Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 23, 2020 | Jun. 28, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35504 | ||
Entity Registrant Name | FORUM ENERGY TECHNOLOGIES, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 61-1488595 | ||
Entity Address, Address Line One | 10344 Sam Houston Park Drive | ||
Entity Address, Address Line Two | Suite 300 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77064 | ||
City Area Code | 713 | ||
Local Phone Number | 351-7900 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 280.5 | ||
Entity Common Stock, Shares Outstanding | 110,513,007 | ||
Entity Central Index Key | 0001401257 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
NEW YORK STOCK EXCHANGE, INC. | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common stock, $0.01 par value | ||
Trading Symbol | FET | ||
Security Exchange Name | NYSE |
Consolidated statements of comp
Consolidated statements of comprehensive loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenues | $ 956,533 | $ 1,064,219 | $ 818,620 |
Cost of sales | 711,681 | 807,847 | 629,832 |
Gross profit | 244,852 | 256,372 | 188,788 |
Operating expenses | |||
Selling, general and administrative expenses | 251,736 | 286,980 | 253,713 |
Impairments of goodwill, intangible assets, property and equipment | 532,336 | 363,522 | 69,062 |
Transaction expenses | 1,159 | 3,446 | 6,511 |
Contingent consideration benefit | (4,629) | 0 | 0 |
Loss (gain) on disposal of assets and other | 78 | (438) | 2,097 |
Total operating expenses | 780,680 | 653,510 | 331,383 |
Earnings (loss) from equity investments | (318) | 140 | 1,000 |
Operating loss | (536,146) | (396,998) | (141,595) |
Other expense (income) | |||
Interest expense | 31,618 | 32,532 | 26,808 |
Foreign exchange losses (gains) and other, net | 5,022 | (6,270) | 7,268 |
Gain on contribution of subsea rentals business | 0 | 33,506 | 0 |
Gain realized on previously held equity investment | (1,567) | 0 | (120,392) |
Gain on disposition of business | (2,348) | 0 | 0 |
Total other expense (income), net | 32,725 | (7,244) | (86,316) |
Loss before income taxes | (568,871) | (389,754) | (55,279) |
Income tax expense (benefit) | (1,814) | (15,674) | 4,121 |
Net loss | $ (567,057) | $ (374,080) | $ (59,400) |
Weighted average shares outstanding | |||
Basic (in shares) | 110,100 | 108,771 | 98,689 |
Diluted (in shares) | 110,100 | 108,771 | 98,689 |
Loss per share | |||
Basic (in dollars per share) | $ (5.15) | $ (3.44) | $ (0.60) |
Diluted (in dollars per share) | $ (5.15) | $ (3.44) | $ (0.60) |
Other comprehensive income (loss), net of tax: | |||
Net loss | $ (567,057) | $ (374,080) | $ (59,400) |
Change in foreign currency translation, net of tax of $0 | 7,958 | (24,752) | 36,163 |
Gain (loss) on pension liability | (1,666) | 1,489 | 107 |
Comprehensive loss | (560,765) | (397,343) | (23,130) |
Less: comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive loss attributable to common stockholders | $ (560,765) | $ (397,343) | $ (23,130) |
Consolidated statements of co_2
Consolidated statements of comprehensive loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Change in foreign currency translation, tax | $ 0 | $ 0 | $ 0 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 57,911 | $ 47,241 |
Accounts receivable—trade, net of allowances of $9,048 and $7,432 | 154,182 | 206,055 |
Inventories, net | 414,640 | 479,023 |
Prepaid expenses and other current assets | 33,820 | 23,677 |
Costs and estimated profits in excess of billings | 4,104 | 9,159 |
Accrued revenue | 1,260 | 862 |
Total current assets | 665,917 | 766,017 |
Property and equipment, net of accumulated depreciation | 154,836 | 177,358 |
Operating lease assets | 48,682 | 0 |
Deferred financing costs, net | 1,243 | 2,071 |
Intangibles, net | 272,300 | 359,048 |
Goodwill | 0 | 469,647 |
Investment in unconsolidated subsidiary | 0 | 44,982 |
Deferred income taxes, net | 654 | 1,234 |
Other long-term assets | 16,365 | 9,295 |
Total assets | 1,159,997 | 1,829,652 |
Current liabilities | ||
Current portion of long-term debt | 717 | 1,167 |
Accounts payable—trade | 98,720 | 143,186 |
Accrued liabilities | 86,625 | 81,032 |
Deferred revenue | 4,877 | 8,335 |
Billings in excess of costs and profits recognized | 5,911 | 3,210 |
Total current liabilities | 196,850 | 236,930 |
Long-term debt, net of current portion | 398,862 | 517,544 |
Deferred income taxes, net | 2,465 | 15,299 |
Operating lease liabilities | 49,938 | 0 |
Other long-term liabilities | 25,843 | 29,753 |
Total liabilities | 673,958 | 799,526 |
Commitments and contingencies | ||
Equity | ||
Common stock, $0.01 par value, 296,000,000 shares authorized, 118,840,611 and 117,411,158 shares issued | 1,189 | 1,174 |
Additional paid-in capital | 1,231,650 | 1,214,928 |
Treasury stock at cost, 8,211,919 and 8,200,477 shares | (134,493) | (134,434) |
Retained earnings (accumulated deficit) | (503,369) | 63,688 |
Accumulated other comprehensive loss | (108,938) | (115,230) |
Total equity | 486,039 | 1,030,126 |
Total liabilities and equity | $ 1,159,997 | $ 1,829,652 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable—trade, net of allowances of $9,048 and $7,432 | $ 9,048 | $ 7,432 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 296,000,000 | 296,000,000 |
Common Stock, shares issued (in shares) | 118,840,611 | 117,411,158 |
Treasury Stock, shares, at cost (in shares) | 8,211,919 | 8,200,477 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net loss | $ (567,057) | $ (374,080) | $ (59,400) |
Adjustments to reconcile net loss to net cash provided by (used in) investing activities: | |||
Impairments of goodwill, intangible assets, property and equipment | 532,336 | 363,522 | 69,062 |
Depreciation expense | 30,629 | 33,148 | 34,401 |
Amortization of intangible assets | 32,612 | 41,360 | 30,728 |
Stock-based compensation expense | 15,846 | 19,927 | 20,310 |
Inventory write downs | 10,324 | 36,606 | 14,620 |
Provision for doubtful accounts | 3,152 | 3,342 | 2,903 |
Deferred income taxes | (12,985) | (13,552) | 149 |
Contingent consideration benefit | (4,629) | 0 | 0 |
Gain on disposition of business | (2,348) | 0 | 0 |
Gain realized on previously held equity investment | (1,567) | 0 | (120,392) |
(Earnings) loss from equity investments, net of distributions | 318 | (140) | 2,073 |
Gain on contribution of subsea rentals business | 0 | 33,506 | 0 |
Other | 4,040 | 1,086 | 3,886 |
Changes in operating assets and liabilities | |||
Accounts receivable—trade | 49,732 | (4,833) | (64,844) |
Inventories | 54,265 | (60,903) | (66,646) |
Prepaid expenses and other current assets | 621 | (7,980) | 12,462 |
Income tax receivable | 0 | 0 | 30,929 |
Cost and estimated profits in excess of billings | 4,632 | 1,273 | (171) |
Accounts payable, deferred revenue and other accrued liabilities | (48,056) | (4,192) | 52,142 |
Billings in excess of costs and estimated profits earned | 2,279 | 1,329 | (2,245) |
Net cash provided by (used in) operating activities | 104,144 | 2,407 | (40,033) |
Cash flows from investing activities | |||
Capital expenditures for property and equipment | (15,102) | (24,043) | (26,709) |
Acquisition of businesses, net of cash acquired | 0 | (60,622) | (162,189) |
Proceeds from the sale of equity investment, business, property and equipment | 43,237 | 9,258 | 1,971 |
Investment in unconsolidated subsidiary | 0 | 0 | (1,041) |
Net cash provided by (used in) investing activities | 28,135 | (75,407) | (187,968) |
Cash flows from financing activities | |||
Borrowings of debt | 137,000 | 221,980 | 107,431 |
Repayments of debt | (256,900) | (211,783) | 0 |
Repurchases of stock | (1,094) | (2,777) | (4,742) |
Proceeds from stock issuance | 0 | 249 | 1,491 |
Payment of capital lease obligations | (1,197) | (1,147) | (1,187) |
Deferred financing costs | 0 | 0 | (2,430) |
Net cash provided by (used in) financing activities | (122,191) | 6,522 | 100,563 |
Effect of exchange rate changes on cash | 582 | (1,497) | 8,232 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 10,670 | (67,975) | (119,206) |
Cash, cash equivalents and restricted cash at beginning of period | 47,241 | 115,216 | 234,422 |
Cash, cash equivalents and restricted cash at end of period | 57,911 | 47,241 | 115,216 |
Supplemental cash flow disclosures | |||
Cash paid for interest | 31,940 | 30,269 | 25,986 |
Cash paid (refunded) for income taxes | 3,917 | 5,560 | (29,094) |
Noncash investing and financing activities | |||
Acquisition via issuance of stock | 0 | 0 | 177,972 |
Assets contributed for equity method investment | 0 | 18,070 | 0 |
Note receivable related to equity method investment transaction | 4,725 | 4,067 | 0 |
Accrued purchases of property and equipment | 91 | 1,708 | 1,398 |
Accrued consideration for acquisition | $ 0 | $ 4,650 | $ 0 |
Consolidated statements of chan
Consolidated statements of changes in stockholders' equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Treasury stock | Retained earnings (accumulated deficit) | Accumulated other comprehensive income / (loss) | Total common stockholders’ equity | Non controlling Interest |
Balance at Dec. 31, 2016 | $ 1,235,761 | $ 1,037 | $ 998,169 | $ (133,941) | $ 498,174 | $ (128,237) | $ 1,235,202 | $ 559 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Restricted stock issuance, net of forfeitures | (3,149) | 3 | (3,152) | (3,149) | ||||
Stock-based compensation expense | 20,310 | 20,310 | 20,310 | |||||
Exercised stock options | 1,491 | 2 | 1,489 | 1,491 | ||||
Issuance of performance shares | (1,241) | 3 | (1,244) | (1,241) | ||||
Shares issued in employee stock purchase plan | 1,913 | 1 | 1,912 | 1,913 | ||||
Shares issued for acquisition | 177,972 | 117 | 177,855 | 177,972 | ||||
Sale of non-controlling interest | (559) | (559) | ||||||
Treasury stock | (352) | (352) | (352) | |||||
Change in pension liability | 107 | 107 | 107 | |||||
Currency translation adjustment | 36,163 | 36,163 | 36,163 | |||||
Net loss | (59,400) | (59,400) | (59,400) | |||||
Balance at Dec. 31, 2017 | 1,409,016 | 1,163 | 1,195,339 | (134,293) | 438,774 | (91,967) | 1,409,016 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Restricted stock issuance, net of forfeitures | (2,363) | 7 | (2,370) | (2,363) | ||||
Stock-based compensation expense | 19,927 | 19,927 | 19,927 | |||||
Exercised stock options | 249 | 0 | 249 | 249 | ||||
Issuance of performance shares | (273) | 2 | (275) | (273) | ||||
Shares issued in employee stock purchase plan | 1,935 | 2 | 1,933 | 1,935 | ||||
Shares issued for acquisition | 125 | 0 | 125 | 125 | ||||
Sale of non-controlling interest | (141) | (141) | (141) | |||||
Change in pension liability | 1,489 | 1,489 | 1,489 | |||||
Currency translation adjustment | (24,752) | (24,752) | (24,752) | |||||
Net loss | (374,080) | (374,080) | (374,080) | |||||
Balance at Dec. 31, 2018 | 1,030,126 | 1,174 | 1,214,928 | (134,434) | 63,688 | (115,230) | 1,030,126 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Restricted stock issuance, net of forfeitures | (1,035) | 9 | (1,044) | (1,035) | ||||
Stock-based compensation expense | 15,846 | 15,846 | 15,846 | |||||
Shares issued in employee stock purchase plan | 1,551 | 5 | 1,546 | 1,551 | ||||
Sale of non-controlling interest | (59) | (59) | (59) | |||||
Change in pension liability | (1,666) | (1,666) | (1,666) | |||||
Currency translation adjustment | 7,958 | 7,958 | 7,958 | |||||
Net loss | (567,057) | (567,057) | (567,057) | |||||
Contingent shares issued for acquisition of Cooper | 375 | 1 | 374 | 375 | ||||
Balance at Dec. 31, 2019 | $ 486,039 | $ 1,189 | $ 1,231,650 | $ (134,493) | $ (503,369) | $ (108,938) | $ 486,039 | $ 0 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly and majority owned subsidiaries after elimination of intercompany balances and transactions. Noncontrolling interest represented ownership by others of the equity in a consolidated majority owned South African subsidiary which we sold in the first quarter of 2017. Our investments in operating entities where we have the ability to exert significant influence, but do not control operating and financial policies, are accounted for using the equity method of accounting with our share of the net income reported in “ Earnings (loss) from equity investments ” in the consolidated statements of comprehensive loss and the investments reported in “ Investment in unconsolidated subsidiary ” in the consolidated balance sheets. The Company’s share of equity earnings are reported within operating loss as the operations of investees are integral to the operations of the Company. Prior to acquiring the remaining membership interest of Global Tubing, LLC (“Global Tubing”) on October 2, 2017, the Company’s investment was accounted for using the equity method of accounting. On January 3, 2018, the Company contributed Forum Subsea Rentals (“FSR”) into Ashtead Technology, a competing business, in exchange for a 40% interest in the combined business. After the merger, our interest in the combined business was accounted for using the equity method of accounting. On September 3, 2019, we sold our aggregate 40% interest in Ashtead to the majority owners of Ashtead. As of December 31, 2019, we have no investments in unconsolidated subsidiaries. Refer to Note 4 Acquisitions & Dispositions for further discussion. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In the preparation of these consolidated financial statements, estimates and assumptions have been made by management including, among others, costs to complete contracts, an assessment of percentage of completion of projects, the selection of useful lives of tangible and intangible assets, fair value of reporting units used for goodwill impairment testing, fair value associated with business combinations, expected future cash flows from long lived assets to support impairment tests, provisions necessary for trade receivables, amounts of deferred taxes and income tax contingencies. Actual results could differ from these estimates. The financial reporting of contracts depends on estimates, which are assessed continually during the term of those contracts. The amounts of revenues and income recognized are subject to revisions as the contract progresses to completion and changes in estimates are reflected in the period in which the facts that give rise to the revisions become known. Additional information that enhances and refines the estimating process that is obtained after the balance sheet date, but before issuance of the consolidated financial statements is reflected in the consolidated financial statements. Cash and cash equivalents Cash and cash equivalents consist of cash on deposit and high quality, short term money market instruments with an original maturity of three months or less. Cash equivalents are based on quoted market prices, a Level 1 fair value measure. Accounts receivable-trade Trade accounts receivables are carried at their estimated collectible amounts. Trade credit is generally extended on a short-term basis; thus receivables do not bear interest, although a finance charge may be applied to amounts past due. We maintain an allowance for doubtful accounts for estimated losses that may result from the inability of our customers to make required payments. Such allowances are based upon several factors including, but not limited to, credit approval practices, industry and customer historical experience as well as the current and projected financial condition of the specific customer. Accounts receivable outstanding longer than contractual terms are considered past due. We write off accounts receivable to the allowance for doubtful accounts when they become uncollectible. Any payments subsequently received on receivables previously written off are credited to bad debt expense. The change in amounts of the allowance for doubtful accounts during the three year period ended December 31, 2019 is as follows (in thousands): Period ended Balance at beginning of period Charged to expense Deductions or other Balance at end of period December 31, 2017 $ 3,331 $ 2,903 $ (439 ) $ 5,795 December 31, 2018 5,795 3,342 (1,705 ) 7,432 December 31, 2019 7,432 3,152 (1,536 ) 9,048 Inventories Inventory consisting of finished goods and materials and supplies held for resale is carried at the lower of cost or net realizable value. For certain operations, cost, which includes the cost of raw materials and labor for finished goods, is determined using standard cost which approximates a first-in first-out basis. For other operations, this cost is determined on an average cost, first-in first-out or specific identification basis. Net realizable value means estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. We continuously evaluate inventories based on an analysis of inventory levels, historical sales experience and future sales forecasts, to determine obsolete, slow-moving and excess inventory. Adjustments to reduce such inventory to its net realizable value have been recorded. Property and equipment Property and equipment are stated at cost less accumulated depreciation. Capital leases of property and equipment are stated at the present value of future minimum lease payments. Expenditures for property and equipment and for items which substantially increase the useful lives of existing assets are capitalized at cost and depreciated over their estimated useful life utilizing the straight-line method. Routine expenditures for repairs and maintenance are expensed as incurred. Depreciation is computed using the straight-line method based on the estimated useful lives of assets, generally 3 to 30 years . Property and equipment held under capital leases are amortized straight-line over the shorter of the lease term or estimated useful life of the asset. Gains or losses resulting from the disposition of assets are recognized in income with the related asset cost and accumulated depreciation removed from the balance sheet. Assets acquired in connection with business combinations are recorded at fair value. Rental equipment consists of equipment rented to customers under short-term rental agreements. Rental equipment is recorded at cost and depreciated using the straight-line method over the estimated useful life of three to ten years . We review long-lived assets for potential impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. In performing the review for impairment, future cash flows expected to result from the use of the asset and its eventual disposal are estimated. If the undiscounted future cash flows are less than the carrying amount of the assets, there is an indication that the asset may be impaired. The amount of the impairment is measured as the difference between the carrying value and the estimated fair value of the asset. The fair value is determined either through the use of an external valuation, or by means of an analysis of discounted future cash flows based on expected utilization. For the years ended December 31, 2019 , we recognized property and equipment impairment charges totaling $7.9 million , which are included in “ Impairments of goodwill, intangible assets, property and equipment ” in the consolidated statements of comprehensive loss . See Note 6 Property and Equipment for further information related to these charges. No significant impairment charges were recorded for the years ended December 31, 2018 and 2017 . We record the fair value of asset retirement obligations as a liability in the period in which the associated legal obligation is incurred. The fair value of the obligation is recorded as a liability and capitalized as part of the related asset. Over time, the liability is accreted to its future value and the capitalized cost is depreciated over the estimated useful life of the related asset. The current portion of the liability is included in other accrued liabilities and the non-current portion is included in other long-term liabilities in the consolidated balance sheets. Goodwill and intangible assets For goodwill and intangible assets with indefinite lives, an assessment for impairment is performed annually or when there is an indication an impairment may have occurred. We use an assessment date of October 1 for our annual impairment test for goodwill and other indefinite-lived intangible assets. Goodwill is reviewed for impairment by comparing the carrying value of each of our seven reporting units’ net assets, including allocated goodwill, to the estimated fair value of the reporting unit. We determine the fair value of our reporting units using a discounted cash flow approach. We selected this valuation approach because we believe it, combined with our best judgment regarding underlying assumptions and estimates, provides the best estimate of fair value for each of our reporting units. Determining the fair value of a reporting unit requires the use of estimates and assumptions. Such estimates and assumptions include revenue growth rates, future operating margins, the weighted average cost of capital, a terminal growth value, and future market conditions, among others. We believe that the estimates and assumptions used in our impairment assessments are reasonable. If the reporting unit’s carrying value is greater than its calculated fair value, we recognize a goodwill impairment charge for the amount by which the carrying value of goodwill exceeds its fair value. For the years ended December 31, 2019 , 2018 and 2017 , we recognized goodwill impairment charges totaling $471.0 million , $298.8 million and $68.0 million , respectively, which are included in “ Impairments of goodwill, intangible assets, property and equipment ” in the consolidated statements of comprehensive loss . See Note 7 Goodwill and Intangible Assets for further information related to these charges. Following the goodwill impairment charges recognized in the third quarter of 2019 , there is no remaining goodwill balance for any of our reporting units. Intangible assets with definite lives are comprised of customer and distributor relationships, patents and technology, trade names, trademarks and non-compete agreements which are amortized on a straight-line basis over the life of the intangible asset, generally two to twenty-two years . These assets are tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In performing the review for impairment, future cash flows expected to result from the use of the asset are estimated. If the undiscounted future cash flows are less than the carrying amount of the assets, there is an indication that the asset may be impaired. The amount of the impairment is measured as the difference between the carrying value and the estimated fair value of the asset. The fair value is determined either through the use of an external valuation, or by means of an analysis of discounted future cash flows. The impairment loss recognized represents the excess of an assets’ carrying value as compared to its estimated fair value. For the years ended December 31, 2019 , 2018 and 2017 , we recognized intangible asset impairment charges totaling $53.5 million , $64.7 million and $1.1 million , respectively, which are included in “ Impairments of goodwill, intangible assets, property and equipment ” in the consolidated statements of comprehensive loss . See Note 7 Goodwill and Intangible Assets for further information related to these charges. Recognition of provisions for contingencies In the ordinary course of business, we are subject to various claims, suits and complaints. We, in consultation with internal and external legal advisors, will provide for a contingent loss in the consolidated financial statements if, at the date of the consolidated financial statements, it is probable that a liability has been incurred and the amount can be reasonably estimated. If it is determined that the reasonable estimate of the loss is a range and that there is no best estimate within that range, a provision will be made for the lower amount of the range. Legal costs are expensed as incurred. An assessment is made of the areas where potential claims may arise under contract warranty clauses. Where a specific risk is identified, and the potential for a claim is assessed as probable and can be reasonably estimated, an appropriate warranty provision is recorded. Warranty provisions are eliminated at the end of the warranty period except where warranty claims are still outstanding. The liability for product warranty is included in other accrued liabilities in the consolidated balance sheets. Revenue recognition and deferred revenue Revenue is recognized in accordance with Accounting Standards Codification Topic 606 (“ASC 606”), when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Contract Identification . We account for a contract when it is approved, both parties are committed, the rights of the parties are identified, payment terms are defined, the contract has commercial substance and collection of consideration is probable. Performance Obligations . A performance obligation is a promise in a contract to transfer a distinct good or service to the customer under ASC 606. The majority of our contracts with customers contain a single performance obligation to provide agreed-upon products or services. For contracts with multiple performance obligations, we allocate revenue to each performance obligation based on its relative standalone selling price. In accordance with ASC 606, we do not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer. We have elected to apply the practical expedient to account for shipping and handling costs associated with outbound freight after control of a product has transferred to a customer as a fulfillment cost which is included in Cost of Sales. Furthermore, since our customer payment terms are short-term in nature, we have also elected to apply the practical expedient which allows an entity to not adjust for the effects of a significant financing component if it expects that the customer’s payment period will be less than one year in duration. Contract Value . Revenue is measured based on the amount of consideration specified in the contracts with our customers and excludes any amounts collected on behalf of third parties. We have elected the practical expedient to exclude amounts collected from customers for all sales (and other similar) taxes. The estimation of total revenue from a customer contract is subject to elements of variable consideration. Certain customers may receive rebates or discounts which are accounted for as variable consideration. We estimate variable consideration as the most likely amount to which we expect to be entitled, and we include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue will not occur when the uncertainty associated with the variable consideration is resolved. Our estimate of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historic, current, forecast) that is reasonably available to us. Timing of Recognition . We recognize revenue when we satisfy a performance obligation by transferring control of a product or service to a customer. Our performance obligations are satisfied at a point in time or over time as work progresses. Revenue from goods transferred to customers at a point in time accounted for 96% of revenues for the year ended December 31, 2019 . The majority of this revenue is product sales, which are generally recognized when items are shipped from our facilities and title passes to the customer. The amount of revenue recognized for products is adjusted for expected returns, which are estimated based on historical data. Revenue from goods transferred to customers over time accounted for 4% of revenues for the year ended December 31, 2019 , which is related to certain contracts in our Subsea and Production Equipment product lines. Recognition over time for these contracts is supported by our assessment of the products supplied as having no alternative use to us and by clauses in the contracts that provide us with an enforceable right to payment for performance completed to date. We use the cost-to-cost method to measure progress for these contracts because it best depicts the transfer of assets to the customer which occurs as costs are incurred on the contract. The amount of revenue recognized is calculated based on the ratio of costs incurred to-date compared to total estimated costs which requires management to calculate reasonably dependable estimates of total contract costs. Whenever revisions of estimated contract costs and contract values indicate that the contract costs will exceed estimated revenues, thus creating a loss, a provision for the total estimated loss is recorded in that period. We recognize revenue and cost of sales each period based upon the advancement of the work-in-progress unless the stage of completion is insufficient to enable a reasonably certain forecast of profit to be established. In such cases, no profit is recognized during the period. Accounting estimates during the course of projects may change, primarily related to our remotely operated vehicles (“ROVs”) which may take longer to manufacture. The effect of such a change, which can be upward as well as downward, is accounted for in the period of change, and the cumulative income recognized to date is adjusted to reflect the latest estimates. These revisions to estimates are accounted for on a prospective basis. Contracts are sometimes modified to account for changes in product specifications or requirements. Most of our contract modifications are for goods and services that are not distinct from the existing contract. As such, these modifications are accounted for as if they were part of the existing contract, and therefore, the effect of the modification on the transaction price and our measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue on a cumulative catch-up basis. No adjustment to any one contract was material to our consolidated financial statements for the years ended December 31, 2019 , 2018 and 2017 . We sell our products through a number of channels including a direct sales force, marketing representatives, and distributors. We have elected to expense sales commissions when incurred as the amortization period would be less than one year. These costs are recorded within cost of sales. Portfolio Approach . We have elected to apply ASC 606 to a portfolio of contracts with similar characteristics as we reasonably expect that the effects on the financial statements of applying this guidance to the portfolio would not differ materially from applying this guidance to the individual contracts within that portfolio. Disaggregated Revenue . Refer to Note 17 Business Segments for disaggregated revenue by product line and geography. Contract Balances . Contract balances are determined on a contract by contract basis. Contract assets represent revenue recognized for goods and services provided to our customers when payment is conditioned on something other than the passage of time. Similarly, when we receive consideration, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a sales contract, we record a contract liability. Such contract liabilities typically result from billings in excess of costs incurred and advance payments received on product sales. Concentration of credit risk Financial instruments which potentially subject the Company to credit risk include trade accounts receivable. Trade accounts receivable consist of uncollateralized receivables from domestic and international customers. For the years ended December 31, 2019 , 2018 and 2017 , no one customer accounted for 10% or more of the total revenue or 10% or more of the total accounts receivable balance at the end of the respective period. Stock based compensation We measure all stock based compensation awards at fair value on the date they are granted to employees and directors, and recognize compensation cost over the requisite service period for awards with only a service condition, and over a graded vesting period for awards with service and performance or market conditions. The fair value of stock based compensation awards with market conditions is measured using a Monte Carlo Simulation model and, in accordance with Accounting Standards Codification (“ASC”) 718, is not adjusted based on actual achievement of the performance goals. The Black-Scholes option pricing model is used to measure the fair value of options. The following sections address the assumptions used related to the Black-Scholes option pricing model: Expected life The expected term of stock options represents the period the stock options are expected to remain outstanding. Expected volatility Expected volatility measures the amount that a stock price has fluctuated or is expected to fluctuate during a period and is estimated based on a weighted average of the Company’s historical stock price. Dividend yield We have never declared or paid any cash dividends and do not plan to pay cash dividends for the foreseeable future. Therefore, a zero expected dividend yield was used in the valuation model. Risk-free interest rate The risk-free interest rate is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected life of the options. Forfeitures Forfeitures are accounted for as they occur. Income taxes We follow the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are determined based upon temporary differences between the carrying amounts and tax bases of our assets and liabilities at the balance sheet date, and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized in income in the period in which the change occurs. We record a valuation allowance in each reporting period when management believes that it is more likely than not that any deferred tax asset created will not be realized. See Note 10 Income Taxes for more information on valuation allowances recognized. During 2018, we completed our analysis of the impact of U.S. tax reform enacted in December 2017 based on further guidance provided on the new tax law by the U.S. Treasury Department and Internal Revenue Service. Refer to Note 10 Income Taxes for further discussion. Accounting guidance for income taxes requires that we recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. If a tax position meets the “more likely than not” recognition criteria, accounting guidance requires the tax position be measured at the largest amount of benefit greater than 50% likely of being realized upon ultimate settlement. Non-U.S. local currency translation We have global operations and the majority of our non-U.S. operations have designated the local currency as the functional currency. Realized and unrealized gains and losses resulting from re-measurements of monetary assets and liabilities denominated in a currency other than the local entity’s functional currency are included in the consolidated statements of comprehensive loss as incurred. Financial statements of our foreign operations where the functional currency is not the U.S. dollar are translated into U.S. dollars using the current rate method whereby assets and liabilities are translated at the balance sheet rate and income and expenses are translated at the average exchange rates in effect during the period. The resultant translation adjustments are reported as a component of accumulated other comprehensive loss within stockholders’ equity in our consolidated balance sheets. Fair value The carrying amounts for financial instruments classified as current assets and current liabilities approximate fair value, due to the short maturity of such instruments. The book values of other financial instruments, such as our debt related to the Credit Facility, approximates fair value because interest rates charged are similar to other financial instruments with similar terms and maturities and the rates vary in accordance with a market index. For the financial assets and liabilities disclosed at fair value, fair value is determined as the exit price, or the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The established fair value hierarchy divides fair value measurement into three broad levels: • Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; • Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and • Level 3 - inputs are unobservable for the asset or liability, which reflect the best judgment of management. The financial assets and liabilities that are disclosed at fair value for disclosure purposes are categorized in one of the above three levels based on the lowest level input that is significant to the fair value measurement in its entirety. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”), which we adopt as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on our consolidated financial statements upon adoption. Accounting Standards Adopted in 2019 Stranded Tax Effects from the Tax Cuts and Jobs Act. In February 2018, the FASB issued ASU No. 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. U.S. GAAP requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates, with the effect included in income from continuing operations in the reporting period that includes the enactment date, even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income (referred to as “stranded tax effects”). The amendments in this ASU allow a specific exception for reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. In addition, the amendments in this update also require certain disclosures about stranded tax effects. We applied the update beginning January 1, 2019. The adoption of this new guidance had no material impact on our consolidated financial statements. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 842”). Under this new guidance, lessees are required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases (finance and operating). The classification as either a finance or operating lease determines whether lease expense is recognized on an effective interest method basis or on a straight-line basis over the term of the lease, respectively. We adopted this new standard as of January 1, 2019 using the modified retrospective transition method which requires leases existing at, or entered into after, January 1, 2019 to be recognized and measured. As such, the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We took advantage of various practical expedients provided by the new standard, including: • use of the transition package of practical expedients which, among other things, allows us to carry forward the historical lease classification for existing leases; • making an accounting policy election for leases with an initial term of 12 months or less to be excluded from the balance sheet; and • electing to not separate non-lease components from lease components for all classes of underlying lease assets. The adoption of this standard resulted in the recording of net operating lease assets of approximately $54 million and operating lease liabilities of approximately $65 million as of January 1, 2019. The new standard did not materially affect our consolidated statements of comprehensive loss for the year ended December 31, 2019 . For additional information, please refer to Note 9 Leases . Accounting Standards Issued But Not Yet Adopted Accounting for Implementation Costs Related to a Cloud Computing Arrangement . In August 2018, the FASB issued ASU No. 2018-15 Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This new guidance aligns the requirements for capitalizing implementation costs incurred by an entity related to a cloud computing arrangement with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Accordingly, this guidance requires an entity to capitalize certain implementation costs incurred and then amortize them over the term of the cloud hosting arrangement. Furthermore, this guidance also requires an entity to present the expense, cash flows, and capitalized implementation costs in the same financial statement line items as the associated hosting service. This new guidance will take effect for public companies with fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are currently evaluating the impact of adopting this guidance. However, we currently expect that the adoption of this guidance will not have a material impact on our consolidated financial statements. Fair Value Measurement Disclosure . In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirement for Fair Value Measurement. This new guidance eliminated, modified and added certain disclosure requirements related to fair value measurements. The amended disclosure requirements are effective for all entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. We are evaluating the impact of adopting this guidance. However, we currently expect that the adoption of this guidance w |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregated Revenue Refer to Note 17 Business Segments for disaggregated revenue by product line and geography. Contract Balances The following table reflects the changes in our contract assets and contract liabilities balances for the year ended December 31, 2019 : December 31, 2019 December 31, 2018 Decrease $ % Accrued revenue $ 1,260 $ 862 Costs and estimated profits in excess of billings 4,104 9,159 Contract assets $ 5,364 $ 10,021 $ (4,657 ) (46 )% Deferred revenue $ 4,877 $ 8,335 Billings in excess of costs and profits recognized 5,911 3,210 Contract liabilities $ 10,788 $ 11,545 $ (757 ) (7 )% During the year ended December 31, 2019 , our contract assets decreased by $4.7 million primarily due to the timing of billings on a large project in our Subsea Technologies product line and our contract liabilities decreased by $0.8 million primarily due to a reduction in customer pre-payments in our Drilling Technologies and Stimulation and Intervention product lines. During the year ended December 31, 2019 , we recognized revenue of $6.5 million that was included in the contract liability balance at the beginning of the period. In the second quarter of 2018, our Subsea Technologies product line received an order to supply a submarine rescue vehicle and related equipment that we expect to deliver in 2020. We use the cost-to-cost method to measure progress on this contract to recognize revenue over time. Other than this contract, all of our other contracts are less than one year in duration. As such, we have elected to apply the practical expedient which allows an entity to exclude disclosures |
Acquisitions & Dispositions
Acquisitions & Dispositions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions & Dispositions | Acquisitions & Dispositions Acquisitions 2018 Acquisition of Houston Global Heat Transfer LLC On October 5, 2018, we acquired 100% of the stock of Houston Global Heat Transfer LLC (“GHT”) for total aggregate consideration of $57.3 million , net of cash acquired. The aggregate consideration included the estimated fair value (as of the acquisition date) of certain contingent cash payments due to the former owners of GHT if certain conditions are met in 2019 and 2020. Based in Houston, Texas, GHT designs, engineers, and manufactures premium industrial heat exchanger and cooling systems used primarily on hydraulic fracturing equipment. GHT’s flagship product, the Jumbotron, is an innovative cube-style radiator that substantially reduces customer maintenance expense. This acquisition is included in the Completions segment. In the first quarter of 2019, we updated the estimated fair value of the contingent cash payments and recognized a $4.6 million reduction in the contingent cash liability. This gain is included in contingent consideration benefit in the consolidated statements of comprehensive loss . The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of the acquisition (in thousands): Current assets, net of cash acquired $ 18,468 Property and equipment 2,408 Non-current assets 238 Intangible assets (primarily customer relationships) 30,400 Tax-deductible goodwill 20,746 Current liabilities (12,633 ) Long-term liabilities $ (2,355 ) Net assets acquired, net of cash acquired $ 57,272 Revenue and net income for this acquisition were not significant for the year ended December 31, 2019 and 2018. Pro forma results of operations for this acquisition have not been presented because the effects were not material to the consolidated financial statements. 2018 Acquisition of ESP Completion Technologies LLC On July 2, 2018, we acquired certain assets of ESP Completion Technologies LLC ("ESPCT"), a subsidiary of C&J Energy Services, for cash consideration of $8.0 million . ESPCT consists of a portfolio of early stage technologies that maximize the run life of artificial lift systems, primarily electric submersible pumps. This acquisition is included in the Drilling and Downhole segment. The fair values of the assets acquired and liabilities assumed as well as the pro forma results of operations for this acquisition have not been presented because they are not material to the consolidated financial statements. 2017 Acquisition of Global Tubing On October 2, 2017, we acquired all of the remaining ownership interests of Global Tubing, LLC (“Global Tubing”) from our joint venture partner and management for total consideration of approximately $290.3 million . We originally invested in Global Tubing with a joint venture partner in 2013. Prior to acquiring the remaining ownership interest in Global Tubing, we reported this investment using the equity method of accounting. The financial results for Global Tubing are reported in the Completions segment. Located in Dayton, Texas, Global Tubing provides coiled tubing, coiled line pipe and related services to customers worldwide. The acquisition of Global Tubing contributed revenues of $35.5 million and net income of $3.8 million to our consolidated statement of comprehensive loss from the time of acquisition to December 31, 2017. The following unaudited pro forma summary presents consolidated information as if the Global Tubing acquisition had occurred on January 1, 2016: Pro Forma Year Ended December 31, 2017 Net sales $ 901,856 Net loss attributable to common stockholders (125,204 ) The pro forma consolidated results of operations amounts have been calculated after applying our accounting policies, and include the following adjustments: • An increase in depreciation and amortization expense resulting from the fair value adjustments of property, plant and equipment and intangible assets recognized as part of the Global Tubing Acquisition; • Removal of earnings from equity investment; • Removal of the historical interest expense from Global Tubing’s historical debt and inclusion of interest expense from the amount borrowed on our Credit Facility to finance the acquisition; • As a result of acquiring the remaining equity interest of Global Tubing, the Company’s previously held equity interest was remeasured to fair value, resulting in a gain of approximately $120.4 million . This gain has been recognized in the consolidated statement of comprehensive loss for the year ended December 31, 2017 and is excluded from the pro forma results above; and • Estimated tax benefits of approximately $45 million to tax-effect the aforementioned pro forma adjustments using an estimated U.S. federal income tax rate of 35% . The pro forma amounts do not include any potential synergies, cost savings or other expected benefits of the acquisition, and are presented for illustrative purposes only and are not necessarily indicative of results that would have been achieved if the acquisition had occurred as of January 1, 2016 or of future operating performance. The following table summarizes the consideration transferred to acquire the remaining ownership interests of Global Tubing (in thousands other than stock price and shares issued): Purchase Consideration Forum Energy Technologies' closing stock price on October 2, 2017 $ 15.10 Multiplied by number of shares issued for acquisition 11,488,208 Common shares $ 173,472 Cash 31,764 Repayment of Global Tubing debt at acquisition 85,084 Total Consideration paid for the acquisition $ 290,320 2017 Acquisition of Multilift On July 3, 2017, we acquired Multilift Welltec, LLC and Multilift Wellbore Technology Limited (collectively, “Multilift”) for approximately $39.2 million in cash consideration. These acquisitions are included in the Completions segment. Based in Houston, Texas, Multilift manufactures the patented SandGuard TM and the Cyclone TM completion tools. Pro forma results of operations for this acquisition have not been presented because the effects were not material to the consolidated financial statements. 2017 Acquisition of Cooper Valves On January 9, 2017, we acquired substantially all of the assets of Cooper Valves, LLC as well as 100% of the general partnership interests of Innovative Valve Components (collectively, “Cooper”) for total aggregate consideration of $14.0 million , after settlement of working capital adjustments. The aggregate consideration includes the issuance of stock valued at $4.5 million and certain contingent stock issuances. These acquisitions are included in the Production segment. The acquired Cooper brands include the Accuseal ® metal seated ball valves engineered to meet Class VI shut off standards for use in severe service applications, as well as a full line of Cooper Alloy ® cast and forged gate, globe, and check valves. Innovative Valve Components, in partnership with Cooper Valves, commercialized critical service valves and components for the power generation, mining and oil and natural gas industries. Pro forma results of operations for this acquisition have not been presented because the effects were not material to the consolidated financial statements. Dispositions 2019 Disposition of Cooper Alloy ® On December 4, 2019, we sold certain assets of our Cooper Alloy ® brand of valve products for total consideration of $4.0 million and recognized a gain on disposition totaling $2.3 million . Pro forma results of operations for this disposition have not been presented because the effects were not material to the consolidated financial statements. 2019 Disposition of Equity Interest in Ashtead Technology On September 3, 2019, we sold our aggregate 40% interest in Ashtead to the majority owners of Ashtead. Total consideration for Forum’s 40% interest and the settlement of a £3.0 million British Pounds note receivable from Ashtead was $47.7 million . Forum received $39.3 million in cash proceeds and a new £6.9 million British Pounds note receivable with a three year maturity. In the third quarter of 2019, we recognized a gain of $1.6 million as a result of this transaction, which is classified as Gain realized on previously held equity investment in the consolidated statements of comprehensive loss . Pro forma results of operations for this transaction have not been presented because the effects were not material to the consolidated financial statements. 2018 Disposition of Forum Subsea Rentals On January 3, 2018, we contributed our subsea rentals business to Ashtead to create an independent provider of subsea survey and equipment rental services. In exchange, we received a 40% interest in the combined business, a cash payment of £2.7 million British Pounds and a note receivable from Ashtead of £3.0 million British Pounds. Our 40% interest in Ashtead was accounted for as an equity method investment and reported as Investment in unconsolidated subsidiary in our consolidated balance sheets prior to the disposition of our equity interest discussed above. In the first quarter of 2018, we recognized a gain of $33.5 million as a result of the deconsolidation of our Forum Subsea Rentals business, which is classified as Gain on contribution of subsea rentals business in the consolidated statements of comprehensive loss . This gain was equal to the sum of the consideration received, which included the fair value of our 40% interest in Ashtead, £2.7 million British Pounds in cash, and the £3.0 million British Pounds note receivable from Ashtead, less the $18.1 million carrying value of the Forum subsea rentals assets at the time of closing. The fair value of such 40% interest in Ashtead was determined based on the present value of estimated future cash flows of the combined entity as of January 3, 2018. The difference between the fair value of our 40% interest in Ashtead of $43.8 million and the book value of the underlying net assets resulted in a basis difference, which was allocated to fixed assets, intangible assets and goodwill based on their respective fair values as of January 3, 2018. The basis difference allocated to fixed assets and intangible assets was amortized through equity earnings (loss) over the estimated life of the respective assets prior to the disposition of our equity interest discussed above. Pro forma results of operations for this transaction have not been presented because the effects were not material to the consolidated financial statements. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The Company’s significant components of inventory at December 31, 2019 and 2018 were as follows (in thousands): December 31, December 31, Raw materials and parts $ 172,083 $ 212,526 Work in process 29,972 39,494 Finished goods 278,660 302,590 Gross inventories 480,715 554,610 Inventory reserve (66,075 ) (75,587 ) Inventories $ 414,640 $ 479,023 The change in the amounts of the inventory reserve during the three year period ended December 31, 2019 is as follows (in thousands): Period ended Balance at beginning of period Charged to expense Deductions or other Balance at end of period December 31, 2017 $ 68,352 $ 14,620 $ (8,654 ) $ 74,318 December 31, 2018 74,318 36,606 (35,337 ) $ 75,587 December 31, 2019 75,587 10,324 (19,836 ) $ 66,075 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following (in thousands): Estimated useful lives December 31, 2019 2018 Land $ 9,870 $ 9,755 Buildings and leasehold improvements 5-30 103,383 103,761 Computer equipment 3-5 55,941 54,721 Machinery & equipment 5-10 166,123 162,110 Furniture & fixtures 3-10 6,731 6,631 Vehicles 3-5 5,382 6,160 Right of use assets - finance leases 2-6 2,528 — Construction in progress 3,663 9,155 353,621 352,293 Less: accumulated depreciation (199,210 ) (180,717 ) Property and equipment, net 154,411 171,576 Rental equipment 3-10 3,779 9,535 Less: accumulated depreciation (3,354 ) (3,753 ) Rental equipment, net 425 5,782 Total property and equipment, net $ 154,836 $ 177,358 Depreciation expense was $ 30.6 million , $ 33.1 million and $ 34.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. For the year ended December 31, 2019 , we recognized property and equipment impairment charges of $5.2 million in our Subsea product line and $2.7 million in our Stimulation and Intervention product line, which are included in Impairments of goodwill, intangible assets, property and equipment in the consolidated statements of comprehensive loss |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The changes in the carrying amount of goodwill were as follows (in thousands): Drilling & Downhole Completions Production Total Goodwill balance at December 31, 2017 $ 494,983 $ 240,816 $ 19,446 $ 755,245 Acquisitions, net of dispositions 1,753 20,559 — 22,312 Impairment (298,789 ) — — (298,789 ) Impact of non-U.S. local currency translation (6,796 ) (2,095 ) (230 ) (9,121 ) Goodwill balance at December 31, 2018 191,151 259,280 19,216 469,647 Acquisitions, net of dispositions 427 187 — 614 Impairment (191,485 ) (260,238 ) (19,287 ) (471,010 ) Impact of non-U.S. local currency translation (93 ) 771 71 $ 749 Goodwill balance at December 31, 2019 $ — $ — $ — $ — We perform our annual impairment tests of goodwill as of October 1 or when there is an indication an impairment may have occurred. Relevant events and circumstances which could be an indicator of impairment include: macroeconomic conditions; industry and market conditions; commodity prices; operating cost factors; overall financial performance; the impact of dispositions and acquisitions; valuation of the Company’s common stock and other entity-specific events. During the third quarter 2019, there was a significant decline in the quoted market prices of our common stock and a continued decline in U.S. onshore drilling and completions activity, which led us to evaluate all of our reporting units for a triggering event as of September 30, 2019. Upon evaluation, we considered these developments to be a triggering event that required us to update our goodwill impairment evaluation for all reporting units as of September 30, 2019 based on our current forecast and expectations for market conditions. As a result, we determined that the carrying value of each of our Downhole, Stimulation and Intervention, Coiled Tubing, Production Equipment and Valve Solutions reporting units exceeded their respective estimated fair value and we recorded non-cash goodwill impairment charges of $191.5 million , $126.3 million , $133.9 million , $4.6 million , and $14.7 million , respectively. These charges are included in Impairments of goodwill, intangible assets, property and equipment in the consolidated statements of comprehensive loss . Following these impairment charges, there is no remaining goodwill balance for any of our reporting units. During the fourth quarter 2018, we completed the annual evaluation of goodwill related to all of our reporting units as of October 1, 2018, our annual testing date. Based on this evaluation, we determined that the carrying value of our Drilling reporting unit exceeded its estimated fair value. As a result, we recorded a non-cash impairment charge of $245.4 million to write-off the goodwill in our Drilling reporting unit. Additionally, during the fourth quarter 2018, there was a significant decline in oil prices, lowered industry expectations for U.S. drilling and completions activities and a substantial decline in the quoted market prices of our common stock, which led us to evaluate all of our reporting units for a triggering event as of December 31, 2018. Upon evaluation, we considered these developments to be a triggering event for our Downhole reporting unit that required us to update our goodwill impairment evaluation as of December 31, 2018 based on our current forecast and expectations for market conditions. As a result, we determined that the carrying value of our Downhole reporting unit exceeded its estimated fair value and we recorded a non-cash impairment charge of $53.4 million to write-off a portion of the goodwill in our Downhole reporting unit. These charges are included in Impairments of goodwill, intangible assets, property and equipment in the consolidated statements of comprehensive loss . In the second quarter of 2017, there was a decline in oil prices and a developing consensus view that production from lower cost oil basins would be sufficient to meet anticipated demand for a longer period, delaying the need for production from higher cost basins. With this indication of further delays in the recovery of the offshore market, we performed an impairment test and determined that the carrying value of the goodwill in our Subsea reporting unit was impaired. As a result, we recorded an impairment charge of $68.0 million in the second quarter of 2017. Accumulated impairment losses on goodwill were $1,006.6 million , $535.6 million and $236.8 million as of December 31, 2019 , 2018 , and 2017 , respectively. The fair values used in each impairment analysis were determined using the net present value of the expected future cash flows for each reporting unit (classified within level 3 of the fair value hierarchy). We determine the fair value of each reporting unit using a combination of discounted cash flow and guideline public company methodologies, which requires significant assumptions and estimates about the future operations of each reporting unit. The assumptions about future cash flows and growth rates are based on our current estimates, strategic plans and management’s estimates for future activity levels. Forecasted cash flows in future periods were estimated using a terminal value calculation, which considered long-term earnings growth rates. Intangible assets At December 31, 2019 and 2018 , intangible assets consisted of the following, respectively (in thousands): December 31, 2019 Gross carrying Accumulated Net intangibles Amortization Customer relationships $ 281,052 $ (110,410 ) $ 170,642 10 - 15 Patents and technology 92,498 (20,819 ) 71,679 5 - 19 Non-compete agreements 190 (100 ) 90 2 - 6 Trade names 43,284 (21,015 ) 22,269 7 - 19 Distributor relationships 22,160 (18,866 ) 3,294 15 - 22 Trademark 5,089 (763 ) 4,326 15 Intangible Assets Total $ 444,273 $ (171,973 ) $ 272,300 December 31, 2018 Gross carrying Accumulated Net intangibles Amortization Customer relationships $ 337,546 $ (110,228 ) $ 227,318 4 - 15 Patents and technology 104,394 (17,148 ) 87,246 5 - 17 Non-compete agreements 6,245 (5,600 ) 645 3 - 6 Trade names 47,493 (18,107 ) 29,386 10 - 15 Distributor relationships 22,160 (17,602 ) 4,558 8 - 15 Trademark 10,319 (424 ) 9,895 15 - Indefinite Intangible Assets Total $ 528,157 $ (169,109 ) $ 359,048 Intangible assets with definite lives are tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In the third quarter of 2019, due to the impairment indicators discussed above, we determined that certain intangibles in our Stimulation and Intervention and our Valve Solutions reporting units were impaired. As a result, we recognized an aggregate $53.5 million of impairment charges on these intangible assets (primarily customer relationships, technology and trademarks) in the third quarter of 2019. In the fourth quarter of 2018, due to the impairment indicators discussed above, we determined that certain intangible assets in our Downhole Technologies reporting unit were impaired. As a result, we recognized $50.2 million of impairment charges on these intangible assets (primarily customer relationships and trade names) in the fourth quarter of 2018. In the second quarter of 2018, we made the decision to exit specific products within the Subsea Technologies and Downhole Technologies product lines. As a result, we recognized $14.5 million of impairment losses on certain intangible assets (primarily customer relationships). In 2017, impairment charges totaling $1.1 million were recorded on certain intangible assets within the Subsea Technologies and Downhole Technologies reporting units related to management’s decision to abandon specific product lines. All of the intangible asset impairment charges discussed above are included in Impairments of goodwill, intangible assets, property and equipment in the consolidated statements of comprehensive loss . The amount of the impairment charges were measured as the difference between the carrying value and the estimated fair value of the assets. The fair value was determined either through the use of an external valuation, or by means of an analysis of discounted future cash flows (classified within level 3 of the fair value hierarchy). Amortization expense was $32.6 million , $41.4 million and $30.7 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The estimated future amortization expense for the next five years is as follows (in thousands): Year ending December 31, Amount 2020 $ 27,974 2021 26,951 2022 25,976 2023 24,413 2024 22,872 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Notes payable and lines of credit as of December 31, 2019 and 2018 consisted of the following (in thousands): December 31, December 31, 6.25% Senior notes due October 2021 $ 400,000 $ 400,000 Unamortized debt premium 770 1,176 Debt issuance cost (3,232 ) (3,121 ) Senior secured revolving credit facility — 119,000 Other debt 2,041 1,656 Total debt 399,579 518,711 Less: current maturities (717 ) (1,167 ) Long-term debt $ 398,862 $ 517,544 Senior Notes Due 2021 In October 2013, we issued $300.0 million of senior unsecured notes due 2021 at par, and in November 2013, we issued an additional $100.0 million aggregate principal amount of the notes at a price of 103.25% of par (the “Senior Notes”). The Senior Notes bear interest at a rate of 6.25% per annum, payable on April 1 and October 1 of each year, and mature on October 1, 2021. The Senior Notes are senior unsecured obligations, and are guaranteed on a senior unsecured basis by our subsidiaries that guarantee the Credit Facility and rank junior to, among other indebtedness, the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The terms of the Senior Notes are governed by the indenture, dated October 2, 2013 (the “Indenture”), by and among us, the guarantors named therein and Wells Fargo Bank, National Association, as trustee. The Senior Notes contain customary covenants including some limitations and restrictions on our ability to pay dividends on, purchase or redeem our common stock; redeem or prepay our subordinated debt; make certain investments; incur or guarantee additional indebtedness or issue certain types of equity securities; create certain liens, sell assets, including equity interests in our restricted subsidiaries; restrict dividends or other payments of our restricted subsidiaries; consolidate, merge or transfer all or substantially all of our assets; engage in transactions with affiliates; and create unrestricted subsidiaries. Many of these restrictions will terminate if the Senior Notes become rated investment grade. The Indenture also contains customary events of default, including nonpayment, breach of covenants in the Indenture, payment defaults or acceleration of other indebtedness, failure to pay certain judgments and certain events of bankruptcy and insolvency. We are required to offer to repurchase the Senior Notes in connection with specified change in control events or with excess proceeds of asset sales not applied for permitted purposes. We may redeem the Senior Notes at a redemption price of 100.0% of their principal amount plus accrued interest. Credit Facility Our Credit Facility provides revolving credit commitments of $300.0 million (with a sublimit of up to $45.0 million available for letters of credit issued for the account of the Company and certain of its domestic subsidiaries (the “U.S. Line”), of which up to $30.0 million is available to certain of our Canadian subsidiaries for loans in U.S. or Canadian dollars (with a sublimit of up to $3.0 million available for letters of credit issued for the account of our Canadian subsidiaries (the “Canadian Line”). Lender commitments under the Credit Facility, subject to certain limitations, may be increased by an additional $100.0 million . The Credit Facility matures in July 2021, but if our outstanding Notes due October 2021 are refinanced or replaced with indebtedness maturing in or after February 2023, the final maturity of the Credit Facility will automatically extend to October 2022. Availability under the Credit Facility is subject to a borrowing base calculated by reference to eligible accounts receivable in the United States, Canada and certain other jurisdictions (subject to a cap) and eligible inventory in the United States and Canada. Our borrowing capacity under the Credit Facility could be reduced or eliminated, depending on future fluctuations in our receivables and inventory. As of December 31, 2019 , our total borrowing base was $253.0 million , of which zero was drawn and $23.9 million was used for security of outstanding letters of credit, resulting in remaining availability of $229.1 million . If excess availability under the Credit Facility falls below the greater of 10.0% of the borrowing base and $20.0 million , we will be required to maintain a fixed charge coverage ratio of at least 1.00 : 1.00 as of the end of each fiscal quarter until excess availability under the Credit Facility exceeds such thresholds for at least 60 consecutive days. Borrowings under the U.S. Line bear interest at a rate equal to, at our option, either (a) the LIBOR rate or (b) a base rate determined by reference to the highest of (i) the rate of interest per annum determined from time to time by Wells Fargo as its prime rate in effect at its principal office in San Francisco, (ii) the federal funds rate plus 0.50% per annum and (iii) the one-month adjusted LIBOR plus 1.00% per annum, in each case plus an applicable margin. Borrowings under the Canadian Line bear interest at a rate equal to, at Forum Canada’s option, either (a) the CDOR rate or (b) a base rate determined by reference to the highest of (i) the prime rate for Canadian dollar commercial loans made in Canada as reported from time to time by Thomson Reuters and (ii) the CDOR rate plus 1.00% , in each case plus an applicable margin. The applicable margin for LIBOR and CDOR loans will initially range from 1.75% to 2.25% , depending upon average excess availability under the Credit Facility. After the first quarter ending on or after March 31, 2018 in which our total net leverage ratio is less than or equal to 4.00 : 1.00 , the applicable margin for LIBOR and CDOR loans will range from 1.50% to 2.00% , depending upon average excess availability under the Credit Facility. The weighted average interest rate under the Credit Facility was approximately 4.16% during the year ended December 31, 2019 . The Credit Facility also provides for a commitment fee in the amount of (a) 0.375% per annum on the unused portion of commitments if average usage of the Credit Facility is greater than 50% and (b) 0.500% per annum on the unused portion of commitments if average usage of the Credit Facility is less than or equal to 50% . After the first quarter in which our total leverage ratio is less than or equal to 4.00 : 1.00 , the commitment fees will range from 0.25% to 0.375% , depending upon average usage of the Credit Facility . Other debt Other debt consists primarily of various finance leases of equipment. Deferred loan costs The Company has incurred loan costs that have been capitalized and are amortized to interest expense over the term of the Senior Notes and the Credit Facility. As a result, approximately $1.9 million , $1.9 million and $1.7 million were amortized to interest expense for the years ended December 31, 2019 , 2018 and 2017 , respectively. Future principal payments under long-term debt for each of the years ending December 31 are as follows (in thousands): 2020 $ 806 2021 400,806 2022 441 2023 43 2024 19 Thereafter 5 Total future payment $ 402,120 Add: Unamortized debt premium 770 Less: Debt issuance cost (3,232 ) Less: present value discount on finance leases $ (79 ) Total debt $ 399,579 |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We determine if an arrangement is a lease at inception. Leases with an initial term of 12 months or less are not recorded in our consolidated balance sheets. Leases with an initial term greater than 12 months are recognized in our consolidated balance sheets based on lease classification as either operating or financing. Operating leases are included in operating lease assets, accrued liabilities and operating lease liabilities. Finance leases are included in property and equipment, current portion of long-term debt, and long-term debt. Some of our lease agreements include lease and non-lease components for which we have elected to not separate for all classes of underlying assets. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We sublease certain real estate to third parties when we have no future use for the property. Our lease portfolio primarily consists of operating leases for certain manufacturing facilities, warehouses, service facilities, office spaces, equipment and vehicles. Operating lease Right of Use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments at the commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Our leases have remaining terms of 1 year to 14 years and may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. The operating lease ROU assets also include any upfront lease payments made and exclude lease incentives and initial direct costs incurred. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The following table summarizes the supplemental balance sheet information related to leases as of December 31, 2019 (in thousands): As of Classification December 31, 2019 Assets Operating lease assets Operating lease assets 48,682 Finance lease assets Property and equipment, net of accumulated depreciation 2,085 Total lease assets 50,767 Liabilities Current Operating Accrued liabilities 12,538 Finance Current portion of long-term debt 717 Noncurrent Operating Operating lease liabilities 49,938 Finance Long-term debt, net of current portion 1,324 Total lease liabilities 64,517 The following table summarizes the components of lease expenses for the twelve months ended December 31, 2019 (in thousands): Lease Cost Classification Twelve Months Ended December 31, 2019 Operating lease cost Cost of sales and Selling, general and administrative expenses $ 13,675 Finance lease cost Amortization of leased assets Selling, general and administrative expenses 445 Interest on lease liabilities Interest expense 81 Sublease income Cost of sales and Selling, general and administrative expenses (1,635 ) Net lease cost $ 12,566 Total rent expense under operating leases was $13.7 million , $18.3 million and $19.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The maturities of lease liabilities as of December 31, 2019 are as follows (in thousands): Operating Leases Finance Leases Total 2020 $ 16,873 $ 806 $ 17,679 2021 14,064 806 14,870 2022 10,888 441 11,329 2023 7,550 43 7,593 2024 6,344 19 6,363 Thereafter 25,502 5 25,507 Total lease payments 81,221 2,120 83,341 Less: present value discount (18,745 ) (79 ) (18,824 ) Present value of lease liabilities $ 62,476 $ 2,041 $ 64,517 Future minimum lease payments under operating leases as of December 31, 2018 are as follows (in thousands): Total 2019 $ 17,536 2020 14,826 2021 12,800 2022 11,202 2023 5,701 Thereafter 15,069 Total $ 77,134 The following table summarizes the weighted-average remaining lease term and weighted average discount rates related to leases as of December 31, 2019 : Lease Term and Discount Rate December 31, 2019 Weighted-average remaining lease term (years) Operating leases 6.8 years Financing leases 2.8 years Weighted-average discount rate Operating leases 6.58 % Financing leases 6.58 % The following table summarizes the supplemental cash flow information related to leases as of December 31, 2019 : Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,679 Operating cash flows from finance leases 81 Financing cash flows from finance leases $ 1,197 Noncash activities from right-of-use assets obtained in exchange for lease obligations: Operating leases $ 9,745 Finance leases 1,822 Noncash activities from adoption of ASC 842 as of January 1, 2019 Prepaid expenses and other current assets $ (884 ) Operating lease assets 54,069 Operating lease liabilities 64,506 Accrued liabilities (11,321 ) |
Leases | Leases We determine if an arrangement is a lease at inception. Leases with an initial term of 12 months or less are not recorded in our consolidated balance sheets. Leases with an initial term greater than 12 months are recognized in our consolidated balance sheets based on lease classification as either operating or financing. Operating leases are included in operating lease assets, accrued liabilities and operating lease liabilities. Finance leases are included in property and equipment, current portion of long-term debt, and long-term debt. Some of our lease agreements include lease and non-lease components for which we have elected to not separate for all classes of underlying assets. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We sublease certain real estate to third parties when we have no future use for the property. Our lease portfolio primarily consists of operating leases for certain manufacturing facilities, warehouses, service facilities, office spaces, equipment and vehicles. Operating lease Right of Use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments at the commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Our leases have remaining terms of 1 year to 14 years and may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. The operating lease ROU assets also include any upfront lease payments made and exclude lease incentives and initial direct costs incurred. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The following table summarizes the supplemental balance sheet information related to leases as of December 31, 2019 (in thousands): As of Classification December 31, 2019 Assets Operating lease assets Operating lease assets 48,682 Finance lease assets Property and equipment, net of accumulated depreciation 2,085 Total lease assets 50,767 Liabilities Current Operating Accrued liabilities 12,538 Finance Current portion of long-term debt 717 Noncurrent Operating Operating lease liabilities 49,938 Finance Long-term debt, net of current portion 1,324 Total lease liabilities 64,517 The following table summarizes the components of lease expenses for the twelve months ended December 31, 2019 (in thousands): Lease Cost Classification Twelve Months Ended December 31, 2019 Operating lease cost Cost of sales and Selling, general and administrative expenses $ 13,675 Finance lease cost Amortization of leased assets Selling, general and administrative expenses 445 Interest on lease liabilities Interest expense 81 Sublease income Cost of sales and Selling, general and administrative expenses (1,635 ) Net lease cost $ 12,566 Total rent expense under operating leases was $13.7 million , $18.3 million and $19.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The maturities of lease liabilities as of December 31, 2019 are as follows (in thousands): Operating Leases Finance Leases Total 2020 $ 16,873 $ 806 $ 17,679 2021 14,064 806 14,870 2022 10,888 441 11,329 2023 7,550 43 7,593 2024 6,344 19 6,363 Thereafter 25,502 5 25,507 Total lease payments 81,221 2,120 83,341 Less: present value discount (18,745 ) (79 ) (18,824 ) Present value of lease liabilities $ 62,476 $ 2,041 $ 64,517 Future minimum lease payments under operating leases as of December 31, 2018 are as follows (in thousands): Total 2019 $ 17,536 2020 14,826 2021 12,800 2022 11,202 2023 5,701 Thereafter 15,069 Total $ 77,134 The following table summarizes the weighted-average remaining lease term and weighted average discount rates related to leases as of December 31, 2019 : Lease Term and Discount Rate December 31, 2019 Weighted-average remaining lease term (years) Operating leases 6.8 years Financing leases 2.8 years Weighted-average discount rate Operating leases 6.58 % Financing leases 6.58 % The following table summarizes the supplemental cash flow information related to leases as of December 31, 2019 : Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,679 Operating cash flows from finance leases 81 Financing cash flows from finance leases $ 1,197 Noncash activities from right-of-use assets obtained in exchange for lease obligations: Operating leases $ 9,745 Finance leases 1,822 Noncash activities from adoption of ASC 842 as of January 1, 2019 Prepaid expenses and other current assets $ (884 ) Operating lease assets 54,069 Operating lease liabilities 64,506 Accrued liabilities (11,321 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before income taxes for the years ended December 31, 2019 , 2018 and 2017 are as follows (in thousands): 2019 2018 2017 U.S. $ (532,363 ) $ (285,141 ) $ (3,015 ) Non-U.S. (36,508 ) (104,613 ) (52,264 ) Loss before income taxes $ (568,871 ) $ (389,754 ) $ (55,279 ) The components of income tax expense (benefit) for the years ended December 31, 2019 , 2018 and 2017 are as follows (in thousands): 2019 2018 2017 Current U.S. federal and state $ (1,423 ) $ (6,932 ) $ (1,426 ) Non-U.S. 12,594 4,810 5,398 Total current 11,171 (2,122 ) 3,972 Deferred U.S. federal and state 3,580 (21,467 ) 6,415 Non-U.S. (16,565 ) 7,915 (6,266 ) Total deferred (12,985 ) (13,552 ) 149 Income tax expense (benefit) $ (1,814 ) $ (15,674 ) $ 4,121 The reconciliation between the actual provision for income taxes from continuing operations and that computed by applying the U.S. statutory rate to income before income taxes and noncontrolling interests are outlined below (in thousands): 2019 2018 2017 Income tax expense at the statutory rate $ (119,463 ) (21.0 )% $ (81,849 ) (21.0 )% $ (19,348 ) (35.0 )% State taxes, net of federal tax benefit (5,846 ) (1.0 )% (2,564 ) (0.7 )% (294 ) (0.5 )% Non-U.S. operations (4,023 ) (0.7 )% (10,166 ) (2.6 )% 6,337 11.5 % Domestic incentives (633 ) (0.1 )% (286 ) (0.1 )% (254 ) (0.5 )% Prior year federal, non-U.S. and state tax 257 — % (2,880 ) (0.7 )% (1,283 ) (2.3 )% Nondeductible expenses 348 0.1 % 502 0.1 % 644 1.2 % Goodwill impairment 27,244 4.8 % 46,051 11.8 % 14,731 26.6 % Global Tubing acquisition — — % — — % (9,160 ) (16.6 )% U.S. tax reform — — % (15,604 ) (4.0 )% 10,138 18.3 % Valuation allowance 98,900 17.4 % 50,005 12.8 % 4,523 8.2 % Other 1,402 0.2 % 1,117 0.4 % (1,913 ) (3.4 )% Income tax expense (benefit) $ (1,814 ) (0.3 )% $ (15,674 ) (4.0 )% $ 4,121 7.5 % Our effective tax rate was (0.3)% , (4.0)% , and 7.5% for the years ended December 31, 2019 , 2018 and 2017 , respectively. For the year ended December 31, 2019 , we recognized the following significant items impacting our effective tax rate: – $27.2 million of tax expense associated with the impairment of non-tax deductible goodwill, and – $98.9 million of tax expense consisting of a full valuation allowance against our deferred tax assets in the U.S, U.K., Germany, Singapore and Saudi Arabia, as further described below under the primary components of deferred taxes. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act of 2017, a comprehensive U.S. tax reform package that, effective January 1, 2018, among other things, lowered the corporate income tax rate from 35% to 21% and moved the country towards a territorial tax system with a one-time mandatory tax on previously deferred earnings of non-U.S. subsidiaries. The effects of U.S. tax reform on us include two major categories: (i) recognition of liabilities for taxes on mandatory deemed repatriation and (ii) re-measurement of deferred taxes. In 2017, we recorded provisional amounts as an estimate of federal and state tax related to the effects of U.S. tax reform including the recognition of liabilities for taxes on mandatory deemed repatriation of non-U.S. earnings of $27.7 million and a $17.6 million tax benefit for the re-measurement of deferred taxes based on the new 21% U.S. corporate tax rate, resulting in a net $10.1 million provisional net tax charge for the year. During 2018, we completed our analysis of the impact of U.S. tax reform based on further guidance provided on the new tax law by the U.S. Treasury Department and Internal Revenue Service. We finalized our accounting for the effects of U.S. tax reform during 2018 based on the additional guidance issued and recognized an income tax benefit of $15.6 million resulting in an overall net tax benefit related to U.S. tax reform of $5.5 million . The primary components of deferred taxes include (in thousands): 2019 2018 Deferred tax assets Reserves and accruals $ 4,590 $ 7,259 Operating lease liabilities 14,912 — Inventory 16,429 18,694 Stock awards 5,185 5,637 Net operating loss and other tax carryforwards 83,325 66,098 Goodwill and intangible assets 45,528 — Other 1,150 549 Gross deferred tax assets 171,119 98,237 Valuation allowance (152,795 ) (54,441 ) Total deferred tax assets 18,324 43,796 Deferred tax liabilities Property and equipment (7,733 ) (9,565 ) Operating lease assets (12,006 ) — Goodwill and intangible assets — (42,502 ) Investment in unconsolidated subsidiary — (5,402 ) Prepaid expenses and other (396 ) (392 ) Total deferred tax liabilities (20,135 ) (57,861 ) Net deferred tax liabilities $ (1,811 ) $ (14,065 ) Goodwill from certain acquisitions is tax deductible due to the acquisition structure as an asset purchase or due to tax elections made by the Company and the respective sellers at the time of acquisition. We have deferred tax assets related to net operating loss and other tax carryforwards in the U.S., and in certain states and foreign jurisdictions. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. At December 31, 2019 , we had $238.3 million of U.S. net operating loss carryforwards and $7.5 million of state net operating losses. Of these losses, $151.1 million will expire no later than 2037 if they are not utilized prior to that date. The remaining $94.7 million will not expire. We also had $155.4 million of non-U.S. net operating loss carryforwards with indefinite expiration dates. The ultimate realization of income tax benefits for these net operating loss carryforwards depends on our ability to generate sufficient taxable income in the respective taxing jurisdictions. Where we have unrecognized tax benefits in jurisdictions with existing net operating losses, we utilize the unrecognized tax benefits as a source of income to offset such losses. We do not anticipate being able to fully utilize all of the losses prior to their expiration in the following jurisdictions: the U.S, the U.K, Germany, Singapore and Saudi Arabia. During 2019, we recognized $98.9 million of tax expense related to the increase in our valuation allowance provided against our deferred tax assets to write down our deferred tax assets in these jurisdictions to what is more likely than not realizable. We increased our valuation allowance related to our U.S. and foreign deferred tax assets by $98.0 million and $0.9 million , respectively. In making such a determination for each of these jurisdictions, we considered all available positive and negative evidence, including our recent history of pretax losses over the prior three year period, the goodwill and intangible asset impairments for various reporting units, the future reversals of existing taxable temporary differences, the projected future taxable income or loss, including the effect of U.S. tax reform, and tax-planning. Deferred tax liabilities arising from the difference between the financial reporting and income tax bases inherent in our foreign subsidiaries, referred to as outside basis differences, have not been provided for U.S. income tax purposes because we do not intend to sell, liquidate or otherwise trigger the recognition of U.S. taxable income with regard to our investment in these foreign subsidiaries. Determining the amount of U.S. deferred tax liabilities associated with outside basis differences is not practicable at this time. We file income tax returns in the U.S. as well as in various states and non-U.S. jurisdictions. With few exceptions, we are no longer subject to income tax examination by tax authorities in these jurisdictions prior to 2013. We account for uncertain tax positions in accordance with guidance in FASB ASC 740, which prescribes the minimum recognition threshold a tax position taken or expected to be taken in a tax return is required to meet before being recognized in the financial statements. A reconciliation of the beginning and ending amount of uncertain tax positions is as follows (in thousands): Balance at January 1, 2019 $ 13,254 Additional based on tax positions related to prior years 2,069 Additional based on tax positions related to current year 2,057 Reduction based on tax positions related to prior years (666 ) Settlement with tax authorities (100 ) Lapse of statute of limitations (2,048 ) Balance at December 31, 2019 14,566 The total amount of unrecognized tax benefits at December 31, 2019 was $14.6 million , of which it is reasonably possible that $1.8 million could be settled during the next twelve-month period as a result of the conclusion of various tax audits or due to the expiration of the applicable statute of limitations. We estimate that $12.5 million of the unrecognized tax benefits at December 31, 2019 , excluding consideration of valuation allowance, would impact our future effective income tax rate, if recognized. We recognize interest and penalties related to uncertain tax positions within the provision for income taxes in the consolidated statements of comprehensive loss . As of December 31, 2019 and 2018 , we had accrued approximately $0.3 million and $0.3 million in interest and penalties, respectively. During the years ended December 31, 2019 and 2018 , we recognized no material change in the interest and penalties related to uncertain tax positions. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements At December 31, 2019 the Company had no balance outstanding under the Credit Facility, and at December 31, 2018 , the Company had $119.0 million of debt outstanding under the Credit Facility. The Credit Facility incurs interest at a variable interest rate and therefore, the carrying amount approximates fair value. The fair value of the debt is classified as a Level 2 measurement because interest rates charged are similar to other financial instruments with similar terms and maturities. The fair value of the Company’s Senior Notes is estimated using Level 2 inputs in the fair value hierarchy and is based on quoted prices for those or similar instruments. At December 31, 2019 , the fair value and the carrying value of the Company’s unsecured Senior Notes approximated $354.0 million and $397.5 million , respectively. At December 31, 2018 , the fair value and the carrying value of the Company’s unsecured Senior Notes approximated $362.0 million and $398.1 million , respectively. There were no other significant outstanding financial instruments as of December 31, 2019 and 2018 that required measuring the amounts at fair value on a recurring basis. The Company did not change its valuation techniques associated with recurring fair value measurements from prior periods and there were no transfers between levels of the fair value hierarchy during the year ended December 31, 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation In the ordinary course of business, the Company is, and in the future, could be involved in various pending or threatened legal actions, some of which may or may not be covered by insurance. Management has reviewed such pending judicial and legal proceedings, the reasonably anticipated costs and expenses in connection with such proceedings, and the availability and limits of insurance coverage, and has established reserves that are believed to be appropriate in light of those outcomes that are believed to be probable and can be estimated. The reserves accrued at December 31, 2019 and 2018 are immaterial. In the opinion of management, the Company’s ultimate liability, if any, with respect to these actions is not expected to have a material adverse effect on the Company’s financial position, results of operations or cash flows. Asbestos litigation One of our subsidiaries has been named as one of many defendants in a number of product liability claims for alleged exposure to asbestos. These lawsuits are typically filed on behalf of plaintiffs who allege exposure to asbestos, against numerous defendants, often forty or more, who are alleged to have manufactured or distributed products containing asbestos. The injuries alleged by plaintiffs in these cases range from mesothelioma and other cancers to asbestosis. The earliest claims against our subsidiary were filed in New Jersey in 1998, and our subsidiary currently has active cases in Missouri, New Jersey, New York, Illinois, Delaware, and Pennsylvania. These complaints do not typically include requests for a specific amount of damages. Our subsidiary acquired the trademark for the product line in question in 1985. To date, the claims against our subsidiary alleging illnesses due to asbestos have generally been based on products manufactured by the previous owner prior to 1985 that are alleged to have contained asbestos. Many claimants alleging illnesses due to asbestos sue on the basis of exposure prior to 1985, as by that date the hazards of asbestos exposure were well known and asbestos had begun to fall into disuse. Our subsidiary has been successful in obtaining dismissals in most lawsuits without any cash contribution including because the “successor liability” law in most states does not hold a purchaser in good faith liable for the actions of the seller prior to the acquisition date unless the purchaser contractually assumed the liabilities, which our subsidiary did not. There are exceptions to the successor liability doctrine in many states, so there are no assurances that our subsidiary will not be found liable for the actions of its predecessor. The law in other states on so called “successor liability” may be different or ambiguous in this regard, and could also expose our subsidiary to liability. Our subsidiary could also be found liable should a trier of fact reject our subsidiary’s position that it is not responsible for the alleged asbestos injuries. To date, asbestos claims have not had a material adverse effect on our business, financial condition, results of operations, or cash flow, as our annual out-of-pocket costs over the last five years has been less than $200,000 . There were fewer than 25 new cases filed against our subsidiary in each of last two years, and a significant number of existing cases were dismissed, settled or otherwise disposed of over the last year. We currently have fewer than 150 lawsuits pending against this subsidiary. Our subsidiary has over $17 million in face amount of insurance per occurrence and over $23 million of aggregate primary insurance coverage. In addition, our subsidiary has over $950 million in face amount of excess coverage applicable to the claims. There can be no guarantee that all of this can be collected due to policy terms and conditions and insurer insolvencies in the past or in the future. In January 2011, we entered into an agreement with seven of our primary insurers under which they have agreed to pay 80% of the costs of handling and settling each asbestos claim against the affected subsidiary. The insurers’ portion of the settlements is funded by our aggregate primary limits, which are eroded only by settlements and not legal fees. Approximately $2.0 million in settlements has been paid by insurers and our subsidiary to date, with approximately $40,000 paid over the course of the last two years. Our subsidiary and the subscribing insurers have the right to withdraw from this agreement, but to date, no party has exercised this right or expressed an intent to do so. Portland Harbor Superfund litigation In May 2009, one of the Company’s subsidiaries (which is presently a dormant company with nominal assets except for rights under insurance policies) was named along with many defendants in a suit filed by the Port of Portland, Oregon seeking reimbursement of costs related to a five-year study of contaminated sediments at the port. In March 2010, the subsidiary also received a notice letter from the Environmental Protection Agency indicating that it had been identified as a potentially responsible party with respect to environmental contamination in the “study area” for the Portland Harbor Superfund Site. Under a 1997 indemnity agreement, the subsidiary is indemnified by a third party with respect to losses relating to environmental contamination. As required under the indemnity agreement, the subsidiary provided notice of these claims, and the indemnitor has assumed responsibility and is providing a defense of the claims. Although the Company believes that it is unlikely that the subsidiary contributed to the contamination at the Portland Harbor Superfund Site, the potential liability of the subsidiary and the ability of the indemnitor to fulfill its indemnity obligations cannot be quantified at this time. Operating leases The Company has operating leases for warehouses, office space, manufacturing facilities and equipment. The leases generally require the Company to pay certain expenses including taxes, insurance, maintenance, and utilities. See Note 9 Leases for further information. Letters of credit and guarantees The Company executes letters of credit in the normal course of business to secure the delivery of product from specific vendors and also to guarantee the Company fulfilling certain performance obligations relating to certain large contracts. At December 31, 2019 , the Company had $24.5 million |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The reconciliation of basic and diluted earnings per share for each period presented was as follows (dollars and shares in thousands, except per share amounts): Year ended December 31, 2019 2018 2017 Net loss attributable to common stockholders $ (567,057 ) $ (374,080 ) $ (59,400 ) Basic - weighted average shares outstanding 110,100 108,771 98,689 Dilutive effect of stock options and restricted stock — — — Diluted - weighted average shares outstanding 110,100 108,771 98,689 Loss per share Basic $ (5.15 ) $ (3.44 ) $ (0.60 ) Diluted $ (5.15 ) $ (3.44 ) $ (0.60 ) |
Stockholders' Equity and Employ
Stockholders' Equity and Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity and Employee Benefit Plans Disclosure [Abstract] | |
Stockholders' Equity and Employee Benefit Plans | Stockholders' Equity and Employee Benefit Plans Shares issued for Acquisition On January 9, 2017, the Company issued 196,249 shares of common stock to acquire 100% of the general partnership interests of Innovative Valve Components. On October 2, 2017, the Company issued 11.5 million shares of common stock to acquire the remaining membership interests in Global Tubing. Refer to Note 4 Acquisitions & Dispositions for further details on these acquisitions. Employee benefit plans We sponsor a 401(k) savings plan for U.S. employees and related savings plans for certain non-U.S. employees. These plans benefit eligible employees by allowing them the opportunity to make contributions up to certain limits. We contribute by matching a percentage of each employee’s contributions. Subsequent to the closing of all acquisitions, employees of those acquired entities will generally be eligible to participate in the Company’s 401(k) savings plan. We also have the discretion to provide a profit sharing contribution to each participant depending on the Company’s performance for the applicable year. The expense under the Company’s plan was $5.8 million , $6.2 million , and $5.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. We have an Employee Stock Purchase Plan, which allows eligible employees to purchase shares of the Company’s common stock at six -month intervals through periodic payroll deductions at a price per share equal to 85.0% of the lower of the fair market value at the beginning and ending of the six -month intervals. Following the fourth quarter of 2019, this plan was suspended. Stock repurchases In October 2014, the board of directors approved a program for the repurchase of outstanding shares of the Company’s common stock with an aggregate purchase price of up to $150.0 million . We have repurchased approximately 4.5 million shares (primarily in 2014) under this program for aggregate consideration of approximately $100.2 million |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation FET stock based compensation plan In August 2010, we created the 2010 Stock Incentive Plan (the “2010 Plan”) to allow for employees, directors and consultants of the Company and its subsidiaries to maintain stock ownership in the Company through the award of stock options, restricted stock, restricted stock units or any combination thereof. Under the terms of the 2010 Plan, a total of 18.5 million shares were authorized for awards. In May 2016, we created a new 2016 Stock and Incentive Plan (the “2016 Plan”). Under the terms of the 2016 Plan, the aggregate number of shares that may be issued may not exceed the number of shares reserved but not issued under the 2010 Plan as of May 17, 2016, the effective date of the 2016 plan, a total of 5.7 million shares. No further awards will be made under the 2010 Plan after such date, and outstanding awards granted under the 2010 Plan shall continue to be outstanding. In May 2019, we amended and restated the 2016 Plan to add an additional 2.9 million shares and revised certain terms of the 2016 Plan (the “2016 Amended Plan”). Approximately 4.8 million shares remained available under the 2016 Amended Plan for future grants as of December 31, 2019 . The total amount of stock based compensation expense recorded was approximately $15.8 million , $19.9 million and $20.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , the Company expects to record stock based compensation expense of approximately $19.2 million over a weighted average remaining term of approximately two years . Future grants will result in additional compensation expense. Stock options The exercise price of each option is based on the fair market value of the Company’s stock at the date of grant. Options generally have a ten -year life and vest annually in equal increments over four years . Our policy for issuing stock upon a stock option exercise is to issue new shares. Compensation expense is recognized on a straight line basis over the vesting period. The following tables provide additional information related to stock options: 2019 Activity Number of shares Weighted average exercise price Remaining weighted average contractual life in years Intrinsic value Beginning balance 5,740 $ 12.39 3.7 $ — Granted — $ — Exercised — $ — Forfeited/expired (364 ) $ 13.05 Total outstanding 5,376 $ 12.35 2.5 $ — Options exercisable 5,033 $ 12.29 2.2 $ — The intrinsic value is the amount by which the fair value of the underlying share exceeds the exercise price of the stock option. No stock options were exercised in 2019 . The intrinsic value of stock options exercised in 2018 and 2017 was $0.2 million and $1.6 million , respectively. As of December 31, 2019 and 2018 , the share price of the Company was less than the exercise price for all outstanding stock options. Therefore, the intrinsic value for stock options outstanding and exercisable were both zero . No stock options were granted in 2019 . The assumptions used in the Black-Scholes pricing model to estimate the fair value of stock options granted in 2018 and 2017 are as follows: 2019 2018 2017 Weighted average fair value n/a $5.62 $8.95 Assumptions Expected life (in years) n/a 6.25 6.25 Volatility n/a 44% 43% Dividend yield n/a —% —% Risk free interest rate n/a 2.74% 2.11% Restricted stock Restricted stock generally vests over a three or four year period from the date of grant. The following table provides additional information related to our restricted stock: 2019 Activity Restricted stock (shares in thousands) Nonvested at beginning of year 195 Granted 150 Vested (135 ) Forfeited (2 ) Nonvested at the end of year 208 The weighted average grant date fair value of the restricted stock was $6.59 , $12.00 and $19.00 per share during the years ended December 31, 2019 , 2018 and 2017 , respectively. The total fair value of shares vested was $1.5 million during 2019 , $1.7 million during 2018 and $2.3 million during 2017 . Restricted stock units Restricted stock units generally vest over a three or four year period from the date of grant. The following table provides additional information related to our restricted stock units: 2019 Activity Restricted stock units (shares in thousands) Nonvested at beginning of year 2,455 Granted 1,227 Vested (905 ) Forfeited (588 ) Nonvested at the end of year 2,189 The weighted average grant date fair value of the restricted stock units was $ 6.54 , $10.54 and $17.97 per share during the years ended December 31, 2019 , 2018 and 2017 , respectively. The total fair value of units vested was $11.8 million , $14.2 million , and $10.0 million during 2019 , 2018 and 2017 , respectively. Performance share awards During 2019 , we granted 390,896 performance share awards with service-vesting and market-vesting conditions. These awards may settle between zero and two shares of the Company’s common stock for each performance share unit awarded. The number of shares issued for the 2019 performance share awards will be determined based on the total shareholder return of the Company’s common stock as compared to a group of peer companies measured over a three -year performance period. Stock appreciation rights In the fourth quarter of 2019 , we granted stock appreciation rights with service-vesting and market-vesting conditions. The following table provides additional information related to our stock appreciation rights: 2019 Activity Stock Appreciation Rights (in thousands) Nonvested at beginning of year — Granted 6,352 Forfeited — Nonvested at the end of year 6,352 The grant date fair value of the stock appreciation rights was $0.19 . The stock appreciation rights will vest on the third anniversary from the grant date if the a verage closing price of a share of our Common Stock over the twenty trading days prior to the third anniversary date (the “Ending Market Value”) is equal to or greater than $5.00 . If vested, the stock appreciation rights will ultimately be settled for the difference between the Ending Market Value and the exercise price of $1.45 . The stock appreciation rights, if vested, may be settled in stock or cash. If vested, we intend to settle the stock appreciation rights in stock. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments In the first quarter of 2019, we changed our reporting segments to align with business activity drivers and the manner in which management reviews and evaluates operating performance. Forum now operates in the following three reporting segments: Drilling & Downhole, Completions and Production, and we believe that this reporting segment structure better aligns with the key phases of the well cycle and provides improved operating efficiencies. Prior to this change, we operated in three business segments: Drilling & Subsea, Completions, and Production & Infrastructure. We have moved the Downhole product line from Completions to Drilling & Subsea to form the new Drilling & Downhole segment. Completions retains the Stimulation & Intervention and Coiled Tubing product lines. Finally, we renamed Production & Infrastructure the Production segment. Our historical results of operations have been recast to retrospectively reflect these changes in accordance with generally accepted accounting principles. The Drilling & Downhole segment designs and manufactures products and provides related services to the drilling, well construction, artificial lift and subsea energy construction and services markets as well as other markets such as alternative energy, defense and communications. The Completions segment designs, manufactures and supplies products and provides related services to the coiled tubing, stimulation and intervention markets. The Production segment designs, manufactures and supplies products, and provides related equipment and services for production and infrastructure markets. The Company’s reportable segments are strategic units that offer distinct products and services. They are managed separately since each business segment requires different marketing strategies. Operating segments have not been aggregated as part of a reportable segment. The Company evaluates the performance of its reportable segments based on operating income. This segmentation is representative of the manner in which our Chief Operating Decision Maker and our board of directors view the business. We consider the Chief Operating Decision Maker to be the Chief Executive Officer. The amounts indicated below as “Corporate” relate to costs and assets not allocated to the reportable segments. Summary financial data by segment follows (in thousands): Year ended December 31, 2019 2018 2017 Revenue: Drilling & Downhole $ 334,829 $ 334,019 $ 310,523 Completions 305,089 373,107 184,182 Production 320,996 361,407 327,287 Eliminations (4,381 ) (4,314 ) (3,372 ) Total revenue $ 956,533 $ 1,064,219 $ 818,620 Segment operating income (loss): Drilling & Downhole $ 7,343 $ (33,335 ) $ (47,106 ) Completions 6,581 31,924 8,797 Production 7,802 6,022 7,811 Corporate (28,928 ) (35,079 ) (33,427 ) Total segment operating loss (7,202 ) (30,468 ) (63,925 ) Impairments of goodwill, intangible assets, property and equipment 532,336 363,522 69,062 Transaction expenses 1,159 3,446 6,511 Contingent consideration benefit (4,629 ) — — Loss (gain) on disposal of assets and other 78 (438 ) 2,097 Operating loss $ (536,146 ) $ (396,998 ) $ (141,595 ) Depreciation and amortization Drilling & Downhole $ 21,433 $ 31,985 $ 38,463 Completions 32,780 33,943 17,631 Production 8,478 8,407 8,608 Corporate 550 173 427 Total depreciation and amortization $ 63,241 $ 74,508 $ 65,129 A summary of capital expenditures by reportable segment is as follows (in thousands): Year ended December 31, Capital expenditures 2019 2018 2017 Drilling & Downhole $ 3,169 $ 8,067 $ 7,093 Completions 3,886 4,997 4,789 Production 4,041 4,877 6,855 Corporate 4,006 6,102 7,972 Total capital expenditures $ 15,102 $ 24,043 $ 26,709 A summary of consolidated assets by reportable segment is as follows (in thousands): Year ended December 31, Assets 2019 2018 2017 Drilling & Downhole $ 407,779 $ 663,414 $ 1,057,378 Completions 496,714 872,731 790,255 Production 186,786 243,354 251,685 Corporate 68,718 50,153 95,910 Total assets $ 1,159,997 $ 1,829,652 $ 2,195,228 Corporate assets primarily include cash, certain prepaid expenses and deferred loan costs. A summary of long-lived assets by country is as follows (in thousands): Year ended December 31, Long-lived assets: 2019 2018 2017 United States $ 397,219 $ 868,295 $ 1,087,381 Europe 54,519 100,451 213,008 Canada 32,703 87,221 88,280 Asia-Pacific 1,707 984 7,984 Middle East 5,653 6,049 7,362 Latin America 2,279 635 832 Total long-lived assets $ 494,080 $ 1,063,635 $ 1,404,847 The following table presents our revenues disaggregated by geography based on shipping destination (in thousands): Year ended December 31, 2019 2018 2017 Revenue: $ % $ % $ % United States $ 670,205 70.1 % $ 811,724 76.3 % $ 621,445 76.0 % Canada 62,651 6.5 % 68,635 6.4 % 60,898 7.4 % Europe & Africa 71,527 7.5 % 57,632 5.4 % 61,134 7.5 % Middle East 62,169 6.5 % 54,541 5.1 % 25,634 3.1 % Asia-Pacific 59,517 6.2 % 46,503 4.4 % 28,694 3.5 % Latin America 30,464 3.2 % 25,184 2.4 % 20,815 2.5 % Total Revenue $ 956,533 100.0 % $ 1,064,219 100.0 % $ 818,620 100.0 % The following table presents our revenues disaggregated by product line (in thousands): Year ended December 31, 2019 2018 2017 Revenue: $ % $ % $ % Drilling Technologies $ 157,648 16.6 % $ 178,260 16.6 % $ 168,816 20.6 % Downhole Technologies 116,104 12.1 % 104,974 9.9 % 76,010 9.3 % Subsea Technologies 61,077 6.4 % 50,785 4.8 % 65,697 8.0 % Stimulation and Intervention 162,025 16.9 % 228,721 21.5 % 148,666 18.2 % Coiled Tubing 143,064 15.0 % 144,386 13.6 % 35,516 4.3 % Production Equipment 122,654 12.8 % 141,169 13.3 % 124,323 15.2 % Valve Solutions 198,342 20.7 % 220,238 20.7 % 202,964 24.8 % Eliminations (4,381 ) (0.5 )% (4,314 ) (0.4 )% (3,372 ) (0.4 )% Total revenue $ 956,533 100.0 % $ 1,064,219 100.0 % $ 818,620 100.0 % |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements The Senior Notes are guaranteed by our domestic subsidiaries which are 100% owned, directly or indirectly, by the Company. The guarantees are full and unconditional, joint and several and on an unsecured basis. Condensed consolidating statements of comprehensive loss Year ended December 31, 2019 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 811,566 $ 211,665 $ (66,698 ) $ 956,533 Cost of sales — 614,429 162,715 (65,463 ) 711,681 Gross Profit — 197,137 48,950 (1,235 ) 244,852 Operating Expenses Selling, general and administrative expenses 69 208,862 42,805 — 251,736 Goodwill and intangible assets impairment — 487,212 45,124 — 532,336 Transaction Expenses — 1,067 92 — 1,159 Contingent consideration benefit — (4,629 ) — — (4,629 ) Loss (gain) on disposal of assets and other — 201 (123 ) — 78 Total operating expenses 69 692,713 87,898 — 780,680 Earnings (loss) from equity investment — (668 ) 350 — (318 ) Equity loss from affiliate, net of tax (535,435 ) (53,778 ) — 589,213 — Operating loss (535,504 ) (550,022 ) (38,598 ) 587,978 (536,146 ) Other expense (income) Interest expense (income) 31,553 (84 ) 149 — 31,618 Foreign exchange and other losses (gains), net — (138 ) 5,160 — 5,022 (Gain) loss realized on previously held equity investment — (14,045 ) 12,478 — (1,567 ) Gain on disposition of Business — (2,348 ) — — (2,348 ) Total other (income) expense, net 31,553 (16,615 ) 17,787 — 32,725 Loss before income taxes (567,057 ) (533,407 ) (56,385 ) 587,978 (568,871 ) Income tax expense (benefit) — 2,028 (3,842 ) — (1,814 ) Net loss (567,057 ) (535,435 ) (52,543 ) 587,978 (567,057 ) Other comprehensive income (loss), net of tax: Net loss (567,057 ) (535,435 ) (52,543 ) 587,978 (567,057 ) Change in foreign currency translation, net of tax of $0 7,958 7,958 7,958 (15,916 ) 7,958 Loss on pension liability (1,666 ) (1,666 ) (1,666 ) 3,332 (1,666 ) Comprehensive loss $ (560,765 ) $ (529,143 ) $ (46,251 ) $ 575,394 $ (560,765 ) Condensed consolidating statements of comprehensive loss Year ended December 31, 2018 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 936,319 $ 187,647 $ (59,747 ) $ 1,064,219 Cost of sales — 717,519 151,787 (61,459 ) 807,847 Gross Profit — 218,800 35,860 1,712 256,372 Operating Expenses Selling, general and administrative expenses — 231,492 55,488 — 286,980 Goodwill and intangible assets impairment — 233,635 129,887 — 363,522 Transaction Expenses — 2,926 520 — 3,446 Loss (gain) on disposal of assets and other — (1,274 ) 836 — (438 ) Total operating expenses — 466,779 186,731 — 653,510 Earnings (loss) from equity investment — 529 (389 ) — 140 Equity loss from affiliate, net of tax (348,557 ) (118,601 ) — 467,158 — Operating loss (348,557 ) (366,051 ) (151,260 ) 468,870 (396,998 ) Other expense (income) Interest expense 32,307 158 67 — 32,532 Foreign exchange and other gains, net — (296 ) (5,974 ) — (6,270 ) (Gain) loss on contribution of subsea rentals business — 5,856 (39,362 ) — (33,506 ) Total other (income) expense, net 32,307 5,718 (45,269 ) — (7,244 ) Loss before income taxes (380,864 ) (371,769 ) (105,991 ) 468,870 (389,754 ) Income tax expense (benefit) (6,784 ) (23,212 ) 14,322 — (15,674 ) Net loss (374,080 ) (348,557 ) (120,313 ) 468,870 (374,080 ) Other comprehensive income (loss), net of tax: Net loss (374,080 ) (348,557 ) (120,313 ) 468,870 (374,080 ) Change in foreign currency translation, net of tax of $0 (24,752 ) (24,752 ) (24,752 ) 49,504 (24,752 ) Gain on pension liability 1,489 1,489 1,489 (2,978 ) 1,489 Comprehensive loss $ (397,343 ) $ (371,820 ) $ (143,576 ) $ 515,396 $ (397,343 ) Condensed consolidating statements of comprehensive loss Year ended December 31, 2017 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 703,409 $ 182,417 $ (67,206 ) $ 818,620 Cost of sales — 550,931 145,743 (66,842 ) 629,832 Gross Profit — 152,478 36,674 (364 ) 188,788 Operating Expenses Selling, general and administrative expenses — 205,672 48,041 — 253,713 Goodwill and intangible assets impairment — 33,301 35,761 — 69,062 Transaction Expenses — 6,521 (10 ) — 6,511 Loss on disposal of assets and other — 1,981 116 — 2,097 Total operating expenses — 247,475 83,908 — 331,383 Earnings from equity investment — 1,000 — — 1,000 Equity loss from affiliate, net of tax (41,253 ) (53,682 ) — 94,935 — Operating loss (41,253 ) (147,679 ) (47,234 ) 94,571 (141,595 ) Other expense (income) Interest expense (income) 27,919 (569 ) (542 ) — 26,808 Foreign exchange and other losses (gains), net — (118 ) 7,386 — 7,268 Gain realized on previously held equity investment — (120,392 ) — — (120,392 ) Total other (income) expense, net 27,919 (121,079 ) 6,844 — (86,316 ) Loss before income taxes (69,172 ) (26,600 ) (54,078 ) 94,571 (55,279 ) Income tax expense (benefit) (9,772 ) 14,653 (760 ) — 4,121 Net loss (59,400 ) (41,253 ) (53,318 ) 94,571 (59,400 ) Other comprehensive income (loss), net of tax: Net loss (59,400 ) (41,253 ) (53,318 ) 94,571 (59,400 ) Change in foreign currency translation, net of tax of $0 36,163 36,163 36,163 (72,326 ) 36,163 Gain on pension liability 107 107 107 (214 ) 107 Comprehensive loss (23,130 ) (4,983 ) (17,048 ) 22,031 (23,130 ) Condensed consolidating balance sheets December 31, 2019 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets Current assets Cash and cash equivalents $ — $ 32,387 $ 25,524 $ — $ 57,911 Accounts receivable—trade, net — 116,862 37,320 — 154,182 Inventories, net — 344,920 78,047 (8,327 ) 414,640 Prepaid expenses and other current assets — 31,485 2,335 — 33,820 Costs and estimated profits in excess of billings — 4,029 75 — 4,104 Accrued revenue — 428 832 — 1,260 Total current assets — 530,111 144,133 (8,327 ) 665,917 Property and equipment, net of accumulated depreciation — 133,974 20,862 — 154,836 Deferred financing costs, net 1,243 — — — 1,243 Operating lease assets — 29,518 19,164 — 48,682 Intangible assets — 245,507 26,793 — 272,300 Goodwill — — — — — Investment in unconsolidated subsidiary — — — — — Deferred income taxes, net — — 654 — 654 Other long-term assets — 6,682 9,683 — 16,365 Investment in affiliates 348,623 218,228 — (566,851 ) — Long-term advances to affiliates 541,351 — 116,053 (657,404 ) — Total assets $ 891,217 $ 1,164,020 $ 337,342 $ (1,232,582 ) $ 1,159,997 Liabilities and equity Current liabilities Current portion of long-term debt $ — $ 566 $ 151 $ — $ 717 Accounts payable—trade — 75,999 22,721 — 98,720 Accrued liabilities 7,640 35,746 43,239 — 86,625 Deferred revenue — 1,616 3,261 — 4,877 Billings in excess of costs and profits recognized — 787 5,124 — 5,911 Total current liabilities 7,640 114,714 74,496 — 196,850 Long-term debt, net of current portion 397,538 1,128 196 — 398,862 Deferred income taxes, net — — 2,465 — 2,465 Operating Lease liabilities — 29,896 20,042 — 49,938 Other long-term liabilities — 12,255 13,588 — 25,843 Long-term payables to affiliates — 657,404 — (657,404 ) — Total liabilities 405,178 815,397 110,787 (657,404 ) 673,958 — Total equity 486,039 348,623 226,555 (575,178 ) 486,039 Total liabilities and equity $ 891,217 $ 1,164,020 $ 337,342 $ (1,232,582 ) $ 1,159,997 Condensed consolidating balance sheets December 31, 2018 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets Current assets Cash and cash equivalents $ — $ 24,977 $ 22,264 $ — $ 47,241 Accounts receivable—trade, net — 177,986 28,069 — 206,055 Inventories, net — 416,237 69,878 (7,092 ) 479,023 Prepaid expenses and other current assets — 23,585 92 — 23,677 Costs and estimated profits in excess of billings — 6,202 2,957 — 9,159 Accrued revenue — — 862 — 862 Total current assets — 648,987 124,122 (7,092 ) 766,017 Property and equipment, net of accumulated depreciation — 156,434 20,924 — 177,358 Deferred financing costs, net 2,071 — — — 2,071 Intangible assets — 320,056 38,992 — 359,048 Goodwill — 433,415 36,232 — 469,647 Investment in unconsolidated subsidiary — 1,222 43,760 — 44,982 Deferred income taxes, net — 1,170 64 — 1,234 Other long-term assets — 4,194 5,101 — 9,295 Investment in affiliates 877,764 265,714 — (1,143,478 ) — Long-term advances to affiliates 674,220 — 98,532 (772,752 ) — Total assets $ 1,554,055 $ 1,831,192 $ 367,727 $ (1,923,322 ) $ 1,829,652 Liabilities and equity Current liabilities Current portion of long-term debt $ — $ 1,150 $ 17 $ — $ 1,167 Accounts payable—trade — 121,019 22,167 — 143,186 Accrued liabilities 6,873 40,913 33,246 — 81,032 Deferred revenue — 4,742 3,593 — 8,335 Billings in excess of costs and profits recognized — 84 3,126 — 3,210 Total current liabilities 6,873 167,908 62,149 — 236,930 Long-term debt, net of current portion 517,056 480 8 — 517,544 Deferred income taxes, net — — 15,299 — 15,299 Other long-term liabilities — 12,288 17,465 — 29,753 Long-term payables to affiliates — 772,752 — (772,752 ) — Total liabilities 523,929 953,428 94,921 (772,752 ) 799,526 Total equity 1,030,126 877,764 272,806 (1,150,570 ) 1,030,126 Total liabilities and equity $ 1,554,055 $ 1,831,192 $ 367,727 $ (1,923,322 ) $ 1,829,652 Condensed consolidating statements of cash flows Year ended December 31, 2019 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from operating activities $ (28,883 ) $ 143,219 $ (10,192 ) $ — $ 104,144 Cash flows from investing activities Capital expenditures for property and equipment — (13,619 ) (1,483 ) — (15,102 ) Acquisition of businesses, net of cash acquired — — — — — Investment in unconsolidated subsidiary — — — — — Proceeds from sale of business, property and equipment — 18,522 24,715 — 43,237 Long-term loans and advances to affiliates 148,977 — (10,362 ) (138,615 ) — Net cash provided by investing activities 148,977 4,903 12,870 (138,615 ) 28,135 Cash flows from financing activities Borrowings of debt 137,000 — — — 137,000 Repayments of debt (256,000 ) (900 ) — — (256,900 ) Repurchases of stock (1,094 ) — — — (1,094 ) Proceeds from stock issuance — — — — — Payment of capital lease obligations — (1,197 ) — — (1,197 ) Long-term loans and advances to affiliates — (138,615 ) — 138,615 — Dividend paid to affiliates — — — — — Net cash used in financing activities (120,094 ) (140,712 ) — 138,615 (122,191 ) Effect of exchange rate changes on cash — — 582 — 582 Net increase in cash, cash equivalents and restricted cash — 7,410 3,260 — 10,670 Cash, cash equivalents and restricted cash at beginning of period — 24,977 22,264 — 47,241 Cash, cash equivalents and restricted cash at end of period $ — $ 32,387 $ 25,524 $ — $ 57,911 Condensed consolidating statements of cash flows Year ended December 31, 2018 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from operating activities $ 10,461 $ (76 ) $ 15,972 $ (23,950 ) $ 2,407 Cash flows from investing activities Capital expenditures for property and equipment — (20,288 ) (3,755 ) — (24,043 ) Acquisition of businesses, net of cash acquired — (60,622 ) — — (60,622 ) Proceeds from sale of business, property and equipment — 5,192 4,066 — 9,258 Long-term loans and advances to affiliates (18,130 ) 9,690 — 8,440 — Net cash provided by (used in) investing activities (18,130 ) (66,028 ) 311 8,440 (75,407 ) Cash flows from financing activities Borrowings of debt 221,980 — — — 221,980 Repayments of debt (211,783 ) — — — (211,783 ) Repurchases of stock (2,777 ) — — — (2,777 ) Proceeds from stock issuance 249 — — — 249 Payment of capital lease obligations — (1,030 ) (117 ) — (1,147 ) Long-term loans and advances to affiliates — 18,130 (9,690 ) (8,440 ) — Dividend paid to affiliates — — (23,950 ) 23,950 — Net cash provided by (used in) financing activities 7,669 17,100 (33,757 ) 15,510 6,522 Effect of exchange rate changes on cash — — (1,497 ) — (1,497 ) Net decrease in cash, cash equivalents and restricted cash — (49,004 ) (18,971 ) — (67,975 ) Cash, cash equivalents and restricted cash at beginning of period — 73,981 41,235 — 115,216 Cash, cash equivalents and restricted cash at end of period $ — $ 24,977 $ 22,264 $ — $ 47,241 Condensed consolidating statements of cash flows Year ended December 31, 2017 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from operating activities $ (15,718 ) $ 483 $ 3,702 $ (28,500 ) $ (40,033 ) Cash flows from investing activities Capital expenditures for property and equipment — (20,499 ) (6,210 ) — (26,709 ) Acquisition of businesses, net of cash acquired — (157,297 ) (4,892 ) — (162,189 ) Investment in unconsolidated subsidiary — (1,041 ) — — (1,041 ) Proceeds from sale of property and equipment — 2,038 (67 ) — 1,971 Long-term loans and advances to affiliates (86,097 ) 22,072 — 64,025 — Net cash used in investing activities (86,097 ) (154,727 ) (11,169 ) 64,025 (187,968 ) Cash flows from financing activities Borrowings of debt 107,431 — — — 107,431 Repurchases of stock (4,742 ) — — — (4,742 ) Proceeds from stock issuance 1,491 — — — 1,491 Payment of capital lease obligations — (1,147 ) (40 ) — (1,187 ) Deferred financing costs (2,430 ) — — — (2,430 ) Long-term loans and advances to affiliates — 86,097 (22,072 ) (64,025 ) — Dividend paid to affiliates — — (28,500 ) 28,500 — Net cash provided by (used in) financing activities 101,750 84,950 (50,612 ) (35,525 ) 100,563 Effect of exchange rate changes on cash — — 8,232 — 8,232 Net decrease in cash, cash equivalents and restricted cash (65 ) (69,294 ) (49,847 ) — (119,206 ) Cash, cash equivalents and restricted cash at beginning of period 65 143,275 91,082 — 234,422 Cash, cash equivalents and restricted cash at end of period $ — $ 73,981 $ 41,235 $ — $ 115,216 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) The following tables summarize the Company’s results by quarter for the years ended December 31, 2019 and 2018 . The quarterly results may not be comparable primarily due to acquisitions and dispositions in 2019 , 2018 and 2017 . Refer to Note 4 Acquisitions & Dispositions for further information. 2019 (in thousands, except per share information) Q1 Q2 Q3 Q4 Revenues $ 271,842 $ 245,648 $ 239,266 $ 199,777 Cost of sales 201,744 182,460 176,632 150,845 Gross profit 70,098 63,188 62,634 48,932 Total operating expenses (1) 64,952 63,022 595,954 56,752 Earnings (loss) from equity investment (849 ) 570 (39 ) — Operating income (loss) 4,297 736 (533,359 ) (7,820 ) Total other expense, net (2) 10,458 6,077 2,999 13,191 Loss before income taxes (6,161 ) (5,341 ) (536,358 ) (21,011 ) Income tax expense (benefit) 1,727 8,393 (3,371 ) (8,563 ) Net loss (7,888 ) (13,734 ) (532,987 ) (12,448 ) Weighted average shares outstanding Basic 109,643 109,987 110,295 110,464 Diluted 109,643 109,987 110,295 110,464 Loss per share Basic $ (0.07 ) $ (0.12 ) $ (4.83 ) $ (0.11 ) Diluted $ (0.07 ) $ (0.12 ) $ (4.83 ) $ (0.11 ) (1) Q1 includes a $4.6 million contingent consideration benefit related to GHT. See Note 4 Acquisitions & Dispositions for further information related to this benefit. Q3 includes $471.0 million of goodwill impairments, $53.5 million of intangible asset impairments and $7.9 million of property and equipment impairments. See Note 7 Goodwill and Intangible Assets and Note 6 Property and Equipment for further information related to these charges. (2) Q3 includes a $1.6 million gain realized on the sale of our previously held equity investment in Ashtead. Q4 includes a 2.3 million gain on the sale of certain assets of our Cooper Alloy ® brand of valve products. See Note 4 Acquisitions & Dispositions for further information related to these gains. 2018 (in thousands, except per share information) Q1 Q2 Q3 Q4 Revenues $ 250,231 $ 274,003 $ 267,037 $ 272,948 Cost of sales 182,944 201,334 192,496 231,073 Gross profit 67,287 72,669 74,541 41,875 Total operating expenses (1) 73,030 84,721 72,764 422,995 Earnings (loss) from equity investment (963 ) 350 659 94 Operating income (loss) (6,706 ) (11,702 ) 2,436 (381,026 ) Total other expense (income), net (2) (21,868 ) 2,001 6,598 6,025 Income (loss) before income taxes 15,162 (13,703 ) (4,162 ) (387,051 ) Income tax expense (benefit) (12,904 ) 1,646 (1,108 ) (3,308 ) Net income (loss) 28,066 (15,349 ) (3,054 ) (383,743 ) Weighted average shares outstanding Basic 108,423 108,714 108,856 109,082 Diluted 110,857 108,714 108,856 109,082 Earnings (loss) per share Basic $ 0.26 $ (0.14 ) $ (0.03 ) $ (3.52 ) Diluted $ 0.25 $ (0.14 ) $ (0.03 ) $ (3.52 ) (1) Total operating expenses includes $14.5 million of intangible asset impairments for the Subsea and Downhole product lines in Q2, $298.8 million of goodwill impairment charges in Q4 and $50.2 million of intangible asset impairments in Q4. See Note 7 Goodwill and Intangible Assets for further information related to these charges. (2) Total other expenses includes a $33.5 million gain on contribution of our subsea rentals business in Q1. See Note 4 Acquisitions & Dispositions |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly and majority owned subsidiaries after elimination of intercompany balances and transactions. Noncontrolling interest represented ownership by others of the equity in a consolidated majority owned South African subsidiary which we sold in the first quarter of 2017. Our investments in operating entities where we have the ability to exert significant influence, but do not control operating and financial policies, are accounted for using the equity method of accounting with our share of the net income reported in “ Earnings (loss) from equity investments ” in the consolidated statements of comprehensive loss and the investments reported in “ Investment in unconsolidated subsidiary ” in the consolidated balance sheets. The Company’s share of equity earnings are reported within operating loss as the operations of investees are integral to the operations of the Company. Prior to acquiring the remaining membership interest of Global Tubing, LLC (“Global Tubing”) on October 2, 2017, the Company’s investment was accounted for using the equity method of accounting. On January 3, 2018, the Company contributed Forum Subsea Rentals (“FSR”) into Ashtead Technology, a competing business, in exchange for a 40% interest in the combined business. After the merger, our interest in the combined business was accounted for using the equity method of accounting. On September 3, 2019, we sold our aggregate 40% interest in Ashtead to the majority owners of Ashtead. As of December 31, 2019, we have no investments in unconsolidated subsidiaries. Refer to Note 4 Acquisitions & Dispositions |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In the preparation of these consolidated financial statements, estimates and assumptions have been made by management including, among others, costs to complete contracts, an assessment of percentage of completion of projects, the selection of useful lives of tangible and intangible assets, fair value of reporting units used for goodwill impairment testing, fair value associated with business combinations, expected future cash flows from long lived assets to support impairment tests, provisions necessary for trade receivables, amounts of deferred taxes and income tax contingencies. Actual results could differ from these estimates. The financial reporting of contracts depends on estimates, which are assessed continually during the term of those contracts. The amounts of revenues and income recognized are subject to revisions as the contract progresses to completion and changes in estimates are reflected in the period in which the facts that give rise to the revisions become known. Additional information that enhances and refines the estimating process that is obtained after the balance sheet date, but before issuance of the consolidated financial statements is reflected in the consolidated financial statements. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on deposit and high quality, short term money market instruments with an original maturity of three months or less. Cash equivalents are based on quoted market prices, a Level 1 fair value measure. |
Accounts receivable-trade | Accounts receivable-trade Trade accounts receivables are carried at their estimated collectible amounts. Trade credit is generally extended on a short-term basis; thus receivables do not bear interest, although a finance charge may be applied to amounts past due. We maintain an allowance for doubtful accounts for estimated losses that may result from the inability of our customers to make required payments. Such allowances are based upon several factors including, but not limited to, credit approval practices, industry and customer historical experience as well as the current and projected financial condition of the specific customer. Accounts receivable outstanding longer than contractual terms are considered past due. We write off accounts receivable to the allowance for doubtful accounts when they become uncollectible. Any payments subsequently received on receivables previously written off are credited to bad debt expense. |
Inventories | Inventories Inventory consisting of finished goods and materials and supplies held for resale is carried at the lower of cost or net realizable value. For certain operations, cost, which includes the cost of raw materials and labor for finished goods, is determined using standard cost which approximates a first-in first-out basis. For other operations, this cost is determined on an average cost, first-in first-out or specific identification basis. Net realizable value means estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. We continuously evaluate inventories based on an analysis of inventory levels, historical sales experience and future sales forecasts, to determine obsolete, slow-moving and excess inventory. Adjustments to reduce such inventory to its net realizable value have been recorded. |
Property and equipment | Property and equipment Property and equipment are stated at cost less accumulated depreciation. Capital leases of property and equipment are stated at the present value of future minimum lease payments. Expenditures for property and equipment and for items which substantially increase the useful lives of existing assets are capitalized at cost and depreciated over their estimated useful life utilizing the straight-line method. Routine expenditures for repairs and maintenance are expensed as incurred. Depreciation is computed using the straight-line method based on the estimated useful lives of assets, generally 3 to 30 years . Property and equipment held under capital leases are amortized straight-line over the shorter of the lease term or estimated useful life of the asset. Gains or losses resulting from the disposition of assets are recognized in income with the related asset cost and accumulated depreciation removed from the balance sheet. Assets acquired in connection with business combinations are recorded at fair value. Rental equipment consists of equipment rented to customers under short-term rental agreements. Rental equipment is recorded at cost and depreciated using the straight-line method over the estimated useful life of three to ten years . We review long-lived assets for potential impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. In performing the review for impairment, future cash flows expected to result from the use of the asset and its eventual disposal are estimated. If the undiscounted future cash flows are less than the carrying amount of the assets, there is an indication that the asset may be impaired. The amount of the impairment is measured as the difference between the carrying value and the estimated fair value of the asset. The fair value is determined either through the use of an external valuation, or by means of an analysis of discounted future cash flows based on expected utilization. For the years ended December 31, 2019 , we recognized property and equipment impairment charges totaling $7.9 million , which are included in “ Impairments of goodwill, intangible assets, property and equipment ” in the consolidated statements of comprehensive loss . See Note 6 Property and Equipment for further information related to these charges. No significant impairment charges were recorded for the years ended December 31, 2018 and 2017 . We record the fair value of asset retirement obligations as a liability in the period in which the associated legal obligation is incurred. The fair value of the obligation is recorded as a liability and capitalized as part of the related asset. Over time, the liability is accreted to its future value and the capitalized cost is depreciated over the estimated useful life of the related asset. The current portion of the liability is included in other accrued liabilities and the non-current portion is included in other long-term liabilities in the consolidated balance sheets. |
Goodwill and intangible assets | Goodwill and intangible assets For goodwill and intangible assets with indefinite lives, an assessment for impairment is performed annually or when there is an indication an impairment may have occurred. We use an assessment date of October 1 for our annual impairment test for goodwill and other indefinite-lived intangible assets. Goodwill is reviewed for impairment by comparing the carrying value of each of our seven reporting units’ net assets, including allocated goodwill, to the estimated fair value of the reporting unit. We determine the fair value of our reporting units using a discounted cash flow approach. We selected this valuation approach because we believe it, combined with our best judgment regarding underlying assumptions and estimates, provides the best estimate of fair value for each of our reporting units. Determining the fair value of a reporting unit requires the use of estimates and assumptions. Such estimates and assumptions include revenue growth rates, future operating margins, the weighted average cost of capital, a terminal growth value, and future market conditions, among others. We believe that the estimates and assumptions used in our impairment assessments are reasonable. If the reporting unit’s carrying value is greater than its calculated fair value, we recognize a goodwill impairment charge for the amount by which the carrying value of goodwill exceeds its fair value. For the years ended December 31, 2019 , 2018 and 2017 , we recognized goodwill impairment charges totaling $471.0 million , $298.8 million and $68.0 million , respectively, which are included in “ Impairments of goodwill, intangible assets, property and equipment ” in the consolidated statements of comprehensive loss . See Note 7 Goodwill and Intangible Assets for further information related to these charges. Following the goodwill impairment charges recognized in the third quarter of 2019 , there is no remaining goodwill balance for any of our reporting units. Intangible assets with definite lives are comprised of customer and distributor relationships, patents and technology, trade names, trademarks and non-compete agreements which are amortized on a straight-line basis over the life of the intangible asset, generally two to twenty-two years . These assets are tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In performing the review for impairment, future cash flows expected to result from the use of the asset are estimated. If the undiscounted future cash flows are less than the carrying amount of the assets, there is an indication that the asset may be impaired. The amount of the impairment is measured as the difference between the carrying value and the estimated fair value of the asset. The fair value is determined either through the use of an external valuation, or by means of an analysis of discounted future cash flows. The impairment loss recognized represents the excess of an assets’ carrying value as compared to its estimated fair value. For the years ended December 31, 2019 , 2018 and 2017 , we recognized intangible asset impairment charges totaling $53.5 million , $64.7 million and $1.1 million , respectively, which are included in “ Impairments of goodwill, intangible assets, property and equipment ” in the consolidated statements of comprehensive loss . See Note 7 Goodwill and Intangible Assets for further information related to these charges. |
Recognition of provisions for contingencies | Recognition of provisions for contingencies In the ordinary course of business, we are subject to various claims, suits and complaints. We, in consultation with internal and external legal advisors, will provide for a contingent loss in the consolidated financial statements if, at the date of the consolidated financial statements, it is probable that a liability has been incurred and the amount can be reasonably estimated. If it is determined that the reasonable estimate of the loss is a range and that there is no best estimate within that range, a provision will be made for the lower amount of the range. Legal costs are expensed as incurred. An assessment is made of the areas where potential claims may arise under contract warranty clauses. Where a specific risk is identified, and the potential for a claim is assessed as probable and can be reasonably estimated, an appropriate warranty provision is recorded. Warranty provisions are eliminated at the end of the warranty period except where warranty claims are still outstanding. The liability for product warranty is included in other accrued liabilities in the consolidated balance sheets. |
Revenue recognition and deferred revenue | Revenue recognition and deferred revenue Revenue is recognized in accordance with Accounting Standards Codification Topic 606 (“ASC 606”), when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Contract Identification . We account for a contract when it is approved, both parties are committed, the rights of the parties are identified, payment terms are defined, the contract has commercial substance and collection of consideration is probable. Performance Obligations . A performance obligation is a promise in a contract to transfer a distinct good or service to the customer under ASC 606. The majority of our contracts with customers contain a single performance obligation to provide agreed-upon products or services. For contracts with multiple performance obligations, we allocate revenue to each performance obligation based on its relative standalone selling price. In accordance with ASC 606, we do not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer. We have elected to apply the practical expedient to account for shipping and handling costs associated with outbound freight after control of a product has transferred to a customer as a fulfillment cost which is included in Cost of Sales. Furthermore, since our customer payment terms are short-term in nature, we have also elected to apply the practical expedient which allows an entity to not adjust for the effects of a significant financing component if it expects that the customer’s payment period will be less than one year in duration. Contract Value . Revenue is measured based on the amount of consideration specified in the contracts with our customers and excludes any amounts collected on behalf of third parties. We have elected the practical expedient to exclude amounts collected from customers for all sales (and other similar) taxes. The estimation of total revenue from a customer contract is subject to elements of variable consideration. Certain customers may receive rebates or discounts which are accounted for as variable consideration. We estimate variable consideration as the most likely amount to which we expect to be entitled, and we include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue will not occur when the uncertainty associated with the variable consideration is resolved. Our estimate of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historic, current, forecast) that is reasonably available to us. Timing of Recognition . We recognize revenue when we satisfy a performance obligation by transferring control of a product or service to a customer. Our performance obligations are satisfied at a point in time or over time as work progresses. Revenue from goods transferred to customers at a point in time accounted for 96% of revenues for the year ended December 31, 2019 . The majority of this revenue is product sales, which are generally recognized when items are shipped from our facilities and title passes to the customer. The amount of revenue recognized for products is adjusted for expected returns, which are estimated based on historical data. Revenue from goods transferred to customers over time accounted for 4% of revenues for the year ended December 31, 2019 , which is related to certain contracts in our Subsea and Production Equipment product lines. Recognition over time for these contracts is supported by our assessment of the products supplied as having no alternative use to us and by clauses in the contracts that provide us with an enforceable right to payment for performance completed to date. We use the cost-to-cost method to measure progress for these contracts because it best depicts the transfer of assets to the customer which occurs as costs are incurred on the contract. The amount of revenue recognized is calculated based on the ratio of costs incurred to-date compared to total estimated costs which requires management to calculate reasonably dependable estimates of total contract costs. Whenever revisions of estimated contract costs and contract values indicate that the contract costs will exceed estimated revenues, thus creating a loss, a provision for the total estimated loss is recorded in that period. We recognize revenue and cost of sales each period based upon the advancement of the work-in-progress unless the stage of completion is insufficient to enable a reasonably certain forecast of profit to be established. In such cases, no profit is recognized during the period. Accounting estimates during the course of projects may change, primarily related to our remotely operated vehicles (“ROVs”) which may take longer to manufacture. The effect of such a change, which can be upward as well as downward, is accounted for in the period of change, and the cumulative income recognized to date is adjusted to reflect the latest estimates. These revisions to estimates are accounted for on a prospective basis. Contracts are sometimes modified to account for changes in product specifications or requirements. Most of our contract modifications are for goods and services that are not distinct from the existing contract. As such, these modifications are accounted for as if they were part of the existing contract, and therefore, the effect of the modification on the transaction price and our measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue on a cumulative catch-up basis. No adjustment to any one contract was material to our consolidated financial statements for the years ended December 31, 2019 , 2018 and 2017 . We sell our products through a number of channels including a direct sales force, marketing representatives, and distributors. We have elected to expense sales commissions when incurred as the amortization period would be less than one year. These costs are recorded within cost of sales. Portfolio Approach . We have elected to apply ASC 606 to a portfolio of contracts with similar characteristics as we reasonably expect that the effects on the financial statements of applying this guidance to the portfolio would not differ materially from applying this guidance to the individual contracts within that portfolio. Disaggregated Revenue . Refer to Note 17 Business Segments for disaggregated revenue by product line and geography. Contract Balances . Contract balances are determined on a contract by contract basis. Contract assets represent revenue recognized for goods and services provided to our customers when payment is conditioned on something other than the passage of time. Similarly, when we receive consideration, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a sales contract, we record a contract liability. Such contract liabilities typically result from billings in excess of costs incurred and advance payments received on product sales. |
Concentration of credit risk | Concentration of credit risk Financial instruments which potentially subject the Company to credit risk include trade accounts receivable. Trade accounts receivable consist of uncollateralized receivables from domestic and international customers. For the years ended December 31, 2019 , 2018 and 2017 , no one customer accounted for 10% or more of the total revenue or 10% |
Stock based compensation | Stock based compensation We measure all stock based compensation awards at fair value on the date they are granted to employees and directors, and recognize compensation cost over the requisite service period for awards with only a service condition, and over a graded vesting period for awards with service and performance or market conditions. The fair value of stock based compensation awards with market conditions is measured using a Monte Carlo Simulation model and, in accordance with Accounting Standards Codification (“ASC”) 718, is not adjusted based on actual achievement of the performance goals. The Black-Scholes option pricing model is used to measure the fair value of options. The following sections address the assumptions used related to the Black-Scholes option pricing model: Expected life The expected term of stock options represents the period the stock options are expected to remain outstanding. Expected volatility Expected volatility measures the amount that a stock price has fluctuated or is expected to fluctuate during a period and is estimated based on a weighted average of the Company’s historical stock price. Dividend yield We have never declared or paid any cash dividends and do not plan to pay cash dividends for the foreseeable future. Therefore, a zero expected dividend yield was used in the valuation model. Risk-free interest rate The risk-free interest rate is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected life of the options. Forfeitures Forfeitures are accounted for as they occur. |
Income taxes | Income taxes We follow the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are determined based upon temporary differences between the carrying amounts and tax bases of our assets and liabilities at the balance sheet date, and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized in income in the period in which the change occurs. We record a valuation allowance in each reporting period when management believes that it is more likely than not that any deferred tax asset created will not be realized. See Note 10 Income Taxes for more information on valuation allowances recognized. During 2018, we completed our analysis of the impact of U.S. tax reform enacted in December 2017 based on further guidance provided on the new tax law by the U.S. Treasury Department and Internal Revenue Service. Refer to Note 10 Income Taxes for further discussion. |
Non-U.S. local currency translation | Non-U.S. local currency translation We have global operations and the majority of our non-U.S. operations have designated the local currency as the functional currency. Realized and unrealized gains and losses resulting from re-measurements of monetary assets and liabilities denominated in a currency other than the local entity’s functional currency are included in the consolidated statements of comprehensive loss as incurred. Financial statements of our foreign operations where the functional currency is not the U.S. dollar are translated into U.S. dollars using the current rate method whereby assets and liabilities are translated at the balance sheet rate and income and expenses are translated at the average exchange rates in effect during the period. The resultant translation adjustments are reported as a component of accumulated other comprehensive loss within stockholders’ equity in our consolidated balance sheets. |
Fair value | Fair value The carrying amounts for financial instruments classified as current assets and current liabilities approximate fair value, due to the short maturity of such instruments. The book values of other financial instruments, such as our debt related to the Credit Facility, approximates fair value because interest rates charged are similar to other financial instruments with similar terms and maturities and the rates vary in accordance with a market index. For the financial assets and liabilities disclosed at fair value, fair value is determined as the exit price, or the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The established fair value hierarchy divides fair value measurement into three broad levels: • Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; • Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and • Level 3 - inputs are unobservable for the asset or liability, which reflect the best judgment of management. The financial assets and liabilities that are disclosed at fair value for disclosure purposes are categorized in one of the above three levels based on the lowest level input that is significant to the fair value measurement in its entirety. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. |
Recent accounting pronouncements | Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”), which we adopt as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on our consolidated financial statements upon adoption. Accounting Standards Adopted in 2019 Stranded Tax Effects from the Tax Cuts and Jobs Act. In February 2018, the FASB issued ASU No. 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. U.S. GAAP requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates, with the effect included in income from continuing operations in the reporting period that includes the enactment date, even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income (referred to as “stranded tax effects”). The amendments in this ASU allow a specific exception for reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. In addition, the amendments in this update also require certain disclosures about stranded tax effects. We applied the update beginning January 1, 2019. The adoption of this new guidance had no material impact on our consolidated financial statements. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 842”). Under this new guidance, lessees are required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases (finance and operating). The classification as either a finance or operating lease determines whether lease expense is recognized on an effective interest method basis or on a straight-line basis over the term of the lease, respectively. We adopted this new standard as of January 1, 2019 using the modified retrospective transition method which requires leases existing at, or entered into after, January 1, 2019 to be recognized and measured. As such, the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We took advantage of various practical expedients provided by the new standard, including: • use of the transition package of practical expedients which, among other things, allows us to carry forward the historical lease classification for existing leases; • making an accounting policy election for leases with an initial term of 12 months or less to be excluded from the balance sheet; and • electing to not separate non-lease components from lease components for all classes of underlying lease assets. The adoption of this standard resulted in the recording of net operating lease assets of approximately $54 million and operating lease liabilities of approximately $65 million as of January 1, 2019. The new standard did not materially affect our consolidated statements of comprehensive loss for the year ended December 31, 2019 . For additional information, please refer to Note 9 Leases . Accounting Standards Issued But Not Yet Adopted Accounting for Implementation Costs Related to a Cloud Computing Arrangement . In August 2018, the FASB issued ASU No. 2018-15 Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This new guidance aligns the requirements for capitalizing implementation costs incurred by an entity related to a cloud computing arrangement with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Accordingly, this guidance requires an entity to capitalize certain implementation costs incurred and then amortize them over the term of the cloud hosting arrangement. Furthermore, this guidance also requires an entity to present the expense, cash flows, and capitalized implementation costs in the same financial statement line items as the associated hosting service. This new guidance will take effect for public companies with fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are currently evaluating the impact of adopting this guidance. However, we currently expect that the adoption of this guidance will not have a material impact on our consolidated financial statements. Fair Value Measurement Disclosure . In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirement for Fair Value Measurement. This new guidance eliminated, modified and added certain disclosure requirements related to fair value measurements. The amended disclosure requirements are effective for all entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. We are evaluating the impact of adopting this guidance. However, we currently expect that the adoption of this guidance will not have a material impact on our consolidated financial statements. Financial Instruments—Credit Losses. In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326), which introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost basis. It requires an entity to estimate credit losses expected over the life of an exposure based on historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This guidance will take effect for public companies with fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating the impact of adopting ASU No. 2016-13 and is in the process of: • reviewing historical data that will be used in the calculation of expected credit loss; • documenting relevant assumptions to calculate expected losses; and • updating policies, procedures and internal controls. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Doubtful Accounts | The change in amounts of the allowance for doubtful accounts during the three year period ended December 31, 2019 is as follows (in thousands): Period ended Balance at beginning of period Charged to expense Deductions or other Balance at end of period December 31, 2017 $ 3,331 $ 2,903 $ (439 ) $ 5,795 December 31, 2018 5,795 3,342 (1,705 ) 7,432 December 31, 2019 7,432 3,152 (1,536 ) 9,048 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Changes in Contract Assets and Contract Liabilities | The following table reflects the changes in our contract assets and contract liabilities balances for the year ended December 31, 2019 : December 31, 2019 December 31, 2018 Decrease $ % Accrued revenue $ 1,260 $ 862 Costs and estimated profits in excess of billings 4,104 9,159 Contract assets $ 5,364 $ 10,021 $ (4,657 ) (46 )% Deferred revenue $ 4,877 $ 8,335 Billings in excess of costs and profits recognized 5,911 3,210 Contract liabilities $ 10,788 $ 11,545 $ (757 ) (7 )% |
Acquisitions & Dispositions (Ta
Acquisitions & Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of the acquisition (in thousands): Current assets, net of cash acquired $ 18,468 Property and equipment 2,408 Non-current assets 238 Intangible assets (primarily customer relationships) 30,400 Tax-deductible goodwill 20,746 Current liabilities (12,633 ) Long-term liabilities $ (2,355 ) Net assets acquired, net of cash acquired $ 57,272 The following table summarizes the consideration transferred to acquire the remaining ownership interests of Global Tubing (in thousands other than stock price and shares issued): Purchase Consideration Forum Energy Technologies' closing stock price on October 2, 2017 $ 15.10 Multiplied by number of shares issued for acquisition 11,488,208 Common shares $ 173,472 Cash 31,764 Repayment of Global Tubing debt at acquisition 85,084 Total Consideration paid for the acquisition $ 290,320 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma summary presents consolidated information as if the Global Tubing acquisition had occurred on January 1, 2016: Pro Forma Year Ended December 31, 2017 Net sales $ 901,856 Net loss attributable to common stockholders (125,204 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The Company’s significant components of inventory at December 31, 2019 and 2018 were as follows (in thousands): December 31, December 31, Raw materials and parts $ 172,083 $ 212,526 Work in process 29,972 39,494 Finished goods 278,660 302,590 Gross inventories 480,715 554,610 Inventory reserve (66,075 ) (75,587 ) Inventories $ 414,640 $ 479,023 |
Schedule of Inventory Reserve | The change in the amounts of the inventory reserve during the three year period ended December 31, 2019 is as follows (in thousands): Period ended Balance at beginning of period Charged to expense Deductions or other Balance at end of period December 31, 2017 $ 68,352 $ 14,620 $ (8,654 ) $ 74,318 December 31, 2018 74,318 36,606 (35,337 ) $ 75,587 December 31, 2019 75,587 10,324 (19,836 ) $ 66,075 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment consists of the following (in thousands): Estimated useful lives December 31, 2019 2018 Land $ 9,870 $ 9,755 Buildings and leasehold improvements 5-30 103,383 103,761 Computer equipment 3-5 55,941 54,721 Machinery & equipment 5-10 166,123 162,110 Furniture & fixtures 3-10 6,731 6,631 Vehicles 3-5 5,382 6,160 Right of use assets - finance leases 2-6 2,528 — Construction in progress 3,663 9,155 353,621 352,293 Less: accumulated depreciation (199,210 ) (180,717 ) Property and equipment, net 154,411 171,576 Rental equipment 3-10 3,779 9,535 Less: accumulated depreciation (3,354 ) (3,753 ) Rental equipment, net 425 5,782 Total property and equipment, net $ 154,836 $ 177,358 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill were as follows (in thousands): Drilling & Downhole Completions Production Total Goodwill balance at December 31, 2017 $ 494,983 $ 240,816 $ 19,446 $ 755,245 Acquisitions, net of dispositions 1,753 20,559 — 22,312 Impairment (298,789 ) — — (298,789 ) Impact of non-U.S. local currency translation (6,796 ) (2,095 ) (230 ) (9,121 ) Goodwill balance at December 31, 2018 191,151 259,280 19,216 469,647 Acquisitions, net of dispositions 427 187 — 614 Impairment (191,485 ) (260,238 ) (19,287 ) (471,010 ) Impact of non-U.S. local currency translation (93 ) 771 71 $ 749 Goodwill balance at December 31, 2019 $ — $ — $ — $ — |
Summary of Intangible Assets | At December 31, 2019 and 2018 , intangible assets consisted of the following, respectively (in thousands): December 31, 2019 Gross carrying Accumulated Net intangibles Amortization Customer relationships $ 281,052 $ (110,410 ) $ 170,642 10 - 15 Patents and technology 92,498 (20,819 ) 71,679 5 - 19 Non-compete agreements 190 (100 ) 90 2 - 6 Trade names 43,284 (21,015 ) 22,269 7 - 19 Distributor relationships 22,160 (18,866 ) 3,294 15 - 22 Trademark 5,089 (763 ) 4,326 15 Intangible Assets Total $ 444,273 $ (171,973 ) $ 272,300 December 31, 2018 Gross carrying Accumulated Net intangibles Amortization Customer relationships $ 337,546 $ (110,228 ) $ 227,318 4 - 15 Patents and technology 104,394 (17,148 ) 87,246 5 - 17 Non-compete agreements 6,245 (5,600 ) 645 3 - 6 Trade names 47,493 (18,107 ) 29,386 10 - 15 Distributor relationships 22,160 (17,602 ) 4,558 8 - 15 Trademark 10,319 (424 ) 9,895 15 - Indefinite Intangible Assets Total $ 528,157 $ (169,109 ) $ 359,048 |
Schedule of Future Amortization Expense | The estimated future amortization expense for the next five years is as follows (in thousands): Year ending December 31, Amount 2020 $ 27,974 2021 26,951 2022 25,976 2023 24,413 2024 22,872 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Notes payable and lines of credit as of December 31, 2019 and 2018 consisted of the following (in thousands): December 31, December 31, 6.25% Senior notes due October 2021 $ 400,000 $ 400,000 Unamortized debt premium 770 1,176 Debt issuance cost (3,232 ) (3,121 ) Senior secured revolving credit facility — 119,000 Other debt 2,041 1,656 Total debt 399,579 518,711 Less: current maturities (717 ) (1,167 ) Long-term debt $ 398,862 $ 517,544 |
Schedule of Maturities of Long-term Debt | Future principal payments under long-term debt for each of the years ending December 31 are as follows (in thousands): 2020 $ 806 2021 400,806 2022 441 2023 43 2024 19 Thereafter 5 Total future payment $ 402,120 Add: Unamortized debt premium 770 Less: Debt issuance cost (3,232 ) Less: present value discount on finance leases $ (79 ) Total debt $ 399,579 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | The following table summarizes the supplemental balance sheet information related to leases as of December 31, 2019 (in thousands): As of Classification December 31, 2019 Assets Operating lease assets Operating lease assets 48,682 Finance lease assets Property and equipment, net of accumulated depreciation 2,085 Total lease assets 50,767 Liabilities Current Operating Accrued liabilities 12,538 Finance Current portion of long-term debt 717 Noncurrent Operating Operating lease liabilities 49,938 Finance Long-term debt, net of current portion 1,324 Total lease liabilities 64,517 |
Schedule of Lease Cost, Cash Flows, Weighted Average Remaining Lease Term and Weighted Average Discount Rates | The following table summarizes the components of lease expenses for the twelve months ended December 31, 2019 (in thousands): Lease Cost Classification Twelve Months Ended December 31, 2019 Operating lease cost Cost of sales and Selling, general and administrative expenses $ 13,675 Finance lease cost Amortization of leased assets Selling, general and administrative expenses 445 Interest on lease liabilities Interest expense 81 Sublease income Cost of sales and Selling, general and administrative expenses (1,635 ) Net lease cost $ 12,566 |
Schedule of Operating Lease Liability Maturity | The maturities of lease liabilities as of December 31, 2019 are as follows (in thousands): Operating Leases Finance Leases Total 2020 $ 16,873 $ 806 $ 17,679 2021 14,064 806 14,870 2022 10,888 441 11,329 2023 7,550 43 7,593 2024 6,344 19 6,363 Thereafter 25,502 5 25,507 Total lease payments 81,221 2,120 83,341 Less: present value discount (18,745 ) (79 ) (18,824 ) Present value of lease liabilities $ 62,476 $ 2,041 $ 64,517 |
Schedule of Finance Lease Liability Maturity | The maturities of lease liabilities as of December 31, 2019 are as follows (in thousands): Operating Leases Finance Leases Total 2020 $ 16,873 $ 806 $ 17,679 2021 14,064 806 14,870 2022 10,888 441 11,329 2023 7,550 43 7,593 2024 6,344 19 6,363 Thereafter 25,502 5 25,507 Total lease payments 81,221 2,120 83,341 Less: present value discount (18,745 ) (79 ) (18,824 ) Present value of lease liabilities $ 62,476 $ 2,041 $ 64,517 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under operating leases as of December 31, 2018 are as follows (in thousands): Total 2019 $ 17,536 2020 14,826 2021 12,800 2022 11,202 2023 5,701 Thereafter 15,069 Total $ 77,134 |
Schedule of Lease Cost, Cash Flows, Weighted Average Remaining Lease Term and Weighted Average Discount Rates | The following table summarizes the weighted-average remaining lease term and weighted average discount rates related to leases as of December 31, 2019 : Lease Term and Discount Rate December 31, 2019 Weighted-average remaining lease term (years) Operating leases 6.8 years Financing leases 2.8 years Weighted-average discount rate Operating leases 6.58 % Financing leases 6.58 % |
Schedule of Lease Cost, Cash Flows, Weighted Average Remaining Lease Term and Weighted Average Discount Rates | The following table summarizes the supplemental cash flow information related to leases as of December 31, 2019 : Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,679 Operating cash flows from finance leases 81 Financing cash flows from finance leases $ 1,197 Noncash activities from right-of-use assets obtained in exchange for lease obligations: Operating leases $ 9,745 Finance leases 1,822 Noncash activities from adoption of ASC 842 as of January 1, 2019 Prepaid expenses and other current assets $ (884 ) Operating lease assets 54,069 Operating lease liabilities 64,506 Accrued liabilities (11,321 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of loss before income taxes for the years ended December 31, 2019 , 2018 and 2017 are as follows (in thousands): 2019 2018 2017 U.S. $ (532,363 ) $ (285,141 ) $ (3,015 ) Non-U.S. (36,508 ) (104,613 ) (52,264 ) Loss before income taxes $ (568,871 ) $ (389,754 ) $ (55,279 ) |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the years ended December 31, 2019 , 2018 and 2017 are as follows (in thousands): 2019 2018 2017 Current U.S. federal and state $ (1,423 ) $ (6,932 ) $ (1,426 ) Non-U.S. 12,594 4,810 5,398 Total current 11,171 (2,122 ) 3,972 Deferred U.S. federal and state 3,580 (21,467 ) 6,415 Non-U.S. (16,565 ) 7,915 (6,266 ) Total deferred (12,985 ) (13,552 ) 149 Income tax expense (benefit) $ (1,814 ) $ (15,674 ) $ 4,121 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation between the actual provision for income taxes from continuing operations and that computed by applying the U.S. statutory rate to income before income taxes and noncontrolling interests are outlined below (in thousands): 2019 2018 2017 Income tax expense at the statutory rate $ (119,463 ) (21.0 )% $ (81,849 ) (21.0 )% $ (19,348 ) (35.0 )% State taxes, net of federal tax benefit (5,846 ) (1.0 )% (2,564 ) (0.7 )% (294 ) (0.5 )% Non-U.S. operations (4,023 ) (0.7 )% (10,166 ) (2.6 )% 6,337 11.5 % Domestic incentives (633 ) (0.1 )% (286 ) (0.1 )% (254 ) (0.5 )% Prior year federal, non-U.S. and state tax 257 — % (2,880 ) (0.7 )% (1,283 ) (2.3 )% Nondeductible expenses 348 0.1 % 502 0.1 % 644 1.2 % Goodwill impairment 27,244 4.8 % 46,051 11.8 % 14,731 26.6 % Global Tubing acquisition — — % — — % (9,160 ) (16.6 )% U.S. tax reform — — % (15,604 ) (4.0 )% 10,138 18.3 % Valuation allowance 98,900 17.4 % 50,005 12.8 % 4,523 8.2 % Other 1,402 0.2 % 1,117 0.4 % (1,913 ) (3.4 )% Income tax expense (benefit) $ (1,814 ) (0.3 )% $ (15,674 ) (4.0 )% $ 4,121 7.5 % |
Schedule of Deferred Tax Assets and Liabilities | The primary components of deferred taxes include (in thousands): 2019 2018 Deferred tax assets Reserves and accruals $ 4,590 $ 7,259 Operating lease liabilities 14,912 — Inventory 16,429 18,694 Stock awards 5,185 5,637 Net operating loss and other tax carryforwards 83,325 66,098 Goodwill and intangible assets 45,528 — Other 1,150 549 Gross deferred tax assets 171,119 98,237 Valuation allowance (152,795 ) (54,441 ) Total deferred tax assets 18,324 43,796 Deferred tax liabilities Property and equipment (7,733 ) (9,565 ) Operating lease assets (12,006 ) — Goodwill and intangible assets — (42,502 ) Investment in unconsolidated subsidiary — (5,402 ) Prepaid expenses and other (396 ) (392 ) Total deferred tax liabilities (20,135 ) (57,861 ) Net deferred tax liabilities $ (1,811 ) $ (14,065 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of uncertain tax positions is as follows (in thousands): Balance at January 1, 2019 $ 13,254 Additional based on tax positions related to prior years 2,069 Additional based on tax positions related to current year 2,057 Reduction based on tax positions related to prior years (666 ) Settlement with tax authorities (100 ) Lapse of statute of limitations (2,048 ) Balance at December 31, 2019 14,566 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The reconciliation of basic and diluted earnings per share for each period presented was as follows (dollars and shares in thousands, except per share amounts): Year ended December 31, 2019 2018 2017 Net loss attributable to common stockholders $ (567,057 ) $ (374,080 ) $ (59,400 ) Basic - weighted average shares outstanding 110,100 108,771 98,689 Dilutive effect of stock options and restricted stock — — — Diluted - weighted average shares outstanding 110,100 108,771 98,689 Loss per share Basic $ (5.15 ) $ (3.44 ) $ (0.60 ) Diluted $ (5.15 ) $ (3.44 ) $ (0.60 ) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following tables provide additional information related to stock options: 2019 Activity Number of shares Weighted average exercise price Remaining weighted average contractual life in years Intrinsic value Beginning balance 5,740 $ 12.39 3.7 $ — Granted — $ — Exercised — $ — Forfeited/expired (364 ) $ 13.05 Total outstanding 5,376 $ 12.35 2.5 $ — Options exercisable 5,033 $ 12.29 2.2 $ — |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The assumptions used in the Black-Scholes pricing model to estimate the fair value of stock options granted in 2018 and 2017 are as follows: 2019 2018 2017 Weighted average fair value n/a $5.62 $8.95 Assumptions Expected life (in years) n/a 6.25 6.25 Volatility n/a 44% 43% Dividend yield n/a —% —% Risk free interest rate n/a 2.74% 2.11% |
Schedule of Nonvested Restricted Stock Shares Activity | The following table provides additional information related to our restricted stock units: 2019 Activity Restricted stock units (shares in thousands) Nonvested at beginning of year 2,455 Granted 1,227 Vested (905 ) Forfeited (588 ) Nonvested at the end of year 2,189 Restricted stock generally vests over a three or four year period from the date of grant. The following table provides additional information related to our restricted stock: 2019 Activity Restricted stock (shares in thousands) Nonvested at beginning of year 195 Granted 150 Vested (135 ) Forfeited (2 ) Nonvested at the end of year 208 |
Schedule of Stock Appreciation Rights | The following table provides additional information related to our stock appreciation rights: 2019 Activity Stock Appreciation Rights (in thousands) Nonvested at beginning of year — Granted 6,352 Forfeited — Nonvested at the end of year 6,352 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summary financial data by segment follows (in thousands): Year ended December 31, 2019 2018 2017 Revenue: Drilling & Downhole $ 334,829 $ 334,019 $ 310,523 Completions 305,089 373,107 184,182 Production 320,996 361,407 327,287 Eliminations (4,381 ) (4,314 ) (3,372 ) Total revenue $ 956,533 $ 1,064,219 $ 818,620 Segment operating income (loss): Drilling & Downhole $ 7,343 $ (33,335 ) $ (47,106 ) Completions 6,581 31,924 8,797 Production 7,802 6,022 7,811 Corporate (28,928 ) (35,079 ) (33,427 ) Total segment operating loss (7,202 ) (30,468 ) (63,925 ) Impairments of goodwill, intangible assets, property and equipment 532,336 363,522 69,062 Transaction expenses 1,159 3,446 6,511 Contingent consideration benefit (4,629 ) — — Loss (gain) on disposal of assets and other 78 (438 ) 2,097 Operating loss $ (536,146 ) $ (396,998 ) $ (141,595 ) Depreciation and amortization Drilling & Downhole $ 21,433 $ 31,985 $ 38,463 Completions 32,780 33,943 17,631 Production 8,478 8,407 8,608 Corporate 550 173 427 Total depreciation and amortization $ 63,241 $ 74,508 $ 65,129 A summary of capital expenditures by reportable segment is as follows (in thousands): Year ended December 31, Capital expenditures 2019 2018 2017 Drilling & Downhole $ 3,169 $ 8,067 $ 7,093 Completions 3,886 4,997 4,789 Production 4,041 4,877 6,855 Corporate 4,006 6,102 7,972 Total capital expenditures $ 15,102 $ 24,043 $ 26,709 A summary of consolidated assets by reportable segment is as follows (in thousands): Year ended December 31, Assets 2019 2018 2017 Drilling & Downhole $ 407,779 $ 663,414 $ 1,057,378 Completions 496,714 872,731 790,255 Production 186,786 243,354 251,685 Corporate 68,718 50,153 95,910 Total assets $ 1,159,997 $ 1,829,652 $ 2,195,228 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | A summary of long-lived assets by country is as follows (in thousands): Year ended December 31, Long-lived assets: 2019 2018 2017 United States $ 397,219 $ 868,295 $ 1,087,381 Europe 54,519 100,451 213,008 Canada 32,703 87,221 88,280 Asia-Pacific 1,707 984 7,984 Middle East 5,653 6,049 7,362 Latin America 2,279 635 832 Total long-lived assets $ 494,080 $ 1,063,635 $ 1,404,847 The following table presents our revenues disaggregated by geography based on shipping destination (in thousands): Year ended December 31, 2019 2018 2017 Revenue: $ % $ % $ % United States $ 670,205 70.1 % $ 811,724 76.3 % $ 621,445 76.0 % Canada 62,651 6.5 % 68,635 6.4 % 60,898 7.4 % Europe & Africa 71,527 7.5 % 57,632 5.4 % 61,134 7.5 % Middle East 62,169 6.5 % 54,541 5.1 % 25,634 3.1 % Asia-Pacific 59,517 6.2 % 46,503 4.4 % 28,694 3.5 % Latin America 30,464 3.2 % 25,184 2.4 % 20,815 2.5 % Total Revenue $ 956,533 100.0 % $ 1,064,219 100.0 % $ 818,620 100.0 % |
Revenue from External Customers by Products and Services | The following table presents our revenues disaggregated by product line (in thousands): Year ended December 31, 2019 2018 2017 Revenue: $ % $ % $ % Drilling Technologies $ 157,648 16.6 % $ 178,260 16.6 % $ 168,816 20.6 % Downhole Technologies 116,104 12.1 % 104,974 9.9 % 76,010 9.3 % Subsea Technologies 61,077 6.4 % 50,785 4.8 % 65,697 8.0 % Stimulation and Intervention 162,025 16.9 % 228,721 21.5 % 148,666 18.2 % Coiled Tubing 143,064 15.0 % 144,386 13.6 % 35,516 4.3 % Production Equipment 122,654 12.8 % 141,169 13.3 % 124,323 15.2 % Valve Solutions 198,342 20.7 % 220,238 20.7 % 202,964 24.8 % Eliminations (4,381 ) (0.5 )% (4,314 ) (0.4 )% (3,372 ) (0.4 )% Total revenue $ 956,533 100.0 % $ 1,064,219 100.0 % $ 818,620 100.0 % |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed consolidating statements of income and comprehensive income | Condensed consolidating statements of comprehensive loss Year ended December 31, 2019 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 811,566 $ 211,665 $ (66,698 ) $ 956,533 Cost of sales — 614,429 162,715 (65,463 ) 711,681 Gross Profit — 197,137 48,950 (1,235 ) 244,852 Operating Expenses Selling, general and administrative expenses 69 208,862 42,805 — 251,736 Goodwill and intangible assets impairment — 487,212 45,124 — 532,336 Transaction Expenses — 1,067 92 — 1,159 Contingent consideration benefit — (4,629 ) — — (4,629 ) Loss (gain) on disposal of assets and other — 201 (123 ) — 78 Total operating expenses 69 692,713 87,898 — 780,680 Earnings (loss) from equity investment — (668 ) 350 — (318 ) Equity loss from affiliate, net of tax (535,435 ) (53,778 ) — 589,213 — Operating loss (535,504 ) (550,022 ) (38,598 ) 587,978 (536,146 ) Other expense (income) Interest expense (income) 31,553 (84 ) 149 — 31,618 Foreign exchange and other losses (gains), net — (138 ) 5,160 — 5,022 (Gain) loss realized on previously held equity investment — (14,045 ) 12,478 — (1,567 ) Gain on disposition of Business — (2,348 ) — — (2,348 ) Total other (income) expense, net 31,553 (16,615 ) 17,787 — 32,725 Loss before income taxes (567,057 ) (533,407 ) (56,385 ) 587,978 (568,871 ) Income tax expense (benefit) — 2,028 (3,842 ) — (1,814 ) Net loss (567,057 ) (535,435 ) (52,543 ) 587,978 (567,057 ) Other comprehensive income (loss), net of tax: Net loss (567,057 ) (535,435 ) (52,543 ) 587,978 (567,057 ) Change in foreign currency translation, net of tax of $0 7,958 7,958 7,958 (15,916 ) 7,958 Loss on pension liability (1,666 ) (1,666 ) (1,666 ) 3,332 (1,666 ) Comprehensive loss $ (560,765 ) $ (529,143 ) $ (46,251 ) $ 575,394 $ (560,765 ) Condensed consolidating statements of comprehensive loss Year ended December 31, 2018 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 936,319 $ 187,647 $ (59,747 ) $ 1,064,219 Cost of sales — 717,519 151,787 (61,459 ) 807,847 Gross Profit — 218,800 35,860 1,712 256,372 Operating Expenses Selling, general and administrative expenses — 231,492 55,488 — 286,980 Goodwill and intangible assets impairment — 233,635 129,887 — 363,522 Transaction Expenses — 2,926 520 — 3,446 Loss (gain) on disposal of assets and other — (1,274 ) 836 — (438 ) Total operating expenses — 466,779 186,731 — 653,510 Earnings (loss) from equity investment — 529 (389 ) — 140 Equity loss from affiliate, net of tax (348,557 ) (118,601 ) — 467,158 — Operating loss (348,557 ) (366,051 ) (151,260 ) 468,870 (396,998 ) Other expense (income) Interest expense 32,307 158 67 — 32,532 Foreign exchange and other gains, net — (296 ) (5,974 ) — (6,270 ) (Gain) loss on contribution of subsea rentals business — 5,856 (39,362 ) — (33,506 ) Total other (income) expense, net 32,307 5,718 (45,269 ) — (7,244 ) Loss before income taxes (380,864 ) (371,769 ) (105,991 ) 468,870 (389,754 ) Income tax expense (benefit) (6,784 ) (23,212 ) 14,322 — (15,674 ) Net loss (374,080 ) (348,557 ) (120,313 ) 468,870 (374,080 ) Other comprehensive income (loss), net of tax: Net loss (374,080 ) (348,557 ) (120,313 ) 468,870 (374,080 ) Change in foreign currency translation, net of tax of $0 (24,752 ) (24,752 ) (24,752 ) 49,504 (24,752 ) Gain on pension liability 1,489 1,489 1,489 (2,978 ) 1,489 Comprehensive loss $ (397,343 ) $ (371,820 ) $ (143,576 ) $ 515,396 $ (397,343 ) Condensed consolidating statements of comprehensive loss Year ended December 31, 2017 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Revenue $ — $ 703,409 $ 182,417 $ (67,206 ) $ 818,620 Cost of sales — 550,931 145,743 (66,842 ) 629,832 Gross Profit — 152,478 36,674 (364 ) 188,788 Operating Expenses Selling, general and administrative expenses — 205,672 48,041 — 253,713 Goodwill and intangible assets impairment — 33,301 35,761 — 69,062 Transaction Expenses — 6,521 (10 ) — 6,511 Loss on disposal of assets and other — 1,981 116 — 2,097 Total operating expenses — 247,475 83,908 — 331,383 Earnings from equity investment — 1,000 — — 1,000 Equity loss from affiliate, net of tax (41,253 ) (53,682 ) — 94,935 — Operating loss (41,253 ) (147,679 ) (47,234 ) 94,571 (141,595 ) Other expense (income) Interest expense (income) 27,919 (569 ) (542 ) — 26,808 Foreign exchange and other losses (gains), net — (118 ) 7,386 — 7,268 Gain realized on previously held equity investment — (120,392 ) — — (120,392 ) Total other (income) expense, net 27,919 (121,079 ) 6,844 — (86,316 ) Loss before income taxes (69,172 ) (26,600 ) (54,078 ) 94,571 (55,279 ) Income tax expense (benefit) (9,772 ) 14,653 (760 ) — 4,121 Net loss (59,400 ) (41,253 ) (53,318 ) 94,571 (59,400 ) Other comprehensive income (loss), net of tax: Net loss (59,400 ) (41,253 ) (53,318 ) 94,571 (59,400 ) Change in foreign currency translation, net of tax of $0 36,163 36,163 36,163 (72,326 ) 36,163 Gain on pension liability 107 107 107 (214 ) 107 Comprehensive loss (23,130 ) (4,983 ) (17,048 ) 22,031 (23,130 ) |
Condensed consolidating balance sheets | Condensed consolidating balance sheets December 31, 2019 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets Current assets Cash and cash equivalents $ — $ 32,387 $ 25,524 $ — $ 57,911 Accounts receivable—trade, net — 116,862 37,320 — 154,182 Inventories, net — 344,920 78,047 (8,327 ) 414,640 Prepaid expenses and other current assets — 31,485 2,335 — 33,820 Costs and estimated profits in excess of billings — 4,029 75 — 4,104 Accrued revenue — 428 832 — 1,260 Total current assets — 530,111 144,133 (8,327 ) 665,917 Property and equipment, net of accumulated depreciation — 133,974 20,862 — 154,836 Deferred financing costs, net 1,243 — — — 1,243 Operating lease assets — 29,518 19,164 — 48,682 Intangible assets — 245,507 26,793 — 272,300 Goodwill — — — — — Investment in unconsolidated subsidiary — — — — — Deferred income taxes, net — — 654 — 654 Other long-term assets — 6,682 9,683 — 16,365 Investment in affiliates 348,623 218,228 — (566,851 ) — Long-term advances to affiliates 541,351 — 116,053 (657,404 ) — Total assets $ 891,217 $ 1,164,020 $ 337,342 $ (1,232,582 ) $ 1,159,997 Liabilities and equity Current liabilities Current portion of long-term debt $ — $ 566 $ 151 $ — $ 717 Accounts payable—trade — 75,999 22,721 — 98,720 Accrued liabilities 7,640 35,746 43,239 — 86,625 Deferred revenue — 1,616 3,261 — 4,877 Billings in excess of costs and profits recognized — 787 5,124 — 5,911 Total current liabilities 7,640 114,714 74,496 — 196,850 Long-term debt, net of current portion 397,538 1,128 196 — 398,862 Deferred income taxes, net — — 2,465 — 2,465 Operating Lease liabilities — 29,896 20,042 — 49,938 Other long-term liabilities — 12,255 13,588 — 25,843 Long-term payables to affiliates — 657,404 — (657,404 ) — Total liabilities 405,178 815,397 110,787 (657,404 ) 673,958 — Total equity 486,039 348,623 226,555 (575,178 ) 486,039 Total liabilities and equity $ 891,217 $ 1,164,020 $ 337,342 $ (1,232,582 ) $ 1,159,997 Condensed consolidating balance sheets December 31, 2018 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Assets Current assets Cash and cash equivalents $ — $ 24,977 $ 22,264 $ — $ 47,241 Accounts receivable—trade, net — 177,986 28,069 — 206,055 Inventories, net — 416,237 69,878 (7,092 ) 479,023 Prepaid expenses and other current assets — 23,585 92 — 23,677 Costs and estimated profits in excess of billings — 6,202 2,957 — 9,159 Accrued revenue — — 862 — 862 Total current assets — 648,987 124,122 (7,092 ) 766,017 Property and equipment, net of accumulated depreciation — 156,434 20,924 — 177,358 Deferred financing costs, net 2,071 — — — 2,071 Intangible assets — 320,056 38,992 — 359,048 Goodwill — 433,415 36,232 — 469,647 Investment in unconsolidated subsidiary — 1,222 43,760 — 44,982 Deferred income taxes, net — 1,170 64 — 1,234 Other long-term assets — 4,194 5,101 — 9,295 Investment in affiliates 877,764 265,714 — (1,143,478 ) — Long-term advances to affiliates 674,220 — 98,532 (772,752 ) — Total assets $ 1,554,055 $ 1,831,192 $ 367,727 $ (1,923,322 ) $ 1,829,652 Liabilities and equity Current liabilities Current portion of long-term debt $ — $ 1,150 $ 17 $ — $ 1,167 Accounts payable—trade — 121,019 22,167 — 143,186 Accrued liabilities 6,873 40,913 33,246 — 81,032 Deferred revenue — 4,742 3,593 — 8,335 Billings in excess of costs and profits recognized — 84 3,126 — 3,210 Total current liabilities 6,873 167,908 62,149 — 236,930 Long-term debt, net of current portion 517,056 480 8 — 517,544 Deferred income taxes, net — — 15,299 — 15,299 Other long-term liabilities — 12,288 17,465 — 29,753 Long-term payables to affiliates — 772,752 — (772,752 ) — Total liabilities 523,929 953,428 94,921 (772,752 ) 799,526 Total equity 1,030,126 877,764 272,806 (1,150,570 ) 1,030,126 Total liabilities and equity $ 1,554,055 $ 1,831,192 $ 367,727 $ (1,923,322 ) $ 1,829,652 |
Condensed consolidating statements of cash flows | Condensed consolidating statements of cash flows Year ended December 31, 2019 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from operating activities $ (28,883 ) $ 143,219 $ (10,192 ) $ — $ 104,144 Cash flows from investing activities Capital expenditures for property and equipment — (13,619 ) (1,483 ) — (15,102 ) Acquisition of businesses, net of cash acquired — — — — — Investment in unconsolidated subsidiary — — — — — Proceeds from sale of business, property and equipment — 18,522 24,715 — 43,237 Long-term loans and advances to affiliates 148,977 — (10,362 ) (138,615 ) — Net cash provided by investing activities 148,977 4,903 12,870 (138,615 ) 28,135 Cash flows from financing activities Borrowings of debt 137,000 — — — 137,000 Repayments of debt (256,000 ) (900 ) — — (256,900 ) Repurchases of stock (1,094 ) — — — (1,094 ) Proceeds from stock issuance — — — — — Payment of capital lease obligations — (1,197 ) — — (1,197 ) Long-term loans and advances to affiliates — (138,615 ) — 138,615 — Dividend paid to affiliates — — — — — Net cash used in financing activities (120,094 ) (140,712 ) — 138,615 (122,191 ) Effect of exchange rate changes on cash — — 582 — 582 Net increase in cash, cash equivalents and restricted cash — 7,410 3,260 — 10,670 Cash, cash equivalents and restricted cash at beginning of period — 24,977 22,264 — 47,241 Cash, cash equivalents and restricted cash at end of period $ — $ 32,387 $ 25,524 $ — $ 57,911 Condensed consolidating statements of cash flows Year ended December 31, 2018 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from operating activities $ 10,461 $ (76 ) $ 15,972 $ (23,950 ) $ 2,407 Cash flows from investing activities Capital expenditures for property and equipment — (20,288 ) (3,755 ) — (24,043 ) Acquisition of businesses, net of cash acquired — (60,622 ) — — (60,622 ) Proceeds from sale of business, property and equipment — 5,192 4,066 — 9,258 Long-term loans and advances to affiliates (18,130 ) 9,690 — 8,440 — Net cash provided by (used in) investing activities (18,130 ) (66,028 ) 311 8,440 (75,407 ) Cash flows from financing activities Borrowings of debt 221,980 — — — 221,980 Repayments of debt (211,783 ) — — — (211,783 ) Repurchases of stock (2,777 ) — — — (2,777 ) Proceeds from stock issuance 249 — — — 249 Payment of capital lease obligations — (1,030 ) (117 ) — (1,147 ) Long-term loans and advances to affiliates — 18,130 (9,690 ) (8,440 ) — Dividend paid to affiliates — — (23,950 ) 23,950 — Net cash provided by (used in) financing activities 7,669 17,100 (33,757 ) 15,510 6,522 Effect of exchange rate changes on cash — — (1,497 ) — (1,497 ) Net decrease in cash, cash equivalents and restricted cash — (49,004 ) (18,971 ) — (67,975 ) Cash, cash equivalents and restricted cash at beginning of period — 73,981 41,235 — 115,216 Cash, cash equivalents and restricted cash at end of period $ — $ 24,977 $ 22,264 $ — $ 47,241 Condensed consolidating statements of cash flows Year ended December 31, 2017 FET (Parent) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (in thousands) Cash flows from operating activities $ (15,718 ) $ 483 $ 3,702 $ (28,500 ) $ (40,033 ) Cash flows from investing activities Capital expenditures for property and equipment — (20,499 ) (6,210 ) — (26,709 ) Acquisition of businesses, net of cash acquired — (157,297 ) (4,892 ) — (162,189 ) Investment in unconsolidated subsidiary — (1,041 ) — — (1,041 ) Proceeds from sale of property and equipment — 2,038 (67 ) — 1,971 Long-term loans and advances to affiliates (86,097 ) 22,072 — 64,025 — Net cash used in investing activities (86,097 ) (154,727 ) (11,169 ) 64,025 (187,968 ) Cash flows from financing activities Borrowings of debt 107,431 — — — 107,431 Repurchases of stock (4,742 ) — — — (4,742 ) Proceeds from stock issuance 1,491 — — — 1,491 Payment of capital lease obligations — (1,147 ) (40 ) — (1,187 ) Deferred financing costs (2,430 ) — — — (2,430 ) Long-term loans and advances to affiliates — 86,097 (22,072 ) (64,025 ) — Dividend paid to affiliates — — (28,500 ) 28,500 — Net cash provided by (used in) financing activities 101,750 84,950 (50,612 ) (35,525 ) 100,563 Effect of exchange rate changes on cash — — 8,232 — 8,232 Net decrease in cash, cash equivalents and restricted cash (65 ) (69,294 ) (49,847 ) — (119,206 ) Cash, cash equivalents and restricted cash at beginning of period 65 143,275 91,082 — 234,422 Cash, cash equivalents and restricted cash at end of period $ — $ 73,981 $ 41,235 $ — $ 115,216 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following tables summarize the Company’s results by quarter for the years ended December 31, 2019 and 2018 . The quarterly results may not be comparable primarily due to acquisitions and dispositions in 2019 , 2018 and 2017 . Refer to Note 4 Acquisitions & Dispositions for further information. 2019 (in thousands, except per share information) Q1 Q2 Q3 Q4 Revenues $ 271,842 $ 245,648 $ 239,266 $ 199,777 Cost of sales 201,744 182,460 176,632 150,845 Gross profit 70,098 63,188 62,634 48,932 Total operating expenses (1) 64,952 63,022 595,954 56,752 Earnings (loss) from equity investment (849 ) 570 (39 ) — Operating income (loss) 4,297 736 (533,359 ) (7,820 ) Total other expense, net (2) 10,458 6,077 2,999 13,191 Loss before income taxes (6,161 ) (5,341 ) (536,358 ) (21,011 ) Income tax expense (benefit) 1,727 8,393 (3,371 ) (8,563 ) Net loss (7,888 ) (13,734 ) (532,987 ) (12,448 ) Weighted average shares outstanding Basic 109,643 109,987 110,295 110,464 Diluted 109,643 109,987 110,295 110,464 Loss per share Basic $ (0.07 ) $ (0.12 ) $ (4.83 ) $ (0.11 ) Diluted $ (0.07 ) $ (0.12 ) $ (4.83 ) $ (0.11 ) (1) Q1 includes a $4.6 million contingent consideration benefit related to GHT. See Note 4 Acquisitions & Dispositions for further information related to this benefit. Q3 includes $471.0 million of goodwill impairments, $53.5 million of intangible asset impairments and $7.9 million of property and equipment impairments. See Note 7 Goodwill and Intangible Assets and Note 6 Property and Equipment for further information related to these charges. (2) Q3 includes a $1.6 million gain realized on the sale of our previously held equity investment in Ashtead. Q4 includes a 2.3 million gain on the sale of certain assets of our Cooper Alloy ® brand of valve products. See Note 4 Acquisitions & Dispositions for further information related to these gains. 2018 (in thousands, except per share information) Q1 Q2 Q3 Q4 Revenues $ 250,231 $ 274,003 $ 267,037 $ 272,948 Cost of sales 182,944 201,334 192,496 231,073 Gross profit 67,287 72,669 74,541 41,875 Total operating expenses (1) 73,030 84,721 72,764 422,995 Earnings (loss) from equity investment (963 ) 350 659 94 Operating income (loss) (6,706 ) (11,702 ) 2,436 (381,026 ) Total other expense (income), net (2) (21,868 ) 2,001 6,598 6,025 Income (loss) before income taxes 15,162 (13,703 ) (4,162 ) (387,051 ) Income tax expense (benefit) (12,904 ) 1,646 (1,108 ) (3,308 ) Net income (loss) 28,066 (15,349 ) (3,054 ) (383,743 ) Weighted average shares outstanding Basic 108,423 108,714 108,856 109,082 Diluted 110,857 108,714 108,856 109,082 Earnings (loss) per share Basic $ 0.26 $ (0.14 ) $ (0.03 ) $ (3.52 ) Diluted $ 0.25 $ (0.14 ) $ (0.03 ) $ (3.52 ) (1) Total operating expenses includes $14.5 million of intangible asset impairments for the Subsea and Downhole product lines in Q2, $298.8 million of goodwill impairment charges in Q4 and $50.2 million of intangible asset impairments in Q4. See Note 7 Goodwill and Intangible Assets for further information related to these charges. (2) Total other expenses includes a $33.5 million gain on contribution of our subsea rentals business in Q1. See Note 4 Acquisitions & Dispositions |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2019USD ($)reporting_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 03, 2019 | Jan. 01, 2019USD ($) | Jan. 03, 2018 | |
Property, Plant and Equipment [Line Items] | |||||||||
Impairment charges | $ 7,900 | ||||||||
Number of reporting units | reporting_unit | 7 | ||||||||
Impairment | $ 471,000 | $ 471,010 | $ 298,789 | $ 68,000 | |||||
Impairment of intangible assets | $ 53,500 | $ 50,200 | $ 14,500 | 64,700 | 1,100 | ||||
Percent of revenue from goods and services transferred at point in time | 96.00% | ||||||||
Percent of revenue from goods and services transferred over time | 4.00% | ||||||||
U.S. tax reform expense (benefit) | $ 0 | 15,604 | $ (10,138) | ||||||
Operating lease assets | 0 | 48,682 | 0 | $ 54,069 | |||||
Present value of lease liabilities | 62,476 | 64,506 | |||||||
Allowance for doubtful accounts | $ 7,432 | $ 9,048 | $ 7,432 | ||||||
Minimum | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated useful life, property and equipment | 3 years | ||||||||
Estimated useful life, intangible assets | 2 years | ||||||||
Minimum | Rental equipment | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated useful life, property and equipment | 3 years | ||||||||
Maximum | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated useful life, property and equipment | 30 years | ||||||||
Estimated useful life, intangible assets | 22 years | ||||||||
Maximum | Rental equipment | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Estimated useful life, property and equipment | 10 years | ||||||||
Accounting Standards Update 2016-02 | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Operating lease assets | 54,000 | ||||||||
Present value of lease liabilities | $ 65,000 | ||||||||
Accounting Standards Update 2016-13 | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Allowance for doubtful accounts | $ 4,000 | ||||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Ashtead Technology | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Equity interest received in sale of business | 40.00% | 40.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Allowance for doubtful accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 7,432 | $ 5,795 | $ 3,331 |
Charged to expense | 3,152 | 3,342 | 2,903 |
Deductions or other | (1,536) | (1,705) | (439) |
Balance at end of period | $ 9,048 | $ 7,432 | $ 5,795 |
Revenues (Schedule of Changes i
Revenues (Schedule of Changes in Contract Asset and Contract Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Contract with Customer, Asset, after Allowance for Credit Loss [Abstract] | ||
Accrued revenue | $ 1,260 | $ 862 |
Costs and estimated profits in excess of billings | 4,104 | 9,159 |
Contract assets | 5,364 | 10,021 |
Increase (decrease) in contract with customer assets | $ (4,657) | |
Increase (decrease) in contract with customer assets, percent | (46.00%) | |
Contract with Customer, Liability [Abstract] | ||
Deferred revenue | $ 4,877 | 8,335 |
Billings in excess of costs and profits recognized | 5,911 | 3,210 |
Contract liabilities | 10,788 | $ 11,545 |
Increase (decrease) in contract with customer liabilities | $ (757) | |
Increase (decrease) in contract with customer liabilities, percent | (7.00%) |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Increase (decrease) in contract with customer assets | $ (4,657) |
Increase (decrease) in contract with customer liabilities | (757) |
Revenue recognized | $ 6,500 |
Acquisitions & Dispositions (Na
Acquisitions & Dispositions (Narrative) (Details) $ in Thousands, £ in Millions | Sep. 03, 2019USD ($) | Oct. 05, 2018USD ($) | Jul. 02, 2018USD ($) | Oct. 02, 2017USD ($) | Jan. 09, 2017USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 04, 2019USD ($) | Sep. 03, 2019GBP (£) | Jan. 03, 2018USD ($) | Jan. 03, 2018GBP (£) | Jul. 03, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||||||||
Acquisition of businesses, net of cash acquired | $ 0 | $ 60,622 | $ 162,189 | |||||||||||||||||||
Reduction to contingent cash liability | (4,629) | 0 | 0 | |||||||||||||||||||
Cash | $ 31,764 | |||||||||||||||||||||
Revenues | $ 199,777 | $ 239,266 | $ 245,648 | $ 271,842 | $ 272,948 | $ 267,037 | $ 274,003 | $ 250,231 | 956,533 | 1,064,219 | 818,620 | |||||||||||
Net income | (567,057) | (374,080) | (59,400) | |||||||||||||||||||
Income tax expense at the statutory rate | (119,463) | (81,849) | (19,348) | |||||||||||||||||||
Contingent shares issued for acquisition of Cooper | 173,472 | 375 | ||||||||||||||||||||
Gain on disposition of business | 2,348 | 0 | 0 | |||||||||||||||||||
Gain on contribution of subsea rentals business | (33,500) | 0 | $ 33,506 | 0 | ||||||||||||||||||
Houston Global Heat Transfer LLC | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Percentage of voting interests acquired | 100.00% | |||||||||||||||||||||
Acquisition of businesses, net of cash acquired | $ 57,300 | |||||||||||||||||||||
Reduction to contingent cash liability | $ (4,600) | |||||||||||||||||||||
ESP Completion Technologies LLC | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Cash | $ 8,000 | |||||||||||||||||||||
Global Tubing LLC | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Total consideration paid | $ 290,320 | |||||||||||||||||||||
Revenues | $ 35,500 | |||||||||||||||||||||
Net income | $ 3,800 | |||||||||||||||||||||
Equity interest in acquiree remeasurement gain (loss) | 120,400 | |||||||||||||||||||||
Income tax expense at the statutory rate | $ 45,000 | |||||||||||||||||||||
Multilift | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Cash consideration amount | $ 39,200 | |||||||||||||||||||||
Innovative Valve Components and Cooper Valves, LLC | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Percentage of voting interests acquired | 100.00% | |||||||||||||||||||||
Total consideration paid | $ 14,000 | |||||||||||||||||||||
Contingent shares issued for acquisition of Cooper | $ 4,500 | |||||||||||||||||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Consideration for disposal group | $ 47,700 | $ 4,000 | ||||||||||||||||||||
Gain on disposition of business | 39,300 | $ 2,300 | ||||||||||||||||||||
Note receivable received as consideration in sale of business | £ | £ 6.9 | £ 3 | ||||||||||||||||||||
Gain realized on previously held equity investment | $ 1,600 | |||||||||||||||||||||
Gain on contribution of subsea rentals business | $ 33,500 | |||||||||||||||||||||
Cash consideration received in sale of business | £ | £ 2.7 | |||||||||||||||||||||
Subsea rental assets carry value | $ 18,100 | |||||||||||||||||||||
Ashtead Technology | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Equity interest received in sale of business | 40.00% | 40.00% | 40.00% | 40.00% | ||||||||||||||||||
Equity ownership interest fair value | $ 43,800 |
Acquisitions & Dispositions (Pu
Acquisitions & Dispositions (Purchase Price Allocation) (Details) - Houston Global Heat Transfer LLC $ in Thousands | Oct. 05, 2018USD ($) |
Business Acquisition [Line Items] | |
Current assets, net of cash acquired | $ 18,468 |
Property and equipment | 2,408 |
Non-current assets | 238 |
Intangible assets (primarily customer relationships) | 30,400 |
Tax-deductible goodwill | 20,746 |
Current liabilities | (12,633) |
Long term liabilities | (2,355) |
Net assets acquired, net of cash acquired | $ 57,272 |
Acquisitions & Dispositions (Pr
Acquisitions & Dispositions (Pro Forma) (Details) - Global Tubing LLC $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Net sales | $ 901,856 |
Net loss attributable to common stockholders | $ (125,204) |
Acquisitions & Dispositions (St
Acquisitions & Dispositions (Stock Consideration in Acquisitions) (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 02, 2017 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||
Forum Energy Technologies' closing stock price on October 2, 2017 (in dollars per share) | $ 15.10 | |
Contingent shares issued for acquisition of Cooper | $ 173,472 | $ 375 |
Cash | 31,764 | |
Repayment of Global Tubing debt at acquisition | $ 85,084 | |
Global Tubing LLC | ||
Business Acquisition [Line Items] | ||
Number of shares issued in acquisition (in shares) | 11,488,208 | |
Total Consideration paid for the acquisition | $ 290,320 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||||
Raw materials and parts | $ 172,083 | $ 212,526 | ||
Work in process | 29,972 | 39,494 | ||
Finished goods | 278,660 | 302,590 | ||
Gross inventories | 480,715 | 554,610 | ||
Inventory reserve | (66,075) | (75,587) | $ (74,318) | $ (68,352) |
Inventories | $ 414,640 | $ 479,023 |
Inventories (Inventory reserve)
Inventories (Inventory reserve) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory Valuation Reserves Increase (Decrease) [Roll Forward] | |||
Balance at beginning of period | $ 75,587 | $ 74,318 | $ 68,352 |
Charged to expense | 10,324 | 36,606 | 14,620 |
Deductions or other | (19,836) | (35,337) | (8,654) |
Balance at end of period | $ 66,075 | $ 75,587 | $ 74,318 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |||
Right of use assets - finance leases | $ 2,528 | ||
Less: accumulated depreciation | (199,210) | $ (180,717) | |
Property and equipment, net | 154,411 | 171,576 | |
Rental equipment | 353,621 | 352,293 | |
Rental equipment, net | 154,836 | 177,358 | |
Depreciation expense | 30,629 | 33,148 | $ 34,401 |
Impairment charges | 7,900 | ||
Total property and equipment, net | 154,836 | 177,358 | |
Subsea product line | |||
Property, Plant and Equipment, Net [Abstract] | |||
Impairment charges | 5,200 | ||
Stimulation and Intervention | |||
Property, Plant and Equipment, Net [Abstract] | |||
Impairment charges | $ 2,700 | ||
Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 3 years | ||
Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 30 years | ||
Land | |||
Property, Plant and Equipment, Net [Abstract] | |||
Rental equipment | $ 9,870 | 9,755 | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment, Net [Abstract] | |||
Rental equipment | $ 103,383 | 103,761 | |
Buildings and leasehold improvements | Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 5 years | ||
Buildings and leasehold improvements | Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 30 years | ||
Computer equipment | |||
Property, Plant and Equipment, Net [Abstract] | |||
Rental equipment | $ 55,941 | 54,721 | |
Computer equipment | Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 3 years | ||
Computer equipment | Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 5 years | ||
Machinery & equipment | |||
Property, Plant and Equipment, Net [Abstract] | |||
Rental equipment | $ 166,123 | 162,110 | |
Machinery & equipment | Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 5 years | ||
Machinery & equipment | Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 10 years | ||
Furniture & fixtures | |||
Property, Plant and Equipment, Net [Abstract] | |||
Rental equipment | $ 6,731 | 6,631 | |
Furniture & fixtures | Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 3 years | ||
Furniture & fixtures | Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 10 years | ||
Vehicles | |||
Property, Plant and Equipment, Net [Abstract] | |||
Rental equipment | $ 5,382 | 6,160 | |
Vehicles | Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 3 years | ||
Vehicles | Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 5 years | ||
Construction in progress | |||
Property, Plant and Equipment, Net [Abstract] | |||
Rental equipment | $ 3,663 | 9,155 | |
Right of use assets - finance leases | Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 2 years | ||
Right of use assets - finance leases | Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 6 years | ||
Rental equipment | |||
Property, Plant and Equipment, Net [Abstract] | |||
Rental equipment | $ 3,779 | 9,535 | |
Less: accumulated depreciation | (3,354) | (3,753) | |
Rental equipment, net | $ 425 | $ 5,782 | |
Rental equipment | Minimum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 3 years | ||
Rental equipment | Maximum | |||
Property, Plant and Equipment, Net [Abstract] | |||
Estimated useful life, property and equipment | 10 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||||
Goodwill beginning balance | $ 469,647 | $ 755,245 | ||
Acquisitions, net of dispositions | 614 | 22,312 | ||
Impairment | $ (471,000) | (471,010) | (298,789) | $ (68,000) |
Impact of non-U.S. local currency translation | 749 | (9,121) | ||
Goodwill ending balance | 0 | 469,647 | 755,245 | |
Production | ||||
Goodwill [Roll Forward] | ||||
Impairment | $ (4,600) | |||
Operating Segments | Drilling & Downhole | ||||
Goodwill [Roll Forward] | ||||
Goodwill beginning balance | 191,151 | 494,983 | ||
Acquisitions, net of dispositions | 427 | 1,753 | ||
Impairment | (191,485) | (298,789) | ||
Impact of non-U.S. local currency translation | (93) | (6,796) | ||
Goodwill ending balance | 0 | 191,151 | 494,983 | |
Operating Segments | Completions | ||||
Goodwill [Roll Forward] | ||||
Goodwill beginning balance | 259,280 | 240,816 | ||
Acquisitions, net of dispositions | 187 | 20,559 | ||
Impairment | (260,238) | 0 | ||
Impact of non-U.S. local currency translation | 771 | (2,095) | ||
Goodwill ending balance | 0 | 259,280 | 240,816 | |
Operating Segments | Production | ||||
Goodwill [Roll Forward] | ||||
Goodwill beginning balance | 19,216 | 19,446 | ||
Acquisitions, net of dispositions | 0 | 0 | ||
Impairment | 19,287 | 0 | ||
Impact of non-U.S. local currency translation | 71 | (230) | ||
Goodwill ending balance | $ 0 | $ 19,216 | $ 19,446 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment | $ 471,000 | $ 471,010 | $ 298,789 | $ 68,000 | |||
Accumulated impairment loss on goodwill | $ 535,600 | 1,006,600 | 535,600 | 236,800 | |||
Impairment of intangible assets | 53,500 | 50,200 | $ 14,500 | 64,700 | 1,100 | ||
Amortization of intangible assets | $ 32,612 | 41,360 | $ 30,728 | ||||
Production | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment | 4,600 | ||||||
Valve Solutions | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment | 14,700 | ||||||
Downhole Technologies | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment | 191,500 | $ 53,400 | |||||
Stimulation and Intervention | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment | 126,300 | ||||||
Coiled Tubing | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment | $ 133,900 | ||||||
Drilling Technologies | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment | $ 245,400 | ||||||
Subsea Technologies | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment | $ 68,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Finite-Lived and Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (171,973) | $ (169,109) |
Intangible Assets Total, Gross carrying amount | 444,273 | 528,157 |
Intangible Assets Total, Net amortizable intangibles | 272,300 | 359,048 |
Customer relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 281,052 | 337,546 |
Accumulated amortization | (110,410) | (110,228) |
Net amortizable intangibles | 170,642 | 227,318 |
Patents and technology | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 92,498 | 104,394 |
Accumulated amortization | (20,819) | (17,148) |
Net amortizable intangibles | 71,679 | 87,246 |
Non-compete agreements | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 190 | 6,245 |
Accumulated amortization | (100) | (5,600) |
Net amortizable intangibles | 90 | 645 |
Trade names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 43,284 | 47,493 |
Accumulated amortization | (21,015) | (18,107) |
Net amortizable intangibles | 22,269 | 29,386 |
Distributor relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 22,160 | 22,160 |
Accumulated amortization | (18,866) | (17,602) |
Net amortizable intangibles | 3,294 | 4,558 |
Trademark | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 5,089 | 10,319 |
Accumulated amortization | (763) | (424) |
Net amortizable intangibles | $ 4,326 | $ 9,895 |
Maximum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated useful life, intangible assets | 22 years | |
Maximum | Customer relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated useful life, intangible assets | 15 years | 15 years |
Maximum | Patents and technology | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated useful life, intangible assets | 19 years | 17 years |
Maximum | Non-compete agreements | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated useful life, intangible assets | 6 years | 6 years |
Maximum | Trade names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated useful life, intangible assets | 19 years | 15 years |
Maximum | Distributor relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated useful life, intangible assets | 22 years | 15 years |
Minimum | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated useful life, intangible assets | 2 years | |
Minimum | Customer relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated useful life, intangible assets | 10 years | 4 years |
Minimum | Patents and technology | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated useful life, intangible assets | 5 years | 5 years |
Minimum | Non-compete agreements | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated useful life, intangible assets | 2 years | 3 years |
Minimum | Trade names | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated useful life, intangible assets | 7 years | 10 years |
Minimum | Distributor relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated useful life, intangible assets | 15 years | 8 years |
Minimum | Trademark | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Estimated useful life, intangible assets | 15 years | 15 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Amortization Expense) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Estimated future amortization expense | |
2020 | $ 27,974 |
2021 | 26,951 |
2022 | 25,976 |
2023 | 24,413 |
2024 | $ 22,872 |
Debt (Schedule of Long-Term Deb
Debt (Schedule of Long-Term Debt) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 399,579,000 | $ 518,711,000 |
Unamortized debt premium | 770,000 | 1,176,000 |
Debt issuance cost | (3,232,000) | (3,121,000) |
Less: current maturities | (717,000) | (1,167,000) |
Long-term debt | 398,862,000 | 517,544,000 |
Senior unsecured notes due October 2021 | ||
Debt Instrument [Line Items] | ||
Total debt | 400,000,000 | 400,000,000 |
Senior secured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 119,000,000 |
Other debt | ||
Debt Instrument [Line Items] | ||
Total debt | $ 2,041,000 | $ 1,656,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2017 | Oct. 30, 2017 | Nov. 30, 2013 | Oct. 31, 2013 | |
Debt Instrument [Line Items] | |||||||
Debt instrument, carrying value | $ 399,579,000 | $ 518,711,000 | |||||
Amortization of deferred loan costs | $ 1,900,000 | 1,900,000 | $ 1,700,000 | ||||
2017 Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Unused capacity, commitment fee percentage | 0.375% | ||||||
Revolving Credit Facility | 2017 Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, accordion feature, increase limit | $ 100,000,000 | ||||||
Revolving Credit Facility | 2017 Credit Facility | Federal Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
Revolving Credit Facility | 2017 Credit Facility | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.00% | ||||||
Revolving Credit Facility | 2017 Credit Facility | CDOR Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.00% | ||||||
Debt Instrument, Redemption, Period Four | Revolving Credit Facility | 2017 Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.50% | ||||||
Debt Instrument, Redemption, Period Five | Revolving Credit Facility | 2017 Credit Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.25% | ||||||
Debt Instrument, Redemption, Period Five | Revolving Credit Facility | 2017 Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.375% | ||||||
Senior unsecured notes due October 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Debt, face amount | $ 100,000,000 | $ 300,000,000 | |||||
Debt instrument, issuance price of par, percentage | 103.25% | ||||||
Debt instrument, stated interest rate | 6.25% | ||||||
Debt instrument, carrying value | $ 400,000,000 | 400,000,000 | |||||
Senior unsecured notes due October 2021 | Debt Instrument, Redemption, Period Three | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage | 100.00% | ||||||
Senior secured revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 20,000,000 | ||||||
Debt instrument, carrying value | $ 0 | $ 119,000,000 | |||||
Percentage of borrowing base | 10.00% | ||||||
Senior secured revolving credit facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Springing fixed charge coverage ratio | 1 | ||||||
Fixed charge coverage ratio consecutive days threshold | 60 days | ||||||
Senior secured revolving credit facility | 2017 Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Current borrowing capacity | $ 253,000,000 | ||||||
Debt instrument, carrying value | 0 | ||||||
Senior secured revolving credit facility | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 300,000,000 | ||||||
Senior secured revolving credit facility | Foreign Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 45,000,000 | ||||||
Senior secured revolving credit facility | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 30,000,000 | ||||||
Senior secured revolving credit facility | Letter of Credit | 2017 Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding letters of credit | 23,900,000 | ||||||
Remaining borrowing capacity | $ 229,100,000 | ||||||
Senior secured revolving credit facility | Letter of Credit | Canadian Subsidiaries | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 3,000,000 | ||||||
Senior secured revolving credit facility | Debt Instrument, Redemption, Period Two | |||||||
Debt Instrument [Line Items] | |||||||
Senior secured debt to adjusted EBITDA ratio | 4 | ||||||
Debt, weighted average interest rate (percentage) | 4.16% | ||||||
Senior secured revolving credit facility | Debt Instrument, Redemption, Period Three | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of borrowing base | 50.00% | ||||||
Minimum leverage ratio | 0.0200 | ||||||
Senior secured debt to adjusted EBITDA ratio | 0.0150 | ||||||
Senior secured revolving credit facility | Debt Instrument, Redemption, Period One | |||||||
Debt Instrument [Line Items] | |||||||
Minimum leverage ratio | 0.0175 | ||||||
Senior secured debt to adjusted EBITDA ratio | 0.0225 |
Debt (Schedule of Future Paymen
Debt (Schedule of Future Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 806 | |
2021 | 400,806 | |
2022 | 441 | |
2023 | 43 | |
2024 | 19 | |
Thereafter | 5 | |
Total future payment | 402,120 | |
Add: Unamortized debt premium | 770 | $ 1,176 |
Less: Debt issuance cost | (3,232) | (3,121) |
Less: present value discount on finance leases | (79) | |
Total debt | $ 399,579 | $ 518,711 |
Leases Narrative (Details)
Leases Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Rent expense | $ 13,675 | $ 18,300 | $ 19,300 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 14 years |
Leases - Schedule of Lease Asse
Leases - Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Operating lease assets | $ 48,682 | $ 54,069 | $ 0 |
Finance lease assets | 2,085 | ||
Total lease assets | 50,767 | ||
Current | |||
Operating | 12,538 | ||
Finance | 717 | ||
Noncurrent | |||
Operating | 49,938 | $ 0 | |
Finance | 1,324 | ||
Total lease liabilities | $ 64,517 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating lease cost | $ 13,675 | $ 18,300 | $ 19,300 |
Finance lease cost | |||
Amortization of leased assets | 445 | ||
Interest on lease liabilities | 81 | ||
Sublease income | (1,635) | ||
Net lease cost | $ 12,566 |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liability Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Operating Leases | ||
2020 | $ 16,873 | |
2021 | 14,064 | |
2022 | 10,888 | |
2023 | 7,550 | |
2024 | 6,344 | |
Thereafter | 25,502 | |
Total lease payments | 81,221 | |
Less: present value discount | (18,745) | |
Present value of lease liabilities | 62,476 | $ 64,506 |
Finance Leases | ||
2020 | 806 | |
2021 | 806 | |
2022 | 441 | |
2023 | 43 | |
2024 | 19 | |
Thereafter | 5 | |
Total lease payments | 2,120 | |
Less: present value discount | (79) | |
Present value of lease liabilities | 2,041 | |
Total | ||
2020 | 17,679 | |
2021 | 14,870 | |
2022 | 11,329 | |
2023 | 7,593 | |
2024 | 6,363 | |
Thereafter | 25,507 | |
Total lease payments | 83,341 | |
Less: present value discount | (18,824) | |
Present value of lease liabilities | $ 64,517 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 17,536 |
2020 | 14,826 |
2021 | 12,800 |
2022 | 11,202 |
2023 | 5,701 |
Thereafter | 15,069 |
Total | $ 77,134 |
Leases - Schedule of Remaining
Leases - Schedule of Remaining Lease Term and Discount Rates (Details) | Dec. 31, 2019 |
Weighted-average remaining lease term (years) | |
Operating leases | 6 years 9 months 18 days |
Financing leases | 2 years 9 months 18 days |
Weighted-average discount rate | |
Operating leases | 6.58% |
Financing leases | 6.58% |
Leases - Schedule of Lease Cash
Leases - Schedule of Lease Cash Flows (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 12,679 | |||
Operating cash flows from finance leases | 81 | |||
Financing cash flows from finance leases | 1,197 | |||
Noncash activities from right-of-use assets obtained in exchange for lease obligations: | ||||
Operating leases | 9,745 | |||
Finance leases | 1,822 | |||
Noncash activities from adoption of ASC 842 as of January 1, 2019 | ||||
Prepaid expenses and other current assets | $ 884 | 621 | $ (7,980) | $ 12,462 |
Operating lease assets | 54,069 | 48,682 | $ 0 | |
Operating lease liabilities | 64,506 | $ 62,476 | ||
Accrued liabilities | $ 11,321 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income before Income Tax, Domestic and Foreign) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ (532,363) | $ (285,141) | $ (3,015) | ||||||||
Non-U.S. | (36,508) | (104,613) | (52,264) | ||||||||
Loss before income taxes | $ (21,011) | $ (536,358) | $ (5,341) | $ (6,161) | $ (387,051) | $ (4,162) | $ (13,703) | $ 15,162 | $ (568,871) | $ (389,754) | $ (55,279) |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||||||||||
U.S. federal and state | $ (1,423) | $ (6,932) | $ (1,426) | ||||||||
Non-U.S. | 12,594 | 4,810 | 5,398 | ||||||||
Total current | 11,171 | (2,122) | 3,972 | ||||||||
Deferred | |||||||||||
U.S. federal and state | 3,580 | (21,467) | 6,415 | ||||||||
Non-U.S. | (16,565) | 7,915 | (6,266) | ||||||||
Total deferred | (12,985) | (13,552) | 149 | ||||||||
Income tax expense (benefit) | $ (8,563) | $ (3,371) | $ 8,393 | $ 1,727 | $ (3,308) | $ (1,108) | $ 1,646 | $ (12,904) | $ (1,814) | $ (15,674) | $ 4,121 |
Income Taxes (Income Tax Rate R
Income Taxes (Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||||||||||
Income tax expense at the statutory rate | $ (119,463) | $ (81,849) | $ (19,348) | ||||||||
State taxes, net of federal tax benefit | (5,846) | (2,564) | (294) | ||||||||
Non-U.S. operations | (4,023) | (10,166) | 6,337 | ||||||||
Domestic incentives | (633) | (286) | (254) | ||||||||
Prior year federal, non-U.S. and state tax | 257 | (2,880) | (1,283) | ||||||||
Nondeductible expenses | 348 | 502 | 644 | ||||||||
Goodwill impairment | 27,244 | 46,051 | 14,731 | ||||||||
Global Tubing acquisition | 0 | 0 | (9,160) | ||||||||
U.S. tax reform | 0 | (15,604) | 10,138 | ||||||||
Valuation allowance | 98,900 | 50,005 | 4,523 | ||||||||
Other | 1,402 | 1,117 | (1,913) | ||||||||
Income tax expense (benefit) | $ (8,563) | $ (3,371) | $ 8,393 | $ 1,727 | $ (3,308) | $ (1,108) | $ 1,646 | $ (12,904) | $ (1,814) | $ (15,674) | $ 4,121 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||
Income tax expense at the statutory rate | (21.00%) | (21.00%) | (35.00%) | ||||||||
State taxes, net of federal tax benefit | (1.00%) | (0.70%) | (0.50%) | ||||||||
Non-U.S. operations | (0.70%) | (2.60%) | 11.50% | ||||||||
Domestic incentives | (0.10%) | (0.10%) | (0.50%) | ||||||||
Prior year federal, non-U.S. and state tax | 0.00% | (0.70%) | (2.30%) | ||||||||
Nondeductible expenses | 0.10% | 0.10% | 1.20% | ||||||||
Goodwill impairment | 4.80% | 11.80% | 26.60% | ||||||||
Global Tubing acquisition | 0.00% | 0.00% | (16.60%) | ||||||||
U.S. tax reform | 0 | (0.040) | 0.183 | ||||||||
Valuation allowance | 17.40% | 12.80% | 8.20% | ||||||||
Other | 0.20% | 0.40% | (3.40%) | ||||||||
Income tax expense (benefit) | (0.30%) | (4.00%) | 7.50% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss and Tax Credit Carryforwards [Line Items] | |||
Effective income tax rate | 0.30% | 4.00% | (7.50%) |
U.S. tax reform expense (benefit) | $ 0 | $ (15,604) | $ 10,138 |
Goodwill impairment | 27,244 | 46,051 | 14,731 |
Valuation allowance | 98,900 | 50,005 | 4,523 |
Provisional estimate related to deemed repatriation | 27,700 | ||
Net tax benefit related to U.S. tax reform | (5,500) | ||
Domestic operating loss carryforwards | 238,300 | ||
State operating loss carryforwards | 7,500 | ||
Operating loss carryforward subject to expiration | 151,100 | ||
Operating loss carryforwards not subject to expiration | 94,700 | ||
Foreign operating loss carryforwards | 155,400 | ||
Unrecognized tax benefits | 14,566 | 13,254 | |
Decrease in unrecognized tax benefits is reasonably possible | 1,800 | ||
Unrecognized tax benefits that would impact effective tax rate | 12,500 | ||
Accrued interest and penalties | 300 | $ 300 | |
Non-US | |||
Operating Loss and Tax Credit Carryforwards [Line Items] | |||
Valuation allowance | 900 | ||
U.S. | |||
Operating Loss and Tax Credit Carryforwards [Line Items] | |||
Valuation allowance | 98,000 | ||
Tax benefit from measurement of deferred tax liabilities | $ (17,600) | ||
Subsea Technologies | |||
Operating Loss and Tax Credit Carryforwards [Line Items] | |||
Goodwill impairment | $ 27,200 |
Income Taxes (Deferred Taxes) (
Income Taxes (Deferred Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Reserves and accruals | $ 4,590 | $ 7,259 |
Operating lease liabilities | 14,912 | |
Inventory | 16,429 | 18,694 |
Stock awards | 5,185 | 5,637 |
Net operating loss and other tax carryforwards | 83,325 | 66,098 |
Goodwill and intangible assets | 45,528 | 0 |
Other | 1,150 | 549 |
Total deferred tax assets | 171,119 | 98,237 |
Valuation allowance | (152,795) | (54,441) |
Total deferred tax assets | 18,324 | 43,796 |
Deferred tax liabilities | ||
Property and equipment | (7,733) | (9,565) |
Operating lease assets | (12,006) | |
Goodwill and intangible assets | 0 | (42,502) |
Investment in unconsolidated subsidiary | 0 | (5,402) |
Prepaid expenses and other | (396) | (392) |
Total deferred tax liabilities | (20,135) | (57,861) |
Net deferred tax liabilities | $ (1,811) | $ (14,065) |
Income Taxes (Uncertain Tax Pos
Income Taxes (Uncertain Tax Positions) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Beginning Balance | $ 13,254 |
Additional based on tax positions related to prior years | 2,069 |
Additional based on tax positions related to current year | 2,057 |
Reduction based on tax positions related to prior years | (666) |
Settlement with tax authorities | (100) |
Lapse of statute of limitations | (2,048) |
Ending Balance | $ 14,566 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, carrying value | $ 399,579,000 | $ 518,711,000 |
Senior secured revolving credit facility | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, carrying value | 0 | 119,000,000 |
Senior unsecured notes due October 2021 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, carrying value | 400,000,000 | 400,000,000 |
Senior unsecured notes due October 2021 | Significant other observable inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt instrument, carrying value | 397,500,000 | 398,100,000 |
Debt instrument, fair value | $ 354,000,000 | $ 362,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 12 Months Ended | 24 Months Ended | 60 Months Ended | 108 Months Ended | ||||
Jan. 31, 2011insurer | Dec. 31, 2019USD ($)defendantcase | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2019USD ($)case | Dec. 31, 2019USD ($)case | Dec. 31, 2019USD ($)case | |
Loss Contingencies [Line Items] | |||||||||
Amount of letters of credit | $ 24,500,000 | $ 24,500,000 | $ 24,500,000 | $ 24,500,000 | |||||
Asbestos Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of defendants | defendant | 40 | ||||||||
Asbestos Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Annual out-of-pocket costs (less than) | $ 200,000 | $ 200,000 | $ 200,000 | $ 200,000 | $ 200,000 | ||||
New claims filed each year (fewer than) | case | 25 | ||||||||
Pending lawsuits (fewer than) | case | 150 | 150 | 150 | 150 | |||||
Face amount of insurance coverage per occurrence (over) | $ 17,000,000 | $ 17,000,000 | $ 17,000,000 | $ 17,000,000 | |||||
Aggregate primary insurance coverage (over) | 23,000,000 | 23,000,000 | 23,000,000 | 23,000,000 | |||||
Face amount of excess coverage (over) | $ 950,000,000 | 950,000,000 | $ 950,000,000 | 950,000,000 | |||||
Number of primary insurers under settlement agreement | insurer | 7 | ||||||||
Percentage of costs of handling and settling each claim covered by insurance | 80.00% | ||||||||
Insurers | |||||||||
Loss Contingencies [Line Items] | |||||||||
Payments for legal settlements | $ 40,000 | $ 2,000,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss attributable to common stockholders | $ (567,057) | $ (374,080) | $ (59,400) | ||||||||
Basic - weighted average shares outstanding (in shares) | 110,464 | 110,295 | 109,987 | 109,643 | 109,082 | 108,856 | 108,714 | 108,423 | 110,100 | 108,771 | 98,689 |
Dilutive effect of stock options and restricted stock (in shares) | 0 | 0 | 0 | ||||||||
Diluted - weighted average shares outstanding (in shares) | 110,464 | 110,295 | 109,987 | 109,643 | 109,082 | 108,856 | 108,714 | 110,857 | 110,100 | 108,771 | 98,689 |
Loss per share | |||||||||||
Basic (in dollars per share) | $ (0.11) | $ (4.83) | $ (0.12) | $ (0.07) | $ (3.52) | $ (0.03) | $ (0.14) | $ 0.26 | $ (5.15) | $ (3.44) | $ (0.60) |
Diluted (in dollars per share) | $ (0.11) | $ (4.83) | $ (0.12) | $ (0.07) | $ (3.52) | $ (0.03) | $ (0.14) | $ 0.25 | $ (5.15) | $ (3.44) | $ (0.60) |
Stockholders' Equity and Empl_2
Stockholders' Equity and Employee Benefit Plans (Equity Offering) (Details) - shares | Oct. 02, 2017 | Jan. 09, 2017 |
Innovative Valve Components and Cooper Valves, LLC | ||
Business Acquisition [Line Items] | ||
Number of shares issued in acquisition (in shares) | 196,249 | |
Percentage of voting interests acquired | 100.00% | |
Global Tubing LLC | ||
Business Acquisition [Line Items] | ||
Number of shares issued in acquisition (in shares) | 11,488,208 |
Stockholders' Equity and Empl_3
Stockholders' Equity and Employee Benefit Plans (Employee Benefit Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stockholders' Equity and Employee Benefit Plans Disclosure [Abstract] | |||
Employee contribution benefit plan expense | $ 5.8 | $ 6.2 | $ 5.4 |
Allowable purchase interval duration | 6 months | ||
Price per share to fair market value | 85.00% |
Stockholders' Equity and Empl_4
Stockholders' Equity and Employee Benefit Plans (Stock Repurchases) (Details) - USD ($) shares in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 | Oct. 31, 2014 | |
Stockholders' Equity and Employee Benefit Plans Disclosure [Abstract] | |||||
Shares authorized for repurchase | $ 150,000,000 | ||||
Treasury stock (in shares) | 4.5 | ||||
Cost of treasury stock repurchased | $ 59,000 | $ 141,000 | $ 559,000 | $ 100,200,000 |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 17, 2016 | Aug. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 18,500,000 | |||||
Stock based compensation expense | $ 15,800,000 | $ 19,900,000 | $ 20,300,000 | |||
Total compensation cost not yet recognized | $ 19,200,000 | |||||
Total compensation cost not yet recognized, period for recognition | 2 years | |||||
Intrinsic value of options exercised | $ 0 | 200,000 | $ 1,600,000 | |||
Intrinsic value, options outstanding | $ 0 | $ 0 | ||||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Option term | 10 years | |||||
Award vesting period | 4 years | |||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value (in dollars per share) | $ 6.59 | $ 12 | $ 19 | |||
Fair value of shares vested | $ 1,500,000 | $ 1,700,000 | $ 2,300,000 | |||
Granted (in shares) | 150,000 | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value (in dollars per share) | $ 6.54 | $ 10.54 | $ 17.97 | |||
Fair value of shares vested | $ 11,800,000 | $ 14,200,000 | $ 10,000,000 | |||
Granted (in shares) | 1,227,000 | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 390,896 | |||||
Performance Shares | Period 1 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee performance period | 1 year | |||||
Performance Shares | Period 2 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee performance period | 2 years | |||||
Performance Shares | Period 3 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee performance period | 3 years | |||||
Minimum | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Minimum | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Minimum | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares for award settlement (in shares) | 0 | |||||
Maximum | Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 4 years | |||||
Maximum | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 4 years | |||||
Maximum | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares for award settlement (in shares) | 2 | |||||
2016 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 5,700,000 | |||||
Number of share additional (in share) | 2,900,000 | |||||
Number of shares available for grant (in shares) | 4,800,000 |
Stock Based Compensation (Stock
Stock Based Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of shares [Roll Forward] | ||
Number of shares, beginning balance (in shares) | 5,740 | |
Number of shares, granted (in shares) | 0 | |
Number of shares, exercised (in shares) | 0 | |
Number of shares, forfeited/expired (in shares) | (364) | |
Number of shares, ending balance (in shares) | 5,376 | 5,740 |
Number of shares, options exercisable (in shares) | 5,033 | |
Weighted average exercise price [Roll Forward] | ||
Weighted average exercise price, beginning balance (in dollars per share) | $ 12.39 | |
Weighted average exercise price, granted (in dollars per share) | 0 | |
Weighted average exercise price, exercised (in dollars per share) | 0 | |
Weighted average exercise price, forfeited/expired (in dollars per share) | 13.05 | |
Weighted average exercise price, ending balance (in dollars per share) | 12.35 | $ 12.39 |
Weighted average exercise price, options exercisable (in dollars per share) | $ 12.29 | |
Remaining weighted average contractual life, outstanding | 2 years 6 months | 3 years 8 months 12 days |
Remaining weighted average contractual life, exercisable | 2 years 2 months 12 days | |
Intrinsic value, options outstanding | $ 0 | $ 0 |
Intrinsic value, options exercisable | $ 0 |
Stock Based Compensation (Fair
Stock Based Compensation (Fair Value Assumptions) (Details) - Employee Stock Option - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value (in dollars per share) | $ 5.62 | $ 8.95 |
Expected life (in years) | 6 years 3 months | 6 years 3 months |
Volatility | 44.00% | 43.00% |
Dividend yield | 0.00% | 0.00% |
Risk free interest rate | 2.74% | 2.11% |
Stock Based Compensation (Restr
Stock Based Compensation (Restricted Stock) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2019shares | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested at beginning of year (in shares) | 195 |
Granted (in shares) | 150 |
Vested (in shares) | (135) |
Forfeited (in shares) | (2) |
Nonvested at the end of year (in shares) | 208 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested at beginning of year (in shares) | 2,455 |
Granted (in shares) | 1,227 |
Vested (in shares) | (905) |
Forfeited (in shares) | (588) |
Nonvested at the end of year (in shares) | 2,189 |
Stock Based Compensation (Sto_2
Stock Based Compensation (Stock Appreciation Rights) (Details) - Stock Appreciation Rights shares in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested at beginning of year (in shares) | 0 | |
Granted (in shares) | 6,352 | |
Forfeited (in shares) | 0 | |
Nonvested at the end of year (in shares) | 6,352 | 6,352 |
Fair value of the stock appreciation rights (in dollars per share) | $ / shares | $ 0.19 | |
Award vesting period | 3 years | |
Stock option exercise price higher (in dollars per share) | $ / shares | 5 | |
Right exercise price (in dollars per share) | $ / shares | $ 1.45 | $ 1.45 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (in segments) | 3 |
Business Segments (Income State
Business Segments (Income Statement by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 199,777 | $ 239,266 | $ 245,648 | $ 271,842 | $ 272,948 | $ 267,037 | $ 274,003 | $ 250,231 | $ 956,533 | $ 1,064,219 | $ 818,620 |
Operating income (loss) | $ (7,820) | $ (533,359) | $ 736 | $ 4,297 | $ (381,026) | $ 2,436 | $ (11,702) | $ (6,706) | (536,146) | (396,998) | (141,595) |
Impairments of goodwill, intangible assets, property and equipment | 532,336 | 363,522 | 69,062 | ||||||||
Transaction expenses | 1,159 | 3,446 | 6,511 | ||||||||
Contingent consideration benefit | (4,629) | 0 | 0 | ||||||||
Loss (gain) on disposal of assets and other | 78 | (438) | 2,097 | ||||||||
Depreciation and amortization | 63,241 | 74,508 | 65,129 | ||||||||
Capital expenditures | 15,102 | 24,043 | 26,709 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | (7,202) | (30,468) | (63,925) | ||||||||
Operating Segments | Drilling & Downhole | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 334,829 | 334,019 | 310,523 | ||||||||
Operating income (loss) | 7,343 | (33,335) | (47,106) | ||||||||
Depreciation and amortization | 21,433 | 31,985 | 38,463 | ||||||||
Capital expenditures | 3,169 | 8,067 | 7,093 | ||||||||
Operating Segments | Completions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 305,089 | 373,107 | 184,182 | ||||||||
Operating income (loss) | 6,581 | 31,924 | 8,797 | ||||||||
Depreciation and amortization | 32,780 | 33,943 | 17,631 | ||||||||
Capital expenditures | 3,886 | 4,997 | 4,789 | ||||||||
Operating Segments | Production | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 320,996 | 361,407 | 327,287 | ||||||||
Operating income (loss) | 7,802 | 6,022 | 7,811 | ||||||||
Depreciation and amortization | 8,478 | 8,407 | 8,608 | ||||||||
Capital expenditures | 4,041 | 4,877 | 6,855 | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (4,381) | (4,314) | (3,372) | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | (28,928) | (35,079) | (33,427) | ||||||||
Depreciation and amortization | 550 | 173 | 427 | ||||||||
Capital expenditures | $ 4,006 | $ 6,102 | $ 7,972 |
Business Segments (Assets by Se
Business Segments (Assets by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | |||
Assets | $ 1,159,997 | $ 1,829,652 | $ 2,195,228 |
Operating Segments | Drilling & Subsea | |||
Segment Reporting Information [Line Items] | |||
Assets | 407,779 | 663,414 | 1,057,378 |
Operating Segments | Completions | |||
Segment Reporting Information [Line Items] | |||
Assets | 496,714 | 872,731 | 790,255 |
Operating Segments | Production | |||
Segment Reporting Information [Line Items] | |||
Assets | 186,786 | 243,354 | 251,685 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 68,718 | $ 50,153 | $ 95,910 |
Business Segments (Long-lived A
Business Segments (Long-lived Assets by Geographic Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 494,080 | $ 1,063,635 | $ 1,404,847 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 397,219 | 868,295 | 1,087,381 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 54,519 | 100,451 | 213,008 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 32,703 | 87,221 | 88,280 |
Asia-Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 1,707 | 984 | 7,984 |
Middle East | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 5,653 | 6,049 | 7,362 |
Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 2,279 | $ 635 | $ 832 |
Business Segments (Revenue by S
Business Segments (Revenue by Shipping Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 199,777 | $ 239,266 | $ 245,648 | $ 271,842 | $ 272,948 | $ 267,037 | $ 274,003 | $ 250,231 | $ 956,533 | $ 1,064,219 | $ 818,620 |
Percentage of net sales | 100.00% | 100.00% | 100.00% | ||||||||
Sales | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 956,533 | $ 1,064,219 | $ 818,620 | ||||||||
Percentage of net sales | 100.00% | 100.00% | 100.00% | ||||||||
Sales | United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 670,205 | $ 811,724 | $ 621,445 | ||||||||
Percentage of net sales | 70.10% | 76.30% | 76.00% | ||||||||
Sales | Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 62,651 | $ 68,635 | $ 60,898 | ||||||||
Percentage of net sales | 6.50% | 6.40% | 7.40% | ||||||||
Sales | Europe & Africa | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 71,527 | $ 57,632 | $ 61,134 | ||||||||
Percentage of net sales | 7.50% | 5.40% | 7.50% | ||||||||
Sales | Middle East | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 62,169 | $ 54,541 | $ 25,634 | ||||||||
Percentage of net sales | 6.50% | 5.10% | 3.10% | ||||||||
Sales | Asia-Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 59,517 | $ 46,503 | $ 28,694 | ||||||||
Percentage of net sales | 6.20% | 4.40% | 3.50% | ||||||||
Sales | Latin America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 30,464 | $ 25,184 | $ 20,815 | ||||||||
Percentage of net sales | 3.20% | 2.40% | 2.50% |
Business Segments (Revenue by P
Business Segments (Revenue by Product Lines) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 199,777 | $ 239,266 | $ 245,648 | $ 271,842 | $ 272,948 | $ 267,037 | $ 274,003 | $ 250,231 | $ 956,533 | $ 1,064,219 | $ 818,620 |
Percentage of net sales | 100.00% | 100.00% | 100.00% | ||||||||
Sales | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 956,533 | $ 1,064,219 | $ 818,620 | ||||||||
Percentage of net sales | 100.00% | 100.00% | 100.00% | ||||||||
Operating Segments | Sales | Drilling Technologies | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 157,648 | $ 178,260 | $ 168,816 | ||||||||
Percentage of net sales | 16.60% | 16.60% | 20.60% | ||||||||
Operating Segments | Sales | Downhole Technologies | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 116,104 | $ 104,974 | $ 76,010 | ||||||||
Percentage of net sales | 12.10% | 9.90% | 9.30% | ||||||||
Operating Segments | Sales | Subsea Technologies | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 61,077 | $ 50,785 | $ 65,697 | ||||||||
Percentage of net sales | 6.40% | 4.80% | 8.00% | ||||||||
Operating Segments | Sales | Stimulation and Intervention | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 162,025 | $ 228,721 | $ 148,666 | ||||||||
Percentage of net sales | 16.90% | 21.50% | 18.20% | ||||||||
Operating Segments | Sales | Coiled Tubing | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 143,064 | $ 144,386 | $ 35,516 | ||||||||
Percentage of net sales | 15.00% | 13.60% | 4.30% | ||||||||
Operating Segments | Sales | Production Equipment | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 122,654 | $ 141,169 | $ 124,323 | ||||||||
Percentage of net sales | 12.80% | 13.30% | 15.20% | ||||||||
Operating Segments | Sales | Valve Solutions | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 198,342 | $ 220,238 | $ 202,964 | ||||||||
Percentage of net sales | 20.70% | 20.70% | 24.80% | ||||||||
Eliminations | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ (4,381) | $ (4,314) | $ (3,372) | ||||||||
Eliminations | Sales | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ (4,381) | $ (4,314) | $ (3,372) | ||||||||
Percentage of net sales | (0.50%) | (0.40%) | (0.40%) |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements (Condensed consolidating statements of income and comprehensive loss) (Details) - USD ($) $ in Thousands | Sep. 03, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||||||||||
Revenues | $ 199,777 | $ 239,266 | $ 245,648 | $ 271,842 | $ 272,948 | $ 267,037 | $ 274,003 | $ 250,231 | $ 956,533 | $ 1,064,219 | $ 818,620 | |
Cost of sales | 150,845 | 176,632 | 182,460 | 201,744 | 231,073 | 192,496 | 201,334 | 182,944 | 711,681 | 807,847 | 629,832 | |
Gross profit | 48,932 | 62,634 | 63,188 | 70,098 | 41,875 | 74,541 | 72,669 | 67,287 | 244,852 | 256,372 | 188,788 | |
Operating expenses | ||||||||||||
Selling, general and administrative expenses | 251,736 | 286,980 | 253,713 | |||||||||
Goodwill and intangible assets impairment | 532,336 | 363,522 | 69,062 | |||||||||
Transaction expenses | 1,159 | 3,446 | 6,511 | |||||||||
Contingent consideration benefit | (4,629) | 0 | 0 | |||||||||
Loss (gain) on disposal of assets and other | 78 | (438) | 2,097 | |||||||||
Total operating expenses | 56,752 | 595,954 | 63,022 | 64,952 | 422,995 | 72,764 | 84,721 | 73,030 | 780,680 | 653,510 | 331,383 | |
Earnings (loss) from equity investments | 0 | (39) | 570 | (849) | 94 | 659 | 350 | (963) | (318) | 140 | 1,000 | |
Equity loss from affiliate, net of tax | 0 | 0 | 0 | |||||||||
Operating loss | (7,820) | (533,359) | 736 | 4,297 | (381,026) | 2,436 | (11,702) | (6,706) | (536,146) | (396,998) | (141,595) | |
Other expense (income) | ||||||||||||
Interest expense | 31,618 | 32,532 | 26,808 | |||||||||
Foreign exchange and other losses (gains), net | 5,022 | (6,270) | 7,268 | |||||||||
Gain realized on previously held equity investment | 1,600 | (1,567) | 0 | (120,392) | ||||||||
Gain on contribution of subsea rentals business | (33,500) | 0 | 33,506 | 0 | ||||||||
Gain on disposition of business | 2,348 | 0 | 0 | |||||||||
Total other expense (income), net | 13,191 | 2,999 | 6,077 | 10,458 | 6,025 | 6,598 | 2,001 | (21,868) | 32,725 | (7,244) | (86,316) | |
Loss before income taxes | (21,011) | (536,358) | (5,341) | (6,161) | (387,051) | (4,162) | (13,703) | 15,162 | (568,871) | (389,754) | (55,279) | |
Income tax expense (benefit) | (8,563) | (3,371) | 8,393 | 1,727 | (3,308) | (1,108) | 1,646 | (12,904) | (1,814) | (15,674) | 4,121 | |
Net loss | (12,448) | (532,987) | (13,734) | (7,888) | (383,743) | (3,054) | (15,349) | 28,066 | (567,057) | (374,080) | (59,400) | |
Other comprehensive income (loss), net of tax: | ||||||||||||
Net loss | $ (12,448) | $ (532,987) | $ (13,734) | $ (7,888) | $ (383,743) | $ (3,054) | $ (15,349) | 28,066 | (567,057) | (374,080) | (59,400) | |
Change in foreign currency translation, net of tax of $0 | 7,958 | (24,752) | 36,163 | |||||||||
Change in pension liability | (1,666) | 1,489 | 107 | |||||||||
Comprehensive loss | (560,765) | (397,343) | (23,130) | |||||||||
Reportable Legal Entities | FET (Parent) | ||||||||||||
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||||||||||
Revenues | 0 | 0 | 0 | |||||||||
Cost of sales | 0 | 0 | 0 | |||||||||
Gross profit | 0 | 0 | 0 | |||||||||
Operating expenses | ||||||||||||
Selling, general and administrative expenses | 69 | 0 | 0 | |||||||||
Goodwill and intangible assets impairment | 0 | 0 | 0 | |||||||||
Transaction expenses | 0 | 0 | 0 | |||||||||
Contingent consideration benefit | 0 | |||||||||||
Loss (gain) on disposal of assets and other | 0 | 0 | 0 | |||||||||
Total operating expenses | 69 | 0 | 0 | |||||||||
Earnings (loss) from equity investments | 0 | 0 | 0 | |||||||||
Equity loss from affiliate, net of tax | (535,435) | (348,557) | (41,253) | |||||||||
Operating loss | (535,504) | (348,557) | (41,253) | |||||||||
Other expense (income) | ||||||||||||
Interest expense | 31,553 | 32,307 | 27,919 | |||||||||
Foreign exchange and other losses (gains), net | 0 | 0 | 0 | |||||||||
Gain realized on previously held equity investment | 0 | 0 | ||||||||||
Gain on contribution of subsea rentals business | 0 | |||||||||||
Gain on disposition of business | 0 | |||||||||||
Total other expense (income), net | 31,553 | 32,307 | 27,919 | |||||||||
Loss before income taxes | (567,057) | (380,864) | (69,172) | |||||||||
Income tax expense (benefit) | 0 | (6,784) | (9,772) | |||||||||
Net loss | (567,057) | (374,080) | (59,400) | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Net loss | (567,057) | (374,080) | (59,400) | |||||||||
Change in foreign currency translation, net of tax of $0 | 7,958 | (24,752) | 36,163 | |||||||||
Change in pension liability | (1,666) | 1,489 | 107 | |||||||||
Comprehensive loss | (560,765) | (397,343) | (23,130) | |||||||||
Reportable Legal Entities | Guarantor Subsidiaries | ||||||||||||
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||||||||||
Revenues | 811,566 | 936,319 | 703,409 | |||||||||
Cost of sales | 614,429 | 717,519 | 550,931 | |||||||||
Gross profit | 197,137 | 218,800 | 152,478 | |||||||||
Operating expenses | ||||||||||||
Selling, general and administrative expenses | 208,862 | 231,492 | 205,672 | |||||||||
Goodwill and intangible assets impairment | 487,212 | 233,635 | 33,301 | |||||||||
Transaction expenses | 1,067 | 2,926 | 6,521 | |||||||||
Contingent consideration benefit | (4,629) | |||||||||||
Loss (gain) on disposal of assets and other | 201 | (1,274) | 1,981 | |||||||||
Total operating expenses | 692,713 | 466,779 | 247,475 | |||||||||
Earnings (loss) from equity investments | (668) | 529 | 1,000 | |||||||||
Equity loss from affiliate, net of tax | (53,778) | (118,601) | (53,682) | |||||||||
Operating loss | (550,022) | (366,051) | (147,679) | |||||||||
Other expense (income) | ||||||||||||
Interest expense | (84) | 158 | (569) | |||||||||
Foreign exchange and other losses (gains), net | (138) | (296) | (118) | |||||||||
Gain realized on previously held equity investment | (14,045) | (120,392) | ||||||||||
Gain on contribution of subsea rentals business | (5,856) | |||||||||||
Gain on disposition of business | 2,348 | |||||||||||
Total other expense (income), net | (16,615) | 5,718 | (121,079) | |||||||||
Loss before income taxes | (533,407) | (371,769) | (26,600) | |||||||||
Income tax expense (benefit) | 2,028 | (23,212) | 14,653 | |||||||||
Net loss | (535,435) | (348,557) | (41,253) | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Net loss | (535,435) | (348,557) | (41,253) | |||||||||
Change in foreign currency translation, net of tax of $0 | 7,958 | (24,752) | 36,163 | |||||||||
Change in pension liability | (1,666) | 1,489 | 107 | |||||||||
Comprehensive loss | (529,143) | (371,820) | (4,983) | |||||||||
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||||||||||
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||||||||||
Revenues | 211,665 | 187,647 | 182,417 | |||||||||
Cost of sales | 162,715 | 151,787 | 145,743 | |||||||||
Gross profit | 48,950 | 35,860 | 36,674 | |||||||||
Operating expenses | ||||||||||||
Selling, general and administrative expenses | 42,805 | 55,488 | 48,041 | |||||||||
Goodwill and intangible assets impairment | 45,124 | 129,887 | 35,761 | |||||||||
Transaction expenses | 92 | 520 | (10) | |||||||||
Contingent consideration benefit | 0 | |||||||||||
Loss (gain) on disposal of assets and other | (123) | 836 | 116 | |||||||||
Total operating expenses | 87,898 | 186,731 | 83,908 | |||||||||
Earnings (loss) from equity investments | 350 | (389) | 0 | |||||||||
Equity loss from affiliate, net of tax | 0 | 0 | 0 | |||||||||
Operating loss | (38,598) | (151,260) | (47,234) | |||||||||
Other expense (income) | ||||||||||||
Interest expense | 149 | 67 | (542) | |||||||||
Foreign exchange and other losses (gains), net | 5,160 | (5,974) | 7,386 | |||||||||
Gain realized on previously held equity investment | 12,478 | 0 | ||||||||||
Gain on contribution of subsea rentals business | 39,362 | |||||||||||
Gain on disposition of business | 0 | |||||||||||
Total other expense (income), net | 17,787 | (45,269) | 6,844 | |||||||||
Loss before income taxes | (56,385) | (105,991) | (54,078) | |||||||||
Income tax expense (benefit) | (3,842) | 14,322 | (760) | |||||||||
Net loss | (52,543) | (120,313) | (53,318) | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Net loss | (52,543) | (120,313) | (53,318) | |||||||||
Change in foreign currency translation, net of tax of $0 | 7,958 | (24,752) | 36,163 | |||||||||
Change in pension liability | (1,666) | 1,489 | 107 | |||||||||
Comprehensive loss | (46,251) | (143,576) | (17,048) | |||||||||
Eliminations | ||||||||||||
Condensed Statements of Income and Comprehensive Income [Line Items] | ||||||||||||
Revenues | (66,698) | (59,747) | (67,206) | |||||||||
Cost of sales | (65,463) | (61,459) | (66,842) | |||||||||
Gross profit | (1,235) | 1,712 | (364) | |||||||||
Operating expenses | ||||||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | |||||||||
Goodwill and intangible assets impairment | 0 | 0 | 0 | |||||||||
Transaction expenses | 0 | 0 | 0 | |||||||||
Contingent consideration benefit | 0 | |||||||||||
Loss (gain) on disposal of assets and other | 0 | 0 | 0 | |||||||||
Total operating expenses | 0 | 0 | 0 | |||||||||
Earnings (loss) from equity investments | 0 | 0 | 0 | |||||||||
Equity loss from affiliate, net of tax | 589,213 | 467,158 | 94,935 | |||||||||
Operating loss | 587,978 | 468,870 | 94,571 | |||||||||
Other expense (income) | ||||||||||||
Interest expense | 0 | 0 | 0 | |||||||||
Foreign exchange and other losses (gains), net | 0 | 0 | 0 | |||||||||
Gain realized on previously held equity investment | 0 | 0 | ||||||||||
Gain on contribution of subsea rentals business | 0 | |||||||||||
Gain on disposition of business | 0 | |||||||||||
Total other expense (income), net | 0 | 0 | 0 | |||||||||
Loss before income taxes | 587,978 | 468,870 | 94,571 | |||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||
Net loss | 587,978 | 468,870 | 94,571 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Net loss | 587,978 | 468,870 | 94,571 | |||||||||
Change in foreign currency translation, net of tax of $0 | (15,916) | 49,504 | (72,326) | |||||||||
Change in pension liability | 3,332 | (2,978) | (214) | |||||||||
Comprehensive loss | 575,394 | $ 515,396 | $ 22,031 | |||||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Other expense (income) | ||||||||||||
Gain on contribution of subsea rentals business | $ 33,500 | |||||||||||
Gain on disposition of business | $ 39,300 | $ 2,300 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements (Condensed consolidating balance sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||||
Cash and cash equivalents | $ 57,911 | $ 47,241 | ||
Accounts receivable—trade, net of allowances of $9,048 and $7,432 | 154,182 | 206,055 | ||
Inventories, net | 414,640 | 479,023 | ||
Prepaid expenses and other current assets | 33,820 | 23,677 | ||
Costs and estimated profits in excess of billings | 4,104 | 9,159 | ||
Accrued revenue | 1,260 | 862 | ||
Total current assets | 665,917 | 766,017 | ||
Property and equipment, net of accumulated depreciation | 154,836 | 177,358 | ||
Deferred financing costs, net | 1,243 | 2,071 | ||
Operating lease assets | 48,682 | $ 54,069 | 0 | |
Intangibles, net | 272,300 | 359,048 | ||
Goodwill | 0 | 469,647 | $ 755,245 | |
Investment in unconsolidated subsidiary | 0 | 44,982 | ||
Deferred income taxes, net | 654 | 1,234 | ||
Other long-term assets | 16,365 | 9,295 | ||
Investment in affiliates | 0 | 0 | ||
Long-term advances to affiliates | 0 | 0 | ||
Total assets | 1,159,997 | 1,829,652 | $ 2,195,228 | |
Current liabilities | ||||
Current portion of long-term debt | 717 | 1,167 | ||
Accounts payable—trade | 98,720 | 143,186 | ||
Accrued liabilities | 86,625 | 81,032 | ||
Deferred revenue | 4,877 | 8,335 | ||
Billings in excess of costs and profits recognized | 5,911 | 3,210 | ||
Total current liabilities | 196,850 | 236,930 | ||
Long-term debt, net of current portion | 398,862 | 517,544 | ||
Deferred income taxes, net | 2,465 | 15,299 | ||
Operating lease liabilities | 49,938 | 0 | ||
Other long-term liabilities | 25,843 | 29,753 | ||
Long-term payables to affiliates | 0 | 0 | ||
Total liabilities | 673,958 | 799,526 | ||
Total equity | 486,039 | 1,030,126 | ||
Total liabilities and equity | 1,159,997 | 1,829,652 | ||
Reportable Legal Entities | FET (Parent) | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable—trade, net of allowances of $9,048 and $7,432 | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Costs and estimated profits in excess of billings | 0 | 0 | ||
Accrued revenue | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||
Deferred financing costs, net | 1,243 | 2,071 | ||
Operating lease assets | 0 | |||
Intangibles, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in unconsolidated subsidiary | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Investment in affiliates | 348,623 | 877,764 | ||
Long-term advances to affiliates | 541,351 | 674,220 | ||
Total assets | 891,217 | 1,554,055 | ||
Current liabilities | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable—trade | 0 | 0 | ||
Accrued liabilities | 7,640 | 6,873 | ||
Deferred revenue | 0 | 0 | ||
Billings in excess of costs and profits recognized | 0 | 0 | ||
Total current liabilities | 7,640 | 6,873 | ||
Long-term debt, net of current portion | 397,538 | 517,056 | ||
Deferred income taxes, net | 0 | 0 | ||
Operating lease liabilities | 0 | |||
Other long-term liabilities | 0 | 0 | ||
Long-term payables to affiliates | 0 | 0 | ||
Total liabilities | 405,178 | 523,929 | ||
Total equity | 486,039 | 1,030,126 | ||
Total liabilities and equity | 891,217 | 1,554,055 | ||
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 32,387 | 24,977 | ||
Accounts receivable—trade, net of allowances of $9,048 and $7,432 | 116,862 | 177,986 | ||
Inventories, net | 344,920 | 416,237 | ||
Prepaid expenses and other current assets | 31,485 | 23,585 | ||
Costs and estimated profits in excess of billings | 4,029 | 6,202 | ||
Accrued revenue | 428 | 0 | ||
Total current assets | 530,111 | 648,987 | ||
Property and equipment, net of accumulated depreciation | 133,974 | 156,434 | ||
Deferred financing costs, net | 0 | 0 | ||
Operating lease assets | 29,518 | |||
Intangibles, net | 245,507 | 320,056 | ||
Goodwill | 0 | 433,415 | ||
Investment in unconsolidated subsidiary | 0 | 1,222 | ||
Deferred income taxes, net | 0 | 1,170 | ||
Other long-term assets | 6,682 | 4,194 | ||
Investment in affiliates | 218,228 | 265,714 | ||
Long-term advances to affiliates | 0 | 0 | ||
Total assets | 1,164,020 | 1,831,192 | ||
Current liabilities | ||||
Current portion of long-term debt | 566 | 1,150 | ||
Accounts payable—trade | 75,999 | 121,019 | ||
Accrued liabilities | 35,746 | 40,913 | ||
Deferred revenue | 1,616 | 4,742 | ||
Billings in excess of costs and profits recognized | 787 | 84 | ||
Total current liabilities | 114,714 | 167,908 | ||
Long-term debt, net of current portion | 1,128 | 480 | ||
Deferred income taxes, net | 0 | 0 | ||
Operating lease liabilities | 29,896 | |||
Other long-term liabilities | 12,255 | 12,288 | ||
Long-term payables to affiliates | 657,404 | 772,752 | ||
Total liabilities | 815,397 | 953,428 | ||
Total equity | 348,623 | 877,764 | ||
Total liabilities and equity | 1,164,020 | 1,831,192 | ||
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Current assets | ||||
Cash and cash equivalents | 25,524 | 22,264 | ||
Accounts receivable—trade, net of allowances of $9,048 and $7,432 | 37,320 | 28,069 | ||
Inventories, net | 78,047 | 69,878 | ||
Prepaid expenses and other current assets | 2,335 | 92 | ||
Costs and estimated profits in excess of billings | 75 | 2,957 | ||
Accrued revenue | 832 | 862 | ||
Total current assets | 144,133 | 124,122 | ||
Property and equipment, net of accumulated depreciation | 20,862 | 20,924 | ||
Deferred financing costs, net | 0 | 0 | ||
Operating lease assets | 19,164 | |||
Intangibles, net | 26,793 | 38,992 | ||
Goodwill | 0 | 36,232 | ||
Investment in unconsolidated subsidiary | 0 | 43,760 | ||
Deferred income taxes, net | 654 | 64 | ||
Other long-term assets | 9,683 | 5,101 | ||
Investment in affiliates | 0 | 0 | ||
Long-term advances to affiliates | 116,053 | 98,532 | ||
Total assets | 337,342 | 367,727 | ||
Current liabilities | ||||
Current portion of long-term debt | 151 | 17 | ||
Accounts payable—trade | 22,721 | 22,167 | ||
Accrued liabilities | 43,239 | 33,246 | ||
Deferred revenue | 3,261 | 3,593 | ||
Billings in excess of costs and profits recognized | 5,124 | 3,126 | ||
Total current liabilities | 74,496 | 62,149 | ||
Long-term debt, net of current portion | 196 | 8 | ||
Deferred income taxes, net | 2,465 | 15,299 | ||
Operating lease liabilities | 20,042 | |||
Other long-term liabilities | 13,588 | 17,465 | ||
Long-term payables to affiliates | 0 | 0 | ||
Total liabilities | 110,787 | 94,921 | ||
Total equity | 226,555 | 272,806 | ||
Total liabilities and equity | 337,342 | 367,727 | ||
Eliminations | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable—trade, net of allowances of $9,048 and $7,432 | 0 | 0 | ||
Inventories, net | (8,327) | (7,092) | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Costs and estimated profits in excess of billings | 0 | 0 | ||
Accrued revenue | 0 | 0 | ||
Total current assets | (8,327) | (7,092) | ||
Property and equipment, net of accumulated depreciation | 0 | 0 | ||
Deferred financing costs, net | 0 | 0 | ||
Operating lease assets | 0 | |||
Intangibles, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in unconsolidated subsidiary | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Investment in affiliates | (566,851) | (1,143,478) | ||
Long-term advances to affiliates | (657,404) | (772,752) | ||
Total assets | (1,232,582) | (1,923,322) | ||
Current liabilities | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable—trade | 0 | 0 | ||
Accrued liabilities | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Billings in excess of costs and profits recognized | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Operating lease liabilities | 0 | |||
Other long-term liabilities | 0 | 0 | ||
Long-term payables to affiliates | (657,404) | (772,752) | ||
Total liabilities | (657,404) | (772,752) | ||
Total equity | (575,178) | (1,150,570) | ||
Total liabilities and equity | $ (1,232,582) | $ (1,923,322) |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements (Condensed consolidating statements of cash flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Cash flows from operating activities | $ 104,144 | $ 2,407 | $ (40,033) |
Cash flows from investing activities | |||
Capital expenditures for property and equipment | (15,102) | (24,043) | (26,709) |
Acquisition of businesses, net of cash acquired | 0 | (60,622) | (162,189) |
Investment in unconsolidated subsidiary | 0 | 0 | (1,041) |
Proceeds from the sale of equity investment, business, property and equipment | 43,237 | 9,258 | 1,971 |
Long-term loans and advances to affiliates | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 28,135 | (75,407) | (187,968) |
Cash flows from financing activities | |||
Borrowings of debt | 137,000 | 221,980 | 107,431 |
Repayments of debt | (256,900) | (211,783) | |
Repurchases of stock | (1,094) | (2,777) | (4,742) |
Proceeds from stock issuance | 0 | 249 | 1,491 |
Payment of capital lease obligations | (1,197) | (1,147) | (1,187) |
Deferred financing costs | 0 | 0 | (2,430) |
Long-term loans and advances to affiliates | 0 | 0 | 0 |
Dividend paid to affiliates | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (122,191) | 6,522 | 100,563 |
Effect of exchange rate changes on cash | 582 | (1,497) | 8,232 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 10,670 | (67,975) | (119,206) |
Cash and cash equivalents and restricted cash | |||
Cash, cash equivalents and restricted cash at beginning of period | 47,241 | 115,216 | 234,422 |
Cash, cash equivalents and restricted cash at end of period | 57,911 | 47,241 | 115,216 |
Reportable Legal Entities | FET Inc. (Parent) | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Cash flows from operating activities | (28,883) | 10,461 | (15,718) |
Cash flows from investing activities | |||
Capital expenditures for property and equipment | 0 | 0 | 0 |
Acquisition of businesses, net of cash acquired | 0 | 0 | 0 |
Investment in unconsolidated subsidiary | 0 | 0 | |
Proceeds from the sale of equity investment, business, property and equipment | 0 | 0 | 0 |
Long-term loans and advances to affiliates | 148,977 | (18,130) | (86,097) |
Net cash provided by (used in) investing activities | 148,977 | (18,130) | (86,097) |
Cash flows from financing activities | |||
Borrowings of debt | 137,000 | 221,980 | 107,431 |
Repayments of debt | (256,000) | (211,783) | |
Repurchases of stock | (1,094) | (2,777) | (4,742) |
Proceeds from stock issuance | 0 | 249 | 1,491 |
Payment of capital lease obligations | 0 | 0 | 0 |
Deferred financing costs | (2,430) | ||
Long-term loans and advances to affiliates | 0 | 0 | 0 |
Dividend paid to affiliates | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (120,094) | 7,669 | 101,750 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | (65) |
Cash and cash equivalents and restricted cash | |||
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | 65 |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | 0 |
Reportable Legal Entities | Guarantor Subsidiaries | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Cash flows from operating activities | 143,219 | (76) | 483 |
Cash flows from investing activities | |||
Capital expenditures for property and equipment | (13,619) | (20,288) | (20,499) |
Acquisition of businesses, net of cash acquired | 0 | (60,622) | (157,297) |
Investment in unconsolidated subsidiary | 0 | (1,041) | |
Proceeds from the sale of equity investment, business, property and equipment | 18,522 | 5,192 | 2,038 |
Long-term loans and advances to affiliates | 0 | 9,690 | 22,072 |
Net cash provided by (used in) investing activities | 4,903 | (66,028) | (154,727) |
Cash flows from financing activities | |||
Borrowings of debt | 0 | 0 | 0 |
Repayments of debt | (900) | 0 | |
Repurchases of stock | 0 | 0 | 0 |
Proceeds from stock issuance | 0 | 0 | 0 |
Payment of capital lease obligations | (1,197) | (1,030) | (1,147) |
Deferred financing costs | 0 | ||
Long-term loans and advances to affiliates | (138,615) | 18,130 | 86,097 |
Dividend paid to affiliates | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (140,712) | 17,100 | 84,950 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 7,410 | (49,004) | (69,294) |
Cash and cash equivalents and restricted cash | |||
Cash, cash equivalents and restricted cash at beginning of period | 24,977 | 73,981 | 143,275 |
Cash, cash equivalents and restricted cash at end of period | 32,387 | 24,977 | 73,981 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Cash flows from operating activities | (10,192) | 15,972 | 3,702 |
Cash flows from investing activities | |||
Capital expenditures for property and equipment | (1,483) | (3,755) | (6,210) |
Acquisition of businesses, net of cash acquired | 0 | 0 | (4,892) |
Investment in unconsolidated subsidiary | 0 | 0 | |
Proceeds from the sale of equity investment, business, property and equipment | 24,715 | 4,066 | (67) |
Long-term loans and advances to affiliates | (10,362) | 0 | 0 |
Net cash provided by (used in) investing activities | 12,870 | 311 | (11,169) |
Cash flows from financing activities | |||
Borrowings of debt | 0 | 0 | 0 |
Repayments of debt | 0 | 0 | |
Repurchases of stock | 0 | 0 | 0 |
Proceeds from stock issuance | 0 | 0 | 0 |
Payment of capital lease obligations | 0 | (117) | (40) |
Deferred financing costs | 0 | ||
Long-term loans and advances to affiliates | 0 | (9,690) | (22,072) |
Dividend paid to affiliates | 0 | (23,950) | (28,500) |
Net cash provided by (used in) financing activities | 0 | (33,757) | (50,612) |
Effect of exchange rate changes on cash | 582 | (1,497) | 8,232 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,260 | (18,971) | (49,847) |
Cash and cash equivalents and restricted cash | |||
Cash, cash equivalents and restricted cash at beginning of period | 22,264 | 41,235 | 91,082 |
Cash, cash equivalents and restricted cash at end of period | 25,524 | 22,264 | 41,235 |
Eliminations | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Cash flows from operating activities | 0 | (23,950) | (28,500) |
Cash flows from investing activities | |||
Capital expenditures for property and equipment | 0 | 0 | 0 |
Acquisition of businesses, net of cash acquired | 0 | 0 | 0 |
Investment in unconsolidated subsidiary | 0 | 0 | |
Proceeds from the sale of equity investment, business, property and equipment | 0 | 0 | 0 |
Long-term loans and advances to affiliates | (138,615) | 8,440 | 64,025 |
Net cash provided by (used in) investing activities | (138,615) | 8,440 | 64,025 |
Cash flows from financing activities | |||
Borrowings of debt | 0 | 0 | 0 |
Repayments of debt | 0 | 0 | |
Repurchases of stock | 0 | 0 | 0 |
Proceeds from stock issuance | 0 | 0 | 0 |
Payment of capital lease obligations | 0 | 0 | 0 |
Deferred financing costs | 0 | ||
Long-term loans and advances to affiliates | 138,615 | (8,440) | (64,025) |
Dividend paid to affiliates | 0 | 23,950 | 28,500 |
Net cash provided by (used in) financing activities | 138,615 | 15,510 | (35,525) |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Cash and cash equivalents and restricted cash | |||
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | $ 0 | $ 0 | $ 0 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Statements of Income and Comprehensive Income [Line Items] | |||
Change in foreign currency translation, tax | $ 0 | $ 0 | $ 0 |
Eliminations | |||
Condensed Statements of Income and Comprehensive Income [Line Items] | |||
Change in foreign currency translation, tax | 0 | 0 | 0 |
FET (Parent) | Reportable Legal Entities | |||
Condensed Statements of Income and Comprehensive Income [Line Items] | |||
Change in foreign currency translation, tax | 0 | 0 | 0 |
Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Statements of Income and Comprehensive Income [Line Items] | |||
Change in foreign currency translation, tax | 0 | 0 | 0 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Statements of Income and Comprehensive Income [Line Items] | |||
Change in foreign currency translation, tax | $ 0 | $ 0 | $ 0 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 199,777 | $ 239,266 | $ 245,648 | $ 271,842 | $ 272,948 | $ 267,037 | $ 274,003 | $ 250,231 | $ 956,533 | $ 1,064,219 | $ 818,620 |
Cost of sales | 150,845 | 176,632 | 182,460 | 201,744 | 231,073 | 192,496 | 201,334 | 182,944 | 711,681 | 807,847 | 629,832 |
Gross profit | 48,932 | 62,634 | 63,188 | 70,098 | 41,875 | 74,541 | 72,669 | 67,287 | 244,852 | 256,372 | 188,788 |
Total operating expenses | 56,752 | 595,954 | 63,022 | 64,952 | 422,995 | 72,764 | 84,721 | 73,030 | 780,680 | 653,510 | 331,383 |
Earnings (loss) from equity investments | 0 | (39) | 570 | (849) | 94 | 659 | 350 | (963) | (318) | 140 | 1,000 |
Operating loss | (7,820) | (533,359) | 736 | 4,297 | (381,026) | 2,436 | (11,702) | (6,706) | (536,146) | (396,998) | (141,595) |
Total other expense (income), net | 13,191 | 2,999 | 6,077 | 10,458 | 6,025 | 6,598 | 2,001 | (21,868) | 32,725 | (7,244) | (86,316) |
Loss before income taxes | (21,011) | (536,358) | (5,341) | (6,161) | (387,051) | (4,162) | (13,703) | 15,162 | (568,871) | (389,754) | (55,279) |
Income tax expense (benefit) | (8,563) | (3,371) | 8,393 | 1,727 | (3,308) | (1,108) | 1,646 | (12,904) | (1,814) | (15,674) | 4,121 |
Net loss | $ (12,448) | $ (532,987) | $ (13,734) | $ (7,888) | $ (383,743) | $ (3,054) | $ (15,349) | $ 28,066 | $ (567,057) | $ (374,080) | $ (59,400) |
Weighted average shares outstanding | |||||||||||
Basic (in shares) | 110,464 | 110,295 | 109,987 | 109,643 | 109,082 | 108,856 | 108,714 | 108,423 | 110,100 | 108,771 | 98,689 |
Diluted (in shares) | 110,464 | 110,295 | 109,987 | 109,643 | 109,082 | 108,856 | 108,714 | 110,857 | 110,100 | 108,771 | 98,689 |
Loss per share | |||||||||||
Basic (in dollars per share) | $ (0.11) | $ (4.83) | $ (0.12) | $ (0.07) | $ (3.52) | $ (0.03) | $ (0.14) | $ 0.26 | $ (5.15) | $ (3.44) | $ (0.60) |
Diluted (in dollars per share) | $ (0.11) | $ (4.83) | $ (0.12) | $ (0.07) | $ (3.52) | $ (0.03) | $ (0.14) | $ 0.25 | $ (5.15) | $ (3.44) | $ (0.60) |
Contingent consideration benefit | $ (4,600) | ||||||||||
Impairment of intangible assets | $ 53,500 | $ 50,200 | $ 14,500 | $ 64,700 | $ 1,100 | ||||||
Goodwill impairment | 471,000 | $ 471,010 | 298,789 | 68,000 | |||||||
Impairment charges | 7,900 | ||||||||||
Gain realized on previously held equity investment | $ 1,600 | (1,567) | 0 | (120,392) | |||||||
Gain on disposition of business | 2,348 | 0 | 0 | ||||||||
Gain on contribution of subsea rentals business | $ (33,500) | $ 0 | $ 33,506 | $ 0 |
Uncategorized Items - fet201910
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,006,000) |