Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | DRQ | ||
Entity Registrant Name | DRIL-QUIP INC | ||
Entity Central Index Key | 1042893 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 38,771,150 | ||
Entity Public Float | $4,341,800,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Products | $773,205 | $731,617 | $610,218 |
Services | 157,752 | 140,755 | 122,813 |
Total revenues | 930,957 | 872,372 | 733,031 |
Cost and expenses: | |||
Products | 428,125 | 436,359 | 384,513 |
Services | 85,402 | 77,547 | 67,153 |
Total cost of sales | 513,527 | 513,906 | 451,666 |
Selling, general and administrative | 92,762 | 94,806 | 82,218 |
Engineering and product development | 45,920 | 40,115 | 37,455 |
Total costs and expenses | 652,209 | 648,827 | 571,339 |
Operating income | 278,748 | 223,545 | 161,692 |
Interest income | 667 | 587 | 462 |
Interest expense | -35 | -35 | -32 |
Income before income taxes | 279,380 | 224,097 | 162,122 |
Income tax provision | 70,668 | 54,270 | 42,913 |
Net income | $208,712 | $169,827 | $119,209 |
Earnings per common share: | |||
Basic | $5.22 | $4.18 | $2.96 |
Diluted | $5.19 | $4.16 | $2.94 |
Weighted average common shares outstanding: | |||
Basic | 39,964 | 40,648 | 40,332 |
Diluted | 40,190 | 40,865 | 40,523 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $59,087 | $55,683 | $51,324 | $42,618 | $47,063 | $39,995 | $42,927 | $39,842 | $208,712 | $169,827 | $119,209 |
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | -30,034 | -6,340 | 4,613 | ||||||||
Total comprehensive income | $178,678 | $163,487 | $123,822 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $298,705 | $384,356 |
Trade receivables, net | 373,993 | 279,253 |
Inventories, net | 392,559 | 368,354 |
Deferred income taxes | 23,569 | 20,491 |
Prepaids and other current assets | 38,314 | 28,552 |
Total current assets | 1,127,140 | 1,081,006 |
Property, plant and equipment, net | 309,525 | 304,806 |
Other assets | 12,586 | 10,993 |
Total assets | 1,449,251 | 1,396,805 |
Current liabilities: | ||
Accounts payable | 53,837 | 45,454 |
Accrued income taxes | 16,903 | 13,628 |
Customer prepayments | 71,177 | 45,025 |
Accrued compensation | 21,527 | 21,556 |
Other accrued liabilities | 35,198 | 23,780 |
Total current liabilities | 198,642 | 149,443 |
Deferred income taxes | 5,417 | 5,344 |
Total liabilities | 204,059 | 154,787 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock: 10,000,000 shares authorized at $0.01 par value (none issued) | ||
Common stock: 100,000,000 and 50,000,000 shares authorized at $0.01 par value at December 31, 2014 and 2013, 38,932,508 and 40,822,627 issued and outstanding at December 31, 2014 and 2013 | 388 | 407 |
Additional paid-in capital | 16,480 | 191,965 |
Retained earnings | 1,278,528 | 1,069,816 |
Accumulated other comprehensive losses | -50,204 | -20,170 |
Total stockholders' equity | 1,245,192 | 1,242,018 |
Total liabilities and stockholders' equity | $1,449,251 | $1,396,805 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 50,000,000 |
Common stock, shares issued | 38,932,508 | 40,822,627 |
Common stock, shares outstanding | 38,932,508 | 40,822,627 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income | $208,712 | $169,827 | $119,209 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 31,155 | 29,340 | 26,224 |
Stock-based compensation expense | 11,856 | 8,900 | 5,748 |
Loss (gain) on sale of equipment | -146 | 124 | 239 |
Deferred income taxes | -3,145 | -1,235 | 338 |
Changes in operating assets and liabilities: | |||
Trade receivables, net | -102,696 | -17,250 | -81,566 |
Inventories, net | -36,814 | -10,562 | -81,884 |
Prepaids and other assets | -13,239 | 6,161 | -8,510 |
Excess tax benefits of stock options and awards | -558 | -2,863 | -1,487 |
Accounts payable and accrued expenses | 54,188 | -20,213 | 13,530 |
Net cash provided by (used in) operating activities | 149,313 | 162,229 | -8,159 |
Investing activities | |||
Purchase of property, plant and equipment | -42,549 | -42,633 | -50,773 |
Proceeds from sale of equipment | 978 | 760 | 1,774 |
Net cash used in investing activities | -41,571 | -41,873 | -48,999 |
Financing activities | |||
Repurchase of common stock | -190,234 | -10,002 | |
Principal payments on debt | -39 | ||
Proceeds from exercise of stock options | 2,849 | 10,506 | 10,809 |
Excess tax benefits of stock options and awards | 558 | 2,863 | 1,487 |
Net cash provided by (used in) financing activities | -186,827 | 3,367 | 12,257 |
Effect of exchange rate changes on cash activities | -6,566 | 3,442 | 3,516 |
Increase (decrease) in cash and cash equivalents | -85,651 | 127,165 | -41,385 |
Cash and cash equivalents at beginning of year | 384,356 | 257,191 | 298,576 |
Cash and cash equivalents at end of year | $298,705 | $384,356 | $257,191 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | |||||
Balance at Dec. 31, 2011 | $925,244 | $402 | $162,505 | $780,780 | ($18,443) |
Foreign currency translation adjustment | 4,613 | 4,613 | |||
Net income | 119,209 | 119,209 | |||
Comprehensive income | 123,822 | ||||
Options exercised and awards vested | 10,809 | 3 | 10,806 | ||
Stock-based compensation | 5,748 | 5,748 | |||
Excess tax benefits-stock options and awards | 809 | 809 | |||
Balance at Dec. 31, 2012 | 1,066,432 | 405 | 179,868 | 899,989 | -13,830 |
Foreign currency translation adjustment | -6,340 | -6,340 | |||
Net income | 169,827 | 169,827 | |||
Comprehensive income | 163,487 | ||||
Options exercised and awards vested | 10,506 | 3 | 10,503 | ||
Stock-based compensation | 8,900 | 8,900 | |||
Excess tax benefits-stock options and awards | 2,695 | 2,695 | |||
Treasury stock | -10,002 | -1 | -10,001 | ||
Balance at Dec. 31, 2013 | 1,242,018 | 407 | 191,965 | 1,069,816 | -20,170 |
Foreign currency translation adjustment | -30,034 | -30,034 | |||
Net income | 208,712 | 208,712 | |||
Comprehensive income | 178,678 | ||||
Options exercised and awards vested | 2,849 | 1 | 2,848 | ||
Stock-based compensation | 11,856 | 11,856 | |||
Excess tax benefits-stock options and awards | 25 | 25 | |||
Treasury stock | -190,234 | -20 | -190,214 | ||
Balance at Dec. 31, 2014 | $1,245,192 | $388 | $16,480 | $1,278,528 | ($50,204) |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Stockholders' Equity [Abstract] | |||
Options exercised and awards vested in shares | 48,523 | 284,653 | 299,635 |
Treasury stock shares | 2,023,172 | 85,840 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization |
Dril-Quip, Inc., a Delaware corporation (the “Company” or “Dril-Quip”), designs, manufactures, sells and services highly engineered offshore drilling and production equipment that is well suited for use in deepwater, harsh environment and severe service applications. The Company’s principal products consist of subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors and diverters. Dril-Quip’s products are used by major integrated, large independent and foreign national oil and gas companies in offshore areas throughout the world. Dril-Quip also provides technical advisory assistance on an as-requested basis during installation of its products, as well as rework and reconditioning services for customer-owned Dril-Quip products. In addition, Dril-Quip’s customers may rent or purchase running tools from the Company for use in the installation and retrieval of the Company’s products. | |
The Company’s operations are organized into three geographic segments—Western Hemisphere (including North and South America; headquartered in Houston, Texas), Eastern Hemisphere (including Europe and Africa; headquartered in Aberdeen, Scotland) and Asia-Pacific (including the Pacific Rim, Southeast Asia, Australia, India and the Middle East; headquartered in Singapore). Each of these segments sells similar products and services and the Company has major manufacturing facilities in all three of its headquarter locations as well as in Macae, Brazil. The Company’s major subsidiaries are Dril-Quip (Europe) Limited (DQE), located in Aberdeen with branches in Denmark, Norway and Holland; Dril-Quip Asia Pacific PTE Ltd. (DQAP), located in Singapore; Dril-Quip do Brasil LTDA (DQB), located in Macae, Brazil; and DQ Holdings Pty Ltd. (DQH), located in Perth, Australia. Other subsidiaries include Dril-Quip (Ghana) Ltd. located in Takoradi, Ghana, PT DQ Oilfield Services Indonesia located in Jakarta, Indonesia, Dril-Quip (Nigeria) Ltd. located in Port Harcourt, Nigeria, Dril-Quip Egypt for Petroleum Services S.A.E. located in Alexandria, Egypt, Dril-Quip Oilfield Services (Tianjin) Co. Ltd. located in Tianjin, China and Dril-Quip Qatar, LLC located in Doha, Qatar. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Significant Accounting Policies | 2. Significant Accounting Policies | ||||
Principles of Consolidation | |||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. | |||||
Revision | |||||
The Company has corrected its 2013 consolidated balance sheet to reflect a $4.5 million reclassification adjustment of deferred income tax, which reduced current deferred tax assets and long-term deferred tax liabilities. This adjustment had no impact on the Company’s consolidated statements of income, comprehensive income, cash flows or stockholders’ equity for any periods presented. In addition, the Company corrected its 2013 consolidated balance sheet to reflect a $6.7 million reclassification from accounts payable and accrued expenses to prepaids and other current assets for vendor prepayments that were originally recorded as a reduction of accounts payable. This adjustment had no impact on the Company’s consolidated statements of income, comprehensive income, or stockholders’ equity for any periods presented. After similar reclassification adjustments were made to its 2012 and 2011 consolidated balance sheets (not presented herein), the Company’s 2013 and 2012 statements of cash flows were revised to reflect the reclassification of $11.6 million and $9.4 million, respectively, from changes in prepaids and other assets to changes in accounts payable and accrued expenses. There was no impact on the net cash from operating activities or any other reported cash flow amounts as a result of the reclassifications. The Company has evaluated the impact of these revisions and determined that they were not material. | |||||
Use of Estimates | |||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition, inventories and contingent liabilities. | |||||
Cash and cash equivalents | |||||
Short-term investments that have a maturity of three months or less from the date of purchase are classified as cash equivalents. The Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in U.S. Treasury obligations and repurchase agreements backed by U.S. Treasury obligations. The Company’s investment objectives continue to be the preservation of capital and the maintenance of liquidity. | |||||
Trade Receivables | |||||
The Company maintains an allowance for doubtful accounts on trade receivables equal to amounts estimated to be uncollectible. This estimate is based upon historical collection experience combined with a specific review of each customer’s outstanding trade receivable balance. Management believes that the allowance for doubtful accounts is adequate; however, actual write-offs may exceed the recorded allowance. The following is a summary of activity relating to the allowance for doubtful accounts for the years ended December 31, 2012, 2013 and 2014: | |||||
In thousands | |||||
Balance at December 31, 2011 | $ | 1,160 | |||
Charges to costs and expenses | 1,469 | ||||
Recoveries/write-offs | (516 | ) | |||
Balance at December 31, 2012 | 2,113 | ||||
Charges to costs and expenses | 910 | ||||
Recoveries/write-offs | (659 | ) | |||
Balance at December 31, 2013 | 2,364 | ||||
Charges to costs and expenses | 4,832 | ||||
Recoveries/write-offs | (955 | ) | |||
Balance at December 31, 2014 | $ | 6,241 | |||
Inventories | |||||
Inventory costs are determined principally by the use of the first-in, first-out (FIFO) costing method and are stated at the lower of cost or market. Company manufactured inventory is valued principally using standard costs, which are calculated based upon direct costs incurred and overhead allocations and approximate actual costs. Inventory purchased from third party vendors is principally valued at the weighted average cost. Periodically, obsolescence reviews are performed on slow-moving inventories and reserves are established based on current assessments about future demands and market conditions. The inventory values have been reduced by a reserve for excess and slow-moving inventories. Inventory reserves of $34.6 million and $33.2 million were recorded as of December 31, 2014 and 2013, respectively. If market conditions are less favorable than those projected by management, additional inventory reserves may be required. | |||||
Property, Plant and Equipment | |||||
Property, plant and equipment are carried at cost, with depreciation provided on a straight-line basis over their estimated useful lives. | |||||
Impairment of Long-Lived Assets | |||||
Long-lived assets, including property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to be generated by the asset, an impairment charge is recognized by reflecting the asset at its fair value. No impairments of long-lived assets were recorded in 2014, 2013 or 2012. | |||||
Income Taxes | |||||
The Company accounts for income taxes using the asset and liability method. Current income taxes are provided on income reported for financial statement purposes, adjusted for transactions that do not enter into the computation of income taxes payable in the same year. Deferred tax assets and liabilities are measured using enacted tax rates for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||
Revenue Recognition | |||||
Product Revenue | |||||
The Company recognizes product revenues from two methods: | |||||
• | product revenues recognized under the percentage-of-completion method; and | ||||
• | product revenues from the sale of products that do not qualify for the percentage-of-completion method. | ||||
Revenues recognized under the percentage-of-completion method | |||||
The Company uses the percentage-of-completion method on long-term project contracts that have the following characteristics: | |||||
• | The contracts call for products which are designed to customer specifications; | ||||
• | The structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration; | ||||
• | The contracts contain specific terms as to milestones, progress billings and delivery dates; and | ||||
• | Product requirements cannot be filled directly from the Company’s standard inventory. | ||||
For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percent complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. | |||||
Under the percentage-of-completion method, billings do not always correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported in trade receivables. Unbilled revenues are expected to be billed and collected within one year. At December 31, 2014 and 2013, receivables included $68.0 million and $52.9 million of unbilled receivables, respectively. For the year ended December 31, 2014, there were 17 projects representing approximately 11% of the Company’s total revenues and approximately 13% of its product revenues that were accounted for using percentage-of-completion accounting, and 21 projects during 2013 which represented 15% of the Company’s total revenue and 18% of its product revenues. | |||||
Revenues not recognized under the percentage-of-completion method | |||||
Revenues from the sale of inventory products, not accounted for under the percentage-of-completion method, are recorded at the time the manufacturing processes are complete and ownership is transferred to the customer. | |||||
Service revenue | |||||
The Company earns service revenues from three sources: | |||||
• | technical advisory assistance; | ||||
• | rental of running tools; and | ||||
• | rework and reconditioning of customer owned Dril-Quip products. | ||||
The Company does not install products for its customers, but it does provide technical advisory assistance. At the time of delivery of the product, the customer is not obligated to buy or rent the Company’s running tools and the Company is not obligated to perform any subsequent services relating to installation. Technical advisory assistance service revenue is recorded at the time the service is rendered. Service revenues associated with the rental of running and installation tools are recorded as earned. Rework and reconditioning service revenues are recorded when the refurbishment process is complete. | |||||
The Company normally negotiates contracts for products, including those accounted for under the percentage-of-completion method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may use a third party or their own personnel. | |||||
Foreign Currency | |||||
The financial statements of foreign subsidiaries are translated into U.S. dollars at period-end exchange rates except for revenues and expenses, which are translated at average monthly rates. Translation adjustments are reflected as a separate component of stockholders’ equity and have no effect on current earnings or cash flows. | |||||
Foreign currency exchange transactions are recorded using the exchange rate at the date of the settlement. Exchange losses were approximately $3.4 million in 2014, $4.6 million in 2013, and $3.8 million in 2012, net of income taxes. These amounts are included in selling, general and administrative costs in the Consolidated Statements of Income on a pre-tax basis. | |||||
Fair Value of Financial Instruments | |||||
The Company’s financial instruments consist primarily of cash and cash equivalents, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature. | |||||
Concentration of Credit Risk | |||||
Financial instruments which subject the Company to concentrations of credit risk primarily include trade receivables. The Company grants credit to its customers, which operate primarily in the oil and gas industry. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company maintains reserves for potential losses, and such losses have historically been within management’s expectations. | |||||
In addition, the Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in obligations of the U.S. Treasury and repurchase agreements backed by U.S. Treasury obligations. Changes in the financial markets and interest rates could affect the interest earned on short-term investments. | |||||
Earnings Per Share | |||||
Basic earnings per share are computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share are computed considering the dilutive effect of stock options and awards using the treasury stock method. |
New_Accounting_Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | 3. New Accounting Standards |
In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606).” The amendment applies a new five-step revenue recognition model to be used in recognizing revenues associated with customer contracts. The amendment requires disclosure sufficient to enable readers of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill the contract. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the new guidance to determine the impact on its consolidated financial statements. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 4. Inventories | ||||||||
Inventories consist of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Raw materials and supplies | $ | 107,357 | $ | 85,670 | |||||
Work in progress | 112,514 | 119,929 | |||||||
Finished goods | 207,295 | 195,971 | |||||||
427,166 | 401,570 | ||||||||
Less: allowance for obsolete and excess inventory | (34,607 | ) | (33,216 | ) | |||||
Total inventory | $ | 392,559 | $ | 368,354 | |||||
Summary of allowance for excess and slow-moving inventory: | |||||||||
In thousands | |||||||||
Balance at December 31, 2011 | $ | 26,228 | |||||||
Charges to costs and expenses | 4,651 | ||||||||
Write-offs of inventory | (453 | ) | |||||||
Balance at December 31, 2012 | 30,426 | ||||||||
Charges to costs and expenses | 3,554 | ||||||||
Write-offs of inventory | (764 | ) | |||||||
Balance at December 31, 2013 | 33,216 | ||||||||
Charges to costs and expenses | 3,951 | ||||||||
Write-offs of inventory | (2,560 | ) | |||||||
Balance at December 31, 2014 | $ | 34,607 | |||||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Property, Plant and Equipment | 5. Property, Plant and Equipment | ||||||||||||
Property, plant and equipment consists of: | |||||||||||||
Estimated | December 31, | ||||||||||||
Useful Lives | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Land and improvements | 10-25 years | $ | 26,854 | $ | 26,927 | ||||||||
Buildings | 15-40 years | 194,587 | 192,024 | ||||||||||
Machinery, equipment and other | 3-10 years | 340,279 | 313,772 | ||||||||||
561,720 | 532,723 | ||||||||||||
Less accumulated depreciation | (252,195 | ) | (227,917 | ) | |||||||||
Total property, plant and equipment | $ | 309,525 | $ | 304,806 | |||||||||
Depreciation expense totaled $31.2 million, $29.3 million and $26.2 million for 2014, 2013 and 2012, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 6. Income Taxes | ||||||||||||
The Company is required to recognize the impact of a tax position that is more likely than not to be sustained upon examination based upon the technical merits of the position, including resolution of any appeals. Based on the Company’s evaluation, the Company has concluded that 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 major tax jurisdictions as of December 31, 2014, which are the years ended December 31, 2007 through December 31, 2013. The Company has occasionally been assessed interest or penalties by major tax jurisdictions; these assessments historically have not materially impacted the Company’s financial results. Interest expense assessed by tax jurisdictions is included with interest expense and assessed penalties are included in selling, general and administrative expenses. | |||||||||||||
The Company evaluates uncertain tax positions for recognition and measurement in the consolidated financial statements. To recognize a tax position, the Company determines whether it is more likely than not that the tax positions will be sustained upon examination, including resolution of any related appeals or litigation, based on the technical merits of the position. A tax position that meets the more likely than not threshold is measured to determine the amount of benefit to be recognized in the consolidated financial statements. The amount of tax benefit recognized with respect to any tax position is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. The Company had no uncertain tax positions that required recognition in the consolidated financial statements at December 31, 2014 and 2013. If it is more likely than not that the related tax benefits will not be realized, a valuation allowance would be established to reduce deferred tax assets. As of December 31, 2014 and 2013, the Company determined that a valuation allowance was not necessary. | |||||||||||||
Income before income taxes consisted of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Domestic | $ | 124,571 | $ | 98,883 | $ | 65,271 | |||||||
Foreign | 154,809 | 125,214 | 96,851 | ||||||||||
Total | $ | 279,380 | $ | 224,097 | $ | 162,122 | |||||||
The income tax provision (benefit) consists of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 43,652 | $ | 30,962 | $ | 20,033 | |||||||
Foreign | 30,022 | 24,543 | 22,542 | ||||||||||
Total current | 73,674 | 55,505 | 42,575 | ||||||||||
Deferred: | |||||||||||||
Federal | (5,916 | ) | (1,299 | ) | 440 | ||||||||
Foreign | 2,910 | 64 | (102 | ) | |||||||||
Total deferred | (3,006 | ) | (1,235 | ) | 338 | ||||||||
Total | $ | 70,668 | $ | 54,270 | $ | 42,913 | |||||||
The difference between the effective income tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal income tax statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Foreign income tax rate differential | (6.0 | ) | (6.0 | ) | (5.5 | ) | |||||||
Foreign development tax incentive | (1.6 | ) | (2.6 | ) | (1.6 | ) | |||||||
Manufacturing benefit | (1.7 | ) | (1.4 | ) | (1.2 | ) | |||||||
Other | (0.4 | ) | (0.8 | ) | (0.3 | ) | |||||||
Effective income tax rate | 25.3 | % | 24.2 | % | 26.4 | % | |||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Based upon existing market conditions and the Company’s earnings prospects, it is anticipated that all deferred tax assets will be realized in future years. Significant components of the Company’s net deferred tax assets (liabilities) are as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Net current deferred tax assets: | |||||||||||||
Inventory | $ | 10,835 | $ | 9,086 | |||||||||
Inventory reserve | 8,535 | 7,807 | |||||||||||
Allowance for doubtful accounts | 1,022 | 396 | |||||||||||
Reserve for accrued liabilities | 510 | 370 | |||||||||||
Other | 2,667 | 2,832 | |||||||||||
Net current deferred tax assets | 23,569 | 20,491 | |||||||||||
Net non-current deferred tax liability: | |||||||||||||
Property, plant and equipment | (11,295 | ) | (9,804 | ) | |||||||||
Stock options | 5,735 | 4,323 | |||||||||||
Other | 143 | 137 | |||||||||||
Net non-current deferred tax liabilities | (5,417 | ) | (5,344 | ) | |||||||||
Net deferred tax asset | $ | 18,152 | $ | 15,147 | |||||||||
Undistributed earnings of the Company’s foreign subsidiaries are considered to be indefinitely reinvested and, accordingly, no provision for U.S. federal income taxes has been provided thereon. The estimate of undistributed earnings of the Company’s foreign subsidiaries amounted to $671 million as of December 31, 2014. Upon distribution of those earnings in the form of dividends or otherwise, the Company may be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable. | |||||||||||||
On January 2, 2013, the “American Taxpayer Relief Act of 2012” extended the Research and Development tax credit retroactive to January 1, 2012 and was extended through December 31, 2013. The Research and Development credit for 2012 of $1.2 million was recognized on the Company’s 2012 U.S. federal income tax return but was recorded for financial statement purposes in the first quarter of 2013 in accordance with ASC 740. | |||||||||||||
The Company paid $69.9 million, $41.0 million and $37.9 million in income taxes in 2014, 2013 and 2012, respectively. |
Other_Accrued_Liabilities
Other Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Other Accrued Liabilities | 7. Other Accrued Liabilities | ||||||||
Other accrued liabilities consist of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Payroll taxes | $ | 3,354 | $ | 3,559 | |||||
Property, sales and other taxes | 12,702 | 6,398 | |||||||
Commissions payable | 3,917 | 2,160 | |||||||
Accrued vendor costs | 10,162 | 7,384 | |||||||
Other | 5,063 | 4,279 | |||||||
Total | $ | 35,198 | $ | 23,780 | |||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 8. Employee Benefit Plans |
The Company has a defined-contribution 401(k) plan covering domestic employees and a defined-contribution pension plan covering certain foreign employees. The Company generally makes contributions to the plans equal to each participant’s eligible contributions for the plan year up to a specified percentage of the participant’s annual compensation. The Company’s contribution expense was $5.9 million, $4.9 million and $4.4 million in 2014, 2013 and 2012, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies |
The Company leases certain offices, shop and warehouse facilities, automobiles and equipment. Total lease expense incurred was $4.2 million, $3.5 million and $2.9 million in 2014, 2013 and 2012, respectively. Future annual minimum lease commitments at December 31, 2014 are as follows: 2015—$2.5 million; 2016—$1.4 million, 2017—$0.7 million; 2018—$0.5 million; 2019—$0.4 million and thereafter—$4.6 million. | |
Brazilian Tax Issue | |
From 2002 to 2007, the Company’s Brazilian subsidiary imported goods through the State of Espirito Santo in Brazil and subsequently transferred them to its facility in the State of Rio de Janeiro. During that period, the Company’s Brazilian subsidiary paid taxes to the State of Espirito Santo on its imports. Upon the final sale of these goods, the Company’s Brazilian subsidiary collected taxes from customers and remitted them to the State of Rio de Janeiro net of the taxes paid on importation of those goods to the State of Espirito Santo in accordance with the Company’s understanding of Brazilian tax laws. | |
In August 2007, the State of Rio de Janeiro served the Company’s Brazilian subsidiary with assessments to collect a state tax on the importation of goods through the State of Espirito Santo from 2002 to 2007 claiming that these taxes were due and payable to it under applicable law. The Company settled these assessments with payments to the State of Rio de Janeiro of $12.2 million in March 2010 and $3.9 million in December 2010. Approximately $7.8 million of these settlement payments were attributable to penalties, interest and amounts that had expired under the statute of limitations so that amount was recorded as an expense. The remainder of the settlement payments generated credits (recorded as a prepaid tax) that can be used to offset future state taxes on sales to customers in the State of Rio de Janeiro once certified by the tax authorities under a process that is currently ongoing. When the credits are certified, the Company will have a five-year period in which to utilize them. In December 2010 and January 2011, the Company’s Brazilian subsidiary was served with two additional assessments totaling approximately $13.0 million from the State of Rio de Janeiro to cancel the credits associated with the tax payments to the State of Espirito Santo (“Santo Credits”) on the importation of goods from July 2005 to October 2007. The Santo Credits are not related to the credits described above. The Company has objected to these assessments on the grounds that they would represent double taxation on the importation of the same goods and that the Company is entitled to the credits under applicable Brazilian law. With regard to the December 2010 assessment, the Company’s Brazilian subsidiary has filed an appeal with a State of Rio de Janeiro judicial court to annul the tax assessment following a ruling against the Company by the tax administration’s highest council. In connection with that appeal, the Company was required to deposit with the court approximately $3.1 million (at the December 31, 2014 exchange rate of 2.67 Brazilian real to 1.00 U.S. dollar) as the full amount of the assessment with penalties and interest. The Company intends to file a similar appeal in the judicial system if the tax administration’s highest council rules against the Company with regard to the January 2011 assessment. The Company believes that these credits are valid and that success in the judicial court process is probable. Based upon this analysis, the Company has not accrued any liability in conjunction with this matter. | |
Since 2007, the Company’s Brazilian subsidiary has paid taxes on the importation of goods directly to the State of Rio de Janeiro and the Company does not expect any similar issues to exist for periods subsequent to 2007. | |
General | |
The Company operates its business and markets its products and services in most of the significant oil and gas producing areas in the world and is, therefore, subject to the risks customarily attendant to international operations and dependency on the condition of the oil and gas industry. Additionally, products of the Company are used in potentially hazardous drilling, completion, and production applications that can cause personal injury, product liability, and environmental claims. Although exposure to such risk has not resulted in any significant problems in the past, there can be no assurance that ongoing and future developments will not adversely impact the Company. | |
The Company is also involved in a number of legal actions arising in the ordinary course of business. Although no assurance can be given with respect to the ultimate outcome of such legal action, in the opinion of management, the ultimate liability with respect thereto will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity |
Under a Stockholder Rights Plan adopted by the Board of Directors on November 24, 2008, each share of common stock includes one right to purchase from the Company a unit consisting of one one-hundredth of a share (a “Fractional Share”) of Series A Junior Participating Preferred Stock at a specific purchase price per Fractional Share, subject to adjustment in certain events. The rights will cause substantial dilution to any person or group that attempts to acquire the Company without the approval of the Company’s Board of Directors. |
Geographic_Areas
Geographic Areas | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Geographic Areas | 11. Geographic Areas | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Western Hemisphere | |||||||||||||
Products | $ | 430,597 | $ | 420,439 | $ | 298,853 | |||||||
Services | 74,544 | 72,328 | 68,938 | ||||||||||
Intercompany | 55,094 | 51,767 | 65,803 | ||||||||||
Total | $ | 560,235 | $ | 544,534 | $ | 433,594 | |||||||
Eastern Hemisphere | |||||||||||||
Products | $ | 205,185 | $ | 186,074 | $ | 196,328 | |||||||
Services | 59,794 | 46,653 | 37,307 | ||||||||||
Intercompany | 10,719 | 1,254 | 4,065 | ||||||||||
Total | $ | 275,698 | $ | 233,981 | $ | 237,700 | |||||||
Asia-Pacific | |||||||||||||
Products | $ | 137,423 | $ | 125,104 | $ | 115,037 | |||||||
Services | 23,414 | 21,774 | 16,568 | ||||||||||
Intercompany | 3,165 | 9,155 | 968 | ||||||||||
Total | $ | 164,002 | $ | 156,033 | $ | 132,573 | |||||||
Summary | |||||||||||||
Products | $ | 773,205 | $ | 731,617 | $ | 610,218 | |||||||
Services | 157,752 | 140,755 | 122,813 | ||||||||||
Intercompany | 68,978 | 62,176 | 70,836 | ||||||||||
Eliminations | (68,978 | ) | (62,176 | ) | (70,836 | ) | |||||||
Total | $ | 930,957 | $ | 872,372 | $ | 733,031 | |||||||
Income before income taxes | |||||||||||||
Western Hemisphere | $ | 143,206 | $ | 111,498 | $ | 76,771 | |||||||
Eastern Hemisphere | 79,146 | 49,672 | 44,904 | ||||||||||
Asia-Pacific | 54,302 | 55,136 | 33,478 | ||||||||||
Eliminations | 2,726 | 7,791 | 6,969 | ||||||||||
Total | $ | 279,380 | $ | 224,097 | $ | 162,122 | |||||||
Total Long-Lived Assets: | |||||||||||||
Western Hemisphere | $ | 221,597 | $ | 216,104 | $ | 215,340 | |||||||
Eastern Hemisphere | 45,517 | 43,430 | 36,194 | ||||||||||
Asia-Pacific | 57,923 | 59,192 | 58,484 | ||||||||||
Eliminations | (2,926 | ) | (2,927 | ) | (2,959 | ) | |||||||
Total | $ | 322,111 | $ | 315,799 | $ | 307,059 | |||||||
Total Assets: | |||||||||||||
Western Hemisphere | $ | 731,448 | $ | 805,399 | $ | 745,503 | |||||||
Eastern Hemisphere | 375,781 | 316,473 | 275,868 | ||||||||||
Asia-Pacific | 354,329 | 292,463 | 261,319 | ||||||||||
Eliminations | (12,307 | ) | (17,530 | ) | (32,982 | ) | |||||||
Total | $ | 1,449,251 | $ | 1,396,805 | $ | 1,249,708 | |||||||
The Company’s operations are organized into three geographic segments—Western Hemisphere (including North and South America; headquartered in Houston, Texas), Eastern Hemisphere (including Europe and Africa; headquartered in Aberdeen, Scotland) and Asia-Pacific (including the Pacific Rim, Southeast Asia, Australia, India and the Middle East; headquartered in Singapore). Each of these segments sells similar products and services and the Company has major manufacturing facilities in all three of its headquarter locations as well as in Macae, Brazil. | |||||||||||||
Eliminations of operating profits are related to intercompany inventory transfers that are deferred until shipment is made to third party customers. | |||||||||||||
In 2014 Chevron accounted for approximately 10% of the Company’s total revenues. In 2013 and 2012, Petrobras accounted for approximately 11% and 12% respectively, of the Company’s total revenues. No other customer accounted for more than 10% of the Company’s total revenues in 2014, 2013 or 2012. |
StockBased_Compensation_and_St
Stock-Based Compensation and Stock Awards | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock-Based Compensation and Stock Awards | 12. Stock-Based Compensation and Stock Awards | ||||||||||||||||
Stock Options | |||||||||||||||||
On May 13, 2004, the Company’s stockholders approved the 2004 Incentive Plan of Dril-Quip, Inc. (as amended in 2012, the “2004 Plan”), which reserved up to 2,696,294 shares of Common Stock to be used in connection with the 2004 Plan. Persons eligible for awards under the 2004 Plan are employees holding positions of responsibility with the Company or any of its subsidiaries and members of the Board of Directors. Options granted under the 2004 Plan have a term of ten years and become exercisable in cumulative annual increments of one-fourth of the total number of shares of Common Stock subject thereto, beginning on the first anniversary of the date of the grant. | |||||||||||||||||
The fair value of stock options granted was estimated on the grant date using the Black-Scholes option pricing model. The expected life was based on the Company’s historical trends, and volatility is based on the historical volatility over the expected life of the options. The risk-free interest rate is based on U.S. Treasury yield curve at the grant date. The Company does not pay dividends and, therefore, there is no assumed dividend yield. | |||||||||||||||||
Option activity for the year ended December 31, 2014 was as follows: | |||||||||||||||||
Number of | Weighted | Aggregate | Weighted Average | ||||||||||||||
Options | Average | intrinsic value | Remaining | ||||||||||||||
Price | (in millions) | Contractual Life | |||||||||||||||
(in years) | |||||||||||||||||
Outstanding at December 31, 2013 | 512,895 | 56.25 | |||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (48,523 | ) | 58.74 | ||||||||||||||
Forfeited | (5,125 | ) | 68.18 | ||||||||||||||
Outstanding at December 31,2014 | 459,247 | $ | 55.86 | $ | 9.6 | 5.2 | |||||||||||
Exercisable at December 31,2014 | 417,123 | $ | 54.59 | $ | 9.2 | 5 | |||||||||||
The total intrinsic value of stock options exercised in 2014, 2013 and 2012 was $2.0 million, $10.7 million and $7.6 million, respectively. The income tax benefit realized from stock options exercised was $718,000 for the year ended December 31, 2014. There were no anti-dilutive stock option shares on December 31, 2014. | |||||||||||||||||
Stock-based compensation is recognized as selling, general and administrative expense in the accompanying Consolidated Statements of Income. During the years ended December 31, 2014, 2013 and 2012, stock-based compensation expense for stock option awards totaled $2.5 million, $3.4 million and $3.8 million, respectively. No stock-based compensation expense was capitalized during 2014, 2013 or 2012. | |||||||||||||||||
Options granted to employees vest over four years and the Company recognizes compensation expense on a straight-line basis over the vesting period of the options. At December 31, 2014, there was $1.2 million of total unrecognized compensation expense related to nonvested stock options. This expense is expected to be recognized over a weighted average of 0.8 years. | |||||||||||||||||
Restricted Stock Awards | |||||||||||||||||
On October 28, 2013 and 2014 pursuant to the 2004 Plan, the Company awarded officers, directors and key employees restricted stock awards (“RSA”), which is an award of common stock subject to time vesting. In May 2012, the Board of Directors amended the 2004 Plan to include non-employee directors as eligible for restricted stock awards. RSAs issued under this plan are restricted as to transference, sale and other disposition. These RSAs vest ratably over a three year period. The RSAs may also vest in case of a change of control. Upon termination, whether voluntary or involuntary, the RSAs that have not vested will be returned to the Company resulting in stock forfeitures. The fair market value of the stock on the date of grant is amortized and charged to selling, general and administrative expense over the stipulated time period over which the RSAs vest on a straight-line basis, net of estimated forfeitures. | |||||||||||||||||
The Company’s RSA activity and related information is presented below: | |||||||||||||||||
RSA | Weighted | ||||||||||||||||
Number of | Average | ||||||||||||||||
Shares | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Per Share | |||||||||||||||||
Nonvested balance at December 31, 2013 | 148,753 | $ | 90.75 | ||||||||||||||
Granted | 86,476 | 91.02 | |||||||||||||||
Vested | (71,925 | ) | 83.92 | ||||||||||||||
Forfeited | (3,150 | ) | 99.81 | ||||||||||||||
Nonvested balance at December 31, 2014 | 160,154 | $ | 93.78 | ||||||||||||||
Restricted stock awards compensation expense for the year ended December 31, 2014 totaled $6.3 million and $3.9 million for 2013 and $1.7 million for 2012. For 2014, total income tax benefit recognized in net income for restricted stock awards was $2.2 million. As of December 31, 2014, there was $13.7 million of total unrecognized compensation cost related to nonvested RSAs, which is expected to be recognized over a weighted average period of 1.6 years. There were 15,400 anti-dilutive restricted shares on December 31, 2014. | |||||||||||||||||
Performance Unit Awards | |||||||||||||||||
On October 28, 2014 and 2013, the Company awarded 45,729 and 31,707 performance unit awards (“Performance Units”) pursuant to the 2004 Plan to officers and key employees. The Performance Units were valued based on a Monte Carlo simulation at $126.84 for 2014 grants and $138.31 for the 2013 grants, approximately 139.4% and 118.4%, respectively, of the grant share price. Under the plan, participants may earn from 0% to 200% of their target award based upon the Company’s relative total share return (“TSR”) in comparison to the 15 component companies of the Philadelphia Oil Service Index (“OSX index”). The TSR is calculated over a three year period from October 1, 2013 and 2014 to September 30, 2016 and 2017 and assumes reinvestment of dividends for companies within the index that pay dividends, which Dril-Quip does not. Assumptions used in the Monte Carlo simulation are as follows: | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Grant date | October 28, 2013 | October 28, 2014 | |||||||||||||||
Performance period | October 1, 2013 to September 30, 2016 | October 1, 2014 to September 30, 2017 | |||||||||||||||
Volatility | 34.40% | 27.80% | |||||||||||||||
Risk-free interest rate | 0.57% | 0.81% | |||||||||||||||
Grant date price | $116.83 | $91.02 | |||||||||||||||
The Company’s Performance Unit activity and related information is presented below: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Performance | Average | ||||||||||||||||
Units | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Per | |||||||||||||||||
Performance | |||||||||||||||||
Unit | |||||||||||||||||
Nonvested balance at December 31, 2013 | 78,057 | $ | 106.45 | ||||||||||||||
Granted | 45,729 | 126.84 | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Nonvested balance at December 31, 2014 | 123,786 | $ | 113.98 | ||||||||||||||
Performance Unit compensation expense for the year ended December 31, 2014 totaled $3.1 million, $1.6 million for 2013 and $0.2 million for 2012. As of December 31, 2014, there was $9.2 million (based on 100% result rate) of total unrecognized compensation expense related to nonvested Performance Units which is to be recognized over a weighted average period of 1.6 years. There were 8,144 anti-dilutive performance share units at December 31, 2014. | |||||||||||||||||
Director Stock Compensation Awards | |||||||||||||||||
In June 2014, the Board of Directors authorized a stock compensation program for the directors pursuant to the 2004 Plan. Under this program, the Directors may elect to receive all or a portion of their fees in the form of restricted directors stock awards (“DSA”) in an amount equal to 125% of the fees in lieu of cash. The awards are made quarterly on the first business day after the end of each calendar quarter and vest on January 1 on the second year after the grant date. | |||||||||||||||||
The Company DSA activity for December 31, 2014 is presented below: | |||||||||||||||||
DSA Number of | Weighted | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Per | |||||||||||||||||
Performance | |||||||||||||||||
Unit | |||||||||||||||||
Nonvested balance at December 31, 2013 | — | $ | — | ||||||||||||||
Granted | 1,204 | 89.4 | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Nonvested balance at December 31, 2014 | 1,204 | $ | 89.4 | ||||||||||||||
Director stock compensation awards expense for 2014 was $21,600. There was $85,500 of unrecognized compensation expense related to nonvested DSAs, which is expected to be recognized over a weighted average period of one year. There were 303 anti-diluted DSA shares on December 31, 2014. | |||||||||||||||||
The following table summarizes information for equity compensation plans in effect as of December 31, 2014: | |||||||||||||||||
Number of securities | Weighted-average | Number of securities | |||||||||||||||
to be issued upon | exercise price of | remaining available for | |||||||||||||||
exercise of | outstanding options | future issuance under | |||||||||||||||
outstanding options(1) | equity compensation plan | ||||||||||||||||
(excluding securities | |||||||||||||||||
reflected in column (a)) | |||||||||||||||||
Plan category | (a) | (b) | (c) | ||||||||||||||
Equity compensation plans approved by stockholders | |||||||||||||||||
Stock options | 459,247 | $ | 55.86 | 639,327 | |||||||||||||
Equity compensation plans not approved by stockholders | — | not applicable | — | ||||||||||||||
Total | 459,247 | $ | 55.86 | 639,327 | |||||||||||||
-1 | Excludes 161,358 shares of unvested restricted stock awards (including DSAs) and 123,786 of unvested performance units, which were granted pursuant to the 2004 Plan approved by the stockholders. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | 13. Earnings Per Share | ||||||||||||
The following is a reconciliation of the basic and diluted earnings per share computation. | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands, except per share amounts) | |||||||||||||
Net income | $ | 208,712 | $ | 169,827 | $ | 119,209 | |||||||
Weighted average basic common shares outstanding | 39,964 | 40,648 | 40,332 | ||||||||||
Effect of dilutive securities—stock options and awards | 226 | 217 | 191 | ||||||||||
Total shares and dilutive securities | 40,190 | 40,865 | 40,523 | ||||||||||
Basic earnings per common share | $ | 5.22 | $ | 4.18 | $ | 2.96 | |||||||
Diluted earnings per common share | $ | 5.19 | $ | 4.16 | $ | 2.94 | |||||||
Stock_Repurchase_Plan
Stock Repurchase Plan | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Stock Repurchase Plan | 14. Stock Repurchase Plan |
In June 2012, the Company announced that its Board of Directors authorized a stock repurchase plan under which the Company was authorized to repurchase up to $100 million of its common stock. In the fourth quarter of 2013, the Company repurchased and cancelled 85,840 shares at a total cost of $10.0 million. In the first half of 2014, the Company repurchased and cancelled 869,699 shares for $90.0 million. As of May 27, 2014, the Company had repurchased the maximum amount authorized under the stock repurchase plan. | |
On June 12, 2014 the Company announced that its Board of Directors authorized an additional stock repurchase plan in which the Company was authorized to repurchase up to $100 million of its common stock. As of December 24, 2014, a total of 1,151,603 shares at a price of $100 million, the maximum authorized under the stock repurchase plan, had been repurchased and subsequently cancelled. |
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited): | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Results of Operations (Unaudited): | 15. Quarterly Results of Operations (Unaudited): | ||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31 | June 30 | Sept. 30 | Dec. 31 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
2014 | |||||||||||||||||
Revenues | $ | 204,073 | $ | 230,315 | $ | 241,750 | $ | 254,819 | |||||||||
Cost of sales | 110,787 | 124,993 | 135,250 | 142,497 | |||||||||||||
Gross profit | 93,286 | 105,322 | 106,500 | 112,322 | |||||||||||||
Operating income | 58,567 | 68,954 | 72,992 | 78,235 | |||||||||||||
Net income | 42,618 | 51,324 | 55,683 | 59,087 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic(1) | $ | 1.05 | $ | 1.27 | $ | 1.41 | $ | 1.51 | |||||||||
Diluted(1) | 1.04 | 1.27 | 1.4 | 1.5 | |||||||||||||
2013 | |||||||||||||||||
Revenues | $ | 193,155 | $ | 222,031 | $ | 224,724 | $ | 232,462 | |||||||||
Cost of sales | 116,328 | 133,203 | 132,131 | 132,244 | |||||||||||||
Gross profit | 76,827 | 88,828 | 92,593 | 100,218 | |||||||||||||
Operating income | 52,177 | 56,215 | 51,985 | 63,168 | |||||||||||||
Net income | 39,842 | 42,927 | 39,995 | 47,063 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic(1) | $ | 0.98 | $ | 1.06 | $ | 0.98 | $ | 1.16 | |||||||||
Diluted(1) | 0.98 | 1.05 | 0.98 | 1.15 | |||||||||||||
-1 | The sum of the quarterly per share amounts may not equal the annual amount reported, as per share amounts are computed independently for each quarter and for the full year. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Principles of Consolidation | Principles of Consolidation | ||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. | |||||
Revision | Revision | ||||
The Company has corrected its 2013 consolidated balance sheet to reflect a $4.5 million reclassification adjustment of deferred income tax, which reduced current deferred tax assets and long-term deferred tax liabilities. This adjustment had no impact on the Company’s consolidated statements of income, comprehensive income, cash flows or stockholders’ equity for any periods presented. In addition, the Company corrected its 2013 consolidated balance sheet to reflect a $6.7 million reclassification from accounts payable and accrued expenses to prepaids and other current assets for vendor prepayments that were originally recorded as a reduction of accounts payable. This adjustment had no impact on the Company’s consolidated statements of income, comprehensive income, or stockholders’ equity for any periods presented. After similar reclassification adjustments were made to its 2012 and 2011 consolidated balance sheets (not presented herein), the Company’s 2013 and 2012 statements of cash flows were revised to reflect the reclassification of $11.6 million and $9.4 million, respectively, from changes in prepaids and other assets to changes in accounts payable and accrued expenses. There was no impact on the net cash from operating activities or any other reported cash flow amounts as a result of the reclassifications. The Company has evaluated the impact of these revisions and determined that they were not material. | |||||
Use of Estimates | Use of Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition, inventories and contingent liabilities. | |||||
Cash and Cash Equivalents | Cash and cash equivalents | ||||
Short-term investments that have a maturity of three months or less from the date of purchase are classified as cash equivalents. The Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in U.S. Treasury obligations and repurchase agreements backed by U.S. Treasury obligations. The Company’s investment objectives continue to be the preservation of capital and the maintenance of liquidity. | |||||
Trade Receivables | Trade Receivables | ||||
The Company maintains an allowance for doubtful accounts on trade receivables equal to amounts estimated to be uncollectible. This estimate is based upon historical collection experience combined with a specific review of each customer’s outstanding trade receivable balance. Management believes that the allowance for doubtful accounts is adequate; however, actual write-offs may exceed the recorded allowance. The following is a summary of activity relating to the allowance for doubtful accounts for the years ended December 31, 2012, 2013 and 2014: | |||||
In thousands | |||||
Balance at December 31, 2011 | $ | 1,160 | |||
Charges to costs and expenses | 1,469 | ||||
Recoveries/write-offs | (516 | ) | |||
Balance at December 31, 2012 | 2,113 | ||||
Charges to costs and expenses | 910 | ||||
Recoveries/write-offs | (659 | ) | |||
Balance at December 31, 2013 | 2,364 | ||||
Charges to costs and expenses | 4,832 | ||||
Recoveries/write-offs | (955 | ) | |||
Balance at December 31, 2014 | $ | 6,241 | |||
Inventories | Inventories | ||||
Inventory costs are determined principally by the use of the first-in, first-out (FIFO) costing method and are stated at the lower of cost or market. Company manufactured inventory is valued principally using standard costs, which are calculated based upon direct costs incurred and overhead allocations and approximate actual costs. Inventory purchased from third party vendors is principally valued at the weighted average cost. Periodically, obsolescence reviews are performed on slow-moving inventories and reserves are established based on current assessments about future demands and market conditions. The inventory values have been reduced by a reserve for excess and slow-moving inventories. Inventory reserves of $34.6 million and $33.2 million were recorded as of December 31, 2014 and 2013, respectively. If market conditions are less favorable than those projected by management, additional inventory reserves may be required. | |||||
Property, Plant and Equipment | Property, Plant and Equipment | ||||
Property, plant and equipment are carried at cost, with depreciation provided on a straight-line basis over their estimated useful lives. | |||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | ||||
Long-lived assets, including property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to be generated by the asset, an impairment charge is recognized by reflecting the asset at its fair value. No impairments of long-lived assets were recorded in 2014, 2013 or 2012. | |||||
Income Taxes | Income Taxes | ||||
The Company accounts for income taxes using the asset and liability method. Current income taxes are provided on income reported for financial statement purposes, adjusted for transactions that do not enter into the computation of income taxes payable in the same year. Deferred tax assets and liabilities are measured using enacted tax rates for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||
Revenue Recognition | Revenue Recognition | ||||
Product Revenue | |||||
The Company recognizes product revenues from two methods: | |||||
• | product revenues recognized under the percentage-of-completion method; and | ||||
• | product revenues from the sale of products that do not qualify for the percentage-of-completion method. | ||||
Revenues Recognized Under Percentage-of-Completion Method | Revenues recognized under the percentage-of-completion method | ||||
The Company uses the percentage-of-completion method on long-term project contracts that have the following characteristics: | |||||
• | The contracts call for products which are designed to customer specifications; | ||||
• | The structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration; | ||||
• | The contracts contain specific terms as to milestones, progress billings and delivery dates; and | ||||
• | Product requirements cannot be filled directly from the Company’s standard inventory. | ||||
For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percent complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. | |||||
Under the percentage-of-completion method, billings do not always correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported in trade receivables. Unbilled revenues are expected to be billed and collected within one year. At December 31, 2014 and 2013, receivables included $68.0 million and $52.9 million of unbilled receivables, respectively. For the year ended December 31, 2014, there were 17 projects representing approximately 11% of the Company’s total revenues and approximately 13% of its product revenues that were accounted for using percentage-of-completion accounting, and 21 projects during 2013 which represented 15% of the Company’s total revenue and 18% of its product revenues. | |||||
Revenues Not Recognized Under Percentage-of-Completion Method | Revenues not recognized under the percentage-of-completion method | ||||
Revenues from the sale of inventory products, not accounted for under the percentage-of-completion method, are recorded at the time the manufacturing processes are complete and ownership is transferred to the customer. | |||||
Service Revenue | Service revenue | ||||
The Company earns service revenues from three sources: | |||||
• | technical advisory assistance; | ||||
• | rental of running tools; and | ||||
• | rework and reconditioning of customer owned Dril-Quip products. | ||||
The Company does not install products for its customers, but it does provide technical advisory assistance. At the time of delivery of the product, the customer is not obligated to buy or rent the Company’s running tools and the Company is not obligated to perform any subsequent services relating to installation. Technical advisory assistance service revenue is recorded at the time the service is rendered. Service revenues associated with the rental of running and installation tools are recorded as earned. Rework and reconditioning service revenues are recorded when the refurbishment process is complete. | |||||
The Company normally negotiates contracts for products, including those accounted for under the percentage-of-completion method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may use a third party or their own personnel. | |||||
Foreign Currency | Foreign Currency | ||||
The financial statements of foreign subsidiaries are translated into U.S. dollars at period-end exchange rates except for revenues and expenses, which are translated at average monthly rates. Translation adjustments are reflected as a separate component of stockholders’ equity and have no effect on current earnings or cash flows. | |||||
Foreign currency exchange transactions are recorded using the exchange rate at the date of the settlement. Exchange losses were approximately $3.4 million in 2014, $4.6 million in 2013, and $3.8 million in 2012, net of income taxes. These amounts are included in selling, general and administrative costs in the Consolidated Statements of Income on a pre-tax basis. | |||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||
The Company’s financial instruments consist primarily of cash and cash equivalents, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature. | |||||
Concentration of Credit Risk | Concentration of Credit Risk | ||||
Financial instruments which subject the Company to concentrations of credit risk primarily include trade receivables. The Company grants credit to its customers, which operate primarily in the oil and gas industry. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company maintains reserves for potential losses, and such losses have historically been within management’s expectations. | |||||
In addition, the Company invests excess cash in interest bearing accounts, money market mutual funds and funds which invest in obligations of the U.S. Treasury and repurchase agreements backed by U.S. Treasury obligations. Changes in the financial markets and interest rates could affect the interest earned on short-term investments. | |||||
Earnings Per Share | Earnings Per Share | ||||
Basic earnings per share are computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share are computed considering the dilutive effect of stock options and awards using the treasury stock method. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Summary of Activity Relating to Allowance for Doubtful Accounts | The following is a summary of activity relating to the allowance for doubtful accounts for the years ended December 31, 2012, 2013 and 2014: | ||||
In thousands | |||||
Balance at December 31, 2011 | $ | 1,160 | |||
Charges to costs and expenses | 1,469 | ||||
Recoveries/write-offs | (516 | ) | |||
Balance at December 31, 2012 | 2,113 | ||||
Charges to costs and expenses | 910 | ||||
Recoveries/write-offs | (659 | ) | |||
Balance at December 31, 2013 | 2,364 | ||||
Charges to costs and expenses | 4,832 | ||||
Recoveries/write-offs | (955 | ) | |||
Balance at December 31, 2014 | $ | 6,241 | |||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventories | Inventories consist of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Raw materials and supplies | $ | 107,357 | $ | 85,670 | |||||
Work in progress | 112,514 | 119,929 | |||||||
Finished goods | 207,295 | 195,971 | |||||||
427,166 | 401,570 | ||||||||
Less: allowance for obsolete and excess inventory | (34,607 | ) | (33,216 | ) | |||||
Total inventory | $ | 392,559 | $ | 368,354 | |||||
Summary of Allowance for Excess and Slow-Moving Inventory | Summary of allowance for excess and slow-moving inventory: | ||||||||
In thousands | |||||||||
Balance at December 31, 2011 | $ | 26,228 | |||||||
Charges to costs and expenses | 4,651 | ||||||||
Write-offs of inventory | (453 | ) | |||||||
Balance at December 31, 2012 | 30,426 | ||||||||
Charges to costs and expenses | 3,554 | ||||||||
Write-offs of inventory | (764 | ) | |||||||
Balance at December 31, 2013 | 33,216 | ||||||||
Charges to costs and expenses | 3,951 | ||||||||
Write-offs of inventory | (2,560 | ) | |||||||
Balance at December 31, 2014 | $ | 34,607 | |||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of: | ||||||||||||
Estimated | December 31, | ||||||||||||
Useful Lives | 2014 | 2013 | |||||||||||
(In thousands) | |||||||||||||
Land and improvements | 10-25 years | $ | 26,854 | $ | 26,927 | ||||||||
Buildings | 15-40 years | 194,587 | 192,024 | ||||||||||
Machinery, equipment and other | 3-10 years | 340,279 | 313,772 | ||||||||||
561,720 | 532,723 | ||||||||||||
Less accumulated depreciation | (252,195 | ) | (227,917 | ) | |||||||||
Total property, plant and equipment | $ | 309,525 | $ | 304,806 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Income Before Income Taxes | Income before income taxes consisted of the following: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Domestic | $ | 124,571 | $ | 98,883 | $ | 65,271 | |||||||
Foreign | 154,809 | 125,214 | 96,851 | ||||||||||
Total | $ | 279,380 | $ | 224,097 | $ | 162,122 | |||||||
Schedule of Income Tax Provision (Benefit) | The income tax provision (benefit) consists of the following: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 43,652 | $ | 30,962 | $ | 20,033 | |||||||
Foreign | 30,022 | 24,543 | 22,542 | ||||||||||
Total current | 73,674 | 55,505 | 42,575 | ||||||||||
Deferred: | |||||||||||||
Federal | (5,916 | ) | (1,299 | ) | 440 | ||||||||
Foreign | 2,910 | 64 | (102 | ) | |||||||||
Total deferred | (3,006 | ) | (1,235 | ) | 338 | ||||||||
Total | $ | 70,668 | $ | 54,270 | $ | 42,913 | |||||||
Schedule of Effective Income Tax Rate Reflected in Provision for Income Taxes and U.S. Federal Statutory Rate | The difference between the effective income tax rate reflected in the provision for income taxes and the U.S. federal statutory rate was as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Federal income tax statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Foreign income tax rate differential | (6.0 | ) | (6.0 | ) | (5.5 | ) | |||||||
Foreign development tax incentive | (1.6 | ) | (2.6 | ) | (1.6 | ) | |||||||
Manufacturing benefit | (1.7 | ) | (1.4 | ) | (1.2 | ) | |||||||
Other | (0.4 | ) | (0.8 | ) | (0.3 | ) | |||||||
Effective income tax rate | 25.3 | % | 24.2 | % | 26.4 | % | |||||||
Components of Net Deferred Tax Assets (Liabilities) | Significant components of the Company’s net deferred tax assets (liabilities) are as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Net current deferred tax assets: | |||||||||||||
Inventory | $ | 10,835 | $ | 9,086 | |||||||||
Inventory reserve | 8,535 | 7,807 | |||||||||||
Allowance for doubtful accounts | 1,022 | 396 | |||||||||||
Reserve for accrued liabilities | 510 | 370 | |||||||||||
Other | 2,667 | 2,832 | |||||||||||
Net current deferred tax assets | 23,569 | 20,491 | |||||||||||
Net non-current deferred tax liability: | |||||||||||||
Property, plant and equipment | (11,295 | ) | (9,804 | ) | |||||||||
Stock options | 5,735 | 4,323 | |||||||||||
Other | 143 | 137 | |||||||||||
Net non-current deferred tax liabilities | (5,417 | ) | (5,344 | ) | |||||||||
Net deferred tax asset | $ | 18,152 | $ | 15,147 | |||||||||
Other_Accrued_Liabilities_Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Schedule of Other Accrued Liabilities | Other accrued liabilities consist of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Payroll taxes | $ | 3,354 | $ | 3,559 | |||||
Property, sales and other taxes | 12,702 | 6,398 | |||||||
Commissions payable | 3,917 | 2,160 | |||||||
Accrued vendor costs | 10,162 | 7,384 | |||||||
Other | 5,063 | 4,279 | |||||||
Total | $ | 35,198 | $ | 23,780 | |||||
Geographic_Areas_Tables
Geographic Areas (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Schedule of Segment Reporting | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Western Hemisphere | |||||||||||||
Products | $ | 430,597 | $ | 420,439 | $ | 298,853 | |||||||
Services | 74,544 | 72,328 | 68,938 | ||||||||||
Intercompany | 55,094 | 51,767 | 65,803 | ||||||||||
Total | $ | 560,235 | $ | 544,534 | $ | 433,594 | |||||||
Eastern Hemisphere | |||||||||||||
Products | $ | 205,185 | $ | 186,074 | $ | 196,328 | |||||||
Services | 59,794 | 46,653 | 37,307 | ||||||||||
Intercompany | 10,719 | 1,254 | 4,065 | ||||||||||
Total | $ | 275,698 | $ | 233,981 | $ | 237,700 | |||||||
Asia-Pacific | |||||||||||||
Products | $ | 137,423 | $ | 125,104 | $ | 115,037 | |||||||
Services | 23,414 | 21,774 | 16,568 | ||||||||||
Intercompany | 3,165 | 9,155 | 968 | ||||||||||
Total | $ | 164,002 | $ | 156,033 | $ | 132,573 | |||||||
Summary | |||||||||||||
Products | $ | 773,205 | $ | 731,617 | $ | 610,218 | |||||||
Services | 157,752 | 140,755 | 122,813 | ||||||||||
Intercompany | 68,978 | 62,176 | 70,836 | ||||||||||
Eliminations | (68,978 | ) | (62,176 | ) | (70,836 | ) | |||||||
Total | $ | 930,957 | $ | 872,372 | $ | 733,031 | |||||||
Income before income taxes | |||||||||||||
Western Hemisphere | $ | 143,206 | $ | 111,498 | $ | 76,771 | |||||||
Eastern Hemisphere | 79,146 | 49,672 | 44,904 | ||||||||||
Asia-Pacific | 54,302 | 55,136 | 33,478 | ||||||||||
Eliminations | 2,726 | 7,791 | 6,969 | ||||||||||
Total | $ | 279,380 | $ | 224,097 | $ | 162,122 | |||||||
Total Long-Lived Assets: | |||||||||||||
Western Hemisphere | $ | 221,597 | $ | 216,104 | $ | 215,340 | |||||||
Eastern Hemisphere | 45,517 | 43,430 | 36,194 | ||||||||||
Asia-Pacific | 57,923 | 59,192 | 58,484 | ||||||||||
Eliminations | (2,926 | ) | (2,927 | ) | (2,959 | ) | |||||||
Total | $ | 322,111 | $ | 315,799 | $ | 307,059 | |||||||
Total Assets: | |||||||||||||
Western Hemisphere | $ | 731,448 | $ | 805,399 | $ | 745,503 | |||||||
Eastern Hemisphere | 375,781 | 316,473 | 275,868 | ||||||||||
Asia-Pacific | 354,329 | 292,463 | 261,319 | ||||||||||
Eliminations | (12,307 | ) | (17,530 | ) | (32,982 | ) | |||||||
Total | $ | 1,449,251 | $ | 1,396,805 | $ | 1,249,708 | |||||||
StockBased_Compensation_and_St1
Stock-Based Compensation and Stock Awards (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of Option Activity | Option activity for the year ended December 31, 2014 was as follows: | ||||||||||||||||
Number of | Weighted | Aggregate | Weighted Average | ||||||||||||||
Options | Average | intrinsic value | Remaining | ||||||||||||||
Price | (in millions) | Contractual Life | |||||||||||||||
(in years) | |||||||||||||||||
Outstanding at December 31, 2013 | 512,895 | 56.25 | |||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (48,523 | ) | 58.74 | ||||||||||||||
Forfeited | (5,125 | ) | 68.18 | ||||||||||||||
Outstanding at December 31,2014 | 459,247 | $ | 55.86 | $ | 9.6 | 5.2 | |||||||||||
Exercisable at December 31,2014 | 417,123 | $ | 54.59 | $ | 9.2 | 5 | |||||||||||
Summary of RSA Activity | The Company’s RSA activity and related information is presented below: | ||||||||||||||||
RSA | Weighted | ||||||||||||||||
Number of | Average | ||||||||||||||||
Shares | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Per Share | |||||||||||||||||
Nonvested balance at December 31, 2013 | 148,753 | $ | 90.75 | ||||||||||||||
Granted | 86,476 | 91.02 | |||||||||||||||
Vested | (71,925 | ) | 83.92 | ||||||||||||||
Forfeited | (3,150 | ) | 99.81 | ||||||||||||||
Nonvested balance at December 31, 2014 | 160,154 | $ | 93.78 | ||||||||||||||
Summary of PSA Activity | The Company’s Performance Unit activity and related information is presented below: | ||||||||||||||||
Number of | Weighted | ||||||||||||||||
Performance | Average | ||||||||||||||||
Units | Grant Date | ||||||||||||||||
Fair Value | |||||||||||||||||
Per | |||||||||||||||||
Performance | |||||||||||||||||
Unit | |||||||||||||||||
Nonvested balance at December 31, 2013 | 78,057 | $ | 106.45 | ||||||||||||||
Granted | 45,729 | 126.84 | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Nonvested balance at December 31, 2014 | 123,786 | $ | 113.98 | ||||||||||||||
Schedule of DSA Activity | The Company DSA activity for December 31, 2014 is presented below: | ||||||||||||||||
DSA Number of | Weighted | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Per | |||||||||||||||||
Performance | |||||||||||||||||
Unit | |||||||||||||||||
Nonvested balance at December 31, 2013 | — | $ | — | ||||||||||||||
Granted | 1,204 | 89.4 | |||||||||||||||
Vested | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Nonvested balance at December 31, 2014 | 1,204 | $ | 89.4 | ||||||||||||||
Schedule of Information for Stock Option Plans | The following table summarizes information for equity compensation plans in effect as of December 31, 2014: | ||||||||||||||||
Number of securities | Weighted-average | Number of securities | |||||||||||||||
to be issued upon | exercise price of | remaining available for | |||||||||||||||
exercise of | outstanding options | future issuance under | |||||||||||||||
outstanding options(1) | equity compensation plan | ||||||||||||||||
(excluding securities | |||||||||||||||||
reflected in column (a)) | |||||||||||||||||
Plan category | (a) | (b) | (c) | ||||||||||||||
Equity compensation plans approved by stockholders | |||||||||||||||||
Stock options | 459,247 | $ | 55.86 | 639,327 | |||||||||||||
Equity compensation plans not approved by stockholders | — | not applicable | — | ||||||||||||||
Total | 459,247 | $ | 55.86 | 639,327 | |||||||||||||
-1 | Excludes 161,358 shares of unvested restricted stock awards (including DSAs) and 123,786 of unvested performance units, which were granted pursuant to the 2004 Plan approved by the stockholders. | ||||||||||||||||
Monte Carlo Simulation [Member] | |||||||||||||||||
Schedule of Assumptions Used in Monte Carlo Simulation | Assumptions used in the Monte Carlo simulation are as follows: | ||||||||||||||||
2013 | 2014 | ||||||||||||||||
Grant date | October 28, 2013 | October 28, 2014 | |||||||||||||||
Performance period | October 1, 2013 to September 30, 2016 | October 1, 2014 to September 30, 2017 | |||||||||||||||
Volatility | 34.40% | 27.80% | |||||||||||||||
Risk-free interest rate | 0.57% | 0.81% | |||||||||||||||
Grant date price | $116.83 | $91.02 | |||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Reconciliation of Basic and Diluted Earnings Per Share | The following is a reconciliation of the basic and diluted earnings per share computation. | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands, except per share amounts) | |||||||||||||
Net income | $ | 208,712 | $ | 169,827 | $ | 119,209 | |||||||
Weighted average basic common shares outstanding | 39,964 | 40,648 | 40,332 | ||||||||||
Effect of dilutive securities—stock options and awards | 226 | 217 | 191 | ||||||||||
Total shares and dilutive securities | 40,190 | 40,865 | 40,523 | ||||||||||
Basic earnings per common share | $ | 5.22 | $ | 4.18 | $ | 2.96 | |||||||
Diluted earnings per common share | $ | 5.19 | $ | 4.16 | $ | 2.94 | |||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Unaudited): (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Results of Operations | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31 | June 30 | Sept. 30 | Dec. 31 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
2014 | |||||||||||||||||
Revenues | $ | 204,073 | $ | 230,315 | $ | 241,750 | $ | 254,819 | |||||||||
Cost of sales | 110,787 | 124,993 | 135,250 | 142,497 | |||||||||||||
Gross profit | 93,286 | 105,322 | 106,500 | 112,322 | |||||||||||||
Operating income | 58,567 | 68,954 | 72,992 | 78,235 | |||||||||||||
Net income | 42,618 | 51,324 | 55,683 | 59,087 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic(1) | $ | 1.05 | $ | 1.27 | $ | 1.41 | $ | 1.51 | |||||||||
Diluted(1) | 1.04 | 1.27 | 1.4 | 1.5 | |||||||||||||
2013 | |||||||||||||||||
Revenues | $ | 193,155 | $ | 222,031 | $ | 224,724 | $ | 232,462 | |||||||||
Cost of sales | 116,328 | 133,203 | 132,131 | 132,244 | |||||||||||||
Gross profit | 76,827 | 88,828 | 92,593 | 100,218 | |||||||||||||
Operating income | 52,177 | 56,215 | 51,985 | 63,168 | |||||||||||||
Net income | 39,842 | 42,927 | 39,995 | 47,063 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic(1) | $ | 0.98 | $ | 1.06 | $ | 0.98 | $ | 1.16 | |||||||||
Diluted(1) | 0.98 | 1.05 | 0.98 | 1.15 | |||||||||||||
-1 | The sum of the quarterly per share amounts may not equal the annual amount reported, as per share amounts are computed independently for each quarter and for the full year. | ||||||||||||||||
Organization_Additional_Inform
Organization - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Location | |
Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of geographic segments | 3 |
Number of headquarter locations | 3 |
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Project | Project | |||
Method | ||||
Source | ||||
Significant Accounting Policies [Line Items] | ||||
Inventory reserves | $34,607,000 | $33,216,000 | $30,426,000 | $26,228,000 |
Impairments of long-lived assets | 0 | 0 | 0 | |
Number of product revenue sources | 2 | |||
Unbilled receivables | 68,000,000 | 52,900,000 | ||
Number of projects | 17 | 21 | ||
Percentage of total revenues | 11.00% | 15.00% | ||
Percentage of product revenues | 13.00% | 18.00% | ||
Number of service revenue sources | 3 | |||
Gains/(losses) in foreign currency exchange transactions | 3,400,000 | -4,600,000 | -3,800,000 | |
Deferred Tax Assets and Liabilities [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Prior period reclassification adjustment | 4,500,000 | |||
Prepaid and Other Current Assets [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Prior period reclassification adjustment | 6,700,000 | |||
Accounts Payable and Accrued Expenses [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Prior period reclassification adjustment | $11,600,000 | $9,400,000 |
Significant_Accounting_Policie4
Significant Accounting Policies - Summary of Activity Relating to Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Beginning Balance | $2,364 | $2,113 | $1,160 |
Charges to costs and expenses | 4,832 | 910 | 1,469 |
Recoveries/write-offs | -955 | -659 | -516 |
Ending Balance | $6,241 | $2,364 | $2,113 |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Inventory Disclosure [Abstract] | ||||
Raw materials and supplies | $107,357 | $85,670 | ||
Work in progress | 112,514 | 119,929 | ||
Finished goods | 207,295 | 195,971 | ||
Inventory, gross, Total | 427,166 | 401,570 | ||
Less: allowance for obsolete and excess inventory | -34,607 | -33,216 | -30,426 | -26,228 |
Total inventory | $392,559 | $368,354 |
Inventories_Summary_of_Allowan
Inventories - Summary of Allowance for Excess and Slow-Moving Inventory (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | |||
Beginning balance | $33,216 | $30,426 | $26,228 |
Charges to costs and expenses | 3,951 | 3,554 | 4,651 |
Write-offs of inventory | -2,560 | -764 | -453 |
Ending balance | $34,607 | $33,216 | $30,426 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 561,720 | $532,723 |
Less accumulated depreciation | -252,195 | -227,917 |
Property, plant and equipment, net | 309,525 | 304,806 |
Land And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 26,854 | 26,927 |
Land And Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (years) | 10 years | |
Land And Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (years) | 25 years | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 194,587 | 192,024 |
Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (years) | 15 years | |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (years) | 40 years | |
Machinery, Equipment And Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 340,279 | $313,772 |
Machinery, Equipment And Other [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (years) | 3 years | |
Machinery, Equipment And Other [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (years) | 10 years |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property Plant and Equipment Useful Life and Values [Abstract] | |||
Depreciation expense | $31.20 | $29.30 | $26.20 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Amount of tax benefit recognized | 50.00% | ||
Uncertain tax positions | $0 | $0 | |
Undistributed earnings of the Company's foreign subsidiaries | 671 | ||
Research and Development credit | 1.2 | ||
Income taxes paid | $69.90 | $41 | $37.90 |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | $124,571 | $98,883 | $65,271 |
Foreign | 154,809 | 125,214 | 96,851 |
Income before income taxes | $279,380 | $224,097 | $162,122 |
Income_Taxes_Schedule_of_Incom1
Income Taxes - Schedule of Income Tax Provision (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Current, Federal | $43,652 | $30,962 | $20,033 |
Current, Foreign | 30,022 | 24,543 | 22,542 |
Total current | 73,674 | 55,505 | 42,575 |
Deferred, Federal | -5,916 | -1,299 | 440 |
Deferred, Foreign | 2,910 | 64 | -102 |
Total deferred | -3,006 | -1,235 | 338 |
Total | $70,668 | $54,270 | $42,913 |
Income_Taxes_Schedule_of_Effec
Income Taxes - Schedule of Effective Income Tax Rate Reflected in Provision for Income Taxes and U.S. Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax statutory rate | 35.00% | 35.00% | 35.00% |
Foreign income tax rate differential | -6.00% | -6.00% | -5.50% |
Foreign development tax incentive | -1.60% | -2.60% | -1.60% |
Manufacturing benefit | -1.70% | -1.40% | -1.20% |
Other | -0.40% | -0.80% | -0.30% |
Effective income tax rate | 25.30% | 24.20% | 26.40% |
Income_Taxes_Components_of_Net
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Net current deferred tax assets: | ||
Inventory | $10,835 | $9,086 |
Inventory reserve | 8,535 | 7,807 |
Allowance for doubtful accounts | 1,022 | 396 |
Reserve for accrued liabilities | 510 | 370 |
Other | 2,667 | 2,832 |
Net current deferred tax assets | 23,569 | 20,491 |
Net non-current deferred tax liability: | ||
Property, plant and equipment | -11,295 | -9,804 |
Stock options | 5,735 | 4,323 |
Other | 143 | 137 |
Net non-current deferred tax liabilities | -5,417 | -5,344 |
Net deferred tax asset | $18,152 | $15,147 |
Other_Accrued_Liabilities_Sche
Other Accrued Liabilities - Schedule of Other Accrued Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ||
Payroll taxes | $3,354 | $3,559 |
Property, sales and other taxes | 12,702 | 6,398 |
Commissions payable | 3,917 | 2,160 |
Accrued vendor costs | 10,162 | 7,384 |
Other | 5,063 | 4,279 |
Total | $35,198 | $23,780 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Postemployment Benefits [Abstract] | |||
Employee benefit plans, contribution expense | $5.90 | $4.90 | $4.40 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Mar. 31, 2010 |
Commitments And Contingencies [Line Items] | |||||
Lease expense incurred | $4.20 | $3.50 | $2.90 | ||
Future annual minimum lease commitments for the year 2015 | 2.5 | ||||
Future annual minimum lease commitments for the year 2016 | 1.4 | ||||
Future annual minimum lease commitments for the year 2017 | 0.7 | ||||
Future annual minimum lease commitments for the year 2018 | 0.5 | ||||
Future annual minimum lease commitments for the year 2019 | 0.4 | ||||
Future annual minimum lease commitments for the year, thereafter | 4.6 | ||||
Court deposit | 3.1 | ||||
United States of America, Dollars | |||||
Commitments And Contingencies [Line Items] | |||||
Foreign currency exchange rate, translation | 1 | ||||
Brazil, Brazil Real | |||||
Commitments And Contingencies [Line Items] | |||||
Foreign currency exchange rate, translation | 2.67 | ||||
Brazil [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Tax assessment settled with payments | 3.9 | 12.2 | |||
Amount of interest, penalties and monetary restatement fees on tax assessments | 7.8 | ||||
Tax credits once certified, period to use credits | 5 years | ||||
Value of assessments served on Brazilian subsidiary | $13 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (Series A Junior Participating Preferred Stock [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Series A Junior Participating Preferred Stock [Member] | |
Class of Stock [Line Items] | |
Rights to purchase shares | 0.01 |
Geographic_Areas_Schedule_of_S
Geographic Areas - Schedule of Segment Reporting (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Products | $773,205 | $731,617 | $610,218 | ||||||||
Services | 157,752 | 140,755 | 122,813 | ||||||||
Intercompany | 68,978 | 62,176 | 70,836 | ||||||||
Eliminations | -68,978 | -62,176 | -70,836 | ||||||||
Total revenues | 254,819 | 241,750 | 230,315 | 204,073 | 232,462 | 224,724 | 222,031 | 193,155 | 930,957 | 872,372 | 733,031 |
Income before income taxes | 279,380 | 224,097 | 162,122 | ||||||||
Total Long-Lived Assets | 322,111 | 315,799 | 322,111 | 315,799 | 307,059 | ||||||
Total Assets | 1,449,251 | 1,396,805 | 1,449,251 | 1,396,805 | 1,249,708 | ||||||
Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Long-Lived Assets Eliminations | -2,926 | -2,927 | -2,926 | -2,927 | -2,959 | ||||||
Income before income taxes | 2,726 | 7,791 | 6,969 | ||||||||
Total Assets Eliminations | -12,307 | -17,530 | -12,307 | -17,530 | -32,982 | ||||||
Western Hemisphere [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Products | 430,597 | 420,439 | 298,853 | ||||||||
Services | 74,544 | 72,328 | 68,938 | ||||||||
Intercompany | 55,094 | 51,767 | 65,803 | ||||||||
Total revenues | 560,235 | 544,534 | 433,594 | ||||||||
Income before income taxes | 143,206 | 111,498 | 76,771 | ||||||||
Total Long-Lived Assets | 221,597 | 216,104 | 221,597 | 216,104 | 215,340 | ||||||
Total Assets | 731,448 | 805,399 | 731,448 | 805,399 | 745,503 | ||||||
Eastern Hemisphere [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Products | 205,185 | 186,074 | 196,328 | ||||||||
Services | 59,794 | 46,653 | 37,307 | ||||||||
Intercompany | 10,719 | 1,254 | 4,065 | ||||||||
Total revenues | 275,698 | 233,981 | 237,700 | ||||||||
Income before income taxes | 79,146 | 49,672 | 44,904 | ||||||||
Total Long-Lived Assets | 45,517 | 43,430 | 45,517 | 43,430 | 36,194 | ||||||
Total Assets | 375,781 | 316,473 | 375,781 | 316,473 | 275,868 | ||||||
Asia-Pacific [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Products | 137,423 | 125,104 | 115,037 | ||||||||
Services | 23,414 | 21,774 | 16,568 | ||||||||
Intercompany | 3,165 | 9,155 | 968 | ||||||||
Total revenues | 164,002 | 156,033 | 132,573 | ||||||||
Income before income taxes | 54,302 | 55,136 | 33,478 | ||||||||
Total Long-Lived Assets | 57,923 | 59,192 | 57,923 | 59,192 | 58,484 | ||||||
Total Assets | $354,329 | $292,463 | $354,329 | $292,463 | $261,319 |
Geographic_Areas_Additional_In
Geographic Areas - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Sales Information [Line Items] | |||
Sales to an individual customer | No other customer accounted for more than 10% of the Company's total revenues in 2014, 2013 or 2012. | ||
Chevron [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Sales Information [Line Items] | |||
Percentage of revenue accounted by one customer | 10.00% | ||
Petrobras [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Sales Information [Line Items] | |||
Percentage of revenue accounted by one customer | 11.00% | 12.00% |
StockBased_Compensation_and_St2
Stock-Based Compensation and Stock Awards - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 28, 2014 | Oct. 28, 2013 | 13-May-04 | |
Company | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Intrinsic value of stock options exercised | $2,000,000 | $10,700,000 | $7,600,000 | |||
Stock-based compensation expense for stock option exercises | 2,500,000 | 3,400,000 | 3,800,000 | |||
Allocated Share Based Compensation Expense Capitalized | 0 | 0 | 0 | |||
Restricted stock awards compensation expense | 6,300,000 | 3,900,000 | 1,700,000 | |||
Number of components companies in the Philadelphia Oil Service Index | 15 | |||||
Performance Unit compensation expense | 3,100,000 | 1,600,000 | 200,000 | |||
Performance Unit Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Anti-dilutive awards | 8,144 | |||||
Unrecognized compensation expense related to share based compensation | 9,200,000 | |||||
Period of recognition for unrecognized compensation expense related to nonvested performance units | 1 year 7 months 6 days | |||||
Share value based on Monte Carlo simulation | $126.84 | $138.31 | ||||
Percentage of grant share price | 139.40% | 118.40% | ||||
Result rate based on which unrecognized compensation expense is considered | 100.00% | |||||
Performance Unit Awards [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Participants earning under the term | 0.00% | |||||
Performance Unit Awards [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Participants earning under the term | 200.00% | |||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Income tax benefit realized from stock options exercised | 718,000 | |||||
Anti-dilutive awards | 0 | |||||
Unrecognized compensation expense related to share based compensation | 1,200,000 | |||||
Period of recognition for unrecognized compensation expense related to nonvested performance units | 9 months 18 days | |||||
Restricted Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Anti-dilutive awards | 15,400 | |||||
Vesting period, in years | 3 years | |||||
Unrecognized compensation expense related to share based compensation | 13,700,000 | |||||
Period of recognition for unrecognized compensation expense related to nonvested performance units | 1 year 7 months 6 days | |||||
Income tax benefit recognized | 2,200,000 | |||||
DSA [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Anti-dilutive awards | 303 | |||||
Unrecognized compensation expense related to share based compensation | 85,500 | |||||
Period of recognition for unrecognized compensation expense related to nonvested performance units | 1 year | |||||
Fees in lieu of cash | 125.00% | |||||
Director stock compensation awards expense | $21,600 | |||||
2004 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
The maximum number of shares authorized | 2,696,294 | |||||
Options granted period | 10 years | |||||
2004 Plan [Member] | Performance Unit Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of authorized shares granted by options | 45,729 | 31,707 | ||||
2004 Plan [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period, in years | 4 years |
StockBased_Compensation_and_St3
Stock-Based Compensation and Stock Awards - Schedule of Option Activity (Detail) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding at December 31, 2013, Number of Options | 512,895 |
Granted, Number of Options | 0 |
Exercised, Number of Options | -48,523 |
Forfeited, Number of Options | -5,125 |
Outstanding at December 31,2014, Number of Options | 459,247 |
Exercisable at December 31,2014, Number of Options | 417,123 |
Outstanding at December 31, 2013, Weighted Average Price | $56.25 |
Granted, Weighted Average Price | $0 |
Exercised, Weighted Average Price | $58.74 |
Forfeited, Weighted Average Price | $68.18 |
Outstanding at December 31,2014, Weighted Average Price | $55.86 |
Exercisable at December 31,2014, Weighted Average Price | $54.59 |
Outstanding at December 31,2014, Aggregate intrinsic value | $9.60 |
Exercisable at December 31,2014, Aggregate intrinsic value | $9.20 |
Outstanding at December 31,2014, Weighted Average Remaining Contractual Life (in years) | 5 years 2 months 12 days |
Exercisable at December 31,2014, Weighted Average Remaining Contractual Life (in years) | 5 years |
StockBased_Compensation_and_St4
Stock-Based Compensation and Stock Awards - Summary of RSA Activity (Detail) (Restricted Stock Awards [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock Awards [Member] | |
Schedule Of Stock Options [Line Items] | |
Nonvested balance at December 31, 2013, Number of Shares | 148,753 |
Granted, Number of Shares | 86,476 |
Vested, Number of Shares | -71,925 |
Forfeited, Number of Shares | -3,150 |
Nonvested balance at December 31, 2014, Number of Shares | 160,154 |
Nonvested balance at December 31, 2013, Weighted Average Grant Date Fair Value Per Share | $90.75 |
Granted, Weighted Average Grant Date Fair Value Per Share | $91.02 |
Vested, Weighted Average Grant Date Fair Value Per Share | $83.92 |
Forfeited, Weighted Average Grant Date Fair Value Per Share | $99.81 |
Nonvested balance at December 31, 2014, Weighted Average Grant Date Fair Value Per Share | $93.78 |
StockBased_Compensation_and_St5
Stock-Based Compensation and Stock Awards - Schedule of Assumptions Used in Monte Carlo Simulation (Detail) (Performance Unit Awards [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Performance Unit Awards [Member] | ||
Share Based Compensation Shares Authorized Under Award Type [Line Items] | ||
Grant date | 28-Oct-14 | 28-Oct-13 |
Performance period | October 1, 2014 to September 30, 2017 | October 1, 2013 to September 30, 2016 |
Volatility | 27.80% | 34.40% |
Risk-free interest rate | 0.81% | 0.57% |
Grant date price | $91.02 | $116.83 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of PSA Activity (Detail) (Performance Unit Awards [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Performance Unit Awards [Member] | |
Nonvested Share Activity [Line Items] | |
Nonvested balance at December 31, 2013, Number of Shares | 78,057 |
Granted, Number of Shares | 45,729 |
Vested, Number of Shares | 0 |
Forfeited, Number of Shares | 0 |
Nonvested balance at December 31, 2014, Number of Shares | 123,786 |
Nonvested balance at December 31, 2013, Weighted Average Grant Date Fair Value Per Share | $106.45 |
Granted, Weighted Average Grant Date Fair Value Per Share | $126.84 |
Vested, Weighted Average Grant Date Fair Value Per Share | $0 |
Forfeited, Weighted Average Grant Date Fair Value Per Share | $0 |
Nonvested balance at December 31, 2014, Weighted Average Grant Date Fair Value Per Share | $113.98 |
StockBased_Compensation_and_St6
Stock-Based Compensation and Stock Awards - Schedule of DSA Activity (Detail) (DSA [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
DSA [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Nonvested balance at December 31, 2013, Number of Shares | 0 |
Granted, Number of Shares | 1,204 |
Vested, Number of Shares | 0 |
Forfeited, Number of Shares | 0 |
Nonvested balance at December 31, 2014, Number of Shares | 1,204 |
Nonvested balance at December 31, 2013, Weighted Average Grant Date Fair Value Per Share | $0 |
Granted, Weighted Average Grant Date Fair Value Per Share | $89.40 |
Vested, Weighted Average Grant Date Fair Value Per Share | $0 |
Forfeited, Weighted Average Grant Date Fair Value Per Share | $0 |
Nonvested balance at December 31, 2014, Weighted Average Grant Date Fair Value Per Share | $89.40 |
StockBased_Compensation_and_St7
Stock-Based Compensation and Stock Awards - Schedule of Information for Stock Option Plans (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of securities to be issued upon exercise of outstanding options | 459,247 |
Weighted-average exercise price of outstanding options | $55.86 |
Number of securities remaining available for future issuance under equity compensation plan | 639,327 |
Equity Compensation Plans Approved By Stockholders [Member] | Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of securities to be issued upon exercise of outstanding options | 459,247 |
Weighted-average exercise price of outstanding options | $55.86 |
Number of securities remaining available for future issuance under equity compensation plan | 639,327 |
Equity Compensation Plans Not Approved By Stockholders [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of securities to be issued upon exercise of outstanding options | 0 |
Weighted-average exercise price of outstanding options | Not applicable |
Number of securities remaining available for future issuance under equity compensation plan | 0 |
StockBased_Compensation_and_St8
Stock-Based Compensation and Stock Awards - Schedule of Information for Stock Option Plans (Parenthetical) (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units | 160,154 | 148,753 |
Restricted Stock Awards [Member] | 2004 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units | 161,358 | |
Performance Unit Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units | 123,786 | 78,057 |
Performance Unit Awards [Member] | 2004 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock and units | 123,786 |
Earnings_Per_Share_Reconciliat
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income | $59,087 | $55,683 | $51,324 | $42,618 | $47,063 | $39,995 | $42,927 | $39,842 | $208,712 | $169,827 | $119,209 |
Weighted average basic common shares outstanding | 39,964 | 40,648 | 40,332 | ||||||||
Effect of dilutive securities-stock options and awards | 226 | 217 | 191 | ||||||||
Total shares and dilutive securities | 40,190 | 40,865 | 40,523 | ||||||||
Basic earnings per common share | $1.51 | $1.41 | $1.27 | $1.05 | $1.16 | $0.98 | $1.06 | $0.98 | $5.22 | $4.18 | $2.96 |
Diluted earnings per common share | $1.50 | $1.40 | $1.27 | $1.04 | $1.15 | $0.98 | $1.05 | $0.98 | $5.19 | $4.16 | $2.94 |
Stock_Repurchase_Plan_Addition
Stock Repurchase Plan - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 24, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 12, 2014 | 27-May-14 |
Equity [Abstract] | |||||
Stock repurchase plan | $100 | $100 | |||
Shares repurchased and cancelled | 1,151,603 | 85,840 | 869,699 | ||
Total cost of shares repurchased and cancelled | $100 | $10 | $90 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Unaudited) - Schedule of Quarterly Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $254,819 | $241,750 | $230,315 | $204,073 | $232,462 | $224,724 | $222,031 | $193,155 | $930,957 | $872,372 | $733,031 |
Cost of sales | 142,497 | 135,250 | 124,993 | 110,787 | 132,244 | 132,131 | 133,203 | 116,328 | 513,527 | 513,906 | 451,666 |
Gross profit | 112,322 | 106,500 | 105,322 | 93,286 | 100,218 | 92,593 | 88,828 | 76,827 | |||
Operating income | 78,235 | 72,992 | 68,954 | 58,567 | 63,168 | 51,985 | 56,215 | 52,177 | 278,748 | 223,545 | 161,692 |
Net income | $59,087 | $55,683 | $51,324 | $42,618 | $47,063 | $39,995 | $42,927 | $39,842 | $208,712 | $169,827 | $119,209 |
Basic | $1.51 | $1.41 | $1.27 | $1.05 | $1.16 | $0.98 | $1.06 | $0.98 | $5.22 | $4.18 | $2.96 |
Diluted | $1.50 | $1.40 | $1.27 | $1.04 | $1.15 | $0.98 | $1.05 | $0.98 | $5.19 | $4.16 | $2.94 |