Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 21, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38441 | |
Entity Registrant Name | ChampionX Corp | |
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 | |
Security 12b Title | Common stock, $0.01 par value | |
Trading Symbol | CHX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 202,932,903 | |
Entity Central Index Key | 0001723089 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue: | ||||
Lease and other revenue | $ 23,176 | $ 18,550 | $ 42,074 | $ 37,455 |
Total revenue | 932,572 | 749,172 | 1,798,532 | 1,434,060 |
Cost of goods and services | 720,684 | 569,167 | 1,379,034 | 1,091,723 |
Gross profit | 211,888 | 180,005 | 419,498 | 342,337 |
Costs and expenses: | ||||
Selling, general and administrative expense | 141,351 | 152,341 | 291,711 | 295,819 |
Interest expense, net | 10,765 | 14,064 | 22,128 | 28,035 |
Other (income) expense, net | 32,281 | 2,251 | 33,601 | 315 |
Income before income taxes | 27,491 | 11,349 | 72,058 | 18,168 |
Provision for (benefit from) income taxes | (1,405) | 3,563 | 4,989 | 6,345 |
Net income | 28,896 | 7,786 | 67,069 | 11,823 |
Less: Net income (loss) attributable to noncontrolling interest | 1,554 | 536 | 3,025 | (1,199) |
Net income attributable to ChampionX | $ 27,342 | $ 7,250 | $ 64,044 | $ 13,022 |
Earnings per share attributable to ChampionX: | ||||
Basic (in dollars per share) | $ 0.13 | $ 0.04 | $ 0.32 | $ 0.06 |
Diluted (in dollars per share) | $ 0.13 | $ 0.03 | $ 0.31 | $ 0.06 |
Weighted-average shares outstanding: | ||||
Weighted-average shares outstanding, basic (in shares) | 203,322 | 201,467 | 203,200 | 201,063 |
Weighted-average shares outstanding, diluted (in shares) | 208,714 | 208,541 | 208,863 | 207,939 |
Product revenue | ||||
Revenue: | ||||
Revenue | $ 807,553 | $ 649,399 | $ 1,558,221 | $ 1,234,756 |
Service revenue | ||||
Revenue: | ||||
Revenue | $ 101,843 | $ 81,223 | $ 198,237 | $ 161,849 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 28,896 | $ 7,786 | $ 67,069 | $ 11,823 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 21,169 | 8,332 | 19,604 | 11,545 |
Cash flow hedges | (3,403) | (277) | (4,702) | 136 |
Defined pension and other post-retirement benefits adjustments, net | 70 | 6,373 | 139 | 6,540 |
Other comprehensive income | 17,836 | 14,428 | 15,041 | 18,221 |
Comprehensive income | 46,732 | 22,214 | 82,110 | 30,044 |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 1,554 | 536 | 3,025 | (1,199) |
Comprehensive income attributable to ChampionX | $ 45,178 | $ 21,678 | $ 79,085 | $ 31,243 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 167,282 | $ 251,678 |
Restricted cash | 3,500 | 3,500 |
Receivables, net | 614,607 | 584,440 |
Inventories, net | 606,956 | 542,910 |
Assets held for sale | 25,455 | 7,217 |
Prepaid expenses and other current assets | 52,116 | 71,155 |
Total current assets | 1,469,916 | 1,460,900 |
Property, plant and equipment, net of accumulated depreciation of $646,795 in 2022 and $618,867 in 2021 | 746,408 | 776,813 |
Goodwill | 724,398 | 702,867 |
Intangible assets, net | 351,374 | 401,470 |
Operating lease right-of-use assets | 101,350 | 115,458 |
Other non-current assets | 69,705 | 77,193 |
Total assets | 3,463,151 | 3,534,701 |
Current Liabilities: | ||
Current portion of long-term debt | 4,688 | 26,850 |
Accounts payable | 496,197 | 473,561 |
Accrued compensation and employee benefits | 54,864 | 93,131 |
Current portion of operating lease liabilities | 32,438 | 36,389 |
Accrued distributor fees | 35,166 | 25,621 |
Liabilities held for sale | 10,428 | 0 |
Accrued expenses and other current liabilities | 119,252 | 146,773 |
Total current liabilities | 753,033 | 802,325 |
Long-term debt | 694,430 | 697,657 |
Deferred income taxes | 84,709 | 137,971 |
Operating lease liabilities | 64,138 | 73,521 |
Other long-term liabilities | 73,986 | 68,920 |
Total liabilities | 1,670,296 | 1,780,394 |
Stockholders’ equity: | ||
Common stock (2.5 billion shares authorized, $0.01 par value) 202.9 million shares and 202.9 million shares issued and outstanding in 2022 and 2021, respectively | 2,029 | 2,029 |
Capital in excess of par value of common stock | 2,315,965 | 2,315,399 |
Accumulated deficit | (503,089) | (525,158) |
Accumulated other comprehensive loss | (6,584) | (21,625) |
ChampionX stockholders’ equity | 1,808,321 | 1,770,645 |
Noncontrolling interest | (15,466) | (16,338) |
Total equity | 1,792,855 | 1,754,307 |
Total liabilities and equity | $ 3,463,151 | $ 3,534,701 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation on property, plant, and equipment | $ 646,795 | $ 618,867 |
Common stock, shares authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 202,900,000 | 202,900,000 |
Common stock, shares outstanding (in shares) | 202,900,000 | 202,900,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock, Par Value | Common Stock, Capital in Excess of Par Value | Accum. Deficit | Accum. Other Comp. Loss | Non-controlling Interest |
Beginning balance (in shares) at Dec. 31, 2020 | 200,380,000 | |||||
Beginning balance at Dec. 31, 2020 | $ 1,612,575 | $ 2,004 | $ 2,293,179 | $ (638,457) | $ (30,755) | $ (13,396) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 4,037 | 5,772 | (1,735) | |||
Other comprehensive income (loss) | 3,793 | 3,793 | ||||
Stock-based compensation (in shares) | 64,000 | |||||
Stock-based compensation | 6,442 | 6,442 | ||||
Stock options exercised (in shares) | 577,000 | |||||
Stock options exercised | 3,347 | $ 6 | 3,341 | |||
Taxes withheld on issuance of stock-based awards | (556) | (556) | ||||
Cumulative translation adjustments | 268 | 268 | ||||
Distributions to noncontrolling interest | (800) | (800) | ||||
Ending balance (in shares) at Mar. 31, 2021 | 201,021,000 | |||||
Ending balance at Mar. 31, 2021 | 1,629,106 | $ 2,010 | 2,302,406 | (632,685) | (26,962) | (15,663) |
Beginning balance (in shares) at Dec. 31, 2020 | 200,380,000 | |||||
Beginning balance at Dec. 31, 2020 | 1,612,575 | $ 2,004 | 2,293,179 | (638,457) | (30,755) | (13,396) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 11,823 | |||||
Other comprehensive income (loss) | 18,221 | |||||
Ending balance (in shares) at Jun. 30, 2021 | 201,700,000 | |||||
Ending balance at Jun. 30, 2021 | 1,658,957 | $ 2,017 | 2,310,267 | (625,435) | (12,534) | (15,358) |
Beginning balance (in shares) at Mar. 31, 2021 | 201,021,000 | |||||
Beginning balance at Mar. 31, 2021 | 1,629,106 | $ 2,010 | 2,302,406 | (632,685) | (26,962) | (15,663) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 7,786 | 7,250 | 536 | |||
Other comprehensive income (loss) | 14,428 | 14,428 | ||||
Stock-based compensation (in shares) | 101,000 | |||||
Stock-based compensation | 5,914 | 5,914 | ||||
Stock options exercised (in shares) | 578,000 | |||||
Stock options exercised | 3,162 | $ 7 | 3,155 | |||
Taxes withheld on issuance of stock-based awards | (1,208) | (1,208) | ||||
Cumulative translation adjustments | (231) | (231) | ||||
Ending balance (in shares) at Jun. 30, 2021 | 201,700,000 | |||||
Ending balance at Jun. 30, 2021 | $ 1,658,957 | $ 2,017 | 2,310,267 | (625,435) | (12,534) | (15,358) |
Beginning balance (in shares) at Dec. 31, 2021 | 202,900,000 | 202,866,000 | ||||
Beginning balance at Dec. 31, 2021 | $ 1,754,307 | $ 2,029 | 2,315,399 | (525,158) | (21,625) | (16,338) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 38,173 | 36,702 | 1,471 | |||
Other comprehensive income (loss) | (2,795) | (2,795) | ||||
Stock-based compensation (in shares) | 290,000 | |||||
Stock-based compensation | 4,728 | $ 3 | 4,725 | |||
Stock options exercised (in shares) | 189,000 | |||||
Stock options exercised | 1,055 | $ 1 | 1,054 | |||
Taxes withheld on issuance of stock-based awards | (2,639) | (2,639) | ||||
Dividends declared to common stockholders ($0.075 per share) | (15,465) | (15,465) | ||||
Cumulative translation adjustments | 208 | 208 | ||||
Ending balance (in shares) at Mar. 31, 2022 | 203,345,000 | |||||
Ending balance at Mar. 31, 2022 | $ 1,777,572 | $ 2,033 | 2,318,539 | (503,921) | (24,420) | (14,659) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared to common shareholders (in dollars per share) | $ 0.075 | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 202,900,000 | 202,866,000 | ||||
Beginning balance at Dec. 31, 2021 | $ 1,754,307 | $ 2,029 | 2,315,399 | (525,158) | (21,625) | (16,338) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 67,069 | |||||
Other comprehensive income (loss) | $ 15,041 | |||||
Repurchase and cancellation of common stock (in shares) | (789,516) | |||||
Repurchase and cancellation of common stock | $ (20,000) | |||||
Ending balance (in shares) at Jun. 30, 2022 | 202,900,000 | 202,931,000 | ||||
Ending balance at Jun. 30, 2022 | $ 1,792,855 | $ 2,029 | 2,315,965 | (503,089) | (6,584) | (15,466) |
Beginning balance (in shares) at Mar. 31, 2022 | 203,345,000 | |||||
Beginning balance at Mar. 31, 2022 | 1,777,572 | $ 2,033 | 2,318,539 | (503,921) | (24,420) | (14,659) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 28,896 | 27,342 | 1,554 | |||
Other comprehensive income (loss) | 17,836 | 17,836 | ||||
Stock-based compensation (in shares) | 64,000 | |||||
Stock-based compensation | 5,071 | $ 1 | 5,070 | |||
Stock options exercised (in shares) | 312,000 | |||||
Stock options exercised | 2,090 | $ 3 | 2,087 | |||
Taxes withheld on issuance of stock-based awards | (739) | (739) | ||||
Dividends declared to common stockholders ($0.075 per share) | $ (15,494) | (15,494) | ||||
Repurchase and cancellation of common stock (in shares) | (789,516) | (790,000) | ||||
Repurchase and cancellation of common stock | $ (20,016) | $ (8) | (8,992) | (11,016) | ||
Cumulative translation adjustments | 8 | 8 | ||||
Distributions to noncontrolling interest | $ (2,369) | (2,369) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 202,900,000 | 202,931,000 | ||||
Ending balance at Jun. 30, 2022 | $ 1,792,855 | $ 2,029 | $ 2,315,965 | $ (503,089) | $ (6,584) | $ (15,466) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared to common shareholders (in dollars per share) | $ 0.075 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | ||
May 12, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared to common shareholders (in dollars per share) | $ 0.075 | $ 0.075 | $ 0.075 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 67,069 | $ 11,823 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 117,229 | 120,387 |
Loss on disposal group held for sale | 22,924 | 0 |
Stock-based compensation | 9,799 | 12,356 |
Provision for inventory obsolescence and write-downs | 6,926 | 6,200 |
Loss on debt extinguishment | 4,043 | 3,305 |
Deferred income taxes | (34,386) | (1,757) |
(Gain) loss on disposal of fixed assets | (6,284) | 3,176 |
Provision (recovery) for bad debt | (732) | 86 |
Amortization of deferred loan costs and accretion of discount | 1,766 | 1,628 |
Employee benefit plan expense | 1,303 | 1,250 |
Other | 234 | 167 |
Changes in operating assets and liabilities (net of effects of foreign exchange): | ||
Receivables | (42,456) | (18,706) |
Inventories | (81,935) | (41,586) |
Prepaid expenses and other current assets | 16,793 | 9,215 |
Accounts payable | 21,507 | 92,997 |
Accrued compensation and employee benefits | (39,774) | (2,444) |
Accrued expenses and other liabilities | (18,302) | (46,447) |
Leased assets | (13,949) | (1,609) |
Other | (660) | 1,097 |
Net cash flows provided by operating activities | 31,115 | 151,138 |
Cash flows from investing activities: | ||
Capital expenditures | (53,555) | (45,680) |
Proceeds from sale of fixed assets | 14,946 | 2,482 |
Acquisitions, net of cash acquired | (3,198) | 0 |
Net cash used for investing activities | (41,807) | (43,198) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 844,838 | 0 |
Repayment of long-term debt | (869,987) | (71,113) |
Payment of debt issue costs | (8,008) | 0 |
Repurchases of common stock | (20,016) | 0 |
Dividends paid | (15,465) | 0 |
Payments related to taxes withheld on stock-based compensation | (3,378) | (1,764) |
Proceeds from exercise of stock options | 3,145 | 6,509 |
Distributions to noncontrolling interest | (2,369) | (800) |
Payment of finance lease obligations | (3,123) | (2,575) |
Net cash used for financing activities | (74,363) | (69,743) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 659 | (623) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (84,396) | 37,574 |
Cash and cash equivalents and restricted cash at beginning of period | 255,178 | 201,421 |
Cash and cash equivalents and restricted cash at end of period | $ 170,782 | $ 238,995 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of the Business ChampionX Corporation is a global leader in chemistry solutions and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently and sustainably around the world. Our products provide efficient and safe operations throughout the lifecycle of a well with a focus on the production phase of wells. Unless the context requires otherwise, references in this report to “we,” “us,” “our,” “the Company,” or “ChampionX” mean ChampionX Corporation, together with our subsidiaries where the context requires. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of ChampionX 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 (the “SEC”) 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 fiscal year ended December 31, 2021. 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, 2022. Significant Accounting Policies Please refer to “Note 1 – Basis of Presentation and Summary of Significant Accounting Policies” to our consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 for the discussion of our significant accounting policies. New Accounting Standards All new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Our reporting segments are: • Production Chemical Technologies—provides oil and natural gas production and midstream markets with solutions to manage and control corrosion, oil and water separation, flow assurance, sour gas treatment and a host of water-related issues. • Production & Automation Technologies—designs, manufactures, markets and services a full range of artificial lift equipment, end-to-end digital automation solutions, as well as other production equipment and asset monitoring technologies. Production & Automation Technologies’ products are sold under a collection of brands including Harbison-Fischer, Norris, Alberta Oil Tool, Oil Lift Technology, PCS Ferguson, Pro-Rod, Upco, Unbridled ESP, Scientific Aviation, Norriseal-Wellmark, Quartzdyne, Spirit, Theta, Timberline, Windrock, and Leak Surveys (“LSI”). • Drilling Technologies—designs, manufactures and markets polycrystalline diamond cutters and bearings primarily for use in oil and gas drill bits under the US Synthetic brand. • Reservoir Chemical Technologies—manufactures specialty products that support well stimulation, construction (including drilling and cementing) and well intervention in the oil and natural gas industry. We refer to our Production Chemical Technologies segment and our Reservoir Chemical Technologies segment collectively as our Chemical Technologies business. Business activities that do not meet the criteria of an operating segment have been combined into Corporate and other. Corporate and other includes (i) corporate and overhead expenses, and (ii) revenue and costs for activities that are not operating segments. Segment revenue and segment operating profit Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2022 2021 2022 2021 Segment revenue: Production Chemical Technologies $ 552,411 $ 447,049 $ 1,067,383 $ 859,420 Production & Automation Technologies 242,399 188,173 462,748 355,018 Drilling Technologies 57,858 37,589 114,717 72,583 Reservoir Chemical Technologies 44,114 33,222 84,014 63,113 Corporate and other (1) 35,790 43,139 69,670 83,926 Total revenue $ 932,572 $ 749,172 $ 1,798,532 $ 1,434,060 Segment operating profit (loss): Production Chemical Technologies $ 25,606 $ 33,871 $ 56,869 $ 64,228 Production & Automation Technologies 23,650 12,292 48,360 17,654 Drilling Technologies 15,043 3,868 30,263 10,254 Reservoir Chemical Technologies (8,147) (2,594) (11,616) (5,822) Total segment operating profit 56,152 47,437 123,876 86,314 Corporate and other (1) 17,896 22,024 29,690 40,111 Interest expense, net 10,765 14,064 22,128 28,035 Income before income taxes $ 27,491 $ 11,349 $ 72,058 $ 18,168 _______________________ |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Our revenue is generated primarily from product sales. Service revenue is generated from providing services to our customers. These services include installation, repair and maintenance, laboratory and logistics services, chemical management services, troubleshooting, reporting, water treatment services, technical advisory assistance, emissions detection and monitoring, and other field services. Lease revenue is derived from rental income of leased production equipment. As our costs are shared across the various revenue categories, cost of goods sold is not tracked separately and is not discretely identifiable. In certain geographical areas, the Company utilizes joint ventures and independent third-party distributors and sales agents to sell and market products and services. Amounts payable to independent third-party distributors and sales agents may fluctuate based on sales and timing of distributor fee payments. For services rendered by such independent third-party distributors and sales agents, the Company records the consideration received on a net basis within product revenue in our condensed consolidated statements of income. Additionally, amounts owed to distributors and sales agents are reported within accrued distributor fees within our condensed consolidated balance sheets. Revenue disaggregated by geography was as follows: Three Months Ended June 30, 2022 (in thousands) Production Chemical Technologies Production & Automation Technologies Drilling Technologies Reservoir Chemical Technologies Corporate and other (1) Total United States $ 205,457 $ 187,982 $ 45,848 $ 31,038 $ 20,039 $ 490,364 Latin America 124,540 6,358 — 3,221 905 135,024 Middle East & Africa 76,028 19,062 1,220 5,561 287 102,158 Canada 72,581 17,484 3,477 633 37 94,212 Europe 45,889 3,384 5,156 968 3,297 58,694 Asia-Pacific 9,518 784 2,142 909 11,225 24,578 Australia 4,960 7,308 15 91 — 12,374 Other 13,438 37 — 1,693 — 15,168 Total revenue $ 552,411 $ 242,399 $ 57,858 $ 44,114 $ 35,790 $ 932,572 Three Months Ended June 30, 2021 (in thousands) Production Chemical Technologies Production & Automation Technologies Drilling Technologies Reservoir Chemical Technologies Corporate and other (1) Total United States $ 156,852 $ 141,799 $ 30,392 $ 19,589 $ 30,225 $ 378,857 Latin America 93,389 4,530 — 3,587 1,261 102,767 Middle East & Africa 66,213 13,358 1,446 6,534 1,945 89,496 Canada 63,639 14,754 1,986 377 124 80,880 Europe 41,046 1,790 2,278 1,101 3,690 49,905 Asia-Pacific 10,562 2,743 853 1,393 5,894 21,445 Australia 5,994 9,182 13 30 — 15,219 Other 9,354 17 621 611 — 10,603 Total revenue $ 447,049 $ 188,173 $ 37,589 $ 33,222 $ 43,139 $ 749,172 Six Months Ended June 30, 2022 (in thousands) Production Chemical Technologies Production & Automation Technologies Drilling Technologies Reservoir Chemical Technologies Corporate and other (1) Total United States $ 396,363 $ 355,784 $ 92,667 $ 56,259 $ 41,893 $ 942,966 Latin America 224,145 11,361 — 6,811 1,630 243,947 Middle East & Africa 150,072 35,773 2,909 13,282 601 202,637 Canada 148,380 36,936 6,418 1,111 63 192,908 Europe 94,910 5,729 8,866 1,871 6,768 118,144 Asia-Pacific 18,001 2,455 3,817 1,954 18,715 44,942 Australia 10,803 14,583 15 199 — 25,600 Other 24,709 127 25 2,527 — 27,388 Total revenue $ 1,067,383 $ 462,748 $ 114,717 $ 84,014 $ 69,670 $ 1,798,532 Six Months Ended June 30, 2021 (in thousands) Production Chemical Technologies Production & Automation Technologies Drilling Technologies Reservoir Chemical Technologies Corporate and other (1) Total United States $ 306,716 $ 267,712 $ 55,799 $ 35,198 $ 56,242 $ 721,667 Latin America 165,005 9,172 — 6,606 2,692 183,475 Middle East & Africa 124,583 24,091 2,162 12,596 7,067 170,499 Canada 124,931 27,282 5,813 1,106 282 159,414 Europe 83,654 3,773 4,777 2,490 5,947 100,641 Asia-Pacific 21,054 4,206 2,406 2,513 11,696 41,875 Australia 12,389 18,758 130 84 — 31,361 Other 21,088 24 1,496 2,520 — 25,128 Total revenue $ 859,420 $ 355,018 $ 72,583 $ 63,113 $ 83,926 $ 1,434,060 ______________________ (1) Revenues associated with sales under the Cross Supply and Product Transfer Agreement with Ecolab are included within Corporate and other. 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 The beginning and ending contract asset and contract liability balances from contracts with customers were as follows: (in thousands) June 30, 2022 December 31, 2021 Contract assets $ — $ — Contract liabilities - current $ 16,700 $ 15,246 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | INTANGIBLE ASSETS AND GOODWILL Intangible Assets The components of our definite- and indefinite-lived intangible assets were as follows: June 30, 2022 December 31, 2021 (in thousands) Gross Accumulated Net Gross Accumulated Net Definite-lived Customer relationships $ 585,450 $ 386,613 $ 198,837 $ 593,242 $ 365,773 $ 227,469 Unpatented technologies 142,760 46,815 95,945 142,540 37,264 105,276 Favorable supply agreements 59,000 40,164 18,836 59,000 30,546 28,454 Trademarks 59,869 34,163 25,706 59,873 32,270 27,603 Patents 38,577 31,417 7,160 38,735 31,080 7,655 Other 5,357 5,267 90 5,390 5,177 213 891,013 544,439 346,574 898,780 502,110 396,670 Indefinite-lived Trademarks 3,600 — 3,600 3,600 — 3,600 In-process research and development 1,200 — 1,200 1,200 — 1,200 4,800 — 4,800 4,800 — 4,800 Total $ 895,813 $ 544,439 $ 351,374 $ 903,580 $ 502,110 $ 401,470 Goodwill The carrying amount of goodwill, including changes therein, by reportable segment is below: (in thousands) Production Chemical Technologies Production & Automation Technologies Drilling Technologies Reservoir Chemical Technologies Total December 31, 2021 $ 356,638 $ 205,467 $ 101,136 $ 39,626 $ 702,867 Acquisition (1) — 6,345 — — 6,345 Allocated to disposal group (2) (3,339) — — — (3,339) Foreign currency translation 17,146 (156) — 1,535 18,525 June 30, 2022 $ 370,445 $ 211,656 $ 101,136 $ 41,161 $ 724,398 _______________________ (1) See Note 11—Acquisitions and Divestitures for additional information related to the acquisition of LSI completed during the first quarter of 2022. (2) See Note 11—Acquisitions and Divestitures for additional information on the reclassification of assets and liabilities held for sale as part of the planned divestiture of our operations in Russia. Goodwill is not subject to amortization but is tested for impairment on an annual basis or more frequently if impairment indicators arise. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Long-term debt consisted of the following: (in thousands) June 30, 2022 December 31, 2021 2022 Revolving Credit Facility $ 96,200 $ — 2018 Term Loan Facility — 140,000 2020 Term Loan Facility — 496,725 2022 Term Loan Facility 625,000 — 6.375% Senior Notes due 2026 — 92,041 Total 721,200 728,766 Net unamortized discounts and issuance costs (22,082) (4,259) Total long-term debt 699,118 724,507 Current portion of long-term debt (1) (4,688) (26,850) Long-term debt, less current portion $ 694,430 $ 697,657 _______________________ (1) Represents the mandatory amortization payments due within twelve months related to the 2022 Term Loan Facility as of June 30, 2022 and 2020 Term Loan Facility as of December 31, 2021. On May 9, 2018, we entered into a credit agreement (“Credit Agreement”) governing the terms of, among other things, a 7-year senior secured term loan B facility that had an initial commitment of $415 million (the “2018 Term Loan Facility”), and on June 3, 2020, ChampionX Holdings Inc. entered into a term loan facility for $537.0 million (the “2020 Term Loan Facility”). On June 7, 2022, we entered into a restated credit agreement (the “Restated Credit Agreement”), which amends and restates the Credit Agreement. The Restated Credit Agreement provides for (i) a $625 million 7-year senior secured term loan B facility (the “2022 Term Loan Facility”) and (ii) a five-year senior secured revolving credit facility in an aggregate principal amount of $700 million, of which $100 million is available for the issuance of letters of credit (the “2022 Revolving Credit Facility,” together with the 2022 Term Loan Facility, the “Senior Secured Credit Facility”). The full amount of the 2022 Term Loan Facility was funded, and $135 million of the 2022 Revolving Credit Facility was drawn, on June 7, 2022, with the aggregate proceeds used to repay outstanding amounts under our Credit Agreement, repay and terminate our 2020 Term Loan Facility, and to redeem all outstanding 6.375% Senior Notes due 2026. Proceeds from future borrowings under the 2022 Revolving Credit Facility are expected to be used for working capital and general corporate purposes. Following June 7, 2022, and prior to June 30, 2022, we repaid $38.8 million of the amount drawn under the 2022 Revolving Credit Facility. The 2022 Term Loan Facility matures June 7, 2029 and the 2022 Revolving Credit Facility matures June 7, 2027. The 2022 Term Loan Facility is subject to mandatory amortization payments of 1% per annum of the initial commitment paid quarterly, which begins on December 30, 2022. The Senior Secured Credit Facility contains customary representations and warranties, covenants, and events of default for loan facilities of this type. We were in compliance with all covenants as of June 30, 2022. At the Company’s election, outstanding borrowings under the Senior Secured Credit Facility will accrue interest at a per annum rate of (i) an adjusted SOFR rate plus the applicable spread or (ii) a base rate plus the applicable spread. On June 29, 2022, the Company executed a five-year floating-to-fixed interest rate swap to hedge our exposure to increases in variable interest rates on the 2022 Term Loan Facility. This interest rate swap agreement is based on a $300 million notional amount for the first three years, reducing to $150 million for years four and five. See Note 13—Derivatives and Hedging Transactions for additional information on interest rate swaps. In connection with the Restated Credit Agreement noted above, we completed the redemption of all of the Company’s remaining 6.375% Senior Notes (the “Notes”) at 103.188% of the principal amount thereof. We repurchased $92.0 million in aggregate principal amount of the Notes for $95.6 million in cash, including $0.6 million in accrued interest. In connection with these redemptions, we recognized a net loss of approximately $3.9 million for the three and six months ended June 30, 2022, inclusive of the write off of the remaining unamortized debt financing costs related to the Notes, which is included in other expense, net in our condensed consolidated statements of income (loss). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Guarantees and Indemnifications We have provided indemnities in connection with sales of certain businesses and assets, including 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 Company’s separation from Dover Corporation (“Dover”) in 2018, 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 connection with the acquisition of the Chemical Technologies business from Ecolab in 2020 (the “Merger”), we entered into agreements with Ecolab that govern the treatment between Ecolab 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 Ecolab’s business with Ecolab. 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 relating to the Merger (the “Tax Matters Agreement”), we have agreed to indemnify Ecolab and its affiliates for (i) all taxes for which ChampionX is responsible as defined within the Tax Matters Agreement, (ii) all taxes resulting from a breach by ChampionX of any of its representations (but only to the extent relating to a breach occurring after the consummation of the Merger) or any of its covenants under the Tax Matters Agreement, (iii) all taxes resulting from an acquisition after the Merger of any of the stock or assets of ChampionX, other than as a result of the Merger or a repayment of the 2018 Credit Facility (as defined in “Note 8–Debt” to our consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021), 2018 Term Loan Facility or 2020 Term Loan Facility and (iv) reasonable costs and expenses (including reasonable attorneys’ fees and expenses) related to the foregoing. As of June 30, 2022 and December 31, 2021, we had $56.2 million and $80.2 million, respectively, of outstanding letters of credit, surety bonds and guarantees, which expire at various dates through 2039. 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, surety bonds, and guarantees in the event of default in the performance of our obligations, the probability of which we believe is remote. Litigation and Environmental Matters The Company is party to various proceedings and claims incidental to its business, including matters arising under provisions relating to the protection of the environment. 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 can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. While many of these matters involve inherent uncertainty, we believe that the amount of the liability, if any, ultimately incurred with respect to these proceedings and claims will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. Environmental Matters The Company is currently participating in environmental assessments and remediation at approximately 11 locations, the majority of which are in the United States (“U.S.”), and environmental liabilities have been accrued reflecting our best estimate of future costs. Potential insurance reimbursements are not anticipated in the Company’s accruals for environmental liabilities. As of June 30, 2022, environmental liability accruals related to these locations were $6.9 million. Prior to the separation from Dover in 2018, 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. We have submitted our long-term remediation plan and it was approved by ODEQ. We are now in discussion with ODEQ to finalize a consent order. Because we have not yet finalized the consent order 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 June 30, 2022. Matters Related to Deepwater Horizon Incident Response On April 22, 2010, the deepwater drilling platform, the Deepwater Horizon, operated by a subsidiary of BP plc, sank in the Gulf of Mexico after an explosion and fire, resulting in a massive oil spill. Certain entities that are now subsidiaries of ChampionX as a result of the Merger (collectively the “COREXIT Defendants”) supplied COREXIT™ 9500, an oil dispersant product listed on the U.S. EPA National Contingency Plan Product Schedule, which was used in the response to the spill. In connection with the provision of COREXIT™, the COREXIT Defendants were named in several lawsuits. Cases arising out of the Deepwater Horizon accident were administratively transferred and consolidated for pre-trial purposes under In Re: Oil Spill by the Oil Rig “Deepwater Horizon” in the Gulf of Mexico, on April 20, 2010, Case No. 10-md-02179 in the United States District Court in the Eastern District of Louisiana (E.D. La.) (“MDL 2179”). Claims related to the response to the oil spill were consolidated in a master complaint captioned the “B3 Master Complaint.” In 2011, Transocean Deepwater Drilling, Inc. and its affiliates (the “Transocean Entities”) named the COREXIT Defendants and other unaffiliated companies as first party defendants (In re the Complaint and Petition of Triton Asset Leasing GmbH, et al, MDL No. 2179, Civil Action 10-2771). In April and May 2011, the Transocean Entities, Cameron International Corporation, Halliburton Energy Services, Inc., M-I L.L.C., Weatherford U.S., L.P. and Weatherford International, Inc. (collectively, the “Cross Claimants”) filed cross claims in MDL 2179 against the COREXIT Defendants and other unaffiliated cross defendants. In April and June 2011, in support of its defense of the claims against it, the COREXIT Defendants filed counterclaims against the Cross Claimants. On May 18, 2012, the COREXIT Defendants filed a motion for summary judgment as to the claims in the B3 Master Complaint. On November 28, 2012, the Court granted the COREXIT Defendants’ motion and dismissed with prejudice the claims in the B3 Master Complaint asserted against the COREXIT Defendants. There currently remain three “B3” cases that had asserted claims against the COREXIT Defendants and that remain pending against other defendants. Because the Court’s decision was not a “final judgment” for purposes of appeal with respect to those claims, under Federal Rule of Appellate Procedure 4(a), plaintiffs will have 30 days after entry of final judgment in each case to appeal the Court’s summary judgment decision. The Company believes the claims asserted against the COREXIT Defendants are without merit and intends to defend these lawsuits vigorously. The Company also believes that it has rights to contribution and/or indemnification (including legal expenses) from third parties. However, we cannot predict the outcome of these lawsuits, the involvement it might have in these matters in the future, or the potential for future litigation. |
Restructuring and Other Related
Restructuring and Other Related Charges | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | RESTRUCTURING AND OTHER RELATED CHARGES We approved various restructuring plans related to the consolidation of product lines and associated facility closures and workforce reductions during the current and prior periods. During the second quarter of 2022, the restructuring plans included the exit of one of our product lines within the Reservoir Chemical Technologies segment. The exit of this product line is expected to be completed during the third quarter of 2022 and as such, we anticipate additional restructuring charges related to the closure of facilities and certain contract termination costs when we cease using the rights conveyed by the contract. We recognized charges of $6.6 million and $15.1 million during the three and six months ended June 30, 2022, respectively, consisting primarily of employee severance and related benefits, disposals of equipment and office closures, partially offset by gains realized on the sale of facilities. During the three and six months ended June 30, 2021, we recorded restructuring and other charges of $3.8 million and $8.0 million, respectively. The following table presents the restructuring and other related charges by segment as classified in our condensed consolidated statements of income. Three Months Ended June 30, Six Months Ended (in thousands) 2022 2021 2022 2021 Segment restructuring charges (income): Production Chemical Technologies $ 336 $ 3,103 $ 11,972 $ 3,791 Production & Automation Technologies 125 432 (4,022) 3,956 Drilling Technologies — — — — Reservoir Chemical Technologies 5,358 198 6,101 242 Corporate and other 801 42 1,053 42 Total $ 6,620 $ 3,775 $ 15,104 $ 8,031 Statements of Income classification: Cost of goods and services $ 5,147 $ 422 $ 1,008 $ 3,906 Selling, general and administrative expense 1,473 3,353 14,096 4,125 Total $ 6,620 $ 3,775 $ 15,104 $ 8,031 Our liability balance for restructuring and other related charges at June 30, 2022 reflects employee severance and related benefits initiated during the period. Additional programs may be initiated during 2022 with related restructuring charges. The following table details our restructuring accrual activities during the six months ended June 30, 2022: (in thousands) Restructuring Accrual Balance December 31, 2021 $ 3,743 Restructuring charges 15,104 Asset sales 131 Payments (10,590) Other, including foreign currency translation (99) June 30, 2022 $ 8,289 |
Equity and Cash Incentive Progr
Equity and Cash Incentive Programs | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Equity and Cash Incentive Programs | EQUITY AND CASH INCENTIVE PROGRAMS Stock-based compensation expense is reported within selling, general and administrative expense in the condensed consolidated statements of income. Stock-based compensation expense relating to all stock-based incentive plans was as follows: Three Months Ended June 30, Six Months Ended (in thousands) 2022 2021 2022 2021 Stock-based compensation expense $ 5,071 $ 5,914 $ 9,799 $ 12,356 Tax benefit (1,065) (1,242) (2,058) (2,595) Stock-based compensation expense, net of tax $ 4,006 $ 4,672 $ 7,741 $ 9,761 A summary of activity relating to our share-based awards for the six months ended June 30, 2022 was as follows: (in shares) Stock-Settled Appreciation Rights Performance Share Awards Restricted Stock Units Non-Qualified Stock Options Outstanding at January 1, 2022 393,523 505,509 2,342,107 5,488,653 Granted — 347,920 932,588 — Forfeited / expired (1,758) — (159,365) (2,859) Exercised / vested — (72,410) (437,275) (499,562) Outstanding at June 30, 2022 391,765 781,019 2,678,055 4,986,232 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY Dividends On February 4, 2022, our Board of Directors (“Board”) approved a plan to initiate a regular quarterly cash dividend of $0.075 per share of the Company’s common stock. The first dividend was paid on April 29, 2022 to stockholders of record on April 8, 2022. An additional cash dividend of $0.075 per share was declared on May 12, 2022, payable on July 29, 2022 to stockholders of record on July 1, 2022. As a result, we recorded a dividend payable of $15.3 million on our condensed consolidated balance sheet as of June 30, 2022. Subsequent dividend declarations, if any, including the amounts and timing of future dividends, are subject to approval by the Board and will depend on future business conditions, financial conditions, results of operations and other factors. Repurchases On March 7, 2022, the Company announced that our Board authorized the Company to repurchase up to $250 million of its common stock. This program has no time limit and does not obligate the Company to acquire any particular amount of shares of its common stock. During the three and six months ended June 30, 2022, we repurchased and cancelled 789,516 shares of common stock at an average price of $25.33 per share for a total of $20.0 million. 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 Cash Flow Hedges Accumulated Other Comprehensive Loss December 31, 2021 $ (19,430) $ (3,476) $ 1,281 $ (21,625) Other comprehensive loss before reclassifications, net of tax (1,565) — (1,299) (2,864) Reclassification adjustment for net losses included in net income, net of tax — 69 — 69 Other comprehensive loss, net of tax (1,565) 69 (1,299) (2,795) March 31, 2022 $ (20,995) $ (3,407) $ (18) $ (24,420) Other comprehensive income before reclassifications, net of tax 21,169 — (3,403) 17,766 Reclassification adjustment for net losses included in net income, net of tax — 70 — 70 Other comprehensive income, net of tax 21,169 70 (3,403) 17,836 June 30, 2022 $ 174 $ (3,337) $ (3,421) $ (6,584) (in thousands) Foreign Currency Translation Defined Pension and Other Post-Retirement Benefits Cash Flow Hedges Accumulated Other Comprehensive Loss December 31, 2020 $ (14,965) $ (13,470) $ (2,320) $ (30,755) Other comprehensive income before reclassifications, net of tax 3,213 — 413 3,626 Reclassification adjustment for net losses included in net income, net of tax — 167 — 167 Other comprehensive income, net of tax 3,213 167 413 3,793 March 31, 2021 $ (11,752) $ (13,303) $ (1,907) $ (26,962) Other comprehensive income (loss) before reclassifications, net of tax 8,332 — (277) 8,055 Reclassification adjustment for net losses included in net income, net of tax — 6,373 — 6,373 Other comprehensive income (loss), net of tax 8,332 6,373 (277) 14,428 June 30, 2021 $ (3,420) $ (6,930) $ (2,184) $ (12,534) 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 June 30, Six Months Ended June 30, Affected line items on the condensed consolidated statements of income (loss) (in thousands) 2022 2021 2022 2021 Pensions and other post-retirement benefits: Amortization of actuarial loss and other $ 70 $ 6,326 $ 139 $ 6,540 Other (income) expense, net Total before tax 70 6,326 139 6,540 Income before income taxes Tax benefit — 47 — — Provision for (benefit from) income taxes Net of tax $ 70 $ 6,373 $ 139 $ 6,540 Net income |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE A reconciliation of the number of shares used for the basic and diluted earnings per share calculation was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2022 2021 2022 2021 Net income attributable to ChampionX $ 27,342 $ 7,250 $ 64,044 $ 13,022 Weighted-average number of shares outstanding 203,322 201,467 203,200 201,063 Dilutive effect of stock-based compensation 5,392 7,074 5,663 6,876 Total shares and dilutive securities 208,714 208,541 208,863 207,939 Basic earnings per share attributable to ChampionX $ 0.13 $ 0.04 $ 0.32 $ 0.06 Diluted earnings per share attributable to ChampionX $ 0.13 $ 0.03 $ 0.31 $ 0.06 For all periods presented, the computation of diluted earnings per share excludes awards with an anti-dilutive impact. For the three and six months ended June 30, 2022, the diluted shares include the dilutive impact of equity awards except for approximately 0.4 million and 0.4 million shares, respectively, that were excluded because their inclusion would be anti-dilutive. For the three and six months ended June 30, 2021, the diluted shares include the dilutive impact of equity awards |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES Acquisitions On February 23, 2022, we acquired LSI, a leader in optical gas imaging technology that provides aerial and ground-based emissions leak detection to the oil and gas industry. LSI has been included in our Production & Automation Technologies segment. Under the terms of the agreement, we paid an initial amount of $3.2 million, net of cash acquired, with an additional $0.5 million payable on the first anniversary of the closing date. We may also be required to make future payments of up to an additional $2.5 million, contingent on the future performance of the business. As part of our purchase price allocation, we recorded goodwill of $6.3 million. The pro forma effect of this acquisition on revenue and net income has been determined to be immaterial to our financial statements. Divestitures Given the continued economic pressure and sanctions imposed by the United States, European Union, and United Kingdom, we have initiated a plan to dispose of our operations in Russia (the “CT Russia Business”), which is included in our Production Chemical Technologies segment. As a result, the CT Russia Business met the criteria to be classified as held for sale as of June 30, 2022, which requires us to present the related assets and liabilities as separate line items in our condensed consolidated balance sheet. We recorded a charge of $22.9 million for the three and six months ended June 30, 2022, in order to properly reflect the carrying value of the disposal group at the lower of its carrying value or fair value less any costs to sell. We assess the fair value of a long-lived asset or disposal group (less any costs to sell) each reporting period that it remains classified as held for sale and report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. Upon the ultimate disposition, we will recognize the cumulative translation adjustment balance associated with the CT Russia Business in our condensed consolidated statement of income as part of the gain or loss on the sale. The following table presents information related to the major classes of assets and liabilities that were held for sale in our condensed consolidated balance sheet: (in thousands) Receivables $ 9,708 Inventory 10,830 Prepaid expenses and other current assets 3,670 Property, plant, and equipment 5,455 Goodwill 3,339 Intangible assets 7,803 Operating lease right-of-use assets 2,419 Loss on disposal group (22,924) Total assets held for sale $ 20,300 Accounts payable $ 2,840 Other current liabilities 3,719 Other noncurrent liabilities 3,869 Total liabilities held for sale $ 10,428 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. A hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs be used when available. The hierarchy is broken down into three levels: Level 1 - Inputs are quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 - Inputs include observable inputs other than quoted prices in active markets. Level 3 - Inputs are unobservable inputs for which there is little or no market data available. The carrying amount and the estimated fair value for assets and liabilities measured on a recurring basis are as follows: Carrying Amount (in thousands) Measurement Level June 30, 2022 December 31, 2021 Assets Foreign currency forward contracts Level 2 $ 3,423 $ 4,081 Interest rate swaps Level 2 392 — Total $ 3,815 $ 4,081 Liabilities Foreign currency forward contracts Level 2 $ 3,445 $ 3,773 Interest rate swaps Level 2 4,390 — Total $ 7,835 $ 3,773 For purposes of fair value disclosure above, derivative values are presented gross. See Note 13—Derivatives and Hedging Transactions for further discussion of gross versus net presentation of the Company’s derivatives. 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. The carrying amount and the estimated fair value of long-term debt, including current maturities, held by the Company were: June 30, 2022 December 31, 2021 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value 2022 Revolving Credit Facility $ 96,200 $ 96,200 $ — $ — 2018 Term Loan Facility $ — $ — $ 140,000 $ 138,950 2020 Term Loan Facility $ — $ — $ 496,725 $ 502,313 2022 Term Loan Facility $ 625,000 $ 607,031 $ — $ — 6.375% Senior Notes due 2026 $ — $ — $ 92,041 $ 95,805 |
Derivatives and Hedging Transac
Derivatives and Hedging Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Transactions | DERIVATIVES AND HEDGING TRANSACTIONS The Company uses foreign currency forward contracts to manage risks associated with foreign currency exchange rates. The Company also utilizes floating-to-fixed interest rate swap agreements as cash flow hedges on certain debt, to mitigate interest rate risk. The Company does not hold derivative financial instruments of a speculative nature or for trading purposes. Derivative contracts are recorded as assets and liabilities on the balance sheet at fair value. We evaluated the interest rate swap hedge effectiveness and determined it to be perfectly effective. We evaluate foreign currency forward contracts hedge effectiveness at contract inception and thereafter on a quarterly basis. If a derivative is no longer expected to be effective, hedge accounting is discontinued. Changes in fair value are recognized immediately in earnings unless the derivative qualifies and is designated as a hedge. Changes in fair value attributable to changes in spot exchange rates for derivative contracts that have been designated as cash flow hedges are recognized in accumulated other comprehensive income (loss) (“AOCI”) and reclassified into earnings in the same period the hedged transaction affects earnings and are presented in the same income statement line as the earnings effect of the hedged item. The Company accounts for the interest rate swap agreements as a cash flow hedge, thus the effective portion of gains and losses resulting from changes in fair value are recognized in AOCI and are amortized to interest expense over the term of the respective debt. Cash flows from derivatives are classified in the statement of cash flows in the same category as the cash flows from the items subject to designated hedge or undesignated (economic) hedge relationships. The Company is exposed to credit risk in the event of nonperformance of counterparties for foreign currency forward exchange contracts and interest rate swaps. We monitor our exposure to credit risk by using major global banks and financial institutions as counterparties and monitoring their financial condition and credit profile. The Company does not anticipate nonperformance by any of these counterparties, and therefore, recording a valuation allowance against the Company’s derivative balance is not considered necessary. Derivative Positions Summary Certain of the Company’s derivative transactions are subject to master netting arrangements that allow the Company to settle with the same counterparties. These arrangements generally do not call for collateral and as of the applicable dates presented in the following table, no cash collateral had been received or pledged related to the underlying derivatives. We have elected to present our derivative balances on a gross basis on the condensed consolidated balance sheet. The following table summarizes the gross fair value of the Company’s outstanding derivatives and the lines in which they are presented on the condensed consolidated balance sheet. Derivative Assets Derivative Liabilities (in thousands) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Prepaid expenses and other current assets $ 3,815 $ 4,081 $ — $ — Accrued expenses and other current liabilities — — 4,300 3,773 Other long-term liabilities — — 3,535 — $ 3,815 $ 4,081 $ 7,835 $ 3,773 The following table summarizes the notional values of the Company’s outstanding derivatives: (in thousands) June 30, 2022 December 31, 2021 Notional value of foreign currency forward contracts and interest rate swaps $ 912,688 $ 704,190 Cash Flow Hedges The Company utilizes foreign currency forward contracts to hedge the effect of foreign currency exchange rate fluctuations on forecasted foreign currency transactions, primarily related to inventory purchases. These forward contracts are designated as cash flow hedges. The changes in fair value of these contracts attributable to changes in spot exchange rates are recorded in AOCI until the hedged items affect earnings, at which time the gain or loss is reclassified into the same line item in the condensed consolidated statements of income (loss) as the underlying exposure being hedged. The forward points are marked-to-market monthly and recognized in the same line item in the condensed consolidated statements of income (loss) as the underlying exposure being hedged. Under interest rate swaps, we agree with other parties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed notional principal amount. We pay a floating rate and receive a fixed rate under these agreements. Any unrealized gain or loss at the time of settlement will be reclassified and reduce net interest expense as we record interest expense on the associated debt. Derivatives Not Designated as Hedging Instruments The Company also uses foreign currency forward contracts to offset its exposure to the change in value of certain foreign currency denominated assets and liabilities, primarily receivables and payables, which are remeasured at the end of each period. Although the contracts are effective economic hedges, they are not designated as accounting hedges. Therefore, changes in the value of these derivatives are recognized immediately in earnings, thereby offsetting the current earnings effect of the related foreign currency denominated assets and liabilities. Effect of Derivative Instruments on Income The loss of all derivative instruments recognized is summarized below: Three Months Ended Six Months Ended (in thousands) 2022 2021 2022 2021 Loss reclassified from AOCI to income on cash flow hedges: Cost of goods and services $ (118) $ 1,018 $ (47) $ 1,772 Loss on derivatives not designated as hedging instruments: Other (income) expense, net 1,251 795 5,411 1,462 Total loss of derivative instruments $ 1,133 $ 1,813 $ 5,364 $ 3,234 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES Inventories consisted of the following: (in thousands) June 30, 2022 December 31, 2021 Raw materials $ 224,508 $ 186,516 Work in progress 20,803 13,615 Finished goods 485,089 421,702 730,400 621,833 Inventory reserve (27,545) (24,646) LIFO adjustments (1) (95,899) (54,277) Inventories, net $ 606,956 $ 542,910 _______________________ (1) Represents the amount by which the current cost of LIFO inventories exceeded their carrying value. |
Cash Flow Information
Cash Flow Information | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | CASH FLOW INFORMATION Leased Asset Program Our electrical submersible pumping (“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 leased asset program. During the six months ended June 30, 2022 and June 30, 2021, we transferred $34.7 million and $20.3 million, respectively, of inventory into property, plant, and equipment as a result of assets entering our leased asset program. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of ChampionX 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 (the “SEC”) 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 fiscal year ended December 31, 2021. 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, 2022. |
New Accounting Standards | New Accounting Standards All new accounting pronouncements that have been issued but not yet effective are currently being evaluated and at this time are not expected to have a material impact on our financial position or results of operations. |
Fair Value Measurements | Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. A hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring the most observable inputs be used when available. The hierarchy is broken down into three levels: Level 1 - Inputs are quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2 - Inputs include observable inputs other than quoted prices in active markets. Level 3 - Inputs are unobservable inputs for which there is little or no market data available. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Revenue and Operating Profit | Segment revenue and segment operating profit Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2022 2021 2022 2021 Segment revenue: Production Chemical Technologies $ 552,411 $ 447,049 $ 1,067,383 $ 859,420 Production & Automation Technologies 242,399 188,173 462,748 355,018 Drilling Technologies 57,858 37,589 114,717 72,583 Reservoir Chemical Technologies 44,114 33,222 84,014 63,113 Corporate and other (1) 35,790 43,139 69,670 83,926 Total revenue $ 932,572 $ 749,172 $ 1,798,532 $ 1,434,060 Segment operating profit (loss): Production Chemical Technologies $ 25,606 $ 33,871 $ 56,869 $ 64,228 Production & Automation Technologies 23,650 12,292 48,360 17,654 Drilling Technologies 15,043 3,868 30,263 10,254 Reservoir Chemical Technologies (8,147) (2,594) (11,616) (5,822) Total segment operating profit 56,152 47,437 123,876 86,314 Corporate and other (1) 17,896 22,024 29,690 40,111 Interest expense, net 10,765 14,064 22,128 28,035 Income before income taxes $ 27,491 $ 11,349 $ 72,058 $ 18,168 _______________________ |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenue disaggregated by geography was as follows: Three Months Ended June 30, 2022 (in thousands) Production Chemical Technologies Production & Automation Technologies Drilling Technologies Reservoir Chemical Technologies Corporate and other (1) Total United States $ 205,457 $ 187,982 $ 45,848 $ 31,038 $ 20,039 $ 490,364 Latin America 124,540 6,358 — 3,221 905 135,024 Middle East & Africa 76,028 19,062 1,220 5,561 287 102,158 Canada 72,581 17,484 3,477 633 37 94,212 Europe 45,889 3,384 5,156 968 3,297 58,694 Asia-Pacific 9,518 784 2,142 909 11,225 24,578 Australia 4,960 7,308 15 91 — 12,374 Other 13,438 37 — 1,693 — 15,168 Total revenue $ 552,411 $ 242,399 $ 57,858 $ 44,114 $ 35,790 $ 932,572 Three Months Ended June 30, 2021 (in thousands) Production Chemical Technologies Production & Automation Technologies Drilling Technologies Reservoir Chemical Technologies Corporate and other (1) Total United States $ 156,852 $ 141,799 $ 30,392 $ 19,589 $ 30,225 $ 378,857 Latin America 93,389 4,530 — 3,587 1,261 102,767 Middle East & Africa 66,213 13,358 1,446 6,534 1,945 89,496 Canada 63,639 14,754 1,986 377 124 80,880 Europe 41,046 1,790 2,278 1,101 3,690 49,905 Asia-Pacific 10,562 2,743 853 1,393 5,894 21,445 Australia 5,994 9,182 13 30 — 15,219 Other 9,354 17 621 611 — 10,603 Total revenue $ 447,049 $ 188,173 $ 37,589 $ 33,222 $ 43,139 $ 749,172 Six Months Ended June 30, 2022 (in thousands) Production Chemical Technologies Production & Automation Technologies Drilling Technologies Reservoir Chemical Technologies Corporate and other (1) Total United States $ 396,363 $ 355,784 $ 92,667 $ 56,259 $ 41,893 $ 942,966 Latin America 224,145 11,361 — 6,811 1,630 243,947 Middle East & Africa 150,072 35,773 2,909 13,282 601 202,637 Canada 148,380 36,936 6,418 1,111 63 192,908 Europe 94,910 5,729 8,866 1,871 6,768 118,144 Asia-Pacific 18,001 2,455 3,817 1,954 18,715 44,942 Australia 10,803 14,583 15 199 — 25,600 Other 24,709 127 25 2,527 — 27,388 Total revenue $ 1,067,383 $ 462,748 $ 114,717 $ 84,014 $ 69,670 $ 1,798,532 Six Months Ended June 30, 2021 (in thousands) Production Chemical Technologies Production & Automation Technologies Drilling Technologies Reservoir Chemical Technologies Corporate and other (1) Total United States $ 306,716 $ 267,712 $ 55,799 $ 35,198 $ 56,242 $ 721,667 Latin America 165,005 9,172 — 6,606 2,692 183,475 Middle East & Africa 124,583 24,091 2,162 12,596 7,067 170,499 Canada 124,931 27,282 5,813 1,106 282 159,414 Europe 83,654 3,773 4,777 2,490 5,947 100,641 Asia-Pacific 21,054 4,206 2,406 2,513 11,696 41,875 Australia 12,389 18,758 130 84 — 31,361 Other 21,088 24 1,496 2,520 — 25,128 Total revenue $ 859,420 $ 355,018 $ 72,583 $ 63,113 $ 83,926 $ 1,434,060 ______________________ |
Schedule of Contract Balances | The beginning and ending contract asset and contract liability balances from contracts with customers were as follows: (in thousands) June 30, 2022 December 31, 2021 Contract assets $ — $ — Contract liabilities - current $ 16,700 $ 15,246 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The components of our definite- and indefinite-lived intangible assets were as follows: June 30, 2022 December 31, 2021 (in thousands) Gross Accumulated Net Gross Accumulated Net Definite-lived Customer relationships $ 585,450 $ 386,613 $ 198,837 $ 593,242 $ 365,773 $ 227,469 Unpatented technologies 142,760 46,815 95,945 142,540 37,264 105,276 Favorable supply agreements 59,000 40,164 18,836 59,000 30,546 28,454 Trademarks 59,869 34,163 25,706 59,873 32,270 27,603 Patents 38,577 31,417 7,160 38,735 31,080 7,655 Other 5,357 5,267 90 5,390 5,177 213 891,013 544,439 346,574 898,780 502,110 396,670 Indefinite-lived Trademarks 3,600 — 3,600 3,600 — 3,600 In-process research and development 1,200 — 1,200 1,200 — 1,200 4,800 — 4,800 4,800 — 4,800 Total $ 895,813 $ 544,439 $ 351,374 $ 903,580 $ 502,110 $ 401,470 |
Schedule of Indefinite-Lived Intangible Assets | The components of our definite- and indefinite-lived intangible assets were as follows: June 30, 2022 December 31, 2021 (in thousands) Gross Accumulated Net Gross Accumulated Net Definite-lived Customer relationships $ 585,450 $ 386,613 $ 198,837 $ 593,242 $ 365,773 $ 227,469 Unpatented technologies 142,760 46,815 95,945 142,540 37,264 105,276 Favorable supply agreements 59,000 40,164 18,836 59,000 30,546 28,454 Trademarks 59,869 34,163 25,706 59,873 32,270 27,603 Patents 38,577 31,417 7,160 38,735 31,080 7,655 Other 5,357 5,267 90 5,390 5,177 213 891,013 544,439 346,574 898,780 502,110 396,670 Indefinite-lived Trademarks 3,600 — 3,600 3,600 — 3,600 In-process research and development 1,200 — 1,200 1,200 — 1,200 4,800 — 4,800 4,800 — 4,800 Total $ 895,813 $ 544,439 $ 351,374 $ 903,580 $ 502,110 $ 401,470 |
Schedule of Goodwill | The carrying amount of goodwill, including changes therein, by reportable segment is below: (in thousands) Production Chemical Technologies Production & Automation Technologies Drilling Technologies Reservoir Chemical Technologies Total December 31, 2021 $ 356,638 $ 205,467 $ 101,136 $ 39,626 $ 702,867 Acquisition (1) — 6,345 — — 6,345 Allocated to disposal group (2) (3,339) — — — (3,339) Foreign currency translation 17,146 (156) — 1,535 18,525 June 30, 2022 $ 370,445 $ 211,656 $ 101,136 $ 41,161 $ 724,398 _______________________ (1) See Note 11—Acquisitions and Divestitures for additional information related to the acquisition of LSI completed during the first quarter of 2022. (2) See Note 11—Acquisitions and Divestitures for additional information on the reclassification of assets and liabilities held for sale as part of the planned divestiture of our operations in Russia. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following: (in thousands) June 30, 2022 December 31, 2021 2022 Revolving Credit Facility $ 96,200 $ — 2018 Term Loan Facility — 140,000 2020 Term Loan Facility — 496,725 2022 Term Loan Facility 625,000 — 6.375% Senior Notes due 2026 — 92,041 Total 721,200 728,766 Net unamortized discounts and issuance costs (22,082) (4,259) Total long-term debt 699,118 724,507 Current portion of long-term debt (1) (4,688) (26,850) Long-term debt, less current portion $ 694,430 $ 697,657 _______________________ (1) Represents the mandatory amortization payments due within twelve months related to the 2022 Term Loan Facility as of June 30, 2022 and 2020 Term Loan Facility as of December 31, 2021. |
Restructuring and Other Relat_2
Restructuring and Other Related Charges (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table presents the restructuring and other related charges by segment as classified in our condensed consolidated statements of income. Three Months Ended June 30, Six Months Ended (in thousands) 2022 2021 2022 2021 Segment restructuring charges (income): Production Chemical Technologies $ 336 $ 3,103 $ 11,972 $ 3,791 Production & Automation Technologies 125 432 (4,022) 3,956 Drilling Technologies — — — — Reservoir Chemical Technologies 5,358 198 6,101 242 Corporate and other 801 42 1,053 42 Total $ 6,620 $ 3,775 $ 15,104 $ 8,031 Statements of Income classification: Cost of goods and services $ 5,147 $ 422 $ 1,008 $ 3,906 Selling, general and administrative expense 1,473 3,353 14,096 4,125 Total $ 6,620 $ 3,775 $ 15,104 $ 8,031 The following table details our restructuring accrual activities during the six months ended June 30, 2022: (in thousands) Restructuring Accrual Balance December 31, 2021 $ 3,743 Restructuring charges 15,104 Asset sales 131 Payments (10,590) Other, including foreign currency translation (99) June 30, 2022 $ 8,289 |
Equity and Cash Incentive Pro_2
Equity and Cash Incentive Programs (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended (in thousands) 2022 2021 2022 2021 Stock-based compensation expense $ 5,071 $ 5,914 $ 9,799 $ 12,356 Tax benefit (1,065) (1,242) (2,058) (2,595) Stock-based compensation expense, net of tax $ 4,006 $ 4,672 $ 7,741 $ 9,761 |
Summary of Activity Related to Share-Based Awards | A summary of activity relating to our share-based awards for the six months ended June 30, 2022 was as follows: (in shares) Stock-Settled Appreciation Rights Performance Share Awards Restricted Stock Units Non-Qualified Stock Options Outstanding at January 1, 2022 393,523 505,509 2,342,107 5,488,653 Granted — 347,920 932,588 — Forfeited / expired (1,758) — (159,365) (2,859) Exercised / vested — (72,410) (437,275) (499,562) Outstanding at June 30, 2022 391,765 781,019 2,678,055 4,986,232 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 Cash Flow Hedges Accumulated Other Comprehensive Loss December 31, 2021 $ (19,430) $ (3,476) $ 1,281 $ (21,625) Other comprehensive loss before reclassifications, net of tax (1,565) — (1,299) (2,864) Reclassification adjustment for net losses included in net income, net of tax — 69 — 69 Other comprehensive loss, net of tax (1,565) 69 (1,299) (2,795) March 31, 2022 $ (20,995) $ (3,407) $ (18) $ (24,420) Other comprehensive income before reclassifications, net of tax 21,169 — (3,403) 17,766 Reclassification adjustment for net losses included in net income, net of tax — 70 — 70 Other comprehensive income, net of tax 21,169 70 (3,403) 17,836 June 30, 2022 $ 174 $ (3,337) $ (3,421) $ (6,584) (in thousands) Foreign Currency Translation Defined Pension and Other Post-Retirement Benefits Cash Flow Hedges Accumulated Other Comprehensive Loss December 31, 2020 $ (14,965) $ (13,470) $ (2,320) $ (30,755) Other comprehensive income before reclassifications, net of tax 3,213 — 413 3,626 Reclassification adjustment for net losses included in net income, net of tax — 167 — 167 Other comprehensive income, net of tax 3,213 167 413 3,793 March 31, 2021 $ (11,752) $ (13,303) $ (1,907) $ (26,962) Other comprehensive income (loss) before reclassifications, net of tax 8,332 — (277) 8,055 Reclassification adjustment for net losses included in net income, net of tax — 6,373 — 6,373 Other comprehensive income (loss), net of tax 8,332 6,373 (277) 14,428 June 30, 2021 $ (3,420) $ (6,930) $ (2,184) $ (12,534) |
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 June 30, Six Months Ended June 30, Affected line items on the condensed consolidated statements of income (loss) (in thousands) 2022 2021 2022 2021 Pensions and other post-retirement benefits: Amortization of actuarial loss and other $ 70 $ 6,326 $ 139 $ 6,540 Other (income) expense, net Total before tax 70 6,326 139 6,540 Income before income taxes Tax benefit — 47 — — Provision for (benefit from) income taxes Net of tax $ 70 $ 6,373 $ 139 $ 6,540 Net income |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | A reconciliation of the number of shares used for the basic and diluted earnings per share calculation was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2022 2021 2022 2021 Net income attributable to ChampionX $ 27,342 $ 7,250 $ 64,044 $ 13,022 Weighted-average number of shares outstanding 203,322 201,467 203,200 201,063 Dilutive effect of stock-based compensation 5,392 7,074 5,663 6,876 Total shares and dilutive securities 208,714 208,541 208,863 207,939 Basic earnings per share attributable to ChampionX $ 0.13 $ 0.04 $ 0.32 $ 0.06 Diluted earnings per share attributable to ChampionX $ 0.13 $ 0.03 $ 0.31 $ 0.06 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Major Class of Assets and Liabilities Held For Sale | The following table presents information related to the major classes of assets and liabilities that were held for sale in our condensed consolidated balance sheet: (in thousands) Receivables $ 9,708 Inventory 10,830 Prepaid expenses and other current assets 3,670 Property, plant, and equipment 5,455 Goodwill 3,339 Intangible assets 7,803 Operating lease right-of-use assets 2,419 Loss on disposal group (22,924) Total assets held for sale $ 20,300 Accounts payable $ 2,840 Other current liabilities 3,719 Other noncurrent liabilities 3,869 Total liabilities held for sale $ 10,428 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured on Recurring Basis | The carrying amount and the estimated fair value for assets and liabilities measured on a recurring basis are as follows: Carrying Amount (in thousands) Measurement Level June 30, 2022 December 31, 2021 Assets Foreign currency forward contracts Level 2 $ 3,423 $ 4,081 Interest rate swaps Level 2 392 — Total $ 3,815 $ 4,081 Liabilities Foreign currency forward contracts Level 2 $ 3,445 $ 3,773 Interest rate swaps Level 2 4,390 — Total $ 7,835 $ 3,773 |
Schedule of Fair Value of Long-Term Debt | The carrying amount and the estimated fair value of long-term debt, including current maturities, held by the Company were: June 30, 2022 December 31, 2021 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value 2022 Revolving Credit Facility $ 96,200 $ 96,200 $ — $ — 2018 Term Loan Facility $ — $ — $ 140,000 $ 138,950 2020 Term Loan Facility $ — $ — $ 496,725 $ 502,313 2022 Term Loan Facility $ 625,000 $ 607,031 $ — $ — 6.375% Senior Notes due 2026 $ — $ — $ 92,041 $ 95,805 |
Derivatives and Hedging Trans_2
Derivatives and Hedging Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Values of Outstanding Derivatives | The following table summarizes the gross fair value of the Company’s outstanding derivatives and the lines in which they are presented on the condensed consolidated balance sheet. Derivative Assets Derivative Liabilities (in thousands) June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Prepaid expenses and other current assets $ 3,815 $ 4,081 $ — $ — Accrued expenses and other current liabilities — — 4,300 3,773 Other long-term liabilities — — 3,535 — $ 3,815 $ 4,081 $ 7,835 $ 3,773 The following table summarizes the notional values of the Company’s outstanding derivatives: (in thousands) June 30, 2022 December 31, 2021 Notional value of foreign currency forward contracts and interest rate swaps $ 912,688 $ 704,190 |
Schedule of Derivative Instruments | The loss of all derivative instruments recognized is summarized below: Three Months Ended Six Months Ended (in thousands) 2022 2021 2022 2021 Loss reclassified from AOCI to income on cash flow hedges: Cost of goods and services $ (118) $ 1,018 $ (47) $ 1,772 Loss on derivatives not designated as hedging instruments: Other (income) expense, net 1,251 795 5,411 1,462 Total loss of derivative instruments $ 1,133 $ 1,813 $ 5,364 $ 3,234 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory, Net [Abstract] | |
Components of Inventory | Inventories consisted of the following: (in thousands) June 30, 2022 December 31, 2021 Raw materials $ 224,508 $ 186,516 Work in progress 20,803 13,615 Finished goods 485,089 421,702 730,400 621,833 Inventory reserve (27,545) (24,646) LIFO adjustments (1) (95,899) (54,277) Inventories, net $ 606,956 $ 542,910 _______________________ (1) Represents the amount by which the current cost of LIFO inventories exceeded their carrying value. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment revenue: | ||||
Revenue | $ 932,572 | $ 749,172 | $ 1,798,532 | $ 1,434,060 |
Segment operating profit (loss): | ||||
Interest expense, net | 10,765 | 14,064 | 22,128 | 28,035 |
Income before income taxes | 27,491 | 11,349 | 72,058 | 18,168 |
Operating Segments | ||||
Segment operating profit (loss): | ||||
Income before income taxes | 56,152 | 47,437 | 123,876 | 86,314 |
Operating Segments | Production Chemical Technologies | ||||
Segment revenue: | ||||
Revenue | 552,411 | 447,049 | 1,067,383 | 859,420 |
Segment operating profit (loss): | ||||
Income before income taxes | 25,606 | 33,871 | 56,869 | 64,228 |
Operating Segments | Production & Automation Technologies | ||||
Segment revenue: | ||||
Revenue | 242,399 | 188,173 | 462,748 | 355,018 |
Segment operating profit (loss): | ||||
Income before income taxes | 23,650 | 12,292 | 48,360 | 17,654 |
Operating Segments | Drilling Technologies | ||||
Segment revenue: | ||||
Revenue | 57,858 | 37,589 | 114,717 | 72,583 |
Segment operating profit (loss): | ||||
Income before income taxes | 15,043 | 3,868 | 30,263 | 10,254 |
Operating Segments | Reservoir Chemical Technologies | ||||
Segment revenue: | ||||
Revenue | 44,114 | 33,222 | 84,014 | 63,113 |
Segment operating profit (loss): | ||||
Income before income taxes | (8,147) | (2,594) | (11,616) | (5,822) |
Corporate and Other | ||||
Segment revenue: | ||||
Revenue | 35,790 | 43,139 | 69,670 | 83,926 |
Segment operating profit (loss): | ||||
Income before income taxes | $ 17,896 | $ 22,024 | $ 29,690 | $ 40,111 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 932,572 | $ 749,172 | $ 1,798,532 | $ 1,434,060 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 490,364 | 378,857 | 942,966 | 721,667 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 135,024 | 102,767 | 243,947 | 183,475 |
Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 102,158 | 89,496 | 202,637 | 170,499 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 94,212 | 80,880 | 192,908 | 159,414 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 58,694 | 49,905 | 118,144 | 100,641 |
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 24,578 | 21,445 | 44,942 | 41,875 |
Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12,374 | 15,219 | 25,600 | 31,361 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15,168 | 10,603 | 27,388 | 25,128 |
Corporate and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 35,790 | 43,139 | 69,670 | 83,926 |
Corporate and other | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 20,039 | 30,225 | 41,893 | 56,242 |
Corporate and other | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 905 | 1,261 | 1,630 | 2,692 |
Corporate and other | Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 287 | 1,945 | 601 | 7,067 |
Corporate and other | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 37 | 124 | 63 | 282 |
Corporate and other | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,297 | 3,690 | 6,768 | 5,947 |
Corporate and other | Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 11,225 | 5,894 | 18,715 | 11,696 |
Corporate and other | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Corporate and other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Production Chemical Technologies | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 552,411 | 447,049 | 1,067,383 | 859,420 |
Production Chemical Technologies | Operating Segments | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 205,457 | 156,852 | 396,363 | 306,716 |
Production Chemical Technologies | Operating Segments | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 124,540 | 93,389 | 224,145 | 165,005 |
Production Chemical Technologies | Operating Segments | Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 76,028 | 66,213 | 150,072 | 124,583 |
Production Chemical Technologies | Operating Segments | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 72,581 | 63,639 | 148,380 | 124,931 |
Production Chemical Technologies | Operating Segments | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 45,889 | 41,046 | 94,910 | 83,654 |
Production Chemical Technologies | Operating Segments | Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 9,518 | 10,562 | 18,001 | 21,054 |
Production Chemical Technologies | Operating Segments | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 4,960 | 5,994 | 10,803 | 12,389 |
Production Chemical Technologies | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 13,438 | 9,354 | 24,709 | 21,088 |
Production & Automation Technologies | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 242,399 | 188,173 | 462,748 | 355,018 |
Production & Automation Technologies | Operating Segments | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 187,982 | 141,799 | 355,784 | 267,712 |
Production & Automation Technologies | Operating Segments | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 6,358 | 4,530 | 11,361 | 9,172 |
Production & Automation Technologies | Operating Segments | Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 19,062 | 13,358 | 35,773 | 24,091 |
Production & Automation Technologies | Operating Segments | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 17,484 | 14,754 | 36,936 | 27,282 |
Production & Automation Technologies | Operating Segments | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,384 | 1,790 | 5,729 | 3,773 |
Production & Automation Technologies | Operating Segments | Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 784 | 2,743 | 2,455 | 4,206 |
Production & Automation Technologies | Operating Segments | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 7,308 | 9,182 | 14,583 | 18,758 |
Production & Automation Technologies | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 37 | 17 | 127 | 24 |
Drilling Technologies | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 57,858 | 37,589 | 114,717 | 72,583 |
Drilling Technologies | Operating Segments | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 45,848 | 30,392 | 92,667 | 55,799 |
Drilling Technologies | Operating Segments | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Drilling Technologies | Operating Segments | Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,220 | 1,446 | 2,909 | 2,162 |
Drilling Technologies | Operating Segments | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,477 | 1,986 | 6,418 | 5,813 |
Drilling Technologies | Operating Segments | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 5,156 | 2,278 | 8,866 | 4,777 |
Drilling Technologies | Operating Segments | Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,142 | 853 | 3,817 | 2,406 |
Drilling Technologies | Operating Segments | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15 | 13 | 15 | 130 |
Drilling Technologies | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 621 | 25 | 1,496 |
Reservoir Chemical Technologies | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 44,114 | 33,222 | 84,014 | 63,113 |
Reservoir Chemical Technologies | Operating Segments | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 31,038 | 19,589 | 56,259 | 35,198 |
Reservoir Chemical Technologies | Operating Segments | Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,221 | 3,587 | 6,811 | 6,606 |
Reservoir Chemical Technologies | Operating Segments | Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 5,561 | 6,534 | 13,282 | 12,596 |
Reservoir Chemical Technologies | Operating Segments | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 633 | 377 | 1,111 | 1,106 |
Reservoir Chemical Technologies | Operating Segments | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 968 | 1,101 | 1,871 | 2,490 |
Reservoir Chemical Technologies | Operating Segments | Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 909 | 1,393 | 1,954 | 2,513 |
Reservoir Chemical Technologies | Operating Segments | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 91 | 30 | 199 | 84 |
Reservoir Chemical Technologies | Operating Segments | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 1,693 | $ 611 | $ 2,527 | $ 2,520 |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 0 | $ 0 |
Contract liabilities - current | $ 16,700 | $ 15,246 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule of Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 891,013 | $ 898,780 |
Accumulated Amortization | 544,439 | 502,110 |
Net Carrying Amount | 346,574 | 396,670 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 4,800 | 4,800 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible assets, gross | 895,813 | 903,580 |
Accumulated Amortization | 544,439 | 502,110 |
Intangible assets, net | 351,374 | 401,470 |
Trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 3,600 | 3,600 |
In-process research and development | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 1,200 | 1,200 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 585,450 | 593,242 |
Accumulated Amortization | 386,613 | 365,773 |
Net Carrying Amount | 198,837 | 227,469 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | 386,613 | 365,773 |
Unpatented technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 142,760 | 142,540 |
Accumulated Amortization | 46,815 | 37,264 |
Net Carrying Amount | 95,945 | 105,276 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | 46,815 | 37,264 |
Favorable supply agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 59,000 | 59,000 |
Accumulated Amortization | 40,164 | 30,546 |
Net Carrying Amount | 18,836 | 28,454 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | 40,164 | 30,546 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 59,869 | 59,873 |
Accumulated Amortization | 34,163 | 32,270 |
Net Carrying Amount | 25,706 | 27,603 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | 34,163 | 32,270 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 38,577 | 38,735 |
Accumulated Amortization | 31,417 | 31,080 |
Net Carrying Amount | 7,160 | 7,655 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | 31,417 | 31,080 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,357 | 5,390 |
Accumulated Amortization | 5,267 | 5,177 |
Net Carrying Amount | 90 | 213 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ 5,267 | $ 5,177 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 702,867 |
Acquisition | 6,345 |
Allocated to disposal group | (3,339) |
Foreign currency translation | 18,525 |
Ending balance | 724,398 |
Production Chemical Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 356,638 |
Acquisition | 0 |
Allocated to disposal group | (3,339) |
Foreign currency translation | 17,146 |
Ending balance | 370,445 |
Production & Automation Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 205,467 |
Acquisition | 6,345 |
Allocated to disposal group | 0 |
Foreign currency translation | (156) |
Ending balance | 211,656 |
Drilling Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 101,136 |
Acquisition | 0 |
Allocated to disposal group | 0 |
Foreign currency translation | 0 |
Ending balance | 101,136 |
Reservoir Chemical Technologies | |
Goodwill [Roll Forward] | |
Beginning balance | 39,626 |
Acquisition | 0 |
Allocated to disposal group | 0 |
Foreign currency translation | 1,535 |
Ending balance | $ 41,161 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term Debt and Lease Obligation | $ 721,200 | $ 728,766 |
Net unamortized discounts and issuance costs | (22,082) | (4,259) |
Total long-term debt | 699,118 | 724,507 |
Current portion of long-term debt | (4,688) | (26,850) |
Long-term debt, less current portion | 694,430 | 697,657 |
Credit Facility | 2022 Revolving Credit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Lease Obligation | 96,200 | 0 |
Term Loan Facility | 2018 Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Lease Obligation | 0 | 140,000 |
Term Loan Facility | 2020 Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Lease Obligation | 0 | 496,725 |
Term Loan Facility | 2022 Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt and Lease Obligation | $ 625,000 | $ 0 |
Senior Notes | 6.375% Senior Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 6.375% | 6.375% |
Long-term Debt and Lease Obligation | $ 0 | $ 92,041 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 29, 2022 | Jun. 07, 2022 | May 09, 2018 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 03, 2020 | |
Interest rate swaps | Designated as Hedging Instrument | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative instrument, term (in years) | 5 years | |||||||
Interest Rate Swap, First Three Years | Designated as Hedging Instrument | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional value of foreign currency forward contracts and interest rate swaps | $ 300 | |||||||
Interest Rate Swap, Years Four And Five | Designated as Hedging Instrument | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional value of foreign currency forward contracts and interest rate swaps | $ 150 | |||||||
Credit Agreement | Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, term (in years) | 7 years | |||||||
2018 Term Loan Facility | Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt issued | $ 415 | |||||||
2020 Term Loan Facility | Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt issued | $ 537 | |||||||
2022 Term Loan Facility | Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, term (in years) | 7 years | |||||||
Principal amount of debt issued | $ 625 | |||||||
Mandatory amortization payment, percent per annum | 1% | |||||||
2022 Revolving Credit Facility | Credit Facility | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, term (in years) | 5 years | |||||||
Maximum borrowing capacity | $ 700 | |||||||
Borrowings from lines of credit | 135 | |||||||
Line of credit repaid | $ 38.8 | |||||||
2022 Revolving Credit Facility | Credit Facility | Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 100 | |||||||
6.375% Senior Notes due 2026 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt interest rate | 6.375% | 6.375% | 6.375% | 6.375% | ||||
Redemption price, percentage of principal amount of debt | 103.188% | |||||||
Aggregate principal amount repurchased | $ 92 | |||||||
Amount of principal debt repurchased | 95.6 | |||||||
Accrued interest paid on repurchase | $ 0.6 | |||||||
Net loss from repurchases of debt | $ 3.9 | $ 3.9 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 USD ($) case location | Dec. 31, 2021 USD ($) | Dec. 31, 2019 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Outstanding letters of credit, surety bonds and guarantees | $ 56.2 | $ 80.2 | |
Number of locations participating in assessments and remediation | location | 11 | ||
Accrued environmental liability | $ 6.9 | $ 2 | |
Number of pending cases | case | 3 |
Restructuring and Other Relat_3
Restructuring and Other Related Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | $ 6,620 | $ 3,775 | $ 15,104 | $ 8,031 |
Restructuring and Other Relat_4
Restructuring and Other Related Charges - Schedule of Restructuring and Other Related Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 6,620 | $ 3,775 | $ 15,104 | $ 8,031 |
Cost of goods and services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 5,147 | 422 | 1,008 | 3,906 |
Selling, general and administrative expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1,473 | 3,353 | 14,096 | 4,125 |
Corporate and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 801 | 42 | 1,053 | 42 |
Production Chemical Technologies | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 336 | 3,103 | 11,972 | 3,791 |
Production & Automation Technologies | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 125 | 432 | (4,022) | 3,956 |
Drilling Technologies | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 0 | 0 | 0 |
Reservoir Chemical Technologies | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 5,358 | $ 198 | $ 6,101 | $ 242 |
Restructuring and Other Relat_5
Restructuring and Other Related Charges - Restructuring Reserve Rollforward (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 3,743 |
Restructuring charges | 15,104 |
Asset sales | 131 |
Payments | (10,590) |
Other, including foreign currency translation | (99) |
Ending balance | $ 8,289 |
Equity and Cash Incentive Pro_3
Equity and Cash Incentive Programs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock-based compensation expense [Abstract] | ||||
Stock-based compensation expense | $ 5,071 | $ 5,914 | $ 9,799 | $ 12,356 |
Tax benefit | (1,065) | (1,242) | (2,058) | (2,595) |
Stock-based compensation expense, net of tax | $ 4,006 | $ 4,672 | $ 7,741 | $ 9,761 |
Stock-Settled Appreciation Rights | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding, beginning balance (in shares) | 393,523 | |||
Granted (in shares) | 0 | |||
Forfeited / expired (in shares) | (1,758) | |||
Exercised / vested (in shares) | 0 | |||
Outstanding, ending balance (in shares) | 391,765 | 391,765 | ||
Performance Share Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding, beginning balance (in shares) | 505,509 | |||
Granted (in shares) | 347,920 | |||
Forfeited / expired (in shares) | 0 | |||
Exercised / vested (in shares) | (72,410) | |||
Outstanding, ending balance (in shares) | 781,019 | 781,019 | ||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding, beginning balance (in shares) | 2,342,107 | |||
Granted (in shares) | 932,588 | |||
Forfeited / expired (in shares) | (159,365) | |||
Exercised / vested (in shares) | (437,275) | |||
Outstanding, ending balance (in shares) | 2,678,055 | 2,678,055 | ||
Non-Qualified Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding, beginning balance (in shares) | 5,488,653 | |||
Granted (in shares) | 0 | |||
Forfeited / expired (in shares) | (2,859) | |||
Exercised / vested (in shares) | (499,562) | |||
Outstanding, ending balance (in shares) | 4,986,232 | 4,986,232 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
May 12, 2022 | Feb. 04, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | Mar. 07, 2022 | |
Stockholders' Equity Note [Abstract] | ||||||
Approved quarterly cash dividend (in dollars per share) | $ 0.075 | |||||
Dividends declared to common shareholders (in dollars per share) | $ 0.075 | $ 0.075 | $ 0.075 | |||
Dividends payable | $ 15,300 | $ 15,300 | ||||
Authorized amount of stock repurchase | $ 250,000 | |||||
Repurchase and cancellation of common stock (in shares) | 789,516 | 789,516 | ||||
Average price of common stock repurchased (in dollars per share) | $ 25.33 | $ 25.33 | ||||
Value of repurchased common stock | $ 20,016 | $ 20,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 1,770,645 | $ 1,770,645 | ||||
Other comprehensive income | $ 17,836 | (2,795) | $ 14,428 | $ 3,793 | 15,041 | $ 18,221 |
Ending balance | 1,808,321 | 1,808,321 | ||||
Accumulated Other Comprehensive Loss | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (24,420) | (21,625) | (26,962) | (30,755) | (21,625) | (30,755) |
Other comprehensive income (loss) before reclassifications, net of tax | 17,766 | (2,864) | 8,055 | 3,626 | ||
Reclassification adjustment for net losses included in net income, net of tax | 70 | 69 | 6,373 | 167 | ||
Other comprehensive income | 17,836 | (2,795) | 14,428 | 3,793 | ||
Ending balance | (6,584) | (24,420) | (12,534) | (26,962) | (6,584) | (12,534) |
Foreign Currency Translation | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (20,995) | (19,430) | (11,752) | (14,965) | (19,430) | (14,965) |
Other comprehensive income (loss) before reclassifications, net of tax | 21,169 | (1,565) | 8,332 | 3,213 | ||
Reclassification adjustment for net losses included in net income, net of tax | 0 | 0 | 0 | 0 | ||
Other comprehensive income | 21,169 | (1,565) | 8,332 | 3,213 | ||
Ending balance | 174 | (20,995) | (3,420) | (11,752) | 174 | (3,420) |
Defined Pension and Other Post-Retirement Benefits | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (3,407) | (3,476) | (13,303) | (13,470) | (3,476) | (13,470) |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | 0 | 0 | ||
Reclassification adjustment for net losses included in net income, net of tax | 70 | 69 | 6,373 | 167 | ||
Other comprehensive income | 70 | 69 | 6,373 | 167 | ||
Ending balance | (3,337) | (3,407) | (6,930) | (13,303) | (3,337) | (6,930) |
Cash Flow Hedges | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (18) | 1,281 | (1,907) | (2,320) | 1,281 | (2,320) |
Other comprehensive income (loss) before reclassifications, net of tax | (3,403) | (1,299) | (277) | 413 | ||
Reclassification adjustment for net losses included in net income, net of tax | 0 | 0 | 0 | 0 | ||
Other comprehensive income | (3,403) | (1,299) | (277) | 413 | ||
Ending balance | $ (3,421) | $ (18) | $ (2,184) | $ (1,907) | $ (3,421) | $ (2,184) |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications from Accumulated Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other (income) expense, net | $ 32,281 | $ 2,251 | $ 33,601 | $ 315 | ||
Income before income taxes | (27,491) | (11,349) | (72,058) | (18,168) | ||
Provision for (benefit from) income taxes | (1,405) | 3,563 | 4,989 | 6,345 | ||
Net income | (28,896) | $ (38,173) | (7,786) | $ (4,037) | (67,069) | (11,823) |
Amortization of actuarial loss and other | Reclassification from accumulated other comprehensive loss | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other (income) expense, net | 70 | 6,326 | 139 | 6,540 | ||
Accumulated defined benefit plans adjustment including portion attributable to noncontrolling interest | Reclassification from accumulated other comprehensive loss | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income before income taxes | 70 | 6,326 | 139 | 6,540 | ||
Provision for (benefit from) income taxes | 0 | 47 | 0 | 0 | ||
Net income | $ 70 | $ 6,373 | $ 139 | $ 6,540 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to ChampionX | $ 27,342 | $ 7,250 | $ 64,044 | $ 13,022 |
Weighted-average number of shares outstanding (in shares) | 203,322 | 201,467 | 203,200 | 201,063 |
Dilutive effect of stock-based compensation (in shares) | 5,392 | 7,074 | 5,663 | 6,876 |
Total shares and dilutive securities (in shares) | 208,714 | 208,541 | 208,863 | 207,939 |
Basic earnings per share attributable to ChampionX (in dollars per share) | $ 0.13 | $ 0.04 | $ 0.32 | $ 0.06 |
Diluted earnings per share attributable to ChampionX (in dollars per share) | $ 0.13 | $ 0.03 | $ 0.31 | $ 0.06 |
Number of antidilutive securities excluded (in shares) | 400 | 700 | 400 | 700 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 23, 2023 | Feb. 23, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 724,398 | $ 724,398 | $ 702,867 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | CT Russia Business | |||||
Business Acquisition [Line Items] | |||||
Charge on divestiture | $ 22,900 | $ 22,900 | |||
Leak Surveys, Inc. | |||||
Business Acquisition [Line Items] | |||||
Amount paid for acquisition | $ 3,200 | ||||
Future payments contingent upon performance | 2,500 | ||||
Goodwill | $ 6,300 | ||||
Leak Surveys, Inc. | Forecast | |||||
Business Acquisition [Line Items] | |||||
Amount paid for acquisition | $ 500 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Schedule of Major Class of Assets and Liabilities Held For Sale (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - CT Russia Business $ in Thousands | Jun. 30, 2022 USD ($) |
Business Acquisition [Line Items] | |
Receivables | $ 9,708 |
Inventory | 10,830 |
Prepaid expenses and other current assets | 3,670 |
Property, plant, and equipment | 5,455 |
Goodwill | 3,339 |
Intangible assets | 7,803 |
Operating lease right-of-use assets | 2,419 |
Loss on disposal group | (22,924) |
Total assets held for sale | 20,300 |
Accounts payable | 2,840 |
Other current liabilities | 3,719 |
Other noncurrent liabilities | 3,869 |
Total liabilities held for sale | $ 10,428 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Derivative assets | $ 3,815 | $ 4,081 |
Liabilities | ||
Derivative liabilities | 7,835 | 3,773 |
Carrying Amount | 721,200 | 728,766 |
Credit Facility | 2022 Revolving Credit Facility | Revolving Credit Facility | ||
Liabilities | ||
Carrying Amount | 96,200 | 0 |
Fair Value | 96,200 | 0 |
Term Loan Facility | 2018 Term Loan Facility | ||
Liabilities | ||
Carrying Amount | 0 | 140,000 |
Term Loan Facility | 2020 Term Loan Facility | ||
Liabilities | ||
Carrying Amount | 0 | 496,725 |
Term Loan Facility | 2022 Term Loan Facility | ||
Liabilities | ||
Carrying Amount | $ 625,000 | $ 0 |
Senior Notes | 6.375% Senior Notes due 2026 | ||
Liabilities | ||
Debt interest rate | 6.375% | 6.375% |
Carrying Amount | $ 0 | $ 92,041 |
Level 2 | Term Loan Facility | 2018 Term Loan Facility | ||
Liabilities | ||
Fair Value | 0 | 138,950 |
Level 2 | Term Loan Facility | 2020 Term Loan Facility | ||
Liabilities | ||
Fair Value | 0 | 502,313 |
Level 2 | Term Loan Facility | 2022 Term Loan Facility | ||
Liabilities | ||
Fair Value | 607,031 | 0 |
Level 1 | Senior Notes | 6.375% Senior Notes due 2026 | ||
Liabilities | ||
Fair Value | 0 | 95,805 |
Fair Value, Recurring | Level 2 | ||
Assets | ||
Derivative assets | 3,815 | 4,081 |
Liabilities | ||
Derivative liabilities | 7,835 | 3,773 |
Foreign currency forward contracts | Fair Value, Recurring | Level 2 | ||
Assets | ||
Derivative assets | 3,423 | 4,081 |
Liabilities | ||
Derivative liabilities | 3,445 | 3,773 |
Interest rate swaps | Fair Value, Recurring | Level 2 | ||
Assets | ||
Derivative assets | 392 | 0 |
Liabilities | ||
Derivative liabilities | $ 4,390 | $ 0 |
Derivatives and Hedging Trans_3
Derivatives and Hedging Transactions - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 3,815 | $ 4,081 |
Derivative Liabilities | 7,835 | 3,773 |
Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 4,300 | 3,773 |
Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 3,535 | $ 0 |
Derivatives and Hedging Trans_4
Derivatives and Hedging Transactions - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Foreign Exchange Forward And Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional value under derivative instrument agreement | $ 912,688 | $ 704,190 |
Derivatives and Hedging Trans_5
Derivatives and Hedging Transactions - Schedule of Gain (Loss) on Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total loss of derivative instruments | $ 1,133 | $ 1,813 | $ 5,364 | $ 3,234 |
Cost of goods and services | Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total loss of derivative instruments | (118) | 1,018 | (47) | 1,772 |
Other (income) expense, net | Not Designated as Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total loss of derivative instruments | $ 1,251 | $ 795 | $ 5,411 | $ 1,462 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory, Net [Abstract] | ||
Raw materials | $ 224,508 | $ 186,516 |
Work in progress | 20,803 | 13,615 |
Finished goods | 485,089 | 421,702 |
Subtotal | 730,400 | 621,833 |
Inventory reserve | (27,545) | (24,646) |
LIFO adjustments | (95,899) | (54,277) |
Inventories, net | $ 606,956 | $ 542,910 |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||
Transfers from inventory | $ 34.7 | $ 20.3 |