Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 23, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FORUM ENERGY TECHNOLOGIES, INC. | |
Entity Central Index Key | 1,401,257 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 90,411,485 |
Condensed consolidated statemen
Condensed consolidated statements of comprehensive income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 244,993 | $ 468,822 | $ 877,504 | $ 1,301,039 |
Cost of sales | 179,231 | 316,784 | 617,733 | 883,070 |
Gross profit | 65,762 | 152,038 | 259,771 | 417,969 |
Operating expenses | ||||
Selling, general and administrative expenses | 57,235 | 81,316 | 197,020 | 230,087 |
Transaction expenses | 193 | 1,516 | 433 | 2,326 |
Loss (gain) on sale of assets and other | 11 | (85) | (264) | 320 |
Total operating expenses | 57,439 | 82,747 | 197,189 | 232,733 |
Earnings from equity investment | 3,870 | 6,749 | 12,281 | 17,997 |
Operating income | 12,193 | 76,040 | 74,863 | 203,233 |
Other expense (income) | ||||
Interest expense | 7,453 | 7,699 | 22,687 | 23,174 |
Foreign exchange (gains) losses and other, net | (2,910) | (5,222) | (5,511) | (616) |
Total other expense | 4,543 | 2,477 | 17,176 | 22,558 |
Income before income taxes | 7,650 | 73,563 | 57,687 | 180,675 |
Provision for income tax expense | 932 | 21,332 | 13,448 | 52,395 |
Net income | 6,718 | 52,231 | 44,239 | 128,280 |
Less: Income (loss) attributable to noncontrolling interest | (2) | 5 | (27) | 2 |
Net income attributable to common stockholders | $ 6,720 | $ 52,226 | $ 44,266 | $ 128,278 |
Weighted average shares outstanding | ||||
Basic (in shares) | 90,058 | 93,331 | 89,770 | 92,728 |
Diluted (in shares) | 91,687 | 96,198 | 91,576 | 95,631 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.07 | $ 0.56 | $ 0.49 | $ 1.38 |
Diluted (in dollars per share) | $ 0.07 | $ 0.54 | $ 0.48 | $ 1.34 |
Other comprehensive income, net of tax: | ||||
Net income | $ 6,718 | $ 52,231 | $ 44,239 | $ 128,280 |
Change in foreign currency translation, net of tax of $0 | (18,747) | (34,474) | (30,553) | (21,754) |
Gain (loss) on pension liability | (2) | 0 | 68 | 2 |
Comprehensive income (loss) | (12,031) | 17,757 | 13,754 | 106,528 |
Less: comprehensive loss (income) attributable to noncontrolling interests | 64 | (32) | 118 | (20) |
Comprehensive income (loss) attributable to common stockholders | $ (11,967) | $ 17,725 | $ 13,872 | $ 106,508 |
Condensed consolidated stateme3
Condensed consolidated statements of comprehensive income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Change in foreign currency translation, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed consolidated balance
Condensed consolidated balance sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 76,185 | $ 76,579 |
Accounts receivable—trade, net | 157,591 | 287,045 |
Inventories | 504,756 | 461,515 |
Prepaid expenses and other current assets | 39,430 | 32,985 |
Costs and estimated profits in excess of billings | 18,449 | 14,646 |
Deferred income taxes, net | 20,380 | 22,389 |
Total current assets | 816,791 | 895,159 |
Property and equipment, net of accumulated depreciation | 196,804 | 189,974 |
Deferred financing costs, net | 11,189 | 13,107 |
Intangibles | 257,050 | 271,739 |
Goodwill | 799,601 | 798,481 |
Investment in unconsolidated subsidiary | 56,457 | 49,675 |
Other long-term assets | 3,494 | 3,493 |
Total assets | 2,141,386 | 2,221,628 |
Current liabilities | ||
Current portion of long-term debt | 335 | 840 |
Accounts payable—trade | 92,244 | 127,757 |
Accrued liabilities | 79,241 | 126,890 |
Deferred revenue | 9,342 | 10,919 |
Billings in excess of costs and profits recognized | 9,111 | 15,785 |
Total current liabilities | 190,273 | 282,191 |
Long-term debt, net of current portion | 402,556 | 428,010 |
Deferred income taxes, net | 94,205 | 98,188 |
Other long-term liabilities | 23,409 | 17,318 |
Total liabilities | $ 710,443 | $ 825,707 |
Commitments and contingencies | ||
Equity | ||
Common stock, $0.01 par value, 296,000,000 shares authorized, 98,522,054 and 97,865,278 shares issued | $ 985 | $ 979 |
Additional paid-in capital | 886,221 | 864,313 |
Treasury stock at cost, 8,141,445 and 8,108,983 shares | (133,126) | (132,480) |
Retained earnings | 743,771 | 699,505 |
Accumulated other comprehensive income (loss) | (67,355) | (36,961) |
Total stockholders’ equity | 1,430,496 | 1,395,356 |
Noncontrolling interest in subsidiary | 447 | 565 |
Total equity | 1,430,943 | 1,395,921 |
Total liabilities and equity | $ 2,141,386 | $ 2,221,628 |
Condensed consolidated balance5
Condensed consolidated balance sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 296,000,000 | 296,000,000 |
Common Stock, shares issued | 98,522,054 | 97,865,278 |
Treasury Stock, shares, at cost | 8,141,445 | 8,108,983 |
Condensed consolidated stateme6
Condensed consolidated statements of cash flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 44,239 | $ 128,280 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation expense | 28,721 | 28,274 |
Amortization of intangible assets | 20,558 | 20,608 |
Share-based compensation expense | 17,090 | 14,334 |
Deferred income taxes | (1,528) | (4,477) |
Earnings from equity investment, net of distributions | (6,782) | 3,092 |
Other | 4,523 | 3,644 |
Changes in operating assets and liabilities | ||
Accounts receivable—trade | 129,601 | (67,793) |
Inventories | (24,729) | (14,520) |
Prepaid expenses and other current assets | (2,019) | (6,872) |
Accounts payable, deferred revenue and other accrued liabilities | (81,496) | 66,744 |
Costs and estimated profits in excess of billings, net | (10,472) | 8,439 |
Net cash provided by operating activities | 117,706 | 179,753 |
Cash flows from investing activities | ||
Acquisition of businesses, net of cash acquired | (60,836) | (38,289) |
Capital expenditures for property and equipment | (28,046) | (39,932) |
Proceeds from sale of business, property and equipment | 1,699 | 8,735 |
Net cash used in investing activities | (87,183) | (69,486) |
Cash flows from financing activities | ||
Borrowings under Credit Facility | 79,943 | 0 |
Repayment of long-term debt | (105,985) | (91,760) |
Excess tax benefits from stock based compensation | 206 | 7,291 |
Repurchases of stock | (6,246) | (1,328) |
Proceeds from stock issuance | 4,618 | 10,332 |
Deferred financing costs | 0 | (6) |
Net cash used in financing activities | (27,464) | (75,471) |
Effect of exchange rate changes on cash | (3,453) | (294) |
Net increase (decrease) in cash and cash equivalents | (394) | 34,502 |
Cash and cash equivalents | ||
Beginning of period | 76,579 | 39,582 |
End of period | $ 76,185 | $ 74,084 |
Organization and basis of prese
Organization and basis of presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and basis of presentation | Organization and basis of presentation Forum Energy Technologies, Inc. (the "Company"), a Delaware corporation, is a global oilfield products company, serving the subsea, drilling, completion, production and infrastructure sectors of the oil and natural gas industry. The Company designs, manufactures and distributes products and engages in aftermarket services, parts supply and related services that complement the Company’s product offering. Basis of presentation The accompanying unaudited condensed consolidated financial statements of the Company include the accounts of the Company and its subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The Company's investment in an operating entity where the Company has the ability to exert significant influence, but does not control operating and financial policies, is accounted for using the equity method. The Company's share of the net income of this entity is recorded as "Earnings from equity investment" in the condensed consolidated statements of comprehensive income. The investment in this entity is included in "Investment in unconsolidated subsidiary" in the condensed consolidated balance sheets. The Company reports its share of equity earnings within operating income as the investee's operations are integral to the operations of the Company. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for the fair statement of the Company's financial position, results of operations and cash flows have been included. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or any other interim period. These interim financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America ("GAAP") for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2014 , which are included in the Company’s 2014 Annual Report on Form 10-K filed with the SEC on February 27, 2015 (the "Annual Report"). |
Recent accounting pronouncement
Recent accounting pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Recent accounting pronouncements | Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("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 September 2015, the FASB issued Accounting Standards Update ("ASU") No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. This new standard specifies that an acquirer in a business combination should recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, eliminating the current requirement to retrospectively account for these adjustments. Additionally, the full effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts should be recognized in the same period as the adjustments to the provisional amounts. The new standard will be effective for the Company for the fiscal year beginning January 1, 2016 and interim periods thereafter. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which requires companies to measure inventory at the lower of cost or net realizable value rather than at the lower of cost or market. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new standard will be effective for the Company for the fiscal year beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impacts of the adoption of this guidance. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires deferred financing costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. The new standard will be effective for the Company for the fiscal year beginning January 1, 2016 and interim periods thereafter. The guidance is not expected to have a material impact on the consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern. The new standard requires management to evaluate whether there are conditions and events that raise substantial doubt about an entity's ability to continue as a going concern for both annual and interim reporting periods. The guidance is effective for the Company for the fiscal year beginning January 1, 2016 and interim periods thereafter. The guidance is not expected to have a material impact on the consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The new standard is to be effective for the fiscal year beginning after December 15, 2017. Companies are able to early adopt the pronouncement, however not before fiscal years beginning after December 15, 2016. The Company is currently evaluating the impacts of the adoption and the implementation approach to be used. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2015 Acquisition Effective February 2, 2015, the Company completed the acquisition of J-Mac Tool, Inc. ("J-Mac") for consideration of $64.2 million . J-Mac is a Fort Worth, Texas based manufacturer of high quality hydraulic fracturing pumps, power ends, fluid ends and other pump accessories. J-Mac is included in the Production & Infrastructure segment. As the value of certain assets and liabilities are preliminary in nature, they are subject to adjustment as additional information is obtained about the facts and circumstances that existed at the acquisition date, including any post-closing purchase price adjustments. When the valuation is final, any changes to the preliminary valuation of acquired assets and liabilities could result in adjustments to identified intangibles and goodwill. The following table summarizes the current preliminary fair values of the assets acquired and liabilities assumed at the date of the acquisition (in thousands): 2015 Acquisition Current assets, net of cash acquired $ 37,095 Property and equipment 11,506 Intangible assets (primarily customer relationships) 10,400 Tax-deductible goodwill 15,350 Current liabilities (10,138 ) Long-term liabilities (22 ) Net assets acquired $ 64,191 2014 Acquisition Effective May 1, 2014, the Company completed the acquisition of Quality Wireline & Cable, Inc. ("Quality") for consideration of $38.3 million . Quality is a Calgary, Alberta based manufacturer of high-performance cased-hole electro-mechanical wireline cables and specialty cables for the oil and gas industry. Quality is included in the Drilling & Subsea segment. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of the acquisition (in thousands): 2014 Acquisition Current assets, net of cash acquired $ 7,596 Property and equipment 3,837 Intangible assets (primarily customer relationships) 11,527 Non-tax-deductible goodwill 20,573 Current liabilities (1,615 ) Deferred tax liabilities (3,629 ) Net assets acquired $ 38,289 Revenues and net income related to the acquisitions were not significant for the year ended December 31, 2014 or the nine months ended September 30, 2015 . Pro forma results of operations for the 2015 and 2014 acquisitions have not been presented because the effects were not material to the consolidated financial statements on either an individual or aggregate basis. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The Company's significant components of inventory at September 30, 2015 and December 31, 2014 were as follows (in thousands): September 30, December 31, Raw materials and parts $ 156,595 $ 153,768 Work in process 51,636 50,913 Finished goods 330,180 286,290 Gross inventories 538,411 490,971 Inventory reserve (33,655 ) (29,456 ) Inventories $ 504,756 $ 461,515 |
Goodwill and intangible assets
Goodwill and intangible assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill The changes in the carrying amount of goodwill from December 31, 2014 to September 30, 2015 , were as follows (in thousands): Drilling & Subsea Production & Infrastructure Total Goodwill Balance at December 31, 2014 net $ 719,860 $ 78,621 $ 798,481 Acquisitions — 15,350 15,350 Impact of non-U.S. local currency translation (13,756 ) (474 ) (14,230 ) Goodwill Balance at September 30, 2015 net $ 706,104 $ 93,497 $ 799,601 Goodwill and intangible assets with indefinite lives are assessed for impairment annually or whenever an event indicating impairment may have occurred. During the quarter ended September 30, 2015 , the Company elected to change the date of the Company's annual assessments of goodwill and indefinite lived intangible assets impairment from December 31 to October 1. This is a change in method of applying an accounting principle, which management believes is a preferable alternative as it better aligns the timing of the assessment with our planning and forecasting process and alleviates constraints on accounting resources during our annual reporting process. The change in the assessment date does not delay, accelerate, or avoid a potential impairment charge. At December 31, 2014, the Company performed its annual impairment test on each of the reporting units and concluded that there had been no impairment because the estimated fair values of each of those reporting units exceeded its carrying value. Relevant events and circumstances which could have a negative impact on goodwill include macroeconomic conditions; industry and market conditions, such as commodity prices; operating cost factors; overall financial performance; the impact of dispositions and acquisitions; and other entity-specific events. Further declines in commodity prices or sustained lower valuation for the Company's common stock could indicate a reduction in the estimate of reporting unit fair value which, in turn, could lead to an impairment of reporting unit goodwill. The Company will continue to monitor events and circumstances which could have a negative impact on estimates of reporting unit fair value. Commodity prices have remained at low levels and the active rig count has continued to decline resulting in a significant decline in the Company’s market capitalization. While the Company incorporated a downturn into its forecasts in the previous annual test, should current conditions worsen, or continue for an extended period of time, the Company may identify and record an impairment charge related to the reporting units previously identified or other intangible assets as a result of an interim impairment test. Intangible assets Intangible assets consisted of the following as of September 30, 2015 and December 31, 2014 , respectively (in thousands): September 30, 2015 Gross carrying amount Accumulated amortization Net amortizable intangibles Amortization period (in years) Customer relationships $ 282,989 $ (98,177 ) $ 184,812 4-15 Patents and technology 34,425 (9,721 ) 24,704 5-17 Non-compete agreements 7,339 (6,233 ) 1,106 3-6 Trade names 49,834 (17,302 ) 32,532 10-15 Distributor relationships 22,160 (13,494 ) 8,666 8-15 Trademark 5,230 — 5,230 Indefinite Intangible Assets Total $ 401,977 $ (144,927 ) $ 257,050 December 31, 2014 Gross carrying amount Accumulated amortization Net amortizable intangibles Amortization period (in years) Customer relationships $ 284,120 $ (84,947 ) $ 199,173 4-15 Patents and technology 31,069 (8,074 ) 22,995 5-17 Non-compete agreements 7,086 (5,761 ) 1,325 3-6 Trade names 48,149 (14,747 ) 33,402 10-15 Distributor relationships 22,160 (12,546 ) 9,614 8-15 Trademark 5,230 — 5,230 Indefinite Intangible Assets Total $ 397,814 $ (126,075 ) $ 271,739 |
Investment in Unconsolidated Su
Investment in Unconsolidated Subsidiary | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Subsidiary | Investment in unconsolidated subsidiary Effective July 1, 2013, the Company jointly purchased Global Tubing, LLC ("Global Tubing") with an equal partner, with management retaining a small interest. Global Tubing is a Dayton, Texas based provider of coiled tubing strings and related services. The Company's equity investment is reported in the Production & Infrastructure segment and is accounted for using the equity method of accounting. As Global Tubing's products are complementary to the Company’s well intervention and stimulation products and the investment's business is integral to the Company's operations, the earnings from the equity investment are included within operating income. Condensed financial data for the equity investment in the unconsolidated subsidiary is summarized as follows (in thousands): Three months ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net revenues $ 26,033 $ 37,204 $ 81,513 $ 102,113 Gross profit 11,731 18,253 36,505 49,160 Net income 8,063 14,060 25,588 37,659 The Company's earnings from equity investment 3,870 6,749 12,281 17,997 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Notes payable and lines of credit as of September 30, 2015 and December 31, 2014 consisted of the following (in thousands): September 30, December 31, 6.25% Senior Notes due October 2021 $ 402,497 $ 402,801 Senior secured revolving credit facility — 25,000 Other debt 394 1,049 Total debt 402,891 428,850 Less: current maturities (335 ) (840 ) Long-term debt $ 402,556 $ 428,010 Senior Notes Due 2021 The Senior Notes bear interest at a rate of 6.250% per annum, payable on April 1 and October 1 of each year, and mature on October 1, 2021. The Senior Notes are senior unsecured obligations, and are guaranteed on a senior unsecured basis by the Company’s subsidiaries that guarantee the Credit Facility and rank junior to, among other indebtedness, the Credit Facility to the extent of the value of the collateral securing the Credit Facility. Credit Facility The Company has a Credit Facility with several financial institutions as lenders that provides for a $600.0 million credit facility with up to $75.0 million available for letters of credit and up to $25.0 million in swingline loans. Subject to terms of the Credit Facility, the Company has the ability to increase the Credit Facility by an additional $300.0 million . The Credit Facility matures in November 2018. Weighted average interest rates under the Credit Facility for the nine months ended September 30, 2015 and for the twelve months ended December 31, 2014 were approximately 2.00% . As of September 30, 2015 , we had no borrowings outstanding under the Credit Facility, $13.3 million of outstanding letters of credit and the capacity to borrow an additional $586.7 million subject to certain limitations in the Credit Facility. There have been no changes to the financial covenants disclosed in Item 8 of the Annual Report and the Company was in compliance with all financial covenants at September 30, 2015 . |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company's effective tax rate was 23.3% for the nine months ended September 30, 2015 and 29.0% for the nine months ended September 30, 2014 . The tax rate is lower than the comparable period in 2014 primarily due to a higher proportion of our earnings being generated outside the United States in jurisdictions subject to lower tax rates. The effective tax rate can vary from period to period depending on the Company's relative mix of U.S. and non-U.S. earnings. The effective tax rate was 12.2% for the three months ended September 30, 2015 and 29.0% for the three months ended September 30, 2014 . The tax rate for the three months ended September 30, 2015 is lower than the comparable period in 2014 primarily due to a higher proportion of our earnings being generated outside the United States in jurisdictions subject to lower tax rates. |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements At September 30, 2015 , the carrying value of the Credit Facility was $0.0 million . Substantially all of the debt incurs interest at a variable interest rate and, therefore, the carrying amount approximates fair value. The fair value of the debt is classified as a Level 2 measurement because interest rates charged are similar to other financial instruments with similar terms and maturities. The fair value of the Company’s Senior Notes is estimated using Level 2 inputs in the fair value hierarchy and is based on quoted prices for those or similar instruments. At September 30, 2015 , the fair value and the carrying value of the Company’s Senior Notes approximated $351.8 million and $402.5 million , respectively. At December 31, 2014 , the fair value and the carrying value of the Company’s Senior Notes approximated $378.1 million and $402.8 million , respectively. There were no outstanding financial assets as of September 30, 2015 and December 31, 2014 that required measuring the amounts at fair value. The Company did not change its valuation techniques associated with recurring fair value measurements from prior periods and there were no transfers between levels of the fair value hierarchy during the nine months ended September 30, 2015 . |
Business segments
Business segments | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Business segments | Business segments The Company’s operations are divided into the following two operating segments, which are our reportable segments: Drilling & Subsea ("D&S") and Production & Infrastructure ("P&I"). The amounts indicated below as "Corporate" relate to costs and assets not allocated to the reportable segments. Summary financial data by segment follows (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Revenue: Drilling & Subsea $ 139,073 $ 307,454 $ 523,850 $ 848,474 Production & Infrastructure 106,186 161,696 354,278 453,640 Intersegment eliminations (266 ) (328 ) (624 ) (1,075 ) Total Revenue $ 244,993 $ 468,822 $ 877,504 $ 1,301,039 Operating income: Drilling & Subsea $ 6,675 $ 57,929 $ 51,261 $ 155,330 Production & Infrastructure 10,715 29,816 45,108 80,260 Corporate (4,993 ) (10,274 ) (21,337 ) (29,711 ) Total segment operating income 12,397 77,471 75,032 205,879 Transaction expenses 193 1,516 433 2,326 Loss (gain) on sale of assets and other 11 (85 ) (264 ) 320 Income from operations $ 12,193 $ 76,040 $ 74,863 $ 203,233 A summary of consolidated assets by reportable segment is as follows (in thousands): September 30, December 31, Assets Drilling & Subsea $ 1,525,824 $ 1,674,934 Production & Infrastructure 546,712 488,225 Corporate 68,850 58,469 Total assets $ 2,141,386 $ 2,221,628 Corporate assets include, among other items, prepaid assets, cash and deferred loan costs. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share The calculation of basic and diluted earnings per share for each period presented was as follows (dollars and shares in thousands, except per share amounts): Three months ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net Income attributable to common stockholders $ 6,720 $ 52,226 $ 44,266 $ 128,278 Average shares outstanding (basic) 90,058 93,331 89,770 92,728 Common stock equivalents 1,629 2,867 1,806 2,903 Diluted shares 91,687 96,198 91,576 95,631 Earnings per share Basic earnings per share $ 0.07 $ 0.56 $ 0.49 $ 1.38 Diluted earnings per share $ 0.07 $ 0.54 $ 0.48 $ 1.34 The diluted earnings per share calculation excludes approximately 2.0 million and 0.4 million stock options for the three months ended September 30, 2015 and 2014 , respectively, and 1.8 million and 0.5 million stock options for the nine months ended September 30, 2015 and 2014 , respectively, because they were anti-dilutive as the option exercise price was greater than the average market price of the common stock. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies In the ordinary course of business, the Company is, and in the future could be, involved in various pending or threatened legal actions that may or may not be covered by insurance. Management has reviewed such pending judicial and legal proceedings, the reasonably anticipated costs and expenses in connection with such proceedings, and the availability and limits of insurance coverage, and has established reserves that are believed to be appropriate in light of those outcomes that are considered to be probable and can be reasonably estimated. The reserves accrued at September 30, 2015 and December 31, 2014 , respectively, are immaterial. It is management's opinion that the Company's ultimate liability, if any, with respect to these actions is not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Stockholders' equity
Stockholders' equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders' equity Share-based compensation During the nine months ended September 30, 2015 , the Company granted 564,950 options and 987,411 shares of restricted stock or restricted stock units, which includes 161,660 performance share awards with a market condition. The stock options were granted with exercise prices of $18.68 and $13.92 . Of the restricted stock or restricted stock units granted, 765,523 vest ratably over four years on each anniversary of the grant date. 60,228 shares of restricted stock or restricted stock units were granted to the non-employee members of the Board of Directors, which have a twelve month vesting period from the date of grant. The performance share awards granted may settle for between zero and two shares of the Company's common stock. The number of shares issued pursuant to the performance share awards will be determined based on the total shareholder return of the Company's common stock as compared to a group of peer companies, measured annually over a one year , two year and three -year performance period. |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions The Company has sold and purchased equipment and services to and from various affiliates of certain directors. The dollar amounts related to these related party activities are not material to the Company’s condensed consolidated financial statements. |
Condensed consolidating financi
Condensed consolidating financial statements | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed consolidating financial statements | Condensed consolidating financial statements The Senior Notes are guaranteed by our domestic subsidiaries which are 100% owned, directly or indirectly, by the Company. The guarantees are full and unconditional, joint and several and on an unsecured basis. Condensed consolidating statements of comprehensive income Three months ended September 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Net sales $ — $ 182,986 $ 83,751 $ (21,744 ) $ 244,993 Cost of sales — 140,444 60,494 (21,707 ) 179,231 Gross profit — 42,542 23,257 (37 ) 65,762 Operating expenses Selling, general and administrative expenses — 41,157 16,078 — 57,235 Transaction expenses — 193 — — 193 Loss (gain) on sale of assets and other — (15 ) 26 — 11 Total operating expenses — 41,335 16,104 — 57,439 Earnings from equity investment — 3,870 — — 3,870 Equity earnings from affiliate, net of tax 11,568 8,286 — (19,854 ) — Operating income 11,568 13,363 7,153 (19,891 ) 12,193 Other expense (income) Interest expense (income) 7,458 (1 ) (4 ) — 7,453 Foreign exchange (gains) losses and other, net — (253 ) (2,657 ) — (2,910 ) Total other expense (income) 7,458 (254 ) (2,661 ) — 4,543 Income before income taxes 4,110 13,617 9,814 (19,891 ) 7,650 Provision for income tax expense (2,610 ) 2,049 1,493 — 932 Net income 6,720 11,568 8,321 (19,891 ) 6,718 Less: Income (loss) attributable to noncontrolling interest — — (2 ) — (2 ) Net income attributable to common stockholders 6,720 11,568 8,323 (19,891 ) 6,720 Other comprehensive income, net of tax: Net income 6,720 11,568 8,321 (19,891 ) 6,718 Change in foreign currency translation, net of tax of $0 (18,747 ) (18,747 ) (18,747 ) 37,494 (18,747 ) Change in pension liability (2 ) (2 ) (2 ) 4 (2 ) Comprehensive income (loss) (12,029 ) (7,181 ) (10,428 ) 17,607 (12,031 ) Less: comprehensive (income) loss attributable to noncontrolling interests — — 64 — 64 Comprehensive income (loss) attributable to common stockholders $ (12,029 ) $ (7,181 ) $ (10,364 ) $ 17,607 $ (11,967 ) Condensed consolidating statements of comprehensive income Three months ended September 30, 2014 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Net sales $ — $ 330,772 $ 179,458 $ (41,408 ) $ 468,822 Cost of sales — 230,938 127,423 (41,577 ) 316,784 Gross profit — 99,834 52,035 169 152,038 Operating expenses Selling, general and administrative expenses — 63,228 18,088 — 81,316 Other operating expense — 1,419 12 — 1,431 Total operating expenses — 64,647 18,100 — 82,747 Earnings from equity investment — 6,749 — — 6,749 Equity earnings from affiliates, net of tax 57,161 28,048 — (85,209 ) — Operating income 57,161 69,984 33,935 (85,040 ) 76,040 Other expense (income) Interest expense (income) 7,593 75 31 — 7,699 Interest income with affiliate — (1,887 ) — 1,887 — Interest expense with affiliate — — 1,887 (1,887 ) — Foreign exchange (gains) losses and other, net — (744 ) (4,478 ) — (5,222 ) Total other expense (income) 7,593 (2,556 ) (2,560 ) — 2,477 Income before income taxes 49,568 72,540 36,495 (85,040 ) 73,563 Provision for income tax expense (2,658 ) 15,379 8,611 — 21,332 Net income 52,226 57,161 27,884 (85,040 ) 52,231 Less: Income (loss) attributable to noncontrolling interest — — 5 — 5 Net income attributable to common stockholders 52,226 57,161 27,879 (85,040 ) 52,226 Other comprehensive income, net of tax: Net income 52,226 57,161 27,884 (85,040 ) 52,231 Change in foreign currency translation, net of tax of $0 (34,474 ) (34,474 ) (34,474 ) 68,948 (34,474 ) Comprehensive income (loss) 17,752 22,687 (6,590 ) (16,092 ) 17,757 Less: comprehensive (income) loss attributable to noncontrolling interests — — (32 ) — (32 ) Comprehensive income (loss) attributable to common stockholders $ 17,752 $ 22,687 $ (6,622 ) $ (16,092 ) $ 17,725 Condensed consolidating statements of comprehensive income Nine months ended September 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Net sales $ — $ 661,419 $ 306,431 $ (90,346 ) $ 877,504 Cost of sales — 484,338 221,940 (88,545 ) 617,733 Gross profit — 177,081 84,491 (1,801 ) 259,771 Operating expenses Selling, general and administrative expenses — 150,955 46,065 — 197,020 Transaction expenses — 433 — — 433 Loss (gain) on sale of assets and other — (73 ) (191 ) — (264 ) Total operating expenses — 151,315 45,874 — 197,189 Earnings from equity investment — 12,281 — — 12,281 Equity earnings from affiliates, net of tax 59,002 35,116 — (94,118 ) — Operating income 59,002 73,163 38,617 (95,919 ) 74,863 Other expense (income) Interest expense (income) 22,670 13 4 — 22,687 Foreign exchange (gains) losses and other, net — (407 ) (5,104 ) — (5,511 ) Total other expense (income) 22,670 (394 ) (5,100 ) — 17,176 Income before income taxes 36,332 73,557 43,717 (95,919 ) 57,687 Provision for income tax expense (7,934 ) 14,555 6,827 — 13,448 Net income 44,266 59,002 36,890 (95,919 ) 44,239 Less: Income (loss) attributable to noncontrolling interest — — (27 ) — (27 ) Net income attributable to common stockholders 44,266 59,002 36,917 (95,919 ) 44,266 Other comprehensive income, net of tax: Net income 44,266 59,002 36,890 (95,919 ) 44,239 Change in foreign currency translation, net of tax of $0 (30,553 ) (30,553 ) (30,553 ) 61,106 (30,553 ) Change in pension liability 68 68 68 (136 ) 68 Comprehensive income (loss) 13,781 28,517 6,405 (34,949 ) 13,754 Less: comprehensive (income) loss attributable to noncontrolling interests — — 118 — 118 Comprehensive income (loss) attributable to common stockholders $ 13,781 $ 28,517 $ 6,523 $ (34,949 ) $ 13,872 Condensed consolidating statements of comprehensive income Nine Months Ended September 30, 2014 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Net sales $ — $ 941,885 $ 480,049 $ (120,895 ) $ 1,301,039 Cost of sales — 659,444 342,269 (118,643 ) 883,070 Gross profit — 282,441 137,780 (2,252 ) 417,969 Operating expenses Selling, general and administrative expenses — 176,331 53,756 — 230,087 Transaction expenses — 2,326 — — 2,326 Loss (gain) on sale of assets and other — 639 (319 ) — 320 Total operating expenses — 179,296 53,437 — 232,733 Earnings from equity investment — 17,997 — — 17,997 Equity earnings from affiliates, net of tax 143,310 59,688 — (202,998 ) — Operating income 143,310 180,830 84,343 (205,250 ) 203,233 Other expense (income) Interest expense (income) 23,126 77 (29 ) — 23,174 Interest income with affiliate — (5,770 ) — 5,770 — Interest expense with affiliate — — 5,770 (5,770 ) — Foreign exchange (gains) losses and other, net — 274 (890 ) — (616 ) Total other expense (income) 23,126 (5,419 ) 4,851 — 22,558 Income before income taxes 120,184 186,249 79,492 (205,250 ) 180,675 Provision for income tax expense (8,094 ) 42,939 17,550 — 52,395 Net income 128,278 143,310 61,942 (205,250 ) 128,280 Less: Income (loss) attributable to noncontrolling interest — — 2 — 2 Net income attributable to common stockholders 128,278 143,310 61,940 (205,250 ) 128,278 Other comprehensive income, net of tax: Net income 128,278 143,310 61,942 (205,250 ) 128,280 Change in foreign currency translation, net of tax of $0 (21,754 ) (21,754 ) (21,754 ) 43,508 (21,754 ) Change in pension liability 2 2 2 (4 ) 2 Comprehensive income (loss) 106,526 121,558 40,190 (161,746 ) 106,528 Less: comprehensive (income) loss attributable to noncontrolling interests — — (20 ) — (20 ) Comprehensive income (loss) attributable to common stockholders $ 106,526 $ 121,558 $ 40,170 $ (161,746 ) $ 106,508 Condensed consolidating balance sheets September 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets Current assets Cash and cash equivalents $ — $ 16,104 $ 60,081 $ — $ 76,185 Accounts receivable—trade, net — 101,485 56,106 — 157,591 Inventories — 386,531 128,007 (9,782 ) 504,756 Cost and profits in excess of billings — 8,295 10,154 — 18,449 Other current assets — 51,104 8,706 — 59,810 Total current assets — 563,519 263,054 (9,782 ) 816,791 Property and equipment, net of accumulated depreciation — 161,710 35,094 — 196,804 Deferred financing costs, net 11,189 — — — 11,189 Intangibles — 193,333 63,717 — 257,050 Goodwill — 538,248 261,353 — 799,601 Investment in unconsolidated subsidiary — 56,457 — — 56,457 Investment in affiliates 1,362,309 593,121 — (1,955,430 ) — Long-term advances to affiliates 472,899 — 59,628 (532,527 ) — Other long-term assets — 2,574 920 — 3,494 Total assets $ 1,846,397 $ 2,108,962 $ 683,766 $ (2,497,739 ) $ 2,141,386 Liabilities and equity Current liabilities Current portion of long-term debt $ — $ 325 $ 10 $ — $ 335 Accounts payable—trade — 69,069 23,175 — 92,244 Accrued liabilities 13,405 47,117 18,719 — 79,241 Deferred revenue — 2,582 6,760 — 9,342 Billings in excess of costs and profits — 2,432 6,679 — 9,111 Total current liabilities 13,405 121,525 55,343 — 190,273 Long-term debt, net of current portion 402,497 44 15 — 402,556 Long-term payables to affiliates — 532,528 — (532,528 ) — Deferred income taxes, net — 75,002 19,203 — 94,205 Other long-term liabilities — 17,554 5,855 — 23,409 Total liabilities 415,902 746,653 80,416 (532,528 ) 710,443 Total stockholder's equity 1,430,495 1,362,309 602,903 (1,965,211 ) 1,430,496 Noncontrolling interest in subsidiary — — 447 — 447 Equity 1,430,495 1,362,309 603,350 (1,965,211 ) 1,430,943 Total liabilities and equity $ 1,846,397 $ 2,108,962 $ 683,766 $ (2,497,739 ) $ 2,141,386 Condensed consolidating balance sheets December 31, 2014 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets Current assets Cash and cash equivalents $ 5,551 $ 4,006 $ 67,022 $ — $ 76,579 Accounts receivable—trade, net — 194,964 92,081 — 287,045 Inventories — 343,902 125,594 (7,981 ) 461,515 Cost and profits in excess of billings — 4,871 9,775 — 14,646 Other current assets — 38,920 16,454 — 55,374 Total current assets 5,551 586,663 310,926 (7,981 ) 895,159 Property and equipment, net of accumulated depreciation — 153,016 36,958 — 189,974 Deferred financing costs, net 13,107 — — — 13,107 Intangibles — 198,819 72,920 — 271,739 Goodwill — 522,898 275,583 — 798,481 Investment in unconsolidated subsidiary — 49,675 — — 49,675 Investment in affiliates 1,333,701 590,421 — (1,924,122 ) — Long-term advances to affiliates 483,534 — 22,531 (506,065 ) — Other long-term assets — 2,760 733 — 3,493 Total assets $ 1,835,893 $ 2,104,252 $ 719,651 $ (2,438,168 ) $ 2,221,628 Liabilities and equity Current liabilities Accounts payable—trade $ — $ 85,179 $ 42,578 $ — $ 127,757 Accrued liabilities 12,733 84,824 29,333 — 126,890 Current portion of debt and other current liabilities — 5,800 21,744 — 27,544 Total current liabilities 12,733 175,803 93,655 — 282,191 Long-term debt, net of current portion 427,801 183 26 — 428,010 Long-term payables to affiliates — 506,065 — (506,065 ) — Deferred income taxes, net — 77,311 20,877 — 98,188 Other long-term liabilities — 11,189 6,129 — 17,318 Total liabilities 440,534 770,551 120,687 (506,065 ) 825,707 Total stockholder's equity 1,395,359 1,333,701 598,399 (1,932,103 ) 1,395,356 Noncontrolling interest in subsidiary — — 565 — 565 Equity 1,395,359 1,333,701 598,964 (1,932,103 ) 1,395,921 Total liabilities and equity $ 1,835,893 $ 2,104,252 $ 719,651 $ (2,438,168 ) $ 2,221,628 Condensed consolidating statements of cash flows Nine months ended September 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from (used in) operating activities $ (6,543 ) $ 79,698 $ 44,551 $ — $ 117,706 Cash flows from investing activities Acquisition of businesses, net of cash acquired — (60,836 ) — — (60,836 ) Capital expenditures for property and equipment — (19,858 ) (8,188 ) — (28,046 ) Long-term loans and advances to affiliates 27,719 40,544 — (68,263 ) — Other — 992 707 — 1,699 Net cash provided by (used in) investing activities $ 27,719 $ (39,158 ) $ (7,481 ) $ (68,263 ) $ (87,183 ) Cash flows from financing activities Borrowings (repayment) of long-term debt (25,305 ) (723 ) (14 ) — (26,042 ) Long-term loans and advances to affiliates — (27,719 ) (40,544 ) 68,263 — Other (1,422 ) — — — (1,422 ) Net cash provided by (used in) financing activities $ (26,727 ) $ (28,442 ) $ (40,558 ) $ 68,263 $ (27,464 ) Effect of exchange rate changes on cash — — (3,453 ) — (3,453 ) Net increase (decrease) in cash and cash equivalents (5,551 ) 12,098 (6,941 ) — (394 ) Cash and cash equivalents Beginning of period 5,551 4,006 67,022 — 76,579 End of period $ — $ 16,104 $ 60,081 $ — $ 76,185 Condensed consolidating statements of cash flows Nine Months Ended September 30, 2014 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from (used in) operating activities $ (6,101 ) $ 120,323 $ 65,531 $ — $ 179,753 Cash flows from investing activities Acquisition of businesses, net of cash acquired — — (38,289 ) — (38,289 ) Capital expenditures for property and equipment — (30,808 ) (9,124 ) — (39,932 ) Long-term loans and advances to affiliates 88,410 — — (88,410 ) — Other — 8,421 314 — 8,735 Net cash provided by (used in) investing activities $ 88,410 $ (22,387 ) $ (47,099 ) $ (88,410 ) $ (69,486 ) Cash flows from financing activities Repayment of long-term debt (91,307 ) (328 ) (125 ) — (91,760 ) Long-term loans and advances to affiliates — (92,478 ) 4,068 88,410 — Other 8,998 7,291 — — 16,289 Net cash provided by (used in) financing activities $ (82,309 ) $ (85,515 ) $ 3,943 $ 88,410 $ (75,471 ) Effect of exchange rate changes on cash — — (294 ) — (294 ) Net increase (decrease) in cash and cash equivalents — 12,421 22,081 — 34,502 Cash and cash equivalents Beginning of period — — 39,582 — 39,582 End of period $ — $ 12,421 $ 61,663 $ — $ 74,084 |
Recent accounting pronounceme22
Recent accounting pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Recent accounting pronouncements | Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("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 September 2015, the FASB issued Accounting Standards Update ("ASU") No. 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. This new standard specifies that an acquirer in a business combination should recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, eliminating the current requirement to retrospectively account for these adjustments. Additionally, the full effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts should be recognized in the same period as the adjustments to the provisional amounts. The new standard will be effective for the Company for the fiscal year beginning January 1, 2016 and interim periods thereafter. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which requires companies to measure inventory at the lower of cost or net realizable value rather than at the lower of cost or market. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new standard will be effective for the Company for the fiscal year beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impacts of the adoption of this guidance. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires deferred financing costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. The new standard will be effective for the Company for the fiscal year beginning January 1, 2016 and interim periods thereafter. The guidance is not expected to have a material impact on the consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern. The new standard requires management to evaluate whether there are conditions and events that raise substantial doubt about an entity's ability to continue as a going concern for both annual and interim reporting periods. The guidance is effective for the Company for the fiscal year beginning January 1, 2016 and interim periods thereafter. The guidance is not expected to have a material impact on the consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The new standard is to be effective for the fiscal year beginning after December 15, 2017. Companies are able to early adopt the pronouncement, however not before fiscal years beginning after December 15, 2016. The Company is currently evaluating the impacts of the adoption and the implementation approach to be used. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Acquisitions | The following table summarizes the current preliminary fair values of the assets acquired and liabilities assumed at the date of the acquisition (in thousands): 2015 Acquisition Current assets, net of cash acquired $ 37,095 Property and equipment 11,506 Intangible assets (primarily customer relationships) 10,400 Tax-deductible goodwill 15,350 Current liabilities (10,138 ) Long-term liabilities (22 ) Net assets acquired $ 64,191 The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of the acquisition (in thousands): 2014 Acquisition Current assets, net of cash acquired $ 7,596 Property and equipment 3,837 Intangible assets (primarily customer relationships) 11,527 Non-tax-deductible goodwill 20,573 Current liabilities (1,615 ) Deferred tax liabilities (3,629 ) Net assets acquired $ 38,289 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The Company's significant components of inventory at September 30, 2015 and December 31, 2014 were as follows (in thousands): September 30, December 31, Raw materials and parts $ 156,595 $ 153,768 Work in process 51,636 50,913 Finished goods 330,180 286,290 Gross inventories 538,411 490,971 Inventory reserve (33,655 ) (29,456 ) Inventories $ 504,756 $ 461,515 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill from December 31, 2014 to September 30, 2015 , were as follows (in thousands): Drilling & Subsea Production & Infrastructure Total Goodwill Balance at December 31, 2014 net $ 719,860 $ 78,621 $ 798,481 Acquisitions — 15,350 15,350 Impact of non-U.S. local currency translation (13,756 ) (474 ) (14,230 ) Goodwill Balance at September 30, 2015 net $ 706,104 $ 93,497 $ 799,601 |
Summary of Intangible Assets | Intangible assets consisted of the following as of September 30, 2015 and December 31, 2014 , respectively (in thousands): September 30, 2015 Gross carrying amount Accumulated amortization Net amortizable intangibles Amortization period (in years) Customer relationships $ 282,989 $ (98,177 ) $ 184,812 4-15 Patents and technology 34,425 (9,721 ) 24,704 5-17 Non-compete agreements 7,339 (6,233 ) 1,106 3-6 Trade names 49,834 (17,302 ) 32,532 10-15 Distributor relationships 22,160 (13,494 ) 8,666 8-15 Trademark 5,230 — 5,230 Indefinite Intangible Assets Total $ 401,977 $ (144,927 ) $ 257,050 December 31, 2014 Gross carrying amount Accumulated amortization Net amortizable intangibles Amortization period (in years) Customer relationships $ 284,120 $ (84,947 ) $ 199,173 4-15 Patents and technology 31,069 (8,074 ) 22,995 5-17 Non-compete agreements 7,086 (5,761 ) 1,325 3-6 Trade names 48,149 (14,747 ) 33,402 10-15 Distributor relationships 22,160 (12,546 ) 9,614 8-15 Trademark 5,230 — 5,230 Indefinite Intangible Assets Total $ 397,814 $ (126,075 ) $ 271,739 |
Investment in Unconsolidated 26
Investment in Unconsolidated Subsidiary (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Subsidiary | Condensed financial data for the equity investment in the unconsolidated subsidiary is summarized as follows (in thousands): Three months ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net revenues $ 26,033 $ 37,204 $ 81,513 $ 102,113 Gross profit 11,731 18,253 36,505 49,160 Net income 8,063 14,060 25,588 37,659 The Company's earnings from equity investment 3,870 6,749 12,281 17,997 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Notes payable and lines of credit as of September 30, 2015 and December 31, 2014 consisted of the following (in thousands): September 30, December 31, 6.25% Senior Notes due October 2021 $ 402,497 $ 402,801 Senior secured revolving credit facility — 25,000 Other debt 394 1,049 Total debt 402,891 428,850 Less: current maturities (335 ) (840 ) Long-term debt $ 402,556 $ 428,010 |
Business segments (Tables)
Business segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summary financial data by segment follows (in thousands): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Revenue: Drilling & Subsea $ 139,073 $ 307,454 $ 523,850 $ 848,474 Production & Infrastructure 106,186 161,696 354,278 453,640 Intersegment eliminations (266 ) (328 ) (624 ) (1,075 ) Total Revenue $ 244,993 $ 468,822 $ 877,504 $ 1,301,039 Operating income: Drilling & Subsea $ 6,675 $ 57,929 $ 51,261 $ 155,330 Production & Infrastructure 10,715 29,816 45,108 80,260 Corporate (4,993 ) (10,274 ) (21,337 ) (29,711 ) Total segment operating income 12,397 77,471 75,032 205,879 Transaction expenses 193 1,516 433 2,326 Loss (gain) on sale of assets and other 11 (85 ) (264 ) 320 Income from operations $ 12,193 $ 76,040 $ 74,863 $ 203,233 A summary of consolidated assets by reportable segment is as follows (in thousands): September 30, December 31, Assets Drilling & Subsea $ 1,525,824 $ 1,674,934 Production & Infrastructure 546,712 488,225 Corporate 68,850 58,469 Total assets $ 2,141,386 $ 2,221,628 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted earnings per share for each period presented was as follows (dollars and shares in thousands, except per share amounts): Three months ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net Income attributable to common stockholders $ 6,720 $ 52,226 $ 44,266 $ 128,278 Average shares outstanding (basic) 90,058 93,331 89,770 92,728 Common stock equivalents 1,629 2,867 1,806 2,903 Diluted shares 91,687 96,198 91,576 95,631 Earnings per share Basic earnings per share $ 0.07 $ 0.56 $ 0.49 $ 1.38 Diluted earnings per share $ 0.07 $ 0.54 $ 0.48 $ 1.34 |
Condensed consolidating finan30
Condensed consolidating financial statements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed consolidating statements of income and comprehensive income | Condensed consolidating statements of comprehensive income Three months ended September 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Net sales $ — $ 182,986 $ 83,751 $ (21,744 ) $ 244,993 Cost of sales — 140,444 60,494 (21,707 ) 179,231 Gross profit — 42,542 23,257 (37 ) 65,762 Operating expenses Selling, general and administrative expenses — 41,157 16,078 — 57,235 Transaction expenses — 193 — — 193 Loss (gain) on sale of assets and other — (15 ) 26 — 11 Total operating expenses — 41,335 16,104 — 57,439 Earnings from equity investment — 3,870 — — 3,870 Equity earnings from affiliate, net of tax 11,568 8,286 — (19,854 ) — Operating income 11,568 13,363 7,153 (19,891 ) 12,193 Other expense (income) Interest expense (income) 7,458 (1 ) (4 ) — 7,453 Foreign exchange (gains) losses and other, net — (253 ) (2,657 ) — (2,910 ) Total other expense (income) 7,458 (254 ) (2,661 ) — 4,543 Income before income taxes 4,110 13,617 9,814 (19,891 ) 7,650 Provision for income tax expense (2,610 ) 2,049 1,493 — 932 Net income 6,720 11,568 8,321 (19,891 ) 6,718 Less: Income (loss) attributable to noncontrolling interest — — (2 ) — (2 ) Net income attributable to common stockholders 6,720 11,568 8,323 (19,891 ) 6,720 Other comprehensive income, net of tax: Net income 6,720 11,568 8,321 (19,891 ) 6,718 Change in foreign currency translation, net of tax of $0 (18,747 ) (18,747 ) (18,747 ) 37,494 (18,747 ) Change in pension liability (2 ) (2 ) (2 ) 4 (2 ) Comprehensive income (loss) (12,029 ) (7,181 ) (10,428 ) 17,607 (12,031 ) Less: comprehensive (income) loss attributable to noncontrolling interests — — 64 — 64 Comprehensive income (loss) attributable to common stockholders $ (12,029 ) $ (7,181 ) $ (10,364 ) $ 17,607 $ (11,967 ) Condensed consolidating statements of comprehensive income Three months ended September 30, 2014 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Net sales $ — $ 330,772 $ 179,458 $ (41,408 ) $ 468,822 Cost of sales — 230,938 127,423 (41,577 ) 316,784 Gross profit — 99,834 52,035 169 152,038 Operating expenses Selling, general and administrative expenses — 63,228 18,088 — 81,316 Other operating expense — 1,419 12 — 1,431 Total operating expenses — 64,647 18,100 — 82,747 Earnings from equity investment — 6,749 — — 6,749 Equity earnings from affiliates, net of tax 57,161 28,048 — (85,209 ) — Operating income 57,161 69,984 33,935 (85,040 ) 76,040 Other expense (income) Interest expense (income) 7,593 75 31 — 7,699 Interest income with affiliate — (1,887 ) — 1,887 — Interest expense with affiliate — — 1,887 (1,887 ) — Foreign exchange (gains) losses and other, net — (744 ) (4,478 ) — (5,222 ) Total other expense (income) 7,593 (2,556 ) (2,560 ) — 2,477 Income before income taxes 49,568 72,540 36,495 (85,040 ) 73,563 Provision for income tax expense (2,658 ) 15,379 8,611 — 21,332 Net income 52,226 57,161 27,884 (85,040 ) 52,231 Less: Income (loss) attributable to noncontrolling interest — — 5 — 5 Net income attributable to common stockholders 52,226 57,161 27,879 (85,040 ) 52,226 Other comprehensive income, net of tax: Net income 52,226 57,161 27,884 (85,040 ) 52,231 Change in foreign currency translation, net of tax of $0 (34,474 ) (34,474 ) (34,474 ) 68,948 (34,474 ) Comprehensive income (loss) 17,752 22,687 (6,590 ) (16,092 ) 17,757 Less: comprehensive (income) loss attributable to noncontrolling interests — — (32 ) — (32 ) Comprehensive income (loss) attributable to common stockholders $ 17,752 $ 22,687 $ (6,622 ) $ (16,092 ) $ 17,725 Condensed consolidating statements of comprehensive income Nine months ended September 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Net sales $ — $ 661,419 $ 306,431 $ (90,346 ) $ 877,504 Cost of sales — 484,338 221,940 (88,545 ) 617,733 Gross profit — 177,081 84,491 (1,801 ) 259,771 Operating expenses Selling, general and administrative expenses — 150,955 46,065 — 197,020 Transaction expenses — 433 — — 433 Loss (gain) on sale of assets and other — (73 ) (191 ) — (264 ) Total operating expenses — 151,315 45,874 — 197,189 Earnings from equity investment — 12,281 — — 12,281 Equity earnings from affiliates, net of tax 59,002 35,116 — (94,118 ) — Operating income 59,002 73,163 38,617 (95,919 ) 74,863 Other expense (income) Interest expense (income) 22,670 13 4 — 22,687 Foreign exchange (gains) losses and other, net — (407 ) (5,104 ) — (5,511 ) Total other expense (income) 22,670 (394 ) (5,100 ) — 17,176 Income before income taxes 36,332 73,557 43,717 (95,919 ) 57,687 Provision for income tax expense (7,934 ) 14,555 6,827 — 13,448 Net income 44,266 59,002 36,890 (95,919 ) 44,239 Less: Income (loss) attributable to noncontrolling interest — — (27 ) — (27 ) Net income attributable to common stockholders 44,266 59,002 36,917 (95,919 ) 44,266 Other comprehensive income, net of tax: Net income 44,266 59,002 36,890 (95,919 ) 44,239 Change in foreign currency translation, net of tax of $0 (30,553 ) (30,553 ) (30,553 ) 61,106 (30,553 ) Change in pension liability 68 68 68 (136 ) 68 Comprehensive income (loss) 13,781 28,517 6,405 (34,949 ) 13,754 Less: comprehensive (income) loss attributable to noncontrolling interests — — 118 — 118 Comprehensive income (loss) attributable to common stockholders $ 13,781 $ 28,517 $ 6,523 $ (34,949 ) $ 13,872 Condensed consolidating statements of comprehensive income Nine Months Ended September 30, 2014 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Net sales $ — $ 941,885 $ 480,049 $ (120,895 ) $ 1,301,039 Cost of sales — 659,444 342,269 (118,643 ) 883,070 Gross profit — 282,441 137,780 (2,252 ) 417,969 Operating expenses Selling, general and administrative expenses — 176,331 53,756 — 230,087 Transaction expenses — 2,326 — — 2,326 Loss (gain) on sale of assets and other — 639 (319 ) — 320 Total operating expenses — 179,296 53,437 — 232,733 Earnings from equity investment — 17,997 — — 17,997 Equity earnings from affiliates, net of tax 143,310 59,688 — (202,998 ) — Operating income 143,310 180,830 84,343 (205,250 ) 203,233 Other expense (income) Interest expense (income) 23,126 77 (29 ) — 23,174 Interest income with affiliate — (5,770 ) — 5,770 — Interest expense with affiliate — — 5,770 (5,770 ) — Foreign exchange (gains) losses and other, net — 274 (890 ) — (616 ) Total other expense (income) 23,126 (5,419 ) 4,851 — 22,558 Income before income taxes 120,184 186,249 79,492 (205,250 ) 180,675 Provision for income tax expense (8,094 ) 42,939 17,550 — 52,395 Net income 128,278 143,310 61,942 (205,250 ) 128,280 Less: Income (loss) attributable to noncontrolling interest — — 2 — 2 Net income attributable to common stockholders 128,278 143,310 61,940 (205,250 ) 128,278 Other comprehensive income, net of tax: Net income 128,278 143,310 61,942 (205,250 ) 128,280 Change in foreign currency translation, net of tax of $0 (21,754 ) (21,754 ) (21,754 ) 43,508 (21,754 ) Change in pension liability 2 2 2 (4 ) 2 Comprehensive income (loss) 106,526 121,558 40,190 (161,746 ) 106,528 Less: comprehensive (income) loss attributable to noncontrolling interests — — (20 ) — (20 ) Comprehensive income (loss) attributable to common stockholders $ 106,526 $ 121,558 $ 40,170 $ (161,746 ) $ 106,508 |
Condensed consolidating balance sheets | Condensed consolidating balance sheets September 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets Current assets Cash and cash equivalents $ — $ 16,104 $ 60,081 $ — $ 76,185 Accounts receivable—trade, net — 101,485 56,106 — 157,591 Inventories — 386,531 128,007 (9,782 ) 504,756 Cost and profits in excess of billings — 8,295 10,154 — 18,449 Other current assets — 51,104 8,706 — 59,810 Total current assets — 563,519 263,054 (9,782 ) 816,791 Property and equipment, net of accumulated depreciation — 161,710 35,094 — 196,804 Deferred financing costs, net 11,189 — — — 11,189 Intangibles — 193,333 63,717 — 257,050 Goodwill — 538,248 261,353 — 799,601 Investment in unconsolidated subsidiary — 56,457 — — 56,457 Investment in affiliates 1,362,309 593,121 — (1,955,430 ) — Long-term advances to affiliates 472,899 — 59,628 (532,527 ) — Other long-term assets — 2,574 920 — 3,494 Total assets $ 1,846,397 $ 2,108,962 $ 683,766 $ (2,497,739 ) $ 2,141,386 Liabilities and equity Current liabilities Current portion of long-term debt $ — $ 325 $ 10 $ — $ 335 Accounts payable—trade — 69,069 23,175 — 92,244 Accrued liabilities 13,405 47,117 18,719 — 79,241 Deferred revenue — 2,582 6,760 — 9,342 Billings in excess of costs and profits — 2,432 6,679 — 9,111 Total current liabilities 13,405 121,525 55,343 — 190,273 Long-term debt, net of current portion 402,497 44 15 — 402,556 Long-term payables to affiliates — 532,528 — (532,528 ) — Deferred income taxes, net — 75,002 19,203 — 94,205 Other long-term liabilities — 17,554 5,855 — 23,409 Total liabilities 415,902 746,653 80,416 (532,528 ) 710,443 Total stockholder's equity 1,430,495 1,362,309 602,903 (1,965,211 ) 1,430,496 Noncontrolling interest in subsidiary — — 447 — 447 Equity 1,430,495 1,362,309 603,350 (1,965,211 ) 1,430,943 Total liabilities and equity $ 1,846,397 $ 2,108,962 $ 683,766 $ (2,497,739 ) $ 2,141,386 Condensed consolidating balance sheets December 31, 2014 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets Current assets Cash and cash equivalents $ 5,551 $ 4,006 $ 67,022 $ — $ 76,579 Accounts receivable—trade, net — 194,964 92,081 — 287,045 Inventories — 343,902 125,594 (7,981 ) 461,515 Cost and profits in excess of billings — 4,871 9,775 — 14,646 Other current assets — 38,920 16,454 — 55,374 Total current assets 5,551 586,663 310,926 (7,981 ) 895,159 Property and equipment, net of accumulated depreciation — 153,016 36,958 — 189,974 Deferred financing costs, net 13,107 — — — 13,107 Intangibles — 198,819 72,920 — 271,739 Goodwill — 522,898 275,583 — 798,481 Investment in unconsolidated subsidiary — 49,675 — — 49,675 Investment in affiliates 1,333,701 590,421 — (1,924,122 ) — Long-term advances to affiliates 483,534 — 22,531 (506,065 ) — Other long-term assets — 2,760 733 — 3,493 Total assets $ 1,835,893 $ 2,104,252 $ 719,651 $ (2,438,168 ) $ 2,221,628 Liabilities and equity Current liabilities Accounts payable—trade $ — $ 85,179 $ 42,578 $ — $ 127,757 Accrued liabilities 12,733 84,824 29,333 — 126,890 Current portion of debt and other current liabilities — 5,800 21,744 — 27,544 Total current liabilities 12,733 175,803 93,655 — 282,191 Long-term debt, net of current portion 427,801 183 26 — 428,010 Long-term payables to affiliates — 506,065 — (506,065 ) — Deferred income taxes, net — 77,311 20,877 — 98,188 Other long-term liabilities — 11,189 6,129 — 17,318 Total liabilities 440,534 770,551 120,687 (506,065 ) 825,707 Total stockholder's equity 1,395,359 1,333,701 598,399 (1,932,103 ) 1,395,356 Noncontrolling interest in subsidiary — — 565 — 565 Equity 1,395,359 1,333,701 598,964 (1,932,103 ) 1,395,921 Total liabilities and equity $ 1,835,893 $ 2,104,252 $ 719,651 $ (2,438,168 ) $ 2,221,628 |
Condensed consolidating statements of cash flows | Condensed consolidating statements of cash flows Nine months ended September 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from (used in) operating activities $ (6,543 ) $ 79,698 $ 44,551 $ — $ 117,706 Cash flows from investing activities Acquisition of businesses, net of cash acquired — (60,836 ) — — (60,836 ) Capital expenditures for property and equipment — (19,858 ) (8,188 ) — (28,046 ) Long-term loans and advances to affiliates 27,719 40,544 — (68,263 ) — Other — 992 707 — 1,699 Net cash provided by (used in) investing activities $ 27,719 $ (39,158 ) $ (7,481 ) $ (68,263 ) $ (87,183 ) Cash flows from financing activities Borrowings (repayment) of long-term debt (25,305 ) (723 ) (14 ) — (26,042 ) Long-term loans and advances to affiliates — (27,719 ) (40,544 ) 68,263 — Other (1,422 ) — — — (1,422 ) Net cash provided by (used in) financing activities $ (26,727 ) $ (28,442 ) $ (40,558 ) $ 68,263 $ (27,464 ) Effect of exchange rate changes on cash — — (3,453 ) — (3,453 ) Net increase (decrease) in cash and cash equivalents (5,551 ) 12,098 (6,941 ) — (394 ) Cash and cash equivalents Beginning of period 5,551 4,006 67,022 — 76,579 End of period $ — $ 16,104 $ 60,081 $ — $ 76,185 Condensed consolidating statements of cash flows Nine Months Ended September 30, 2014 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from (used in) operating activities $ (6,101 ) $ 120,323 $ 65,531 $ — $ 179,753 Cash flows from investing activities Acquisition of businesses, net of cash acquired — — (38,289 ) — (38,289 ) Capital expenditures for property and equipment — (30,808 ) (9,124 ) — (39,932 ) Long-term loans and advances to affiliates 88,410 — — (88,410 ) — Other — 8,421 314 — 8,735 Net cash provided by (used in) investing activities $ 88,410 $ (22,387 ) $ (47,099 ) $ (88,410 ) $ (69,486 ) Cash flows from financing activities Repayment of long-term debt (91,307 ) (328 ) (125 ) — (91,760 ) Long-term loans and advances to affiliates — (92,478 ) 4,068 88,410 — Other 8,998 7,291 — — 16,289 Net cash provided by (used in) financing activities $ (82,309 ) $ (85,515 ) $ 3,943 $ 88,410 $ (75,471 ) Effect of exchange rate changes on cash — — (294 ) — (294 ) Net increase (decrease) in cash and cash equivalents — 12,421 22,081 — 34,502 Cash and cash equivalents Beginning of period — — 39,582 — 39,582 End of period $ — $ 12,421 $ 61,663 $ — $ 74,084 |
(Narrative) (Details)
(Narrative) (Details) - USD ($) $ in Thousands | Feb. 02, 2015 | May. 01, 2014 |
J-Mac Tool, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Acquisition consideration | $ 64,191 | |
Quality Wireline and Cable, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Acquisition consideration | $ 38,289 |
(Schedule of assets acquired an
(Schedule of assets acquired and liabilities assumed) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Feb. 02, 2015 | Dec. 31, 2014 | May. 01, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 799,601 | $ 798,481 | ||
J-Mac Tool, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets, net of cash acquired | $ 37,095 | |||
Property and equipment | 11,506 | |||
Intangible assets (primarily customer relationships) | 10,400 | |||
Goodwill | 15,350 | |||
Current liabilities | (10,138) | |||
Long-term liabilities | (22) | |||
Net assets acquired | $ 64,191 | |||
Quality Wireline and Cable, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets, net of cash acquired | $ 7,596 | |||
Property and equipment | 3,837 | |||
Intangible assets (primarily customer relationships) | 11,527 | |||
Goodwill | 20,573 | |||
Current liabilities | (1,615) | |||
Deferred tax liabilities | (3,629) | |||
Net assets acquired | $ 38,289 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials and parts | $ 156,595 | $ 153,768 |
Work in process | 51,636 | 50,913 |
Finished goods | 330,180 | 286,290 |
Gross inventories | 538,411 | 490,971 |
Inventory reserve | (33,655) | (29,456) |
Inventories | $ 504,756 | $ 461,515 |
Goodwill and intangible asset34
Goodwill and intangible assets (Schedule of Goodwill) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
Goodwill Beginning Balance | $ 798,481 |
Acquisitions | 15,350 |
Impact of non-U.S. local currency translation | (14,230) |
Goodwill Ending Balance | 799,601 |
Drilling & Subsea [Member] | |
Goodwill [Roll Forward] | |
Goodwill Beginning Balance | 719,860 |
Acquisitions | 0 |
Impact of non-U.S. local currency translation | (13,756) |
Goodwill Ending Balance | 706,104 |
Production & Infrastructure [Member] | |
Goodwill [Roll Forward] | |
Goodwill Beginning Balance | 78,621 |
Acquisitions | 15,350 |
Impact of non-U.S. local currency translation | (474) |
Goodwill Ending Balance | $ 93,497 |
Goodwill and intangible asset35
Goodwill and intangible assets (Finite-Lived and Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (144,927) | $ (126,075) |
Intangible Assets Total, Gross carrying amount | 401,977 | 397,814 |
Intangible Assets Total, Net amortizable intangibles | 257,050 | 271,739 |
Trademark [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 5,230 | 5,230 |
Customer relationships [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 282,989 | 284,120 |
Accumulated amortization | (98,177) | (84,947) |
Net amortizable intangibles | 184,812 | 199,173 |
Patents and technology [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 34,425 | 31,069 |
Accumulated amortization | (9,721) | (8,074) |
Net amortizable intangibles | 24,704 | 22,995 |
Non-compete agreements [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 7,339 | 7,086 |
Accumulated amortization | (6,233) | (5,761) |
Net amortizable intangibles | 1,106 | 1,325 |
Trade names [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 49,834 | 48,149 |
Accumulated amortization | (17,302) | (14,747) |
Net amortizable intangibles | 32,532 | 33,402 |
Distributor relationships [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 22,160 | 22,160 |
Accumulated amortization | (13,494) | (12,546) |
Net amortizable intangibles | $ 8,666 | $ 9,614 |
Minimum [Member] | Customer relationships [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 4 years | 4 years |
Minimum [Member] | Patents and technology [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 5 years | 5 years |
Minimum [Member] | Non-compete agreements [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 3 years | 3 years |
Minimum [Member] | Trade names [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 10 years | 10 years |
Minimum [Member] | Distributor relationships [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 8 years | 8 years |
Maximum [Member] | Customer relationships [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 15 years | 15 years |
Maximum [Member] | Patents and technology [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 17 years | 17 years |
Maximum [Member] | Non-compete agreements [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 6 years | 6 years |
Maximum [Member] | Trade names [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 15 years | 15 years |
Maximum [Member] | Distributor relationships [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 15 years | 15 years |
Investment in Unconsolidated 36
Investment in Unconsolidated Subsidiary (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net revenues | $ 244,993 | $ 468,822 | $ 877,504 | $ 1,301,039 |
Gross Profit | 65,762 | 152,038 | 259,771 | 417,969 |
Net income | 6,718 | 52,231 | 44,239 | 128,280 |
The Company's earnings from equity investment | 3,870 | 6,749 | 12,281 | 17,997 |
Global Tubing LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net revenues | 26,033 | 37,204 | 81,513 | 102,113 |
Gross Profit | 11,731 | 18,253 | 36,505 | 49,160 |
Net income | $ 8,063 | $ 14,060 | $ 25,588 | $ 37,659 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Debt instrument, carrying value | $ 402,891,000 | $ 428,850,000 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt stated interest rate | 6.25% | |
Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rates | 2.00% | 2.00% |
Debt instrument, carrying value | $ 0 | $ 25,000,000 |
Line of credit facility, remaining borrowing capacity | 586,700,000 | |
Revolving Credit Facility [Member] | Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 600,000,000 | |
Letter of Credit [Member] | Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 75,000,000 | |
Line of credit facility, additional borrowing capacity | 300,000,000 | |
Line of credit outstanding | 13,300,000 | |
Swingline Loan [Member] | Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 25,000,000 |
Debt (Schedule of Long-Term Deb
Debt (Schedule of Long-Term Debt) (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total debt | $ 402,891,000 | $ 428,850,000 |
Less: current maturities | (335,000) | (840,000) |
Long-term debt | 402,556,000 | 428,010,000 |
Senior secured revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 25,000,000 |
Other debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 394,000 | $ 1,049,000 |
Income taxes (Narrative) (Detai
Income taxes (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 12.20% | 29.00% | 23.30% | 29.00% |
Fair value measurements (Narrat
Fair value measurements (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, carrying value | $ 402,891 | $ 428,850 |
6.25% Senior Notes due October 2021 [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, fair value disclosure | 351,800 | 378,100 |
Carrying Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, fair value disclosure | 0 | |
Carrying Value [Member] | 6.25% Senior Notes due October 2021 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, carrying value | $ 402,497 | $ 402,801 |
Business segments (Income State
Business segments (Income Statement by Segment) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | |
Segment Reporting [Abstract] | ||||
Number of operating segments (in segments) | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 244,993 | $ 468,822 | $ 877,504 | $ 1,301,039 |
Operating income | 12,193 | 76,040 | 74,863 | 203,233 |
Transaction expenses | 193 | 1,516 | 433 | 2,326 |
Loss (gain) on sale of assets and other | 11 | (85) | (264) | 320 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 12,397 | 77,471 | 75,032 | 205,879 |
Operating Segments [Member] | Drilling & Subsea [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 139,073 | 307,454 | 523,850 | 848,474 |
Operating income | 6,675 | 57,929 | 51,261 | 155,330 |
Operating Segments [Member] | Production & Infrastructure [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 106,186 | 161,696 | 354,278 | 453,640 |
Operating income | 10,715 | 29,816 | 45,108 | 80,260 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | (266) | (328) | (624) | (1,075) |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ (4,993) | $ (10,274) | $ (21,337) | $ (29,711) |
Business segments (Assets by Se
Business segments (Assets by Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Assets | $ 2,141,386 | $ 2,221,628 |
Operating Segments [Member] | Drilling & Subsea [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,525,824 | 1,674,934 |
Operating Segments [Member] | Production & Infrastructure [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 546,712 | 488,225 |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 68,850 | $ 58,469 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net Income attributable to common stockholders | $ 6,720 | $ 52,226 | $ 44,266 | $ 128,278 |
Average shares outstanding (basic) (in shares) | 90,058 | 93,331 | 89,770 | 92,728 |
Common stock equivalents (in shares) | 1,629 | 2,867 | 1,806 | 2,903 |
Diluted shares (in shares) | 91,687 | 96,198 | 91,576 | 95,631 |
Basic earnings per share (in dollars per share) | $ 0.07 | $ 0.56 | $ 0.49 | $ 1.38 |
Diluted earnings per share (in dollars per share) | $ 0.07 | $ 0.54 | $ 0.48 | $ 1.34 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Diluted earnings per share calculation excludes (in shares) | 2,000 | 400 | 1,800 | 500 |
Stockholders' equity (Share-bas
Stockholders' equity (Share-based compensation) (Details) - $ / shares | 1 Months Ended | 9 Months Ended | |
Aug. 31, 2015 | Feb. 28, 2015 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options granted (in shares) | 564,950 | ||
Granted stock options, exercise price (in dollars per share) | $ 13.92 | $ 18.68 | |
Restricted Stock and Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity instruments other than options granted (in shares) | 987,411 | ||
Restricted Stock and Restricted Stock Units with Specified Vesting Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity instruments other than options granted (in shares) | 765,523 | ||
Award vesting period | 4 years | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity instruments other than options granted (in shares) | 161,660 | ||
Board of Directors [Member] | Restricted Stock and Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity instruments other than options granted (in shares) | 60,228 | ||
Award vesting period | 12 months | ||
Minimum [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share conversion ratio | 0 | ||
Maximum [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share conversion ratio | 2 | ||
Share-based Compensation Award, Tranche One [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance measurement period (in years) | 1 year | ||
Share-based Compensation Award, Tranche Two [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance measurement period (in years) | 2 years | ||
Share-based Compensation Award, Tranche Three [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance measurement period (in years) | 3 years |
Condensed consolidating finan45
Condensed consolidating financial statements (Condensed consolidating statements of income and comprehensive income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Change in foreign currency translation, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||
Net sales | 244,993 | 468,822 | 877,504 | 1,301,039 |
Cost of sales | 179,231 | 316,784 | 617,733 | 883,070 |
Gross profit | 65,762 | 152,038 | 259,771 | 417,969 |
Operating expenses | ||||
Selling, general and administrative expenses | 57,235 | 81,316 | 197,020 | 230,087 |
Transaction expenses | 193 | 1,516 | 433 | 2,326 |
Loss (gain) on sale of assets and other | 11 | (85) | (264) | 320 |
Other operating expense | 1,431 | |||
Total operating expenses | 57,439 | 82,747 | 197,189 | 232,733 |
Earnings from equity investment | 3,870 | 6,749 | 12,281 | 17,997 |
Equity earnings from affiliate, net of tax | 0 | 0 | 0 | 0 |
Operating income | 12,193 | 76,040 | 74,863 | 203,233 |
Other expense (income) | ||||
Interest expense | 7,453 | 7,699 | 22,687 | 23,174 |
Interest income with affiliate | 0 | 0 | ||
Interest expense with affiliate | 0 | 0 | ||
Foreign exchange (gains) losses and other, net | (2,910) | (5,222) | (5,511) | (616) |
Total other expense | 4,543 | 2,477 | 17,176 | 22,558 |
Income before income taxes | 7,650 | 73,563 | 57,687 | 180,675 |
Provision for income tax expense | 932 | 21,332 | 13,448 | 52,395 |
Net income | 6,718 | 52,231 | 44,239 | 128,280 |
Less: Income (loss) attributable to noncontrolling interest | (2) | 5 | (27) | 2 |
Net income attributable to common stockholders | 6,720 | 52,226 | 44,266 | 128,278 |
Other comprehensive income, net of tax: | ||||
Net income | 6,718 | 52,231 | 44,239 | 128,280 |
Change in foreign currency translation, net of tax of $0 | (18,747) | (34,474) | (30,553) | (21,754) |
Gain (loss) on pension liability | (2) | 0 | 68 | 2 |
Comprehensive income (loss) | (12,031) | 17,757 | 13,754 | 106,528 |
Less: comprehensive loss (income) attributable to noncontrolling interests | 64 | (32) | 118 | (20) |
Comprehensive income (loss) attributable to common stockholders | (11,967) | 17,725 | 13,872 | 106,508 |
Reportable Legal Entities [Member] | FET Inc. (Parent) [Member] | ||||
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Operating expenses | ||||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Transaction expenses | 0 | 0 | 0 | |
Loss (gain) on sale of assets and other | 0 | 0 | 0 | |
Other operating expense | 0 | |||
Total operating expenses | 0 | 0 | 0 | 0 |
Earnings from equity investment | 0 | 0 | 0 | 0 |
Equity earnings from affiliate, net of tax | 11,568 | 57,161 | 59,002 | 143,310 |
Operating income | 11,568 | 57,161 | 59,002 | 143,310 |
Other expense (income) | ||||
Interest expense | 7,458 | 7,593 | 22,670 | 23,126 |
Interest income with affiliate | 0 | 0 | ||
Interest expense with affiliate | 0 | 0 | ||
Foreign exchange (gains) losses and other, net | 0 | 0 | 0 | 0 |
Total other expense | 7,458 | 7,593 | 22,670 | 23,126 |
Income before income taxes | 4,110 | 49,568 | 36,332 | 120,184 |
Provision for income tax expense | (2,610) | (2,658) | (7,934) | (8,094) |
Net income | 6,720 | 52,226 | 44,266 | 128,278 |
Less: Income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to common stockholders | 6,720 | 52,226 | 44,266 | 128,278 |
Other comprehensive income, net of tax: | ||||
Net income | 6,720 | 52,226 | 44,266 | 128,278 |
Change in foreign currency translation, net of tax of $0 | (18,747) | (34,474) | (30,553) | (21,754) |
Gain (loss) on pension liability | (2) | 68 | 2 | |
Comprehensive income (loss) | (12,029) | 17,752 | 13,781 | 106,526 |
Less: comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to common stockholders | (12,029) | 17,752 | 13,781 | 106,526 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||
Net sales | 182,986 | 330,772 | 661,419 | 941,885 |
Cost of sales | 140,444 | 230,938 | 484,338 | 659,444 |
Gross profit | 42,542 | 99,834 | 177,081 | 282,441 |
Operating expenses | ||||
Selling, general and administrative expenses | 41,157 | 63,228 | 150,955 | 176,331 |
Transaction expenses | 193 | 433 | 2,326 | |
Loss (gain) on sale of assets and other | (15) | (73) | 639 | |
Other operating expense | 1,419 | |||
Total operating expenses | 41,335 | 64,647 | 151,315 | 179,296 |
Earnings from equity investment | 3,870 | 6,749 | 12,281 | 17,997 |
Equity earnings from affiliate, net of tax | 8,286 | 28,048 | 35,116 | 59,688 |
Operating income | 13,363 | 69,984 | 73,163 | 180,830 |
Other expense (income) | ||||
Interest expense | (1) | 75 | 13 | 77 |
Interest income with affiliate | (1,887) | (5,770) | ||
Interest expense with affiliate | 0 | 0 | ||
Foreign exchange (gains) losses and other, net | (253) | (744) | (407) | 274 |
Total other expense | (254) | (2,556) | (394) | (5,419) |
Income before income taxes | 13,617 | 72,540 | 73,557 | 186,249 |
Provision for income tax expense | 2,049 | 15,379 | 14,555 | 42,939 |
Net income | 11,568 | 57,161 | 59,002 | 143,310 |
Less: Income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to common stockholders | 11,568 | 57,161 | 59,002 | 143,310 |
Other comprehensive income, net of tax: | ||||
Net income | 11,568 | 57,161 | 59,002 | 143,310 |
Change in foreign currency translation, net of tax of $0 | (18,747) | (34,474) | (30,553) | (21,754) |
Gain (loss) on pension liability | (2) | 68 | 2 | |
Comprehensive income (loss) | (7,181) | 22,687 | 28,517 | 121,558 |
Less: comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to common stockholders | (7,181) | 22,687 | 28,517 | 121,558 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||
Net sales | 83,751 | 179,458 | 306,431 | 480,049 |
Cost of sales | 60,494 | 127,423 | 221,940 | 342,269 |
Gross profit | 23,257 | 52,035 | 84,491 | 137,780 |
Operating expenses | ||||
Selling, general and administrative expenses | 16,078 | 18,088 | 46,065 | 53,756 |
Transaction expenses | 0 | 0 | 0 | |
Loss (gain) on sale of assets and other | 26 | (191) | (319) | |
Other operating expense | 12 | |||
Total operating expenses | 16,104 | 18,100 | 45,874 | 53,437 |
Earnings from equity investment | 0 | 0 | 0 | 0 |
Equity earnings from affiliate, net of tax | 0 | 0 | 0 | 0 |
Operating income | 7,153 | 33,935 | 38,617 | 84,343 |
Other expense (income) | ||||
Interest expense | (4) | 31 | 4 | (29) |
Interest income with affiliate | 0 | 0 | ||
Interest expense with affiliate | 1,887 | 5,770 | ||
Foreign exchange (gains) losses and other, net | (2,657) | (4,478) | (5,104) | (890) |
Total other expense | (2,661) | (2,560) | (5,100) | 4,851 |
Income before income taxes | 9,814 | 36,495 | 43,717 | 79,492 |
Provision for income tax expense | 1,493 | 8,611 | 6,827 | 17,550 |
Net income | 8,321 | 27,884 | 36,890 | 61,942 |
Less: Income (loss) attributable to noncontrolling interest | (2) | 5 | (27) | 2 |
Net income attributable to common stockholders | 8,323 | 27,879 | 36,917 | 61,940 |
Other comprehensive income, net of tax: | ||||
Net income | 8,321 | 27,884 | 36,890 | 61,942 |
Change in foreign currency translation, net of tax of $0 | (18,747) | (34,474) | (30,553) | (21,754) |
Gain (loss) on pension liability | (2) | 68 | 2 | |
Comprehensive income (loss) | (10,428) | (6,590) | 6,405 | 40,190 |
Less: comprehensive loss (income) attributable to noncontrolling interests | 64 | (32) | 118 | (20) |
Comprehensive income (loss) attributable to common stockholders | (10,364) | (6,622) | 6,523 | 40,170 |
Eliminations [Member] | ||||
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||
Net sales | (21,744) | (41,408) | (90,346) | (120,895) |
Cost of sales | (21,707) | (41,577) | (88,545) | (118,643) |
Gross profit | (37) | 169 | (1,801) | (2,252) |
Operating expenses | ||||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Transaction expenses | 0 | 0 | 0 | |
Loss (gain) on sale of assets and other | 0 | 0 | 0 | |
Other operating expense | 0 | |||
Total operating expenses | 0 | 0 | 0 | 0 |
Earnings from equity investment | 0 | 0 | 0 | 0 |
Equity earnings from affiliate, net of tax | (19,854) | (85,209) | (94,118) | (202,998) |
Operating income | (19,891) | (85,040) | (95,919) | (205,250) |
Other expense (income) | ||||
Interest expense | 0 | 0 | 0 | 0 |
Interest income with affiliate | 1,887 | 5,770 | ||
Interest expense with affiliate | (1,887) | (5,770) | ||
Foreign exchange (gains) losses and other, net | 0 | 0 | 0 | 0 |
Total other expense | 0 | 0 | 0 | 0 |
Income before income taxes | (19,891) | (85,040) | (95,919) | (205,250) |
Provision for income tax expense | 0 | 0 | 0 | 0 |
Net income | (19,891) | (85,040) | (95,919) | (205,250) |
Less: Income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to common stockholders | (19,891) | (85,040) | (95,919) | (205,250) |
Other comprehensive income, net of tax: | ||||
Net income | (19,891) | (85,040) | (95,919) | (205,250) |
Change in foreign currency translation, net of tax of $0 | 37,494 | 68,948 | 61,106 | 43,508 |
Gain (loss) on pension liability | 4 | (136) | (4) | |
Comprehensive income (loss) | 17,607 | (16,092) | (34,949) | (161,746) |
Less: comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to common stockholders | $ 17,607 | $ (16,092) | $ (34,949) | $ (161,746) |
Condensed consolidating finan46
Condensed consolidating financial statements (Condensed consolidating balance sheets) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Current assets | ||||
Cash and cash equivalents | $ 76,185 | $ 76,579 | $ 74,084 | $ 39,582 |
Accounts receivable—trade, net | 157,591 | 287,045 | ||
Inventories | 504,756 | 461,515 | ||
Costs and estimated profits in excess of billings | 18,449 | 14,646 | ||
Other current assets | 59,810 | 55,374 | ||
Total current assets | 816,791 | 895,159 | ||
Property and equipment, net of accumulated depreciation | 196,804 | 189,974 | ||
Deferred financing costs, net | 11,189 | 13,107 | ||
Intangibles | 257,050 | 271,739 | ||
Goodwill | 799,601 | 798,481 | ||
Investment in unconsolidated subsidiary | 56,457 | 49,675 | ||
Investment in affiliates | 0 | 0 | ||
Long-term advances to affiliates | 0 | 0 | ||
Other long-term assets | 3,494 | 3,493 | ||
Total assets | 2,141,386 | 2,221,628 | ||
Current liabilities | ||||
Current portion of long-term debt | 335 | 840 | ||
Accounts payable—trade | 92,244 | 127,757 | ||
Accrued liabilities | 79,241 | 126,890 | ||
Deferred revenue | 9,342 | 10,919 | ||
Billings in excess of costs and profits | 9,111 | 27,544 | ||
Total current liabilities | 190,273 | 282,191 | ||
Long-term debt, net of current portion | 402,556 | 428,010 | ||
Long-term payables to affiliates | 0 | 0 | ||
Deferred income taxes, net | 94,205 | 98,188 | ||
Other long-term liabilities | 23,409 | 17,318 | ||
Total liabilities | 710,443 | 825,707 | ||
Total stockholders’ equity | 1,430,496 | 1,395,356 | ||
Noncontrolling interest in subsidiary | 447 | 565 | ||
Total equity | 1,430,943 | 1,395,921 | ||
Total liabilities and equity | 2,141,386 | 2,221,628 | ||
Reportable Legal Entities [Member] | FET Inc. (Parent) [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 5,551 | 0 | 0 |
Accounts receivable—trade, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Costs and estimated profits in excess of billings | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 5,551 | ||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||
Deferred financing costs, net | 11,189 | 13,107 | ||
Intangibles | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in unconsolidated subsidiary | 0 | 0 | ||
Investment in affiliates | 1,362,309 | 1,333,701 | ||
Long-term advances to affiliates | 472,899 | 483,534 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 1,846,397 | 1,835,893 | ||
Current liabilities | ||||
Current portion of long-term debt | 0 | |||
Accounts payable—trade | 0 | 0 | ||
Accrued liabilities | 13,405 | 12,733 | ||
Deferred revenue | 0 | |||
Billings in excess of costs and profits | 0 | 0 | ||
Total current liabilities | 13,405 | 12,733 | ||
Long-term debt, net of current portion | 402,497 | 427,801 | ||
Long-term payables to affiliates | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 415,902 | 440,534 | ||
Total stockholders’ equity | 1,430,495 | 1,395,359 | ||
Noncontrolling interest in subsidiary | 0 | 0 | ||
Total equity | 1,430,495 | 1,395,359 | ||
Total liabilities and equity | 1,846,397 | 1,835,893 | ||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 16,104 | 4,006 | 12,421 | 0 |
Accounts receivable—trade, net | 101,485 | 194,964 | ||
Inventories | 386,531 | 343,902 | ||
Costs and estimated profits in excess of billings | 8,295 | 4,871 | ||
Other current assets | 51,104 | 38,920 | ||
Total current assets | 563,519 | 586,663 | ||
Property and equipment, net of accumulated depreciation | 161,710 | 153,016 | ||
Deferred financing costs, net | 0 | 0 | ||
Intangibles | 193,333 | 198,819 | ||
Goodwill | 538,248 | 522,898 | ||
Investment in unconsolidated subsidiary | 56,457 | 49,675 | ||
Investment in affiliates | 593,121 | 590,421 | ||
Long-term advances to affiliates | 0 | 0 | ||
Other long-term assets | 2,574 | 2,760 | ||
Total assets | 2,108,962 | 2,104,252 | ||
Current liabilities | ||||
Current portion of long-term debt | 325 | |||
Accounts payable—trade | 69,069 | 85,179 | ||
Accrued liabilities | 47,117 | 84,824 | ||
Deferred revenue | 2,582 | |||
Billings in excess of costs and profits | 2,432 | 5,800 | ||
Total current liabilities | 121,525 | 175,803 | ||
Long-term debt, net of current portion | 44 | 183 | ||
Long-term payables to affiliates | 532,528 | 506,065 | ||
Deferred income taxes, net | 75,002 | 77,311 | ||
Other long-term liabilities | 17,554 | 11,189 | ||
Total liabilities | 746,653 | 770,551 | ||
Total stockholders’ equity | 1,362,309 | 1,333,701 | ||
Noncontrolling interest in subsidiary | 0 | 0 | ||
Total equity | 1,362,309 | 1,333,701 | ||
Total liabilities and equity | 2,108,962 | 2,104,252 | ||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 60,081 | 67,022 | 61,663 | 39,582 |
Accounts receivable—trade, net | 56,106 | 92,081 | ||
Inventories | 128,007 | 125,594 | ||
Costs and estimated profits in excess of billings | 10,154 | 9,775 | ||
Other current assets | 8,706 | 16,454 | ||
Total current assets | 263,054 | 310,926 | ||
Property and equipment, net of accumulated depreciation | 35,094 | 36,958 | ||
Deferred financing costs, net | 0 | 0 | ||
Intangibles | 63,717 | 72,920 | ||
Goodwill | 261,353 | 275,583 | ||
Investment in unconsolidated subsidiary | 0 | 0 | ||
Investment in affiliates | 0 | 0 | ||
Long-term advances to affiliates | 59,628 | 22,531 | ||
Other long-term assets | 920 | 733 | ||
Total assets | 683,766 | 719,651 | ||
Current liabilities | ||||
Current portion of long-term debt | 10 | |||
Accounts payable—trade | 23,175 | 42,578 | ||
Accrued liabilities | 18,719 | 29,333 | ||
Deferred revenue | 6,760 | |||
Billings in excess of costs and profits | 6,679 | 21,744 | ||
Total current liabilities | 55,343 | 93,655 | ||
Long-term debt, net of current portion | 15 | 26 | ||
Long-term payables to affiliates | 0 | 0 | ||
Deferred income taxes, net | 19,203 | 20,877 | ||
Other long-term liabilities | 5,855 | 6,129 | ||
Total liabilities | 80,416 | 120,687 | ||
Total stockholders’ equity | 602,903 | 598,399 | ||
Noncontrolling interest in subsidiary | 447 | 565 | ||
Total equity | 603,350 | 598,964 | ||
Total liabilities and equity | 683,766 | 719,651 | ||
Eliminations [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable—trade, net | 0 | 0 | ||
Inventories | (9,782) | (7,981) | ||
Costs and estimated profits in excess of billings | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | (9,782) | (7,981) | ||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||
Deferred financing costs, net | 0 | 0 | ||
Intangibles | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in unconsolidated subsidiary | 0 | 0 | ||
Investment in affiliates | (1,955,430) | (1,924,122) | ||
Long-term advances to affiliates | (532,527) | (506,065) | ||
Other long-term assets | 0 | 0 | ||
Total assets | (2,497,739) | (2,438,168) | ||
Current liabilities | ||||
Current portion of long-term debt | 0 | |||
Accounts payable—trade | 0 | 0 | ||
Accrued liabilities | 0 | 0 | ||
Deferred revenue | 0 | |||
Billings in excess of costs and profits | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Long-term payables to affiliates | (532,528) | (506,065) | ||
Deferred income taxes, net | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | (532,528) | (506,065) | ||
Total stockholders’ equity | (1,965,211) | (1,932,103) | ||
Noncontrolling interest in subsidiary | 0 | 0 | ||
Total equity | (1,965,211) | (1,932,103) | ||
Total liabilities and equity | $ (2,497,739) | $ (2,438,168) |
Condensed consolidating finan47
Condensed consolidating financial statements (Condensed consolidating statements of cash flows) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from (used in) operating activities | $ 117,706 | $ 179,753 |
Cash flows from investing activities | ||
Acquisition of businesses, net of cash acquired | (60,836) | (38,289) |
Acquisition of businesses, net of cash acquired | (38,289) | |
Capital expenditures for property and equipment | (28,046) | (39,932) |
Long-term loans and advances to affiliates | 0 | 0 |
Other | 1,699 | 8,735 |
Net cash used in investing activities | (87,183) | (69,486) |
Cash flows from financing activities | ||
Borrowings (repayment) of long-term debt | (26,042) | (91,760) |
Long-term loans and advances to affiliates | 0 | 0 |
Other | (1,422) | 16,289 |
Net cash used in financing activities | (27,464) | (75,471) |
Effect of exchange rate changes on cash | (3,453) | (294) |
Net increase (decrease) in cash and cash equivalents | (394) | 34,502 |
Cash and cash equivalents | ||
Beginning of period | 76,579 | 39,582 |
End of period | 76,185 | 74,084 |
Reportable Legal Entities [Member] | FET Inc. (Parent) [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from (used in) operating activities | (6,543) | (6,101) |
Cash flows from investing activities | ||
Acquisition of businesses, net of cash acquired | 0 | |
Acquisition of businesses, net of cash acquired | 0 | |
Capital expenditures for property and equipment | 0 | 0 |
Long-term loans and advances to affiliates | 27,719 | 88,410 |
Other | 0 | 0 |
Net cash used in investing activities | 27,719 | 88,410 |
Cash flows from financing activities | ||
Borrowings (repayment) of long-term debt | (25,305) | (91,307) |
Long-term loans and advances to affiliates | 0 | 0 |
Other | (1,422) | 8,998 |
Net cash used in financing activities | (26,727) | (82,309) |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (5,551) | 0 |
Cash and cash equivalents | ||
Beginning of period | 5,551 | 0 |
End of period | 0 | 0 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from (used in) operating activities | 79,698 | 120,323 |
Cash flows from investing activities | ||
Acquisition of businesses, net of cash acquired | (60,836) | |
Acquisition of businesses, net of cash acquired | 0 | |
Capital expenditures for property and equipment | (19,858) | (30,808) |
Long-term loans and advances to affiliates | 40,544 | 0 |
Other | 992 | 8,421 |
Net cash used in investing activities | (39,158) | (22,387) |
Cash flows from financing activities | ||
Borrowings (repayment) of long-term debt | (723) | (328) |
Long-term loans and advances to affiliates | (27,719) | (92,478) |
Other | 0 | 7,291 |
Net cash used in financing activities | (28,442) | (85,515) |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 12,098 | 12,421 |
Cash and cash equivalents | ||
Beginning of period | 4,006 | 0 |
End of period | 16,104 | 12,421 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from (used in) operating activities | 44,551 | 65,531 |
Cash flows from investing activities | ||
Acquisition of businesses, net of cash acquired | 0 | |
Acquisition of businesses, net of cash acquired | (38,289) | |
Capital expenditures for property and equipment | (8,188) | (9,124) |
Long-term loans and advances to affiliates | 0 | 0 |
Other | 707 | 314 |
Net cash used in investing activities | (7,481) | (47,099) |
Cash flows from financing activities | ||
Borrowings (repayment) of long-term debt | (14) | (125) |
Long-term loans and advances to affiliates | (40,544) | 4,068 |
Other | 0 | 0 |
Net cash used in financing activities | (40,558) | 3,943 |
Effect of exchange rate changes on cash | (3,453) | (294) |
Net increase (decrease) in cash and cash equivalents | (6,941) | 22,081 |
Cash and cash equivalents | ||
Beginning of period | 67,022 | 39,582 |
End of period | 60,081 | 61,663 |
Eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from (used in) operating activities | 0 | 0 |
Cash flows from investing activities | ||
Acquisition of businesses, net of cash acquired | 0 | |
Acquisition of businesses, net of cash acquired | 0 | |
Capital expenditures for property and equipment | 0 | 0 |
Long-term loans and advances to affiliates | (68,263) | (88,410) |
Other | 0 | 0 |
Net cash used in investing activities | (68,263) | (88,410) |
Cash flows from financing activities | ||
Borrowings (repayment) of long-term debt | 0 | 0 |
Long-term loans and advances to affiliates | 68,263 | 88,410 |
Other | 0 | 0 |
Net cash used in financing activities | 68,263 | 88,410 |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents | ||
Beginning of period | 0 | 0 |
End of period | $ 0 | $ 0 |