Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 07, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38441 | |
Entity Registrant Name | Apergy Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-3066826 | |
Entity Address, Address Line One | 2445 Technology Forest Blvd, | |
Entity Address, Address Line Two | Building 4, 12th Floor | |
Entity Address, City or Town | The Woodlands, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77381 | |
City Area Code | (281) | |
Local Phone Number | 403-5772 | |
Entity Information, Former Legal or Registered Name | Not Applicable | |
Security 12b Title | Common stock, $0.01 par value | |
Trading Symbol | APY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 77,505,318 | |
Entity Central Index Key | 0001723089 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total revenue | $ 261,434 | $ 300,494 |
Cost of goods and services | 179,095 | 197,483 |
Gross profit | 82,339 | 103,011 |
Selling, general and administrative expense | 78,143 | 64,129 |
Goodwill impairment | 616,271 | 0 |
Long-lived asset impairment | 40,980 | 1,746 |
Interest expense, net | 9,039 | 10,527 |
Other (income) expense, net | (1,633) | 1,102 |
Income (loss) before income taxes | (660,461) | 25,507 |
Provision for (benefit from) income taxes | (27,006) | 5,569 |
Net income (loss) | (633,455) | 19,938 |
Net income attributable to noncontrolling interest | 273 | 282 |
Net income (loss) attributable to Apergy | $ (633,728) | $ 19,656 |
Basic (in dollars per share) | $ (8.18) | $ 0.25 |
Diluted (in dollars per share) | $ (8.18) | $ 0.25 |
Weighted-average number of shares outstanding, basic (in shares) | 77,477 | 77,363 |
Weighted-average number of shares outstanding, diluted (in shares) | 77,477 | 77,640 |
Product revenue | ||
Revenue | $ 230,882 | $ 269,342 |
Other revenue | ||
Revenue | $ 30,552 | $ 31,152 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (633,455) | $ 19,938 | |
Foreign currency translation adjustments [Abstract] | |||
Foreign currency translation adjustments (1) | [1] | (11,052) | 1,090 |
Pension and other post-retirement benefit plans [Abstract] | |||
Net actuarial loss arising during period | 0 | (323) | |
Reclassification adjustment for net actuarial loss included in net income | 99 | 67 | |
Reclassification adjustment for settlement losses included in net income | 0 | 355 | |
Total pension and other post-retirement benefit plans (2) | [2] | 99 | 99 |
Other comprehensive income (loss) | (10,953) | 1,189 | |
Comprehensive income (loss) | (644,408) | 21,127 | |
Comprehensive income attributable to noncontrolling interest | 273 | 282 | |
Comprehensive income (loss) attributable to Apergy | $ (644,681) | $ 20,845 | |
[1] | Net of income tax (expense) benefit of nil for the three months ended March 31, 2020 and 2019. | ||
[2] | Net of income tax (expense) benefit of $33 and $38 for the three months ended March 31, 2020 and 2019, respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax | $ 0 | $ 0 |
Pension and other post-retirement benefit plans, tax | $ 33,000 | $ 38,000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 53,636 | $ 35,290 |
Receivables, net of allowances of $11,279 in 2020 and $8,072 in 2019 | 218,903 | 219,874 |
Inventories, net | 206,948 | 211,342 |
Prepaid expenses and other current assets | 25,016 | 26,934 |
Total current assets | 504,503 | 493,440 |
Property, plant and equipment, net of accumulated depreciation of $431,760 in 2020 and $426,722 in 2019 | 235,114 | 248,181 |
Goodwill | 291,718 | 911,113 |
Intangible assets, net | 183,926 | 238,707 |
Other non-current assets | 29,981 | 31,384 |
Total assets | 1,245,242 | 1,922,825 |
Liabilities and Equity | ||
Accounts payable | 118,791 | 120,291 |
Accrued compensation and employee benefits | 30,770 | 38,470 |
Current portion of finance lease liabilities | 4,696 | 4,845 |
Accrued expenses and other current liabilities | 44,495 | 36,075 |
Total current liabilities | 198,752 | 199,681 |
Long-term debt | 559,532 | 559,821 |
Deferred income taxes | 55,059 | 84,060 |
Other long-term liabilities | 39,605 | 43,049 |
Total liabilities | 852,948 | 886,611 |
Stockholders’ equity: | ||
Common stock (2.5 billion shares authorized, $0.01 par value) 77.5 million shares issued and outstanding in 2020 and 2019 | 775 | 775 |
Capital in excess of par value of common stock | 971,235 | 969,174 |
Retained earnings (accumulated deficit) | (528,253) | 107,048 |
Accumulated other comprehensive loss | (54,990) | (44,037) |
Total stockholders’ equity | 388,767 | 1,032,960 |
Noncontrolling interest | 3,527 | 3,254 |
Total equity | 392,294 | 1,036,214 |
Total liabilities and equity | $ 1,245,242 | $ 1,922,825 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 11,279 | $ 8,072 |
Accumulated depreciation on property, plant, and equipment | $ 431,760 | $ 426,722 |
Par value of common stock (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock, shares issued (in shares) | 77,500,000 | 77,500,000 |
Common stock, shares outstanding (in shares) | 77,500,000 | 77,500,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock, Par Value | Common Stock, Capital in excess of par value | Retained Earnings (Accum. Deficit) | Accum. Other Comp. Loss | Non-controlling Interest | Cumulative Effect Adjustment | Cumulative Effect AdjustmentRetained Earnings (Accum. Deficit) |
Common stock, shares outstanding, beginning of period (in shares) at Dec. 31, 2018 | 77,353 | |||||||
Beginning balance at Dec. 31, 2018 | $ 975,983 | $ 774 | $ 960,773 | $ 54,884 | $ (42,906) | $ 2,458 | $ 0 | |
Net income (loss) | 19,938 | 19,656 | 282 | |||||
Other comprehensive income (loss) | 1,189 | 1,189 | ||||||
Stock-based compensation (in shares) | 39 | |||||||
Stock-based compensation | 2,285 | 2,285 | ||||||
Taxes withheld on issuance of stock-based awards | (719) | (719) | ||||||
Other | 14 | 14 | ||||||
Common stock, shares outstanding, end of period (in shares) at Mar. 31, 2019 | 77,392 | |||||||
Ending balance at Mar. 31, 2019 | $ 998,690 | $ 774 | 962,339 | 74,540 | (41,717) | 2,754 | ||
Common stock, shares outstanding, beginning of period (in shares) at Dec. 31, 2019 | 77,500 | 77,460 | ||||||
Beginning balance at Dec. 31, 2019 | $ 1,036,214 | $ 775 | 969,174 | 107,048 | (44,037) | 3,254 | $ (1,573) | $ (1,573) |
Net income (loss) | (633,455) | (633,728) | 273 | |||||
Other comprehensive income (loss) | (10,953) | (10,953) | ||||||
Stock-based compensation (in shares) | 44 | |||||||
Stock-based compensation | 2,429 | 2,429 | ||||||
Taxes withheld on issuance of stock-based awards | $ (368) | (368) | ||||||
Common stock, shares outstanding, end of period (in shares) at Mar. 31, 2020 | 77,500 | 77,504 | ||||||
Ending balance at Mar. 31, 2020 | $ 392,294 | $ 775 | $ 971,235 | $ (528,253) | $ (54,990) | $ 3,527 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash provided (required) by operating activities: | ||
Net income (loss) | $ (633,455) | $ 19,938 |
Adjustments to reconcile net income to net cash provided (required) by operating activities: | ||
Depreciation | 16,970 | 17,071 |
Amortization | 12,862 | 12,844 |
Stock-based compensation | 2,429 | 2,285 |
Loss (gain) on sale of fixed assets | (386) | 12 |
Loss on goodwill and long-lived asset impairment | 657,251 | 1,746 |
Provision for losses on accounts receivable | 2,427 | (117) |
Amortization of deferred loan costs and accretion of discount | 708 | 648 |
Deferred income taxes | (28,417) | (5,856) |
Employee benefit plan expense | 383 | 770 |
Other | 349 | 109 |
Changes in operating assets and liabilities (net of effects of foreign exchange): | ||
Receivables | (6,740) | (7,260) |
Inventories | 6,587 | 664 |
Prepaid expenses and other current assets | 4,129 | 4,096 |
Accounts payable | 3,068 | (8,160) |
Accrued compensation and employee benefits | (9,799) | (10,584) |
Accrued expenses and other liabilities | 12,153 | 11,576 |
Leased assets | (7,972) | (20,501) |
Other | (3,325) | 629 |
Net cash provided by operating activities | 29,222 | 19,910 |
Cash provided (required) by investing activities: | ||
Capital expenditures | (7,467) | (9,718) |
Proceeds from sale of fixed assets | 721 | 2,475 |
Net cash required by investing activities | (6,746) | (7,243) |
Cash provided (required) by financing activities: | ||
Payment of debt issue costs | (1,284) | 0 |
Repayment of long-term debt | 0 | (25,000) |
Payment of finance lease obligations | (1,492) | (1,234) |
Payments related to taxes withheld on stock-based compensation | (368) | 0 |
Net cash required by financing activities | (3,144) | (26,234) |
Effect of exchange rate changes on cash and cash equivalents | (986) | 89 |
Net increase (decrease) in cash and cash equivalents | 18,346 | (13,478) |
Cash and cash equivalents at beginning of period | 35,290 | 41,832 |
Cash and cash equivalents at end of period | $ 53,636 | $ 28,354 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Apergy Corporation (“Apergy”) is a leading provider of highly engineered equipment and technologies that help companies drill for and produce oil and gas safely and efficiently around the world. Our products provide efficient functioning throughout the lifecycle of a well—from drilling to completion to production. We report our results of operations in the following reporting segments: Production & Automation Technologies and Drilling Technologies. Our Production & Automation Technologies segment offerings consist of artificial lift equipment and solutions, including rod pumping systems, electric submersible pump systems, progressive cavity pumps and drive systems and plunger lifts, as well as a full automation and digital offerings consisting of equipment, software and Industrial Internet of Things solutions for downhole monitoring, wellsite productivity enhancement and asset integrity management. Our Drilling Technologies segment offerings provide market leading polycrystalline diamond cutters and bearings that result in cost effective and efficient drilling. Separation and Distribution On May 9, 2018, Apergy became an independent, publicly traded company as a result of the distribution by Dover Corporation (“Dover”) of 100% of the outstanding common stock of Apergy to Dover’s stockholders. Dover’s Board of Directors approved the distribution on April 18, 2018 and Apergy’s Registration Statement on Form 10 was declared effective by the U.S. Securities and Exchange Commission (“SEC”) on April 19, 2018. On May 9, 2018, Dover’s stockholders of record as of the close of business on the record date of April 30, 2018 received one share of Apergy stock for every two shares of Dover stock held at the close of business on the record date (the “Separation”). Following the Separation, Dover retained no ownership interest in Apergy. Apergy’s common stock began “regular-way” trading on the New York Stock Exchange (“NYSE”) under the “APY” symbol on May 9, 2018. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Apergy have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial information. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted. Therefore, these financial statements should be read in conjunction with the audited consolidated financial statements, and notes thereto, which are included in our Annual Report on Form 10-K for the year ended December 31, 2019 . The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from our estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments unless otherwise specified) necessary for a fair statement of our financial condition and results of operations as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these financial statements may not be representative of the results that may be expected for the year ending December 31, 2020 . Noncontrolling Interest For the quarters ended March 31, 2020 , and 2019 , we did not declare or pay distributions to the noncontrolling interest holder in Apergy Middle East Services LLC, a subsidiary in the Sultanate of Oman. We have a commission arrangement with our noncontrolling interest for 5% of certain annual product sales. Revisions and Reclassifications We revised our previously issued financial statements for the three months ended March 31, 2019 , for the correction of immaterial errors related to: (i) the assessing and recording of liabilities for state sales tax and associated penalties and interest, primarily resulting in an understatement of our selling, general, and administrative expense and interest expense for the three months ended March 31, 2019 ; and (ii) previously recorded amounts including, but not limited to, the write-off of inventory and leased assets, timing of revenue recognition, and revenue classification, that the Company concluded were immaterial to our previously filed condensed consolidated financial statements. See the following table for the impact of the corrections on our condensed consolidated financial statements: Condensed Consolidated Statement of Income Three Months Ended March 31, 2019 (in thousands, except per share data) As Reported Adjustments As Revised Product revenue $ 269,534 $ (192 ) $ 269,342 Other revenue (1) 32,157 (1,005 ) 31,152 Total revenue 301,691 (1,197 ) 300,494 Cost of goods and services 196,142 1,341 197,483 Gross profit 105,549 (2,538 ) 103,011 Selling, general and administrative expense 63,601 528 64,129 Long-lived asset impairment (2) 1,746 — 1,746 Interest expense, net 10,474 53 10,527 Other expense, net 1,090 12 1,102 Income before income taxes 28,638 (3,131 ) 25,507 Provision for (benefit from) income taxes 6,069 (500 ) 5,569 Net income 22,569 (2,631 ) 19,938 Net income attributable to noncontrolling interest 282 — 282 Net income attributable to Apergy $ 22,287 $ (2,631 ) $ 19,656 Earnings (loss) per share attributable to Apergy: Basic $ 0.29 $ (0.04 ) $ 0.25 Diluted $ 0.29 $ (0.04 ) $ 0.25 Comprehensive income $ 23,758 $ (2,631 ) $ 21,127 Comprehensive income attributable to Apergy $ 23,476 $ (2,631 ) $ 20,845 _______________________ (1) Includes “Service revenue” and “Lease and other revenue” as reported in the condensed consolidated statements of income for the three months ended March 31, 2019. (2) Long-lived asset impairment has been reclassified from selling, general, and administrative expense to conform the with our current period presentation of long-lived asset impairment on the condensed consolidated statements of income (loss). Condensed Consolidated Statement of Changes in Stockholders’ Equity March 31, 2019 (in thousands) As Reported Adjustments As Revised Stockholders’ Equity: Capital in excess of par value of common stock $ 966,938 $ (4,599 ) $ 962,339 Retained earnings 76,454 (1,914 ) 74,540 Total equity 1,005,203 (6,513 ) 998,690 (in thousands) As Reported Adjustments As Revised Total equity at December 31, 2018 $ 981,527 $ (5,544 ) $ 975,983 Cumulative effect of accounting changes (1,662 ) 1,662 — Net income 22,569 (2,631 ) 19,938 Total equity at March 31, 2019 1,005,203 (6,513 ) 998,690 Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2019 (in thousands) As Reported Adjustments As Revised Cash provided (required) by operating activities: Net income $ 22,569 $ (2,631 ) $ 19,938 Adjustments to reconcile net income to net cash provided (required) by operating activities: Depreciation 17,080 (9 ) 17,071 Deferred income taxes (5,366 ) (490 ) (5,856 ) Loss (gain) on sale of fixed assets (1) 12 — 12 Provision for losses on accounts receivable (1) (117 ) — (117 ) Amortization of deferred loan costs and accretion of discount (1) 648 — 648 Other 131 (22 ) 109 Changes in operating assets and liabilities (net of effects of foreign exchange): Receivables (8,462 ) 1,202 (7,260 ) Inventories (2,229 ) 2,893 664 Accounts payable (6,279 ) (1,881 ) (8,160 ) Accrued compensation and employee benefits (12,827 ) 2,243 (10,584 ) Accrued expenses and other liabilities 13,849 (2,273 ) 11,576 Leased assets (21,460 ) 959 (20,501 ) Other 620 9 629 _______________________ (1) Each of these amounts were included within “Other” on the condensed consolidated statements of cash flows reported for the three months ended March 31, 2019. These amounts have been reclassified consistent with the presentation in the current reporting period. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Recently Adopted Accounting Standards Effective January 1, 2020, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” This update amends the impairment model to utilize an expected credit loss methodology in place of the incurred credit loss methodology for financial instruments. We applied the provisions of this ASU to our financial instruments, mostly consisting of trade receivables, as of January 1, 2020. We utilized the modified retrospective method of adoption; therefore, prior period amounts have not been adjusted and continue to be reflected in accordance with our historical accounting policies. As of January 1, 2020, we recorded a cumulative adjustment to retained earnings of $1.6 million , net of $0.5 million of income tax benefit. Our exposure to credit losses is primarily the result of product sales to our customers, resulting in trade receivables with payment terms generally ranging from 30 days to 90 days. We manage credit risk on trade receivables by transacting only with what management believes are financially secure customers. Our expected loss allowance for accounts receivable is estimated utilizing a single loss rate, as our customer base generally has similar collectability risk characteristics. We develop our loss rate estimate based on historical collection experience, and current economic and market conditions. Specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The following table provides a rollforward of our allowance for credit losses balance: (in thousands) Allowance for Credit Losses December 31, 2019 $ 8,072 Impact of adoption on January 1, 2020 2,042 Provision for expected credit losses 2,427 Accounts written off (1,207 ) Foreign currency translation (55 ) March 31, 2020 $ 11,279 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES Inventories consisted of the following: (in thousands) March 31, 2020 December 31, 2019 Raw materials $ 47,542 $ 50,099 Work in progress 13,438 13,325 Finished goods 170,370 175,774 231,350 239,198 LIFO and valuation adjustments (24,402 ) (27,856 ) Inventories, net $ 206,948 $ 211,342 |
Asset Impairments
Asset Impairments | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Asset Impairments | ASSET IMPAIRMENTS During the first quarter of 2020, certain unprecedented events caused the rapid decline of several market indicators in the oil and gas industry. On March 6, 2020, Russia and the Organization of Petroleum Exporting Countries (“OPEC”) producers were unable to agree on the need to maintain and extend compliance with previously agreed upon production cuts. Consequently, Russia and Saudi Arabia each announced that they would reduce the prices at which they make oil available to the market and raise their crude oil production, leading to a price war and a substantial surplus in the supply of oil. The price per barrel of WTI crude oil decreased from $41.14 on March 6, 2020 to $20.51 on March 31, 2020, a decline of 50% . Compounding this situation, demand for oil and gas commodities declined significantly as the world was impacted by the COVID-19 outbreak, which the World Health Organization declared as a pandemic on March 11, 2020. Since that time, various jurisdictions have attempted to implement or have implemented measures designed to contain the spread of the virus, including travel restrictions, stay-at-home or shelter-in-place orders and shutdowns of non-essential business, reducing the overall demand for oil and gas commodities. In response to lower oil prices and deteriorating market conditions, oil producers announced reductions of previously budgeted capital expenditures. The reduction in rig count levels in the first quarter of 2020 provided further evidence that oil producers were committed to reduced levels of capital investment in drilling especially in North America, which has led to reduced levels of demand for capital equipment and pricing pressures. Additionally, Apergy’s common stock price declined from an average closing price of $24.62 during February 2020 to an average closing price of $8.26 during March 2020. On March 23, 2020 Apergy’s common stock price ended trading at $3.02 , the lowest end of day stock price since Apergy’s stock began “regular-way” trading on the NYSE on May 9, 2018. We believe our market capitalization has been negatively impacted as a result of these market conditions and overall impact to our industry as described above. Management determined that these events and their related impact to future revenues and cash flows constituted a triggering event in the first quarter of 2020, requiring us to perform a recoverability test of our long-lived assets and an interim impairment assessment of goodwill as of March 31, 2020. Goodwill Impairment The carrying amount of goodwill, including changes therein, by reporting segment is below: (in thousands) Production & Automation Technologies Drilling Technologies Total December 31, 2019 $ 809,977 $ 101,136 $ 911,113 Impairment (616,271 ) — (616,271 ) Foreign currency translation (3,124 ) — (3,124 ) March 31, 2020 $ 190,582 $ 101,136 $ 291,718 Goodwill is not subject to amortization but is tested for impairment on an annual basis or more frequently if impairment indicators arise. We performed a quantitative analysis for each of our reporting units to determine the existence of goodwill impairment and the amount of the impairment loss. In performing the quantitative assessment, we estimated the fair value of each of our reporting units using a combination of the income and market approaches, which determined that the fair values were less than the respective carrying values for our Artificial Lift and Automation reporting units. Our income-based valuation method determines the present value of estimated future cash flows to estimate the fair value of a reporting unit. Significant assumptions used in estimating our reporting unit fair values include: (i) annual revenue growth rates; (ii) operating margins; (iii) risk-adjusted discount rate; and (iv) terminal value determined using a long-term growth rate. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to the reporting unit. Given the unprecedented uncertainty of both short-term and long-term market conditions, we utilized a weighted-average projection for estimated future cash flows that consists of three estimated future cash flows scenarios with the following weightings: (i) low case scenario with a 40% weighting, (ii) base case scenario with a 40% weighting, and (iii) high case scenario with a 20% weighting. Under the market approach, we estimate a fair value based on comparable companies' market multiples of revenues and earnings before interest, taxes, depreciation and amortization and factor in a control premium. Finally, we compare our estimates of fair values to our March 31, 2020 total public market capitalization and assess an implied control premium based on the 20-day average of our common stock. The reporting unit carrying values were adjusted based on the long-lived asset impairment assessment noted below. Financial and credit market volatility directly impacts our fair value measurement through the weighted average cost of capital used to determine a discount rate. During times of volatility, significant judgment must be applied to determine whether credit market changes are a short-term or long-term trend. We utilized discount rates of 14.5% and 16.5% for our Artificial Lift and Automation reporting units, respectively. During the first quarter of 2020, we recorded a $616.3 million impairment charge to goodwill, consisting of $539.2 million and $77.1 million in our Artificial Lift reporting unit and our Automation reporting unit, respectively. Both reporting units are within our Production & Automation Technologies reportable segment. Long-lived Asset Impairment Long-lived assets, which include property, plant and equipment, right of use assets, and identified intangible assets, comprise a significant amount of our total assets. The Company makes judgments and estimates in conjunction with the carrying value of these assets, including amounts to be capitalized, depreciation and amortization methods and estimated useful lives. The negative market indicators described above, as well as the results of the previously mentioned fair value determinations of certain of our reporting units, were triggering events indicating that certain of our long-lived tangible and intangible assets may be impaired. We performed recoverability tests on our asset groups as of March 31, 2020, which indicated that long-lived assets associated with two of our asset groups within Production and Automation Technologies were not recoverable as the aggregate amount of estimated undiscounted cash flows of these asset groups was determined to be below their respective carrying values. We estimate the fair value of these intangible and fixed assets using an income approach that requires us to make long-term forecasts of our future revenues and costs related to the assets subject to review. These forecasts require assumptions about demand for our products and services, future market conditions and technological developments. The forecasts are dependent upon assumptions including those regarding oil prices and the general outlook for the global oil and gas industry, among other factors. Financial and credit market volatility directly impacts our fair value measurement through our income forecast. Changes to these assumptions, including, but not limited to: variability of spot and futures prices for crude oil; sustained declines in worldwide rig counts below current analysts’ forecasts; significant deterioration of external financing for our customers; higher risk premiums or higher cost of equity; or any other significant adverse economic news could require a provision for impairment. Accordingly, the estimated fair value of each of these asset groups was below their respective carrying value and as a result, we recorded a long-lived asset impairment charge of $41.0 million in the first quarter of 2020, consisting of $40.4 million to customer relationships and $0.6 million to trademarks. The components of our definite- and indefinite-lived intangible assets were as follows: March 31, 2020 December 31, 2019 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets: Customer relationships (1) $ 442,696 $ 287,833 $ 154,863 $ 560,316 $ 353,189 $ 207,127 Trademarks (1) 34,045 24,671 9,374 35,695 24,830 10,865 Patents 37,798 27,053 10,745 38,436 26,838 11,598 Unpatented technologies 13,700 9,878 3,822 13,700 9,811 3,889 Drawings and manuals 2,478 1,678 800 2,558 1,758 800 Other 5,199 4,477 722 5,332 4,504 828 535,916 355,590 180,326 656,037 420,930 235,107 Indefinite-lived intangible assets: Trademarks 3,600 — 3,600 3,600 — 3,600 Total $ 539,516 $ 355,590 $ 183,926 $ 659,637 $ 420,930 $ 238,707 _______________________ (1) Includes impairment of customer relationship and trademark intangible assets of $40.4 million and $0.6 million |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Long-term debt consisted of the following: (in thousands) March 31, 2020 December 31, 2019 Revolving credit facility $ — $ — Term loan facility 265,000 265,000 6.375% Senior Notes due 2026 300,000 300,000 Finance lease obligations 4,079 4,530 Total 569,079 569,530 Net unamortized discounts and issuance costs (9,547 ) (9,709 ) Total long-term debt $ 559,532 $ 559,821 On February 14, 2020, Apergy amended its credit agreement, which (i) provides for the incurrence of an additional $150 million of revolving commitments under the amended credit agreement, upon consummation of the planned merger with ChampionX (the “Merger”), (ii) permits the consummation of the Merger and the incurrence of a senior secured term loan facility in an aggregate amount up to $537 million by ChampionX, and (iii) continues to provide that all obligations under the amended agreement continue to be guaranteed by certain of Apergy’s wholly owned U.S. subsidiaries. Subsequent event In preparation for settling transaction expenses associated with the Merger, and to increase liquidity during current market conditions, we increased our cash balance by drawing $125.0 million on our revolver on April 24, 2020, leaving $118.9 million |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENT AND CONTINGENCIES Guarantees and Indemnifications We have provided indemnities in connection with sales of certain businesses and assets, including representations and warranties, covenants and related indemnities for environmental health and safety, tax and employment matters. We do not have any material liabilities recorded for these indemnifications and are not aware of any claims or other information that would give rise to material payments under such indemnities. In connection with the Separation, we entered into agreements with Dover that govern the treatment between Dover and us for certain indemnification matters and litigation responsibility. 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 to place financial responsibility for the obligations and liabilities of Dover’s business with Dover. The separation and distribution agreement also establishes procedures for handling claims subject to indemnification and related matters. In addition, pursuant to the tax matters agreement, we have agreed to indemnify Dover and its affiliates against any and all tax-related liabilities incurred by them relating to the Separation and/or certain related transactions to the extent caused by an acquisition of Apergy stock or assets or by any other action or failure to act undertaken by Apergy or its affiliates. Pursuant to the provisions of the tax matters agreement with Dover, we recorded an indemnification liability of $3.4 million as of December 31, 2019, with respect to certain liabilities related to tax audits for the 2012-2016 tax years. We received notification in February 2020 that the tax audits and related assessments were completed, resulting in a final settlement amount of $3.0 million , which we have recorded as an indemnification liability as of March 31, 2020 . As of March 31, 2020 and December 31, 2019 , we had $15.2 million and $15.7 million , respectively, of outstanding letters of credit, surety bonds and guarantees which expire at various dates through 2025. These financial instruments are primarily maintained as security for insurance, warranty and other performance obligations. Generally, we would only be liable for the amount of these letters of credit and surety bonds in the event of default in the performance of our obligations, the probability of which we believe is remote. Litigation and Environmental Matters We are involved in various pending or potential legal actions in the ordinary course of our business. These proceedings primarily involve claims by private parties alleging injury arising out of use of our products, patent infringement, employment matters, and commercial disputes. We review the probable outcome of such proceedings, the costs and expenses reasonably expected to be incurred and accrued to-date, and the availability and extent of insurance coverage. We accrue a liability for legal matters that are probable and estimable, and as of March 31, 2020 and December 31, 2019 , these liabilities were not material. Management is unable to predict the ultimate outcome of these actions because of the inherent uncertainty of litigation. However, management believes the most probable, ultimate resolution of these matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. Prior to the Separation, groundwater contamination was discovered at the Norris Sucker Rods plant site located in Tulsa, Oklahoma ("Norris"). Initial remedial efforts were undertaken at the time of discovery of the contamination and Norris has since coordinated monitoring and remediation with the Oklahoma Department of Environmental Quality ("ODEQ"). As part of the ongoing long-term remediation process, Norris contracted an engineering and consulting firm to develop a range of possible additional remedial alternatives in order to accelerate the remediation process and associated cost estimates for the work. In October 2019, we received the firm’s preliminary remedial alternatives for consideration. Now that we have such recommendations, we have begun discussions with ODEQ regarding our proposed long-term remediation plan. The plan is subject to ODEQ’s review, input, and approval. Because we have not yet finalized a plan for further remediation at the site and discussions with ODEQ remain ongoing, we cannot fully anticipate the timing, outcome or possible impact of such further remedial activities, financial or otherwise. As a result of the recommendations in the report, we accrued liabilities for these remediation efforts of approximately $2.0 million as of December 31, 2019 . Liabilities could increase in the future at such time as we ultimately reach agreement with ODEQ on our remediation plan and such liabilities become probable and can be reasonably estimated, however, there have been no changes to our estimated liability as of March 31, 2020 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss —Accumulated other comprehensive loss consisted of the following: (in thousands) Foreign Currency Translation Defined Pension and Other Post-Retirement Benefits Accumulated Other Comprehensive Loss December 31, 2018 $ (36,146 ) $ (6,760 ) $ (42,906 ) Other comprehensive income (loss) before reclassifications, net of tax 1,090 (323 ) 767 Reclassification adjustment for net losses included in net income, net of tax — 422 422 Other comprehensive income, net of tax 1,090 99 1,189 March 31, 2019 $ (35,056 ) $ (6,661 ) $ (41,717 ) (in thousands) Foreign Currency Translation Defined Pension and Other Post-Retirement Benefits Accumulated Other Comprehensive Loss December 31, 2019 $ (35,210 ) $ (8,827 ) $ (44,037 ) Other comprehensive loss before reclassifications, net of tax (11,052 ) — (11,052 ) Reclassification adjustment for net losses included in net income, net of tax — 99 99 Other comprehensive income (loss), net of tax (11,052 ) 99 (10,953 ) March 31, 2020 $ (46,262 ) $ (8,728 ) $ (54,990 ) Reclassifications from accumulated other comprehensive loss —Reclassification adjustments from accumulated other comprehensive loss to net income (loss) related to defined pension and other post-retirement benefits consisted of the following: Three Months Ended March 31, Affected line items on the condensed consolidated statements of income (in thousands) 2020 2019 Amortization of actuarial loss and other $ 132 $ 91 Other (income) expense, net Settlement loss — 486 Other (income) expense, net Total before tax 132 577 Income (loss) before income taxes Tax benefit (33 ) (155 ) Provision for (benefit from) income taxes $ 99 $ 422 Net income (loss) |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE A reconciliation of the number of shares used for the basic and diluted earnings (loss) per share calculation was as follows: Three Months Ended March 31, (in thousands, except per share data) 2020 2019 Net income (loss) attributable to Apergy $ (633,728 ) $ 19,656 Weighted-average number of shares outstanding 77,477 77,363 Dilutive effect of stock-based compensation (1) — 277 Total shares and dilutive securities 77,477 77,640 Basic earnings (loss) per share attributable to Apergy $ (8.18 ) $ 0.25 Diluted earnings (loss) per share attributable to Apergy $ (8.18 ) $ 0.25 _______________________ (1) See Note 12—Equity And Cash Incentive Programs for share-based awards outstanding as of March 31, 2020, all of which were excluded from diluted weighted-average number of shares outstanding during the three months ended March 31, 2020 due to their anti-dilutive impact. We excluded 0.3 million shares from our calculation as of March 31, 2019 due to their anti-dilutive impact. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Disaggregation of Revenue Revenue disaggregated by revenue type was as follows: Three Months Ended March 31, (in thousands) 2020 2019 Product revenue $ 230,882 $ 269,342 Service revenue 18,487 20,421 Lease and other revenue 12,065 10,731 Total revenue $ 261,434 $ 300,494 Revenue disaggregated by end market in each of our reporting segments was as follows: Three Months Ended March 31, (in thousands) 2020 2019 Drilling Technologies $ 55,955 $ 77,535 Production & Automation Technologies: Artificial lift 159,400 170,907 Digital products 33,922 31,290 Other production equipment 12,259 21,005 Intra-segment eliminations (102 ) (243 ) 205,479 222,959 Total revenue $ 261,434 $ 300,494 Revenue disaggregated by geography was as follows: Three Months Ended March 31, (in thousands) 2020 2019 United States $ 195,370 $ 231,358 Canada 17,952 18,915 Middle East 12,363 13,604 Europe 12,030 16,959 Australia 9,268 5,982 Latin America 7,582 7,722 Asia-Pacific 5,486 5,545 Other 1,383 409 Total revenue $ 261,434 $ 300,494 Revenue is attributed to regions based on the location of our direct customer, which in some instances is an intermediary and not necessarily the end user. Contract balances Contract assets and contract liabilities from contracts with customers were as follows: (in thousands) March 31, 2020 December 31, 2019 Contract assets $ 6 $ 285 Contract liabilities - current 9,393 6,148 |
Restructuring and Other Related
Restructuring and Other Related Charges | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | RESTRUCTURING AND OTHER RELATED CHARGES Restructuring and other related charges as classified in our condensed consolidated statements of income (loss) were as follows: Three Months Ended March 31, (in thousands) 2020 2019 Segment restructuring charges: Production & Automation Technologies $ 671 $ 410 Drilling Technologies 2,095 — Total $ 2,766 $ 410 Statements of Income (Loss) classification: Cost of goods and services $ 2,039 $ 331 Selling, general and administrative expense 727 79 Total $ 2,766 $ 410 Restructuring and other related charges during the three months ended March 31, 2020 were due to costs associated with employee severance and related benefits at our Production & Automation Technologies and Drilling Technologies segments. These programs were initiated to better align our costs and operations with current market conditions. The following table details our restructuring accrual activities during the three months ended March 31, 2020 : (in thousands) Restructuring Accrual Balance December 31, 2019 $ 130 Restructuring charges 2,766 Payments (516 ) Other, including foreign currency translation 117 March 31, 2020 $ 2,497 Our liability balance for restructuring and other exit activities at March 31, 2020 , reflects employee severance and related benefits initiated during the period. Additional programs may be initiated during 2020 with related restructuring charges. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES For the three months ended March 31, 2020 , we recorded a tax benefit of $27.0 million on a loss before income taxes of $660.5 million , resulting in an effective tax rate of 4.1% . The effective tax rate was primarily impacted by the tax effects of impairment of non-taxable goodwill of $560.1 million , recognized as a discrete item during the quarter. During the three months ended March 31, 2019 , we recorded income tax expense of $5.6 million on earnings before income tax of $25.5 million , resulting in an effective tax rate of 21.8% . On March 27, 2020, as part of the business stimulus package in response to the COVID-19 pandemic, the U.S. federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to provide relief to businesses impacted by the disruptions of the COVID-19 pandemic. The CARES Act provides the opportunity to utilize a five year carryback of net operating losses generated in years 2018 through 2020. Our effective tax rate was not materially impacted by the CARES Act for the three months ended March 31, 2020 ; however, as the carryback period is prior to the Separation we are continuing to evaluate the potential benefit to Apergy for future periods in connection with the tax matters agreement with Dover. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended | |||||||||||||||
Mar. 31, 2020 | ||||||||||||||||
Defined Benefit Plan [Abstract] | ||||||||||||||||
Employee Benefit Plans | <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">EQUITY AND CASH INCENTIVE PROGRAMS</font><font style="font-family:inherit;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Components of net periodic benefit cost were as follows:</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="16" rowspan="1"></td></tr><tr><td style="width:39%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:12%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:14%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:12%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:12%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Pensions</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Other post-retirement benefits</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Three Months Ended March 31, </font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Three Months Ended March 31, </font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">(in thousands)</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2020</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2019</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2020</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2019</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Service cost</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">224</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">194</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Interest cost</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">138</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">155</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">93</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">126</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Expected return on plan assets</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(212</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-right:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(190</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-right:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Amortization of prior service cost</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">8</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Amortization of actuarial loss</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">63</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">40</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">69</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">50</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Amortization of transition obligation</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">1</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Settlement loss</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">486</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Other</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font |
Equity and Cash Incentive Progr
Equity and Cash Incentive Program | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Equity and Cash Incentive Program | EQUITY AND CASH INCENTIVE PROGRAMS Stock-based compensation expense is reported within “Selling, general and administrative expense” in the condensed consolidated statements of income (loss). Stock-based compensation expense relating to all stock-based incentive plans was as follows: Three Months Ended March 31, (in thousands) 2020 2019 Stock-based compensation expense $ 2,429 $ 2,285 Tax benefit (599 ) (558 ) Stock-based compensation expense, net of tax $ 1,830 $ 1,727 A summary of activity relating to our share-based awards for the three months ended March 31, 2020 , was as follows: (in shares) Stock-Settled Appreciation Rights Performance Share Awards Restricted Stock Units Outstanding at January 1, 2020 422,361 174,726 440,048 Granted — — 164,513 Forfeited (1,758 ) (5,011 ) (12,657 ) Exercised / vested — — (62,740 ) Outstanding at March 31, 2020 420,603 169,715 529,164 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS We had no outstanding derivative contracts as of March 31, 2020 and December 31, 2019 . Other assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 , were not significant; thus, no fair value disclosures are presented. The fair value, based on Level 1 quoted market rates, of our Senior Notes was approximately $233.5 million at March 31, 2020 , as compared to the $300.0 million face value of the debt. The fair value, based on Level 2 quoted market rates, of our term loan facility was approximately $246.5 million at March 31, 2020 , as compared to the $265.0 million face value of the debt. The carrying amounts of cash and cash equivalents, trade receivables, accounts payable, as well as amounts included in other current assets and other current liabilities that meet the definition of financial instruments, approximate fair value due to their short-term nature. We consider the inputs for our long-lived asset and goodwill impairment calculations to be Level 3 inputs in the fair value hierarchy. See Note 4—Asset Impairments for further information. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We report our results of operations in the following reporting segments: Production & Automation Technologies and Drilling Technologies. Segment revenue and segment operating profit were as follows: Three Months Ended March 31, (in thousands) 2020 2019 Segment revenue: Production & Automation Technologies $ 205,479 $ 222,959 Drilling Technologies 55,955 77,535 Total revenue $ 261,434 $ 300,494 Income before income taxes: Segment operating profit: Production & Automation Technologies $ (648,591 ) $ 13,064 Drilling Technologies 11,359 26,806 Total segment operating profit (637,232 ) 39,870 Corporate expense and other (1) 14,190 3,836 Interest expense, net 9,039 10,527 Income before income taxes $ (660,461 ) $ 25,507 _______________________ (1) Corporate expense and other includes costs not directly attributable or allocated to our reporting segments such as corporate executive management and other administrative functions, and the results attributable to our noncontrolling interest. |
Cash Flow Information Cash Flow
Cash Flow Information Cash Flow Information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | CASH FLOW INFORMATION Supplemental cash flow information is as follows: Three Months Ended March 31, (in thousands) 2020 2019 Non-cash information: Finance lease additions $ 942 $ 1,326 Lease program Our ESP leased asset program is reported in our Production & Automation Technologies segment. At the time of purchase, assets are recorded to inventory and are transferred to property, plant, and equipment when a customer contracts for an asset under our lease program. During the three months ended March 31, 2020 and March 31, 2019 , we transferred $7.2 million and $19.8 million , respectively, of inventory into property, plant, and equipment as a result of assets entering our leased asset program. Expenditures for assets, having a useful life of greater than one year, that are expected to be placed into our lease asset program are reported in “Capital expenditures” in the investing section of our condensed consolidated statements of cash flows. During the three months ended March 31, 2020 and 2019 , such expenditures were estimated to be $1.4 million and $5.8 million , respectively. Expenditures for assets that are expected to be placed into our leased asset program and with a useful life of one year are reported in “Leased assets” in the operating section of our condensed consolidated statement of cash flows. The recovery of the carrying value from the sale of assets on lease is presented in “Leased assets” in the operating section of our condensed consolidated statements of cash flows. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Apergy have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial information. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted. Therefore, these financial statements should be read in conjunction with the audited consolidated financial statements, and notes thereto, which are included in our Annual Report on Form 10-K for the year ended December 31, 2019 . The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from our estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments unless otherwise specified) necessary for a fair statement of our financial condition and results of operations as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these financial statements may not be representative of the results that may be expected for the year ending December 31, 2020 . |
Revisions | Revisions and Reclassifications We revised our previously issued financial statements for the three months ended March 31, 2019 , for the correction of immaterial errors related to: (i) the assessing and recording of liabilities for state sales tax and associated penalties and interest, primarily resulting in an understatement of our selling, general, and administrative expense and interest expense for the three months ended March 31, 2019 ; and (ii) previously recorded amounts including, but not limited to, the write-off of inventory and leased assets, timing of revenue recognition, and revenue classification, that the Company concluded were immaterial to our previously filed condensed consolidated financial statements. See the following table for the impact of the corrections on our condensed consolidated financial statements: Condensed Consolidated Statement of Income Three Months Ended March 31, 2019 (in thousands, except per share data) As Reported Adjustments As Revised Product revenue $ 269,534 $ (192 ) $ 269,342 Other revenue (1) 32,157 (1,005 ) 31,152 Total revenue 301,691 (1,197 ) 300,494 Cost of goods and services 196,142 1,341 197,483 Gross profit 105,549 (2,538 ) 103,011 Selling, general and administrative expense 63,601 528 64,129 Long-lived asset impairment (2) 1,746 — 1,746 Interest expense, net 10,474 53 10,527 Other expense, net 1,090 12 1,102 Income before income taxes 28,638 (3,131 ) 25,507 Provision for (benefit from) income taxes 6,069 (500 ) 5,569 Net income 22,569 (2,631 ) 19,938 Net income attributable to noncontrolling interest 282 — 282 Net income attributable to Apergy $ 22,287 $ (2,631 ) $ 19,656 Earnings (loss) per share attributable to Apergy: Basic $ 0.29 $ (0.04 ) $ 0.25 Diluted $ 0.29 $ (0.04 ) $ 0.25 Comprehensive income $ 23,758 $ (2,631 ) $ 21,127 Comprehensive income attributable to Apergy $ 23,476 $ (2,631 ) $ 20,845 _______________________ (1) Includes “Service revenue” and “Lease and other revenue” as reported in the condensed consolidated statements of income for the three months ended March 31, 2019. (2) Long-lived asset impairment has been reclassified from selling, general, and administrative expense to conform the with our current period presentation of long-lived asset impairment on the condensed consolidated statements of income (loss). Condensed Consolidated Statement of Changes in Stockholders’ Equity March 31, 2019 (in thousands) As Reported Adjustments As Revised Stockholders’ Equity: Capital in excess of par value of common stock $ 966,938 $ (4,599 ) $ 962,339 Retained earnings 76,454 (1,914 ) 74,540 Total equity 1,005,203 (6,513 ) 998,690 (in thousands) As Reported Adjustments As Revised Total equity at December 31, 2018 $ 981,527 $ (5,544 ) $ 975,983 Cumulative effect of accounting changes (1,662 ) 1,662 — Net income 22,569 (2,631 ) 19,938 Total equity at March 31, 2019 1,005,203 (6,513 ) 998,690 Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2019 (in thousands) As Reported Adjustments As Revised Cash provided (required) by operating activities: Net income $ 22,569 $ (2,631 ) $ 19,938 Adjustments to reconcile net income to net cash provided (required) by operating activities: Depreciation 17,080 (9 ) 17,071 Deferred income taxes (5,366 ) (490 ) (5,856 ) Loss (gain) on sale of fixed assets (1) 12 — 12 Provision for losses on accounts receivable (1) (117 ) — (117 ) Amortization of deferred loan costs and accretion of discount (1) 648 — 648 Other 131 (22 ) 109 Changes in operating assets and liabilities (net of effects of foreign exchange): Receivables (8,462 ) 1,202 (7,260 ) Inventories (2,229 ) 2,893 664 Accounts payable (6,279 ) (1,881 ) (8,160 ) Accrued compensation and employee benefits (12,827 ) 2,243 (10,584 ) Accrued expenses and other liabilities 13,849 (2,273 ) 11,576 Leased assets (21,460 ) 959 (20,501 ) Other 620 9 629 _______________________ (1) Each of these amounts were included within “Other” on the condensed consolidated statements of cash flows reported for the three months ended March 31, 2019. These amounts have been reclassified consistent with the presentation in the current reporting period. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Effective January 1, 2020, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” This update amends the impairment model to utilize an expected credit loss methodology in place of the incurred credit loss methodology for financial instruments. We applied the provisions of this ASU to our financial instruments, mostly consisting of trade receivables, as of January 1, 2020. We utilized the modified retrospective method of adoption; therefore, prior period amounts have not been adjusted and continue to be reflected in accordance with our historical accounting policies. As of January 1, 2020, we recorded a cumulative adjustment to retained earnings of $1.6 million , net of $0.5 million of income tax benefit. Our exposure to credit losses is primarily the result of product sales to our customers, resulting in trade receivables with payment terms generally ranging from 30 days to 90 days. We manage credit risk on trade receivables by transacting only with what management believes are financially secure customers. Our expected loss allowance for accounts receivable is estimated utilizing a single loss rate, as our customer base generally has similar collectability risk characteristics. We develop our loss rate estimate based on historical collection experience, and current economic and market conditions. Specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Revisions to Previously Issued Financial Statements | See the following table for the impact of the corrections on our condensed consolidated financial statements: Condensed Consolidated Statement of Income Three Months Ended March 31, 2019 (in thousands, except per share data) As Reported Adjustments As Revised Product revenue $ 269,534 $ (192 ) $ 269,342 Other revenue (1) 32,157 (1,005 ) 31,152 Total revenue 301,691 (1,197 ) 300,494 Cost of goods and services 196,142 1,341 197,483 Gross profit 105,549 (2,538 ) 103,011 Selling, general and administrative expense 63,601 528 64,129 Long-lived asset impairment (2) 1,746 — 1,746 Interest expense, net 10,474 53 10,527 Other expense, net 1,090 12 1,102 Income before income taxes 28,638 (3,131 ) 25,507 Provision for (benefit from) income taxes 6,069 (500 ) 5,569 Net income 22,569 (2,631 ) 19,938 Net income attributable to noncontrolling interest 282 — 282 Net income attributable to Apergy $ 22,287 $ (2,631 ) $ 19,656 Earnings (loss) per share attributable to Apergy: Basic $ 0.29 $ (0.04 ) $ 0.25 Diluted $ 0.29 $ (0.04 ) $ 0.25 Comprehensive income $ 23,758 $ (2,631 ) $ 21,127 Comprehensive income attributable to Apergy $ 23,476 $ (2,631 ) $ 20,845 _______________________ (1) Includes “Service revenue” and “Lease and other revenue” as reported in the condensed consolidated statements of income for the three months ended March 31, 2019. (2) Long-lived asset impairment has been reclassified from selling, general, and administrative expense to conform the with our current period presentation of long-lived asset impairment on the condensed consolidated statements of income (loss). Condensed Consolidated Statement of Changes in Stockholders’ Equity March 31, 2019 (in thousands) As Reported Adjustments As Revised Stockholders’ Equity: Capital in excess of par value of common stock $ 966,938 $ (4,599 ) $ 962,339 Retained earnings 76,454 (1,914 ) 74,540 Total equity 1,005,203 (6,513 ) 998,690 (in thousands) As Reported Adjustments As Revised Total equity at December 31, 2018 $ 981,527 $ (5,544 ) $ 975,983 Cumulative effect of accounting changes (1,662 ) 1,662 — Net income 22,569 (2,631 ) 19,938 Total equity at March 31, 2019 1,005,203 (6,513 ) 998,690 Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2019 (in thousands) As Reported Adjustments As Revised Cash provided (required) by operating activities: Net income $ 22,569 $ (2,631 ) $ 19,938 Adjustments to reconcile net income to net cash provided (required) by operating activities: Depreciation 17,080 (9 ) 17,071 Deferred income taxes (5,366 ) (490 ) (5,856 ) Loss (gain) on sale of fixed assets (1) 12 — 12 Provision for losses on accounts receivable (1) (117 ) — (117 ) Amortization of deferred loan costs and accretion of discount (1) 648 — 648 Other 131 (22 ) 109 Changes in operating assets and liabilities (net of effects of foreign exchange): Receivables (8,462 ) 1,202 (7,260 ) Inventories (2,229 ) 2,893 664 Accounts payable (6,279 ) (1,881 ) (8,160 ) Accrued compensation and employee benefits (12,827 ) 2,243 (10,584 ) Accrued expenses and other liabilities 13,849 (2,273 ) 11,576 Leased assets (21,460 ) 959 (20,501 ) Other 620 9 629 _______________________ (1) Each of these amounts were included within “Other” on the condensed consolidated statements of cash flows reported for the three months ended March 31, 2019. These amounts have been reclassified consistent with the presentation in the current reporting period. |
New Accounting Standards (Table
New Accounting Standards (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Rollforward of Allowance for Credit Losses | The following table provides a rollforward of our allowance for credit losses balance: (in thousands) Allowance for Credit Losses December 31, 2019 $ 8,072 Impact of adoption on January 1, 2020 2,042 Provision for expected credit losses 2,427 Accounts written off (1,207 ) Foreign currency translation (55 ) March 31, 2020 $ 11,279 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory, Net [Abstract] | |
Components of Inventory | Inventories consisted of the following: (in thousands) March 31, 2020 December 31, 2019 Raw materials $ 47,542 $ 50,099 Work in progress 13,438 13,325 Finished goods 170,370 175,774 231,350 239,198 LIFO and valuation adjustments (24,402 ) (27,856 ) Inventories, net $ 206,948 $ 211,342 |
Asset Impairments (Tables)
Asset Impairments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying amount of goodwill, including changes therein, by reporting segment is below: (in thousands) Production & Automation Technologies Drilling Technologies Total December 31, 2019 $ 809,977 $ 101,136 $ 911,113 Impairment (616,271 ) — (616,271 ) Foreign currency translation (3,124 ) — (3,124 ) March 31, 2020 $ 190,582 $ 101,136 $ 291,718 |
Schedule of Finite-Lived Intangible Assets | The components of our definite- and indefinite-lived intangible assets were as follows: March 31, 2020 December 31, 2019 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets: Customer relationships (1) $ 442,696 $ 287,833 $ 154,863 $ 560,316 $ 353,189 $ 207,127 Trademarks (1) 34,045 24,671 9,374 35,695 24,830 10,865 Patents 37,798 27,053 10,745 38,436 26,838 11,598 Unpatented technologies 13,700 9,878 3,822 13,700 9,811 3,889 Drawings and manuals 2,478 1,678 800 2,558 1,758 800 Other 5,199 4,477 722 5,332 4,504 828 535,916 355,590 180,326 656,037 420,930 235,107 Indefinite-lived intangible assets: Trademarks 3,600 — 3,600 3,600 — 3,600 Total $ 539,516 $ 355,590 $ 183,926 $ 659,637 $ 420,930 $ 238,707 _______________________ (1) Includes impairment of customer relationship and trademark intangible assets of $40.4 million and $0.6 million |
Schedule of Indefinite-Lived Intangible Assets | The components of our definite- and indefinite-lived intangible assets were as follows: March 31, 2020 December 31, 2019 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets: Customer relationships (1) $ 442,696 $ 287,833 $ 154,863 $ 560,316 $ 353,189 $ 207,127 Trademarks (1) 34,045 24,671 9,374 35,695 24,830 10,865 Patents 37,798 27,053 10,745 38,436 26,838 11,598 Unpatented technologies 13,700 9,878 3,822 13,700 9,811 3,889 Drawings and manuals 2,478 1,678 800 2,558 1,758 800 Other 5,199 4,477 722 5,332 4,504 828 535,916 355,590 180,326 656,037 420,930 235,107 Indefinite-lived intangible assets: Trademarks 3,600 — 3,600 3,600 — 3,600 Total $ 539,516 $ 355,590 $ 183,926 $ 659,637 $ 420,930 $ 238,707 _______________________ (1) Includes impairment of customer relationship and trademark intangible assets of $40.4 million and $0.6 million |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt consisted of the following: (in thousands) March 31, 2020 December 31, 2019 Revolving credit facility $ — $ — Term loan facility 265,000 265,000 6.375% Senior Notes due 2026 300,000 300,000 Finance lease obligations 4,079 4,530 Total 569,079 569,530 Net unamortized discounts and issuance costs (9,547 ) (9,709 ) Total long-term debt $ 559,532 $ 559,821 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following: (in thousands) Foreign Currency Translation Defined Pension and Other Post-Retirement Benefits Accumulated Other Comprehensive Loss December 31, 2018 $ (36,146 ) $ (6,760 ) $ (42,906 ) Other comprehensive income (loss) before reclassifications, net of tax 1,090 (323 ) 767 Reclassification adjustment for net losses included in net income, net of tax — 422 422 Other comprehensive income, net of tax 1,090 99 1,189 March 31, 2019 $ (35,056 ) $ (6,661 ) $ (41,717 ) (in thousands) Foreign Currency Translation Defined Pension and Other Post-Retirement Benefits Accumulated Other Comprehensive Loss December 31, 2019 $ (35,210 ) $ (8,827 ) $ (44,037 ) Other comprehensive loss before reclassifications, net of tax (11,052 ) — (11,052 ) Reclassification adjustment for net losses included in net income, net of tax — 99 99 Other comprehensive income (loss), net of tax (11,052 ) 99 (10,953 ) March 31, 2020 $ (46,262 ) $ (8,728 ) $ (54,990 ) |
Schedule of Reclassifications from Accumulated Other Comprehensive Loss | Reclassification adjustments from accumulated other comprehensive loss to net income (loss) related to defined pension and other post-retirement benefits consisted of the following: Three Months Ended March 31, Affected line items on the condensed consolidated statements of income (in thousands) 2020 2019 Amortization of actuarial loss and other $ 132 $ 91 Other (income) expense, net Settlement loss — 486 Other (income) expense, net Total before tax 132 577 Income (loss) before income taxes Tax benefit (33 ) (155 ) Provision for (benefit from) income taxes $ 99 $ 422 Net income (loss) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | A reconciliation of the number of shares used for the basic and diluted earnings (loss) per share calculation was as follows: Three Months Ended March 31, (in thousands, except per share data) 2020 2019 Net income (loss) attributable to Apergy $ (633,728 ) $ 19,656 Weighted-average number of shares outstanding 77,477 77,363 Dilutive effect of stock-based compensation (1) — 277 Total shares and dilutive securities 77,477 77,640 Basic earnings (loss) per share attributable to Apergy $ (8.18 ) $ 0.25 Diluted earnings (loss) per share attributable to Apergy $ (8.18 ) $ 0.25 _______________________ (1) See Note 12—Equity And Cash Incentive Programs for share-based awards outstanding as of March 31, 2020, all of which were excluded from diluted weighted-average number of shares outstanding during the three months ended March 31, 2020 due to their anti-dilutive impact. We excluded 0.3 million shares from our calculation as of March 31, 2019 due to their anti-dilutive impact. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenue disaggregated by revenue type was as follows: Three Months Ended March 31, (in thousands) 2020 2019 Product revenue $ 230,882 $ 269,342 Service revenue 18,487 20,421 Lease and other revenue 12,065 10,731 Total revenue $ 261,434 $ 300,494 Revenue disaggregated by end market in each of our reporting segments was as follows: Three Months Ended March 31, (in thousands) 2020 2019 Drilling Technologies $ 55,955 $ 77,535 Production & Automation Technologies: Artificial lift 159,400 170,907 Digital products 33,922 31,290 Other production equipment 12,259 21,005 Intra-segment eliminations (102 ) (243 ) 205,479 222,959 Total revenue $ 261,434 $ 300,494 Revenue disaggregated by geography was as follows: Three Months Ended March 31, (in thousands) 2020 2019 United States $ 195,370 $ 231,358 Canada 17,952 18,915 Middle East 12,363 13,604 Europe 12,030 16,959 Australia 9,268 5,982 Latin America 7,582 7,722 Asia-Pacific 5,486 5,545 Other 1,383 409 Total revenue $ 261,434 $ 300,494 |
Schedule of Contract Balances | Contract assets and contract liabilities from contracts with customers were as follows: (in thousands) March 31, 2020 December 31, 2019 Contract assets $ 6 $ 285 Contract liabilities - current 9,393 6,148 |
Restructuring and Other Relat_2
Restructuring and Other Related Charges (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | Restructuring and other related charges as classified in our condensed consolidated statements of income (loss) were as follows: Three Months Ended March 31, (in thousands) 2020 2019 Segment restructuring charges: Production & Automation Technologies $ 671 $ 410 Drilling Technologies 2,095 — Total $ 2,766 $ 410 Statements of Income (Loss) classification: Cost of goods and services $ 2,039 $ 331 Selling, general and administrative expense 727 79 Total $ 2,766 $ 410 The following table details our restructuring accrual activities during the three months ended March 31, 2020 : (in thousands) Restructuring Accrual Balance December 31, 2019 $ 130 Restructuring charges 2,766 Payments (516 ) Other, including foreign currency translation 117 March 31, 2020 $ 2,497 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2020 | ||||||||||||||||
Defined Benefit Plan [Abstract] | ||||||||||||||||
Schedule of Net Benefit Costs | <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Components of net periodic benefit cost were as follows:</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="16" rowspan="1"></td></tr><tr><td style="width:39%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:12%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:14%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:12%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:12%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Pensions</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Other post-retirement benefits</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Three Months Ended March 31, </font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Three Months Ended March 31, </font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">(in thousands)</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2020</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2019</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2020</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">2019</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Service cost</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">224</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">194</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Interest cost</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">138</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">155</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">93</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">126</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Expected return on plan assets</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(212</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-right:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(190</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-right:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">)</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Amortization of prior service cost</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">8</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Amortization of actuarial loss</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">63</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">40</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">69</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">50</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Amortization of transition obligation</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">1</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Settlement loss</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">486</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Other</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#8212;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-r |
Equity and Cash Incentive Pro_2
Equity and Cash Incentive Program (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense relating to all stock-based incentive plans was as follows: Three Months Ended March 31, (in thousands) 2020 2019 Stock-based compensation expense $ 2,429 $ 2,285 Tax benefit (599 ) (558 ) Stock-based compensation expense, net of tax $ 1,830 $ 1,727 |
Summary of Activity Related to Share-Based Awards | A summary of activity relating to our share-based awards for the three months ended March 31, 2020 , was as follows: (in shares) Stock-Settled Appreciation Rights Performance Share Awards Restricted Stock Units Outstanding at January 1, 2020 422,361 174,726 440,048 Granted — — 164,513 Forfeited (1,758 ) (5,011 ) (12,657 ) Exercised / vested — — (62,740 ) Outstanding at March 31, 2020 420,603 169,715 529,164 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Revenue and Operating Profit | Segment revenue and segment operating profit were as follows: Three Months Ended March 31, (in thousands) 2020 2019 Segment revenue: Production & Automation Technologies $ 205,479 $ 222,959 Drilling Technologies 55,955 77,535 Total revenue $ 261,434 $ 300,494 Income before income taxes: Segment operating profit: Production & Automation Technologies $ (648,591 ) $ 13,064 Drilling Technologies 11,359 26,806 Total segment operating profit (637,232 ) 39,870 Corporate expense and other (1) 14,190 3,836 Interest expense, net 9,039 10,527 Income before income taxes $ (660,461 ) $ 25,507 _______________________ (1) Corporate expense and other includes costs not directly attributable or allocated to our reporting segments such as corporate executive management and other administrative functions, and the results attributable to our noncontrolling interest. |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information is as follows: Three Months Ended March 31, (in thousands) 2020 2019 Non-cash information: Finance lease additions $ 942 $ 1,326 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Revisions to Previously Issued Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Total revenue | $ 261,434 | $ 300,494 |
Cost of goods and services | 179,095 | 197,483 |
Gross profit | 82,339 | 103,011 |
Selling, general and administrative expense | 78,143 | 64,129 |
Long-lived asset impairment | 40,980 | 1,746 |
Interest expense, net | 9,039 | 10,527 |
Other (income) expense, net | (1,633) | 1,102 |
Income (loss) before income taxes | (660,461) | 25,507 |
Provision for (benefit from) income taxes | (27,006) | 5,569 |
Net income (loss) | (633,455) | 19,938 |
Net income attributable to noncontrolling interest | 273 | 282 |
Net income (loss) attributable to Apergy | $ (633,728) | $ 19,656 |
Earnings per share attributable to Apergy: | ||
Basic (in dollars per share) | $ (8.18) | $ 0.25 |
Diluted (in dollars per share) | $ (8.18) | $ 0.25 |
Comprehensive income | $ (644,408) | $ 21,127 |
Comprehensive income attributable to Apergy | (644,681) | 20,845 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Beginning balance | 1,036,214 | 975,983 |
Net income | (633,455) | 19,938 |
Ending balance | 392,294 | 998,690 |
Adjustments to reconcile net income to net cash provided (required) by operating activities: | ||
Depreciation | 16,970 | 17,071 |
Deferred income taxes | (28,417) | (5,856) |
Loss (gain) on sale of fixed assets | (386) | 12 |
Provision for losses on accounts receivable | 2,427 | (117) |
Amortization of deferred loan costs and accretion of discount | 708 | 648 |
Other | 349 | 109 |
Changes in operating assets and liabilities (net of effects of foreign exchange): | ||
Receivables | (6,740) | (7,260) |
Inventories | 6,587 | 664 |
Accounts payable | 3,068 | (8,160) |
Accrued compensation and employee benefits | (9,799) | (10,584) |
Accrued expenses and other liabilities | 12,153 | 11,576 |
Leased assets | (7,972) | (20,501) |
Other | (3,325) | 629 |
Product revenue | ||
Income Statement [Abstract] | ||
Revenue | 230,882 | 269,342 |
Lease and other revenue | ||
Income Statement [Abstract] | ||
Revenue | 30,552 | 31,152 |
As Reported | ||
Income Statement [Abstract] | ||
Total revenue | 301,691 | |
Cost of goods and services | 196,142 | |
Gross profit | 105,549 | |
Selling, general and administrative expense | 63,601 | |
Long-lived asset impairment | 1,746 | |
Interest expense, net | 10,474 | |
Other (income) expense, net | 1,090 | |
Income (loss) before income taxes | 28,638 | |
Provision for (benefit from) income taxes | 6,069 | |
Net income (loss) | 22,569 | |
Net income attributable to noncontrolling interest | 282 | |
Net income (loss) attributable to Apergy | $ 22,287 | |
Earnings per share attributable to Apergy: | ||
Basic (in dollars per share) | $ 0.29 | |
Diluted (in dollars per share) | $ 0.29 | |
Comprehensive income | $ 23,758 | |
Comprehensive income attributable to Apergy | 23,476 | |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Beginning balance | 981,527 | |
Net income | 22,569 | |
Ending balance | 1,005,203 | |
Adjustments to reconcile net income to net cash provided (required) by operating activities: | ||
Depreciation | 17,080 | |
Deferred income taxes | (5,366) | |
Loss (gain) on sale of fixed assets | 12 | |
Provision for losses on accounts receivable | (117) | |
Amortization of deferred loan costs and accretion of discount | 648 | |
Other | 131 | |
Changes in operating assets and liabilities (net of effects of foreign exchange): | ||
Receivables | (8,462) | |
Inventories | (2,229) | |
Accounts payable | (6,279) | |
Accrued compensation and employee benefits | (12,827) | |
Accrued expenses and other liabilities | 13,849 | |
Leased assets | (21,460) | |
Other | 620 | |
As Reported | Product revenue | ||
Income Statement [Abstract] | ||
Revenue | 269,534 | |
As Reported | Lease and other revenue | ||
Income Statement [Abstract] | ||
Revenue | 32,157 | |
Adjustments | ||
Income Statement [Abstract] | ||
Total revenue | (1,197) | |
Cost of goods and services | 1,341 | |
Gross profit | (2,538) | |
Selling, general and administrative expense | 528 | |
Long-lived asset impairment | 0 | |
Interest expense, net | 53 | |
Other (income) expense, net | 12 | |
Income (loss) before income taxes | (3,131) | |
Provision for (benefit from) income taxes | (500) | |
Net income (loss) | (2,631) | |
Net income attributable to noncontrolling interest | 0 | |
Net income (loss) attributable to Apergy | $ (2,631) | |
Earnings per share attributable to Apergy: | ||
Basic (in dollars per share) | $ (0.04) | |
Diluted (in dollars per share) | $ (0.04) | |
Comprehensive income | $ (2,631) | |
Comprehensive income attributable to Apergy | (2,631) | |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Beginning balance | (5,544) | |
Net income | (2,631) | |
Ending balance | (6,513) | |
Adjustments to reconcile net income to net cash provided (required) by operating activities: | ||
Depreciation | (9) | |
Deferred income taxes | (490) | |
Loss (gain) on sale of fixed assets | 0 | |
Provision for losses on accounts receivable | 0 | |
Amortization of deferred loan costs and accretion of discount | 0 | |
Other | (22) | |
Changes in operating assets and liabilities (net of effects of foreign exchange): | ||
Receivables | 1,202 | |
Inventories | 2,893 | |
Accounts payable | (1,881) | |
Accrued compensation and employee benefits | 2,243 | |
Accrued expenses and other liabilities | (2,273) | |
Leased assets | 959 | |
Other | 9 | |
Adjustments | Product revenue | ||
Income Statement [Abstract] | ||
Revenue | (192) | |
Adjustments | Lease and other revenue | ||
Income Statement [Abstract] | ||
Revenue | (1,005) | |
Cumulative Effect Adjustment | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Beginning balance | (1,573) | 0 |
Cumulative Effect Adjustment | As Reported | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Beginning balance | (1,662) | |
Cumulative Effect Adjustment | Adjustments | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Beginning balance | 1,662 | |
Common Stock, Capital in excess of par value | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Beginning balance | 969,174 | 960,773 |
Ending balance | 971,235 | 962,339 |
Common Stock, Capital in excess of par value | As Reported | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Ending balance | 966,938 | |
Common Stock, Capital in excess of par value | Adjustments | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Ending balance | (4,599) | |
Retained Earnings (Accum. Deficit) | ||
Income Statement [Abstract] | ||
Net income (loss) | (633,728) | 19,656 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Beginning balance | 107,048 | 54,884 |
Net income | (633,728) | 19,656 |
Ending balance | (528,253) | 74,540 |
Retained Earnings (Accum. Deficit) | As Reported | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Ending balance | 76,454 | |
Retained Earnings (Accum. Deficit) | Adjustments | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Ending balance | $ (1,914) | |
Retained Earnings (Accum. Deficit) | Cumulative Effect Adjustment | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Beginning balance | $ (1,573) |
New Accounting Standards - Narr
New Accounting Standards - Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reduction in retained earnings | $ 528,253 | $ (107,048) | ||
Income tax benefit | $ 27,006 | $ (5,569) | ||
Accounting Standards Update 2016-13 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reduction in retained earnings | $ 1,600 | |||
Income tax benefit | $ 500 |
New Accounting Standards - Allo
New Accounting Standards - Allowance for Credit Losses Rollforward (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
December 31, 2019 | $ 8,072 |
Provision for expected credit losses | 2,427 |
Accounts written off | (1,207) |
Foreign currency translation | (55) |
March 31, 2020 | $ 11,279 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory, Net [Abstract] | ||
Raw materials | $ 47,542 | $ 50,099 |
Work in progress | 13,438 | 13,325 |
Finished goods | 170,370 | 175,774 |
Subtotal | 231,350 | 239,198 |
LIFO and valuation adjustments | (24,402) | (27,856) |
Inventories, net | $ 206,948 | $ 211,342 |
Asset Impairments - Schedule of
Asset Impairments - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 911,113 | |
Impairment | (616,271) | $ 0 |
Foreign currency translation | (3,124) | |
Ending balance | 291,718 | |
Production & Automation Technologies | ||
Goodwill [Roll Forward] | ||
Beginning balance | 809,977 | |
Impairment | (616,271) | |
Foreign currency translation | (3,124) | |
Ending balance | 190,582 | |
Drilling Technologies | ||
Goodwill [Roll Forward] | ||
Beginning balance | 101,136 | |
Impairment | 0 | |
Foreign currency translation | 0 | |
Ending balance | $ 101,136 |
Asset Impairments - Schedule _2
Asset Impairments - Schedule of Definite and Indefinite Lived Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of intangible assets (excluding goodwill) | $ 41,000 | ||
Gross carrying amount | 535,916 | $ 656,037 | |
Accumulated amortization | 355,590 | 420,930 | |
Net carrying amount | 180,326 | 235,107 | |
Intangible assets, gross (excluding goodwill) | 539,516 | 659,637 | |
Intangible assets, net | 183,926 | 238,707 | |
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived Intangible Assets (excluding goodwill) | 3,600 | 3,600 | |
Customer intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 442,696 | 560,316 | |
Accumulated amortization | 287,833 | 353,189 | |
Net carrying amount | 154,863 | 207,127 | |
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 34,045 | 35,695 | |
Accumulated amortization | 24,671 | 24,830 | |
Net carrying amount | 9,374 | 10,865 | |
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 37,798 | 38,436 | |
Accumulated amortization | 27,053 | 26,838 | |
Net carrying amount | 10,745 | 11,598 | |
Unpatented technologies | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 13,700 | 13,700 | |
Accumulated amortization | 9,878 | 9,811 | |
Net carrying amount | 3,822 | 3,889 | |
Drawings and manuals | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 2,478 | 2,558 | |
Accumulated amortization | 1,678 | 1,758 | |
Net carrying amount | 800 | 800 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 5,199 | 5,332 | |
Accumulated amortization | 4,477 | 4,504 | |
Net carrying amount | 722 | $ 828 | |
Artificial lift | Customer Relationships and Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of intangible assets (excluding goodwill) | $ 40,400 | $ 600 |
Asset Impairments - Additional
Asset Impairments - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020USD ($)$ / shares | Mar. 31, 2019USD ($) | Mar. 23, 2020$ / shares | Feb. 29, 2020$ / shares | |
Finite-Lived Intangible Assets [Line Items] | ||||
Average closing price (in dollars per share) | $ / shares | $ 8.26 | $ 24.62 | ||
Stock price of common stock (in dollars per share) | $ / shares | $ 3.02 | |||
Goodwill impairment | $ 616,271 | $ 0 | ||
Impairment of intangible assets (excluding goodwill) | 41,000 | |||
Production & Automation Technologies | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment | 616,271 | |||
Production & Automation Technologies | Artificial lift | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment | 539,200 | |||
Production & Automation Technologies | Automation technologies | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment | $ 77,100 | |||
Discount Rate | Artificial lift | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment measurement input | 0.145 | |||
Discount Rate | Automation technologies | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment measurement input | 0.165 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Finance lease liabilities, noncurrent | $ 4,079 | |
Capital lease obligations, noncurrent | $ 4,530 | |
Total | 569,079 | 569,530 |
Net unamortized discounts and issuance costs | (9,547) | (9,709) |
Total long-term debt | 559,532 | 559,821 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 0 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 265,000 | $ 265,000 |
Senior Notes | 6.375% Senior Notes Due May 2026 | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 6.375% | 6.375% |
Long-term debt, gross | $ 300,000 | $ 300,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Apr. 24, 2020 | Mar. 31, 2020 | Feb. 14, 2020 |
Line of Credit | Amended Credit Agreement | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 150,000,000 | ||
Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | $ 265,000,000 | ||
Term Loan Facility | Amended Credit Agreement | |||
Debt Instrument [Line Items] | |||
Principal amount of debt issued | $ 537,000,000 | ||
Subsequent Event | |||
Debt Instrument [Line Items] | |||
Proceeds from line of credit | $ 125,000,000 | ||
Remaining borrowing capacity | $ 118,900,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Feb. 29, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | |||
Letters of credit outstanding and surety bonds, amount | $ 15.2 | $ 15.7 | |
Accrued liability - environmental | 2 | ||
Tax Indemnification Agreement | |||
Loss Contingencies [Line Items] | |||
Indemnification liability | $ 3.4 | ||
Settlement amount | $ 3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Accumulated other comprehensive loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 1,032,960 | |
Other comprehensive income (loss) | (10,953) | $ 1,189 |
Ending balance | 388,767 | |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (44,037) | (42,906) |
Other comprehensive income (loss) before reclassifications, net of tax | (11,052) | 767 |
Reclassification adjustment for net losses included in net income, net of tax | 99 | 422 |
Other comprehensive income (loss) | (10,953) | 1,189 |
Ending balance | (54,990) | (41,717) |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (35,210) | (36,146) |
Other comprehensive income (loss) before reclassifications, net of tax | (11,052) | 1,090 |
Reclassification adjustment for net losses included in net income, net of tax | 0 | |
Other comprehensive income (loss) | (11,052) | 1,090 |
Ending balance | (46,262) | (35,056) |
Defined Pension and Other Post-Retirement Benefits | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (8,827) | (6,760) |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | (323) |
Reclassification adjustment for net losses included in net income, net of tax | 99 | 422 |
Other comprehensive income (loss) | 99 | 99 |
Ending balance | $ (8,728) | $ (6,661) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications from accumulated other comprehensive loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other (income) expense, net | $ (1,633) | $ 1,102 |
Total before tax | 660,461 | (25,507) |
Tax benefit | (27,006) | 5,569 |
Net income | 633,455 | (19,938) |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) And Net Transition Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other (income) expense, net | 132 | 91 |
Accumulated Defined Benefit Plans Adjustment, Settlement Gain (Loss) Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other (income) expense, net | 486 | |
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | 132 | 577 |
Tax benefit | (33) | (155) |
Net income | $ 99 | $ 422 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Apergy | $ (633,728) | $ 19,656 |
Weighted-average number of shares outstanding | 77,477 | 77,363 |
Dilutive effect of stock-based compensation | 0 | 277 |
Total shares and dilutive securities | 77,477 | 77,640 |
Basic earnings (loss) per share attributable to Apergy (in dollars per share) | $ (8.18) | $ 0.25 |
Diluted earnings (loss) per share attributable to Apergy (in dollars per share) | $ (8.18) | $ 0.25 |
Number of shares excluded due to anti-dilutive impact (in shares) | 300 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Lease and other revenue | $ 12,065 | $ 10,731 |
Revenue | 261,434 | 300,494 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 195,370 | 231,358 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 17,952 | 18,915 |
Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,363 | 13,604 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,030 | 16,959 |
Australia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 9,268 | 5,982 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 7,582 | 7,722 |
Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,486 | 5,545 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,383 | 409 |
Product revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 230,882 | 269,342 |
Service revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 18,487 | 20,421 |
Drilling Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 55,955 | 77,535 |
Production & Automation Technologies | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 205,479 | 222,959 |
Production & Automation Technologies | Intra-segment eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (102) | (243) |
Production & Automation Technologies | Artificial lift | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 159,400 | 170,907 |
Production & Automation Technologies | Digital products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 33,922 | 31,290 |
Production & Automation Technologies | Other production equipment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 12,259 | $ 21,005 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 6 | $ 285 |
Contract liabilities - current | $ 9,393 | $ 6,148 |
Restructuring and Other Relat_3
Restructuring and Other Related Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 2,766 | $ 410 |
Cost of goods and services | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2,039 | 331 |
Selling, general and administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 727 | 79 |
Production & Automation Technologies | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 671 | 410 |
Drilling Technologies | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 2,095 | $ 0 |
Restructuring and Other Relat_4
Restructuring and Other Related Charges - Restructuring Reserve Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | ||
Beginning balance | $ 130 | |
Restructuring charges | 2,766 | $ 410 |
Payments | (516) | |
Other, including foreign currency translation | 117 | |
Ending balance | $ 2,497 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ (27,006) | $ 5,569 |
Impairment of non-taxable goodwill, amount impacting the effective tax rate | 560,100 | |
Income (loss) before income taxes | $ (660,461) | $ 25,507 |
Effective tax rate (as a percent) | 4.10% | 21.80% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pensions | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 224 | $ 194 |
Interest cost | 138 | 155 |
Expected return on plan assets | (212) | (190) |
Amortization of prior service cost | 8 | 0 |
Amortization of actuarial loss | 63 | 40 |
Amortization of transition obligation | 0 | 1 |
Settlement loss | 0 | 486 |
Other | 0 | (39) |
Net periodic benefit cost | 221 | 647 |
Other post-retirement benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 93 | 126 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | 0 | 0 |
Amortization of actuarial loss | 69 | 50 |
Amortization of transition obligation | 0 | 0 |
Settlement loss | 0 | 0 |
Other | 0 | (53) |
Net periodic benefit cost | $ 162 | $ 123 |
Equity and Cash Incentive Pro_3
Equity and Cash Incentive Program (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock-based compensation expense [Abstract] | ||
Stock-based compensation expense | $ 2,429 | $ 2,285 |
Tax benefit | (599) | (558) |
Stock-based compensation expense, net of tax | $ 1,830 | $ 1,727 |
Stock-Settled Appreciation Rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning balance (in shares) | 422,361 | |
Granted (in shares) | 0 | |
Forfeited (in shares) | (1,758) | |
Exercised/vested (in shares) | 0 | |
Outstanding, ending balance (in shares) | 420,603 | |
Performance Share Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning balance (in shares) | 174,726 | |
Granted (in shares) | 0 | |
Forfeited (in shares) | (5,011) | |
Exercised/vested (in shares) | 0 | |
Outstanding, ending balance (in shares) | 169,715 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning balance (in shares) | 440,048 | |
Granted (in shares) | 164,513 | |
Forfeited (in shares) | (12,657) | |
Exercised/vested (in shares) | (62,740) | |
Outstanding, ending balance (in shares) | 529,164 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | Mar. 31, 2020USD ($) |
Senior Notes | 6.375% Senior Notes Due May 2026 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Principal amount of debt issued | $ 300 |
Senior Notes | 6.375% Senior Notes Due May 2026 | Fair Value, Inputs, Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt, fair value | 233.5 |
Term Loan Facility | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Principal amount of debt issued | 265 |
Term Loan Facility | Fair Value, Inputs, Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt, fair value | $ 246.5 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | $ 261,434 | $ 300,494 |
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||
Income (loss) before income taxes | (660,461) | 25,507 |
Production & Automation Technologies | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 205,479 | 222,959 |
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||
Income (loss) before income taxes | (648,591) | 13,064 |
Drilling Technologies | ||
Reconciliation from Segment Totals to Consolidated [Abstract] | ||
Revenue | 55,955 | 77,535 |
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||
Income (loss) before income taxes | 11,359 | 26,806 |
Total segment operating profit | ||
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||
Income (loss) before income taxes | (637,232) | 39,870 |
Corporate expense and other | ||
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||
Income (loss) before income taxes | (14,190) | (3,836) |
Interest expense, net | ||
Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract] | ||
Income (loss) before income taxes | $ (9,039) | $ (10,527) |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||
Non-cash information for finance lease additions | $ 942 | $ 1,326 |
Transfers from inventory | 7,200 | 19,800 |
Assets Leased to Others | ||
Capital expenditures | $ 1,400 | $ 5,800 |
Uncategorized Items - a2020331a
Label | Element | Value |
Cumulative Effect, Period Of Adoption, Adjustment [Member] | ||
Financing Receivable, Allowance for Credit Loss | us-gaap_FinancingReceivableAllowanceForCreditLosses | $ 2,042,000 |