Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 18, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | OIL STATES INTERNATIONAL, INC | ||
Entity Central Index Key | 1,121,484 | ||
Trading Symbol | ois | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding (in shares) | 51,449,961 | ||
Entity Public Float | $ 1,840,219,502 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Product | $ 561,018 | $ 765,339 | $ 714,787 |
Service and other | 538,959 | 1,054,270 | 914,347 |
1,099,977 | 1,819,609 | 1,629,134 | |
Costs and expenses: | |||
Product costs | 395,137 | 546,639 | 536,660 |
Service and other costs | 390,561 | 659,245 | 576,508 |
Selling, general and administrative expenses | 132,664 | 169,432 | 150,967 |
Depreciation and amortization expense | 131,257 | 124,776 | 109,231 |
Other operating (income) expense, net | (4,648) | 9,262 | 8,491 |
1,044,971 | 1,509,354 | 1,381,857 | |
Operating income | 55,006 | 310,255 | 247,277 |
Interest expense | (6,427) | (17,173) | (38,830) |
Interest income | 543 | 560 | 628 |
Loss on extinguishment of debt | (100,380) | (6,168) | |
Other income | 1,446 | 3,082 | 1,220 |
Total | 50,568 | 196,344 | 204,127 |
Income tax provision | (22,197) | (69,117) | (75,068) |
Net income from continuing operations | 28,371 | 127,227 | 129,059 |
Net income from discontinued operations, net of tax (including a net gain on disposal of $84,043 in 2013) | 226 | 51,776 | 292,217 |
Net income | 28,597 | 179,003 | 421,276 |
Less: Net income attributable to noncontrolling interest | 18 | ||
Net income attributable to Oil States International, Inc. | 28,597 | 179,003 | 421,258 |
Continuing operations | 28,371 | 127,227 | 129,041 |
Discontinued operations | $ 226 | $ 51,776 | $ 292,217 |
Basic net income per share attributable to Oil States International, Inc. common stockholders from: | |||
Continuing operations (in dollars per share) | $ 0.55 | $ 2.37 | $ 2.32 |
Discontinued operations (in dollars per share) | 0.01 | 0.96 | 5.26 |
Net income (in dollars per share) | 0.56 | 3.33 | 7.58 |
Diluted net income per share attributable to Oil States International, Inc. common stockholders from: | |||
Continuing operations (in dollars per share) | 0.55 | 2.35 | 2.31 |
Discontinued operations (in dollars per share) | 0.01 | 0.96 | 5.22 |
Net income (in dollars per share) | $ 0.56 | $ 3.31 | $ 7.53 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 50,269 | 52,862 | 54,969 |
Diluted (in shares) | 50,335 | 53,151 | 55,327 |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parentheticals) $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Net gain on disposal | $ 84,043 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 28,597 | $ 179,003 | $ 421,276 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustment | (27,957) | 235 | (193,191) |
Unrealized gain on forward contracts, net of tax | 307 | 6 | 402 |
Other comprehensive income | (948) | (185) | 17 |
Total other comprehensive (loss) income | (28,598) | 56 | (192,772) |
Comprehensive (loss) income | (1) | 179,059 | 228,504 |
Less: Comprehensive loss attributable to noncontrolling interest | (24) | (73) | |
Comprehensive (loss) income attributable to Oil States International, Inc. | $ (1) | $ 179,083 | $ 228,577 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 35,973 | $ 53,263 |
Accounts receivable, net | 333,494 | 497,124 |
Inventories, net | 212,882 | 232,490 |
Prepaid expenses and other current assets | 29,124 | 43,789 |
Total current assets | 611,473 | 826,666 |
Property, plant and equipment, net | 638,725 | 649,846 |
Goodwill, net | 263,787 | 252,201 |
Other intangible assets, net | 59,385 | 53,884 |
Other noncurrent assets | 25,768 | 27,015 |
Total assets | 1,599,138 | 1,809,612 |
Current liabilities: | ||
Accounts payable | 59,116 | 108,949 |
Accrued liabilities | 49,300 | 96,130 |
Income taxes | 8,303 | 9,195 |
Current portion of long-term debt and capitalized leases | 533 | 530 |
Deferred revenue | 36,655 | 48,948 |
Deferred tax liabilities | 7,431 | |
Other current liabilities | 293 | 229 |
Total current liabilities | 154,200 | 271,412 |
Total long-term debt and capitalized leases | 128,554 | 146,835 |
Deferred income taxes | 40,497 | 33,913 |
Other noncurrent liabilities | 20,215 | 16,795 |
Total liabilities | 343,466 | 468,955 |
Stockholders' equity: | ||
Common stock, $.01 par value, 200,000,000 shares authorized, 61,712,805 shares and 60,940,734 shares issued, respectively, and 50,953,149 shares and 53,017,359 shares outstanding, respectively | 617 | 610 |
Additional paid-in capital | 712,980 | 685,232 |
Retained earnings | 1,179,863 | 1,151,266 |
Accumulated other comprehensive loss | 50,698 | 22,100 |
Common stock held in treasury at cost, 10,759,656 and 7,923,375 shares, respectively | (587,090) | (474,351) |
Total Oil States International, Inc. stockholders' equity | $ 1,255,672 | $ 1,340,657 |
Noncontrolling interest | ||
Total stockholders' equity | $ 1,255,672 | $ 1,340,657 |
Total liabilities and stockholders' equity | $ 1,599,138 | $ 1,809,612 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 61,712,805 | 60,940,734 |
Common stock, shares outstanding (in shares) | 50,953,149 | 53,017,359 |
Treasury stock, shares (in shares) | 10,759,656 | 7,923,375 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Discontinued Operations [Member]Common Stock [Member] | Discontinued Operations [Member]Additional Paid-in Capital [Member] | Discontinued Operations [Member]Retained Earnings [Member] | Discontinued Operations [Member]AOCI Attributable to Parent [Member] | Discontinued Operations [Member]Treasury Stock [Member] | Discontinued Operations [Member]Noncontrolling Interest [Member] | Discontinued Operations [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2012 | $ 585 | $ 586,070 | $ 1,899,195 | $ 107,097 | $ (128,542) | $ 1,395 | $ 2,465,800 | |||||||
Net income | $ 421,258 | 18 | 421,276 | |||||||||||
Currency translation adjustment | (193,191) | $ (91) | (193,282) | |||||||||||
Other comprehensive income | 17 | 17 | ||||||||||||
Unrealized gain on forward contracts, net of tax | $ 402 | 402 | ||||||||||||
Dividends paid | $ (882) | (882) | ||||||||||||
Exercise of stock options, including tax impact | $ 1,292 | $ 1,292 | $ 5 | $ 23,786 | 23,791 | |||||||||
Amortization of restricted stock compensation | 21,121 | 21,121 | ||||||||||||
Stock option expense | 5,153 | 5,153 | ||||||||||||
Surrender of stock to pay taxes on restricted stock awards | $ 2 | $ (2) | $ (4,919) | (4,919) | ||||||||||
Stock repurchases | $ (115,932) | (115,932) | ||||||||||||
Net income from noncontrolling interest – discontinued operations | $ 1,437 | 1,437 | ||||||||||||
Other | $ 18 | $ 2 | 20 | |||||||||||
Balance at Dec. 31, 2013 | $ 592 | $ 637,438 | $ 2,320,453 | $ (85,675) | $ (249,391) | $ 1,877 | 2,625,294 | |||||||
Net income | $ 179,003 | 179,003 | ||||||||||||
Currency translation adjustment | $ 235 | $ (24) | 211 | |||||||||||
Other comprehensive income | (185) | (185) | ||||||||||||
Unrealized gain on forward contracts, net of tax | $ 6 | 6 | ||||||||||||
Dividends paid | $ (489) | (489) | ||||||||||||
Exercise of stock options, including tax impact | $ 2,727 | $ 2,727 | $ 4 | $ 17,124 | 17,128 | |||||||||
Amortization of restricted stock compensation | 23,513 | 23,513 | ||||||||||||
Stock option expense | $ 3,636 | 3,636 | ||||||||||||
Surrender of stock to pay taxes on restricted stock awards | $ (6,136) | (6,136) | ||||||||||||
Stock repurchases | $ (218,906) | (218,906) | ||||||||||||
Net income from noncontrolling interest – discontinued operations | $ 566 | 566 | ||||||||||||
Other | $ 14 | $ (14) | ||||||||||||
Balance at Dec. 31, 2014 | $ 610 | 685,232 | $ 1,151,266 | $ (22,100) | $ (474,351) | 1,340,657 | ||||||||
OIS common stock withdrawn from deferred compensation plan | 1,234 | $ 82 | 1,316 | |||||||||||
Spin-Off of Civeo | (242) | $ (1,348,190) | $ 63,519 | $ (1,764) | (1,286,677) | |||||||||
Acquisition of non-controlling interest | $ (184) | $ (166) | (350) | |||||||||||
Net income | $ 28,597 | 28,597 | ||||||||||||
Currency translation adjustment | Excluding Intercompany Notes [Member] | $ (24,191) | (24,191) | ||||||||||||
Currency translation adjustment | Intercompany Notes [Member] | (3,766) | (3,766) | ||||||||||||
Other comprehensive income | (948) | (948) | ||||||||||||
Unrealized gain on forward contracts, net of tax | $ 307 | 307 | ||||||||||||
Exercise of stock options, including tax impact | $ 3 | $ 5,977 | 5,980 | |||||||||||
Amortization of restricted stock compensation | 18,836 | 18,836 | ||||||||||||
Stock option expense | $ 2,942 | 2,942 | ||||||||||||
Surrender of stock to pay taxes on restricted stock awards | $ (6,826) | (6,826) | ||||||||||||
Stock repurchases | (105,916) | (105,916) | ||||||||||||
Balance at Dec. 31, 2015 | $ 617 | $ 712,980 | $ 1,179,863 | $ (50,698) | (587,090) | $ 1,255,672 | ||||||||
OIS common stock withdrawn from deferred compensation plan | (3) | $ 3 | ||||||||||||
Restricted stock awards granted | $ 4 | $ (4) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Six and a Half Percent Senior Notes [Member] | |||
Cash flows from financing activities: | |||
Repayment of senior notes | $ (630,307) | ||
Five and One Eighth Percent Senior Notes [Member] | |||
Cash flows from financing activities: | |||
Repayment of senior notes | (419,794) | $ (37,750) | |
Net income | $ 28,597 | 179,003 | 421,276 |
Income from discontinued operations | (226) | (51,776) | (292,217) |
Depreciation and amortization | 131,257 | 124,776 | 109,231 |
Deferred income tax benefit | (3,173) | (11,970) | (9,759) |
Tax impact of share-based payment arrangements | (469) | (6,904) | (7,407) |
Gains on disposals of assets | (1,274) | (2,043) | (1,090) |
Non-cash compensation charge | 21,778 | 25,581 | 24,097 |
Amortization of deferred financing costs | 780 | 1,819 | 4,146 |
Loss on extinguishment of debt | 100,380 | 6,168 | |
Other, net | 283 | 3,127 | 4,459 |
Accounts receivable | 156,945 | (65,787) | 801 |
Inventories | 17,777 | 1,430 | (691) |
Accounts payable and accrued liabilities | (98,354) | 5,741 | 3,163 |
Taxes payable | 4,897 | (15,130) | (3,442) |
Other operating assets and liabilities, net | (3,050) | 14,397 | (23,649) |
Net cash flows provided by continuing operating activities | 255,768 | 302,644 | 235,086 |
Net cash flows provided by discontinued operating activities | 353 | 135,392 | 452,177 |
Net cash flows provided by operating activities | 256,121 | 438,036 | 687,263 |
Capital expenditures | (114,738) | (199,256) | (164,895) |
Acquisitions of businesses, net of cash acquired | (33,427) | (157) | (44,260) |
Proceeds from sale of business | 600,000 | ||
Proceeds from disposition of property, plant and equipment | 2,655 | 3,535 | 2,449 |
Other, net | (1,686) | (2,626) | 215 |
Net cash flows (used in) provided by continuing investing activities | (147,196) | (198,504) | 393,509 |
Net cash flows used in discontinued investing activities | (119,199) | (285,132) | |
Net cash flows (used in) provided by investing activities | (147,196) | (317,703) | 108,377 |
Revolving credit (repayments) borrowings, net | (17,825) | 140,684 | |
Distribution received from Spin-Off of Civeo | 750,000 | ||
Term loan repayments | (170,000) | ||
Debt and capital lease repayments | (541) | (538) | (2,303) |
Issuance of common stock from share based payment arrangements | 5,920 | 10,475 | 16,384 |
Purchase of treasury stock | (105,916) | (226,303) | (108,535) |
Tax impact of share based payment arrangements | 469 | 6,904 | 7,407 |
Payment of financing costs | (2) | (3,897) | (212) |
Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock | (6,827) | (6,136) | (4,919) |
Net cash flows used in continuing financing activities | (124,722) | (378,912) | (299,928) |
Net cash flows used in discontinued financing activities | (282,204) | (130,668) | |
Net cash flows used in financing activities | (124,722) | (661,116) | (430,596) |
Effect of exchange rate changes on cash | (1,493) | (5,260) | (18,910) |
Net change in cash and cash equivalents | (17,290) | (546,043) | 346,134 |
Cash and cash equivalents, beginning of year | 53,263 | 599,306 | 253,172 |
Cash and cash equivalents, end of year | $ 35,973 | $ 53,263 | $ 599,306 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parentheticals) | Dec. 31, 2014 | Dec. 31, 2013 |
Six and a Half Percent Senior Notes [Member] | ||
Interest rate | 6.50% | |
Five and One Eighth Percent Senior Notes [Member] | ||
Interest rate | 5.125% | 5.125% |
Note 1 - Organization and Basis
Note 1 - Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization and Basis of Presentation The Consolidated Financial Statements include the accounts of Oil States International, Inc. (Oil States or the Company) and its consolidated subsidiaries. Investments in unconsolidated affiliates, in which the Company is able to exercise significant influence, are accounted for using the equity method. All significant intercompany accounts and transactions between the Company and its consolidated subsidiaries have been eliminated in the accompanying Consolidated Financial Statements. Certain prior year amounts in the Company’s Consolidated Financial Statements have been reclassified to conform to the current year presentation. On May 30, 2014, we completed the spin-off of our accommodations business into a stand-alone, publicly traded corporation (Civeo Corporation, or Civeo) (the Spin-Off). The results of operations for our accommodations business have been classified as discontinued operations for all periods presented. Unless indicated otherwise, the information in the Notes to Consolidated Financial Statements relates to our continuing operations. The Company, through its subsidiaries, is a leading provider of specialty products and services to oil and gas companies throughout the world. We operate in a substantial number of the world's active oil and natural gas producing regions, onshore and offshore U.S., Canada, West Africa, the North Sea, South America and Southeast and Central Asia. The Company operates in two principal reportable business segments – offshore products and well site services. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Summary of Significant Accounting Policies Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, investments, receivables, payables, bank debt and foreign currency forward contracts. The Company believes that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values. Inventories Inventories consist of oilfield products, manufactured equipment, spare parts for manufactured equipment, and work-in-process. Inventories also include raw materials, labor, subcontractor charges, manufacturing overhead and other supplies and are carried at the lower of cost or market. The cost of inventories is determined on an average cost or specific-identification method. A reserve for excess, damaged and/or obsolete inventory is maintained based on the age, turnover or condition of the inventory. Property, Plant, and Equipment Property, plant, and equipment are stated at cost or at estimated fair market value at acquisition date if acquired in a business combination, and depreciation is computed, for assets owned or recorded under capital lease, using the straight-line method, after allowing for salvage value where applicable, over the estimated useful lives of the assets. We use the component depreciation method for our drilling services assets. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing equipment, are capitalized and depreciated. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the statements of income. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price paid for acquired businesses over the allocated fair value of the related net assets after impairments, if applicable. We evaluate goodwill for impairment annually and when an event occurs or circumstances change to suggest that the carrying amount may not be recoverable. Our reporting units with goodwill at December 31, 2015 include offshore products and completion services. As part of the goodwill impairment analysis, current accounting standards give us the option to first perform a qualitative assessment to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. If it is determined that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then performing the currently prescribed two-step impairment test is unnecessary. In developing a qualitative assessment to meet the “more-likely-than-not” threshold, each reporting unit with goodwill on its balance sheet is assessed separately and different relevant events and circumstances are evaluated for each unit. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the prescribed two-step impairment test is performed. Current accounting standards also give us the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. In 2015, we performed the two-step impairment test given stock value declines in the energy sector and the impact of low oil prices on our operating results. In performing the two-step impairment test, we estimate the implied fair value (IFV) of each reporting unit and compare the IFV to the carrying value of such unit. We utilize, depending on circumstances, a combination of trading multiples analyses, discounted projected cash flow calculations with estimated terminal values and acquisition comparables to estimate the IFV. We discount our projected cash flows using a long-term weighted average cost of capital for each reporting unit based on our estimate of investment returns that would be required by a market participant. As part of our process to assess goodwill for impairment, we also compare the total market capitalization of the Company to the sum of the IFV's of all of our reporting units to assess the reasonableness of the IFV's in the aggregate. If the carrying amount of a reporting unit exceeds its IFV, goodwill is considered to be potentially impaired and additional analysis in accordance with current accounting standards is conducted to determine the amount of impairment, if any. We conduct our annual impairment test as of December of each year. In 2013, 2014 and 2015, our goodwill impairment tests indicated that the fair value of each of our reporting units is greater than its carrying amount. For other intangible assets that we amortize, we review the useful life of the intangible asset and evaluate each reporting period whether events and circumstances warrant a revision to the remaining useful life. Based on the Company’s review, the carrying values of its other intangible assets are recoverable, and no impairment losses have been recorded for the periods presented. See Note 9 – Goodwill and Other Intangible Assets. Impairment of Long-Lived Assets The recoverability of the carrying values of long-lived assets at the asset group level, including finite-lived intangible assets, is assessed whenever, in management's judgment, events or changes in circumstances indicate that the carrying value of such asset groups may not be recoverable based on estimated future cash flows. If this assessment indicates that the carrying values will not be recoverable, as determined based on undiscounted cash flows over the remaining useful lives, an impairment loss is recognized. The impairment loss equals the excess of the carrying value over the fair value of the asset group. The fair value of the asset group is based on prices of similar assets, if available, or discounted cash flows. Based on the Company's review, the carrying values of its asset groups are recoverable, and no impairment losses have been recorded for the periods presented. Foreign Currency and Other Comprehensive Income Gains and losses resulting from balance sheet translation of foreign operations where a foreign currency is the functional currency are included as a separate component of accumulated other comprehensive income within stockholders' equity representing substantially all of the balances within accumulated other comprehensive income. Remeasurements of intercompany loans denominated in a different currency than the functional currency of the entity that are of a long-term investment nature are recognized as other comprehensive income within stockholders’ equity. Gains and losses resulting from balance sheet remeasurements of assets and liabilities denominated in a different currency than the functional currency, other than intercompany loans that are of a long-term investment nature, are included in the consolidated statements of income as incurred. Foreign Currency Exchange Rate Risk A portion of revenues, earnings and net investments in foreign affiliates are exposed to changes in foreign currency exchange rates. We seek to manage our foreign exchange risk in part through operational means, including managing expected local currency revenues in relation to local currency costs and local currency assets in relation to local currency liabilities. In order to reduce our exposure to fluctuations in currency exchange rates, we may enter into foreign exchange agreements with financial institutions. As of December 31, 2015 and 2014, we had outstanding foreign currency forward purchase contracts with notional amounts of $5.4 million related to expected cash flows denominated in Euros. As a result of these contracts, we recorded other comprehensive income of $0.3 million and $0.4 million, respectively, for the years ended December 31, 2015 and December 31, 2013. In addition, we recorded $0.4 million and $0.9 million, respectively, in foreign exchange losses related to amounts reclassified from accumulated other comprehensive loss into an expense on the income statement for the years ended December 31, 2015 and December 31, 2013. Foreign exchange gains and losses have totaled gains of $3.7 million in 2015 and losses of $0.4 million and $1.6 million in 2014 and 2013, respectively, and were included in “Other operating (income) expense.” Revenue and Cost Recognition Revenue from the sale of products, not accounted for utilizing the percentage-of-completion method, is recognized when delivery to and acceptance by the customer has occurred, when title and all significant risks of ownership have passed to the customer, collectability is probable and pricing is fixed and determinable. Our product sales terms do not include significant post-delivery obligations. For significant projects, revenues are recognized under the percentage-of-completion method, measured by the percentage of costs incurred to date compared to estimated total costs for each contract (cost-to-cost method). Billings on such contracts in excess of costs incurred and estimated profits are classified as deferred revenue. Costs incurred and estimated profits in excess of billings on percentage-of-completion contracts are recognized as unbilled receivables. Management believes this method is the most appropriate measure of progress on large contracts. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Factors that may affect future project costs and margins include weather, production efficiencies, availability and costs of labor, materials and subcomponents. These factors can significantly impact the accuracy of the Company’s estimates and materially impact the Company’s future reported earnings. In our well site services segment, revenues are recognized based on a periodic (usually daily) rate or when the services are rendered. Proceeds from customers for the cost of oilfield rental equipment that is damaged or lost downhole are reflected as gains or losses on the disposition of assets after considering the write-off of the remaining net book value of the equipment. For drilling services contracts based on footage drilled, we recognize revenues as footage is drilled. Revenues exclude taxes assessed based on revenues such as sales or value added taxes. Cost of goods sold includes all direct material and labor costs and those costs related to contract performance, such as indirect labor, supplies, tools and repairs. Selling, general, and administrative costs are charged to expense as incurred. Income Taxes The Company follows the liability method of accounting for income taxes in accordance with current accounting standards regarding the accounting for income taxes. Under this method, deferred income taxes are recorded based upon the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws in effect at the time the underlying assets or liabilities are recovered or settled. OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) When the Company's earnings from foreign subsidiaries are considered to be indefinitely reinvested, no provision for U.S. income taxes is made for these earnings. If any of the subsidiaries have a distribution of earnings in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. During 2015, we repatriated $35.2 million from our foreign subsidiaries which was used to reduce outstanding borrowings under our credit facility. The Company records a valuation allowance in the reporting period when management believes that it is more likely than not that any deferred tax asset created will not be realized. Management will continue to evaluate the appropriateness of the valuation allowance in the future based upon the operating results of the Company. The calculation of our tax liabilities involves accessing the uncertainties regarding the application of complex tax regulations. We recognize liabilities for tax expenses based on our estimate of whether, and the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We record an additional charge in our provision for taxes in the period in which we determine that the recorded tax liability is less than we expect the ultimate assessment to be. Discontinued Operations The operating results of a component of our business that either has been disposed of or is classified as held for sale are presented as discontinued operations when both of the following conditions are met: (a) the operations and cash flows of the component have been or will be eliminated from our ongoing operations as a result of the disposal transaction and (b) we will not have any significant continuing involvement in the operations of the disposed component. We consider a component of our business to be one that comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of our business. Receivables and Concentration of Credit Risk Based on the nature of its customer base, the Company does not believe that it has any significant concentrations of credit risk other than its concentration in the worldwide oil and gas industry. The Company evaluates the credit-worthiness of its significant, new and existing customers' financial condition and, generally, the Company does not require significant collateral from its customers. Allowances for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company's customers to make required payments. If a trade receivable is deemed to be uncollectible, such receivable is charged-off against the allowance for doubtful accounts. The Company considers the following factors when determining if collection of revenue is reasonably assured: customer credit-worthiness, past transaction history with the customer, customer solvency and changes in customer payment terms. If the Company has no previous experience with the customer, the Company typically obtains reports from various credit organizations to ensure that the customer has a history of paying its creditors. The Company may also request financial information, including financial statements or other documents to ensure that the customer has the means of making payment. If these factors do not indicate collection is reasonably assured, the Company may require a prepayment or other arrangement to support revenue recognition and recording of a trade receivable. If the financial condition of the Company's customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Earnings per Share Diluted EPS amounts include the effect of the Company's outstanding stock options and restricted stock shares under the treasury stock method. We have shares of restricted stock issued and outstanding, some of which remain subject to vesting requirements. Holders of such shares of unvested restricted stock are entitled to the same liquidation and dividend rights as the holders of our outstanding common stock and are thus considered participating securities. Under applicable accounting guidance, the undistributed earnings for each period are allocated based on the participation rights of both the common shareholders and holders of any participating securities as if earnings for the respective periods had been distributed. Because both the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, we are required to compute earnings per share (EPS) amounts under the two class method in periods in which we have earnings from continuing operations. OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The presentation of basic EPS amounts on the face of the accompanying consolidated statements of operations is computed by dividing the net income applicable to the Company’s common shareholders by the weighted average shares of outstanding common stock. The calculation of diluted EPS is similar to basic EPS, except that the denominator includes dilutive common stock equivalents and the income included in the numerator excludes the effects of the impact of dilutive common stock equivalents, if any. Stock-Based Compensation The fair value of share-based payments is estimated using option-pricing models based on the grant-date fair value of the award. The resulting cost is recognized over the period during which an employee is required to provide service in exchange for the awards, usually the vesting period. In addition to service-based awards, in 2015, 2014 and 2013, the Company issued performance-based awards which are conditional based upon performance and may vest in an amount that will depend on the Company’s achievement of specified performance objectives. The performance-based awards issued in 2014 and 2015 have a performance criteria that will be measured based upon the Company’s achievement levels of average after-tax annual return on invested capital. During the years ended December 31, 2015, 2014 and 2013, the Company recognized non-cash general and administrative expenses for stock options and restricted stock awards totaling $21.8 million, $25.6 million and $22.5 million, respectively. Guarantees Some product sales in our offshore products businesses are sold with a warranty, generally ranging from 12 to 18 months. Parts and labor are covered under the terms of the warranty agreement. Warranty provisions are estimated based upon historical experience by product, configuration and geographic region. Our total liability related to estimated warranties was $2.6 million and $2.8 million at December 31, 2015 and 2014, respectively. During the ordinary course of business, the Company also provides standby letters of credit or other guarantee instruments to certain parties as required for certain transactions initiated by either the Company or its subsidiaries. As of December 31, 2015, the maximum potential amount of future payments that the Company could be required to make under these guarantee agreements (letters of credit) was $46.6 million. The Company has not recorded any liability in connection with these guarantee arrangements. The Company does not believe, based on historical experience and information currently available, that it is likely that any amounts will be required to be paid under these guarantee arrangements. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of a few such estimates include potential future adjustments as a result of contingent consideration arrangements pursuant to business combinations and other contractual agreements, revenue and income recognized on the percentage-of-completion method, any valuation allowance recorded on net deferred tax assets, warranty, reserves on inventory and allowance for doubtful accounts. Actual results could materially differ from those estimates. Accounting for Contingencies We have contingent liabilities and future claims for which we have made estimates of the amount of the eventual cost to liquidate these liabilities or claims. These liabilities and claims sometimes involve threatened or actual litigation where damages have been quantified and we have made an assessment of our exposure and recorded a provision in our accounts to cover an expected loss. Other claims or liabilities have been estimated based on their fair value or our experience in these matters and, when appropriate, the advice of outside counsel or other outside experts. Upon the ultimate resolution of these uncertainties, our future reported financial results will be impacted by the difference between our estimates and the actual amounts paid to settle a liability. Examples of areas where we have made important estimates of future liabilities include future consideration due sellers as a result of the terms of a business combination, litigation, taxes, insurance claims, warranty claims, contract claims and obligations and discontinued operations. Subsequent Events In accordance with authoritative guidance, the Company evaluates all events and transactions that occur after the balance sheet date, but before financial statements are issued for possible recognition or disclosure. |
Note 3 - Details of Selected Ba
Note 3 - Details of Selected Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 3 . Details of Selected Balance Sheet Accounts Additional information regarding selected balance sheet accounts at December 31, 2015 and 2014 is presented below (in thousands): 2015 2014 Accounts receivable, net: Trade $ 210,313 $ 348,115 Unbilled revenue 124,331 148,371 Other 5,738 7,763 Total accounts receivable 340,382 504,249 Allowance for doubtful accounts (6,888 ) (7,125 ) $ 333,494 $ 497,124 2015 2014 Inventories, net: Finished goods and purchased products $ 97,362 $ 94,955 Work in process 42,182 49,631 Raw materials 86,236 97,780 Total inventories 225,780 242,366 Allowance for excess, damaged, or obsolete inventory (12,898 ) (9,876 ) $ 212,882 $ 232,490 Estimated (years) 2015 2014 Property, plant and equipment, net: Land $ 26,334 $ 29,850 Buildings and leasehold improvements 3 - 40 185,274 175,421 Machinery and equipment 2 - 28 462,054 438,980 Completion services equipment 2 - 10 421,386 387,165 Office furniture and equipment 3 - 10 32,200 30,647 Vehicles 2 - 10 125,211 129,922 Construction in progress 92,800 74,088 Total property, plant and equipment 1,345,259 1,266,073 Accumulated depreciation (706,534 ) (616,227 ) $ 638,725 $ 649,846 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2015 2014 Accrued liabilities: Accrued compensation $ 19,402 $ 58,979 Insurance liabilities 9,855 11,300 Accrued taxes, other than income taxes 3,619 4,851 Accrued leasehold restoration liability 3,389 -- Accrued commissions 2,033 3,621 Accrued product warranty reserves 2,638 2,809 Accrued claims 896 8,000 Other 7,468 6,570 $ 49,300 $ 96,130 Depreciation expense was $123.5 million, $117.7 million and $104.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Note 4 - Recent Accounting Pron
Note 4 - Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 4 . Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the FASB), which are adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. In November 2015, the FASB issued guidance on the balance sheet classification of deferred taxes which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this new guidance. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. The guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Due to its simplification of the accounting for and presentation of deferred income taxes, we have elected to early adopt this guidance prospectively in the fourth quarter of 2015 and, as a result, have presented all deferred tax assets and liabilities as noncurrent on our consolidated balance sheet as of December 31, 2015, but have not adjusted our December 31, 2014 consolidated balance sheet as a result of this adoption. In September 2015, the FASB issued guidance on measurement-period adjustments for business combinations which require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period with a corresponding adjustment to goodwill in the reporting period in which the adjustment amounts are determined, as opposed to revising prior periods presented in financial statements as previously required. Thus, an acquirer shall record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. This guidance requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. This guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this guidance with earlier application permitted for financial statements that have not been issued. We do not expect that the adoption of this standard will have a material effect on our consolidated financial statements. In July 2015, the FASB issued guidance on the measurement of inventory which simplifies the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first out or the retail inventory method. Under this guidance, inventory should be measured at the lower of cost and net realizable value. This guidance is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. We are evaluating the impact of this guidance on our consolidated financial statements and our timing for adoption but do not expect that the adoption of this guidance will have a material effect on our consolidated financial statements. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) In April 2015, the FASB issued guidance on the presentation of debt issuance costs which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued additional guidance on this topic The recognition and measurement guidance for debt issuance costs are not affected by this guidance. For public business entities, this guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. We do not expect that the adoption of this standard will have a material effect on our consolidated financial statements. In May 2014, the FASB issued guidance on revenue from contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In August 2015, the FASB issued guidance deferring the effective date by one year to December 15, 2017 for fiscal years, and interim periods within those years, beginning after that date and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and continue to evaluate the impact of the amended guidance on our consolidated financial position, results of operations and related disclosures. |
Note 5 - Accumulated Other Comp
Note 5 - Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 5. Accumulated Other Comprehensive Loss Our accumulated other comprehensive loss, reported as a component of stockholders’ equity, increased from $22.1 million at December 31, 2014 to $50.7 million at December 31, 2015, primarily as a result of foreign currency exchange rate differences. Our accumulated other comprehensive loss is primarily related to fluctuations in the foreign currency exchange rates compared to the U.S. dollar which are used to remeasure the foreign operations of our reportable segments (primarily in the United Kingdom, Brazil, and Canada). The average exchange rates of the British pound, Brazilian real, and Canadian dollar compared to the U.S. dollar weakened by 5%, 31%, and 16%, respectively, in 2015 compared to 2014. |
Note 6 - Acquisitions and Suppl
Note 6 - Acquisitions and Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 6. Acquisitions and Supplemental Cash Flow Information Components of cash used for acquisitions as reflected in the consolidated statements of cash flows for the years ended December 31, 2015 and 2013 are summarized as follows (in thousands): 2015 2013 Fair value of assets acquired including intangibles and goodwill $ 39,505 $ 66,825 Liabilities/equity assumed (6,026 ) (19,986 ) Noncash consideration -- (2,568 ) Cash acquired (52 ) (11 ) Cash used in acquisitions of businesses $ 33,427 $ 44,260 2015 On January 2, 2015, we acquired all of the equity of Montgomery Machine Company, Inc. (MMC). Headquartered in Houston, Texas, MMC combines machining and proprietary cladding technology and services to manufacture high-specification components for the offshore capital equipment industry. We believe that the acquisition of MMC will strengthen our position in our offshore products segment as a supplier of subsea components with enhanced capabilities, proprietary technology and logistical advantages. Total transaction consideration was $33.4 million, net of cash acquired. The operations of MMC have been included in our offshore products segment since the acquisition date. 2013 On December 2, 2013, we acquired all of the operating assets of Quality Connector Systems, LLC (QCS) for total cash consideration of $42.3 million. Headquartered in Houston, Texas, QCS designs, manufactures and markets a portfolio of proprietary deep and shallow water pipeline connectors for subsea pipeline construction, repair and expansion projects. The operations of QCS have been included in our offshore products segment since the acquisition date. The Company funded all of its acquisitions with cash on hand and/or amounts available under our credit facilities. See Note 10 – Long-term Debt for additional information on our senior secured credit facilities. Supplemental Cash Flow Information Cash paid during the years ended December 31, 2015, 2014 and 2013 for interest and income taxes was as follows (in thousands): 2015 2014 2013 Interest (net of amounts capitalized) $ 5,629 $ 40,375 $ 56,663 Income taxes, net of refunds $ 18,780 $ 102,160 $ 90,927 Non-cash financing activities: Borrowings and contingent consideration for business and asset acquisition and related intangibles $ -- $ -- $ 1,175 |
Note 7 - Discontinued Operation
Note 7 - Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 7. Discontinued Operations On May 30, 2014, we completed the Spin-Off of our accommodations business, Civeo Corporation, to the Company’s stockholders. On May 30, 2014, the stockholders of record of Oil States common stock as of the close of business on May 21, 2014 (the Record Date) received two shares of Civeo common stock for each share of Oil States common stock held as of the Record Date. Following the Spin-Off, Oil States ceased to own any shares of Civeo common stock. The following table provides the components of net income from discontinued operations, net of tax for each operating segment (in thousands). The $128.4 million ($84.0 million after-tax) net gain related to the disposal of Sooner in 2013 was excluded. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2015 2014 2013 Revenues Accommodations $ -- $ 404,207 $ 1,041,104 Tubular services $ -- $ -- $ 1,073,096 Income from Accommodations discontinued operations: Income from discontinued operations before income taxes $ 327 $ 62,504 $ 230,778 Income tax expense (118 ) (11,004 ) (44,925 ) Net income from discontinued operations, net of tax $ 209 $ 51,500 $ 185,853 Income from Tubular services discontinued operations: Income from discontinued operations before income taxes $ 27 $ 321 $ 40,964 Income tax expense (10 ) (45 ) (18,643 ) Net income from discontinued operations, net of tax $ 17 $ 276 $ 22,321 |
Note 8 - Earnings Per Share (EP
Note 8 - Earnings Per Share (EPS) | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 8. Earnings Per Share (EPS) The numerator (income) and denominator (shares) used for the computation of basic and diluted earnings per share from continuing operations were as follows (in thousands): 2015 2014 2013 Income Shares Income Shares Income Shares Basic: Net income attributable to Oil States International, Inc. $ 28,597 $ 179,003 $ 421,258 Less: Undistributed net income allocable to participating securities (597 ) (2,948 ) (4,573 ) Undistributed net income applicable to common stockholders 28,000 176,055 416,685 Less: Income from discontinued operations, net of tax (226 ) (51,776 ) (292,217 ) Add: Undistributed net income from discontinued operations allocable to participating securities 5 853 3,172 Income from continuing operations applicable to Oil States International, Inc. common stockholders – Basic $ 27,779 50,269 $ 125,132 52,862 $ 127,640 54,969 Diluted: Income from continuing operations applicable to Oil States International, Inc. common stockholders - Basic $ 27,779 50,269 $ 125,132 52,862 $ 127,640 54,969 Effect of dilutive securities: Undistributed net income reallocated to participating securities 1 -- 11 -- 9 -- Options on common stock -- 57 -- 274 -- 341 Restricted stock awards and other -- 9 -- 15 -- 17 Income from continuing operations applicable to Oil States International, Inc. common stockholders - Diluted 27,780 50,335 125,143 53,151 127,649 55,327 Income from discontinued operations, net of tax, applicable to Oil States International, Inc. common stockholders 221 50,923 289,045 Undistributed net income reallocated to participating securities -- 5 20 Net income attributable to Oil States International, Inc. common stockholders - Diluted $ 28,001 50,335 $ 176,071 53,151 $ 416,714 55,327 Our calculation of diluted earnings per share for the years ended December 31, 2015, 2014 and 2013 excluded 747,839 shares, 224,739 shares and 263,838 shares, respectively, issuable pursuant to outstanding stock options and restricted stock awards, due to their antidilutive effect. |
Note 9 - Goodwill and Other Int
Note 9 - Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 9. Goodwill and Other Intangible Assets The Company tests for impairment using a fair value approach, at the "reporting unit" level. A reporting unit is the operating segment, or a business one level below that operating segment (the "component" level) if discrete financial information is prepared and regularly reviewed by management at the component level. The Company had two reporting units with goodwill as of December 31, 2015. Goodwill is allocated to each of the reporting units based on actual acquisitions made by the Company and its subsidiaries. The Company recognizes an impairment loss for any amount by which the carrying amount of a reporting unit's goodwill exceeds the reporting unit's IFV of goodwill. If our initial qualitative assessment of potential goodwill impairment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, the Company uses, as appropriate in the current circumstance, comparative market multiples, discounted cash flow calculations and acquisition comparables to establish the reporting unit's fair value (a Level 3 fair value measurement). The Company amortizes the cost of other intangibles over their estimated useful lives unless such lives are deemed indefinite. Amortizable intangible assets are reviewed for impairment if there are indicators of impairment based on undiscounted cash flows and, if impaired, written down to fair value based on either discounted cash flows or appraised values. As of December 31, 2015, no provision for impairment of other intangible assets was required. Changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as follows (in thousands): Well Site Services Completion Services Drilling Services Subtotal Accommodations Offshore Products Total Balance as of December 31, 2013 Goodwill $ 201,911 $ 22,767 $ 224,678 $ 261,056 $ 145,211 $ 630,945 Accumulated Impairment Losses (94,528 ) (22,767 ) (117,295 ) -- -- (117,295 ) 107,383 -- 107,383 261,056 145,211 513,650 Spin-Off of Civeo -- -- -- (268,463 ) -- (268,463 ) Goodwill acquired and purchase price adjustments 193 -- 193 -- 882 1,075 Foreign currency translation and other changes (1,137 ) -- (1,137 ) 7,407 (331 ) 5,939 106,439 -- 106,439 -- 145,762 252,201 Balance as of December 31, 2014 Goodwill 200,967 22,767 223,734 -- 145,762 369,496 Accumulated Impairment Losses (94,528 ) (22,767 ) (117,295 ) -- -- (117,295 ) 106,439 -- 106,439 -- 145,762 252,201 Goodwill acquired and purchase price adjustments -- -- -- -- 13,943 13,943 Foreign currency translation and other changes (2,064 ) -- (2,064 ) -- (293 ) (2,357 ) 104,375 -- 104,375 -- 159,412 263,787 Balance as of December 31, 2015 Goodwill 198,903 22,767 221,670 -- 159,412 381,082 Accumulated Impairment Losses (94,528 ) (22,767 ) (117,295 ) -- -- (117,295 ) $ 104,375 $ -- $ 104,375 $ -- $ 159,412 $ 263,787 The following table presents the total amount of intangibles assigned and the total accumulated amortization for major intangible asset classes as of December 31, 2015 and 2014 (in thousands): As of December 31, 2015 2014 Other Intangible Assets Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable intangible assets: Customer relationships $ 44,557 $ 15,790 $ 37,803 $ 12,399 Contracts/Agreements/Backlog 1,064 355 -- -- Patents 20,024 6,521 18,731 5,250 Technology 10,111 3,052 10,110 2,041 Noncompete agreements 4,358 1,565 3,968 915 Trademarks and other 8,237 1,683 5,914 2,037 Total other intangible assets $ 88,351 $ 28,966 $ 76,526 $ 22,642 The weighted average remaining amortization period for all intangible assets, other than goodwill, was 8.7 years as of December 31, 2015 and 9.3 years as of December 31, 2014. Total amortization expense is expected to be $7.9 million in 2016, $7.8 million in 2017, $7.1 million in 2018, $6.9 million in 2019 and $6.6 million in 2020. Amortization expense was $7.8 million, $7.0 million and $5.1 million in the years ended December 31, 2015, 2014 and 2013, respectively. |
Note 10 - Long-term Debt
Note 10 - Long-term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 10. Long-term Debt As of December 31, 2015 and 2014, long-term debt consisted of the following (in thousands): 2015 2014 Revolving credit facility, which matures May 28, 2019, with available commitments up to $600 million; secured by substantially all of our U.S. assets; commitment fee on unused portion of 0.375 % per annum in 2015 and 2014; variable interest rate payable monthly based on LIBOR plus applicable percentage; weighted average interest rate was 1.9% for 2015 and 1.8% for 2014 $ 122,858 $ 140,684 Capital lease obligations and other debt 6,229 6,681 Total debt 129,087 147,365 Less: Current portion 533 530 Total long-term debt and capitalized leases $ 128,554 $ 146,835 Scheduled maturities of combined long-term debt as of December 31, 2015, are as follows (in thousands): 2016 $ 533 2017 538 2018 449 2019 123,201 2020 359 Thereafter 4,007 $ 129,087 The Company's capital leases consist primarily of plant facilities and equipment. The value of capitalized leases and the related accumulated depreciation totaled $1.5 million and $0.9 million, respectively, at December 31, 2015. The value of capitalized leases and the related accumulated depreciation totaled $1.5 million and $0.7 million, respectively, at December 31, 2014. OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Credit Facility In connection with the Spin-Off, the Company terminated its then existing bank credit facility on May 28, 2014 and entered into a new $600 million senior secured revolving credit facility. The Company has an option to increase the maximum borrowings under its revolving credit facility to $750 million subject to additional lender commitments prior to its maturity on May 28, 2019. The credit facility is governed by a Credit Agreement dated as of May 28, 2014 (Credit Agreement) by and among the Company, the Lenders party thereto, Wells Fargo Bank, N.A., as administrative agent, the Swing Line Lender and an Issuing Bank, and Royal Bank of Canada, as Syndication agent, and Compass Bank, as Documentation agent. Amounts outstanding under the revolving credit facility bear interest at LIBOR plus a margin of 1.50% to 2.50%, or at a base rate plus a margin of 0.50% to 1.50%, in each case based on a ratio of the Company’s total leverage to EBITDA (as defined in the Credit Agreement). From May 28, 2014 through December 31, 2014, our applicable margin over LIBOR was 1.50%. We must also pay a quarterly commitment fee, based on our leverage ratio, on the unused commitments under the Credit Agreement. The unused commitment fee was 0.375% for the period May 28, 2014 through December 31, 2014. The Credit Agreement contains customary financial covenants and restrictions. Specifically, we must maintain an interest coverage ratio, defined as the ratio of consolidated EBITDA, to consolidated interest expense of at least 3.0 to 1.0 and our maximum leverage ratio, defined as the ratio of total debt to consolidated EBITDA of no greater than 3.25 to 1.0. Each of the factors considered in the calculations of these ratios are defined in the Credit Agreement. EBITDA and consolidated interest, exclude goodwill impairments, debt discount amortization and other non-cash charges. As of December 31, 2015, we were in compliance with our debt covenants. Borrowings under the Credit Agreement are secured by a pledge of substantially all of our assets and the assets of our domestic subsidiaries. Our obligations under the Credit Agreement are guaranteed by our significant domestic subsidiaries. The credit facility also contains negative covenants that limit the Company's ability to borrow additional funds, encumber assets, pay dividends, sell assets and enter into other significant transactions. Under the Company's credit facilities, the occurrence of specified change of control events involving our company would constitute an event of default that would permit the banks to, among other things, accelerate the maturity of the facilities and cause them to become immediately due and payable in full. As of December 31, 2015, we had $122.9 million outstanding under the Credit Agreement and an additional $37.7 million of outstanding letters of credit, leaving $439.4 million available to be drawn under the credit facility. However, the total amount available to be drawn under our revolving credit facility is expected to be significantly reduced as our trailing twelve months EBITDA moves lower into 2016 given that, in accordance with the Credit Agreement, total debt cannot exceed 3.25 times our trailing twelve months EBITDA. As of December 31, 2015, the Company had $36.0 million of cash and cash equivalents . Loss on Extinguishment of Debt During 2014, we recognized losses on the extinguishment of debt totaling $100.4 million primarily due to the repurchase of our remaining 6 1/2% Notes and 5 1/8% Notes completed in connection with the Spin-Off in the second quarter, which resulted in a loss of $96.7 million consisting of the premium paid over book value for the Notes and the write-off of unamortized deferred financing costs associated with such notes. The premium paid to repurchase the 6 1/2% and 5 1/8% Notes was due to their fair market value exceeding their book value at the date tendered or redeemed. In addition, as a result of the refinancing of our existing credit facility in the second quarter 2014, we recognized a loss on extinguishment of $3.7 million (net of $1.8 million allocated to discontinued operations for the Canadian portion of the facility) from the write-off of unamortized deferred financing costs. During 2013, we recognized a loss on the extinguishment of debt totaling $6.2 million from the repurchase of a portion of our 5 1/8% Notes in the fourth quarter of 2013, resulting in a loss of $4.1 million, including the write-off of $0.4 million of unamortized deferred financing costs. Additionally, we wrote off $2.1 million of unamortized deferred financing costs associated with the full repayment of our U.S. term loan. |
Note 11 - Stock Repurchase Prog
Note 11 - Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Stock Repurchase Program [Text Block] | 11. Stock Repurchase Program On September 6, 2013, the Company announced an increase in its Board-authorized Company stock repurchase program from $200 million to $500 million providing for the repurchase of the Company’s common stock, par value $.01 per share. On July 29, 2015, the Company’s Board of Directors approved the termination of our existing share repurchase program and authorized a new program providing for the repurchase of up to $150 million of the Company’s common stock, par value $.01 per share. The new program is set to expire on July 29, 2016. During 2015, a total of $105.9 million of our stock (2,674,218 shares) were repurchased under these programs compared to $218.9 million (2,843,142 shares) during 2014. As of December 31, 2015, a total of $456.0 million of our stock (6,902,748 shares, or approximately 13% of the outstanding shares of our common stock at the initiation of our initial share repurchase authorization in August 2012) had been repurchased under these programs. The amount remaining under our current share repurchase authorization as of December 31, 2015 was $136.8 million. Subject to applicable securities laws, such purchases will be at such times and in such amounts as the Company deems appropriate. |
Note 12 - Retirement Plans
Note 12 - Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 12. Retirement Plans The Company sponsors defined contribution plans. Participation in these plans is available to substantially all employees. The Company recognized expense of $8.0 million, $13.0 million and $9.7 million, respectively, related to matching contributions under its various defined contribution plans during the years ended December 31, 2015, 2014 and 2013, respectively. |
Note 13 - Income Taxes
Note 13 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 13. Income Taxes Consolidated income (loss) from continuing operations before income taxes for the years ended December 31, 2015, 2014 and 2013 consisted of the following (in thousands): 2015 2014 2013 US operations $ (21,598 ) $ 128,639 $ 143,913 Foreign operations 72,166 67,705 60,214 Total $ 50,568 $ 196,344 $ 204,127 The components of the income tax provision (benefit) for the years ended December 31, 2015, 2014 and 2013 consisted of the following (in thousands): 2015 2014 2013 Current: Federal $ 7,221 $ 56,317 $ 65,249 State 1,868 5,426 2,881 Foreign 16,281 19,344 16,697 25,370 81,087 84,827 Deferred: Federal (5,656 ) (8,620 ) (11,468 ) State (496 ) 26 263 Foreign 2,979 (3,376 ) 1,446 (3,173 ) (11,970 ) (9,759 ) Total Provision $ 22,197 $ 69,117 $ 75,068 A reconciliation of the federal statutory tax rate to the effective tax rate for the years ended December 31, 2015, 2014 and 2013 is as follows: 2015 2014 2013 Federal statutory tax rate 35.0 % 35.0 % 35.0 % Effect of foreign income tax, net (11.1 ) (2.8 ) (0.4 ) Valuation allowance 8.1 -- -- Nondeductible compensation 7.6 0.3 0.2 Other nondeductible expenses 4.5 1.4 2.2 Domestic manufacturing deduction (2.6 ) (1.9 ) (2.1 ) State tax expense, net of federal benefits 1.3 2.8 1.5 Other, net 1.1 0.4 0.4 Effective tax rate 43.9 % 35.2 % 36.8 % The significant items giving rise to the deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows (in thousands): 2015 2014 Deferred tax assets: Foreign tax credit carryover $ 24,852 $ 27,771 Employee benefits 18,252 22,036 Allowance for inventory reserves 7,394 7,102 Net operating loss carryforward 4,580 2,700 Other reserves 3,580 5,659 Allowance for doubtful accounts 1,657 1,526 Other 635 1,365 Gross deferred tax asset 60,950 68,159 Valuation allowance (3,970 ) -- Deferred tax asset 56,980 68,159 Deferred tax liabilities: Tax over book depreciation (77,632 ) (93,010 ) Intangible assets (17,804 ) (9,700 ) Accrued liabilities (1,513 ) (2,298 ) Deferred revenue (113 ) (1,171 ) Other (377 ) (458 ) Deferred tax liability (97,439 ) (106,637 ) Net deferred tax liability (40,459 ) $ (38,478 ) Our primary deferred tax assets at December 31, 2015, were related to foreign tax credit carryforwards, employee benefit costs for our Equity Participation Plan and allowance for inventory obsolescence. The foreign tax credits will expire in varying amounts from 2021 to 2024. At December 31, 2015 the Company had state net operating loss (NOL) carryforwards of $15.8 million and foreign NOL carryforwards of $0.7 million, $2.6 million and $7.3 million for India, Thailand, and Brazil, respectively. The NOL carryforwards for states will expire between 2021and 2035. The NOL carryforwards for Thailand and India will expire after 2019 and 2022, respectively. The NOL carryforwards for Brazil can be carried forward indefinitely. Appropriate U.S. and foreign income taxes have been provided for earnings of foreign subsidiary companies that are expected to be remitted in the future. The cumulative amount of undistributed earnings of foreign subsidiaries that the Company intends to indefinitely reinvest, and upon which foreign taxes have been accrued or paid but no deferred U.S. income taxes have been provided is $248.7 million at December 31, 2015, the majority of which has been generated in the U.K. (before the Company’s representation to permanently reinvest earnings in the U.K. was removed) and Singapore. If distribution of these earnings in the form of dividends or otherwise were to occur, the Company may be subject to U.S. income taxes (subject to adjustment for foreign tax credits) and foreign withholding taxes. It is not practical, however, to estimate the amount of taxes that may be payable on the eventual remittance of these earnings after consideration of available foreign tax credits. During 2015, we repatriated $35.2 million from our foreign subsidiaries which was used to reduce outstanding borrowings under our credit facility. The Company files tax returns in the jurisdictions in which they are required. All of these returns are subject to examination or audit and possible adjustment as a result of assessments by taxing authorities. The Company believes that it has recorded sufficient tax liabilities and does not expect the resolution of any examination or audit of its tax returns would have a material adverse effect on its operating results, financial condition or liquidity. Tax years subsequent to 2013 remain open to U.S. federal tax audit. Our foreign subsidiaries' federal tax returns subsequent to 2010 are subject to audit by the various foreign tax authorities. We account for uncertain tax positions using a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The total amount of unrecognized tax benefits as of December 31, 2015 and December 31, 2014 was nil. The Company accrues interest and penalties related to unrecognized tax benefits as a component of the Company's provision for income taxes. As of December 31, 2015 and 2014, the Company had no accrued interest expense or penalties. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2015 2014 2013 Balance as of January 1 st $ -- $ 836 $ 728 Additions for tax positions of prior years -- -- 108 Distribution to Civeo -- (836 ) -- Balance as of December 31 st $ -- $ -- $ 836 |
Note 14 - Commitments and Conti
Note 14 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 14. Commitments and Contingencies The Company leases a portion of its equipment, office space, computer equipment, automobiles and trucks under leases which expire at various dates. Minimum future operating lease obligations in effect at December 31, 2015, were as follows (in thousands): Operating Leases 2016 $ 8,271 2017 4,784 2018 3,422 2019 2,654 2020 1,298 Thereafter 5,738 Total $ 26,167 Rental expense under operating leases was $11.3 million, $11.5 million and $12.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. In the ordinary course of conducting our business, we become involved in litigation and other claims from private party actions, as well as judicial and administrative proceedings involving governmental authorities at the federal, state and local levels. During 2014 and early 2015, a number of lawsuits were filed by current and former employees, in Federal Court against the Company and or one of its subsidiaries, alleging violations of the Fair Labor Standards Act (“FLSA”). The plaintiffs seek damages and penalties for the Company’s alleged failure to: properly classify its field service employees as “non-exempt” under the FLSA; and pay them on an hourly basis (including overtime). The plaintiffs are seeking recovery on their own behalf as well as a class of similarly situated employees. Settlement of the class action against the Company was approved and a judgment was entered November 19, 2015. The Company has settled the vast majority of these claims and is evaluating potential settlements for the remaining individual plaintiffs’ claims which are not expected to be significant. We are a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning our commercial operations, products, employees and other matters, including occasional claims by individuals alleging exposure to hazardous materials as a result of our products or operations. Some of these claims relate to matters occurring prior to our acquisition of businesses, and some relate to businesses we have sold. In certain cases, we are entitled to indemnification from the sellers of businesses, and in other cases, we have indemnified the buyers of businesses from us. Although we can give no assurance about the outcome of pending legal and administrative proceedings and the effect such outcomes may have on us, we believe that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by indemnity or insurance, will not have a material adverse effect on our consolidated financial position, results of operations or liquidity. |
Note 15 - Stock-based and Defer
Note 15 - Stock-based and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 15. Stock-Based and Deferred Compensation Plans Current accounting standards require companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The fair value is estimated using option-pricing models. The resulting cost is recognized over the period during which an employee is required to provide service in exchange for the awards, usually the vesting period. Stock-based compensation pre-tax expense from continuing operations recognized in the years ended December 31, 2015, 2014 and 2013 totaled $21.8 million, $25.6 million and $22.5 million, respectively. Stock Options The fair value of each option grant is estimated on the date of grant using a Black Scholes Merton option pricing model that uses the assumptions noted in the following table. The risk-free interest rate is based on the U.S. Treasury yield curve in effect for the expected term of the option at the time of grant. The dividend yield on our common stock is assumed to be zero since we do not pay dividends and have no current plans to do so in the future. The expected market price volatility of our common stock is based on an estimate made by us that considers the historical and implied volatility of our common stock as well as a peer group of companies over a time period equal to the expected term of the option. The expected life of the options awarded in 2015, 2014 and 2013 was based on a formula considering the vesting period, term of the options awarded and past experience. 2015 2014 2013 Risk-free weighted interest rate 1.2 % 1.3 % 0.6 % Expected life (in years) 4.3 4.1 4.1 Expected volatility 37 % 38 % 44 % The following table presents the changes in stock options outstanding and related information for the year ended December 31, 2015: Options Weighted Average Exercise Price Per Share Weighted Average Contractual Life (Years) Aggregate Intrinsic Value (thousands) Outstanding Options at December 31, 2014 1,007,686 $ 38.97 5.4 $ 11,877 Granted 119,370 42.29 Exercised (336,251 ) 37.01 Forfeited/Expired (20,624 ) 50.96 Outstanding Options at December 31, 2015 770,181 48.49 7.0 $ 88 Exercisable Options at December 31, 2015 370,268 $ 47.18 5.9 $ 88 The weighted average fair values of options granted during 2015, 2014 and 2013 were $13.32, $32.03, and $28.31 per share, respectively. All options awarded in 2015 had a term of ten years and were granted with exercise prices at the grant date closing market price. The total intrinsic value of options exercised during 2015, 2014 and 2013 were $12.4 million, $28.1 million and $43.6 million, respectively. Cash received by the Company from option exercises during 2015, 2014 and 2013 totaled $5.9 million, $10.5 million and $16.4 million, respectively. The tax benefit realized for the tax deduction from stock options exercised during 2015, 2014 and 2013 totaled $6.5 million, $6.9 million and $7.4 million, respectively. The following table summarizes information for outstanding stock options outstanding at December 31, 2015: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding as of 12/31/2015 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable as of 12/31/2015 Weighted Average Exercise Price $21.96 - $46.78 422,092 6.89 $ 43.85 204,584 $ 43.36 $49.33 - $49.33 167,206 6.00 $ 49.33 119,464 $ 49.33 $58.54 - $58.54 180,883 8.07 $ 58.54 46,220 $ 58.54 $21.96 - $58.54 770,181 6.97 $ 48.49 370,268 $ 47.18 Restricted Stock Awards The following table presents the changes of restricted stock awards and related information for 2015: Number of Awards Weighted Average Grant Date Fair Value Per Share Nonvested shares at January 1, 2015 1,106,670 $ 39.80 Granted 559,207 42.39 Vested (446,506 ) 42.44 Forfeited (47,487 ) 46.77 Nonvested shares at December 31, 2015 1,171,884 $ 43.08 During 2015, we granted restricted stock awards totaling 559,207 shares valued at a total of $23.7 million. Of the restricted stock awards granted in 2015, 461,658 awards vest in four equal annual installments beginning in February 2016, 75,900 awards are performance-based awards that may (but currently appear unlikely to) vest in February 2018 in an amount that will depend on the Company’s achievement of specified performance objectives, 20,062 awards are for director compensation and vest 100% in May 2016, and 1,587 awards (also for director compensation) vested 100% immediately. The 2015 performance-based awards (75,900 shares at target performance level) with three-year cliff vesting have a performance criteria that will be measured based upon the Company’s achievement levels of average after-tax annual return on invested capital for the three year period commencing January 1, 2015 and ending December 31, 2017. The weighted average grant date fair value per share for restricted stock awards granted in 2015, 2014 and 2013 was $42.39, $93.09 and $82.05, respectively. The total fair value of restricted stock awards vested in 2015, 2014 and 2013 was $18.9 million, $27.2 million and $18.7 million, respectively. As of December 31, 2015, there was $29 .3 million of total compensation costs related to nonvested restricted stock awards not yet recognized, which is expected to be recognized over a weighted average period of 2 years. At December 31, 2015, a total of 1,837,279 shares were available for future grant under the Equity Participation Plan. Deferred Compensation Plan The Company maintains a nonqualified deferred compensation plan (the Deferred Compensation Plan) that permits eligible employees and directors to elect to defer the receipt of all or a portion of their directors’ fees and/or salary and annual bonuses. Employee contributions to the Deferred Compensation Plan are matched by the Company at the same percentage as if the employee was a participant in the Company's 401(k) Retirement Plan and was not subject to the IRS limitations on match-eligible compensation. The Deferred Compensation Plan also permits the Company to make discretionary contributions to any employee's account, although none have been made to date. Director's contributions are not matched by the Company. Since inception of the plan, this discretionary contribution provision has been limited to a matching of the participants' contributions on a basis equivalent to matching permitted under the Company's 401(k) Retirement Savings Plan. The vesting of contributions to the participants’ accounts is also equivalent to the vesting requirements of the Company's 401(k) Retirement Savings Plan. The Deferred Compensation Plan does not have dollar limits on tax-deferred contributions. The assets of the Deferred Compensation Plan are held in a Rabbi Trust (Trust) and, therefore, are available to satisfy the claims of the Company's creditors in the event of bankruptcy or insolvency of the Company. Participants have the ability to direct the Plan Administrator to invest the assets in their individual accounts, including any discretionary contributions by the Company, in ten pre-approved mutual funds held by the Trust which cover a variety of securities and mutual funds. In addition, participants currently have the right to request that the Plan Administrator re-allocate the portfolio of investments (i.e. cash or mutual funds) in the participants' individual accounts within the Trust. Company contributions are in the form of cash. Distributions from the plan are generally made upon the participants' termination as a director and/or employee, as applicable, of the Company. Participants receive payments from the Deferred Compensation Plan in cash. At December 31, 2015, Trust assets totaled $16.9 million, the majority of which is classified as “Other noncurrent assets” in the Company’s Consolidated Balance Sheet. The fair value of the investments was based on quoted market prices in active markets (a Level 1 fair value measurement). Amounts payable to the plan participants at December 31, 2015, including the fair value of the shares of the Company's common stock that are reflected as treasury stock, was $17.0 million and is classified as "Other noncurrent liabilities" in the consolidated balance sheet. The Company accounts for the Deferred Compensation Plan in accordance with current accounting standards regarding the accounting for deferred compensation arrangements where amounts earned are held in a Rabbi Trust and invested. In accordance with current accounting standards, all fair value fluctuations of the Trust assets have been reflected in the consolidated statements of income. Increases or decreases in the value of the plan assets, exclusive of the shares of common stock of the Company, have been included as compensation adjustments in the respective statements of income. Increases or decreases in the fair value of the deferred compensation liability, including the shares of common stock of the Company held by the Trust, while recorded as treasury stock, are also included as compensation adjustments in the consolidated statements of income. In response to the changes in total fair value of the Company's common stock held by the Trust, the Company recorded net compensation expense adjustments to the liability of $(0.2) million in 2015, less than $0.1 million in 2014 and $0.5 million in 2013. |
Note 16 - Segment and Related I
Note 16 - Segment and Related Information | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 16. Segment and Related Information In accordance with current accounting standards regarding disclosures about segments of an enterprise and related information, the Company has identified the following reportable segments from continuing operations: well site services and offshore products. The Company's reportable segments represent strategic business units that offer different products and services. They are managed separately because each business requires different technologies and marketing strategies. Most of the businesses were initially acquired as a unit, and the management at the time of the acquisition was retained. Subsequent acquisitions have been direct extensions to our business segments. Separate business lines within the well site services segment have been disclosed to provide additional detail for that segment. Financial information by business segment for each of the three years ended December 31, 2015, 2014 and 2013, is summarized in the following table in thousands. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Revenues from unaffiliated customers Depreciation and amortization Operating income (loss) Equity in income (losses) of unconsolidated affiliates Capital expenditures Total assets 2015 Well site services - Completion services $ 308,077 $ 75,612 $ (26,280 ) $ -- $ 55,336 $ 525,012 Drilling services 67,782 26,889 (17,866 ) -- 12,097 103,156 Total well site services 375,859 102,501 (44,146 ) -- 67,433 628,168 Offshore products 724,118 27,416 146,389 526 46,615 930,871 Corporate and eliminations -- 1,340 (47,237 ) -- 690 40,099 Total $ 1,099,977 $ 131,257 $ 55,006 $ 526 $ 114,738 $ 1,599,138 2014 Well site services - Completion services $ 656,862 $ 74,176 $ 148,787 $ -- $ 107,580 $ 641,725 Drilling services 201,143 27,081 29,574 -- 29,359 135,676 Total well site services 858,005 101,257 178,361 -- 136,939 777,401 Offshore products 961,604 22,496 200,098 378 60,263 983,542 Corporate and eliminations -- 1,023 (68,204 ) -- 2,054 48,669 Total $ 1,819,609 $ 124,776 $ 310,255 $ 378 $ 199,256 $ 1,809,612 2013 Well site services - Completion services $ 576,040 $ 65,644 $ 127,280 $ -- $ 95,236 $ 589,626 Drilling services 170,467 24,908 22,363 -- 25,535 139,973 Total well site services 746,507 90,552 149,643 -- 120,771 729,599 Offshore products 882,627 17,751 156,918 (355 ) 42,694 940,825 Corporate and eliminations -- 928 (59,284 ) -- 1,430 338,435 Total $ 1,629,134 $ 109,231 $ 247,277 $ (355 ) $ 164,895 $ 2,008,859 Financial information by geographic segment for each of the three years ended December 31, 2015, 2014 and 2013, is summarized below in thousands. Revenues in the United States include export sales. Revenues are attributable to countries based on the location of the entity selling the products or performing the services. Total assets are attributable to countries based on the physical location of the entity and its operating assets and do not include intercompany balances. United States United Kingdom Singapore Other Non U.S. Total 2015 Revenues from unaffiliated customers $ 797,762 $ 170,536 $ 66,305 $ 65,374 $ 1,099,977 Long-lived assets 820,464 74,082 26,462 66,619 987,627 2014 Revenues from unaffiliated customers $ 1,468,202 $ 188,753 $ 83,493 $ 79,161 $ 1,819,609 Long-lived assets 826,648 54,868 27,438 71,265 980,219 2013 Revenues from unaffiliated customers $ 1,261,186 $ 171,439 $ 106,937 $ 89,572 $ 1,629,134 Long-lived assets 803,918 33,107 25,511 66,239 928,775 No customers accounted for more than 10% of the Company's revenues in the years ended December 31, 2015, 2014 and 2013. Equity in net income of unconsolidated affiliates is not included in operating income. |
Note 17 - Valuation Allowances
Note 17 - Valuation Allowances | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | 17. Valuation Allowances Activity in the valuation accounts was as follows (in thousands): Balance at Beginning of Period Charged to Costs and Expenses Deductions (net of recoveries) Translation and Other, Net Balance at End of Period Year Ended December 31, 2015: Allowance for doubtful accounts receivable $ 7,125 $ 195 $ (187 ) $ (245 ) $ 6,888 Allowance for excess, damaged or obsolete inventory 9,876 5,487 (2,395 ) (70 ) 12,898 Valuation allowance on deferred tax assets -- 3,970 -- -- 3,970 Year Ended December 31, 2014: Allowance for doubtful accounts receivable $ 3,878 $ 3,364 $ 111 $ (228 ) $ 7,125 Allowance for excess, damaged or obsolete inventory 9,540 2,147 (1,772 ) (39 ) 9,876 Year Ended December 31, 2013: Allowance for doubtful accounts receivable $ 3,804 $ 505 $ (419 ) $ (12 ) $ 3,878 Allowance for excess, damaged or obsolete inventory 8,603 2,076 (1,159 ) 20 9,540 |
Note 18 - Quarterly Financial I
Note 18 - Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 18. Quarterly Financial Information (Unaudited) The following table summarizes quarterly financial information for 2015 and 2014 (in thousands, except per share amounts): First Quarter (2) Second Quarter (3) Third Quarter (4) Fourth Quarter (5) 2015 Revenues $ 337,358 $ 269,258 $ 258,886 $ 234,474 Gross profit (1) 99,636 74,594 70,296 69,752 Net income attributable to: Continuing operations 19,402 6,148 1,706 1,115 Discontinued operations 166 35 23 2 Basic earnings per share: Continuing operations 0.38 0.12 0.03 0.02 Discontinued operations -- -- -- -- Diluted earnings per share: Continuing operations 0.38 0.12 0.03 0.02 Discontinued operations -- -- -- -- 2014 Revenues $ 405,237 $ 459,607 $ 471,032 $ 483,733 Gross profit (1) 132,866 151,699 164,535 164,626 Net income attributable to: Continuing operations 34,709 (24,122 ) 58,387 58,253 Discontinued operations 36,795 16,242 (1,467 ) 206 Basic earnings per share: Continuing operations 0.65 (0.45 ) 1.08 1.10 Discontinued operations 0.68 0.30 (0.03 ) -- Diluted earnings per share: Continuing operations 0.64 (0.45 ) 1.07 1.09 Discontinued operations 0.68 0.30 (0.02 ) -- (1) Represents "revenues" less "product costs" and "service and other costs" included in the Company's consolidated statements of income. (2) Our first quarter 2015 net income attributable to continuing operations included $2.1 million (pre-tax) of severance and other downsizing initiatives, and a higher effective tax rate driven primarily by a $2.3 million deferred tax adjustment for certain prior period non-deductible items. In the first quarter of 2014, we incurred $1.4 million (pre-tax) of third-party transaction costs in our continuing operations, primarily related to the Spin-Off. (3) In the second quarter of 2015, we recognized $1.7 million (pre-tax) of severance and other downsizing charges. In the second quarter of 2014, we recognized in our continuing operations a pre-tax loss on extinguishment of debt of $100.4 million and $9.6 million (pre-tax) representing transaction costs primarily related to the Spin-Off. (4) Our third quarter 2015 net income attributable to continuing operations included a higher effective tax rate driven primarily by a $3.2 million valuation allowance recorded against the Company’s deferred tax assets related to loss carryforwards and $0.7 million (pre-tax) of severance related costs. (5) In the fourth quarter of 2015, we recognized a $3.4 million leasehold restoration provision for one of our offshore products U.K. facilities, $1.9 million (pre-tax) of severance and other downsizing charges, and a higher effective tax rate driven primarily by $1.2 million in tax adjustments primarily related to non-deductible items and a $0.6 million valuation allowance recorded against the Company’s tax loss carryforwards in various foreign jurisdictions. Amounts are calculated independently for each of the quarters presented. Therefore, the sum of the quarterly amounts may not equal the total calculated for the year. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, investments, receivables, payables, bank debt and foreign currency forward contracts. The Company believes that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values. |
Inventory, Policy [Policy Text Block] | Inventories Inventories consist of oilfield products, manufactured equipment, spare parts for manufactured equipment, and work-in-process. Inventories also include raw materials, labor, subcontractor charges, manufacturing overhead and other supplies and are carried at the lower of cost or market. The cost of inventories is determined on an average cost or specific-identification method. A reserve for excess, damaged and/or obsolete inventory is maintained based on the age, turnover or condition of the inventory. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant, and Equipment Property, plant, and equipment are stated at cost or at estimated fair market value at acquisition date if acquired in a business combination, and depreciation is computed, for assets owned or recorded under capital lease, using the straight-line method, after allowing for salvage value where applicable, over the estimated useful lives of the assets. We use the component depreciation method for our drilling services assets. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the estimated useful life of the asset. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and betterments, which extend the useful lives of existing equipment, are capitalized and depreciated. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the statements of income. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price paid for acquired businesses over the allocated fair value of the related net assets after impairments, if applicable. We evaluate goodwill for impairment annually and when an event occurs or circumstances change to suggest that the carrying amount may not be recoverable. Our reporting units with goodwill at December 31, 2015 include offshore products and completion services. As part of the goodwill impairment analysis, current accounting standards give us the option to first perform a qualitative assessment to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. If it is determined that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, then performing the currently prescribed two-step impairment test is unnecessary. In developing a qualitative assessment to meet the “more-likely-than-not” threshold, each reporting unit with goodwill on its balance sheet is assessed separately and different relevant events and circumstances are evaluated for each unit. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the prescribed two-step impairment test is performed. Current accounting standards also give us the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. In 2015, we performed the two-step impairment test given stock value declines in the energy sector and the impact of low oil prices on our operating results. In performing the two-step impairment test, we estimate the implied fair value (IFV) of each reporting unit and compare the IFV to the carrying value of such unit. We utilize, depending on circumstances, a combination of trading multiples analyses, discounted projected cash flow calculations with estimated terminal values and acquisition comparables to estimate the IFV. We discount our projected cash flows using a long-term weighted average cost of capital for each reporting unit based on our estimate of investment returns that would be required by a market participant. As part of our process to assess goodwill for impairment, we also compare the total market capitalization of the Company to the sum of the IFV's of all of our reporting units to assess the reasonableness of the IFV's in the aggregate. If the carrying amount of a reporting unit exceeds its IFV, goodwill is considered to be potentially impaired and additional analysis in accordance with current accounting standards is conducted to determine the amount of impairment, if any. We conduct our annual impairment test as of December of each year. In 2013, 2014 and 2015, our goodwill impairment tests indicated that the fair value of each of our reporting units is greater than its carrying amount. For other intangible assets that we amortize, we review the useful life of the intangible asset and evaluate each reporting period whether events and circumstances warrant a revision to the remaining useful life. Based on the Company’s review, the carrying values of its other intangible assets are recoverable, and no impairment losses have been recorded for the periods presented. See Note 9 – Goodwill and Other Intangible Assets. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets The recoverability of the carrying values of long-lived assets at the asset group level, including finite-lived intangible assets, is assessed whenever, in management's judgment, events or changes in circumstances indicate that the carrying value of such asset groups may not be recoverable based on estimated future cash flows. If this assessment indicates that the carrying values will not be recoverable, as determined based on undiscounted cash flows over the remaining useful lives, an impairment loss is recognized. The impairment loss equals the excess of the carrying value over the fair value of the asset group. The fair value of the asset group is based on prices of similar assets, if available, or discounted cash flows. Based on the Company's review, the carrying values of its asset groups are recoverable, and no impairment losses have been recorded for the periods presented. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency and Other Comprehensive Income Gains and losses resulting from balance sheet translation of foreign operations where a foreign currency is the functional currency are included as a separate component of accumulated other comprehensive income within stockholders' equity representing substantially all of the balances within accumulated other comprehensive income. Remeasurements of intercompany loans denominated in a different currency than the functional currency of the entity that are of a long-term investment nature are recognized as other comprehensive income within stockholders’ equity. Gains and losses resulting from balance sheet remeasurements of assets and liabilities denominated in a different currency than the functional currency, other than intercompany loans that are of a long-term investment nature, are included in the consolidated statements of income as incurred. |
Foreign Exchange Risk [Policy Text Block] | Foreign Currency Exchange Rate Risk A portion of revenues, earnings and net investments in foreign affiliates are exposed to changes in foreign currency exchange rates. We seek to manage our foreign exchange risk in part through operational means, including managing expected local currency revenues in relation to local currency costs and local currency assets in relation to local currency liabilities. In order to reduce our exposure to fluctuations in currency exchange rates, we may enter into foreign exchange agreements with financial institutions. As of December 31, 2015 and 2014, we had outstanding foreign currency forward purchase contracts with notional amounts of $5.4 million related to expected cash flows denominated in Euros. As a result of these contracts, we recorded other comprehensive income of $0.3 million and $0.4 million, respectively, for the years ended December 31, 2015 and December 31, 2013. In addition, we recorded $0.4 million and $0.9 million, respectively, in foreign exchange losses related to amounts reclassified from accumulated other comprehensive loss into an expense on the income statement for the years ended December 31, 2015 and December 31, 2013. Foreign exchange gains and losses have totaled gains of $3.7 million in 2015 and losses of $0.4 million and $1.6 million in 2014 and 2013, respectively, and were included in “Other operating (income) expense.” |
Revenue and Cost Recognition [Policy Text Block] | Revenue and Cost Recognition Revenue from the sale of products, not accounted for utilizing the percentage-of-completion method, is recognized when delivery to and acceptance by the customer has occurred, when title and all significant risks of ownership have passed to the customer, collectability is probable and pricing is fixed and determinable. Our product sales terms do not include significant post-delivery obligations. For significant projects, revenues are recognized under the percentage-of-completion method, measured by the percentage of costs incurred to date compared to estimated total costs for each contract (cost-to-cost method). Billings on such contracts in excess of costs incurred and estimated profits are classified as deferred revenue. Costs incurred and estimated profits in excess of billings on percentage-of-completion contracts are recognized as unbilled receivables. Management believes this method is the most appropriate measure of progress on large contracts. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Factors that may affect future project costs and margins include weather, production efficiencies, availability and costs of labor, materials and subcomponents. These factors can significantly impact the accuracy of the Company’s estimates and materially impact the Company’s future reported earnings. In our well site services segment, revenues are recognized based on a periodic (usually daily) rate or when the services are rendered. Proceeds from customers for the cost of oilfield rental equipment that is damaged or lost downhole are reflected as gains or losses on the disposition of assets after considering the write-off of the remaining net book value of the equipment. For drilling services contracts based on footage drilled, we recognize revenues as footage is drilled. Revenues exclude taxes assessed based on revenues such as sales or value added taxes. Cost of goods sold includes all direct material and labor costs and those costs related to contract performance, such as indirect labor, supplies, tools and repairs. Selling, general, and administrative costs are charged to expense as incurred. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company follows the liability method of accounting for income taxes in accordance with current accounting standards regarding the accounting for income taxes. Under this method, deferred income taxes are recorded based upon the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws in effect at the time the underlying assets or liabilities are recovered or settled. When the Company's earnings from foreign subsidiaries are considered to be indefinitely reinvested, no provision for U.S. income taxes is made for these earnings. If any of the subsidiaries have a distribution of earnings in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. During 2015, we repatriated $35.2 million from our foreign subsidiaries which was used to reduce outstanding borrowings under our credit facility. The Company records a valuation allowance in the reporting period when management believes that it is more likely than not that any deferred tax asset created will not be realized. Management will continue to evaluate the appropriateness of the valuation allowance in the future based upon the operating results of the Company. The calculation of our tax liabilities involves accessing the uncertainties regarding the application of complex tax regulations. We recognize liabilities for tax expenses based on our estimate of whether, and the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We record an additional charge in our provision for taxes in the period in which we determine that the recorded tax liability is less than we expect the ultimate assessment to be. |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations The operating results of a component of our business that either has been disposed of or is classified as held for sale are presented as discontinued operations when both of the following conditions are met: (a) the operations and cash flows of the component have been or will be eliminated from our ongoing operations as a result of the disposal transaction and (b) we will not have any significant continuing involvement in the operations of the disposed component. We consider a component of our business to be one that comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of our business. |
Receivables and Concentration of Credit Risk Concentration of Suppliers [Policy Text Block] | Receivables and Concentration of Credit Risk Based on the nature of its customer base, the Company does not believe that it has any significant concentrations of credit risk other than its concentration in the worldwide oil and gas industry. The Company evaluates the credit-worthiness of its significant, new and existing customers' financial condition and, generally, the Company does not require significant collateral from its customers. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Allowances for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company's customers to make required payments. If a trade receivable is deemed to be uncollectible, such receivable is charged-off against the allowance for doubtful accounts. The Company considers the following factors when determining if collection of revenue is reasonably assured: customer credit-worthiness, past transaction history with the customer, customer solvency and changes in customer payment terms. If the Company has no previous experience with the customer, the Company typically obtains reports from various credit organizations to ensure that the customer has a history of paying its creditors. The Company may also request financial information, including financial statements or other documents to ensure that the customer has the means of making payment. If these factors do not indicate collection is reasonably assured, the Company may require a prepayment or other arrangement to support revenue recognition and recording of a trade receivable. If the financial condition of the Company's customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share Diluted EPS amounts include the effect of the Company's outstanding stock options and restricted stock shares under the treasury stock method. We have shares of restricted stock issued and outstanding, some of which remain subject to vesting requirements. Holders of such shares of unvested restricted stock are entitled to the same liquidation and dividend rights as the holders of our outstanding common stock and are thus considered participating securities. Under applicable accounting guidance, the undistributed earnings for each period are allocated based on the participation rights of both the common shareholders and holders of any participating securities as if earnings for the respective periods had been distributed. Because both the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, we are required to compute earnings per share (EPS) amounts under the two class method in periods in which we have earnings from continuing operations. The presentation of basic EPS amounts on the face of the accompanying consolidated statements of operations is computed by dividing the net income applicable to the Company’s common shareholders by the weighted average shares of outstanding common stock. The calculation of diluted EPS is similar to basic EPS, except that the denominator includes dilutive common stock equivalents and the income included in the numerator excludes the effects of the impact of dilutive common stock equivalents, if any. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation The fair value of share-based payments is estimated using option-pricing models based on the grant-date fair value of the award. The resulting cost is recognized over the period during which an employee is required to provide service in exchange for the awards, usually the vesting period. In addition to service-based awards, in 2015, 2014 and 2013, the Company issued performance-based awards which are conditional based upon performance and may vest in an amount that will depend on the Company’s achievement of specified performance objectives. The performance-based awards issued in 2014 and 2015 have a performance criteria that will be measured based upon the Company’s achievement levels of average after-tax annual return on invested capital. During the years ended December 31, 2015, 2014 and 2013, the Company recognized non-cash general and administrative expenses for stock options and restricted stock awards totaling $21.8 million, $25.6 million and $22.5 million, respectively. |
Guarantees, Indemnifications and Warranties Policies [Policy Text Block] | Guarantees Some product sales in our offshore products businesses are sold with a warranty, generally ranging from 12 to 18 months. Parts and labor are covered under the terms of the warranty agreement. Warranty provisions are estimated based upon historical experience by product, configuration and geographic region. Our total liability related to estimated warranties was $2.6 million and $2.8 million at December 31, 2015 and 2014, respectively. During the ordinary course of business, the Company also provides standby letters of credit or other guarantee instruments to certain parties as required for certain transactions initiated by either the Company or its subsidiaries. As of December 31, 2015, the maximum potential amount of future payments that the Company could be required to make under these guarantee agreements (letters of credit) was $46.6 million. The Company has not recorded any liability in connection with these guarantee arrangements. The Company does not believe, based on historical experience and information currently available, that it is likely that any amounts will be required to be paid under these guarantee arrangements. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of a few such estimates include potential future adjustments as a result of contingent consideration arrangements pursuant to business combinations and other contractual agreements, revenue and income recognized on the percentage-of-completion method, any valuation allowance recorded on net deferred tax assets, warranty, reserves on inventory and allowance for doubtful accounts. Actual results could materially differ from those estimates. |
Commitments and Contingencies, Policy [Policy Text Block] | Accounting for Contingencies We have contingent liabilities and future claims for which we have made estimates of the amount of the eventual cost to liquidate these liabilities or claims. These liabilities and claims sometimes involve threatened or actual litigation where damages have been quantified and we have made an assessment of our exposure and recorded a provision in our accounts to cover an expected loss. Other claims or liabilities have been estimated based on their fair value or our experience in these matters and, when appropriate, the advice of outside counsel or other outside experts. Upon the ultimate resolution of these uncertainties, our future reported financial results will be impacted by the difference between our estimates and the actual amounts paid to settle a liability. Examples of areas where we have made important estimates of future liabilities include future consideration due sellers as a result of the terms of a business combination, litigation, taxes, insurance claims, warranty claims, contract claims and obligations and discontinued operations. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events In accordance with authoritative guidance, the Company evaluates all events and transactions that occur after the balance sheet date, but before financial statements are issued for possible recognition or disclosure. |
Note 3 - Details of Selected 29
Note 3 - Details of Selected Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | 2015 2014 Accounts receivable, net: Trade $ 210,313 $ 348,115 Unbilled revenue 124,331 148,371 Other 5,738 7,763 Total accounts receivable 340,382 504,249 Allowance for doubtful accounts (6,888 ) (7,125 ) $ 333,494 $ 497,124 |
Schedule of Inventory, Current [Table Text Block] | 2015 2014 Inventories, net: Finished goods and purchased products $ 97,362 $ 94,955 Work in process 42,182 49,631 Raw materials 86,236 97,780 Total inventories 225,780 242,366 Allowance for excess, damaged, or obsolete inventory (12,898 ) (9,876 ) $ 212,882 $ 232,490 |
Property, Plant and Equipment [Table Text Block] | Estimated (years) 2015 2014 Property, plant and equipment, net: Land $ 26,334 $ 29,850 Buildings and leasehold improvements 3 - 40 185,274 175,421 Machinery and equipment 2 - 28 462,054 438,980 Completion services equipment 2 - 10 421,386 387,165 Office furniture and equipment 3 - 10 32,200 30,647 Vehicles 2 - 10 125,211 129,922 Construction in progress 92,800 74,088 Total property, plant and equipment 1,345,259 1,266,073 Accumulated depreciation (706,534 ) (616,227 ) $ 638,725 $ 649,846 |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | 2015 2014 Accrued liabilities: Accrued compensation $ 19,402 $ 58,979 Insurance liabilities 9,855 11,300 Accrued taxes, other than income taxes 3,619 4,851 Accrued leasehold restoration liability 3,389 -- Accrued commissions 2,033 3,621 Accrued product warranty reserves 2,638 2,809 Accrued claims 896 8,000 Other 7,468 6,570 $ 49,300 $ 96,130 |
Note 6 - Acquisitions and Sup30
Note 6 - Acquisitions and Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 2015 2013 Fair value of assets acquired including intangibles and goodwill $ 39,505 $ 66,825 Liabilities/equity assumed (6,026 ) (19,986 ) Noncash consideration -- (2,568 ) Cash acquired (52 ) (11 ) Cash used in acquisitions of businesses $ 33,427 $ 44,260 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | 2015 2014 2013 Interest (net of amounts capitalized) $ 5,629 $ 40,375 $ 56,663 Income taxes, net of refunds $ 18,780 $ 102,160 $ 90,927 Non-cash financing activities: Borrowings and contingent consideration for business and asset acquisition and related intangibles $ -- $ -- $ 1,175 |
Note 7 - Discontinued Operati31
Note 7 - Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | 2015 2014 2013 Revenues Accommodations $ -- $ 404,207 $ 1,041,104 Tubular services $ -- $ -- $ 1,073,096 Income from Accommodations discontinued operations: Income from discontinued operations before income taxes $ 327 $ 62,504 $ 230,778 Income tax expense (118 ) (11,004 ) (44,925 ) Net income from discontinued operations, net of tax $ 209 $ 51,500 $ 185,853 Income from Tubular services discontinued operations: Income from discontinued operations before income taxes $ 27 $ 321 $ 40,964 Income tax expense (10 ) (45 ) (18,643 ) Net income from discontinued operations, net of tax $ 17 $ 276 $ 22,321 |
Note 8 - Earnings Per Share (32
Note 8 - Earnings Per Share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2015 2014 2013 Income Shares Income Shares Income Shares Basic: Net income attributable to Oil States International, Inc. $ 28,597 $ 179,003 $ 421,258 Less: Undistributed net income allocable to participating securities (597 ) (2,948 ) (4,573 ) Undistributed net income applicable to common stockholders 28,000 176,055 416,685 Less: Income from discontinued operations, net of tax (226 ) (51,776 ) (292,217 ) Add: Undistributed net income from discontinued operations allocable to participating securities 5 853 3,172 Income from continuing operations applicable to Oil States International, Inc. common stockholders – Basic $ 27,779 50,269 $ 125,132 52,862 $ 127,640 54,969 Diluted: Income from continuing operations applicable to Oil States International, Inc. common stockholders - Basic $ 27,779 50,269 $ 125,132 52,862 $ 127,640 54,969 Effect of dilutive securities: Undistributed net income reallocated to participating securities 1 -- 11 -- 9 -- Options on common stock -- 57 -- 274 -- 341 Restricted stock awards and other -- 9 -- 15 -- 17 Income from continuing operations applicable to Oil States International, Inc. common stockholders - Diluted 27,780 50,335 125,143 53,151 127,649 55,327 Income from discontinued operations, net of tax, applicable to Oil States International, Inc. common stockholders 221 50,923 289,045 Undistributed net income reallocated to participating securities -- 5 20 Net income attributable to Oil States International, Inc. common stockholders - Diluted $ 28,001 50,335 $ 176,071 53,151 $ 416,714 55,327 |
Note 9 - Goodwill and Other I33
Note 9 - Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Well Site Services Completion Services Drilling Services Subtotal Accommodations Offshore Products Total Balance as of December 31, 2013 Goodwill $ 201,911 $ 22,767 $ 224,678 $ 261,056 $ 145,211 $ 630,945 Accumulated Impairment Losses (94,528 ) (22,767 ) (117,295 ) -- -- (117,295 ) 107,383 -- 107,383 261,056 145,211 513,650 Spin-Off of Civeo -- -- -- (268,463 ) -- (268,463 ) Goodwill acquired and purchase price adjustments 193 -- 193 -- 882 1,075 Foreign currency translation and other changes (1,137 ) -- (1,137 ) 7,407 (331 ) 5,939 106,439 -- 106,439 -- 145,762 252,201 Balance as of December 31, 2014 Goodwill 200,967 22,767 223,734 -- 145,762 369,496 Accumulated Impairment Losses (94,528 ) (22,767 ) (117,295 ) -- -- (117,295 ) 106,439 -- 106,439 -- 145,762 252,201 Goodwill acquired and purchase price adjustments -- -- -- -- 13,943 13,943 Foreign currency translation and other changes (2,064 ) -- (2,064 ) -- (293 ) (2,357 ) 104,375 -- 104,375 -- 159,412 263,787 Balance as of December 31, 2015 Goodwill 198,903 22,767 221,670 -- 159,412 381,082 Accumulated Impairment Losses (94,528 ) (22,767 ) (117,295 ) -- -- (117,295 ) $ 104,375 $ -- $ 104,375 $ -- $ 159,412 $ 263,787 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of December 31, 2015 2014 Other Intangible Assets Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable intangible assets: Customer relationships $ 44,557 $ 15,790 $ 37,803 $ 12,399 Contracts/Agreements/Backlog 1,064 355 -- -- Patents 20,024 6,521 18,731 5,250 Technology 10,111 3,052 10,110 2,041 Noncompete agreements 4,358 1,565 3,968 915 Trademarks and other 8,237 1,683 5,914 2,037 Total other intangible assets $ 88,351 $ 28,966 $ 76,526 $ 22,642 |
Note 10 - Long-term Debt (Table
Note 10 - Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | 2015 2014 Revolving credit facility, which matures May 28, 2019, with available commitments up to $600 million; secured by substantially all of our U.S. assets; commitment fee on unused portion of 0.375 % per annum in 2015 and 2014; variable interest rate payable monthly based on LIBOR plus applicable percentage; weighted average interest rate was 1.9% for 2015 and 1.8% for 2014 $ 122,858 $ 140,684 Capital lease obligations and other debt 6,229 6,681 Total debt 129,087 147,365 Less: Current portion 533 530 Total long-term debt and capitalized leases $ 128,554 $ 146,835 |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2016 $ 533 2017 538 2018 449 2019 123,201 2020 359 Thereafter 4,007 $ 129,087 |
Note 13 - Income Taxes (Tables)
Note 13 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | 2015 2014 2013 US operations $ (21,598 ) $ 128,639 $ 143,913 Foreign operations 72,166 67,705 60,214 Total $ 50,568 $ 196,344 $ 204,127 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2015 2014 2013 Current: Federal $ 7,221 $ 56,317 $ 65,249 State 1,868 5,426 2,881 Foreign 16,281 19,344 16,697 25,370 81,087 84,827 Deferred: Federal (5,656 ) (8,620 ) (11,468 ) State (496 ) 26 263 Foreign 2,979 (3,376 ) 1,446 (3,173 ) (11,970 ) (9,759 ) Total Provision $ 22,197 $ 69,117 $ 75,068 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2015 2014 2013 Federal statutory tax rate 35.0 % 35.0 % 35.0 % Effect of foreign income tax, net (11.1 ) (2.8 ) (0.4 ) Valuation allowance 8.1 -- -- Nondeductible compensation 7.6 0.3 0.2 Other nondeductible expenses 4.5 1.4 2.2 Domestic manufacturing deduction (2.6 ) (1.9 ) (2.1 ) State tax expense, net of federal benefits 1.3 2.8 1.5 Other, net 1.1 0.4 0.4 Effective tax rate 43.9 % 35.2 % 36.8 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2015 2014 Deferred tax assets: Foreign tax credit carryover $ 24,852 $ 27,771 Employee benefits 18,252 22,036 Allowance for inventory reserves 7,394 7,102 Net operating loss carryforward 4,580 2,700 Other reserves 3,580 5,659 Allowance for doubtful accounts 1,657 1,526 Other 635 1,365 Gross deferred tax asset 60,950 68,159 Valuation allowance (3,970 ) -- Deferred tax asset 56,980 68,159 Deferred tax liabilities: Tax over book depreciation (77,632 ) (93,010 ) Intangible assets (17,804 ) (9,700 ) Accrued liabilities (1,513 ) (2,298 ) Deferred revenue (113 ) (1,171 ) Other (377 ) (458 ) Deferred tax liability (97,439 ) (106,637 ) Net deferred tax liability (40,459 ) $ (38,478 ) |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 2015 2014 2013 Balance as of January 1 st $ -- $ 836 $ 728 Additions for tax positions of prior years -- -- 108 Distribution to Civeo -- (836 ) -- Balance as of December 31 st $ -- $ -- $ 836 |
Note 14 - Commitments and Con36
Note 14 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Operating Leases 2016 $ 8,271 2017 4,784 2018 3,422 2019 2,654 2020 1,298 Thereafter 5,738 Total $ 26,167 |
Note 15 - Stock-based and Def37
Note 15 - Stock-based and Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2015 2014 2013 Risk-free weighted interest rate 1.2 % 1.3 % 0.6 % Expected life (in years) 4.3 4.1 4.1 Expected volatility 37 % 38 % 44 % |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Options Weighted Average Exercise Price Per Share Weighted Average Contractual Life (Years) Aggregate Intrinsic Value (thousands) Outstanding Options at December 31, 2014 1,007,686 $ 38.97 5.4 $ 11,877 Granted 119,370 42.29 Exercised (336,251 ) 37.01 Forfeited/Expired (20,624 ) 50.96 Outstanding Options at December 31, 2015 770,181 48.49 7.0 $ 88 Exercisable Options at December 31, 2015 370,268 $ 47.18 5.9 $ 88 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding as of 12/31/2015 Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable as of 12/31/2015 Weighted Average Exercise Price $21.96 - $46.78 422,092 6.89 $ 43.85 204,584 $ 43.36 $49.33 - $49.33 167,206 6.00 $ 49.33 119,464 $ 49.33 $58.54 - $58.54 180,883 8.07 $ 58.54 46,220 $ 58.54 $21.96 - $58.54 770,181 6.97 $ 48.49 370,268 $ 47.18 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Number of Awards Weighted Average Grant Date Fair Value Per Share Nonvested shares at January 1, 2015 1,106,670 $ 39.80 Granted 559,207 42.39 Vested (446,506 ) 42.44 Forfeited (47,487 ) 46.77 Nonvested shares at December 31, 2015 1,171,884 $ 43.08 |
Note 16 - Segment and Related38
Note 16 - Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Revenues from unaffiliated customers Depreciation and amortization Operating income (loss) Equity in income (losses) of unconsolidated affiliates Capital expenditures Total assets 2015 Well site services - Completion services $ 308,077 $ 75,612 $ (26,280 ) $ -- $ 55,336 $ 525,012 Drilling services 67,782 26,889 (17,866 ) -- 12,097 103,156 Total well site services 375,859 102,501 (44,146 ) -- 67,433 628,168 Offshore products 724,118 27,416 146,389 526 46,615 930,871 Corporate and eliminations -- 1,340 (47,237 ) -- 690 40,099 Total $ 1,099,977 $ 131,257 $ 55,006 $ 526 $ 114,738 $ 1,599,138 2014 Well site services - Completion services $ 656,862 $ 74,176 $ 148,787 $ -- $ 107,580 $ 641,725 Drilling services 201,143 27,081 29,574 -- 29,359 135,676 Total well site services 858,005 101,257 178,361 -- 136,939 777,401 Offshore products 961,604 22,496 200,098 378 60,263 983,542 Corporate and eliminations -- 1,023 (68,204 ) -- 2,054 48,669 Total $ 1,819,609 $ 124,776 $ 310,255 $ 378 $ 199,256 $ 1,809,612 2013 Well site services - Completion services $ 576,040 $ 65,644 $ 127,280 $ -- $ 95,236 $ 589,626 Drilling services 170,467 24,908 22,363 -- 25,535 139,973 Total well site services 746,507 90,552 149,643 -- 120,771 729,599 Offshore products 882,627 17,751 156,918 (355 ) 42,694 940,825 Corporate and eliminations -- 928 (59,284 ) -- 1,430 338,435 Total $ 1,629,134 $ 109,231 $ 247,277 $ (355 ) $ 164,895 $ 2,008,859 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | United States United Kingdom Singapore Other Non U.S. Total 2015 Revenues from unaffiliated customers $ 797,762 $ 170,536 $ 66,305 $ 65,374 $ 1,099,977 Long-lived assets 820,464 74,082 26,462 66,619 987,627 2014 Revenues from unaffiliated customers $ 1,468,202 $ 188,753 $ 83,493 $ 79,161 $ 1,819,609 Long-lived assets 826,648 54,868 27,438 71,265 980,219 2013 Revenues from unaffiliated customers $ 1,261,186 $ 171,439 $ 106,937 $ 89,572 $ 1,629,134 Long-lived assets 803,918 33,107 25,511 66,239 928,775 |
Note 17 - Valuation Allowances
Note 17 - Valuation Allowances (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Summary of Valuation Allowance [Table Text Block] | Balance at Beginning of Period Charged to Costs and Expenses Deductions (net of recoveries) Translation and Other, Net Balance at End of Period Year Ended December 31, 2015: Allowance for doubtful accounts receivable $ 7,125 $ 195 $ (187 ) $ (245 ) $ 6,888 Allowance for excess, damaged or obsolete inventory 9,876 5,487 (2,395 ) (70 ) 12,898 Valuation allowance on deferred tax assets -- 3,970 -- -- 3,970 Year Ended December 31, 2014: Allowance for doubtful accounts receivable $ 3,878 $ 3,364 $ 111 $ (228 ) $ 7,125 Allowance for excess, damaged or obsolete inventory 9,540 2,147 (1,772 ) (39 ) 9,876 Year Ended December 31, 2013: Allowance for doubtful accounts receivable $ 3,804 $ 505 $ (419 ) $ (12 ) $ 3,878 Allowance for excess, damaged or obsolete inventory 8,603 2,076 (1,159 ) 20 9,540 |
Note 18 - Quarterly Financial40
Note 18 - Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Quarterly Financial Information [Table Text Block] | First Quarter (2) Second Quarter (3) Third Quarter (4) Fourth Quarter (5) 2015 Revenues $ 337,358 $ 269,258 $ 258,886 $ 234,474 Gross profit (1) 99,636 74,594 70,296 69,752 Net income attributable to: Continuing operations 19,402 6,148 1,706 1,115 Discontinued operations 166 35 23 2 Basic earnings per share: Continuing operations 0.38 0.12 0.03 0.02 Discontinued operations -- -- -- -- Diluted earnings per share: Continuing operations 0.38 0.12 0.03 0.02 Discontinued operations -- -- -- -- 2014 Revenues $ 405,237 $ 459,607 $ 471,032 $ 483,733 Gross profit (1) 132,866 151,699 164,535 164,626 Net income attributable to: Continuing operations 34,709 (24,122 ) 58,387 58,253 Discontinued operations 36,795 16,242 (1,467 ) 206 Basic earnings per share: Continuing operations 0.65 (0.45 ) 1.08 1.10 Discontinued operations 0.68 0.30 (0.03 ) -- Diluted earnings per share: Continuing operations 0.64 (0.45 ) 1.07 1.09 Discontinued operations 0.68 0.30 (0.02 ) -- |
Note 2 - Summary of Significa41
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative, Notional Amount | $ 5,400,000 | $ 5,400,000 | |
Impairment of Intangible Assets, Finite-lived | 0 | 0 | $ 0 |
Guarantor Obligations, Current Carrying Value | 0 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 307,000 | 6,000 | 402,000 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | (400,000) | (900,000) | |
Conversion Gains and Losses on Foreign Investments | 3,700,000 | (400,000) | (1,600,000) |
Foreign Earnings Repatriated | 35,200,000 | ||
Allocated Share-based Compensation Expense | $ 21,800,000 | 25,600,000 | $ 22,500,000 |
Product Warranty Period, Minimum | 1 year | ||
Product Warranty Period, Maximum | 1 year 180 days | ||
Product Warranty Accrual | $ 2,600,000 | $ 2,800,000 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 46,600,000 |
Note 3 - Details of Selected 42
Note 3 - Details of Selected Balance Sheet Accounts (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation | $ 123.5 | $ 117.7 | $ 104.2 |
Note 3 - Accounts Receivable (D
Note 3 - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Trade Accounts Receivable [Member] | ||
Accounts receivable, net: | ||
Accounts receivable, gross | $ 210,313 | $ 348,115 |
Unbilled Revenue [Member] | ||
Accounts receivable, net: | ||
Accounts receivable, gross | 124,331 | 148,371 |
Other Receivables [Member] | ||
Accounts receivable, net: | ||
Accounts receivable, gross | 5,738 | 7,763 |
Accounts receivable, gross | 340,382 | 504,249 |
Allowance for doubtful accounts | (6,888) | (7,125) |
$ 333,494 | $ 497,124 |
Note 3 - Inventories (Details)
Note 3 - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories, net: | ||
Finished goods and purchased products | $ 97,362 | $ 94,955 |
Work in process | 42,182 | 49,631 |
Raw materials | 86,236 | 97,780 |
Total inventories | 225,780 | 242,366 |
Allowance for excess, damaged, or obsolete inventory | (12,898) | (9,876) |
$ 212,882 | $ 232,490 |
Note 3 - Property, Plant and Eq
Note 3 - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Land [Member] | ||
Property, plant and equipment | $ 26,334 | $ 29,850 |
Building and Building Improvements [Member] | Minimum [Member] | ||
Estimated Useful Life | 3 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Estimated Useful Life | 40 years | |
Building and Building Improvements [Member] | ||
Property, plant and equipment | $ 185,274 | 175,421 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Estimated Useful Life | 2 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Estimated Useful Life | 28 years | |
Machinery and Equipment [Member] | ||
Property, plant and equipment | $ 462,054 | 438,980 |
Completion Services [Member] | Minimum [Member] | ||
Estimated Useful Life | 2 years | |
Completion Services [Member] | Maximum [Member] | ||
Estimated Useful Life | 10 years | |
Completion Services [Member] | ||
Property, plant and equipment | $ 421,386 | 387,165 |
Office Furniture and Equipment [Member] | Minimum [Member] | ||
Estimated Useful Life | 3 years | |
Office Furniture and Equipment [Member] | Maximum [Member] | ||
Estimated Useful Life | 10 years | |
Office Furniture and Equipment [Member] | ||
Property, plant and equipment | $ 32,200 | 30,647 |
Vehicles [Member] | Minimum [Member] | ||
Estimated Useful Life | 2 years | |
Vehicles [Member] | Maximum [Member] | ||
Estimated Useful Life | 10 years | |
Vehicles [Member] | ||
Property, plant and equipment | $ 125,211 | 129,922 |
Construction in Progress [Member] | ||
Property, plant and equipment | 92,800 | 74,088 |
Property, plant and equipment | 1,345,259 | 1,266,073 |
Accumulated depreciation | (706,534) | (616,227) |
Property, plant and equipment, net | $ 638,725 | $ 649,846 |
Note 3 - Accrued Liabilities (D
Note 3 - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued liabilities: | ||
Accrued compensation | $ 19,402 | $ 58,979 |
Insurance liabilities | 9,855 | 11,300 |
Accrued taxes, other than income taxes | 3,619 | 4,851 |
Accrued leasehold restoration liability | 3,389 | |
Accrued commissions | 2,033 | 3,621 |
Accrued product warranty reserves | 2,638 | 2,809 |
Accrued claims | 896 | 8,000 |
Other | 7,468 | 6,570 |
$ 49,300 | $ 96,130 |
Note 5 - Accumulated Other Co47
Note 5 - Accumulated Other Comprehensive Loss (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (50,698) | $ (22,100) |
Average Exchange Rate of the British Pound Weakened | 5.00% | |
Average Exchange Rate of the Brazilian Real Weakened | 31.00% | |
Average Exchange Rate of the Canadian Dollar Weakened | 16.00% |
Note 6 - Acquisitions and Sup48
Note 6 - Acquisitions and Supplemental Cash Flow Information (Details Textual) - USD ($) $ in Millions | Jan. 02, 2015 | Dec. 02, 2013 |
Montgomery Machine Company Inc [Member] | ||
Payments to Acquire Businesses, Gross | $ 33.4 | |
Quality Connector Systems [Member] | ||
Payments to Acquire Businesses, Gross | $ 42.3 |
Note 6 - Cash Used for Acquisit
Note 6 - Cash Used for Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Fair value of assets acquired including intangibles and goodwill | $ 39,505 | $ 66,825 |
Liabilities/equity assumed | (6,026) | (19,986) |
Noncash consideration | (2,568) | |
Cash acquired | (52) | (11) |
Cash used in acquisitions of businesses | $ 33,427 | $ 44,260 |
Note 6 - Interest and Income Ta
Note 6 - Interest and Income Taxes Paid (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest (net of amounts capitalized) | $ 5,629 | $ 40,375 | $ 56,663 |
Income taxes, net of refunds | $ 18,780 | $ 102,160 | 90,927 |
Non-cash financing activities: | |||
Borrowings and contingent consideration for business and asset acquisition and related intangibles | $ 1,175 |
Note 7 - Discontinued Operati51
Note 7 - Discontinued Operations (Details Textual) $ in Millions | May. 30, 2014 | Dec. 31, 2013USD ($) |
Spin Off Common Stock Ratio | 2 | |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 128.4 | |
Discontinued Operation, Provision for Loss (Gain) on Disposal, Net of Tax | $ 84 |
Note 7 - Operating Results of D
Note 7 - Operating Results of Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accommodations [Member] | |||
Revenues | $ 404,207 | $ 1,041,104 | |
Income from discontinued operations before income taxes | $ 327 | 62,504 | 230,778 |
Income tax expense | (118) | (11,004) | (44,925) |
Net income from discontinued operations, net of tax | $ 209 | $ 51,500 | 185,853 |
Tubular Services [Member] | |||
Revenues | 1,073,096 | ||
Income from discontinued operations before income taxes | $ 27 | $ 321 | 40,964 |
Income tax expense | (10) | (45) | (18,643) |
Net income from discontinued operations, net of tax | 17 | 276 | 22,321 |
Net income from discontinued operations, net of tax | $ 226 | $ 51,776 | $ 292,217 |
Note 8 - Earnings Per Share (53
Note 8 - Earnings Per Share (EPS) (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 747,839 | 224,739 | 263,838 |
Note 8 - Earnings per Share Cal
Note 8 - Earnings per Share Calculation (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic [Member] | |||
Less: Income from discontinued operations, net of tax | $ (226) | $ (51,776) | $ (292,217) |
Diluted [Member] | |||
Less: Income from discontinued operations, net of tax | 221 | 50,923 | 289,045 |
Discontinued Operations [Member] | |||
Less: Undistributed net income allocable to participating securities | 5 | 853 | 3,172 |
Undistributed net income reallocated to participating securities | 5 | 20 | |
Continuing Operations [Member] | |||
Undistributed net income applicable to common stockholders | $ 27,779 | $ 125,132 | $ 127,640 |
Basic (in shares) | 50,269 | 52,862 | 54,969 |
Undistributed net income reallocated to participating securities | $ 1 | $ 11 | $ 9 |
Income from continuing operations applicable to Oil States International, Inc. common stockholders - Diluted | $ 27,780 | $ 125,143 | $ 127,649 |
Diluted (in shares) | 50,335 | 53,151 | 55,327 |
Net income attributable to Oil States International, Inc. | $ 28,597 | $ 179,003 | $ 421,258 |
Less: Undistributed net income allocable to participating securities | (597) | (2,948) | (4,573) |
Undistributed net income applicable to common stockholders | 28,000 | 176,055 | 416,685 |
Less: Income from discontinued operations, net of tax | $ 226 | $ 51,776 | $ 292,217 |
Basic (in shares) | 50,269 | 52,862 | 54,969 |
Options on common stock (in shares) | 57 | 274 | 341 |
Restricted stock awards and other (in shares) | 9 | 15 | 17 |
Income from continuing operations applicable to Oil States International, Inc. common stockholders - Diluted | $ 28,001 | $ 176,071 | $ 416,714 |
Diluted (in shares) | 50,335 | 53,151 | 55,327 |
Note 9 - Goodwill and Other I55
Note 9 - Goodwill and Other Intangible Assets (Details Textual) | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | ||
Number of Reporting Units | 2 | ||
Finite-Lived Intangible Asset, Useful Life | 8 years 255 days | 9 years 109 days | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 7,900,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 7,800,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 7,100,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 6,900,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 6,600,000 | ||
Amortization of Intangible Assets | $ 7,800,000 | $ 7,000,000 | $ 5,100,000 |
Note 9 - Changes in the Carryin
Note 9 - Changes in the Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Well Site Services Completion Services [Member] | |||||
Goodwill, gross | $ 198,903 | $ 200,967 | $ 201,911 | ||
Accumulated Impairment Losses | (94,528) | (94,528) | (94,528) | ||
Goodwill | $ 106,439 | $ 107,383 | |||
Spin-Off of Civeo | |||||
Goodwill acquired and purchase price adjustments | $ 193 | ||||
Foreign currency translation and other changes | (2,064) | (1,137) | |||
Goodwill, net | 106,439 | 107,383 | 104,375 | 106,439 | 107,383 |
Goodwill | 104,375 | 106,439 | |||
Goodwill | $ 106,439 | $ 107,383 | 104,375 | 106,439 | 107,383 |
Well Site Services Drilling Services [Member] | |||||
Goodwill, gross | 22,767 | 22,767 | 22,767 | ||
Accumulated Impairment Losses | $ (22,767) | $ (22,767) | $ (22,767) | ||
Goodwill | |||||
Spin-Off of Civeo | |||||
Goodwill acquired and purchase price adjustments | |||||
Foreign currency translation and other changes | |||||
Goodwill, net | |||||
Goodwill | |||||
Goodwill | |||||
Total Well Site Services [Member] | |||||
Goodwill, gross | $ 221,670 | $ 223,734 | $ 224,678 | ||
Accumulated Impairment Losses | (117,295) | (117,295) | (117,295) | ||
Goodwill | $ 106,439 | $ 107,383 | |||
Spin-Off of Civeo | |||||
Goodwill acquired and purchase price adjustments | $ 193 | ||||
Foreign currency translation and other changes | (2,064) | (1,137) | |||
Goodwill, net | 106,439 | 107,383 | 104,375 | 106,439 | 107,383 |
Goodwill | 104,375 | 106,439 | |||
Goodwill | $ 106,439 | 107,383 | $ 104,375 | $ 106,439 | 107,383 |
Accommodations [Member] | |||||
Goodwill, gross | $ 261,056 | ||||
Accumulated Impairment Losses | |||||
Goodwill | 261,056 | ||||
Spin-Off of Civeo | $ (268,463) | ||||
Goodwill acquired and purchase price adjustments | |||||
Foreign currency translation and other changes | $ 7,407 | ||||
Goodwill, net | 261,056 | $ 261,056 | |||
Goodwill | |||||
Goodwill | 261,056 | 261,056 | |||
Offshore Products [Member] | |||||
Goodwill, gross | $ 159,412 | $ 145,762 | $ 145,211 | ||
Accumulated Impairment Losses | |||||
Goodwill | $ 145,762 | $ 145,211 | |||
Spin-Off of Civeo | |||||
Goodwill acquired and purchase price adjustments | 13,943 | $ 882 | |||
Foreign currency translation and other changes | (293) | (331) | |||
Goodwill, net | 145,762 | 145,211 | $ 159,412 | $ 145,762 | $ 145,211 |
Goodwill | 159,412 | 145,762 | |||
Goodwill | 145,762 | 145,211 | 159,412 | 145,762 | 145,211 |
Goodwill, gross | 381,082 | 369,496 | 630,945 | ||
Accumulated Impairment Losses | (117,295) | (117,295) | (117,295) | ||
Goodwill | 252,201 | 513,650 | |||
Spin-Off of Civeo | (268,463) | ||||
Goodwill acquired and purchase price adjustments | 13,943 | 1,075 | |||
Foreign currency translation and other changes | (2,357) | 5,939 | |||
Goodwill, net | 263,787 | 252,201 | 263,787 | 252,201 | 513,650 |
Goodwill | 263,787 | 252,201 | |||
Goodwill | $ 263,787 | $ 252,201 | $ 263,787 | $ 252,201 | $ 513,650 |
Note 9 - Intangible Assets (Det
Note 9 - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Customer Relationships [Member] | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | $ 44,557 | $ 37,803 |
Amortizable intangible assets, accumulated amortization | 15,790 | 12,399 |
Customer Contracts [Member] | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 1,064 | |
Amortizable intangible assets, accumulated amortization | 355 | |
Patents [Member] | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 20,024 | 18,731 |
Amortizable intangible assets, accumulated amortization | 6,521 | 5,250 |
Technology-Based Intangible Assets [Member] | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 10,111 | 10,110 |
Amortizable intangible assets, accumulated amortization | 3,052 | 2,041 |
Noncompete Agreements [Member] | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 4,358 | 3,968 |
Amortizable intangible assets, accumulated amortization | 1,565 | 915 |
Trademarks [Member] | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross carrying amount | 8,237 | 5,914 |
Amortizable intangible assets, accumulated amortization | 1,683 | 2,037 |
Amortizable intangible assets, accumulated amortization | 28,966 | 22,642 |
Total other intangible assets | $ 88,351 | $ 76,526 |
Note 10 - Long-term Debt (Detai
Note 10 - Long-term Debt (Details Textual) $ in Thousands | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||||
Jun. 30, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($) | May. 28, 2014USD ($) | Dec. 31, 2012USD ($) | |
Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||
Revolving Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Revolving Credit Facility [Member] | Maximum [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750,000 | |||||||
Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Revolving Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 600,000 | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | |||||||
5 1/8% Senoir Notes [Member] | ||||||||
Gains (Losses) on Extinguishment of Debt | $ (100,400) | |||||||
Five and One Eighth Percent Senior Notes [Member] | ||||||||
Gains (Losses) on Extinguishment of Debt | $ 4,100 | |||||||
Write off of Deferred Debt Issuance Cost | 400 | |||||||
Senior Unsecured Notes [Member] | ||||||||
Gains (Losses) on Extinguishment of Debt | (96,700) | |||||||
Repayment of U.S. Term Loan [Member] | ||||||||
Write off of Deferred Debt Issuance Cost | 2,100 | |||||||
Write Off Of Unamortized Deferred Finance Costs [Member] | CANADA | Discontinued Operations [Member] | ||||||||
Gains (Losses) on Extinguishment of Debt | $ (1,800) | |||||||
Write Off Of Unamortized Deferred Finance Costs [Member] | ||||||||
Gains (Losses) on Extinguishment of Debt | (3,700) | |||||||
Capital Leased Assets, Gross | $ 1,500 | 1,500 | $ 1,500 | |||||
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 700 | 700 | 900 | |||||
Interest Coverage Ratio | 3 | |||||||
Maximum Leverage Ratio | 3.25 | |||||||
Long-term Line of Credit | 122,900 | |||||||
Letters of Credit Outstanding, Amount | 37,700 | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | 439,400 | |||||||
Cash and Cash Equivalents, at Carrying Value | 599,306 | $ 53,263 | 53,263 | $ 599,306 | $ 35,973 | $ 253,172 | ||
Gains (Losses) on Extinguishment of Debt | $ 100,400 | $ (6,200) | $ (100,380) | $ (6,168) |
Note 10 - Summary of Long-term
Note 10 - Summary of Long-term (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Domestic Line of Credit [Member] | ||
Revolving credit facility, which matures May 28, 2019, with available commitments up to $600 million; secured by substantially all of our U.S. assets; commitment fee on unused portion of 0.375 % per annum in 2015 and 2014; variable interest rate payable monthly based on LIBOR plus applicable percentage; weighted average interest rate was 1.9% for 2015 and 1.8% for 2014 | $ 122,858 | $ 140,684 |
Capital Lease Obligations And Other Debt [Member] | ||
Revolving credit facility, which matures May 28, 2019, with available commitments up to $600 million; secured by substantially all of our U.S. assets; commitment fee on unused portion of 0.375 % per annum in 2015 and 2014; variable interest rate payable monthly based on LIBOR plus applicable percentage; weighted average interest rate was 1.9% for 2015 and 1.8% for 2014 | 6,229 | 6,681 |
Gross [Member] | ||
Revolving credit facility, which matures May 28, 2019, with available commitments up to $600 million; secured by substantially all of our U.S. assets; commitment fee on unused portion of 0.375 % per annum in 2015 and 2014; variable interest rate payable monthly based on LIBOR plus applicable percentage; weighted average interest rate was 1.9% for 2015 and 1.8% for 2014 | 129,087 | 147,365 |
Revolving credit facility, which matures May 28, 2019, with available commitments up to $600 million; secured by substantially all of our U.S. assets; commitment fee on unused portion of 0.375 % per annum in 2015 and 2014; variable interest rate payable monthly based on LIBOR plus applicable percentage; weighted average interest rate was 1.9% for 2015 and 1.8% for 2014 | 129,087 | |
Less: Current portion | 533 | 530 |
Total long-term debt and capitalized leases | $ 128,554 | $ 146,835 |
Note 10 - Summary of Long-ter60
Note 10 - Summary of Long-term (Details) (Parentheticals) - Domestic Line of Credit [Member] - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Available commitments up to | $ 0.6 | $ 0.6 |
Weighted Average Interest Rate | 1.90% | 1.80% |
Commitment Fee on Unused Portion | 0.375% | 0.375% |
Note 10 - Long-term Debt Maturi
Note 10 - Long-term Debt Maturities Schedule (Details) $ in Thousands | Dec. 31, 2015USD ($) |
2,016 | $ 533 |
2,017 | 538 |
2,018 | 449 |
2,019 | 123,201 |
2,020 | 359 |
Thereafter | 4,007 |
$ 129,087 |
Note 11 - Stock Repurchase Pr62
Note 11 - Stock Repurchase Program (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Jul. 29, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Sep. 06, 2013 | Aug. 31, 2013 |
Stock Repurchase Program, Authorized Amount | $ 500 | $ 200 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||
Stock Repurchased During Period, Value | $ 150 | $ 105.9 | $ 218.9 | $ 456 | ||
Stock Repurchased During Period, Shares | 2,674,218 | 2,843,142 | 6,902,748 | |||
Stock Repurchased of the Outstanding Shares of Common Stock During Period, Percentage | 13.00% | 13.00% | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 136.8 | $ 136.8 |
Note 12 - Retirement Plans (Det
Note 12 - Retirement Plans (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Continuing Operations [Member] | |||
Pension and Other Postretirement Benefit Expense | $ 8 | $ 13 | $ 9.7 |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards | $ 15,800,000 | |||
Foreign Tax Authority [Member] | Ministry of Finance, India [Member] | ||||
Operating Loss Carryforwards | 700,000 | |||
Foreign Tax Authority [Member] | Tax Authority, Thailand [Member] | ||||
Operating Loss Carryforwards | 2,600,000 | |||
Foreign Tax Authority [Member] | Secretariat of the Federal Revenue Bureau of Brazil [Member] | ||||
Operating Loss Carryforwards | 7,300,000 | |||
Unrecognized Tax Benefits | 0 | $ 0 | $ 836,000 | $ 728,000 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | $ 0 | ||
Undistributed Earnings of Foreign Subsidiaries | 248,700,000 | |||
Foreign Earnings Repatriated | $ 35,200,000 |
Note 13 - Consolidated Pre-Tax
Note 13 - Consolidated Pre-Tax Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
US operations | $ (21,598) | $ 128,639 | $ 143,913 |
Foreign operations | 72,166 | 67,705 | 60,214 |
Total | $ 50,568 | $ 196,344 | $ 204,127 |
Note 13 - Components of Income
Note 13 - Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 7,221 | $ 56,317 | $ 65,249 |
State | 1,868 | 5,426 | 2,881 |
Foreign | 16,281 | 19,344 | 16,697 |
25,370 | 81,087 | 84,827 | |
Deferred: | |||
Federal | (5,656) | (8,620) | (11,468) |
State | (496) | 26 | 263 |
Foreign | 2,979 | (3,376) | 1,446 |
(3,173) | (11,970) | (9,759) | |
Total Provision | $ 22,197 | $ 69,117 | $ 75,068 |
Note 13 - Income Tax Rate Recon
Note 13 - Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Effect of foreign income tax, net | (11.10%) | (2.80%) | (0.40%) |
Valuation allowance | 8.10% | ||
Nondeductible compensation | 7.60% | 0.30% | 0.20% |
Other nondeductible expenses | 4.50% | 1.40% | 2.20% |
Domestic manufacturing deduction | 2.60% | 1.90% | 2.10% |
State tax expense, net of federal benefits | 1.30% | 2.80% | 1.50% |
Other, net | 1.10% | 0.40% | 0.40% |
Effective tax rate | 43.90% | 35.20% | 36.80% |
Note 13 - Deferred Tax Assets a
Note 13 - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Foreign tax credit carryover | $ 24,852 | $ 27,771 |
Employee benefits | 18,252 | 22,036 |
Allowance for inventory reserves | 7,394 | 7,102 |
Net operating loss carryforward | 4,580 | 2,700 |
Other reserves | 3,580 | 5,659 |
Allowance for doubtful accounts | 1,657 | 1,526 |
Other | 635 | 1,365 |
Gross deferred tax asset | 60,950 | $ 68,159 |
Valuation allowance | (3,970) | |
Deferred tax asset | 56,980 | $ 68,159 |
Deferred tax liabilities: | ||
Tax over book depreciation | (77,632) | (93,010) |
Intangible assets | (17,804) | (9,700) |
Accrued liabilities | (1,513) | (2,298) |
Deferred revenue | (113) | (1,171) |
Other | (377) | (458) |
Deferred tax liability | (97,439) | (106,637) |
Net deferred tax liability | $ (40,459) | $ (38,478) |
Note 13 - Unrecognized Tax Bene
Note 13 - Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance | $ 0 | $ 836,000 | $ 728,000 |
Additions for tax positions of prior years | $ 108,000 | ||
Distribution to Civeo | $ (836,000) | ||
Balance | $ 0 | $ 0 | $ 836,000 |
Note 14 - Commitments and Con70
Note 14 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Continuing Operations [Member] | |||
Operating Leases, Rent Expense | $ 11.3 | $ 11.5 | $ 12.3 |
Note 14 - Commitments and Con71
Note 14 - Commitments and Contingencies - Minimum Future Operating Lease Obligations (Details) $ in Thousands | Dec. 31, 2015USD ($) |
2,016 | $ 8,271 |
2,017 | 4,784 |
2,018 | 3,422 |
2,019 | 2,654 |
2,020 | 1,298 |
Thereafter | 5,738 |
Total | $ 26,167 |
Note 15 - Stock-based and Def72
Note 15 - Stock-based and Deferred Compensation Plans (Details Textual) | 12 Months Ended | ||
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares | |
Restricted Stock [Member] | Four Equal Annual Installments Beginning in February 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 461,658 | ||
Number Of Equal Installments In Which Restricted Stock Awards Vest | 4 | ||
Restricted Stock [Member] | Vest in 2018 Depend on Achievement of Performance Objectives [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 75,900 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Restricted Stock [Member] | Awards Which Vest 100% in May 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 20,062 | ||
Restricted Stock [Member] | Awards Which Vest 100% Immediately [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 1,587 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 559,207 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Value | $ 23,700,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 42.39 | $ 93.09 | $ 82.05 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 18,900,000 | $ 27,200,000 | $ 18,700,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 29,300,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | ||
Stock Options And Restricted Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 1,837,279 | ||
Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member] | |||
Net Compensation Expense | $ 200,000 | 100,000 | 500,000 |
Allocated Share-based Compensation Expense | $ 21,800,000 | $ 25,600,000 | $ 22,500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 13.32 | $ 32.03 | $ 28.31 |
Share Based Compensation Arrangement By Share Based Payment Award Options Term | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 12,400,000 | $ 28,100,000 | $ 43,600,000 |
Proceeds from Stock Options Exercised | 5,900,000 | 10,500,000 | 16,400,000 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 6,500,000 | $ 6,900,000 | $ 7,400,000 |
Deferred Compensation Plan Assets | 16,900,000 | ||
Deferred Compensation Cash-based Arrangements, Liability, Classified, Noncurrent | $ 17,000,000 |
Note 15 - Stock-based and Def73
Note 15 - Stock-based and Deferred Compensation Plans - Valuation Assumptions of Stock Options (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Risk-free weighted interest rate | 1.20% | 1.30% | 0.60% |
Expected life (in years) | 4 years 109 days | 4 years 36 days | 4 years 36 days |
Expected volatility | 37.00% | 38.00% | 44.00% |
Note 15 - Stock-based and Def74
Note 15 - Stock-based and Deferred Compensation Plans - Stock Option Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Outstanding Options (in shares) | 1,007,686 | |
Outstanding Options (in dollars per share) | $ 38.97 | |
Outstanding Options | 7 years | 5 years 146 days |
Outstanding Options | $ 11,877 | |
Granted (in shares) | 119,370 | |
Granted (in dollars per share) | $ 42.29 | |
Exercised (in shares) | (336,251) | |
Exercised (in dollars per share) | $ 37.01 | |
Forfeited/Expired (in shares) | (20,624) | |
Forfeited/Expired (in dollars per share) | $ 50.96 | |
Outstanding Options (in shares) | 770,181 | 1,007,686 |
Outstanding Options (in dollars per share) | $ 48.49 | $ 38.97 |
Outstanding Options | $ 88 | $ 11,877 |
Exercisable Options (in shares) | 370,268 | |
Exercisable Options (in dollars per share) | $ 47.18 | |
Exercisable Options | 5 years 328 days | |
Exercisable Options | $ 88 |
Note 15 - Stock-based and Def75
Note 15 - Stock-based and Deferred Compensation Plans - Stock Options Outstanding (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Exercise Price Range 1 [Member] | |
Options, Exercise Price Range, Lower Limit (in dollars per share) | $ 21.96 |
Options, Exercise Price Range, Upper Limit (in dollars per share) | $ 46.78 |
Options Outstanding Number Outstanding (in shares) | shares | 422,092 |
Options Outstanding Weighted Average Remaining Contractual Life | 6 years 324 days |
Options Outstanding Weighted Average Exercise Price (in dollars per share) | $ 43.85 |
Options Exercisable Number Exercisable (in shares) | shares | 204,584 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $ 43.36 |
Exercise Price Range 2 [Member] | |
Options, Exercise Price Range, Lower Limit (in dollars per share) | 49.33 |
Options, Exercise Price Range, Upper Limit (in dollars per share) | $ 49.33 |
Options Outstanding Number Outstanding (in shares) | shares | 167,206 |
Options Outstanding Weighted Average Remaining Contractual Life | 6 years |
Options Outstanding Weighted Average Exercise Price (in dollars per share) | $ 49.33 |
Options Exercisable Number Exercisable (in shares) | shares | 119,464 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $ 49.33 |
Exercise Price Range 3 [Member] | |
Options, Exercise Price Range, Lower Limit (in dollars per share) | 58.54 |
Options, Exercise Price Range, Upper Limit (in dollars per share) | $ 58.54 |
Options Outstanding Number Outstanding (in shares) | shares | 180,883 |
Options Outstanding Weighted Average Remaining Contractual Life | 8 years 25 days |
Options Outstanding Weighted Average Exercise Price (in dollars per share) | $ 58.54 |
Options Exercisable Number Exercisable (in shares) | shares | 46,220 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $ 58.54 |
Exercise Price Range 4 [Member] | |
Options, Exercise Price Range, Lower Limit (in dollars per share) | 21.96 |
Options, Exercise Price Range, Upper Limit (in dollars per share) | $ 58.54 |
Options Outstanding Number Outstanding (in shares) | shares | 770,181 |
Options Outstanding Weighted Average Remaining Contractual Life | 6 years 354 days |
Options Outstanding Weighted Average Exercise Price (in dollars per share) | $ 48.49 |
Options Exercisable Number Exercisable (in shares) | shares | 370,268 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $ 47.18 |
Note 15 - Restricted Stock Awar
Note 15 - Restricted Stock Awards and Related Information (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Nonvested, Number of Awards (in shares) | 1,106,670 | |
Nonvested, Weighted Average Grant Date Fair Value Per Share (in dollars per share) | $ 39.80 | |
Granted, Number of Awards (in shares) | 559,207 | |
Granted, Weighted Average Grant Date Fair Value Per Share (in dollars per share) | $ 42.39 | $ 93.09 |
Vested, Number of Awards (in shares) | (446,506) | |
Vested, Weighted Average Grant Date Fair Value Per Share (in dollars per share) | $ 42.44 | |
Forfeited, Number of Awards (in shares) | (47,487) | |
Forfeited, Weighted Average Grant Date Fair Value Per Share (in dollars per share) | $ 46.77 | |
Nonvested, Number of Awards (in shares) | 1,171,884 | 1,106,670 |
Nonvested, Weighted Average Grant Date Fair Value Per Share (in dollars per share) | $ 43.08 | $ 39.80 |
Note 16 - Segment and Related77
Note 16 - Segment and Related Information (Details Textual) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Number of Customers | 0 | 0 | 0 |
Note 16 - Segment and Related78
Note 16 - Segment and Related Information - Financial Information by Business Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Well Site Services Completion Services [Member] | |||
Revenues from unaffiliated customers | $ 308,077 | $ 656,862 | $ 576,040 |
Depreciation and amortization | 75,612 | 74,176 | 65,644 |
Operating income (loss) | (26,280) | 148,787 | 127,280 |
Capital expenditures | 55,336 | 107,580 | 95,236 |
Total assets | 525,012 | 641,725 | 589,626 |
Well Site Services Drilling Services [Member] | |||
Revenues from unaffiliated customers | 67,782 | 201,143 | 170,467 |
Depreciation and amortization | 26,889 | 27,081 | 24,908 |
Operating income (loss) | (17,866) | 29,574 | 22,363 |
Capital expenditures | 12,097 | 29,359 | 25,535 |
Total assets | 103,156 | 135,676 | 139,973 |
Total Well Site Services [Member] | |||
Revenues from unaffiliated customers | 375,859 | 858,005 | 746,507 |
Depreciation and amortization | 102,501 | 101,257 | 90,552 |
Operating income (loss) | (44,146) | 178,361 | 149,643 |
Capital expenditures | 67,433 | 136,939 | 120,771 |
Total assets | 628,168 | 777,401 | 729,599 |
Offshore Products [Member] | |||
Revenues from unaffiliated customers | 724,118 | 961,604 | 882,627 |
Depreciation and amortization | 27,416 | 22,496 | 17,751 |
Operating income (loss) | 146,389 | 200,098 | 156,918 |
Capital expenditures | 46,615 | 60,263 | 42,694 |
Total assets | 930,871 | 983,542 | 940,825 |
Equity in earnings of unconsolidated affiliates | 526 | 378 | (355) |
Corporate and Eliminations [Member] | |||
Depreciation and amortization | 1,340 | 1,023 | 928 |
Operating income (loss) | (47,237) | (68,204) | (59,284) |
Capital expenditures | 690 | 2,054 | 1,430 |
Total assets | 40,099 | 48,669 | 338,435 |
Revenues from unaffiliated customers | 1,099,977 | 1,819,609 | 1,629,134 |
Depreciation and amortization | 131,257 | 124,776 | 109,231 |
Operating income (loss) | 55,006 | 310,255 | 247,277 |
Capital expenditures | 114,738 | 199,256 | 164,895 |
Total assets | 1,599,138 | 1,809,612 | 2,008,859 |
Equity in earnings of unconsolidated affiliates | $ 526 | $ 378 | $ (355) |
Note 16 - Segment and Related79
Note 16 - Segment and Related Information - Financial Information by Geographic Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
UNITED STATES | |||
Revenues from unaffiliated customers | $ 797,762 | $ 1,468,202 | $ 1,261,186 |
Long-lived assets | 820,464 | 826,648 | 803,918 |
UNITED KINGDOM | |||
Revenues from unaffiliated customers | 170,536 | 188,753 | 171,439 |
Long-lived assets | 74,082 | 54,868 | 33,107 |
SINGAPORE | |||
Revenues from unaffiliated customers | 66,305 | 83,493 | 106,937 |
Long-lived assets | 26,462 | 27,438 | 25,511 |
Other Non US [Member] | |||
Revenues from unaffiliated customers | 65,374 | 79,161 | 89,572 |
Long-lived assets | 66,619 | 71,265 | 66,239 |
Revenues from unaffiliated customers | 1,099,977 | 1,819,609 | 1,629,134 |
Long-lived assets | $ 987,627 | $ 980,219 | $ 928,775 |
Note 17 - Valuation Allowance80
Note 17 - Valuation Allowances - Valuation Allowances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts [Member] | |||
Balance at Beginning of Period | $ 7,125 | $ 3,878 | $ 3,804 |
Charged to Costs and Expenses | 195 | 3,364 | 505 |
Deductions | (187) | 111 | (419) |
Translation and Other, Net | (245) | (228) | (12) |
Balance at End of Period | 6,888 | 7,125 | 3,878 |
Inventory Valuation Reserve [Member] | |||
Balance at Beginning of Period | 9,876 | 9,540 | 8,603 |
Charged to Costs and Expenses | 5,487 | 2,147 | 2,076 |
Deductions | (2,395) | (1,772) | (1,159) |
Translation and Other, Net | (70) | (39) | 20 |
Balance at End of Period | 12,898 | $ 9,876 | $ 9,540 |
Charged to Costs and Expenses | 3,970 | ||
Balance at End of Period | $ 3,970 |
Note 18 - Quarterly Financial81
Note 18 - Quarterly Financial Information (Unaudited) (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign Tax Authority [Member] | |||||||||
Operating Loss Carryforwards, Valuation Allowance | $ 600 | ||||||||
Downsizing Costs | 1,900 | $ 700 | $ 1,700 | $ 2,100 | |||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 1,200 | $ 2,300 | |||||||
Transaction Costs Related To Spin-Off, Net of Tax | $ 9,600 | $ 1,400 | |||||||
Gains (Losses) on Extinguishment of Debt | $ 100,400 | $ (6,200) | $ (100,380) | $ (6,168) | |||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 3,200 | ||||||||
Provision for Lease Losses | $ 3,400 |
Note 18 - Quarterly Financial82
Note 18 - Quarterly Financial Information (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||||||||||||||
Dec. 31, 2015 | [1] | Sep. 30, 2015 | [2] | Jun. 30, 2015 | [3] | Mar. 31, 2015 | [4] | Dec. 31, 2014 | [1] | Sep. 30, 2014 | [2] | Jun. 30, 2014 | [3] | Mar. 31, 2014 | |||
Revenues | $ 234,474 | $ 258,886 | $ 269,258 | $ 337,358 | $ 483,733 | $ 471,032 | $ 459,607 | $ 405,237 | [4] | ||||||||
Gross profit | [5] | 69,752 | 70,296 | 74,594 | 99,636 | 164,626 | 164,535 | 151,699 | 132,866 | ||||||||
Net income attributable to: | |||||||||||||||||
Continuing operations | 1,115 | 1,706 | 6,148 | 19,402 | 58,253 | 58,387 | (24,122) | 34,709 | [4] | ||||||||
Discontinued operations | $ 2 | $ 23 | $ 35 | $ 166 | $ 206 | $ (1,467) | $ 16,242 | $ 36,795 | [4] | ||||||||
Basic net income per share attributable to Oil States International, Inc. common stockholders from: | |||||||||||||||||
Continuing operations (in dollars per share) | $ 0.02 | $ 0.03 | $ 0.12 | $ 0.38 | $ 1.10 | $ 1.08 | $ (0.45) | $ 0.65 | [4] | ||||||||
Discontinued operations (in dollars per share) | (0.03) | 0.30 | 0.68 | [4] | |||||||||||||
Diluted net income per share attributable to Oil States International, Inc. common stockholders from: | |||||||||||||||||
Continuing operations (in dollars per share) | $ 0.02 | $ 0.03 | $ 0.12 | $ 0.38 | $ 1.09 | 1.07 | (0.45) | 0.64 | [4] | ||||||||
Discontinued operations (in dollars per share) | $ (0.02) | $ 0.30 | $ 0.68 | [4] | |||||||||||||
Revenues | $ 234,474 | $ 258,886 | $ 269,258 | $ 337,358 | $ 483,733 | $ 471,032 | $ 459,607 | $ 405,237 | [4] | ||||||||
Gross profit | [5] | $ 69,752 | $ 70,296 | $ 74,594 | $ 99,636 | $ 164,626 | $ 164,535 | $ 151,699 | $ 132,866 | ||||||||
[1] | In the fourth quarter of 2015, we recognized a $3.4 million leasehold restoration provision for one of our offshore products U.K. facilities, $1.9 million (pre-tax) of severance and other downsizing charges, and a higher effective tax rate driven primarily by $1.2 million in tax adjustments primarily related to non-deductible items and a $0.6 million valuation allowance recorded against the Company’s tax loss carryforwards in various foreign jurisdictions. | ||||||||||||||||
[2] | Our third quarter 2015 net income attributable to continuing operations included a higher effective tax rate driven primarily by a $3.2 million valuation allowance recorded against the Company’s deferred tax assets related to loss carryforwards and $0.7 million (pre-tax) of severance related costs. | ||||||||||||||||
[3] | In the second quarter of 2015, we recognized $1.7 million (pre-tax) of severance and other downsizing charges. In the second quarter of 2014, we recognized in our continuing operations a pre-tax loss on extinguishment of debt of $100.4 million and $9.6 million (pre-tax) representing transaction costs primarily related to the Spin-Off. | ||||||||||||||||
[4] | Our first quarter 2015 net income attributable to continuing operations included $2.1 million (pre-tax) of severance and other downsizing initiatives, and a higher effective tax rate driven primarily by a $2.3 million deferred tax adjustment for certain prior period non-deductible items. In the first quarter of 2014, we incurred $1.4 million (pre-tax) of third-party transaction costs in our continuing operations, primarily related to the Spin-Off. | ||||||||||||||||
[5] | Represents "revenues" less "product costs" and "service and other costs" included in the Company's consolidated statements of income. |