Innovex Downhole Solutions (INVX) 10-Q 25 Jul 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 23, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	DRIL-QUIP INC
Entity Central Index Key	0001042893
Trading Symbol	DRQ
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock Shares Outstanding		36,207,042
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-13439
Entity Tax Identification Number	742162088
Entity Address, Address Line One	6401 N. ELDRIDGE PARKWAY
Entity Address, City or Town	HOUSTON
Entity Address, State or Province	TEXAS
Entity Address, Country	US
Entity Address, Postal Zip Code	77041
City Area Code	713
Local Phone Number	939-7711

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 423,126	$ 418,100
Trade receivables, net	218,507	202,165
Inventories, net	194,513	191,194
Prepaids and other current assets	31,997	41,522
Total current assets	868,143	852,981
Operating lease right of use assets	4,295
Property, plant and equipment, net	265,591	274,123
Deferred income taxes	7,984	7,995
Goodwill	7,633	7,714
Intangible assets	33,811	34,974
Other assets	14,444	14,723
Total assets	1,201,901	1,192,510
Current liabilities:
Accounts payable	34,681	26,693
Accrued income taxes	4,441	3,138
Customer prepayments	8,533	9,648
Accrued compensation	11,416	10,537
Operating lease liabilities	1,276
Other accrued liabilities	26,750	32,242
Total current liabilities	87,097	82,258
Deferred income taxes	2,623	2,466
Income tax payable	9,817	9,623
Operating lease liabilities, long-term	3,005
Other long-term liabilities	2,231	2,001
Total liabilities	104,773	96,348
Commitments and contingencies (Note 13)
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, 36,207,042 and 36,264,001 shares issued and outstanding at June 30, 2019 and December 31, 2018	376	376
Additional paid-in capital	43,053	34,953
Retained earnings	1,199,502	1,205,946
Accumulated other comprehensive losses	(145,803)	(145,113)
Total stockholders' equity	1,097,128	1,096,162
Total liabilities and stockholders' equity	$ 1,201,901	$ 1,192,510

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued (in shares)	0	0
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	36,207,042	36,264,001
Common stock, shares outstanding (in shares)	36,207,042	36,264,001

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Revenues from products and services	$ 93,808		$ 177,718
Leasing	10,000	$ 12,144	20,407	$ 22,810
Total revenues	103,808	94,861	198,125	194,034
Cost of sales:
Total cost of sales	73,867	75,537	143,240	149,023
Selling, general and administrative	22,835	22,869	47,378	50,218
Engineering and product development	5,157	5,302	8,777	9,720
Restructuring and other charges	1,019		3,415
Gain on sale of assets	(1,190)	(5,099)	(1,203)	(5,099)
Total costs and expenses	101,688	98,609	201,607	203,862
Operating income (loss)	2,120	(3,748)	(3,482)	(9,828)
Interest income	2,680	2,275	4,686	4,075
Interest expense		(151)	(121)	(350)
Income (loss) before income taxes	4,800	(1,624)	1,083	(6,103)
Income tax provision	3,119	1,418	5,452	4,318
Net income (loss)	$ 1,681	$ (3,042)	$ (4,369)	$ (10,421)
Income (loss) per common share:
Basic (in dollars per share)	$ 0.05	$ (0.08)	$ (0.12)	$ (0.28)
Diluted (in dollars per share)	$ 0.05	$ (0.08)	$ (0.12)	$ (0.28)
Weighted average common shares outstanding:
Basic (in shares)	35,967	37,615	35,764	37,672
Diluted (in shares)	36,210	37,615	35,764	37,672
Products
Revenues:
Revenues from products and services	$ 77,233	$ 64,719	$ 142,667	$ 135,764
Cost of sales:
Total cost of sales	53,568	57,916	105,110	115,261
Services
Revenues:
Revenues from products and services	16,575	17,998	35,051	35,460
Cost of sales:
Total cost of sales	10,219	8,268	19,455	17,912
Leasing
Cost of sales:
Total cost of sales	$ 10,080	$ 9,353	$ 18,675	$ 15,850

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 1,681	$ (3,042)	$ (4,369)	$ (10,421)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(2,317)	(21,666)	(690)	(8,545)
Total comprehensive loss	$ (636)	$ (24,708)	$ (5,059)	$ (18,966)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating activities
Net loss	$ (4,369)	$ (10,421)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	16,851	17,242
Stock-based compensation expense	8,083	7,585
Restructuring and other charges	314	0
Gain on sale of assets	(1,203)	(5,099)
Deferred income taxes	164	578
Changes in operating assets and liabilities:
Trade receivables, net	(16,716)	7,007
Inventories, net	(1,002)	22,731
Prepaids and other assets	5,860	(3,117)
Accounts payable and accrued expenses	2,731	(13,374)
Other, net	(63)	334
Net cash provided by operating activities	10,650	23,466
Investing activities
Purchase of property, plant and equipment	(4,598)	(19,605)
Proceeds from sale of equipment	1,565	10,517
Net cash used in investing activities	(3,033)	(9,088)
Financing activities
Repurchase of common shares	(1,996)	(9,830)
ABL Credit Facility issuance costs		(815)
Proceeds from exercise of stock options	0	642
Net cash used in financing activities	(1,996)	(10,003)
Effect of exchange rate changes on cash activities	(595)	(4,133)
Increase in cash and cash equivalents	5,026	242
Cash and cash equivalents at beginning of period	418,100	493,180
Cash and cash equivalents at end of period	$ 423,126	$ 493,422

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTSOF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Losses
Beginning Balance at Dec. 31, 2017	$ 1,294,461	$ 372	$ 20,083	$ 1,400,296	$ (126,290)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(8,545)				(8,545)
Net loss	(10,421)			(10,421)
Comprehensive loss	(18,966)
ASC 606	1,786			1,786
Repurchase of common stock	(9,830)	(2)		(9,828)
Options exercised	642	24	618
Stock option expense	7,585		7,585
Other	(231)		(137)	(94)
Ending Balance at Jun. 30, 2018	1,275,447	394	28,149	1,381,739	(134,835)
Beginning Balance at Mar. 31, 2018	1,305,109	381	23,964	1,393,933	(113,169)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(21,666)				(21,666)
Net loss	(3,042)			(3,042)
Comprehensive loss	(24,708)
Repurchase of common stock	(9,830)	(2)		(9,828)
Options exercised	590	15	575
Stock option expense	3,611		3,611
Other	675		(1)	676
Ending Balance at Jun. 30, 2018	1,275,447	394	28,149	1,381,739	(134,835)
Beginning Balance at Dec. 31, 2018	1,096,162	376	34,953	1,205,946	(145,113)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(690)				(690)
Net loss	(4,369)			(4,369)
Comprehensive loss	(5,059)
Repurchase of common stock	(1,996)			(1,996)
Stock option expense	8,083		8,083
Other	(62)		17	(79)
Ending Balance at Jun. 30, 2019	1,097,128	376	43,053	1,199,502	(145,803)
Beginning Balance at Mar. 31, 2019	1,095,405	376	39,815	1,198,700	(143,486)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(2,317)				(2,317)
Net loss	1,681			1,681
Comprehensive loss	(636)
Repurchase of common stock	(880)			(880)
Stock option expense	3,221		3,221
Other	18		17	1
Ending Balance at Jun. 30, 2019	$ 1,097,128	$ 376	$ 43,053	$ 1,199,502	$ (145,803)

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTSOF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement Of Stockholders Equity [Abstract]
Treasury stock shares (in shares)	22,073	219,102	50,151	219,102

Organization and Principles of

Organization and Principles of Consolidation	6 Months Ended
	Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Principles of Consolidation	1. Dril-Quip, Inc., a Delaware corporation (the “Company” or “Dril-Quip”), designs, manufactures, sells and services highly engineered drilling and production equipment that is well suited primarily for use in deepwater, harsh environment and severe service applications. The Company’s principal products consist of subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors, diverters and safety valves. Dril-Quip’s products are used by major integrated, large independent and foreign national oil and gas companies and drilling contractors throughout the world. Dril-Quip also provides technical advisory assistance on an as-requested basis during installation of its products, as well as rework and reconditioning services for customer-owned Dril-Quip products. In addition, Dril-Quip’s customers may rent or purchase running tools from the Company for use in the installation and retrieval of the Company’s products. The Company’s operations are organized into three geographic segments— Western Hemisphere (including North and South America; headquartered in Houston, Texas), Eastern Hemisphere (including Europe and Africa; headquartered in Aberdeen, Scotland) and Asia-Pacific (including the Pacific Rim, Southeast Asia, Australia, India and the Middle East; headquartered in Singapore). Each of these segments sells similar products and services, and the Company has major manufacturing facilities in all three of its regional headquarter locations as well as in Macae, Brazil. The Company’s major subsidiaries are Dril-Quip (Europe) Limited, located in Aberdeen with branches in Denmark, Norway and Holland; Dril-Quip Asia-Pacific PTE Ltd., located in Singapore; and Dril-Quip do Brazil LTDA, located in Macae, Brazil. Other operating subsidiaries include TIW Corporation (TIW) and Honing, Inc., both, located in Houston, Texas; DQ Holdings Pty. Ltd., located in Perth, Australia; Dril-Quip (Ghana) Ltd., located in Takoradi, Ghana; PT DQ Oilfield Services Indonesia, located in Jakarta, Indonesia; Dril-Quip (Nigeria) Ltd., located in Port Harcourt, Nigeria; Dril-Quip Egypt for Petroleum Services S.A.E., located in Alexandria, Egypt; Dril-Quip Oilfield Services (Tianjin) Co. Ltd., located in Tianjin, China, with branches in Shezhen and Beijing, China; and Dril-Quip Qatar LLC, located in Doha, Qatar; Drip-Quip TIW Mexico S.A. de C.V., located in Villahermosa, Mexico; TIW de Venezuela S.A., located in Anaco, Venezuela and with a registered branch located in Ecuador; TIW (UK) Limited, located in Aberdeen, Scotland; TIW Hungary LLC, located in Szolnok, Hungary; and TIW International LLC, with a registered branch located in Singapore. The condensed consolidated financial statements included herein are unaudited. The balance sheet at December 31, 2018 has been derived from the audited consolidated financial statements at that date. In the opinion of management, the unaudited condensed consolidated interim financial statements include all normal recurring adjustments necessary for a fair statement of the financial position as of June 30, 2019 and the results of operations and comprehensive income for the three and six months ended June 30, 2019 and 2018 and cash flows for the six-month periods ended June 30, 2019 and 2018. Certain information and footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Management believes the unaudited interim related disclosures in these condensed consolidated financial statements are adequate. The results of operations, comprehensive income and cash flows for the six-month period ended June 30, 2019 are not necessarily indicative of the results to be expected for the full year. The condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Significant Accounting Policies	2. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition, inventories and contingent liabilities. Revenue Recognition The Company generates revenues through the sale of products, the sale of services and the leasing of installation tools. The Company normally negotiates contracts for products, including those accounted for under the over time method, rental tools and services separately. Modifications to the scope and price of sales contracts may occur in the form of variations and change orders. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may instead choose to use a third party or its own personnel. Product and Service Revenues Product and service revenues are recognized as the Company satisfies the performance obligation by transferring control of the promised good or service to the customer. Revenues are measured based on consideration specified in a contract with a customer and exclude sales incentives and amounts collected on behalf of third parties. In addition, some customers may impose contractually negotiated penalties for late delivery that are excluded from the transaction price. Management has elected to utilize certain practical expedients allowed under Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606). Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer are excluded from the measurement of the transaction price. Shipping and handling activities that are performed after a customer obtains control of the good are accounted for as activities to fulfill the promise to transfer the good and thus are excluded from the transaction price. Product revenues The Company recognizes product revenues from two methods: • product revenues are recognized over time as control is transferred to the customer; and • product revenues from the sale of products that do not qualify for the over time method are recognized as point in time. Revenues recognized under the over time method The Company uses the over time method on long-term project contracts that have the following characteristics: • the contracts call for products which are designed to customer specifications; • the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than six months in duration; • product requirements cannot be filled directly from the Company’s standard inventory; and • The Company has an enforceable right to payment for any work completed to date and the enforceable payment includes a reasonable profit margin. For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percentage complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs to be recognized. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. Under the over time method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Condensed Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported in trade receivables. Unbilled revenues are expected to be billed and collected Revenues recognized under the point in time method Revenues from the sale of standard inventory products, not accounted for under the over time method, are recorded at the point in time that the customer obtains control of the promised asset and the Company satisfies its performance obligation. This point in time recognition aligns with the time of shipment, which is when the Company typically has a present right to payment, title transfers to the customer, the customer or its carrier has physical possession and the customer has significant risks and rewards of ownership. The Company may provide product storage to some customers. Revenues for these products are recognized at the point in time that control of the product transfers to the customer, the reason for storage is requested by the customer, the product is separately identified, the product is ready for physical transfer to the customer and the Company does not have the ability to use or direct the use of the product. This point in time typically occurs when the products are moved to storage. We receive payment after control of the products has transferred to the customer. Service revenues The Company recognizes service revenues from two sources: • technical advisory assistance; and • rework and reconditioning of customer-owned Dril-Quip products. The Company generally does not install products for its customers, but it does provide technical advisory assistance. The Company normally negotiates contracts for products, including those accounted for under the over time method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may use a third party or their own personnel. The contracts for these services are typically considered day-to-day. Rework and reconditioning service revenues are recorded using the over time method based on the remaining steps that need to be completed as the refurbishment process is performed. The measurement of progress considers, among other things, the time necessary for completion of each step in the reconditioning plan, the materials to be purchased, labor and ordering procedures. We receive payment after the services have been performed by billing customers periodically (typically monthly). Lease revenues The Company earns lease revenues from the rental of running tools. Rental revenues are recognized within leasing revenues on a day rate basis over the lease term, which is generally between one to three months. Practical Expedients We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature. Restructuring and Other Charges In the third quarter of 2018, we initiated a global strategic plan to better align our operations with current market conditions and finalized this plan during the second quarter of 2019. As a result of this plan, during the three and six months ended June 30, 2019, we incurred restructuring and other charges of approximately $1.0 million and $3.4 million, respectively. All of these charges primarily relate to employee termination benefits and consulting fees. Treasury Shares On February 26, 2019, the Board of Directors authorized a share repurchase plan under which the Company can repurchase up to $100 million of its common stock. The repurchase plan has no set expiration date and any repurchased shares are expected to be cancelled. For the three-month period ended June 30, 2019, the Company purchased 22,073 shares under the share repurchase plan at an average price of approximately $39.87 per share totaling approximately $0.9 million and has retired such shares. For the six-month period ended June 30, 2019, the Company purchased 50,151 shares under the share repurchase plan at an average price of approximately $39.80 per share totaling approximately $2.0 million and has retired such shares. The Company continues to evaluate current market conditions on an on-going basis as it relates to executing its share buyback program. Earnings Per Share Basic earnings per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed considering the dilutive effect of stock awards using the treasury stock method. In each relevant period, the net income used in the basic and dilutive earnings per share calculations is the same. The following table reconciles the weighted average basic number of common shares outstanding and the weighted average diluted number of common shares outstanding for the purpose of calculating basic and diluted earnings per share: Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 (In thousands) Weighted average common shares outstanding - basic 35,967 37,615 35,764 37,672 Dilutive effect of common stock awards 243 - - - Weighted average common shares outstanding – diluted 36,210 37,615 35,764 37,672 For the three and six months ended June 30, 2019, the Company has excluded the following common stock options and awards because their impact on the income/(loss) per share is anti-dilutive (in thousands on a weighted average basis): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 (In thousands) Director stock awards - 6 7 4 Stock options - 10 - 11 Performance share units 2 97 121 87 Restricted stock awards 7 105 97 89 Reclassifications . As a result of our global business transformation, certain prior period amounts have been reclassified to conform to the current period presentation as it related to product engineering and quality assurance cost. We reclassified approximately $5.2 million and $10.3 million of engineering cost from our engineering and product development cost and approximately $0.9 million and $1.6 million of quality assurance cost from selling, general and administrative to product cost of sales during the three and six months ended June 30, 2018, respectively. These reclassifications did not have an impact on our Condensed Consolidated Statements of Income (Loss), Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Comprehensive Income (Loss), Condensed Consolidated Statements of Stockholders’ Equity and Condensed Consolidated Statements of Cash Flows

New Accounting Standards

New Accounting Standards	6 Months Ended
	Jun. 30, 2019
Accounting Changes And Error Corrections [Abstract]
New Accounting Standards	3. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)”. The new standard requires lessees to recognize lease assets (right of use) and lease obligations (lease liability) for leases previously classified as operating leases under generally accepted accounting principles on the balance sheet for leases with terms in excess of 12 months. The standard is effective for fiscal periods beginning after December 15, 2018, including interim periods within those fiscal years. Please see Note 9, “Leases”, for a discussion of the impact related to the adoption of this standard. In April 2019, the FASB issued ASU 2019-04 “Codification Improvements to Financial Instruments – Credit Losses (Topic 326)”. The new standard clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments (addressed by ASUs 2016-13, 2017-12, and 2016-01, respectively). The standard is effective for fiscal periods beginning after December 15, 2019, including interim periods within those fiscal years. We are currently in the process of assessing the impact of this guidance.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2019
Revenue From Contract With Customer [Abstract]
Revenue Recognition	4. Revenues from contracts with customers (excludes leasing) consisted of the following: Three months ended June 30, 2019 Western Hemisphere Eastern Hemisphere Asia- Pacific Total (In thousands) Product Revenues $ 38,883 $ 24,540 $ 13,810 $ 77,233 Service Revenues 9,161 4,869 2,545 16,575 Total $ 48,044 $ 29,409 $ 16,355 $ 93,808 Six months ended June 30, 2019 Western Hemisphere Eastern Hemisphere Asia- Pacific Total (In thousands) Product Revenues $ 75,259 $ 43,158 $ 24,250 $ 142,667 Service Revenues 19,006 9,873 6,172 35,051 Total $ 94,265 $ 53,031 $ 30,422 $ 177,718 Contract Balances Balances related to contracts with customers consisted of the following: Contract Assets (amounts shown in thousands) Contract Assets at December 31, 2018 $ 83,188 Additions 47,729 Transfers to Accounts Receivable (25,531 ) Contract Assets at June 30, 2019 $ 105,386 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2018 $ 9,648 Additions 109,630 Revenue Recognized (110,746 ) Contract Liabilities at June 30, 2019 $ 8,532 Contract assets receivables, which are included in trade receivables, net, were $105.4 million and $83.2 million at June 30, 2019 and December 31, 2018, respectively. Contract assets include unbilled accounts receivable associated with contracts accounted for under the over time accounting method, which are included in trade receivables, net, in our accompanying condensed consolidated balance sheets and which were approximately $68.4 million and $57.0 million at June 30, 2019 and December 31, 2018, respectively. Unbilled contract assets are transferred to the trade receivables, net, when the rights become unconditional. The contract liabilities primarily relate to advance payments from customers and are included in customer prepayments in our accompanying condensed consolidated balance sheets. Obligations for returns and refunds were considered immaterial as of June 30, 2019. Remaining Performance Obligations The aggregate amount of the transaction price allocated to remaining performance obligations from our reconditioning services and over time product lines was $78.0 million as of June 30, 2019. The Company expects to recognize revenue on approximately 62.8% and 100.0% of the remaining performance obligations over the next 12 and 24 months, respectively. The Company applies the practical ex pedient available under the revenue standard and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

Stock-Based Compensation and St

Stock-Based Compensation and Stock Awards	6 Months Ended
	Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation and Stock Awards	5. During the three and six months ended June 30, 2019, the Company recognized approximately $3.2 million and $8.1 million, respectively, of stock-based compensation expense, which includes approximately $1.8 million related to accelerated vesting of restricted stock awards of our former Chief Operating Officer, pursuant to a separation agreement entered into with him. The stock based compensation is included in "Selling, general and administrative" in our accompanying condensed consolidated statements of income (loss) and "Additional paid-in capital" in our accompanying condensed consolidated balance sheets, compared to $3.6 million and $7.6 million recognized for the three and six months ended June 30, 2018, respectively. No stock-based compensation expense was capitalized during the three and six months ended June 30, 2019 or 2018.

Inventories, net

Inventories, net	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Inventories, net	6. Inventories consist of the following: June 30, December 31, 2019 2018 (In thousands) Raw materials and supplies $ 46,291 $ 55,878 Work in progress 54,325 51,251 Finished goods 188,326 192,632 288,942 299,761 Less: allowance for obsolete and excess inventory (94,429 ) (108,567 ) Total inventory $ 194,513 $ 191,194

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	7. The changes in the carrying amount of goodwill by reporting unit during the six months ended June 30, 2019 were as follows: Carrying Value Foreign Currency Carrying Value January Translation June 30, 2019 (In thousands) Eastern Hemisphere $ 7,714 $ (81 ) $ 7,633 Western Hemisphere - - - Asia-Pacific - - - Total $ 7,714 $ (81 ) $ 7,633 The Company performs its annual impairment tests of goodwill as of October 1 or when there is an indication an impairment may have occurred. As of June 30, 2019, there were no indications an impairment may have occurred. The fair value used in the goodwill impairment assessment w as determined using the net present value of the expected future cash flows for the reporting unit. During the Company’s goodwill impairment analysis, the Company determines the fair value of the reporting unit, as a whole, using a discounted cash flow analysis, which requires significant assumptions and estimates about future operations. The assumptions about future cash flows and growth rates are based on our current budget for the remainder of the current yea r, 2020 and for future periods, as well as our strategic plans and management’s beliefs about future exploration and development in the industry. Changes in management's forecast commodity price assumptions may cause us to reassess our goodwill for impairment and could result in a non-cash impairment charge in the future.

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	8. Intangible assets consist of the following: June 30, 2019 Estimated Useful Lives Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks 15 years $ 8,159 $ - $ 22 $ 8,181 Patents 15 5,945 (2,011 ) 1 3,935 Customer relationships 5 25,787 (4,301 ) 8 21,494 Non-compete agreements 3 years 171 (141 ) - 30 Organizational costs indefinite 172 - (1 ) 171 $ 40,234 $ (6,453 ) $ 30 $ 33,811 December 31, 2018 Estimated Useful Lives Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks 15 years $ 8,236 - $ (72 ) $ 8,164 Patents 15 6,026 (1,925 ) (11 ) 4,090 Customer relationships 5 25,703 (2,953 ) (260 ) 22,490 Non-compete agreements 3 years 171 (113 ) - 58 Organizational costs indefinite 172 - - 172 $ 40,308 $ (4,991 ) $ (343 ) $ 34,974

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	9. Effective January 1, 2019, we adopted ASU 2016-02, “Leases” (Topic 842), and elected the package of practical expedients that does not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. The impact of the adoption of ASC 842, as of January 1, 2019, was approximately $5.5 million to our assets, approximately $1.6 million to our current liability and approximately $3.9 million to our long-term liability. Under the transition method selected by the Company, leases expiring at, or entered into after, January 1, 2019 were required to be recognized and measured. Prior period amounts have not been adjusted and continue to be reflected in accordance with the Company's historical accounting under ASC 840. The adoption of this standard resulted in the recording of operating lease assets and operating lease liabilities as of January 1, 2019, with no related impact on the Company’s Consolidated Statement We lease facilities related to sales and service, manufacturing, reconditioning, certain office spaces, apartments and warehouse, all of which we classify as operating leases. In addition, we also lease certain office equipment and vehicles, which we classify as financing leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet; short-term lease expense for the three and six months ended June 30, 2019 was approximately $0.6 million and $1.1 million, respectively. Most leases include one or more options to renew, with renewal terms that can extend the lease term on a monthly, annual or longer basis. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain of being exercise d . Certain lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. June 30, 2019 Classification (In thousands) Assets Operating Operating lease right of use assets $ 4,295 Finance Other assets 518 Total lease assets $ 4,813 Liabilities Current Operating Operating lease liabilities $ 1,276 Finance Other accrued liabilities 310 Noncurrent Operating Operating lease liabilities, long-term 3,005 Finance Other long-term liabilities 229 Total lease liabilities $ 4,820 As most of our leases do not provide an implicit rate, we use our incremental borrowing rate, which is based on our rate for the Asset Backed Loan Facility. Our lease cost for the three and six months ended June 30, 2019 is as follows: Three months ended Six months ended June 30, 2019 (In thousands) Classification Operating lease cost Selling, general and administrative $ 371 $ 745 Short-term lease costs Selling, general and administrative 589 1,118 Amortization of leased assets Selling, general and administrative 92 184 Interest on lease liabilities Net interest expense 6 15 Total lease cost $ 1,058 $ 2,062 The five year and beyond maturity of our lease obligations is presented below: Six months ended June 30, 2019 Operating Finance Leases Leases Total (In thousands) 2019 $ 727 $ 194 $ 921 2020 1,231 224 1,455 2021 523 122 645 2022 274 31 305 2023 177 4 181 After 2023 2,767 - 2,767 Total lease payments $ 5,699 $ 575 $ 6,274 Less: interest 1,476 39 1,515 Present value of lease liabilities $ 4,223 $ 536 $ 4,759 The lease term and discount rate for our operating and finance leases is as follows: June 30, 2019 Weighted average remaining lease term (years) Operating leases 12.4 Finance leases 2.1 Weighted average discount rate Operating leases 4.8 % Finance leases 4.3 % We had no material non-cash financing leases entered into during the three months ended June 30, 2019. Other information pertaining to our lease obligations is as follows: June 30, 2019 (In thousands) Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 395 Operating cash flows from finance leases $ 8 Financing cash flows from finance leases for the six months ended June 30, 2019 were immaterial to our Consolidated Financial Statements. The Company leases certain offices, shop and warehouse facilities, automobiles and equipment. Future annual minimum lease commitments at December 31, 2018 are as follows: 2019 - $2.0 million; 2020 - $1.5 million; 2021 - $0.8 million; 2022 - $0.5 million; 2023 - $0.4 million; and thereafter - $4.2 million.

Asset Backed Loan (ABL) Credit

Asset Backed Loan (ABL) Credit Facility	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Asset Backed Loan (ABL) Credit Facility	10. On February 23, 2018, the Company, as borrower, and the Company’s subsidiaries TIW and Honing, Inc., as guarantors, entered into a five -year senior secured revolving credit facility (the “ABL Credit Facility”) with JPMorgan Chase Bank, N.A., as administrative agent, and other financial institutions as lenders with total commitments of $100.0 million, including up to $10.0 million available for letters of credit. The maximum amount that the Company may borrow under the ABL Credit Facility is subject to the borrowing base, which is based on a percentage of eligible accounts receivable and eligible inventory, subject to reserves and other adjustments. All obligations under the ABL Credit Facility are fully and unconditionally guaranteed jointly and severally by the Company, TIW, Honing, Inc., and future significant domestic subsidiaries, subject to customary exceptions. Borrowings under the ABL Credit Facility are secured by liens on substantially all of the Company’s personal property, and bear interest at the Company’s option at either (i) the CB Floating Rate (as defined therein), calculated as the rate of interest publicly announced by JPMorgan Chase Bank, N.A., as its “prime rate,” subject to each increase or decrease in such prime rate effective as of the date such change occurs, with such CB Floating Rate not being less than Adjusted One Month LIBOR (as defined therein) or (ii) the Adjusted LIBOR (as defined therein), plus, in each case, an applicable margin. The applicable margin ranges from 1.00% to 1.50% per annum for CBFR loans and 2.00% to 2.50% per annum for Eurodollar loans and, in each case, is based on the Company’s leverage ratio. The unused portion of the ABL Credit Facility is subject to a commitment fee that varies from 0.250% to 0.375% per annum, according to average unused commitments under the ABL Credit Facility. Interest on Eurodollar loans is payable at the end of the selected interest period, but no less frequently than quarterly. Interest on CB Floating Rate loans is payable monthly in arrears. The ABL Credit Facility contains various covenants and restrictive provisions that limit the Company’s ability to, among other things, (1) enter into asset sales; (2) incur additional indebtedness; (3) make investments or loans and create liens; (4) pay certain dividends or make other distributions; and (5) engage in transactions with affiliates. The ABL Credit Facility also requires the Company to maintain a fixed charge coverage ratio of 1.0 to 1.0, based on the ratio of EBITDA (as defined therein) to Fixed Charges (as defined therein) during certain periods, including when availability under the ABL Credit Facility is under certain levels. If the Company fails to perform its obligations under the agreement that results in an event of default, the commitments under the ABL Credit Facility could be terminated and any outstanding borrowings under the ABL Credit Facility may be declared immediately due and payable. The ABL Credit Facility also contains cross default provisions that apply to the Company’s other indebtedness. The Company is in compliance with the related covenants as of June 30, 2019. As of June 30, 2019, the availability under the ABL Credit Facility was $43.0 million, after taking into account the outstanding letters of credit of approximately $0.3 million

Geographic Areas

Geographic Areas	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Geographic Areas	11. Three months ended June 30, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 (In thousands) Revenues Products Standard Products $ 26,874 $ 40,022 $ 17,826 $ 7,571 $ 10,517 $ 4,938 $ - $ - $ 55,217 $ 52,531 Percentage of Completion 12,009 3,977 6,714 6,968 3,293 1,243 - - 22,016 12,188 Total Products 38,883 43,999 24,540 14,539 13,810 6,181 - - 77,233 64,719 Services Technical Advisory 6,929 7,288 4,044 4,072 2,085 2,768 - - 13,058 14,128 Reconditioning 2,232 2,631 825 1,076 460 163 - - 3,517 3,870 Total Services (excluding rental tools) 9,161 9,919 4,869 5,148 2,545 2,931 - - 16,575 17,998 Leasing 4,962 6,732 3,439 3,516 1,599 1,896 - - 10,000 12,144 Total Services (including rental tools) 14,123 16,651 8,308 8,664 4,144 4,827 - - 26,575 30,142 Intercompany 2,519 4,048 202 347 1,040 563 - 3,761 4,958 Eliminations - - - - - - (3,761 ) (4,958 ) (3,761 ) (4,958 ) Total Revenues $ 55,525 $ 64,698 $ 33,050 $ 23,550 $ 18,994 $ 11,571 $ (3,761 ) $ (4,958 ) $ 103,808 $ 94,861 Depreciation and amortization $ 5,437 $ 5,993 $ 1,176 $ 1,134 $ 1,199 $ 1,155 $ 683 $ 719 $ 8,495 $ 9,001 Income (loss) before income taxes $ 5,675 $ 6,362 $ 7,321 $ 8,133 $ 6,704 $ (301 ) $ (14,900 ) $ (15,818 ) $ 4,800 $ (1,624 ) Six months ended June 30, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 (In thousands) Revenues Products Standard Products $ 50,640 $ 77,117 $ 31,944 $ 22,638 $ 20,957 $ 11,444 $ - $ - $ 103,541 $ 111,199 Percentage of Completion 24,619 9,317 11,214 11,766 3,293 3,482 - - 39,126 24,565 Total Products 75,259 86,434 43,158 34,404 24,250 14,926 - - 142,667 135,764 Services Technical Advisory 13,953 13,529 8,126 9,174 5,281 4,132 - - 27,360 26,835 Reconditioning 5,053 5,473 1,747 1,948 891 1,204 - - 7,691 8,625 Total Services (excluding rental tools) 19,006 19,002 9,873 11,122 6,172 5,336 - - 35,051 35,460 Leasing 11,283 12,265 6,086 7,722 3,038 2,823 - - 20,407 22,810 Total Services (including rental tools) 30,289 31,267 15,959 18,844 9,210 8,159 - - 55,458 58,270 Intercompany 6,613 7,121 346 532 1,778 728 - - 8,737 8,381 Eliminations - - - - - - (8,737 ) (8,381 ) (8,737 ) (8,381 ) Total $ 112,161 $ 124,822 $ 59,463 $ 53,780 $ 35,238 $ 23,813 $ (8,737 ) $ (8,381 ) $ 198,125 $ 194,034 Depreciation and amortization $ 10,857 $ 11,484 $ 2,228 $ 2,346 $ 2,397 $ 2,130 $ 1,369 $ 1,282 $ 16,851 $ 17,242 Income (loss) before income taxes $ 8,408 $ 7,086 $ 13,902 $ 13,792 $ 11,901 $ (45 ) $ (33,128 ) $ (26,936 ) $ 1,083 $ (6,103 ) June 30, 2019 December 31, 2018 (In thousands) Total long-lived assets: Western Hemisphere $ 404,034 $ 412,624 Eastern Hemisphere 255,875 256,899 Asia-Pacific 69,787 65,944 Eliminations (395,938 ) (395,938 ) Total $ 333,758 $ 339,529 Total assets: Western Hemisphere $ 740,895 $ 708,723 Eastern Hemisphere 799,599 788,171 Asia-Pacific 175,811 154,298 Eliminations (514,404 ) (458,682 ) Total $ 1,201,901 $ 1,192,510 The Company’s operations are organized into three geographic segments - Western Hemisphere (including North and South America; headquartered in Houston, Texas), Eastern Hemisphere (including Europe and Africa; headquartered in Aberdeen, Scotland) and Asia-Pacific (including the Pacific Rim, Southeast Asia, Australia, India and the Middle East; headquartered in Singapore). Each of these segments sells similar products and services and the Company has major manufacturing facilities in all three of its regional headquarter locations as well as in Macae, Brazil. Eliminations of operating profits are related to intercompany inventory transfers that are deferred until shipment is made to third party customers.

Income Tax

Income Tax	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Tax	12. The effective tax rate for the three and six months ended June 30, 2019 was 65.0% and 503.5%, respectively, compared to (87.4)% and (70.8)% for the same periods in 2018. The change in the effective tax rate between the periods was primarily a result of increased valuation allowances in the United States and in various foreign countries and a mix of earnings in jurisdictions with differing tax rates.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Brazilian Tax Issue From 2002 to 2007, the Company’s Brazilian subsidiary imported goods through, and paid taxes on such imports to, the State of Espirito Santo in Brazil. Upon the final sale of these goods, the Company’s Brazilian subsidiary collected taxes from customers and remitted them to the State of Rio de Janeiro net of the taxes paid on importation of those goods to the State of Espirito Santo in accordance with the Company’s understanding of Brazilian tax laws. In December 2010 and January 2011, the Company’s Brazilian subsidiary was served with two assessments totaling approximately $13.0 million from the State of Rio de Janeiro to cancel the credits associated with the tax payments to the State of Espirito Santo on the importation of goods from July 2005 to October 2007. The Company objected to these assessments on the grounds that they would represent double taxation on the importation of the same goods and that the Company is entitled to the credits under applicable Brazilian law. The Company’s Brazilian subsidiary filed appeals with a State of Rio de Janeiro judicial court to annul both of these tax assessments and deposited with the court approximately $8.8 million in December 2014 and December 2016 as the full amount of the assessments with penalties and interest. The Company believes that these credits are valid and that success in the judicial court process is probable. Based upon this analysis, the Company has not accrued any liability in conjunction with this matter. General The Company operates its business and markets its products and services in most of the significant oil and gas producing areas in the world and is, therefore, subject to the risks customarily attendant to international operations and dependency on the condition of the oil and gas industry. Additionally, certain of the Company’s products are used in potentially hazardous drilling, completion, and production applications that can cause personal injury, property damage and environmental claims. Although exposure to such risk has not resulted in any significant problems in the past, there can be no assurance that ongoing and future developments will not adversely impact the Company. The Company is also involved in a number of legal actions arising in the ordinary course of business. Although no assurance can be given with respect to the ultimate outcome of such legal action, in the opinion of management, the ultimate liability with respect thereto will not have a material adverse effect on the Company’s results of operations, financial position or cash flows.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition, inventories and contingent liabilities.
Revenue Recognition	Revenue Recognition The Company generates revenues through the sale of products, the sale of services and the leasing of installation tools. The Company normally negotiates contracts for products, including those accounted for under the over time method, rental tools and services separately. Modifications to the scope and price of sales contracts may occur in the form of variations and change orders. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may instead choose to use a third party or its own personnel. Product and Service Revenues Product and service revenues are recognized as the Company satisfies the performance obligation by transferring control of the promised good or service to the customer. Revenues are measured based on consideration specified in a contract with a customer and exclude sales incentives and amounts collected on behalf of third parties. In addition, some customers may impose contractually negotiated penalties for late delivery that are excluded from the transaction price. Management has elected to utilize certain practical expedients allowed under Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606). Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer are excluded from the measurement of the transaction price. Shipping and handling activities that are performed after a customer obtains control of the good are accounted for as activities to fulfill the promise to transfer the good and thus are excluded from the transaction price. Product revenues The Company recognizes product revenues from two methods: • product revenues are recognized over time as control is transferred to the customer; and • product revenues from the sale of products that do not qualify for the over time method are recognized as point in time. Revenues recognized under the over time method The Company uses the over time method on long-term project contracts that have the following characteristics: • the contracts call for products which are designed to customer specifications; • the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than six months in duration; • product requirements cannot be filled directly from the Company’s standard inventory; and • The Company has an enforceable right to payment for any work completed to date and the enforceable payment includes a reasonable profit margin. For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percentage complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs to be recognized. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. Under the over time method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Condensed Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported in trade receivables. Unbilled revenues are expected to be billed and collected Revenues recognized under the point in time method Revenues from the sale of standard inventory products, not accounted for under the over time method, are recorded at the point in time that the customer obtains control of the promised asset and the Company satisfies its performance obligation. This point in time recognition aligns with the time of shipment, which is when the Company typically has a present right to payment, title transfers to the customer, the customer or its carrier has physical possession and the customer has significant risks and rewards of ownership. The Company may provide product storage to some customers. Revenues for these products are recognized at the point in time that control of the product transfers to the customer, the reason for storage is requested by the customer, the product is separately identified, the product is ready for physical transfer to the customer and the Company does not have the ability to use or direct the use of the product. This point in time typically occurs when the products are moved to storage. We receive payment after control of the products has transferred to the customer. Service revenues The Company recognizes service revenues from two sources: • technical advisory assistance; and • rework and reconditioning of customer-owned Dril-Quip products. The Company generally does not install products for its customers, but it does provide technical advisory assistance. The Company normally negotiates contracts for products, including those accounted for under the over time method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may use a third party or their own personnel. The contracts for these services are typically considered day-to-day. Rework and reconditioning service revenues are recorded using the over time method based on the remaining steps that need to be completed as the refurbishment process is performed. The measurement of progress considers, among other things, the time necessary for completion of each step in the reconditioning plan, the materials to be purchased, labor and ordering procedures. We receive payment after the services have been performed by billing customers periodically (typically monthly).
Lease revenues	Lease revenues The Company earns lease revenues from the rental of running tools. Rental revenues are recognized within leasing revenues on a day rate basis over the lease term, which is generally between one to three months.
Practical Expedients	Practical Expedients We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature.
Restructuring and Other Charges	Restructuring and Other Charges In the third quarter of 2018, we initiated a global strategic plan to better align our operations with current market conditions and finalized this plan during the second quarter of 2019. As a result of this plan, during the three and six months ended June 30, 2019, we incurred restructuring and other charges of approximately $1.0 million and $3.4 million, respectively. All of these charges primarily relate to employee termination benefits and consulting fees.
Treasury Shares	Treasury Shares On February 26, 2019, the Board of Directors authorized a share repurchase plan under which the Company can repurchase up to $100 million of its common stock. The repurchase plan has no set expiration date and any repurchased shares are expected to be cancelled. For the three-month period ended June 30, 2019, the Company purchased 22,073 shares under the share repurchase plan at an average price of approximately $39.87 per share totaling approximately $0.9 million and has retired such shares. For the six-month period ended June 30, 2019, the Company purchased 50,151 shares under the share repurchase plan at an average price of approximately $39.80 per share totaling approximately $2.0 million and has retired such shares. The Company continues to evaluate current market conditions on an on-going basis as it relates to executing its share buyback program.
Earnings Per Share	Earnings Per Share Basic earnings per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed considering the dilutive effect of stock awards using the treasury stock method. In each relevant period, the net income used in the basic and dilutive earnings per share calculations is the same. The following table reconciles the weighted average basic number of common shares outstanding and the weighted average diluted number of common shares outstanding for the purpose of calculating basic and diluted earnings per share: Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 (In thousands) Weighted average common shares outstanding - basic 35,967 37,615 35,764 37,672 Dilutive effect of common stock awards 243 - - - Weighted average common shares outstanding – diluted 36,210 37,615 35,764 37,672 For the three and six months ended June 30, 2019, the Company has excluded the following common stock options and awards because their impact on the income/(loss) per share is anti-dilutive (in thousands on a weighted average basis): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 (In thousands) Director stock awards - 6 7 4 Stock options - 10 - 11 Performance share units 2 97 121 87 Restricted stock awards 7 105 97 89
Reclassifications	Reclassifications . As a result of our global business transformation, certain prior period amounts have been reclassified to conform to the current period presentation as it related to product engineering and quality assurance cost. We reclassified approximately $5.2 million and $10.3 million of engineering cost from our engineering and product development cost and approximately $0.9 million and $1.6 million of quality assurance cost from selling, general and administrative to product cost of sales during the three and six months ended June 30, 2018, respectively. These reclassifications did not have an impact on our Condensed Consolidated Statements of Income (Loss), Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Comprehensive Income (Loss), Condensed Consolidated Statements of Stockholders’ Equity and Condensed Consolidated Statements of Cash Flows

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Schedule of Earnings Per Share	The following table reconciles the weighted average basic number of common shares outstanding and the weighted average diluted number of common shares outstanding for the purpose of calculating basic and diluted earnings per share: Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 (In thousands) Weighted average common shares outstanding - basic 35,967 37,615 35,764 37,672 Dilutive effect of common stock awards 243 - - - Weighted average common shares outstanding – diluted 36,210 37,615 35,764 37,672
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	For the three and six months ended June 30, 2019, the Company has excluded the following common stock options and awards because their impact on the income/(loss) per share is anti-dilutive (in thousands on a weighted average basis): Three months ended Six months ended June 30, June 30, 2019 2018 2019 2018 (In thousands) Director stock awards - 6 7 4 Stock options - 10 - 11 Performance share units 2 97 121 87 Restricted stock awards 7 105 97 89

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue From Contract With Customer [Abstract]
Schedule of Revenue from Contract with Customer Excludes Leasing	Revenues from contracts with customers (excludes leasing) consisted of the following: Three months ended June 30, 2019 Western Hemisphere Eastern Hemisphere Asia- Pacific Total (In thousands) Product Revenues $ 38,883 $ 24,540 $ 13,810 $ 77,233 Service Revenues 9,161 4,869 2,545 16,575 Total $ 48,044 $ 29,409 $ 16,355 $ 93,808 Six months ended June 30, 2019 Western Hemisphere Eastern Hemisphere Asia- Pacific Total (In thousands) Product Revenues $ 75,259 $ 43,158 $ 24,250 $ 142,667 Service Revenues 19,006 9,873 6,172 35,051 Total $ 94,265 $ 53,031 $ 30,422 $ 177,718
Schedule of Contract Asset and Liability	Balances related to contracts with customers consisted of the following: Contract Assets (amounts shown in thousands) Contract Assets at December 31, 2018 $ 83,188 Additions 47,729 Transfers to Accounts Receivable (25,531 ) Contract Assets at June 30, 2019 $ 105,386 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2018 $ 9,648 Additions 109,630 Revenue Recognized (110,746 ) Contract Liabilities at June 30, 2019 $ 8,532

Inventories, net (Tables)

Inventories, net (Tables)	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following: June 30, December 31, 2019 2018 (In thousands) Raw materials and supplies $ 46,291 $ 55,878 Work in progress 54,325 51,251 Finished goods 188,326 192,632 288,942 299,761 Less: allowance for obsolete and excess inventory (94,429 ) (108,567 ) Total inventory $ 194,513 $ 191,194

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in the carrying amount of goodwill by reporting unit during the six months ended June 30, 2019 were as follows: Carrying Value Foreign Currency Carrying Value January Translation June 30, 2019 (In thousands) Eastern Hemisphere $ 7,714 $ (81 ) $ 7,633 Western Hemisphere - - - Asia-Pacific - - - Total $ 7,714 $ (81 ) $ 7,633

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets	Intangible assets consist of the following: June 30, 2019 Estimated Useful Lives Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks 15 years $ 8,159 $ - $ 22 $ 8,181 Patents 15 5,945 (2,011 ) 1 3,935 Customer relationships 5 25,787 (4,301 ) 8 21,494 Non-compete agreements 3 years 171 (141 ) - 30 Organizational costs indefinite 172 - (1 ) 171 $ 40,234 $ (6,453 ) $ 30 $ 33,811 December 31, 2018 Estimated Useful Lives Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks 15 years $ 8,236 - $ (72 ) $ 8,164 Patents 15 6,026 (1,925 ) (11 ) 4,090 Customer relationships 5 25,703 (2,953 ) (260 ) 22,490 Non-compete agreements 3 years 171 (113 ) - 58 Organizational costs indefinite 172 - - 172 $ 40,308 $ (4,991 ) $ (343 ) $ 34,974

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Schedule of Classification of Leases	Certain lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. June 30, 2019 Classification (In thousands) Assets Operating Operating lease right of use assets $ 4,295 Finance Other assets 518 Total lease assets $ 4,813 Liabilities Current Operating Operating lease liabilities $ 1,276 Finance Other accrued liabilities 310 Noncurrent Operating Operating lease liabilities, long-term 3,005 Finance Other long-term liabilities 229 Total lease liabilities $ 4,820
Schedule of Lease Cost	Our lease cost for the three and six months ended June 30, 2019 is as follows: Three months ended Six months ended June 30, 2019 (In thousands) Classification Operating lease cost Selling, general and administrative $ 371 $ 745 Short-term lease costs Selling, general and administrative 589 1,118 Amortization of leased assets Selling, general and administrative 92 184 Interest on lease liabilities Net interest expense 6 15 Total lease cost $ 1,058 $ 2,062
Schedule of Maturity of Lease Obligations	The five year and beyond maturity of our lease obligations is presented below: Six months ended June 30, 2019 Operating Finance Leases Leases Total (In thousands) 2019 $ 727 $ 194 $ 921 2020 1,231 224 1,455 2021 523 122 645 2022 274 31 305 2023 177 4 181 After 2023 2,767 - 2,767 Total lease payments $ 5,699 $ 575 $ 6,274 Less: interest 1,476 39 1,515 Present value of lease liabilities $ 4,223 $ 536 $ 4,759
Schedule of Lease Term and Discount Rate for Operating and Finance Leases	The lease term and discount rate for our operating and finance leases is as follows: June 30, 2019 Weighted average remaining lease term (years) Operating leases 12.4 Finance leases 2.1 Weighted average discount rate Operating leases 4.8 % Finance leases 4.3 %
Schedule of Other Information Pertaining to Lease Obligations	We had no material non-cash financing leases entered into during the three months ended June 30, 2019. Other information pertaining to our lease obligations is as follows: June 30, 2019 (In thousands) Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 395 Operating cash flows from finance leases $ 8

Geographic Areas (Tables)

Geographic Areas (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Schedule of Segment Reporting	Three months ended June 30, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 (In thousands) Revenues Products Standard Products $ 26,874 $ 40,022 $ 17,826 $ 7,571 $ 10,517 $ 4,938 $ - $ - $ 55,217 $ 52,531 Percentage of Completion 12,009 3,977 6,714 6,968 3,293 1,243 - - 22,016 12,188 Total Products 38,883 43,999 24,540 14,539 13,810 6,181 - - 77,233 64,719 Services Technical Advisory 6,929 7,288 4,044 4,072 2,085 2,768 - - 13,058 14,128 Reconditioning 2,232 2,631 825 1,076 460 163 - - 3,517 3,870 Total Services (excluding rental tools) 9,161 9,919 4,869 5,148 2,545 2,931 - - 16,575 17,998 Leasing 4,962 6,732 3,439 3,516 1,599 1,896 - - 10,000 12,144 Total Services (including rental tools) 14,123 16,651 8,308 8,664 4,144 4,827 - - 26,575 30,142 Intercompany 2,519 4,048 202 347 1,040 563 - 3,761 4,958 Eliminations - - - - - - (3,761 ) (4,958 ) (3,761 ) (4,958 ) Total Revenues $ 55,525 $ 64,698 $ 33,050 $ 23,550 $ 18,994 $ 11,571 $ (3,761 ) $ (4,958 ) $ 103,808 $ 94,861 Depreciation and amortization $ 5,437 $ 5,993 $ 1,176 $ 1,134 $ 1,199 $ 1,155 $ 683 $ 719 $ 8,495 $ 9,001 Income (loss) before income taxes $ 5,675 $ 6,362 $ 7,321 $ 8,133 $ 6,704 $ (301 ) $ (14,900 ) $ (15,818 ) $ 4,800 $ (1,624 ) Six months ended June 30, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 (In thousands) Revenues Products Standard Products $ 50,640 $ 77,117 $ 31,944 $ 22,638 $ 20,957 $ 11,444 $ - $ - $ 103,541 $ 111,199 Percentage of Completion 24,619 9,317 11,214 11,766 3,293 3,482 - - 39,126 24,565 Total Products 75,259 86,434 43,158 34,404 24,250 14,926 - - 142,667 135,764 Services Technical Advisory 13,953 13,529 8,126 9,174 5,281 4,132 - - 27,360 26,835 Reconditioning 5,053 5,473 1,747 1,948 891 1,204 - - 7,691 8,625 Total Services (excluding rental tools) 19,006 19,002 9,873 11,122 6,172 5,336 - - 35,051 35,460 Leasing 11,283 12,265 6,086 7,722 3,038 2,823 - - 20,407 22,810 Total Services (including rental tools) 30,289 31,267 15,959 18,844 9,210 8,159 - - 55,458 58,270 Intercompany 6,613 7,121 346 532 1,778 728 - - 8,737 8,381 Eliminations - - - - - - (8,737 ) (8,381 ) (8,737 ) (8,381 ) Total $ 112,161 $ 124,822 $ 59,463 $ 53,780 $ 35,238 $ 23,813 $ (8,737 ) $ (8,381 ) $ 198,125 $ 194,034 Depreciation and amortization $ 10,857 $ 11,484 $ 2,228 $ 2,346 $ 2,397 $ 2,130 $ 1,369 $ 1,282 $ 16,851 $ 17,242 Income (loss) before income taxes $ 8,408 $ 7,086 $ 13,902 $ 13,792 $ 11,901 $ (45 ) $ (33,128 ) $ (26,936 ) $ 1,083 $ (6,103 ) June 30, 2019 December 31, 2018 (In thousands) Total long-lived assets: Western Hemisphere $ 404,034 $ 412,624 Eastern Hemisphere 255,875 256,899 Asia-Pacific 69,787 65,944 Eliminations (395,938 ) (395,938 ) Total $ 333,758 $ 339,529 Total assets: Western Hemisphere $ 740,895 $ 708,723 Eastern Hemisphere 799,599 788,171 Asia-Pacific 175,811 154,298 Eliminations (514,404 ) (458,682 ) Total $ 1,201,901 $ 1,192,510

Organization and Principles o_2

Organization and Principles of Consolidation (Details)	6 Months Ended
	Jun. 30, 2019SegmentLocation
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of geographic segments | Segment	3
Number of headquarter locations | Location	3

Significant Accounting Polici_4

Significant Accounting Policies (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)Project$ / sharesshares	Jun. 30, 2018USD ($)Projectshares	Jun. 30, 2019USD ($)ProjectMethodSource$ / sharesshares	Jun. 30, 2018USD ($)Projectshares	Feb. 26, 2019USD ($)	Dec. 31, 2018USD ($)
Accounting Policies [Line Items]
Number of product revenue sources | Method			2
Unbilled receivables	$ 68,400,000		$ 68,400,000			$ 57,000,000
Number of projects | Project	24	9	24	10
Percentage of total revenues	21.00%	13.00%	20.00%	13.00%
Percentage of product revenues	29.00%	19.00%	27.00%	18.00%
Number of service revenue sources | Source			2
Severance costs	$ 1,000,000		$ 3,400,000
Treasury stock shares (in shares) | shares	22,073,000	219,102,000	50,151,000	219,102,000
Average price of shares (in dollars per share) | $ / shares	$ 39.87		$ 39.80
Reclassified from engineering cost to product development cost		$ 5,200,000		$ 10,300,000
Reclassified from selling general and administrative cost to product cost of sales		$ 900,000		$ 1,600,000
Engineering cost	$ 4,100,000		$ 8,300,000
Quality assurance costs	$ 900,000		$ 1,600,000
Common Stock
Accounting Policies [Line Items]
Shares authorized to be purchased (up to) (in shares)					$ 100,000,000
Treasury stock shares (in shares) | shares	22,073		50,151
Treasury stock, value of acquired shares	$ 900,000		$ 2,000,000

Significant Accounting Polici_5

Significant Accounting Policies - Schedule of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accounting Policies [Abstract]
Weighted average common shares outstanding—basic (in shares)	35,967	37,615	35,764	37,672
Dilutive effect of common stock awards (in shares)	243	0	0	0
Weighted average common shares outstanding—diluted (in shares)	36,210	37,615	35,764	37,672

Significant Accounting Polici_6

Significant Accounting Policies - Schedule of Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Director stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0	6	7	4
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0	10	0	11
Performance share units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	2	97	121	87
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	7	105	97	89

Revenue Recognition - Contracts

Revenue Recognition - Contracts With Customers Excludes Leasing (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation Of Revenue [Line Items]
Revenues	$ 93,808		$ 177,718
Western Hemisphere | Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	48,044		94,265
Eastern Hemisphere | Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	29,409		53,031
Asia Pacific | Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	16,355		30,422
Products
Disaggregation Of Revenue [Line Items]
Revenues	77,233	$ 64,719	142,667	$ 135,764
Products | Western Hemisphere | Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	38,883		75,259
Products | Eastern Hemisphere | Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	24,540		43,158
Products | Asia Pacific | Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	13,810		24,250
Services
Disaggregation Of Revenue [Line Items]
Revenues	16,575		35,051
Services | Western Hemisphere | Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	9,161		19,006
Services | Eastern Hemisphere | Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	4,869		9,873
Services | Asia Pacific | Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	$ 2,545		$ 6,172

Revenue Recognition - Contract

Revenue Recognition - Contract Asset and Liability (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Change in Contract with Customer, Asset [Abstract]
Contract Assets at December 31, 2018	$ 83,188
Additions	47,729
Transfers to Accounts Receivable	(25,531)
Contract Assets at June 30, 2019	105,386
Change in Contract with Customer, Liability [Abstract]
Contract Liabilities at December 31, 2018	9,648
Contract Liabilities at June 30, 2019	8,533
Other Current Liabilities
Change in Contract with Customer, Liability [Abstract]
Contract Liabilities at December 31, 2018	9,648
Additions	109,630
Revenue Recognized	(110,746)
Contract Liabilities at June 30, 2019	$ 8,532

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Revenue From Contract With Customer [Abstract]
Accounts receivable	$ 105,386	$ 83,188
Unbilled receivables	68,400	$ 57,000
Performance obligation	$ 78,000

Revenue Recognition - Narrati_2

Revenue Recognition - Narrative (Details1) - Transferred over Time	Jun. 30, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligation percentage	62.80%
Expected timing of satisfaction period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligation percentage	100.00%
Expected timing of satisfaction period	24 months

Stock-Based Compensation and _2

Stock-Based Compensation and Stock Awards - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized expense	$ 0	$ 0	$ 0	$ 0
Former Chief Operating Officer | Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense			1,800,000
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 3,200,000	$ 3,600,000	$ 8,100,000	$ 7,600,000

Inventories, net (Detail)

Inventories, net (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 46,291	$ 55,878
Work in progress	54,325	51,251
Finished goods	188,326	192,632
Inventory, gross, Total	288,942	299,761
Less: allowance for obsolete and excess inventory	(94,429)	(108,567)
Total inventory	$ 194,513	$ 191,194

Goodwill (Details)

Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Goodwill [Roll Forward]
Goodwill, Beginning balance	$ 7,714
Foreign Currency Translation	(81)
Goodwill, Ending balance	7,633
Eastern Hemisphere
Goodwill [Roll Forward]
Goodwill, Beginning balance	7,714
Foreign Currency Translation	(81)
Goodwill, Ending balance	7,633
Western Hemisphere
Goodwill [Roll Forward]
Goodwill, Beginning balance	0
Foreign Currency Translation	0
Goodwill, Ending balance	0
Asia Pacific
Goodwill [Roll Forward]
Goodwill, Beginning balance	0
Foreign Currency Translation	0
Goodwill, Ending balance	$ 0

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Accumulated Amortization	$ (6,453)	$ (4,991)
Finite-Lived, Foreign Currency Translation	30	(343)
Indefinite-lived, Gross Book Value	172	172
Indefinite-lived Intangible Assets, Foreign Currency Translation	(1)
Indefinite-lived Intangible, Net Book Value	171	172
Indefinite and Finite-Lived, Gross Book Value	40,234	40,308
Indefinite and Finite-Lived, Net Book Value	$ 33,811	$ 34,974
Trademarks
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	15 years	15 years
Finite-Lived, Gross Book Value	$ 8,159	$ 8,236
Accumulated Amortization	0	0
Finite-Lived, Foreign Currency Translation	22	(72)
Finite-Lived, Net Book Value	8,181	8,164
Patents
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Finite-Lived, Gross Book Value	5,945	6,026
Accumulated Amortization	(2,011)	(1,925)
Finite-Lived, Foreign Currency Translation	1	(11)
Finite-Lived, Net Book Value	$ 3,935	$ 4,090
Patents | Minimum
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	15 years	15 years
Patents | Maximum
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	30 years	30 years
Customer relationships
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Finite-Lived, Gross Book Value	$ 25,787	$ 25,703
Accumulated Amortization	(4,301)	(2,953)
Finite-Lived, Foreign Currency Translation	8	(260)
Finite-Lived, Net Book Value	$ 21,494	$ 22,490
Customer relationships | Minimum
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	5 years	5 years
Customer relationships | Maximum
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	15 years	15 years
Non-compete agreements
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	3 years	3 years
Finite-Lived, Gross Book Value	$ 171	$ 171
Accumulated Amortization	(141)	(113)
Finite-Lived, Foreign Currency Translation	0	0
Finite-Lived, Net Book Value	$ 30	$ 58

Leases - Additional Information

Leases - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases [Abstract]
Cumulative effect of new accounting principle in period of adoption			$ 5,500
Operating lease liabilities	$ 1,276	$ 1,276	1,600
Operating lease liabilities, long-term	3,005	3,005	$ 3,900
Lease expense recognize on a straight-line basis	600	1,100
2019	921	921		$ 2,000
2020	1,455	1,455		1,500
2021	645	645		800
2022	305	305		500
2023	181	181		400
After 2023	$ 2,767	$ 2,767		$ 4,200

Leases - Schedule of Classifica

Leases - Schedule of Classification of Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Assets
Operating	$ 4,295
Finance	$ 518
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent
Total lease assets	$ 4,813
Current
Operating	1,276	$ 1,600
Finance	$ 310
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherAccruedLiabilitiesCurrent
Noncurrent
Operating	$ 3,005	$ 3,900
Finance	$ 229
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent
Total lease liabilities	$ 4,820

Leases - Schedule of Lease Cost

Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Lessor Lease Description [Line Items]
Total lease cost	$ 1,058	$ 2,062
Selling, General and Administrative
Lessor Lease Description [Line Items]
Operating lease cost	371	745
Short-term lease costs	589	1,118
Amortization of leased assets	92	184
Net Interest Expense
Lessor Lease Description [Line Items]
Interest on lease liabilities	$ 6	$ 15

Leases - Schedule of Maturity o

Leases - Schedule of Maturity of Lease Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Operating Leases
2019	$ 727
2020	1,231
2021	523
2022	274
2023	177
After 2023	2,767
Total lease payments	5,699
Less: interest	1,476
Present value of lease liabilities	4,223
Finance Leases
2019	194
2020	224
2021	122
2022	31
2023	4
Total lease payments	575
Less: interest	39
Present value of lease liabilities	536
Total
2019	921	$ 2,000
2020	1,455	1,500
2021	645	800
2022	305	500
2023	181	400
After 2023	2,767	$ 4,200
Total lease payments	6,274
Less: interest	1,515
Present value of lease liabilities	$ 4,759

Leases - Schedule of Lease Term

Leases - Schedule of Lease Term and Discount Rate for Operating and Finance Leases (Details)	Jun. 30, 2019
Leases [Abstract]
Weighted average remaining lease term, Operating leases	12 years 4 months 6 days
Weighted average remaining lease term, Finance leases	2 years 29 days
Weighted average discount rate, Operating leases	4.80%
Weighted average discount rate, Finance leases	4.30%

Leases - Schedule of Other Info

Leases - Schedule of Other Information Pertaining to Lease Obligations (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 395
Operating cash flows from finance leases	$ 8

Asset Backed Loan (ABL) Credi_2

Asset Backed Loan (ABL) Credit Facility (Details) - ABL Credit Facility - Revolving Credit Facility	Feb. 23, 2018USD ($)	Jun. 30, 2019USD ($)
Debt Instrument [Line Items]
Debt instrument, term	5 years
Total commitments	$ 100,000,000
Amount available for letters of credit (up to)	$ 10,000,000
Fixed charges ratio		1
Available borrowing capacity		$ 43,000,000
Letters of credit outstanding		$ 300,000
Minimum
Debt Instrument [Line Items]
Commitment fee percentage	0.25%
Minimum | CB Floating Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Minimum | Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Maximum
Debt Instrument [Line Items]
Commitment fee percentage	0.375%
Maximum | CB Floating Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Maximum | Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%

Geographic Areas - Schedule of

Geographic Areas - Schedule of Segment Reporting (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenues	$ 103,808	$ 94,861	$ 198,125	$ 194,034
Depreciation and amortization	8,495	9,001	16,851	17,242
Income (loss) before income taxes	4,800	(1,624)	1,083	(6,103)
Total long-lived assets	333,758		333,758		$ 339,529
Total assets	1,201,901		1,201,901		1,192,510
Intercompany
Segment Reporting Information [Line Items]
Revenues	3,761	4,958	8,737	8,381
Eliminations
Segment Reporting Information [Line Items]
Revenues	(3,761)	(4,958)	(8,737)	(8,381)
Total long-lived assets	(395,938)		(395,938)		(395,938)
Total assets	(514,404)		(514,404)		(458,682)
Western Hemisphere
Segment Reporting Information [Line Items]
Revenues	55,525	64,698	112,161	124,822
Western Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Depreciation and amortization	5,437	5,993	10,857	11,484
Income (loss) before income taxes	5,675	6,362	8,408	7,086
Total long-lived assets	404,034		404,034		412,624
Total assets	740,895		740,895		708,723
Western Hemisphere | Intercompany
Segment Reporting Information [Line Items]
Revenues	2,519	4,048	6,613	7,121
Western Hemisphere | Eliminations
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Eastern Hemisphere
Segment Reporting Information [Line Items]
Revenues	33,050	23,550	59,463	53,780
Eastern Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Depreciation and amortization	1,176	1,134	2,228	2,346
Income (loss) before income taxes	7,321	8,133	13,902	13,792
Total long-lived assets	255,875		255,875		256,899
Total assets	799,599		799,599		788,171
Eastern Hemisphere | Intercompany
Segment Reporting Information [Line Items]
Revenues	202	347	346	532
Eastern Hemisphere | Eliminations
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Asia-Pacific
Segment Reporting Information [Line Items]
Revenues	18,994	11,571	35,238	23,813
Asia-Pacific | Operating Segments
Segment Reporting Information [Line Items]
Depreciation and amortization	1,199	1,155	2,397	2,130
Income (loss) before income taxes	6,704	(301)	11,901	(45)
Total long-lived assets	69,787		69,787		65,944
Total assets	175,811		175,811		$ 154,298
Asia-Pacific | Intercompany
Segment Reporting Information [Line Items]
Revenues	1,040	563	1,778	728
Asia-Pacific | Eliminations
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Revenues	(3,761)	(4,958)	(8,737)	(8,381)
Depreciation and amortization	683	719	1,369	1,282
Income (loss) before income taxes	(14,900)	(15,818)	(33,128)	(26,936)
Corporate, Non-Segment | Eliminations
Segment Reporting Information [Line Items]
Revenues	(3,761)	(4,958)	(8,737)	(8,381)
Products | Operating Segments
Segment Reporting Information [Line Items]
Revenues	77,233	64,719	142,667	135,764
Products | Operating Segments | Transferred at Point in Time
Segment Reporting Information [Line Items]
Revenues	55,217	52,531	103,541	111,199
Products | Operating Segments | Transferred over Time
Segment Reporting Information [Line Items]
Revenues	22,016	12,188	39,126	24,565
Products | Western Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Revenues	38,883	43,999	75,259	86,434
Products | Western Hemisphere | Operating Segments | Transferred at Point in Time
Segment Reporting Information [Line Items]
Revenues	26,874	40,022	50,640	77,117
Products | Western Hemisphere | Operating Segments | Transferred over Time
Segment Reporting Information [Line Items]
Revenues	12,009	3,977	24,619	9,317
Products | Eastern Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Revenues	24,540	14,539	43,158	34,404
Products | Eastern Hemisphere | Operating Segments | Transferred at Point in Time
Segment Reporting Information [Line Items]
Revenues	17,826	7,571	31,944	22,638
Products | Eastern Hemisphere | Operating Segments | Transferred over Time
Segment Reporting Information [Line Items]
Revenues	6,714	6,968	11,214	11,766
Products | Asia-Pacific | Operating Segments
Segment Reporting Information [Line Items]
Revenues	13,810	6,181	24,250	14,926
Products | Asia-Pacific | Operating Segments | Transferred at Point in Time
Segment Reporting Information [Line Items]
Revenues	10,517	4,938	20,957	11,444
Products | Asia-Pacific | Operating Segments | Transferred over Time
Segment Reporting Information [Line Items]
Revenues	3,293	1,243	3,293	3,482
Technical Advisory | Operating Segments
Segment Reporting Information [Line Items]
Revenues	13,058	14,128	27,360	26,835
Technical Advisory | Western Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Revenues	6,929	7,288	13,953	13,529
Technical Advisory | Eastern Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Revenues	4,044	4,072	8,126	9,174
Technical Advisory | Asia-Pacific | Operating Segments
Segment Reporting Information [Line Items]
Revenues	2,085	2,768	5,281	4,132
Reconditioning | Operating Segments
Segment Reporting Information [Line Items]
Revenues	3,517	3,870	7,691	8,625
Reconditioning | Western Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Revenues	2,232	2,631	5,053	5,473
Reconditioning | Eastern Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Revenues	825	1,076	1,747	1,948
Reconditioning | Asia-Pacific | Operating Segments
Segment Reporting Information [Line Items]
Revenues	460	163	891	1,204
Total Services (excluding rental tools) | Operating Segments
Segment Reporting Information [Line Items]
Revenues	16,575	17,998	35,051	35,460
Total Services (excluding rental tools) | Western Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Revenues	9,161	9,919	19,006	19,002
Total Services (excluding rental tools) | Eastern Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Revenues	4,869	5,148	9,873	11,122
Total Services (excluding rental tools) | Asia-Pacific | Operating Segments
Segment Reporting Information [Line Items]
Revenues	2,545	2,931	6,172	5,336
Leasing | Operating Segments
Segment Reporting Information [Line Items]
Revenues	10,000	12,144	20,407	22,810
Leasing | Western Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Revenues	4,962	6,732	11,283	12,265
Leasing | Eastern Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Revenues	3,439	3,516	6,086	7,722
Leasing | Asia-Pacific | Operating Segments
Segment Reporting Information [Line Items]
Revenues	1,599	1,896	3,038	2,823
Total Services (including rental tools) | Operating Segments
Segment Reporting Information [Line Items]
Revenues	26,575	30,142	55,458	58,270
Total Services (including rental tools) | Western Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Revenues	14,123	16,651	30,289	31,267
Total Services (including rental tools) | Eastern Hemisphere | Operating Segments
Segment Reporting Information [Line Items]
Revenues	8,308	8,664	15,959	18,844
Total Services (including rental tools) | Asia-Pacific | Operating Segments
Segment Reporting Information [Line Items]
Revenues	$ 4,144	$ 4,827	$ 9,210	$ 8,159

Geographic Areas - Additional I

Geographic Areas - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2019SegmentLocation
Segment Reporting [Abstract]
Number of geographic segments | Segment	3
Number of headquarter locations | Location	3

Income Tax - Additional Informa

Income Tax - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Effective tax rate, percent	65.00%	(87.40%)	503.50%	(70.80%)

Commitments and Contingencies (

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