | 76,361 | 85,402 | 77,547 |
Total cost of sales | 459,286 | 513,527 | 513,906 |
Selling, general and administrative | 88,044 | 92,762 | 94,806 |
Engineering and product development | 48,145 | 45,920 | 40,115 |
Total costs and expenses | 595,475 | 652,209 | 648,827 |
Operating income | 248,835 | 278,748 | 223,545 |
Interest income | 948 | 667 | 587 |
Interest expense | (12) | (35) | (35) |
Income before income taxes | 249,771 | 279,380 | 224,097 |
Income tax provision | 57,763 | 70,668 | 54,270 |
Net income | $ 192,008 | $ 208,712 | $ 169,827 |
Earnings per common share: | |||
Basic | $ 5 | $ 5.22 | $ 4.18 |
Diluted | $ 4.98 | $ 5.19 | $ 4.16 |
Weighted average common shares outstanding: | |||
Basic | 38,364 | 39,964 | 40,648 |
Diluted | 38,531 | 40,190 | 40,865 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 48,354 | $ 50,777 | $ 39,213 | $ 53,664 | $ 59,087 | $ 55,683 | $ 51,324 | $ 42,618 | $ 192,008 | $ 208,712 | $ 169,827 |
Other comprehensive loss, net of tax: | |||||||||||
Foreign currency translation adjustments | (51,060) | (30,034) | (6,340) | ||||||||
Total comprehensive income | $ 140,948 | $ 178,678 | $ 163,487 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 381,336 | $ 298,705 |
Trade receivables, net | 319,780 | 373,993 |
Inventories, net | 344,458 | 392,559 |
Deferred income taxes | 24,613 | 23,569 |
Prepaids and other current assets | 54,111 | 38,314 |
Total current assets | 1,124,298 | 1,127,140 |
Property, plant and equipment, net | 294,251 | 309,525 |
Other assets | 9,701 | 12,586 |
Total assets | 1,428,250 | 1,449,251 |
Current liabilities: | ||
Accounts payable | 30,934 | 53,837 |
Accrued income taxes | 14,052 | 16,903 |
Customer prepayments | 18,388 | 71,177 |
Accrued compensation | 17,957 | 21,527 |
Other accrued liabilities | 19,484 | 35,198 |
Total current liabilities | 100,815 | 198,642 |
Deferred income taxes | 2,977 | 5,417 |
Total liabilities | $ 103,792 | $ 204,059 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock: 10,000,000 shares authorized at $0.01 par value (none issued) | ||
Common stock: 100,000,000 shares authorized at $0.01 par value at December 31, 2015 and 2014, 37,951,223 and 38,932,508 issued and outstanding at December 31, 2015 and 2014 | $ 378 | $ 388 |
Additional paid-in capital | 16,480 | |
Retained earnings | 1,425,344 | 1,278,528 |
Accumulated other comprehensive losses | (101,264) | (50,204) |
Total stockholders' equity | 1,324,458 | 1,245,192 |
Total liabilities and stockholders' equity | $ 1,428,250 | $ 1,449,251 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
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 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 37,951,223 | 38,932,508 |
Common stock, shares outstanding | 37,951,223 | 38,932,508 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net income | $ 192,008 | $ 208,712 | $ 169,827 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 30,477 | 31,155 | 29,340 |
Stock-based compensation expense | 13,125 | 11,856 | 8,900 |
Loss (gain) on sale of equipment | 69 | (146) | 124 |
Deferred income taxes | (3,465) | (3,145) | (1,235) |
Changes in operating assets and liabilities: | |||
Trade receivables, net | 36,729 | (102,696) | (17,250) |
Inventories, net | 28,539 | (36,814) | (10,562) |
Prepaids and other assets | (17,883) | (13,239) | 6,161 |
Excess tax benefits of stock options and awards | (70) | (558) | (2,863) |
Accounts payable and accrued expenses | (89,374) | 54,188 | (20,213) |
Net cash provided by operating activities | 190,155 | 149,313 | 162,229 |
Investing activities | |||
Purchase of property, plant and equipment | (27,079) | (42,549) | (42,633) |
Proceeds from sale of equipment | 424 | 978 | 760 |
Net cash used in investing activities | (26,655) | (41,571) | (41,873) |
Financing activities | |||
Repurchase of common stock | (75,805) | (190,234) | (10,002) |
Proceeds from exercise of stock options | 2,170 | 2,849 | 10,506 |
Excess tax benefits of stock options and awards | 70 | 558 | 2,863 |
Net cash provided by (used in) financing activities | (73,565) | (186,827) | 3,367 |
Effect of exchange rate changes on cash activities | (7,304) | (6,566) | 3,442 |
Increase (decrease) in cash and cash equivalents | 82,631 | (85,651) | 127,165 |
Cash and cash equivalents at beginning of year | 298,705 | 384,356 | 257,191 |
Cash and cash equivalents at end of year | $ 381,336 | $ 298,705 | $ 384,356 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
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 (deficiency) -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) |
Foreign currency translation adjustment | (30,034) | (30,034) | |||
Net income | 208,712 | 208,712 | |||
Comprehensive income | 178,678 | ||||
Options exercised and awards vested | 2,849 | 1 | 2,848 | ||
Stock-based compensation | 11,856 | 11,856 | |||
Excess tax benefits (deficiency) -stock options and awards | 25 | 25 | |||
Treasury stock | (190,234) | (20) | (190,214) | ||
Balance at Dec. 31, 2014 | 1,245,192 | 388 | 16,480 | 1,278,528 | (50,204) |
Foreign currency translation adjustment | (51,060) | (51,060) | |||
Net income | 192,008 | 192,008 | |||
Comprehensive income | 140,948 | ||||
Options exercised and awards vested | 2,170 | 2,170 | |||
Stock-based compensation | 13,125 | 13,125 | |||
Excess tax benefits (deficiency) -stock options and awards | (1,172) | (1,172) | |||
Treasury stock | (75,805) | (10) | $ (30,603) | (45,192) | |
Balance at Dec. 31, 2015 | $ 1,324,458 | $ 378 | $ 1,425,344 | $ (101,264) |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Parenthetical) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Options exercised and awards vested in shares | 168,268 | 48,523 | 284,653 |
Treasury stock shares | 1,184,700 | 2,023,172 | 85,840 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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, located in Aberdeen with branches in Denmark, Norway and Holland; Dril-Quip Asia Pacific PTE Ltd., located in Singapore; Dril-Quip do Brasil LTDA, located in Macae, Brazil; and DQ Holdings Pty. Ltd., located in Perth, Australia. Other subsidiaries include Dril-Quip (Ghana) Ltd. located in Takoradi, Ghana, PT DQ Oilfield Services Indonesia located in Jakarta, Indonesia, Dril-Quip (Nigeria) Ltd. located in Port Harcourt, Nigeria, Dril-Quip Egypt for Petroleum Services S.A.E. located in Alexandria, Egypt, Dril-Quip Oilfield Services (Tianjin) Co. Ltd. located in Tianjin, China and Dril-Quip Qatar, LLC located in Doha, Qatar. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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. Inventories Inventory costs are determined principally by the use of the first-in, first-out (FIFO) costing method and are stated at the lower of cost or market. Company manufactured inventory is valued principally using standard costs, which are calculated based upon direct costs incurred and overhead allocations and approximate actual costs. Inventory purchased from third-party vendors is principally valued at the weighted average cost. Periodically, obsolescence reviews are performed on slow-moving inventories and reserves are established based on current assessments about future demands and market conditions. The inventory values have been reduced by a reserve for excess and slow-moving inventories. Inventory reserves of $39.2 million and $34.6 million were recorded as of December 31, 2015 and 2014, 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 2015, 2014 or 2013. 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 revenues The Company recognizes product revenues from two methods: • product revenues recognized under the percentage-of-completion method; and • product revenues from the sale of products that do not qualify for the percentage-of-completion method. Revenues recognized under the percentage-of-completion method The Company uses the percentage-of-completion method on long-term project contracts that have the following characteristics: • the contracts call for products which are designed to customer specifications; • the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration; • the contracts contain specific terms as to milestones, progress billings and delivery dates; and • product requirements cannot be filled directly from the Company’s standard inventory. For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the 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, 2015 and 2014, receivables included $70.8 million and $68.0 million of unbilled receivables, respectively. For the year ended December 31, 2015, there were 14 projects representing approximately 16% of the Company’s total revenues and approximately 19% of its product revenues, and 17 projects during 2014 representing approximately 11% of the Company’s total revenues and approximately 13% of its product revenues, which were accounted for using percentage-of-completion accounting. Revenues not recognized under the percentage-of-completion method Revenues from the sale of inventory products, not accounted for under the percentage-of-completion method, are recorded at the time the manufacturing processes are complete and ownership is transferred to the customer. Service revenues The Company earns service revenues from three sources: • technical advisory assistance; • rental of running tools; and • rework and reconditioning of customer-owned Dril-Quip products. The Company does not install products for its customers, but it does provide technical advisory assistance. At the time of delivery of the product, the customer is not obligated to buy or rent the Company’s running tools and the Company is not obligated to perform any subsequent services relating to installation. Technical advisory assistance service revenue is recorded at the time the service is rendered. Service revenues associated with the rental of running and installation tools are recorded as earned. Rework and reconditioning service revenues are recorded when the refurbishment process is complete. The Company normally negotiates contracts for products, including those accounted for under the percentage-of-completion method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may use a third party or their own personnel. Foreign Currency The financial statements of foreign subsidiaries are translated into U.S. dollars at period-end exchange rates except for revenues and expenses, which are translated at average monthly rates. Translation adjustments are reflected as a separate component of stockholders’ equity and have no effect on current earnings or cash flows. Foreign currency exchange transactions are recorded using the exchange rate at the date of the settlement. The Company experienced exchange gains of approximately $3.9 million and $3.4 million in 2015 and 2014, respectively, and exchange losses of $4.6 million in 2013, net of income taxes. These amounts are included in selling, general and administrative costs in the Consolidated Statements of Income on a pre-tax basis. Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature. Concentration of Credit Risk Financial instruments which subject the Company to concentrations of credit risk primarily include trade receivables. The Company grants credit to its customers, which operate primarily in the oil and gas industry. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company maintains reserves for potential losses, and actual losses have historically been within management’s expectations. In addition, the Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in obligations of the U.S. Treasury and repurchase agreements backed by U.S. Treasury obligations. Changes in the financial markets and interest rates could affect the interest earned on short-term investments. Earnings Per Share Basic earnings per 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, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | 3. New Accounting Standards In November 2015, the FASB issued ASU 2015-17 “Income Taxes (Topic 740).” In an effort to reduce complexity the requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts will no longer be necessary. In the future, all deferred income taxes will be considered noncurrent and will continue to be offset into a single amount within each country. The standard is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. The Company’s financial statements will be revised to reflect this amendment beginning in the first quarter of 2017. In July 2015, the FASB issued ASU 2015-11 “Simplifying the Measurement of Inventory (Topic 330).” This standard states that inventory within the scope of this update should be measured at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is evaluating the impact of the new guidance on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606).” The amendment applies a new five-step revenue recognition model to be used in recognizing revenues associated with customer contracts. The amendment requires disclosure sufficient to enable readers of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures, significant judgments and changes in judgments and assets recognized from the costs to obtain or fulfill the contract. The standard’s effective date was originally for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. On April 1, 2015, the FASB voted to defer the effective date by one year to December 15, 2017 and interim periods within annual reporting periods beginning after December 15, 2017. The Company is evaluating the impact of the new guidance on its consolidated financial statements. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 4. Inventories, net Inventories consist of the following: December 31, 2015 2014 (In thousands) Raw materials and supplies $ 101,311 $ 107,357 Work in progress 104,102 112,514 Finished goods 178,292 207,295 383,705 427,166 Less: allowance for obsolete and excess inventory (39,247 ) (34,607 ) Total inventory $ 344,458 $ 392,559 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | 5. Property, Plant and Equipment, net Property, plant and equipment consists of: Estimated December 31, 2015 2014 (In thousands) Land and improvements 10-25 years $ 27,753 $ 26,854 Buildings 15-40 years 188,420 194,587 Machinery, equipment and other 3-10 years 351,477 340,279 567,650 561,720 Less accumulated depreciation (273,399 ) (252,195 ) Total property, plant and equipment $ 294,251 $ 309,525 Depreciation expense totaled $30.5 million, $31.2 million and $29.3 million for 2015, 2014 and 2013, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, which are the years ended December 31, 2008 through December 31, 2014. 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, 2015 and 2014. 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, 2015 and 2014, the Company determined that a valuation allowance was not necessary. Income before income taxes consisted of the following: Year Ended December 31, 2015 2014 2013 (In thousands) Domestic $ 107,158 $ 124,571 $ 98,883 Foreign 142,613 154,809 125,214 Total $ 249,771 $ 279,380 $ 224,097 The income tax provision (benefit) consists of the following: Year Ended December 31, 2015 2014 2013 (In thousands) Current: Federal $ 33,017 $ 43,652 $ 30,962 Foreign 28,229 30,022 24,543 Total current 61,246 73,674 55,505 Deferred: Federal (1,611 ) (5,916 ) (1,299 ) Foreign (1,872 ) 2,910 64 Total deferred (3,483 ) (3,006 ) (1,235 ) Total $ 57,763 $ 70,668 $ 54,270 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, 2015 2014 2013 Federal income tax statutory rate 35.0 % 35.0 % 35.0 % Foreign income tax rate differential (7.3 ) (6.0 ) (6.0 ) Foreign development tax incentive (1.3 ) (1.6 ) (2.6 ) Manufacturing benefit (1.4 ) (1.7 ) (1.4 ) Foreign intellectual property tax benefit (0.8 ) (0.0 ) (0.0 ) Other (1.1 ) (0.4 ) (0.8 ) Effective income tax rate 23.1 % 25.3 % 24.2 % As part of the United Kingdom’s (U.K.) growth agenda, the “patent box” tax regime, effective April 1, 2013, was introduced to provide an additional incentive to develop, commercialize and retain innovative patented technology in the U.K. This foreign intellectual property tax benefit enables the Company’s U.K. operations to begin to phase in a corporate tax rate of 10% on profits earned from qualifying products over four years beginning April 1, 2013. The full benefit of the patent box tax regime will become available in April 2017. The Company has recorded in December 2015 a total “patent box” benefit of approximately $2.0 million for the years ended December 31, 2013, 2014 and 2015. It is reasonably possible that the benefit could be reviewed by the U.K. taxing authority and the amount of benefit claimed could be adjusted. However, the Company believes that it is more likely than not that the tax positions taken by the Company, including resolution of any related appeals or litigation, will be sustained upon examination based on the technical merits of the positions and as such, no uncertain tax position has been recognized. 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 net deferred tax assets (liabilities) are as follows: December 31, 2015 2014 (In thousands) Net current deferred tax assets: Inventory $ 11,062 $ 10,835 Inventory reserve 8,926 8,535 Allowance for doubtful accounts 1,578 1,022 Reserve for accrued liabilities 1,205 510 Other 1,842 2,667 Net current deferred tax assets 24,613 23,569 Net non-current deferred tax liability: Property, plant and equipment (10,583 ) (11,295 ) Stock options 6,898 5,735 Other 708 143 Net non-current deferred tax liabilities (2,977 ) (5,417 ) Net deferred tax asset $ 21,636 $ 18,152 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 $784 million as of December 31, 2015. 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. The Company paid $61.7 million, $69.9 million and $41.0 million in income taxes in 2015, 2014 and 2013, respectively. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities | 7. Other Accrued Liabilities Other accrued liabilities consist of the following: December 31, 2015 2014 (In thousands) Payroll taxes $ 2,639 $ 3,354 Property, sales and other taxes 7,059 12,702 Commissions payable 1,925 3,917 Accrued vendor costs 3,134 10,162 Other 4,727 5,063 Total $ 19,484 $ 35,198 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
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 $5.7 million, $5.9 million and $4.9 million in 2015, 2014 and 2013, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
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 $5.1 million, $4.2 million and $3.5 million in 2015, 2014 and 2013, respectively. Future annual minimum lease commitments at December 31, 2015 are as follows: 2016—$3.2 million; 2017—$2.1 million; 2018—$1.8 million; 2019—$1.5 million; 2020—$1.3 million; and thereafter—$4.4 million. Brazilian Tax Issue From 2002 to 2007, the Company’s Brazilian subsidiary imported goods through the State of Espirito Santo in Brazil and subsequently transferred them to its facility in the State of Rio de Janeiro. During that period, the Company’s Brazilian subsidiary paid taxes to the State of Espirito Santo on its imports. Upon the final sale of these goods, the Company’s Brazilian subsidiary collected taxes from customers and remitted them to the State of Rio de Janeiro net of the taxes paid on importation of those goods to the State of Espirito Santo in accordance with the Company’s understanding of Brazilian tax laws. In August 2007, the State of Rio de Janeiro served the Company’s Brazilian subsidiary with assessments to collect a state tax on the importation of goods through the State of Espirito Santo from 2002 to 2007 claiming that these taxes were due and payable to it under applicable law. The Company settled these assessments with payments to the State of Rio de Janeiro of $12.2 million in March 2010 and $3.9 million in December 2010. Approximately $7.8 million of these settlement payments were attributable to penalties, interest and amounts that had expired under the statute of limitations so that amount was recorded as an expense. The remainder of the settlement payments generated credits (recorded as a long-term prepaid tax) to be used to offset future state taxes on sales to customers in the State of Rio de Janeiro, subject to certification by the tax authorities. During the second quarter of 2015, the tax authorities certified approximately $8.3 million of those credits paid in 2010 and granted an additional $2.3 million in inflation-related credits. The additional amount of credits granted by the tax authorities increased long-term prepaid taxes and decreased selling, general and administrative expenses by $2.3 million. In December 2010 and January 2011, the Company’s Brazilian subsidiary was served with two additional assessments totaling approximately $13.0 million from the State of Rio de Janeiro to cancel the credits associated with the tax payments to the State of Espirito Santo (“Santo Credits”) on the importation of goods from July 2005 to October 2007. The Santo Credits are not related to the credits described above. The Company has objected to these assessments on the grounds that they would represent double taxation on the importation of the same goods and that the Company is entitled to the credits under applicable Brazilian law. With regard to the December 2010 assessment, the Company’s Brazilian subsidiary filed an appeal with a State of Rio de Janeiro judicial court to annul the tax assessment following a ruling against the Company by the tax administration’s highest council. In connection with that appeal, the Company was required to deposit with the court approximately $3.1 million in December 2014 as the full amount of the assessment with penalties and interest. The Company intends to file a similar appeal in the judicial system with regard to the January 2011 assessment as a result of a recent ruling against the Company by the tax administration’s highest council once that ruling is finalized. The Company believes that these credits are valid and that success in the judicial court process is probable. Based upon this analysis, the Company has not accrued any liability in conjunction with this matter. Since 2007, the Company’s Brazilian subsidiary has paid taxes on the importation of goods directly to the State of Rio de Janeiro and the Company does not expect any similar issues to exist for periods subsequent to 2007. General The Company operates its business and markets its products and services in most of the significant oil and gas producing areas in the world and is, therefore, subject to the risks customarily attendant to international operations and dependency on the condition of the oil and gas industry. Additionally, products of the Company are used in potentially hazardous drilling, completion, and production applications that can cause personal injury, product liability and environmental claims. Although exposure to such risk has not resulted in any significant problems in the past, there can be no assurance that ongoing and future developments will not adversely impact the Company. The Company is also involved in a number of legal actions arising in the ordinary course of business. Although no assurance can be given with respect to the ultimate outcome of such legal action, in the opinion of management, the ultimate liability with respect thereto will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. |
Geographic Segments
Geographic Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Geographic Segments | 10. Geographic Segments Year ended December 31, 2015 2014 2013 (In thousands) Revenues: Western Hemisphere Products $ 332,452 $ 430,597 $ 420,439 Services 88,376 74,544 72,328 Intercompany 53,429 55,094 51,767 Total $ 474,257 $ 560,235 $ 544,534 Eastern Hemisphere Products $ 234,853 $ 205,185 $ 186,074 Services 52,963 59,794 46,653 Intercompany 5,799 10,719 1,254 Total $ 293,615 $ 275,698 $ 233,981 Asia-Pacific Products $ 118,059 $ 137,423 $ 125,104 Services 17,607 23,414 21,774 Intercompany 5,124 3,165 9,155 Total $ 140,790 $ 164,002 $ 156,033 Summary Products $ 685,364 $ 773,205 $ 731,617 Services 158,946 157,752 140,755 Intercompany 64,352 68,978 62,176 Eliminations (64,352 ) (68,978 ) (62,176 ) Total $ 844,310 $ 930,957 $ 872,372 Income before income taxes: Western Hemisphere $ 112,499 $ 143,206 $ 111,498 Eastern Hemisphere 89,349 79,146 49,672 Asia-Pacific 38,155 54,302 55,136 Eliminations 9,768 2,726 7,791 Total $ 249,771 $ 279,380 $ 224,097 Total Long-Lived Assets: Western Hemisphere $ 208,408 $ 221,597 $ 216,104 Eastern Hemisphere 43,449 45,517 43,430 Asia-Pacific 55,021 57,923 59,192 Eliminations (2,926 ) (2,926 ) (2,927 ) Total $ 303,952 $ 322,111 $ 315,799 Total Assets: Western Hemisphere $ 677,460 $ 731,448 $ 805,399 Eastern Hemisphere 391,672 375,781 316,473 Asia-Pacific 372,823 354,329 292,463 Eliminations (13,705 ) (12,307 ) (17,530 ) Total $ 1,428,250 $ 1,449,251 $ 1,396,805 The Company’s operations are organized into three geographic segments—Western Hemisphere (including North and South America; headquartered in Houston, Texas), Eastern Hemisphere (including Europe and Africa; headquartered in Aberdeen, Scotland) and Asia-Pacific (including the Pacific Rim, Southeast Asia, Australia, India and the Middle East; headquartered in Singapore). Each of these segments sells similar products and services and the Company has major manufacturing facilities in all three of its 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 2015, Chevron and its affiliated companies accounted for approximately 12% of the Company’s total revenues. In 2014, Chevron and its affiliated companies accounted for approximately 10% of the Company’s total revenues and in 2013, Petrobras and its affiliated companies accounted for approximately 11% of the Company’s total revenues. No other customer accounted for more than 10% of the Company’s total revenues in 2015, 2014 or 2013. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 11. 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. |
Stock-Based Compensation and St
Stock-Based Compensation and Stock Awards | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Stock Awards | 12. Stock-Based Compensation and Stock Awards Stock Options On May 13, 2004, the Company’s stockholders approved the 2004 Incentive Plan of Dril-Quip, Inc. (as amended in 2012 and approved by the Company’s stockholders on May 10, 2012, the “2004 Plan”), which reserved up to 2,696,294 shares of common stock to be used in connection with the 2004 Plan. Persons eligible for awards under the 2004 Plan are employees holding positions of responsibility with the Company or any of its subsidiaries and members of the Board of Directors. Options granted under the 2004 Plan have a term of ten years and become exercisable in cumulative annual increments of one-fourth of the total number of shares of common stock subject thereto, beginning on the first anniversary of the date of the grant. The fair value of stock options granted was estimated on the grant date using the Black-Scholes option pricing model. The expected life was based on the Company’s historical trends, and volatility is based on the historical volatility over the expected life of the options. The risk-free interest rate is based on U.S. Treasury yield curve at the grant date. The Company does not pay dividends and, therefore, there is no assumed dividend yield. Option activity for the year ended December 31, 2015 was as follows: Number of Weighted Aggregate Weighted Average Outstanding at December 31, 2014 459,247 55.86 Granted — — Exercised (38,500 ) 56.37 Forfeited (5,625 ) 68.23 Outstanding at December 31, 2015 415,122 $ 55.64 $ 3.4 4.2 Exercisable at December 31, 2015 415,122 $ 55.64 $ 3.4 4.2 The total intrinsic value of stock options exercised in 2015, 2014 and 2013 was $751,000, $2.0 million and $10.7 million, respectively. The income tax benefit realized from stock options exercised was $263,000, $718,000 and $3.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. There were no anti-dilutive stock option shares on December 31, 2015. Stock-based compensation is recognized as selling, general and administrative expense in the accompanying Consolidated Statements of Income. During the years ended December 31, 2015, 2014 and 2013, stock-based compensation expense for stock option awards totaled $1.1 million, $2.5 million and $3.4 million, respectively. No stock-based compensation expense was capitalized during 2015, 2014 or 2013. 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, 2015, there was no unrecognized compensation expense related to nonvested stock options. Restricted Stock Awards On October 28, 2015 and 2014, 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 RSAs. The awards issued under the 2004 Plan are restricted as to transference, sale and other disposition. These RSAs vest ratably over a three year period. The RSAs may also vest in case of a change of control. Upon termination, whether voluntary or involuntary, the RSAs that have not vested will be returned to the Company resulting in stock forfeitures. The fair market value of the stock on the date of grant is amortized and charged to selling, general and administrative expense over the stipulated time period over which the RSAs vest on a straight-line basis, net of estimated forfeitures. The Company’s RSA activity and related information is presented below: RSA Weighted Nonvested balance at December 31, 2014 160,154 $ 93.78 Granted 123,224 66.02 Vested (79,797 ) 89.10 Forfeited (9,985 ) 96.29 Nonvested balance at December 31, 2015 193,596 $ 77.91 Restricted stock awards compensation expense for the year ended December 31, 2015 totaled $7.2 million and $6.3 million for 2014 and $3.9 million for 2013. For 2015, 2014 and 2013, the income tax benefit recognized in net income for RSAs was $1.8 million, $2.2 million and $2.0 million, respectively. As of December 31, 2015, there was $14.0 million of total unrecognized compensation cost related to nonvested RSAs, which is expected to be recognized over a weighted average period of 1.6 years. There were 96,100 anti-dilutive restricted shares on December 31, 2015. Performance Unit Awards On October 28, 2015 and 2014, the Company awarded 67,346 and 45,729 performance unit awards (Performance Units), respectively, pursuant to the 2004 Plan to officers and key employees. The Performance Units were valued based on a Monte Carlo simulation at $79.00 for 2015 grants and $126.84 for the 2014 grants, approximately 120.2% and 139.4%, respectively, 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) in comparison to the 15 component companies of the Philadelphia Oil Service Index. The TSR is calculated over a three year period from October 1, 2014 and 2015 to September 30, 2017 and 2018 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: 2014 2015 Grant date October 28, 2014 October 28, 2015 Performance period October 1, 2014 to September 30, 2017 October 1, 2015 to September 30, 2018 Volatility 27.8% 29.5% Risk-free interest rate 0.8081% 0.9795% Grant date price $91.02 $65.72 The Company’s Performance Unit activity and related information is presented below: Number of Weighted Nonvested balance at December 31, 2014 123,786 $ 113.98 Granted 67,346 79.25 Vested (48,086 ) 84.66 Forfeited (3,478 ) 114.50 Nonvested balance at December 31, 2015 139,568 $ 107.31 Performance Unit compensation expense was $4.5 million for the year ended December 31, 2015, $3.1 million for 2014 and $1.6 million for 2013. For 2015, 2014 and 2013, the income tax benefit recognized in net income for Performance Units was $1.1 million, none and none, respectively. As of December 31, 2015, there was $9.3 million of total unrecognized compensation expense related to nonvested Performance Units which is to be recognized over a weighted average period of 1.6 years. There were 57,200 anti-dilutive Performance Units at December 31, 2015. Director Stock Compensation Awards In June 2014, the Board of Directors authorized a stock compensation program for the directors pursuant to the 2004 Plan. Under this program, the Directors may elect to receive all or a portion of their fees in the form of restricted stock awards (DSA) in an amount equal to 125% of the fees in lieu of cash. The awards are made quarterly on the first business day after the end of each calendar quarter and vest on January 1 on the second year after the grant date. The Company DSA activity for December 31, 2015 is presented below: DSA Number of Weighted Nonvested balance at December 31, 2014 1,204 $ 89.40 Granted 6,843 68.73 Vested (1,885 ) 72.00 Forfeited — — Nonvested balance at December 31, 2015 6,162 $ 71.77 Director stock compensation awards expense for 2015 was $328,000 as compared to $21,600 for 2014. For 2015 and 2014, the income tax benefit recognized in net income for DSAs was $41,000 and none, respectively. There was $225,000 of unrecognized compensation expense related to nonvested DSAs, which is expected to be recognized over a weighted average period of one year. There were 450 anti-diluted DSA shares on December 31, 2015. The following table summarizes information for equity compensation plans in effect as of December 31, 2015: Number of securities Weighted-average Number of securities Plan category (a) (b) (c) Equity compensation plans approved by stockholders Stock options 415,122 $ 55.64 441,914 Equity compensation plans not approved by stockholders — — — Total 415,122 $ 55.64 441,914 (1) Excludes 199,758 shares of unvested RSAs and DSAs and 139,568 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, 2015 | |
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, 2015 2014 2013 (In thousands, except per share amounts) Net income $ 192,008 $ 208,712 $ 169,827 Weighted average basic common shares outstanding 38,364 39,964 40,648 Effect of dilutive securities—stock options and awards 167 226 217 Total shares and dilutive securities 38,531 40,190 40,865 Basic earnings per common share $ 5.00 $ 5.22 $ 4.18 Diluted earnings per common share $ 4.98 $ 5.19 $ 4.16 |
Stock Repurchase Plan
Stock Repurchase Plan | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stock Repurchase Plan | 14. Stock Repurchase Plan On February 26, 2015, the Company announced that its Board of Directors authorized a stock repurchase plan under which the Company is authorized to repurchase up to $100 million of its common stock. As of December 31, 2015, the Company had repurchased and cancelled 1,184,700 shares at an average cost of $63.98 per share for a total cost of $75.8 million. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited): | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited): | 15. Quarterly Results of Operations (Unaudited): Quarter Ended March 31 June 30 Sept. 30 Dec. 31 (In thousands, except per share data) (Unaudited) 2015 Revenues $ 226,002 $ 215,276 $ 201,402 $ 201,630 Cost of sales 125,138 117,664 108,132 108,352 Gross profit 100,864 97,612 93,270 93,278 Operating income 71,693 52,579 64,255 60,308 Net income 53,664 39,213 50,777 48,354 Earnings per share: Basic(1) $ 1.38 $ 1.01 $ 1.32 $ 1.28 Diluted(1) 1.38 1.01 1.32 1.28 2014 Revenues $ 204,073 $ 230,315 $ 241,750 $ 254,819 Cost of sales 110,787 124,993 135,250 142,497 Gross profit 93,286 105,322 106,500 112,322 Operating income 58,567 68,954 72,992 78,235 Net income 42,618 51,324 55,683 59,087 Earnings per share: Basic(1) $ 1.05 $ 1.27 $ 1.41 $ 1.51 Diluted(1) 1.04 1.27 1.40 1.50 (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. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts Description Balance at Charges to costs Recoveries Balance at end (In thousands) Allowance for doubtful trade receivables December 31, 2015 $ 6,241 $ 5,741 $ (4,243 ) $ 7,739 December 31, 2014 2,364 4,832 (955 ) 6,241 December 31, 2013 2,113 910 (659 ) 2,364 Allowance for excess and slow moving inventory December 31, 2015 $ 34,607 $ 8,512 $ (3,872 ) $ 39,247 December 31, 2014 33,216 3,951 (2,560 ) 34,607 December 31, 2013 30,426 3,554 (764 ) 33,216 |
Significant Accounting Polici25
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition, inventories and contingent liabilities. |
Cash and Cash Equivalents | Cash and Cash Equivalents Short-term investments that have a maturity of three months or less from the date of purchase are classified as cash equivalents. The Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in U.S. Treasury obligations and repurchase agreements backed by U.S. Treasury obligations. The Company’s investment objectives continue to be the preservation of capital and the maintenance of liquidity. |
Trade Receivables | Trade Receivables The Company maintains an allowance for doubtful accounts on trade receivables equal to amounts estimated to be uncollectible. This estimate is based upon historical collection experience combined with a specific review of each customer’s outstanding trade receivable balance. Management believes that the allowance for doubtful accounts is adequate; however, actual write-offs may exceed the recorded allowance. |
Inventories | Inventories Inventory costs are determined principally by the use of the first-in, first-out (FIFO) costing method and are stated at the lower of cost or market. Company manufactured inventory is valued principally using standard costs, which are calculated based upon direct costs incurred and overhead allocations and approximate actual costs. Inventory purchased from third-party vendors is principally valued at the weighted average cost. Periodically, obsolescence reviews are performed on slow-moving inventories and reserves are established based on current assessments about future demands and market conditions. The inventory values have been reduced by a reserve for excess and slow-moving inventories. Inventory reserves of $39.2 million and $34.6 million were recorded as of December 31, 2015 and 2014, 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 2015, 2014 or 2013. |
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 revenues The Company recognizes product revenues from two methods: • product revenues recognized under the percentage-of-completion method; and • product revenues from the sale of products that do not qualify for the percentage-of-completion method. |
Revenues recognized under the percentage-of-completion method | Revenues recognized under the percentage-of-completion method The Company uses the percentage-of-completion method on long-term project contracts that have the following characteristics: • the contracts call for products which are designed to customer specifications; • the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration; • the contracts contain specific terms as to milestones, progress billings and delivery dates; and • product requirements cannot be filled directly from the Company’s standard inventory. For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the 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, 2015 and 2014, receivables included $70.8 million and $68.0 million of unbilled receivables, respectively. For the year ended December 31, 2015, there were 14 projects representing approximately 16% of the Company’s total revenues and approximately 19% of its product revenues, and 17 projects during 2014 representing approximately 11% of the Company’s total revenues and approximately 13% of its product revenues, which were accounted for using percentage-of-completion accounting. |
Revenues not recognized under the percentage-of-completion method | Revenues not recognized under the percentage-of-completion method Revenues from the sale of inventory products, not accounted for under the percentage-of-completion method, are recorded at the time the manufacturing processes are complete and ownership is transferred to the customer. |
Service revenues | Service revenues The Company earns service revenues from three sources: • technical advisory assistance; • rental of running tools; and • rework and reconditioning of customer-owned Dril-Quip products. The Company does not install products for its customers, but it does provide technical advisory assistance. At the time of delivery of the product, the customer is not obligated to buy or rent the Company’s running tools and the Company is not obligated to perform any subsequent services relating to installation. Technical advisory assistance service revenue is recorded at the time the service is rendered. Service revenues associated with the rental of running and installation tools are recorded as earned. Rework and reconditioning service revenues are recorded when the refurbishment process is complete. The Company normally negotiates contracts for products, including those accounted for under the percentage-of-completion method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may use a third party or their own personnel. |
Foreign Currency | Foreign Currency The financial statements of foreign subsidiaries are translated into U.S. dollars at period-end exchange rates except for revenues and expenses, which are translated at average monthly rates. Translation adjustments are reflected as a separate component of stockholders’ equity and have no effect on current earnings or cash flows. Foreign currency exchange transactions are recorded using the exchange rate at the date of the settlement. The Company experienced exchange gains of approximately $3.9 million and $3.4 million in 2015 and 2014, respectively, and exchange losses of $4.6 million in 2013, net of income taxes. These amounts are included in selling, general and administrative costs in the Consolidated Statements of Income on a pre-tax basis. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which subject the Company to concentrations of credit risk primarily include trade receivables. The Company grants credit to its customers, which operate primarily in the oil and gas industry. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company maintains reserves for potential losses, and actual losses have historically been within management’s expectations. In addition, the Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in obligations of the U.S. Treasury and repurchase agreements backed by U.S. Treasury obligations. Changes in the financial markets and interest rates could affect the interest earned on short-term investments. |
Earnings Per Share | Earnings Per Share Basic earnings per 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. |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31, 2015 2014 (In thousands) Raw materials and supplies $ 101,311 $ 107,357 Work in progress 104,102 112,514 Finished goods 178,292 207,295 383,705 427,166 Less: allowance for obsolete and excess inventory (39,247 ) (34,607 ) Total inventory $ 344,458 $ 392,559 |
Property, Plant and Equipment27
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of: Estimated December 31, 2015 2014 (In thousands) Land and improvements 10-25 years $ 27,753 $ 26,854 Buildings 15-40 years 188,420 194,587 Machinery, equipment and other 3-10 years 351,477 340,279 567,650 561,720 Less accumulated depreciation (273,399 ) (252,195 ) Total property, plant and equipment $ 294,251 $ 309,525 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Income before income taxes consisted of the following: Year Ended December 31, 2015 2014 2013 (In thousands) Domestic $ 107,158 $ 124,571 $ 98,883 Foreign 142,613 154,809 125,214 Total $ 249,771 $ 279,380 $ 224,097 |
Schedule of Income Tax Provision (Benefit) | The income tax provision (benefit) consists of the following: Year Ended December 31, 2015 2014 2013 (In thousands) Current: Federal $ 33,017 $ 43,652 $ 30,962 Foreign 28,229 30,022 24,543 Total current 61,246 73,674 55,505 Deferred: Federal (1,611 ) (5,916 ) (1,299 ) Foreign (1,872 ) 2,910 64 Total deferred (3,483 ) (3,006 ) (1,235 ) Total $ 57,763 $ 70,668 $ 54,270 |
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, 2015 2014 2013 Federal income tax statutory rate 35.0 % 35.0 % 35.0 % Foreign income tax rate differential (7.3 ) (6.0 ) (6.0 ) Foreign development tax incentive (1.3 ) (1.6 ) (2.6 ) Manufacturing benefit (1.4 ) (1.7 ) (1.4 ) Foreign intellectual property tax benefit (0.8 ) (0.0 ) (0.0 ) Other (1.1 ) (0.4 ) (0.8 ) Effective income tax rate 23.1 % 25.3 % 24.2 % |
Components of Net Deferred Tax Assets (Liabilities) | Significant components of the Company’s net deferred tax assets (liabilities) are as follows: December 31, 2015 2014 (In thousands) Net current deferred tax assets: Inventory $ 11,062 $ 10,835 Inventory reserve 8,926 8,535 Allowance for doubtful accounts 1,578 1,022 Reserve for accrued liabilities 1,205 510 Other 1,842 2,667 Net current deferred tax assets 24,613 23,569 Net non-current deferred tax liability: Property, plant and equipment (10,583 ) (11,295 ) Stock options 6,898 5,735 Other 708 143 Net non-current deferred tax liabilities (2,977 ) (5,417 ) Net deferred tax asset $ 21,636 $ 18,152 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consist of the following: December 31, 2015 2014 (In thousands) Payroll taxes $ 2,639 $ 3,354 Property, sales and other taxes 7,059 12,702 Commissions payable 1,925 3,917 Accrued vendor costs 3,134 10,162 Other 4,727 5,063 Total $ 19,484 $ 35,198 |
Geographic Segments (Tables)
Geographic Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | Year ended December 31, 2015 2014 2013 (In thousands) Revenues: Western Hemisphere Products $ 332,452 $ 430,597 $ 420,439 Services 88,376 74,544 72,328 Intercompany 53,429 55,094 51,767 Total $ 474,257 $ 560,235 $ 544,534 Eastern Hemisphere Products $ 234,853 $ 205,185 $ 186,074 Services 52,963 59,794 46,653 Intercompany 5,799 10,719 1,254 Total $ 293,615 $ 275,698 $ 233,981 Asia-Pacific Products $ 118,059 $ 137,423 $ 125,104 Services 17,607 23,414 21,774 Intercompany 5,124 3,165 9,155 Total $ 140,790 $ 164,002 $ 156,033 Summary Products $ 685,364 $ 773,205 $ 731,617 Services 158,946 157,752 140,755 Intercompany 64,352 68,978 62,176 Eliminations (64,352 ) (68,978 ) (62,176 ) Total $ 844,310 $ 930,957 $ 872,372 Income before income taxes: Western Hemisphere $ 112,499 $ 143,206 $ 111,498 Eastern Hemisphere 89,349 79,146 49,672 Asia-Pacific 38,155 54,302 55,136 Eliminations 9,768 2,726 7,791 Total $ 249,771 $ 279,380 $ 224,097 Total Long-Lived Assets: Western Hemisphere $ 208,408 $ 221,597 $ 216,104 Eastern Hemisphere 43,449 45,517 43,430 Asia-Pacific 55,021 57,923 59,192 Eliminations (2,926 ) (2,926 ) (2,927 ) Total $ 303,952 $ 322,111 $ 315,799 Total Assets: Western Hemisphere $ 677,460 $ 731,448 $ 805,399 Eastern Hemisphere 391,672 375,781 316,473 Asia-Pacific 372,823 354,329 292,463 Eliminations (13,705 ) (12,307 ) (17,530 ) Total $ 1,428,250 $ 1,449,251 $ 1,396,805 |
Stock-Based Compensation and 31
Stock-Based Compensation and Stock Awards (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Option Activity | Option activity for the year ended December 31, 2015 was as follows: Number of Weighted Aggregate Weighted Average Outstanding at December 31, 2014 459,247 55.86 Granted — — Exercised (38,500 ) 56.37 Forfeited (5,625 ) 68.23 Outstanding at December 31, 2015 415,122 $ 55.64 $ 3.4 4.2 Exercisable at December 31, 2015 415,122 $ 55.64 $ 3.4 4.2 |
Summary of RSA Activity | The Company’s RSA activity and related information is presented below: RSA Weighted Nonvested balance at December 31, 2014 160,154 $ 93.78 Granted 123,224 66.02 Vested (79,797 ) 89.10 Forfeited (9,985 ) 96.29 Nonvested balance at December 31, 2015 193,596 $ 77.91 |
Summary of PSA Activity | The Company’s Performance Unit activity and related information is presented below: Number of Weighted Nonvested balance at December 31, 2014 123,786 $ 113.98 Granted 67,346 79.25 Vested (48,086 ) 84.66 Forfeited (3,478 ) 114.50 Nonvested balance at December 31, 2015 139,568 $ 107.31 |
Schedule of DSA Activity | The Company DSA activity for December 31, 2015 is presented below: DSA Number of Weighted Nonvested balance at December 31, 2014 1,204 $ 89.40 Granted 6,843 68.73 Vested (1,885 ) 72.00 Forfeited — — Nonvested balance at December 31, 2015 6,162 $ 71.77 |
Schedule of Information for Stock Option Plans | The following table summarizes information for equity compensation plans in effect as of December 31, 2015: Number of securities Weighted-average Number of securities Plan category (a) (b) (c) Equity compensation plans approved by stockholders Stock options 415,122 $ 55.64 441,914 Equity compensation plans not approved by stockholders — — — Total 415,122 $ 55.64 441,914 (1) Excludes 199,758 shares of unvested RSAs and DSAs and 139,568 of unvested Performance Units, which were granted pursuant to the 2004 Plan approved by the stockholders. |
Monte Carlo Simulation [Member] | |
Schedule of Assumptions Used in Monte Carlo Simulation | Assumptions used in the Monte Carlo simulation are as follows: 2014 2015 Grant date October 28, 2014 October 28, 2015 Performance period October 1, 2014 to September 30, 2017 October 1, 2015 to September 30, 2018 Volatility 27.8% 29.5% Risk-free interest rate 0.8081% 0.9795% Grant date price $91.02 $65.72 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 (In thousands, except per share amounts) Net income $ 192,008 $ 208,712 $ 169,827 Weighted average basic common shares outstanding 38,364 39,964 40,648 Effect of dilutive securities—stock options and awards 167 226 217 Total shares and dilutive securities 38,531 40,190 40,865 Basic earnings per common share $ 5.00 $ 5.22 $ 4.18 Diluted earnings per common share $ 4.98 $ 5.19 $ 4.16 |
Quarterly Results of Operatio33
Quarterly Results of Operations (Unaudited): (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 Revenues $ 226,002 $ 215,276 $ 201,402 $ 201,630 Cost of sales 125,138 117,664 108,132 108,352 Gross profit 100,864 97,612 93,270 93,278 Operating income 71,693 52,579 64,255 60,308 Net income 53,664 39,213 50,777 48,354 Earnings per share: Basic(1) $ 1.38 $ 1.01 $ 1.32 $ 1.28 Diluted(1) 1.38 1.01 1.32 1.28 2014 Revenues $ 204,073 $ 230,315 $ 241,750 $ 254,819 Cost of sales 110,787 124,993 135,250 142,497 Gross profit 93,286 105,322 106,500 112,322 Operating income 58,567 68,954 72,992 78,235 Net income 42,618 51,324 55,683 59,087 Earnings per share: Basic(1) $ 1.05 $ 1.27 $ 1.41 $ 1.51 Diluted(1) 1.04 1.27 1.40 1.50 (1) The sum of the quarterly per share amounts may not equal the annual amount reported, as per share amounts are computed independently for each quarter and for the full year. |
Organization - Additional Infor
Organization - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015SegmentLocation | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of geographic segments | Segment | 3 |
Number of headquarter locations | Location | 3 |
Significant Accounting Polici35
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)ProjectMethodSource | Dec. 31, 2014USD ($)Project | Dec. 31, 2013USD ($) | |
Accounting Policies [Abstract] | |||
Inventory reserves | $ 39,247,000 | $ 34,607,000 | |
Impairments of long-lived assets | $ 0 | 0 | $ 0 |
Number of product revenue sources | Method | 2 | ||
Unbilled receivables | $ 70,800,000 | $ 68,000,000 | |
Number of projects | Project | 14 | 17 | |
Percentage of total revenues | 16.00% | 11.00% | |
Percentage of product revenues | 19.00% | 13.00% | |
Number of service revenue sources | Source | 3 | ||
Gains/(losses) in foreign currency exchange transactions | $ 3,900,000 | $ 3,400,000 | $ (4,600,000) |
Inventories, net - Schedule of
Inventories, net - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 101,311 | $ 107,357 |
Work in progress | 104,102 | 112,514 |
Finished goods | 178,292 | 207,295 |
Inventory, gross, Total | 383,705 | 427,166 |
Less: allowance for obsolete and excess inventory | (39,247) | (34,607) |
Total inventory | $ 344,458 | $ 392,559 |
Property, Plant and Equipment37
Property, Plant and Equipment, net - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 567,650 | $ 561,720 |
Less accumulated depreciation | (273,399) | (252,195) |
Property, plant and equipment, net | 294,251 | 309,525 |
Land and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 27,753 | 26,854 |
Land and Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (years) | 10 years | |
Land and Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (years) | 25 years | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 188,420 | 194,587 |
Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (years) | 15 years | |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (years) | 40 years | |
Machinery, Equipment and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 351,477 | $ 340,279 |
Machinery, Equipment and Other [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (years) | 3 years | |
Machinery, Equipment and Other [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (years) | 10 years |
Property, Plant and Equipment38
Property, Plant and Equipment, net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant and Equipment Useful Life and Values [Abstract] | |||
Depreciation expense | $ 30.5 | $ 31.2 | $ 29.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
Amount of tax benefit recognized | 50.00% | ||
Uncertain tax positions | $ 0 | $ 0 | |
Undistributed earnings of the Company's foreign subsidiaries | 784,000,000 | ||
Income taxes paid | $ 61,700,000 | $ 69,900,000 | $ 41,000,000 |
UNITED KINGDOM | Foreign Intellectual Property Tax Benefit [Member] | |||
Income Taxes [Line Items] | |||
Corporate tax rate on profits | 10.00% | ||
UNITED KINGDOM | Patent Box [Member] | |||
Income Taxes [Line Items] | |||
Benefit recorded on intangible assets | $ 2,000,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 107,158 | $ 124,571 | $ 98,883 |
Foreign | 142,613 | 154,809 | 125,214 |
Income before income taxes | $ 249,771 | $ 279,380 | $ 224,097 |
Income Taxes - Schedule of In41
Income Taxes - Schedule of Income Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $ 33,017 | $ 43,652 | $ 30,962 |
Current, Foreign | 28,229 | 30,022 | 24,543 |
Total current | 61,246 | 73,674 | 55,505 |
Deferred, Federal | (1,611) | (5,916) | (1,299) |
Deferred, Foreign | (1,872) | 2,910 | 64 |
Total deferred | (3,483) | (3,006) | (1,235) |
Total | $ 57,763 | $ 70,668 | $ 54,270 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reflected in Provision for Income Taxes and U.S. Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax statutory rate | 35.00% | 35.00% | 35.00% |
Foreign income tax rate differential | (7.30%) | (6.00%) | (6.00%) |
Foreign development tax incentive | (1.30%) | (1.60%) | (2.60%) |
Manufacturing benefit | (1.40%) | (1.70%) | (1.40%) |
Foreign intellectual property tax benefit | (0.80%) | (0.00%) | (0.00%) |
Other | (1.10%) | (0.40%) | (0.80%) |
Effective income tax rate | 23.10% | 25.30% | 24.20% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Net current deferred tax assets: | ||
Inventory | $ 11,062 | $ 10,835 |
Inventory reserve | 8,926 | 8,535 |
Allowance for doubtful accounts | 1,578 | 1,022 |
Reserve for accrued liabilities | 1,205 | 510 |
Other | 1,842 | 2,667 |
Net current deferred tax assets | 24,613 | 23,569 |
Net non-current deferred tax liability: | ||
Property, plant and equipment | (10,583) | (11,295) |
Stock options | 6,898 | 5,735 |
Other | 708 | 143 |
Net non-current deferred tax liabilities | (2,977) | (5,417) |
Net deferred tax asset | $ 21,636 | $ 18,152 |
Other Accrued Liabilities - Sch
Other Accrued Liabilities - Schedule of Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Payroll taxes | $ 2,639 | $ 3,354 |
Property, sales and other taxes | 7,059 | 12,702 |
Commissions payable | 1,925 | 3,917 |
Accrued vendor costs | 3,134 | 10,162 |
Other | 4,727 | 5,063 |
Total | $ 19,484 | $ 35,198 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Postemployment Benefits [Abstract] | |||
Employee benefit plans, contribution expense | $ 5.7 | $ 5.9 | $ 4.9 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2010 | Mar. 31, 2010 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies [Line Items] | ||||||
Lease expense incurred | $ 5.1 | $ 4.2 | $ 3.5 | |||
Future annual minimum lease commitments for the year 2016 | 3.2 | |||||
Future annual minimum lease commitments for the year 2017 | 2.1 | |||||
Future annual minimum lease commitments for the year 2018 | 1.8 | |||||
Future annual minimum lease commitments for the year 2019 | 1.5 | |||||
Future annual minimum lease commitments for the year 2020 | 1.3 | |||||
Future annual minimum lease commitments for the year, thereafter | $ 4.4 | |||||
Brazil [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Tax assessment settled with payments | $ 3.9 | $ 12.2 | ||||
Amount of interest, penalties and monetary restatement fees on tax assessments | 7.8 | |||||
Tax credits certified | $ 8.3 | |||||
Value of assessments served on Brazilian subsidiary | $ 13 | |||||
Court deposit | $ 3.1 | |||||
Brazil [Member] | Inflation Related Credits [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Tax credits certified | $ 2.3 |
Geographic Segments - Schedule
Geographic Segments - Schedule of Segment Reporting (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Products | $ 685,364 | $ 773,205 | $ 731,617 | ||||||||
Services | 158,946 | 157,752 | 140,755 | ||||||||
Intercompany | 64,352 | 68,978 | 62,176 | ||||||||
Eliminations | (64,352) | (68,978) | (62,176) | ||||||||
Total revenues | $ 201,630 | $ 201,402 | $ 215,276 | $ 226,002 | $ 254,819 | $ 241,750 | $ 230,315 | $ 204,073 | 844,310 | 930,957 | 872,372 |
Total Long-Lived Assets | 303,952 | 322,111 | 303,952 | 322,111 | 315,799 | ||||||
Income before income taxes | 249,771 | 279,380 | 224,097 | ||||||||
Total Assets | 1,428,250 | 1,449,251 | 1,428,250 | 1,449,251 | 1,396,805 | ||||||
Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income before income taxes | 9,768 | 2,726 | 7,791 | ||||||||
Total Long-Lived Assets Eliminations | (2,926) | (2,926) | (2,926) | (2,926) | (2,927) | ||||||
Total Assets Eliminations | (13,705) | (12,307) | (13,705) | (12,307) | (17,530) | ||||||
Western Hemisphere [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Products | 332,452 | 430,597 | 420,439 | ||||||||
Services | 88,376 | 74,544 | 72,328 | ||||||||
Intercompany | 53,429 | 55,094 | 51,767 | ||||||||
Total revenues | 474,257 | 560,235 | 544,534 | ||||||||
Total Long-Lived Assets | 208,408 | 221,597 | 208,408 | 221,597 | 216,104 | ||||||
Income before income taxes | 112,499 | 143,206 | 111,498 | ||||||||
Total Assets | 677,460 | 731,448 | 677,460 | 731,448 | 805,399 | ||||||
Eastern Hemisphere [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Products | 234,853 | 205,185 | 186,074 | ||||||||
Services | 52,963 | 59,794 | 46,653 | ||||||||
Intercompany | 5,799 | 10,719 | 1,254 | ||||||||
Total revenues | 293,615 | 275,698 | 233,981 | ||||||||
Total Long-Lived Assets | 43,449 | 45,517 | 43,449 | 45,517 | 43,430 | ||||||
Income before income taxes | 89,349 | 79,146 | 49,672 | ||||||||
Total Assets | 391,672 | 375,781 | 391,672 | 375,781 | 316,473 | ||||||
Asia-Pacific [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Products | 118,059 | 137,423 | 125,104 | ||||||||
Services | 17,607 | 23,414 | 21,774 | ||||||||
Intercompany | 5,124 | 3,165 | 9,155 | ||||||||
Total revenues | 140,790 | 164,002 | 156,033 | ||||||||
Total Long-Lived Assets | 55,021 | 57,923 | 55,021 | 57,923 | 59,192 | ||||||
Income before income taxes | 38,155 | 54,302 | 55,136 | ||||||||
Total Assets | $ 372,823 | $ 354,329 | $ 372,823 | $ 354,329 | $ 292,463 |
Geographic Segments - Additiona
Geographic Segments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Sales to an individual customer | No other customer accounted for more than 10% of the Company's total revenues in 2015, 2014 or 2013. | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of revenue accounted by one customer | 12.00% | ||
Chevron and Affiliated Companies [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of revenue accounted by one customer | 10.00% | ||
Petrobras and Affiliated Companies [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of revenue accounted by one customer | 11.00% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015shares | |
Series A Junior Participating Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Rights to purchase shares | 0.01 |
Stock-Based Compensation and 50
Stock-Based Compensation and Stock Awards - Stock Options - Additional Information (Detail) - USD ($) | May. 13, 2004 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of stock options exercised | $ 751,000 | $ 2,000,000 | $ 10,700,000 | |
Stock-based compensation expense for stock option exercises | 1,100,000 | 2,500,000 | 3,400,000 | |
Capitalized expense | 0 | 0 | 0 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Income tax benefit realized from stock options exercised | $ 263,000 | $ 718,000 | $ 3,700,000 | |
Anti-dilutive stock option shares | 0 | |||
Unrecognized compensation expense related to share based compensation | $ 0 | |||
2004 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
The maximum number of shares authorized | 2,696,294 | |||
Options granted period | 10 years | |||
2004 Plan [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, in years | 4 years |
Stock-Based Compensation and 51
Stock-Based Compensation and Stock Awards - Schedule of Option Activity (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding at December 31, 2014, Number of Options | shares | 459,247 |
Granted, Number of Options | shares | 0 |
Exercised, Number of Options | shares | (38,500) |
Forfeited, Number of Options | shares | (5,625) |
Outstanding at December 31,2015, Number of Options | shares | 415,122 |
Exercisable at December 31,2015, Number of Options | shares | 415,122 |
Outstanding at December 31, 2014, Weighted Average Price | $ / shares | $ 55.86 |
Granted, Weighted Average Price | $ / shares | 0 |
Exercised, Weighted Average Price | $ / shares | 56.37 |
Forfeited, Weighted Average Price | $ / shares | 68.23 |
Outstanding at December 31,2015, Weighted Average Price | $ / shares | 55.64 |
Exercisable at December 31,2015, Weighted Average Price | $ / shares | $ 55.64 |
Outstanding at December 31,2015, Aggregate intrinsic value | $ | $ 3.4 |
Exercisable at December 31,2015, Aggregate intrinsic value | $ | $ 3.4 |
Outstanding at December 31,2015, Weighted Average Remaining Contractual Life (in years) | 4 years 2 months 12 days |
Exercisable at December 31,2015, Weighted Average Remaining Contractual Life (in years) | 4 years 2 months 12 days |
Stock-Based Compensation and 52
Stock-Based Compensation and Stock Awards - Restricted Stock Awards - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards compensation expense | $ 7.2 | $ 6.3 | $ 3.9 |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, in years | 3 years | ||
Income tax benefit recognized | $ 1.8 | $ 2.2 | $ 2 |
Unrecognized compensation expense related to share based compensation | $ 14 | ||
Period of recognition for unrecognized compensation expense related to nonvested stock options, in years | 1 year 7 months 6 days | ||
Anti-dilutive restricted shares | 96,100 |
Stock-Based Compensation and 53
Stock-Based Compensation and Stock Awards - Summary of RSA Activity (Detail) - Restricted Stock Awards [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested balance at December 31, 2014, Number of Shares | shares | 160,154 |
Granted, Number of Shares | shares | 123,224 |
Vested, Number of Shares | shares | (79,797) |
Forfeited, Number of Shares | shares | (9,985) |
Nonvested balance at December 31, 2015, Number of Shares | shares | 193,596 |
Nonvested balance at December 31, 2014, Weighted Average Grant Date Fair Value Per Share | $ / shares | $ 93.78 |
Granted, Weighted Average Grant Date Fair Value Per Share | $ / shares | 66.02 |
Vested, Weighted Average Grant Date Fair Value Per Share | $ / shares | 89.10 |
Forfeited, Weighted Average Grant Date Fair Value Per Share | $ / shares | 96.29 |
Nonvested balance at December 31, 2015, Weighted Average Grant Date Fair Value Per Share | $ / shares | $ 77.91 |
Stock-Based Compensation and 54
Stock-Based Compensation and Stock Awards - Performance Unit Awards - Additional Information (Detail) $ / shares in Units, $ in Millions | Oct. 28, 2015$ / sharesshares | Oct. 28, 2014$ / sharesshares | Dec. 31, 2015USD ($)Companyshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Unit compensation expense | $ 4.5 | $ 3.1 | $ 1.6 | ||
Performance Unit Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share value based on Monte Carlo simulation | $ / shares | $ 79 | $ 126.84 | |||
Percentage of grant share price | 120.20% | 139.40% | |||
Number of components companies in the Philadelphia Oil Service Index | Company | 15 | ||||
Total share return period | 3 years | ||||
Income tax benefit recognized | $ 1.1 | $ 0 | $ 0 | ||
Period of recognition for unrecognized compensation expense related to nonvested stock options, in years | 1 year 7 months 6 days | ||||
Anti-dilutive performance share units | shares | 57,200 | ||||
Unrecognized compensation expense related to share based compensation | $ 9.3 | ||||
Performance Unit Awards [Member] | 2004 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of authorized shares granted by options | shares | 67,346 | 45,729 | |||
Minimum [Member] | Performance Unit Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Participants earning under the term | 0.00% | ||||
Maximum [Member] | Performance Unit Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Participants earning under the term | 200.00% |
Stock-Based Compensation and 55
Stock-Based Compensation and Stock Awards - Schedule of Assumptions Used in Monte Carlo Simulation (Detail) - Performance Unit Awards [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date | Oct. 28, 2015 | Oct. 28, 2014 |
Performance period | October 1, 2015 to September 30, 2018 | October 1, 2014 to September 30, 2017 |
Volatility | 29.50% | 27.80% |
Risk-free interest rate | 0.9795% | 0.8081% |
Grant date price | $ 65.72 | $ 91.02 |
Stock-Based Compensation and 56
Stock-Based Compensation and Stock Awards - Summary of PSA Activity (Detail) - Performance Unit Awards [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested balance at December 31, 2014, Number of Shares | shares | 123,786 |
Granted, Number of Shares | shares | 67,346 |
Vested, Number of Shares | shares | (48,086) |
Forfeited, Number of Shares | shares | (3,478) |
Nonvested balance at December 31, 2015, Number of Shares | shares | 139,568 |
Nonvested balance at December 31, 2014, Weighted Average Grant Date Fair Value Per Share | $ / shares | $ 113.98 |
Granted, Weighted Average Grant Date Fair Value Per Share | $ / shares | 79.25 |
Vested, Weighted Average Grant Date Fair Value Per Share | $ / shares | 84.66 |
Forfeited, Weighted Average Grant Date Fair Value Per Share | $ / shares | 114.50 |
Nonvested balance at December 31, 2015, Weighted Average Grant Date Fair Value Per Share | $ / shares | $ 107.31 |
Stock-Based Compensation and 57
Stock-Based Compensation and Stock Awards - Director Stock Compensation Awards - Additional Information (Detail) - DSA [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fees in lieu of cash | 125.00% | |
Director stock compensation awards expense | $ 328,000 | $ 21,600 |
Income tax benefit recognized | 41,000 | $ 0 |
Unrecognized compensation expense related to share based compensation | $ 225,000 | |
Period of recognition for unrecognized compensation expense related to nonvested stock options, in years | 1 year | |
Anti-dilutive awards | 450 |
Stock-Based Compensation and 58
Stock-Based Compensation and Stock Awards - Schedule of DSA Activity (Detail) - DSA [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Nonvested balance at December 31, 2014, Number of Shares | shares | 1,204 |
Granted, Number of Shares | shares | 6,843 |
Vested, Number of Shares | shares | (1,885) |
Forfeited, Number of Shares | shares | 0 |
Nonvested balance at December 31, 2015, Number of Shares | shares | 6,162 |
Nonvested balance at December 31, 2014, Weighted Average Grant Date Fair Value Per Share | $ / shares | $ 89.40 |
Granted, Weighted Average Grant Date Fair Value Per Share | $ / shares | 68.73 |
Vested, Weighted Average Grant Date Fair Value Per Share | $ / shares | 72 |
Forfeited, Weighted Average Grant Date Fair Value Per Share | $ / shares | 0 |
Nonvested balance at December 31, 2015, Weighted Average Grant Date Fair Value Per Share | $ / shares | $ 71.77 |
Stock-Based Compensation and 59
Stock-Based Compensation and Stock Awards - Schedule of Information for Stock Option Plans (Detail) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of securities to be issued upon exercise of outstanding options | 415,122 |
Weighted-average exercise price of outstanding options | $ / shares | $ 55.64 |
Number of securities remaining available for future issuance under equity compensation plan | 441,914 |
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 | 415,122 |
Weighted-average exercise price of outstanding options | $ / shares | $ 55.64 |
Number of securities remaining available for future issuance under equity compensation plan | 441,914 |
Stock-Based Compensation and 60
Stock-Based Compensation and Stock Awards - Schedule of Information for Stock Option Plans (Parenthetical) (Detail) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units | 193,596 | 160,154 |
Performance Unit Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units | 139,568 | 123,786 |
2004 Plan [Member] | Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units | 199,758 | |
2004 Plan [Member] | Performance Unit Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units | 139,568 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 48,354 | $ 50,777 | $ 39,213 | $ 53,664 | $ 59,087 | $ 55,683 | $ 51,324 | $ 42,618 | $ 192,008 | $ 208,712 | $ 169,827 |
Weighted average basic common shares outstanding | 38,364 | 39,964 | 40,648 | ||||||||
Effect of dilutive securities-stock options and awards | 167 | 226 | 217 | ||||||||
Total shares and dilutive securities | 38,531 | 40,190 | 40,865 | ||||||||
Basic earnings per common share | $ 1.28 | $ 1.32 | $ 1.01 | $ 1.38 | $ 1.51 | $ 1.41 | $ 1.27 | $ 1.05 | $ 5 | $ 5.22 | $ 4.18 |
Diluted earnings per common share | $ 1.28 | $ 1.32 | $ 1.01 | $ 1.38 | $ 1.50 | $ 1.40 | $ 1.27 | $ 1.04 | $ 4.98 | $ 5.19 | $ 4.16 |
Stock Repurchase Plan - Additio
Stock Repurchase Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 26, 2015 | |
Equity [Abstract] | ||||
Stock repurchase plan | $ 100,000,000 | |||
Shares repurchased and cancelled | 1,184,700 | |||
Total cost of shares repurchased and cancelled | $ 75,805,000 | $ 190,234,000 | $ 10,002,000 | |
Shares repurchased, average cost per share | $ 63.98 |
Quarterly Results of Operatio63
Quarterly Results of Operations (Unaudited) - Schedule of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 201,630 | $ 201,402 | $ 215,276 | $ 226,002 | $ 254,819 | $ 241,750 | $ 230,315 | $ 204,073 | $ 844,310 | $ 930,957 | $ 872,372 |
Cost of sales | 108,352 | 108,132 | 117,664 | 125,138 | 142,497 | 135,250 | 124,993 | 110,787 | 459,286 | 513,527 | 513,906 |
Gross profit | 93,278 | 93,270 | 97,612 | 100,864 | 112,322 | 106,500 | 105,322 | 93,286 | |||
Operating income | 60,308 | 64,255 | 52,579 | 71,693 | 78,235 | 72,992 | 68,954 | 58,567 | 248,835 | 278,748 | 223,545 |
Net income | $ 48,354 | $ 50,777 | $ 39,213 | $ 53,664 | $ 59,087 | $ 55,683 | $ 51,324 | $ 42,618 | $ 192,008 | $ 208,712 | $ 169,827 |
Basic | $ 1.28 | $ 1.32 | $ 1.01 | $ 1.38 | $ 1.51 | $ 1.41 | $ 1.27 | $ 1.05 | $ 5 | $ 5.22 | $ 4.18 |
Diluted | $ 1.28 | $ 1.32 | $ 1.01 | $ 1.38 | $ 1.50 | $ 1.40 | $ 1.27 | $ 1.04 | $ 4.98 | $ 5.19 | $ 4.16 |
Valuation and Qualifying Acco64
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Trade Receivables [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 6,241 | $ 2,364 | $ 2,113 |
Charges to costs and expenses | 5,741 | 4,832 | 910 |
Recoveries and write offs | (4,243) | (955) | (659) |
Balance at end of period | 7,739 | 6,241 | 2,364 |
Allowance for Excess and Slow Moving Inventory [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 34,607 | 33,216 | 30,426 |
Charges to costs and expenses | 8,512 | 3,951 | 3,554 |
Recoveries and write offs | (3,872) | (2,560) | (764) |
Balance at end of period | $ 39,247 | $ 34,607 | $ 33,216 |