Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 04, 2020 | |
Cover [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 | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock Shares Outstanding | 35,060,690 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-13439 | |
Entity Tax Identification Number | 74-2162088 | |
Entity Address, Address Line One | 6401 N. ELDRIDGE PARKWAY | |
Entity Address, City or Town | HOUSTON | |
Entity Address, State or Province | TX | |
Entity Address, Country | US | |
Entity Address, Postal Zip Code | 77041 | |
City Area Code | 713 | |
Local Phone Number | 939-7711 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of each class | Common Stock, $0.01 par value per share | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 343,472 | $ 398,946 |
Trade receivables, net | 118,640 | 107,626 |
Unbilled receivables | 129,310 | 140,534 |
Inventories, net | 197,035 | 205,062 |
Prepaids and other current assets | 37,834 | 28,321 |
Total current assets | 826,291 | 880,489 |
Operating lease right of use assets | 5,047 | 5,144 |
Property, plant and equipment, net | 244,495 | 258,497 |
Deferred income taxes | 17,879 | 8,936 |
Goodwill | 7,947 | |
Intangible assets | 31,204 | 32,245 |
Other assets | 11,194 | 13,307 |
Total assets | 1,136,110 | 1,206,565 |
Current liabilities: | ||
Accounts payable | 49,817 | 46,324 |
Accrued income taxes | 6,943 | 4,561 |
Contract liabilities | 6,431 | 6,901 |
Accrued compensation | 6,916 | 13,599 |
Operating lease liabilities | 1,213 | 1,314 |
Other accrued liabilities | 22,126 | 24,241 |
Total current liabilities | 93,446 | 96,940 |
Deferred income taxes | 3,495 | 4,150 |
Income tax payable | 8,988 | 8,868 |
Operating lease liabilities, long-term | 3,809 | 3,801 |
Other long-term liabilities | 2,171 | 2,105 |
Total liabilities | 111,909 | 115,864 |
Contingencies (Note 12) | ||
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, 35,060,690 and 35,859,540 shares issued and outstanding at March 31, 2020 and December 31, 2019 | 363 | 371 |
Additional paid-in capital | 56,045 | 52,870 |
Retained earnings | 1,136,335 | 1,181,023 |
Accumulated other comprehensive losses | (168,542) | (143,563) |
Total stockholders' equity | 1,024,201 | 1,090,701 |
Total liabilities and stockholders' equity | $ 1,136,110 | $ 1,206,565 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
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) | 35,060,690 | 35,859,540 |
Common stock, shares outstanding (in shares) | 35,060,690 | 35,859,540 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Revenues from products and services | $ 86,372 | $ 83,910 |
Leasing | 9,626 | 10,407 |
Total revenues | 95,998 | 94,317 |
Cost of sales: | ||
Total cost of sales | 71,414 | 69,376 |
Selling, general and administrative | 21,416 | 24,544 |
Engineering and product development | 5,525 | 3,617 |
Impairments | 7,719 | |
Restructuring and other charges | 32,713 | 2,396 |
Gain on sale of assets | (467) | (13) |
Total costs and expenses | 138,320 | 99,920 |
Operating loss | (42,322) | (5,603) |
Interest income | 1,206 | 2,006 |
Interest expense | (191) | (121) |
Loss before income taxes | (41,307) | (3,718) |
Income tax provision (benefit) | (21,609) | 2,333 |
Net loss | $ (19,698) | $ (6,051) |
Loss per common share: | ||
Basic (in dollars per share) | $ (0.55) | $ (0.17) |
Diluted (in dollars per share) | $ (0.55) | $ (0.17) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 35,695 | 35,559 |
Diluted (in shares) | 35,695 | 35,559 |
Products | ||
Revenues: | ||
Revenues from products and services | $ 67,558 | $ 65,434 |
Cost of sales: | ||
Total cost of sales | 53,645 | 51,544 |
Services | ||
Revenues: | ||
Revenues from products and services | 18,814 | 18,476 |
Cost of sales: | ||
Total cost of sales | 9,688 | 9,237 |
Leasing | ||
Cost of sales: | ||
Total cost of sales | $ 8,081 | $ 8,595 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (19,698) | $ (6,051) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | (24,979) | 1,627 |
Total comprehensive loss | $ (44,677) | $ (4,424) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net loss | $ (19,698) | $ (6,051) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 8,873 | 8,356 |
Stock-based compensation expense | 3,176 | 4,862 |
Impairments | 7,719 | |
Restructuring and other charges | 32,713 | 1,271 |
Gain on sale of assets | (467) | (13) |
Deferred income taxes | (10,862) | (73) |
Changes in operating assets and liabilities: | ||
Trade receivables, net | (19,444) | 15,768 |
Unbilled receivables | 11,224 | (21,365) |
Inventories, net | (15,537) | (2,700) |
Prepaids and other assets | (11,723) | 15,960 |
Accounts payable and accrued expenses | (7,212) | (14,478) |
Other, net | 1 | (699) |
Net cash provided by (used in) operating activities | (21,237) | 838 |
Investing activities | ||
Purchase of property, plant and equipment | (4,187) | (3,527) |
Proceeds from sale of equipment | 687 | 341 |
Net cash used in investing activities | (3,500) | (3,186) |
Financing activities | ||
Repurchase of common shares | (25,000) | (1,116) |
Other | (85) | |
Net cash used in financing activities | (25,085) | (1,116) |
Effect of exchange rate changes on cash activities | (5,652) | 172 |
Decrease in cash and cash equivalents | (55,474) | (3,292) |
Cash and cash equivalents at beginning of period | 398,946 | 418,100 |
Cash and cash equivalents at end of period | $ 343,472 | $ 414,808 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Losses |
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 | 1,627 | 1,627 | |||
Net loss | (6,051) | (6,051) | |||
Comprehensive loss | (4,424) | ||||
Repurchase of common stock | (1,116) | (1,116) | |||
Stock option expense | 4,862 | 4,862 | |||
Other | (79) | (79) | |||
Ending Balance at Mar. 31, 2019 | 1,095,405 | 376 | 39,815 | 1,198,700 | (143,486) |
Beginning Balance at Dec. 31, 2019 | 1,090,701 | 371 | 52,870 | 1,181,023 | (143,563) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | (24,979) | (24,979) | |||
Net loss | (19,698) | (19,698) | |||
Comprehensive loss | (44,677) | ||||
Repurchase of common stock | (25,008) | (8) | (25,000) | ||
Stock option expense | 3,176 | 3,176 | |||
Other | 9 | (1) | 10 | ||
Ending Balance at Mar. 31, 2020 | $ 1,024,201 | $ 363 | $ 56,045 | $ 1,136,335 | $ (168,542) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTSOF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Treasury stock shares (in shares) | 808,389 | 28,078 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 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 Azerbaijan, Denmark, Norway and Holland; Dril-Quip Asia-Pacific PTE Ltd., located in Singapore; and Dril-Quip do Brasil LTDA, located in Macae, Brazil. Other operating subsidiaries include TIW Corporation (TIW) and Honing, Inc., both located in Houston, Texas; DQ Holdings Pty. Ltd., located in Perth, Australia; Dril-Quip Cross (Ghana) Ltd., located in Takoradi, Ghana; PT DQ Oilfield Services Indonesia, located in Jakarta, Indonesia; Dril-Quip (Nigeria) Ltd., located in Port Harcourt, Nigeria; Dril-Quip Egypt for Petroleum Services S.A.E., located in Alexandria, Egypt; Dril-Quip TIW Saudi Arabia Limited, located in Dammam, Kingdom of Saudi Arabia; Dril-Quip Oilfield Services (Tianjin) Co. Ltd., located in Tianjin, China, with branches in Shenzhen and Beijing, China; Dril-Quip Qatar LLC, located in Doha, Qatar; Dril-Quip TIW Mexico S. de R.L.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, 2019 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 March 31, 2020 and the results of operations and comprehensive income (loss) and cash flows for the three months ended March 31, 2020 and 2019. 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 (loss) and cash flows for the three months ended March 31, 2020 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, 2019 (the “Annual Report”). The recent outbreak of COVID-19 and its development into a pandemic has resulted in significant economic disruption globally. Actions taken by various governmental authorities, individuals and companies around the world to prevent the spread of COVID-19 through social distancing have restricted travel, curtailed business operations, prohibited public gatherings and restricted the overall level of individual movement and in-person interaction across the globe. This has significantly reduced global economic activity and caused global demand for oil and gas to decrease at an unprecedented rate. This demand reduction was further exacerbated by disputes over oil production by Organization of Petroleum Exporting Countries (OPEC) and non-OPEC nations. The subsequent actions taken by such countries as a result thereof, including Saudi Arabia discounting its crude oil export prices, have led to significant declines in crude oil prices, resulting in a challenging industry environment. The extent of the impact of the pandemic and the decline in oil prices on our operational and financial performance will depend on future developments which are uncertain and cannot be predicted. An extended period of economic disruption could have a material adverse impact on our business, results of operations, access to sources of liquidity and financial condition. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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 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, impairment of our goodwill and asset recoverability tests and inventories. 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 unbilled 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 and rental of its forging facility. Rental revenues are recognized within leasing revenues on a day rate basis over the lease term, which is generally between one to three months. Rental revenue from the forging facility is recognized on a straight-line basis over the expected life of the lease. Lease revenues from rental of running tools for the three months ended March 31, 2020 were $9.1 million and lease revenues from rental of facilities were $0.5 million for the same period. 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. Goodwill and indefinite-lived intangible assets For goodwill and intangible assets with indefinite lives, an assessment for impairment is performed annually or when there is an indication an impairment may have occurred. We complete our annual impairment test for goodwill and other indefinite-lived intangibles using an assessment date of October 1. Goodwill is reviewed for impairment by comparing the carrying value of each of our reporting unit’s net assets, including allocated goodwill, to the estimated fair value of the reporting unit. We determine the fair value of our reporting units using a discounted cash flow approach. We selected this valuation approach because we believe it, combined with our best judgment regarding underlying assumptions and estimates, provides the best estimate of fair value for each of our reporting units. Determining the fair value of a reporting unit requires the use of estimates and assumptions. Such estimates and assumptions include revenue growth rates, future operating margins, the weighted average cost of capital ("discount rates"), a terminal growth value, and future market conditions, among others. We believe that the estimates and assumptions used in our impairment assessments are reasonable. If the reporting unit’s carrying value is greater than its calculated fair value, we recognize a goodwill impairment charge for the amount by which the carrying value of goodwill exceeds its fair value. In March 2020, the overall offshore market conditions declined primarily due to the COVID-19 pandemic and the developments in the global oil markets. This decline was evidenced by lower commodity prices, decline in expected offshore rig counts, decrease in our customers’ capital budgets and potential delays of contracts. As such, a n interim goodwill impairment analysis was performed in connection with the preparation and review of financial statements for the three months ended March 31, 2020. Based on this analysis, we recorded an impairment loss of $ million for our Eastern Hemisphere reporting unit for the three months ended March 31, 2020. Impairment of Long-Lived Assets Long-lived assets, including property, plant and equipment and definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We evaluate our property and equipment and definite-lived intangible assets for impairment whenever changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Should the review indicate that the carrying value is not fully recoverable, the amount of the impairment loss is determined by comparing the carrying value to the estimated fair value. We assess recoverability based on undiscounted future net cash flows. Estimating future net cash flows requires us to make judgements regarding long-term forecasts of future revenues and costs related to the assets subject to review. These forecasts are uncertain in that they require assumptions about our revenue growth, operating margins, capital expenditures, future market conditions and technological developments. If changes in these assumptions occur, our expectations regarding future net cash flows may change such that a material impairment could result. There was no impairment of property and equipment and definite-lived intangible assets during the three months ended March 31, 2020 or 2019. Restructuring and Other Charges In March 2020, the overall offshore market conditions declined primarily due to the COVID-19 pandemic and the developments in the global oil markets. As such, we amended our 2018 global strategic plan to realign our manufacturing facilities globally. We recorded non-cash inventory and long-lived asset write-downs of approximately $17.3 million and $6.9 million, respectively, as a result of expected changes in our business structure and where specific products are manufactured. Additionally, we incurred severance and other charges of $8.4 million and $0.1 million respectively, during the three months ended March 31, 2020. These charges are reflected as "Restructuring and other charges" in our consolidated statement of operations. In the third quarter of 2018, we initiated a global strategic plan to better align our operations with market conditions. We incurred restructuring charges consisting primarily of consulting fees of approximately $2.4 million during the three months ended March 31, 2019. 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 months ended March 31, 2020, the Company purchased 808,389 shares under the share repurchase plan at an average price of approximately 30.91 per share totaling approximately $25.0 million and has retired such shares. For the three-month period ended March 31, 2019, the Company purchased 28,078 shares under the share repurchase plan at an average price of approximately $39.74 per share totaling approximately $1.1 million and has retired such shares. 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 March 31, 2020 2019 (In thousands) Weighted average common shares outstanding - basic 35,695 35,559 Dilutive effect of common stock awards - - Weighted average common shares outstanding – diluted 35,695 35,559 For the three months ended March 31, 2020 and 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 March 31, 2020 2019 (In thousands) Director stock awards 40 4 Stock options 132 - Performance share units 277 92 Restricted stock awards 336 44 |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Standards | 3. In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04 “Reference Rate Reform (Topic 848).” Topic 848 is effective for fiscal years and interim periods beginning as of March 12, 2020 through December 31, 2022. This update provides optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. It is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. We are currently in the process of assessing the impact of this guidance on our financial position, results of operations or cash flows. In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740).” Topic 740 is effective for fiscal years and interim periods beginning after December 15, 2020. This update simplifies the accounting for income taxes by removing certain exceptions such as the exception to the incremental approach for intraperiod tax allocation, the exception to the requirement to recognize a deferred tax liability for equity method investments, the exception to the ability not to recognize a deferred tax liability for a foreign subsidiary and the exception to the general methodology for calculating income taxes in an interim period. We are currently in the process of assessing the impact of this guidance on our financial position, results of operations or cash flows. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 4. Revenues from contracts with customers (excludes leasing) consisted of the following: Three months ended March 31, 2020 Western Hemisphere Eastern Hemisphere Asia- Pacific Total (In thousands) Product Revenues $ 41,472 $ 18,179 $ 7,907 $ 67,558 Service Revenues 10,956 4,338 3,520 18,814 Total $ 52,428 $ 22,517 $ 11,427 $ 86,372 Three months ended March 31, 2019 Western Hemisphere Eastern Hemisphere Asia- Pacific Total (In thousands) Product Revenues $ 36,376 $ 18,618 $ 10,440 $ 65,434 Service Revenues 9,845 5,005 3,626 18,476 Total $ 46,221 $ 23,623 $ 14,066 $ 83,910 Contract Balances Balances related to contracts with customers consisted of the following: Contract Assets (amounts shown in thousands) Contract Assets at December 31, 2019 $ 136,332 Additions 31,460 Transfers to Trade Receivables, Net (43,727 ) Contract Assets at March 31, 2020 $ 124,065 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2019 $ 6,901 Additions 2,988 Revenue Recognized (3,458 ) Contract Liabilities at March 31, 2020 $ 6,431 Contract assets include unbilled accounts receivable associated with contracts accounted for under the over time accounting method which were approximately $87.4 million and $83.2 million at March 31, 2020 and December 31, 2019, respectively. Unbilled contract assets are transferred to the trade receivables, net, when the billing milestones are met. The contract liabilities primarily relate to advance payments from customers. Obligations for returns and refunds were considered immaterial as of March 31, 2020. Remaining Performance Obligations The aggregate amount of the transaction price allocated to remaining performance obligations from our over time product lines was $116.5 million as of March 31, 2020. The Company expects to recognize revenue on approximately 73.9% of the remaining performance obligations over the next 12 months and the remaining 26.1% thereafter. The Company applies the practical expedient 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 | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation and Stock Awards | 5. During the three months ended March 31, 2020, the Company recognized approximately $3.2 million of stock-based compensation expense. 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. Stock-based compensation expense was $4.9 million which included approximately $1.8 million related to accelerated vesting of restricted stock awards of our former Chief Operating Officer recognized for the three months ended March 31, 2019. No stock-based compensation expense was capitalized during the three months ended March 31, 2020 or 2019. |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 6. Inventories consist of the following: March 31, December 31, 2020 2019 (In thousands) Raw materials and supplies $ 41,137 $ 46,282 Work in progress 51,897 54,171 Finished goods 186,897 175,629 279,931 276,082 Less: allowance for slow moving and excess inventory (82,896 ) (71,020 ) Total inventory $ 197,035 $ 205,062 |
Impairment, Restructuring and O
Impairment, Restructuring and Other Charges | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Impairment, Restructuring and Other Charges | 7. Impairment, Restructuring and Other Charges Restructuring and Other Charges As a result of unfavorable market conditions primarily due to the COVID-19 pandemic and developments in the global oil markets, which triggered historically low crude oil prices and decreases in our customers’ capital budgets, we announced a cost reduction plan primarily focused on workforce reductions and the reorganization of certain facilities in the first quarter of 2020. We incurred restructuring and other charges associated with the cost reduction plan of $32.7 million during the three months ended March 31, 2020. We expect to incur cost through out the year under this plan. Of these charges, inventory write-downs, severance charges, long-lived assets write-downs and other charges were $17.3 million, $8.4 million, $6.9 million and $0.1 million respectively, during the three months ended March 31, 2020. The following table summarizes the components of charges included in "Restructuring and other charges" in our consolidated statement of operations for the three months ended March 31, 2020 (in thousands): Three months ended March 31, 2020 Inventory write-down $ 17,272 Severance 8,399 Long-lived asset write-down 6,912 Other 130 $ 32,713 The following table summarizes the changes to our accrued liability balance related to restructuring and other charges for the three months ended March 31, 2020 (in thousands): March 31, 2020 Balance at January 1, 2020 $ - Additions for costs expensed 8,000 Reductions for payments - Ending balance at March 31, 2020 $ 8,000 Goodwill Impairment In connection with our preparation and review of financial statements for the three months ended March 31, 2020, we recorded an impairment loss of $7.7 million for the first quarter of 2020 as a result of our updated assessment of current market conditions and restructuring efforts. These charges are reflected as "Impairments" in our consolidated statement of operations. No goodwill impairment losses were recorded for the three months ended March 31, 2019. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. Intangible assets consist of the following: March 31, 2020 Estimated Useful Lives Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks 15 years $ 8,206 $ (638 ) $ (49 ) $ 7,519 Patents 15 5,951 (2,371 ) 111 3,691 Customer relationships 5 25,939 (5,833 ) (281 ) 19,825 Non-compete agreements 3 years 171 (171 ) - - Organizational costs indefinite 179 - (10 ) 169 $ 40,446 $ (9,013 ) $ (229 ) $ 31,204 December 31, 2019 Estimated Useful Lives Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks 15 years $ 8,159 (512 ) $ 47 $ 7,694 Patents 15 5,945 (2,529 ) - 3,416 Customer relationships 5 25,787 (4,954 ) 122 20,955 Non-compete agreements 3 years 171 (170 ) - 1 Organizational costs indefinite 172 - 7 179 $ 40,234 $ (8,165 ) $ 176 $ 32,245 |
Asset Backed Loan (ABL) Credit
Asset Backed Loan (ABL) Credit Facility | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Asset Backed Loan (ABL) Credit Facility | 9. On February 23, 2018, the Company, as borrower, and the Company’s subsidiaries TIW and Honing, Inc., as guarantors, entered into a five -year 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 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 r elated covenants as of March 31, 2020 . As of March 31, 2020, the availability under the ABL Credit Facility was $44.5 million, after taking into account the outstanding letters of credit of approximately $0.9 million |
Geographic Areas
Geographic Areas | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Geographic Areas | 10. Three months ended March 31, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 (In thousands) Revenues Products Point in Time $ 22,964 $ 23,767 $ 8,962 $ 14,118 $ 5,447 $ 10,440 $ - $ - $ 37,373 $ 48,325 Over Time 18,508 12,609 9,217 4,500 2,460 - - - 30,185 17,109 Total Products 41,472 36,376 18,179 18,618 7,907 10,440 - - 67,558 65,434 Services Technical Advisory 7,396 7,022 3,496 4,082 3,289 3,195 - - 14,181 14,299 Reconditioning 3,560 2,823 842 923 231 431 - - 4,633 4,177 Total Services (excluding rental tools) 10,956 9,845 4,338 5,005 3,520 3,626 - - 18,814 18,476 Leasing 4,761 6,321 2,748 2,647 2,117 1,439 - - 9,626 10,407 Total Services (including rental tools) 15,717 16,166 7,086 7,652 5,637 5,065 - - 28,440 28,883 Intercompany 3,314 4,091 331 144 2,256 740 - 5,901 4,975 Eliminations - - - - - - (5,901 ) (4,975 ) (5,901 ) (4,975 ) Total Revenues $ 60,503 $ 56,633 $ 25,596 $ 26,414 $ 15,800 $ 16,245 $ (5,901 ) $ (4,975 ) $ 95,998 $ 94,317 Depreciation and amortization $ 5,622 $ 5,419 $ 974 $ 1,053 $ 1,340 $ 1,198 $ 937 $ 686 $ 8,873 $ 8,356 Income (loss) before income taxes $ 8,153 $ 1,579 $ (28,321 ) $ 6,581 $ 1,569 $ 5,196 $ (22,708 ) $ (17,074 ) $ (41,307 ) $ (3,718 ) During the three months ended March 31, 2020, we recorded impairments, restructuring and other charges of $40.4 million. Of these charges, $32.1 million were recorded in the Eastern Hemisphere, $1.9 million in the Western Hemisphere and $6.2 million in DQ Corporate and $0.2 million in Asia-Pacific. March 31, 2020 December 31, 2019 (In thousands) Total long-lived assets: Western Hemisphere $ 375,729 $ 379,776 Eastern Hemisphere 235,939 246,854 Asia-Pacific 70,088 71,384 Eliminations (371,937 ) (371,938 ) Total $ 309,819 $ 326,076 Total assets: Western Hemisphere $ 777,321 $ 732,716 Eastern Hemisphere 786,238 818,803 Asia-Pacific 179,839 181,188 Eliminations (607,288 ) (526,142 ) Total $ 1,136,110 $ 1,206,565 During the three months ended March 31, 2020, we wrote-down some of our inventory and long-lived assets balances in the amount of $24.2 million, of which $22.3 million was recorded in the Eastern Hemisphere and $1.9 million in the Western Hemisphere. We also recorded a $7.7 million impairment of our Goodwill balance all of which was in the Eastern Hemisphere. 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 | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 11. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted on March 27, 2020 and includes favorable changes to tax law and incentives for businesses impacted by COVID-19. The CARES Act includes provisions relating to net operating loss carryback periods which have discretely impacted and increased the effective tax rate by 79.8% in the current period. The effective tax rate for the three months ended March 31, 2020 was 52.3%, compared to (62.7)% for the same period in 2019. The change in the effective tax rate between the periods was primarily a result of discretely recognized tax benefits of net operating losses, impairment losses, changes in 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 | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. 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) | 3 Months Ended |
Mar. 31, 2020 | |
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 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, impairment of our goodwill and asset recoverability tests and inventories. |
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 unbilled 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 and rental of its forging facility. Rental revenues are recognized within leasing revenues on a day rate basis over the lease term, which is generally between one to three months. Rental revenue from the forging facility is recognized on a straight-line basis over the expected life of the lease. Lease revenues from rental of running tools for the three months ended March 31, 2020 were $9.1 million and lease revenues from rental of facilities were $0.5 million for the same period. 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. |
Goodwill and intangible assets | Goodwill and indefinite-lived intangible assets For goodwill and intangible assets with indefinite lives, an assessment for impairment is performed annually or when there is an indication an impairment may have occurred. We complete our annual impairment test for goodwill and other indefinite-lived intangibles using an assessment date of October 1. Goodwill is reviewed for impairment by comparing the carrying value of each of our reporting unit’s net assets, including allocated goodwill, to the estimated fair value of the reporting unit. We determine the fair value of our reporting units using a discounted cash flow approach. We selected this valuation approach because we believe it, combined with our best judgment regarding underlying assumptions and estimates, provides the best estimate of fair value for each of our reporting units. Determining the fair value of a reporting unit requires the use of estimates and assumptions. Such estimates and assumptions include revenue growth rates, future operating margins, the weighted average cost of capital ("discount rates"), a terminal growth value, and future market conditions, among others. We believe that the estimates and assumptions used in our impairment assessments are reasonable. If the reporting unit’s carrying value is greater than its calculated fair value, we recognize a goodwill impairment charge for the amount by which the carrying value of goodwill exceeds its fair value. In March 2020, the overall offshore market conditions declined primarily due to the COVID-19 pandemic and the developments in the global oil markets. This decline was evidenced by lower commodity prices, decline in expected offshore rig counts, decrease in our customers’ capital budgets and potential delays of contracts. As such, a n interim goodwill impairment analysis was performed in connection with the preparation and review of financial statements for the three months ended March 31, 2020. Based on this analysis, we recorded an impairment loss of $ million for our Eastern Hemisphere reporting unit for the three months ended March 31, 2020. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, including property, plant and equipment and definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We evaluate our property and equipment and definite-lived intangible assets for impairment whenever changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Should the review indicate that the carrying value is not fully recoverable, the amount of the impairment loss is determined by comparing the carrying value to the estimated fair value. We assess recoverability based on undiscounted future net cash flows. Estimating future net cash flows requires us to make judgements regarding long-term forecasts of future revenues and costs related to the assets subject to review. These forecasts are uncertain in that they require assumptions about our revenue growth, operating margins, capital expenditures, future market conditions and technological developments. If changes in these assumptions occur, our expectations regarding future net cash flows may change such that a material impairment could result. There was no impairment of property and equipment and definite-lived intangible assets during the three months ended March 31, 2020 or 2019. |
Restructuring and Other Charges | Restructuring and Other Charges In March 2020, the overall offshore market conditions declined primarily due to the COVID-19 pandemic and the developments in the global oil markets. As such, we amended our 2018 global strategic plan to realign our manufacturing facilities globally. We recorded non-cash inventory and long-lived asset write-downs of approximately $17.3 million and $6.9 million, respectively, as a result of expected changes in our business structure and where specific products are manufactured. Additionally, we incurred severance and other charges of $8.4 million and $0.1 million respectively, during the three months ended March 31, 2020. These charges are reflected as "Restructuring and other charges" in our consolidated statement of operations. In the third quarter of 2018, we initiated a global strategic plan to better align our operations with market conditions. We incurred restructuring charges consisting primarily of consulting fees of approximately $2.4 million during the three months ended March 31, 2019. |
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 months ended March 31, 2020, the Company purchased 808,389 shares under the share repurchase plan at an average price of approximately 30.91 per share totaling approximately $25.0 million and has retired such shares. For the three-month period ended March 31, 2019, the Company purchased 28,078 shares under the share repurchase plan at an average price of approximately $39.74 per share totaling approximately $1.1 million and has retired such shares. |
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 March 31, 2020 2019 (In thousands) Weighted average common shares outstanding - basic 35,695 35,559 Dilutive effect of common stock awards - - Weighted average common shares outstanding – diluted 35,695 35,559 For the three months ended March 31, 2020 and 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 March 31, 2020 2019 (In thousands) Director stock awards 40 4 Stock options 132 - Performance share units 277 92 Restricted stock awards 336 44 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 2019 (In thousands) Weighted average common shares outstanding - basic 35,695 35,559 Dilutive effect of common stock awards - - Weighted average common shares outstanding – diluted 35,695 35,559 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the three months ended March 31, 2020 and 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 March 31, 2020 2019 (In thousands) Director stock awards 40 4 Stock options 132 - Performance share units 277 92 Restricted stock awards 336 44 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 Western Hemisphere Eastern Hemisphere Asia- Pacific Total (In thousands) Product Revenues $ 41,472 $ 18,179 $ 7,907 $ 67,558 Service Revenues 10,956 4,338 3,520 18,814 Total $ 52,428 $ 22,517 $ 11,427 $ 86,372 Three months ended March 31, 2019 Western Hemisphere Eastern Hemisphere Asia- Pacific Total (In thousands) Product Revenues $ 36,376 $ 18,618 $ 10,440 $ 65,434 Service Revenues 9,845 5,005 3,626 18,476 Total $ 46,221 $ 23,623 $ 14,066 $ 83,910 |
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, 2019 $ 136,332 Additions 31,460 Transfers to Trade Receivables, Net (43,727 ) Contract Assets at March 31, 2020 $ 124,065 Contract Liabilities (amounts shown in thousands) Contract Liabilities at December 31, 2019 $ 6,901 Additions 2,988 Revenue Recognized (3,458 ) Contract Liabilities at March 31, 2020 $ 6,431 |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: March 31, December 31, 2020 2019 (In thousands) Raw materials and supplies $ 41,137 $ 46,282 Work in progress 51,897 54,171 Finished goods 186,897 175,629 279,931 276,082 Less: allowance for slow moving and excess inventory (82,896 ) (71,020 ) Total inventory $ 197,035 $ 205,062 |
Impairment, Restructuring and_2
Impairment, Restructuring and Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Impairment, Restructuring and Other Charges | The following table summarizes the components of charges included in "Restructuring and other charges" in our consolidated statement of operations for the three months ended March 31, 2020 (in thousands): Three months ended March 31, 2020 Inventory write-down $ 17,272 Severance 8,399 Long-lived asset write-down 6,912 Other 130 $ 32,713 |
Schedule of Accrued Liabilities Related to Restructuring and Others Charges | The following table summarizes the changes to our accrued liability balance related to restructuring and other charges for the three months ended March 31, 2020 (in thousands): March 31, 2020 Balance at January 1, 2020 $ - Additions for costs expensed 8,000 Reductions for payments - Ending balance at March 31, 2020 $ 8,000 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets | Intangible assets consist of the following: March 31, 2020 Estimated Useful Lives Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks 15 years $ 8,206 $ (638 ) $ (49 ) $ 7,519 Patents 15 5,951 (2,371 ) 111 3,691 Customer relationships 5 25,939 (5,833 ) (281 ) 19,825 Non-compete agreements 3 years 171 (171 ) - - Organizational costs indefinite 179 - (10 ) 169 $ 40,446 $ (9,013 ) $ (229 ) $ 31,204 December 31, 2019 Estimated Useful Lives Gross Book Value Accumulated Amortization Foreign Currency Translation Net Book Value (In thousands) Trademarks 15 years $ 8,159 (512 ) $ 47 $ 7,694 Patents 15 5,945 (2,529 ) - 3,416 Customer relationships 5 25,787 (4,954 ) 122 20,955 Non-compete agreements 3 years 171 (170 ) - 1 Organizational costs indefinite 172 - 7 179 $ 40,234 $ (8,165 ) $ 176 $ 32,245 |
Geographic Areas (Tables)
Geographic Areas (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | Three months ended March 31, Western Hemisphere Eastern Hemisphere Asia-Pacific DQ Corporate Total 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 (In thousands) Revenues Products Point in Time $ 22,964 $ 23,767 $ 8,962 $ 14,118 $ 5,447 $ 10,440 $ - $ - $ 37,373 $ 48,325 Over Time 18,508 12,609 9,217 4,500 2,460 - - - 30,185 17,109 Total Products 41,472 36,376 18,179 18,618 7,907 10,440 - - 67,558 65,434 Services Technical Advisory 7,396 7,022 3,496 4,082 3,289 3,195 - - 14,181 14,299 Reconditioning 3,560 2,823 842 923 231 431 - - 4,633 4,177 Total Services (excluding rental tools) 10,956 9,845 4,338 5,005 3,520 3,626 - - 18,814 18,476 Leasing 4,761 6,321 2,748 2,647 2,117 1,439 - - 9,626 10,407 Total Services (including rental tools) 15,717 16,166 7,086 7,652 5,637 5,065 - - 28,440 28,883 Intercompany 3,314 4,091 331 144 2,256 740 - 5,901 4,975 Eliminations - - - - - - (5,901 ) (4,975 ) (5,901 ) (4,975 ) Total Revenues $ 60,503 $ 56,633 $ 25,596 $ 26,414 $ 15,800 $ 16,245 $ (5,901 ) $ (4,975 ) $ 95,998 $ 94,317 Depreciation and amortization $ 5,622 $ 5,419 $ 974 $ 1,053 $ 1,340 $ 1,198 $ 937 $ 686 $ 8,873 $ 8,356 Income (loss) before income taxes $ 8,153 $ 1,579 $ (28,321 ) $ 6,581 $ 1,569 $ 5,196 $ (22,708 ) $ (17,074 ) $ (41,307 ) $ (3,718 ) March 31, 2020 December 31, 2019 (In thousands) Total long-lived assets: Western Hemisphere $ 375,729 $ 379,776 Eastern Hemisphere 235,939 246,854 Asia-Pacific 70,088 71,384 Eliminations (371,937 ) (371,938 ) Total $ 309,819 $ 326,076 Total assets: Western Hemisphere $ 777,321 $ 732,716 Eastern Hemisphere 786,238 818,803 Asia-Pacific 179,839 181,188 Eliminations (607,288 ) (526,142 ) Total $ 1,136,110 $ 1,206,565 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2020SegmentLocation | |
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 - Additional Information (Details) | 3 Months Ended | |||
Mar. 31, 2020USD ($)ProjectMethodSource$ / sharesshares | Mar. 31, 2019USD ($)Project$ / sharesshares | Dec. 31, 2019USD ($) | Feb. 26, 2019USD ($) | |
Accounting Policies [Line Items] | ||||
Number of product revenue sources | Method | 2 | |||
Unbilled receivables | $ 129,310,000 | $ 140,534,000 | ||
Number of projects | Project | 42 | 21 | ||
Percentage of total revenues | 31.40% | 18.00% | ||
Percentage of product revenues | 44.70% | 26.00% | ||
Number of service revenue sources | Source | 2 | |||
Lease revenues | $ 9,626,000 | $ 10,407,000 | ||
Goodwill impairment loss | 7,700,000 | 0 | ||
Impairment of property and equipment | 0 | 0 | ||
Impairment of intangible assets | 0 | 0 | ||
Inventory write-down | 17,272,000 | |||
Long-lived asset impairment | 6,912,000 | |||
Severance costs | 8,399,000 | |||
Restructuring costs | 100,000 | |||
Other restructuring charges | $ 130,000 | $ 2,400,000 | ||
Shares authorized to be purchased (up to) (in shares) | $ 100,000,000 | |||
Treasury stock shares (in shares) | shares | 808,389 | 28,078 | ||
Average price of shares (in dollars per share) | $ / shares | $ 30.91 | $ 39.74 | ||
Treasury stock, value of acquired shares | $ 25,000,000 | $ 1,100,000 | ||
Eastern Hemisphere [Member] | ||||
Accounting Policies [Line Items] | ||||
Goodwill impairment loss | 7,700,000 | |||
Running Tools [Member] | ||||
Accounting Policies [Line Items] | ||||
Lease revenues | 9,100,000 | |||
Rental Facilities [Member] | ||||
Accounting Policies [Line Items] | ||||
Lease revenues | 500,000 | |||
Over Time Method | ||||
Accounting Policies [Line Items] | ||||
Unbilled receivables | $ 87,400,000 | $ 83,200,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounting Policies [Abstract] | ||
Weighted average common shares outstanding basic (in shares) | 35,695 | 35,559 |
Dilutive effect of common stock awards (in shares) | 0 | 0 |
Weighted average common shares outstanding diluted (in shares) | 35,695 | 35,559 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Director stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 40 | 4 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 132 | 0 |
Performance share units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 277 | 92 |
Restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 336 | 44 |
Revenue Recognition - Revenues
Revenue Recognition - Revenues From Contracts With Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 86,372 | $ 83,910 |
Western Hemisphere | Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 52,428 | 46,221 |
Eastern Hemisphere | Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 22,517 | 23,623 |
Asia Pacific | Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 11,427 | 14,066 |
Products | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 67,558 | 65,434 |
Products | Western Hemisphere | Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 41,472 | 36,376 |
Products | Eastern Hemisphere | Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 18,179 | 18,618 |
Products | Asia Pacific | Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 7,907 | 10,440 |
Services | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 18,814 | 18,476 |
Services | Western Hemisphere | Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 10,956 | 9,845 |
Services | Eastern Hemisphere | Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 4,338 | 5,005 |
Services | Asia Pacific | Operating Segments | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 3,520 | $ 3,626 |
Revenue Recognition - Contract
Revenue Recognition - Contract Asset and Liability (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Contract Assets | |
Contract Assets at December 31, 2019 | $ 136,332 |
Additions | 31,460 |
Transfers to Trade Receivables, Net | (43,727) |
Contract Assets at March 31, 2020 | 124,065 |
Contract Liabilities | |
Contract Liabilities at December 31, 2019 | 6,901 |
Contract Liabilities at March 31, 2020 | 6,431 |
Other Current Liabilities | |
Contract Liabilities | |
Contract Liabilities at December 31, 2019 | 6,901 |
Additions | 2,988 |
Revenue Recognized | (3,458) |
Contract Liabilities at March 31, 2020 | $ 6,431 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Unbilled receivables | $ 129,310 | $ 140,534 |
Performance obligation | 116,500 | |
Receivables (Included in Trade Receivables) | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Unbilled receivables | $ 87,400 | $ 83,200 |
Revenue Recognition - Narrati_2
Revenue Recognition - Narrative (Details1) | Mar. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 73.90% |
Expected timing of satisfaction period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligation percentage | 26.10% |
Expected timing of satisfaction period | 0 years |
Stock-Based Compensation and _2
Stock-Based Compensation and Stock Awards - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Capitalized expense | $ 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 | $ 4,900,000 |
Inventories, net (Detail)
Inventories, net (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 41,137 | $ 46,282 |
Work in progress | 51,897 | 54,171 |
Finished goods | 186,897 | 175,629 |
Inventory, gross, Total | 279,931 | 276,082 |
Less: allowance for slow moving and excess inventory | (82,896) | (71,020) |
Total inventory | $ 197,035 | $ 205,062 |
Impairment, Restructuring and_3
Impairment, Restructuring and Other Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and other charges | $ 32,713 | |
Severance costs | 8,399 | |
Inventory write-down | 17,272 | |
Long-lived asset impairment | 6,912 | |
Other restructuring charges | 130 | $ 2,400 |
Goodwill impairment loss | $ 7,700 | 0 |
Former Chief Operating Officer | ||
Restructuring Cost And Reserve [Line Items] | ||
Severance costs | $ 1,100 |
Impairment, Restructuring and_4
Impairment, Restructuring and Other Charges - Schedule of Impairment, Restructuring and Other Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring And Related Activities [Abstract] | ||
Inventory write-down | $ 17,272 | |
Severance | 8,399 | |
Long-lived asset impairment | 6,912 | |
Other restructuring charges | 130 | $ 2,400 |
Total impairment, restructuring and other charges | $ 32,713 |
Impairment, Restructuring and_5
Impairment, Restructuring and Other Charges - Schedule of Accrued Liabilities Related to Restructuring and Others Charges (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Restructuring And Related Activities [Abstract] | |
Beginning balance | $ 0 |
Additions for costs expensed | 8,000 |
Reductions for payments | 0 |
Ending balance | $ 8,000 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (9,013) | $ (8,165) |
Finite-Lived, Foreign Currency Translation | (229) | 176 |
Indefinite-lived, Gross Book Value | 179 | 172 |
Indefinite-lived Intangible Assets, Foreign Currency Translation | (10) | 7 |
Indefinite-lived Intangible, Net Book Value | 169 | 179 |
Indefinite and Finite-Lived, Gross Book Value | 40,446 | 40,234 |
Indefinite and Finite-Lived, Net Book Value | $ 31,204 | $ 32,245 |
Trademarks | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 15 years | 15 years |
Finite-Lived, Gross Book Value | $ 8,206 | $ 8,159 |
Accumulated Amortization | (638) | (512) |
Finite-Lived, Foreign Currency Translation | (49) | 47 |
Finite-Lived, Net Book Value | 7,519 | 7,694 |
Patents | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Finite-Lived, Gross Book Value | 5,951 | 5,945 |
Accumulated Amortization | (2,371) | (2,529) |
Finite-Lived, Foreign Currency Translation | 111 | |
Finite-Lived, Net Book Value | $ 3,691 | $ 3,416 |
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 | $ 25,939 | $ 25,787 |
Accumulated Amortization | (5,833) | (4,954) |
Finite-Lived, Foreign Currency Translation | (281) | 122 |
Finite-Lived, Net Book Value | $ 19,825 | $ 20,955 |
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 | $ (171) | (170) |
Finite-Lived, Net Book Value | $ 1 |
Asset Backed Loan (ABL) Credi_2
Asset Backed Loan (ABL) Credit Facility (Details) - ABL Credit Facility - Revolving Credit Facility | Feb. 23, 2018USD ($) | Mar. 31, 2020USD ($) |
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 | 1.1 | |
Available borrowing capacity | $ 44,500,000 | |
Letters of credit outstanding | $ 900,000 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 0.25% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 0.375% | |
CB Floating Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% | |
CB Floating Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Eurodollar | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.00% | |
Eurodollar | Maximum | ||
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 | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 95,998 | $ 94,317 | |
Depreciation and amortization | 8,873 | 8,356 | |
Income (loss) before income taxes | (41,307) | (3,718) | |
Total long-lived assets | 309,819 | $ 326,076 | |
Total assets | 1,136,110 | 1,206,565 | |
Transferred at Point in Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 37,373 | 48,325 | |
Transferred Over Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 30,185 | 17,109 | |
Intercompany | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,901 | 4,975 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (5,901) | (4,975) | |
Total long-lived assets | (371,937) | (371,938) | |
Total assets | (607,288) | (526,142) | |
Western Hemisphere | |||
Segment Reporting Information [Line Items] | |||
Revenues | 60,503 | 56,633 | |
Western Hemisphere | Transferred at Point in Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 22,964 | 23,767 | |
Western Hemisphere | Transferred Over Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 18,508 | 12,609 | |
Western Hemisphere | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 5,622 | 5,419 | |
Income (loss) before income taxes | 8,153 | 1,579 | |
Total long-lived assets | 375,729 | 379,776 | |
Total assets | 777,321 | 732,716 | |
Western Hemisphere | Intercompany | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,314 | 4,091 | |
Eastern Hemisphere [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 25,596 | 26,414 | |
Eastern Hemisphere [Member] | Transferred at Point in Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 8,962 | 14,118 | |
Eastern Hemisphere [Member] | Transferred Over Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9,217 | 4,500 | |
Eastern Hemisphere [Member] | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 974 | 1,053 | |
Income (loss) before income taxes | (28,321) | 6,581 | |
Total long-lived assets | 235,939 | 246,854 | |
Total assets | 786,238 | 818,803 | |
Eastern Hemisphere [Member] | Intercompany | |||
Segment Reporting Information [Line Items] | |||
Revenues | 331 | 144 | |
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Revenues | 15,800 | 16,245 | |
Asia Pacific | Transferred at Point in Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,447 | 10,440 | |
Asia Pacific | Transferred Over Time | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,460 | ||
Asia Pacific | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 1,340 | 1,198 | |
Income (loss) before income taxes | 1,569 | 5,196 | |
Total long-lived assets | 70,088 | 71,384 | |
Total assets | 179,839 | $ 181,188 | |
Asia Pacific | Intercompany | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,256 | 740 | |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | (5,901) | (4,975) | |
Depreciation and amortization | 937 | 686 | |
Income (loss) before income taxes | (22,708) | (17,074) | |
Corporate, Non-Segment | Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (5,901) | (4,975) | |
Products | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 67,558 | 65,434 | |
Products | Western Hemisphere | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 41,472 | 36,376 | |
Products | Eastern Hemisphere [Member] | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 18,179 | 18,618 | |
Products | Asia Pacific | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,907 | 10,440 | |
Technical Advisory | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 14,181 | 14,299 | |
Technical Advisory | Western Hemisphere | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,396 | 7,022 | |
Technical Advisory | Eastern Hemisphere [Member] | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,496 | 4,082 | |
Technical Advisory | Asia Pacific | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,289 | 3,195 | |
Reconditioning | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,633 | 4,177 | |
Reconditioning | Western Hemisphere | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,560 | 2,823 | |
Reconditioning | Eastern Hemisphere [Member] | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 842 | 923 | |
Reconditioning | Asia Pacific | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 231 | 431 | |
Total Services (excluding rental tools) | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 18,814 | 18,476 | |
Total Services (excluding rental tools) | Western Hemisphere | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 10,956 | 9,845 | |
Total Services (excluding rental tools) | Eastern Hemisphere [Member] | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,338 | 5,005 | |
Total Services (excluding rental tools) | Asia Pacific | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,520 | 3,626 | |
Leasing | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9,626 | 10,407 | |
Leasing | Western Hemisphere | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,761 | 6,321 | |
Leasing | Eastern Hemisphere [Member] | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,748 | 2,647 | |
Leasing | Asia Pacific | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,117 | 1,439 | |
Total Services (including rental tools) | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 28,440 | 28,883 | |
Total Services (including rental tools) | Western Hemisphere | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 15,717 | 16,166 | |
Total Services (including rental tools) | Eastern Hemisphere [Member] | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,086 | 7,652 | |
Total Services (including rental tools) | Asia Pacific | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 5,637 | $ 5,065 |
Geographic Areas - Additional I
Geographic Areas - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)SegmentLocation | Mar. 31, 2019USD ($) | |
Concentration Risk [Line Items] | ||
Impairment, restructuring and other charges | $ 40.4 | |
Impairment of inventory and long-lived assets | 24.2 | |
Goodwill impairment loss | $ 7.7 | $ 0 |
Number of geographic segments | Segment | 3 | |
Number of headquarter locations | Location | 3 | |
Eastern Hemisphere [Member] | ||
Concentration Risk [Line Items] | ||
Impairment, restructuring and other charges | $ 32.1 | |
Impairment of inventory and long-lived assets | 22.3 | |
Goodwill impairment loss | 7.7 | |
Western Hemisphere | ||
Concentration Risk [Line Items] | ||
Impairment, restructuring and other charges | 1.9 | |
Impairment of inventory and long-lived assets | 1.9 | |
Corporate, Non-Segment | ||
Concentration Risk [Line Items] | ||
Impairment, restructuring and other charges | 6.2 | |
Asia Pacific | ||
Concentration Risk [Line Items] | ||
Impairment, restructuring and other charges | $ 0.2 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | |
Mar. 27, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Unusual Risk Or Uncertainty [Line Items] | |||
Effective tax rate, percent | 52.30% | (62.70%) | |
Covid 19 | |||
Unusual Risk Or Uncertainty [Line Items] | |||
Effective tax rate, percent | 79.80% |
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 |