Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
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 | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 91,349,252 |
Condensed consolidated statemen
Condensed consolidated statements of comprehensive income (loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 142,723 | $ 284,415 | $ 302,164 | $ 632,511 |
Cost of sales | 137,442 | 199,532 | 262,326 | 438,502 |
Gross profit | 5,281 | 84,883 | 39,838 | 194,009 |
Operating expenses | ||||
Selling, general and administrative expenses | 58,263 | 66,225 | 118,276 | 139,785 |
Transaction expenses | 64 | 23 | 230 | 240 |
Loss (gain) on sale of assets and other | 48 | 37 | 16 | (275) |
Total operating expenses | 58,375 | 66,285 | 118,522 | 139,750 |
Earnings from equity investment | 216 | 3,840 | 793 | 8,411 |
Operating income (loss) | (52,878) | 22,438 | (77,891) | 62,670 |
Other expense (income) | ||||
Interest expense | 6,785 | 7,607 | 13,918 | 15,234 |
Deferred financing costs written off | 0 | 0 | 2,588 | 0 |
Foreign exchange (gains) losses and other, net | (10,014) | 4,055 | (11,394) | (2,601) |
Total other expense (income) | (3,229) | 11,662 | 5,112 | 12,633 |
Income (loss) before income taxes | (49,649) | 10,776 | (83,003) | 50,037 |
Provision (benefit) for income tax expense | (21,147) | 1,911 | (31,553) | 12,516 |
Net income (loss) | (28,502) | 8,865 | (51,450) | 37,521 |
Less: Income (loss) attributable to noncontrolling interest | 35 | (9) | 30 | (25) |
Net income (loss) attributable to common stockholders | $ (28,537) | $ 8,874 | $ (51,480) | $ 37,546 |
Weighted average shares outstanding | ||||
Basic (in shares) | 90,707 | 89,767 | 90,592 | 89,625 |
Diluted (in shares) | 90,707 | 91,884 | 90,592 | 91,597 |
Earnings (losses) per share | ||||
Basic (in dollars per share) | $ (0.31) | $ 0.10 | $ (0.57) | $ 0.42 |
Diluted (in dollars per share) | $ (0.31) | $ 0.10 | $ (0.57) | $ 0.41 |
Other comprehensive income (loss), net of tax: | ||||
Net income (loss) | $ (28,502) | $ 8,865 | $ (51,450) | $ 37,521 |
Change in foreign currency translation, net of tax of $0 | (22,847) | 25,491 | (19,375) | (11,806) |
Gain (loss) on pension liability | 24 | (29) | (19) | 70 |
Comprehensive income (loss) | (51,325) | 34,327 | (70,844) | 25,785 |
Less: comprehensive loss (income) attributable to noncontrolling interests | (36) | 11 | (129) | 54 |
Comprehensive income (loss) attributable to common stockholders | $ (51,361) | $ 34,338 | $ (70,973) | $ 25,839 |
Condensed consolidated stateme3
Condensed consolidated statements of comprehensive income (loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Change in foreign currency translation, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed consolidated balance
Condensed consolidated balance sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 137,229 | $ 109,249 |
Accounts receivable—trade, net | 94,414 | 138,597 |
Inventories, net | 375,035 | 424,121 |
Prepaid expenses and other current assets | 23,954 | 33,836 |
Costs and estimated profits in excess of billings | 9,882 | 12,009 |
Total current assets | 640,514 | 717,812 |
Property and equipment, net of accumulated depreciation | 173,580 | 186,667 |
Deferred financing costs, net | 1,581 | 4,125 |
Intangibles, net | 232,519 | 246,650 |
Goodwill | 662,929 | 669,036 |
Investment in unconsolidated subsidiary | 58,109 | 57,719 |
Deferred income taxes, net | 736 | 780 |
Other long-term assets | 3,218 | 3,253 |
Total assets | 1,773,186 | 1,886,042 |
Current liabilities | ||
Current portion of long-term debt | 44 | 253 |
Accounts payable—trade | 69,041 | 76,823 |
Accrued liabilities | 51,137 | 58,563 |
Deferred revenue | 9,092 | 7,283 |
Billings in excess of costs and profits recognized | 2,387 | 8,631 |
Total current liabilities | 131,701 | 151,553 |
Long-term debt, net of current portion | 396,334 | 396,016 |
Deferred income taxes, net | 18,684 | 51,100 |
Other long-term liabilities | 30,859 | 29,956 |
Total liabilities | 577,578 | 628,625 |
Commitments and contingencies | ||
Equity | ||
Common stock, $0.01 par value, 296,000,000 shares authorized, 99,410,389 and 98,605,902 shares issued | 994 | 986 |
Additional paid-in capital | 900,469 | 891,248 |
Treasury stock at cost, 8,154,226 and 8,145,802 shares | (133,511) | (133,318) |
Retained earnings | 528,672 | 580,152 |
Accumulated other comprehensive income (loss) | (101,542) | (82,048) |
Total stockholders’ equity | 1,195,082 | 1,257,020 |
Noncontrolling interest in subsidiary | 526 | 397 |
Total equity | 1,195,608 | 1,257,417 |
Total liabilities and equity | $ 1,773,186 | $ 1,886,042 |
Condensed consolidated balance5
Condensed consolidated balance sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 296,000,000 | 296,000,000 |
Common Stock, shares issued | 99,410,389 | 98,605,902 |
Treasury Stock, shares, at cost | 8,154,226 | 8,145,802 |
Condensed consolidated stateme6
Condensed consolidated statements of cash flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||
Net income (loss) | $ (51,450) | $ 37,521 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Depreciation expense | 18,329 | 18,996 |
Amortization of intangible assets | 13,231 | 13,671 |
Share-based compensation expense | 10,322 | 11,814 |
Deferred income taxes | (33,412) | 69 |
Deferred financing costs written off | 2,588 | 0 |
Inventory write down | 22,733 | 3,285 |
Earnings from equity investment, net of distributions | (389) | (5,633) |
Other | 2,068 | 2,588 |
Changes in operating assets and liabilities | ||
Accounts receivable—trade | 41,679 | 90,944 |
Inventories | 27,279 | (42,294) |
Prepaid expenses and other current assets | 6,342 | (4,729) |
Accounts payable, deferred revenue and other accrued liabilities | (10,220) | (62,388) |
Costs and estimated profits in excess of billings, net | (4,183) | (7,960) |
Net cash provided by operating activities | 44,917 | 55,884 |
Cash flows from investing activities | ||
Acquisition of businesses, net of cash acquired | (2,700) | (60,836) |
Capital expenditures for property and equipment | (10,040) | (19,680) |
Proceeds from sale of business, property and equipment | 3,710 | 1,408 |
Net cash used in investing activities | (9,030) | (79,108) |
Cash flows from financing activities | ||
Borrowings under Credit Facility | 0 | 79,943 |
Repayment of long-term debt | (238) | (70,580) |
Excess tax benefits from stock based compensation | 0 | 106 |
Repurchases of stock | (192) | (6,194) |
Proceeds from stock issuance | 203 | 2,280 |
Deferred financing costs | (513) | 0 |
Net cash provided by (used in) financing activities | (740) | 5,555 |
Effect of exchange rate changes on cash | (7,167) | (1,069) |
Net increase (decrease) in cash and cash equivalents | 27,980 | (18,738) |
Cash and cash equivalents | ||
Beginning of period | 109,249 | 76,579 |
End of period | $ 137,229 | $ 57,841 |
Organization and basis of prese
Organization and basis of presentation | 6 Months Ended |
Jun. 30, 2016 | |
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 (loss) of this entity is recorded as "Earnings from equity investment" in the unaudited condensed consolidated statements of comprehensive income (loss). The investment in this entity is included in "Investment in unconsolidated subsidiary" in the unaudited condensed consolidated balance sheets. The Company reports its share of equity earnings within operating income (loss) 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 six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 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, 2015 , which are included in the Company’s 2015 Annual Report on Form 10-K filed with the SEC on February 26, 2016 (the "Annual Report"). |
Recent accounting pronouncement
Recent accounting pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
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 May 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-11 Revenue recognition (Topic 605) and Derivatives and Hedging (Topic 815) - Rescission of SEC Guidance Because of Accounting Standards Updates No. 2014-09 and No. 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. This new guidance rescinded certain SEC staff observer comments in Topic 605 related to revenue and expense recognition for freight services in process and accounting for shipping and handling fees and costs, Topic 932 related to gas-balancing arrangements, and Topic 815 nature of a host contract related to a hybrid instrument issued in the form of a share. ASU 2016-11 is effectively immediately and is not expected to have a material impact on the Company's consolidated financial statements. In March, April and May 2016, the FASB issued a series of ASUs on revenue standards, including No. 2016-08 Revenue from Contracts with Customers (Topic 606) - Principal versus Agent Considerations, No.2016-10, Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing, and No. 2016-12 Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients. ASU No. 2016-08 amended the guidance in the new revenue standard on assessing whether an entity is a principal or an agent in a revenue transaction, which impacts whether an entity reports revenue on a gross or net basis. ASU No. 2016-10 amended and clarified the guidance in the new revenue standard on identifying performance obligation and accounting for licenses of intellectual property and addressed the implementation issues. ASU No. 2016-12 amended and updated only the narrow aspects of Topic 606. The above standards will take effect for public companies for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of the adoption of the above guidance. In March 2016, the FASB issued ASU No.2016-09, Improvements to Employee Share-Based Payment Accounting. This new guidance includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements: a) All excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement; b) Excess tax benefits should be classified along with other income tax cash flows as an operating activity; c) An entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur; d) The threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions; e) Cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. There are also two additional provisions for non-public entities that do not apply to the Company. The standard will take effect for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of the adoption of this guidance. In February 2016, the FASB issued ASU No.2016-02, Leases. Under this new guidance, lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of greater than twelve months. The standard will take effect for public companies with fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of the adoption of this guidance. 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 | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2016 Acquisition In April 2016, the Company completed the acquisition of the wholesale completion packers business of Team Oil Tools, Inc. The acquisition includes a wide variety of completion and service tools, including retrievable and permanent packers, bridge plugs, and accessories which are sold to the oilfield service providers, packer repair companies and distributors on a global basis, and is included in the Completions segment. The fair values of the assets acquired and liabilities assumed have not been presented because it is not material to the unaudited condensed consolidated financial statements. 2015 Acquisition Effective February 2, 2015, the Company completed the acquisition of J-Mac Tool, Inc. ("J-Mac") for consideration of $61.9 million , including $1.1 million not yet paid until the review of working capital is finalized. 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 Completions segment. The following table summarizes the 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 $ 36,174 Property and equipment 11,506 Intangible assets (primarily customer relationships) 10,400 Tax-deductible goodwill 13,977 Current liabilities (10,129 ) Long-term liabilities (22 ) Net assets acquired $ 61,906 Revenues and net income (loss) related to the acquisitions were not significant for the current and prior periods presented in this report. Pro forma results of operations for 2015 and 2016 acquisitions have not been presented because the effects were not material to the unaudited condensed consolidated financial statements on either an individual or aggregate basis. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The Company's significant components of inventory at June 30, 2016 and December 31, 2015 were as follows (in thousands): June 30, December 31, Raw materials and parts $ 121,140 $ 148,372 Work in process 29,071 38,381 Finished goods 311,004 315,256 Gross inventories 461,215 502,009 Inventory reserve (86,180 ) (77,888 ) Inventories $ 375,035 $ 424,121 |
Goodwill and intangible assets
Goodwill and intangible assets | 6 Months Ended |
Jun. 30, 2016 | |
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, 2015 to June 30, 2016 , were as follows (in thousands): Drilling & Subsea Completions Production & Infrastructure Total Goodwill Balance at December 31, 2015, net $ 334,595 $ 316,914 $ 17,527 $ 669,036 Acquisitions — — — — Impact of non-U.S. local currency translation (8,014 ) 1,689 218 (6,107 ) Goodwill Balance at June 30, 2016, net $ 326,581 $ 318,603 $ 17,745 $ 662,929 The Company performs its annual impairment tests of goodwill as of October 1. There was no impairment of goodwill during the three months and six months ended June 30, 2016 . Accumulated impairment losses on goodwill were $168.8 million as of June 30, 2016 and December 31, 2015 . Intangible assets Intangible assets consisted of the following as of June 30, 2016 and December 31, 2015 , respectively (in thousands): June 30, 2016 Gross carrying amount Accumulated amortization Net amortizable intangibles Amortization period (in years) Customer relationships $ 275,707 $ (108,591 ) $ 167,116 4-15 Patents and technology 34,271 (11,228 ) 23,043 5-17 Non-compete agreements 7,550 (6,494 ) 1,056 3-6 Trade names 45,113 (16,757 ) 28,356 10-15 Distributor relationships 22,160 (14,442 ) 7,718 8-15 Trademark 5,230 — 5,230 Indefinite Intangible Assets Total $ 390,031 $ (157,512 ) $ 232,519 December 31, 2015 Gross carrying amount Accumulated amortization Net amortizable intangibles Amortization period (in years) Customer relationships $ 280,297 $ (101,636 ) $ 178,661 4-15 Patents and technology 34,140 (10,264 ) 23,876 5-17 Non-compete agreements 7,269 (6,292 ) 977 3-6 Trade names 45,446 (15,890 ) 29,556 10-15 Distributor relationships 22,160 (13,810 ) 8,350 8-15 Trademark 5,230 — 5,230 Indefinite Intangible Assets Total $ 394,542 $ (147,892 ) $ 246,650 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Notes payable and lines of credit as of June 30, 2016 and December 31, 2015 consisted of the following (in thousands): June 30, December 31, 6.25% Senior Notes due October 2021 $ 400,000 $ 400,000 Unamortized debt premium 2,192 2,395 Deferred financing cost (5,874 ) (6,425 ) Senior secured revolving credit facility — — Other debt 60 299 Total debt 396,378 396,269 Less: current maturities 44 253 Long-term debt $ 396,334 $ 396,016 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 On February 25, 2016, the Company amended its senior secured credit facility (the "Credit Facility" and such amendment, the "Amended Facility") to reduce commitment fees and provide borrowing capacity for general corporate purposes. The Amended Facility provides for a revolving credit line of up to $200.0 million , including up to $25.0 million available for letters of credit and up to $10.0 million in swingline loans. Availability under the Amended Facility is subject to a borrowing base calculated by reference to eligible accounts receivable in the United States, United Kingdom and Canada, eligible inventory in the United States, and cash on hand. The Amended Facility reduced the borrowing capacity from $600.0 million to $200.0 million . Accordingly, the Company has written off $ 2.6 million of the deferred financing costs related to the Credit Facility. The Credit Facility matures in November 2018. As of June 30, 2016 , we had no borrowings outstanding under the Credit Facility, and $10.5 million of outstanding letters of credit. As of June 30, 2016 , the Company had the capacity to borrow an additional $189.5 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 June 30, 2016 . |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company's effective tax rate was 38.0% for the six months ended June 30, 2016 and 25.0% for the six months ended June 30, 2015 . The effective tax rate was 42.6% for the three months ended June 30, 2016 and 17.7% for the three months ended June 30, 2015 . The tax rates for the three months ended and six months ended June 30, 2016 are higher than the comparable period in 2015 primarily due to the losses incurred in the United States, which are benefited at a higher statutory tax rate, offset by earnings 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 and losses. |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements At June 30, 2016 , the Company had no debt outstanding under the Credit Facility, and $10.5 million of outstanding letters of credit. Substantially all of the debt, if any, under the Credit Facility 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 June 30, 2016 , the fair value and the carrying value of the Company’s Senior Notes approximated $371.0 million and $402.2 million , respectively. At December 31, 2015 , the fair value and the carrying value of the Company’s Senior Notes approximated $334.1 million and $402.5 million , respectively. There were no outstanding financial assets as of June 30, 2016 and December 31, 2015 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 six months ended June 30, 2016 . |
Business segments
Business segments | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Business segments | Business segments Beginning with the first quarter of 2016, the Company realigned its segments. Completions was designated as a separate segment in recognition of its expanded operations and its significant growth potential. The Company is reporting its results of operations in the following three reportable segments: Drilling & Subsea, Completions and Production & Infrastructure, instead of the original two reportable segments. Management’s change in the composition of the Company’s reporting segments was made in order to align with activity drivers and the customers of our product group, and how management reviews and evaluates operating performance. This change will be reflected on a retrospective basis in accordance with GAAP, with prior years adjusted to reflect the change in reporting segments. The amounts indicated below as "Corporate" relate to costs and assets not allocated to the reportable operating segments. Summary financial data by segment follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Revenue: Drilling & Subsea $ 56,734 $ 129,719 $ 122,029 $ 293,272 Completions 24,467 72,342 58,771 166,838 Production & Infrastructure 61,823 82,536 122,334 173,059 Intersegment eliminations (301 ) (182 ) (970 ) (658 ) Total revenue $ 142,723 $ 284,415 $ 302,164 $ 632,511 Operating income (loss): Drilling & Subsea $ (20,533 ) $ 10,292 $ (30,356 ) $ 30,131 Completions (28,024 ) 10,856 (34,482 ) 31,425 Production & Infrastructure 2,578 9,433 1,207 17,423 Corporate (6,787 ) (8,083 ) (14,014 ) (16,344 ) Total segment operating income (loss) (52,766 ) 22,498 (77,645 ) 62,635 Transaction expenses 64 23 230 240 Loss (gain) on sale of assets and other 48 37 16 (275 ) Income (loss) from operations $ (52,878 ) $ 22,438 $ (77,891 ) $ 62,670 A summary of consolidated assets by reportable segment is as follows (in thousands): June 30, December 31, Assets Drilling & Subsea $ 818,996 $ 912,324 Completions 700,588 728,745 Production & Infrastructure 183,770 187,741 Corporate 69,832 57,232 Total assets $ 1,773,186 $ 1,886,042 Corporate assets include, among other items, prepaid assets, cash and deferred financing costs. |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share The calculation of basic and diluted earnings (losses) per share for each period presented was as follows (dollars and shares in thousands, except per share amounts): Three months ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net Income (loss) attributable to common stockholders $ (28,537 ) $ 8,874 $ (51,480 ) $ 37,546 Average shares outstanding (basic) 90,707 89,767 90,592 89,625 Common stock equivalents — 2,117 — 1,972 Diluted shares 90,707 91,884 90,592 91,597 Earnings (losses) per share Basic earnings (losses) per share $ (0.31 ) $ 0.10 $ (0.57 ) $ 0.42 Diluted earnings (losses) per share $ (0.31 ) $ 0.10 $ (0.57 ) $ 0.41 The diluted earnings per share calculation excludes all stock options for the three months and six months ended June 30, 2016 , because there is a net loss for each period. The diluted earnings per share calculation excludes approximately 1.3 million stock options for the three months ended June 30, 2015 , and 1.7 million stock options for the six months ended June 30, 2015 , 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 | 6 Months Ended |
Jun. 30, 2016 | |
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. Reserves have been established that are believed to be appropriate in light of the outcomes that are considered to be probable and can be reasonably estimated. The reserves accrued at June 30, 2016 and December 31, 2015 , respectively, are immaterial. |
Stockholders' equity
Stockholders' equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders' equity Share-based compensation During the six months ended June 30, 2016 , the Company granted 818,620 options and 1,712,639 shares of restricted stock or restricted stock units, which includes 257,900 performance share awards with a market condition. The stock options were granted with exercise prices of $9.39 . Of the restricted stock or restricted stock units granted, 1,334,922 vest ratably over four years on each anniversary of the grant date. 119,817 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 grant date. 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 | 6 Months Ended |
Jun. 30, 2016 | |
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 unaudited condensed consolidated financial statements. |
Condensed consolidating financi
Condensed consolidating financial statements | 6 Months Ended |
Jun. 30, 2016 | |
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 (loss) Three months ended June 30, 2016 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 103,062 $ 50,880 $ (11,219 ) $ 142,723 Cost of sales — 107,801 41,734 (12,093 ) 137,442 Gross profit — (4,739 ) 9,146 874 5,281 Operating expenses Selling, general and administrative expenses — 46,866 11,397 — 58,263 Transaction expenses — 64 — — 64 Loss (gain) on sale of assets and other — 215 (167 ) — 48 Total operating expenses — 47,145 11,230 — 58,375 Earnings from equity investment — 216 — — 216 Equity earnings from affiliate, net of tax (24,128 ) 7,235 — 16,893 — Operating income (loss) (24,128 ) (44,433 ) (2,084 ) 17,767 (52,878 ) Other expense (income) Interest expense (income) 6,783 (2 ) 4 — 6,785 Foreign exchange (gains) losses and other, net — (451 ) (9,563 ) — (10,014 ) Total other expense (income) 6,783 (453 ) (9,559 ) — (3,229 ) Income (loss) before income taxes (30,911 ) (43,980 ) 7,475 17,767 (49,649 ) Provision (benefit) for income tax expense (2,374 ) (19,852 ) 1,079 — (21,147 ) Net income (loss) (28,537 ) (24,128 ) 6,396 17,767 (28,502 ) Less: Income (loss) attributable to noncontrolling interest — — 35 — 35 Net income (loss) attributable to common stockholders (28,537 ) (24,128 ) 6,361 17,767 (28,537 ) Other comprehensive income (loss), net of tax: Net income (loss) (28,537 ) (24,128 ) 6,396 17,767 (28,502 ) Change in foreign currency translation, net of tax of $0 (22,847 ) (22,847 ) (22,847 ) 45,694 (22,847 ) Change in pension liability 24 24 24 (48 ) 24 Comprehensive income (loss) (51,360 ) (46,951 ) (16,427 ) 63,413 (51,325 ) Less: comprehensive (income) loss attributable to noncontrolling interests — — (36 ) — (36 ) Comprehensive income (loss) attributable to common stockholders $ (51,360 ) $ (46,951 ) $ (16,463 ) $ 63,413 $ (51,361 ) Condensed consolidating statements of comprehensive income (loss) Three months ended June 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 209,234 $ 102,363 $ (27,182 ) $ 284,415 Cost of sales — 155,127 71,771 (27,366 ) 199,532 Gross profit — 54,107 30,592 184 84,883 Operating expenses Selling, general and administrative expenses — 52,426 13,799 — 66,225 Transaction expenses — 23 — — 23 Loss (gain) on sale of assets and other — 53 (16 ) — 37 Total operating expenses — 52,502 13,783 — 66,285 Earnings from equity investment — 3,840 — — 3,840 Equity earnings from affiliates, net of tax 13,830 10,594 — (24,424 ) — Operating income (loss) 13,830 16,039 16,809 (24,240 ) 22,438 Other expense (income) Interest expense (income) 7,624 — (17 ) — 7,607 Foreign exchange (gains) losses and other, net — 31 4,024 — 4,055 Total other expense (income) 7,624 31 4,007 — 11,662 Income (loss) before income taxes 6,206 16,008 12,802 (24,240 ) 10,776 Provision (benefit) for income tax expense (2,668 ) 2,178 2,401 — 1,911 Net income (loss) 8,874 13,830 10,401 (24,240 ) 8,865 Less: Income (loss) attributable to noncontrolling interest — — (9 ) — (9 ) Net income (loss) attributable to common stockholders 8,874 13,830 10,410 (24,240 ) 8,874 Other comprehensive income (loss), net of tax: Net income (loss) 8,874 13,830 10,401 (24,240 ) 8,865 Change in foreign currency translation, net of tax of $0 25,491 25,491 25,491 (50,982 ) 25,491 Change in pension liability (29 ) (29 ) (29 ) 58 (29 ) Comprehensive income (loss) 34,336 39,292 35,863 (75,164 ) 34,327 Less: comprehensive (income) loss attributable to noncontrolling interests — — 11 — 11 Comprehensive income (loss) attributable to common stockholders $ 34,336 $ 39,292 $ 35,874 $ (75,164 ) $ 34,338 Condensed consolidating statements of comprehensive income (loss) Six months ended June 30, 2016 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 220,377 $ 106,514 $ (24,727 ) $ 302,164 Cost of sales — 200,417 86,864 (24,955 ) 262,326 Gross profit — 19,960 19,650 228 39,838 Operating expenses Selling, general and administrative expenses — 94,530 23,746 — 118,276 Transaction expenses — 230 — — 230 Loss (gain) on sale of assets and other — 180 (164 ) — 16 Total operating expenses — 94,940 23,582 — 118,522 Earnings from equity investment — 793 — — 793 Equity earnings from affiliates, net of tax (40,741 ) 6,147 — 34,594 — Operating income (loss) (40,741 ) (68,040 ) (3,932 ) 34,822 (77,891 ) Other expense (income) Interest expense (income) 13,931 (16 ) 3 — 13,918 Deferred loan costs written off 2,588 — — — 2,588 Foreign exchange (gains) losses and other, net — (533 ) (10,861 ) — (11,394 ) Total other expense (income) 16,519 (549 ) (10,858 ) — 5,112 Income (loss) before income taxes (57,260 ) (67,491 ) 6,926 34,822 (83,003 ) Provision (benefit) for income tax expense (5,780 ) (26,750 ) 977 — (31,553 ) Net income (loss) (51,480 ) (40,741 ) 5,949 34,822 (51,450 ) Less: Income (loss) attributable to noncontrolling interest — — 30 — 30 Net income (loss) attributable to common stockholders (51,480 ) (40,741 ) 5,919 34,822 (51,480 ) Other comprehensive income (loss), net of tax: Net income (loss) (51,480 ) (40,741 ) 5,949 34,822 (51,450 ) Change in foreign currency translation, net of tax of $0 (19,375 ) (19,375 ) (19,375 ) 38,750 (19,375 ) Change in pension liability (19 ) (19 ) (19 ) 38 (19 ) Comprehensive income (loss) (70,874 ) (60,135 ) (13,445 ) 73,610 (70,844 ) Less: comprehensive (income) loss attributable to noncontrolling interests — — (129 ) — (129 ) Comprehensive income (loss) attributable to common stockholders $ (70,874 ) $ (60,135 ) $ (13,574 ) $ 73,610 $ (70,973 ) Condensed consolidating statements of comprehensive income (loss) Six Months Ended June 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 478,433 $ 222,680 $ (68,602 ) $ 632,511 Cost of sales — 343,894 161,446 (66,838 ) 438,502 Gross profit — 134,539 61,234 (1,764 ) 194,009 Operating expenses Selling, general and administrative expenses — 109,798 29,987 — 139,785 Transaction expenses — 240 — — 240 Loss (gain) on sale of assets and other — (58 ) (217 ) — (275 ) Total operating expenses — 109,980 29,770 — 139,750 Earnings from equity investment — 8,411 — — 8,411 Equity earnings from affiliates, net of tax 47,434 26,830 — (74,264 ) — Operating income (loss) 47,434 59,800 31,464 (76,028 ) 62,670 Other expense (income) Interest expense (income) 15,212 14 8 — 15,234 Foreign exchange (gains) losses and other, net — (154 ) (2,447 ) — (2,601 ) Total other expense (income) 15,212 (140 ) (2,439 ) — 12,633 Income (loss) before income taxes 32,222 59,940 33,903 (76,028 ) 50,037 Provision (benefit) for income tax expense (5,324 ) 12,506 5,334 — 12,516 Net income (loss) 37,546 47,434 28,569 (76,028 ) 37,521 Less: Income (loss) attributable to noncontrolling interest — — (25 ) — (25 ) Net income (loss) attributable to common stockholders 37,546 47,434 28,594 (76,028 ) 37,546 Other comprehensive income (loss), net of tax: Net income (loss) 37,546 47,434 28,569 (76,028 ) 37,521 Change in foreign currency translation, net of tax of $0 (11,806 ) (11,806 ) (11,806 ) 23,612 (11,806 ) Change in pension liability 70 70 70 (140 ) 70 Comprehensive income (loss) 25,810 35,698 16,833 (52,556 ) 25,785 Less: comprehensive (income) loss attributable to noncontrolling interests — — 54 — 54 Comprehensive income (loss) attributable to common stockholders $ 25,810 $ 35,698 $ 16,887 $ (52,556 ) $ 25,839 Condensed consolidating balance sheets June 30, 2016 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets Current assets Cash and cash equivalents $ — $ 56,637 $ 80,592 $ — $ 137,229 Accounts receivable—trade, net — 57,119 37,295 — 94,414 Inventories — 289,728 94,483 (9,176 ) 375,035 Cost and profits in excess of billings — 6,574 3,308 — 9,882 Other current assets — 16,759 7,195 — 23,954 Total current assets — 426,817 222,873 (9,176 ) 640,514 Property and equipment, net of accumulated depreciation — 145,035 28,545 — 173,580 Deferred financing costs, net 1,581 — — — 1,581 Deferred income taxes, net — — 736 — 736 Intangibles — 176,649 55,870 — 232,519 Goodwill — 481,374 181,555 — 662,929 Investment in unconsolidated subsidiary — 58,109 — — 58,109 Investment in affiliates 1,128,470 481,545 — (1,610,015 ) — Long-term advances to affiliates 468,023 — 60,621 (528,644 ) — Other long-term assets — 2,485 733 — 3,218 Total assets $ 1,598,074 $ 1,772,014 $ 550,933 $ (2,147,835 ) $ 1,773,186 Liabilities and equity Current liabilities Current portion of long-term debt $ — $ 33 $ 11 $ — $ 44 Accounts payable—trade — 54,250 14,791 — 69,041 Accrued liabilities 6,674 35,939 8,524 — 51,137 Deferred revenue — 1,831 7,261 — 9,092 Billings in excess of costs and profits — 365 2,022 — 2,387 Total current liabilities 6,674 92,418 32,609 — 131,701 Long-term debt, net of current portion 396,318 9 7 — 396,334 Long-term payables to affiliates — 528,644 — (528,644 ) — Deferred income taxes, net — 6,353 12,331 — 18,684 Other long-term liabilities — 16,120 14,739 — 30,859 Total liabilities 402,992 643,544 59,686 (528,644 ) 577,578 Total stockholder's equity 1,195,082 1,128,470 490,721 (1,619,191 ) 1,195,082 Noncontrolling interest in subsidiary — — 526 — 526 Equity 1,195,082 1,128,470 491,247 (1,619,191 ) 1,195,608 Total liabilities and equity $ 1,598,074 $ 1,772,014 $ 550,933 $ (2,147,835 ) $ 1,773,186 Condensed consolidating balance sheets December 31, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets Current assets Cash and cash equivalents $ — $ 36,884 $ 72,365 $ — $ 109,249 Accounts receivable—trade, net — 85,537 53,060 — 138,597 Inventories — 318,360 115,165 (9,404 ) 424,121 Cost and profits in excess of billings — 6,477 5,532 — 12,009 Other current assets — 25,447 8,389 — 33,836 Total current assets — 472,705 254,511 (9,404 ) 717,812 Property and equipment, net of accumulated depreciation — 153,995 32,672 — 186,667 Deferred financing costs, net 4,125 — — — 4,125 Deferred income tax, net — — 780 — 780 Intangibles — 186,234 60,416 — 246,650 Goodwill — 481,374 187,662 — 669,036 Investment in unconsolidated subsidiary — 57,719 — — 57,719 Investment in affiliates 1,188,707 514,893 — (1,703,600 ) — Long-term advances to affiliates 467,184 — 60,221 (527,405 ) — Other long-term assets — 2,549 704 — 3,253 Total assets $ 1,660,016 $ 1,869,469 $ 596,966 $ (2,240,409 ) $ 1,886,042 Liabilities and equity Current liabilities Current portion of long-term debt $ — $ 243 $ 10 $ — $ 253 Accounts payable—trade $ — $ 57,529 $ 19,294 $ — $ 76,823 Accrued liabilities 7,027 40,874 10,662 — 58,563 Deferred revenue — 1,334 5,949 — 7,283 Billings in excess of costs and profits recognized — 1,872 6,759 — 8,631 Total current liabilities 7,027 101,852 42,674 — 151,553 Long-term debt, net of current portion 395,970 34 12 — 396,016 Long-term payables to affiliates — 527,406 — (527,406 ) — Deferred income taxes, net — 36,937 14,163 — 51,100 Other long-term liabilities — 14,533 15,423 — 29,956 Total liabilities 402,997 680,762 72,272 (527,406 ) 628,625 Total stockholder's equity 1,257,019 1,188,707 524,297 (1,713,003 ) 1,257,020 Noncontrolling interest in subsidiary — — 397 — 397 Equity 1,257,019 1,188,707 524,694 (1,713,003 ) 1,257,417 Total liabilities and equity $ 1,660,016 $ 1,869,469 $ 596,966 $ (2,240,409 ) $ 1,886,042 Condensed consolidating statements of cash flows Six months ended June 30, 2016 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from (used in) operating activities $ (8,981 ) $ 34,792 $ 39,106 $ (20,000 ) $ 44,917 Cash flows from investing activities Acquisition of businesses, net of cash acquired — (2,700 ) — — (2,700 ) Capital expenditures for property and equipment — (7,455 ) (2,585 ) — (10,040 ) Long-term loans and advances to affiliates 9,483 1,483 — (10,966 ) — Other — 3,354 356 — 3,710 Net cash provided by (used in) investing activities $ 9,483 $ (5,318 ) $ (2,229 ) $ (10,966 ) $ (9,030 ) Cash flows from financing activities Borrowings (repayment) of long-term debt — (238 ) — — (238 ) Long-term loans and advances to affiliates — (9,483 ) (1,483 ) 10,966 — Dividend paid to affiliates — — (20,000 ) 20,000 — Other (502 ) — — — (502 ) Net cash provided by (used in) financing activities $ (502 ) $ (9,721 ) $ (21,483 ) $ 30,966 $ (740 ) Effect of exchange rate changes on cash — — (7,167 ) — (7,167 ) Net increase (decrease) in cash and cash equivalents — 19,753 8,227 — 27,980 Cash and cash equivalents Beginning of period — 36,884 72,365 — 109,249 End of period $ — $ 56,637 $ 80,592 $ — $ 137,229 Condensed consolidating statements of cash flows Six Months Ended June 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from (used in) operating activities $ (8,592 ) $ 45,908 $ 18,568 $ — $ 55,884 Cash flows from investing activities Acquisition of businesses, net of cash acquired — (60,836 ) — — (60,836 ) Capital expenditures for property and equipment — (14,646 ) (5,034 ) — (19,680 ) Long-term loans and advances to affiliates (2,947 ) 37,346 — (34,399 ) — Other — 833 575 — 1,408 Net cash provided by (used in) investing activities $ (2,947 ) $ (37,303 ) $ (4,459 ) $ (34,399 ) $ (79,108 ) Cash flows from financing activities Repayment of long-term debt 9,796 (425 ) (8 ) — 9,363 Long-term loans and advances to affiliates — 2,947 (37,346 ) 34,399 — Other (3,808 ) — — — (3,808 ) Net cash provided by (used in) financing activities $ 5,988 $ 2,522 $ (37,354 ) $ 34,399 $ 5,555 Effect of exchange rate changes on cash — — (1,069 ) — (1,069 ) Net increase (decrease) in cash and cash equivalents (5,551 ) 11,127 (24,314 ) — (18,738 ) Cash and cash equivalents Beginning of period 5,551 4,006 67,022 — 76,579 End of period $ — $ 15,133 $ 42,708 $ — $ 57,841 |
Recent accounting pronounceme21
Recent accounting pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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 May 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-11 Revenue recognition (Topic 605) and Derivatives and Hedging (Topic 815) - Rescission of SEC Guidance Because of Accounting Standards Updates No. 2014-09 and No. 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. This new guidance rescinded certain SEC staff observer comments in Topic 605 related to revenue and expense recognition for freight services in process and accounting for shipping and handling fees and costs, Topic 932 related to gas-balancing arrangements, and Topic 815 nature of a host contract related to a hybrid instrument issued in the form of a share. ASU 2016-11 is effectively immediately and is not expected to have a material impact on the Company's consolidated financial statements. In March, April and May 2016, the FASB issued a series of ASUs on revenue standards, including No. 2016-08 Revenue from Contracts with Customers (Topic 606) - Principal versus Agent Considerations, No.2016-10, Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing, and No. 2016-12 Revenue from Contracts with Customers (Topic 606) - Narrow-Scope Improvements and Practical Expedients. ASU No. 2016-08 amended the guidance in the new revenue standard on assessing whether an entity is a principal or an agent in a revenue transaction, which impacts whether an entity reports revenue on a gross or net basis. ASU No. 2016-10 amended and clarified the guidance in the new revenue standard on identifying performance obligation and accounting for licenses of intellectual property and addressed the implementation issues. ASU No. 2016-12 amended and updated only the narrow aspects of Topic 606. The above standards will take effect for public companies for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of the adoption of the above guidance. In March 2016, the FASB issued ASU No.2016-09, Improvements to Employee Share-Based Payment Accounting. This new guidance includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements: a) All excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement; b) Excess tax benefits should be classified along with other income tax cash flows as an operating activity; c) An entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur; d) The threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions; e) Cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. There are also two additional provisions for non-public entities that do not apply to the Company. The standard will take effect for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of the adoption of this guidance. In February 2016, the FASB issued ASU No.2016-02, Leases. Under this new guidance, lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of greater than twelve months. The standard will take effect for public companies with fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of the adoption of this guidance. 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) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Acquisitions | The following table summarizes the 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 $ 36,174 Property and equipment 11,506 Intangible assets (primarily customer relationships) 10,400 Tax-deductible goodwill 13,977 Current liabilities (10,129 ) Long-term liabilities (22 ) Net assets acquired $ 61,906 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The Company's significant components of inventory at June 30, 2016 and December 31, 2015 were as follows (in thousands): June 30, December 31, Raw materials and parts $ 121,140 $ 148,372 Work in process 29,071 38,381 Finished goods 311,004 315,256 Gross inventories 461,215 502,009 Inventory reserve (86,180 ) (77,888 ) Inventories $ 375,035 $ 424,121 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill from December 31, 2015 to June 30, 2016 , were as follows (in thousands): Drilling & Subsea Completions Production & Infrastructure Total Goodwill Balance at December 31, 2015, net $ 334,595 $ 316,914 $ 17,527 $ 669,036 Acquisitions — — — — Impact of non-U.S. local currency translation (8,014 ) 1,689 218 (6,107 ) Goodwill Balance at June 30, 2016, net $ 326,581 $ 318,603 $ 17,745 $ 662,929 |
Summary of Intangible Assets | Intangible assets consisted of the following as of June 30, 2016 and December 31, 2015 , respectively (in thousands): June 30, 2016 Gross carrying amount Accumulated amortization Net amortizable intangibles Amortization period (in years) Customer relationships $ 275,707 $ (108,591 ) $ 167,116 4-15 Patents and technology 34,271 (11,228 ) 23,043 5-17 Non-compete agreements 7,550 (6,494 ) 1,056 3-6 Trade names 45,113 (16,757 ) 28,356 10-15 Distributor relationships 22,160 (14,442 ) 7,718 8-15 Trademark 5,230 — 5,230 Indefinite Intangible Assets Total $ 390,031 $ (157,512 ) $ 232,519 December 31, 2015 Gross carrying amount Accumulated amortization Net amortizable intangibles Amortization period (in years) Customer relationships $ 280,297 $ (101,636 ) $ 178,661 4-15 Patents and technology 34,140 (10,264 ) 23,876 5-17 Non-compete agreements 7,269 (6,292 ) 977 3-6 Trade names 45,446 (15,890 ) 29,556 10-15 Distributor relationships 22,160 (13,810 ) 8,350 8-15 Trademark 5,230 — 5,230 Indefinite Intangible Assets Total $ 394,542 $ (147,892 ) $ 246,650 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Notes payable and lines of credit as of June 30, 2016 and December 31, 2015 consisted of the following (in thousands): June 30, December 31, 6.25% Senior Notes due October 2021 $ 400,000 $ 400,000 Unamortized debt premium 2,192 2,395 Deferred financing cost (5,874 ) (6,425 ) Senior secured revolving credit facility — — Other debt 60 299 Total debt 396,378 396,269 Less: current maturities 44 253 Long-term debt $ 396,334 $ 396,016 |
Business segments (Tables)
Business segments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summary financial data by segment follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Revenue: Drilling & Subsea $ 56,734 $ 129,719 $ 122,029 $ 293,272 Completions 24,467 72,342 58,771 166,838 Production & Infrastructure 61,823 82,536 122,334 173,059 Intersegment eliminations (301 ) (182 ) (970 ) (658 ) Total revenue $ 142,723 $ 284,415 $ 302,164 $ 632,511 Operating income (loss): Drilling & Subsea $ (20,533 ) $ 10,292 $ (30,356 ) $ 30,131 Completions (28,024 ) 10,856 (34,482 ) 31,425 Production & Infrastructure 2,578 9,433 1,207 17,423 Corporate (6,787 ) (8,083 ) (14,014 ) (16,344 ) Total segment operating income (loss) (52,766 ) 22,498 (77,645 ) 62,635 Transaction expenses 64 23 230 240 Loss (gain) on sale of assets and other 48 37 16 (275 ) Income (loss) from operations $ (52,878 ) $ 22,438 $ (77,891 ) $ 62,670 A summary of consolidated assets by reportable segment is as follows (in thousands): June 30, December 31, Assets Drilling & Subsea $ 818,996 $ 912,324 Completions 700,588 728,745 Production & Infrastructure 183,770 187,741 Corporate 69,832 57,232 Total assets $ 1,773,186 $ 1,886,042 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted earnings (losses) per share for each period presented was as follows (dollars and shares in thousands, except per share amounts): Three months ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net Income (loss) attributable to common stockholders $ (28,537 ) $ 8,874 $ (51,480 ) $ 37,546 Average shares outstanding (basic) 90,707 89,767 90,592 89,625 Common stock equivalents — 2,117 — 1,972 Diluted shares 90,707 91,884 90,592 91,597 Earnings (losses) per share Basic earnings (losses) per share $ (0.31 ) $ 0.10 $ (0.57 ) $ 0.42 Diluted earnings (losses) per share $ (0.31 ) $ 0.10 $ (0.57 ) $ 0.41 |
Condensed consolidating finan28
Condensed consolidating financial statements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Statements of Income and Comprehensive Income | Condensed consolidating statements of comprehensive income (loss) Three months ended June 30, 2016 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 103,062 $ 50,880 $ (11,219 ) $ 142,723 Cost of sales — 107,801 41,734 (12,093 ) 137,442 Gross profit — (4,739 ) 9,146 874 5,281 Operating expenses Selling, general and administrative expenses — 46,866 11,397 — 58,263 Transaction expenses — 64 — — 64 Loss (gain) on sale of assets and other — 215 (167 ) — 48 Total operating expenses — 47,145 11,230 — 58,375 Earnings from equity investment — 216 — — 216 Equity earnings from affiliate, net of tax (24,128 ) 7,235 — 16,893 — Operating income (loss) (24,128 ) (44,433 ) (2,084 ) 17,767 (52,878 ) Other expense (income) Interest expense (income) 6,783 (2 ) 4 — 6,785 Foreign exchange (gains) losses and other, net — (451 ) (9,563 ) — (10,014 ) Total other expense (income) 6,783 (453 ) (9,559 ) — (3,229 ) Income (loss) before income taxes (30,911 ) (43,980 ) 7,475 17,767 (49,649 ) Provision (benefit) for income tax expense (2,374 ) (19,852 ) 1,079 — (21,147 ) Net income (loss) (28,537 ) (24,128 ) 6,396 17,767 (28,502 ) Less: Income (loss) attributable to noncontrolling interest — — 35 — 35 Net income (loss) attributable to common stockholders (28,537 ) (24,128 ) 6,361 17,767 (28,537 ) Other comprehensive income (loss), net of tax: Net income (loss) (28,537 ) (24,128 ) 6,396 17,767 (28,502 ) Change in foreign currency translation, net of tax of $0 (22,847 ) (22,847 ) (22,847 ) 45,694 (22,847 ) Change in pension liability 24 24 24 (48 ) 24 Comprehensive income (loss) (51,360 ) (46,951 ) (16,427 ) 63,413 (51,325 ) Less: comprehensive (income) loss attributable to noncontrolling interests — — (36 ) — (36 ) Comprehensive income (loss) attributable to common stockholders $ (51,360 ) $ (46,951 ) $ (16,463 ) $ 63,413 $ (51,361 ) Condensed consolidating statements of comprehensive income (loss) Three months ended June 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 209,234 $ 102,363 $ (27,182 ) $ 284,415 Cost of sales — 155,127 71,771 (27,366 ) 199,532 Gross profit — 54,107 30,592 184 84,883 Operating expenses Selling, general and administrative expenses — 52,426 13,799 — 66,225 Transaction expenses — 23 — — 23 Loss (gain) on sale of assets and other — 53 (16 ) — 37 Total operating expenses — 52,502 13,783 — 66,285 Earnings from equity investment — 3,840 — — 3,840 Equity earnings from affiliates, net of tax 13,830 10,594 — (24,424 ) — Operating income (loss) 13,830 16,039 16,809 (24,240 ) 22,438 Other expense (income) Interest expense (income) 7,624 — (17 ) — 7,607 Foreign exchange (gains) losses and other, net — 31 4,024 — 4,055 Total other expense (income) 7,624 31 4,007 — 11,662 Income (loss) before income taxes 6,206 16,008 12,802 (24,240 ) 10,776 Provision (benefit) for income tax expense (2,668 ) 2,178 2,401 — 1,911 Net income (loss) 8,874 13,830 10,401 (24,240 ) 8,865 Less: Income (loss) attributable to noncontrolling interest — — (9 ) — (9 ) Net income (loss) attributable to common stockholders 8,874 13,830 10,410 (24,240 ) 8,874 Other comprehensive income (loss), net of tax: Net income (loss) 8,874 13,830 10,401 (24,240 ) 8,865 Change in foreign currency translation, net of tax of $0 25,491 25,491 25,491 (50,982 ) 25,491 Change in pension liability (29 ) (29 ) (29 ) 58 (29 ) Comprehensive income (loss) 34,336 39,292 35,863 (75,164 ) 34,327 Less: comprehensive (income) loss attributable to noncontrolling interests — — 11 — 11 Comprehensive income (loss) attributable to common stockholders $ 34,336 $ 39,292 $ 35,874 $ (75,164 ) $ 34,338 Condensed consolidating statements of comprehensive income (loss) Six months ended June 30, 2016 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 220,377 $ 106,514 $ (24,727 ) $ 302,164 Cost of sales — 200,417 86,864 (24,955 ) 262,326 Gross profit — 19,960 19,650 228 39,838 Operating expenses Selling, general and administrative expenses — 94,530 23,746 — 118,276 Transaction expenses — 230 — — 230 Loss (gain) on sale of assets and other — 180 (164 ) — 16 Total operating expenses — 94,940 23,582 — 118,522 Earnings from equity investment — 793 — — 793 Equity earnings from affiliates, net of tax (40,741 ) 6,147 — 34,594 — Operating income (loss) (40,741 ) (68,040 ) (3,932 ) 34,822 (77,891 ) Other expense (income) Interest expense (income) 13,931 (16 ) 3 — 13,918 Deferred loan costs written off 2,588 — — — 2,588 Foreign exchange (gains) losses and other, net — (533 ) (10,861 ) — (11,394 ) Total other expense (income) 16,519 (549 ) (10,858 ) — 5,112 Income (loss) before income taxes (57,260 ) (67,491 ) 6,926 34,822 (83,003 ) Provision (benefit) for income tax expense (5,780 ) (26,750 ) 977 — (31,553 ) Net income (loss) (51,480 ) (40,741 ) 5,949 34,822 (51,450 ) Less: Income (loss) attributable to noncontrolling interest — — 30 — 30 Net income (loss) attributable to common stockholders (51,480 ) (40,741 ) 5,919 34,822 (51,480 ) Other comprehensive income (loss), net of tax: Net income (loss) (51,480 ) (40,741 ) 5,949 34,822 (51,450 ) Change in foreign currency translation, net of tax of $0 (19,375 ) (19,375 ) (19,375 ) 38,750 (19,375 ) Change in pension liability (19 ) (19 ) (19 ) 38 (19 ) Comprehensive income (loss) (70,874 ) (60,135 ) (13,445 ) 73,610 (70,844 ) Less: comprehensive (income) loss attributable to noncontrolling interests — — (129 ) — (129 ) Comprehensive income (loss) attributable to common stockholders $ (70,874 ) $ (60,135 ) $ (13,574 ) $ 73,610 $ (70,973 ) Condensed consolidating statements of comprehensive income (loss) Six Months Ended June 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 478,433 $ 222,680 $ (68,602 ) $ 632,511 Cost of sales — 343,894 161,446 (66,838 ) 438,502 Gross profit — 134,539 61,234 (1,764 ) 194,009 Operating expenses Selling, general and administrative expenses — 109,798 29,987 — 139,785 Transaction expenses — 240 — — 240 Loss (gain) on sale of assets and other — (58 ) (217 ) — (275 ) Total operating expenses — 109,980 29,770 — 139,750 Earnings from equity investment — 8,411 — — 8,411 Equity earnings from affiliates, net of tax 47,434 26,830 — (74,264 ) — Operating income (loss) 47,434 59,800 31,464 (76,028 ) 62,670 Other expense (income) Interest expense (income) 15,212 14 8 — 15,234 Foreign exchange (gains) losses and other, net — (154 ) (2,447 ) — (2,601 ) Total other expense (income) 15,212 (140 ) (2,439 ) — 12,633 Income (loss) before income taxes 32,222 59,940 33,903 (76,028 ) 50,037 Provision (benefit) for income tax expense (5,324 ) 12,506 5,334 — 12,516 Net income (loss) 37,546 47,434 28,569 (76,028 ) 37,521 Less: Income (loss) attributable to noncontrolling interest — — (25 ) — (25 ) Net income (loss) attributable to common stockholders 37,546 47,434 28,594 (76,028 ) 37,546 Other comprehensive income (loss), net of tax: Net income (loss) 37,546 47,434 28,569 (76,028 ) 37,521 Change in foreign currency translation, net of tax of $0 (11,806 ) (11,806 ) (11,806 ) 23,612 (11,806 ) Change in pension liability 70 70 70 (140 ) 70 Comprehensive income (loss) 25,810 35,698 16,833 (52,556 ) 25,785 Less: comprehensive (income) loss attributable to noncontrolling interests — — 54 — 54 Comprehensive income (loss) attributable to common stockholders $ 25,810 $ 35,698 $ 16,887 $ (52,556 ) $ 25,839 |
Condensed Consolidating Balance Sheets | Condensed consolidating balance sheets June 30, 2016 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets Current assets Cash and cash equivalents $ — $ 56,637 $ 80,592 $ — $ 137,229 Accounts receivable—trade, net — 57,119 37,295 — 94,414 Inventories — 289,728 94,483 (9,176 ) 375,035 Cost and profits in excess of billings — 6,574 3,308 — 9,882 Other current assets — 16,759 7,195 — 23,954 Total current assets — 426,817 222,873 (9,176 ) 640,514 Property and equipment, net of accumulated depreciation — 145,035 28,545 — 173,580 Deferred financing costs, net 1,581 — — — 1,581 Deferred income taxes, net — — 736 — 736 Intangibles — 176,649 55,870 — 232,519 Goodwill — 481,374 181,555 — 662,929 Investment in unconsolidated subsidiary — 58,109 — — 58,109 Investment in affiliates 1,128,470 481,545 — (1,610,015 ) — Long-term advances to affiliates 468,023 — 60,621 (528,644 ) — Other long-term assets — 2,485 733 — 3,218 Total assets $ 1,598,074 $ 1,772,014 $ 550,933 $ (2,147,835 ) $ 1,773,186 Liabilities and equity Current liabilities Current portion of long-term debt $ — $ 33 $ 11 $ — $ 44 Accounts payable—trade — 54,250 14,791 — 69,041 Accrued liabilities 6,674 35,939 8,524 — 51,137 Deferred revenue — 1,831 7,261 — 9,092 Billings in excess of costs and profits — 365 2,022 — 2,387 Total current liabilities 6,674 92,418 32,609 — 131,701 Long-term debt, net of current portion 396,318 9 7 — 396,334 Long-term payables to affiliates — 528,644 — (528,644 ) — Deferred income taxes, net — 6,353 12,331 — 18,684 Other long-term liabilities — 16,120 14,739 — 30,859 Total liabilities 402,992 643,544 59,686 (528,644 ) 577,578 Total stockholder's equity 1,195,082 1,128,470 490,721 (1,619,191 ) 1,195,082 Noncontrolling interest in subsidiary — — 526 — 526 Equity 1,195,082 1,128,470 491,247 (1,619,191 ) 1,195,608 Total liabilities and equity $ 1,598,074 $ 1,772,014 $ 550,933 $ (2,147,835 ) $ 1,773,186 Condensed consolidating balance sheets December 31, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets Current assets Cash and cash equivalents $ — $ 36,884 $ 72,365 $ — $ 109,249 Accounts receivable—trade, net — 85,537 53,060 — 138,597 Inventories — 318,360 115,165 (9,404 ) 424,121 Cost and profits in excess of billings — 6,477 5,532 — 12,009 Other current assets — 25,447 8,389 — 33,836 Total current assets — 472,705 254,511 (9,404 ) 717,812 Property and equipment, net of accumulated depreciation — 153,995 32,672 — 186,667 Deferred financing costs, net 4,125 — — — 4,125 Deferred income tax, net — — 780 — 780 Intangibles — 186,234 60,416 — 246,650 Goodwill — 481,374 187,662 — 669,036 Investment in unconsolidated subsidiary — 57,719 — — 57,719 Investment in affiliates 1,188,707 514,893 — (1,703,600 ) — Long-term advances to affiliates 467,184 — 60,221 (527,405 ) — Other long-term assets — 2,549 704 — 3,253 Total assets $ 1,660,016 $ 1,869,469 $ 596,966 $ (2,240,409 ) $ 1,886,042 Liabilities and equity Current liabilities Current portion of long-term debt $ — $ 243 $ 10 $ — $ 253 Accounts payable—trade $ — $ 57,529 $ 19,294 $ — $ 76,823 Accrued liabilities 7,027 40,874 10,662 — 58,563 Deferred revenue — 1,334 5,949 — 7,283 Billings in excess of costs and profits recognized — 1,872 6,759 — 8,631 Total current liabilities 7,027 101,852 42,674 — 151,553 Long-term debt, net of current portion 395,970 34 12 — 396,016 Long-term payables to affiliates — 527,406 — (527,406 ) — Deferred income taxes, net — 36,937 14,163 — 51,100 Other long-term liabilities — 14,533 15,423 — 29,956 Total liabilities 402,997 680,762 72,272 (527,406 ) 628,625 Total stockholder's equity 1,257,019 1,188,707 524,297 (1,713,003 ) 1,257,020 Noncontrolling interest in subsidiary — — 397 — 397 Equity 1,257,019 1,188,707 524,694 (1,713,003 ) 1,257,417 Total liabilities and equity $ 1,660,016 $ 1,869,469 $ 596,966 $ (2,240,409 ) $ 1,886,042 |
Condensed Consolidating Statements of Cash Flows | Condensed consolidating statements of cash flows Six months ended June 30, 2016 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from (used in) operating activities $ (8,981 ) $ 34,792 $ 39,106 $ (20,000 ) $ 44,917 Cash flows from investing activities Acquisition of businesses, net of cash acquired — (2,700 ) — — (2,700 ) Capital expenditures for property and equipment — (7,455 ) (2,585 ) — (10,040 ) Long-term loans and advances to affiliates 9,483 1,483 — (10,966 ) — Other — 3,354 356 — 3,710 Net cash provided by (used in) investing activities $ 9,483 $ (5,318 ) $ (2,229 ) $ (10,966 ) $ (9,030 ) Cash flows from financing activities Borrowings (repayment) of long-term debt — (238 ) — — (238 ) Long-term loans and advances to affiliates — (9,483 ) (1,483 ) 10,966 — Dividend paid to affiliates — — (20,000 ) 20,000 — Other (502 ) — — — (502 ) Net cash provided by (used in) financing activities $ (502 ) $ (9,721 ) $ (21,483 ) $ 30,966 $ (740 ) Effect of exchange rate changes on cash — — (7,167 ) — (7,167 ) Net increase (decrease) in cash and cash equivalents — 19,753 8,227 — 27,980 Cash and cash equivalents Beginning of period — 36,884 72,365 — 109,249 End of period $ — $ 56,637 $ 80,592 $ — $ 137,229 Condensed consolidating statements of cash flows Six Months Ended June 30, 2015 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from (used in) operating activities $ (8,592 ) $ 45,908 $ 18,568 $ — $ 55,884 Cash flows from investing activities Acquisition of businesses, net of cash acquired — (60,836 ) — — (60,836 ) Capital expenditures for property and equipment — (14,646 ) (5,034 ) — (19,680 ) Long-term loans and advances to affiliates (2,947 ) 37,346 — (34,399 ) — Other — 833 575 — 1,408 Net cash provided by (used in) investing activities $ (2,947 ) $ (37,303 ) $ (4,459 ) $ (34,399 ) $ (79,108 ) Cash flows from financing activities Repayment of long-term debt 9,796 (425 ) (8 ) — 9,363 Long-term loans and advances to affiliates — 2,947 (37,346 ) 34,399 — Other (3,808 ) — — — (3,808 ) Net cash provided by (used in) financing activities $ 5,988 $ 2,522 $ (37,354 ) $ 34,399 $ 5,555 Effect of exchange rate changes on cash — — (1,069 ) — (1,069 ) Net increase (decrease) in cash and cash equivalents (5,551 ) 11,127 (24,314 ) — (18,738 ) Cash and cash equivalents Beginning of period 5,551 4,006 67,022 — 76,579 End of period $ — $ 15,133 $ 42,708 $ — $ 57,841 |
Acquisitions (Schedule of asset
Acquisitions (Schedule of assets acquired and liabilities assumed) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Feb. 02, 2015 |
Business Acquisition [Line Items] | |||
Tax-deductible goodwill | $ 662,929 | $ 669,036 | |
J-Mac Tool, Inc. | |||
Business Acquisition [Line Items] | |||
Contingent consideration not yet paid until working capital is finalized | $ 1,100 | ||
Current assets, net of cash acquired | 36,174 | ||
Property and equipment | 11,506 | ||
Intangible assets (primarily customer relationships) | 10,400 | ||
Tax-deductible goodwill | 13,977 | ||
Current liabilities | (10,129) | ||
Long-term liabilities | (22) | ||
Net assets acquired | $ 61,906 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials and parts | $ 121,140 | $ 148,372 |
Work in process | 29,071 | 38,381 |
Finished goods | 311,004 | 315,256 |
Gross inventories | 461,215 | 502,009 |
Inventory reserve | (86,180) | (77,888) |
Inventories | $ 375,035 | $ 424,121 |
Goodwill and intangible asset31
Goodwill and intangible assets (Schedule of Goodwill) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | |||
Goodwill Beginning Balance | $ 669,036,000 | ||
Acquisitions | 0 | ||
Impact of non-U.S. local currency translation | (6,107,000) | ||
Goodwill Ending Balance | $ 662,929,000 | 662,929,000 | |
Impairment of goodwill | 0 | 0 | |
Accumulated impairment losses on goodwill | $ 168,800,000 | ||
Drilling & Subsea | |||
Goodwill [Roll Forward] | |||
Goodwill Beginning Balance | 334,595,000 | ||
Acquisitions | 0 | ||
Impact of non-U.S. local currency translation | (8,014,000) | ||
Goodwill Ending Balance | 326,581,000 | 326,581,000 | |
Completions | |||
Goodwill [Roll Forward] | |||
Goodwill Beginning Balance | 316,914,000 | ||
Acquisitions | 0 | ||
Impact of non-U.S. local currency translation | 1,689,000 | ||
Goodwill Ending Balance | 318,603,000 | 318,603,000 | |
Production & Infrastructure | |||
Goodwill [Roll Forward] | |||
Goodwill Beginning Balance | 17,527,000 | ||
Acquisitions | 0 | ||
Impact of non-U.S. local currency translation | 218,000 | ||
Goodwill Ending Balance | $ 17,745,000 | $ 17,745,000 |
Goodwill and intangible asset32
Goodwill and intangible assets (Finite-Lived and Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2014 | Dec. 31, 2015 | |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Accumulated amortization | $ (157,512) | $ (147,892) | |
Intangible Assets Total, Gross carrying amount | 390,031 | 394,542 | |
Intangible Assets Total, Net amortizable intangibles | 232,519 | 246,650 | |
Trademark | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 5,230 | 5,230 | |
Customer relationships | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 275,707 | 280,297 | |
Accumulated amortization | (108,591) | (101,636) | |
Net amortizable intangibles | $ 167,116 | 178,661 | |
Customer relationships | Minimum | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period (in years) | 4 years | 4 years | |
Customer relationships | Maximum | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period (in years) | 15 years | 15 years | |
Patents and technology | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 34,271 | 34,140 | |
Accumulated amortization | (11,228) | (10,264) | |
Net amortizable intangibles | $ 23,043 | 23,876 | |
Patents and technology | Minimum | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period (in years) | 5 years | 5 years | |
Patents and technology | Maximum | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period (in years) | 17 years | 17 years | |
Non-compete agreements | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 7,550 | 7,269 | |
Accumulated amortization | (6,494) | (6,292) | |
Net amortizable intangibles | $ 1,056 | 977 | |
Non-compete agreements | Minimum | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period (in years) | 3 years | 3 years | |
Non-compete agreements | Maximum | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period (in years) | 6 years | 6 years | |
Trade names | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 45,113 | 45,446 | |
Accumulated amortization | (16,757) | (15,890) | |
Net amortizable intangibles | $ 28,356 | 29,556 | |
Trade names | Minimum | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period (in years) | 10 years | 10 years | |
Trade names | Maximum | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period (in years) | 15 years | 15 years | |
Distributor relationships | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 22,160 | 22,160 | |
Accumulated amortization | (14,442) | (13,810) | |
Net amortizable intangibles | $ 7,718 | $ 8,350 | |
Distributor relationships | Minimum | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period (in years) | 8 years | 8 years | |
Distributor relationships | Maximum | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization period (in years) | 15 years | 15 years |
Debt (Schedule of Long-Term Deb
Debt (Schedule of Long-Term Debt) (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument | ||
Total debt | $ 396,378,000 | $ 396,269,000 |
Unamortized debt premium | 2,395,000 | |
Deferred financing cost | (5,874,000) | (6,425,000) |
Less: current maturities | 44,000 | 253,000 |
Long-term debt | 396,334,000 | 396,016,000 |
6.25% Senior Notes due October 2021 | ||
Debt Instrument | ||
Total debt | 400,000,000 | 400,000,000 |
Senior secured revolving credit facility | ||
Debt Instrument | ||
Total debt | 0 | 0 |
Unamortized debt premium | 2,192,000 | |
Other debt | ||
Debt Instrument | ||
Total debt | $ 60,000 | $ 299,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 3 Months Ended | 4 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Feb. 25, 2016 | Feb. 24, 2016 | Dec. 31, 2015 | |
Debt Instrument | ||||||||
Deferred financing costs written off | $ 0 | $ 0 | $ 2,588,000 | $ 0 | ||||
Debt instrument, carrying value | $ 396,378,000 | $ 396,378,000 | $ 396,378,000 | $ 396,269,000 | ||||
6.25% Senior Notes due October 2021 | ||||||||
Debt Instrument | ||||||||
Debt stated interest rate | 6.25% | 6.25% | 6.25% | |||||
Debt instrument, carrying value | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | 400,000,000 | ||||
Senior secured revolving credit facility | ||||||||
Debt Instrument | ||||||||
Debt instrument, carrying value | 0 | 0 | 0 | $ 0 | ||||
Line of credit facility, remaining borrowing capacity | 189,500,000 | 189,500,000 | 189,500,000 | |||||
Weighted average interest rates | 2.00% | |||||||
Senior secured revolving credit facility | Revolving Credit Facility | ||||||||
Debt Instrument | ||||||||
Line of credit facility, maximum borrowing capacity (up to) | $ 200,000,000 | $ 600,000,000 | ||||||
Deferred financing costs written off | 2,600,000 | |||||||
Senior secured revolving credit facility | Letter of Credit | ||||||||
Debt Instrument | ||||||||
Line of credit facility, maximum borrowing capacity (up to) | 25,000,000 | |||||||
Line of credit outstanding | $ 10,500,000 | $ 10,500,000 | $ 10,500,000 | |||||
Senior secured revolving credit facility | Swingline Loan | ||||||||
Debt Instrument | ||||||||
Line of credit facility, maximum borrowing capacity (up to) | $ 10,000,000 |
Income taxes (Narrative) (Detai
Income taxes (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 42.60% | 17.70% | 38.00% | 25.00% |
Fair value measurements (Narrat
Fair value measurements (Narrative) (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, carrying value | $ 396,378,000 | $ 396,269,000 |
6.25% Senior Notes due October 2021 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, carrying value | 400,000,000 | 400,000,000 |
6.25% Senior Notes due October 2021 | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, fair value disclosure | 371,000,000 | 334,100,000 |
Carrying Value | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, fair value disclosure | 0 | |
Carrying Value | 6.25% Senior Notes due October 2021 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, carrying value | $ 402,200,000 | $ 402,500,000 |
Business segments (Income State
Business segments (Income Statement by Segment) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | Dec. 31, 2015segment | |
Segment Reporting [Abstract] | |||||
Number of operating segments (in segments) | segment | 3 | 2 | |||
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 142,723 | $ 284,415 | $ 302,164 | $ 632,511 | |
Operating income (loss) | (52,878) | 22,438 | (77,891) | 62,670 | |
Transaction expenses | 64 | 23 | 230 | 240 | |
Loss (gain) on sale of assets and other | 48 | 37 | 16 | (275) | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | (52,766) | 22,498 | (77,645) | 62,635 | |
Operating Segments | Drilling & Subsea | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 56,734 | 129,719 | 122,029 | 293,272 | |
Operating income (loss) | (20,533) | 10,292 | (30,356) | 30,131 | |
Operating Segments | Completions | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 24,467 | 72,342 | 58,771 | 166,838 | |
Operating income (loss) | (28,024) | 10,856 | (34,482) | 31,425 | |
Operating Segments | Production & Infrastructure | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 61,823 | 82,536 | 122,334 | 173,059 | |
Operating income (loss) | 2,578 | 9,433 | 1,207 | 17,423 | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | (301) | (182) | (970) | (658) | |
Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | $ (6,787) | $ (8,083) | $ (14,014) | $ (16,344) |
Business segments (Assets by Se
Business segments (Assets by Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Assets | $ 1,773,186 | $ 1,886,042 |
Operating Segments | Drilling & Subsea | ||
Segment Reporting Information [Line Items] | ||
Assets | 818,996 | 912,324 |
Operating Segments | Completions | ||
Segment Reporting Information [Line Items] | ||
Assets | 700,588 | 728,745 |
Operating Segments | Production & Infrastructure | ||
Segment Reporting Information [Line Items] | ||
Assets | 183,770 | 187,741 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 69,832 | $ 57,232 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net Income (loss) attributable to common stockholders | $ (28,537) | $ 8,874 | $ (51,480) | $ 37,546 |
Average shares outstanding (basic) (in shares) | 90,707 | 89,767 | 90,592 | 89,625 |
Common stock equivalents (in shares) | 0 | 2,117 | 0 | 1,972 |
Diluted shares (in shares) | 90,707 | 91,884 | 90,592 | 91,597 |
Basic earnings per share (in dollars per share) | $ (0.31) | $ 0.10 | $ (0.57) | $ 0.42 |
Diluted earnings per share (in dollars per share) | $ (0.31) | $ 0.10 | $ (0.57) | $ 0.41 |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Diluted earnings per share calculation excludes (in shares) | 1,300 | 1,700 |
Stockholders' equity (Share-bas
Stockholders' equity (Share-based compensation) (Details) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options granted (in shares) | 818,620 |
Granted stock options, exercise price (in dollars per share) | $ / shares | $ 9.39 |
Restricted Stock and Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of equity instruments other than options granted (in shares) | 1,712,639 |
Restricted Stock and Restricted Stock Units | Board of Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of equity instruments other than options granted (in shares) | 119,817 |
Award vesting period | 12 months |
Restricted Stock and Restricted Stock Units with Specified Vesting Period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of equity instruments other than options granted (in shares) | 1,334,922 |
Award vesting period | 4 years |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of equity instruments other than options granted (in shares) | 257,900 |
Performance Shares | Share-based Compensation Award, Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance measurement period | 1 year |
Performance Shares | Share-based Compensation Award, Tranche Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance measurement period | 2 years |
Performance Shares | Share-based Compensation Award, Tranche Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance measurement period | 3 years |
Performance Shares | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share conversion ratio | 0 |
Performance Shares | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share conversion ratio | 2 |
Condensed consolidating finan41
Condensed consolidating financial statements (Condensed consolidating statements of income and comprehensive income (loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
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] | ||||
Revenue | 142,723 | 284,415 | 302,164 | 632,511 |
Cost of sales | 137,442 | 199,532 | 262,326 | 438,502 |
Gross profit | 5,281 | 84,883 | 39,838 | 194,009 |
Operating expenses | ||||
Selling, general and administrative expenses | 58,263 | 66,225 | 118,276 | 139,785 |
Transaction expenses | 64 | 23 | 230 | 240 |
Loss (gain) on sale of assets and other | 48 | 37 | 16 | (275) |
Total operating expenses | 58,375 | 66,285 | 118,522 | 139,750 |
Earnings from equity investment | 216 | 3,840 | 793 | 8,411 |
Equity earnings from affiliate, net of tax | 0 | 0 | 0 | 0 |
Operating income (loss) | (52,878) | 22,438 | (77,891) | 62,670 |
Other expense (income) | ||||
Interest expense (income) | 6,785 | 7,607 | 13,918 | 15,234 |
Deferred financing costs written off | 0 | 0 | 2,588 | 0 |
Foreign exchange (gains) losses and other, net | (10,014) | 4,055 | (11,394) | (2,601) |
Total other expense (income) | (3,229) | 11,662 | 5,112 | 12,633 |
Income (loss) before income taxes | (49,649) | 10,776 | (83,003) | 50,037 |
Provision (benefit) for income tax expense | (21,147) | 1,911 | (31,553) | 12,516 |
Net income (loss) | (28,502) | 8,865 | (51,450) | 37,521 |
Less: Income (loss) attributable to noncontrolling interest | 35 | (9) | 30 | (25) |
Net income (loss) attributable to common stockholders | (28,537) | 8,874 | (51,480) | 37,546 |
Other comprehensive income (loss), net of tax: | ||||
Net income (loss) | (28,502) | 8,865 | (51,450) | 37,521 |
Change in foreign currency translation, net of tax of $0 | (22,847) | 25,491 | (19,375) | (11,806) |
Change in pension liability | 24 | (29) | (19) | 70 |
Comprehensive income (loss) | (51,325) | 34,327 | (70,844) | 25,785 |
Less: comprehensive loss (income) attributable to noncontrolling interests | (36) | 11 | (129) | 54 |
Comprehensive income (loss) attributable to common stockholders | (51,361) | 34,338 | (70,973) | 25,839 |
Reportable Legal Entities | FET Inc. (Parent) | ||||
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||
Revenue | 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 | 0 |
Loss (gain) on sale of assets and other | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Earnings from equity investment | 0 | 0 | 0 | 0 |
Equity earnings from affiliate, net of tax | (24,128) | 13,830 | (40,741) | 47,434 |
Operating income (loss) | (24,128) | 13,830 | (40,741) | 47,434 |
Other expense (income) | ||||
Interest expense (income) | 6,783 | 7,624 | 13,931 | 15,212 |
Deferred financing costs written off | 2,588 | |||
Foreign exchange (gains) losses and other, net | 0 | 0 | 0 | 0 |
Total other expense (income) | 6,783 | 7,624 | 16,519 | 15,212 |
Income (loss) before income taxes | (30,911) | 6,206 | (57,260) | 32,222 |
Provision (benefit) for income tax expense | (2,374) | (2,668) | (5,780) | (5,324) |
Net income (loss) | (28,537) | 8,874 | (51,480) | 37,546 |
Less: Income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income (loss) attributable to common stockholders | (28,537) | 8,874 | (51,480) | 37,546 |
Other comprehensive income (loss), net of tax: | ||||
Net income (loss) | (28,537) | 8,874 | (51,480) | 37,546 |
Change in foreign currency translation, net of tax of $0 | (22,847) | 25,491 | (19,375) | (11,806) |
Change in pension liability | 24 | (29) | (19) | 70 |
Comprehensive income (loss) | (51,360) | 34,336 | (70,874) | 25,810 |
Less: comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to common stockholders | (51,360) | 34,336 | (70,874) | 25,810 |
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||
Revenue | 103,062 | 209,234 | 220,377 | 478,433 |
Cost of sales | 107,801 | 155,127 | 200,417 | 343,894 |
Gross profit | (4,739) | 54,107 | 19,960 | 134,539 |
Operating expenses | ||||
Selling, general and administrative expenses | 46,866 | 52,426 | 94,530 | 109,798 |
Transaction expenses | 64 | 23 | 230 | 240 |
Loss (gain) on sale of assets and other | 215 | 53 | 180 | (58) |
Total operating expenses | 47,145 | 52,502 | 94,940 | 109,980 |
Earnings from equity investment | 216 | 3,840 | 793 | 8,411 |
Equity earnings from affiliate, net of tax | 7,235 | 10,594 | 6,147 | 26,830 |
Operating income (loss) | (44,433) | 16,039 | (68,040) | 59,800 |
Other expense (income) | ||||
Interest expense (income) | (2) | 0 | (16) | 14 |
Deferred financing costs written off | 0 | |||
Foreign exchange (gains) losses and other, net | (451) | 31 | (533) | (154) |
Total other expense (income) | (453) | 31 | (549) | (140) |
Income (loss) before income taxes | (43,980) | 16,008 | (67,491) | 59,940 |
Provision (benefit) for income tax expense | (19,852) | 2,178 | (26,750) | 12,506 |
Net income (loss) | (24,128) | 13,830 | (40,741) | 47,434 |
Less: Income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income (loss) attributable to common stockholders | (24,128) | 13,830 | (40,741) | 47,434 |
Other comprehensive income (loss), net of tax: | ||||
Net income (loss) | (24,128) | 13,830 | (40,741) | 47,434 |
Change in foreign currency translation, net of tax of $0 | (22,847) | 25,491 | (19,375) | (11,806) |
Change in pension liability | 24 | (29) | (19) | 70 |
Comprehensive income (loss) | (46,951) | 39,292 | (60,135) | 35,698 |
Less: comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to common stockholders | (46,951) | 39,292 | (60,135) | 35,698 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||
Revenue | 50,880 | 102,363 | 106,514 | 222,680 |
Cost of sales | 41,734 | 71,771 | 86,864 | 161,446 |
Gross profit | 9,146 | 30,592 | 19,650 | 61,234 |
Operating expenses | ||||
Selling, general and administrative expenses | 11,397 | 13,799 | 23,746 | 29,987 |
Transaction expenses | 0 | 0 | 0 | 0 |
Loss (gain) on sale of assets and other | (167) | (16) | (164) | (217) |
Total operating expenses | 11,230 | 13,783 | 23,582 | 29,770 |
Earnings from equity investment | 0 | 0 | 0 | 0 |
Equity earnings from affiliate, net of tax | 0 | 0 | 0 | 0 |
Operating income (loss) | (2,084) | 16,809 | (3,932) | 31,464 |
Other expense (income) | ||||
Interest expense (income) | 4 | (17) | 3 | 8 |
Deferred financing costs written off | 0 | |||
Foreign exchange (gains) losses and other, net | (9,563) | 4,024 | (10,861) | (2,447) |
Total other expense (income) | (9,559) | 4,007 | (10,858) | (2,439) |
Income (loss) before income taxes | 7,475 | 12,802 | 6,926 | 33,903 |
Provision (benefit) for income tax expense | 1,079 | 2,401 | 977 | 5,334 |
Net income (loss) | 6,396 | 10,401 | 5,949 | 28,569 |
Less: Income (loss) attributable to noncontrolling interest | 35 | (9) | 30 | (25) |
Net income (loss) attributable to common stockholders | 6,361 | 10,410 | 5,919 | 28,594 |
Other comprehensive income (loss), net of tax: | ||||
Net income (loss) | 6,396 | 10,401 | 5,949 | 28,569 |
Change in foreign currency translation, net of tax of $0 | (22,847) | 25,491 | (19,375) | (11,806) |
Change in pension liability | 24 | (29) | (19) | 70 |
Comprehensive income (loss) | (16,427) | 35,863 | (13,445) | 16,833 |
Less: comprehensive loss (income) attributable to noncontrolling interests | (36) | 11 | (129) | 54 |
Comprehensive income (loss) attributable to common stockholders | (16,463) | 35,874 | (13,574) | 16,887 |
Eliminations | ||||
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||
Revenue | (11,219) | (27,182) | (24,727) | (68,602) |
Cost of sales | (12,093) | (27,366) | (24,955) | (66,838) |
Gross profit | 874 | 184 | 228 | (1,764) |
Operating expenses | ||||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Transaction expenses | 0 | 0 | 0 | 0 |
Loss (gain) on sale of assets and other | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Earnings from equity investment | 0 | 0 | 0 | 0 |
Equity earnings from affiliate, net of tax | 16,893 | (24,424) | 34,594 | (74,264) |
Operating income (loss) | 17,767 | (24,240) | 34,822 | (76,028) |
Other expense (income) | ||||
Interest expense (income) | 0 | 0 | 0 | 0 |
Deferred financing costs written off | 0 | |||
Foreign exchange (gains) losses and other, net | 0 | 0 | 0 | 0 |
Total other expense (income) | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 17,767 | (24,240) | 34,822 | (76,028) |
Provision (benefit) for income tax expense | 0 | 0 | 0 | 0 |
Net income (loss) | 17,767 | (24,240) | 34,822 | (76,028) |
Less: Income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income (loss) attributable to common stockholders | 17,767 | (24,240) | 34,822 | (76,028) |
Other comprehensive income (loss), net of tax: | ||||
Net income (loss) | 17,767 | (24,240) | 34,822 | (76,028) |
Change in foreign currency translation, net of tax of $0 | 45,694 | (50,982) | 38,750 | 23,612 |
Change in pension liability | (48) | 58 | 38 | (140) |
Comprehensive income (loss) | 63,413 | (75,164) | 73,610 | (52,556) |
Less: comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to common stockholders | $ 63,413 | $ (75,164) | $ 73,610 | $ (52,556) |
Condensed consolidating finan42
Condensed consolidating financial statements (Condensed consolidating balance sheets) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||||
Cash and cash equivalents | $ 137,229 | $ 109,249 | $ 57,841 | $ 76,579 |
Accounts receivable—trade, net | 94,414 | 138,597 | ||
Inventories, net | 375,035 | 424,121 | ||
Costs and estimated profits in excess of billings | 9,882 | 12,009 | ||
Other current assets | 23,954 | 33,836 | ||
Total current assets | 640,514 | 717,812 | ||
Property and equipment, net of accumulated depreciation | 173,580 | 186,667 | ||
Deferred financing costs, net | 1,581 | 4,125 | ||
Deferred income taxes, net | 736 | 780 | ||
Intangibles, net | 232,519 | 246,650 | ||
Goodwill | 662,929 | 669,036 | ||
Investment in unconsolidated subsidiary | 58,109 | 57,719 | ||
Investment in affiliates | 0 | 0 | ||
Long-term advances to affiliates | 0 | 0 | ||
Other long-term assets | 3,218 | 3,253 | ||
Total assets | 1,773,186 | 1,886,042 | ||
Current liabilities | ||||
Current portion of long-term debt | 44 | 253 | ||
Accounts payable—trade | 69,041 | 76,823 | ||
Accrued liabilities | 51,137 | 58,563 | ||
Deferred revenue | 9,092 | 7,283 | ||
Billings in excess of costs and profits | 2,387 | 8,631 | ||
Total current liabilities | 131,701 | 151,553 | ||
Long-term debt, net of current portion | 396,334 | 396,016 | ||
Long-term payables to affiliates | 0 | 0 | ||
Deferred income taxes, net | 18,684 | 51,100 | ||
Other long-term liabilities | 30,859 | 29,956 | ||
Total liabilities | 577,578 | 628,625 | ||
Total stockholders’ equity | 1,195,082 | 1,257,020 | ||
Noncontrolling interest in subsidiary | 526 | 397 | ||
Total equity | 1,195,608 | 1,257,417 | ||
Total liabilities and equity | 1,773,186 | 1,886,042 | ||
Reportable Legal Entities | FET Inc. (Parent) | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 5,551 |
Accounts receivable—trade, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Costs and estimated profits in excess of billings | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||
Deferred financing costs, net | 1,581 | 4,125 | ||
Deferred income taxes, net | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in unconsolidated subsidiary | 0 | 0 | ||
Investment in affiliates | 1,128,470 | 1,188,707 | ||
Long-term advances to affiliates | 468,023 | 467,184 | ||
Other long-term assets | 0 | 0 | ||
Total assets | 1,598,074 | 1,660,016 | ||
Current liabilities | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable—trade | 0 | 0 | ||
Accrued liabilities | 6,674 | 7,027 | ||
Deferred revenue | 0 | 0 | ||
Billings in excess of costs and profits | 0 | 0 | ||
Total current liabilities | 6,674 | 7,027 | ||
Long-term debt, net of current portion | 396,318 | 395,970 | ||
Long-term payables to affiliates | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 402,992 | 402,997 | ||
Total stockholders’ equity | 1,195,082 | 1,257,019 | ||
Noncontrolling interest in subsidiary | 0 | 0 | ||
Total equity | 1,195,082 | 1,257,019 | ||
Total liabilities and equity | 1,598,074 | 1,660,016 | ||
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 56,637 | 36,884 | 15,133 | 4,006 |
Accounts receivable—trade, net | 57,119 | 85,537 | ||
Inventories, net | 289,728 | 318,360 | ||
Costs and estimated profits in excess of billings | 6,574 | 6,477 | ||
Other current assets | 16,759 | 25,447 | ||
Total current assets | 426,817 | 472,705 | ||
Property and equipment, net of accumulated depreciation | 145,035 | 153,995 | ||
Deferred financing costs, net | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Intangibles, net | 176,649 | 186,234 | ||
Goodwill | 481,374 | 481,374 | ||
Investment in unconsolidated subsidiary | 58,109 | 57,719 | ||
Investment in affiliates | 481,545 | 514,893 | ||
Long-term advances to affiliates | 0 | 0 | ||
Other long-term assets | 2,485 | 2,549 | ||
Total assets | 1,772,014 | 1,869,469 | ||
Current liabilities | ||||
Current portion of long-term debt | 33 | 243 | ||
Accounts payable—trade | 54,250 | 57,529 | ||
Accrued liabilities | 35,939 | 40,874 | ||
Deferred revenue | 1,831 | 1,334 | ||
Billings in excess of costs and profits | 365 | 1,872 | ||
Total current liabilities | 92,418 | 101,852 | ||
Long-term debt, net of current portion | 9 | 34 | ||
Long-term payables to affiliates | 528,644 | 527,406 | ||
Deferred income taxes, net | 6,353 | 36,937 | ||
Other long-term liabilities | 16,120 | 14,533 | ||
Total liabilities | 643,544 | 680,762 | ||
Total stockholders’ equity | 1,128,470 | 1,188,707 | ||
Noncontrolling interest in subsidiary | 0 | 0 | ||
Total equity | 1,128,470 | 1,188,707 | ||
Total liabilities and equity | 1,772,014 | 1,869,469 | ||
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 80,592 | 72,365 | 42,708 | 67,022 |
Accounts receivable—trade, net | 37,295 | 53,060 | ||
Inventories, net | 94,483 | 115,165 | ||
Costs and estimated profits in excess of billings | 3,308 | 5,532 | ||
Other current assets | 7,195 | 8,389 | ||
Total current assets | 222,873 | 254,511 | ||
Property and equipment, net of accumulated depreciation | 28,545 | 32,672 | ||
Deferred financing costs, net | 0 | 0 | ||
Deferred income taxes, net | 736 | 780 | ||
Intangibles, net | 55,870 | 60,416 | ||
Goodwill | 181,555 | 187,662 | ||
Investment in unconsolidated subsidiary | 0 | 0 | ||
Investment in affiliates | 0 | 0 | ||
Long-term advances to affiliates | 60,621 | 60,221 | ||
Other long-term assets | 733 | 704 | ||
Total assets | 550,933 | 596,966 | ||
Current liabilities | ||||
Current portion of long-term debt | 11 | 10 | ||
Accounts payable—trade | 14,791 | 19,294 | ||
Accrued liabilities | 8,524 | 10,662 | ||
Deferred revenue | 7,261 | 5,949 | ||
Billings in excess of costs and profits | 2,022 | 6,759 | ||
Total current liabilities | 32,609 | 42,674 | ||
Long-term debt, net of current portion | 7 | 12 | ||
Long-term payables to affiliates | 0 | 0 | ||
Deferred income taxes, net | 12,331 | 14,163 | ||
Other long-term liabilities | 14,739 | 15,423 | ||
Total liabilities | 59,686 | 72,272 | ||
Total stockholders’ equity | 490,721 | 524,297 | ||
Noncontrolling interest in subsidiary | 526 | 397 | ||
Total equity | 491,247 | 524,694 | ||
Total liabilities and equity | 550,933 | 596,966 | ||
Eliminations | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable—trade, net | 0 | 0 | ||
Inventories, net | (9,176) | (9,404) | ||
Costs and estimated profits in excess of billings | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | (9,176) | (9,404) | ||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||
Deferred financing costs, net | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in unconsolidated subsidiary | 0 | 0 | ||
Investment in affiliates | (1,610,015) | (1,703,600) | ||
Long-term advances to affiliates | (528,644) | (527,405) | ||
Other long-term assets | 0 | 0 | ||
Total assets | (2,147,835) | (2,240,409) | ||
Current liabilities | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable—trade | 0 | 0 | ||
Accrued liabilities | 0 | 0 | ||
Deferred revenue | 0 | 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 | (528,644) | (527,406) | ||
Deferred income taxes, net | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | (528,644) | (527,406) | ||
Total stockholders’ equity | (1,619,191) | (1,713,003) | ||
Noncontrolling interest in subsidiary | 0 | 0 | ||
Total equity | (1,619,191) | (1,713,003) | ||
Total liabilities and equity | $ (2,147,835) | $ (2,240,409) |
Condensed consolidating finan43
Condensed consolidating financial statements (Condensed consolidating statements of cash flows) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from (used in) operating activities | $ 44,917 | $ 55,884 |
Cash flows from investing activities | ||
Acquisition of businesses, net of cash acquired | (2,700) | (60,836) |
Capital expenditures for property and equipment | (10,040) | (19,680) |
Long-term loans and advances to affiliates | 0 | 0 |
Other | 3,710 | 1,408 |
Net cash used in investing activities | (9,030) | (79,108) |
Cash flows from financing activities | ||
Borrowings (repayment) of long-term debt | (238) | 9,363 |
Long-term loans and advances to affiliates | 0 | 0 |
Dividend paid to affiliates | 0 | |
Other | (502) | (3,808) |
Net cash provided by (used in) financing activities | (740) | 5,555 |
Effect of exchange rate changes on cash | (7,167) | (1,069) |
Net increase (decrease) in cash and cash equivalents | 27,980 | (18,738) |
Cash and cash equivalents | ||
Beginning of period | 109,249 | 76,579 |
End of period | 137,229 | 57,841 |
Reportable Legal Entities | FET Inc. (Parent) | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from (used in) operating activities | (8,981) | (8,592) |
Cash flows from investing activities | ||
Acquisition of businesses, net of cash acquired | 0 | 0 |
Capital expenditures for property and equipment | 0 | 0 |
Long-term loans and advances to affiliates | 9,483 | (2,947) |
Other | 0 | 0 |
Net cash used in investing activities | 9,483 | (2,947) |
Cash flows from financing activities | ||
Borrowings (repayment) of long-term debt | 0 | 9,796 |
Long-term loans and advances to affiliates | 0 | 0 |
Dividend paid to affiliates | 0 | |
Other | (502) | (3,808) |
Net cash provided by (used in) financing activities | (502) | 5,988 |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | (5,551) |
Cash and cash equivalents | ||
Beginning of period | 0 | 5,551 |
End of period | 0 | 0 |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from (used in) operating activities | 34,792 | 45,908 |
Cash flows from investing activities | ||
Acquisition of businesses, net of cash acquired | (2,700) | (60,836) |
Capital expenditures for property and equipment | (7,455) | (14,646) |
Long-term loans and advances to affiliates | 1,483 | 37,346 |
Other | 3,354 | 833 |
Net cash used in investing activities | (5,318) | (37,303) |
Cash flows from financing activities | ||
Borrowings (repayment) of long-term debt | (238) | (425) |
Long-term loans and advances to affiliates | (9,483) | 2,947 |
Dividend paid to affiliates | 0 | |
Other | 0 | 0 |
Net cash provided by (used in) financing activities | (9,721) | 2,522 |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 19,753 | 11,127 |
Cash and cash equivalents | ||
Beginning of period | 36,884 | 4,006 |
End of period | 56,637 | 15,133 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from (used in) operating activities | 39,106 | 18,568 |
Cash flows from investing activities | ||
Acquisition of businesses, net of cash acquired | 0 | 0 |
Capital expenditures for property and equipment | (2,585) | (5,034) |
Long-term loans and advances to affiliates | 0 | 0 |
Other | 356 | 575 |
Net cash used in investing activities | (2,229) | (4,459) |
Cash flows from financing activities | ||
Borrowings (repayment) of long-term debt | 0 | (8) |
Long-term loans and advances to affiliates | (1,483) | (37,346) |
Dividend paid to affiliates | (20,000) | |
Other | 0 | 0 |
Net cash provided by (used in) financing activities | (21,483) | (37,354) |
Effect of exchange rate changes on cash | (7,167) | (1,069) |
Net increase (decrease) in cash and cash equivalents | 8,227 | (24,314) |
Cash and cash equivalents | ||
Beginning of period | 72,365 | 67,022 |
End of period | 80,592 | 42,708 |
Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows from (used in) operating activities | (20,000) | 0 |
Cash flows from investing activities | ||
Acquisition of businesses, net of cash acquired | 0 | 0 |
Capital expenditures for property and equipment | 0 | 0 |
Long-term loans and advances to affiliates | (10,966) | (34,399) |
Other | 0 | 0 |
Net cash used in investing activities | (10,966) | (34,399) |
Cash flows from financing activities | ||
Borrowings (repayment) of long-term debt | 0 | 0 |
Long-term loans and advances to affiliates | 10,966 | 34,399 |
Dividend paid to affiliates | 20,000 | |
Other | 0 | 0 |
Net cash provided by (used in) financing activities | 30,966 | 34,399 |
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 |