Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 18, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-36053 | ||
Entity Registrant Name | Frank's International N.V. | ||
Entity Incorporation, State or Country Code | P7 | ||
Entity Tax Identification Number | 98-1107145 | ||
Entity Address, Address Line One | Mastenmakersweg 1 | ||
Entity Address, Postal Zip Code | 1786 PB | ||
Entity Address, City or Town | Den Helder | ||
Entity Address, Country | NL | ||
City Area Code | 22 | ||
Local Phone Number | 367 0000 | ||
Title of 12(b) Security | Common Stock, €0.01 par value | ||
Trading Symbol | FI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1 | ||
Entity Common Stock, Shares Outstanding | 225,656,227 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement in connection with the 2020 Annual Meeting of Stockholders, to be filed no later than 120 days after the end of the fiscal year to which this Form 10-K relates, are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0001575828 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 195,383 | $ 186,212 |
Restricted cash | 1,357 | 0 |
Short-term investments | 0 | 26,603 |
Accounts receivables, net | 166,694 | 189,414 |
Inventories, net | 78,829 | 69,382 |
Assets held for sale | 13,795 | 7,828 |
Other current assets | 10,360 | 12,651 |
Total current assets | 466,418 | 492,090 |
Property, plant and equipment, net | 328,432 | 416,490 |
Goodwill | 99,932 | 211,040 |
Intangible assets, net | 16,971 | 31,069 |
Deferred tax assets, net | 16,590 | 14,621 |
Operating lease right-of-use assets | 32,585 | |
Other assets | 33,237 | 28,619 |
Total assets | 994,165 | 1,193,929 |
Current liabilities: | ||
Short-term debt | 0 | 5,627 |
Accounts payable and accrued liabilities | 120,321 | 123,981 |
Current portion of operating lease liabilities | 7,925 | |
Deferred revenue | 657 | 116 |
Total current liabilities | 128,903 | 129,724 |
Deferred tax liabilities | 2,923 | 221 |
Non-current operating lease liabilities | 24,969 | |
Other non-current liabilities | 27,076 | 29,212 |
Total liabilities | 183,871 | 159,157 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity: | ||
Common stock, €0.01 par value, 798,096,000 shares authorized, 227,000,507 and 225,478,506 shares issued and 225,510,650 and 224,289,902 shares outstanding | 2,846 | 2,829 |
Additional paid-in capital | 1,075,809 | 1,062,794 |
Retained earnings (deficit) | (220,805) | 16,860 |
Accumulated other comprehensive loss | (30,298) | (32,338) |
Treasury stock (at cost), 1,489,857 and 1,188,604 shares | (17,258) | (15,373) |
Total stockholders’ equity | 810,294 | 1,034,772 |
Total liabilities and equity | $ 994,165 | $ 1,193,929 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - € / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in EUR per share) | € 0.01 | € 0.01 |
Common stock, authorized (in shares) | 798,096,000 | 798,096,000 |
Common stock, issued (in shares) | 227,000,507 | 225,478,506 |
Common stock, outstanding (in shares) | 225,510,650 | 224,289,902 |
Treasury stock (in shares) | 1,489,857 | 1,188,604 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||
Revenue | $ 579,920,000 | $ 522,493,000 | $ 454,795,000 |
Cost of revenue, exclusive of depreciation and amortization | |||
General and administrative expenses | 120,444,000 | 126,638,000 | 129,218,000 |
Depreciation and amortization | 92,800,000 | 111,292,000 | 122,102,000 |
Goodwill impairment | 111,108,000 | 0 | 0 |
Severance and other charges (credits), net | 50,430,000 | (310,000) | 75,354,000 |
(Gain) loss on disposal of assets | 1,037,000 | (1,309,000) | (2,045,000) |
Operating loss | (212,890,000) | (92,881,000) | (214,742,000) |
Other income (expense): | |||
Tax receivable agreement (“TRA”) related adjustments | 220,000 | (1,359,000) | 122,515,000 |
Other income, net | 1,103,000 | 2,047,000 | 1,763,000 |
Interest income, net | 2,265,000 | 4,243,000 | 2,309,000 |
Mergers and acquisition expense | 0 | (58,000) | (459,000) |
Foreign currency gain (loss) | (2,233,000) | (5,675,000) | 2,075,000 |
Total other income (expense) | 1,355,000 | (802,000) | 128,203,000 |
Loss before income taxes | (211,535,000) | (93,683,000) | (86,539,000) |
Income tax expense (benefit) | 23,794,000 | (2,950,000) | 72,918,000 |
Net loss | $ (235,329,000) | $ (90,733,000) | $ (159,457,000) |
Dividends per common share (in USD per share) | $ 0 | $ 0 | $ 0.225 |
Loss per common share: | |||
Basic and diluted (in USD per share) | $ (1.05) | $ (0.41) | $ (0.72) |
Weighted average common shares outstanding: | |||
Basic and diluted (in shares) | 225,159 | 223,999 | 222,940 |
Services | |||
Revenue: | |||
Revenue | $ 473,538,000 | $ 416,781,000 | $ 364,061,000 |
Cost of revenue, exclusive of depreciation and amortization | |||
Cost of revenues | 338,325,000 | 302,880,000 | 273,200,000 |
Products | |||
Revenue: | |||
Revenue | 106,382,000 | 105,712,000 | 90,734,000 |
Cost of revenue, exclusive of depreciation and amortization | |||
Cost of revenues | $ 78,666,000 | $ 76,183,000 | $ 71,708,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (235,329) | $ (90,733) | $ (159,457) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 404 | (1,452) | 2,345 |
Marketable securities: | |||
Unrealized gain (loss) on marketable securities | 0 | 86 | (103) |
Reclassification to net income | 0 | 0 | (395) |
Deferred tax asset / liability change | 0 | 0 | 158 |
Unrealized gain (loss) on marketable securities, net of tax | 0 | 86 | (340) |
Total other comprehensive income (loss) | 404 | (1,366) | 2,005 |
Comprehensive loss | $ (234,925) | $ (92,099) | $ (157,452) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2016 | 222,401,000 | |||||
Beginning balance at Dec. 31, 2016 | $ 1,311,319 | $ 2,802 | $ 1,036,786 | $ 317,270 | $ (32,977) | $ (12,562) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (159,457) | (159,457) | ||||
Foreign currency translation adjustments | 2,345 | 2,345 | ||||
Unrealized gain (loss) on marketable securities | (340) | (340) | ||||
Equity-based compensation expense | 13,825 | 13,825 | ||||
Common stock dividends ($0.225 per share) | (50,154) | (50,154) | ||||
Common shares issued upon vesting of share-based awards (in shares) | 1,017,000 | |||||
Common shares issued upon vesting of share-based awards | 0 | $ 11 | (11) | |||
Common shares issued for employee stock purchase plan (“ESPP”) (in shares) | 50,000 | |||||
Common shares issued for employee stock purchase plan (“ESPP”) | 524 | $ 1 | 523 | |||
Treasury shares issued upon vesting of share-based awards (in shares) | 4,000 | |||||
Treasury shares issued upon vesting of share-based awards | (18) | (84) | 66 | |||
Treasury shares issued for ESPP (in shares) | 105,000 | |||||
Treasury shares issued for ESPP | 740 | (166) | (736) | 1,642 | ||
Treasury shares withheld (in shares) | (288,000) | |||||
Treasury shares withheld | (2,883) | (2,883) | ||||
Ending balance (in shares) at Dec. 31, 2017 | 223,289,000 | |||||
Ending balance at Dec. 31, 2017 | 1,115,901 | $ 2,814 | 1,050,873 | 106,923 | (30,972) | (13,737) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (90,733) | (90,733) | ||||
Foreign currency translation adjustments | (1,452) | (1,452) | ||||
Unrealized gain (loss) on marketable securities | 86 | 86 | ||||
Equity-based compensation expense | 10,621 | 10,621 | ||||
Common shares issued upon vesting of share-based awards (in shares) | 1,018,000 | |||||
Common shares issued upon vesting of share-based awards | $ 0 | $ 12 | (12) | |||
Common shares issued for employee stock purchase plan (“ESPP”) (in shares) | 232,592 | 233,000 | ||||
Common shares issued for employee stock purchase plan (“ESPP”) | $ 1,315 | $ 3 | 1,312 | |||
Treasury shares withheld (in shares) | (250,000) | |||||
Treasury shares withheld | (1,636) | (1,636) | ||||
Ending balance (in shares) at Dec. 31, 2018 | 224,290,000 | |||||
Ending balance at Dec. 31, 2018 | 1,034,772 | $ 2,829 | 1,062,794 | 16,860 | (32,338) | (15,373) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (235,329) | (235,329) | ||||
Foreign currency translation adjustments | 404 | 404 | ||||
Unrealized gain (loss) on marketable securities | 0 | (1,636) | 1,636 | |||
Equity-based compensation expense | 11,280 | 11,280 | ||||
Common shares issued upon vesting of share-based awards (in shares) | 1,134,000 | |||||
Common shares issued upon vesting of share-based awards | $ 0 | $ 13 | (13) | |||
Common shares issued for employee stock purchase plan (“ESPP”) (in shares) | 389,284 | 389,000 | ||||
Common shares issued for employee stock purchase plan (“ESPP”) | $ 1,752 | $ 4 | 1,748 | |||
Treasury shares withheld (in shares) | (302,000) | |||||
Treasury shares withheld | (1,885) | (1,885) | ||||
Ending balance (in shares) at Dec. 31, 2019 | 225,511,000 | |||||
Ending balance at Dec. 31, 2019 | $ 810,294 | $ 2,846 | $ 1,075,809 | $ (220,805) | $ (30,298) | $ (17,258) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock dividends (in USD per share) | $ 0 | $ 0 | $ 0.225 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net loss | $ (235,329,000) | $ (90,733,000) | $ (159,457,000) |
Adjustments to reconcile net loss to cash from operating activities | |||
Derecognition of the TRA liability | 0 | 0 | (122,515,000) |
Depreciation and amortization | 92,800,000 | 111,292,000 | 122,102,000 |
Equity-based compensation expense | 11,280,000 | 10,621,000 | 13,825,000 |
Goodwill impairment | 111,108,000 | 0 | 0 |
Loss on asset impairments and retirements | 40,686,000 | 0 | 71,942,000 |
Amortization of deferred financing costs | 371,000 | 58,000 | 267,000 |
Deferred tax provision (benefit) | 727,000 | (14,634,000) | 15,543,000 |
Reversal of deferred tax assets associated with the TRA | 0 | 0 | 46,874,000 |
Provision for bad debts | 1,281,000 | 159,000 | 950,000 |
(Gain) loss on disposal of assets | 1,037,000 | (1,309,000) | (2,045,000) |
Changes in fair value of investments | (2,747,000) | 1,199,000 | (2,627,000) |
Unrealized (gain) loss on derivative instruments | 222,000 | (386,000) | 634,000 |
Realized loss on sale of investment | 0 | 0 | 478,000 |
Other | (1,522,000) | 843,000 | (1,876,000) |
Changes in operating assets and liabilities, net of effects from acquisitions | |||
Accounts receivable | 22,152,000 | (63,654,000) | 21,271,000 |
Inventories | (10,694,000) | (2,917,000) | 12,102,000 |
Other current assets | 856,000 | 4,581,000 | 8,677,000 |
Other assets | (1,285,000) | 258,000 | 674,000 |
Accounts payable and accrued liabilities | (3,937,000) | 15,310,000 | 15,774,000 |
Deferred revenue | 545,000 | (354,000) | (13,373,000) |
Other noncurrent liabilities | (503,000) | (2,978,000) | (4,446,000) |
Net cash provided by (used in) operating activities | 27,048,000 | (32,644,000) | 24,774,000 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment and intangibles | (36,942,000) | (19,734,000) | (21,990,000) |
Purchase of property, plant and equipment from related parties | 0 | (36,737,000) | 0 |
Proceeds from sale of assets and equipment | 791,000 | 7,089,000 | 14,030,000 |
Purchase of investments | (20,122,000) | (84,040,000) | (123,048,000) |
Proceeds from sale of investments | 46,739,000 | 143,825,000 | 53,299,000 |
Other | (512,000) | 0 | 0 |
Net cash provided by (used in) investing activities | (10,046,000) | 10,403,000 | (77,709,000) |
Cash flows from financing activities | |||
Repayments of borrowings | (5,627,000) | (5,892,000) | (680,000) |
Dividends paid on common stock | 0 | 0 | (50,154,000) |
Deferred financing costs | (184,000) | (1,733,000) | 0 |
Treasury shares withheld | (1,886,000) | (1,636,000) | (2,901,000) |
Proceeds from the issuance of ESPP shares | 1,752,000 | 1,315,000 | 1,264,000 |
Net cash used in financing activities | (5,945,000) | (7,946,000) | (52,471,000) |
Effect of exchange rate changes on cash | (529,000) | 3,384,000 | (1,105,000) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 10,528,000 | (26,803,000) | (106,511,000) |
Cash, cash equivalents and restricted cash at beginning of period | 186,212,000 | 213,015,000 | 319,526,000 |
Cash, cash equivalents and restricted cash at end of period | $ 196,740,000 | $ 186,212,000 | $ 213,015,000 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Nature of Business Frank’s International N.V. (“FINV”), a limited liability company organized under the laws of the Netherlands, is a global provider of highly engineered tubular services, tubular fabrication and specialty well construction and well intervention solutions to the oil and gas industry. FINV provides services to leading exploration and production companies in both offshore and onshore environments with a focus on complex and technically demanding wells. Basis of Presentation The consolidated financial statements of FINV for the years ended December 31, 2019 , 2018 and 2017 include the activities of Frank’s International C.V. (“FICV”), Blackhawk Group Holdings, LLC (“Blackhawk”) and their wholly owned subsidiaries (collectively, “Company,” “we,” “us” and “our”). All intercompany accounts and transactions have been eliminated for purposes of preparing these consolidated financial statements. Our accompanying consolidated financial statements and related financial information have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). In the opinion of management, these consolidated financial statements reflect all adjustments consisting solely of normal accruals that are necessary for the fair presentation of financial results as of and for the periods presented. The consolidated financial statements have been prepared on a historical cost basis using the United States dollar as the reporting currency. Our functional currency is primarily the United States dollar. Reclassifications Certain prior-year amounts have been reclassified to conform to the current year’s presentation. These reclassifications had no impact on our net income (loss), working capital, cash flows or total equity previously reported. During the first quarter of 2019, the Company changed the composition of its reportable segments. Please see Note 20 —Segment Information in these Notes to Consolidated Financial Statements for additional information. As part of the change in reportable segments, the Company also changed the classification of certain costs within the consolidated statements of operations to reflect a change in presentation of the information used by the Company’s chief operating decision maker (“CODM”). Historically, and through December 31, 2018, certain direct and indirect costs related to operations were classified and reported as general and administrative expenses (“G&A”) and certain costs associated with our Tubular Running Services manufacturing operations were classified as cost of revenue, products (“COR – Products”). The historical classification was consistent with the information used by the CODM to assess the performance of the Company’s segments and make resource allocation decisions. As part of the change in reportable segments, and to provide the CODM with additional oversight over costs that directly support operations versus costs that are more general and administrative in nature, certain costs previously classified as G&A have been reclassified as cost of revenue – services (“COR – Services”). In addition, certain manufacturing costs previously classified as COR – Products have been reclassified to COR – Services as a result of the change in segment reporting. The following is a summary of reclassifications to previously reported amounts (in thousands): Year Ended December 31, 2018 As previously reported Reclassifications As currently reported Consolidated Statements of Operations Cost of revenue, exclusive of depreciation and amortization Services $ 265,688 $ 37,192 $ 302,880 Products 84,429 (8,246 ) 76,183 General and administrative expenses 155,584 (28,946 ) 126,638 Year Ended December 31, 2017 As previously reported Reclassifications As currently reported Consolidated Statements of Operations Cost of revenue, exclusive of depreciation and amortization Services $ 223,222 $ 49,978 $ 273,200 Products 87,200 (15,492 ) 71,708 General and administrative expenses 163,704 (34,486 ) 129,218 Significant Accounting Policies Accounting Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Accounts Receivable We establish an allowance for doubtful accounts based on various factors including historical experience, the current aging status of our customer accounts, the financial condition of our customers and the business and political environment in which our customers operate. Provisions for doubtful accounts are recorded when it becomes probable that customer accounts are uncollectible. Cash, Cash Equivalents and Restricted Cash We consider all highly liquid financial instruments purchased with an original maturity of three months or less to be cash equivalents. Throughout the year, we have cash balances in excess of federally insured limits deposited with various financial institutions. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk on cash and cash equivalents. Restricted cash consists of cash deposits that collateralize our credit card program. Amounts reported in the consolidated balance sheets and consolidated statements of cash flows as cash, cash equivalents and restricted cash at December 31, 2019 and December 31, 2018 were as follows (in thousands): December 31, December 31, 2019 2018 Cash and cash equivalents $ 195,383 $ 186,212 Restricted cash 1,357 — Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 196,740 $ 186,212 Cash Surrender Value of Life Insurance Policies We have cash surrender value of life insurance policies that are held within a Rabbi Trust for the purpose of paying future executive deferred compensation benefit obligations. Income (loss) associated with these policies is included in other income, net on our consolidated statements of operations. Income (loss) on changes in the cash surrender value of life insurance policies was $2.7 million , $(1.2) million and $2.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Comprehensive Income Accounting standards on reporting comprehensive income require that certain items, including foreign currency translation adjustments be presented as components of comprehensive income. The cumulative amounts recognized by us under these standards are reflected in the consolidated balance sheet as accumulated other comprehensive loss, a component of stockholders’ equity. Contingencies Certain conditions may exist as of the date our consolidated financial statements are issued that may result in a loss to us, but which will only be resolved when one or more future events occur or fail to occur. Our management, with input from legal counsel, assesses such contingent liabilities, and such assessment inherently involves an exercise in judgment. In assessing loss contingencies related to legal proceedings pending against us or unasserted claims that may result in proceedings, our management, with input from legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates it is probable a material loss has been incurred and the amount of liability can be estimated, then the estimated liability would be accrued in our consolidated financial statements. If the assessment indicates a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Derivative Financial Instruments When we deem appropriate, we use foreign currency forward derivative contracts to mitigate the risk of fluctuations in foreign currency exchange rates. We use these instruments to mitigate our exposure to non-local currency working capital. We do not hold or issue financial instruments for trading or other speculative purposes. We account for our derivative activities under the provisions of accounting guidance for derivatives and hedging. Derivatives are recognized on the consolidated balance sheet at fair value. Although the derivative contracts will serve as an economic hedge of the cash flow of our currency exchange risk exposure, they are not formally designated as hedge contracts for hedge accounting treatment. Accordingly, any changes in the fair value of the derivative instruments during a period will be included in our consolidated statements of operations. Income (Loss) Per Share Basic income (loss) per share excludes dilution and is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution that could occur if securities to issue common stock were exercised or converted to common stock. Fair Value of Financial Instruments Our financial instruments consist primarily of cash and cash equivalents, trade accounts receivable, available-for-sale securities, derivative financial instruments and obligations under trade accounts payable. Due to their short-term nature, the carrying values for cash and cash equivalents, trade accounts receivable and trade accounts payable approximate fair value. Refer to Note 10—Fair Value Measurements for the fair values of our available-for-sale securities, derivative financial instruments and other obligations. Foreign Currency Translations and Transactions Results of operations for foreign subsidiaries with functional currencies other than the U.S. dollar are translated using average exchange rates during the period. Assets and liabilities of these foreign subsidiaries are translated using the exchange rates in effect at the balance sheet dates. Gains and losses resulting from these translations are included in accumulated other comprehensive loss within stockholders’ equity. For those foreign subsidiaries that have designated the U.S. dollar as the functional currency, gains and losses resulting from balance sheet remeasurement of foreign operations are included in the consolidated statements of operations as incurred. Gains and losses resulting from transactions denominated in a foreign currency are also included in the consolidated statements of operations as incurred. Goodwill Goodwill is not subject to amortization and is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. A qualitative assessment is allowed to determine if goodwill is potentially impaired. We have the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. The qualitative assessment determines whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If it is more likely than not that the fair value of the reporting unit is less than the carrying amount, then a quantitative impairment test is performed. The quantitative goodwill impairment test is used to identify both the existence of impairment and the amount of impairment loss. The test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded based on that difference. We complete our assessment of goodwill impairment as of October 31 each year. As of October 31, 2019, we performed a quantitative goodwill impairment test for our Cementing Equipment reporting unit. During the fourth quarter of 2019, market factors indicated a downturn in the demand for our Cementing Equipment products and services in the U.S. land market and a slower uptake of our service offering in international markets, and we reduced our management forecast for this reporting unit accordingly. Based on this refined outlook, the quantitative goodwill impairment test indicated that the fair value of the Cementing Equipment reporting unit was less than its carrying value. As a result, during the fourth quarter of 2019 we recorded a $111.1 million impairment charge to goodwill, which is included in goodwill impairment on the consolidated statements of operations. We used the income approach to estimate the fair value of the Cementing Equipment reporting unit, but also considered the market approach to validate the results. The income approach estimates the fair value by discounting the reporting unit’s estimated future cash flows using an estimated discount rate, or expected return, that a marketplace participant would have required as of the valuation date. The market approach includes the use of comparative multiples to corroborate the discounted cash flow results and involves significant judgment in the selection of the appropriate peer group companies and valuation multiples. The inputs used in the determination of fair value are generally level 3 inputs. Some of the more significant assumptions inherent in the income approach include the estimated future net annual cash flows for the reporting unit and the discount rate. We selected the assumptions used in the discounted cash flow projections using historical data supplemented by current and anticipated market conditions and estimated growth rates. Our estimates are based upon assumptions believed to be reasonable. However, given the inherent uncertainty in determining the assumptions underlying a discounted cash flow analysis, actual results may differ from those used in our valuation which could result in additional impairment charges in the future. Assuming all other assumptions and inputs used in the discounted cash flow analysis were held constant, a 50 basis point increase in the discount rate assumption would have increased the goodwill impairment charge by approximately $10.0 million . No goodwill impairment was recorded for years ended December 31, 2018 and 2017 . At December 31, 2019 , goodwill is allocated to our reportable segments as follows: Cementing Equipment - approximately $81.2 million ; Tubular Running Services - approximately $18.7 million . See Note 10—Fair Value Measurements in these Notes to Consolidated Financial Statements for a discussion of fair value measures. Impairment of Long-Lived Assets Long-lived assets, which include property, plant and equipment, and certain other assets to be held and used by us, are reviewed when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable based on estimated future cash flows. If this assessment indicates that the carrying values will not be recoverable, as determined based on undiscounted cash flows over the remaining useful lives, an impairment loss is recognized based on the fair value of the asset. The inputs used in the determination of fair value are generally level 3 inputs. Please see Note 18 —Severance and Other Charges (Credits), net for additional information. Income Taxes We operate under many legal forms in approximately 50 countries. As a result, we are subject to many U.S. and foreign tax jurisdictions and many tax agreements and treaties among the various taxing authorities. Our operations in these different jurisdictions are taxed on various bases such as income before taxes, deemed profits (which is generally determined using a percentage of revenue rather than profits), and withholding taxes based on revenue. Determination of taxable income in any jurisdiction requires the interpretation of the related tax laws and regulations and the use of estimates and assumptions regarding significant future events. Changes in tax laws, regulations, agreements and treaties, foreign currency exchange restrictions, or our level of operations or profitability in each taxing jurisdiction could have an impact upon the amount of income taxes that we provide during any given year. We provide for income tax expense based on the liability method of accounting for income taxes based on the authoritative accounting guidance. Deferred tax assets and liabilities are recorded based upon temporary differences between the tax basis of assets and liabilities and their carrying values for financial reporting purposes, and are measured using the tax rates and laws expected to be in effect when the differences are projected to reverse. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. In determining the need for valuation allowances, we have made judgments and estimates regarding future taxable income. These estimates and judgments include some degree of uncertainty, and changes in these estimates and assumptions could require us to adjust the valuation allowances for our deferred tax assets. The ultimate realization of the deferred tax assets depends on the generation of sufficient taxable income in the applicable taxing jurisdictions. Deferred tax expense or benefit is the result of changes in deferred tax assets and liabilities and associated valuation allowances during the period. The impact of an uncertain tax position taken or expected to be taken on an income tax return is recognized in the financial statements at the largest amount that is more likely than not to be sustained upon examination by the relevant taxing authority. Intangible Assets Identifiable intangible assets are amortized using the straight-line method over the estimated useful lives of the assets. We evaluate impairment of our intangible assets on an asset group basis whenever circumstances indicate that the carrying value may not be recoverable. Intangible assets deemed to be impaired are written down to their fair value using a discounted cash flow model and, if available, comparable market values. The following table provides information related to our intangible assets as of December 31, 2019 and 2018 (in thousands): December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Total Gross Carrying Amount Accumulated Amortization Total Customer relationships $ 32,890 $ (23,946 ) $ 8,944 $ 39,050 $ (23,688 ) $ 15,362 Trade name 11,408 (11,408 ) — 11,407 (9,203 ) 2,204 Intellectual property 14,029 (6,002 ) 8,027 17,889 (4,386 ) 13,503 Non-compete agreement 1,160 (1,160 ) — 1,160 (1,160 ) — Total intangible assets $ 59,487 $ (42,516 ) $ 16,971 $ 69,506 $ (38,437 ) $ 31,069 Our intangible assets are primarily associated with our Cementing Equipment segment. Amortization expense for intangibles assets was $10.8 million , $10.8 million and $11.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. During the year ended December 31, 2019 , impairment charges of $3.3 million were recorded associated with certain customer relationships and intellectual property intangible assets in our Cementing Equipment and Tubular Running Services segments, which are included in severance and other charges (credits), net on the consolidated statements of operations. No intangible asset impairment was recorded during the years ended December 31, 2018 or 2017. As of December 31, 2019 , estimated amortization expense for our remaining intangible assets for each of the next five years was as follows (in thousands): Period Amount 2020 $ 6,895 2021 5,838 2022 708 2023 696 2024 635 Thereafter 2,199 Total $ 16,971 Inventories Inventories are stated at the lower of cost (primarily average cost) or net realizable value. The Company’s inventories consist of finished goods, spare parts, work in process, and raw materials to support ongoing manufacturing operations. Work in progress, spare parts and finished goods include the cost of materials, labor, and manufacturing overhead. Inventory placed in service is either capitalized and included in equipment or expensed based upon our capitalization policies. We determine reserves for our inventories based on historical usage of inventory on-hand, assumptions about future demand and market conditions, and estimates about potential alternative uses, which are limited. Please see Note 18—Severance and Other Charges (Credits), net for additional information. Leases We have operating leases for real estate, vehicles and certain equipment. At the present time, all of our leases are classified as operating leases. Operating lease expense is recognized on a straight-line basis over the lease term. The accounting for some of our leases may require significant judgment, which includes determining the incremental borrowing rates to utilize in our net present value calculation of lease payments for lease agreements which do not provide an implicit rate, and assessing the likelihood of renewal or termination options. We do not separate lease and non-lease components for all classes of leased assets. Also, leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Expenditures for significant improvements and betterments are capitalized when they enhance or extend the useful life of the asset and meet a minimum capitalization threshold. Expenditures for routine repairs and maintenance, which do not improve or extend the life of the related assets, are expensed when incurred. When properties or equipment are sold, retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the books and the resulting gain or loss is recognized on the consolidated statements of operations. Depreciation on fixed assets is computed using the straight-line method over the estimated useful lives of the individual assets. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the lease term. Depreciation expense was $82.0 million , $100.5 million and $110.7 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Revenue Recognition Revenue is recognized 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. Payment terms on services and products generally range from 30 days to 120 days. Given the short-term nature of our service and product offerings, our contracts do not have a significant financing component and the consideration we receive is generally fixed. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Because our contracts with customers are short-term in nature and fall within this exemption, we do not have significant unsatisfied performance obligations. Service revenue is recognized over time as services are performed or rendered. Rates for services are typically priced on a per day, per man-hour or similar basis. We generally perform services either under direct service purchase orders or master service agreements which are supplemented by individual call-out provisions. For customers contracted under such arrangements, an accrual is recorded in unbilled revenue for revenue earned but not yet invoiced. Revenue on product sales is generally recognized at a point in time when the product has shipped and significant risks of ownership have passed to the customer. The sales arrangements typically do not include a right of return or other similar provisions, nor do they contain any other post-delivery obligations. Some of our Tubulars segment and Cementing Equipment segment customers have requested that we store pipe, connectors and cementing products purchased from us in our facilities. We recognize revenue for these “bill and hold” sales once the following criteria have been met: (1) there is a substantive reason for the arrangement, (2) the product is identified as the customer’s asset, (3) the product is ready for delivery to the customer, and (4) we cannot use the product or direct it to another customer. Short‑term investments Short‑term investments consisted of commercial paper, classified as held-to-maturity and a fund that primarily invests in short-term debt securities. These investments had original maturities of greater than three months but less than twelve months. Stock-Based Compensation Our 2013 Long-Term Incentive Plan provides for the granting of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance restricted stock units (“PRSUs”), dividend equivalent rights and other types of equity and cash incentive awards to employees, non-employee directors and service providers. Stock-based compensation expense is measured at the grant date of the share-based awards based on their value. Stock-based compensation expense is recognized on a straight-line basis over the vesting period and is included in cost of revenue and G&A expenses in the consolidated statements of operations. Our stock-based compensation currently consists of RSUs and PRSUs. The grant date fair value of the RSUs, which are not entitled to receive dividends until vested, is measured by reducing the share price at that date by the present value of the dividends expected to be paid during the requisite vesting period, discounted at the appropriate risk-free interest rate. The grant date fair value and compensation expense of PRSU grants is estimated based on a Monte Carlo simulation using the Company’s closing stock price as of the day before the grant date. Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. We consider the applicability and impact of all accounting pronouncements. ASUs not listed below were assessed and were either determined to be not applicable or are expected to have immaterial impact on our consolidated financial position, results of operations and cash flows. In June 2018, the FASB issued new guidance which is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with the accounting for employee share-based compensation. We adopted the guidance on January 1, 2019 and the adoption did not have a material impact on our consolidated financial statements. In June 2016, the FASB issued new accounting guidance for credit losses on financial instruments. The guidance includes the replacement of the “incurred loss” approach for recognizing credit losses on financial assets, including trade receivables, with a methodology that reflects expected credit losses, which considers historical and current information as well as reasonable and supportable forecasts. For public entities, the guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We adopted the guidance on January 1, 2020 and the adoption did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued new accounting guidance for leases. The main objective of the accounting guidance is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous GAAP and the new guidance is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. The new guidance requires lessees to recognize assets and liabilities arising from leases on the balance sheet and further defines a lease as a contract that conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Control over the use of the identified asset means that the customer has both (1) the right to obtain substantially all of the economic benefit from the use of the asset and (2) the right to direct the use of the asset. The accounting guidance requires disclosures by both lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We adopted the new lease standard effective January 1, 2019, using the modified retrospective approach. The modified retrospective approach provides a method for recording existing leases at adoption, including not restating comparative periods. In our financial statements, the comparative period continues to be reported under the accounting standards which were in effect for that period. Adoption of the new standard resulted in recording lease assets of $34.9 million , lease liabilities of $34.4 million and an adjustment to retained earnings of $0.7 million as of January 1, 2019. The standard had no impact on our net income (loss) and cash flows. We elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to carry forward the historical lease classification. In addition, we elected not to separate lease and non-lease components for all classes of leased assets. Also, leases with an initial term of 12 months or less are not recorded on the balance sheet. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for real estate, vehicles and certain equipment. Our leases have remaining lease terms of less than 1 year to 14 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. Leases (in thousands) Classification December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 32,585 Liabilities Current Operating Current portion of operating lease liabilities 7,925 Noncurrent Operating Non-current operating lease liabilities 24,969 Total lease liabilities $ 32,894 Our short-term lease expense was $3.6 million for the year ended December 31, 2019 . Year Ended Long-term Lease Cost (in thousands) December 31, 2019 Operating lease cost (a) $ 11,674 Sublease income $ (533 ) (a) Includes variable lease costs, which are immaterial. Year Ended Other Information (in thousands) December 31, 2019 Cash paid for amounts included in measurement of lease liabilities Operating cash flows from operating leases $ 10,750 Right-of-use assets obtained in an exchange for lease obligations Operating leases $ 7,393 Lease Term and Discount Rate December 31, 2019 Weighted average remaining lease term (years) Operating leases 6.06 Weighted average discount rate Operating leases 10.47% Maturity of Operating Lease Liabilities (in thousands) December 31, 2019 2020 $ 10,239 2021 8,972 2022 6,948 2023 4,424 2024 2,794 Thereafter 10,503 Total lease payments 43,880 Less: interest 10,986 Present value of lease liabilities $ 32,894 Total operating lease expense for the years ended December 31, 2018 and 2017 was $16.8 million and $18.7 million , respectively. Future minimum lease commitments under noncancelable operating leases with initial or remaining terms of one year or more at December 31, 2018 , were as follows (in thousands): Year Ending December 31, Amount 2019 $ 10,544 2020 9,120 2021 7,370 2022 6,006 2023 4,251 Thereafter 13,103 Total future lease commitments $ 50,394 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Related Party Acquisition On November 2, 2018, Frank’s International, LLC entered into a purchase agreement with Mosing Ventures, LLC, Mosing Land & Cattle Company, LLC, Mosing Queens Row Properties, LLC, and 4-M Investments, each of which are companies related to us by common ownership (the “Mosing Companies”). Under the purchase agreement, we acquired real property that we previously leased from the Mosing Companies, and two additional properties located adjacent to those properties. The total purchase price was $37.0 million , including legal fees and closing adjustments for normal operating activity. The purchase closed on December 18, 2018. Please see Note 12—Related Party Transactions in these Notes to Consolidated Financial Statements. Divestitures During the first quarter of 2018, we sold a building classified as held for sale for $0.8 million and recorded an immaterial loss. During the third quarter of 2018, we sold a building classified as held for sale with a net book value of $0.3 million for $2.6 million . During the fourth quarter of 2018, we sold a building classified as held for sale with a net book value of $4.2 million and recorded an immaterial gain. During the second quarter of 2019, we sold a building classified as held for sale for $0.2 million and recorded an immaterial loss. During the fourth quarter of 2019, we sold a building classified as held for sale for $0.3 million and recorded an immaterial loss. |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable at December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 2018 Trade accounts receivable, net of allowance of $5,129 and $3,925, respectively $ 101,718 $ 114,630 Unbilled receivables 43,422 54,591 Taxes receivable 18,516 15,762 Affiliated (1) 549 549 Other receivables 2,489 3,882 Total accounts receivable, net $ 166,694 $ 189,414 (1) Amounts represent expenditures on behalf of non-consolidated affiliates. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories at December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 2018 Pipe and connectors, net of allowance of $18,287 and $21,270, respectively $ 21,779 $ 18,026 Finished goods, net of allowance of $485 and $1,354, respectively 25,628 22,608 Work in progress 3,663 8,285 Raw materials, components and supplies 27,759 20,463 Total inventories, net $ 78,829 $ 69,382 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The following is a summary of property, plant and equipment at December 31, 2019 and 2018 (in thousands): December 31, Estimated Useful Lives in Years 2019 2018 Land — $ 30,724 $ 32,945 Land improvements 8-15 7,193 8,316 Buildings and improvements 13-39 116,182 125,088 Rental machinery and equipment 7 882,979 887,064 Machinery and equipment - other 7 60,182 61,796 Furniture, fixtures and computers 5 17,251 24,745 Automobiles and other vehicles 5 28,734 29,696 Leasehold improvements 7-15, or lease term if shorter 14,258 15,392 Construction in progress - machinery and equipment and buildings — 46,564 65,152 1,204,067 1,250,194 Less: Accumulated depreciation (875,635 ) (833,704 ) Total property, plant and equipment, net $ 328,432 $ 416,490 During the second quarter of 2018, assets with a net book value of $4.5 million met the criteria to be classified as held for sale and were reclassified from property, plant and equipment to assets held for sale on our consolidated balance sheet. During the third quarter of 2018, a building with a net book value of $5.0 million met the criteria to be classified as held for sale and was reclassified from property, plant and equipment to assets held for sale on our consolidated balance sheet. During the first quarter of 2019, buildings with a net book value of $1.1 million met the criteria to be classified as held for sale and were reclassified from property, plant and equipment to assets held for sale on our consolidated balance sheet. During the third quarter of 2019, an additional building met the criteria to be classified as held for sale and a $4.0 million impairment loss was recorded, which is included in severance and other charges (credits), net on our consolidated statements of operations. The building's remaining net book value of $5.3 million was reclassified from property, plant and equipment to assets held for sale on our consolidated balance sheets. During the fourth quarter of 2019, equipment in our Tubular Running Services segment met the criteria to be classified as held for sale and a $0.3 million impairment loss was recorded, which is included in severance and other charges (credits), net on our consolidated statements of operations. The equipment’s remaining net book value of $0.2 million was reclassified from property, plant and equipment to assets held for sale on our consolidated balance sheets. During the year ended December 31, 2019 , we recorded fixed asset impairment charges of $32.9 million primarily associated with construction in progress in our Tubular Running Services segment, which is included in severance and other charges (credits), net on our consolidated statements of operations. No impairments were recognized during the year ended December 31, 2018 . During the year ended December 31, 2017 , we recognized a $6.5 million charge for fixed asset retirements, which is included in severance and other charges (credits), net on our consolidated statements of operations. Please see Note 18—Severance and Other Charges (Credits), net in these Notes to Consolidated Financial Statements for additional details. The following table presents the depreciation and amortization associated with each line for the years ended December 31, 2019 , 2018 and 2017 (in thousands): December 31, 2019 2018 2017 Cost of revenue Services $ 80,072 $ 93,280 $ 102,212 Products 1,511 4,354 4,971 General and administrative expenses 11,217 13,658 14,919 Total $ 92,800 $ 111,292 $ 122,102 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets at December 31, 2019 and 2018 consisted of the following (in thousands): December 31, 2019 2018 Cash surrender value of life insurance policies (1) $ 27,313 $ 23,784 Deposits 2,119 2,269 Other 3,805 2,566 Total other assets $ 33,237 $ 28,619 (1) See Note 10—Fair Value Measurements for additional information. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities at December 31, 2019 and 2018 consisted of the following (in thousands): December 31, 2019 2018 Accounts payable $ 16,793 $ 28,045 Accrued compensation 23,988 30,822 Accrued property and other taxes 20,099 16,301 Accrued severance and other charges 5,837 2,328 Income taxes 19,166 12,075 Affiliated (1) 1,694 3,915 Accrued purchase orders and other 32,744 30,495 Total accounts payable and accrued liabilities $ 120,321 $ 123,981 (1) Represents amounts owed to non-consolidated affiliates. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Facility Asset Based Revolving Credit Facility On November 5, 2018, FICV, Frank’s International, LLC and Blackhawk, as borrowers, and FINV, certain of FINV’s subsidiaries, including FICV, Frank’s International, LLC, Blackhawk, Frank’s International GP, LLC, Frank’s International, LP, Frank’s International LP B.V., Frank’s International Partners B.V., Frank’s International Management B.V., Blackhawk Intermediate Holdings, LLC, Blackhawk Specialty Tools, LLC, and Trinity Tool Rentals, L.L.C., as guarantors, entered into a 5 -year senior secured revolving credit facility (the “ABL Credit Facility”) with JPMorgan Chase Bank, N.A., as administrative agent (the “ABL Agent”), and other financial institutions as lenders with total commitments of $100.0 million including up to $15.0 million available for letters of credit. Subject to the terms of the ABL Credit Facility, we have the ability to increase the commitments to $200.0 million . The maximum amount that the Company may borrow under the ABL Credit Facility is subject to a borrowing base, which is based on a percentage of certain eligible accounts receivable and eligible inventory, subject to customary reserves and other adjustments. All obligations under the ABL Credit Facility are fully and unconditionally guaranteed jointly and severally by FINV’s subsidiaries, including FICV, Frank’s International, LLC, Blackhawk, Frank’s International GP, LLC, Frank’s International, LP, Frank’s International LP B.V., Frank’s International Partners B.V., Frank’s International Management B.V., Blackhawk Intermediate Holdings, LLC, Blackhawk Specialty Tools, LLC, and Trinity Tool Rentals, L.L.C., subject to customary exceptions and exclusions. In addition, the obligations under the ABL Credit Facility are secured by first priority liens on substantially all of the assets and property of the borrowers and guarantors, including pledges of equity interests in certain of FINV’s subsidiaries, subject to certain exceptions. Borrowings under the ABL Credit Facility bear interest at FINV’s option at either (a) the Alternate Base Rate ( “ ABR ” ) (as defined therein), calculated as the greatest of (i) the rate of interest publicly quoted by the Wall Street Journal, as the “prime rate,” subject to each increase or decrease in such prime rate effective as of the date such change occurs, (ii) the federal funds effective rate that is subject to a 0.00% interest rate floor plus 0.50% , and (iii) the one-month Adjusted LIBO Rate (as defined therein) plus 1.00% , or (b) the Adjusted LIBO Rate (as defined therein), plus, in each case, an applicable margin. The applicable interest rate margin ranges from 1.00% to 1.50% per annum for ABR loans and 2.00% to 2.50% per annum for Eurodollar loans and, in each case, is based on FINV’s leverage ratio. The unused portion of the ABL Credit Facility is subject to a commitment fee that varies from 0.250% to 0.375% per annum, according to average daily unused commitments under the ABL Credit Facility. Interest on Eurodollar loans is payable at the end of the selected interest period, but no less frequently than quarterly. Interest on ABR loans is payable monthly in arrears. The ABL Credit Facility contains various covenants and restrictive provisions which limit, subject to certain customary exceptions and thresholds, FINV’s ability to, among other things, (1) enter into asset sales; (2) incur additional indebtedness; (3) make investments, acquisitions, or loans and create or incur liens; (4) pay certain dividends or make other distributions and (5) engage in transactions with affiliates. The ABL Credit Facility also requires FINV to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0 based on the ratio of (a) consolidated EBITDA (as defined therein) minus unfinanced capital expenditures to (b) Fixed Charges (as defined therein), when either (i) an event of default occurs under the ABL Facility or (ii) availability under the ABL Credit Facility falls for at least two consecutive calendar days below the greater of (A) $12.5 million and (B) 15% of the lesser of the borrowing base and aggregate commitments (a “FCCR Trigger Event”). Accounts receivable received by FINV’s U.S. subsidiaries that are parties to the ABL Credit Facility will be deposited into deposit accounts subject to deposit control agreements in favor of the ABL Agent. After a FCCR Trigger Event, these deposit accounts would be subject to “springing” cash dominion. After a FCCR Trigger Event, the Company will be subject to compliance with the fixed charge coverage ratio and “springing” cash dominion until no default exists under the ABL Credit Facility and availability under the facility for the preceding thirty consecutive days has been equal to at least the greater of (x) $12.5 million and (y) 15% of the lesser of the borrowing base and the aggregate commitments. If FINV fails to perform its obligations under the agreement that results in an event of default, the commitments under the ABL Credit Facility could be terminated and any outstanding borrowings under the ABL Credit Facility may be declared immediately due and payable. The ABL Credit Facility also contains cross default provisions that apply to FINV’s other indebtedness. As of December 31, 2019 , FINV had no borrowings outstanding under the ABL Credit Facility, letters of credit outstanding of $9.3 million and availability of $44.7 million . Insurance Notes Payable In 2018, we entered into a note to finance our annual insurance premiums totaling $6.8 million . The note bore interest at an annual rate of 3.9% with a final maturity date in October 2019 . At December 31, 2018, the total outstanding balance was $5.6 million . For the current policy year, the Company elected to pay its annual insurance premiums from existing cash available. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We follow fair value measurement authoritative accounting guidance for measuring fair values of assets and liabilities in financial statements. Fair value is 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. We utilize market data or assumptions that market participants who are independent, knowledgeable, and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. We are able to classify fair value balances based on the observability of these inputs. The authoritative guidance for fair value measurements establishes three levels of the fair value hierarchy, defined as follows: • Level 1: Unadjusted, quoted prices for identical assets or liabilities in active markets. • Level 2: Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly for substantially the full term of the asset or liability. • Level 3: Significant, unobservable inputs for use when little or no market data exists, requiring a significant degree of judgment. The hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. Depending on the particular asset or liability, input availability can vary depending on factors such as product type, longevity of a product in the market and other particular transaction conditions. In some cases, certain inputs used to measure fair value may be categorized into different levels of the fair value hierarchy. For disclosure purposes under the accounting guidance, the lowest level that contains significant inputs used in valuation should be chosen. Financial Assets and Liabilities A summary of financial assets and liabilities that are measured at fair value on a recurring basis, as of December 31, 2019 and 2018 , were as follows (in thousands): Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total December 31, 2019 Assets: Investments: Cash surrender value of life insurance policies - deferred compensation plan $ — $ 27,313 $ — $ 27,313 Marketable securities - other 8 — — 8 Liabilities: Derivative financial instruments — 324 — 324 Deferred compensation plan — 23,251 — 23,251 December 31, 2018 Assets: Investments: Cash surrender value of life insurance policies - deferred compensation plan $ — $ 23,784 $ — $ 23,784 Marketable securities - other 37 — — 37 Liabilities: Derivative financial instruments — 101 — 101 Deferred compensation plan — 23,663 — 23,663 Our derivative financial instruments consist of short-duration foreign currency forward contracts. The fair value of derivative financial instruments is based on quoted market values including foreign exchange forward rates and interest rates. The fair value is computed by discounting the projected future cash flow amounts to present value. At December 31, 2019 and 2018 , derivative financial instruments are included in the financial statement line item accounts payable and accrued liabilities in our consolidated balance sheets. Our investments associated with our deferred compensation plan consist primarily of the cash surrender value of life insurance policies and is included in other assets on the consolidated balance sheets. The liability associated with our deferred compensation plan is included in other liabilities on the consolidated balance sheets. Our investments change as a result of contributions, payments, and fluctuations in the market. Assets and liabilities, measured using significant observable inputs, are reported at fair value based on third-party broker statements, which are derived from the fair value of the funds’ underlying investments. We also have marketable securities in publicly traded equity securities as an indirect result of strategic investments. They are reported at fair value based on the price of the stock and are included in other assets on the consolidated balance sheets. Assets and Liabilities Measured at Fair Value on a Non-recurring Basis We apply the provisions of the fair value measurement standard to our non-recurring, non-financial measurements including business combinations and assets identified as held for sale, as well as impairment related to goodwill and other long-lived assets. For business combinations, the purchase price is allocated to the assets acquired and liabilities assumed based on a discounted cash flow model for most intangibles as well as market assumptions for the valuation of equipment and other fixed assets. We perform our goodwill impairment assessment for each reporting unit by comparing the estimated fair value of each reporting unit to the reporting unit’s carrying value, including goodwill. We estimate the fair value for each reporting unit using a discounted cash flow analysis based on management’s short-term and long-term forecast of operating performance. This analysis includes significant assumptions regarding discount rates, revenue growth rates, expected profitability margins, forecasted capital expenditures and the timing of expected future cash flows based on market conditions. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. If the carrying amount of a reporting unit exceeds its estimated fair value, an impairment loss is measured and recorded. When conducting an impairment test on long-lived assets, other than goodwill, we first compare estimated future undiscounted cash flows associated with the asset to the asset’s carrying amount. If the undiscounted cash flows are less than the asset’s carrying amount, we then determine the asset’s fair value by using a discounted cash flow analysis. These analyses are based on estimates such as management’s short-term and long-term forecast of operating performance, including revenue growth rates and expected profitability margins, estimates of the remaining useful life and service potential of the asset, and a discount rate based on our weighted average cost of capital. For assets that meet the criteria to be classified as held for sale, a market approach is used to determine fair value based on third-party appraisal reports. The impairment assessments discussed above incorporate inherent uncertainties, including projected commodity pricing, supply and demand for our services and future market conditions, which are difficult to predict in volatile economic environments and could result in impairment charges in future periods if actual results materially differ from the estimated assumptions utilized in our forecasts. If crude oil prices decline significantly and remain at low levels for a sustained period of time, we could be required to record an impairment of the carrying value of our long-lived assets in the future which could have a material adverse impact on our operating results. Given the unobservable nature of the inputs, the discounted cash flow models are deemed to use Level 3 inputs. Other Fair Value Considerations The carrying values on our consolidated balance sheets of our cash and cash equivalents, short-term investments, trade accounts receivable, other current assets, accounts payable and accrued liabilities and lines of credit approximate fair values due to their short maturities. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives We enter into short-duration foreign currency forward derivative contracts to reduce the risk of foreign currency fluctuations. We use these instruments to mitigate our exposure to non-local currency operating working capital. We record these contracts at fair value on our consolidated balance sheets. Although the derivative contracts will serve as an economic hedge of the cash flow of our currency exchange risk exposure, they are not formally designated as hedge contracts for hedge accounting treatment. Accordingly, any changes in the fair value of the derivative instruments during a period will be included in our consolidated statements of operations. As of December 31, 2019 and 2018 , we had the following foreign currency derivative contracts outstanding in U.S. dollars (in thousands): December 31, 2019 Notional Contractual Settlement Derivative Contracts Amount Exchange Rate Date Canadian dollar $ 948 1.3182 3/16/2020 Euro 9,279 1.1180 3/17/2020 Norwegian krone 11,027 9.0688 3/17/2020 Pound sterling 16,057 1.3381 3/17/2020 December 31, 2018 Notional Contractual Settlement Derivative Contracts Amount Exchange Rate Date Canadian dollar $ 2,248 1.3343 3/18/2019 Euro 6,967 1.1421 3/18/2019 Norwegian krone 7,713 8.5566 3/18/2019 Pound sterling 16,452 1.2655 3/18/2019 The following table summarizes the location and fair value amounts of all derivative contracts in the consolidated balance sheets as of December 31, 2019 and 2018 (in thousands): Derivatives not designated as Hedging Instruments Consolidated Balance Sheet Location December 31, 2019 December 31, 2018 Foreign currency contracts Accounts payable and accrued liabilities $ (324 ) $ (101 ) The following table summarize the location and amounts of the unrealized and realized gains and losses on derivative contracts in the consolidated statements of operations as of December 31, 2019 , 2018 and 2017 (in thousands): Derivatives not designated as Hedging Instruments Location of gain (loss) recognized in income on derivative contracts December 31, 2019 December 31, 2018 December 31, 2017 Unrealized gain (loss) on foreign currency contracts Other income, net $ (222 ) $ 386 $ (634 ) Realized gain (loss) on foreign currency contracts Other income, net 320 1,661 (1,699 ) Total net gain (loss) on foreign currency contracts $ 98 $ 2,047 $ (2,333 ) Our derivative transactions are governed through International Swaps and Derivatives Association master agreements. These agreements include stipulations regarding the right of offset in the event that we or our counterparty default on our performance obligations. If a default were to occur, both parties have the right to net amounts payable and receivable into a single net settlement between parties. Our accounting policy is to offset derivative assets and liabilities executed with the same counterparty when a master netting arrangement exists. The following table presents the gross and net fair values of our derivatives as of December 31, 2019 and 2018 (in thousands): Derivative Asset Positions Derivative Liability Positions December 31, December 31, 2019 2018 2019 2018 Gross position - asset / (liability) $ 127 $ 113 $ (451 ) $ (214 ) Netting adjustment (127 ) (113 ) 127 113 Net position - asset / (liability) $ — $ — $ (324 ) $ (101 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We have engaged in certain transactions with other companies related to us by common ownership. We have entered into various operating leases to lease facilities from these affiliated companies. Rent expense associated with our related party leases was $2.7 million , $6.5 million and $6.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , $6.3 million of our operating lease right-of-use assets and $7.1 million of our lease liabilities were associated with related party leases. On November 2, 2018, Frank’s International, LLC entered into a purchase agreement with Mosing Ventures, LLC, Mosing Land & Cattle Company, LLC, Mosing Queens Row Properties, LLC, and 4-M Investments, each of which are companies related to us by common ownership (the “Mosing Companies”). Under the purchase agreement, we acquired real property that we previously leased from the Mosing Companies, and two additional properties located adjacent to those properties. The total purchase price was $37.0 million , including legal fees and closing adjustments for normal operating activity. The purchase closed on December 18, 2018. The properties were conveyed as-is, except that until 10 years following the Closing Date, the parties will continue to have certain rights and obligations under the terms of the agreements by which some of the purchased properties were acquired by the Mosing Companies at the time of our IPO. We made improvements on the purchased properties during the lease period, and the purchase price was calculated excluding the value of those improvements. As of the purchase close, we no longer lease the acquired properties from the Mosing Companies. Tax Receivable Agreement Mosing Holdings and its permitted transferees converted all of their Preferred Stock into shares of our common stock on a one -for-one basis on August 26, 2016, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications and other similar transactions, by delivery of all of their interests in FICV to us (the “Conversion”). As a result of an election under Section 754 of the Internal Revenue Code, made by FICV, the Conversion resulted in an adjustment to the tax basis of the tangible and intangible assets of FICV with respect to the portion of FICV transferred to FINV by Mosing Holdings and its permitted transferees. These adjustments are allocated to FINV. The adjustments to the tax basis of the tangible and intangible assets of FICV described above would not have been available absent this Conversion. The basis adjustments may reduce the amount of tax that FINV would otherwise be required to pay in the future. These basis adjustments may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. The TRA that we entered into with FICV and Mosing Holdings in connection with our IPO generally provides for the payment by FINV of 85% of the amount of the net cash savings, if any, in U.S. federal, state and local income tax and franchise tax (or are deemed to realize in certain circumstances) in periods after our IPO as a result of (i) tax basis increases resulting from the Conversion and (ii) imputed interest deemed to be paid by us as a result of, and additional tax basis arising from, payments under the TRA. We will retain the benefit of the remaining 15% of these cash savings. Payments we make under the TRA will be increased by any interest accrued from the due date (without extensions) of the corresponding tax return to the date of payment specified by the TRA. The payments under the TRA will not be conditioned upon a holder of rights under the TRA having a continued ownership interest in FINV. The estimation of the amount and timing of payments under the TRA is by its nature imprecise. For purposes of the TRA, cash savings in tax generally are calculated by comparing our actual tax liability to the amount we would have been required to pay had we not been able to utilize any of the tax benefits subject to the TRA. The amounts payable, as well as the timing of any payments, under the TRA are dependent upon significant future events and assumptions, including the amount and timing of the taxable income we generate in the future. As of December 31, 2019, FINV has a cumulative loss over the prior 36 month period. Based on this history of losses, as well as uncertainty regarding the timing and amount of future taxable income, we are no longer able to conclude that there will be future cash savings that will lead to additional payouts under the TRA. Additional TRA liability may be recognized in the future based on changes in expectations regarding the timing and likelihood of future cash savings. The payment obligations under the TRA are our obligations and are not obligations of FICV. The term of the TRA commenced upon the completion of the IPO and will continue until all tax benefits that are subject to the TRA have been utilized or expired, unless FINV elects to exercise its right to terminate the TRA (or the TRA is terminated due to other circumstances, including our breach of a material obligation thereunder or certain mergers or other changes of control), and we make the termination payment specified in the TRA. If FINV elects to terminate the TRA early, which it may do so in its sole discretion, (or if it terminates as a result of our breach) it would be required to make a substantial, immediate lump-sum payment equal to the present value of the hypothetical future payments that could be required to be paid under the TRA (based upon certain assumptions and deemed events set forth in the TRA, including the assumption that it has sufficient taxable income to fully utilize such benefits), determined by applying a discount rate equal to the long-term Treasury rate in effect on the applicable date plus 300 basis points. Any early termination payment may be made significantly in advance of the actual realization, if any, of such future benefits. In addition, payments due under the TRA will be similarly accelerated following certain mergers or other changes of control. In these situations, FINV’s obligations under the TRA could have a substantial negative impact on our liquidity and could have the effect of delaying, deferring or preventing certain mergers, asset sales, other forms of business combinations or other changes of control. For example, if the TRA were terminated on December 31, 2019, the estimated termination payment would be approximately $50.0 million (calculated using a discount rate of 5.25% ). The foregoing number is merely an estimate and the actual payment could differ materially. Because FINV is a holding company with no operations of its own, its ability to make payments under the TRA is dependent on the ability of FINV’s operating subsidiaries to make distributions to it in an amount sufficient to cover FINV’s obligations under such agreement. The ability of certain of FINV’s operating subsidiaries to make such distributions will be subject to, among other things, the applicable provisions of Dutch law that may limit the amount of funds available for distribution and restrictions in our debt instruments. To the extent that FINV is unable to make payments under the TRA for any reason (except in the case of an acceleration of payments thereunder occurring in connection with an early termination of the TRA or certain mergers or change of control) such payments will be deferred and will accrue interest until paid, and FINV will be prohibited from paying dividends on its common stock. |
Loss Per Common Share
Loss Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | Loss Per Common Share Basic loss per common share is determined by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is determined by dividing loss attributable to common stockholders by the weighted average number of common shares outstanding, assuming all potentially dilutive shares were issued. We apply the treasury stock method to determine the dilutive weighted average common shares represented by the unvested restricted stock units and ESPP shares. The following table summarizes the basic and diluted loss per share calculations (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 Numerator Net loss $ (235,329 ) $ (90,733 ) $ (159,457 ) Denominator Basic and diluted weighted average common shares (1) 225,159 223,999 222,940 Loss per common share: Basic and diluted $ (1.05 ) $ (0.41 ) $ (0.72 ) (1) Approximate number of shares of unvested restricted stock units and stock to be issued pursuant to the ESPP have been excluded from the computation of diluted loss per share as the effect would be anti-dilutive when the results from operations are at a net loss position. 737 922 648 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation 2013 Long-Term Incentive Plan Under our 2013 Long-Term Incentive Plan (the “LTIP”), stock options, SARs, restricted stock, restricted stock units, dividend equivalent rights and other types of equity and cash incentive awards may be granted to employees, non-employee directors and service providers. The LTIP expires after 10 years, unless prior to that date the maximum number of shares available for issuance under the plan has been issued or our board of directors terminates the plan. There are 20,000,000 shares of common stock reserved for issuance under the LTIP. As of December 31, 2019 , 11,410,061 shares remained available for issuance. Restricted Stock Units Upon completion of the IPO and pursuant to the LTIP, we began granting restricted stock units. Substantially all RSUs granted under the LTIP vest ratably over a period of one to three years . Our treasury stock consists of shares that were withheld from employees to settle personal tax obligations that arose as a result of restricted stock units that vested. Certain restricted stock unit awards provide for accelerated vesting for qualifying terminations of employment or service. Employees granted RSUs are not entitled to dividends declared on the underlying shares while the restricted stock unit is unvested. As such, the grant date fair value of the award is measured by reducing the grant date price of our common stock by the present value of the dividends expected to be paid on the underlying shares during the requisite service period, discounted at the appropriate risk-free interest rate. The weighted average grant date fair value of RSUs granted during the years ended December 31, 2019 , 2018 and 2017 was $11.4 million , $9.5 million and $12.1 million , respectively. Compensation expense is recognized ratably over the vesting period. Forfeitures are recorded as they occur. Stock-based compensation expense relating to RSUs for the years ended December 31, 2019 , 2018 and 2017 was $8.7 million , $8.9 million and $12.8 million , respectively. The total fair value of RSUs vested during the years ended December 31, 2019 , 2018 and 2017 was $7.1 million , $6.7 million and $9.9 million , respectively. Unamortized stock compensation expense as of December 31, 2019 relating to RSUs totaled approximately $8.8 million , which will be expensed over a weighted average period of 1.75 years . Non-vested RSUs outstanding as of December 31, 2019 and the changes during the year were as follows: Number of Weighted Average Non-vested at December 31, 2018 2,188,965 $ 7.66 Granted 1,756,125 6.49 Vested (1,138,654 ) 7.87 Forfeited (345,636 ) 6.81 Non-vested at December 31, 2019 2,460,800 $ 6.65 Performance Restricted Stock Units The purpose of the PRSUs is to closely align the incentive compensation of the executive leadership team for the duration of the performance cycle with returns to FINV’s shareholders and thereby further motivate the executive leadership team to create sustained value to FINV shareholders. The design of the PRSU grants effectuates this purpose by placing a material amount of incentive compensation for each executive at risk by offering an extraordinary reward for the attainment of extraordinary results. Design features of the PRSU grant that in furtherance of this purpose include the following: (1) The vesting of the PRSUs is based on total shareholder return (“TSR”) based on a comparison to the returns of a peer group, which, beginning with PRSUs granted in 2018, is the SPDR S&P Oil & Gas Equipment and Services ETF. (2) TSR is computed over the entire Performance Period (using a 30 -day averaging period for the first 30 calendar days and the last 30 calendar days of the Performance Period to mitigate the effect of stock price volatility), but beginning with the PRSUs granted in 2018, TSR performance is calculated separately with respect to three separate one-year achievement periods included in the three-year Performance Period, resulting in a weighted average payout at the end of the three-year Performance Period. The TSR calculation will assume reinvestment of dividends. (3) The ultimate number of shares to be issued pursuant to the PRSU awards will vary in proportion to the actual TSR achieved as a percentile compared to the peer group during the Performance Period as follows: (i) no shares will be issued if the Company’s performance falls below the 25 th percentile; (ii) 50% of the Target Level if the Company achieves a rank in the 25 th percentile (the threshold level); (iii) 100% of the Target Level if the Company achieves a rank in the 50 th percentile (the target level); (iv) 150% of the Target Level if the Company achieves a rank in the 75 th percentile (the maximum level for the 2017 grants); and 200% of the Target Level if the Company achieves a rank in the 90 th percentile and above (the maximum level for the 2018 and 2019 grants). (4) Unless there is a qualifying termination as defined in the PRSU award agreement, the PRSUs of an executive will be forfeited upon an executive’s termination of employment during the Performance Period. Though the value of the PRSU grant may change for each participant, the compensation expense recorded by the Company is determined on the date of grant. Expected volatility is based on historical equity volatility of our stock based on 50% of historical and 50% of implied volatility weighting commensurate with the expected term of the PRSU. The expected volatility considers factors such as the historical volatility of our share price and our peer group companies, implied volatility of our share price, length of time our shares have been publicly traded, and split- and dividend-adjusted closing stock prices. In 2019 , we granted PRSUs with a fair value of $3.7 million or 446,858 units (“Target Level”). The performance period for these grants is the three year period from January 1, 2019 to December 31, 2021 (“Performance Period”), but with separate one -year achievement periods from January 1, 2019 to December 31, 2019, January 1, 2020 to December 31, 2020 and January 1, 2021 to December 31, 2021, resulting in a weighted average payout at the end of the Performance Period. The weighted average assumptions for the PRSUs granted in 2019 are as follows: 2019 Total expected term (in years) 2.86 Expected volatility 43.5% Risk-free interest rate 2.48% Correlation range 2.4% to 88.1% In 2018 , we granted PRSUs with a fair value of $2.0 million or 275,550 units (“Target Level”). The performance period for these grants is the three year period from January 1, 2018 to December 31, 2020 (“Performance Period”), but with separate one -year achievement periods from January 1, 2018 to December 31, 2018, January 1, 2019 to December 31, 2019 and January 1, 2020 to December 31, 2020, resulting in a weighted average payout at the end of the Performance Period. The weighted average assumptions for the PRSUs granted in 2018 are as follows: 2018 Expected term (in years) 2.86 Expected volatility 39.0% Risk-free interest rate 2.35% Correlation range 11.0% to 85.7% In 2017 , we granted PRSUs with a fair value of $2.6 million or 293,083 units (“Target Level”). The performance period for these grants is a three -year period from January 1, 2017 to December 31, 2019 (“Performance Period”). The weighted average assumptions for the PRSUs granted in 2017 are as follows: 2017 Expected term (in years) 2.92 Expected volatility 42.1% Risk-free interest rate 1.51% Correlation range 26.8% to 76.0% In the event of death or disability, the restrictions related to forfeiture as defined in the performance awards agreement will lapse with respect to 100% of the PRSUs at the target level effective on the date of such event. In the event of involuntary termination except for cause, the Company may enter into a special vesting agreement with the executive under which the restrictions for forfeiture will not lapse upon such termination. In the event of a termination for any other reason prior to the end of the Performance Period, all PRSUs will be forfeited. Stock-based compensation expense related to PRSUs for the years ended December 31, 2019 , 2018 and 2017 was $2.0 million , $1.2 million and $0.6 million , respectively. The total fair value of PRSUs vested during the year ended December 31, 2017 was $0.2 million . There were no PRSU vestings during the years ended December 31, 2019 and 2018 . Unamortized stock compensation expense as of December 31, 2019 relating to PRSUs totaled approximately $3.0 million , which will be expensed over a weighted average period of 1.82 years. Non-vested PRSUs outstanding as of December 31, 2019 and the changes during the year were as follows: Number of Weighted Average Non-vested at December 31, 2018 593,987 $ 8.06 Granted 446,858 8.22 Forfeited (252,012 ) 7.96 Non-vested at December 31, 2019 788,833 $ 8.13 Employee Stock Purchase Plan Under the Frank’s International N.V. ESPP, eligible employees have the right to purchase shares of common stock at the lesser of (i) 85% of the last reported sale price of our common stock on the last trading date immediately preceding the first day of the option period, or (ii) 85% of the last reported sale price of our common stock on the last trading date immediately preceding the last day of the option period. The ESPP is intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code. We have reserved 3.0 million shares of our common stock for issuance under the ESPP, of which 2.1 million shares were available for issuance as of December 31, 2019 . Shares issued to our employees under the ESPP totaled 389,284 in 2019 and 232,592 shares in 2018 . For the years ended December 31, 2019 , 2018 and 2017 , we recognized $0.6 million , $0.5 million and $0.4 million of compensation expense related to stock purchased under the ESPP, respectively. In January 2019 , we issued 153,451 shares of our common stock to our employees under this plan to satisfy the employee purchase period from July 1, 2018 to December 31, 2018 , which increased our common stock outstanding. In July 2019 , we issued 235,833 shares of our common stock to our employees under this plan to satisfy the employee purchase period from January 1, 2019 to June 30, 2019 , which increased our common stock outstanding. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans U.S. Benefit Plans 401(k) Savings and Investment Plan . Frank’s International, LLC administers a 401(k) savings and investment plan (the “Plan”) as part of the employee benefits package. Employees are required to complete one month of service before becoming eligible to participate in the Plan. Under the terms of the Plan, we match 100% of the first 3% of eligible compensation an employee contributes to the Plan up to the annual allowable IRS limit. Additionally, the Company provides a 50% match on any employee contributions between 4% to 6% of eligible compensation. Our matching contributions to the Plan totaled $5.0 million , $4.5 million and $3.7 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Executive Deferred Compensation Plan . In December 2004, we and certain affiliates adopted the Frank’s Executive Deferred Compensation Plan (the “EDC Plan”). The purpose of the EDC Plan is to provide participants with an opportunity to defer receipt of a portion of their salary, bonus, and other specified cash compensation. Participant contributions are immediately vested. Our contributions vest after five years of service. All participant benefits under this EDC Plan shall be paid directly from the general funds of the applicable participating subsidiary or a grantor trust, commonly referred to as a Rabbi Trust, created for the purpose of informally funding the EDC Plan, and other than such Rabbi Trust, no special or separate fund shall be established and no other segregation of assets shall be made to assure payment. The assets of our EDC Plan’s trust are invested in a corporate owned split-dollar life insurance policy and an amalgamation of mutual funds (See Note 7—Other Assets). We recorded compensation expense related to the vesting of the Company’s contribution of $1.0 million for the year ended December 31, 2018 . No compensation expense related to the vesting of the Company’s contribution was recorded for the years ended December 31, 2019 and 2017 . The total liability recorded at December 31, 2019 and 2018 , related to the EDC Plan was $23.3 million and $23.7 million , respectively, and was included in other noncurrent liabilities on the consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Loss before income tax expense (benefit) was comprised of the following for the periods indicated (in thousands): Year Ended December 31, 2019 2018 2017 United States $ (225,653 ) $ (85,342 ) $ (167,908 ) Foreign 14,118 (8,341 ) 81,369 Loss before income tax expense (benefit) $ (211,535 ) $ (93,683 ) $ (86,539 ) Income taxes have been provided for based upon the tax laws and rates in the countries in which operations are conducted and income is earned. Components of income tax expense (benefit) consist of the following for the periods indicated (in thousands): Year Ended December 31, 2019 2018 2017 Current U.S. federal $ — $ — $ — U.S. state and local 209 7 (15 ) Foreign 21,975 11,677 10,516 Total current 22,184 11,684 10,501 Deferred U.S. federal 444 — 56,621 U.S. state and local — — 2,420 Foreign 1,166 (14,634 ) 3,376 Total deferred 1,610 (14,634 ) 62,417 Total income tax expense (benefit) $ 23,794 $ (2,950 ) $ 72,918 For the year ending December 31, 2017, the Company reported, on a provisional basis, the tax impacts resulting from the enactment of the Tax Act on December 22, 2017. During 2018, the Company completed its analysis of the impacts of the Tax Act during the measurement period without further adjustment. The Company has completed the accounting for the impacts of the Tax Act, although adjustments may be necessary in future periods due to technical corrections and/or regulatory guidance that may be issued by the Internal Revenue Service. Foreign taxes were incurred in the following regions for the periods indicated (in thousands): Year Ended December 31, 2019 2018 2017 Latin America $ 8,636 $ 1,261 $ 5,469 West Africa 4,688 2,692 3,243 Middle East 5,579 2,249 1,633 Europe 1,096 461 1,348 Asia Pacific 1,525 922 1,388 Other 1,617 (10,542 ) 812 Total foreign income tax expense (benefit) $ 23,141 $ (2,957 ) $ 13,893 A reconciliation of the differences between the income tax provision computed at the 21% U.S. statutory rate in effect at December 31, 2019 and the reported provision for income taxes for the periods indicated is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Income tax expense (benefit) at statutory rate $ (44,422 ) $ (19,673 ) $ (30,289 ) Branch profits tax (12,129 ) (4,267 ) (4,871 ) State taxes, net of federal benefit 154 (27 ) 2,405 Restricted stock units tax shortfall 405 1,025 1,651 Taxes on foreign earnings at less than the U.S. statutory rate 14,427 13,095 (22,464 ) Effect of tax rate change — (2,929 ) 23,843 Effect of moving activity to higher tax rate jurisdiction — (14,620 ) — Management fee charged to international operations 3,455 1,515 1,213 Tax effect of TRA derecognition — — 46,874 Establishment of valuation allowances 37,802 22,892 51,911 Goodwill impairment 25,677 — — Return-to-provision adjustments (524 ) (521 ) 3,551 Foreign tax credit (5,707 ) — — Other 4,656 560 (906 ) Total income tax expense (benefit) $ 23,794 $ (2,950 ) $ 72,918 A reconciliation using the Netherlands statutory rate was not provided as there are no significant operations in the Netherlands. Deferred tax assets and liabilities are recorded for the anticipated future tax effects of temporary differences between the financial statement basis and tax basis of our assets and liabilities and are measured using the tax rates and laws expected to be in effect when the differences are projected to reverse. A valuation allowance is recorded when it is not more likely than not that some or all the benefit from the deferred tax asset will be realized. Significant components of deferred tax assets and liabilities are as follows (in thousands): December 31, 2019 2018 Deferred tax assets Foreign net operating loss $ 17,121 $ 13,290 U.S. net operating loss 104,105 76,349 Research and development credit 1,016 609 Foreign tax credit carryover 422 — Intangibles 9,365 5,933 Inventory 2,280 2,350 Property and equipment 16,161 14,621 Investment in partnership 24,372 23,931 Other 1,442 773 Valuation allowance (130,010 ) (84,972 ) Total deferred tax assets 46,274 52,884 Deferred tax liabilities Investment in partnership (23,728 ) (27,352 ) Property and equipment (1,253 ) (3,652 ) Goodwill (7,297 ) (7,259 ) Other (329 ) (221 ) Total deferred liabilities (32,607 ) (38,484 ) Net deferred tax assets (liabilities) $ 13,667 $ 14,400 As of December 31, 2019 , we have income tax net operating loss (“NOL”) carryforwards related to both our U.S. and foreign operations of approximately $443.6 million . In addition, we have research and development tax credit carryforwards of approximately $1.0 million . The ultimate utilization of the NOLs and research and development credits depend on the ability to generate sufficient taxable income in the appropriate tax jurisdiction. These tax attributes expire as follows (in thousands): Year of Expiration U.S. NOLs Foreign NOLs R&D Credits 2020 - 2024 $ — $ 11,598 $ — 2025 - 2029 — 8,084 — 2030 - 2038 196,550 — 1,016 Does not expire 174,623 52,746 — $ 371,173 $ 72,428 $ 1,016 The valuation allowance on our NOLs increased from $85.0 million to $130.0 million during 2019 as a result of accumulated tax losses in both the U.S. and various foreign tax jurisdictions. We evaluated all available evidence and determined that it is more likely than not that these losses will not be realized. It is our intention that all cash and earnings of our subsidiaries as of December 31, 2019 are permanently reinvested and will be used to meet operating cash flow needs. Existing plans do not demonstrate a need to repatriate foreign cash to fund parent company activity, however, should we determine that parent company funding is required, we estimate that any such cash needs may be met without adverse tax consequences. As of December 31, 2019 and 2018 , we had total gross uncertain tax positions of $0.3 million . Substantially all of the uncertain tax positions, if recognized in the future, would impact our effective tax rate. We have elected to classify interest and penalties incurred on income taxes as income tax expense. We file income tax returns in the U.S. and various international tax jurisdictions. As of 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 Commitments We are committed under various operating lease agreements primarily related to real estate, vehicles and certain equipment that expire at various dates throughout the next several years. Please see Note 2—Leases in these Notes to Consolidated Financial Statements for additional information. We also have purchase commitments related to inventory in the amount of $34.1 million at December 31, 2019. We enter into purchase commitments as needed. Contingencies We are the subject of lawsuits and claims arising in the ordinary course of business from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. We had no material accruals for loss contingencies, individually or in the aggregate, as of December 31, 2019 and December 31, 2018 . We believe the probability is remote that the ultimate outcome of these matters would have a material adverse effect on our financial position, results of operations or cash flows. We are conducting an internal investigation of the operations of certain of our foreign subsidiaries in West Africa including possible violations of the U.S. Foreign Corrupt Practices Act (“FCPA”), our policies and other applicable laws. In June 2016, we voluntarily disclosed the existence of our extensive internal review to the SEC, the U.S. Department of Justice (“DOJ”) and other governmental entities. It is our intent to continue to fully cooperate with these agencies and any other applicable authorities in connection with any further investigation that may be conducted in connection with this matter. While our review has not indicated that there has been any material impact on our previously filed financial statements, we have continued to collect information and cooperate with the authorities, but at this time are unable to predict the ultimate resolution of these matters with these agencies. As disclosed above, our investigation into possible violations of the FCPA remains ongoing, and we will continue to cooperate with the SEC, DOJ and other relevant governmental entities in connection therewith. At this time, we are unable to predict the ultimate resolution of these matters with these agencies, including any financial impact to us. Our board and management are committed to continuously enhancing our internal controls that support improved compliance and transparency throughout our global operations. |
Severance and Other Charges (Cr
Severance and Other Charges (Credits), net | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Severance and Other Charges (Credits), net | Severance and Other Charges (Credits), net We recognize severance and other charges for costs associated with workforce reductions, facility closures, exiting or reducing our footprint in certain countries, inventory impairment and the retirement of excess machinery and equipment based on economic utility. As a result of the downturn in the industry and its impact on our business outlook, we continue to take actions to adjust our operations and cost structure to reflect current and expected activity levels. Depending on future market conditions, further actions may be necessary to adjust our operations, which may result in additional charges. Our severance and other charges (credits), net are summarized below (in thousands): Year Ended December 31, 2019 2018 2017 Severance and other costs $ 9,744 $ 4,552 $ 2,697 Fixed asset impairments and retirements 32,916 — 6,454 Inventory impairments 4,471 — 51,181 Intangible asset impairments 3,299 — — Accounts receivable write-off (recovery) — (4,862 ) 15,022 $ 50,430 $ (310 ) $ 75,354 Severance and other costs : We incurred costs due to a continued effort to adjust our cost base, including reducing our workforce to meet the depressed demand in the industry. At December 31, 2019, our outstanding liability associated with our current program was approximately $5.8 million and included severance payments and other employee-related separation costs. Below is a reconciliation of our employee separation liability balance (in thousands): Tubular Running Services Tubulars Cementing Equipment Corporate Total Balance at December 31, 2018 $ — $ — $ — $ — $ — Additions for costs expensed 3,573 70 2,103 3,998 9,744 Severance and other payments (1,593 ) (51 ) (471 ) (1,762 ) (3,877 ) Other adjustments 20 — — (50 ) (30 ) Balance at December 31, 2019 $ 2,000 $ 19 $ 1,632 $ 2,186 $ 5,837 Fixed asset impairments and retirements : During the year ended December 31, 2017, we identified certain equipment that based on specifications and current market conditions no longer had economic utility and therefore had reached the end of its useful life, as well as abandoned capital projects. Accordingly, management decided to retire this equipment, which resulted in charges of $6.5 million . During the year ended December 31, 2019, we undertook a comprehensive business review in conjunction with a sharp decline in U.S. land activity. Through this review, we identified certain fixed assets, primarily construction in progress, that were not commercially viable given current market conditions. This resulted in an impairment charge of $ 32.9 million . Inventory impairments : During the year ended December 31, 2017, we determined the cost of our connector inventory exceeded its net realizable value, which resulted in a charge of $51.2 million . During the year ended December 31, 2019, certain inventories in our Tubular Running Services, Cementing Equipment and Tubulars segments were determined to have costs that exceeded their net realizable values, resulting in a charge of $4.5 million . Intangible asset impairments: During the year ended December 31, 2019, we identified certain intangible assets that no longer had commercial viability to the Company, resulting in an impairment charge of $3.3 million . Please see Note 1—Basis of Presentation and Significant Accounting Policies in these Notes to Consolidated Financial Statements for additional details. Accounts receivable write-off (recovery) : We have experienced payment delays from certain customers in Nigeria, Angola and Venezuela. During the fourth quarter of 2017 management decided to significantly reduce our footprint in Nigeria and Angola and temporarily cease operations in Venezuela, which we believe will diminish our ability to collect amounts owed. As a result, we wrote off trade accounts receivable of $15.0 million during the year ended December 31, 2017. In 2018, we recovered $4.9 million of previously written off receivables from a customer in Angola. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flows and non-cash transactions were as follows for the periods indicated (in thousands): Year Ended December 31, 2019 2018 2017 Cash paid for interest $ 1,005 $ 273 $ 296 Cash paid (received) for income taxes, net of refunds 13,330 1,848 (20,732 ) Non-cash transactions: Change in accruals related to purchases of property, plant and equipment and intangibles $ 781 $ 5,910 $ 5,761 Insurance premium financed by note payable — 6,798 5,125 Net transfers from inventory to property, plant and equipment 3,190 4,529 4,689 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Reporting Segments Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s CODM in deciding how to allocate resources and assess performance. During 2018, changes to the Company’s organizational structure were internally announced. These changes allow each segment to operate as an “independent” business in order to drive accountability and streamline decision-making, while leveraging the advantages of our global infrastructure. During the first quarter of 2019, the Company’s CODM changed the information he regularly reviews to allocate resources and assess performance and we accordingly realigned our reporting segments into three reportable segments: Tubular Running Services (“TRS”) segment, Tubulars segment and Cementing Equipment (“CE”) segment. The TRS segment represents the prior International Services and U.S. Services segments, as well as the costs associated with manufacturing the TRS equipment. Corporate costs that were previously included in the International Services and U.S. Services segments are now included in a separate Corporate component. The Tubulars segment represents the prior Tubular Sales segment and the Drilling Tools business which was previously included within the International Services and U.S. Services segments, less costs associated with TRS equipment manufacturing. The CE segment is comprised of the prior Blackhawk segment. In addition, regional support costs that were previously included in the International Services and U.S. Services segments are now allocated amongst the three current segments, generally based on revenue or headcount. We have revised our segment reporting to reflect our current management approach and recast prior periods to conform to the current segment presentation. The TRS segment provides tubular running services globally. Internationally, the TRS segment operates in the majority of the offshore oil and gas markets and also in several onshore regions with operations in approximately 50 countries on six continents. In the U.S., the TRS segment provides services in the active onshore oil and gas drilling regions, including the Permian Basin, Eagle Ford Shale, Haynesville Shale, Marcellus Shale and Utica Shale, and in the U.S. Gulf of Mexico. Our customers are primarily large exploration and production companies, including international oil and gas companies, national oil and gas companies, major independents and other oilfield service companies. The Tubulars segment designs, manufactures and distributes connectors and casing attachments for large outside diameter (“OD”) heavy wall pipe. Additionally, the Tubulars segment sells large OD pipe originally manufactured by various pipe mills, as plain end or fully fabricated with proprietary welded or thread-direct connector solutions and provides specialized fabrication and welding services in support of offshore deepwater projects, including drilling and production risers, flowlines and pipeline end terminations, as well as long-length tubular assemblies up to 400 feet in length. The Tubulars segment also specializes in the development, manufacture and supply of proprietary drilling tool solutions that focus on improving drilling productivity through eliminating or mitigating traditional drilling operational risks. The CE segment provides specialty equipment to enhance the safety and efficiency of rig operations. It provides specialized equipment, services and products utilized in the construction, completion and abandonment of the wellbore in both onshore and offshore environments. The product portfolio includes casing accessories that serve to improve the installation of casing, centralization and wellbore zonal isolation, as well as enhance cementing operations through advance wiper plug and float equipment technology. Abandonment solutions are primarily used to isolate portions of the wellbore through the setting of barriers downhole to allow for rig evacuation in case of inclement weather, maintenance work on other rig equipment, squeeze cementing, pressure testing within the wellbore, hydraulic fracturing and temporary and permanent abandonments. These offerings improve operational efficiencies and limit non-productive time if unscheduled events are encountered at the wellsite. Revenue We disaggregate our revenue from contracts with customers by geography for each of our segments, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Intersegment revenue is immaterial. The following tables presents our revenue disaggregated by geography, based on the location where our services were provided and products sold (in thousands): Year Ended December 31, 2019 Tubular Running Services Tubulars Cementing Equipment Consolidated United States $ 147,547 $ 63,087 $ 82,538 $ 293,172 International 252,780 11,600 22,368 286,748 Total Revenue $ 400,327 $ 74,687 $ 104,906 $ 579,920 Year Ended December 31, 2018 Tubular Running Services Tubulars Cementing Equipment Consolidated United States $ 142,262 $ 66,017 $ 72,316 $ 280,595 International 218,783 6,286 16,829 241,898 Total Revenue $ 361,045 $ 72,303 $ 89,145 $ 522,493 Year Ended December 31, 2017 Tubular Running Services Tubulars Cementing Equipment Consolidated United States $ 116,795 $ 57,882 $ 70,007 $ 244,684 International 203,583 5,511 1,017 210,111 Total Revenue $ 320,378 $ 63,393 $ 71,024 $ 454,795 Revenue by geographic area was as follows (in thousands): Year Ended December 31, 2019 2018 2017 United States $ 293,172 $ 280,595 $ 244,684 Europe/Middle East/Africa 155,278 127,968 132,768 Latin America 72,720 46,553 33,131 Asia Pacific 35,909 35,327 26,109 Other countries 22,841 32,050 18,103 Total Revenue $ 579,920 $ 522,493 $ 454,795 We are a Netherlands based company and we derive our revenue from services and product sales to clients primarily in the oil and gas industry. No single customer accounted for more than 10% of our revenue for the years ended December 31, 2019 and 2018 . For the year ended December 31, 2017 , one customer accounted for 10% of our revenue and all three of our segments generated revenue from this customer. The revenue generated in the Netherlands was immaterial for the years ended December 31, 2019 , 2018 and 2017 . Other than the United States, no individual country represented more than 10% of our revenue for the years ended December 31, 2019 , 2018 and 2017 . Adjusted EBITDA We define Adjusted EBITDA as net income (loss) before interest income, net, depreciation and amortization, income tax benefit or expense, asset impairments, gain or loss on disposal of assets, foreign currency gain or loss, equity-based compensation, unrealized and realized gain or loss, the effects of the TRA, other non-cash adjustments and other charges or credits. We review Adjusted EBITDA on both a consolidated basis and on a segment basis. We use Adjusted EBITDA to assess our financial performance because it allows us to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization), income tax, foreign currency exchange rates and other charges and credits. Adjusted EBITDA has limitations as an analytical tool and should not be considered as an alternative to net income (loss), operating income (loss), cash flow from operating activities or any other measure of financial performance presented in accordance with GAAP. Our CODM uses Adjusted EBITDA as the primary measure of segment reporting performance. The following table presents a reconciliation of Segment Adjusted EBITDA to net loss (in thousands): Year Ended December 31, 2019 2018 2017 Segment Adjusted EBITDA: Tubular Running Services $ 85,601 $ 62,515 $ 39,586 Tubulars 11,575 11,246 3,602 Cementing Equipment 14,089 8,617 6,421 Corporate (1) (53,744 ) (49,146 ) (43,894 ) Total 57,521 33,232 5,715 Goodwill impairment (111,108 ) — — Severance and other (charges) credits, net (50,430 ) 310 (75,354 ) Interest income, net 2,265 4,243 2,309 Income tax benefit (expense) (23,794 ) 2,950 (72,918 ) Depreciation and amortization (92,800 ) (111,292 ) (122,102 ) Gain (loss) on disposal of assets (1,037 ) 1,309 2,045 Foreign currency gain (loss) (2,233 ) (5,675 ) 2,075 TRA related adjustments (2) 220 (1,359 ) 122,515 Charges and credits (3) (13,933 ) (14,451 ) (23,742 ) Net loss $ (235,329 ) $ (90,733 ) $ (159,457 ) (1) Includes certain expenses not attributable to a particular segment, such as costs related to support functions and corporate executives. (2) Please see Note 12—Related Party Transactions for further discussion. (3) Comprised of Equity-based compensation expense ( 2019 : $11,280 ; 2018 : $10,621 ; 2017 : $13,862 ), Mergers and acquisition expense ( 2019 : none ; 2018 : $58 ; 2017 : $459 ), Unrealized and realized gains (losses) ( 2019 : $228 ; 2018 : $1,682 ; 2017 : $(2,791) ), Investigation-related matters ( 2019 : $3,838 ; 2018 : $5,454 ; 2017 : $ 6,143 ) and Other adjustments ( 2019 : $957 ; 2018 : none ; 2017 : $(487) ). The following table sets forth certain financial information with respect to our reportable segments (in thousands): Tubular Running Services Tubulars Cementing Equipment Corporate Total Year Ended December 31, 2019 Revenue from external customers $ 400,327 $ 74,687 $ 104,906 $ — $ 579,920 Operating income (loss) (3,900 ) 7,344 (124,597 ) (91,737 ) (212,890 ) Adjusted EBITDA 85,601 11,575 14,089 (53,744 ) * Depreciation and amortization 61,036 2,903 16,130 12,731 92,800 Purchases of property, plant and equipment and intangibles 16,086 2,859 16,374 1,623 36,942 Year Ended December 31, 2018 Revenue from external customers $ 361,045 $ 72,303 $ 89,145 $ — $ 522,493 Operating income (loss) (16,886 ) 7,616 (9,313 ) (74,298 ) (92,881 ) Adjusted EBITDA 62,515 11,246 8,617 (49,146 ) * Depreciation and amortization 80,009 3,371 16,324 11,588 111,292 Purchases of property, plant and equipment and intangibles 7,824 1,838 7,583 39,226 56,471 Year Ended December 31, 2017 Revenue from external customers $ 320,378 $ 63,393 $ 71,024 $ — $ 454,795 Operating loss (72,524 ) (49,902 ) (19,571 ) (72,745 ) (214,742 ) Adjusted EBITDA 39,586 3,602 6,421 (43,894 ) * Depreciation and amortization 84,219 3,557 22,739 11,587 122,102 Purchases of property, plant and equipment and intangibles 14,437 362 4,885 2,306 21,990 * Non-GAAP financial measure not disclosed. The CODM does not review total assets by segment as part of their review of segment results. The following table presents property, plant and equipment (“PP&E”) by segment. December 31, 2019 2018 Long-Lived Assets (PP&E) Tubular Running Services $ 132,626 $ 202,874 Tubulars 15,162 12,921 Cementing Equipment 34,184 27,509 Corporate and shared assets 146,460 173,186 Total $ 328,432 $ 416,490 December 31, 2019 2018 Long-Lived Assets (PP&E) United States $ 207,227 $ 272,476 International 121,205 144,014 $ 328,432 $ 416,490 Based on the unique nature of our operating structure, revenue generating assets are interchangeable between two categories: (i) offshore and (ii) onshore. In addition, some of the U.S. land onshore assets cannot be deployed into offshore markets, based upon certification. Such equipment does have application in certain international land markets. Long-lived assets in the Netherlands were insignificant in each of the years presented. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Summarized quarterly financial data for the years ended December 31, 2019 and 2018 is set forth below (in thousands, except per share data). First Second Third Fourth Quarter Quarter Quarter Quarter Total 2019 Revenue $ 144,408 $ 155,654 $ 140,417 $ 139,441 $ 579,920 Gross profit (1) 19,102 25,062 20,825 16,357 81,346 Operating loss (2) (20,294 ) (12,514 ) (14,803 ) (165,279 ) (212,890 ) Net loss (28,287 ) (15,160 ) (23,789 ) (168,093 ) (235,329 ) Loss per common share: (3) Basic and diluted $ (0.13 ) $ (0.07 ) $ (0.11 ) $ (0.75 ) $ (1.05 ) 2018 Revenue $ 115,569 $ 132,085 $ 128,986 $ 145,853 $ 522,493 Gross profit (1) 2,262 13,766 12,594 17,174 45,796 Operating loss (34,907 ) (23,782 ) (13,591 ) (20,601 ) (92,881 ) Net loss (42,073 ) (25,763 ) (6,999 ) (15,898 ) (90,733 ) Loss per common share: (3) Basic and diluted $ (0.19 ) $ (0.12 ) $ (0.03 ) $ (0.07 ) $ (0.41 ) (1) Gross profit is defined as total revenue less cost of revenue less depreciation and amortization attributed to cost of revenue. (2) Fourth quarter 2019 includes a goodwill impairment charge of $111.1 million , fixed asset impairment charges of $28.8 million , inventory impairments of $4.2 million and intangible asset impairments of $3.3 million . Please see Note 1—Basis of Presentation and Significant Accounting Policies and Note 18—Severance and Other Charges (Credits), net for additional details. (3) The sum of the individual quarterly income (losses) per share amounts may not agree with year-to-date net income (loss) per common share as each quarterly computation is based on the weighted average number of common shares outstanding during that period. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Account | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | FRANK’S INTERNATIONAL N.V. Schedule II - Valuation and Qualifying Accounts (In thousands) Balance at Beginning of Period Additions / Charged to Expense Deductions Other Balance at End of Period Year Ended December 31, 2019 Allowance for doubtful accounts $ 3,925 $ 2,047 $ (843 ) $ — $ 5,129 Allowance for excess and obsolete inventory 22,624 1,677 (5,839 ) 310 18,772 Allowance for deferred tax assets 84,972 45,038 — — 130,010 Year Ended December 31, 2018 Allowance for doubtful accounts $ 4,777 $ 348 $ (1,200 ) $ — $ 3,925 Allowance for excess and obsolete inventory 21,584 1,800 (760 ) — 22,624 Allowance for deferred tax assets 60,524 24,448 — — 84,972 Year Ended December 31, 2017 Allowance for doubtful accounts $ 14,337 $ 346 $ (9,725 ) $ (181 ) $ 4,777 Allowance for excess and obsolete inventory 4,626 19,727 (2,769 ) — 21,584 Allowance for deferred tax assets 5,442 56,207 (1,125 ) — 60,524 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of FINV for the years ended December 31, 2019 , 2018 and 2017 include the activities of Frank’s International C.V. (“FICV”), Blackhawk Group Holdings, LLC (“Blackhawk”) and their wholly owned subsidiaries (collectively, “Company,” “we,” “us” and “our”). All intercompany accounts and transactions have been eliminated for purposes of preparing these consolidated financial statements. Our accompanying consolidated financial statements and related financial information have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). In the opinion of management, these consolidated financial statements reflect all adjustments consisting solely of normal accruals that are necessary for the fair presentation of financial results as of and for the periods presented. The consolidated financial statements have been prepared on a historical cost basis using the United States dollar as the reporting currency. Our functional currency is primarily the United States dollar. |
Reclassifications | Reclassifications Certain prior-year amounts have been reclassified to conform to the current year’s presentation. These reclassifications had no impact on our net income (loss), working capital, cash flows or total equity previously reported. |
Accounting Estimates | Accounting Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. |
Accounts Receivable | Accounts Receivable We establish an allowance for doubtful accounts based on various factors including historical experience, the current aging status of our customer accounts, the financial condition of our customers and the business and political environment in which our customers operate. Provisions for doubtful accounts are recorded when it becomes probable that customer accounts are uncollectible. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash We consider all highly liquid financial instruments purchased with an original maturity of three months or less to be cash equivalents. Throughout the year, we have cash balances in excess of federally insured limits deposited with various financial institutions. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk on cash and cash equivalents. Restricted cash consists of cash deposits that collateralize our credit card program. |
Cash Surrender Value of Life Insurance Policies | Cash Surrender Value of Life Insurance Policies |
Comprehensive Income | Comprehensive Income Accounting standards on reporting comprehensive income require that certain items, including foreign currency translation adjustments be presented as components of comprehensive income. The cumulative amounts recognized by us under these standards are reflected in the consolidated balance sheet as accumulated other comprehensive loss, a component of stockholders’ equity. |
Contingencies | Contingencies Certain conditions may exist as of the date our consolidated financial statements are issued that may result in a loss to us, but which will only be resolved when one or more future events occur or fail to occur. Our management, with input from legal counsel, assesses such contingent liabilities, and such assessment inherently involves an exercise in judgment. In assessing loss contingencies related to legal proceedings pending against us or unasserted claims that may result in proceedings, our management, with input from legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates it is probable a material loss has been incurred and the amount of liability can be estimated, then the estimated liability would be accrued in our consolidated financial statements. If the assessment indicates a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. |
Derivative Financial Instruments | Derivative Financial Instruments When we deem appropriate, we use foreign currency forward derivative contracts to mitigate the risk of fluctuations in foreign currency exchange rates. We use these instruments to mitigate our exposure to non-local currency working capital. We do not hold or issue financial instruments for trading or other speculative purposes. We account for our derivative activities under the provisions of accounting guidance for derivatives and hedging. Derivatives are recognized on the consolidated balance sheet at fair value. Although the derivative contracts will serve as an economic hedge of the cash flow of our currency exchange risk exposure, they are not formally designated as hedge contracts for hedge accounting treatment. Accordingly, any changes in the fair value of the derivative instruments during a period will be included in our consolidated statements of operations. |
Income (Loss) Per Share | Income (Loss) Per Share Basic income (loss) per share excludes dilution and is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution that could occur if securities to issue common stock were exercised or converted to common stock. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Foreign Currency Translations and Transactions | Foreign Currency Translations and Transactions Results of operations for foreign subsidiaries with functional currencies other than the U.S. dollar are translated using average exchange rates during the period. Assets and liabilities of these foreign subsidiaries are translated using the exchange rates in effect at the balance sheet dates. Gains and losses resulting from these translations are included in accumulated other comprehensive loss within stockholders’ equity. For those foreign subsidiaries that have designated the U.S. dollar as the functional currency, gains and losses resulting from balance sheet remeasurement of foreign operations are included in the consolidated statements of operations as incurred. Gains and losses resulting from transactions denominated in a foreign currency are also included in the consolidated statements of operations as incurred. |
Goodwill | Goodwill Goodwill is not subject to amortization and is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. A qualitative assessment is allowed to determine if goodwill is potentially impaired. We have the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. The qualitative assessment determines whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If it is more likely than not that the fair value of the reporting unit is less than the carrying amount, then a quantitative impairment test is performed. The quantitative goodwill impairment test is used to identify both the existence of impairment and the amount of impairment loss. The test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded based on that difference. We complete our assessment of goodwill impairment as of October 31 each year. As of October 31, 2019, we performed a quantitative goodwill impairment test for our Cementing Equipment reporting unit. During the fourth quarter of 2019, market factors indicated a downturn in the demand for our Cementing Equipment products and services in the U.S. land market and a slower uptake of our service offering in international markets, and we reduced our management forecast for this reporting unit accordingly. Based on this refined outlook, the quantitative goodwill impairment test indicated that the fair value of the Cementing Equipment reporting unit was less than its carrying value. As a result, during the fourth quarter of 2019 we recorded a $111.1 million impairment charge to goodwill, which is included in goodwill impairment on the consolidated statements of operations. We used the income approach to estimate the fair value of the Cementing Equipment reporting unit, but also considered the market approach to validate the results. The income approach estimates the fair value by discounting the reporting unit’s estimated future cash flows using an estimated discount rate, or expected return, that a marketplace participant would have required as of the valuation date. The market approach includes the use of comparative multiples to corroborate the discounted cash flow results and involves significant judgment in the selection of the appropriate peer group companies and valuation multiples. The inputs used in the determination of fair value are generally level 3 inputs. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Income Taxes | Income Taxes We operate under many legal forms in approximately 50 countries. As a result, we are subject to many U.S. and foreign tax jurisdictions and many tax agreements and treaties among the various taxing authorities. Our operations in these different jurisdictions are taxed on various bases such as income before taxes, deemed profits (which is generally determined using a percentage of revenue rather than profits), and withholding taxes based on revenue. Determination of taxable income in any jurisdiction requires the interpretation of the related tax laws and regulations and the use of estimates and assumptions regarding significant future events. Changes in tax laws, regulations, agreements and treaties, foreign currency exchange restrictions, or our level of operations or profitability in each taxing jurisdiction could have an impact upon the amount of income taxes that we provide during any given year. We provide for income tax expense based on the liability method of accounting for income taxes based on the authoritative accounting guidance. Deferred tax assets and liabilities are recorded based upon temporary differences between the tax basis of assets and liabilities and their carrying values for financial reporting purposes, and are measured using the tax rates and laws expected to be in effect when the differences are projected to reverse. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. In determining the need for valuation allowances, we have made judgments and estimates regarding future taxable income. These estimates and judgments include some degree of uncertainty, and changes in these estimates and assumptions could require us to adjust the valuation allowances for our deferred tax assets. The ultimate realization of the deferred tax assets depends on the generation of sufficient taxable income in the applicable taxing jurisdictions. Deferred tax expense or benefit is the result of changes in deferred tax assets and liabilities and associated valuation allowances during the period. The impact of an uncertain tax position taken or expected to be taken on an income tax return is recognized in the financial statements at the largest amount that is more likely than not to be sustained upon examination by the relevant taxing authority. |
Intangible Assets | Intangible Assets Identifiable intangible assets are amortized using the straight-line method over the estimated useful lives of the assets. We evaluate impairment of our intangible assets on an asset group basis whenever circumstances indicate that the carrying value may not be recoverable. Intangible assets deemed to be impaired are written down to their fair value using a discounted cash flow model and, if available, comparable market values. |
Inventories | Inventories |
Leases | Leases We have operating leases for real estate, vehicles and certain equipment. At the present time, all of our leases are classified as operating leases. Operating lease expense is recognized on a straight-line basis over the lease term. The accounting for some of our leases may require significant judgment, which includes determining the incremental borrowing rates to utilize in our net present value calculation of lease payments for lease agreements which do not provide an implicit rate, and assessing the likelihood of renewal or termination options. We do not separate lease and non-lease components for all classes of leased assets. Also, leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Expenditures for significant improvements and betterments are capitalized when they enhance or extend the useful life of the asset and meet a minimum capitalization threshold. Expenditures for routine repairs and maintenance, which do not improve or extend the life of the related assets, are expensed when incurred. When properties or equipment are sold, retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the books and the resulting gain or loss is recognized on the consolidated statements of operations. |
Revenue Recognition | Revenue Recognition Revenue is recognized 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. Payment terms on services and products generally range from 30 days to 120 days. Given the short-term nature of our service and product offerings, our contracts do not have a significant financing component and the consideration we receive is generally fixed. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Because our contracts with customers are short-term in nature and fall within this exemption, we do not have significant unsatisfied performance obligations. Service revenue is recognized over time as services are performed or rendered. Rates for services are typically priced on a per day, per man-hour or similar basis. We generally perform services either under direct service purchase orders or master service agreements which are supplemented by individual call-out provisions. For customers contracted under such arrangements, an accrual is recorded in unbilled revenue for revenue earned but not yet invoiced. Revenue on product sales is generally recognized at a point in time when the product has shipped and significant risks of ownership have passed to the customer. The sales arrangements typically do not include a right of return or other similar provisions, nor do they contain any other post-delivery obligations. Some of our Tubulars segment and Cementing Equipment segment customers have requested that we store pipe, connectors and cementing products purchased from us in our facilities. We recognize revenue for these “bill and hold” sales once the following criteria have been met: (1) there is a substantive reason for the arrangement, (2) the product is identified as the customer’s asset, (3) the product is ready for delivery to the customer, and (4) we cannot use the product or direct it to another customer. |
Short-Term Investments | Short‑term investments Short‑term investments consisted of commercial paper, classified as held-to-maturity and a fund that primarily invests in short-term debt securities. These investments had original maturities of greater than three months but less than twelve months. |
Stock-Based Compensation | Stock-Based Compensation Our 2013 Long-Term Incentive Plan provides for the granting of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance restricted stock units (“PRSUs”), dividend equivalent rights and other types of equity and cash incentive awards to employees, non-employee directors and service providers. Stock-based compensation expense is measured at the grant date of the share-based awards based on their value. Stock-based compensation expense is recognized on a straight-line basis over the vesting period and is included in cost of revenue and G&A expenses in the consolidated statements of operations. Our stock-based compensation currently consists of RSUs and PRSUs. The grant date fair value of the RSUs, which are not entitled to receive dividends until vested, is measured by reducing the share price at that date by the present value of the dividends expected to be paid during the requisite vesting period, discounted at the appropriate risk-free interest rate. The grant date fair value and compensation expense of PRSU grants is estimated based on a Monte Carlo simulation using the Company’s closing stock price as of the day before the grant date. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification. We consider the applicability and impact of all accounting pronouncements. ASUs not listed below were assessed and were either determined to be not applicable or are expected to have immaterial impact on our consolidated financial position, results of operations and cash flows. In June 2018, the FASB issued new guidance which is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with the accounting for employee share-based compensation. We adopted the guidance on January 1, 2019 and the adoption did not have a material impact on our consolidated financial statements. In June 2016, the FASB issued new accounting guidance for credit losses on financial instruments. The guidance includes the replacement of the “incurred loss” approach for recognizing credit losses on financial assets, including trade receivables, with a methodology that reflects expected credit losses, which considers historical and current information as well as reasonable and supportable forecasts. For public entities, the guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We adopted the guidance on January 1, 2020 and the adoption did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued new accounting guidance for leases. The main objective of the accounting guidance is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous GAAP and the new guidance is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. The new guidance requires lessees to recognize assets and liabilities arising from leases on the balance sheet and further defines a lease as a contract that conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Control over the use of the identified asset means that the customer has both (1) the right to obtain substantially all of the economic benefit from the use of the asset and (2) the right to direct the use of the asset. The accounting guidance requires disclosures by both lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We adopted the new lease standard effective January 1, 2019, using the modified retrospective approach. The modified retrospective approach provides a method for recording existing leases at adoption, including not restating comparative periods. In our financial statements, the comparative period continues to be reported under the accounting standards which were in effect for that period. Adoption of the new standard resulted in recording lease assets of $34.9 million , lease liabilities of $34.4 million and an adjustment to retained earnings of $0.7 million as of January 1, 2019. The standard had no impact on our net income (loss) and cash flows. We elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to carry forward the historical lease classification. In addition, we elected not to separate lease and non-lease components for all classes of leased assets. Also, leases with an initial term of 12 months or less are not recorded on the balance sheet. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Reclassifications to Previously Reported Amounts | The following is a summary of reclassifications to previously reported amounts (in thousands): Year Ended December 31, 2018 As previously reported Reclassifications As currently reported Consolidated Statements of Operations Cost of revenue, exclusive of depreciation and amortization Services $ 265,688 $ 37,192 $ 302,880 Products 84,429 (8,246 ) 76,183 General and administrative expenses 155,584 (28,946 ) 126,638 Year Ended December 31, 2017 As previously reported Reclassifications As currently reported Consolidated Statements of Operations Cost of revenue, exclusive of depreciation and amortization Services $ 223,222 $ 49,978 $ 273,200 Products 87,200 (15,492 ) 71,708 General and administrative expenses 163,704 (34,486 ) 129,218 |
Restrictions on Cash and Cash Equivalents | Amounts reported in the consolidated balance sheets and consolidated statements of cash flows as cash, cash equivalents and restricted cash at December 31, 2019 and December 31, 2018 were as follows (in thousands): December 31, December 31, 2019 2018 Cash and cash equivalents $ 195,383 $ 186,212 Restricted cash 1,357 — Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 196,740 $ 186,212 |
Schedule of Cash and Cash Equivalents | Amounts reported in the consolidated balance sheets and consolidated statements of cash flows as cash, cash equivalents and restricted cash at December 31, 2019 and December 31, 2018 were as follows (in thousands): December 31, December 31, 2019 2018 Cash and cash equivalents $ 195,383 $ 186,212 Restricted cash 1,357 — Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 196,740 $ 186,212 |
Schedule of Intangible Assets | The following table provides information related to our intangible assets as of December 31, 2019 and 2018 (in thousands): December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Total Gross Carrying Amount Accumulated Amortization Total Customer relationships $ 32,890 $ (23,946 ) $ 8,944 $ 39,050 $ (23,688 ) $ 15,362 Trade name 11,408 (11,408 ) — 11,407 (9,203 ) 2,204 Intellectual property 14,029 (6,002 ) 8,027 17,889 (4,386 ) 13,503 Non-compete agreement 1,160 (1,160 ) — 1,160 (1,160 ) — Total intangible assets $ 59,487 $ (42,516 ) $ 16,971 $ 69,506 $ (38,437 ) $ 31,069 |
Intangible Assets Amortization Expense | As of December 31, 2019 , estimated amortization expense for our remaining intangible assets for each of the next five years was as follows (in thousands): Period Amount 2020 $ 6,895 2021 5,838 2022 708 2023 696 2024 635 Thereafter 2,199 Total $ 16,971 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Assets and Liabilities | Leases (in thousands) Classification December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 32,585 Liabilities Current Operating Current portion of operating lease liabilities 7,925 Noncurrent Operating Non-current operating lease liabilities 24,969 Total lease liabilities $ 32,894 |
Schedule of Lease Cost and Other Information | Year Ended Long-term Lease Cost (in thousands) December 31, 2019 Operating lease cost (a) $ 11,674 Sublease income $ (533 ) (a) Includes variable lease costs, which are immaterial. Year Ended Other Information (in thousands) December 31, 2019 Cash paid for amounts included in measurement of lease liabilities Operating cash flows from operating leases $ 10,750 Right-of-use assets obtained in an exchange for lease obligations Operating leases $ 7,393 Lease Term and Discount Rate December 31, 2019 Weighted average remaining lease term (years) Operating leases 6.06 Weighted average discount rate Operating leases 10.47% |
Schedule of Maturity of Lease Liabilities | Maturity of Operating Lease Liabilities (in thousands) December 31, 2019 2020 $ 10,239 2021 8,972 2022 6,948 2023 4,424 2024 2,794 Thereafter 10,503 Total lease payments 43,880 Less: interest 10,986 Present value of lease liabilities $ 32,894 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease commitments under noncancelable operating leases with initial or remaining terms of one year or more at December 31, 2018 , were as follows (in thousands): Year Ending December 31, Amount 2019 $ 10,544 2020 9,120 2021 7,370 2022 6,006 2023 4,251 Thereafter 13,103 Total future lease commitments $ 50,394 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable at December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 2018 Trade accounts receivable, net of allowance of $5,129 and $3,925, respectively $ 101,718 $ 114,630 Unbilled receivables 43,422 54,591 Taxes receivable 18,516 15,762 Affiliated (1) 549 549 Other receivables 2,489 3,882 Total accounts receivable, net $ 166,694 $ 189,414 (1) Amounts represent expenditures on behalf of non-consolidated affiliates. |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories at December 31, 2019 and 2018 were as follows (in thousands): December 31, 2019 2018 Pipe and connectors, net of allowance of $18,287 and $21,270, respectively $ 21,779 $ 18,026 Finished goods, net of allowance of $485 and $1,354, respectively 25,628 22,608 Work in progress 3,663 8,285 Raw materials, components and supplies 27,759 20,463 Total inventories, net $ 78,829 $ 69,382 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following is a summary of property, plant and equipment at December 31, 2019 and 2018 (in thousands): December 31, Estimated Useful Lives in Years 2019 2018 Land — $ 30,724 $ 32,945 Land improvements 8-15 7,193 8,316 Buildings and improvements 13-39 116,182 125,088 Rental machinery and equipment 7 882,979 887,064 Machinery and equipment - other 7 60,182 61,796 Furniture, fixtures and computers 5 17,251 24,745 Automobiles and other vehicles 5 28,734 29,696 Leasehold improvements 7-15, or lease term if shorter 14,258 15,392 Construction in progress - machinery and equipment and buildings — 46,564 65,152 1,204,067 1,250,194 Less: Accumulated depreciation (875,635 ) (833,704 ) Total property, plant and equipment, net $ 328,432 $ 416,490 |
Summary of Depreciation and Amortization | The following table presents the depreciation and amortization associated with each line for the years ended December 31, 2019 , 2018 and 2017 (in thousands): December 31, 2019 2018 2017 Cost of revenue Services $ 80,072 $ 93,280 $ 102,212 Products 1,511 4,354 4,971 General and administrative expenses 11,217 13,658 14,919 Total $ 92,800 $ 111,292 $ 122,102 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets at December 31, 2019 and 2018 consisted of the following (in thousands): December 31, 2019 2018 Cash surrender value of life insurance policies (1) $ 27,313 $ 23,784 Deposits 2,119 2,269 Other 3,805 2,566 Total other assets $ 33,237 $ 28,619 (1) See Note 10—Fair Value Measurements for additional information. |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities at December 31, 2019 and 2018 consisted of the following (in thousands): December 31, 2019 2018 Accounts payable $ 16,793 $ 28,045 Accrued compensation 23,988 30,822 Accrued property and other taxes 20,099 16,301 Accrued severance and other charges 5,837 2,328 Income taxes 19,166 12,075 Affiliated (1) 1,694 3,915 Accrued purchase orders and other 32,744 30,495 Total accounts payable and accrued liabilities $ 120,321 $ 123,981 (1) Represents amounts owed to non-consolidated affiliates. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities | A summary of financial assets and liabilities that are measured at fair value on a recurring basis, as of December 31, 2019 and 2018 , were as follows (in thousands): Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total December 31, 2019 Assets: Investments: Cash surrender value of life insurance policies - deferred compensation plan $ — $ 27,313 $ — $ 27,313 Marketable securities - other 8 — — 8 Liabilities: Derivative financial instruments — 324 — 324 Deferred compensation plan — 23,251 — 23,251 December 31, 2018 Assets: Investments: Cash surrender value of life insurance policies - deferred compensation plan $ — $ 23,784 $ — $ 23,784 Marketable securities - other 37 — — 37 Liabilities: Derivative financial instruments — 101 — 101 Deferred compensation plan — 23,663 — 23,663 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Currency Derivative Contracts | As of December 31, 2019 and 2018 , we had the following foreign currency derivative contracts outstanding in U.S. dollars (in thousands): December 31, 2019 Notional Contractual Settlement Derivative Contracts Amount Exchange Rate Date Canadian dollar $ 948 1.3182 3/16/2020 Euro 9,279 1.1180 3/17/2020 Norwegian krone 11,027 9.0688 3/17/2020 Pound sterling 16,057 1.3381 3/17/2020 December 31, 2018 Notional Contractual Settlement Derivative Contracts Amount Exchange Rate Date Canadian dollar $ 2,248 1.3343 3/18/2019 Euro 6,967 1.1421 3/18/2019 Norwegian krone 7,713 8.5566 3/18/2019 Pound sterling 16,452 1.2655 3/18/2019 |
Schedule of Fair Value by Balance Sheet Location | The following table summarizes the location and fair value amounts of all derivative contracts in the consolidated balance sheets as of December 31, 2019 and 2018 (in thousands): Derivatives not designated as Hedging Instruments Consolidated Balance Sheet Location December 31, 2019 December 31, 2018 Foreign currency contracts Accounts payable and accrued liabilities $ (324 ) $ (101 ) |
Impact of Derivative Instruments on the Income Statement | The following table summarize the location and amounts of the unrealized and realized gains and losses on derivative contracts in the consolidated statements of operations as of December 31, 2019 , 2018 and 2017 (in thousands): Derivatives not designated as Hedging Instruments Location of gain (loss) recognized in income on derivative contracts December 31, 2019 December 31, 2018 December 31, 2017 Unrealized gain (loss) on foreign currency contracts Other income, net $ (222 ) $ 386 $ (634 ) Realized gain (loss) on foreign currency contracts Other income, net 320 1,661 (1,699 ) Total net gain (loss) on foreign currency contracts $ 98 $ 2,047 $ (2,333 ) |
Offsetting Assets | The following table presents the gross and net fair values of our derivatives as of December 31, 2019 and 2018 (in thousands): Derivative Asset Positions Derivative Liability Positions December 31, December 31, 2019 2018 2019 2018 Gross position - asset / (liability) $ 127 $ 113 $ (451 ) $ (214 ) Netting adjustment (127 ) (113 ) 127 113 Net position - asset / (liability) $ — $ — $ (324 ) $ (101 ) |
Offsetting Liabilities | The following table presents the gross and net fair values of our derivatives as of December 31, 2019 and 2018 (in thousands): Derivative Asset Positions Derivative Liability Positions December 31, December 31, 2019 2018 2019 2018 Gross position - asset / (liability) $ 127 $ 113 $ (451 ) $ (214 ) Netting adjustment (127 ) (113 ) 127 113 Net position - asset / (liability) $ — $ — $ (324 ) $ (101 ) |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Loss Per Share, Basic and Diluted | The following table summarizes the basic and diluted loss per share calculations (in thousands, except per share amounts): Year Ended December 31, 2019 2018 2017 Numerator Net loss $ (235,329 ) $ (90,733 ) $ (159,457 ) Denominator Basic and diluted weighted average common shares (1) 225,159 223,999 222,940 Loss per common share: Basic and diluted $ (1.05 ) $ (0.41 ) $ (0.72 ) (1) Approximate number of shares of unvested restricted stock units and stock to be issued pursuant to the ESPP have been excluded from the computation of diluted loss per share as the effect would be anti-dilutive when the results from operations are at a net loss position. 737 922 648 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Non-Vested Restricted Stock Units | Non-vested RSUs outstanding as of December 31, 2019 and the changes during the year were as follows: Number of Weighted Average Non-vested at December 31, 2018 2,188,965 $ 7.66 Granted 1,756,125 6.49 Vested (1,138,654 ) 7.87 Forfeited (345,636 ) 6.81 Non-vested at December 31, 2019 2,460,800 $ 6.65 |
Schedule of Weighted Average Assumptions for PRSUs | The weighted average assumptions for the PRSUs granted in 2019 are as follows: 2019 Total expected term (in years) 2.86 Expected volatility 43.5% Risk-free interest rate 2.48% Correlation range 2.4% to 88.1% The weighted average assumptions for the PRSUs granted in 2017 are as follows: 2017 Expected term (in years) 2.92 Expected volatility 42.1% Risk-free interest rate 1.51% Correlation range 26.8% to 76.0% The weighted average assumptions for the PRSUs granted in 2018 are as follows: 2018 Expected term (in years) 2.86 Expected volatility 39.0% Risk-free interest rate 2.35% Correlation range 11.0% to 85.7% |
Schedule of Non-Vested PRSU's Outstanding | Non-vested PRSUs outstanding as of December 31, 2019 and the changes during the year were as follows: Number of Weighted Average Non-vested at December 31, 2018 593,987 $ 8.06 Granted 446,858 8.22 Forfeited (252,012 ) 7.96 Non-vested at December 31, 2019 788,833 $ 8.13 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Loss before income tax expense (benefit) was comprised of the following for the periods indicated (in thousands): Year Ended December 31, 2019 2018 2017 United States $ (225,653 ) $ (85,342 ) $ (167,908 ) Foreign 14,118 (8,341 ) 81,369 Loss before income tax expense (benefit) $ (211,535 ) $ (93,683 ) $ (86,539 ) Income taxes have been provided for based upon the tax laws and rates in the countries in which operations are conducted and income is earned. Components of income tax expense (benefit) consist of the following for the periods indicated (in thousands): Year Ended December 31, 2019 2018 2017 Current U.S. federal $ — $ — $ — U.S. state and local 209 7 (15 ) Foreign 21,975 11,677 10,516 Total current 22,184 11,684 10,501 Deferred U.S. federal 444 — 56,621 U.S. state and local — — 2,420 Foreign 1,166 (14,634 ) 3,376 Total deferred 1,610 (14,634 ) 62,417 Total income tax expense (benefit) $ 23,794 $ (2,950 ) $ 72,918 |
Schedule of Foreign Taxes Incurred | Foreign taxes were incurred in the following regions for the periods indicated (in thousands): Year Ended December 31, 2019 2018 2017 Latin America $ 8,636 $ 1,261 $ 5,469 West Africa 4,688 2,692 3,243 Middle East 5,579 2,249 1,633 Europe 1,096 461 1,348 Asia Pacific 1,525 922 1,388 Other 1,617 (10,542 ) 812 Total foreign income tax expense (benefit) $ 23,141 $ (2,957 ) $ 13,893 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the differences between the income tax provision computed at the 21% U.S. statutory rate in effect at December 31, 2019 and the reported provision for income taxes for the periods indicated is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Income tax expense (benefit) at statutory rate $ (44,422 ) $ (19,673 ) $ (30,289 ) Branch profits tax (12,129 ) (4,267 ) (4,871 ) State taxes, net of federal benefit 154 (27 ) 2,405 Restricted stock units tax shortfall 405 1,025 1,651 Taxes on foreign earnings at less than the U.S. statutory rate 14,427 13,095 (22,464 ) Effect of tax rate change — (2,929 ) 23,843 Effect of moving activity to higher tax rate jurisdiction — (14,620 ) — Management fee charged to international operations 3,455 1,515 1,213 Tax effect of TRA derecognition — — 46,874 Establishment of valuation allowances 37,802 22,892 51,911 Goodwill impairment 25,677 — — Return-to-provision adjustments (524 ) (521 ) 3,551 Foreign tax credit (5,707 ) — — Other 4,656 560 (906 ) Total income tax expense (benefit) $ 23,794 $ (2,950 ) $ 72,918 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities are as follows (in thousands): December 31, 2019 2018 Deferred tax assets Foreign net operating loss $ 17,121 $ 13,290 U.S. net operating loss 104,105 76,349 Research and development credit 1,016 609 Foreign tax credit carryover 422 — Intangibles 9,365 5,933 Inventory 2,280 2,350 Property and equipment 16,161 14,621 Investment in partnership 24,372 23,931 Other 1,442 773 Valuation allowance (130,010 ) (84,972 ) Total deferred tax assets 46,274 52,884 Deferred tax liabilities Investment in partnership (23,728 ) (27,352 ) Property and equipment (1,253 ) (3,652 ) Goodwill (7,297 ) (7,259 ) Other (329 ) (221 ) Total deferred liabilities (32,607 ) (38,484 ) Net deferred tax assets (liabilities) $ 13,667 $ 14,400 |
Summary of Operating Loss Carryforwards | The ultimate utilization of the NOLs and research and development credits depend on the ability to generate sufficient taxable income in the appropriate tax jurisdiction. These tax attributes expire as follows (in thousands): Year of Expiration U.S. NOLs Foreign NOLs R&D Credits 2020 - 2024 $ — $ 11,598 $ — 2025 - 2029 — 8,084 — 2030 - 2038 196,550 — 1,016 Does not expire 174,623 52,746 — $ 371,173 $ 72,428 $ 1,016 |
Summary of Tax Credit Carryforwards | The ultimate utilization of the NOLs and research and development credits depend on the ability to generate sufficient taxable income in the appropriate tax jurisdiction. These tax attributes expire as follows (in thousands): Year of Expiration U.S. NOLs Foreign NOLs R&D Credits 2020 - 2024 $ — $ 11,598 $ — 2025 - 2029 — 8,084 — 2030 - 2038 196,550 — 1,016 Does not expire 174,623 52,746 — $ 371,173 $ 72,428 $ 1,016 |
Severance and Other Charges (_2
Severance and Other Charges (Credits), net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Severance and Other Charges (Credits), net | Our severance and other charges (credits), net are summarized below (in thousands): Year Ended December 31, 2019 2018 2017 Severance and other costs $ 9,744 $ 4,552 $ 2,697 Fixed asset impairments and retirements 32,916 — 6,454 Inventory impairments 4,471 — 51,181 Intangible asset impairments 3,299 — — Accounts receivable write-off (recovery) — (4,862 ) 15,022 $ 50,430 $ (310 ) $ 75,354 |
Reconciliation of Employee Separation Liability | Below is a reconciliation of our employee separation liability balance (in thousands): Tubular Running Services Tubulars Cementing Equipment Corporate Total Balance at December 31, 2018 $ — $ — $ — $ — $ — Additions for costs expensed 3,573 70 2,103 3,998 9,744 Severance and other payments (1,593 ) (51 ) (471 ) (1,762 ) (3,877 ) Other adjustments 20 — — (50 ) (30 ) Balance at December 31, 2019 $ 2,000 $ 19 $ 1,632 $ 2,186 $ 5,837 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flows and non-cash transactions were as follows for the periods indicated (in thousands): Year Ended December 31, 2019 2018 2017 Cash paid for interest $ 1,005 $ 273 $ 296 Cash paid (received) for income taxes, net of refunds 13,330 1,848 (20,732 ) Non-cash transactions: Change in accruals related to purchases of property, plant and equipment and intangibles $ 781 $ 5,910 $ 5,761 Insurance premium financed by note payable — 6,798 5,125 Net transfers from inventory to property, plant and equipment 3,190 4,529 4,689 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue | The following tables presents our revenue disaggregated by geography, based on the location where our services were provided and products sold (in thousands): Year Ended December 31, 2019 Tubular Running Services Tubulars Cementing Equipment Consolidated United States $ 147,547 $ 63,087 $ 82,538 $ 293,172 International 252,780 11,600 22,368 286,748 Total Revenue $ 400,327 $ 74,687 $ 104,906 $ 579,920 Year Ended December 31, 2018 Tubular Running Services Tubulars Cementing Equipment Consolidated United States $ 142,262 $ 66,017 $ 72,316 $ 280,595 International 218,783 6,286 16,829 241,898 Total Revenue $ 361,045 $ 72,303 $ 89,145 $ 522,493 Year Ended December 31, 2017 Tubular Running Services Tubulars Cementing Equipment Consolidated United States $ 116,795 $ 57,882 $ 70,007 $ 244,684 International 203,583 5,511 1,017 210,111 Total Revenue $ 320,378 $ 63,393 $ 71,024 $ 454,795 Revenue by geographic area was as follows (in thousands): Year Ended December 31, 2019 2018 2017 United States $ 293,172 $ 280,595 $ 244,684 Europe/Middle East/Africa 155,278 127,968 132,768 Latin America 72,720 46,553 33,131 Asia Pacific 35,909 35,327 26,109 Other countries 22,841 32,050 18,103 Total Revenue $ 579,920 $ 522,493 $ 454,795 |
Reconciliation of Adjusted Earnings before Interest, Taxes, Depreciation, and Amortization from Segments to Consolidated | The following table presents a reconciliation of Segment Adjusted EBITDA to net loss (in thousands): Year Ended December 31, 2019 2018 2017 Segment Adjusted EBITDA: Tubular Running Services $ 85,601 $ 62,515 $ 39,586 Tubulars 11,575 11,246 3,602 Cementing Equipment 14,089 8,617 6,421 Corporate (1) (53,744 ) (49,146 ) (43,894 ) Total 57,521 33,232 5,715 Goodwill impairment (111,108 ) — — Severance and other (charges) credits, net (50,430 ) 310 (75,354 ) Interest income, net 2,265 4,243 2,309 Income tax benefit (expense) (23,794 ) 2,950 (72,918 ) Depreciation and amortization (92,800 ) (111,292 ) (122,102 ) Gain (loss) on disposal of assets (1,037 ) 1,309 2,045 Foreign currency gain (loss) (2,233 ) (5,675 ) 2,075 TRA related adjustments (2) 220 (1,359 ) 122,515 Charges and credits (3) (13,933 ) (14,451 ) (23,742 ) Net loss $ (235,329 ) $ (90,733 ) $ (159,457 ) (1) Includes certain expenses not attributable to a particular segment, such as costs related to support functions and corporate executives. (2) Please see Note 12—Related Party Transactions for further discussion. (3) Comprised of Equity-based compensation expense ( 2019 : $11,280 ; 2018 : $10,621 ; 2017 : $13,862 ), Mergers and acquisition expense ( 2019 : none ; 2018 : $58 ; 2017 : $459 ), Unrealized and realized gains (losses) ( 2019 : $228 ; 2018 : $1,682 ; 2017 : $(2,791) ), Investigation-related matters ( 2019 : $3,838 ; 2018 : $5,454 ; 2017 : $ 6,143 ) and Other adjustments ( 2019 : $957 ; 2018 : none ; 2017 : $(487) ). |
Schedule of Segment Reporting Information, by Segment | The following table presents property, plant and equipment (“PP&E”) by segment. December 31, 2019 2018 Long-Lived Assets (PP&E) Tubular Running Services $ 132,626 $ 202,874 Tubulars 15,162 12,921 Cementing Equipment 34,184 27,509 Corporate and shared assets 146,460 173,186 Total $ 328,432 $ 416,490 The following table sets forth certain financial information with respect to our reportable segments (in thousands): Tubular Running Services Tubulars Cementing Equipment Corporate Total Year Ended December 31, 2019 Revenue from external customers $ 400,327 $ 74,687 $ 104,906 $ — $ 579,920 Operating income (loss) (3,900 ) 7,344 (124,597 ) (91,737 ) (212,890 ) Adjusted EBITDA 85,601 11,575 14,089 (53,744 ) * Depreciation and amortization 61,036 2,903 16,130 12,731 92,800 Purchases of property, plant and equipment and intangibles 16,086 2,859 16,374 1,623 36,942 Year Ended December 31, 2018 Revenue from external customers $ 361,045 $ 72,303 $ 89,145 $ — $ 522,493 Operating income (loss) (16,886 ) 7,616 (9,313 ) (74,298 ) (92,881 ) Adjusted EBITDA 62,515 11,246 8,617 (49,146 ) * Depreciation and amortization 80,009 3,371 16,324 11,588 111,292 Purchases of property, plant and equipment and intangibles 7,824 1,838 7,583 39,226 56,471 Year Ended December 31, 2017 Revenue from external customers $ 320,378 $ 63,393 $ 71,024 $ — $ 454,795 Operating loss (72,524 ) (49,902 ) (19,571 ) (72,745 ) (214,742 ) Adjusted EBITDA 39,586 3,602 6,421 (43,894 ) * Depreciation and amortization 84,219 3,557 22,739 11,587 122,102 Purchases of property, plant and equipment and intangibles 14,437 362 4,885 2,306 21,990 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | December 31, 2019 2018 Long-Lived Assets (PP&E) United States $ 207,227 $ 272,476 International 121,205 144,014 $ 328,432 $ 416,490 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly financial data for the years ended December 31, 2019 and 2018 is set forth below (in thousands, except per share data). First Second Third Fourth Quarter Quarter Quarter Quarter Total 2019 Revenue $ 144,408 $ 155,654 $ 140,417 $ 139,441 $ 579,920 Gross profit (1) 19,102 25,062 20,825 16,357 81,346 Operating loss (2) (20,294 ) (12,514 ) (14,803 ) (165,279 ) (212,890 ) Net loss (28,287 ) (15,160 ) (23,789 ) (168,093 ) (235,329 ) Loss per common share: (3) Basic and diluted $ (0.13 ) $ (0.07 ) $ (0.11 ) $ (0.75 ) $ (1.05 ) 2018 Revenue $ 115,569 $ 132,085 $ 128,986 $ 145,853 $ 522,493 Gross profit (1) 2,262 13,766 12,594 17,174 45,796 Operating loss (34,907 ) (23,782 ) (13,591 ) (20,601 ) (92,881 ) Net loss (42,073 ) (25,763 ) (6,999 ) (15,898 ) (90,733 ) Loss per common share: (3) Basic and diluted $ (0.19 ) $ (0.12 ) $ (0.03 ) $ (0.07 ) $ (0.41 ) (1) Gross profit is defined as total revenue less cost of revenue less depreciation and amortization attributed to cost of revenue. (2) Fourth quarter 2019 includes a goodwill impairment charge of $111.1 million , fixed asset impairment charges of $28.8 million , inventory impairments of $4.2 million and intangible asset impairments of $3.3 million . Please see Note 1—Basis of Presentation and Significant Accounting Policies and Note 18—Severance and Other Charges (Credits), net for additional details. (3) The sum of the individual quarterly income (losses) per share amounts may not agree with year-to-date net income (loss) per common share as each quarterly computation is based on the weighted average number of common shares outstanding during that period. |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019USD ($)country | Dec. 31, 2019USD ($)country | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) | |
Accounting Policies [Line Items] | ||||||
Income (loss) on changes in the cash surrender value of life insurance policies | $ 2,700,000 | $ (1,200,000) | $ 2,400,000 | |||
Goodwill impairment | $ 111,100,000 | 111,108,000 | 0 | 0 | ||
Increase in goodwill impairment from 50 basis points increase In discount rate | 10,000,000 | 10,000,000 | ||||
Proceeds from sale of assets | 791,000 | 7,089,000 | 14,030,000 | |||
Goodwill | $ 99,932,000 | $ 99,932,000 | 211,040,000 | |||
Number of countries in which entity operates | country | 50 | 50 | ||||
Impairment of intangible assets, finite-lived | $ 3,300,000 | $ 3,299,000 | 0 | 0 | ||
Amortization expense for intangible assets | 10,800,000 | 10,800,000 | 11,400,000 | |||
Depreciation expense | 82,000,000 | $ 100,500,000 | $ 110,700,000 | |||
Operating lease assets | 32,585,000 | 32,585,000 | ||||
Operating lease, liability | 32,894,000 | 32,894,000 | ||||
Adjustment to retained earnings from adoption of new standard | $ (700,000) | $ 670,000 | ||||
Cementing Equipment | ||||||
Accounting Policies [Line Items] | ||||||
Goodwill | 81,200,000 | 81,200,000 | ||||
Tubular Running Services | ||||||
Accounting Policies [Line Items] | ||||||
Goodwill | $ 18,700,000 | $ 18,700,000 | ||||
Number of countries in which entity operates | country | 50 | 50 | ||||
Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Payment term | 30 days | |||||
Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Payment term | 120 days | |||||
Accounting Standards Update 2016-02 | ||||||
Accounting Policies [Line Items] | ||||||
Operating lease assets | 34,900,000 | |||||
Operating lease, liability | 34,400,000 | |||||
Retained Earnings (Deficit) | ||||||
Accounting Policies [Line Items] | ||||||
Adjustment to retained earnings from adoption of new standard | (700,000) | $ 670,000 | ||||
Retained Earnings (Deficit) | Accounting Standards Update 2016-02 | ||||||
Accounting Policies [Line Items] | ||||||
Adjustment to retained earnings from adoption of new standard | $ (700,000) | |||||
Measurement Input, Discount Rate | Fair Value, Inputs, Level 3 | ||||||
Accounting Policies [Line Items] | ||||||
Measurement input on discount rate assumption for goodwill impairment | 0.005 | 0.005 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Summary of Reclassifications to Previously Reported Amounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
General and administrative expenses | $ 120,444 | $ 126,638 | $ 129,218 |
As previously reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
General and administrative expenses | 155,584 | 163,704 | |
Reclassifications | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
General and administrative expenses | (28,946) | (34,486) | |
Services | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cost of revenue, exclusive of depreciation and amortization | 338,325 | 302,880 | 273,200 |
Services | As previously reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cost of revenue, exclusive of depreciation and amortization | 265,688 | 223,222 | |
Services | Reclassifications | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cost of revenue, exclusive of depreciation and amortization | 37,192 | 49,978 | |
Products | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cost of revenue, exclusive of depreciation and amortization | $ 78,666 | 76,183 | 71,708 |
Products | As previously reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cost of revenue, exclusive of depreciation and amortization | 84,429 | 87,200 | |
Products | Reclassifications | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cost of revenue, exclusive of depreciation and amortization | $ (8,246) | $ (15,492) |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 195,383 | $ 186,212 | ||
Restricted cash | 1,357 | 0 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 196,740 | $ 186,212 | $ 213,015 | $ 319,526 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 59,487 | $ 69,506 |
Accumulated Amortization | (42,516) | (38,437) |
Total | 16,971 | 31,069 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 32,890 | 39,050 |
Accumulated Amortization | (23,946) | (23,688) |
Total | 8,944 | 15,362 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,408 | 11,407 |
Accumulated Amortization | (11,408) | (9,203) |
Total | 0 | 2,204 |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 14,029 | 17,889 |
Accumulated Amortization | (6,002) | (4,386) |
Total | 8,027 | 13,503 |
Non-compete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,160 | 1,160 |
Accumulated Amortization | (1,160) | (1,160) |
Total | $ 0 | $ 0 |
Basis of Presentation and Sig_8
Basis of Presentation and Significant Accounting Policies - Schedule of Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
2020 | $ 6,895 | |
2021 | 5,838 | |
2022 | 708 | |
2023 | 696 | |
2024 | 635 | |
Thereafter | 2,199 | |
Total | $ 16,971 | $ 31,069 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Option term to extend lease (up to) | 10 years | ||
Option term to terminate lease (within) | 1 year | ||
Short-term lease expense | $ 3.6 | ||
Operating leases expense | $ 16.8 | $ 18.7 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 14 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Assets | |
Operating lease assets | $ 32,585 |
Current Liabilities | |
Operating | 7,925 |
Noncurrent Liabilities | |
Operating | 24,969 |
Total lease liabilities | $ 32,894 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 11,674 |
Sublease income | $ (533) |
Leases - Other Information (Det
Leases - Other Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 10,750 |
Right-of-use assets obtained in an exchange for lease obligations | $ 7,393 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Operating leases, weighted average remaining lease term | 6 years 21 days |
Operating leases, weighted average discount rate | 10.47% |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 10,239 |
2021 | 8,972 |
2022 | 6,948 |
2023 | 4,424 |
2024 | 2,794 |
Thereafter | 10,503 |
Total lease payments | 43,880 |
Less: interest | 10,986 |
Present value of lease liabilities | $ 32,894 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 10,544 |
2020 | 9,120 |
2021 | 7,370 |
2022 | 6,006 |
2023 | 4,251 |
Thereafter | 13,103 |
Total future lease commitments | $ 50,394 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) - USD ($) $ in Thousands | Dec. 18, 2018 | Dec. 31, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 |
Business Acquisition [Line Items] | |||||||||||
Proceeds from sale of assets | $ 791 | $ 7,089 | $ 14,030 | ||||||||
Buildings and improvements | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds from sale of assets | $ 300 | $ 200 | $ 2,600 | $ 800 | |||||||
Assets held-for-sale, net book value | 300 | ||||||||||
Assets held-for-sale, net book value | $ 5,000 | $ 4,200 | $ 5,300 | $ 1,100 | $ 4,500 | ||||||
Real Property Acquisition From Mosing Companies | Affiliated Entity | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase from related party | $ 37,000 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Trade accounts receivable, net of allowance of $5,129 and $3,925, respectively | $ 101,718 | $ 114,630 |
Unbilled receivables | 43,422 | 54,591 |
Taxes receivable | 18,516 | 15,762 |
Affiliated | 549 | 549 |
Other receivables | 2,489 | 3,882 |
Total accounts receivable, net | 166,694 | 189,414 |
Trade accounts receivable allowance | $ 5,129 | $ 3,925 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Pipe and connectors, net of allowance of $18,287 and $21,270, respectively | $ 21,779 | $ 18,026 |
Finished goods, net of allowance of $485 and $1,354, respectively | 25,628 | 22,608 |
Work in progress | 3,663 | 8,285 |
Raw materials, components and supplies | 27,759 | 20,463 |
Total inventories, net | 78,829 | 69,382 |
Pipe and connectors | ||
Inventory [Line Items] | ||
Allowance | 18,287 | 21,270 |
Finished goods | ||
Inventory [Line Items] | ||
Allowance | $ 485 | $ 1,354 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,204,067 | $ 1,250,194 |
Less: Accumulated depreciation | (875,635) | (833,704) |
Total property, plant and equipment, net | 328,432 | 416,490 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 30,724 | 32,945 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,193 | 8,316 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 116,182 | 125,088 |
Rental machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Property, plant and equipment, gross | $ 882,979 | 887,064 |
Machinery and equipment - other | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Property, plant and equipment, gross | $ 60,182 | 61,796 |
Furniture, fixtures and computers | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Property, plant and equipment, gross | $ 17,251 | 24,745 |
Automobiles and other vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Property, plant and equipment, gross | $ 28,734 | 29,696 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 14,258 | 15,392 |
Construction in progress - machinery and equipment and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 46,564 | $ 65,152 |
Minimum | Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 8 years | |
Minimum | Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 13 years | |
Minimum | Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Maximum | Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 15 years | |
Maximum | Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 39 years | |
Maximum | Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 15 years |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | |
Property, Plant and Equipment [Line Items] | ||||||||
Assets held-for-sale, impairment loss | $ 6,500,000 | |||||||
Fixed asset impairment | $ 28,800,000 | $ 32,916,000 | $ 0 | $ 6,454,000 | ||||
Buildings and improvements | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Assets held-for-sale, net book value | $ 5,300,000 | $ 4,200,000 | $ 1,100,000 | $ 5,000,000 | $ 4,500,000 | |||
Assets held-for-sale, impairment loss | $ 4,000,000 | |||||||
Equipment | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Assets held-for-sale, net book value | 200,000 | $ 200,000 | ||||||
Assets held-for-sale, impairment loss | $ 300,000 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Summary of Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 92,800 | $ 111,292 | $ 122,102 |
Services | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 80,072 | 93,280 | 102,212 |
Products | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 1,511 | 4,354 | 4,971 |
General and administrative expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 11,217 | $ 13,658 | $ 14,919 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Cash surrender value of life insurance policies | $ 27,313 | $ 23,784 |
Deposits | 2,119 | 2,269 |
Other | 3,805 | 2,566 |
Total other assets | $ 33,237 | $ 28,619 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 16,793 | $ 28,045 |
Accrued compensation | 23,988 | 30,822 |
Accrued property and other taxes | 20,099 | 16,301 |
Accrued severance and other charges | 5,837 | 2,328 |
Income taxes | 19,166 | 12,075 |
Affiliated | 1,694 | 3,915 |
Accrued purchase orders and other | 32,744 | 30,495 |
Total accounts payable and accrued liabilities | $ 120,321 | $ 123,981 |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) - ABL Credit Facility | Nov. 05, 2018USD ($) | Dec. 31, 2019USD ($) |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Covenant, consolidated EBITDA, minimum | 1 | |
Covenant, minimum fixed charges amount | $ 12,500,000 | |
Covenant, minimum fixed charges percentage | 15.00% | |
Revolving Credit Facility | Lines of credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit, amount outstanding | $ 9,300,000 | |
Revolving Credit Facility | Secured Debt | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 100,000,000 | |
Expiration period | 5 years | |
Maximum additional borrowing capacity | $ 200,000,000 | |
Federal funds effective rate | 0.00% | |
Basis spread on variable rate | 0.50% | |
Outstanding indebtedness | 0 | |
Available borrowing capacity | $ 44,700,000 | |
Revolving Credit Facility | Secured Debt | Minimum | ||
Line of Credit Facility [Line Items] | ||
Unused capacity, commitment fee | 0.25% | |
Revolving Credit Facility | Secured Debt | Maximum | ||
Line of Credit Facility [Line Items] | ||
Unused capacity, commitment fee | 0.375% | |
Revolving Credit Facility | Secured Debt | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.00% | |
Revolving Credit Facility | Secured Debt | Alternate Base Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Additional spread on variable rate | 1.00% | |
Revolving Credit Facility | Secured Debt | Alternate Base Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Additional spread on variable rate | 1.50% | |
Revolving Credit Facility | Secured Debt | Eurodollar | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.00% | |
Revolving Credit Facility | Secured Debt | Eurodollar | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Letter of Credit | Secured Debt | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 15,000,000 |
Debt - Insurance Notes Payable
Debt - Insurance Notes Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Total outstanding | $ 0 | $ 5,627 |
Insurance Notes Payable | Insurance Notes Payable Due October 2019 | ||
Short-term Debt [Line Items] | ||
Debt instrument, face amount | $ 6,800 | |
Debt instrument, interest rate | 3.90% | |
Total outstanding | $ 5,600 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash surrender value of life insurance policies - deferred compensation plan | $ 27,313 | $ 23,784 |
Marketable securities - other | 8 | 37 |
Derivative financial instruments | 324 | 101 |
Deferred compensation plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan | 23,251 | 23,663 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash surrender value of life insurance policies - deferred compensation plan | 0 | 0 |
Marketable securities - other | 8 | 37 |
Derivative financial instruments | 0 | 0 |
Quoted Prices in Active Markets (Level 1) | Deferred compensation plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash surrender value of life insurance policies - deferred compensation plan | 27,313 | 23,784 |
Marketable securities - other | 0 | 0 |
Derivative financial instruments | 324 | 101 |
Significant Other Observable Inputs (Level 2) | Deferred compensation plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan | 23,251 | 23,663 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash surrender value of life insurance policies - deferred compensation plan | 0 | 0 |
Marketable securities - other | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Deferred compensation plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan | $ 0 | $ 0 |
Derivatives - Foreign Currency
Derivatives - Foreign Currency Derivative Contracts (Details) - Not Designated as Hedging Instrument - Foreign currency contracts $ in Thousands | Dec. 31, 2019USD ($)$ / €$ / £$ / kr$ / $ | Dec. 31, 2018USD ($)$ / €$ / £$ / kr$ / $ |
Canadian dollar | ||
Derivative [Line Items] | ||
Notional amount | $ 948 | $ 2,248 |
Contractual exchange rate | $ / $ | 1.3182 | 1.3343 |
Euro | ||
Derivative [Line Items] | ||
Notional amount | $ 9,279 | $ 6,967 |
Contractual exchange rate | $ / € | 1.1180 | 1.1421 |
Norwegian krone | ||
Derivative [Line Items] | ||
Notional amount | $ 11,027 | $ 7,713 |
Contractual exchange rate | $ / kr | 9.0688 | 8.5566 |
Pound sterling | ||
Derivative [Line Items] | ||
Notional amount | $ 16,057 | $ 16,452 |
Contractual exchange rate | $ / £ | 1.3381 | 1.2655 |
Derivatives - Fair Value by Bal
Derivatives - Fair Value by Balance Sheet Location (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative liability | $ (324) | $ (101) |
Foreign currency contracts | Not Designated as Hedging Instrument | Accounts payable and accrued liabilities | ||
Derivative [Line Items] | ||
Derivative liability | $ (324) | $ (101) |
Derivatives - Impact of Derivat
Derivatives - Impact of Derivative Instruments on Income Statement (Details) - Other income, net - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unrealized gain (loss) on foreign currency contracts | |||
Derivative [Line Items] | |||
Gain (loss) on foreign currency contracts | $ (222) | $ 386 | $ (634) |
Realized gain (loss) on foreign currency contracts | |||
Derivative [Line Items] | |||
Gain (loss) on foreign currency contracts | 320 | 1,661 | (1,699) |
Foreign currency contracts | |||
Derivative [Line Items] | |||
Gain (loss) on foreign currency contracts | $ 98 | $ 2,047 | $ (2,333) |
Derivatives - Gross and Net Fai
Derivatives - Gross and Net Fair Value of Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Asset Positions | ||
Gross position - asset / (liability) | $ 127 | $ 113 |
Netting adjustment | (127) | (113) |
Net position - asset / (liability) | 0 | 0 |
Derivative Liability Positions | ||
Gross position - asset / (liability) | (451) | (214) |
Netting adjustment | 127 | 113 |
Net position - asset / (liability) | $ (324) | $ (101) |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | Dec. 18, 2018USD ($) | Aug. 26, 2016 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Related Party Transaction [Line Items] | |||||
Rent expense | $ 16,800 | $ 18,700 | |||
Operating lease assets | $ 32,585 | ||||
Operating lease, liability | 32,894 | ||||
Estimated termination payment | $ 50,000 | ||||
Tax receivable agreement liability, discount rate | 5.25% | ||||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Rent expense | $ 2,700 | ||||
Rent expense | $ 6,500 | $ 6,900 | |||
Operating lease assets | 6,300 | ||||
Operating lease, liability | $ 7,100 | ||||
Affiliated Entity | Mosing Holdings | |||||
Related Party Transaction [Line Items] | |||||
Conversion ratio, preferred stock to common stock | 1 | ||||
Tax benefits realized and payable under tax receivable agreement | 85.00% | ||||
Percentage retained under tax receivable agreement | 15.00% | ||||
Cumulative loss period | 36 months | ||||
Real Property Acquisition From Mosing Companies | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Purchase from related party | $ 37,000 | ||||
Term for certain rights and obligations within agreement | 10 years | ||||
Long-Term Treasury Rate | Affiliated Entity | Mosing Holdings | |||||
Related Party Transaction [Line Items] | |||||
Basis spread on long-term treasury rate | 3.00% |
Loss Per Common Share (Details)
Loss Per Common 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 | |
Numerator | |||||||||||
Net loss | $ (168,093) | $ (23,789) | $ (15,160) | $ (28,287) | $ (15,898) | $ (6,999) | $ (25,763) | $ (42,073) | $ (235,329) | $ (90,733) | $ (159,457) |
Denominator | |||||||||||
Basic and diluted weighted average common shares (in shares) | 225,159 | 223,999 | 222,940 | ||||||||
Loss per common share: | |||||||||||
Basic and diluted (in USD per share) | $ (0.75) | $ (0.11) | $ (0.07) | $ (0.13) | $ (0.07) | $ (0.03) | $ (0.12) | $ (0.19) | $ (1.05) | $ (0.41) | $ (0.72) |
Antidilutive securities excluded from computation of EPS (in USD per share) | 737 | 922 | 648 |
Stock-Based Compensation - 2013
Stock-Based Compensation - 2013 Long-Term Incentive Plan (Details) - LTIP - Common Stock | 12 Months Ended |
Dec. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award requisite service period | 10 years |
Common stock, reserved for future issuance (in shares) | 20,000,000 |
Common stock, shares available for future issuance (in shares) | 11,410,061 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 8.7 | $ 8.9 | $ 12.8 |
Fair value of awards vested | 7.1 | 6.7 | 9.9 |
Unamortized stock compensation expense | $ 8.8 | ||
Compensation cost not yet recognized, period for recognition | 1 year 9 months | ||
LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 11.4 | $ 9.5 | $ 12.1 |
LTIP | Primary Vesting Category | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
LTIP | Primary Vesting Category | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Non-Vested Share Based RSU's and PRSU's (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Beginning balance (in shares) | 2,188,965 | ||
Granted (in shares) | 1,756,125 | ||
Vested (in shares) | (1,138,654) | ||
Forfeited (in shares) | (345,636) | ||
Ending balance (in shares) | 2,460,800 | 2,188,965 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in USD per share) | $ 7.66 | ||
Granted (in USD per share) | 6.49 | ||
Vested (in USD per share) | 7.87 | ||
Forfeited (in USD per share) | 6.81 | ||
Ending balance (in USD per share) | $ 6.65 | $ 7.66 | |
PRSUs | |||
Number of Shares | |||
Beginning balance (in shares) | 593,987 | ||
Granted (in shares) | 446,858 | 275,550 | 293,083 |
Forfeited (in shares) | (252,012) | ||
Ending balance (in shares) | 788,833 | 593,987 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in USD per share) | $ 8.06 | ||
Granted (in USD per share) | 8.22 | ||
Forfeited (in USD per share) | 7.96 | ||
Ending balance (in USD per share) | $ 8.13 | $ 8.06 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Restricted Stock Units (Details) - PRSUs | 12 Months Ended | ||
Dec. 31, 2019USD ($)award_vesting_periodshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting, period of average award price | 30 days | ||
Award vesting, period of average award price, first period | 30 days | ||
Award vesting, period of average award price, last period | 30 days | ||
Number of award achievement periods | award_vesting_period | 3 | ||
Weighted volatility rate | 50.00% | ||
Fair value of performance units granted | $ 3,700,000 | $ 2,000,000 | $ 2,600,000 |
Granted (in shares) | shares | 446,858 | 275,550 | 293,083 |
Award vesting period | 3 years | 3 years | 3 years |
Stock-based compensation expense | $ 2,000,000 | $ 1,200,000 | $ 600,000 |
Fair value of awards vested | 0 | $ 0 | $ 200,000 |
Unamortized stock compensation expense | $ 3,000,000 | ||
Compensation cost not yet recognized, period for recognition | 1 year 9 months 25 days | ||
25th Percentile (Threshold Level) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award achievement period | 1 year | 1 year | |
Award vesting percentage | 50.00% | ||
50th Percentile (Target Level) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award achievement period | 1 year | 1 year | |
Award vesting percentage | 100.00% | ||
75th Percentile (Maximum Level) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award achievement period | 1 year | 1 year | |
Award vesting percentage | 150.00% | ||
90th Percentile (the maximum level for the 2018 and 2019 grants) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 200.00% |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions for PRSUs (Details) - PRSUs | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total expected term (in years) | 2 years 10 months 9 days | 2 years 10 months 9 days | 2 years 11 months 1 day |
Expected volatility | 43.50% | 39.00% | 42.10% |
Risk-free interest rate | 2.48% | 2.35% | 1.51% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Correlation range | 2.40% | 11.00% | 26.80% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Correlation range | 88.10% | 85.70% | 76.00% |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2019 | Jan. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common shares issued for employee stock purchase plan (“ESPP”) (in shares) | 235,833 | 153,451 | 389,284 | 232,592 | |
ESPP expense | $ 0.6 | $ 0.5 | $ 0.4 | ||
Employee Stock Purchase Plan | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair market value at grant purchase price | 85.00% | ||||
Fair market value at grant exercise price | 85.00% | ||||
Common stock, reserved for future issuance (in shares) | 3,000,000 | ||||
Common stock, shares available for future issuance (in shares) | 2,100,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2004 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred compensation expense | $ 0 | $ 1,000,000 | $ 0 | |
Deferred compensation liability | $ 23,300,000 | 23,700,000 | ||
Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 5 years | |||
401(k) Savings and Investment Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 1 month | |||
Maximum annual contributions per employee | 100.00% | |||
Employer discretionary contribution | 50.00% | |||
Cost recognized | $ 5,000,000 | $ 4,500,000 | $ 3,700,000 | |
401(k) Savings and Investment Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employer matching contribution | 4.00% | |||
401(k) Savings and Investment Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employer matching contribution | 3.00% | |||
Employer matching contribution | 6.00% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
United States | $ (225,653) | $ (85,342) | $ (167,908) |
Foreign | 14,118 | (8,341) | 81,369 |
Loss before income tax expense (benefit) | (211,535) | (93,683) | (86,539) |
Current | |||
U.S. federal | 0 | 0 | 0 |
U.S. state and local | 209 | 7 | (15) |
Foreign | 21,975 | 11,677 | 10,516 |
Total current | 22,184 | 11,684 | 10,501 |
Deferred | |||
U.S. federal | 444 | 0 | 56,621 |
U.S. state and local | 0 | 0 | 2,420 |
Foreign | 1,166 | (14,634) | 3,376 |
Total deferred | 1,610 | (14,634) | 62,417 |
Total income tax expense (benefit) | $ 23,794 | $ (2,950) | $ 72,918 |
Income Taxes - Foreign Taxes In
Income Taxes - Foreign Taxes Incurred (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign Taxes Incurred By Regions [Line Items] | |||
Total foreign income tax expense (benefit) | $ 23,141 | $ (2,957) | $ 13,893 |
Latin America | |||
Foreign Taxes Incurred By Regions [Line Items] | |||
Total foreign income tax expense (benefit) | 8,636 | 1,261 | 5,469 |
West Africa | |||
Foreign Taxes Incurred By Regions [Line Items] | |||
Total foreign income tax expense (benefit) | 4,688 | 2,692 | 3,243 |
Middle East | |||
Foreign Taxes Incurred By Regions [Line Items] | |||
Total foreign income tax expense (benefit) | 5,579 | 2,249 | 1,633 |
Europe | |||
Foreign Taxes Incurred By Regions [Line Items] | |||
Total foreign income tax expense (benefit) | 1,096 | 461 | 1,348 |
Asia Pacific | |||
Foreign Taxes Incurred By Regions [Line Items] | |||
Total foreign income tax expense (benefit) | 1,525 | 922 | 1,388 |
Other | |||
Foreign Taxes Incurred By Regions [Line Items] | |||
Total foreign income tax expense (benefit) | $ 1,617 | $ (10,542) | $ 812 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) at statutory rate | $ (44,422) | $ (19,673) | $ (30,289) |
Branch profits tax | (12,129) | (4,267) | (4,871) |
State taxes, net of federal benefit | 154 | (27) | 2,405 |
Restricted stock units tax shortfall | 405 | 1,025 | 1,651 |
Taxes on foreign earnings at less than the U.S. statutory rate | 14,427 | 13,095 | (22,464) |
Effect of tax rate change | 0 | (2,929) | 23,843 |
Effect of moving activity to higher tax rate jurisdiction | 0 | (14,620) | 0 |
Management fee charged to international operations | 3,455 | 1,515 | 1,213 |
Tax effect of TRA derecognition | 0 | 0 | 46,874 |
Establishment of valuation allowances | 37,802 | 22,892 | 51,911 |
Goodwill impairment | 25,677 | 0 | 0 |
Return-to-provision adjustments | (524) | (521) | 3,551 |
Foreign tax credit | (5,707) | 0 | 0 |
Other | 4,656 | 560 | (906) |
Total income tax expense (benefit) | $ 23,794 | $ (2,950) | $ 72,918 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Foreign net operating loss | $ 17,121 | $ 13,290 |
U.S. net operating loss | 104,105 | 76,349 |
Research and development credit | 1,016 | 609 |
Foreign tax credit carryover | 422 | 0 |
Intangibles | 9,365 | 5,933 |
Inventory | 2,280 | 2,350 |
Property and equipment | 16,161 | 14,621 |
Investment in partnership | 24,372 | 23,931 |
Other | 1,442 | 773 |
Valuation allowance | (130,010) | (84,972) |
Total deferred tax assets | 46,274 | 52,884 |
Deferred tax liabilities | ||
Investment in partnership | (23,728) | (27,352) |
Property and equipment | (1,253) | (3,652) |
Goodwill | (7,297) | (7,259) |
Other | (329) | (221) |
Total deferred liabilities | (32,607) | (38,484) |
Net deferred tax assets | $ 13,667 | $ 14,400 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 443,600 | |
Valuation allowance on net operating loss carryforwards | (130,000) | $ (85,000) |
Total gross unrecognized tax positions | 300 | $ 300 |
Research Tax Credit Carryforward | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards | $ 1,016 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 443,600 |
U.S. NOLs | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 371,173 |
U.S. NOLs | 2020 - 2024 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
U.S. NOLs | 2025 - 2029 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
U.S. NOLs | 2030 - 2038 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 196,550 |
U.S. NOLs | Does not expire | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 174,623 |
Foreign NOLs | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 72,428 |
Foreign NOLs | 2020 - 2024 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 11,598 |
Foreign NOLs | 2025 - 2029 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 8,084 |
Foreign NOLs | 2030 - 2038 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
Foreign NOLs | Does not expire | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 52,746 |
R&D Credits | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | 1,016 |
R&D Credits | 2020 - 2024 | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | 0 |
R&D Credits | 2025 - 2029 | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | 0 |
R&D Credits | 2030 - 2038 | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | 1,016 |
R&D Credits | Does not expire | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Inventories | |
Long-term Purchase Commitment [Line Items] | |
Purchase commitment inventory | $ 34.1 |
Severance and Other Charges (_3
Severance and Other Charges (Credits), net - Summary of Severance and Other Charges (Credits), net (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | ||||
Severance and other costs | $ 9,744,000 | $ 4,552,000 | $ 2,697,000 | |
Fixed asset impairments and retirements | $ 28,800,000 | 32,916,000 | 0 | 6,454,000 |
Inventory impairments | 4,200,000 | 4,471,000 | 0 | 51,181,000 |
Intangible asset impairments | $ 3,300,000 | 3,299,000 | 0 | 0 |
Accounts receivable write-off (recovery) | 0 | (4,862,000) | 15,022,000 | |
Severance and other charges (credits), net | $ 50,430,000 | $ (310,000) | $ 75,354,000 |
Severance and Other Charges (_4
Severance and Other Charges (Credits), net - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | ||||
Outstanding liability on severance and other costs | $ 5,837,000 | $ 5,837,000 | $ 0 | |
Fixed asset retirement charge | $ 6,500,000 | |||
Fixed asset impairment | 28,800,000 | 32,916,000 | 0 | 6,454,000 |
Inventory impairments | 4,200,000 | 4,471,000 | 0 | 51,181,000 |
Intangible asset impairments | $ 3,300,000 | 3,299,000 | 0 | 0 |
Accounts receivable write-off (recovery) | $ 0 | $ (4,862,000) | $ 15,022,000 |
Severance and Other Charges (_5
Severance and Other Charges (Credits), net - Employee Separation Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2018 | $ 0 | ||
Additions for costs expensed | 9,744 | $ 4,552 | $ 2,697 |
Severance and other payments | (3,877) | ||
Other adjustments | (30) | ||
Balance at December 31, 2019 | 5,837 | 0 | |
Corporate | |||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2018 | 0 | ||
Additions for costs expensed | 3,998 | ||
Severance and other payments | (1,762) | ||
Other adjustments | (50) | ||
Balance at December 31, 2019 | 2,186 | 0 | |
Tubular Running Services | Operating segments | |||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2018 | 0 | ||
Additions for costs expensed | 3,573 | ||
Severance and other payments | (1,593) | ||
Other adjustments | 20 | ||
Balance at December 31, 2019 | 2,000 | 0 | |
Tubulars | Operating segments | |||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2018 | 0 | ||
Additions for costs expensed | 70 | ||
Severance and other payments | (51) | ||
Other adjustments | 0 | ||
Balance at December 31, 2019 | 19 | 0 | |
Cementing Equipment | Operating segments | |||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2018 | 0 | ||
Additions for costs expensed | 2,103 | ||
Severance and other payments | (471) | ||
Other adjustments | 0 | ||
Balance at December 31, 2019 | $ 1,632 | $ 0 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |||
Cash paid for interest | $ 1,005 | $ 273 | $ 296 |
Cash paid (received) for income taxes, net of refunds | 13,330 | 1,848 | (20,732) |
Non-cash transactions: | |||
Change in accruals related to purchases of property, plant and equipment and intangibles | 781 | 5,910 | 5,761 |
Insurance premium financed by note payable | 0 | 6,798 | 5,125 |
Net transfers from inventory to property, plant and equipment | $ 3,190 | $ 4,529 | $ 4,689 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019countrysegmentcontinentft | Dec. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Number of reportable segments | segment | 3 | |
Number of countries in which segment operates in | 50 | |
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | One Customer | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Concentration risk | 10.00% | |
Tubular Running Services | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Number of countries in which segment operates in | 50 | |
Number of continents in which segment operates in | continent | 6 | |
Maximum | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Length of tubular assemblies (in feet) | ft | 400 |
Segment Information - Disaggreg
Segment Information - Disaggregation of Revenue by Geography (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 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 139,441 | $ 140,417 | $ 155,654 | $ 144,408 | $ 145,853 | $ 128,986 | $ 132,085 | $ 115,569 | $ 579,920 | $ 522,493 | $ 454,795 |
Tubular Running Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 400,327 | 361,045 | 320,378 | ||||||||
Tubulars | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 74,687 | 72,303 | 63,393 | ||||||||
Cementing Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 104,906 | 89,145 | 71,024 | ||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 293,172 | 280,595 | 244,684 | ||||||||
United States | Tubular Running Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 147,547 | 142,262 | 116,795 | ||||||||
United States | Tubulars | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 63,087 | 66,017 | 57,882 | ||||||||
United States | Cementing Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 82,538 | 72,316 | 70,007 | ||||||||
International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 286,748 | 241,898 | 210,111 | ||||||||
International | Tubular Running Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 252,780 | 218,783 | 203,583 | ||||||||
International | Tubulars | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 11,600 | 6,286 | 5,511 | ||||||||
International | Cementing Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 22,368 | 16,829 | 1,017 | ||||||||
Europe/Middle East/Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 155,278 | 127,968 | 132,768 | ||||||||
Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 72,720 | 46,553 | 33,131 | ||||||||
Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 35,909 | 35,327 | 26,109 | ||||||||
Other countries | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 22,841 | $ 32,050 | $ 18,103 |
Segment Information - EBITDA Re
Segment Information - EBITDA Reconciliation (Details) - USD ($) | 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, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Adjusted EBITDA | $ 57,521,000 | $ 33,232,000 | $ 5,715,000 | ||||||||
Goodwill impairment | $ (111,100,000) | (111,108,000) | 0 | 0 | |||||||
Severance and other (charges) credits, net | (50,430,000) | 310,000 | (75,354,000) | ||||||||
Interest income, net | 2,265,000 | 4,243,000 | 2,309,000 | ||||||||
Income tax benefit (expense) | (23,794,000) | 2,950,000 | (72,918,000) | ||||||||
Depreciation and amortization | (92,800,000) | (111,292,000) | (122,102,000) | ||||||||
Gain (loss) on disposal of assets | (1,037,000) | 1,309,000 | 2,045,000 | ||||||||
Foreign currency gain (loss) | (2,233,000) | (5,675,000) | 2,075,000 | ||||||||
Tax receivable agreement (“TRA”) related adjustments | 220,000 | (1,359,000) | 122,515,000 | ||||||||
Charges and credits | (13,933,000) | (14,451,000) | (23,742,000) | ||||||||
Net loss | $ (168,093,000) | $ (23,789,000) | $ (15,160,000) | $ (28,287,000) | $ (15,898,000) | $ (6,999,000) | $ (25,763,000) | $ (42,073,000) | (235,329,000) | (90,733,000) | (159,457,000) |
Equity-based compensation expense | 11,280,000 | 10,621,000 | 13,862,000 | ||||||||
Mergers and acquisition expense | 0 | 58,000 | 459,000 | ||||||||
Unrealized and realized gains (losses) | 228,000 | 1,682,000 | (2,791,000) | ||||||||
Investigation-related matters | 3,838,000 | 5,454,000 | 6,143,000 | ||||||||
Other adjustments | 957,000 | 0 | (487,000) | ||||||||
Operating segments | Tubular Running Services | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Adjusted EBITDA | 85,601,000 | 62,515,000 | 39,586,000 | ||||||||
Depreciation and amortization | (61,036,000) | (80,009,000) | (84,219,000) | ||||||||
Operating segments | Tubulars | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Adjusted EBITDA | 11,575,000 | 11,246,000 | 3,602,000 | ||||||||
Depreciation and amortization | (2,903,000) | (3,371,000) | (3,557,000) | ||||||||
Operating segments | Cementing Equipment | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Adjusted EBITDA | 14,089,000 | 8,617,000 | 6,421,000 | ||||||||
Depreciation and amortization | (16,130,000) | (16,324,000) | (22,739,000) | ||||||||
Corporate | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Adjusted EBITDA | (53,744,000) | (49,146,000) | (43,894,000) | ||||||||
Depreciation and amortization | $ (12,731,000) | $ (11,588,000) | $ (11,587,000) |
Segment Information - Revenue f
Segment Information - Revenue from External Customers (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] | |||||||||||
Revenue | $ 139,441 | $ 140,417 | $ 155,654 | $ 144,408 | $ 145,853 | $ 128,986 | $ 132,085 | $ 115,569 | $ 579,920 | $ 522,493 | $ 454,795 |
Operating income (loss) | $ (165,279) | $ (14,803) | $ (12,514) | $ (20,294) | $ (20,601) | $ (13,591) | $ (23,782) | $ (34,907) | (212,890) | (92,881) | (214,742) |
Adjusted EBITDA | 57,521 | 33,232 | 5,715 | ||||||||
Depreciation and amortization | 92,800 | 111,292 | 122,102 | ||||||||
Purchases of property, plant and equipment and intangibles | 36,942 | 19,734 | 21,990 | ||||||||
Purchases of property, plant and equipment and intangibles | 56,471 | ||||||||||
Tubular Running Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 400,327 | 361,045 | 320,378 | ||||||||
Tubulars | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 74,687 | 72,303 | 63,393 | ||||||||
Cementing Equipment | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 104,906 | 89,145 | 71,024 | ||||||||
Operating segments | Tubular Running Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 400,327 | 361,045 | 320,378 | ||||||||
Operating income (loss) | (3,900) | (16,886) | (72,524) | ||||||||
Adjusted EBITDA | 85,601 | 62,515 | 39,586 | ||||||||
Depreciation and amortization | 61,036 | 80,009 | 84,219 | ||||||||
Purchases of property, plant and equipment and intangibles | 16,086 | 14,437 | |||||||||
Purchases of property, plant and equipment and intangibles | 7,824 | ||||||||||
Operating segments | Tubulars | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 74,687 | 72,303 | 63,393 | ||||||||
Operating income (loss) | 7,344 | 7,616 | (49,902) | ||||||||
Adjusted EBITDA | 11,575 | 11,246 | 3,602 | ||||||||
Depreciation and amortization | 2,903 | 3,371 | 3,557 | ||||||||
Purchases of property, plant and equipment and intangibles | 2,859 | 362 | |||||||||
Purchases of property, plant and equipment and intangibles | 1,838 | ||||||||||
Operating segments | Cementing Equipment | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 104,906 | 89,145 | 71,024 | ||||||||
Operating income (loss) | (124,597) | (9,313) | (19,571) | ||||||||
Adjusted EBITDA | 14,089 | 8,617 | 6,421 | ||||||||
Depreciation and amortization | 16,130 | 16,324 | 22,739 | ||||||||
Purchases of property, plant and equipment and intangibles | 16,374 | 4,885 | |||||||||
Purchases of property, plant and equipment and intangibles | 7,583 | ||||||||||
Corporate | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Operating income (loss) | (91,737) | (74,298) | (72,745) | ||||||||
Adjusted EBITDA | (53,744) | (49,146) | (43,894) | ||||||||
Depreciation and amortization | 12,731 | 11,588 | 11,587 | ||||||||
Purchases of property, plant and equipment and intangibles | $ 1,623 | $ 2,306 | |||||||||
Purchases of property, plant and equipment and intangibles | $ 39,226 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets, by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | $ 328,432 | $ 416,490 |
Operating segments | Tubular Running Services | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 132,626 | 202,874 |
Operating segments | Tubulars | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 15,162 | 12,921 |
Operating segments | Cementing Equipment | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 34,184 | 27,509 |
Corporate and Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | $ 146,460 | $ 173,186 |
Segment Information - Long-Li_2
Segment Information - Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment | $ 328,432 | $ 416,490 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment | 207,227 | 272,476 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment | $ 121,205 | $ 144,014 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) | 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] | |||||||||||
Revenue | $ 139,441,000 | $ 140,417,000 | $ 155,654,000 | $ 144,408,000 | $ 145,853,000 | $ 128,986,000 | $ 132,085,000 | $ 115,569,000 | $ 579,920,000 | $ 522,493,000 | $ 454,795,000 |
Gross profit | 16,357,000 | 20,825,000 | 25,062,000 | 19,102,000 | 17,174,000 | 12,594,000 | 13,766,000 | 2,262,000 | 81,346,000 | 45,796,000 | |
Operating loss | (165,279,000) | (14,803,000) | (12,514,000) | (20,294,000) | (20,601,000) | (13,591,000) | (23,782,000) | (34,907,000) | (212,890,000) | (92,881,000) | (214,742,000) |
Net loss | $ (168,093,000) | $ (23,789,000) | $ (15,160,000) | $ (28,287,000) | $ (15,898,000) | $ (6,999,000) | $ (25,763,000) | $ (42,073,000) | $ (235,329,000) | $ (90,733,000) | $ (159,457,000) |
Loss per common share: | |||||||||||
Basic and diluted (in USD per share) | $ (0.75) | $ (0.11) | $ (0.07) | $ (0.13) | $ (0.07) | $ (0.03) | $ (0.12) | $ (0.19) | $ (1.05) | $ (0.41) | $ (0.72) |
Goodwill impairment | $ 111,100,000 | $ 111,108,000 | $ 0 | $ 0 | |||||||
Fixed asset impairments and retirements | 28,800,000 | 32,916,000 | 0 | 6,454,000 | |||||||
Inventory impairments | 4,200,000 | 4,471,000 | 0 | 51,181,000 | |||||||
Intangible asset impairments | $ 3,300,000 | $ 3,299,000 | $ 0 | $ 0 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Account (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 3,925 | $ 4,777 | $ 14,337 |
Additions / Charged to Expense | 2,047 | 348 | 346 |
Deductions | (843) | (1,200) | (9,725) |
Other | 0 | 0 | (181) |
Balance at end of period | 5,129 | 3,925 | 4,777 |
Allowance for excess and obsolete inventory | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 22,624 | 21,584 | 4,626 |
Additions / Charged to Expense | 1,677 | 1,800 | 19,727 |
Deductions | (5,839) | (760) | (2,769) |
Other | 310 | 0 | 0 |
Balance at end of period | 18,772 | 22,624 | 21,584 |
Allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 84,972 | 60,524 | 5,442 |
Additions / Charged to Expense | 45,038 | 24,448 | 56,207 |
Deductions | 0 | 0 | (1,125) |
Other | 0 | 0 | 0 |
Balance at end of period | $ 130,010 | $ 84,972 | $ 60,524 |