Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FLOTEK INDUSTRIES INC/CN/ | ||
Entity Central Index Key | 928,054 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 56,756,480 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 437,821 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 4,584 | $ 4,823 |
Accounts receivable, net of allowance for doubtful accounts of $733 and $664 at December 31, 2017 and 2016, respectively | 46,018 | 47,152 |
Inventories | 75,759 | 58,283 |
Income taxes receivable | 2,826 | 12,752 |
Assets held for sale | 0 | 43,900 |
Other current assets | 9,264 | 21,708 |
Total current assets | 138,451 | 188,618 |
Property and equipment, net | 73,833 | 74,691 |
Goodwill | 56,660 | 56,660 |
Deferred tax assets, net | 12,713 | 12,894 |
Other intangible assets, net | 48,231 | 50,352 |
TOTAL ASSETS | 329,888 | 383,215 |
Current liabilities: | ||
Accounts payable | 22,048 | 29,960 |
Accrued liabilities | 14,589 | 12,170 |
Interest payable | 43 | 24 |
Liabilities held for sale | 0 | 4,961 |
Current portion of long-term debt | 27,950 | 40,566 |
Total current liabilities | 64,630 | 87,681 |
Long-term debt, less current portion | 0 | 7,833 |
Total liabilities | 64,630 | 95,514 |
Commitments and contingencies | ||
Equity: | ||
Cumulative convertible preferred stock, $0.0001 par value, 100,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value, 80,000,000 shares authorized; 60,622,986 shares issued and 56,755,293 shares outstanding at December 31, 2017; 59,684,669 shares issued and 56,972,580 shares outstanding at December 31, 2016 | 6 | 6 |
Additional paid-in capital | 336,067 | 318,392 |
Accumulated other comprehensive income (loss) | (884) | (956) |
Retained earnings (accumulated deficit) | (37,225) | (9,830) |
Treasury stock, at cost; 3,621,435 and 2,028,847 shares at December 31, 2017 and 2016, respectively | (33,064) | (20,269) |
Flotek Industries, Inc. stockholders’ equity | 264,900 | 287,343 |
Noncontrolling interests | 358 | 358 |
Total equity | 265,258 | 287,701 |
TOTAL LIABILITIES AND EQUITY | $ 329,888 | $ 383,215 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 733 | $ 664 |
Cumulative convertible preferred stock, at par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Cumulative convertible preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Cumulative convertible preferred stock, shares issued (in shares) | 0 | 0 |
Cumulative convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 60,622,986 | 59,684,669 |
Common stock, shares outstanding (in shares) | 56,755,293 | 56,972,580 |
Treasury stock, shares (in shares) | 3,621,435 | 2,028,847 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenue | $ 317,098 | $ 262,832 | $ 269,966 |
Costs and expenses: | |||
Cost of revenue (excluding depreciation and amortization) | 215,129 | 170,255 | 172,033 |
Depreciation and amortization | 12,159 | 10,429 | 8,735 |
Research and development | 13,645 | 9,320 | 6,657 |
Loss (gain) on disposal of long-lived assets | 292 | (18) | (13) |
Total costs and expenses | 319,953 | 270,136 | 257,688 |
(Loss) income from operations | (2,855) | (7,304) | 12,278 |
Other (expense) income: | |||
Interest expense | (2,168) | (1,979) | (1,521) |
Gain on legal settlement | 0 | 12,730 | 0 |
Other (expense) income, net | 812 | (303) | (123) |
Total other (expense) income | (1,356) | 10,448 | (1,644) |
(Loss) income before income taxes | (4,211) | 3,144 | 10,634 |
Income tax expense | (8,842) | (1,237) | (3,476) |
(Loss) income from continuing operations | (13,053) | 1,907 | 7,158 |
Loss from discontinued operations, net of tax | (14,342) | (51,037) | (20,620) |
Net loss | $ (27,395) | $ (49,130) | $ (13,462) |
Basic earnings (loss) per common share: | |||
Continuing operations (in dollars per share) | $ (0.23) | $ 0.03 | $ 0.13 |
Discontinued operations, net of tax (in dollars per share) | (0.25) | (0.91) | (0.38) |
Basic earnings (loss) per common share (in dollars per share) | (0.48) | (0.88) | (0.25) |
Diluted earnings (loss) per common share: | |||
Continuing operations (in dollars per share) | (0.23) | 0.03 | 0.13 |
Discontinued operations, net of tax (in dollars per share) | (0.25) | (0.91) | (0.37) |
Diluted earnings (loss) per common share (in dollars per share) | $ (0.48) | $ (0.88) | $ (0.24) |
Weighted average common shares: | |||
Weighted average common shares used in computing basic earnings (loss) per common share (in shares) | 57,580 | 56,087 | 54,459 |
Weighted average common shares used in computing diluted earnings (loss) per common share (in shares) | 57,580 | 56,350 | 54,992 |
Corporate | |||
Income Statement [Abstract] | |||
Revenue | $ 0 | $ 0 | $ 0 |
Costs and expenses: | |||
(Loss) income from operations | (43,931) | (45,982) | (40,366) |
General, selling, and administrative | 41,492 | 43,745 | 38,623 |
Operating Segments | |||
General, selling, and administrative | $ 37,236 | $ 36,405 | $ 31,653 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
(Loss) income from continuing operations | $ (13,053) | $ 1,907 | $ 7,158 |
Loss from discontinued operations, net of tax | (14,342) | (51,037) | (20,620) |
Net loss | (27,395) | (49,130) | (13,462) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 72 | 281 | (735) |
Comprehensive loss | $ (27,323) | $ (48,849) | $ (14,197) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | IAL | IPI | Common Stock | Common StockIAL | Common StockIPI | Treasury Stock | Additional Paid-in Capital | Additional Paid-in CapitalIAL | Additional Paid-in CapitalIPI | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Non-controlling Interests |
Beginning balance at Dec. 31, 2014 | $ 306,354 | $ 5 | $ (495) | $ 254,233 | $ (502) | $ 52,762 | $ 351 | ||||||
Beginning balance (in shares) at Dec. 31, 2014 | 54,634,000 | 449,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net loss | (13,462) | (13,462) | |||||||||||
Foreign currency translation adjustment | (735) | (735) | |||||||||||
Stock issued under employee stock purchase plan | 879 | 879 | |||||||||||
Stock issued under employee stock purchase plan (in shares) | (77,000) | ||||||||||||
Common stock issued in payment of accrued liability | 0 | ||||||||||||
Stock options exercised | 1,372 | $ 1 | 1,371 | ||||||||||
Stock options exercised (in shares) | 768,000 | ||||||||||||
Restricted stock granted (in shares) | 758,000 | ||||||||||||
Restricted stock forfeited (in shares) | 33,000 | ||||||||||||
Treasury stock purchased | $ (6,345) | $ (6,345) | |||||||||||
Treasury stock purchased (in shares) | 473,304 | 473,000 | |||||||||||
Stock surrendered for exercise of stock options | $ (1,332) | $ (1,332) | |||||||||||
Stock surrendered for exercise of stock options (in shares) | 106,810 | 107,000 | |||||||||||
Excess tax benefit related to share-based awards | $ 1,273 | 1,273 | |||||||||||
Stock compensation expense | 14,681 | 14,681 | |||||||||||
Investment in Flotek Gulf, LLC and Flotek Gulf Research, LLC | 7 | 7 | |||||||||||
Stock issued in acquisition | $ 1,014 | $ 1,014 | |||||||||||
Stock issued in acquisition (in shares) | 60,000 | ||||||||||||
Repurchase of common stock | (9,697) | $ (9,697) | |||||||||||
Repurchase of common stock (in shares) | 800,000 | ||||||||||||
Ending balance at Dec. 31, 2015 | 294,009 | $ 6 | $ (17,869) | 273,451 | (1,237) | 39,300 | 358 | ||||||
Ending balance (in shares) at Dec. 31, 2015 | 56,220,000 | 1,785,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net loss | (49,130) | (49,130) | |||||||||||
Foreign currency translation adjustment | 281 | 281 | |||||||||||
Sale of common stock, net of issuance cost | $ 30,090 | 30,090 | |||||||||||
Sale of common stock, net of issuance cost (in shares) | 2,450,339 | 2,450,000 | |||||||||||
Stock issued under employee stock purchase plan | $ 833 | 833 | |||||||||||
Stock issued under employee stock purchase plan (in shares) | (93,000) | ||||||||||||
Common stock issued in payment of accrued liability | 0 | ||||||||||||
Stock options exercised | $ 184 | 184 | |||||||||||
Stock options exercised (in shares) | 114,112 | 114,000 | |||||||||||
Restricted stock granted (in shares) | 632,240 | 653,000 | |||||||||||
Restricted stock forfeited (in shares) | 96,000 | ||||||||||||
Treasury stock purchased | $ (2,350) | $ (2,350) | |||||||||||
Treasury stock purchased (in shares) | 238,216 | 238,000 | |||||||||||
Stock surrendered for exercise of stock options | $ (50) | $ (50) | |||||||||||
Stock surrendered for exercise of stock options (in shares) | 3,225 | 3,000 | |||||||||||
Reduction in tax benefit related to share-based awards | $ (2,510) | (2,510) | |||||||||||
Stock compensation expense | $ 13,076 | 13,076 | |||||||||||
Stock issued in acquisition | $ 3,268 | $ 3,268 | |||||||||||
Stock issued in acquisition (in shares) | 247,764 | 248,000 | |||||||||||
Ending balance at Dec. 31, 2016 | $ 287,701 | $ 6 | $ (20,269) | 318,392 | (956) | (9,830) | 358 | ||||||
Ending balance (in shares) at Dec. 31, 2016 | 59,685,000 | 2,029,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Net loss | (27,395) | (27,395) | |||||||||||
Foreign currency translation adjustment | $ 72 | 72 | |||||||||||
Sale of common stock, net of issuance cost (in shares) | 0 | ||||||||||||
Stock issued under employee stock purchase plan | $ 654 | 654 | |||||||||||
Stock issued under employee stock purchase plan (in shares) | (113,000) | ||||||||||||
Common stock issued in payment of accrued liability | 188 | 188 | |||||||||||
Stock options exercised | $ 5,884 | 5,884 | |||||||||||
Stock options exercised (in shares) | 663,288 | 663,000 | |||||||||||
Restricted stock granted (in shares) | 275,029 | 275,000 | |||||||||||
Restricted stock forfeited (in shares) | 122,000 | ||||||||||||
Treasury stock purchased | $ (1,729) | $ (1,729) | |||||||||||
Treasury stock purchased (in shares) | 199,644 | 200,000 | |||||||||||
Stock surrendered for exercise of stock options | $ (5,863) | $ (5,863) | |||||||||||
Stock surrendered for exercise of stock options (in shares) | 478,287 | 478,000 | |||||||||||
Stock compensation expense | $ 10,949 | 10,949 | |||||||||||
Stock issued in acquisition (in shares) | 0 | ||||||||||||
Repurchase of common stock | $ (5,203) | $ (5,203) | |||||||||||
Repurchase of common stock (in shares) | 905,000 | ||||||||||||
Ending balance at Dec. 31, 2017 | $ 265,258 | $ 6 | $ (33,064) | $ 336,067 | $ (884) | $ (37,225) | $ 358 | ||||||
Ending balance (in shares) at Dec. 31, 2017 | 60,623,000 | 3,621,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net loss | $ (27,395) | $ (49,130) | $ (13,462) |
Loss from discontinued operations, net of tax | (14,342) | (51,037) | (20,620) |
(Loss) income from continuing operations | (13,053) | 1,907 | 7,158 |
Adjustments to reconcile (loss) income from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 12,159 | 10,429 | 8,735 |
Amortization of deferred financing costs | 472 | 424 | 346 |
Provision for doubtful accounts | 113 | 558 | 367 |
Loss (gain) on sale of assets | 292 | (18) | (12) |
Stock compensation expense | 11,172 | 12,053 | 13,083 |
Deferred income tax provision (benefit) | 181 | (19,681) | (7,929) |
Reduction in (excess) tax benefit related to share-based awards | 1,989 | 2,510 | (1,273) |
Changes in current assets and liabilities: | |||
Accounts receivable, net | 1,456 | (11,544) | 13,676 |
Inventories | (17,291) | (6,528) | (9,905) |
Income taxes receivable | 8,008 | (8,189) | (4,700) |
Other current assets | 12,153 | (14,489) | 167 |
Accounts payable | (8,719) | 12,653 | (7,653) |
Accrued liabilities | 8,180 | 23,946 | 9,552 |
Income taxes payable | 0 | (1,890) | 3,842 |
Interest payable | 19 | (87) | 18 |
Net cash provided by operating activities | 17,131 | 2,054 | 25,472 |
Cash flows from investing activities: | |||
Capital expenditures | (8,960) | (13,960) | (16,391) |
Proceeds from sale of businesses | 18,490 | 0 | 0 |
Proceeds from sale of assets | 689 | 115 | 13 |
Payments for acquisitions, net of cash acquired | 0 | (7,863) | 0 |
Purchase of patents and other intangible assets | (479) | (573) | (627) |
Net cash provided by (used in) investing activities | 9,740 | (22,281) | (17,005) |
Cash flows from financing activities: | |||
Repayments of indebtedness | (9,833) | (15,564) | (10,143) |
Borrowings on revolving credit facility | 383,160 | 338,460 | 382,666 |
Repayments on revolving credit facility | (393,776) | (325,043) | (366,018) |
Debt issuance costs | (579) | (1,199) | (10) |
(Reduction in) excess tax benefit related to share-based awards | 0 | (2,510) | 1,273 |
Purchase of treasury stock | (1,729) | (2,350) | (6,345) |
Proceeds from sale of common stock | 654 | 30,923 | 879 |
Repurchase of common stock | (5,203) | 0 | (9,697) |
Proceeds from exercise of stock options | 21 | 134 | 39 |
Proceeds from noncontrolling interest | 0 | 0 | 7 |
Net cash (used in) provided by financing activities | (27,285) | 22,851 | (7,349) |
Discontinued operations: | |||
Net cash (used in) provided by operating activities | (684) | 12 | 1,199 |
Net cash provided by (used in) investing activities | 708 | (18) | (1,199) |
Net cash flows provided by (used in) discontinued operations | 24 | (6) | 0 |
Effect of changes in exchange rates on cash and cash equivalents | 151 | (3) | (176) |
Net (decrease) increase in cash and cash equivalents | (239) | 2,615 | 942 |
Cash and cash equivalents at beginning of year | 4,823 | 2,208 | 1,266 |
Cash and cash equivalents at end of year | $ 4,584 | $ 4,823 | $ 2,208 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations Flotek Industries, Inc. (“Flotek” or the “Company”) is a global, diversified, technology-driven company that develops and supplies chemistries and services to the oil and gas industries, and high value compounds to companies that make food and beverages, cleaning products, cosmetics, and other products that are sold in consumer and industrial markets. The Company’s oilfield business includes specialty chemistries and logistics which enable its customers in pursuing improved efficiencies in the drilling and completion of their wells. The Company also provides automated bulk material handling, loading facilities, and blending capabilities. The Company processes citrus oil to produce (1) high value compounds used as additives by companies in the flavors and fragrances markets and (2) environmentally friendly chemistries for use in numerous industries around the world, including the oil and gas (“O&G”) industry. Flotek operates in over 20 domestic and international markets. Customers include major integrated O&G companies, oilfield services companies, independent O&G companies, pressure-pumping service companies, national and state-owned oil companies, and international supply chain management companies. The Company also serves customers who purchase non-energy-related citrus oil and related products, including household and commercial cleaning product companies, fragrance and cosmetic companies, and food manufacturing companies. Flotek was initially incorporated under the laws of the Province of British Columbia on May 17, 1985. On October 23, 2001, Flotek changed its corporate domicile to the state of Delaware. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Flotek Industries, Inc. and all wholly-owned subsidiary corporations. Where Flotek owns less than 100% of the share capital of its subsidiaries, but is still considered to have sufficient ownership to control the business, results of the business operations are consolidated within the Company’s financial statements. The ownership interests held by other parties are shown as noncontrolling interests. During the fourth quarter of 2016, the Company classified the Drilling Technologies and Production Technologies segments as held for sale based on management’s intention to sell these businesses. The Company’s historical financial statements have been revised to present the operating results of the Drilling Technologies and Production Technologies segments as discontinued operations. The results of operations of Drilling Technologies and Production Technologies are presented as “Loss from discontinued operations” in the statement of operations and the related cash flows of these segments has been reclassified to discontinued operations for all periods presented. The assets and liabilities of the Drilling Technologies and Production Technologies segments have been reclassified to “Assets held for sale” and “Liabilities held for sale”, respectively, in the consolidated balance sheet for all periods presented. During 2017, the Company completed the sale or disposal of the assets and transfer or liquidation of liabilities and obligations of each of the Drilling Technologies and Production Technologies segments. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company does not have investments in any unconsolidated subsidiaries. Cash Equivalents Cash equivalents consist of highly liquid investments with maturities of three months or less at the date of purchase. Cash Management The Company uses a controlled disbursement account for its main cash account. Under this system, outstanding checks can be in excess of the cash balances at the bank before the disbursement account is funded, creating a book overdraft. Book overdrafts on this account are presented as a current liability in accounts payable in the consolidated balance sheets. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable arise from product sales and services and are stated at estimated net realizable value. This value incorporates an allowance for doubtful accounts to reflect any loss anticipated on accounts receivable balances. The Company regularly evaluates its accounts receivable to estimate amounts that will not be collected and records the appropriate provision for doubtful accounts as a charge to operating expenses. The allowance for doubtful accounts is based on a combination of the age of the receivables, individual customer circumstances, credit conditions, and historical write-offs and collections. The Company writes off specific accounts receivable when they are determined to be uncollectible. The majority of the Company’s customers are engaged in the energy industry. The cyclical nature of the energy industry may affect customers’ operating performance and cash flows, which directly impact the Company’s ability to collect on outstanding obligations. Additionally, certain customers are located in international areas that are inherently subject to risks of economic, political, and civil instability, which can impact the collectability of receivables. Changes in the allowance for doubtful accounts for continuing operations are as follows (in thousands): Year ended December 31, 2017 2016 2015 Balance, beginning of year $ 664 $ 709 $ 510 Charged to provision for doubtful accounts 113 558 367 Write-offs (44 ) (603 ) (168 ) Balance, end of year $ 733 $ 664 $ 709 Inventories Inventories consist of raw materials, work-in-process, and finished goods and are stated at the lower of cost, determined using the weighted-average cost method, or net realizable value. Finished goods inventories include raw materials, direct labor, and production overhead. The Company regularly reviews inventories on hand and current market conditions to determine if the cost of finished goods inventories exceeds current market prices and impairs the cost basis of the inventory accordingly. Historically, the Company recorded a provision for excess and obsolete inventory. Impairment or provisions are based primarily on forecasts of product demand, historical trends, market conditions, production, or procurement requirements and technological developments and advancements. Property and Equipment Property and equipment are stated at cost. The cost of ordinary maintenance and repair is charged to operating expense, while replacement of critical components and major improvements are capitalized. Depreciation or amortization of property and equipment, including assets held under capital leases, is calculated using the straight-line method over the asset’s estimated useful life as follows: Buildings and leasehold improvements 2-30 years Machinery, equipment, and rental tools 7-10 years Furniture and fixtures 3 years Transportation equipment 2-5 years Computer equipment and software 3-7 years Property and equipment are reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying amount of an asset or asset group may not be recoverable. Indicative events or circumstances include, but are not limited to, matters such as a significant decline in market value or a significant change in business climate. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted future cash flows from the use of the asset and its eventual disposition. The amount of impairment loss recognized is the excess of the asset’s carrying amount over its fair value. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less cost to sell. Upon sale or other disposition of an asset, the Company recognizes a gain or loss on disposal measured as the difference between the net carrying amount of the asset and the net proceeds received. Internal Use Computer Software Costs Direct costs incurred to purchase and develop computer software for internal use are capitalized during the application development and implementation stages. These software costs have been primarily for enterprise-level business and finance software that is customized to meet the Company’s specific operational needs. Capitalized costs are included in property and equipment and are amortized on a straight-line basis over the estimated useful life of the software beginning when the software project is substantially complete and placed in service. Costs incurred during the preliminary project stage and costs for training, data conversion, and maintenance are expensed as incurred. The Company amortizes software costs using the straight-line method over the expected life of the software, generally 3 to 7 years. The unamortized amount of capitalized software was $4.0 million at December 31, 2017 . Goodwill Goodwill is the excess of cost of an acquired entity over the amounts assigned to identifiable assets acquired and liabilities assumed in a business combination. Goodwill is not subject to amortization, but is tested for impairment annually during the fourth quarter, or more frequently if an event occurs or circumstances change that would indicate a potential impairment. These circumstances may include an adverse change in the business climate or a change in the assessment of future operations of a reporting unit. The Company assesses whether a goodwill impairment exists using both qualitative and quantitative assessments. The qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If, based on this qualitative assessment, it is determined that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company does not perform a quantitative assessment. If the qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount or if the Company elects not to perform a qualitative assessment, a quantitative impairment test is performed to determine whether goodwill impairment exists at the reporting unit. The quantitative impairment test, used to identify both the existence of impairment and the amount of impairment loss, compares the estimated fair value of each reporting unit with goodwill to its carrying amount, including goodwill. To determine fair value estimates, the Company uses the income approach based on discounted cash flow analyses, combined, when appropriate, with a market-based approach. The market-based approach considers valuation comparisons of recent public sale transactions of similar businesses and earnings multiples of publicly traded businesses operating in industries consistent with the reporting unit. If the carrying amount of a reporting unit, including goodwill, exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the amount of goodwill allocated to that reporting unit. Other Intangible Assets The Company’s other intangible assets have finite and indefinite lives and consist of customer relationships, trademarks, brand names, and purchased patents. The cost of intangible assets with finite lives is amortized using the straight-line method over the estimated period of economic benefit, ranging from 2 to 20 years . Asset lives are adjusted whenever there is a change in the estimated period of economic benefit. No residual value has been assigned to these intangible assets. Intangible assets with finite lives are tested for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. These conditions may include a change in the extent or manner in which the asset is being used or a change in future operations. The Company assesses the recoverability of the carrying amount by preparing estimates of future revenue, margins, and cash flows. If the sum of expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, an impairment loss is recognized. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. Fair value of these assets may be determined by a variety of methodologies, including discounted cash flow models. Intangible assets with indefinite lives are not subject to amortization, but are tested for impairment annually during the fourth quarter, or more frequently if an event occurs or circumstances change that would indicate a potential impairment. These circumstances may include, but are not limited to, a significant adverse change in the business climate, unanticipated competition, or a change in projected operations or results of a reporting unit. The Company assesses whether an indefinite lived intangible impairment exists using both qualitative and quantitative assessments. The qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not that the fair value of the indefinite lived intangible is less than its carrying amount. If, based on this qualitative assessment, it is determined that it is not more likely than not that the fair value of the indefinite lived intangible is less than its carrying amount, the Company does not perform a quantitative assessment. If the qualitative assessment indicates that it is more likely than not that the indefinite-lived intangible asset is impaired or if the Company elects to not perform a qualitative assessment, the Company then performs the quantitative impairment test. The quantitative impairment test for an indefinite-lived intangible asset consists of a comparison of the fair value of the asset with its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Fair value of these assets may be determined by a variety of methodologies, including discounted cash flows. Business Combinations The Company includes the results of operations of its acquisitions in its consolidated results, prospectively from the date of acquisition. Acquisitions are accounted for by applying the acquisition method. The Company allocates the fair value of purchase consideration to the assets acquired, liabilities assumed, and any noncontrolling interests in the acquired entity generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired, liabilities assumed, and any noncontrolling interests in the acquired entity is recorded as goodwill. The primary items that generate goodwill include the value of the synergies between the acquired company and Flotek and the value of the acquired assembled workforce. Acquisition-related expenses are recognized separately from the business acquisition and are recognized as expenses as incurred. Fair Value Measurements The Company categorizes financial assets and liabilities using a three-tier fair value hierarchy, based on the nature of the inputs used to determine fair value. Inputs refer broadly to assumptions market participants would use to value an asset or liability and may be observable or unobservable. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). “Level 1” measurements are measurements using quoted prices in active markets for identical assets and liabilities. “Level 2” measurements are measurements using quoted prices in markets that are not active or that are based on quoted prices for similar assets or liabilities. “Level 3” measurements are measurements that use significant unobservable inputs which require a company to develop its own assumptions. When determining the fair value of assets and liabilities, the Company uses the most reliable measurement available. Revenue Recognition Revenue for product sales and services is recognized when all of the following criteria have been met: (i) persuasive evidence of an arrangement exists, (ii) products are shipped or services are rendered to the customer and significant risks and rewards of ownership have passed to the customer, (iii) the price to the customer is fixed and determinable, and (iv) collectability is reasonably assured. Products and services are sold with fixed or determinable prices and do not include right of return provisions or other significant post-delivery obligations. Deposits and other funds received in advance of delivery are deferred until the transfer of ownership is complete. Shipping and handling costs are reflected in cost of revenue. Taxes collected are not included in revenue; rather, taxes are accrued for future remittance to governmental authorities. For certain contracts related to the EOGA division and the Logistics division of the Energy Chemistry Technologies segment, the Company recognizes revenue under the percentage-of-completion method of accounting, measured by the percentage of “costs incurred to date” to the “total estimated costs of completion.” This percentage is applied to the “total estimated revenue at completion” to calculate proportionate revenue earned to date. Contracts for services are inclusive of direct labor and material costs, as well as, indirect costs of operations. General and administrative costs are charged to expense as incurred. Changes in job performance metrics and estimated profitability, including contract bonus or penalty provisions and final contract settlements, are recognized in the period such revisions appear probable. Known or anticipated losses on contracts are recognized in full when amounts are probable and estimable. The Company generally is not contractually obligated to accept returns, except for defective products. Typically products determined to be defective are replaced or the customer is issued a credit memo. There is typically no right of return or any significant post-delivery obligations. All costs associated with product returns are expensed as incurred. Foreign Currency Translation Financial statements of foreign subsidiaries are prepared using the currency of the primary economic environment of the foreign subsidiaries as the functional currency. Assets and liabilities of foreign subsidiaries are translated into U.S. dollars at exchange rates in effect as of the end of identified reporting periods. Revenue and expense transactions are translated using the average monthly exchange rate for the reporting period. Resultant translation adjustments are recognized as other comprehensive income (loss) within stockholders’ equity. Comprehensive Income (Loss) Comprehensive income (loss) encompasses all changes in stockholders’ equity, except those arising from investments from and distributions to stockholders. The Company’s comprehensive income (loss) includes net income (loss) and foreign currency translation adjustments. Research and Development Costs Expenditures for research activities relating to product development and improvement are charged to expense as incurred. Income Taxes During the year ended December 31, 2015, the Company restructured its legal entities such that there is only one U.S. tax filing group filing a single U.S. consolidated federal income tax return beginning in 2016. The Company uses the liability method in accounting for income taxes. Deferred tax assets and liabilities are recognized for temporary differences between financial statement carrying amounts and the tax bases of assets and liabilities and are measured using the tax rates expected to be in effect when the differences reverse. Deferred tax assets and liabilities are recognized related to the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Company’s assets and liabilities using statutory tax rates at the applicable year end. Deferred tax assets are also recognized for operating loss and tax credit carry forwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is used to reduce deferred tax assets when uncertainty exists regarding their realization. A valuation allowance is recorded to reduce previously recorded tax assets when it becomes more likely than not that such assets will not be realized. The Company evaluates, at least annually, net operating loss carry forwards and other net deferred tax assets and considers all available evidence, both positive and negative, to determine whether a valuation allowance is necessary relative to net operating loss carry forwards and other net deferred tax assets. In making this determination, the Company considers cumulative losses in recent years as significant negative evidence. The Company considers recent years to mean the current year plus the two preceding years. The Company considers the recent cumulative income or loss position as objectively verifiable evidence for the projection of future income, which consists primarily of determining the average of the pre-tax income of the current and prior two years after adjusting for certain items not indicative of future performance. Based on this analysis, the Company determines whether a valuation allowance is necessary. Historically, U.S. Federal income taxes are not provided on unremitted earnings of subsidiaries operating outside the U.S. because it is the Company’s intention to permanently reinvest undistributed earnings in the subsidiary. These earnings would become subject to income tax if they were remitted as dividends or loaned to a U.S. affiliate. Due to the 2017 Tax Cuts and Jobs Act, U.S. federal transition taxes have been recorded at December 31, 2017, for a one-time U.S. tax liability on those earnings which have not previously been repatriated to the U.S. Determination of the amount of unrecognized deferred U.S. income tax liability on these unremitted earnings is not practicable. The Company has performed an evaluation and concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. The Company’s policy is to record interest and penalties related to income tax matters as income tax expense. Earnings (Loss) Per Share Basic earnings (loss) per common share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to common stockholders, adjusted for the effect of assumed conversions of convertible notes and preferred stock, by the weighted average number of common shares outstanding, including potentially dilutive common share equivalents, if the effect is dilutive. Potentially dilutive common shares equivalents consist of incremental shares of common stock issuable upon exercise of stock options and warrants, settlement of restricted stock units, and conversion of convertible notes and convertible preferred stock. Debt Issuance Costs Costs related to debt issuance are capitalized and amortized as interest expense over the term of the related debt using the straight-line method, which approximates the effective interest method. Upon the repayment of debt, the Company accelerates the recognition of an appropriate amount of the costs as interest expense. Capitalization of Interest Interest costs are capitalized for qualifying in-process software development projects. Capitalization of interest commences when activities to prepare the asset are in progress and expenditures and borrowing costs are being incurred. Interest costs are capitalized until the assets are ready for their intended use. Capitalized interest is added to the cost of the underlying assets and amortized over the estimated useful lives of the assets. Stock-Based Compensation Stock-based compensation expense for share-based payments, related to stock options, restricted stock awards, and restricted stock units, is recognized based on their grant-date fair values. The Company recognizes compensation expense, net of estimated forfeitures, on a straight-line basis over the requisite service period of the award. Estimated forfeitures are based on historical experience. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of revenue and expenses. Actual results could differ from these estimates. Significant items subject to estimates and assumptions include application of the percentage-of-completion method of revenue recognition, the carrying amount and useful lives of property and equipment and intangible assets, impairment assessments, share-based compensation expense, and valuation allowances for accounts receivable, inventories, and deferred tax assets. Assets and Liabilities Held for Sale The Company classifies disposal groups as held for sale in the period in which all of the following criteria are met: (1) management, having the authority to approve the action, commits to a plan to sell the disposal group; (2) the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; (3) an active program to locate a buyer or buyers and other actions required to complete the plan to sell the disposal group have been initiated; (4) the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale, within one year, except if events of circumstances beyond the Company’s control extend the period of time required to sell the disposal group beyond one year; (5) the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group that is classified as held for sale is initially measured at the lower of its carrying amount or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Subsequent changes in the fair value of a disposal group less any costs to sell are reported as an adjustment to the carrying amount of the disposal group, as long as the new carrying amount does not exceed the carrying amount of the asset at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group for all periods presented in the line items assets held for sale and liabilities held for sale, respectively, in the consolidated balance sheets. Discontinued Operations The results of operations of a component of the Company that can be clearly distinguished, operationally and for financial reporting purposes, that either has been disposed of or is classified as held for sale is reported in discontinued operations, if the disposal represents a strategic shift that has, or will have, a major effect on the Company’s operations and financial results. General corporate overhead is not allocated to discontinued operations for all periods presented. Interest expense on debt required to be repaid as a result of disposal transactions is allocated to discontinued operations. Interest allocated to discontinued operations totaled $0.2 million , $0.4 million , and $0.2 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. The reclassifications did not impact net income. New Accounting Pronouncements (a) Application of New Accounting Standards Effective January 1, 2017, the Company adopted the accounting guidance in Accounting Standards Update (“ASU”) No. 2015-11, “ Simplifying the Measurement of Inventory .” This standard requires management to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Implementation of this standard did not have a material effect on the consolidated financial statements and related disclosures. Effective January 1, 2017, the Company adopted the accounting guidance in ASU No. 2015-17, “ Balance Sheet Classification of Deferred Taxes .” This standard eliminated the requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations are now required to classify all deferred tax assets and liabilities as noncurrent. Implementation of this standard did not have a material effect on the consolidated financial statements and related disclosures. The Company applied this standard retrospectively and, therefore, prior periods presented were adjusted. Effective January 1, 2017, the Company adopted the accounting guidance in ASU No. 2016-09, “ Improvements to Employee Share-Based Payment Accounting .” This standard simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance requires excess tax benefits and deficiencies to be recognized in the income statement rather than in additional paid-in capital. As a result of applying this change, the Company recognized a $2.0 million reduction in tax benefit in the provision for incomes taxes during the year ended December 31, 2017 . The Company applied this standard prospectively, where applicable, and, therefore, prior periods presented were not adjusted. Effective October 1, 2017, the Company adopted the accounting guidance in ASU No. 2017-04, “ Simplifying the Test for Goodwill Impairment .” This standard eliminates Step 2 from the goodwill impairment test. The Company will now recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Implementation of this standard did not have a material effect on the consolidated financial statements and related disclosures. (b) New Accounting Requirements and Disclosures In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “ Revenue from Contracts with Customers .” The ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity’s nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, which deferred the effective date by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. In March 2016, the FASB issued ASU No. 2016-08, which improves the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, which clarifies identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-11, which rescinds certain SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, effective upon adoption of ASU 2014-09, and ASU No. 2016-12, which reduces the potential for diversity in practice at initial application and reduces the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. In December 2016, the FASB issued ASU No. 2016-20, which provides technical corrections and improvements to the original guidance issued. In 2017, the Company formed a project team to evaluate the new revenue recognition standard. The team has identified the relevant revenue streams and documented the procedures and control changes required to address the impacts that ASU 2014-09 may have on its business, as well as trained appropriate personnel on the procedures and controls going into effect January 1, 2018. The evaluation efforts included identifying revenue streams with similar contract structures, performing a detailed review of key contracts by revenue stream, and comparing historical policies and practices to the new standard. From the analysis performed, two main revenue streams were identified from contracts with customers: (1) product sales and (2) services. The Company’s revenue recognition methodology does not materially change by the adoption of the new standard for product sales (point in time revenue recognition) and for service contracts (over time), which principally charge on a day rate basis and are primarily short-term in nature. Therefore, based on the assessment, the Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. The Company will adopt the new standard effective January 1, 2018, using the full retrospective method. In February 2016, the FASB issued ASU No. 2016-02, “ Leases .” This standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. The pronouncement is effec |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations During the fourth quarter 2016, the Company initiated a strategic restructuring of its business to enable a greater focus on its core businesses in energy chemistry and consumer and industrial chemistry. The Company executed a plan to sell or otherwise dispose of the Drilling Technologies and Production Technologies segments. An investment banking advisory services firm was engaged and actively marketed these segments. The Company met all of the criteria to classify the Drilling Technologies and Production Technologies segments’ assets and liabilities as held for sale in the fourth quarter 2016. The Company has classified the assets, liabilities, and results of operations for these two segments as “Discontinued Operations” for all periods presented. Disposal of the Drilling Technologies and Production Technologies reporting segments represented a strategic shift that would have a major effect on the Company’s operations and financial results. On December 30, 2016 , the Company sold a portion of its Drilling Technologies segment and recorded a loss of $1.2 million which is included in the loss from discontinued operations for the year ended December 31, 2016. On May 22, 2017 , the Company completed the sale of substantially all of the assets and transfer of certain specified liabilities and obligations of the Company’s Drilling Technologies segment to National Oilwell Varco, L.P. (“NOV”) for $17.0 million in cash consideration, subject to normal working capital adjustments, with $1.5 million held back by NOV for up to 18 months to satisfy potential indemnification claims. On May 23, 2017 , the Company completed the sale of substantially all of the assets and transfer of certain specified liabilities and obligations of the Company’s Production Technologies segment to Raptor Lift Solutions, LLC (“Raptor Lift”) for $2.9 million in cash consideration, with $0.4 million held back by Raptor Lift to satisfy potential indemnification claims. On August 16, 2017 , the Company completed the sale of substantially all of the remaining assets of the Company’s Drilling Technologies segment to Galleon Mining Tools, Inc. for $1.0 million in cash consideration and a note receivable of $1.0 million due in one year. The sale or disposal of the assets and transfer or liquidation of liabilities and obligations of these segments was completed in 2017. The Company has no continuing involvement with the discontinued operations. The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations for the years ended December 31, 2017, 2016, and 2015 (in thousands): Drilling Technologies Production Technologies 2017 2016 2015 2017 2016 2015 Discontinued operations: Revenue $ 11,534 $ 27,627 $ 52,112 $ 4,002 $ 8,292 $ 12,281 Cost of revenue (7,309 ) (18,667 ) (35,410 ) (3,236 ) (7,881 ) (10,179 ) Selling, general and administrative (6,963 ) (15,285 ) (21,049 ) (1,759 ) (3,790 ) (4,158 ) Depreciation and amortization — (1,714 ) (3,240 ) — (584 ) (658 ) Research and development (5 ) (64 ) (202 ) (364 ) (888 ) (596 ) Gain (loss) on disposal of long-lived assets 97 103 17 — (50 ) 3 Impairment of inventory and long-lived assets — (36,522 ) (19,568 ) — (3,913 ) (804 ) Loss from operations (2,646 ) (44,522 ) (27,340 ) (1,357 ) (8,814 ) (4,111 ) Other expense (96 ) (412 ) (259 ) (52 ) (96 ) (40 ) Loss on sale of businesses (1,600 ) (1,199 ) — (479 ) — — Loss on write-down of assets held for sale (6,831 ) (18,971 ) — (9,718 ) (6,161 ) — Loss before income taxes (11,173 ) (65,104 ) (27,599 ) (11,606 ) (15,071 ) (4,151 ) Income tax benefit 4,138 23,661 9,675 4,299 5,477 1,455 Net loss from discontinued operations $ (7,035 ) $ (41,443 ) $ (17,924 ) $ (7,307 ) $ (9,594 ) $ (2,696 ) The assets and liabilities held for sale on the Consolidated Balance Sheets as of December 31, 2017 and 2016 are as follows (in thousands): Drilling Technologies Production Technologies December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Assets: Accounts receivable, net $ — $ 5,072 $ — $ 1,784 Inventories — 9,078 — 8,115 Other current assets — 278 — 370 Long-term receivable — — — 4,179 Property and equipment, net — 11,277 — 3,978 Goodwill — 15,333 — 1,689 Other intangible assets, net — 7,395 — 484 Assets held for sale — 48,433 — 20,599 Valuation allowance — (18,971 ) — (6,161 ) Assets held for sale, net $ — $ 29,462 $ — $ 14,438 Liabilities: Accounts payable $ — $ 2,472 $ — $ 914 Accrued liabilities — 1,190 — 385 Liabilities held for sale $ — $ 3,662 $ — $ 1,299 At December 31, 2017, all remaining assets and liabilities of the discontinued operations were assumed by the Company’s continuing operations. These balances included $0.3 million of net accounts receivable, $1.4 million of sales price hold-back that will be received during 2018, and $1.4 million of accrued liabilities to be settled in 2018. |
Impairment of Inventory and Lon
Impairment of Inventory and Long-Lived Assets for Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of Inventory and Long-Lived Assets for Discontinued Operations | Impairment of Inventory and Long-Lived Assets for Discontinued Operations During the three months ended March 31, 2016 , as a result of changes in the oil and gas industry that occurred since the beginning of 2016 and the corresponding impact on the Company’s business outlook, the Company evaluated the direction of its business activities. Crude oil prices, which appeared to have stabilized during the fourth quarter of 2015, fell further during the first quarter of 2016, decreasing approximately 21% from average prices seen in the fourth quarter of 2015. The U.S. drilling rig count declined from 698 at December 31, 2015 to 450 at April 1, 2016, a decline of 35.5% . Due to the decreased rig activity and its impact on management’s expectations for future market activity, the Company further refocused operations of its Drilling Technologies segment. The Company decided to exit the business of building and repairing motors in all domestic markets. In addition, changes in drilling technique, including further escalation of the move to a dominance of pad drilling, reduced the marketability of certain other inventory items. The focus of the Production Technologies segment shifted to its new technologies for electric submersible pumps for the oil and gas industry and for hydraulic pumping units. Inventory associated with older technologies for these items has been evaluated for impairment. As a result of these changes in focus and projected declines in asset utilization, the Company recorded a pre-tax impairment of inventories as noted below. Changes in the business climate noted above and increasing operating losses experienced within the Drilling Technologies and Production Technologies segments during the three months ended March 31, 2016 , caused the Company to test asset groups within these two segments for recoverability. Recoverability of the carrying amount of the asset groups was based upon estimated future cash flows while taking into consideration various assumptions and estimates, including future use of the assets, remaining useful life of the assets, and eventual disposition of the assets. Undiscounted estimated cash flows of two asset groups associated with domestic operations in the Drilling Technologies segment did not exceed the carrying amount of the respective asset groups. Therefore, the Company performed an analysis of discounted future cash flows to determine the fair value of each of these two asset groups. As a result of this testing, the Company recorded a pre-tax impairment of long-lived assets as noted below. In addition, during the three months ended June 30, 2015 , as a result of decreased rig activity and its impact on management’s expectations for future market activity, the Company refocused the Drilling Technologies segment to businesses and markets that had the best opportunity for profitable growth in the future. In addition, the Company shifted the focus of the Production Technologies segment to oil production markets and away from coal bed methane markets. As a result of these changes in focus and projected declines in asset utilization, the Company recorded pre-tax impairment charges as noted below. The Company recorded impairment charges during the three months ended March 31, 2016 and June 30, 2015 , as follows (in thousands): Three months ended March 31, 2016 June 30, 2015 Drilling Technologies: Inventories $ 12,653 $ 17,241 Long-lived assets: Property and equipment 14,642 2,327 Intangible assets other than goodwill 9,227 — Production Technologies: Inventories 3,913 804 Total impairment $ 40,435 $ 20,372 Based on the changes in the business climate discussed above and continuing operating losses experienced during the three months ended March 31, 2016 , June 30, 2016 , September 30, 2016 , and December 31, 2016 , goodwill within the Teledrift and Production Technologies reporting units was tested for impairment. However, no impairments of goodwill were recorded based upon this testing. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On July 27, 2016, the Company acquired 100% of the stock and interests in International Polymerics, Inc. (“IPI”) and related entities for $7.9 million in cash consideration, net of cash acquired, and 247,764 shares of the Company’s common stock. IPI is a U.S. based manufacturer of high viscosity guar gum and guar slurry for the oil and gas industry with a wide selection of stimulation chemicals. On January 27, 2015, the Company acquired 100% of the assets of International Artificial Lift, LLC (“IAL”) for $1.3 million in cash consideration and 60,024 shares of the Company’s common stock. IAL, a development-stage company at acquisition, specializes in the design, manufacturing and service of next-generation hydraulic pumping units that serve to increase and maximize production for oil and natural gas wells. The assets, liabilities, and results of operations of IAL are included in discontinued operations. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information is as follows (in thousands): Year ended December 31, 2017 2016 2015 Supplemental non-cash investing and financing activities: Value of common stock issued in acquisitions $ — $ 3,268 $ 1,014 Value of common stock issued in payment of accrued liability 188 — — Exercise of stock options by common stock surrender 5,863 50 1,332 Supplemental cash payment information: Interest paid $ 1,851 $ 2,024 $ 1,398 Income taxes (received, net of payments) paid, net of refunds (10,195 ) 333 1,547 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2017 | |
Revenue [Abstract] | |
Revenue | Revenue The Company differentiates revenue and cost of revenue (excluding depreciation and amortization) based on whether the source of revenue is attributable to products or services. Revenue and cost of revenue (excluding depreciation and amortization) by source are as follows (in thousands): Year ended December 31, 2017 2016 2015 Revenue: Products $ 310,716 $ 256,263 $ 258,968 Services 6,382 6,569 10,998 $ 317,098 $ 262,832 $ 269,966 Cost of revenue (excluding depreciation and amortization): Products $ 210,281 $ 162,488 $ 164,837 Services 4,848 7,767 7,196 $ 215,129 $ 170,255 $ 172,033 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are as follows (in thousands): December 31, 2017 2016 Raw materials $ 42,682 $ 28,626 Work-in-process 3,284 2,918 Finished goods 29,793 26,739 Inventories $ 75,759 $ 58,283 Changes in the reserve for excess and obsolete inventory are as follows (in thousands): 2017 2016 2015 Balance, beginning of year $ — $ — $ — Charged to costs and expenses 724 1,301 16 Deductions (724 ) (1,301 ) (16 ) Balance, end of the year $ — $ — $ — During the years ended December 31, 2017 , 2016 , and 2015 , all inventory items identified as excess and obsolete inventory were charged to costs and expenses. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are as follows (in thousands): December 31 2017 2016 Land $ 6,724 $ 5,837 Buildings and leasehold improvements 43,899 42,986 Machinery and equipment 41,548 36,187 Fixed assets in progress 4,298 3,235 Furniture and fixtures 2,002 1,969 Transportation equipment 2,200 3,059 Computer equipment and software 12,181 11,844 Property and equipment 112,852 105,117 Less accumulated depreciation (39,019 ) (30,426 ) Property and equipment, net $ 73,833 $ 74,691 Depreciation expense totaled $9.5 million , $7.6 million , and $5.8 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. During the years ended December 31, 2017 , 2016 , and 2015 , no impairments were recognized related to property and equipment. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The Company has two reporting units, Energy Chemistry Technologies and Consumer and Industrial Chemistry Technologies, which have existing goodwill balances at December 31, 2017 . Goodwill is tested for impairment annually in the fourth quarter, or more frequently if circumstances indicate a potential impairment. During the fourth quarter of 2017, the Company adopted ASU 2017-04, which eliminates Step 2 from the goodwill impairment test. If the carrying amount exceeds the reporting unit’s fair value, the Company will now recognize an impairment charge for the excess amount. During annual goodwill impairment testing for the year ended December 31, 2017 , the Company first assessed the qualitative factors and was unable to conclude that it was not more likely than not that fair value of the Energy Chemistry Technologies and Consumer and Industrial Chemistry Technologies reporting units exceeded the carrying amount of the respective reporting units. Therefore, the Company performed the quantitative impairment test for both reporting units. The result of this testing indicated that the fair value of the Energy Chemistry Technologies and Consumer and Industrial Chemistry Technologies reporting units exceeded the carrying amount, including goodwill, of the respective reporting units. During annual goodwill impairment testing for the year ended December 31, 2016 , the Company first assessed qualitative factors to determine whether it was necessary to perform the two-step goodwill impairment test that the Company has historically used. The Company concluded that it was not more likely than not that goodwill was impaired as of the fourth quarter of 2016 , and therefore, further testing was not required. During annual goodwill impairment testing for the year ended December 31, 2015 , the Company assessed the qualitative factors and concluded it was not more likely than not that there was an impairment of goodwill for the Consumer and Industrial Chemistry Technologies reporting unit. However, the Company was not able to conclude that it was not more likely than not that fair value of the Energy Chemistry Technologies reporting unit exceeded its carrying amount. Therefore, the Company performed the Step 1 impairment test for this reporting unit. The result of the Step 1 test indicated that the fair value of the Energy Chemistry Technologies reporting unit exceeded its carrying amount. Therefore, no further testing was required for this reporting unit. No impairments of goodwill were recognized during the years ended December 31, 2017 , 2016 , and 2015 . Changes in the carrying amount of goodwill for each reporting unit are as follows (in thousands): Energy Chemistry Technologies Consumer and Industrial Chemistry Technologies Total Balance at December 31, 2015: Goodwill $ 36,318 $ 19,480 $ 55,798 Accumulated impairment losses — — — Goodwill balance, net 36,318 19,480 55,798 Activity during the year 2016: Goodwill impairment recognized — — — Acquisition goodwill recognized 862 — 862 Balance at December 31, 2016: Goodwill 37,180 19,480 56,660 Accumulated impairment losses — — — Goodwill balance, net 37,180 19,480 56,660 Activity during the year 2017: Goodwill impairment recognized — — — Acquisition goodwill recognized — — — Balance at December 31, 2017: Goodwill 37,180 19,480 56,660 Accumulated impairment losses — — — Goodwill balance, net $ 37,180 $ 19,480 $ 56,660 |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Other Intangible Assets Other intangible assets are as follows (in thousands): December 31, 2017 2016 Cost Accumulated Amortization Cost Accumulated Amortization Finite lived intangible assets: Patents and technology $ 17,310 $ 5,586 $ 16,815 $ 4,537 Customer lists 30,877 8,127 30,877 6,518 Trademarks and brand names 1,549 1,117 1,467 1,069 Total finite lived intangible assets acquired 49,736 14,830 49,159 12,124 Deferred financing costs 1,791 96 1,804 117 Total amortizable intangible assets 51,527 $ 14,926 50,963 $ 12,241 Indefinite lived intangible assets: Trademarks and brand names 11,630 11,630 Total other intangible assets $ 63,157 $ 62,593 Carrying amount: Other intangible assets, net $ 48,231 $ 50,352 Intangible assets acquired are amortized on a straight-line basis over two to 20 years. Amortization of intangible assets acquired totaled $2.7 million , $2.8 million , and $3.0 million for the years end ended December 31, 2017 , 2016 , and 2015 , respectively. Amortization of deferred financing costs totaled $0.5 million , $0.4 million , and $0.3 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Estimated future amortization expense for other finite lived intangible assets, including deferred financing costs, at December 31, 2017 is as follows (in thousands): Year ending December 31, 2018 $ 3,017 2019 2,956 2020 2,929 2021 2,916 2022 2,664 Thereafter 22,119 Other amortizable intangible assets, net $ 36,601 During the years ended December 31, 2017 , 2016 , and 2015 , no impairments were recognized related to other intangible assets. |
Long-Term Debt and Credit Facil
Long-Term Debt and Credit Facility | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Credit Facility | Long-Term Debt and Credit Facility Long-term debt is as follows (in thousands): December 31, 2017 2016 Long-term debt: Borrowings under revolving credit facility $ 27,950 $ 38,566 Term loan — 9,833 Total long-term debt 27,950 48,399 Less current portion of long-term debt (27,950 ) (40,566 ) Long-term debt, less current portion $ — $ 7,833 Credit Facility On May 10, 2013, the Company and certain of its subsidiaries (the “Borrowers”) entered into an Amended and Restated Revolving Credit, Term Loan and Security Agreement (the “Credit Facility”) with PNC Bank, National Association (“PNC Bank”). The Company may borrow under the Credit Facility for working capital, permitted acquisitions, capital expenditures and other corporate purposes. The Credit Facility, as amended, continues in effect until May 10, 2022 . Under terms of the Credit Facility, as amended, the Company has total borrowing availability of $75 million under a revolving credit facility. A term loan has been repaid in May 2017 and may not be re-borrowed. The Credit Facility is secured by substantially all of the Company’s domestic real and personal property, including accounts receivable, inventory, land, buildings, equipment and other intangible assets. The Credit Facility contains customary representations, warranties, and both affirmative and negative covenants. In the event of default, PNC Bank may accelerate the maturity date of any outstanding amounts borrowed under the Credit Facility. The Credit Facility contains financial covenants to maintain a fixed charge coverage ratio and a leverage ratio, as well as establishes an annual limit on capital expenditures. The fixed charge coverage ratio is the ratio of (a) earnings before interest, taxes, depreciation, and amortization (“EBITDA”), adjusted for non-cash stock-based compensation and the loss from discontinued operations, less cash taxes paid during the period to (b) all debt payments during the period. The fixed charge coverage ratio requirement began for the quarter ended March 31, 2017 at 1.00 to 1.00 and increased to 1.10 to 1.00 for the year ended December 31, 2017, and for each fiscal quarter thereafter. The leverage ratio (funded debt to adjusted EBITDA) requirement began for the six months ended June 30, 2017 at not greater than 5.50 to 1.00 and reduces to not greater than 3.00 to 1.00 for the year ending September 30, 2018, and thereafter. The annual limit on capital expenditures for 2017 was $20 million . The annual limit on capital expenditures for 2018 and each fiscal year thereafter is $26 million . The annual limit on capital expenditures is reduced if the undrawn availability under the revolving credit facility falls below $15 million at any month-end. The Credit Facility restricts the payment of cash dividends on common stock and limits the amount that may be used to repurchase common stock and preferred stock. Beginning with fiscal year 2017, the Credit Facility includes a provision that 25% of EBITDA minus cash paid for taxes, dividends, debt payments, and unfunded capital expenditures, not to exceed $3.0 million for any year, be paid on the outstanding balance within 75 days of the fiscal year end. For the year ended December 31, 2017 , there was no additional payment required based on this provision. Each of the Company’s domestic subsidiaries is fully obligated for Credit Facility indebtedness as a borrower or as a guarantor. (a) Revolving Credit Facility Under the revolving credit facility, the Company may borrow up to $75 million through May 10, 2022 . This includes a sublimit of $10 million that may be used for letters of credit. The revolving credit facility is secured by substantially all of the Company’s domestic accounts receivable and inventory. At December 31, 2017 , eligible accounts receivable and inventory securing the revolving credit facility provided total borrowing capacity of $71.9 million under the revolving credit facility. Available borrowing capacity, net of outstanding borrowings, was $43.9 million at December 31, 2017 . The interest rate on advances under the revolving credit facility varies based on the fixed charge coverage ratio. Rates range (a) between PNC Bank’s base lending rate plus 1.5% to 2.0% or (b) between the London Interbank Offered Rate (LIBOR) plus 2.5% to 3.0% . PNC Bank’s base lending rate was 4.5% at December 31, 2017 . The Company is required to pay a monthly facility fee of 0.25% per annum on any unused amount under the commitment based on daily averages. At December 31, 2017 , $28.0 million was outstanding under the revolving credit facility, with $6.0 million borrowed as base rate loans at an interest rate of 6.0% and $22.0 million borrowed as LIBOR loans at an interest rate of 4.07% . Borrowing under the revolving credit facility is classified as current debt as a result of the required lockbox arrangement and the subjective acceleration clause. (b) Term Loan The amount borrowed under the term loan was reset to $10 million effective as of September 30, 2016 . Monthly principal payments of $0.2 million were required. On May 22, 2017 , the Company repaid the outstanding balance of the term loan. The term loan may not be re-borrowed. Debt Maturities At December 31, 2017 , borrowing under the revolving credit facility, which matures on May 10, 2022 , is classified a current debt, and therefore, the entire balance is considered to mature in 2018 . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company categorizes financial assets and liabilities into the three levels of the fair value hierarchy. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value and bases categorization within the hierarchy on the lowest level of input that is available and significant to the fair value measurement. • Level 1 — Quoted prices in active markets for identical assets or liabilities; • Level 2 — Observable inputs other than Level 1, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 — Significant unobservable inputs that are supported by little or no market activity or that are based on the reporting entity’s assumptions about the inputs. Liabilities Measured at Fair Value on a Recurring Basis At December 31, 2017 and 2016 , no liabilities were required to be measured at fair value on a recurring basis. There were no transfers in or out of either Level 1, Level 2, or Level 3 fair value measurements during the years ended December 31, 2017 , 2016 , and 2015 . Assets Measured at Fair Value on a Nonrecurring Basis The Company’s non-financial assets, including property and equipment, goodwill, and other intangible assets are measured at fair value on a non-recurring basis and are subject to fair value adjustment in certain circumstances. No impairment of any of these assets was recognized during the years ended December 31, 2017 , 2016 , and 2015 . Fair Value of Other Financial Instruments The carrying amounts of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate fair value due to the short-term nature of these accounts. The Company had no cash equivalents at December 31, 2017 or 2016 . The carrying amount and estimated fair value of the Company’s long-term debt are as follows (in thousands): December 31, 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value Borrowings under revolving credit facility $ 27,950 $ 27,950 $ 38,566 $ 38,566 Term loan — — 9,833 9,833 The carrying amount of borrowings under the revolving credit facility and the term loan approximate their fair value because the interest rate is variable. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding combined with dilutive common share equivalents outstanding, if the effect is dilutive. Potentially dilutive securities were excluded from the calculation of diluted loss per share for the year ended December 31, 2017 , since including them would have an anti-dilutive effect on loss per share due to the loss from continuing operations incurred during the period. Securities convertible into shares of common stock that were not considered in the diluted loss per share calculations were 0.7 million stock options, before they were converted into common shares during 2017, and 0.7 million restricted stock units. Basic and diluted earnings (loss) per common share are as follows (in thousands, except per share data): Year ended December 31, 2017 2016 2015 (Loss) income from continuing operations $ (13,053 ) $ 1,907 $ 7,158 Loss from discontinued operations, net of tax (14,342 ) (51,037 ) (20,620 ) Net loss - Basic and Diluted $ (27,395 ) $ (49,130 ) $ (13,462 ) Weighted average common shares outstanding - Basic 57,580 56,087 54,459 Assumed conversions: Incremental common shares from stock options — 197 527 Incremental common shares from restricted stock units — 66 6 Weighted average common shares outstanding - Diluted 57,580 56,350 54,992 Basic earnings (loss) per common share: Continuing operations $ (0.23 ) $ 0.03 $ 0.13 Discontinued operations, net of tax (0.25 ) (0.91 ) (0.38 ) Basic earnings (loss) per common share $ (0.48 ) $ (0.88 ) $ (0.25 ) Diluted earnings (loss) per common share: Continuing operations $ (0.23 ) $ 0.03 $ 0.13 Discontinued operations, net of tax (0.25 ) (0.91 ) (0.37 ) Diluted earnings (loss) per common share $ (0.48 ) $ (0.88 ) $ (0.24 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Components of the income tax expense are as follows (in thousands): Year ended December 31, 2017 2016 2015 Current: Federal $ (1,314 ) $ 442 $ 3,944 State 675 (85 ) 390 Foreign 488 (526 ) 1,841 Total current (151 ) (169 ) 6,175 Deferred: Federal 8,701 1,564 (2,628 ) State 337 (112 ) (63 ) Foreign (45 ) (46 ) (8 ) Total deferred 8,993 1,406 (2,699 ) Income tax expense $ 8,842 $ 1,237 $ 3,476 The components of (loss) income before income taxes are as follows (in thousands): Year ended December 31, 2017 2016 2015 United States $ (2,844 ) $ 4,502 $ 4,760 Foreign (1,367 ) (1,358 ) 5,874 (Loss) income before income taxes $ (4,211 ) $ 3,144 $ 10,634 A reconciliation of the U.S. federal statutory tax rate to the effective income tax rate is as follows: Year ended December 31, 2017 2016 2015 Federal statutory tax rate (35.0 )% 35.0 % 35.0 % State income taxes, net of federal benefit 14.2 (5.3 ) 2.0 Non-U.S. income taxed at different rates 11.6 1.2 (4.4 ) Impact of 2017 Tax Cuts and Jobs Act 173.6 — — Net operating loss carryback adjustment — 10.0 1.4 Reduction in tax benefit related to stock-based awards 47.2 — — Non-deductible expenditures 11.0 13.1 5.9 Research and development credit (10.8 ) (12.7 ) (3.5 ) Other (1.8 ) (2.0 ) (3.7 ) Effective income tax rate 210.0 % 39.3 % 32.7 % Fluctuations in effective tax rates have historically been impacted by permanent tax differences with no associated income tax impact, changes in state apportionment factors, including the effect on state deferred tax assets and liabilities, and non-U.S. income taxed at different rates. Changes in the effective tax rate during 2017 included the Company implementing ASU No. 2016-09, which requires accounting for excess tax benefits and tax deficiencies related to stock-based awards as discrete items in the period in which they occur and the impact of the 2017 Tax Cuts and Jobs Act. Comprehensive tax reform legislation enacted in December 2017, commonly referred to as the Tax Cuts and Jobs Acts (“2017 Tax Act”), makes significant changes to U.S. federal income tax laws. The 2017 Tax Act, among other things, reduces the corporate income tax rate from 35% to 21% , partially limits the deductibility of business interest expense and net operating losses, provides additional limitations on the deductibility of executive compensation, imposes a one-time tax on unrepatriated earnings from certain foreign subsidiaries, taxes offshore earnings at reduced rates regardless of whether they are repatriated, and allows the immediate deduction of certain new investments instead of deductions for depreciation expense over time. The Company has not completed its determination of the 2017 Tax Act and recorded provisional amounts in its financial statements as of December 31, 2017. The Company recorded a provisional expense for the effects of the 2017 Tax Act of $7.3 million . The effects of the 2017 Tax Act on the Company include three main categories: 1) remeasurement of the net deferred tax assets from 35% to 21% , which resulted in tax expense of $5.5 million ; 2) a one-time tax on unrepatriated earnings from certain foreign subsidiaries of $0.2 million ; and 3) additional limitations on the deductibility of executive compensation, which resulted in tax expense of $1.6 million . The Company will continue to evaluate the 2017 Tax Act and adjust the provisional amounts as additional information is obtained. The ultimate impact of the 2017 Tax Act may differ from the provisional amounts recorded due to additional information becoming available, changes in interpretation of the 2017 Tax Act, and additional regulatory guidance that may be issued. Deferred income taxes reflect the tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the value reported for income tax purposes, at the enacted tax rates expected to be in effect when the differences reverse. The components of deferred tax assets and liabilities are as follows (in thousands): December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 24,569 $ 21,212 Allowance for doubtful accounts 981 1,582 Inventory valuation reserves 827 2,205 Equity compensation 685 3,161 Goodwill — 10,788 Accrued compensation 222 80 Foreign tax credit carryforward 3,955 2,365 Other — 76 Total gross deferred tax assets 31,239 41,469 Valuation allowance (1,187 ) (1,053 ) Total deferred tax assets, net 30,052 40,416 Deferred tax liabilities: Property and equipment (6,216 ) (7,264 ) Intangible assets (10,084 ) (13,375 ) Goodwill (365 ) — Convertible debt (619 ) (2,010 ) Unearned revenue (52 ) (4,535 ) Prepaid insurance and other (3 ) (338 ) Total gross deferred tax liabilities (17,339 ) (27,522 ) Net deferred tax assets $ 12,713 $ 12,894 As of December 31, 2017 , the Company had U.S. net operating loss carryforwards of $103.8 million , expiring in various amounts in 2029 through 2036. The ability to utilize net operating losses and other tax attributes could be subject to a significant limitation if the Company were to undergo an “ownership change” for purposes of Section 382 of the Tax Code. During 2015, the Company’s corporate organizational structure required the filing of two separate consolidated U.S. Federal income tax returns. Taxable income of one group (“Group A”) could not be offset by tax attributes, including net operating losses of the other group (“Group B”). During the year ended December 31, 2015, the Company restructured its legal entities such that there is only one U.S. tax filing group filing a single U.S. consolidated federal income tax return beginning in 2016. The Company considers all available evidence, both positive and negative, to determine whether a valuation allowance is necessary for deferred tax assets. The Company considers cumulative losses in recent years as significant negative evidence. The Company considers recent years to mean the current year plus the two preceding years. No valuation allowance was recorded against the net federal deferred tax assets at December 31, 2017 , based on the Company’s determination of its objectively verifiable estimate of future income. In determining this objectively verifiable future income, the Company considered income from the most recent three years adjusted for certain nonrecurring items such as discontinued operations and stock compensation that will be nondeductible under the 2017 Tax Act beginning in 2018. As of December 31, 2017 , the Company maintains a valuation allowance of $1.2 million for deferred tax assets in certain state jurisdictions. The Company has not calculated U.S. taxes on unremitted earnings of certain non-U.S. subsidiaries due to the Company’s intent to reinvest the unremitted earnings of the non-U.S. subsidiaries. At December 31, 2017 , the Company had approximately $1.5 million in unremitted earnings outside the U.S. which were not included for U.S. tax purposes. Due to the 2017 Tax Act, U.S. federal transition taxes have been recorded for a one-time U.S. tax liability on these earnings which have not previously been repatriated to the U.S. However, certain withholding taxes will need to be paid upon repatriation. It is not practicable to estimate the amount of the deferred tax liability on such unremitted earnings. The Company has performed an evaluation and concluded there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. The evaluation was performed for the tax years which remain subject to examination by tax jurisdictions as of December 31, 2017 , which are the years ended December 31, 2014 through December 31, 2017 for U.S. federal taxes and the years ended December 31, 2013 through December 31, 2017 for state tax jurisdictions. At December 31, 2017 , the Company had no unrecognized tax benefits. In January 2017, the Internal Revenue Service notified the Company that it will examine the Company’s federal tax returns for the year ended December 31, 2014. No adjustments have been asserted and management believes that sustained adjustments, if any, would not have a material effect on the Company’s financial position, results of operations or liquidity. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock | Common Stock The Company’s Certificate of Incorporation, as amended November 9, 2009, authorizes the Company to issue up to 80 million shares of common stock, par value $0.0001 per share, and 100,000 shares of one or more series of preferred stock, par value $0.0001 per share. A reconciliation of the changes in common shares issued is as follows: Year ended December 31, 2017 2016 Shares issued at the beginning of the year 59,684,669 56,220,214 Issued in sale of common stock — 2,450,339 Issued in acquisition — 247,764 Issued in payment of accrued liability — 20,000 Issued as restricted stock award grants 275,029 632,240 Issued upon exercise of stock options 663,288 114,112 Shares issued at the end of the year 60,622,986 59,684,669 Stock-Based Incentive Plans Stockholders approved long term incentive plans in 2014, 2010, and 2007 (the “2014 Plan,” the “2010 Plan,” and the “2007 Plan,” respectively) under which the Company may grant equity awards to officers, key employees, non-employee directors, and service providers in the form of stock options, restricted stock, and certain other incentive awards. The maximum number of shares that may be issued under the 2014 Plan, 2010 Plan, and 2007 Plan are 5.2 million , 6.0 million , and 2.2 million , respectively. At December 31, 2017 , the Company had a total of 0.3 million shares remaining to be granted under the 2014 Plan and 2010 Plan. Shares may no longer be granted under the 2007 Plan. Stock Options All stock options are granted with an exercise price equal to the market value of the Company’s common stock on the date of grant. Options expire no later than ten years from the date of grant and generally vest in four years or less. Proceeds received from stock option exercises are credited to common stock and additional paid-in capital, as appropriate. The Company uses historical data to estimate pre-vesting option forfeitures. Estimates are adjusted when actual forfeitures differ from the estimate. Stock-based compensation expense is recorded for all equity awards expected to vest. The fair value of stock options at the date of grant is calculated using the Black-Scholes option pricing model. The risk free interest rate is based on the implied yield of U.S. Treasury zero-coupon securities that correspond to the expected life of the option. Volatility is estimated based on historical and implied volatilities of the Company’s stock and of identified companies considered to be representative peers of the Company. The expected life of awards granted represents the period of time the options are expected to remain outstanding. The Company uses the “simplified” method which is permitted for companies that cannot reasonably estimate the expected life of options based on historical share option exercise experience. The Company does not expect to pay dividends on common stock. No options were granted to employees during 2017 , 2016 , and 2015 . The Black-Scholes option valuation model was developed to estimate the fair value of traded options that have no vesting restrictions and are fully-transferable. Because option valuation models require the use of subjective assumptions, changes in these assumptions can materially affect the fair value calculation. The Company’s options are not characteristic of traded options; therefore, the option valuation models do not necessarily provide a reliable measure of the fair value of options. Stock option activity for the year ended December 31, 2017 is as follows: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of January 1, 2017 663,288 $ 8.87 Exercised (663,288 ) 8.87 Forfeited — — Expired — — Outstanding as of December 31, 2017 — $ — 0.00 $ — The total intrinsic value of stock options exercised during the years ended December 31, 2017 , 2016 , and 2015 was $2.3 million , $1.0 million , and $8.4 million , respectively. No stock options vested during the years ended December 31, 2017 , 2016 , and 2015 . At December 31, 2017 , the Company had no remaining outstanding stock options. Restricted Stock The Company grants employees either time-vesting or performance-based restricted shares in accordance with terms specified in the Restricted Stock Agreements (“RSAs”). Time-vesting restricted shares vest after a stipulated period of time has elapsed subsequent to the date of grant, generally three years. Certain time-vested shares have also been issued with a portion of the shares granted vesting immediately. Performance-based restricted shares are issued with performance criteria defined over a designated performance period and vest only when, and if, the outlined performance criteria are met. During the year ended December 31, 2017 , 100% of the restricted shares granted were time-vesting and none were performance-based. Grantees of restricted shares retain voting rights for the granted shares. Restricted stock share activity for the year ended December 31, 2017 is as follows: Restricted Stock Shares Shares Weighted- Average Fair Value at Date of Grant Non-vested at January 1, 2017 683,242 $ 15.92 Granted to employees 260,029 10.62 Granted to service provider 15,000 9.34 Vested (590,027 ) 14.63 Forfeited (121,986 ) 17.48 Non-vested at December 31, 2017 246,258 $ 12.24 The weighted-average grant-date fair value of restricted stock granted during the years ended December 31, 2017 , 2016 , and 2015 was $10.62 , $11.92 , and $16.15 per share, respectively. The total fair value of restricted stock that vested during the years ended December 31, 2017 , 2016 , and 2015 was $8.6 million , $15.4 million , and $13.7 million , respectively. At December 31, 2017 , there was $1.7 million of unrecognized compensation expense related to non-vested restricted stock. The unrecognized compensation expense is expected to be recognized over a weighted-average period of 0.9 years . Restricted Stock Units During the year ended December 31, 2017 , the Company granted performance-based restricted stock units (“RSUs”) for 604,682 shares equivalents. The performance period for these share equivalents continues until December 31, 2018. During the year ended December 31, 2016 , the Company granted performance-based RSUs for 768,393 share equivalents, which had a performance period through December 31, 2017 . RSUs earned, which will be converted to 252,405 RSAs in 2018, will vest on December 31, 2018. Restricted stock unit share activity for the year ended December 31, 2017 is as follows: Restricted Stock Unit Shares Shares Weighted- Average Fair Value at Date of Grant RSU share equivalents at January 1, 2017 768,393 $ 12.02 2016 share equivalents forfeited (263,585 ) 12.02 2016 share equivalents not earned (252,403 ) 12.02 2016 share equivalents 252,405 12.02 2017 share equivalents granted 604,682 18.70 2017 share equivalents forfeited (131,756 ) 18.48 RSU share equivalents at December 31, 2017 725,331 $ 16.41 At December 31, 2017 , there was $8.5 million of unrecognized compensation expense related to 2017 and 2016 restricted stock units. The unrecognized compensation expense is expected to be recognized over a weighted-average period of 1.7 years . Employee Stock Purchase Plan The Company’s Employee Stock Purchase Plan (“ESPP”) was approved by stockholders on May 18, 2012. The Company registered 500,000 shares of its common stock, currently held as treasury shares, for issuance under the ESPP. The purpose of the ESPP is to provide employees with an opportunity to purchase shares of the Company’s common stock through accumulated payroll deductions. The ESPP allows participants to purchase common stock at a purchase price equal to 85% of the fair market value of the common stock on the last business day of a three -month offering period which coincides with calendar quarters. Payroll deductions may not exceed 10% of an employee’s compensation and participants may not purchase more than 1,000 shares in any one offering period. The fair value of the discount associated with shares purchased under the plan is recognized as share-based compensation expense and was $0.1 million , $0.1 million , and $0.2 million during the years ended December 31, 2017 , 2016 , and 2015 , respectively. The total fair value of the shares purchased under the plan during the years ended December 31, 2017 , 2016 , and 2015 was $0.8 million , $1.0 million , and $1.0 million , respectively. The employee payment associated with participation in the plan was satisfied through payroll deductions. Share-Based Compensation Expense Non-cash share-based compensation expense related to restricted stock, restricted stock unit grants, and stock purchased under the Company’s ESPP was $11.2 million , $12.1 million , and $13.1 million during the years ended December 31, 2017 , 2016 , and 2015 , respectively. Treasury Stock The Company accounts for treasury stock using the cost method and includes treasury stock as a component of stockholders’ equity. During the years ended December 31, 2017 , 2016 , and 2015 , the Company purchased 199,644 shares, 238,216 shares, and 473,304 shares, respectively, of the Company’s common stock at market value as payment of income tax withholding owed by employees upon the vesting of restricted shares and the exercise of stock options. Shares issued as restricted stock awards to employees that were forfeited are accounted for as treasury stock. During the years ended December 31, 2017 , 2016 , and 2015 , shares surrendered for the exercise of stock options were 478,287 , 3,225 , and 106,810 , respectively. These surrendered shares are also accounted for as treasury stock. Stock Repurchase Program In November 2012, the Company’s Board of Directors authorized the repurchase of up to $25 million of the Company’s common stock. Repurchases may be made in the open market or through privately negotiated transactions. Through December 31, 2017 , the Company has repurchased $25 million of its common stock under this authorization. In June 2015, the Company’s Board of Directors authorized the repurchase of up to an additional $50 million of the Company’s common stock. Repurchases may be made in the open market or through privately negotiated transactions. Through December 31, 2017 , the Company has repurchased $0.3 million of its common stock under this authorization. During the year ended December 31, 2017, the Company repurchased 905,000 shares of its outstanding common stock on the open market at a cost of $5.2 million , inclusive of transaction costs, or an average price of $5.75 per share. During the year ended December 31, 2016, the Company did not repurchase any shares of its outstanding common stock. During the year ended December 31, 2015, the Company repurchased 799,723 shares of its outstanding common stock on the open market at a cost of $9.7 million , inclusive of transaction costs, or an average price of $12.13 per share. At December 31, 2017 , the Company has $49.7 million remaining under its share repurchase program. A covenant under the Company’s Credit Facility limits the amount that may be used to repurchase the Company’s common stock. At December 31, 2017 , this covenant limits additional share repurchases to $9.7 million . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Class Action Litigation On March 30, 2017, the U.S. District Court for the Southern District of Texas granted the Company’s motion to dismiss the four consolidated putative securities class action lawsuits that were filed in November 2015, against the Company and certain of its officers. The lawsuits were previously consolidated into a single case, and a consolidated amended complaint had been filed. The consolidated amended complaint asserted that the Company made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. The complaint sought an award of damages in an unspecified amount on behalf of a putative class consisting of persons who purchased the Company’s common stock between October 23, 2014 and November 9, 2015, inclusive. The lead plaintiff appealed the District Court’s decision granting the motion to dismiss. In January 2016, three derivative lawsuits were filed, two in the District Court of Harris County, Texas (which have since been consolidated into one case), and one in the United States District Court for the Southern District of Texas, on behalf of the Company against certain of its officers and its current directors. The lawsuits allege violations of law, breaches of fiduciary duty, and unjust enrichment against the defendants. The Company believes the lawsuits are without merit and intends to vigorously defend against all claims asserted. Discovery has not yet commenced. At this time, the Company is unable to reasonably estimate the outcome of this litigation. In addition, as previously disclosed, the U.S. Securities and Exchange Commission had opened an inquiry related to similar issues to those raised in the above-described litigation. On August 21, 2017, the Company received a letter from the staff of the SEC stating that the inquiry has been concluded and that the staff does not intend to recommend an enforcement action against the Company. Other Litigation The Company is subject to routine litigation and other claims that arise in the normal course of business. Management is not aware of any pending or threatened lawsuits or proceedings that are expected to have a material effect on the Company’s financial position, results of operations or liquidity. Legal Settlement In December 2016, the Company reached a settlement with a stockholder related to disgorgement of potential short-swing profits under Section 16(b) of the Securities Exchange Act of 1934 in connection with purchases and sales of Company securities. As a result of the settlement, the Company recorded a gain of $12.7 million . Operating Lease Commitments The Company has operating leases for office space, vehicles, and equipment. Future minimum lease payments under operating leases at December 31, 2017 are as follows (in thousands): Year ending December 31, Minimum Lease Payments 2018 $ 2,734 2019 2,434 2020 2,169 2021 1,973 2022 1,988 Thereafter 10,508 Total $ 21,806 Rent expense under operating leases totaled $2.9 million , $3.3 million , and $2.6 million during the years ended December 31, 2017 , 2016 , and 2015 , respectively. 401(k) Retirement Plan The Company maintains a 401(k) retirement plan for the benefit of eligible employees in the U.S. All employees are eligible to participate in the plan upon employment. On January 1, 2015, the Company implemented a new matching program. The Company matches contributions at 100% of up to 2% of an employee’s compensation and, if greater, the Company matches contributions at 50% from 4% to 8% of an employee’s compensation. During the years ended December 31, 2017 , 2016 , and 2015 , compensation expense included $1.0 million , $1.0 million and $1.0 million , respectively, related to the Company’s 401(k) match. Concentrations and Credit Risk The majority of the Company’s revenue is derived from the oil and gas industry. Customers include major oilfield services companies, major integrated oil and natural gas companies, independent oil and natural gas companies, pressure pumping service companies, and state-owned national oil companies. This concentration of customers in one industry increases credit and business risks. The Company is subject to concentrations of credit risk within trade accounts receivable, as the Company does not generally require collateral as support for trade receivables. In addition, the majority of the Company’s cash is maintained at a major financial institution and balances often exceed insurable amounts. |
Business Segment, Geographic an
Business Segment, Geographic and Major Customer Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segment, Geographic and Major Customer Information | Business Segment, Geographic and Major Customer Information Segment Information Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by chief operating decision-makers in deciding how to allocate resources and assess performance. The operations of the Company are categorized into two reportable segments: Energy Chemistry Technologies and Consumer and Industrial Chemistry Technologies. • Energy Chemistry Technologies designs, develops, manufactures, packages, and markets specialty chemistries used in oil and natural gas well drilling, cementing, completion, and stimulation. In addition, the Company’s chemistries are used in specialized enhanced and improved oil recovery markets. Activities in this segment also include construction and management of automated material handling facilities and management of loading facilities and blending operations for oilfield services companies. • Consumer and Industrial Chemistry Technologies designs, develops, and manufactures products that are sold to companies in the flavor and fragrance industry and the specialty chemical industry. These technologies are used by beverage and food companies, fragrance companies, and companies providing household and industrial cleaning products. The Company evaluates performance based upon a variety of criteria. The primary financial measure is segment operating income. Various functions, including certain sales and marketing activities and general and administrative activities, are provided centrally by the corporate office. Costs associated with corporate office functions, other corporate income and expense items, and income taxes are not allocated to reportable segments. Summarized financial information of the reportable segments is as follows (in thousands): As of and for the year ended December 31, Energy Chemistry Technologies Consumer and Industrial Chemistry Technologies Corporate and Other Total 2017 Net revenue from external customers $ 243,106 $ 73,992 $ — $ 317,098 Income (loss) from operations 33,611 7,465 (43,931 ) (2,855 ) Depreciation and amortization 7,323 2,391 2,445 12,159 Capital expenditures 3,279 4,763 918 8,960 2016 Net revenue from external customers $ 188,233 $ 74,599 $ — $ 262,832 Income (loss) from operations 29,014 9,664 (45,982 ) (7,304 ) Depreciation and amortization 5,935 2,257 2,237 10,429 Capital expenditures 10,674 888 2,398 13,960 2015 Net revenue from external customers $ 213,592 $ 56,374 $ — $ 269,966 Income (loss) from operations 43,902 8,742 (40,366 ) 12,278 Depreciation and amortization 4,791 2,202 1,742 8,735 Capital expenditures 12,803 568 3,020 16,391 Assets of the Company by reportable segments are as follows (in thousands): December 31, 2017 December 31, 2016 Energy Chemistry Technologies $ 177,797 $ 184,328 Consumer and Industrial Chemistry Technologies 116,600 98,105 Corporate and Other 35,491 56,882 Total segments 329,888 339,315 Held for sale — 43,900 Total assets $ 329,888 $ 383,215 Geographic Information Revenue by country is based on the location where services are provided and products are used. No individual country other than the United States (“U.S.”) accounted for more than 10% of revenue. Revenue by geographic location is as follows (in thousands): Year ended December 31, 2017 2016 2015 U.S. $ 259,610 $ 210,890 $ 227,117 Other countries 57,488 51,942 42,849 Total $ 317,098 $ 262,832 $ 269,966 Long-lived assets held in countries other than the U.S. are not considered material to the consolidated financial statements. Major Customers Revenue from major customers, as a percentage of consolidated revenue, is as follows: Year ended December 31, 2017 2016 2015 Customer A 12.8% 15.7% 17.2% Customer B 8.9% 13.2% 14.6% Customer C 4.0% 6.9% 10.6% Approximately 95% of the revenue from major customers noted above was from the Energy Chemistry Technologies segment. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter Total (in thousands, except per share data) 2017 Revenue (1) $ 79,954 $ 85,177 $ 79,458 $ 72,509 $ 317,098 Income (loss) from operations (1) (623 ) (1,252 ) (3,103 ) 2,123 (2,855 ) Loss from continuing operations (1) $ (743 ) $ (1,122 ) $ (3,421 ) $ (7,767 ) $ (13,053 ) Income (loss) from discontinued operations, net of tax (11,235 ) (2,704 ) 319 (722 ) (14,342 ) Net loss $ (11,978 ) $ (3,826 ) $ (3,102 ) $ (8,489 ) $ (27,395 ) Basic earnings (loss) per common share (2) : Continuing operations $ (0.01 ) $ (0.02 ) $ (0.06 ) $ (0.14 ) $ (0.23 ) Discontinued operations (0.19 ) (0.05 ) 0.01 (0.01 ) (0.25 ) Basic earnings (loss) per common share $ (0.20 ) $ (0.07 ) $ (0.05 ) $ (0.15 ) $ (0.48 ) Diluted earnings (loss) per common share (2) : Continuing operations $ (0.01 ) $ (0.02 ) $ (0.06 ) $ (0.14 ) $ (0.23 ) Discontinued operations (0.19 ) (0.05 ) 0.01 (0.01 ) (0.25 ) Diluted earnings (loss) per common share $ (0.20 ) $ (0.07 ) $ (0.05 ) $ (0.15 ) $ (0.48 ) (1) Amounts exclude impact of discontinued operations. (2) The sum of the quarterly earnings (loss) per share (basic and diluted) may not agree to the earnings (loss) per share for the year due to the timing of common stock issuances. First Quarter Second Quarter Third Quarter Fourth Quarter Total (in thousands, except per share data) 2016 Revenue (1) $ 63,812 $ 64,079 $ 64,337 $ 70,604 $ 262,832 Income (loss) from operations (1) 368 156 (2,253 ) (5,575 ) (7,304 ) Income (loss) from continuing operations (1) $ (29 ) $ (111 ) $ (1,870 ) $ 3,917 $ 1,907 Loss from discontinued operations, net of tax (30,156 ) (2,169 ) (876 ) (17,836 ) (51,037 ) Net loss $ (30,185 ) $ (2,280 ) $ (2,746 ) $ (13,919 ) $ (49,130 ) Basic earnings (loss) per common share (2) : Continuing operations $ — $ — $ (0.03 ) $ 0.07 $ 0.03 Discontinued operations (0.55 ) (0.04 ) (0.02 ) (0.31 ) (0.91 ) Basic earnings (loss) per common share $ (0.55 ) $ (0.04 ) $ (0.05 ) $ (0.24 ) $ (0.88 ) Diluted earnings (loss) per common share (2) : Continuing operations $ — $ — $ (0.03 ) $ 0.07 $ 0.03 Discontinued operations (0.55 ) (0.04 ) (0.02 ) (0.31 ) (0.91 ) Diluted earnings (loss) per common share $ (0.55 ) $ (0.04 ) $ (0.05 ) $ (0.24 ) $ (0.88 ) (1) Amounts exclude impact of discontinued operations. (2) The sum of the quarterly earnings (loss) per share (basic and diluted) may not agree to the earnings (loss) per share for the year due to the timing of common stock issuances. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | The consolidated financial statements include the accounts of Flotek Industries, Inc. and all wholly-owned subsidiary corporations. Where Flotek owns less than 100% of the share capital of its subsidiaries, but is still considered to have sufficient ownership to control the business, results of the business operations are consolidated within the Company’s financial statements. The ownership interests held by other parties are shown as noncontrolling interests. During the fourth quarter of 2016, the Company classified the Drilling Technologies and Production Technologies segments as held for sale based on management’s intention to sell these businesses. The Company’s historical financial statements have been revised to present the operating results of the Drilling Technologies and Production Technologies segments as discontinued operations. The results of operations of Drilling Technologies and Production Technologies are presented as “Loss from discontinued operations” in the statement of operations and the related cash flows of these segments has been reclassified to discontinued operations for all periods presented. The assets and liabilities of the Drilling Technologies and Production Technologies segments have been reclassified to “Assets held for sale” and “Liabilities held for sale”, respectively, in the consolidated balance sheet for all periods presented. During 2017, the Company completed the sale or disposal of the assets and transfer or liquidation of liabilities and obligations of each of the Drilling Technologies and Production Technologies segments. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company does not have investments in any unconsolidated subsidiaries. |
Cash Equivalents & Cash Management | Cash Equivalents Cash equivalents consist of highly liquid investments with maturities of three months or less at the date of purchase. Cash Management The Company uses a controlled disbursement account for its main cash account. Under this system, outstanding checks can be in excess of the cash balances at the bank before the disbursement account is funded, creating a book overdraft. Book overdrafts on this account are presented as a current liability in accounts payable in the consolidated balance sheets. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable arise from product sales and services and are stated at estimated net realizable value. This value incorporates an allowance for doubtful accounts to reflect any loss anticipated on accounts receivable balances. The Company regularly evaluates its accounts receivable to estimate amounts that will not be collected and records the appropriate provision for doubtful accounts as a charge to operating expenses. The allowance for doubtful accounts is based on a combination of the age of the receivables, individual customer circumstances, credit conditions, and historical write-offs and collections. The Company writes off specific accounts receivable when they are determined to be uncollectible. The majority of the Company’s customers are engaged in the energy industry. The cyclical nature of the energy industry may affect customers’ operating performance and cash flows, which directly impact the Company’s ability to collect on outstanding obligations. Additionally, certain customers are located in international areas that are inherently subject to risks of economic, political, and civil instability, which can impact the collectability of receivables. |
Inventories | Inventories Inventories consist of raw materials, work-in-process, and finished goods and are stated at the lower of cost, determined using the weighted-average cost method, or net realizable value. Finished goods inventories include raw materials, direct labor, and production overhead. The Company regularly reviews inventories on hand and current market conditions to determine if the cost of finished goods inventories exceeds current market prices and impairs the cost basis of the inventory accordingly. Historically, the Company recorded a provision for excess and obsolete inventory. Impairment or provisions are based primarily on forecasts of product demand, historical trends, market conditions, production, or procurement requirements and technological developments and advancements. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. The cost of ordinary maintenance and repair is charged to operating expense, while replacement of critical components and major improvements are capitalized. Depreciation or amortization of property and equipment, including assets held under capital leases, is calculated using the straight-line method over the asset’s estimated useful life as follows: Buildings and leasehold improvements 2-30 years Machinery, equipment, and rental tools 7-10 years Furniture and fixtures 3 years Transportation equipment 2-5 years Computer equipment and software 3-7 years Property and equipment are reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying amount of an asset or asset group may not be recoverable. Indicative events or circumstances include, but are not limited to, matters such as a significant decline in market value or a significant change in business climate. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted future cash flows from the use of the asset and its eventual disposition. The amount of impairment loss recognized is the excess of the asset’s carrying amount over its fair value. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less cost to sell. Upon sale or other disposition of an asset, the Company recognizes a gain or loss on disposal measured as the difference between the net carrying amount of the asset and the net proceeds received. |
Internal Use Computer Software Costs | Internal Use Computer Software Costs Direct costs incurred to purchase and develop computer software for internal use are capitalized during the application development and implementation stages. These software costs have been primarily for enterprise-level business and finance software that is customized to meet the Company’s specific operational needs. Capitalized costs are included in property and equipment and are amortized on a straight-line basis over the estimated useful life of the software beginning when the software project is substantially complete and placed in service. Costs incurred during the preliminary project stage and costs for training, data conversion, and maintenance are expensed as incurred. The Company amortizes software costs using the straight-line method over the expected life of the software, generally 3 to 7 years. |
Goodwill | Goodwill Goodwill is the excess of cost of an acquired entity over the amounts assigned to identifiable assets acquired and liabilities assumed in a business combination. Goodwill is not subject to amortization, but is tested for impairment annually during the fourth quarter, or more frequently if an event occurs or circumstances change that would indicate a potential impairment. These circumstances may include an adverse change in the business climate or a change in the assessment of future operations of a reporting unit. The Company assesses whether a goodwill impairment exists using both qualitative and quantitative assessments. The qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If, based on this qualitative assessment, it is determined that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company does not perform a quantitative assessment. If the qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount or if the Company elects not to perform a qualitative assessment, a quantitative impairment test is performed to determine whether goodwill impairment exists at the reporting unit. The quantitative impairment test, used to identify both the existence of impairment and the amount of impairment loss, compares the estimated fair value of each reporting unit with goodwill to its carrying amount, including goodwill. To determine fair value estimates, the Company uses the income approach based on discounted cash flow analyses, combined, when appropriate, with a market-based approach. The market-based approach considers valuation comparisons of recent public sale transactions of similar businesses and earnings multiples of publicly traded businesses operating in industries consistent with the reporting unit. If the carrying amount of a reporting unit, including goodwill, exceeds its fair value, an impairment loss is recognized in an amount equal to that excess |
Other Intangible Assets | Other Intangible Assets The Company’s other intangible assets have finite and indefinite lives and consist of customer relationships, trademarks, brand names, and purchased patents. The cost of intangible assets with finite lives is amortized using the straight-line method over the estimated period of economic benefit, ranging from 2 to 20 years . Asset lives are adjusted whenever there is a change in the estimated period of economic benefit. No residual value has been assigned to these intangible assets. Intangible assets with finite lives are tested for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. These conditions may include a change in the extent or manner in which the asset is being used or a change in future operations. The Company assesses the recoverability of the carrying amount by preparing estimates of future revenue, margins, and cash flows. If the sum of expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, an impairment loss is recognized. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. Fair value of these assets may be determined by a variety of methodologies, including discounted cash flow models. Intangible assets with indefinite lives are not subject to amortization, but are tested for impairment annually during the fourth quarter, or more frequently if an event occurs or circumstances change that would indicate a potential impairment. These circumstances may include, but are not limited to, a significant adverse change in the business climate, unanticipated competition, or a change in projected operations or results of a reporting unit. The Company assesses whether an indefinite lived intangible impairment exists using both qualitative and quantitative assessments. The qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not that the fair value of the indefinite lived intangible is less than its carrying amount. If, based on this qualitative assessment, it is determined that it is not more likely than not that the fair value of the indefinite lived intangible is less than its carrying amount, the Company does not perform a quantitative assessment. If the qualitative assessment indicates that it is more likely than not that the indefinite-lived intangible asset is impaired or if the Company elects to not perform a qualitative assessment, the Company then performs the quantitative impairment test. The quantitative impairment test for an indefinite-lived intangible asset consists of a comparison of the fair value of the asset with its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Fair value of these assets may be determined by a variety of methodologies, including discounted cash flows. |
Business Combinations | Business Combinations The Company includes the results of operations of its acquisitions in its consolidated results, prospectively from the date of acquisition. Acquisitions are accounted for by applying the acquisition method. The Company allocates the fair value of purchase consideration to the assets acquired, liabilities assumed, and any noncontrolling interests in the acquired entity generally based on their fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair value of these assets acquired, liabilities assumed, and any noncontrolling interests in the acquired entity is recorded as goodwill. The primary items that generate goodwill include the value of the synergies between the acquired company and Flotek and the value of the acquired assembled workforce. Acquisition-related expenses are recognized separately from the business acquisition and are recognized as expenses as incurred. |
Fair Value Measurements | Fair Value Measurements The Company categorizes financial assets and liabilities using a three-tier fair value hierarchy, based on the nature of the inputs used to determine fair value. Inputs refer broadly to assumptions market participants would use to value an asset or liability and may be observable or unobservable. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). “Level 1” measurements are measurements using quoted prices in active markets for identical assets and liabilities. “Level 2” measurements are measurements using quoted prices in markets that are not active or that are based on quoted prices for similar assets or liabilities. “Level 3” measurements are measurements that use significant unobservable inputs which require a company to develop its own assumptions. When determining the fair value of assets and liabilities, the Company uses the most reliable measurement available. Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company categorizes financial assets and liabilities into the three levels of the fair value hierarchy. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value and bases categorization within the hierarchy on the lowest level of input that is available and significant to the fair value measurement. • Level 1 — Quoted prices in active markets for identical assets or liabilities; • Level 2 — Observable inputs other than Level 1, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 — Significant unobservable inputs that are supported by little or no market activity or that are based on the reporting entity’s assumptions about the inputs. |
Revenue Recognition | Revenue Recognition Revenue for product sales and services is recognized when all of the following criteria have been met: (i) persuasive evidence of an arrangement exists, (ii) products are shipped or services are rendered to the customer and significant risks and rewards of ownership have passed to the customer, (iii) the price to the customer is fixed and determinable, and (iv) collectability is reasonably assured. Products and services are sold with fixed or determinable prices and do not include right of return provisions or other significant post-delivery obligations. Deposits and other funds received in advance of delivery are deferred until the transfer of ownership is complete. Shipping and handling costs are reflected in cost of revenue. Taxes collected are not included in revenue; rather, taxes are accrued for future remittance to governmental authorities. For certain contracts related to the EOGA division and the Logistics division of the Energy Chemistry Technologies segment, the Company recognizes revenue under the percentage-of-completion method of accounting, measured by the percentage of “costs incurred to date” to the “total estimated costs of completion.” This percentage is applied to the “total estimated revenue at completion” to calculate proportionate revenue earned to date. Contracts for services are inclusive of direct labor and material costs, as well as, indirect costs of operations. General and administrative costs are charged to expense as incurred. Changes in job performance metrics and estimated profitability, including contract bonus or penalty provisions and final contract settlements, are recognized in the period such revisions appear probable. Known or anticipated losses on contracts are recognized in full when amounts are probable and estimable. The Company generally is not contractually obligated to accept returns, except for defective products. Typically products determined to be defective are replaced or the customer is issued a credit memo. There is typically no right of return or any significant post-delivery obligations. All costs associated with product returns are expensed as incurred. |
Foreign Currency Translation | Foreign Currency Translation Financial statements of foreign subsidiaries are prepared using the currency of the primary economic environment of the foreign subsidiaries as the functional currency. Assets and liabilities of foreign subsidiaries are translated into U.S. dollars at exchange rates in effect as of the end of identified reporting periods. Revenue and expense transactions are translated using the average monthly exchange rate for the reporting period. Resultant translation adjustments are recognized as other comprehensive income (loss) within stockholders’ equity. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) encompasses all changes in stockholders’ equity, except those arising from investments from and distributions to stockholders. The Company’s comprehensive income (loss) includes net income (loss) and foreign currency translation adjustments. |
Research and Development Costs | Research and Development Costs Expenditures for research activities relating to product development and improvement are charged to expense as incurred. |
Income Taxes | Income Taxes During the year ended December 31, 2015, the Company restructured its legal entities such that there is only one U.S. tax filing group filing a single U.S. consolidated federal income tax return beginning in 2016. The Company uses the liability method in accounting for income taxes. Deferred tax assets and liabilities are recognized for temporary differences between financial statement carrying amounts and the tax bases of assets and liabilities and are measured using the tax rates expected to be in effect when the differences reverse. Deferred tax assets and liabilities are recognized related to the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Company’s assets and liabilities using statutory tax rates at the applicable year end. Deferred tax assets are also recognized for operating loss and tax credit carry forwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is used to reduce deferred tax assets when uncertainty exists regarding their realization. A valuation allowance is recorded to reduce previously recorded tax assets when it becomes more likely than not that such assets will not be realized. The Company evaluates, at least annually, net operating loss carry forwards and other net deferred tax assets and considers all available evidence, both positive and negative, to determine whether a valuation allowance is necessary relative to net operating loss carry forwards and other net deferred tax assets. In making this determination, the Company considers cumulative losses in recent years as significant negative evidence. The Company considers recent years to mean the current year plus the two preceding years. The Company considers the recent cumulative income or loss position as objectively verifiable evidence for the projection of future income, which consists primarily of determining the average of the pre-tax income of the current and prior two years after adjusting for certain items not indicative of future performance. Based on this analysis, the Company determines whether a valuation allowance is necessary. Historically, U.S. Federal income taxes are not provided on unremitted earnings of subsidiaries operating outside the U.S. because it is the Company’s intention to permanently reinvest undistributed earnings in the subsidiary. These earnings would become subject to income tax if they were remitted as dividends or loaned to a U.S. affiliate. Due to the 2017 Tax Cuts and Jobs Act, U.S. federal transition taxes have been recorded at December 31, 2017, for a one-time U.S. tax liability on those earnings which have not previously been repatriated to the U.S. Determination of the amount of unrecognized deferred U.S. income tax liability on these unremitted earnings is not practicable. The Company has performed an evaluation and concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements. The Company’s policy is to record interest and penalties related to income tax matters as income tax expense. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per common share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to common stockholders, adjusted for the effect of assumed conversions of convertible notes and preferred stock, by the weighted average number of common shares outstanding, including potentially dilutive common share equivalents, if the effect is dilutive. Potentially dilutive common shares equivalents consist of incremental shares of common stock issuable upon exercise of stock options and warrants, settlement of restricted stock units, and conversion of convertible notes and convertible preferred stock. |
Debt Issuance Costs | Debt Issuance Costs Costs related to debt issuance are capitalized and amortized as interest expense over the term of the related debt using the straight-line method, which approximates the effective interest method. Upon the repayment of debt, the Company accelerates the recognition of an appropriate amount of the costs as interest expense. |
Capitalization of Interest | Capitalization of Interest Interest costs are capitalized for qualifying in-process software development projects. Capitalization of interest commences when activities to prepare the asset are in progress and expenditures and borrowing costs are being incurred. Interest costs are capitalized until the assets are ready for their intended use. Capitalized interest is added to the cost of the underlying assets and amortized over the estimated useful lives of the assets. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for share-based payments, related to stock options, restricted stock awards, and restricted stock units, is recognized based on their grant-date fair values. The Company recognizes compensation expense, net of estimated forfeitures, on a straight-line basis over the requisite service period of the award. Estimated forfeitures are based on historical experience. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of revenue and expenses. Actual results could differ from these estimates. Significant items subject to estimates and assumptions include application of the percentage-of-completion method of revenue recognition, the carrying amount and useful lives of property and equipment and intangible assets, impairment assessments, share-based compensation expense, and valuation allowances for accounts receivable, inventories, and deferred tax assets. |
Assets and Liabilities Held for Sale and Discontinued Operations | Assets and Liabilities Held for Sale The Company classifies disposal groups as held for sale in the period in which all of the following criteria are met: (1) management, having the authority to approve the action, commits to a plan to sell the disposal group; (2) the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; (3) an active program to locate a buyer or buyers and other actions required to complete the plan to sell the disposal group have been initiated; (4) the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale, within one year, except if events of circumstances beyond the Company’s control extend the period of time required to sell the disposal group beyond one year; (5) the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group that is classified as held for sale is initially measured at the lower of its carrying amount or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Subsequent changes in the fair value of a disposal group less any costs to sell are reported as an adjustment to the carrying amount of the disposal group, as long as the new carrying amount does not exceed the carrying amount of the asset at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group for all periods presented in the line items assets held for sale and liabilities held for sale, respectively, in the consolidated balance sheets. Discontinued Operations The results of operations of a component of the Company that can be clearly distinguished, operationally and for financial reporting purposes, that either has been disposed of or is classified as held for sale is reported in discontinued operations, if the disposal represents a strategic shift that has, or will have, a major effect on the Company’s operations and financial results. General corporate overhead is not allocated to discontinued operations for all periods presented. Interest expense on debt required to be repaid as a result of disposal transactions is allocated to discontinued operations. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. The reclassifications did not impact net income. |
New Accounting Pronouncements | New Accounting Pronouncements (a) Application of New Accounting Standards Effective January 1, 2017, the Company adopted the accounting guidance in Accounting Standards Update (“ASU”) No. 2015-11, “ Simplifying the Measurement of Inventory .” This standard requires management to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Implementation of this standard did not have a material effect on the consolidated financial statements and related disclosures. Effective January 1, 2017, the Company adopted the accounting guidance in ASU No. 2015-17, “ Balance Sheet Classification of Deferred Taxes .” This standard eliminated the requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations are now required to classify all deferred tax assets and liabilities as noncurrent. Implementation of this standard did not have a material effect on the consolidated financial statements and related disclosures. The Company applied this standard retrospectively and, therefore, prior periods presented were adjusted. Effective January 1, 2017, the Company adopted the accounting guidance in ASU No. 2016-09, “ Improvements to Employee Share-Based Payment Accounting .” This standard simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance requires excess tax benefits and deficiencies to be recognized in the income statement rather than in additional paid-in capital. As a result of applying this change, the Company recognized a $2.0 million reduction in tax benefit in the provision for incomes taxes during the year ended December 31, 2017 . The Company applied this standard prospectively, where applicable, and, therefore, prior periods presented were not adjusted. Effective October 1, 2017, the Company adopted the accounting guidance in ASU No. 2017-04, “ Simplifying the Test for Goodwill Impairment .” This standard eliminates Step 2 from the goodwill impairment test. The Company will now recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Implementation of this standard did not have a material effect on the consolidated financial statements and related disclosures. (b) New Accounting Requirements and Disclosures In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “ Revenue from Contracts with Customers .” The ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity’s nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, which deferred the effective date by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. In March 2016, the FASB issued ASU No. 2016-08, which improves the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, which clarifies identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-11, which rescinds certain SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, effective upon adoption of ASU 2014-09, and ASU No. 2016-12, which reduces the potential for diversity in practice at initial application and reduces the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. In December 2016, the FASB issued ASU No. 2016-20, which provides technical corrections and improvements to the original guidance issued. In 2017, the Company formed a project team to evaluate the new revenue recognition standard. The team has identified the relevant revenue streams and documented the procedures and control changes required to address the impacts that ASU 2014-09 may have on its business, as well as trained appropriate personnel on the procedures and controls going into effect January 1, 2018. The evaluation efforts included identifying revenue streams with similar contract structures, performing a detailed review of key contracts by revenue stream, and comparing historical policies and practices to the new standard. From the analysis performed, two main revenue streams were identified from contracts with customers: (1) product sales and (2) services. The Company’s revenue recognition methodology does not materially change by the adoption of the new standard for product sales (point in time revenue recognition) and for service contracts (over time), which principally charge on a day rate basis and are primarily short-term in nature. Therefore, based on the assessment, the Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. The Company will adopt the new standard effective January 1, 2018, using the full retrospective method. In February 2016, the FASB issued ASU No. 2016-02, “ Leases .” This standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. The pronouncement is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period and should be applied using a modified retrospective transition approach, with early application permitted. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, “ Measurement of Credit Losses on Financial Instruments .” This standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The pronouncement is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted for the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, “ Classification of Certain Cash Receipts and Cash Payments. ” This standard addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The pronouncement is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-01, “ Clarifying the Definition of a Business. ” This standard provides additional guidance on whether an integrated set of assets and activities constitutes a business. The pronouncement is effective for annual periods beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted in specific instances. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. In May 2017, the FASB issued ASU No. 2017-09, “ Scope of Modification Accounting .” This standard provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under Topic 718. The pronouncement is effective for annual periods beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosures. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of changes in the allowance for doubtful accounts | Changes in the allowance for doubtful accounts for continuing operations are as follows (in thousands): Year ended December 31, 2017 2016 2015 Balance, beginning of year $ 664 $ 709 $ 510 Charged to provision for doubtful accounts 113 558 367 Write-offs (44 ) (603 ) (168 ) Balance, end of year $ 733 $ 664 $ 709 |
Schedule of depreciation or amortization of property and equipment | Depreciation or amortization of property and equipment, including assets held under capital leases, is calculated using the straight-line method over the asset’s estimated useful life as follows: Buildings and leasehold improvements 2-30 years Machinery, equipment, and rental tools 7-10 years Furniture and fixtures 3 years Transportation equipment 2-5 years Computer equipment and software 3-7 years |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of financial information has been segregated from continuing operations | The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations for the years ended December 31, 2017, 2016, and 2015 (in thousands): Drilling Technologies Production Technologies 2017 2016 2015 2017 2016 2015 Discontinued operations: Revenue $ 11,534 $ 27,627 $ 52,112 $ 4,002 $ 8,292 $ 12,281 Cost of revenue (7,309 ) (18,667 ) (35,410 ) (3,236 ) (7,881 ) (10,179 ) Selling, general and administrative (6,963 ) (15,285 ) (21,049 ) (1,759 ) (3,790 ) (4,158 ) Depreciation and amortization — (1,714 ) (3,240 ) — (584 ) (658 ) Research and development (5 ) (64 ) (202 ) (364 ) (888 ) (596 ) Gain (loss) on disposal of long-lived assets 97 103 17 — (50 ) 3 Impairment of inventory and long-lived assets — (36,522 ) (19,568 ) — (3,913 ) (804 ) Loss from operations (2,646 ) (44,522 ) (27,340 ) (1,357 ) (8,814 ) (4,111 ) Other expense (96 ) (412 ) (259 ) (52 ) (96 ) (40 ) Loss on sale of businesses (1,600 ) (1,199 ) — (479 ) — — Loss on write-down of assets held for sale (6,831 ) (18,971 ) — (9,718 ) (6,161 ) — Loss before income taxes (11,173 ) (65,104 ) (27,599 ) (11,606 ) (15,071 ) (4,151 ) Income tax benefit 4,138 23,661 9,675 4,299 5,477 1,455 Net loss from discontinued operations $ (7,035 ) $ (41,443 ) $ (17,924 ) $ (7,307 ) $ (9,594 ) $ (2,696 ) The assets and liabilities held for sale on the Consolidated Balance Sheets as of December 31, 2017 and 2016 are as follows (in thousands): Drilling Technologies Production Technologies December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Assets: Accounts receivable, net $ — $ 5,072 $ — $ 1,784 Inventories — 9,078 — 8,115 Other current assets — 278 — 370 Long-term receivable — — — 4,179 Property and equipment, net — 11,277 — 3,978 Goodwill — 15,333 — 1,689 Other intangible assets, net — 7,395 — 484 Assets held for sale — 48,433 — 20,599 Valuation allowance — (18,971 ) — (6,161 ) Assets held for sale, net $ — $ 29,462 $ — $ 14,438 Liabilities: Accounts payable $ — $ 2,472 $ — $ 914 Accrued liabilities — 1,190 — 385 Liabilities held for sale $ — $ 3,662 $ — $ 1,299 |
Impairment of Inventory and L30
Impairment of Inventory and Long-Lived Assets for Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of pre-tax impairment charges | The Company recorded impairment charges during the three months ended March 31, 2016 and June 30, 2015 , as follows (in thousands): Three months ended March 31, 2016 June 30, 2015 Drilling Technologies: Inventories $ 12,653 $ 17,241 Long-lived assets: Property and equipment 14,642 2,327 Intangible assets other than goodwill 9,227 — Production Technologies: Inventories 3,913 804 Total impairment $ 40,435 $ 20,372 |
Supplemental Cash Flow Inform31
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Components of supplemental cash flow information | Supplemental cash flow information is as follows (in thousands): Year ended December 31, 2017 2016 2015 Supplemental non-cash investing and financing activities: Value of common stock issued in acquisitions $ — $ 3,268 $ 1,014 Value of common stock issued in payment of accrued liability 188 — — Exercise of stock options by common stock surrender 5,863 50 1,332 Supplemental cash payment information: Interest paid $ 1,851 $ 2,024 $ 1,398 Income taxes (received, net of payments) paid, net of refunds (10,195 ) 333 1,547 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Revenue [Abstract] | |
Differentiation of revenue and cost of revenue | Revenue and cost of revenue (excluding depreciation and amortization) by source are as follows (in thousands): Year ended December 31, 2017 2016 2015 Revenue: Products $ 310,716 $ 256,263 $ 258,968 Services 6,382 6,569 10,998 $ 317,098 $ 262,832 $ 269,966 Cost of revenue (excluding depreciation and amortization): Products $ 210,281 $ 162,488 $ 164,837 Services 4,848 7,767 7,196 $ 215,129 $ 170,255 $ 172,033 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of inventory | Inventories are as follows (in thousands): December 31, 2017 2016 Raw materials $ 42,682 $ 28,626 Work-in-process 3,284 2,918 Finished goods 29,793 26,739 Inventories $ 75,759 $ 58,283 |
Schedule of inventory reserve | Changes in the reserve for excess and obsolete inventory are as follows (in thousands): 2017 2016 2015 Balance, beginning of year $ — $ — $ — Charged to costs and expenses 724 1,301 16 Deductions (724 ) (1,301 ) (16 ) Balance, end of the year $ — $ — $ — |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment | Property and equipment are as follows (in thousands): December 31 2017 2016 Land $ 6,724 $ 5,837 Buildings and leasehold improvements 43,899 42,986 Machinery and equipment 41,548 36,187 Fixed assets in progress 4,298 3,235 Furniture and fixtures 2,002 1,969 Transportation equipment 2,200 3,059 Computer equipment and software 12,181 11,844 Property and equipment 112,852 105,117 Less accumulated depreciation (39,019 ) (30,426 ) Property and equipment, net $ 73,833 $ 74,691 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying value of goodwill | Changes in the carrying amount of goodwill for each reporting unit are as follows (in thousands): Energy Chemistry Technologies Consumer and Industrial Chemistry Technologies Total Balance at December 31, 2015: Goodwill $ 36,318 $ 19,480 $ 55,798 Accumulated impairment losses — — — Goodwill balance, net 36,318 19,480 55,798 Activity during the year 2016: Goodwill impairment recognized — — — Acquisition goodwill recognized 862 — 862 Balance at December 31, 2016: Goodwill 37,180 19,480 56,660 Accumulated impairment losses — — — Goodwill balance, net 37,180 19,480 56,660 Activity during the year 2017: Goodwill impairment recognized — — — Acquisition goodwill recognized — — — Balance at December 31, 2017: Goodwill 37,180 19,480 56,660 Accumulated impairment losses — — — Goodwill balance, net $ 37,180 $ 19,480 $ 56,660 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of other intangible assets | Other intangible assets are as follows (in thousands): December 31, 2017 2016 Cost Accumulated Amortization Cost Accumulated Amortization Finite lived intangible assets: Patents and technology $ 17,310 $ 5,586 $ 16,815 $ 4,537 Customer lists 30,877 8,127 30,877 6,518 Trademarks and brand names 1,549 1,117 1,467 1,069 Total finite lived intangible assets acquired 49,736 14,830 49,159 12,124 Deferred financing costs 1,791 96 1,804 117 Total amortizable intangible assets 51,527 $ 14,926 50,963 $ 12,241 Indefinite lived intangible assets: Trademarks and brand names 11,630 11,630 Total other intangible assets $ 63,157 $ 62,593 Carrying amount: Other intangible assets, net $ 48,231 $ 50,352 |
Schedule of estimated future amortization expense | Estimated future amortization expense for other finite lived intangible assets, including deferred financing costs, at December 31, 2017 is as follows (in thousands): Year ending December 31, 2018 $ 3,017 2019 2,956 2020 2,929 2021 2,916 2022 2,664 Thereafter 22,119 Other amortizable intangible assets, net $ 36,601 |
Long-Term Debt and Credit Fac37
Long-Term Debt and Credit Facility (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Components of long-term debt | Long-term debt is as follows (in thousands): December 31, 2017 2016 Long-term debt: Borrowings under revolving credit facility $ 27,950 $ 38,566 Term loan — 9,833 Total long-term debt 27,950 48,399 Less current portion of long-term debt (27,950 ) (40,566 ) Long-term debt, less current portion $ — $ 7,833 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Carrying value and estimated fair value of convertible notes and long-term debt | The carrying amount and estimated fair value of the Company’s long-term debt are as follows (in thousands): December 31, 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value Borrowings under revolving credit facility $ 27,950 $ 27,950 $ 38,566 $ 38,566 Term loan — — 9,833 9,833 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Components of basic and diluted earnings per common share | Basic and diluted earnings (loss) per common share are as follows (in thousands, except per share data): Year ended December 31, 2017 2016 2015 (Loss) income from continuing operations $ (13,053 ) $ 1,907 $ 7,158 Loss from discontinued operations, net of tax (14,342 ) (51,037 ) (20,620 ) Net loss - Basic and Diluted $ (27,395 ) $ (49,130 ) $ (13,462 ) Weighted average common shares outstanding - Basic 57,580 56,087 54,459 Assumed conversions: Incremental common shares from stock options — 197 527 Incremental common shares from restricted stock units — 66 6 Weighted average common shares outstanding - Diluted 57,580 56,350 54,992 Basic earnings (loss) per common share: Continuing operations $ (0.23 ) $ 0.03 $ 0.13 Discontinued operations, net of tax (0.25 ) (0.91 ) (0.38 ) Basic earnings (loss) per common share $ (0.48 ) $ (0.88 ) $ (0.25 ) Diluted earnings (loss) per common share: Continuing operations $ (0.23 ) $ 0.03 $ 0.13 Discontinued operations, net of tax (0.25 ) (0.91 ) (0.37 ) Diluted earnings (loss) per common share $ (0.48 ) $ (0.88 ) $ (0.24 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax provision (benefit) | Components of the income tax expense are as follows (in thousands): Year ended December 31, 2017 2016 2015 Current: Federal $ (1,314 ) $ 442 $ 3,944 State 675 (85 ) 390 Foreign 488 (526 ) 1,841 Total current (151 ) (169 ) 6,175 Deferred: Federal 8,701 1,564 (2,628 ) State 337 (112 ) (63 ) Foreign (45 ) (46 ) (8 ) Total deferred 8,993 1,406 (2,699 ) Income tax expense $ 8,842 $ 1,237 $ 3,476 |
Schedule of domestic and foreign net income (loss) before taxes | The components of (loss) income before income taxes are as follows (in thousands): Year ended December 31, 2017 2016 2015 United States $ (2,844 ) $ 4,502 $ 4,760 Foreign (1,367 ) (1,358 ) 5,874 (Loss) income before income taxes $ (4,211 ) $ 3,144 $ 10,634 |
Schedule of effective income tax rate reconciliation | A reconciliation of the U.S. federal statutory tax rate to the effective income tax rate is as follows: Year ended December 31, 2017 2016 2015 Federal statutory tax rate (35.0 )% 35.0 % 35.0 % State income taxes, net of federal benefit 14.2 (5.3 ) 2.0 Non-U.S. income taxed at different rates 11.6 1.2 (4.4 ) Impact of 2017 Tax Cuts and Jobs Act 173.6 — — Net operating loss carryback adjustment — 10.0 1.4 Reduction in tax benefit related to stock-based awards 47.2 — — Non-deductible expenditures 11.0 13.1 5.9 Research and development credit (10.8 ) (12.7 ) (3.5 ) Other (1.8 ) (2.0 ) (3.7 ) Effective income tax rate 210.0 % 39.3 % 32.7 % |
Schedule of deferred tax assets and liabilities | The components of deferred tax assets and liabilities are as follows (in thousands): December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 24,569 $ 21,212 Allowance for doubtful accounts 981 1,582 Inventory valuation reserves 827 2,205 Equity compensation 685 3,161 Goodwill — 10,788 Accrued compensation 222 80 Foreign tax credit carryforward 3,955 2,365 Other — 76 Total gross deferred tax assets 31,239 41,469 Valuation allowance (1,187 ) (1,053 ) Total deferred tax assets, net 30,052 40,416 Deferred tax liabilities: Property and equipment (6,216 ) (7,264 ) Intangible assets (10,084 ) (13,375 ) Goodwill (365 ) — Convertible debt (619 ) (2,010 ) Unearned revenue (52 ) (4,535 ) Prepaid insurance and other (3 ) (338 ) Total gross deferred tax liabilities (17,339 ) (27,522 ) Net deferred tax assets $ 12,713 $ 12,894 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of reconciliation of changes in common shares issued | A reconciliation of the changes in common shares issued is as follows: Year ended December 31, 2017 2016 Shares issued at the beginning of the year 59,684,669 56,220,214 Issued in sale of common stock — 2,450,339 Issued in acquisition — 247,764 Issued in payment of accrued liability — 20,000 Issued as restricted stock award grants 275,029 632,240 Issued upon exercise of stock options 663,288 114,112 Shares issued at the end of the year 60,622,986 59,684,669 |
Schedule of stock option activity | Stock option activity for the year ended December 31, 2017 is as follows: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of January 1, 2017 663,288 $ 8.87 Exercised (663,288 ) 8.87 Forfeited — — Expired — — Outstanding as of December 31, 2017 — $ — 0.00 $ — |
Schedule of restricted stock activity | Restricted stock share activity for the year ended December 31, 2017 is as follows: Restricted Stock Shares Shares Weighted- Average Fair Value at Date of Grant Non-vested at January 1, 2017 683,242 $ 15.92 Granted to employees 260,029 10.62 Granted to service provider 15,000 9.34 Vested (590,027 ) 14.63 Forfeited (121,986 ) 17.48 Non-vested at December 31, 2017 246,258 $ 12.24 |
Schedule of restricted stock unit activity | Restricted stock unit share activity for the year ended December 31, 2017 is as follows: Restricted Stock Unit Shares Shares Weighted- Average Fair Value at Date of Grant RSU share equivalents at January 1, 2017 768,393 $ 12.02 2016 share equivalents forfeited (263,585 ) 12.02 2016 share equivalents not earned (252,403 ) 12.02 2016 share equivalents 252,405 12.02 2017 share equivalents granted 604,682 18.70 2017 share equivalents forfeited (131,756 ) 18.48 RSU share equivalents at December 31, 2017 725,331 $ 16.41 |
Commitments and Contingencies
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments under operating leases | Future minimum lease payments under operating leases at December 31, 2017 are as follows (in thousands): Year ending December 31, Minimum Lease Payments 2018 $ 2,734 2019 2,434 2020 2,169 2021 1,973 2022 1,988 Thereafter 10,508 Total $ 21,806 |
Business Segment, Geographic 43
Business Segment, Geographic and Major Customer Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Financial information regarding reportable segments | Summarized financial information of the reportable segments is as follows (in thousands): As of and for the year ended December 31, Energy Chemistry Technologies Consumer and Industrial Chemistry Technologies Corporate and Other Total 2017 Net revenue from external customers $ 243,106 $ 73,992 $ — $ 317,098 Income (loss) from operations 33,611 7,465 (43,931 ) (2,855 ) Depreciation and amortization 7,323 2,391 2,445 12,159 Capital expenditures 3,279 4,763 918 8,960 2016 Net revenue from external customers $ 188,233 $ 74,599 $ — $ 262,832 Income (loss) from operations 29,014 9,664 (45,982 ) (7,304 ) Depreciation and amortization 5,935 2,257 2,237 10,429 Capital expenditures 10,674 888 2,398 13,960 2015 Net revenue from external customers $ 213,592 $ 56,374 $ — $ 269,966 Income (loss) from operations 43,902 8,742 (40,366 ) 12,278 Depreciation and amortization 4,791 2,202 1,742 8,735 Capital expenditures 12,803 568 3,020 16,391 Assets of the Company by reportable segments are as follows (in thousands): December 31, 2017 December 31, 2016 Energy Chemistry Technologies $ 177,797 $ 184,328 Consumer and Industrial Chemistry Technologies 116,600 98,105 Corporate and Other 35,491 56,882 Total segments 329,888 339,315 Held for sale — 43,900 Total assets $ 329,888 $ 383,215 |
Revenue by geographic location | Revenue by country is based on the location where services are provided and products are used. No individual country other than the United States (“U.S.”) accounted for more than 10% of revenue. Revenue by geographic location is as follows (in thousands): Year ended December 31, 2017 2016 2015 U.S. $ 259,610 $ 210,890 $ 227,117 Other countries 57,488 51,942 42,849 Total $ 317,098 $ 262,832 $ 269,966 |
Revenue by major customers | Revenue from major customers, as a percentage of consolidated revenue, is as follows: Year ended December 31, 2017 2016 2015 Customer A 12.8% 15.7% 17.2% Customer B 8.9% 13.2% 14.6% Customer C 4.0% 6.9% 10.6% |
Quarterly Financial Data (Una44
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Schedule of quarterly financial data | First Quarter Second Quarter Third Quarter Fourth Quarter Total (in thousands, except per share data) 2017 Revenue (1) $ 79,954 $ 85,177 $ 79,458 $ 72,509 $ 317,098 Income (loss) from operations (1) (623 ) (1,252 ) (3,103 ) 2,123 (2,855 ) Loss from continuing operations (1) $ (743 ) $ (1,122 ) $ (3,421 ) $ (7,767 ) $ (13,053 ) Income (loss) from discontinued operations, net of tax (11,235 ) (2,704 ) 319 (722 ) (14,342 ) Net loss $ (11,978 ) $ (3,826 ) $ (3,102 ) $ (8,489 ) $ (27,395 ) Basic earnings (loss) per common share (2) : Continuing operations $ (0.01 ) $ (0.02 ) $ (0.06 ) $ (0.14 ) $ (0.23 ) Discontinued operations (0.19 ) (0.05 ) 0.01 (0.01 ) (0.25 ) Basic earnings (loss) per common share $ (0.20 ) $ (0.07 ) $ (0.05 ) $ (0.15 ) $ (0.48 ) Diluted earnings (loss) per common share (2) : Continuing operations $ (0.01 ) $ (0.02 ) $ (0.06 ) $ (0.14 ) $ (0.23 ) Discontinued operations (0.19 ) (0.05 ) 0.01 (0.01 ) (0.25 ) Diluted earnings (loss) per common share $ (0.20 ) $ (0.07 ) $ (0.05 ) $ (0.15 ) $ (0.48 ) (1) Amounts exclude impact of discontinued operations. (2) The sum of the quarterly earnings (loss) per share (basic and diluted) may not agree to the earnings (loss) per share for the year due to the timing of common stock issuances. First Quarter Second Quarter Third Quarter Fourth Quarter Total (in thousands, except per share data) 2016 Revenue (1) $ 63,812 $ 64,079 $ 64,337 $ 70,604 $ 262,832 Income (loss) from operations (1) 368 156 (2,253 ) (5,575 ) (7,304 ) Income (loss) from continuing operations (1) $ (29 ) $ (111 ) $ (1,870 ) $ 3,917 $ 1,907 Loss from discontinued operations, net of tax (30,156 ) (2,169 ) (876 ) (17,836 ) (51,037 ) Net loss $ (30,185 ) $ (2,280 ) $ (2,746 ) $ (13,919 ) $ (49,130 ) Basic earnings (loss) per common share (2) : Continuing operations $ — $ — $ (0.03 ) $ 0.07 $ 0.03 Discontinued operations (0.55 ) (0.04 ) (0.02 ) (0.31 ) (0.91 ) Basic earnings (loss) per common share $ (0.55 ) $ (0.04 ) $ (0.05 ) $ (0.24 ) $ (0.88 ) Diluted earnings (loss) per common share (2) : Continuing operations $ — $ — $ (0.03 ) $ 0.07 $ 0.03 Discontinued operations (0.55 ) (0.04 ) (0.02 ) (0.31 ) (0.91 ) Diluted earnings (loss) per common share $ (0.55 ) $ (0.04 ) $ (0.05 ) $ (0.24 ) $ (0.88 ) (1) Amounts exclude impact of discontinued operations. (2) The sum of the quarterly earnings (loss) per share (basic and diluted) may not agree to the earnings (loss) per share for the year due to the timing of common stock issuances. |
Organization and Nature of Op45
Organization and Nature of Operations (Details) | Dec. 31, 2017country |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries with international presence and/or initiatives (over) | 20 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Basis of Presentation) (Details) | Dec. 31, 2017 |
Accounting Policies [Abstract] | |
Percentage of capital owned in subsidiaries (less than) | 100.00% |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in the allowance for doubtful accounts | |||
Balance, beginning of year | $ 664 | $ 709 | $ 510 |
Charged to provision for doubtful accounts | 113 | 558 | 367 |
Write-offs | (44) | (603) | (168) |
Balance, end of year | $ 733 | $ 664 | $ 709 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Property and Equipment) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |
Unamortized amount of capitalized software | $ 4 |
Buildings and leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 2 years |
Buildings and leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 30 years |
Machinery, equipment, and rental tools | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Machinery, equipment, and rental tools | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Transportation equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 2 years |
Transportation equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Computer equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Computer equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Computer software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Computer software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Other Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 2 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 20 years |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Income Taxes) (Details) - filing_group | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Number of U.S. tax return filing groups | 1 | 2 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Discontinued Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Interest allocated to discontinued operations | $ 0.2 | $ 0.4 | $ 0.2 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (New Accounting Pronouncements) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Employee share-based compensation, excess tax benefit | $ 2 |
Discontinued Operations (Additi
Discontinued Operations (Additional Disclosures) (Details) $ in Millions | May 22, 2017USD ($) | Dec. 30, 2016USD ($) | Dec. 31, 2016segment | Dec. 31, 2017USD ($) | Aug. 16, 2017USD ($) | May 23, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of segments with assets and liabilities classified as discontinued operations | segment | 2 | |||||
Drilling Technologies | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Loss on disposal of discontinued operation | $ 1.2 | |||||
Production Technologies: | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash consideration | $ 1 | $ 2.9 | ||||
Escrow deposit | $ 0.4 | |||||
Notes receivables | $ 1 | |||||
National Oilwell Varco, L.P. | Drilling Technologies | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash consideration | $ 17 | |||||
Escrow deposit | $ 1.5 | |||||
Term of escrow deposit | 18 months | |||||
Drilling Technologies And Production Technologies [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Accounts receivable assumed | $ 0.3 | |||||
Escrow assumed | 1.4 | |||||
Accrued liabilities assumed | $ 1.4 |
Discontinued Operations (Summar
Discontinued Operations (Summary Of Financial Information That Has Been Segregated From Continuing Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Discontinued operations: | |||||||||||
Net loss from discontinued operations | $ (722) | $ 319 | $ (2,704) | $ (11,235) | $ (17,836) | $ (876) | $ (2,169) | $ (30,156) | $ (14,342) | $ (51,037) | $ (20,620) |
Assets: | |||||||||||
Assets held for sale | 0 | 43,900 | 0 | 43,900 | |||||||
Discontinued Operations, Held-for-sale | Drilling Technologies | |||||||||||
Discontinued operations: | |||||||||||
Revenue | 11,534 | 27,627 | 52,112 | ||||||||
Cost of revenue | (7,309) | (18,667) | (35,410) | ||||||||
Selling, general and administrative | (6,963) | (15,285) | (21,049) | ||||||||
Depreciation and amortization | 0 | (1,714) | (3,240) | ||||||||
Research and development | (5) | (64) | (202) | ||||||||
Gain (loss) on disposal of long-lived assets | 97 | 103 | 17 | ||||||||
Impairment of inventory and long-lived assets | 0 | (36,522) | (19,568) | ||||||||
Loss from operations | (2,646) | (44,522) | (27,340) | ||||||||
Other expense | (96) | (412) | (259) | ||||||||
Loss on sale of businesses | (1,600) | (1,199) | 0 | ||||||||
Loss on write-down of assets held for sale | (6,831) | (18,971) | 0 | ||||||||
Loss before income taxes | (11,173) | (65,104) | (27,599) | ||||||||
Income tax benefit | 4,138 | 23,661 | 9,675 | ||||||||
Net loss from discontinued operations | (7,035) | (41,443) | (17,924) | ||||||||
Assets: | |||||||||||
Accounts receivable, net | 0 | 5,072 | 0 | 5,072 | |||||||
Inventories | 0 | 9,078 | 0 | 9,078 | |||||||
Other current assets | 0 | 278 | 0 | 278 | |||||||
Long-term receivable | 0 | 0 | 0 | 0 | |||||||
Property and equipment, net | 0 | 11,277 | 0 | 11,277 | |||||||
Goodwill | 0 | 15,333 | 0 | 15,333 | |||||||
Other intangible assets, net | 0 | 7,395 | 0 | 7,395 | |||||||
Assets held for sale | 0 | 48,433 | 0 | 48,433 | |||||||
Valuation allowance | 0 | (18,971) | 0 | (18,971) | |||||||
Assets held for sale, net | 0 | 29,462 | 0 | 29,462 | |||||||
Liabilities: | |||||||||||
Accounts payable | 0 | 2,472 | 0 | 2,472 | |||||||
Accrued liabilities | 0 | 1,190 | 0 | 1,190 | |||||||
Liabilities held for sale | 0 | 3,662 | 0 | 3,662 | |||||||
Discontinued Operations, Held-for-sale | Production Technologies | |||||||||||
Discontinued operations: | |||||||||||
Revenue | 4,002 | 8,292 | 12,281 | ||||||||
Cost of revenue | (3,236) | (7,881) | (10,179) | ||||||||
Selling, general and administrative | (1,759) | (3,790) | (4,158) | ||||||||
Depreciation and amortization | 0 | (584) | (658) | ||||||||
Research and development | (364) | (888) | (596) | ||||||||
Gain (loss) on disposal of long-lived assets | 0 | (50) | 3 | ||||||||
Impairment of inventory and long-lived assets | 0 | (3,913) | (804) | ||||||||
Loss from operations | (1,357) | (8,814) | (4,111) | ||||||||
Other expense | (52) | (96) | (40) | ||||||||
Loss on sale of businesses | (479) | 0 | 0 | ||||||||
Loss on write-down of assets held for sale | (9,718) | (6,161) | 0 | ||||||||
Loss before income taxes | (11,606) | (15,071) | (4,151) | ||||||||
Income tax benefit | 4,299 | 5,477 | 1,455 | ||||||||
Net loss from discontinued operations | (7,307) | (9,594) | $ (2,696) | ||||||||
Assets: | |||||||||||
Accounts receivable, net | 0 | 1,784 | 0 | 1,784 | |||||||
Inventories | 0 | 8,115 | 0 | 8,115 | |||||||
Other current assets | 0 | 370 | 0 | 370 | |||||||
Long-term receivable | 0 | 4,179 | 0 | 4,179 | |||||||
Property and equipment, net | 0 | 3,978 | 0 | 3,978 | |||||||
Goodwill | 0 | 1,689 | 0 | 1,689 | |||||||
Other intangible assets, net | 0 | 484 | 0 | 484 | |||||||
Assets held for sale | 0 | 20,599 | 0 | 20,599 | |||||||
Valuation allowance | 0 | (6,161) | 0 | (6,161) | |||||||
Assets held for sale, net | 0 | 14,438 | 0 | 14,438 | |||||||
Liabilities: | |||||||||||
Accounts payable | 0 | 914 | 0 | 914 | |||||||
Accrued liabilities | 0 | 385 | 0 | 385 | |||||||
Liabilities held for sale | $ 0 | $ 1,299 | $ 0 | $ 1,299 |
Impairment of Inventory and L55
Impairment of Inventory and Long-Lived Assets for Discontinued Operations (Additional Disclosures) (Details) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)rig | Apr. 01, 2016rig | |
Property, Plant and Equipment [Line Items] | ||||||||
Decrease in crude oil prices | 21.00% | |||||||
Number of segments tested for goodwill impairment | segment | 2 | |||||||
Goodwill impairment recognized | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
UNITED STATES | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Number of drilling rigs | rig | 698 | 450 | ||||||
Decrease in number of drilling rigs | 35.50% |
Impairment of Inventory and L56
Impairment of Inventory and Long-Lived Assets for Discontinued Operations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Property and equipment | $ 0 | $ 0 | $ 0 | ||
Impairment of inventory and rental equipment | $ 40,435,000 | $ 20,372,000 | |||
Drilling Technologies: | |||||
Segment Reporting Information [Line Items] | |||||
Inventories | 12,653,000 | 17,241,000 | |||
Property and equipment | 14,642,000 | 2,327,000 | |||
Intangible assets other than goodwill | 9,227,000 | 0 | |||
Production Technologies: | |||||
Segment Reporting Information [Line Items] | |||||
Inventories | $ 3,913,000 | $ 804,000 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Jul. 27, 2016 | Jan. 27, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||
Payments for acquisition, net of cash acquired | $ 0 | $ 7,863 | $ 0 | ||
International Polymerics, Inc | |||||
Business Acquisition [Line Items] | |||||
Percent of membership interests acquired | 100.00% | ||||
Payments for acquisition, net of cash acquired | $ 7,900 | ||||
Common stock, shares issued (in shares) | 247,764 | ||||
Artificial Lift | |||||
Business Acquisition [Line Items] | |||||
Common stock, shares issued (in shares) | 60,024 | ||||
Percent of assets acquired | 100.00% | ||||
Consideration transferred, cash payments | $ 1,300 |
Supplemental Cash Flow Inform58
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental non-cash investing and financing activities: | |||
Value of common stock issued in acquisitions | $ 0 | $ 3,268 | $ 1,014 |
Value of common stock issued in payment of accrued liability | 188 | 0 | 0 |
Exercise of stock options by common stock surrender | 5,863 | 50 | 1,332 |
Supplemental cash payment information: | |||
Interest paid | 1,851 | 2,024 | 1,398 |
Income taxes (received, net of payments) paid, net of refunds | $ (10,195) | $ 333 | $ 1,547 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||||||||||
Products | $ 310,716 | $ 256,263 | $ 258,968 | ||||||||
Services | 6,382 | 6,569 | 10,998 | ||||||||
Total revenues | $ 72,509 | $ 79,458 | $ 85,177 | $ 79,954 | $ 70,604 | $ 64,337 | $ 64,079 | $ 63,812 | 317,098 | 262,832 | 269,966 |
Cost of revenue (excluding depreciation and amortization): | |||||||||||
Products | 210,281 | 162,488 | 164,837 | ||||||||
Services | 4,848 | 7,767 | 7,196 | ||||||||
Total cost of revenue | $ 215,129 | $ 170,255 | $ 172,033 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Components of Inventory | ||
Raw materials | $ 42,682 | $ 28,626 |
Work-in-process | 3,284 | 2,918 |
Finished goods | 29,793 | 26,739 |
Inventories | $ 75,759 | $ 58,283 |
Inventories (Schedule of Inve61
Inventories (Schedule of Inventory Reserve) (Details) - Inventory Valuation Reserve - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory [Line Items] | |||
Balance, beginning of year | $ 0 | $ 0 | $ 0 |
Charged to costs and expenses | 724 | 1,301 | 16 |
Deductions | 724 | 1,301 | 16 |
Balance, end of the year | $ 0 | $ 0 | $ 0 |
Property and Equipment (Compone
Property and Equipment (Components of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Components of Property, Plant and Equipment | ||
Property and equipment | $ 112,852 | $ 105,117 |
Less accumulated depreciation | (39,019) | (30,426) |
Property and equipment, net | 73,833 | 74,691 |
Land | ||
Components of Property, Plant and Equipment | ||
Property and equipment | 6,724 | 5,837 |
Buildings and leasehold improvements | ||
Components of Property, Plant and Equipment | ||
Property and equipment | 43,899 | 42,986 |
Machinery and equipment | ||
Components of Property, Plant and Equipment | ||
Property and equipment | 41,548 | 36,187 |
Fixed assets in progress | ||
Components of Property, Plant and Equipment | ||
Property and equipment | 4,298 | 3,235 |
Furniture and fixtures | ||
Components of Property, Plant and Equipment | ||
Property and equipment | 2,002 | 1,969 |
Transportation equipment | ||
Components of Property, Plant and Equipment | ||
Property and equipment | 2,200 | 3,059 |
Computer equipment and software | ||
Components of Property, Plant and Equipment | ||
Property and equipment | $ 12,181 | $ 11,844 |
Property and Equipment (Additio
Property and Equipment (Additional Disclosures) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense, inclusive of expense captured in cost of revenue | $ 9,500,000 | $ 7,600,000 | $ 5,800,000 |
Impairment related to property and equipment | $ 0 | $ 0 | $ 0 |
Goodwill (Additional Disclosure
Goodwill (Additional Disclosures) (Details) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)reporting_unit | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||
Number of reporting units | reporting_unit | 2 | ||||||
Goodwill impairment recognized | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill (Changes in the Carryi
Goodwill (Changes in the Carrying Value of Goodwill) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in the carrying value of goodwill: | |||||||
Goodwill | $ 56,660,000 | $ 56,660,000 | $ 56,660,000 | $ 55,798,000 | |||
Accumulated impairment losses | 0 | 0 | 0 | 0 | |||
Goodwill | 56,660,000 | 56,660,000 | 56,660,000 | 55,798,000 | |||
Goodwill impairment recognized | 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Acquisition goodwill recognized | 0 | 862,000 | |||||
Energy Chemistry Technologies | |||||||
Changes in the carrying value of goodwill: | |||||||
Goodwill | 37,180,000 | 37,180,000 | 37,180,000 | 36,318,000 | |||
Accumulated impairment losses | 0 | 0 | 0 | 0 | |||
Goodwill | 37,180,000 | 37,180,000 | 37,180,000 | 36,318,000 | |||
Goodwill impairment recognized | 0 | 0 | |||||
Acquisition goodwill recognized | 0 | 862,000 | |||||
Consumer and Industrial Chemistry Technologies | |||||||
Changes in the carrying value of goodwill: | |||||||
Goodwill | 19,480,000 | 19,480,000 | 19,480,000 | 19,480,000 | |||
Accumulated impairment losses | 0 | 0 | 0 | 0 | |||
Goodwill | $ 19,480,000 | 19,480,000 | 19,480,000 | $ 19,480,000 | |||
Goodwill impairment recognized | 0 | 0 | |||||
Acquisition goodwill recognized | $ 0 | $ 0 |
Other Intangible Assets (Schedu
Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, cost | $ 51,527 | $ 50,963 |
Finite-lived intangible assets, accumulated amortization | 14,926 | 12,241 |
Total other intangible assets | 63,157 | 62,593 |
Other intangible assets, net | 48,231 | 50,352 |
Acquired Intangible Assets [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, cost | 49,736 | 49,159 |
Finite-lived intangible assets, accumulated amortization | 14,830 | 12,124 |
Patents and technology | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, cost | 17,310 | 16,815 |
Finite-lived intangible assets, accumulated amortization | 5,586 | 4,537 |
Customer lists | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, cost | 30,877 | 30,877 |
Finite-lived intangible assets, accumulated amortization | 8,127 | 6,518 |
Trademarks and brand names | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, cost | 1,549 | 1,467 |
Finite-lived intangible assets, accumulated amortization | 1,117 | 1,069 |
Deferred financing costs | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, cost | 1,791 | 1,804 |
Finite-lived intangible assets, accumulated amortization | 96 | 117 |
Trademarks and brand names | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 11,630 | $ 11,630 |
Other Intangible Assets (Additi
Other Intangible Assets (Additional Disclosures) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Amortization of other intangible assets | $ 2,700,000 | $ 2,800,000 | $ 3,000,000 |
Amortization of deferred financing costs | 472,000 | 424,000 | 346,000 |
Impairment loss | $ 0 | $ 0 | $ 0 |
Minimum | |||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Amortization period | 2 years | ||
Maximum | |||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Amortization period | 20 years |
Other Intangible Assets (Estima
Other Intangible Assets (Estimated Future Amortization Expense) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 3,017 |
2,019 | 2,956 |
2,020 | 2,929 |
2,021 | 2,916 |
2,022 | 2,664 |
Thereafter | 22,119 |
Other amortizable intangible assets, net | $ 36,601 |
Long-Term Debt and Credit Fac69
Long-Term Debt and Credit Facility (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 27,950 | $ 48,399 |
Less current portion of long-term debt | (27,950) | (40,566) |
Long-term debt, less current portion | 0 | 7,833 |
Borrowings under revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 27,950 | 38,566 |
Term loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 9,833 |
Long-Term Debt and Credit Fac70
Long-Term Debt and Credit Facility (Credit Facility) (Details) - Restated Revolving Credit, Term Loan and Security Agreement | May 10, 2013USD ($) |
Debt Instrument [Line Items] | |
Percent of adjusted EBITDA which must be paid | 25.00% |
Credit facility ceiling value, applicable to 25% of adjusted EBITDA which must be paid | $ 3,000,000 |
Covenant, maximum number of days from year end by which prepayment of 25% of adjusted EBITDA is due | 75 days |
Line of Credit | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 75,000,000 |
Line of Credit | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | 75,000,000 |
Undrawn availability threshold to reduce annual capital expenditures limit | $ 15,000,000 |
Line of Credit | Revolving Credit Facility | Minimum | |
Debt Instrument [Line Items] | |
Credit facility, financial covenant, fixed charge coverage ratio | 1 |
Credit facility, financial covenant, funded debt to adjusted EBITDA ratio | 3 |
Line of Credit | Revolving Credit Facility | Maximum | |
Debt Instrument [Line Items] | |
Credit facility, financial covenant, fixed charge coverage ratio | 1.10 |
Credit facility, financial covenant, funded debt to adjusted EBITDA ratio | 5.5 |
2,017 | |
Debt Instrument [Line Items] | |
Annual limit on capital expenditures | $ 20,000,000 |
2018 and each fiscal year thereafter | |
Debt Instrument [Line Items] | |
Annual limit on capital expenditures | $ 26,000,000 |
Long-Term Debt and Credit Fac71
Long-Term Debt and Credit Facility (Revolving Credit Facility) (Details) - Restated Revolving Credit, Term Loan and Security Agreement - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | May 10, 2013 | |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 75,000,000 | |
Line of Credit | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 75,000,000 | |
Credit facility, current borrowing capacity | $ 71,900,000 | |
Credit facility, remaining borrowing capacity | $ 43,900,000 | |
Monthly facility fee | 0.25% | |
Amount borrowed | $ 28,000,000 | |
Line of Credit | Revolving Credit Facility | PNC Bank base lending rate | ||
Line of Credit Facility [Line Items] | ||
Base lending rate | 4.50% | |
Amount borrowed | $ 6,000,000 | |
Interest rate at period end | 6.00% | |
Line of Credit | Revolving Credit Facility | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Amount borrowed | $ 22,000,000 | |
Interest rate at period end | 4.07% | |
Line of Credit | Revolving Credit Facility | Minimum | PNC Bank base lending rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Line of Credit | Revolving Credit Facility | Minimum | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Line of Credit | Revolving Credit Facility | Maximum | PNC Bank base lending rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.00% | |
Line of Credit | Revolving Credit Facility | Maximum | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 3.00% | |
Letter of Credit | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 10,000,000 |
Long-Term Debt and Credit Fac72
Long-Term Debt and Credit Facility (Term Loan) (Details) - Restated Revolving Credit, Term Loan and Security Agreement - Term loan - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||
Face amount | $ 10,000,000 | |
Monthly principal payments | $ 200,000 |
Fair Value Measurements (Additi
Fair Value Measurements (Additional Disclosures) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |||||||
Impairment related to property and equipment | $ 0 | $ 0 | $ 0 | ||||
Impairment of related to other intangible assets | 0 | 0 | 0 | ||||
Impairment related to goodwill | $ 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | $ 0 |
Cash equivalents | $ 0 | $ 0 | $ 0 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Other Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrowings under revolving credit facility | $ 27,950 | $ 38,566 |
Carrying Amount | Term loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Term loan | 0 | 9,833 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Borrowings under revolving credit facility | 27,950 | 38,566 |
Fair Value | Term loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Term loan | $ 0 | $ 9,833 |
Earnings (Loss) Per Share (Basi
Earnings (Loss) Per Share (Basic and Diluted Earnings (Loss) Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||||||||||
(Loss) income from continuing operations | $ (7,767) | $ (3,421) | $ (1,122) | $ (743) | $ 3,917 | $ (1,870) | $ (111) | $ (29) | $ (13,053) | $ 1,907 | $ 7,158 |
Loss from discontinued operations, net of tax | (722) | 319 | (2,704) | (11,235) | (17,836) | (876) | (2,169) | (30,156) | (14,342) | (51,037) | (20,620) |
Net loss | $ (8,489) | $ (3,102) | $ (3,826) | $ (11,978) | $ (13,919) | $ (2,746) | $ (2,280) | $ (30,185) | $ (27,395) | $ (49,130) | $ (13,462) |
Weighted average common shares outstanding - Basic (in shares) | 57,580 | 56,087 | 54,459 | ||||||||
Assumed conversions: | |||||||||||
Weighted average common shares outstanding - Diluted (in shares) | 57,580 | 56,350 | 54,992 | ||||||||
Basic earnings (loss) per common share: | |||||||||||
Continuing operations (in dollars per share) | $ (0.14) | $ (0.06) | $ (0.02) | $ (0.01) | $ 0.07 | $ (0.03) | $ 0 | $ 0 | $ (0.23) | $ 0.03 | $ 0.13 |
Discontinued operations, net of tax (in dollars per share) | (0.01) | 0.01 | (0.05) | (0.19) | (0.31) | (0.02) | (0.04) | (0.55) | (0.25) | (0.91) | (0.38) |
Basic earnings (loss) per common share (in dollars per share) | (0.15) | (0.05) | (0.07) | (0.20) | (0.24) | (0.05) | (0.04) | (0.55) | (0.48) | (0.88) | (0.25) |
Diluted earnings (loss) per common share: | |||||||||||
Continuing operations (in dollars per share) | (0.14) | (0.06) | (0.02) | (0.01) | 0.07 | (0.03) | 0 | 0 | (0.23) | 0.03 | 0.13 |
Discontinued operations, net of tax (in dollars per share) | (0.01) | 0.01 | (0.05) | (0.19) | (0.31) | (0.02) | (0.04) | (0.55) | (0.25) | (0.91) | (0.37) |
Diluted earnings (loss) per common share (in dollars per share) | $ (0.15) | $ (0.05) | $ (0.07) | $ (0.20) | $ (0.24) | $ (0.05) | $ (0.04) | $ (0.55) | $ (0.48) | $ (0.88) | $ (0.24) |
Stock options | |||||||||||
Class of Stock [Line Items] | |||||||||||
Anti-dilutive securities excluded from calculation of earnings per share (in shares) | 700 | ||||||||||
Assumed conversions: | |||||||||||
Incremental common shares (in shares) | 0 | 197 | 527 | ||||||||
Restricted Stock Units (RSUs) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Anti-dilutive securities excluded from calculation of earnings per share (in shares) | 700 | ||||||||||
Assumed conversions: | |||||||||||
Incremental common shares (in shares) | 0 | 66 | 6 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ (1,314) | $ 442 | $ 3,944 |
State | 675 | (85) | 390 |
Foreign | 488 | (526) | 1,841 |
Total current | (151) | (169) | 6,175 |
Deferred: | |||
Federal | 8,701 | 1,564 | (2,628) |
State | 337 | (112) | (63) |
Foreign | (45) | (46) | (8) |
Total deferred | 8,993 | 1,406 | (2,699) |
Income tax expense | $ 8,842 | $ 1,237 | $ 3,476 |
Income Taxes (Domestic and Fore
Income Taxes (Domestic and Foreign Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (2,844) | $ 4,502 | $ 4,760 |
Foreign | (1,367) | (1,358) | 5,874 |
(Loss) income before income taxes | $ (4,211) | $ 3,144 | $ 10,634 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Effective Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | (14.20%) | (5.30%) | 2.00% |
Non-U.S. income taxed at different rates | (11.60%) | 1.20% | (4.40%) |
Impact of 2017 Tax Cuts and Jobs Act | (1.736) | 0 | 0 |
Net operating loss carryback adjustment | (0.00%) | 10.00% | 1.40% |
Reduction in tax benefit related to stock-based awards | (47.20%) | 0.00% | 0.00% |
Non-deductible expenditures | (11.00%) | 13.10% | 5.90% |
Research and development credit | 10.80% | (12.70%) | (3.50%) |
Other | 1.80% | (2.00%) | (3.70%) |
Effective income tax rate | (210.00%) | 39.30% | 32.70% |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 24,569 | $ 21,212 |
Allowance for doubtful accounts | 981 | 1,582 |
Inventory valuation reserves | 827 | 2,205 |
Equity compensation | 685 | 3,161 |
Goodwill | 0 | 10,788 |
Accrued compensation | 222 | 80 |
Foreign tax credit carryforward | 3,955 | 2,365 |
Other | 0 | 76 |
Total gross deferred tax assets | 31,239 | 41,469 |
Valuation allowance | (1,187) | (1,053) |
Total deferred tax assets, net | 30,052 | 40,416 |
Deferred tax liabilities: | ||
Property and equipment | (6,216) | (7,264) |
Intangible assets | (10,084) | (13,375) |
Goodwill | (365) | 0 |
Convertible debt | (619) | (2,010) |
Unearned revenue | (52) | (4,535) |
Prepaid insurance and other | (3) | (338) |
Total gross deferred tax liabilities | (17,339) | (27,522) |
Net deferred tax assets | $ 12,713 | $ 12,894 |
Income Taxes (Additional Disclo
Income Taxes (Additional Disclosures) (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2015filing_group | Dec. 31, 2014filing_group | Dec. 31, 2016USD ($) | |
Income Tax Disclosure [Abstract] | ||||
Provisional expense for the effects of the 2017 Tax Act | $ 7,300,000 | |||
Provisional expense for remeasurement of net deferred tax assets for the effects of the 2017 Tax Act | 5,500,000 | |||
Provisional expense for unrepatriated earnings from foreign subsidiaries for the effects of the 2017 Tax Act | 200,000 | |||
Provisional expense for limitations on the deductibility of executive compensation for the effects of the 2017 Tax Act | 1,600,000 | |||
Unrecognized tax benefits | 0 | |||
Net operating loss carryforwards | 103,800,000 | |||
Number of U.S. tax return filing groups | filing_group | 1 | 2 | ||
Valuation allowance | 1,187,000 | $ 1,053,000 | ||
Unremitted earnings outside the US | $ 1,500,000 |
Common Stock (Reconciliation of
Common Stock (Reconciliation of Common Shares Issued and Additional Disclosures) (Details) | Nov. 09, 2009series$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016$ / sharesshares |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 | 80,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock. shares authorized (in shares) | 100,000 | 100,000 | 100,000 |
Preferred stock, minimum number of series authorized | series | 1 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Increase (Decrease) in Stockholders' Equity | |||
Shares issued at the beginning of the year (in shares) | 59,684,669 | 56,220,214 | |
Issued in sale of common stock (in shares) | 0 | 2,450,339 | |
Issued in acquisition (in shares) | 0 | 247,764 | |
Issued in payment of accrued liability (in shares) | 0 | 20,000 | |
Issued as restricted stock award grants (in shares) | 275,029 | 632,240 | |
Issued upon exercise of stock options (in shares) | 663,288 | 114,112 | |
Shares issued at the end of the year (in shares) | 60,622,986 | 59,684,669 |
Common Stock (Stock-Based Incen
Common Stock (Stock-Based Incentive Plans) (Details) | Dec. 31, 2017shares |
2014 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum number of shares that may be issued (in shares) | 5,200,000 |
Shares remaining to be granted (in shares) | 303,248 |
2010 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum number of shares that may be issued (in shares) | 6,000,000 |
Shares remaining to be granted (in shares) | 300,000 |
2007 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum number of shares that may be issued (in shares) | 2,200,000 |
Common Stock (Stock Option Acti
Common Stock (Stock Option Activity and Additional Details) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted in period (in shares) | 0 | 0 | 0 |
Shares (in shares) | |||
Outstanding, beginning of period (in shares) | 663,288 | ||
Exercised (in shares) | (663,288) | (114,112) | |
Forfeited (in shares) | 0 | ||
Expired (in shares) | 0 | ||
Outstanding, end of period (in shares) | 0 | 663,288 | |
Weighted-Average Exercise Price (in dollars per share) | |||
Outstanding, beginning of period (in dollars per share) | $ 8.87 | ||
Exercised (in dollars per share) | 8.87 | ||
Forfeited (in dollars per share) | 0 | ||
Expired (in dollars per share) | 0 | ||
Outstanding, end of period (in dollars per share) | $ 0 | $ 8.87 | |
Weighted Average Remaining Conctracual Term (in years) | |||
Outstanding | 0 days | ||
Aggregate Intrinsic Value | |||
Outstanding | $ 0 | ||
Stock Options, Additional Disclosures | |||
Total intrinsic value of stock options exercised | $ 2,300,000 | $ 1,000,000 | $ 8,400,000 |
Number of stock options vested (in shares) | 0 | 0 | 0 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award expiration period | 10 years | ||
Vesting period in years | 4 years |
Common Stock (Restricted Stock
Common Stock (Restricted Stock and Units) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock, Time-vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage by award type | 100.00% | ||
Restricted Stock, Time-vesting | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period in years | 3 years | ||
Restricted Stock, Performance-based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage by award type | 0.00% | ||
Restricted Stock | |||
Shares | |||
Non-vested at beginning of period (in shares) | 683,242 | ||
Forfeited (in shares) | (121,986) | ||
Granted to employees (in shares) | 260,029 | ||
Granted in service provider (in shares) | 15,000 | ||
Vested (in shares) | (590,027) | ||
Non-vested at end of period (in shares) | 246,258 | 683,242 | |
Weighted-Average Fair Value - Date of Grant (in dollars per share) | |||
Non-vested at beginning of period (in dollars per share) | $ 15.92 | ||
Forfeited (in dollars per share) | 17.48 | ||
Granted to employees (in dollars per share) | 10.62 | $ 11.92 | $ 16.15 |
Granted to service provider (in dollars per share) | 9.34 | ||
Vested (in dollars per share) | 14.63 | ||
Non-vested at end of period (in dollars per share) | $ 12.24 | $ 15.92 | |
Fair value of vested restricted stock | $ 8.6 | $ 15.4 | $ 13.7 |
Award unrecognized compensation expense | $ 1.7 | ||
Award unrecognized compensation expense, expected period for recognition | 11 months 1 day | ||
Restricted Stock Units (RSUs) | |||
Shares | |||
Non-vested at beginning of period (in shares) | 768,393 | ||
Non-vested at end of period (in shares) | 725,331 | 768,393 | |
Weighted-Average Fair Value - Date of Grant (in dollars per share) | |||
Non-vested at beginning of period (in dollars per share) | $ 12.02 | ||
Non-vested at end of period (in dollars per share) | $ 16.41 | $ 12.02 | |
Units to be converted (in shares) | 252,405 | ||
Award unrecognized compensation expense | $ 8.5 | ||
Award unrecognized compensation expense, expected period for recognition | 1 year 8 months 23 days | ||
Awards granted (in shares) | 604,682 | 768,393 | |
2016 | Restricted Stock Units (RSUs) | |||
Shares | |||
Forfeited (in shares) | (263,585) | ||
Share equivalents not earned (in shares) | (252,403) | ||
Vested (in shares) | (252,405) | ||
Weighted-Average Fair Value - Date of Grant (in dollars per share) | |||
Forfeited (in dollars per share) | $ 12.02 | ||
Share equivalents not earned (in dollars per share) | 12.02 | ||
Vested (in dollars per share) | $ 12.02 | ||
2017 | Restricted Stock Units (RSUs) | |||
Shares | |||
Forfeited (in shares) | (131,756) | ||
Granted to employees (in shares) | 604,682 | ||
Weighted-Average Fair Value - Date of Grant (in dollars per share) | |||
Forfeited (in dollars per share) | $ 18.48 | ||
Granted to employees (in dollars per share) | $ 18.70 |
Common Stock (Employee Stock Pu
Common Stock (Employee Stock Purchase Plan) (Details) - USD ($) $ in Millions | May 18, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 11.2 | $ 12.1 | $ 13.1 | |
Total fair value of the shares purchased under the plan | 0.8 | 1 | 1 | |
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Registered shares of common stock (in shares) | 500,000 | |||
Percent of common stock fair market value | 85.00% | |||
Offering period | 3 months | |||
Maximum employee compensation payroll deductions may not exceed | 10.00% | |||
Maximum shares employees may purchase in any one offering period (in shares) | 1,000 | |||
Share-based compensation expense | $ 0.1 | $ 0.1 | $ 0.2 |
Common Stock (Share-Based Compe
Common Stock (Share-Based Compensation, Treasury Stock, and Stock Repurchase Plan) (Details) - USD ($) | 12 Months Ended | 31 Months Ended | 62 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2017 | Jun. 30, 2015 | Nov. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Non-cash share-based compensation expense | $ 11,200,000 | $ 12,100,000 | $ 13,100,000 | ||||
Common stock shares purchased as payment of income tax withholding (in shares) | 199,644 | 238,216 | 473,304 | ||||
Stock surrendered for exercise of stock options (in shares) | 478,287 | 3,225 | 106,810 | ||||
Common stock shares purchased, cost | $ 5,203,000 | $ 9,697,000 | |||||
Remaining authorized repurchase amount | 49,700,000 | $ 49,700,000 | $ 49,700,000 | ||||
Restated Revolving Credit, Term Loan and Security Agreement | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share repurchase covenant | $ 9,700,000 | ||||||
Share Repurchase Program, November 2012 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock repurchase shares authorized | $ 25,000,000 | ||||||
Common stock shares purchased by the company (in shares) | 905,000 | 0 | 799,723 | ||||
Common stock shares purchased, cost | $ 5,200,000 | $ 9,700,000 | $ 25,000,000 | ||||
Common stock shares purchased, average cost per share (in dollars per share) | $ 5.75 | $ 12.13 | |||||
Share Repurchase Program, June 2015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock repurchase shares authorized | $ 50,000,000 | ||||||
Common stock shares purchased, cost | $ 300,000 |
Commitments and Contingencies (
Commitments and Contingencies (Class Action Litigation) (Details) - lawsuit | 1 Months Ended | 23 Months Ended | |
Jan. 31, 2016 | Nov. 30, 2015 | Dec. 31, 2017 | |
Lawsuits Filed in the United States District Court for the Southern District of Texas | |||
Loss Contingencies [Line Items] | |||
Number of lawsuits filed | 1 | 4 | |
Derivative Lawsuit Against Officers and Directors | |||
Loss Contingencies [Line Items] | |||
Number of lawsuits filed | 3 | ||
Derivative Lawsuit Filed in District Court of Harris County, Texas | |||
Loss Contingencies [Line Items] | |||
Number of lawsuits filed | 2 | 1 |
Commitments and Contingencies88
Commitments and Contingencies (Short-Swing Settlement) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||||
Gain on legal settlement | $ 0 | $ 12,730 | $ 0 | |
Gates Capital Management, Inc | ||||
Loss Contingencies [Line Items] | ||||
Gain on legal settlement | $ 12,700 |
Commitments and Contingencies89
Commitments and Contingencies (Operating Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Future minimum lease payments under operating leases | |||
2,018 | $ 2,734 | ||
2,019 | 2,434 | ||
2,020 | 2,169 | ||
2,021 | 1,973 | ||
2,022 | 1,988 | ||
Thereafter | 10,508 | ||
Total | 21,806 | ||
Rent expense under operating leases | $ 2,900 | $ 3,300 | $ 2,600 |
Commitments and Contingencies90
Commitments and Contingencies (401(k) Retirement Plan )(Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Compensation expense related to 401(k) retirement plan | $ 1 | $ 1 | $ 1 |
Up to 2 Percent | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Company match | 100.00% | ||
Employee contribution | 2.00% | ||
From 4 to 8 Percent | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Company match | 50.00% | ||
From 4 to 8 Percent | Minimum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee contribution | 4.00% | ||
From 4 to 8 Percent | Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee contribution | 8.00% |
Business Segment, Geographic 91
Business Segment, Geographic and Major Customer Information (Additional Disclosures) (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Business Segment, Geographic 92
Business Segment, Geographic and Major Customer Information (Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Net revenue from external customers | $ 72,509 | $ 79,458 | $ 85,177 | $ 79,954 | $ 70,604 | $ 64,337 | $ 64,079 | $ 63,812 | $ 317,098 | $ 262,832 | $ 269,966 |
Income (loss) from operations | $ 2,123 | $ (3,103) | $ (1,252) | $ (623) | $ (5,575) | $ (2,253) | $ 156 | $ 368 | (2,855) | (7,304) | 12,278 |
Depreciation and amortization | 12,159 | 10,429 | 8,735 | ||||||||
Capital expenditures | 8,960 | 13,960 | 16,391 | ||||||||
Operating Segments | Energy Chemistry Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue from external customers | 243,106 | 188,233 | 213,592 | ||||||||
Income (loss) from operations | 33,611 | 29,014 | 43,902 | ||||||||
Depreciation and amortization | 7,323 | 5,935 | 4,791 | ||||||||
Capital expenditures | 3,279 | 10,674 | 12,803 | ||||||||
Operating Segments | Consumer and Industrial Chemistry Technologies | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue from external customers | 73,992 | 74,599 | 56,374 | ||||||||
Income (loss) from operations | 7,465 | 9,664 | 8,742 | ||||||||
Depreciation and amortization | 2,391 | 2,257 | 2,202 | ||||||||
Capital expenditures | 4,763 | 888 | 568 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue from external customers | 0 | 0 | 0 | ||||||||
Income (loss) from operations | (43,931) | (45,982) | (40,366) | ||||||||
Depreciation and amortization | 2,445 | 2,237 | 1,742 | ||||||||
Capital expenditures | $ 918 | $ 2,398 | $ 3,020 |
Business Segment, Geographic 93
Business Segment, Geographic and Major Customer Information (Assets by Reportable Segments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Assets | $ 329,888 | $ 383,215 |
Held for sale | 0 | 43,900 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 329,888 | 339,315 |
Operating Segments | Energy Chemistry Technologies | ||
Segment Reporting Information [Line Items] | ||
Assets | 177,797 | 184,328 |
Operating Segments | Consumer and Industrial Chemistry Technologies | ||
Segment Reporting Information [Line Items] | ||
Assets | 116,600 | 98,105 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 35,491 | $ 56,882 |
Business Segment, Geographic 94
Business Segment, Geographic and Major Customer Information (Revenue by Geographic Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue by geographic location | |||||||||||
Revenue | $ 72,509 | $ 79,458 | $ 85,177 | $ 79,954 | $ 70,604 | $ 64,337 | $ 64,079 | $ 63,812 | $ 317,098 | $ 262,832 | $ 269,966 |
U.S. | |||||||||||
Revenue by geographic location | |||||||||||
Revenue | 259,610 | 210,890 | 227,117 | ||||||||
Other countries | |||||||||||
Revenue by geographic location | |||||||||||
Revenue | $ 57,488 | $ 51,942 | $ 42,849 |
Business Segment, Geographic 95
Business Segment, Geographic and Major Customer Information (Major Customers) (Details) - Customer Concentration Risk - Sales Revenue, Net | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Major Customers [Member] | Energy Chemistry Technologies | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 95.00% | 95.00% | 95.00% |
Customer A | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 12.80% | 15.70% | 17.20% |
Customer B | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 8.90% | 13.20% | 14.60% |
Customer C | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 4.00% | 6.90% | 10.60% |
Quarterly Financial Data (Una96
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |||||||||||
Revenue | $ 72,509 | $ 79,458 | $ 85,177 | $ 79,954 | $ 70,604 | $ 64,337 | $ 64,079 | $ 63,812 | $ 317,098 | $ 262,832 | $ 269,966 |
Income (loss) from operations | 2,123 | (3,103) | (1,252) | (623) | (5,575) | (2,253) | 156 | 368 | (2,855) | (7,304) | 12,278 |
Income (loss) from continuing operations | (7,767) | (3,421) | (1,122) | (743) | 3,917 | (1,870) | (111) | (29) | (13,053) | 1,907 | 7,158 |
Loss from discontinued operations, net of tax | (722) | 319 | (2,704) | (11,235) | (17,836) | (876) | (2,169) | (30,156) | (14,342) | (51,037) | (20,620) |
Net loss | $ (8,489) | $ (3,102) | $ (3,826) | $ (11,978) | $ (13,919) | $ (2,746) | $ (2,280) | $ (30,185) | $ (27,395) | $ (49,130) | $ (13,462) |
Basic earnings (loss) per common share: | |||||||||||
Continuing operations (in dollars per share) | $ (0.14) | $ (0.06) | $ (0.02) | $ (0.01) | $ 0.07 | $ (0.03) | $ 0 | $ 0 | $ (0.23) | $ 0.03 | $ 0.13 |
Discontinued operations (in dollars per share) | (0.01) | 0.01 | (0.05) | (0.19) | (0.31) | (0.02) | (0.04) | (0.55) | (0.25) | (0.91) | (0.38) |
Basic earnings (loss) per common share (in dollars per share) | (0.15) | (0.05) | (0.07) | (0.20) | (0.24) | (0.05) | (0.04) | (0.55) | (0.48) | (0.88) | (0.25) |
Diluted earnings (loss) per common share: | |||||||||||
Continuing operations (in dollars per share) | (0.14) | (0.06) | (0.02) | (0.01) | 0.07 | (0.03) | 0 | 0 | (0.23) | 0.03 | 0.13 |
Discontinued operations (in dollars per share) | (0.01) | 0.01 | (0.05) | (0.19) | (0.31) | (0.02) | (0.04) | (0.55) | (0.25) | (0.91) | (0.37) |
Diluted earnings (loss) per common share (in dollars per share) | $ (0.15) | $ (0.05) | $ (0.07) | $ (0.20) | $ (0.24) | $ (0.05) | $ (0.04) | $ (0.55) | $ (0.48) | $ (0.88) | $ (0.24) |