Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 30, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | Exterran Corporation | |
Entity Central Index Key | 1,635,881 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 36,153,310 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 36,966 | $ 49,145 |
Restricted cash | 546 | 546 |
Accounts receivable, net of allowance of $5,878 and $5,388, respectively | 243,441 | 266,052 |
Inventory, net (Note 4) | 141,846 | 107,909 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | 40,695 |
Contract assets (Note 2) | 71,841 | 0 |
Other current assets | 40,482 | 38,707 |
Current assets held for sale (Note 6) | 0 | 15,761 |
Current assets associated with discontinued operations (Note 3) | 12,925 | 23,751 |
Total current assets | 548,047 | 542,566 |
Property, plant and equipment, net (Note 5) | 860,997 | 822,279 |
Deferred income taxes | 13,731 | 10,550 |
Intangible and other assets, net | 87,415 | 76,980 |
Long-term assets held for sale (Note 6) | 0 | 4,732 |
Long-term assets associated with discontinued operations (Note 3) | 2,302 | 3,700 |
Total assets | 1,512,492 | 1,460,807 |
Current liabilities: | ||
Accounts payable, trade | 166,358 | 148,744 |
Accrued liabilities | 127,854 | 114,336 |
Deferred revenue | 0 | 23,902 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 0 | 89,565 |
Contract liabilities (Note 2) | 89,187 | 0 |
Current liabilities associated with discontinued operations (Note 3) | 15,978 | 31,971 |
Total current liabilities | 399,377 | 408,518 |
Long-term debt (Note 7) | 418,668 | 368,472 |
Deferred income taxes | 6,356 | 9,746 |
Long-term deferred revenue | 0 | 92,485 |
Long-term contract liabilities (Note 2) | 89,736 | 0 |
Other long-term liabilities | 38,948 | 20,272 |
Long-term liabilities associated with discontinued operations (Note 3) | 6,301 | 6,528 |
Total liabilities | 959,386 | 906,021 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value per share; 50,000,000 shares authorized; zero issued | 0 | 0 |
Common stock, $0.01 par value per share; 250,000,000 shares authorized; 36,752,115 and 36,193,930 shares issued, respectively | 368 | 362 |
Additional paid-in capital | 750,537 | 739,164 |
Accumulated deficit | (222,750) | (223,510) |
Treasury stock — 638,926 and 453,178 common shares, at cost, respectively | (10,717) | (6,937) |
Accumulated other comprehensive income | 35,668 | 45,707 |
Total stockholders’ equity | 553,106 | 554,786 |
Total liabilities and equity | $ 1,512,492 | $ 1,460,807 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 5,878 | $ 5,388 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 36,752,115 | 36,193,930 |
Treasury stock, common shares | 638,926 | 453,178 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues (Note 2): | ||||
Revenues | $ 334,849 | $ 314,479 | $ 1,028,703 | $ 877,605 |
Costs and expenses: | ||||
Cost of sales (excluding depreciation and amortization expense) | 238,112 | 227,162 | 740,570 | 624,103 |
Selling, general and administrative | 45,103 | 42,880 | 133,727 | 131,855 |
Depreciation and amortization | 31,108 | 27,010 | 92,321 | 78,110 |
Long-lived asset impairment (Note 9) | 2,054 | 0 | 3,858 | 0 |
Restatement related charges (recoveries), net (Note 10) | (342) | 1,997 | (318) | 3,011 |
Restructuring and other charges (Note 11) | 264 | 417 | 1,686 | 3,035 |
Interest expense | 7,685 | 7,860 | 21,787 | 27,329 |
Other (income) expense, net | (285) | (2,424) | 6,339 | (1,512) |
Total costs and expenses | 323,699 | 304,902 | 999,970 | 865,931 |
Income before income taxes | 11,150 | 9,577 | 28,733 | 11,674 |
Provision for income taxes (Note 12) | 7,954 | 8,363 | 23,068 | 19,613 |
Income (loss) from continuing operations | 3,196 | 1,214 | 5,665 | (7,939) |
Income from discontinued operations, net of tax (Note 3) | 2,173 | 2,139 | 5,116 | 35,157 |
Net income | $ 5,369 | $ 3,353 | $ 10,781 | $ 27,218 |
Basic net income per common share (Note 14): | ||||
Income (loss) from continuing operations per common share (in dollars per share) | $ 0.09 | $ 0.03 | $ 0.16 | $ (0.23) |
Income from discontinued operations per common share (in dollars per share) | 0.06 | 0.06 | 0.14 | 1.01 |
Net income per common share (in dollars per share) | 0.15 | 0.09 | 0.30 | 0.78 |
Diluted net income per common share (Note 14): | ||||
Income (loss) from continuing operations per common share (in dollars per share) | 0.09 | 0.03 | 0.16 | (0.23) |
Income from discontinued operations per common share (in dollars per share) | 0.06 | 0.06 | 0.14 | 1.01 |
Net income per common share (in dollars per share) | $ 0.15 | $ 0.09 | $ 0.30 | $ 0.78 |
Weighted average common shares outstanding used in net income per common share (Note 14): | ||||
Basic (in shares) | 35,480 | 35,046 | 35,402 | 34,937 |
Diluted (in shares) | 35,544 | 35,120 | 35,469 | 34,937 |
Contract Operations | ||||
Revenues (Note 2): | ||||
Revenues | $ 84,828 | $ 92,561 | $ 272,808 | $ 279,947 |
Costs and expenses: | ||||
Cost of sales (excluding depreciation and amortization expense) | 27,768 | 33,640 | 95,525 | 99,129 |
Aftermarket services | ||||
Revenues (Note 2): | ||||
Revenues | 29,993 | 29,799 | 88,631 | 76,567 |
Costs and expenses: | ||||
Cost of sales (excluding depreciation and amortization expense) | 22,138 | 21,903 | 64,741 | 55,793 |
Product Sales | ||||
Revenues (Note 2): | ||||
Revenues | 220,028 | 192,119 | 667,264 | 521,091 |
Costs and expenses: | ||||
Cost of sales (excluding depreciation and amortization expense) | $ 188,206 | $ 171,619 | $ 580,304 | $ 469,181 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,369 | $ 3,353 | $ 10,781 | $ 27,218 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (2,673) | 1,310 | (10,039) | 284 |
Comprehensive income | $ 2,696 | $ 4,663 | $ 742 | $ 27,502 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Income |
Increase (Decrease) in Stockholders' Equity | ||||||
Cumulative-effect adjustment from adoption of ASC Topic 606 (Note 1) | $ (10,021) | $ (10,021) | ||||
Beginning balance at Dec. 31, 2017 | 554,786 | $ 362 | $ 739,164 | (223,510) | $ (6,937) | $ 45,707 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 10,781 | 10,781 | ||||
Options exercised | 548 | 548 | ||||
Foreign currency translation adjustment | (10,039) | (10,039) | ||||
Treasury stock purchased | (3,780) | (3,780) | ||||
Stock-based compensation, net of forfeitures | 10,831 | 6 | 10,825 | |||
Ending balance at Sep. 30, 2018 | $ 553,106 | $ 368 | $ 750,537 | $ (222,750) | $ (10,717) | $ 35,668 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 10,781 | $ 27,218 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 92,321 | 78,110 |
Long-lived asset impairment | 3,858 | 0 |
Amortization of deferred financing costs | 2,014 | 4,044 |
Income from discontinued operations, net of tax | (5,116) | (35,157) |
Provision for doubtful accounts | 658 | 1,383 |
Gain on sale of property, plant and equipment | (345) | (1,395) |
(Gain) loss on remeasurement of intercompany balances | 4,245 | (2,473) |
Loss on sale of business | 1,714 | 111 |
Stock-based compensation expense | 10,831 | 11,665 |
Deferred income tax benefit | (4,727) | (2,727) |
Changes in assets and liabilities: | ||
Accounts receivable and notes | 14,126 | (55,162) |
Inventory | (51,067) | 9,842 |
Costs and estimated earnings versus billings on uncompleted contracts | 0 | 54,487 |
Contract assets | (16,263) | 0 |
Other current assets | 5,073 | (3,943) |
Accounts payable and other liabilities | 29,116 | 40,516 |
Deferred revenue | 0 | 2,782 |
Contract liabilities | (11,937) | 0 |
Other | 3,511 | (8,067) |
Net cash provided by continuing operations | 88,793 | 121,234 |
Net cash provided by (used in) discontinued operations | 1,144 | (1,937) |
Net cash provided by operating activities | 89,937 | 119,297 |
Cash flows from investing activities: | ||
Capital expenditures | (152,226) | (79,122) |
Proceeds from sale of property, plant and equipment | 2,430 | 6,555 |
Proceeds from sale of business | 5,000 | 894 |
Net cash used in continuing operations | (144,796) | (71,673) |
Net cash provided by discontinued operations | 66 | 19,354 |
Net cash used in investing activities | (144,730) | (52,319) |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 415,000 | 488,000 |
Repayments of debt | (365,371) | (463,940) |
Cash transfer to Archrock, Inc. (Note 15) | 0 | (44,720) |
Payments for debt issuance costs | (92) | (7,911) |
Proceeds from stock options exercised | 548 | 684 |
Purchases of treasury stock | (3,780) | (3,319) |
Net cash provided by (used in) financing activities | 46,305 | (31,206) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,691) | (373) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (12,179) | 35,399 |
Cash, cash equivalents and restricted cash at beginning of period | 49,691 | 36,349 |
Cash, cash equivalents and restricted cash at end of period | $ 37,512 | $ 71,748 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Note 1 - Description of Business and Basis of Presentation Description of Business Exterran Corporation (together with its subsidiaries, “Exterran Corporation,” “our,” “we” or “us”), a Delaware corporation formed in March 2015, is a global systems and process company offering solutions in the oil, gas, water and power markets. We are a leader in natural gas processing and treatment and compression products and services, providing critical midstream infrastructure solutions to customers throughout the world. Outside the United States of America (“U.S.”), we are a leading provider of full-service natural gas contract compression, and a supplier of aftermarket parts and services. We provide these products and services to a global customer base consisting of companies engaged in all aspects of the oil and natural gas industry, including large integrated oil and natural gas companies, national oil and natural gas companies, independent oil and natural gas producers and oil and natural gas processors, gatherers and pipeline operators. We operate in three primary business lines: contract operations, aftermarket services and product sales. On November 3, 2015, Archrock, Inc. (named Exterran Holdings, Inc. prior to November 3, 2015) (“Archrock”) completed the spin-off (the ‘‘Spin-off”) of its international contract operations, international aftermarket services and global fabrication businesses into an independent, publicly traded company named Exterran Corporation. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Exterran Corporation included herein have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP are not required in these interim financial statements and have been condensed or omitted. Management believes that the information furnished includes all adjustments of a normal recurring nature that are necessary to fairly present our consolidated financial position, results of operations and cash flows for the periods indicated. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated and combined financial statements presented in our Annual Report on Form 10-K for the year ended December 31, 2017 . That report contains a comprehensive summary of our accounting policies. The interim results reported herein are not necessarily indicative of results for a full year. Certain reclassifications resulting from the adoption of ASU 2016-18, Restricted Cash have been made to the statement of cash flows for the prior year period to conform to the current year presentation. We refer to the condensed consolidated financial statements collectively as “financial statements,” and individually as “balance sheets,” “statements of operations,” “statements of comprehensive income,” “statements of stockholders’ equity” and “statements of cash flows” herein. Recent Accounting Pronouncements We consider the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our financial statements. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 (“Topic 606”) outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes the most current revenue recognition guidance, including industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled for those goods or services. The update also requires disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. On January 1, 2018, we adopted this update using the modified retrospective approach to all contracts that were not completed as of January 1, 2018. As a result of this adoption, we recorded a net increase to the accumulated deficit of $10.0 million as of January 1, 2018 and an increase of $2.7 million in revenue for the nine months ended September 30, 2018 . The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. See Note 2 for the required disclosures related to the impact of adopting this standard and a discussion of our updated policies related to revenue recognition. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to the balance sheet as of January 1, 2018 (in thousands): Impact of Changes in Accounting Policies December 31, 2017 Adjustments January 1, 2018 ASSETS Current assets: Cash and cash equivalents $ 49,145 $ — $ 49,145 Restricted cash 546 — 546 Accounts receivable, net of allowance 266,052 (4,801 ) 261,251 Inventory, net 107,909 (124 ) 107,785 Costs and estimated earnings in excess of billings on uncompleted contracts 40,695 (40,695 ) — Contract assets — 50,824 50,824 Other current assets 38,707 (179 ) 38,528 Current assets held for sale 15,761 — 15,761 Current assets associated with discontinued operations 23,751 — 23,751 Total current assets 542,566 5,025 547,591 Property, plant and equipment, net 822,279 (2,029 ) 820,250 Deferred income taxes 10,550 404 10,954 Intangible and other assets, net 76,980 18,273 95,253 Long-term assets held for sale 4,732 — 4,732 Long-term assets associated with discontinued operations 3,700 — 3,700 Total assets $ 1,460,807 $ 21,673 $ 1,482,480 LIABILITIES AND STOCKHOLDERS ’ EQUITY Current liabilities: Accounts payable, trade $ 148,744 $ — $ 148,744 Accrued liabilities 114,336 16,044 130,380 Deferred revenue 23,902 (23,902 ) — Billings on uncompleted contracts in excess of costs and estimated earnings 89,565 (89,565 ) — Contract liabilities — 112,244 112,244 Current liabilities associated with discontinued operations 31,971 — 31,971 Total current liabilities 408,518 14,821 423,339 Long-term debt 368,472 — 368,472 Deferred income taxes 9,746 (1,908 ) 7,838 Long-term deferred revenue 92,485 (92,485 ) — Long-term contract liabilities — 89,004 89,004 Other long-term liabilities 20,272 22,262 42,534 Long-term liabilities associated with discontinued operations 6,528 — 6,528 Total liabilities 906,021 31,694 937,715 Stockholders’ equity: Preferred stock — — — Common stock 362 — 362 Additional paid-in capital 739,164 — 739,164 Accumulated deficit (223,510 ) (10,021 ) (233,531 ) Treasury stock (6,937 ) — (6,937 ) Accumulated other comprehensive income 45,707 — 45,707 Total stockholders’ equity 554,786 (10,021 ) 544,765 Total liabilities and stockholders’ equity $ 1,460,807 $ 21,673 $ 1,482,480 In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) . The update addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. On January 1, 2018, we adopted this update. The adoption of this update did not have an impact on our statements of cash flows. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . The update requires a reporting entity to recognize the tax expense from intra-entity asset transfers of assets other than inventory in the selling entity’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buying entity’s jurisdiction would also be recognized at the time of the transfer. On January 1, 2018, we adopted this update using a modified retrospective approach. The impact of this adoption was immaterial to our financial statements. In November 2016, the FASB issued ASU 2016-18, Restricted Cash . The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. On January 1, 2018, we adopted this update retrospectively. As a result of this adoption, $0.5 million of restricted cash has been included in the cash and cash equivalent balances in the statement of cash flows for the prior year period. At December 31, 2017, the $49.7 million of cash, cash equivalents and restricted cash on our statement of cash flows was composed of $49.1 million of cash and cash equivalents and $0.5 million of restricted cash. At September 30, 2018 , the $37.5 million of cash, cash equivalents and restricted cash on our statement of cash flows was composed of $37.0 million of cash and cash equivalents and $0.5 million of restricted cash. The impact of this adoption was immaterial to our financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718) . This update provides guidance that clarifies that changes to the terms or conditions of a share-based payment award should be accounted for as modifications. On January 1, 2018, we adopted this update using a prospective approach. The impact of this adoption was immaterial to our financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The update requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statements of operations. The update also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. Lessor accounting will be similar to the current model except for changes made to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance will be replaced with a new model applicable to both lessees and lessors. In July 2018, the FASB issued additional updates to provide clarification on the lease standard and to give entities another option for transition and to provide lessors with a practical expedient to reduce the cost and complexity of implementing the new standard. The new transition option allows entities to not apply the new leases standard in the comparative periods they present in their financial statements in the year of adoption. We intend to adopt the new lease guidance on January 1, 2019. As a lessee, we will be required to record long-term lease assets and related liabilities for future payments on our balance sheet. In preparation for our adoption of the new standard, we are analyzing and updating data previously collected to evaluate the impact the adoption will have on our financial statements. Currently, we estimate that, as a lessee, our assets and liabilities will increase by approximately $25 million to $30 million upon adoption of the new lease guidance. Additionally, we are assessing our use of practical expedients and the systems required to capture the increased reporting and disclosure requirements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) . The update changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of allowance for losses. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. Adoption will require a modified retrospective approach beginning with the earliest period presented. We are currently evaluating the potential impact of the update on our financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The update modifies the disclosure requirements on fair value measurements by removing, modifying and adding certain disclosure requirements. This update is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures upon issuance of the guidance and delayed adoption of the additional required disclosures is permitted until the effective date. Adoption will require a prospective or retrospective approach based on the specific amendments. We are currently evaluating the potential impact of the update on our financial statements. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 2 - Revenue On January 1, 2018 , we adopted Topic 606 applying the modified retrospective method to all contracts that were not completed as of the date of adoption. For contracts that were modified before the effective date, we reflected the aggregate effect of all modifications when identifying performance obligations and allocating transaction price in accordance with a Topic 606 practical expedient. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts have not been adjusted and continue to be reported under the accounting standards in effect for the prior period. We recorded a net increase to accumulated deficit of $10.0 million as of January 1, 2018 due to the cumulative impact of adopting Topic 606. Revenues for the three and nine months ended September 30, 2018 decreased by $0.9 million and increased by $2.7 million , respectively, as a result of adopting Topic 606. Disaggregation of Revenue The following tables present disaggregated revenue by products and services lines and by geographical regions for the three and nine months ended September 30, 2018 (in thousands): Revenue by Products and Services Three Months Ended September 30, 2018 Nine Months Ended Contract Operations Segment: Contract operations services (1) $ 84,828 $ 272,808 Aftermarket Services Segment: Operation and maintenance services (1) $ 14,215 $ 42,812 Part sales (2) 11,301 31,511 Other services (1) 4,477 14,308 Total aftermarket services $ 29,993 $ 88,631 Product Sales Segment: Compression equipment (1) $ 106,140 $ 367,135 Processing and treating equipment (1) 104,739 270,261 Production equipment (2) 1,084 15,864 Other product sales (1) (2) 8,065 14,004 Total product sales revenues $ 220,028 $ 667,264 Total revenues $ 334,849 $ 1,028,703 (1) Revenue recognized over time. (2) Revenue recognized at a point in time. Revenue by Geographical Regions Three Months Ended September 30, 2018 Nine Months Ended North America $ 215,015 $ 669,220 Latin America 64,960 205,549 Middle East and Africa 41,653 99,131 Asia Pacific 13,221 54,803 Total revenues $ 334,849 $ 1,028,703 The North America region is primarily comprised of our operations in Mexico and the U.S. The Latin America region is primarily comprised of our operations in Argentina, Bolivia and Brazil. The Middle East and Africa region is primarily comprised of our operations in Bahrain, Iraq, Oman, Nigeria and the United Arab Emirates. The Asia Pacific region is primarily comprised of our operations in China, Indonesia, Thailand and Singapore. Revenue is recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. The following is a description of principal activities from which we generate revenue. Contract Operations Segment In our contract operations segment, we provide compression or processing and treating services through operating our natural gas compression equipment and crude oil and natural gas production and process equipment on behalf of our customers. Our services include the provision of personnel, equipment, tools, materials and supplies to meet our customers’ natural gas compression or oil and natural gas production and processing service needs. Activities we may perform in meeting our customers’ needs include engineering, designing, sourcing, constructing, installing, operating, servicing, repairing, maintaining and demobilizing equipment owned by us necessary to provide these services. Contract operation services represent a series of distinct monthly services that are substantially the same, with the same pattern of transfer to the customer. Because our customers benefit equally throughout the service period and our efforts in providing contract operation services are incurred relatively evenly over the period of performance, revenue is recognized over time using a time based measure as we provide our services to the customer. Our contracts generally require customers to pay a monthly service fee, which may contain variable consideration such as production or volume based fees, guaranteed run rates, performance bonuses or penalties, liquidated damages and standby fees. Variable considerations included in our contracts are typically resolved on a monthly basis, and as such, variable considerations included in our contracts are generally allocated to each distinct month in the series within the contract. In addition, our contracts may include billings prior to or after the performance of our contract operation services that are recognized as revenue on a straight-line basis over the contract term as we perform our services and the customer receives and consumes the benefits of the services we provide. We generally enter into contracts with our contract operations customers with initial terms ranging between three to five years, and in some cases, in excess of 10 years. In many instances, we are able to renew those contracts prior to the expiration of the initial term and in other instances, we may sell the underlying assets to our customers pursuant to purchase options or negotiated sale. As of September 30, 2018 , we had contract operation services contracts with unsatisfied performance obligations (commonly referred to as backlog) extending through the year 2028. The total aggregate transaction price allocated to the unsatisfied performance obligations as of September 30, 2018 was approximately $1.4 billion , of which approximately $73 million is expected to be recognized during the remainder of 2018, $272 million is expected to be recognized in 2019, $192 million is expected to be recognized in 2020 and $180 million is expected to be recognized in 2021. These amounts do not include anticipated contract renewals. Additionally, contracts that currently contain month-to-month terms are represented in our backlog as one month of unsatisfied performance obligations. Our contracts are subject to cancellation or modification at the election of the customer; however, due to the level of capital deployed by our customers on underlying projects, we have not been materially adversely affected by contract cancellations or modifications in the past. Aftermarket Services Segment In our aftermarket services business, we sell parts and components and provide operations, maintenance, overhaul, upgrade, commissioning and reconfiguration services to customers who own their own compression, production, processing, treating and related equipment. Our services range from routine maintenance services and parts sales to the full operation and maintenance of customer-owned equipment. Operations and maintenance services: Operation and maintenance services include personnel to run the equipment and monitor the outputs of the equipment, along with performing preventative or scheduled maintenance on customer-owned equipment. Operation and maintenance services represent a series of distinct monthly services that are substantially the same, with the same pattern of transfer to the customer. Because our customers benefit equally throughout the service period and our efforts in providing operation and maintenance services are incurred relatively evenly over the period of performance, revenue is recognized over time using a time based measure as we provide our services to the customer. Our contracts generally require customers to pay a monthly service fee, which may contain variable consideration such as production or volume based fees and performance bonuses or penalties. Variable considerations included in our contracts are typically resolved on a monthly basis, and as such, variable considerations included in our contracts are generally allocated to each distinct month in the series within the contract. We generally enter into contracts with our operation and maintenance customers with initial terms ranging between two to four years, and in some cases, in excess of six years. In many instances, we are able to renew those contracts prior to the expiration of the initial term. Parts sales: We offer our customers a full range of parts needed for the maintenance, repair and overhaul of oil and natural gas equipment, including natural gas compressors, industrial engines and production and processing equipment. We recognize revenue from parts sales at a point in time following the transfer of control of such parts to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contract. Our contracts require customers to pay a fixed fee upon shipment or delivery of the parts. Other services: Within our aftermarket services segment we also provide a wide variety of other services such as overhaul, commissioning, upgrade and reconfiguration services on customer-owned equipment. Overhaul services provided to customers are intended to return the major components to a “like new” condition without significantly modifying the applications for which the units were designed. Commissioning services that we provide to our customers generally include supervision and the introduction of fluids or gases into the systems to test vibrations, pressures and temperatures to ensure that customer-owned equipment is operating properly and is ready for start-up. Upgrade and reconfiguration services modify the operating parameters of customer-owned equipment such that the equipment can be used in applications for which it previously was not suited. Generally, the wide array of other services provided within the aftermarket services segment are expected to be completed within a six month period. Individually these services are generally distinct within the context of the contract and are not highly interdependent or interrelated with other service offerings. We recognize revenue from these services over time based on the proportion of labor hours expended to the total labor hours expected to complete the contract performance obligation. Our contracts generally require customers to pay a service fee that is either fixed or on a time and materials basis, which may include progress billings. Our aftermarket services contracts are subject to cancellation or modification at the election of the customer. Product Sales Segment In our product sales segment, we design, engineer, manufacture, install and sell natural gas compression packages as well as equipment used in the production, treating and processing of crude oil and natural gas primarily to major and independent oil and natural gas producers as well as national oil and natural gas companies in the countries where we operate. Compression equipment: We design, engineer, manufacture and sell skid-mounted natural gas compression equipment to meet standard or unique customer specifications. We recognize revenue from the sale of compression equipment over time based on the proportion of labor hours expended to the total labor hours expected to complete the contract performance obligation. Compression equipment manufactured for our customers are specifically designed and engineered to our customers’ specification and do not have an alternative use to us. Our contracts include a fixed fee and require our customers to make progress payments based on completion of contractual milestones during the life cycle of the manufacturing process. Our contracts provide us with an enforceable right to payment for work performed to date. Components of variable considerations exist in certain of our contracts and may include unpriced change orders, liquidated damages and performance bonuses or penalties. Typically, we expect the manufacturing of our compressor equipment to be completed within a three to 12 month period. Processing and treating equipment: Processing and treating equipment sold to our customers consists of custom-engineered processing and treating plants, such as refrigeration, amine, cryogenic and natural gas processing plants. The manufacturing of processing and treating equipment generally represents a single performance obligation within the context of the contract. We recognize revenue from the sale of processing and treating equipment over time based on the proportion of labor hours expended to the total labor hours expected to complete the contract performance obligation. Processing and treating equipment manufactured for our customers are specifically designed and engineered to our customers’ specification and do not have an alternative use to us. Our contracts include a fixed fee and require our customers to make progress payments based on our completion of contractual milestones during the life cycle of the manufacturing process. Our contracts provide us with an enforceable right to payment for work performed to date. Components of variable considerations exist in certain of our contracts and may include unpriced change orders, liquidated damages and performance bonuses or penalties. Typically, we expect the manufacturing of our processing and treating equipment to be completed within a six to 24 month period. Production equipment: In June 2018, we completed the sale of our North America production equipment assets (“PEQ assets”), which included $12.0 million in unsatisfied performance obligations. See Note 6 for further details on the sale of our PEQ assets. In North America, we previously manufactured standard production equipment used for processing wellhead production from onshore or shallow-water offshore platform production. The manufacturing of production equipment generally represented a single performance obligation within the context of the contract. We recognized revenue from the sale of production equipment at a point in time following the transfer of control of the equipment to the customer, which typically occurred upon completion of the manufactured equipment, depending on the terms of the underlying contract. Our contracts generally required customers to pay a fixed fee upon completion. Other product sales: Within our product sales segment we also provide for the sale of standard and custom water treatment equipment and floating production storage and offloading equipment and supervisor site work services. We recognize revenue from the sale of standard water treatment equipment at a point in time following the transfer of control of such equipment to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contract. We recognize revenue from the sale of custom water treatment equipment over time based on the proportion of costs expended to the total costs expected to complete the contract performance obligation. We recognize revenue from the sale of custom water treatment equipment and floating production storage and offloading equipment and supervisor site work services over time based on the proportion of labor costs expended to the total labor costs expected to complete the contract performance obligation. Product sales contracts that include engineering, design, project management, procurement, construction and installation services necessary to incorporate our products into production, processing and compression facilities are treated as a single performance obligation due to the services that significantly integrate each piece of equipment into the combined output contracted by the customer. We provide assurance-type warranties on certain equipment in our product sales contracts. These warranties generally do not constitute a separate performance obligation. Product warranty reserves are established in the same period that revenue from the sale of the related products is recognized, or in the period that a specific issue arises as to the functionality of a product. The determination of such reserves requires that we make estimates of expected costs to repair or to replace the products under warranty. The amounts of the reserves are based on established terms and our best estimate of the amounts necessary to settle future and existing claims on product sales as of the balance sheet date. If actual repair and replacement costs differ significantly from estimates, adjustments to recognize additional cost of sales may be required in future periods. As of September 30, 2018 , the total aggregate transaction price allocated to the unsatisfied performance obligations for product sales contracts was approximately $759 million , of which approximately $183 million is expected to be recognized during the remainder of 2018, approximately $569 million is expected to be recognized in 2019 and approximately $7 million is expected to be recognized in 2020. Our contracts are subject to cancellation or modification at the election of the customer; however, due to our enforceable right to payment for work performed, we have not been materially adversely affected by contract cancellations or modifications in the past. Significant Estimates The recognition of revenue over time based on the proportion of labor hours expended to the total labor hours expected to complete depends largely on our ability to make reasonable dependable estimates related to the extent of progress toward completion of the contract, contract revenues and contract costs. Recognized revenues and profits are subject to revisions as the contract progresses to completion. Revisions in profit estimates are charged to income in the period in which the facts that give rise to the revision become known using the cumulative catch-up method. Due to the nature of some of our contracts, developing the estimates of costs often requires significant judgment. To calculate the proportion of labor hours expended to the total labor hours expected to complete the contract performance obligation, management uses significant judgment to estimate the number of total hours and profit expected for each project. Variable Consideration The nature of our contracts gives rise to several types of variable consideration. We estimate variable consideration at the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Additionally, we include in our contract estimates additional revenue for unapproved change orders or claims against customers when we believe we have an enforceable right to the modification or claim, the amount can be estimated reliably and its realization is probable. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and historical, current and forecasted information that is reasonably available to us. Contracts with Multiple Performance Obligations Some of our contracts have multiple performance obligations. For instance, some of our product sales contracts include commissioning services or the supply of spare parts. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service. Contract Assets and Contract Liabilities The following table provides information about accounts receivables, net, contract assets and contract liabilities from contracts with customers (in thousands): As of As of January 1, 2018 Accounts receivables, net $ 243,441 $ 261,251 Contract assets and contract liabilities: Current contract assets 71,841 50,824 Long-term contract assets 7,226 11,835 Current contract liabilities 89,187 112,244 Long-term contract liabilities 89,736 89,004 Accounts receivables are recorded when the right to consideration becomes unconditional. Our contract assets include amounts related to revenue that has been recognized in advance of billing the customer. The contract assets in our balance sheets include costs in excess of billings and unbilled receivables. When we receive consideration, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of the contract, we record a contract liability. Our contract liabilities include payments received in advance of performance under the contract. The contract liabilities in our balance sheets include billings in excess of costs and deferred revenue. Billings in excess of costs primarily relate to billings that have not been recognized as revenue on product sales jobs where the transfer of control to the customer occurs over time. Deferred revenue is primarily comprised of upfront billings on contract operations jobs and billings related to product sales jobs that have not begun where revenue is recognized over time. Upfront payments received from customers on contract operations jobs are generally deferred and amortized over the contract term as we perform our services and the customer receives and consumes the benefits of the services we provide. Contract assets and liabilities are reported in our balance sheets on a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. During the nine months ended September 30, 2018 , revenue recognized from contract operations services included $15.3 million of revenue deferred in previous periods. Revenue recognized during the nine months ended September 30, 2018 from product sales performance obligations partially satisfied in previous periods was $415.3 million , of which $84.3 million was included in billings in excess of costs at the beginning of the period. Additionally, during the nine months ended September 30, 2018 , we recognized $4.1 million in revenue from contract operations services performance obligations that were satisfied in a previous period. The increase in current contract assets and decrease in current contract liabilities during the nine months ended September 30, 2018 were primarily driven by progression of product sales projects and the timing of milestone billings. Costs to Fulfill a Contract We capitalize costs incurred to fulfill our revenue contracts that (i) relate directly to the contract (ii) are expected to generate resources that will be used to satisfy the performance obligation under the contract and (iii) are expected to be recovered through revenue generated under the contract. As of September 30, 2018 , we had capitalized fulfillment costs of $7.6 million related to contractual obligations incurred at the completion of the commissioning phase and prior to providing services on contracts within our contract operations segment. Contract fulfillment costs are expensed to cost of sales as we satisfy our performance obligations by transferring contract operation services to the customer. During the three months ended September 30, 2018 , we recorded a net benefit of $0.6 million from recoveries of fulfillment costs resulting from an amendment to a contract and realizing lower costs than estimated. During the nine months ended September 30, 2018 , we recorded amortization expense for capitalized fulfillment costs of $0.5 million . Capitalized fulfillment costs are included in intangible and other assets, net, in the balance sheets. Costs to Obtain a Contract We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain commissions paid to internal sales representatives and third party agents meet the requirements to be capitalized. The amount capitalized for incremental costs to obtain contracts as of September 30, 2018 was $6.6 million . The judgments made in determining the amount of costs incurred include whether the commissions are in fact incremental and would not have occurred absent the customer contract. Capitalized costs to obtain a contract are included in intangible and other assets, net, in the balance sheets and are amortized to selling, general and administrative expense over the expected period of benefit in a manner that is consistent with the transfer of the related goods or services to which the asset relates. During the three and nine months ended September 30, 2018 , we recorded amortization expense for capitalized costs to obtain a contract of $0.3 million and $1.1 million , respectively. Practical Expedients and Exemptions We have elected the following practical expedients: • We do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. • We treat shipping and handling activities that occur after the transfer of control as costs to fulfill a contract rather than a separate performance obligation. • We record taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from our customers on a net basis, and thus, such taxes are excluded from the measurement of a performance obligation’s transaction price. • We expense sales commissions as incurred when we expect that the amortization period of such costs will be one year or less. Impact of New Revenue Recognition Guidance on Financial Statement Line Items The following tables summarize the impacts of the adoption of the new revenue recognition guidance on our balance sheet as of September 30, 2018 and statements of operations and cash flows for the applicable periods during the three and nine months ended September 30, 2018 (in thousands): September 30, 2018 As Reported Adjustments Balances Without Adoption of Topic 606 ASSETS Inventory, net $ 141,846 $ 623 $ 142,469 Contract assets 71,841 (18,069 ) 53,772 Other current assets 40,482 11,450 51,932 Property, plant and equipment, net 860,997 1,942 862,939 Deferred income taxes 13,731 (2,378 ) 11,353 Intangible and other assets, net 87,415 (17,389 ) 70,026 Total assets 1,512,492 (23,821 ) 1,488,671 LIABILITIES AND STOCKHOLDERS ’ EQUITY Accrued liabilities $ 127,854 $ (13,952 ) $ 113,902 Contract liabilities 89,187 1,378 90,565 Deferred income taxes 6,356 (3,846 ) 2,510 Long-term contract liabilities 89,736 3,183 92,919 Other long-term liabilities 38,948 (18,456 ) 20,492 Total liabilities 959,386 (31,693 ) 927,693 Accumulated deficit (222,750 ) 7,872 (214,878 ) Total stockholders’ equity 553,106 7,872 560,978 Total liabilities and stockholders’ equity 1,512,492 (23,821 ) 1,488,671 The adoption of the new revenue recognition guidance resulted in increases in total assets and liabilities of $23.8 million and $31.7 million , respectively. This was primarily due to capitalized contract fulfillment and obtainment costs and related liabilities recorded associated with contracts within our contract operations segment. Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As Reported Adjustments Balances Without Adoption of Topic 606 As Reported Adjustments Balances Without Adoption of Topic 606 Revenues: Contract operations $ 84,828 $ (165 ) $ 84,663 $ 272,808 $ (1,624 ) $ 271,184 Aftermarket services 29,993 1,016 31,009 88,631 (1,063 ) 87,568 Cost of sales (excluding depreciation and amortization expense): Contract operations 27,768 556 28,324 95,525 (545 ) 94,980 Aftermarket services 22,138 613 22,751 64,741 (793 ) 63,948 Selling, general and administrative 45,103 (39 ) 45,064 133,727 6,588 140,315 Depreciation and amortization 31,108 (551 ) 30,557 92,321 (1,919 ) 90,402 Income before income taxes 11,150 272 11,422 28,733 (6,018 ) 22,715 Provision for income taxes 7,954 725 8,679 23,068 (3,869 ) 19,199 Income from continuing operations 3,196 (453 ) 2,743 5,665 (2,149 ) 3,516 Net income 5,369 (453 ) 4,916 10,781 (2,149 ) 8,632 Basic net income per common share $ 0.15 $ (0.02 ) $ 0.13 $ 0.30 $ (0.06 ) $ 0.24 Diluted net income per common share 0.15 (0.02 ) 0.13 0.30 (0.06 ) 0.24 The adoption of the new revenue recognition guidance resulted in increase s in net income of $0.5 million and $2.1 million for the three and nine months ended September 30, 2018 , respectively. Most notably, costs to obtain a contract during the nine months ended September 30, 2018 would have resulted in an increase in selling, general and administrative expense under previous accounting standards. Nine Months Ended September 30, 2018 As Reported Adjustments Balances Without Adoption of Topic 606 Cash flows from operating activities: Net income $ 10,781 $ (2,149 ) $ 8,632 Depreciation and amortization 92,321 (1,919 ) 90,402 Deferred income tax benefit (4,727 ) (3,869 ) (8,596 ) Changes in assets and liabilities: Inventory (51,067 ) (499 ) (51,566 ) Contract assets (16,263 ) 3,186 (13,077 ) Other current assets 5,073 (6,470 ) (1,397 ) Accounts payable and other liabilities 29,116 5,882 34,998 Contract liabilities (11,937 ) 770 (11,167 ) Other 3,511 5,068 8,579 Net cash provided by continuing operations 88,793 — 88,793 The adoption of the new revenue recognition guidance resulted in offsetting shifts in cash flows within cash flows from operating activities and did not have an impact on our total cash flows from operations. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Note 3 - Discontinued Operations In August 2012, our Venezuelan subsidiary sold its previously nationalized assets to PDVSA Gas, S.A. (“PDVSA Gas”) for a purchase price of approximately $441.7 million . We received an installment payment, including an annual charge, totaling $19.7 million during the nine months ended September 30, 2017 . As of September 30, 2018 , the remaining principal amount due to us was approximately $17 million . We have not recognized amounts payable to us by PDVSA Gas as a receivable and will therefore recognize payments received in the future as income from discontinued operations in the periods such payments are received. The proceeds from the sale of the assets are not subject to Venezuelan national taxes due to an exemption allowed under the Venezuelan Reserve Law applicable to expropriation settlements. In addition, and in connection with the sale, we and the Venezuelan government agreed to waive rights to assert certain claims against each other. In accordance with the separation and distribution agreement from the Spin-off, a subsidiary of Archrock has the right to receive payments from our wholly owned subsidiary, Exterran Energy Solutions, L.P. (“EESLP”), based on a notional amount corresponding to payments received by our subsidiaries from PDVSA Gas in respect of the sale of our previously nationalized assets promptly after such amounts are collected by our subsidiaries. Pursuant to the separation and distribution agreement, we transferred cash of $19.7 million to Archrock during the nine months ended September 30, 2017 . The transfer of cash was recognized as a reduction to additional paid-in capital in our financial statements. See Note 15 for further discussion related to our contingent liability to Archrock. In the first quarter of 2016, we began executing the exit of our Belleli EPC business that has historically been comprised of engineering, procurement and construction for the manufacture of tanks for tank farms and the manufacture of evaporators and brine heaters for desalination plants in the Middle East (referred to as “Belleli EPC” or the “Belleli EPC business” herein) by ceasing the bookings of new orders. As of the fourth quarter of 2017, we had substantially exited our Belleli EPC business and, in accordance with GAAP, it is reflected as discontinued operations in our financial statements for all periods presented. Although we have reached mechanical completion on all remaining Belleli EPC contracts, we are still subject to risks and uncertainties potentially resulting from warranty obligations, customer or vendors claims against us, settlement of claims against customers, completion of demobilization activities and litigation developments. The facility previously utilized to manufacture products for our Belleli EPC business has been repurposed to manufacture product sales equipment. As such, certain personnel, buildings, equipment and other assets that were previously related to our Belleli EPC business remain a part of our continuing operations. As a result, activities associated with our ongoing operations at our repurposed facility are included in continuing operations. The following table summarizes the operating results of discontinued operations (in thousands): Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Venezuela Belleli EPC Total Venezuela Belleli EPC Total Revenue $ — $ 7,654 $ 7,654 $ — $ 12,616 $ 12,616 Cost of sales (excluding depreciation and amortization expense) — 3,587 3,587 — 9,116 9,116 Selling, general and administrative 35 742 777 29 1,317 1,346 Depreciation and amortization — — — — 1,304 1,304 Other (income) expense, net — 537 537 — (72 ) (72 ) Provision for (benefit from) income taxes — 580 580 — (1,217 ) (1,217 ) Income (loss) from discontinued operations, net of tax $ (35 ) $ 2,208 $ 2,173 $ (29 ) $ 2,168 $ 2,139 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Venezuela Belleli EPC Total Venezuela Belleli EPC Total Revenue $ — $ 15,536 $ 15,536 $ — $ 60,775 $ 60,775 Cost of sales (excluding depreciation and amortization expense) — 8,798 8,798 — 35,179 35,179 Selling, general and administrative 96 929 1,025 94 3,823 3,917 Depreciation and amortization — 480 480 — 5,531 5,531 Recovery attributable to expropriation — — — (16,514 ) — (16,514 ) Restructuring and other charges — — — — (439 ) (439 ) Other (income) expense, net 1 (553 ) (552 ) (3,157 ) 383 (2,774 ) Provision for income taxes — 669 669 — 718 718 Income (loss) from discontinued operations, net of tax $ (97 ) $ 5,213 $ 5,116 $ 19,577 $ 15,580 $ 35,157 The following table summarizes the balance sheet data for discontinued operations (in thousands): September 30, 2018 December 31, 2017 Venezuela Belleli EPC Total Venezuela Belleli EPC Total Cash $ 1 $ — $ 1 $ 3 $ — $ 3 Accounts receivable — 10,991 10,991 — 14,770 14,770 Costs and estimated earnings in excess of billings on uncompleted contracts — 1,745 1,745 — 7,786 7,786 Other current assets 2 186 188 2 1,190 1,192 Total current assets associated with discontinued operations 3 12,922 12,925 5 23,746 23,751 Property, plant and equipment, net — 522 522 — 1,054 1,054 Intangible and other assets, net — 1,780 1,780 — 2,646 2,646 Total assets associated with discontinued operations $ 3 $ 15,224 $ 15,227 $ 5 $ 27,446 $ 27,451 Accounts payable $ — $ 4,015 $ 4,015 $ — $ 9,253 $ 9,253 Accrued liabilities 66 9,346 9,412 59 15,617 15,676 Billings on uncompleted contracts in excess of costs and estimated earnings — 2,551 2,551 — 7,042 7,042 Total current liabilities associated with discontinued operations 66 15,912 15,978 59 31,912 31,971 Other long-term liabilities — 6,301 6,301 1 6,527 6,528 Total liabilities associated with discontinued operations $ 66 $ 22,213 $ 22,279 $ 60 $ 38,439 $ 38,499 |
Inventory, Net
Inventory, Net | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory, net | Note 4 - Inventory, Net Inventory, net of reserves, consisted of the following amounts (in thousands): September 30, 2018 December 31, 2017 Parts and supplies $ 88,437 $ 79,803 Work in progress 48,079 21,853 Finished goods 5,330 6,253 Inventory, net $ 141,846 $ 107,909 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Note 5 - Property, Plant and Equipment, Net Property, plant and equipment, net, consisted of the following (in thousands): September 30, 2018 December 31, 2017 Compression equipment, facilities and other fleet assets (1) $ 1,650,356 $ 1,577,052 Land and buildings 100,857 96,463 Transportation and shop equipment 82,525 82,240 Other 96,622 90,395 1,930,360 1,846,150 Accumulated depreciation (1,069,363 ) (1,023,871 ) Property, plant and equipment, net $ 860,997 $ 822,279 (1) In the fourth quarter of 2017, we evaluated the estimated useful lives and salvage values of our property, plant and equipment. As a result of this evaluation, we changed the useful lives and salvage values for our compression equipment from a maximum useful life of 30 years to 23 years and a maximum salvage value of 20% to 15% based on expected future use. During the three and nine months ended September 30, 2018 , we recorded increases in depreciation expense of $2.4 million and $7.5 million , respectively, as a result of these changes in useful lives and salvage values which impacted our diluted net income per share by $0.07 and $0.21 , respectively. |
Sale of PEQ Assets
Sale of PEQ Assets | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of PEQ Assets | Note 6 - Sale of PEQ Assets In the fourth quarter of 2017 , we classified certain PEQ assets primarily related to inventory and property, plant and equipment, net, within our product sales business as assets held for sale in our balance sheets. In April 2018, we entered into a definitive agreement for the sale of these assets to Titan Production Equipment Acquisition, LLC, an affiliate of Castle Harlan, Inc. During the nine months ended September 30, 2018 , we recorded an impairment of $1.8 million to reduce these assets to their approximate fair values based on the expected net proceeds. The impairment charges are reflected in long-lived asset impairment in our statements of operations. In June 2018, we completed the sale of our PEQ assets. The sale of our PEQ assets resulted in a loss of $1.7 million during the nine months ended September 30, 2018 , which is reflected in other (income), expense, net, in our statements of operations. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 7 - Debt Debt consisted of the following (in thousands): September 30, 2018 December 31, 2017 Revolving credit facility due November 2020 $ 50,000 $ — 8.125% senior notes due May 2025 375,000 375,000 Other debt 800 1,171 Unamortized deferred financing costs of 8.125% senior notes (6,683 ) (7,250 ) Total debt 419,117 368,921 Less: Amounts due within one year (1) (449 ) (449 ) Long-term debt $ 418,668 $ 368,472 (1) Short-term debt and the current portion of long-term debt are included in accrued liabilities in our balance sheets. Revolving Credit Facility We and our wholly owned subsidiary, EESLP, are parties to an amended and restated credit agreement (the “Credit Agreement”) consisting of a $680.0 million revolving credit facility expiring in November 2020 and previously included a term loan facility. In April 2017, we paid the remaining principal amount of $232.8 million due under the term loan facility with proceeds from the 2017 Notes (as defined below) issuance. As a result of the repayment of the term loan facility, we expensed $1.7 million of unamortized deferred financing costs during the nine months ended September 30, 2017 which is reflected in interest expense in our statements of operations. As of September 30, 2018 , we had $50.0 million in outstanding borrowings and $58.2 million in outstanding letters of credit under our revolving credit facility. At September 30, 2018 , taking into account guarantees through letters of credit, we had undrawn capacity of $571.8 million under our revolving credit facility. On October 9, 2018, we and EESLP entered into a Second Amended and Restated Credit Agreement (the “Amended Credit Agreement”), which among other things, increased the borrowing capacity under our revolving credit facility from $680.0 million to $700.0 million . The Amended Credit Agreement also extended the maturity date of our revolving credit facility to October 9, 2023. Revolving borrowings under the Amended Credit Agreement bear interest at a rate equal to, at our option, either the Base Rate or LIBOR (or EURIBOR, in the case of Euro-denominated borrowings) plus the applicable margin. “Base Rate” means the greatest of (a) the prime rate, (b) the federal funds effective rate plus 0.50% and (c) one-month LIBOR plus 1.00% . The applicable margin for revolving borrowings varies (i) in the case of LIBOR and EURIBOR loans, from 1.75% to 2.75% and (ii) in the case of Base Rate loans, from 0.75% to 1.75% , and in each case will be determined based on a total leverage ratio pricing grid. 8.125% Senior Notes Due May 2025 In April 2017, our 100% owned subsidiaries EESLP and EES Finance Corp. issued $375.0 million aggregate principal amount of 8.125% senior unsecured notes due 2025 (the “2017 Notes”). The 2017 Notes are guaranteed by us on a senior unsecured basis. Pursuant to the separation and distribution agreement from the Spin-off, EESLP used proceeds from the issuance of the 2017 Notes to pay a subsidiary of Archrock $25.0 million in satisfaction of EESLP’s obligation to pay that sum following the occurrence of a qualified capital raise. The transfer of cash to Archrock’s subsidiary was recognized as a reduction to additional paid-in capital in the second quarter of 2017. In connection with the issuance of the 2017 Notes, we incurred transaction costs of $7.9 million related to the issuance of the 2017 Notes. These costs are presented as a direct deduction from the carrying value of the 2017 Notes and are being amortized over the term of the 2017 Notes. In April 2018, the 2017 Notes were exchanged for notes with substantially identical terms and registered under the Securities Act of 1933, as amended. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8 - Fair Value Measurements The accounting standard for fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into the following three categories: • Level 1 — Quoted unadjusted prices for identical instruments in active markets to which we have access at the date of measurement. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or prices vary substantially over time or among brokered market makers. • Level 3 — Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect our own assumptions regarding how market participants would price the asset or liability based on the best available information. Nonrecurring Fair Value Measurements The following table presents our assets and liabilities measured at fair value on a nonrecurring basis during the nine months ended September 30, 2018 , with pricing levels as of the date of valuation (in thousands): Nine Months Ended September 30, 2018 (Level 1) (Level 2) (Level 3) Impaired long-lived assets (1) $ — $ — $ 550 Impaired assets—assets held for sale (2) — — 21,026 Long-term note receivable (3) — — 14,573 (1) Our estimate of the fair value of the impaired long-lived assets during the nine months ended September 30, 2018 was primarily based on the expected net sale proceeds compared to other fleet units we sold and/or a review of other units offered for sale by third parties. (2) Our estimate of the fair value of the impaired PEQ assets, which were classified as assets held for sale as of March 31, 2018, was based on the expected net proceeds from the sale of the assets. (3) Our estimate of the fair value of a note receivable was discounted based on a settlement period of eight years and a discount rate of 5.2% . Financial Instruments Our financial instruments consist of cash, restricted cash, receivables, payables and debt. At September 30, 2018 and December 31, 2017 , the estimated fair values of cash, restricted cash, receivables and payables approximated their carrying amounts as reflected in our balance sheets due to the short-term nature of these financial instruments. The fair value of the 2017 Notes was estimated based on model derived calculations using market yields observed in active markets, which are Level 2 inputs. As of September 30, 2018 and December 31, 2017 , the carrying amount of the 2017 Notes, excluding unamortized deferred financing costs, of $375.0 million was estimated to have a fair value of $392.0 million and $404.0 million , respectively. Due to the variable rate nature of our revolving credit facility, the carrying value as of September 30, 2018 approximated the fair value as the rate was comparable to the then-current market rate at which debt with similar terms could have been obtained. |
Long-Lived Asset Impairment
Long-Lived Asset Impairment | 9 Months Ended |
Sep. 30, 2018 | |
Asset Impairment Charges [Abstract] | |
Long-Lived Asset Impairment | Note 9 - Long-Lived Asset Impairment We review long-lived assets, including property, plant and equipment and identifiable intangibles that are being amortized, for impairment whenever events or changes in circumstances, including the removal of compressor units from our active fleet, indicate that the carrying amount of an asset may not be recoverable. We regularly review the future deployment of our idle compression assets used in our contract operations segment for units that are not the type, configuration, condition, make or model that are cost efficient to maintain and operate. During the third quarter 2018, we evaluated for impairment idle units that had been previously culled from our fleet and are available for sale. Based upon that review, we reduced the expected proceeds from disposition for certain units. This resulted in an additional impairment of $2.1 million to reduce the book value of each unit to its estimated fair value during the three and nine months ended September 30, 2018 . The fair value of each unit was estimated based on the expected net sale proceeds compared to other fleet units we recently sold and/or a review of other units recently offered for sale by third parties. In the fourth quarter of 2017 , we classified our PEQ assets primarily related to inventory and property, plant and equipment, net, within our product sales business as assets held for sale in our balance sheets. As described in Note 6 , in June 2018, we completed the sale of our PEQ assets. During the nine months ended September 30, 2018 , we recorded an impairment of $1.8 million to reduce these assets to their approximate fair values based on the expected net proceeds. |
Restatement Related Charges (Re
Restatement Related Charges (Recoveries), Net | 9 Months Ended |
Sep. 30, 2018 | |
Restatement Charges [Abstract] | |
Restatement Related Charges | Note 10 - Restatement Related Charges (Recoveries), Net During the first quarter of 2016, our senior management identified errors relating to the application of percentage-of-completion accounting principles to specific Belleli EPC product sales projects. We incurred restatement related charges of $0.3 million and $2.0 million during the three months ended September 30, 2018 and 2017 , respectively, and $0.9 million and $5.8 million during the nine months ended September 30, 2018 and 2017 , respectively. The costs incurred were external costs associated with an SEC investigation and remediation activities related to the restatement of our financial statements. We recorded recoveries from Archrock pursuant to the separation and distribution agreement for previously incurred restatement related costs of $0.6 million and $1.2 million during the three and nine months ended September 30, 2018 , respectively, and $2.8 million during the nine months ended September 30, 2017 . We may incur additional cash expenditures related to external legal counsel costs associated with an ongoing SEC investigation surrounding the restatement of our financial statements, of which a portion may be recoverable from Archrock. The following table summarizes the changes to our accrued liability balance related to restatement charges, net, for the nine months ended September 30, 2017 and 2018 (in thousands): Restatement Related Charges Beginning balance at January 1, 2017 $ 2,212 Additions for costs expensed, net 3,011 Reductions for payments, net (4,281 ) Ending balance at September 30, 2017 $ 942 Beginning balance at January 1, 2018 $ 579 Additions for costs expensed, net (318 ) Reductions for payments, net (105 ) Ending balance at September 30, 2018 $ 156 The following table summarizes the components of charges included in restatement related charges (recoveries), net, in our statements of operations for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 External accounting costs $ — $ 317 $ — $ 1,071 External legal costs — 1,409 533 4,101 Other 263 271 369 640 Recoveries from Archrock (605 ) — (1,220 ) (2,801 ) Total restatement related charges (recoveries), net $ (342 ) $ 1,997 $ (318 ) $ 3,011 |
Restructuring and Other Charges
Restructuring and Other Charges | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Note 11 - Restructuring and Other Charges In the second quarter of 2018, we initiated a relocation plan in the North America region to better align our contract operations business with our customers. As a result of this plan, during the three and nine months ended September 30, 2018 , we incurred restructuring and other charges of $0.3 million and $1.7 million , respectively. As of September 30, 2018 , the accrued liability balance related to this plan was $1.0 million . The charges incurred in conjunction with this relocation plan are included in restructuring and other charges in our statements of operations. We currently estimate that we will incur additional charges with respect to this relocation plan of approximately $1.2 million . We expect the majority of the estimated additional charges will result in cash expenditures. In connection with the Spin-off, we incurred restructuring and other charges of $0.2 million and $0.4 million , respectively, during the three and nine months ended September 30, 2017 primarily related to retention awards to certain employees. Additionally, we announced a cost reduction plan primarily focused on workforce reductions and the reorganization of certain facilities in the second quarter of 2015. We incurred restructuring and other charges associated with the cost reduction plan of $0.2 million and $2.6 million during the three and nine months ended September 30, 2017 , respectively. The charges incurred in conjunction with the Spin-off and cost reduction plan are reflected as restructuring and other charges in our statements of operations. In 2017, we completed restructuring activities related to the Spin-off and cost reduction plan. The following table summarizes the components of charges included in restructuring and other charges in our statements of operations for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Retention awards to certain employees $ — $ 189 $ — $ 442 Employee termination benefits 33 206 1,389 2,100 Relocation costs 231 — 297 — Other — 22 — 493 Total restructuring and other charges $ 264 $ 417 $ 1,686 $ 3,035 |
Provision for Income Taxes
Provision for Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Note 12 - Provision for Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Reform Act”). Additionally, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB118”) in December 2017, which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes in the Tax Reform Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. For the year ended December 31, 2017, our provision for income tax included the impact of decisions regarding the various impacts of tax reform and related disclosures. In some cases where the guidance in SAB118 applied, we disclosed in our financial statements those cases where the accounting could be completed, and for matters that have not been completed, we recognized provisional amounts to the extent that they are reasonably estimable and will adjust them over time as more information becomes available. Specifically, we recorded provisional amounts associated with the transition tax on undistributed earnings, the re-measurement of deferred tax assets and liabilities due to the reduction in the corporate tax rate and the transition tax, and the tax benefit associated with the reduction of the valuation allowance. The provisional amounts incorporate assumptions made based upon our current interpretation of the Tax Reform Act and may change as we receive additional clarification and implementation guidance. We are continuing to analyze additional information to determine the final impact as well as other impacts of the Tax Reform Act. Any adjustments recorded to the provisional amounts will be included in income from operations as an adjustment to our 2018 financial statements. The provision for income taxes for the three and nine months ended September 30, 2018 includes $5.1 million and $10.8 million , respectively, related to income tax on income in Argentina recorded as a result of foreign exchange rate movements. During the third quarter of 2017, our Brazil subsidiary entered the Tax Special Regularization Program (the “PERT Program”) pursuant to Brazil Provisional Measure No. 783 issued on May 31, 2017. The PERT Program allows for the partial settling of debts, both income tax debts and non-income-based tax debts, due by April 30, 2017 to Brazil’s Federal Revenue Service with the use of tax credits, including income tax loss carryforwards. A $2.9 million income tax benefit was recorded during the three and nine months ended September 30, 2017 attributable to the reversal of valuation allowances against certain deferred tax assets related to income tax loss carryforwards that were utilized under the PERT Program. Additionally, during the three and nine months ended September 30, 2017 , we incurred $0.4 million in penalties, which is reflected in other (income) expense, net, in our statements of operations, and $0.1 million in interest expense, which is reflected in interest expense in our statements of operations, attributable to the settling of non-income-based tax debts in connection with the PERT Program. Also, during the second quarter of 2017, our Brazil subsidiary entered the Tax Regularization Program (the “PRT Program”) pursuant to Brazil Provisional Measure No. 766 issued on January 4, 2017. Similar to the PERT Program, the PRT Program allows for the partial settling of debts, both income tax debts and non-income-based tax debts, due by November 30, 2016 to Brazil’s Federal Revenue Service with the use of tax credits, including income tax loss carryforwards. An $11.9 million income tax benefit was recorded during the nine months ended September 30, 2017 attributable to the reversal of valuation allowances against certain deferred tax assets related to income tax loss carryforwards that were utilized under the PRT Program, including interest income. Additionally, during the nine months ended September 30, 2017 , we incurred $1.5 million in penalties, which is reflected in other (income) expense, net, in our statements of operations, and $2.4 million in interest expense, which is reflected in interest expense in our statements of operations, attributable to the settling of non-income-based tax debts in connection with the PRT Program. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Note 13 - Stock-Based Compensation Stock Options Stock options are granted at fair market value at the grant date, are exercisable according to the vesting schedule established and generally expire no later than ten years after the grant date. Stock options generally vest one-third per year on each of the first three anniversaries of the grant date. There were no stock options granted during the nine months ended September 30, 2018 . Restricted Stock, Restricted Stock Units and Performance Units For grants of restricted stock, restricted stock units and performance units, we recognize compensation expense over the applicable vesting period equal to the fair value of our common stock at the grant date. Grants of restricted stock, restricted stock units and performance units generally vest one third per year on each of the first three anniversaries of the grant date. Certain grants of restricted stock vest on the third anniversary of the grant date and certain grants of performance units vest on the second anniversary of the grant date. The table below presents the changes in restricted stock, restricted stock units and performance units for our common stock during the nine months ended September 30, 2018 . Shares (in thousands) Weighted Average Grant-Date Fair Value Per Share Non-vested awards, January 1, 2018 1,165 $ 23.93 Granted 571 26.29 Vested (474 ) 23.50 Cancelled (95 ) 25.15 Non-vested awards, September 30, 2018 1,167 25.16 As of September 30, 2018 , we estimate $20.4 million of unrecognized compensation cost related to unvested restricted stock, restricted stock units and performance units issued to our employees to be recognized over the weighted-average vesting period of 1.6 years . |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 14 - Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed using the two-class method, which is an earnings allocation formula that determines net income (loss) per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under the two-class method, basic net income (loss) per common share is determined by dividing net income (loss) after deducting amounts allocated to participating securities, by the weighted average number of common shares outstanding for the period. Participating securities include unvested restricted stock and restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents, whether paid or unpaid. During periods of net loss from continuing operations, no effect is given to participating securities because they do not have a contractual obligation to participate in our losses. Diluted net income (loss) per common share is computed using the weighted average number of common shares outstanding adjusted for the incremental common stock equivalents attributed to outstanding options to purchase common stock and non-participating restricted stock units, unless their effect would be anti-dilutive. The following table presents a reconciliation of basic and diluted net income per common share for the three and nine months ended September 30, 2018 and 2017 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Numerator for basic and diluted net income per common share: Income (loss) from continuing operations $ 3,196 $ 1,214 $ 5,665 $ (7,939 ) Income from discontinued operations, net of tax 2,173 2,139 5,116 35,157 Less: Net income attributable to participating securities (140 ) (92 ) (284 ) — Net income — used in basic and diluted net income per common share $ 5,229 $ 3,261 $ 10,497 $ 27,218 Weighted average common shares outstanding including participating securities 36,430 36,036 36,361 35,969 Less: Weighted average participating securities outstanding (950 ) (990 ) (959 ) (1,032 ) Weighted average common shares outstanding — used in basic net income per common share 35,480 35,046 35,402 34,937 Net dilutive potential common shares issuable: On exercise of options and vesting of restricted stock units 64 74 67 * Weighted average common shares outstanding — used in diluted net income per common share 35,544 35,120 35,469 34,937 Net income per common share: Basic $ 0.15 $ 0.09 $ 0.30 $ 0.78 Diluted $ 0.15 $ 0.09 $ 0.30 $ 0.78 * Excluded from diluted net income per common share as their inclusion would have been anti-dilutive. The following table shows the potential shares of common stock issuable that were excluded from computing diluted net income per common share as their inclusion would have been anti-dilutive for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net dilutive potential common shares issuable: On exercise of options where exercise price is greater than average market value 35 39 35 45 On exercise of options and vesting of restricted stock units — — — 82 Net dilutive potential common shares issuable 35 39 35 127 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15 - Commitments and Contingencies Contingencies Pursuant to the separation and distribution agreement, EESLP contributed to a subsidiary of Archrock the right to receive payments based on a notional amount corresponding to payments received by our subsidiaries from PDVSA Gas in respect of the sale of our and our joint ventures’ previously nationalized assets promptly after such amounts are collected by our subsidiaries. Our balance sheets do not reflect this contingent liability to Archrock or the amount payable to us by PDVSA Gas as a receivable. Pursuant to the separation and distribution agreement, we transferred cash of $19.7 million to Archrock during the nine months ended September 30, 2017 . The transfer of cash was recognized as a reduction to additional paid-in capital in our financial statements. As of September 30, 2018 , the remaining principal amounts due to us from PDVSA Gas in respect of the sale of our previously nationalized assets and our joint ventures’ previously nationalized assets were approximately $17 million and $4 million , respectively. In subsequent periods, the recognition of a liability, if applicable, resulting from this contingency to Archrock is expected to impact equity, and as such, is not expected to have an impact on our statements of operations. In addition to U.S. federal, state and local and foreign income taxes, we are subject to a number of taxes that are not income-based. As many of these taxes are subject to audit by the taxing authorities, it is possible that an audit could result in additional taxes due. We accrue for such additional taxes when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the liability. As of September 30, 2018 and December 31, 2017 , we had accrued $3.2 million and $2.8 million , respectively, for the outcomes of non-income-based tax audits. We do not expect that the ultimate resolutions of these audits will result in a material variance from the amounts accrued. We do not accrue for unasserted claims for tax audits unless we believe the assertion of a claim is probable, it is probable that it will be determined that the claim is owed and we can reasonably estimate the claim or range of the claim. We do not have any unasserted claims from non-income based tax audits that we have determined are probable of assertion. We also believe the likelihood is remote that the impact of potential unasserted claims from non-income-based tax audits could be material to our financial position, but it is possible that the resolution of future audits could be material to our results of operations or cash flows for the period in which the resolution occurs. Our business can be hazardous, involving unforeseen circumstances such as uncontrollable flows of natural gas or well fluids and fires or explosions. As is customary in our industry, we review our safety equipment and procedures and carry insurance against some, but not all, risks of our business. Our insurance coverage includes property damage, general liability, commercial automobile liability and other coverage we believe is appropriate. We believe that our insurance coverage is customary for the industry and adequate for our business; however, losses and liabilities not covered by insurance would increase our costs. Additionally, we are substantially self-insured for workers’ compensation and employee group health claims in view of the relatively high per-incident deductibles we absorb under our insurance arrangements for these risks. Losses up to the deductible amounts are estimated and accrued based upon known facts, historical trends and industry averages. Litigation and Claims In the ordinary course of business, we are involved in various pending or threatened legal actions. While management is unable to predict the ultimate outcome of these actions, it believes that any ultimate liability arising from any of these actions will not have a material adverse effect on our financial position, results of operations or cash flows. However, because of the inherent uncertainty of litigation and arbitration proceedings, we cannot provide assurance that the resolution of any particular claim or proceeding to which we are a party will not have a material adverse effect on our financial position, results of operations or cash flows. Contemporaneously with filing the Form 8-K on April 26, 2016, we self-reported the errors and possible irregularities at Belleli EPC to the SEC. Since then, we have been cooperating with the SEC in its investigation of this matter. The SEC’s investigation related to the circumstances giving rise to the restatement is continuing, and we are presently unable to predict the duration, scope or results or whether the SEC will commence any legal action. Indemnifications In conjunction with, and effective as of the completion of, the Spin-off, we entered into the separation and distribution agreement with Archrock, which governs, among other things, the treatment between Archrock and us relating to certain aspects of indemnification, insurance, confidentiality and cooperation. Generally, the separation and distribution agreement provides for cross-indemnities principally designed to place financial responsibility for the obligations and liabilities of our business with us and financial responsibility for the obligations and liabilities of Archrock’s business with Archrock. Pursuant to the agreement, we and Archrock will generally release the other party from all claims arising prior to the Spin-off that relate to the other party’s business, subject to certain exceptions. Additionally, in conjunction with, and effective as of the completion of, the Spin-off, we entered into the tax matters agreement with Archrock. Under the tax matters agreement and subject to certain exceptions, we are generally liable for, and indemnify Archrock against, taxes attributable to our business, and Archrock is generally liable for, and indemnify us against, all taxes attributable to its business. We are generally liable for, and indemnify Archrock against, 50% of certain taxes that are not clearly attributable to our business or Archrock’s business. Any payment made by us to Archrock, or by Archrock to us, is treated by all parties for tax purposes as a nontaxable distribution or capital contribution, respectively, made immediately prior to the Spin-off. |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Reportable Segments | Note 16 - Reportable Segments Our chief operating decision maker manages business operations, evaluates performance and allocates resources based upon the type of product or service provided. We have three reportable segments: contract operations, aftermarket services and product sales. In our contract operations segment, we own and operate natural gas compression equipment and crude oil and natural gas production and processing equipment on behalf of our customers outside of the U.S. In our aftermarket services segment, we sell parts and components and provide operations, maintenance, overhaul, upgrade, commissioning and reconfiguration services to customers who own their own compression, production, processing, treating and related equipment. In our product sales segment, we design, engineer, manufacture, install and sell natural gas compression packages as well as equipment used in the treating and processing of crude oil and natural gas to our customers throughout the world and for use in our contract operations business line. We evaluate the performance of our segments based on gross margin for each segment. Revenue only includes sales to external customers. We do not include intersegment sales when we evaluate our segments’ performance. The following table presents revenue and other financial information by reportable segment for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Contract Operations Aftermarket Services Product Sales Reportable September 30, 2018: Revenue $ 84,828 $ 29,993 $ 220,028 $ 334,849 Gross margin (1) 57,060 7,855 31,822 96,737 September 30, 2017: Revenue $ 92,561 $ 29,799 $ 192,119 $ 314,479 Gross margin (1) 58,921 7,896 20,500 87,317 Nine Months Ended Contract Operations Aftermarket Services Product Sales Reportable September 30, 2018: Revenue $ 272,808 $ 88,631 $ 667,264 $ 1,028,703 Gross margin (1) 177,283 23,890 86,960 288,133 September 30, 2017: Revenue $ 279,947 $ 76,567 $ 521,091 $ 877,605 Gross margin (1) 180,818 20,774 51,910 253,502 ________________________________ (1) Gross margin is defined as revenue less cost of sales (excluding depreciation and amortization expense). The following table reconciles income before income taxes to total gross margin (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Income before income taxes $ 11,150 $ 9,577 $ 28,733 $ 11,674 Selling, general and administrative 45,103 42,880 133,727 131,855 Depreciation and amortization 31,108 27,010 92,321 78,110 Long-lived asset impairment 2,054 — 3,858 — Restatement related charges (recoveries), net (342 ) 1,997 (318 ) 3,011 Restructuring and other charges 264 417 1,686 3,035 Interest expense 7,685 7,860 21,787 27,329 Other (income) expense, net (285 ) (2,424 ) 6,339 (1,512 ) Total gross margin $ 96,737 $ 87,317 $ 288,133 $ 253,502 |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Guarantor Financial Information | Note 17 - Supplemental Guarantor Financial Information In April 2017, our 100% owned subsidiaries EESLP and EES Finance Corp. (together, the “Issuers”) issued the 2017 Notes, which consists of $375.0 million aggregate principal amount senior unsecured notes. In April 2018, the 2017 Notes were exchanged for notes with substantially identical terms and registered under the Securities Act of 1933, as amended. The 2017 Notes are fully and unconditionally guaranteed on a joint and several senior unsecured basis by Exterran Corporation (the “Parent Guarantor” or “Parent”). All other consolidated subsidiaries of Exterran are collectively referred to as the “Non-Guarantor Subsidiaries.” As a result of the Parent’s guarantee, we are presenting the following condensed consolidating financial information pursuant to Rule 3-10 of Regulation S-X, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered . These schedules are presented using the equity method of accounting for all periods presented. For purposes of the following condensed consolidating financial information, the Parent Guarantor’s investments in its subsidiaries, the Issuers’ investments in the Non-Guarantors Subsidiaries and the Non-Guarantor Subsidiaries’ investments in the Issuers are accounted for under the equity method of accounting. Under this method, investments in subsidiaries are recorded at cost and adjusted for our share in the subsidiaries’ cumulative results of operations, capital contributions and distributions and other changes in equity. Elimination entries relate primarily to the elimination of investments in subsidiaries and associated intercompany balances and transactions. Condensed Consolidating Balance Sheet September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation ASSETS Cash and cash equivalents $ 6 $ 6,756 $ 30,204 $ — $ 36,966 Restricted cash — — 546 — 546 Accounts receivable, net — 88,840 154,601 — 243,441 Inventory, net — 79,158 62,688 — 141,846 Contract assets — 45,095 26,746 — 71,841 Intercompany receivables — 158,454 348,837 (507,291 ) — Other current assets — 9,139 31,343 — 40,482 Current assets associated with discontinued operations — — 12,925 — 12,925 Total current assets 6 387,442 667,890 (507,291 ) 548,047 Property, plant and equipment, net — 285,530 575,467 — 860,997 Investment in affiliates 554,384 865,011 (310,627 ) (1,108,768 ) — Deferred income taxes — 5,575 8,156 — 13,731 Intangible and other assets, net — 29,046 58,369 — 87,415 Long-term assets associated with discontinued operations — — 2,302 — 2,302 Total assets $ 554,390 $ 1,572,604 $ 1,001,557 $ (1,616,059 ) $ 1,512,492 LIABILITIES AND EQUITY Accounts payable, trade $ — $ 131,794 $ 34,564 $ — $ 166,358 Accrued liabilities — 49,621 78,233 — 127,854 Contract liabilities — 48,253 40,934 — 89,187 Intercompany payables 1,284 348,837 157,170 (507,291 ) — Current liabilities associated with discontinued operations — — 15,978 — 15,978 Total current liabilities 1,284 578,505 326,879 (507,291 ) 399,377 Long-term debt — 418,668 — — 418,668 Deferred income taxes — — 6,356 — 6,356 Long-term contract liabilities — 11,047 78,689 — 89,736 Other long-term liabilities — 10,000 28,948 — 38,948 Long-term liabilities associated with discontinued operations — — 6,301 — 6,301 Total liabilities 1,284 1,018,220 447,173 (507,291 ) 959,386 Total Equity 553,106 554,384 554,384 (1,108,768 ) 553,106 Total liabilities and equity $ 554,390 $ 1,572,604 $ 1,001,557 $ (1,616,059 ) $ 1,512,492 Condensed Consolidating Balance Sheet December 31, 2017 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation ASSETS Cash and cash equivalents $ 397 $ 24,195 $ 24,553 $ — $ 49,145 Restricted cash — — 546 — 546 Accounts receivable, net — 123,362 142,690 — 266,052 Inventory, net — 50,528 57,381 — 107,909 Costs and estimated earnings in excess of billings on uncompleted contracts — 33,439 7,256 — 40,695 Intercompany receivables — 158,296 359,766 (518,062 ) — Other current assets — 6,095 32,612 — 38,707 Current assets held for sale — 15,761 — — 15,761 Current assets associated with discontinued operations — — 23,751 — 23,751 Total current assets 397 411,676 648,555 (518,062 ) 542,566 Property, plant and equipment, net — 288,670 533,609 — 822,279 Investment in affiliates 555,735 831,097 (275,362 ) (1,111,470 ) — Deferred income taxes — 5,452 5,098 — 10,550 Intangible and other assets, net — 12,218 64,762 — 76,980 Long-term assets held for sale — 4,732 — — 4,732 Long-term assets associated with discontinued operations — — 3,700 — 3,700 Total assets $ 556,132 $ 1,553,845 $ 980,362 $ (1,629,532 ) $ 1,460,807 LIABILITIES AND EQUITY Accounts payable, trade $ — $ 115,273 $ 33,471 $ — $ 148,744 Accrued liabilities 57 54,724 59,555 — 114,336 Deferred revenue — 2,162 21,740 — 23,902 Billings on uncompleted contracts in excess of costs and estimated earnings — 89,002 563 — 89,565 Intercompany payables 1,289 359,766 157,007 (518,062 ) — Current liabilities associated with discontinued operations — — 31,971 — 31,971 Total current liabilities 1,346 620,927 304,307 (518,062 ) 408,518 Long-term debt — 368,472 — — 368,472 Deferred income taxes — — 9,746 — 9,746 Long-term deferred revenue — 629 91,856 — 92,485 Other long-term liabilities — 8,082 12,190 — 20,272 Long-term liabilities associated with discontinued operations — — 6,528 — 6,528 Total liabilities 1,346 998,110 424,627 (518,062 ) 906,021 Total Equity 554,786 555,735 555,735 (1,111,470 ) 554,786 Total liabilities and equity $ 556,132 $ 1,553,845 $ 980,362 $ (1,629,532 ) $ 1,460,807 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 223,429 $ 129,517 $ (18,097 ) $ 334,849 Cost of sales (excluding depreciation and amortization expense) — 183,640 72,569 (18,097 ) 238,112 Selling, general and administrative 285 23,035 21,783 — 45,103 Depreciation and amortization — 9,015 22,093 — 31,108 Long-lived asset impairment — 1,277 777 — 2,054 Restatement related recoveries, net — (342 ) — — (342 ) Restructuring and other charges — — 264 — 264 Interest expense — 8,941 (1,256 ) — 7,685 Intercompany charges, net — 1,880 (1,880 ) — — Equity in (income) loss of affiliates (5,654 ) (4,186 ) 15,774 (5,934 ) — Other (income) expense, net — (477 ) 192 — (285 ) Income (loss) before income taxes 5,369 646 (799 ) 5,934 11,150 Provision for income taxes — 12,234 12,962 (17,242 ) 7,954 Income (loss) from continuing operations 5,369 (11,588 ) (13,761 ) 23,176 3,196 Income from discontinued operations, net of tax — — 2,173 — 2,173 Net income (loss) 5,369 (11,588 ) (11,588 ) 23,176 5,369 Other comprehensive loss (2,673 ) (2,673 ) (2,673 ) 5,346 (2,673 ) Comprehensive income (loss) attributable to Exterran stockholders $ 2,696 $ (14,261 ) $ (14,261 ) $ 28,522 $ 2,696 Condensed Consolidating Statement of Operations and Comprehensive Income Three Months Ended September 30, 2017 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 228,424 $ 125,020 $ (38,965 ) $ 314,479 Cost of sales (excluding depreciation and amortization expense) — 195,828 70,299 (38,965 ) 227,162 Selling, general and administrative 310 20,297 22,273 — 42,880 Depreciation and amortization — 8,872 18,138 — 27,010 Restatement related charges, net — 1,861 136 — 1,997 Restructuring and other charges — 310 107 — 417 Interest expense — 7,797 63 — 7,860 Intercompany charges, net — 1,479 (1,479 ) — — Equity in (income) loss of affiliates (3,666 ) (16,463 ) 8,678 11,451 — Other (income) expense, net 3 (321 ) (2,106 ) — (2,424 ) Income before income taxes 3,353 8,764 8,911 (11,451 ) 9,577 Provision for income taxes — 979 3,264 4,120 8,363 Income from continuing operations 3,353 7,785 5,647 (15,571 ) 1,214 Income from discontinued operations, net of tax — — 2,139 — 2,139 Net income 3,353 7,785 7,786 (15,571 ) 3,353 Other comprehensive income 1,310 1,310 1,310 (2,620 ) 1,310 Comprehensive income attributable to Exterran stockholders $ 4,663 $ 9,095 $ 9,096 $ (18,191 ) $ 4,663 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine Months Ended September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 722,078 $ 369,209 $ (62,584 ) $ 1,028,703 Cost of sales (excluding depreciation and amortization expense) — 600,393 202,761 (62,584 ) 740,570 Selling, general and administrative 920 65,152 67,655 — 133,727 Depreciation and amortization — 27,030 65,291 — 92,321 Long-lived asset impairment — 3,081 777 — 3,858 Restatement related recoveries, net — (318 ) — — (318 ) Restructuring and other charges — — 1,686 — 1,686 Interest expense — 21,438 349 — 21,787 Intercompany charges, net — 4,953 (4,953 ) — — Equity in (income) loss of affiliates (11,548 ) (13,817 ) 5,932 19,433 — Other (income) expense, net (153 ) (1,846 ) 8,338 — 6,339 Income before income taxes 10,781 16,012 21,373 (19,433 ) 28,733 Provision for income taxes — 8,127 18,604 (3,663 ) 23,068 Income from continuing operations 10,781 7,885 2,769 (15,770 ) 5,665 Income from discontinued operations, net of tax — — 5,116 — 5,116 Net income 10,781 7,885 7,885 (15,770 ) 10,781 Other comprehensive loss (10,039 ) (10,039 ) (10,039 ) 20,078 (10,039 ) Comprehensive income (loss) attributable to Exterran stockholders $ 742 $ (2,154 ) $ (2,154 ) $ 4,308 $ 742 Condensed Consolidating Statement of Operations and Comprehensive Income Nine Months Ended September 30, 2017 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 606,536 $ 366,685 $ (95,616 ) $ 877,605 Cost of sales (excluding depreciation and amortization expense) — 516,934 202,785 (95,616 ) 624,103 Selling, general and administrative 2,011 63,690 66,154 — 131,855 Depreciation and amortization — 25,612 52,498 — 78,110 Restatement related charges, net — 2,890 121 — 3,011 Restructuring and other charges — 1,989 1,046 — 3,035 Interest expense — 25,069 2,260 — 27,329 Intercompany charges, net — 5,132 (5,132 ) — — Equity in (income) loss of affiliates (29,232 ) (77,932 ) 36,591 70,573 — Other (income) expense, net 3 (2,328 ) 813 — (1,512 ) Income before income taxes 27,218 45,480 9,549 (70,573 ) 11,674 Provision for income taxes — 4,140 3,364 12,109 19,613 Income (loss) from continuing operations 27,218 41,340 6,185 (82,682 ) (7,939 ) Income from discontinued operations, net of tax — — 35,157 — 35,157 Net income 27,218 41,340 41,342 (82,682 ) 27,218 Other comprehensive income 284 284 284 (568 ) 284 Comprehensive income attributable to Exterran stockholders $ 27,502 $ 41,624 $ 41,626 $ (83,250 ) $ 27,502 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Cash flows from operating activities: Net cash provided by (used in) continuing operations $ (386 ) $ (7,525 ) $ 96,704 $ — $ 88,793 Net cash provided by discontinued operations — — 1,144 — 1,144 Net cash provided by (used in) operating activities (386 ) (7,525 ) 97,848 — 89,937 Cash flows from investing activities: Capital expenditures — (54,713 ) (97,513 ) — (152,226 ) Proceeds from sale of property, plant and equipment — 51 2,379 — 2,430 Proceeds from sale of business — 5,000 — — 5,000 Intercompany transfers — 5 6,562 (6,567 ) — Net cash used in continuing operations — (49,657 ) (88,572 ) (6,567 ) (144,796 ) Net cash provided by discontinued operations — — 66 — 66 Net cash used in investing activities — (49,657 ) (88,506 ) (6,567 ) (144,730 ) Cash flows from financing activities: Proceeds from borrowings of debt — 415,000 — — 415,000 Repayments of debt — (365,371 ) — — (365,371 ) Intercompany transfers (5 ) (6,562 ) — 6,567 — Payments for debt issuance costs — (92 ) — — (92 ) Proceeds from stock options exercised — 548 — — 548 Purchases of treasury stock — (3,780 ) — — (3,780 ) Net cash provided by (used in) financing activities (5 ) 39,743 — 6,567 46,305 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (3,691 ) — (3,691 ) Net increase (decrease) in cash, cash equivalents and restricted cash (391 ) (17,439 ) 5,651 — (12,179 ) Cash, cash equivalents and restricted cash at beginning of period 397 24,195 25,099 — 49,691 Cash, cash equivalents and restricted cash at end of period $ 6 $ 6,756 $ 30,750 $ — $ 37,512 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2017 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Cash flows from operating activities: Net cash provided by (used in) continuing operations $ (391 ) $ 50,993 $ 70,632 $ — $ 121,234 Net cash used in discontinued operations — — (1,937 ) — (1,937 ) Net cash provided by (used in) operating activities (391 ) 50,993 68,695 — 119,297 Cash flows from investing activities: Capital expenditures — (31,582 ) (47,540 ) — (79,122 ) Proceeds from sale of property, plant and equipment — 1,988 4,567 — 6,555 Proceeds from sale of business — 894 — — 894 Intercompany transfers — (684 ) (43,042 ) 43,726 — Net cash used in continuing operations — (29,384 ) (86,015 ) 43,726 (71,673 ) Net cash provided by discontinued operations — — 19,354 — 19,354 Net cash used in investing activities — (29,384 ) (66,661 ) 43,726 (52,319 ) Cash flows from financing activities: Proceeds from borrowings of debt — 488,000 — — 488,000 Repayments of debt — (463,940 ) — — (463,940 ) Intercompany transfers 684 43,042 — (43,726 ) — Cash transfer to Archrock, Inc. — (44,720 ) — — (44,720 ) Payments for debt issuance costs — (7,911 ) — — (7,911 ) Proceeds from stock options exercised — 684 — — 684 Purchases of treasury stock — (3,319 ) — — (3,319 ) Net cash provided by (used in) financing activities 684 11,836 — (43,726 ) (31,206 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (373 ) — (373 ) Net increase in cash, cash equivalents and restricted cash 293 33,445 1,661 — 35,399 Cash, cash equivalents and restricted cash at beginning of period 131 16,645 19,573 — 36,349 Cash, cash equivalents and restricted cash at end of period $ 424 $ 50,090 $ 21,234 $ — $ 71,748 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 18 - Subsequent Event As discussed in Note 7 , in October 2018, we and EESLP entered into the Amended Credit Agreement, which among other things, increased the borrowing capacity under our revolving credit facility from $680.0 million to $700.0 million . The Amended Credit Agreement also extended the maturity date of the revolving credit facility to October 9, 2023. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Exterran Corporation included herein have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP are not required in these interim financial statements and have been condensed or omitted. Management believes that the information furnished includes all adjustments of a normal recurring nature that are necessary to fairly present our consolidated financial position, results of operations and cash flows for the periods indicated. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated and combined financial statements presented in our Annual Report on Form 10-K for the year ended December 31, 2017 . That report contains a comprehensive summary of our accounting policies. The interim results reported herein are not necessarily indicative of results for a full year. Certain reclassifications resulting from the adoption of ASU 2016-18, Restricted Cash have been made to the statement of cash flows for the prior year period to conform to the current year presentation. We refer to the condensed consolidated financial statements collectively as “financial statements,” and individually as “balance sheets,” “statements of operations,” “statements of comprehensive income,” “statements of stockholders’ equity” and “statements of cash flows” herein. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements We consider the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our financial statements. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 (“Topic 606”) outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes the most current revenue recognition guidance, including industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled for those goods or services. The update also requires disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. On January 1, 2018, we adopted this update using the modified retrospective approach to all contracts that were not completed as of January 1, 2018. As a result of this adoption, we recorded a net increase to the accumulated deficit of $10.0 million as of January 1, 2018 and an increase of $2.7 million in revenue for the nine months ended September 30, 2018 . The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. See Note 2 for the required disclosures related to the impact of adopting this standard and a discussion of our updated policies related to revenue recognition. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to the balance sheet as of January 1, 2018 (in thousands): Impact of Changes in Accounting Policies December 31, 2017 Adjustments January 1, 2018 ASSETS Current assets: Cash and cash equivalents $ 49,145 $ — $ 49,145 Restricted cash 546 — 546 Accounts receivable, net of allowance 266,052 (4,801 ) 261,251 Inventory, net 107,909 (124 ) 107,785 Costs and estimated earnings in excess of billings on uncompleted contracts 40,695 (40,695 ) — Contract assets — 50,824 50,824 Other current assets 38,707 (179 ) 38,528 Current assets held for sale 15,761 — 15,761 Current assets associated with discontinued operations 23,751 — 23,751 Total current assets 542,566 5,025 547,591 Property, plant and equipment, net 822,279 (2,029 ) 820,250 Deferred income taxes 10,550 404 10,954 Intangible and other assets, net 76,980 18,273 95,253 Long-term assets held for sale 4,732 — 4,732 Long-term assets associated with discontinued operations 3,700 — 3,700 Total assets $ 1,460,807 $ 21,673 $ 1,482,480 LIABILITIES AND STOCKHOLDERS ’ EQUITY Current liabilities: Accounts payable, trade $ 148,744 $ — $ 148,744 Accrued liabilities 114,336 16,044 130,380 Deferred revenue 23,902 (23,902 ) — Billings on uncompleted contracts in excess of costs and estimated earnings 89,565 (89,565 ) — Contract liabilities — 112,244 112,244 Current liabilities associated with discontinued operations 31,971 — 31,971 Total current liabilities 408,518 14,821 423,339 Long-term debt 368,472 — 368,472 Deferred income taxes 9,746 (1,908 ) 7,838 Long-term deferred revenue 92,485 (92,485 ) — Long-term contract liabilities — 89,004 89,004 Other long-term liabilities 20,272 22,262 42,534 Long-term liabilities associated with discontinued operations 6,528 — 6,528 Total liabilities 906,021 31,694 937,715 Stockholders’ equity: Preferred stock — — — Common stock 362 — 362 Additional paid-in capital 739,164 — 739,164 Accumulated deficit (223,510 ) (10,021 ) (233,531 ) Treasury stock (6,937 ) — (6,937 ) Accumulated other comprehensive income 45,707 — 45,707 Total stockholders’ equity 554,786 (10,021 ) 544,765 Total liabilities and stockholders’ equity $ 1,460,807 $ 21,673 $ 1,482,480 In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) . The update addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. On January 1, 2018, we adopted this update. The adoption of this update did not have an impact on our statements of cash flows. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . The update requires a reporting entity to recognize the tax expense from intra-entity asset transfers of assets other than inventory in the selling entity’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buying entity’s jurisdiction would also be recognized at the time of the transfer. On January 1, 2018, we adopted this update using a modified retrospective approach. The impact of this adoption was immaterial to our financial statements. In November 2016, the FASB issued ASU 2016-18, Restricted Cash . The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. On January 1, 2018, we adopted this update retrospectively. As a result of this adoption, $0.5 million of restricted cash has been included in the cash and cash equivalent balances in the statement of cash flows for the prior year period. At December 31, 2017, the $49.7 million of cash, cash equivalents and restricted cash on our statement of cash flows was composed of $49.1 million of cash and cash equivalents and $0.5 million of restricted cash. At September 30, 2018 , the $37.5 million of cash, cash equivalents and restricted cash on our statement of cash flows was composed of $37.0 million of cash and cash equivalents and $0.5 million of restricted cash. The impact of this adoption was immaterial to our financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718) . This update provides guidance that clarifies that changes to the terms or conditions of a share-based payment award should be accounted for as modifications. On January 1, 2018, we adopted this update using a prospective approach. The impact of this adoption was immaterial to our financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The update requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statements of operations. The update also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. Lessor accounting will be similar to the current model except for changes made to align with certain changes to the lessee model and the new revenue recognition standard. Existing sale-leaseback guidance will be replaced with a new model applicable to both lessees and lessors. In July 2018, the FASB issued additional updates to provide clarification on the lease standard and to give entities another option for transition and to provide lessors with a practical expedient to reduce the cost and complexity of implementing the new standard. The new transition option allows entities to not apply the new leases standard in the comparative periods they present in their financial statements in the year of adoption. We intend to adopt the new lease guidance on January 1, 2019. As a lessee, we will be required to record long-term lease assets and related liabilities for future payments on our balance sheet. In preparation for our adoption of the new standard, we are analyzing and updating data previously collected to evaluate the impact the adoption will have on our financial statements. Currently, we estimate that, as a lessee, our assets and liabilities will increase by approximately $25 million to $30 million upon adoption of the new lease guidance. Additionally, we are assessing our use of practical expedients and the systems required to capture the increased reporting and disclosure requirements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) . The update changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of allowance for losses. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. Adoption will require a modified retrospective approach beginning with the earliest period presented. We are currently evaluating the potential impact of the update on our financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The update modifies the disclosure requirements on fair value measurements by removing, modifying and adding certain disclosure requirements. This update is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures upon issuance of the guidance and delayed adoption of the additional required disclosures is permitted until the effective date. Adoption will require a prospective or retrospective approach based on the specific amendments. We are currently evaluating the potential impact of the update on our financial statements. |
Description of Business and B_3
Description of Business and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to the balance sheet as of January 1, 2018 (in thousands): Impact of Changes in Accounting Policies December 31, 2017 Adjustments January 1, 2018 ASSETS Current assets: Cash and cash equivalents $ 49,145 $ — $ 49,145 Restricted cash 546 — 546 Accounts receivable, net of allowance 266,052 (4,801 ) 261,251 Inventory, net 107,909 (124 ) 107,785 Costs and estimated earnings in excess of billings on uncompleted contracts 40,695 (40,695 ) — Contract assets — 50,824 50,824 Other current assets 38,707 (179 ) 38,528 Current assets held for sale 15,761 — 15,761 Current assets associated with discontinued operations 23,751 — 23,751 Total current assets 542,566 5,025 547,591 Property, plant and equipment, net 822,279 (2,029 ) 820,250 Deferred income taxes 10,550 404 10,954 Intangible and other assets, net 76,980 18,273 95,253 Long-term assets held for sale 4,732 — 4,732 Long-term assets associated with discontinued operations 3,700 — 3,700 Total assets $ 1,460,807 $ 21,673 $ 1,482,480 LIABILITIES AND STOCKHOLDERS ’ EQUITY Current liabilities: Accounts payable, trade $ 148,744 $ — $ 148,744 Accrued liabilities 114,336 16,044 130,380 Deferred revenue 23,902 (23,902 ) — Billings on uncompleted contracts in excess of costs and estimated earnings 89,565 (89,565 ) — Contract liabilities — 112,244 112,244 Current liabilities associated with discontinued operations 31,971 — 31,971 Total current liabilities 408,518 14,821 423,339 Long-term debt 368,472 — 368,472 Deferred income taxes 9,746 (1,908 ) 7,838 Long-term deferred revenue 92,485 (92,485 ) — Long-term contract liabilities — 89,004 89,004 Other long-term liabilities 20,272 22,262 42,534 Long-term liabilities associated with discontinued operations 6,528 — 6,528 Total liabilities 906,021 31,694 937,715 Stockholders’ equity: Preferred stock — — — Common stock 362 — 362 Additional paid-in capital 739,164 — 739,164 Accumulated deficit (223,510 ) (10,021 ) (233,531 ) Treasury stock (6,937 ) — (6,937 ) Accumulated other comprehensive income 45,707 — 45,707 Total stockholders’ equity 554,786 (10,021 ) 544,765 Total liabilities and stockholders’ equity $ 1,460,807 $ 21,673 $ 1,482,480 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As Reported Adjustments Balances Without Adoption of Topic 606 As Reported Adjustments Balances Without Adoption of Topic 606 Revenues: Contract operations $ 84,828 $ (165 ) $ 84,663 $ 272,808 $ (1,624 ) $ 271,184 Aftermarket services 29,993 1,016 31,009 88,631 (1,063 ) 87,568 Cost of sales (excluding depreciation and amortization expense): Contract operations 27,768 556 28,324 95,525 (545 ) 94,980 Aftermarket services 22,138 613 22,751 64,741 (793 ) 63,948 Selling, general and administrative 45,103 (39 ) 45,064 133,727 6,588 140,315 Depreciation and amortization 31,108 (551 ) 30,557 92,321 (1,919 ) 90,402 Income before income taxes 11,150 272 11,422 28,733 (6,018 ) 22,715 Provision for income taxes 7,954 725 8,679 23,068 (3,869 ) 19,199 Income from continuing operations 3,196 (453 ) 2,743 5,665 (2,149 ) 3,516 Net income 5,369 (453 ) 4,916 10,781 (2,149 ) 8,632 Basic net income per common share $ 0.15 $ (0.02 ) $ 0.13 $ 0.30 $ (0.06 ) $ 0.24 Diluted net income per common share 0.15 (0.02 ) 0.13 0.30 (0.06 ) 0.24 Nine Months Ended September 30, 2018 As Reported Adjustments Balances Without Adoption of Topic 606 Cash flows from operating activities: Net income $ 10,781 $ (2,149 ) $ 8,632 Depreciation and amortization 92,321 (1,919 ) 90,402 Deferred income tax benefit (4,727 ) (3,869 ) (8,596 ) Changes in assets and liabilities: Inventory (51,067 ) (499 ) (51,566 ) Contract assets (16,263 ) 3,186 (13,077 ) Other current assets 5,073 (6,470 ) (1,397 ) Accounts payable and other liabilities 29,116 5,882 34,998 Contract liabilities (11,937 ) 770 (11,167 ) Other 3,511 5,068 8,579 Net cash provided by continuing operations 88,793 — 88,793 The following tables summarize the impacts of the adoption of the new revenue recognition guidance on our balance sheet as of September 30, 2018 and statements of operations and cash flows for the applicable periods during the three and nine months ended September 30, 2018 (in thousands): September 30, 2018 As Reported Adjustments Balances Without Adoption of Topic 606 ASSETS Inventory, net $ 141,846 $ 623 $ 142,469 Contract assets 71,841 (18,069 ) 53,772 Other current assets 40,482 11,450 51,932 Property, plant and equipment, net 860,997 1,942 862,939 Deferred income taxes 13,731 (2,378 ) 11,353 Intangible and other assets, net 87,415 (17,389 ) 70,026 Total assets 1,512,492 (23,821 ) 1,488,671 LIABILITIES AND STOCKHOLDERS ’ EQUITY Accrued liabilities $ 127,854 $ (13,952 ) $ 113,902 Contract liabilities 89,187 1,378 90,565 Deferred income taxes 6,356 (3,846 ) 2,510 Long-term contract liabilities 89,736 3,183 92,919 Other long-term liabilities 38,948 (18,456 ) 20,492 Total liabilities 959,386 (31,693 ) 927,693 Accumulated deficit (222,750 ) 7,872 (214,878 ) Total stockholders’ equity 553,106 7,872 560,978 Total liabilities and stockholders’ equity 1,512,492 (23,821 ) 1,488,671 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present disaggregated revenue by products and services lines and by geographical regions for the three and nine months ended September 30, 2018 (in thousands): Revenue by Products and Services Three Months Ended September 30, 2018 Nine Months Ended Contract Operations Segment: Contract operations services (1) $ 84,828 $ 272,808 Aftermarket Services Segment: Operation and maintenance services (1) $ 14,215 $ 42,812 Part sales (2) 11,301 31,511 Other services (1) 4,477 14,308 Total aftermarket services $ 29,993 $ 88,631 Product Sales Segment: Compression equipment (1) $ 106,140 $ 367,135 Processing and treating equipment (1) 104,739 270,261 Production equipment (2) 1,084 15,864 Other product sales (1) (2) 8,065 14,004 Total product sales revenues $ 220,028 $ 667,264 Total revenues $ 334,849 $ 1,028,703 (1) Revenue recognized over time. (2) Revenue recognized at a point in time. Revenue by Geographical Regions Three Months Ended September 30, 2018 Nine Months Ended North America $ 215,015 $ 669,220 Latin America 64,960 205,549 Middle East and Africa 41,653 99,131 Asia Pacific 13,221 54,803 Total revenues $ 334,849 $ 1,028,703 |
Contract with Customer, Asset and Liability | The following table provides information about accounts receivables, net, contract assets and contract liabilities from contracts with customers (in thousands): As of As of January 1, 2018 Accounts receivables, net $ 243,441 $ 261,251 Contract assets and contract liabilities: Current contract assets 71,841 50,824 Long-term contract assets 7,226 11,835 Current contract liabilities 89,187 112,244 Long-term contract liabilities 89,736 89,004 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made to the balance sheet as of January 1, 2018 (in thousands): Impact of Changes in Accounting Policies December 31, 2017 Adjustments January 1, 2018 ASSETS Current assets: Cash and cash equivalents $ 49,145 $ — $ 49,145 Restricted cash 546 — 546 Accounts receivable, net of allowance 266,052 (4,801 ) 261,251 Inventory, net 107,909 (124 ) 107,785 Costs and estimated earnings in excess of billings on uncompleted contracts 40,695 (40,695 ) — Contract assets — 50,824 50,824 Other current assets 38,707 (179 ) 38,528 Current assets held for sale 15,761 — 15,761 Current assets associated with discontinued operations 23,751 — 23,751 Total current assets 542,566 5,025 547,591 Property, plant and equipment, net 822,279 (2,029 ) 820,250 Deferred income taxes 10,550 404 10,954 Intangible and other assets, net 76,980 18,273 95,253 Long-term assets held for sale 4,732 — 4,732 Long-term assets associated with discontinued operations 3,700 — 3,700 Total assets $ 1,460,807 $ 21,673 $ 1,482,480 LIABILITIES AND STOCKHOLDERS ’ EQUITY Current liabilities: Accounts payable, trade $ 148,744 $ — $ 148,744 Accrued liabilities 114,336 16,044 130,380 Deferred revenue 23,902 (23,902 ) — Billings on uncompleted contracts in excess of costs and estimated earnings 89,565 (89,565 ) — Contract liabilities — 112,244 112,244 Current liabilities associated with discontinued operations 31,971 — 31,971 Total current liabilities 408,518 14,821 423,339 Long-term debt 368,472 — 368,472 Deferred income taxes 9,746 (1,908 ) 7,838 Long-term deferred revenue 92,485 (92,485 ) — Long-term contract liabilities — 89,004 89,004 Other long-term liabilities 20,272 22,262 42,534 Long-term liabilities associated with discontinued operations 6,528 — 6,528 Total liabilities 906,021 31,694 937,715 Stockholders’ equity: Preferred stock — — — Common stock 362 — 362 Additional paid-in capital 739,164 — 739,164 Accumulated deficit (223,510 ) (10,021 ) (233,531 ) Treasury stock (6,937 ) — (6,937 ) Accumulated other comprehensive income 45,707 — 45,707 Total stockholders’ equity 554,786 (10,021 ) 544,765 Total liabilities and stockholders’ equity $ 1,460,807 $ 21,673 $ 1,482,480 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 As Reported Adjustments Balances Without Adoption of Topic 606 As Reported Adjustments Balances Without Adoption of Topic 606 Revenues: Contract operations $ 84,828 $ (165 ) $ 84,663 $ 272,808 $ (1,624 ) $ 271,184 Aftermarket services 29,993 1,016 31,009 88,631 (1,063 ) 87,568 Cost of sales (excluding depreciation and amortization expense): Contract operations 27,768 556 28,324 95,525 (545 ) 94,980 Aftermarket services 22,138 613 22,751 64,741 (793 ) 63,948 Selling, general and administrative 45,103 (39 ) 45,064 133,727 6,588 140,315 Depreciation and amortization 31,108 (551 ) 30,557 92,321 (1,919 ) 90,402 Income before income taxes 11,150 272 11,422 28,733 (6,018 ) 22,715 Provision for income taxes 7,954 725 8,679 23,068 (3,869 ) 19,199 Income from continuing operations 3,196 (453 ) 2,743 5,665 (2,149 ) 3,516 Net income 5,369 (453 ) 4,916 10,781 (2,149 ) 8,632 Basic net income per common share $ 0.15 $ (0.02 ) $ 0.13 $ 0.30 $ (0.06 ) $ 0.24 Diluted net income per common share 0.15 (0.02 ) 0.13 0.30 (0.06 ) 0.24 Nine Months Ended September 30, 2018 As Reported Adjustments Balances Without Adoption of Topic 606 Cash flows from operating activities: Net income $ 10,781 $ (2,149 ) $ 8,632 Depreciation and amortization 92,321 (1,919 ) 90,402 Deferred income tax benefit (4,727 ) (3,869 ) (8,596 ) Changes in assets and liabilities: Inventory (51,067 ) (499 ) (51,566 ) Contract assets (16,263 ) 3,186 (13,077 ) Other current assets 5,073 (6,470 ) (1,397 ) Accounts payable and other liabilities 29,116 5,882 34,998 Contract liabilities (11,937 ) 770 (11,167 ) Other 3,511 5,068 8,579 Net cash provided by continuing operations 88,793 — 88,793 The following tables summarize the impacts of the adoption of the new revenue recognition guidance on our balance sheet as of September 30, 2018 and statements of operations and cash flows for the applicable periods during the three and nine months ended September 30, 2018 (in thousands): September 30, 2018 As Reported Adjustments Balances Without Adoption of Topic 606 ASSETS Inventory, net $ 141,846 $ 623 $ 142,469 Contract assets 71,841 (18,069 ) 53,772 Other current assets 40,482 11,450 51,932 Property, plant and equipment, net 860,997 1,942 862,939 Deferred income taxes 13,731 (2,378 ) 11,353 Intangible and other assets, net 87,415 (17,389 ) 70,026 Total assets 1,512,492 (23,821 ) 1,488,671 LIABILITIES AND STOCKHOLDERS ’ EQUITY Accrued liabilities $ 127,854 $ (13,952 ) $ 113,902 Contract liabilities 89,187 1,378 90,565 Deferred income taxes 6,356 (3,846 ) 2,510 Long-term contract liabilities 89,736 3,183 92,919 Other long-term liabilities 38,948 (18,456 ) 20,492 Total liabilities 959,386 (31,693 ) 927,693 Accumulated deficit (222,750 ) 7,872 (214,878 ) Total stockholders’ equity 553,106 7,872 560,978 Total liabilities and stockholders’ equity 1,512,492 (23,821 ) 1,488,671 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Operating Results and Balance Sheet Data for Discontinued Operations and Disposals | The following table summarizes the operating results of discontinued operations (in thousands): Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Venezuela Belleli EPC Total Venezuela Belleli EPC Total Revenue $ — $ 7,654 $ 7,654 $ — $ 12,616 $ 12,616 Cost of sales (excluding depreciation and amortization expense) — 3,587 3,587 — 9,116 9,116 Selling, general and administrative 35 742 777 29 1,317 1,346 Depreciation and amortization — — — — 1,304 1,304 Other (income) expense, net — 537 537 — (72 ) (72 ) Provision for (benefit from) income taxes — 580 580 — (1,217 ) (1,217 ) Income (loss) from discontinued operations, net of tax $ (35 ) $ 2,208 $ 2,173 $ (29 ) $ 2,168 $ 2,139 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Venezuela Belleli EPC Total Venezuela Belleli EPC Total Revenue $ — $ 15,536 $ 15,536 $ — $ 60,775 $ 60,775 Cost of sales (excluding depreciation and amortization expense) — 8,798 8,798 — 35,179 35,179 Selling, general and administrative 96 929 1,025 94 3,823 3,917 Depreciation and amortization — 480 480 — 5,531 5,531 Recovery attributable to expropriation — — — (16,514 ) — (16,514 ) Restructuring and other charges — — — — (439 ) (439 ) Other (income) expense, net 1 (553 ) (552 ) (3,157 ) 383 (2,774 ) Provision for income taxes — 669 669 — 718 718 Income (loss) from discontinued operations, net of tax $ (97 ) $ 5,213 $ 5,116 $ 19,577 $ 15,580 $ 35,157 The following table summarizes the balance sheet data for discontinued operations (in thousands): September 30, 2018 December 31, 2017 Venezuela Belleli EPC Total Venezuela Belleli EPC Total Cash $ 1 $ — $ 1 $ 3 $ — $ 3 Accounts receivable — 10,991 10,991 — 14,770 14,770 Costs and estimated earnings in excess of billings on uncompleted contracts — 1,745 1,745 — 7,786 7,786 Other current assets 2 186 188 2 1,190 1,192 Total current assets associated with discontinued operations 3 12,922 12,925 5 23,746 23,751 Property, plant and equipment, net — 522 522 — 1,054 1,054 Intangible and other assets, net — 1,780 1,780 — 2,646 2,646 Total assets associated with discontinued operations $ 3 $ 15,224 $ 15,227 $ 5 $ 27,446 $ 27,451 Accounts payable $ — $ 4,015 $ 4,015 $ — $ 9,253 $ 9,253 Accrued liabilities 66 9,346 9,412 59 15,617 15,676 Billings on uncompleted contracts in excess of costs and estimated earnings — 2,551 2,551 — 7,042 7,042 Total current liabilities associated with discontinued operations 66 15,912 15,978 59 31,912 31,971 Other long-term liabilities — 6,301 6,301 1 6,527 6,528 Total liabilities associated with discontinued operations $ 66 $ 22,213 $ 22,279 $ 60 $ 38,439 $ 38,499 |
Inventory, Net (Tables)
Inventory, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory, net of reserves, consisted of the following amounts (in thousands): September 30, 2018 December 31, 2017 Parts and supplies $ 88,437 $ 79,803 Work in progress 48,079 21,853 Finished goods 5,330 6,253 Inventory, net $ 141,846 $ 107,909 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, net | Property, plant and equipment, net, consisted of the following (in thousands): September 30, 2018 December 31, 2017 Compression equipment, facilities and other fleet assets (1) $ 1,650,356 $ 1,577,052 Land and buildings 100,857 96,463 Transportation and shop equipment 82,525 82,240 Other 96,622 90,395 1,930,360 1,846,150 Accumulated depreciation (1,069,363 ) (1,023,871 ) Property, plant and equipment, net $ 860,997 $ 822,279 (1) In the fourth quarter of 2017, we evaluated the estimated useful lives and salvage values of our property, plant and equipment. As a result of this evaluation, we changed the useful lives and salvage values for our compression equipment from a maximum useful life of 30 years to 23 years and a maximum salvage value of 20% to 15% based on expected future use. During the three and nine months ended September 30, 2018 , we recorded increases in depreciation expense of $2.4 million and $7.5 million , respectively, as a result of these changes in useful lives and salvage values which impacted our diluted net income per share by $0.07 and $0.21 , respectively. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following (in thousands): September 30, 2018 December 31, 2017 Revolving credit facility due November 2020 $ 50,000 $ — 8.125% senior notes due May 2025 375,000 375,000 Other debt 800 1,171 Unamortized deferred financing costs of 8.125% senior notes (6,683 ) (7,250 ) Total debt 419,117 368,921 Less: Amounts due within one year (1) (449 ) (449 ) Long-term debt $ 418,668 $ 368,472 (1) Short-term debt and the current portion of long-term debt are included in accrued liabilities in our balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following table presents our assets and liabilities measured at fair value on a nonrecurring basis during the nine months ended September 30, 2018 , with pricing levels as of the date of valuation (in thousands): Nine Months Ended September 30, 2018 (Level 1) (Level 2) (Level 3) Impaired long-lived assets (1) $ — $ — $ 550 Impaired assets—assets held for sale (2) — — 21,026 Long-term note receivable (3) — — 14,573 (1) Our estimate of the fair value of the impaired long-lived assets during the nine months ended September 30, 2018 was primarily based on the expected net sale proceeds compared to other fleet units we sold and/or a review of other units offered for sale by third parties. (2) Our estimate of the fair value of the impaired PEQ assets, which were classified as assets held for sale as of March 31, 2018, was based on the expected net proceeds from the sale of the assets. (3) Our estimate of the fair value of a note receivable was discounted based on a settlement period of eight years and a discount rate of 5.2% . |
Restatement Related Charges (_2
Restatement Related Charges (Recoveries), Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restatement Charges [Abstract] | |
Summary of Changes to Accrued Liability Balance Related to Restatement Charges | The following table summarizes the changes to our accrued liability balance related to restatement charges, net, for the nine months ended September 30, 2017 and 2018 (in thousands): Restatement Related Charges Beginning balance at January 1, 2017 $ 2,212 Additions for costs expensed, net 3,011 Reductions for payments, net (4,281 ) Ending balance at September 30, 2017 $ 942 Beginning balance at January 1, 2018 $ 579 Additions for costs expensed, net (318 ) Reductions for payments, net (105 ) Ending balance at September 30, 2018 $ 156 |
Summary of the Components of Charges Included in Restatement Charges | The following table summarizes the components of charges included in restatement related charges (recoveries), net, in our statements of operations for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 External accounting costs $ — $ 317 $ — $ 1,071 External legal costs — 1,409 533 4,101 Other 263 271 369 640 Recoveries from Archrock (605 ) — (1,220 ) (2,801 ) Total restatement related charges (recoveries), net $ (342 ) $ 1,997 $ (318 ) $ 3,011 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Summary of the Components of Charges Included in Restructuring and Other Charges | The following table summarizes the components of charges included in restructuring and other charges in our statements of operations for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Retention awards to certain employees $ — $ 189 $ — $ 442 Employee termination benefits 33 206 1,389 2,100 Relocation costs 231 — 297 — Other — 22 — 493 Total restructuring and other charges $ 264 $ 417 $ 1,686 $ 3,035 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock, Restricted Stock Units, and Performance Units | The table below presents the changes in restricted stock, restricted stock units and performance units for our common stock during the nine months ended September 30, 2018 . Shares (in thousands) Weighted Average Grant-Date Fair Value Per Share Non-vested awards, January 1, 2018 1,165 $ 23.93 Granted 571 26.29 Vested (474 ) 23.50 Cancelled (95 ) 25.15 Non-vested awards, September 30, 2018 1,167 25.16 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share | The following table presents a reconciliation of basic and diluted net income per common share for the three and nine months ended September 30, 2018 and 2017 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Numerator for basic and diluted net income per common share: Income (loss) from continuing operations $ 3,196 $ 1,214 $ 5,665 $ (7,939 ) Income from discontinued operations, net of tax 2,173 2,139 5,116 35,157 Less: Net income attributable to participating securities (140 ) (92 ) (284 ) — Net income — used in basic and diluted net income per common share $ 5,229 $ 3,261 $ 10,497 $ 27,218 Weighted average common shares outstanding including participating securities 36,430 36,036 36,361 35,969 Less: Weighted average participating securities outstanding (950 ) (990 ) (959 ) (1,032 ) Weighted average common shares outstanding — used in basic net income per common share 35,480 35,046 35,402 34,937 Net dilutive potential common shares issuable: On exercise of options and vesting of restricted stock units 64 74 67 * Weighted average common shares outstanding — used in diluted net income per common share 35,544 35,120 35,469 34,937 Net income per common share: Basic $ 0.15 $ 0.09 $ 0.30 $ 0.78 Diluted $ 0.15 $ 0.09 $ 0.30 $ 0.78 * Excluded from diluted net income per common share as their inclusion would have been anti-dilutive. |
Schedule of Antidilutive Shares Excluded from Computation of Net Income Per Common Share | The following table shows the potential shares of common stock issuable that were excluded from computing diluted net income per common share as their inclusion would have been anti-dilutive for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net dilutive potential common shares issuable: On exercise of options where exercise price is greater than average market value 35 39 35 45 On exercise of options and vesting of restricted stock units — — — 82 Net dilutive potential common shares issuable 35 39 35 127 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenues and Other Financial Information | The following table presents revenue and other financial information by reportable segment for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Contract Operations Aftermarket Services Product Sales Reportable September 30, 2018: Revenue $ 84,828 $ 29,993 $ 220,028 $ 334,849 Gross margin (1) 57,060 7,855 31,822 96,737 September 30, 2017: Revenue $ 92,561 $ 29,799 $ 192,119 $ 314,479 Gross margin (1) 58,921 7,896 20,500 87,317 Nine Months Ended Contract Operations Aftermarket Services Product Sales Reportable September 30, 2018: Revenue $ 272,808 $ 88,631 $ 667,264 $ 1,028,703 Gross margin (1) 177,283 23,890 86,960 288,133 September 30, 2017: Revenue $ 279,947 $ 76,567 $ 521,091 $ 877,605 Gross margin (1) 180,818 20,774 51,910 253,502 ________________________________ (1) Gross margin is defined as revenue less cost of sales (excluding depreciation and amortization expense). |
Reconciliation of Income (Loss) Before Income Taxes to Total Gross Margin | The following table reconciles income before income taxes to total gross margin (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Income before income taxes $ 11,150 $ 9,577 $ 28,733 $ 11,674 Selling, general and administrative 45,103 42,880 133,727 131,855 Depreciation and amortization 31,108 27,010 92,321 78,110 Long-lived asset impairment 2,054 — 3,858 — Restatement related charges (recoveries), net (342 ) 1,997 (318 ) 3,011 Restructuring and other charges 264 417 1,686 3,035 Interest expense 7,685 7,860 21,787 27,329 Other (income) expense, net (285 ) (2,424 ) 6,339 (1,512 ) Total gross margin $ 96,737 $ 87,317 $ 288,133 $ 253,502 |
Supplemental Guarantor Financ_2
Supplemental Guarantor Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Table Text Block Supplement [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation ASSETS Cash and cash equivalents $ 6 $ 6,756 $ 30,204 $ — $ 36,966 Restricted cash — — 546 — 546 Accounts receivable, net — 88,840 154,601 — 243,441 Inventory, net — 79,158 62,688 — 141,846 Contract assets — 45,095 26,746 — 71,841 Intercompany receivables — 158,454 348,837 (507,291 ) — Other current assets — 9,139 31,343 — 40,482 Current assets associated with discontinued operations — — 12,925 — 12,925 Total current assets 6 387,442 667,890 (507,291 ) 548,047 Property, plant and equipment, net — 285,530 575,467 — 860,997 Investment in affiliates 554,384 865,011 (310,627 ) (1,108,768 ) — Deferred income taxes — 5,575 8,156 — 13,731 Intangible and other assets, net — 29,046 58,369 — 87,415 Long-term assets associated with discontinued operations — — 2,302 — 2,302 Total assets $ 554,390 $ 1,572,604 $ 1,001,557 $ (1,616,059 ) $ 1,512,492 LIABILITIES AND EQUITY Accounts payable, trade $ — $ 131,794 $ 34,564 $ — $ 166,358 Accrued liabilities — 49,621 78,233 — 127,854 Contract liabilities — 48,253 40,934 — 89,187 Intercompany payables 1,284 348,837 157,170 (507,291 ) — Current liabilities associated with discontinued operations — — 15,978 — 15,978 Total current liabilities 1,284 578,505 326,879 (507,291 ) 399,377 Long-term debt — 418,668 — — 418,668 Deferred income taxes — — 6,356 — 6,356 Long-term contract liabilities — 11,047 78,689 — 89,736 Other long-term liabilities — 10,000 28,948 — 38,948 Long-term liabilities associated with discontinued operations — — 6,301 — 6,301 Total liabilities 1,284 1,018,220 447,173 (507,291 ) 959,386 Total Equity 553,106 554,384 554,384 (1,108,768 ) 553,106 Total liabilities and equity $ 554,390 $ 1,572,604 $ 1,001,557 $ (1,616,059 ) $ 1,512,492 Condensed Consolidating Balance Sheet December 31, 2017 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation ASSETS Cash and cash equivalents $ 397 $ 24,195 $ 24,553 $ — $ 49,145 Restricted cash — — 546 — 546 Accounts receivable, net — 123,362 142,690 — 266,052 Inventory, net — 50,528 57,381 — 107,909 Costs and estimated earnings in excess of billings on uncompleted contracts — 33,439 7,256 — 40,695 Intercompany receivables — 158,296 359,766 (518,062 ) — Other current assets — 6,095 32,612 — 38,707 Current assets held for sale — 15,761 — — 15,761 Current assets associated with discontinued operations — — 23,751 — 23,751 Total current assets 397 411,676 648,555 (518,062 ) 542,566 Property, plant and equipment, net — 288,670 533,609 — 822,279 Investment in affiliates 555,735 831,097 (275,362 ) (1,111,470 ) — Deferred income taxes — 5,452 5,098 — 10,550 Intangible and other assets, net — 12,218 64,762 — 76,980 Long-term assets held for sale — 4,732 — — 4,732 Long-term assets associated with discontinued operations — — 3,700 — 3,700 Total assets $ 556,132 $ 1,553,845 $ 980,362 $ (1,629,532 ) $ 1,460,807 LIABILITIES AND EQUITY Accounts payable, trade $ — $ 115,273 $ 33,471 $ — $ 148,744 Accrued liabilities 57 54,724 59,555 — 114,336 Deferred revenue — 2,162 21,740 — 23,902 Billings on uncompleted contracts in excess of costs and estimated earnings — 89,002 563 — 89,565 Intercompany payables 1,289 359,766 157,007 (518,062 ) — Current liabilities associated with discontinued operations — — 31,971 — 31,971 Total current liabilities 1,346 620,927 304,307 (518,062 ) 408,518 Long-term debt — 368,472 — — 368,472 Deferred income taxes — — 9,746 — 9,746 Long-term deferred revenue — 629 91,856 — 92,485 Other long-term liabilities — 8,082 12,190 — 20,272 Long-term liabilities associated with discontinued operations — — 6,528 — 6,528 Total liabilities 1,346 998,110 424,627 (518,062 ) 906,021 Total Equity 554,786 555,735 555,735 (1,111,470 ) 554,786 Total liabilities and equity $ 556,132 $ 1,553,845 $ 980,362 $ (1,629,532 ) $ 1,460,807 |
Condensed Consolidating Statement of Operations and Comprehensive Income | Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 223,429 $ 129,517 $ (18,097 ) $ 334,849 Cost of sales (excluding depreciation and amortization expense) — 183,640 72,569 (18,097 ) 238,112 Selling, general and administrative 285 23,035 21,783 — 45,103 Depreciation and amortization — 9,015 22,093 — 31,108 Long-lived asset impairment — 1,277 777 — 2,054 Restatement related recoveries, net — (342 ) — — (342 ) Restructuring and other charges — — 264 — 264 Interest expense — 8,941 (1,256 ) — 7,685 Intercompany charges, net — 1,880 (1,880 ) — — Equity in (income) loss of affiliates (5,654 ) (4,186 ) 15,774 (5,934 ) — Other (income) expense, net — (477 ) 192 — (285 ) Income (loss) before income taxes 5,369 646 (799 ) 5,934 11,150 Provision for income taxes — 12,234 12,962 (17,242 ) 7,954 Income (loss) from continuing operations 5,369 (11,588 ) (13,761 ) 23,176 3,196 Income from discontinued operations, net of tax — — 2,173 — 2,173 Net income (loss) 5,369 (11,588 ) (11,588 ) 23,176 5,369 Other comprehensive loss (2,673 ) (2,673 ) (2,673 ) 5,346 (2,673 ) Comprehensive income (loss) attributable to Exterran stockholders $ 2,696 $ (14,261 ) $ (14,261 ) $ 28,522 $ 2,696 Condensed Consolidating Statement of Operations and Comprehensive Income Three Months Ended September 30, 2017 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 228,424 $ 125,020 $ (38,965 ) $ 314,479 Cost of sales (excluding depreciation and amortization expense) — 195,828 70,299 (38,965 ) 227,162 Selling, general and administrative 310 20,297 22,273 — 42,880 Depreciation and amortization — 8,872 18,138 — 27,010 Restatement related charges, net — 1,861 136 — 1,997 Restructuring and other charges — 310 107 — 417 Interest expense — 7,797 63 — 7,860 Intercompany charges, net — 1,479 (1,479 ) — — Equity in (income) loss of affiliates (3,666 ) (16,463 ) 8,678 11,451 — Other (income) expense, net 3 (321 ) (2,106 ) — (2,424 ) Income before income taxes 3,353 8,764 8,911 (11,451 ) 9,577 Provision for income taxes — 979 3,264 4,120 8,363 Income from continuing operations 3,353 7,785 5,647 (15,571 ) 1,214 Income from discontinued operations, net of tax — — 2,139 — 2,139 Net income 3,353 7,785 7,786 (15,571 ) 3,353 Other comprehensive income 1,310 1,310 1,310 (2,620 ) 1,310 Comprehensive income attributable to Exterran stockholders $ 4,663 $ 9,095 $ 9,096 $ (18,191 ) $ 4,663 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine Months Ended September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 722,078 $ 369,209 $ (62,584 ) $ 1,028,703 Cost of sales (excluding depreciation and amortization expense) — 600,393 202,761 (62,584 ) 740,570 Selling, general and administrative 920 65,152 67,655 — 133,727 Depreciation and amortization — 27,030 65,291 — 92,321 Long-lived asset impairment — 3,081 777 — 3,858 Restatement related recoveries, net — (318 ) — — (318 ) Restructuring and other charges — — 1,686 — 1,686 Interest expense — 21,438 349 — 21,787 Intercompany charges, net — 4,953 (4,953 ) — — Equity in (income) loss of affiliates (11,548 ) (13,817 ) 5,932 19,433 — Other (income) expense, net (153 ) (1,846 ) 8,338 — 6,339 Income before income taxes 10,781 16,012 21,373 (19,433 ) 28,733 Provision for income taxes — 8,127 18,604 (3,663 ) 23,068 Income from continuing operations 10,781 7,885 2,769 (15,770 ) 5,665 Income from discontinued operations, net of tax — — 5,116 — 5,116 Net income 10,781 7,885 7,885 (15,770 ) 10,781 Other comprehensive loss (10,039 ) (10,039 ) (10,039 ) 20,078 (10,039 ) Comprehensive income (loss) attributable to Exterran stockholders $ 742 $ (2,154 ) $ (2,154 ) $ 4,308 $ 742 Condensed Consolidating Statement of Operations and Comprehensive Income Nine Months Ended September 30, 2017 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 606,536 $ 366,685 $ (95,616 ) $ 877,605 Cost of sales (excluding depreciation and amortization expense) — 516,934 202,785 (95,616 ) 624,103 Selling, general and administrative 2,011 63,690 66,154 — 131,855 Depreciation and amortization — 25,612 52,498 — 78,110 Restatement related charges, net — 2,890 121 — 3,011 Restructuring and other charges — 1,989 1,046 — 3,035 Interest expense — 25,069 2,260 — 27,329 Intercompany charges, net — 5,132 (5,132 ) — — Equity in (income) loss of affiliates (29,232 ) (77,932 ) 36,591 70,573 — Other (income) expense, net 3 (2,328 ) 813 — (1,512 ) Income before income taxes 27,218 45,480 9,549 (70,573 ) 11,674 Provision for income taxes — 4,140 3,364 12,109 19,613 Income (loss) from continuing operations 27,218 41,340 6,185 (82,682 ) (7,939 ) Income from discontinued operations, net of tax — — 35,157 — 35,157 Net income 27,218 41,340 41,342 (82,682 ) 27,218 Other comprehensive income 284 284 284 (568 ) 284 Comprehensive income attributable to Exterran stockholders $ 27,502 $ 41,624 $ 41,626 $ (83,250 ) $ 27,502 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Cash flows from operating activities: Net cash provided by (used in) continuing operations $ (386 ) $ (7,525 ) $ 96,704 $ — $ 88,793 Net cash provided by discontinued operations — — 1,144 — 1,144 Net cash provided by (used in) operating activities (386 ) (7,525 ) 97,848 — 89,937 Cash flows from investing activities: Capital expenditures — (54,713 ) (97,513 ) — (152,226 ) Proceeds from sale of property, plant and equipment — 51 2,379 — 2,430 Proceeds from sale of business — 5,000 — — 5,000 Intercompany transfers — 5 6,562 (6,567 ) — Net cash used in continuing operations — (49,657 ) (88,572 ) (6,567 ) (144,796 ) Net cash provided by discontinued operations — — 66 — 66 Net cash used in investing activities — (49,657 ) (88,506 ) (6,567 ) (144,730 ) Cash flows from financing activities: Proceeds from borrowings of debt — 415,000 — — 415,000 Repayments of debt — (365,371 ) — — (365,371 ) Intercompany transfers (5 ) (6,562 ) — 6,567 — Payments for debt issuance costs — (92 ) — — (92 ) Proceeds from stock options exercised — 548 — — 548 Purchases of treasury stock — (3,780 ) — — (3,780 ) Net cash provided by (used in) financing activities (5 ) 39,743 — 6,567 46,305 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (3,691 ) — (3,691 ) Net increase (decrease) in cash, cash equivalents and restricted cash (391 ) (17,439 ) 5,651 — (12,179 ) Cash, cash equivalents and restricted cash at beginning of period 397 24,195 25,099 — 49,691 Cash, cash equivalents and restricted cash at end of period $ 6 $ 6,756 $ 30,750 $ — $ 37,512 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2017 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Cash flows from operating activities: Net cash provided by (used in) continuing operations $ (391 ) $ 50,993 $ 70,632 $ — $ 121,234 Net cash used in discontinued operations — — (1,937 ) — (1,937 ) Net cash provided by (used in) operating activities (391 ) 50,993 68,695 — 119,297 Cash flows from investing activities: Capital expenditures — (31,582 ) (47,540 ) — (79,122 ) Proceeds from sale of property, plant and equipment — 1,988 4,567 — 6,555 Proceeds from sale of business — 894 — — 894 Intercompany transfers — (684 ) (43,042 ) 43,726 — Net cash used in continuing operations — (29,384 ) (86,015 ) 43,726 (71,673 ) Net cash provided by discontinued operations — — 19,354 — 19,354 Net cash used in investing activities — (29,384 ) (66,661 ) 43,726 (52,319 ) Cash flows from financing activities: Proceeds from borrowings of debt — 488,000 — — 488,000 Repayments of debt — (463,940 ) — — (463,940 ) Intercompany transfers 684 43,042 — (43,726 ) — Cash transfer to Archrock, Inc. — (44,720 ) — — (44,720 ) Payments for debt issuance costs — (7,911 ) — — (7,911 ) Proceeds from stock options exercised — 684 — — 684 Purchases of treasury stock — (3,319 ) — — (3,319 ) Net cash provided by (used in) financing activities 684 11,836 — (43,726 ) (31,206 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (373 ) — (373 ) Net increase in cash, cash equivalents and restricted cash 293 33,445 1,661 — 35,399 Cash, cash equivalents and restricted cash at beginning of period 131 16,645 19,573 — 36,349 Cash, cash equivalents and restricted cash at end of period $ 424 $ 50,090 $ 21,234 $ — $ 71,748 |
Description of Business and B_4
Description of Business and Basis of Presentation - Narrative (Details) | 9 Months Ended |
Sep. 30, 2018business_line | |
Accounting Policies [Abstract] | |
Number of business lines | 3 |
Description of Business and B_5
Description of Business and Basis of Presentation - ASU 2014-09 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Current assets: | ||||||
Cash and cash equivalents | $ 36,966 | $ 36,966 | $ 49,145 | $ 49,145 | ||
Restricted cash | 546 | 546 | 546 | 546 | ||
Accounts receivable, net of allowance | 243,441 | 243,441 | 261,251 | 266,052 | ||
Inventory, net | 141,846 | 141,846 | 107,785 | 107,909 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | 0 | 0 | 40,695 | ||
Contract assets | 71,841 | 71,841 | 50,824 | 0 | ||
Other current assets | 40,482 | 40,482 | 38,528 | 38,707 | ||
Current assets held for sale | 0 | 0 | 15,761 | 15,761 | ||
Current assets associated with discontinued operations | 12,925 | 12,925 | 23,751 | 23,751 | ||
Total current assets | 548,047 | 548,047 | 547,591 | 542,566 | ||
Property, plant and equipment, net | 860,997 | 860,997 | 820,250 | 822,279 | ||
Deferred income taxes | 13,731 | 13,731 | 10,954 | 10,550 | ||
Intangible and other assets, net | 87,415 | 87,415 | 95,253 | 76,980 | ||
Long-term assets held for sale | 0 | 0 | 4,732 | 4,732 | ||
Long-term assets associated with discontinued operations | 2,302 | 2,302 | 3,700 | 3,700 | ||
Total assets | 1,512,492 | 1,512,492 | 1,482,480 | 1,460,807 | ||
Current liabilities: | ||||||
Accounts payable, trade | 166,358 | 166,358 | 148,744 | 148,744 | ||
Accrued liabilities | 127,854 | 127,854 | 130,380 | 114,336 | ||
Deferred revenue | 0 | 0 | 0 | 23,902 | ||
Billings on uncompleted contracts in excess of costs and estimated earnings | 0 | 0 | 0 | 89,565 | ||
Contract liabilities | 89,187 | 89,187 | 112,244 | 0 | ||
Current liabilities associated with discontinued operations | 15,978 | 15,978 | 31,971 | 31,971 | ||
Total current liabilities | 399,377 | 399,377 | 423,339 | 408,518 | ||
Long-term debt | 418,668 | 418,668 | 368,472 | 368,472 | ||
Deferred income taxes | 6,356 | 6,356 | 7,838 | 9,746 | ||
Long-term deferred revenue | 0 | 0 | 0 | 92,485 | ||
Long-term contract liabilities | 89,736 | 89,736 | 89,004 | 0 | ||
Other long-term liabilities | 38,948 | 38,948 | 42,534 | 20,272 | ||
Long-term liabilities associated with discontinued operations | 6,301 | 6,301 | 6,528 | 6,528 | ||
Total liabilities | 959,386 | 959,386 | 937,715 | 906,021 | ||
Stockholders’ equity: | ||||||
Preferred stock | 0 | 0 | 0 | 0 | ||
Common stock | 368 | 368 | 362 | 362 | ||
Additional paid-in capital | 750,537 | 750,537 | 739,164 | 739,164 | ||
Accumulated deficit | (222,750) | (222,750) | (233,531) | (223,510) | ||
Treasury stock | (10,717) | (10,717) | (6,937) | (6,937) | ||
Accumulated other comprehensive income | 35,668 | 35,668 | 45,707 | 45,707 | ||
Total stockholders’ equity | 553,106 | 553,106 | 544,765 | 554,786 | ||
Total liabilities and equity | 1,512,492 | 1,512,492 | 1,482,480 | 1,460,807 | ||
Revenue | 334,849 | $ 314,479 | 1,028,703 | $ 877,605 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||||
Current assets: | ||||||
Cash and cash equivalents | 49,145 | |||||
Restricted cash | 546 | |||||
Accounts receivable, net of allowance | 266,052 | |||||
Inventory, net | 142,469 | 142,469 | 107,909 | |||
Costs and estimated earnings in excess of billings on uncompleted contracts | 40,695 | |||||
Contract assets | 53,772 | 53,772 | 0 | |||
Other current assets | 51,932 | 51,932 | 38,707 | |||
Current assets held for sale | 15,761 | |||||
Current assets associated with discontinued operations | 23,751 | |||||
Total current assets | 542,566 | |||||
Property, plant and equipment, net | 862,939 | 862,939 | 822,279 | |||
Deferred income taxes | 11,353 | 11,353 | 10,550 | |||
Intangible and other assets, net | 70,026 | 70,026 | 76,980 | |||
Long-term assets held for sale | 4,732 | |||||
Long-term assets associated with discontinued operations | 3,700 | |||||
Total assets | 1,488,671 | 1,488,671 | 1,460,807 | |||
Current liabilities: | ||||||
Accounts payable, trade | 148,744 | |||||
Accrued liabilities | 113,902 | 113,902 | 114,336 | |||
Deferred revenue | 23,902 | |||||
Billings on uncompleted contracts in excess of costs and estimated earnings | 89,565 | |||||
Contract liabilities | 90,565 | 90,565 | 0 | |||
Current liabilities associated with discontinued operations | 31,971 | |||||
Total current liabilities | 408,518 | |||||
Long-term debt | 368,472 | |||||
Deferred income taxes | 2,510 | 2,510 | 9,746 | |||
Long-term deferred revenue | 92,485 | |||||
Long-term contract liabilities | 92,919 | 92,919 | 0 | |||
Other long-term liabilities | 20,492 | 20,492 | 20,272 | |||
Long-term liabilities associated with discontinued operations | 6,528 | |||||
Total liabilities | 927,693 | 927,693 | 906,021 | |||
Stockholders’ equity: | ||||||
Preferred stock | 0 | |||||
Common stock | 362 | |||||
Additional paid-in capital | 739,164 | |||||
Accumulated deficit | (214,878) | (214,878) | (223,510) | |||
Treasury stock | (6,937) | |||||
Accumulated other comprehensive income | 45,707 | |||||
Total stockholders’ equity | 560,978 | 560,978 | 554,786 | |||
Total liabilities and equity | 1,488,671 | 1,488,671 | $ 1,460,807 | |||
Adjustments | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | |||||
Restricted cash | 0 | |||||
Accounts receivable, net of allowance | (4,801) | |||||
Inventory, net | 623 | 623 | (124) | |||
Costs and estimated earnings in excess of billings on uncompleted contracts | (40,695) | |||||
Contract assets | (18,069) | (18,069) | 50,824 | |||
Other current assets | 11,450 | 11,450 | (179) | |||
Current assets held for sale | 0 | |||||
Current assets associated with discontinued operations | 0 | |||||
Total current assets | 5,025 | |||||
Property, plant and equipment, net | 1,942 | 1,942 | (2,029) | |||
Deferred income taxes | (2,378) | (2,378) | 404 | |||
Intangible and other assets, net | (17,389) | (17,389) | 18,273 | |||
Long-term assets held for sale | 0 | |||||
Long-term assets associated with discontinued operations | 0 | |||||
Total assets | (23,821) | (23,821) | 21,673 | |||
Current liabilities: | ||||||
Accounts payable, trade | 0 | |||||
Accrued liabilities | (13,952) | (13,952) | 16,044 | |||
Deferred revenue | (23,902) | |||||
Billings on uncompleted contracts in excess of costs and estimated earnings | (89,565) | |||||
Contract liabilities | 1,378 | 1,378 | 112,244 | |||
Current liabilities associated with discontinued operations | 0 | |||||
Total current liabilities | 14,821 | |||||
Long-term debt | 0 | |||||
Deferred income taxes | (3,846) | (3,846) | (1,908) | |||
Long-term deferred revenue | (92,485) | |||||
Long-term contract liabilities | 3,183 | 3,183 | 89,004 | |||
Other long-term liabilities | (18,456) | (18,456) | 22,262 | |||
Long-term liabilities associated with discontinued operations | 0 | |||||
Total liabilities | (31,693) | (31,693) | 31,694 | |||
Stockholders’ equity: | ||||||
Preferred stock | 0 | |||||
Common stock | 0 | |||||
Additional paid-in capital | 0 | |||||
Accumulated deficit | 7,872 | 7,872 | (10,021) | |||
Treasury stock | 0 | |||||
Accumulated other comprehensive income | 0 | |||||
Total stockholders’ equity | 7,872 | 7,872 | (10,021) | |||
Total liabilities and equity | (23,821) | (23,821) | $ 21,673 | |||
Revenue | $ (900) | $ 2,700 |
Description of Business and B_6
Description of Business and Basis of Presentation - ASU 2016-18 (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cash, cash equivalents and restricted cash | $ 37,512 | $ 49,691 | $ 71,748 | $ 36,349 | |
Cash and cash equivalents | 36,966 | $ 49,145 | 49,145 | ||
Restricted cash | $ 546 | $ 546 | $ 546 | ||
Accounting Standards Update 2016-18 | Cash and Cash Equivalents | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restricted cash | $ 500 |
Description of Business and B_7
Description of Business and Basis of Presentation - ASU 2016-02 (Details) - Accounting Standards Update 2016-02 - Forecast $ in Millions | Jan. 01, 2019USD ($) |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Lease assets | $ 25 |
Lease liabilities | 25 |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Lease assets | 30 |
Lease liabilities | $ 30 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Accumulated deficit | $ 222,750 | $ 222,750 | $ 233,531 | $ 223,510 | |||
Revenue | 334,849 | $ 314,479 | 1,028,703 | $ 877,605 | |||
Assets | (1,512,492) | (1,512,492) | (1,482,480) | (1,460,807) | |||
Total liabilities | (959,386) | (959,386) | (937,715) | $ (906,021) | |||
Net income (loss) | 5,369 | 3,353 | 10,781 | 27,218 | |||
Revenue recognized from contract operations services including revenue deferred in previous periods | 15,300 | ||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Accumulated deficit | (7,872) | (7,872) | 10,021 | ||||
Revenue | (900) | 2,700 | |||||
Assets | 23,821 | 23,821 | (21,673) | ||||
Total liabilities | 31,693 | 31,693 | $ (31,694) | ||||
Net income (loss) | (453) | (2,149) | |||||
Product Sales | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Revenue | 220,028 | 192,119 | 667,264 | 521,091 | |||
Performance obligation satisfied in previous periods | 415,300 | ||||||
Performance obligation satisfied in previous periods, included in billings in excess of costs | $ 84,300 | ||||||
Product Sales | Minimum | Compression equipment | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Product Manufacturing Period | 3 months | ||||||
Product Sales | Minimum | Processing and treating equipment | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Product Manufacturing Period | 6 months | ||||||
Product Sales | Maximum | Compression equipment | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Product Manufacturing Period | 12 months | ||||||
Product Sales | Maximum | Processing and treating equipment | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Product Manufacturing Period | 24 months | ||||||
Contract Operations | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Special contract term period in excess of | 10 years | ||||||
Revenue | 84,828 | 92,561 | $ 272,808 | 279,947 | |||
Performance obligation satisfied in previous periods | 4,100 | ||||||
Contract Operations | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Revenue | (165) | $ (1,624) | |||||
Contract Operations | Minimum | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
General contract term period | 3 years | ||||||
Contract Operations | Maximum | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
General contract term period | 5 years | ||||||
Aftermarket services | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Revenue | 29,993 | $ 29,799 | $ 88,631 | $ 76,567 | |||
Aftermarket services | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Revenue | 1,016 | $ (1,063) | |||||
Aftermarket services | Operation and maintenance services | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Special contract term period in excess of | 6 years | ||||||
Aftermarket services | Other services | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
General contract term period | 6 months | ||||||
Aftermarket services | Minimum | Operation and maintenance services | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
General contract term period | 2 years | ||||||
Aftermarket services | Maximum | Operation and maintenance services | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
General contract term period | 4 years | ||||||
Costs to Fulfill a Contract | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Capitalized contract costs | 7,600 | $ 7,600 | |||||
Amortization expense for capitalized contract costs | (600) | 500 | |||||
Costs to Obtain a Contract | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Capitalized contract costs | 6,600 | 6,600 | |||||
Amortization expense for capitalized contract costs | $ 300 | $ 1,100 | |||||
Products Sales Business | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Unsatisfied performance obligation | $ 12,000 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 334,849 | $ 314,479 | $ 1,028,703 | $ 877,605 |
Contract operations services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 84,828 | 92,561 | 272,808 | 279,947 |
Contract operations services | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 84,828 | 272,808 | ||
Total aftermarket services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 29,993 | 29,799 | 88,631 | 76,567 |
Total aftermarket services | Operation and maintenance services | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,215 | 42,812 | ||
Total aftermarket services | Part sales | Revenue recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,301 | 31,511 | ||
Total aftermarket services | Other services | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,477 | 14,308 | ||
Total product sales revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 220,028 | $ 192,119 | 667,264 | $ 521,091 |
Total product sales revenues | Compression equipment | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 106,140 | 367,135 | ||
Total product sales revenues | Processing and treating equipment | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 104,739 | 270,261 | ||
Total product sales revenues | Production equipment | Revenue recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,084 | 15,864 | ||
Total product sales revenues | Other product sales | Transferred over time and transferred at point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 8,065 | $ 14,004 |
Revenue - Disaggregation of R_2
Revenue - Disaggregation of Revenue by Geographical Regions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 334,849 | $ 314,479 | $ 1,028,703 | $ 877,605 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 215,015 | 669,220 | ||
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 64,960 | 205,549 | ||
Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 41,653 | 99,131 | ||
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 13,221 | $ 54,803 |
Revenue - Performance Obligatio
Revenue - Performance Obligation Narrative (Details) $ in Millions | Sep. 30, 2018USD ($) |
Contract Operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 73 |
Unsatisfied performance obligation, expected time of satisfaction (in years) | 3 months |
Contract Operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 272 |
Unsatisfied performance obligation, expected time of satisfaction (in years) | 1 year |
Contract Operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 192 |
Unsatisfied performance obligation, expected time of satisfaction (in years) | 1 year |
Contract Operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 180 |
Unsatisfied performance obligation, expected time of satisfaction (in years) | 1 year |
Contract Operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 1,400 |
Product Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 183 |
Unsatisfied performance obligation, expected time of satisfaction (in years) | 3 months |
Product Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 569 |
Unsatisfied performance obligation, expected time of satisfaction (in years) | 1 year |
Product Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 7 |
Unsatisfied performance obligation, expected time of satisfaction (in years) | 1 year |
Product Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 759 |
Revenue - Contract Assets and C
Revenue - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable, net | $ 243,441 | $ 261,251 | $ 266,052 |
Contract with Customer, Asset and Liability [Abstract] | |||
Current contract assets | 71,841 | 50,824 | 0 |
Long-term contract assets | 7,226 | 11,835 | |
Current contract liabilities | 89,187 | 112,244 | 0 |
Long-term contract liabilities | $ 89,736 | $ 89,004 | $ 0 |
Revenue - Comparison of the Rep
Revenue - Comparison of the Reported Balance Sheet to Pro-Forma Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
ASSETS | |||
Inventory, net | $ 141,846 | $ 107,785 | $ 107,909 |
Contract assets | 71,841 | 50,824 | 0 |
Other current assets | 40,482 | 38,528 | 38,707 |
Property, plant and equipment, net | 860,997 | 820,250 | 822,279 |
Deferred income taxes | 13,731 | 10,954 | 10,550 |
Intangible and other assets, net | 87,415 | 95,253 | 76,980 |
Total assets | 1,512,492 | 1,482,480 | 1,460,807 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Accrued liabilities | 127,854 | 130,380 | 114,336 |
Contract liabilities | 89,187 | 112,244 | 0 |
Deferred income taxes | 6,356 | 7,838 | 9,746 |
Long-term contract liabilities | 89,736 | 89,004 | 0 |
Other long-term liabilities | 38,948 | 42,534 | 20,272 |
Total liabilities | 959,386 | 937,715 | 906,021 |
Accumulated deficit | (222,750) | (233,531) | (223,510) |
Total stockholders’ equity | 553,106 | 544,765 | 554,786 |
Total liabilities and stockholders’ equity | 1,512,492 | 1,482,480 | 1,460,807 |
Adjustments | Accounting Standards Update 2014-09 | |||
ASSETS | |||
Inventory, net | 623 | (124) | |
Contract assets | (18,069) | 50,824 | |
Other current assets | 11,450 | (179) | |
Property, plant and equipment, net | 1,942 | (2,029) | |
Deferred income taxes | (2,378) | 404 | |
Intangible and other assets, net | (17,389) | 18,273 | |
Total assets | (23,821) | 21,673 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Accrued liabilities | (13,952) | 16,044 | |
Contract liabilities | 1,378 | 112,244 | |
Deferred income taxes | (3,846) | (1,908) | |
Long-term contract liabilities | 3,183 | 89,004 | |
Other long-term liabilities | (18,456) | 22,262 | |
Total liabilities | (31,693) | 31,694 | |
Accumulated deficit | 7,872 | (10,021) | |
Total stockholders’ equity | 7,872 | (10,021) | |
Total liabilities and stockholders’ equity | (23,821) | $ 21,673 | |
Balances Without Adoption of Topic 606 | |||
ASSETS | |||
Inventory, net | 142,469 | 107,909 | |
Contract assets | 53,772 | 0 | |
Other current assets | 51,932 | 38,707 | |
Property, plant and equipment, net | 862,939 | 822,279 | |
Deferred income taxes | 11,353 | 10,550 | |
Intangible and other assets, net | 70,026 | 76,980 | |
Total assets | 1,488,671 | 1,460,807 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Accrued liabilities | 113,902 | 114,336 | |
Contract liabilities | 90,565 | 0 | |
Deferred income taxes | 2,510 | 9,746 | |
Long-term contract liabilities | 92,919 | 0 | |
Other long-term liabilities | 20,492 | 20,272 | |
Total liabilities | 927,693 | 906,021 | |
Accumulated deficit | (214,878) | (223,510) | |
Total stockholders’ equity | 560,978 | 554,786 | |
Total liabilities and stockholders’ equity | $ 1,488,671 | $ 1,460,807 |
Revenue - Comparison of the R_2
Revenue - Comparison of the Reported Statement of Operations to Pro-Forma Amounts (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Revenue | $ 334,849 | $ 314,479 | $ 1,028,703 | $ 877,605 |
Cost of sales (excluding depreciation and amortization expense): | ||||
Cost of sales (excluding depreciation and amortization expense) | 238,112 | 227,162 | 740,570 | 624,103 |
Selling, general and administrative | 45,103 | 42,880 | 133,727 | 131,855 |
Depreciation and amortization | 31,108 | 27,010 | 92,321 | 78,110 |
Income before income taxes | 11,150 | 9,577 | 28,733 | 11,674 |
Provision for income taxes | 7,954 | 8,363 | 23,068 | 19,613 |
Income from continuing operations | 3,196 | 1,214 | 5,665 | (7,939) |
Net income | $ 5,369 | $ 3,353 | $ 10,781 | $ 27,218 |
Basic (in dollars per share) | $ 0.15 | $ 0.09 | $ 0.30 | $ 0.78 |
Diluted (in dollars per share) | $ 0.15 | $ 0.09 | $ 0.30 | $ 0.78 |
Adjustments | Accounting Standards Update 2014-09 | ||||
Revenues: | ||||
Revenue | $ (900) | $ 2,700 | ||
Cost of sales (excluding depreciation and amortization expense): | ||||
Selling, general and administrative | (39) | 6,588 | ||
Depreciation and amortization | (551) | (1,919) | ||
Income before income taxes | 272 | (6,018) | ||
Provision for income taxes | 725 | (3,869) | ||
Income from continuing operations | (453) | (2,149) | ||
Net income | $ (453) | $ (2,149) | ||
Basic (in dollars per share) | $ (0.02) | $ (0.06) | ||
Diluted (in dollars per share) | $ (0.02) | $ (0.06) | ||
Balances Without Adoption of Topic 606 | ||||
Cost of sales (excluding depreciation and amortization expense): | ||||
Selling, general and administrative | $ 45,064 | $ 140,315 | ||
Depreciation and amortization | 30,557 | 90,402 | ||
Income before income taxes | 11,422 | 22,715 | ||
Provision for income taxes | 8,679 | 19,199 | ||
Income from continuing operations | 2,743 | 3,516 | ||
Net income | $ 4,916 | $ 8,632 | ||
Basic (in dollars per share) | $ 0.13 | $ 0.24 | ||
Diluted (in dollars per share) | $ 0.13 | $ 0.24 | ||
Contract Operations | ||||
Revenues: | ||||
Revenue | $ 84,828 | $ 92,561 | $ 272,808 | $ 279,947 |
Cost of sales (excluding depreciation and amortization expense): | ||||
Cost of sales (excluding depreciation and amortization expense) | 27,768 | 33,640 | 95,525 | 99,129 |
Contract Operations | Adjustments | Accounting Standards Update 2014-09 | ||||
Revenues: | ||||
Revenue | (165) | (1,624) | ||
Cost of sales (excluding depreciation and amortization expense): | ||||
Cost of sales (excluding depreciation and amortization expense) | 556 | (545) | ||
Contract Operations | Balances Without Adoption of Topic 606 | ||||
Revenues: | ||||
Revenue | 84,663 | 271,184 | ||
Cost of sales (excluding depreciation and amortization expense): | ||||
Cost of sales (excluding depreciation and amortization expense) | 28,324 | 94,980 | ||
Aftermarket services | ||||
Revenues: | ||||
Revenue | 29,993 | 29,799 | 88,631 | 76,567 |
Cost of sales (excluding depreciation and amortization expense): | ||||
Cost of sales (excluding depreciation and amortization expense) | 22,138 | $ 21,903 | 64,741 | $ 55,793 |
Aftermarket services | Adjustments | Accounting Standards Update 2014-09 | ||||
Revenues: | ||||
Revenue | 1,016 | (1,063) | ||
Cost of sales (excluding depreciation and amortization expense): | ||||
Cost of sales (excluding depreciation and amortization expense) | 613 | (793) | ||
Aftermarket services | Balances Without Adoption of Topic 606 | ||||
Revenues: | ||||
Revenue | 31,009 | 87,568 | ||
Cost of sales (excluding depreciation and amortization expense): | ||||
Cost of sales (excluding depreciation and amortization expense) | $ 22,751 | $ 63,948 |
Revenue - Comparison of the R_3
Revenue - Comparison of the Reported Cash Flows to Pro-Forma Amounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||||
Net income | $ 5,369 | $ 3,353 | $ 10,781 | $ 27,218 |
Depreciation and amortization | 31,108 | $ 27,010 | 92,321 | 78,110 |
Deferred income tax benefit | (4,727) | (2,727) | ||
Changes in assets and liabilities: | ||||
Inventory | (51,067) | 9,842 | ||
Contract assets | (16,263) | 0 | ||
Other current assets | 5,073 | (3,943) | ||
Accounts payable and other liabilities | 29,116 | 40,516 | ||
Contract liabilities | (11,937) | 0 | ||
Other | 3,511 | (8,067) | ||
Net cash provided by continuing operations | 88,793 | $ 121,234 | ||
Adjustments | Accounting Standards Update 2014-09 | ||||
Cash flows from operating activities: | ||||
Net income | (453) | (2,149) | ||
Depreciation and amortization | (551) | (1,919) | ||
Deferred income tax benefit | (3,869) | |||
Changes in assets and liabilities: | ||||
Inventory | (499) | |||
Contract assets | 3,186 | |||
Other current assets | (6,470) | |||
Accounts payable and other liabilities | 5,882 | |||
Contract liabilities | 770 | |||
Other | 5,068 | |||
Net cash provided by continuing operations | 0 | |||
Balances Without Adoption of Topic 606 | ||||
Cash flows from operating activities: | ||||
Net income | 4,916 | 8,632 | ||
Depreciation and amortization | $ 30,557 | 90,402 | ||
Deferred income tax benefit | (8,596) | |||
Changes in assets and liabilities: | ||||
Inventory | (51,566) | |||
Contract assets | (13,077) | |||
Other current assets | (1,397) | |||
Accounts payable and other liabilities | 34,998 | |||
Contract liabilities | (11,167) | |||
Other | 8,579 | |||
Net cash provided by continuing operations | $ 88,793 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Aug. 31, 2012 | Sep. 30, 2017 | Sep. 30, 2018 | |
Venezuelan subsidiary | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sales price of previously nationalized assets | $ 441.7 | ||
Installment payment, including annual charge | $ 19.7 | ||
Remaining principal amount due | $ 17 | ||
Archrock | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash transferred to Archrock | $ 19.7 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Operating Results of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations, net of tax | $ 2,173 | $ 2,139 | $ 5,116 | $ 35,157 |
Exit of Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 7,654 | 12,616 | 15,536 | 60,775 |
Cost of sales (excluding depreciation and amortization expense) | 3,587 | 9,116 | 8,798 | 35,179 |
Selling, general and administrative | 777 | 1,346 | 1,025 | 3,917 |
Depreciation and amortization | 0 | 1,304 | 480 | 5,531 |
Recovery attributable to expropriation | 0 | (16,514) | ||
Restructuring and other charges | 0 | (439) | ||
Other (income) expense, net | 537 | (72) | (552) | (2,774) |
Provision for (benefit from) income taxes | 580 | (1,217) | 669 | 718 |
Income (loss) from discontinued operations, net of tax | 2,173 | 2,139 | 5,116 | 35,157 |
Venezuela | Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Cost of sales (excluding depreciation and amortization expense) | 0 | 0 | 0 | 0 |
Selling, general and administrative | 35 | 29 | 96 | 94 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Recovery attributable to expropriation | 0 | (16,514) | ||
Restructuring and other charges | 0 | 0 | ||
Other (income) expense, net | 0 | 0 | 1 | (3,157) |
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Income (loss) from discontinued operations, net of tax | (35) | (29) | (97) | 19,577 |
Belleli EPC | Exit of Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 7,654 | 12,616 | 15,536 | 60,775 |
Cost of sales (excluding depreciation and amortization expense) | 3,587 | 9,116 | 8,798 | 35,179 |
Selling, general and administrative | 742 | 1,317 | 929 | 3,823 |
Depreciation and amortization | 0 | 1,304 | 480 | 5,531 |
Recovery attributable to expropriation | 0 | 0 | ||
Restructuring and other charges | 0 | (439) | ||
Other (income) expense, net | 537 | (72) | (553) | 383 |
Provision for (benefit from) income taxes | 580 | (1,217) | 669 | 718 |
Income (loss) from discontinued operations, net of tax | $ 2,208 | $ 2,168 | $ 5,213 | $ 15,580 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Balance Sheet Data for Discontinued Operations (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total current assets associated with discontinued operations | $ 12,925 | $ 23,751 | $ 23,751 |
Total current liabilities associated with discontinued operations | 15,978 | $ 31,971 | 31,971 |
Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash | 1 | 3 | |
Accounts receivable | 10,991 | 14,770 | |
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,745 | 7,786 | |
Other current assets | 188 | 1,192 | |
Total current assets associated with discontinued operations | 12,925 | 23,751 | |
Property, plant and equipment, net | 522 | 1,054 | |
Intangible and other assets, net | 1,780 | 2,646 | |
Total assets associated with discontinued operations | 15,227 | 27,451 | |
Accounts payable | 4,015 | 9,253 | |
Accrued liabilities | 9,412 | 15,676 | |
Billings on uncompleted contracts in excess of costs and estimated earnings | 2,551 | 7,042 | |
Total current liabilities associated with discontinued operations | 15,978 | 31,971 | |
Other long-term liabilities | 6,301 | 6,528 | |
Total liabilities associated with discontinued operations | 22,279 | 38,499 | |
Venezuela | Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash | 1 | 3 | |
Accounts receivable | 0 | 0 | |
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | 0 | |
Other current assets | 2 | 2 | |
Total current assets associated with discontinued operations | 3 | 5 | |
Property, plant and equipment, net | 0 | 0 | |
Intangible and other assets, net | 0 | 0 | |
Total assets associated with discontinued operations | 3 | 5 | |
Accounts payable | 0 | 0 | |
Accrued liabilities | 66 | 59 | |
Billings on uncompleted contracts in excess of costs and estimated earnings | 0 | 0 | |
Total current liabilities associated with discontinued operations | 66 | 59 | |
Other long-term liabilities | 0 | 1 | |
Total liabilities associated with discontinued operations | 66 | 60 | |
Belleli EPC | Exit of Business | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash | 0 | 0 | |
Accounts receivable | 10,991 | 14,770 | |
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,745 | 7,786 | |
Other current assets | 186 | 1,190 | |
Total current assets associated with discontinued operations | 12,922 | 23,746 | |
Property, plant and equipment, net | 522 | 1,054 | |
Intangible and other assets, net | 1,780 | 2,646 | |
Total assets associated with discontinued operations | 15,224 | 27,446 | |
Accounts payable | 4,015 | 9,253 | |
Accrued liabilities | 9,346 | 15,617 | |
Billings on uncompleted contracts in excess of costs and estimated earnings | 2,551 | 7,042 | |
Total current liabilities associated with discontinued operations | 15,912 | 31,912 | |
Other long-term liabilities | 6,301 | 6,527 | |
Total liabilities associated with discontinued operations | $ 22,213 | $ 38,439 |
Inventory, Net - Schedule of In
Inventory, Net - Schedule of Inventory, Net of Reserves (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Composition of Inventory net of reserves | |||
Parts and supplies | $ 88,437 | $ 79,803 | |
Work in progress | 48,079 | 21,853 | |
Finished goods | 5,330 | 6,253 | |
Inventory, net | $ 141,846 | $ 107,785 | $ 107,909 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment, net (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | |
Property, Plant and Equipment | |||||
Property, plant and equipment, gross | $ 1,930,360 | $ 1,846,150 | $ 1,930,360 | ||
Accumulated depreciation | (1,069,363) | (1,023,871) | (1,069,363) | ||
Property, plant and equipment, net | 860,997 | 822,279 | 860,997 | $ 820,250 | |
Depreciation, period increase | $ 2,400 | $ 7,500 | |||
Increase in diluted net income (in usd per share) | $ 0.07 | $ 0.21 | |||
Compression equipment, facilities and other fleet assets | |||||
Property, Plant and Equipment | |||||
Property, plant and equipment, gross | $ 1,650,356 | 1,577,052 | $ 1,650,356 | ||
Land and buildings | |||||
Property, Plant and Equipment | |||||
Property, plant and equipment, gross | 100,857 | 96,463 | 100,857 | ||
Transportation and shop equipment | |||||
Property, Plant and Equipment | |||||
Property, plant and equipment, gross | 82,525 | 82,240 | 82,525 | ||
Other | |||||
Property, Plant and Equipment | |||||
Property, plant and equipment, gross | $ 96,622 | $ 90,395 | $ 96,622 | ||
Service Life | Compression equipment | |||||
Property, Plant and Equipment | |||||
Change in accounting estimate, useful life | 23 years | 30 years | |||
Salvage Value | Compression equipment | |||||
Property, Plant and Equipment | |||||
Change in accounting estimate, salvage value | 15.00% | 20.00% |
Sale of PEQ Assets (Details)
Sale of PEQ Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Long Lived Asset Impairments [Line Items] | ||
Loss on sale of business | $ 1,714 | $ 111 |
Assets Held for Sale | Products Sales Business | ||
Long Lived Asset Impairments [Line Items] | ||
Loss on sale of business | $ 1,700 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Total debt | $ 419,117 | $ 368,921 | |
Less: Amounts due within one year | (449) | (449) | |
Long-term debt | 418,668 | $ 368,472 | 368,472 |
Other debt | |||
Debt Instrument [Line Items] | |||
Total debt | 800 | 1,171 | |
Revolving credit facility due November 2020 | |||
Debt Instrument [Line Items] | |||
Total debt | 50,000 | 0 | |
8.125% senior unsecured notes due 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Total debt | 375,000 | 375,000 | |
Unamortized deferred financing costs | $ (6,683) | $ (7,250) | |
Stated interest rate | 8.125% |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility and Term Loan (Narrative) (Details) - USD ($) | Oct. 09, 2018 | Apr. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | ||||
Amortization of deferred financing costs | $ 2,014,000 | $ 4,044,000 | ||
Credit Agreement | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity under restated credit agreement | 680,000,000 | |||
Outstanding borrowings | 50,000,000 | |||
Outstanding letters of credit | 58,200,000 | |||
Undrawn capacity under revolving credit facility | $ 571,800,000 | |||
Credit Agreement | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Repayments of Lines of Credit | $ 232,800,000 | |||
Amortization of deferred financing costs | $ 1,700,000 | |||
Subsequent Event | Amended Credit Agreement | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity under restated credit agreement | $ 700,000,000 | |||
Subsequent Event | Federal Funds Rate | Amended Credit Agreement | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 0.50% | |||
Subsequent Event | LIBOR | Amended Credit Agreement | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 1.00% | |||
Subsequent Event | Minimum | LIBOR and EURIBOR | Amended Credit Agreement | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 1.75% | |||
Subsequent Event | Minimum | Base Rate | Amended Credit Agreement | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 0.75% | |||
Subsequent Event | Maximum | LIBOR and EURIBOR | Amended Credit Agreement | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 2.75% | |||
Subsequent Event | Maximum | Base Rate | Amended Credit Agreement | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 1.75% |
Debt - 8.125% Senior Notes Due
Debt - 8.125% Senior Notes Due May 2025 (Narrative) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Apr. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Instrument [Line Items] | |||
Payment to subsidiary of Archrock | $ 0 | $ 44,720,000 | |
Payments of Debt Issuance Costs | $ 92,000 | 7,911,000 | |
Senior unsecured notes | 8.125% senior unsecured notes due 2025 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 8.125% | ||
Archrock | |||
Debt Instrument [Line Items] | |||
Payment to subsidiary of Archrock | $ 19,700,000 | ||
EESLP And EES Finance Corp. | Senior unsecured notes | 8.125% senior unsecured notes due 2025 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount of senior unsecured notes | $ 375,000,000 | ||
Subsidiaries | EESLP And EES Finance Corp. | Senior unsecured notes | 8.125% senior unsecured notes due 2025 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 8.125% | ||
Aggregate principal amount of senior unsecured notes | $ 375,000,000 | ||
Payments of Debt Issuance Costs | 7,900,000 | ||
Subsidiaries | EESLP And EES Finance Corp. | Archrock | Credit Agreement | |||
Debt Instrument [Line Items] | |||
Payment to subsidiary of Archrock | $ 25,000,000 | ||
Exterran Corporation | EESLP And EES Finance Corp. | Subsidiaries | |||
Debt Instrument [Line Items] | |||
Ownership percentage by parent | 100.00% |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring basis $ in Thousands | Sep. 30, 2018USD ($) |
Settlement period | |
Valuation of our interest rate swaps and impaired assets | |
Fair value measurement input | 8 |
Discount rate | |
Valuation of our interest rate swaps and impaired assets | |
Fair value measurement input | 0.052 |
(Level 1) | |
Valuation of our interest rate swaps and impaired assets | |
Impaired long-lived assets | $ 0 |
Impaired assets - assets held for sale | 0 |
Long-term note receivable | 0 |
(Level 2) | |
Valuation of our interest rate swaps and impaired assets | |
Impaired long-lived assets | 0 |
Impaired assets - assets held for sale | 0 |
Long-term note receivable | 0 |
(Level 3) | |
Valuation of our interest rate swaps and impaired assets | |
Impaired long-lived assets | 550 |
Impaired assets - assets held for sale | 21,026 |
Long-term note receivable | $ 14,573 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Senior Notes - 8.125% senior unsecured notes due 2025 - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Reported Value Measurement | ||
Valuation of our interest rate swaps and impaired assets | ||
Long-term debt, fair value | $ 375 | $ 375 |
Estimate of Fair Value Measurement | ||
Valuation of our interest rate swaps and impaired assets | ||
Long-term debt, fair value | $ 392 | $ 404 |
Long-Lived Asset Impairment - N
Long-Lived Asset Impairment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Contract Operations | ||
Long-Lived Asset Impairment | ||
Long-lived asset impairment charge | $ 2.1 | $ 2.1 |
Held-for-sale | Products Sales Business | ||
Long-Lived Asset Impairment | ||
Long-lived asset impairment charge | $ 1.8 |
Restatement Related Charges (_3
Restatement Related Charges (Recoveries), Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restatement Charges [Abstract] | ||||
External costs associated with the current SEC investigation and remediation activities related to the restatement | $ 300 | $ 2,000 | $ 900 | $ 5,800 |
Restatement Charges [Line Items] | ||||
Recoveries from Archrock | $ (605) | $ 0 | $ (1,220) | $ (2,801) |
Restatement Related Charges (_4
Restatement Related Charges (Recoveries), Net - Summary of Changes to Accrued Liability Balance Related to Restatement Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restatement Related Charges | ||||
Beginning balance | $ 579 | $ 2,212 | ||
Additions for costs expensed, net | $ (342) | $ 1,997 | (318) | 3,011 |
Reductions for payments, net | (105) | (4,281) | ||
Ending balance | $ 156 | $ 942 | $ 156 | $ 942 |
Restatement Related Charges (_5
Restatement Related Charges (Recoveries), Net - Summary of the Components of Charges Included in Restatement Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restatement Charges [Abstract] | ||||
External accounting costs | $ 0 | $ 317 | $ 0 | $ 1,071 |
External legal costs | 0 | 1,409 | 533 | 4,101 |
Other | 263 | 271 | 369 | 640 |
Recoveries from Archrock | (605) | 0 | (1,220) | (2,801) |
Total restatement related charges (recoveries), net | $ (342) | $ 1,997 | $ (318) | $ 3,011 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 264 | $ 417 | $ 1,686 | $ 3,035 |
Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 33 | 206 | 1,389 | 2,100 |
Retention awards to certain employees | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 0 | 189 | 0 | 442 |
Relocation Plan | Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 300 | 1,700 | ||
Accrued liability | 1,000 | 1,000 | ||
Additional charges expected | $ 1,200 | $ 1,200 | ||
Spin-off | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 200 | 400 | ||
Cost Reduction Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 200 | $ 2,600 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Summary of the Components of Charges Included in Restructuring and Other Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 264 | $ 417 | $ 1,686 | $ 3,035 |
Retention awards to certain employees | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 0 | 189 | 0 | 442 |
Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 33 | 206 | 1,389 | 2,100 |
Relocation costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 231 | 0 | 297 | 0 |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 0 | $ 22 | $ 0 | $ 493 |
Provision for Income Taxes - Ad
Provision for Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Examination [Line Items] | ||||
Argentina income tax due to foreign exchange rate movement | $ 5.1 | $ 10.8 | ||
Tax Special Regularization Program (The PERT Program) Pursuant to Brazil Provisional measure No. 783 | Secretariat of the Federal Revenue Bureau of Brazil | ||||
Income Tax Examination [Line Items] | ||||
Income tax benefit | $ 2.9 | $ 2.9 | ||
Penalties incurred | 0.4 | 0.4 | ||
Interest expense | $ 0.1 | 0.1 | ||
Tax Regularization Program (The PRT Program) Pursuant to Brazil Provisional measure No. 766 | Secretariat of the Federal Revenue Bureau of Brazil | ||||
Income Tax Examination [Line Items] | ||||
Income tax benefit | 11.9 | |||
Penalties incurred | 1.5 | |||
Interest expense | $ 2.4 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options granted (in shares) | shares | 0 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period of stock options | 3 years |
Stock options | First anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
Stock options | Second anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
Stock options | Third anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
Stock options | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period of stock options | 10 years |
Restricted stock, restricted stock units and performance units for common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated unrecognized compensation cost | $ | $ 20.4 |
Weighted-average vesting period | 1 year 7 months 24 days |
Restricted stock, restricted stock units and performance units for common stock | First anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
Restricted stock, restricted stock units and performance units for common stock | Second anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
Restricted stock, restricted stock units and performance units for common stock | Third anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period of stock options | 3 years |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period of stock options | 2 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock, Restricted Stock Units and Performance Units for Common Stock (Details) - Restricted stock, restricted stock units and performance units for common stock shares in Thousands | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Shares | |
Non-vested awards at the beginning of the period (in shares) | shares | 1,165 |
Granted (in shares) | shares | 571 |
Vested (in shares) | shares | (474) |
Cancelled (in shares) | shares | (95) |
Non-vested awards at the end of the period (in shares) | shares | 1,167 |
Weighted Average Grant-Date Fair Value Per Share | |
Non-vested awards at the beginning of the period (in dollars per share) | $ / shares | $ 23.93 |
Granted (in dollars per share) | $ / shares | 26.29 |
Vested (in dollars per share) | $ / shares | 23.50 |
Cancelled (in dollars per share) | $ / shares | 25.15 |
Non-vested awards at the end of the period (in dollars per share) | $ / shares | $ 25.16 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator for basic and diluted net income per common share: | ||||
Income (loss) from continuing operations | $ 3,196 | $ 1,214 | $ 5,665 | $ (7,939) |
Income from discontinued operations, net of tax | 2,173 | 2,139 | 5,116 | 35,157 |
Less: Net income attributable to participating securities | (140) | (92) | (284) | 0 |
Net income — used in basic and diluted net income per common share | $ 5,229 | $ 3,261 | $ 10,497 | $ 27,218 |
Weighted average common shares outstanding including participating securities | ||||
Weighted average common shares outstanding including participating securities (in shares) | 36,430 | 36,036 | 36,361 | 35,969 |
Less: Weighted average participating securities outstanding (in shares) | (950) | (990) | (959) | (1,032) |
Weighted average common shares outstanding — used in basic net income per common share (in shares) | 35,480 | 35,046 | 35,402 | 34,937 |
Net dilutive potential common shares issuable: | ||||
On exercise of options and vesting of restricted stock units (in shares) | 64 | 74 | 67 | |
Weighted average common shares outstanding — used in diluted net income per common share (in shares) | 35,544 | 35,120 | 35,469 | 34,937 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.15 | $ 0.09 | $ 0.30 | $ 0.78 |
Diluted (in dollars per share) | $ 0.15 | $ 0.09 | $ 0.30 | $ 0.78 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Schedule of Antidilutive Shares Excluded from Computation of Net Income Per Common Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net dilutive potential common shares issuable (in shares) | 35 | 39 | 35 | 127 |
On exercise of options where exercise price is greater than average market value | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net dilutive potential common shares issuable (in shares) | 35 | 39 | 35 | 45 |
On exercise of options and vesting of restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net dilutive potential common shares issuable (in shares) | 0 | 0 | 0 | 82 |
Commitments and Contingencies -
Commitments and Contingencies - Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Business acquisition, contingent consideration | |||
Cash transferred to Archrock | $ 0 | $ 44,720 | |
Amount accrued for the outcomes of non-income-based tax audits | 3,200 | $ 2,800 | |
EESLP | |||
Business acquisition, contingent consideration | |||
Remaining principal amount due from PDVSA Gas | 17,000 | ||
Archrock | |||
Business acquisition, contingent consideration | |||
Cash transferred to Archrock | $ 19,700 | ||
Joint Ventures | |||
Business acquisition, contingent consideration | |||
Remaining principal amount due from PDVSA Gas | $ 4,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Indemnifications (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Tax Attributable to Business after Spin-off | |
Loss Contingencies [Line Items] | |
Liability for certain taxes not clearly attributable to the business (as a percent) | 50.00% |
Reportable Segments - Narrative
Reportable Segments - Narrative (Details) | 9 Months Ended |
Sep. 30, 2018segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Reportable Segments - Schedule
Reportable Segments - Schedule of Revenues and Other Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 334,849 | $ 314,479 | $ 1,028,703 | $ 877,605 |
Gross margin | 96,737 | 87,317 | 288,133 | 253,502 |
Contract Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 84,828 | 92,561 | 272,808 | 279,947 |
Gross margin | 57,060 | 58,921 | 177,283 | 180,818 |
Aftermarket Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 29,993 | 29,799 | 88,631 | 76,567 |
Gross margin | 7,855 | 7,896 | 23,890 | 20,774 |
Product Sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 220,028 | 192,119 | 667,264 | 521,091 |
Gross margin | $ 31,822 | $ 20,500 | $ 86,960 | $ 51,910 |
Reportable Segments - Reconcili
Reportable Segments - Reconciliation of Income (Loss) Before Income Taxes to Total Gross Margin (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting [Abstract] | ||||
Income before income taxes | $ 11,150 | $ 9,577 | $ 28,733 | $ 11,674 |
Selling, general and administrative | 45,103 | 42,880 | 133,727 | 131,855 |
Depreciation and amortization | 31,108 | 27,010 | 92,321 | 78,110 |
Long-lived asset impairment | 2,054 | 0 | 3,858 | 0 |
Restatement related charges (recoveries), net | (342) | 1,997 | (318) | 3,011 |
Restructuring and other charges | 264 | 417 | 1,686 | 3,035 |
Interest expense | 7,685 | 7,860 | 21,787 | 27,329 |
Other (income) expense, net | (285) | (2,424) | 6,339 | (1,512) |
Total gross margin | $ 96,737 | $ 87,317 | $ 288,133 | $ 253,502 |
Supplemental Guarantor Financ_3
Supplemental Guarantor Financial Information - Narrative (Details) - USD ($) | Sep. 30, 2018 | Apr. 30, 2017 |
8.125% senior unsecured notes due 2025 | Senior Notes | EESLP And EES Finance Corp. | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Debt instrument, face amount | $ 375,000,000 | |
Subsidiaries | 8.125% senior unsecured notes due 2025 | Senior Notes | EESLP And EES Finance Corp. | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Debt instrument, face amount | $ 375,000,000 | |
Exterran Corporation | EESLP And EES Finance Corp. | Subsidiaries | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Ownership percentage by parent | 100.00% |
Supplemental Guarantor Financ_4
Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
ASSETS | |||
Cash and cash equivalents | $ 36,966 | $ 49,145 | $ 49,145 |
Restricted cash | 546 | 546 | 546 |
Accounts receivable, net | 243,441 | 261,251 | 266,052 |
Inventory, net | 141,846 | 107,785 | 107,909 |
Contract assets | 71,841 | 50,824 | 0 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | 0 | 40,695 |
Intercompany receivables | 0 | 0 | |
Other current assets | 40,482 | 38,528 | 38,707 |
Current assets held for sale | 0 | 15,761 | 15,761 |
Current assets associated with discontinued operations | 12,925 | 23,751 | 23,751 |
Total current assets | 548,047 | 547,591 | 542,566 |
Property, plant and equipment, net | 860,997 | 820,250 | 822,279 |
Investment in affiliates | 0 | 0 | |
Deferred income taxes | 13,731 | 10,954 | 10,550 |
Intangible and other assets, net | 87,415 | 95,253 | 76,980 |
Long-term assets held for sale | 0 | 4,732 | 4,732 |
Long-term assets associated with discontinued operations | 2,302 | 3,700 | 3,700 |
Total assets | 1,512,492 | 1,482,480 | 1,460,807 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Accounts payable, trade | 166,358 | 148,744 | 148,744 |
Accrued liabilities | 127,854 | 130,380 | 114,336 |
Contract liabilities | 89,187 | 112,244 | 0 |
Deferred revenue | 0 | 0 | 23,902 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 0 | 0 | 89,565 |
Intercompany payables | 0 | 0 | |
Current liabilities associated with discontinued operations | 15,978 | 31,971 | 31,971 |
Total current liabilities | 399,377 | 423,339 | 408,518 |
Long-term debt | 418,668 | 368,472 | 368,472 |
Deferred income taxes | 6,356 | 7,838 | 9,746 |
Long-term contract liabilities | 89,736 | 89,004 | 0 |
Long-term deferred revenue | 0 | 0 | 92,485 |
Other long-term liabilities | 38,948 | 42,534 | 20,272 |
Long-term liabilities associated with discontinued operations | 6,301 | 6,528 | 6,528 |
Total liabilities | 959,386 | 937,715 | 906,021 |
Total Equity | 553,106 | 544,765 | 554,786 |
Total liabilities and equity | 1,512,492 | $ 1,482,480 | 1,460,807 |
Reportable Legal Entities | Parent Guarantor | |||
ASSETS | |||
Cash and cash equivalents | 6 | 397 | |
Restricted cash | 0 | 0 | |
Accounts receivable, net | 0 | 0 | |
Inventory, net | 0 | 0 | |
Contract assets | 0 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | ||
Intercompany receivables | 0 | 0 | |
Other current assets | 0 | 0 | |
Current assets held for sale | 0 | ||
Current assets associated with discontinued operations | 0 | 0 | |
Total current assets | 6 | 397 | |
Property, plant and equipment, net | 0 | 0 | |
Investment in affiliates | 554,384 | 555,735 | |
Deferred income taxes | 0 | 0 | |
Intangible and other assets, net | 0 | 0 | |
Long-term assets held for sale | 0 | ||
Long-term assets associated with discontinued operations | 0 | 0 | |
Total assets | 554,390 | 556,132 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Accounts payable, trade | 0 | 0 | |
Accrued liabilities | 0 | 57 | |
Contract liabilities | 0 | ||
Deferred revenue | 0 | ||
Billings on uncompleted contracts in excess of costs and estimated earnings | 0 | ||
Intercompany payables | 1,284 | 1,289 | |
Current liabilities associated with discontinued operations | 0 | 0 | |
Total current liabilities | 1,284 | 1,346 | |
Long-term debt | 0 | 0 | |
Deferred income taxes | 0 | 0 | |
Long-term contract liabilities | 0 | ||
Long-term deferred revenue | 0 | ||
Other long-term liabilities | 0 | 0 | |
Long-term liabilities associated with discontinued operations | 0 | 0 | |
Total liabilities | 1,284 | 1,346 | |
Total Equity | 553,106 | 554,786 | |
Total liabilities and equity | 554,390 | 556,132 | |
Reportable Legal Entities | Issuers | |||
ASSETS | |||
Cash and cash equivalents | 6,756 | 24,195 | |
Restricted cash | 0 | 0 | |
Accounts receivable, net | 88,840 | 123,362 | |
Inventory, net | 79,158 | 50,528 | |
Contract assets | 45,095 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 33,439 | ||
Intercompany receivables | 158,454 | 158,296 | |
Other current assets | 9,139 | 6,095 | |
Current assets held for sale | 15,761 | ||
Current assets associated with discontinued operations | 0 | 0 | |
Total current assets | 387,442 | 411,676 | |
Property, plant and equipment, net | 285,530 | 288,670 | |
Investment in affiliates | 865,011 | 831,097 | |
Deferred income taxes | 5,575 | 5,452 | |
Intangible and other assets, net | 29,046 | 12,218 | |
Long-term assets held for sale | 4,732 | ||
Long-term assets associated with discontinued operations | 0 | 0 | |
Total assets | 1,572,604 | 1,553,845 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Accounts payable, trade | 131,794 | 115,273 | |
Accrued liabilities | 49,621 | 54,724 | |
Contract liabilities | 48,253 | ||
Deferred revenue | 2,162 | ||
Billings on uncompleted contracts in excess of costs and estimated earnings | 89,002 | ||
Intercompany payables | 348,837 | 359,766 | |
Current liabilities associated with discontinued operations | 0 | 0 | |
Total current liabilities | 578,505 | 620,927 | |
Long-term debt | 418,668 | 368,472 | |
Deferred income taxes | 0 | 0 | |
Long-term contract liabilities | 11,047 | ||
Long-term deferred revenue | 629 | ||
Other long-term liabilities | 10,000 | 8,082 | |
Long-term liabilities associated with discontinued operations | 0 | 0 | |
Total liabilities | 1,018,220 | 998,110 | |
Total Equity | 554,384 | 555,735 | |
Total liabilities and equity | 1,572,604 | 1,553,845 | |
Reportable Legal Entities | Non- Guarantor Subsidiaries | |||
ASSETS | |||
Cash and cash equivalents | 30,204 | 24,553 | |
Restricted cash | 546 | 546 | |
Accounts receivable, net | 154,601 | 142,690 | |
Inventory, net | 62,688 | 57,381 | |
Contract assets | 26,746 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 7,256 | ||
Intercompany receivables | 348,837 | 359,766 | |
Other current assets | 31,343 | 32,612 | |
Current assets held for sale | 0 | ||
Current assets associated with discontinued operations | 12,925 | 23,751 | |
Total current assets | 667,890 | 648,555 | |
Property, plant and equipment, net | 575,467 | 533,609 | |
Investment in affiliates | (310,627) | (275,362) | |
Deferred income taxes | 8,156 | 5,098 | |
Intangible and other assets, net | 58,369 | 64,762 | |
Long-term assets held for sale | 0 | ||
Long-term assets associated with discontinued operations | 2,302 | 3,700 | |
Total assets | 1,001,557 | 980,362 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Accounts payable, trade | 34,564 | 33,471 | |
Accrued liabilities | 78,233 | 59,555 | |
Contract liabilities | 40,934 | ||
Deferred revenue | 21,740 | ||
Billings on uncompleted contracts in excess of costs and estimated earnings | 563 | ||
Intercompany payables | 157,170 | 157,007 | |
Current liabilities associated with discontinued operations | 15,978 | 31,971 | |
Total current liabilities | 326,879 | 304,307 | |
Long-term debt | 0 | 0 | |
Deferred income taxes | 6,356 | 9,746 | |
Long-term contract liabilities | 78,689 | ||
Long-term deferred revenue | 91,856 | ||
Other long-term liabilities | 28,948 | 12,190 | |
Long-term liabilities associated with discontinued operations | 6,301 | 6,528 | |
Total liabilities | 447,173 | 424,627 | |
Total Equity | 554,384 | 555,735 | |
Total liabilities and equity | 1,001,557 | 980,362 | |
Eliminations | |||
ASSETS | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Accounts receivable, net | 0 | 0 | |
Inventory, net | 0 | 0 | |
Contract assets | 0 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | ||
Intercompany receivables | (507,291) | (518,062) | |
Other current assets | 0 | 0 | |
Current assets held for sale | 0 | ||
Current assets associated with discontinued operations | 0 | 0 | |
Total current assets | (507,291) | (518,062) | |
Property, plant and equipment, net | 0 | 0 | |
Investment in affiliates | (1,108,768) | (1,111,470) | |
Deferred income taxes | 0 | 0 | |
Intangible and other assets, net | 0 | 0 | |
Long-term assets held for sale | 0 | ||
Long-term assets associated with discontinued operations | 0 | 0 | |
Total assets | (1,616,059) | (1,629,532) | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Accounts payable, trade | 0 | 0 | |
Accrued liabilities | 0 | 0 | |
Contract liabilities | 0 | ||
Deferred revenue | 0 | ||
Billings on uncompleted contracts in excess of costs and estimated earnings | 0 | ||
Intercompany payables | (507,291) | (518,062) | |
Current liabilities associated with discontinued operations | 0 | 0 | |
Total current liabilities | (507,291) | (518,062) | |
Long-term debt | 0 | 0 | |
Deferred income taxes | 0 | 0 | |
Long-term contract liabilities | 0 | ||
Long-term deferred revenue | 0 | ||
Other long-term liabilities | 0 | 0 | |
Long-term liabilities associated with discontinued operations | 0 | 0 | |
Total liabilities | (507,291) | (518,062) | |
Total Equity | (1,108,768) | (1,111,470) | |
Total liabilities and equity | $ (1,616,059) | $ (1,629,532) |
Supplemental Guarantor Financ_5
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | $ 334,849 | $ 314,479 | $ 1,028,703 | $ 877,605 |
Cost of sales (excluding depreciation and amortization expense) | 238,112 | 227,162 | 740,570 | 624,103 |
Selling, general and administrative | 45,103 | 42,880 | 133,727 | 131,855 |
Depreciation and amortization | 31,108 | 27,010 | 92,321 | 78,110 |
Long-lived asset impairment | 2,054 | 0 | 3,858 | 0 |
Restatement related charges (recoveries), net | (342) | 1,997 | (318) | 3,011 |
Restructuring and other charges | 264 | 417 | 1,686 | 3,035 |
Interest expense | 7,685 | 7,860 | 21,787 | 27,329 |
Intercompany charges, net | 0 | 0 | 0 | 0 |
Equity in (income) loss of affiliates | 0 | 0 | 0 | 0 |
Other (income) expense, net | (285) | (2,424) | 6,339 | (1,512) |
Income before income taxes | 11,150 | 9,577 | 28,733 | 11,674 |
Provision for income taxes | 7,954 | 8,363 | 23,068 | 19,613 |
Income (loss) from continuing operations | 3,196 | 1,214 | 5,665 | (7,939) |
Income from discontinued operations, net of tax | 2,173 | 2,139 | 5,116 | 35,157 |
Net income (loss) | 5,369 | 3,353 | 10,781 | 27,218 |
Other comprehensive loss | (2,673) | 1,310 | (10,039) | 284 |
Comprehensive income | 2,696 | 4,663 | 742 | 27,502 |
Reportable Legal Entities | Parent Guarantor | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Cost of sales (excluding depreciation and amortization expense) | 0 | 0 | 0 | 0 |
Selling, general and administrative | 285 | 310 | 920 | 2,011 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Long-lived asset impairment | 0 | 0 | ||
Restatement related charges (recoveries), net | 0 | 0 | 0 | 0 |
Restructuring and other charges | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Intercompany charges, net | 0 | 0 | 0 | 0 |
Equity in (income) loss of affiliates | (5,654) | (3,666) | (11,548) | (29,232) |
Other (income) expense, net | 0 | 3 | (153) | 3 |
Income before income taxes | 5,369 | 3,353 | 10,781 | 27,218 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | 5,369 | 3,353 | 10,781 | 27,218 |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | 5,369 | 3,353 | 10,781 | 27,218 |
Other comprehensive loss | (2,673) | 1,310 | (10,039) | 284 |
Comprehensive income | 2,696 | 4,663 | 742 | 27,502 |
Reportable Legal Entities | Issuers | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 223,429 | 228,424 | 722,078 | 606,536 |
Cost of sales (excluding depreciation and amortization expense) | 183,640 | 195,828 | 600,393 | 516,934 |
Selling, general and administrative | 23,035 | 20,297 | 65,152 | 63,690 |
Depreciation and amortization | 9,015 | 8,872 | 27,030 | 25,612 |
Long-lived asset impairment | 1,277 | 3,081 | ||
Restatement related charges (recoveries), net | (342) | 1,861 | (318) | 2,890 |
Restructuring and other charges | 0 | 310 | 0 | 1,989 |
Interest expense | 8,941 | 7,797 | 21,438 | 25,069 |
Intercompany charges, net | 1,880 | 1,479 | 4,953 | 5,132 |
Equity in (income) loss of affiliates | (4,186) | (16,463) | (13,817) | (77,932) |
Other (income) expense, net | (477) | (321) | (1,846) | (2,328) |
Income before income taxes | 646 | 8,764 | 16,012 | 45,480 |
Provision for income taxes | 12,234 | 979 | 8,127 | 4,140 |
Income (loss) from continuing operations | (11,588) | 7,785 | 7,885 | 41,340 |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | (11,588) | 7,785 | 7,885 | 41,340 |
Other comprehensive loss | (2,673) | 1,310 | (10,039) | 284 |
Comprehensive income | (14,261) | 9,095 | (2,154) | 41,624 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 129,517 | 125,020 | 369,209 | 366,685 |
Cost of sales (excluding depreciation and amortization expense) | 72,569 | 70,299 | 202,761 | 202,785 |
Selling, general and administrative | 21,783 | 22,273 | 67,655 | 66,154 |
Depreciation and amortization | 22,093 | 18,138 | 65,291 | 52,498 |
Long-lived asset impairment | 777 | 777 | ||
Restatement related charges (recoveries), net | 0 | 136 | 0 | 121 |
Restructuring and other charges | 264 | 107 | 1,686 | 1,046 |
Interest expense | (1,256) | 63 | 349 | 2,260 |
Intercompany charges, net | (1,880) | (1,479) | (4,953) | (5,132) |
Equity in (income) loss of affiliates | 15,774 | 8,678 | 5,932 | 36,591 |
Other (income) expense, net | 192 | (2,106) | 8,338 | 813 |
Income before income taxes | (799) | 8,911 | 21,373 | 9,549 |
Provision for income taxes | 12,962 | 3,264 | 18,604 | 3,364 |
Income (loss) from continuing operations | (13,761) | 5,647 | 2,769 | 6,185 |
Income from discontinued operations, net of tax | 2,173 | 2,139 | 5,116 | 35,157 |
Net income (loss) | (11,588) | 7,786 | 7,885 | 41,342 |
Other comprehensive loss | (2,673) | 1,310 | (10,039) | 284 |
Comprehensive income | (14,261) | 9,096 | (2,154) | 41,626 |
Eliminations | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | (18,097) | (38,965) | (62,584) | (95,616) |
Cost of sales (excluding depreciation and amortization expense) | (18,097) | (38,965) | (62,584) | (95,616) |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Long-lived asset impairment | 0 | 0 | ||
Restatement related charges (recoveries), net | 0 | 0 | 0 | 0 |
Restructuring and other charges | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Intercompany charges, net | 0 | 0 | 0 | 0 |
Equity in (income) loss of affiliates | (5,934) | 11,451 | 19,433 | 70,573 |
Other (income) expense, net | 0 | 0 | 0 | 0 |
Income before income taxes | 5,934 | (11,451) | (19,433) | (70,573) |
Provision for income taxes | (17,242) | 4,120 | (3,663) | 12,109 |
Income (loss) from continuing operations | 23,176 | (15,571) | (15,770) | (82,682) |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | 23,176 | (15,571) | (15,770) | (82,682) |
Other comprehensive loss | 5,346 | (2,620) | 20,078 | (568) |
Comprehensive income | $ 28,522 | $ (18,191) | $ 4,308 | $ (83,250) |
Supplemental Guarantor Financ_6
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net cash provided by (used in) continuing operations | $ 88,793 | $ 121,234 |
Net cash provided by discontinued operations | 1,144 | (1,937) |
Net cash provided by operating activities | 89,937 | 119,297 |
Cash flows from investing activities: | ||
Capital expenditures | (152,226) | (79,122) |
Proceeds from sale of property, plant and equipment | 2,430 | 6,555 |
Proceeds from sale of business | 5,000 | 894 |
Intercompany transfers | 0 | 0 |
Net cash used in continuing operations | (144,796) | (71,673) |
Net cash provided by discontinued operations | 66 | 19,354 |
Net cash used in investing activities | (144,730) | (52,319) |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 415,000 | 488,000 |
Repayments of debt | (365,371) | (463,940) |
Intercompany transfers | 0 | 0 |
Cash transfer to Archrock, Inc. | 0 | (44,720) |
Payments for debt issuance costs | (92) | (7,911) |
Proceeds from stock options exercised | 548 | 684 |
Purchases of treasury stock | (3,780) | (3,319) |
Net cash provided by (used in) financing activities | 46,305 | (31,206) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,691) | (373) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (12,179) | 35,399 |
Cash, cash equivalents and restricted cash at beginning of period | 49,691 | 36,349 |
Cash, cash equivalents and restricted cash at end of period | 37,512 | 71,748 |
Reportable Legal Entities | Parent Guarantor | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) continuing operations | (386) | (391) |
Net cash provided by discontinued operations | 0 | 0 |
Net cash provided by operating activities | (386) | (391) |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Proceeds from sale of property, plant and equipment | 0 | 0 |
Proceeds from sale of business | 0 | 0 |
Intercompany transfers | 0 | 0 |
Net cash used in continuing operations | 0 | 0 |
Net cash provided by discontinued operations | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Intercompany transfers | (5) | 684 |
Cash transfer to Archrock, Inc. | 0 | |
Payments for debt issuance costs | 0 | 0 |
Proceeds from stock options exercised | 0 | 0 |
Purchases of treasury stock | 0 | 0 |
Net cash provided by (used in) financing activities | (5) | 684 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (391) | 293 |
Cash, cash equivalents and restricted cash at beginning of period | 397 | 131 |
Cash, cash equivalents and restricted cash at end of period | 6 | 424 |
Reportable Legal Entities | Issuers | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) continuing operations | (7,525) | 50,993 |
Net cash provided by discontinued operations | 0 | 0 |
Net cash provided by operating activities | (7,525) | 50,993 |
Cash flows from investing activities: | ||
Capital expenditures | (54,713) | (31,582) |
Proceeds from sale of property, plant and equipment | 51 | 1,988 |
Proceeds from sale of business | 5,000 | 894 |
Intercompany transfers | 5 | (684) |
Net cash used in continuing operations | (49,657) | (29,384) |
Net cash provided by discontinued operations | 0 | 0 |
Net cash used in investing activities | (49,657) | (29,384) |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 415,000 | 488,000 |
Repayments of debt | (365,371) | (463,940) |
Intercompany transfers | (6,562) | 43,042 |
Cash transfer to Archrock, Inc. | (44,720) | |
Payments for debt issuance costs | (92) | (7,911) |
Proceeds from stock options exercised | 548 | 684 |
Purchases of treasury stock | (3,780) | (3,319) |
Net cash provided by (used in) financing activities | 39,743 | 11,836 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (17,439) | 33,445 |
Cash, cash equivalents and restricted cash at beginning of period | 24,195 | 16,645 |
Cash, cash equivalents and restricted cash at end of period | 6,756 | 50,090 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) continuing operations | 96,704 | 70,632 |
Net cash provided by discontinued operations | 1,144 | (1,937) |
Net cash provided by operating activities | 97,848 | 68,695 |
Cash flows from investing activities: | ||
Capital expenditures | (97,513) | (47,540) |
Proceeds from sale of property, plant and equipment | 2,379 | 4,567 |
Proceeds from sale of business | 0 | 0 |
Intercompany transfers | 6,562 | (43,042) |
Net cash used in continuing operations | (88,572) | (86,015) |
Net cash provided by discontinued operations | 66 | 19,354 |
Net cash used in investing activities | (88,506) | (66,661) |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Intercompany transfers | 0 | 0 |
Cash transfer to Archrock, Inc. | 0 | |
Payments for debt issuance costs | 0 | 0 |
Proceeds from stock options exercised | 0 | 0 |
Purchases of treasury stock | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,691) | (373) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 5,651 | 1,661 |
Cash, cash equivalents and restricted cash at beginning of period | 25,099 | 19,573 |
Cash, cash equivalents and restricted cash at end of period | 30,750 | 21,234 |
Eliminations | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) continuing operations | 0 | 0 |
Net cash provided by discontinued operations | 0 | 0 |
Net cash provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Proceeds from sale of property, plant and equipment | 0 | 0 |
Proceeds from sale of business | 0 | 0 |
Intercompany transfers | (6,567) | 43,726 |
Net cash used in continuing operations | (6,567) | 43,726 |
Net cash provided by discontinued operations | 0 | 0 |
Net cash used in investing activities | (6,567) | 43,726 |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Intercompany transfers | 6,567 | (43,726) |
Cash transfer to Archrock, Inc. | 0 | |
Payments for debt issuance costs | 0 | 0 |
Proceeds from stock options exercised | 0 | 0 |
Purchases of treasury stock | 0 | 0 |
Net cash provided by (used in) financing activities | 6,567 | (43,726) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | $ 0 | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) - Revolving credit facility - USD ($) | Oct. 09, 2018 | Sep. 30, 2018 |
Credit Agreement | ||
Subsequent Event [Line Items] | ||
Borrowing capacity under restated credit agreement | $ 680,000,000 | |
Amended Credit Agreement | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Borrowing capacity under restated credit agreement | $ 700,000,000 |