Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 17, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 424.6 | ||
Entity Common Stock, Shares Outstanding | 226,578,254 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement in connection with the 2021 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 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 209,575 | $ 195,383 |
Restricted cash | 1,672 | 1,357 |
Short-term investments | 2,252 | 0 |
Accounts receivables, net | 110,607 | 166,694 |
Inventories, net | 81,718 | 78,829 |
Assets held for sale | 2,939 | 13,795 |
Other current assets | 7,744 | 10,360 |
Total current assets | 416,507 | 466,418 |
Property, plant and equipment, net | 272,707 | 328,432 |
Goodwill | 42,785 | 99,932 |
Intangible assets, net | 7,897 | 16,971 |
Deferred tax assets, net | 18,030 | 16,590 |
Operating lease right-of-use assets | 28,116 | 32,585 |
Other assets | 30,859 | 33,237 |
Total assets | 816,901 | 994,165 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 99,986 | 120,321 |
Current portion of operating lease liabilities | 7,832 | 7,925 |
Deferred revenue | 586 | 657 |
Other current liabilities | 1,674 | 0 |
Total current liabilities | 110,078 | 128,903 |
Deferred tax liabilities | 1,548 | 2,923 |
Non-current operating lease liabilities | 21,208 | 24,969 |
Other non-current liabilities | 22,818 | 27,076 |
Total liabilities | 155,652 | 183,871 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity: | ||
Common stock, €0.01 par value, 798,096,000 shares authorized, 228,806,301 and 227,000,507 shares issued and 226,324,559 and 225,510,650 shares outstanding | 2,866 | 2,846 |
Additional paid-in capital | 1,087,733 | 1,075,809 |
Accumulated deficit | (377,346) | (220,805) |
Accumulated other comprehensive loss | (31,966) | (30,298) |
Treasury stock (at cost), 2,481,742 and 1,489,857 shares | (20,038) | (17,258) |
Total stockholders’ equity | 661,249 | 810,294 |
Total liabilities and equity | $ 816,901 | $ 994,165 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - € / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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) | 228,806,301 | 227,000,507 |
Common stock, outstanding (in shares) | 226,324,559 | 225,510,650 |
Treasury stock, at cost (in shares) | 2,481,742 | 1,489,857 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue: | |||
Revenue | $ 390,358,000 | $ 579,920,000 | $ 522,493,000 |
Cost of revenue, exclusive of depreciation and amortization | |||
General and administrative expenses | 82,257,000 | 120,444,000 | 126,638,000 |
Depreciation and amortization | 70,169,000 | 92,800,000 | 111,292,000 |
Goodwill impairment | 57,146,000 | 111,108,000 | 0 |
Severance and other charges (credits), net | 33,023,000 | 50,430,000 | (310,000) |
(Gain) loss on disposal of assets | (1,424,000) | 1,037,000 | (1,309,000) |
Operating loss | (162,892,000) | (212,890,000) | (92,881,000) |
Other income (expense): | |||
Tax receivable agreement (“TRA”) related adjustments | 0 | 220,000 | (1,359,000) |
Other income, net | 2,090,000 | 1,103,000 | 2,047,000 |
Interest income, net | 712,000 | 2,265,000 | 4,243,000 |
Mergers and acquisition expense | 0 | 0 | (58,000) |
Foreign currency loss | (211,000) | (2,233,000) | (5,675,000) |
Total other income (expense) | 2,591,000 | 1,355,000 | (802,000) |
Loss before income taxes | (160,301,000) | (211,535,000) | (93,683,000) |
Income tax expense (benefit) | (4,081,000) | 23,794,000 | (2,950,000) |
Net loss | $ (156,220,000) | $ (235,329,000) | $ (90,733,000) |
Loss per common share: | |||
Basic and diluted (in USD per share) | $ (0.69) | $ (1.05) | $ (0.41) |
Weighted average common shares outstanding: | |||
Basic and diluted (in shares) | 226,042 | 225,159 | 223,999 |
Services | |||
Revenue: | |||
Revenue | $ 328,457,000 | $ 473,538,000 | $ 416,781,000 |
Cost of revenue, exclusive of depreciation and amortization | |||
Cost of revenues | 264,680,000 | 338,325,000 | 302,880,000 |
Products | |||
Revenue: | |||
Revenue | 61,901,000 | 106,382,000 | 105,712,000 |
Cost of revenue, exclusive of depreciation and amortization | |||
Cost of revenues | $ 47,399,000 | $ 78,666,000 | $ 76,183,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (156,220) | $ (235,329) | $ (90,733) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (1,668) | 404 | (1,452) |
Marketable securities: | |||
Unrealized gain on marketable securities | 0 | 0 | 86 |
Total other comprehensive income (loss) | (1,668) | 404 | (1,366) |
Comprehensive loss | $ (157,888) | $ (234,925) | $ (92,099) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Retained Earnings (Deficit) | Retained Earnings (Deficit)Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2017 | 223,289,000 | |||||||
Beginning balance at Dec. 31, 2017 | $ 1,115,901 | $ 670 | $ 2,814 | $ 1,050,873 | $ 106,923 | $ 670 | $ (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/Reclassification of 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) | 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 | (700) | $ 2,829 | 1,062,794 | 16,860 | (700) | (32,338) | (15,373) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||||
Net loss | $ (235,329) | (235,329) | ||||||
Foreign currency translation adjustments | 404 | 404 | ||||||
Unrealized gain (loss) on marketable securities/Reclassification of 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 | $ (321) | $ 2,846 | 1,075,809 | (220,805) | $ (321) | (30,298) | (17,258) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (156,220) | (156,220) | ||||||
Foreign currency translation adjustments | (1,668) | (1,668) | ||||||
Equity-based compensation expense | 11,010 | 11,010 | ||||||
Common shares issued upon vesting of share-based awards (in shares) | 1,464,000 | |||||||
Common shares issued upon vesting of share-based awards | $ 0 | $ 16 | (16) | |||||
Common shares issued for employee stock purchase plan (“ESPP”) (in shares) | 340,950 | 341,000 | ||||||
Common shares issued for employee stock purchase plan (“ESPP”) | $ 934 | $ 4 | 930 | |||||
Treasury shares withheld (in shares) | (421,000) | |||||||
Treasury shares withheld | (1,282) | (1,282) | ||||||
Share repurchase program (in shares) | (570,000) | |||||||
Share repurchase program | (1,498) | (1,498) | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 226,325,000 | |||||||
Ending balance at Dec. 31, 2020 | $ 661,249 | $ 2,866 | $ 1,087,733 | $ (377,346) | $ (31,966) | $ (20,038) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net loss | $ (156,220,000) | $ (235,329,000) | $ (90,733,000) |
Adjustments to reconcile net loss to cash from operating activities | |||
Depreciation and amortization | 70,169,000 | 92,800,000 | 111,292,000 |
Equity-based compensation expense | 11,010,000 | 11,280,000 | 10,621,000 |
Goodwill impairment | 57,146,000 | 111,108,000 | 0 |
Loss on asset impairments and retirements | 21,225,000 | 40,686,000 | 0 |
Amortization of deferred financing costs | 388,000 | 371,000 | 58,000 |
Deferred tax provision (benefit) | (625,000) | 727,000 | (14,634,000) |
Provision for bad debts | 938,000 | 1,281,000 | 159,000 |
(Gain) loss on disposal of assets | (1,424,000) | 1,037,000 | (1,309,000) |
Changes in fair value of investments | (1,106,000) | (2,747,000) | 1,199,000 |
Unrealized (gain) loss on derivative instruments | 0 | 222,000 | (386,000) |
Other | (64,000) | (1,522,000) | 843,000 |
Changes in operating assets and liabilities, net of effects from acquisitions | |||
Accounts receivable | 54,707,000 | 22,152,000 | (63,654,000) |
Inventories | (1,573,000) | (10,694,000) | (2,917,000) |
Other current assets | 4,437,000 | 856,000 | 4,581,000 |
Other assets | 848,000 | (1,285,000) | 258,000 |
Accounts payable and accrued liabilities | (16,787,000) | (3,937,000) | 15,310,000 |
Deferred revenue | (74,000) | 545,000 | (354,000) |
Other noncurrent liabilities | (3,344,000) | (503,000) | (2,978,000) |
Net cash provided by (used in) operating activities | 39,651,000 | 27,048,000 | (32,644,000) |
Cash flows from investing activities | |||
Purchase of property, plant and equipment and intangibles | (28,473,000) | (36,942,000) | (19,734,000) |
Purchase of property, plant and equipment from related parties | 0 | 0 | (36,737,000) |
Proceeds from sale of assets and equipment | 8,319,000 | 791,000 | 7,089,000 |
Purchase of investments | (2,252,000) | (20,122,000) | (84,040,000) |
Proceeds from sale of investments | 2,832,000 | 46,739,000 | 143,825,000 |
Other | (460,000) | (512,000) | 0 |
Net cash provided by (used in) investing activities | (20,034,000) | (10,046,000) | 10,403,000 |
Cash flows from financing activities | |||
Repayments of borrowings | (236,000) | (5,627,000) | (5,892,000) |
Deferred financing costs | 0 | (184,000) | (1,733,000) |
Treasury shares withheld | (1,282,000) | (1,886,000) | (1,636,000) |
Treasury share repurchase | (1,498,000) | 0 | 0 |
Proceeds from the issuance of ESPP shares | 934,000 | 1,752,000 | 1,315,000 |
Net cash used in financing activities | (2,082,000) | (5,945,000) | (7,946,000) |
Effect of exchange rate changes on cash | (3,028,000) | (529,000) | 3,384,000 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 14,507,000 | 10,528,000 | (26,803,000) |
Cash, cash equivalents and restricted cash at beginning of period | 196,740,000 | 186,212,000 | 213,015,000 |
Cash, cash equivalents and restricted cash at end of period | $ 211,247,000 | $ 196,740,000 | $ 186,212,000 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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. The impact of the Coronavirus Disease 2019 (“COVID-19”) pandemic and related economic, business and market disruptions is evolving rapidly, and its future effects are uncertain. The actual impact of these recent developments on our business will depend on many factors, many of which are beyond management's control and knowledge. It is therefore difficult for management to assess or predict with accuracy the broad future effects of this health crisis on the global economy, the energy industry or the Company. As additional information becomes available, events or circumstances change and strategic operational decisions are made by management, further adjustments may be required which could have a material adverse impact on the Company's consolidated financial position, results of operations and cash flows. Basis of Presentation The consolidated financial statements of FINV for the years ended December 31, 2020, 2019 and 2018 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. 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 estimate current expected credit losses on our accounts receivable at each reporting date. We estimate current expected credit losses based on our credit loss history, adjusted for current factors including global economic and business conditions, oil and natural gas industry and market conditions and customer mix. Losses are charged against the allowance when the customer accounts are determined to be uncollectible. This process involves judgment and estimation, and accordingly, our results can be affected by adjustments to the allowance due to actual write-offs that differ from estimated amounts. 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, 2020 and December 31, 2019 were as follows (in thousands): December 31, December 31, 2020 2019 Cash and cash equivalents $ 209,575 $ 195,383 Restricted cash 1,672 1,357 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 211,247 $ 196,740 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 $1.1 million, $2.7 million and $(1.2) million for the years ended December 31, 2020, 2019 and 2018, 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 9—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. During the first quarter of 2020, as a result of the decline in oil prices due to the ongoing COVID-19 pandemic and the Organization of Petroleum Exporting Countries and Russia price war in early 2020, we identified a triggering event that indicated the fair value of goodwill within our Cementing Equipment reporting unit was less than its carrying value. Based on the results of our goodwill impairment test as of March 31, 2020, we recorded a $57.1 million impairment charge to goodwill, which is included in goodwill impairment on the consolidated statements of operations. Our goodwill impairment assessment as of October 31, 2020, did not identify a triggering event that indicates the fair values of our reporting units were less than their carrying values. 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, the terminal growth rate 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 March 31, 2020 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 $4.3 million. No goodwill impairment was recorded for year ended December 31, 2018. At December 31, 2020, goodwill is allocated to our reportable segments as follows: Cementing Equipment - approximately $24.1 million; Tubular Running Services - approximately $18.7 million. See Note 9—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 17 —Severance and Other Charges (Credits), net for additional information. Income Taxes We operate under many legal forms in approximately 40 countries. As a result, we are subject to many U.S. and non-U.S. 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, 2020 and 2019 (in thousands): December 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Total Gross Carrying Amount Accumulated Amortization Total Customer relationships $ 28,300 $ (26,324) $ 1,976 $ 32,890 $ (23,946) $ 8,944 Intellectual property 13,860 (7,939) 5,921 14,029 (6,002) 8,027 Total intangible assets $ 42,160 $ (34,263) $ 7,897 $ 46,919 $ (29,948) $ 16,971 Our intangible assets are primarily associated with our Cementing Equipment segment. Amortization expense for intangibles assets was $4.4 million, $10.8 million and $10.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. During the first quarter of 2020, the results of the Company's test for impairment of goodwill in the Cementing Equipment segment as a result of the negative market indicators was a triggering event that indicated that our intangible assets in this segment were impaired. Impairment testing performed in the first quarter resulted in the determination that certain intangible assets were not recoverable and that the estimated fair value was below the carrying value. As a result, during the year ended December 31, 2020, impairment charges of $4.7 million were recorded associated with certain customer relationships and intellectual property intangible assets in our Cementing Equipment segment, which are included in severance and other charges (credits), net on the consolidated statements of operations. 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. No intangible asset impairment was recorded during the year ended December 31, 2018. As of December 31, 2020, estimated amortization expense for our remaining intangible assets for each of the next five years was as follows (in thousands): Period Amount 2021 $ 3,718 2022 677 2023 665 2024 606 2025 604 Thereafter 1,627 Total $ 7,897 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 17—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 $65.8 million, $82.0 million and $100.5 million for the years ended December 31, 2020, 2019 and 2018, 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 consists of commercial paper classified as held-to-maturity. 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 general and administrative 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 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. We adopted the guidance on January 1, 2020, and the adoption did not have a material impact on our consolidated financial statements. The new credit loss standard is expected to accelerate recognition of credit losses on our accounts receivable. See Note 3—Accounts Receivable, net for additional information regarding allowance for credit losses on our accounts receivable. 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. 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, 2020 | |
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 13 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, 2020 December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 28,116 $ 32,585 Liabilities Current Operating Current portion of operating lease liabilities 7,832 7,925 Noncurrent Operating Non-current operating lease liabilities 21,208 24,969 Total lease liabilities $ 29,040 $ 32,894 Our short-term lease expense was $3.9 million for the year ended December 31, 2020 and $3.6 million for the year ended December 31, 2019. Year Ended Year Ended Long-term Lease Cost (in thousands) December 31, 2020 December 31, 2019 Operating lease cost (a) $ 10,202 $ 11,674 Sublease income $ (273) $ (533) (a) Includes variable lease costs, which are immaterial. Year Ended Year Ended Other Information (in thousands) December 31, 2020 December 31, 2019 Cash paid for amounts included in measurement of lease liabilities Operating cash flows from operating leases $ 11,880 $ 10,750 Right-of-use assets obtained in an exchange for lease obligations Operating leases $ 5,814 $ 7,393 Lease Term and Discount Rate December 31, 2020 December 31, 2019 Weighted average remaining lease term (years) Operating leases 5.54 6.06 Weighted average discount rate Operating leases 13.29% 10.47% Maturity of Operating Lease Liabilities (in thousands) December 31, 2020 2021 $ 10,378 2022 8,475 2023 6,367 2024 3,985 2025 2,957 Thereafter 7,834 Total lease payments 39,996 Less: interest 10,956 Present value of lease liabilities $ 29,040 |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable at December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Trade accounts receivable, net of allowance for credit losses of $3,857 and $5,129, respectively $ 65,684 $ 101,718 Unbilled receivables 26,215 43,422 Taxes receivable 14,292 18,516 Affiliated (1) 549 549 Other receivables 3,867 2,489 Total accounts receivable, net $ 110,607 $ 166,694 (1) Amounts represent expenditures on behalf of non-consolidated affiliates. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net Inventories at December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Pipe and connectors, net of allowance of $16,819 and $18,287, respectively $ 22,642 $ 21,779 Finished goods, net of allowance of $84 and $485, respectively 22,715 25,628 Work in progress 1,730 3,663 Raw materials, components and supplies 34,631 27,759 Total inventories, net $ 81,718 $ 78,829 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 (in thousands): December 31, Estimated Useful Lives in Years 2020 2019 Land — $ 30,869 $ 30,724 Land improvements 8-15 7,620 7,193 Buildings and improvements 13-39 121,105 116,182 Rental machinery and equipment 2-7 897,398 882,979 Machinery and equipment - other 7 54,842 60,182 Furniture, fixtures and computers 3-5 16,928 17,251 Automobiles and other vehicles 5 25,948 28,734 Leasehold improvements 7-15,or lease term if shorter 12,773 14,258 Construction in progress - machinery and equipment — 24,381 46,564 1,191,864 1,204,067 Less: Accumulated depreciation (919,157) (875,635) Total property, plant and equipment, net $ 272,707 $ 328,432 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 second quarter of 2019, we sold a building classified as held for sale for $0.2 million and recorded an immaterial loss. 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, we sold a building classified as held for sale for $0.3 million and recorded an immaterial loss. Also 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 second quarter of 2020, we sold a building classified as held for sale for $5.4 million and recorded a gain of $0.6 million. During the third quarter of 2020, we determined a building no longer met the held for sale criteria, and reclassified the fair value of $5.3 million from assets held for sale to property, plant and equipment on our consolidated balance sheets. During the fourth quarter of 2020, we sold a building classified as held for sale for $0.7 million and recorded an immaterial gain. During the year ended December 31, 2020, we recorded fixed asset impairment charges of $15.7 million primarily associated with construction in progress in our Cementing Equipment segment, which is included in severance and other charges (credits), net on our consolidated statements of operations. During the first quarter of 2020, the results of the Company's test for impairment of goodwill in the Cementing Equipment segment as a result of negative market indicators was a triggering event that indicated that our long-lived tangible assets in this segment were impaired. Impairment testing performed in the first quarter resulted in the determination that certain long-lived assets were not recoverable and that the estimated fair value was below the carrying value. 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 Service segment, which is included in severance and other charges (credits), net on our consolidated statement of operations. No impairments were recognized during the year ended December 31, 2018. Please see Note 17—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, 2020, 2019 and 2018 (in thousands): December 31, 2020 2019 2018 Cost of revenue Services $ 63,511 $ 80,072 $ 93,280 Products 701 1,511 4,354 General and administrative expenses 5,957 11,217 13,658 Total $ 70,169 $ 92,800 $ 111,292 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets at December 31, 2020 and 2019 consisted of the following (in thousands): December 31, 2020 2019 Cash surrender value of life insurance policies (1) $ 26,167 $ 27,313 Deposits 2,182 2,119 Other 2,510 3,805 Total other assets $ 30,859 $ 33,237 (1) See Note 9—Fair Value Measurements for additional information. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities at December 31, 2020 and 2019, consisted of the following (in thousands): December 31, 2020 2019 Accounts payable $ 22,277 $ 16,793 Accrued compensation 23,212 23,988 Accrued property and other taxes 14,420 20,099 Accrued severance and other charges 2,666 5,837 Income taxes 16,029 19,166 Affiliated (1) 2,513 1,694 Accrued purchase orders and other 18,869 32,744 Total accounts payable and accrued liabilities $ 99,986 $ 120,321 (1) Represents amounts owed to non-consolidated affiliates. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 , FINV had no borrowings outstanding under the ABL Credit Facility, letters of credit outstanding of $10.3 million and availability of $24.2 million. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019, were as follows (in thousands): Quoted Prices Significant Significant (Level 1) (Level 2) (Level 3) Total December 31, 2020 Assets: Investments: Cash surrender value of life insurance policies - deferred compensation plan $ — $ 26,167 $ — $ 26,167 Marketable securities - other 3 — — 3 Liabilities: Deferred compensation plan — 20,271 — 20,271 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 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, 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, terminal growth rates 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, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives From time to time 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. We had no foreign currency derivative contracts outstanding as of December 31, 2020. As of December 31, 2019, 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 The following table summarizes the location and fair value amounts of all derivative contracts in the consolidated balance sheets as of December 31, 2020 and 2019 (in thousands): Derivatives not designated as Hedging Instruments Consolidated Balance Sheet Location December 31, 2020 December 31, 2019 Foreign currency contracts Accounts payable and accrued liabilities $ — $ (324) 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, 2020, 2019 and 2018 (in thousands): Derivatives not designated as Hedging Instruments Location of gain (loss) recognized in income on derivative contracts December 31, 2020 December 31, 2019 December 31, 2018 Unrealized gain (loss) on foreign currency contracts Other income, net $ — $ (222) $ 386 Realized gain on foreign currency contracts Other income, net 1,475 320 1,661 Total net gain on foreign currency contracts $ 1,475 $ 98 $ 2,047 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, 2020 and 2019 (in thousands): Derivative Asset Positions Derivative Liability Positions December 31, December 31, 2020 2019 2020 2019 Gross position - asset / (liability) $ — $ 127 $ — $ (451) Netting adjustment — (127) — 127 Net position - asset / (liability) $ — $ — $ — $ (324) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
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, $2.7 million and $6.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020 , $3.6 million of our operating lease right-of-use assets and $5.0 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 shares of Preferred Stock into shares of our common stock on August 26, 2016, in connection with their delivery to FINV of all of their interests in FICV (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 the 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 to Mosing Holdings of 85% of the net cash savings, if any, in U.S. federal, state and local income tax and franchise tax that FINV actually realizes (or is 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 FINV 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, if any. Payments FINV makes 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 FINV’s actual tax liability to the amount FINV would have been required to pay had it 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 FINV generates in the future. As of December 31, 2020, FINV has had 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 FINV’s 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 FINV makes the termination payment specified by the TRA. If FINV elects to terminate the TRA early, which it may do in its sole discretion (or if it terminates early 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 the tax attributes subject to the TRA), 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, and may materially exceed, the actual realization, if any, of any cash tax savings from the tax benefits to which the payment relates. 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, 2020, the estimated termination payment would be approximately $68.0 million (calculated using a discount rate of 4.45%). 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, 2020 | |
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, 2020 2019 2018 Numerator Net loss $ (156,220) $ (235,329) $ (90,733) Denominator Basic and diluted weighted average common shares (1) 226,042 225,159 223,999 Loss per common share: Basic and diluted $ (0.69) $ (1.05) $ (0.41) (1) Approximate number of shares of unvested restricted stock units and stock to be issued pursuant to the ESPP that 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. 1,048 737 922 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 9,031,242 shares remained available for issuance. Restricted Stock Units Upon completion of the IPO and pursuant to the LTIP, we began granting restricted stock units. All RSUs granted under the LTIP vest ratably over a period of one 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, 2020, 2019 and 2018 was $9.9 million, $11.4 million and $9.5 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, 2020, 2019 and 2018 was $8.0 million, $8.7 million and $8.9 million, respectively. The total fair value of RSUs vested during the years ended December 31, 2020, 2019 and 2018 was $9.6 million, $7.1 million and $6.7 million, respectively. Unamortized stock compensation expense as of December 31, 2020, relating to RSUs totaled approximately $9.0 million, which will be expensed over a weighted average period of 1.3 years. Non-vested RSUs outstanding as of December 31, 2020 and the changes during the year were as follows: Number of Weighted Average Non-vested at December 31, 2019 2,460,800 $ 6.65 Granted 2,928,737 3.38 Vested (1,465,069) 6.58 Forfeited (325,569) 4.95 Non-vested at December 31, 2020 3,598,899 $ 4.18 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 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 25th percentile; (ii) 50% of the Target Level if the Company achieves a rank in the 25th percentile (the threshold level); (iii) 100% of the Target Level if the Company achieves a rank in the 50th percentile (the target level); (iv) 150% of the Target Level if the Company achieves a rank in the 75th percentile; and 200% of the Target Level if the Company achieves a rank in the 90th percentile and above (the maximum level). (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 2020, we granted PRSUs with a fair value of $3.0 million or 676,615 units (“Target Level”). The performance period for these grants is the three year period from January 1, 2020 to December 31, 2022 (“Performance Period”), but with separate one-year achievement periods from January 1, 2020 to December 31, 2020, January 1, 2021 to December 31, 2021, and January 1, 2022 to December 31, 2022, resulting in a weighted average payout at the end of the Performance Period. The weighted average assumptions for the PRSUs granted in 2020 are as follows: 2020 Total expected term (in years) 2.87 Expected volatility 46.2% Risk-free interest rate 1.36% Correlation range 17.4% to 82.9% 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 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 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, 2020, 2019 and 2018 was $2.6 million, $2.0 million and $1.2 million, respectively. The total fair value of PRSUs vested during the year ended December 31, 2020, was $1.5 million. There were no PRSU vestings during the years ended December 31, 2019 and 2018. Unamortized stock compensation expense as of December 31, 2020, relating to PRSUs totaled approximately $3.4 million, which will be expensed over a weighted average period of 1.75 years. Non-vested PRSUs outstanding as of December 31, 2020, and the changes during the year were as follows: Number of Weighted Average Non-vested at December 31, 2019 788,833 $ 8.13 Granted 676,615 4.40 Vested (163,750) 9.04 Forfeited (14,611) 7.79 Non-vested at December 31, 2020 1,287,087 $ 5.96 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 1.8 million shares were available for issuance as of December 31, 2020. Shares issued to our employees under the ESPP totaled 340,950 in 2020 and 389,284 shares in 2019. For the years ended December 31, 2020, 2019 and 2018, we recognized $0.4 million, $0.6 million and $0.5 million of compensation expense related to stock purchased under the ESPP, respectively. In January 2020, we issued 125,893 shares of our common stock to our employees under this plan to satisfy the employee purchase period from July 1, 2019 to December 31, 2019, which increased our common stock outstanding. In July 2020, we issued 215,057 shares of our common stock to our employees under this plan to satisfy the employee purchase period from January 1, 2020 to June 30, 2020, which increased our common stock outstanding. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
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. Prior to May 21, 2020, we matched 100% of the first 3% of eligible compensation an employee contributed to the Plan up to the annual allowable IRS limit. Additionally, the Company provided a 50% match on any employee contributions between 4% to 6% of eligible compensation. Effective May 21, 2020, the Safe Harbor Matching Contribution was eliminated. Our matching contributions to the Plan totaled $2.2 million, $5.0 million and $4.5 million for the years ended December 31, 2020, 2019 and 2018, 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 6—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, 2020 and 2019. The total liability recorded at December 31, 2020 and 2019, related to the EDC Plan was $20.3 million and $23.3 million, respectively, and was included in other noncurrent liabilities on the consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Loss before income taxes was comprised of the following for the periods indicated (in thousands): Year Ended December 31, 2020 2019 2018 United States $ (154,144) $ (225,653) $ (85,342) Foreign (6,157) 14,118 (8,341) Loss before income taxes $ (160,301) $ (211,535) $ (93,683) 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, 2020 2019 2018 Current U.S. federal $ (17,582) $ — $ — U.S. state and local — 209 7 Foreign 12,876 21,975 11,677 Total current (4,706) 22,184 11,684 Deferred U.S. federal (2,515) 444 — Foreign 3,140 1,166 (14,634) Total deferred 625 1,610 (14,634) Total income tax expense (benefit) $ (4,081) $ 23,794 $ (2,950) The variance in effective tax rates compared to prior periods is due primarily to the beneficial impact in the current year of provisions from the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which allows corporations with net operating losses (“NOLs”) incurred in 2018, 2019 and 2020 to carry back such NOLs to each of the five years preceding the year of the NOL, beginning with the earliest year in which there is taxable income, and claim an income tax refund in the applicable carryback year. As a result of the NOL carryback provision in the CARES Act, we were able to recognize an income tax refund of $17.5 million which was received in the third quarter of 2020. A reconciliation of the differences between the income tax provision computed at the 21% U.S. statutory rate in effect at December 31, 2020 and the reported provision for income taxes for the periods indicated is as follows (in thousands): Year Ended December 31, 2020 2019 2018 Income tax benefit at statutory rate $ (33,663) $ (44,422) $ (19,673) Branch profits tax (8,015) (12,129) (4,267) State taxes, net of federal benefit (3,206) 154 (27) Restricted stock units tax shortfall 1,695 405 1,025 Taxes on foreign earnings at higher rates 11,399 14,427 13,095 Effect of tax rate change — — (2,929) Effect of moving activity to higher tax rate jurisdiction — — (14,620) Management fee charged to international operations 4,848 3,455 1,515 Increase in valuation allowances 34,005 37,802 22,892 Goodwill impairment (1,406) 25,677 — Return-to-provision adjustments (2,299) (524) (521) Foreign tax credit (6,574) (5,707) — Other (865) 4,656 560 Total income tax expense (benefit) $ (4,081) $ 23,794 $ (2,950) 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, 2020 2019 Deferred tax assets Foreign net operating loss $ 23,744 $ 17,121 U.S. net operating loss 105,802 104,105 Research and development credit 1,156 1,016 Foreign tax credit carryover 2,322 422 Intangibles 17,536 9,365 Inventory 2,615 2,280 Property and equipment 22,565 16,161 Investment in partnership 48,973 24,372 Other 913 1,442 Valuation allowance (168,174) (130,010) Total deferred tax assets 57,452 46,274 Deferred tax liabilities Investment in partnership (40,970) (23,728) Property and equipment — (1,253) Goodwill — (7,297) Other — (329) Total deferred liabilities (40,970) (32,607) Net deferred tax assets $ 16,482 $ 13,667 As of December 31, 2020, we have income tax NOL carryforwards related to both our U.S. and non-U.S. operations of approximately $476 million. In addition, we have research and development tax credit carryforwards of approximately $1.2 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 2021 - 2025 $ — $ 21,230 $ — 2026 - 2030 — 5,648 — 2031 - 2039 168,163 335 1,156 Does not expire 209,702 70,668 — $ 377,865 $ 97,881 $ 1,156 The valuation allowance on our deferred tax asset positions increased from $130.0 million to $168.2 million during 2020 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 utilized. It is our intention that all cash and earnings of our subsidiaries as of December 31, 2020, 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. A reconciliation of unrecognized tax benefits as of December 31, 2020 is as follows (in thousands): 2020 Balance at December 31, 2019 $ 342 Increase from positions taken in prior periods 20,327 Increase from positions taken in current period 7,012 Settlements (527) Balance at December 31, 2020 $ 27,154 Approximately $3 million of the uncertain tax positions, if recognized in the future, would impact our effective tax rate. Approximately $24.1 million of our reserve relates to certain deductions and would only impact our rate if we were subsequently able to utilize operating loss carry-forwards. We have elected to classify interest and penalties incurred on income taxes as income tax expense. We do not foresee resolution of these positions in the coming twelve months. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
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 $26.6 million at December 31, 2020. 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, 2020 and December 31, 2019. 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. |
Severance and Other Charges (Cr
Severance and Other Charges (Credits), net | 12 Months Ended |
Dec. 31, 2020 | |
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 and other asset impairments 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, 2020 2019 2018 Severance and other costs $ 12,284 $ 9,744 $ 4,552 Fixed asset impairments and retirements 15,664 32,916 — Inventory impairments 367 4,471 — Intangible asset impairments 4,708 3,299 — Accounts receivable write-off (recovery) — — (4,862) $ 33,023 $ 50,430 $ (310) 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, 2020, our outstanding liability associated with our current program was approximately $2.7 million and included severance payments and other employee-related separation costs. In addition, we also incurred costs associated with strategic initiatives to investigate opportunities for long-term shareholder growth. Below is a reconciliation of our employee separation liability balance (in thousands): Tubular Running Services Tubulars Cementing Equipment Corporate Total Balance at December 31, 2019 $ 2,000 $ 19 $ 1,632 $ 2,186 $ 5,837 Additions for costs expensed 6,621 553 1,152 3,958 12,284 Severance and other payments (7,781) (175) (1,827) (4,448) (14,231) Other adjustments (586) — (21) (617) (1,224) Balance at December 31, 2020 $ 254 $ 397 $ 936 $ 1,079 $ 2,666 Fixed asset impairments and retirements : 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. During the year ended December 31, 2020, we recorded fixed asset impairment charges of $15.7 million primarily associated with construction in progress in our Cementing Equipment segment. Please see Note 5—Property, Plant and Equipment for additional details. Inventory impairments : 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. During the year ended December 31, 2020, certain inventories in our Cementing Equipment segment were determined to have costs that exceeded their net realizable values, resulting in a charge of $0.4 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. During the year ended December 31, 2020, we identified certain intangible assets where the carrying value exceeded the fair value in the Cementing Equipment segment, resulting in an impairment charge of $4.7 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 Angola. 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, 2020 | |
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, 2020 2019 2018 Cash paid for interest $ 1,096 $ 1,005 $ 273 Cash paid (received) for income taxes, net of refunds (2,512) 13,330 1,848 Non-cash transactions: Change in accruals related to purchases of property, plant and equipment and intangibles $ (4,832) $ 781 $ 5,910 Financed insurance premium 1,910 — 6,798 Net transfers from inventory to property, plant and equipment 1,967 3,190 4,529 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Reporting Segments We are comprised of three reportable segments: Tubular Running Services (“TRS”) segment, Tubulars segment and Cementing Equipment (“CE”) segment. 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 40 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, 2020 Tubular Running Services Tubulars Cementing Equipment Consolidated United States $ 84,192 $ 34,318 $ 36,731 $ 155,241 International 185,519 19,350 30,248 235,117 Total Revenue $ 269,711 $ 53,668 $ 66,979 $ 390,358 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 Revenue by geographic area was as follows (in thousands): Year Ended December 31, 2020 2019 2018 United States $ 155,241 $ 293,172 $ 280,595 Europe/Middle East/Africa 101,693 155,278 127,968 Latin America 87,517 72,720 46,553 Asia Pacific 34,094 35,909 35,327 Other countries 11,813 22,841 32,050 Total Revenue $ 390,358 $ 579,920 $ 522,493 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. One customer accounted for 13% of our revenue for the year ended December 31, 2020. All three of our segments generated revenue from this customer. No single customer accounted for more than 10% of our revenue for the years ended December 31, 2019 and 2018. The revenue generated in the Netherlands was immaterial for the years ended December 31, 2020, 2019 and 2018. Other than the United States, no individual country represented more than 10% of our revenue for the years ended December 31, 2020, 2019 and 2018. 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 chief operating decision maker (“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, 2020 2019 2018 Segment Adjusted EBITDA: Tubular Running Services $ 22,171 $ 85,601 $ 62,515 Tubulars 7,765 11,575 11,246 Cementing Equipment 10,780 14,089 8,617 Corporate (1) (31,720) (53,744) (49,146) Total 8,996 57,521 33,232 Goodwill impairment (57,146) (111,108) — Severance and other (charges) credits, net (33,023) (50,430) 310 Interest income, net 712 2,265 4,243 Income tax benefit (expense) 4,081 (23,794) 2,950 Depreciation and amortization (70,169) (92,800) (111,292) Gain (loss) on disposal of assets 1,424 (1,037) 1,309 Foreign currency loss (211) (2,233) (5,675) TRA related adjustments (2) — 220 (1,359) Charges and credits (3) (10,884) (13,933) (14,451) Net loss $ (156,220) $ (235,329) $ (90,733) (1) Includes certain expenses not attributable to a particular segment, such as costs related to support functions and corporate executives. (2) Please see Note 11—Related Party Transactions for further discussion. (3) Comprised of Equity-based compensation expense (2020: $11,010; 2019: $11,280; 2018: $10,621), Mergers and acquisition expense (2020: none; 2019: none; 2018: $58), Unrealized and realized gains (2020: $1,378; 2019: $228; 2018: $1,682), Investigation-related matters (2020: $1,868; 2019: $3,838; 2018: $5,454) and Other adjustments (2020: $616; 2019: $957; 2018: none). 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, 2020 Revenue from external customers $ 269,711 $ 53,668 $ 66,979 $ — $ 390,358 Operating income (loss) (39,470) 3,223 (76,591) (50,054) (162,892) Adjusted EBITDA 22,171 7,765 10,780 (31,720) * Depreciation and amortization 51,528 3,526 9,011 6,104 70,169 Purchases of property, plant and equipment and intangibles 16,049 3,132 6,327 2,965 28,473 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 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 * 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, 2020 2019 Long-Lived Assets (PP&E) Tubular Running Services $ 90,955 $ 132,626 Tubulars 14,782 15,162 Cementing Equipment 23,441 34,184 Corporate and shared assets 143,529 146,460 Total $ 272,707 $ 328,432 December 31, 2020 2019 Long-Lived Assets (PP&E) United States $ 162,032 $ 207,227 International 110,675 121,205 $ 272,707 $ 328,432 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Summarized quarterly financial data for the years ended December 31, 2020 and 2019 is set forth below (in thousands, except per share data). First Second Third Fourth Quarter Quarter Quarter Quarter Total 2020 Revenue $ 123,492 $ 86,101 $ 84,417 $ 96,348 $ 390,358 Gross profit (loss) (1) 12,622 809 (616) 1,252 14,067 Operating loss (2) (94,208) (27,286) (23,746) (17,652) (162,892) Net loss (85,978) (34,245) (27,791) (8,206) (156,220) Loss per common share: (4) Basic and diluted $ (0.38) $ (0.15) $ (0.12) $ (0.04) $ (0.69) 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 (3) (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: (4) Basic and diluted $ (0.13) $ (0.07) $ (0.11) $ (0.75) $ (1.05) (1) Gross profit is defined as total revenue less cost of revenue less depreciation and amortization attributed to cost of revenue. (2) First quarter 2020 includes a goodwill impairment charge of $57.1 million, fixed asset impairment charges of $15.5 million and intangible asset impairments of $4.7 million. Please see Note 1—Basis of Presentation and Significant Accounting Policies and Note 17—Severance and Other Charges (Credits), net for additional details. (3) 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 17—Severance and Other Charges (Credits), net for additional details. (4) 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, 2020 | |
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 Additions / Deductions Other Balance at Year Ended December 31, 2020 Allowance for credit losses $ 5,129 $ 1,506 $ (2,802) $ 24 $ 3,857 Allowance for excess and obsolete inventory 18,772 — (1,635) (234) 16,903 Allowance for deferred tax assets 130,010 38,164 — — 168,174 Year Ended December 31, 2019 Allowance for credit losses $ 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 credit losses $ 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 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of FINV for the years ended December 31, 2020, 2019 and 2018 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. |
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 estimate current expected credit losses on our accounts receivable at each reporting date. We estimate current expected credit losses based on our credit loss history, adjusted for current factors including global economic and business conditions, oil and natural gas industry and market conditions and customer mix. Losses are charged against the allowance when the customer accounts are determined to be uncollectible. This process involves judgment and estimation, and accordingly, our results can be affected by adjustments to the allowance due to actual write-offs that differ from estimated amounts. |
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 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. |
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 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. |
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. During the first quarter of 2020, as a result of the decline in oil prices due to the ongoing COVID-19 pandemic and the Organization of Petroleum Exporting Countries and Russia price war in early 2020, we identified a triggering event that indicated the fair value of goodwill within our Cementing Equipment reporting unit was less than its carrying value. Based on the results of our goodwill impairment test as of March 31, 2020, we recorded a $57.1 million impairment charge to goodwill, which is included in goodwill impairment on the consolidated statements of operations. Our goodwill impairment assessment as of October 31, 2020, did not identify a triggering event that indicates the fair values of our reporting units were less than their carrying values. 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 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. |
Income Taxes | Income Taxes We operate under many legal forms in approximately 40 countries. As a result, we are subject to many U.S. and non-U.S. 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 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. |
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. 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. |
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 consists of commercial paper classified as held-to-maturity. 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 general and administrative 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 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. We adopted the guidance on January 1, 2020, and the adoption did not have a material impact on our consolidated financial statements. The new credit loss standard is expected to accelerate recognition of credit losses on our accounts receivable. See Note 3—Accounts Receivable, net for additional information regarding allowance for credit losses on our accounts receivable. 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. 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, 2020 | |
Accounting Policies [Abstract] | |
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, 2020 and December 31, 2019 were as follows (in thousands): December 31, December 31, 2020 2019 Cash and cash equivalents $ 209,575 $ 195,383 Restricted cash 1,672 1,357 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 211,247 $ 196,740 |
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, 2020 and December 31, 2019 were as follows (in thousands): December 31, December 31, 2020 2019 Cash and cash equivalents $ 209,575 $ 195,383 Restricted cash 1,672 1,357 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows $ 211,247 $ 196,740 |
Schedule of Intangible Assets | The following table provides information related to our intangible assets as of December 31, 2020 and 2019 (in thousands): December 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Total Gross Carrying Amount Accumulated Amortization Total Customer relationships $ 28,300 $ (26,324) $ 1,976 $ 32,890 $ (23,946) $ 8,944 Intellectual property 13,860 (7,939) 5,921 14,029 (6,002) 8,027 Total intangible assets $ 42,160 $ (34,263) $ 7,897 $ 46,919 $ (29,948) $ 16,971 |
Intangible Assets Amortization Expense | As of December 31, 2020, estimated amortization expense for our remaining intangible assets for each of the next five years was as follows (in thousands): Period Amount 2021 $ 3,718 2022 677 2023 665 2024 606 2025 604 Thereafter 1,627 Total $ 7,897 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Assets and Liabilities | Leases (in thousands) Classification December 31, 2020 December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 28,116 $ 32,585 Liabilities Current Operating Current portion of operating lease liabilities 7,832 7,925 Noncurrent Operating Non-current operating lease liabilities 21,208 24,969 Total lease liabilities $ 29,040 $ 32,894 |
Schedule of Lease Cost and Other Information | Year Ended Year Ended Long-term Lease Cost (in thousands) December 31, 2020 December 31, 2019 Operating lease cost (a) $ 10,202 $ 11,674 Sublease income $ (273) $ (533) (a) Includes variable lease costs, which are immaterial. Year Ended Year Ended Other Information (in thousands) December 31, 2020 December 31, 2019 Cash paid for amounts included in measurement of lease liabilities Operating cash flows from operating leases $ 11,880 $ 10,750 Right-of-use assets obtained in an exchange for lease obligations Operating leases $ 5,814 $ 7,393 Lease Term and Discount Rate December 31, 2020 December 31, 2019 Weighted average remaining lease term (years) Operating leases 5.54 6.06 Weighted average discount rate Operating leases 13.29% 10.47% |
Schedule of Maturity of Lease Liabilities | Maturity of Operating Lease Liabilities (in thousands) December 31, 2020 2021 $ 10,378 2022 8,475 2023 6,367 2024 3,985 2025 2,957 Thereafter 7,834 Total lease payments 39,996 Less: interest 10,956 Present value of lease liabilities $ 29,040 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable at December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Trade accounts receivable, net of allowance for credit losses of $3,857 and $5,129, respectively $ 65,684 $ 101,718 Unbilled receivables 26,215 43,422 Taxes receivable 14,292 18,516 Affiliated (1) 549 549 Other receivables 3,867 2,489 Total accounts receivable, net $ 110,607 $ 166,694 (1) Amounts represent expenditures on behalf of non-consolidated affiliates. |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories at December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Pipe and connectors, net of allowance of $16,819 and $18,287, respectively $ 22,642 $ 21,779 Finished goods, net of allowance of $84 and $485, respectively 22,715 25,628 Work in progress 1,730 3,663 Raw materials, components and supplies 34,631 27,759 Total inventories, net $ 81,718 $ 78,829 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following is a summary of property, plant and equipment at December 31, 2020 and 2019 (in thousands): December 31, Estimated Useful Lives in Years 2020 2019 Land — $ 30,869 $ 30,724 Land improvements 8-15 7,620 7,193 Buildings and improvements 13-39 121,105 116,182 Rental machinery and equipment 2-7 897,398 882,979 Machinery and equipment - other 7 54,842 60,182 Furniture, fixtures and computers 3-5 16,928 17,251 Automobiles and other vehicles 5 25,948 28,734 Leasehold improvements 7-15,or lease term if shorter 12,773 14,258 Construction in progress - machinery and equipment — 24,381 46,564 1,191,864 1,204,067 Less: Accumulated depreciation (919,157) (875,635) Total property, plant and equipment, net $ 272,707 $ 328,432 |
Summary of Depreciation and Amortization | The following table presents the depreciation and amortization associated with each line for the years ended December 31, 2020, 2019 and 2018 (in thousands): December 31, 2020 2019 2018 Cost of revenue Services $ 63,511 $ 80,072 $ 93,280 Products 701 1,511 4,354 General and administrative expenses 5,957 11,217 13,658 Total $ 70,169 $ 92,800 $ 111,292 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets at December 31, 2020 and 2019 consisted of the following (in thousands): December 31, 2020 2019 Cash surrender value of life insurance policies (1) $ 26,167 $ 27,313 Deposits 2,182 2,119 Other 2,510 3,805 Total other assets $ 30,859 $ 33,237 (1) See Note 9—Fair Value Measurements for additional information. |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities at December 31, 2020 and 2019, consisted of the following (in thousands): December 31, 2020 2019 Accounts payable $ 22,277 $ 16,793 Accrued compensation 23,212 23,988 Accrued property and other taxes 14,420 20,099 Accrued severance and other charges 2,666 5,837 Income taxes 16,029 19,166 Affiliated (1) 2,513 1,694 Accrued purchase orders and other 18,869 32,744 Total accounts payable and accrued liabilities $ 99,986 $ 120,321 (1) Represents amounts owed to non-consolidated affiliates. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | A summary of financial assets and liabilities that are measured at fair value on a recurring basis, as of December 31, 2020 and 2019, were as follows (in thousands): Quoted Prices Significant Significant (Level 1) (Level 2) (Level 3) Total December 31, 2020 Assets: Investments: Cash surrender value of life insurance policies - deferred compensation plan $ — $ 26,167 $ — $ 26,167 Marketable securities - other 3 — — 3 Liabilities: Deferred compensation plan — 20,271 — 20,271 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 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Foreign Currency Derivative Contracts Outstanding | As of December 31, 2019, 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 |
Impact of Derivative Contracts on Condensed Consolidated Balance Sheets | The following table summarizes the location and fair value amounts of all derivative contracts in the consolidated balance sheets as of December 31, 2020 and 2019 (in thousands): Derivatives not designated as Hedging Instruments Consolidated Balance Sheet Location December 31, 2020 December 31, 2019 Foreign currency contracts Accounts payable and accrued liabilities $ — $ (324) |
Impact of Derivative Contracts on Condensed Consolidated Statements of Operations | 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, 2020, 2019 and 2018 (in thousands): Derivatives not designated as Hedging Instruments Location of gain (loss) recognized in income on derivative contracts December 31, 2020 December 31, 2019 December 31, 2018 Unrealized gain (loss) on foreign currency contracts Other income, net $ — $ (222) $ 386 Realized gain on foreign currency contracts Other income, net 1,475 320 1,661 Total net gain on foreign currency contracts $ 1,475 $ 98 $ 2,047 |
Schedule of Derivative Assets, Gross and Net Fair Values | The following table presents the gross and net fair values of our derivatives as of December 31, 2020 and 2019 (in thousands): Derivative Asset Positions Derivative Liability Positions December 31, December 31, 2020 2019 2020 2019 Gross position - asset / (liability) $ — $ 127 $ — $ (451) Netting adjustment — (127) — 127 Net position - asset / (liability) $ — $ — $ — $ (324) |
Schedule of Derivative Liabilities, Gross and Net Fair Values | The following table presents the gross and net fair values of our derivatives as of December 31, 2020 and 2019 (in thousands): Derivative Asset Positions Derivative Liability Positions December 31, December 31, 2020 2019 2020 2019 Gross position - asset / (liability) $ — $ 127 $ — $ (451) Netting adjustment — (127) — 127 Net position - asset / (liability) $ — $ — $ — $ (324) |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Income (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, 2020 2019 2018 Numerator Net loss $ (156,220) $ (235,329) $ (90,733) Denominator Basic and diluted weighted average common shares (1) 226,042 225,159 223,999 Loss per common share: Basic and diluted $ (0.69) $ (1.05) $ (0.41) (1) Approximate number of shares of unvested restricted stock units and stock to be issued pursuant to the ESPP that 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. 1,048 737 922 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Non-Vested Restricted Stock Units | Non-vested RSUs outstanding as of December 31, 2020 and the changes during the year were as follows: Number of Weighted Average Non-vested at December 31, 2019 2,460,800 $ 6.65 Granted 2,928,737 3.38 Vested (1,465,069) 6.58 Forfeited (325,569) 4.95 Non-vested at December 31, 2020 3,598,899 $ 4.18 |
Schedule of Weighted Average Assumptions for PRSUs | The weighted average assumptions for the PRSUs granted in 2020 are as follows: 2020 Total expected term (in years) 2.87 Expected volatility 46.2% Risk-free interest rate 1.36% Correlation range 17.4% to 82.9% 2019 Expected term (in years) 2.86 Expected volatility 43.5% Risk-free interest rate 2.48% Correlation range 2.4% to 88.1% 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, 2020, and the changes during the year were as follows: Number of Weighted Average Non-vested at December 31, 2019 788,833 $ 8.13 Granted 676,615 4.40 Vested (163,750) 9.04 Forfeited (14,611) 7.79 Non-vested at December 31, 2020 1,287,087 $ 5.96 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Loss Before Income Taxes | Loss before income taxes was comprised of the following for the periods indicated (in thousands): Year Ended December 31, 2020 2019 2018 United States $ (154,144) $ (225,653) $ (85,342) Foreign (6,157) 14,118 (8,341) Loss before income taxes $ (160,301) $ (211,535) $ (93,683) 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, 2020 2019 2018 Current U.S. federal $ (17,582) $ — $ — U.S. state and local — 209 7 Foreign 12,876 21,975 11,677 Total current (4,706) 22,184 11,684 Deferred U.S. federal (2,515) 444 — Foreign 3,140 1,166 (14,634) Total deferred 625 1,610 (14,634) Total income tax expense (benefit) $ (4,081) $ 23,794 $ (2,950) |
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, 2020 and the reported provision for income taxes for the periods indicated is as follows (in thousands): Year Ended December 31, 2020 2019 2018 Income tax benefit at statutory rate $ (33,663) $ (44,422) $ (19,673) Branch profits tax (8,015) (12,129) (4,267) State taxes, net of federal benefit (3,206) 154 (27) Restricted stock units tax shortfall 1,695 405 1,025 Taxes on foreign earnings at higher rates 11,399 14,427 13,095 Effect of tax rate change — — (2,929) Effect of moving activity to higher tax rate jurisdiction — — (14,620) Management fee charged to international operations 4,848 3,455 1,515 Increase in valuation allowances 34,005 37,802 22,892 Goodwill impairment (1,406) 25,677 — Return-to-provision adjustments (2,299) (524) (521) Foreign tax credit (6,574) (5,707) — Other (865) 4,656 560 Total income tax expense (benefit) $ (4,081) $ 23,794 $ (2,950) |
Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities are as follows (in thousands): December 31, 2020 2019 Deferred tax assets Foreign net operating loss $ 23,744 $ 17,121 U.S. net operating loss 105,802 104,105 Research and development credit 1,156 1,016 Foreign tax credit carryover 2,322 422 Intangibles 17,536 9,365 Inventory 2,615 2,280 Property and equipment 22,565 16,161 Investment in partnership 48,973 24,372 Other 913 1,442 Valuation allowance (168,174) (130,010) Total deferred tax assets 57,452 46,274 Deferred tax liabilities Investment in partnership (40,970) (23,728) Property and equipment — (1,253) Goodwill — (7,297) Other — (329) Total deferred liabilities (40,970) (32,607) Net deferred tax assets $ 16,482 $ 13,667 |
Summary of Ultimate Utilization of NOLs | 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 2021 - 2025 $ — $ 21,230 $ — 2026 - 2030 — 5,648 — 2031 - 2039 168,163 335 1,156 Does not expire 209,702 70,668 — $ 377,865 $ 97,881 $ 1,156 |
Summary of Ultimate Utilization of Research and Development Credits | 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 2021 - 2025 $ — $ 21,230 $ — 2026 - 2030 — 5,648 — 2031 - 2039 168,163 335 1,156 Does not expire 209,702 70,668 — $ 377,865 $ 97,881 $ 1,156 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of unrecognized tax benefits as of December 31, 2020 is as follows (in thousands): 2020 Balance at December 31, 2019 $ 342 Increase from positions taken in prior periods 20,327 Increase from positions taken in current period 7,012 Settlements (527) Balance at December 31, 2020 $ 27,154 |
Severance and Other Charges (_2
Severance and Other Charges (Credits), net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 Severance and other costs $ 12,284 $ 9,744 $ 4,552 Fixed asset impairments and retirements 15,664 32,916 — Inventory impairments 367 4,471 — Intangible asset impairments 4,708 3,299 — Accounts receivable write-off (recovery) — — (4,862) $ 33,023 $ 50,430 $ (310) |
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, 2019 $ 2,000 $ 19 $ 1,632 $ 2,186 $ 5,837 Additions for costs expensed 6,621 553 1,152 3,958 12,284 Severance and other payments (7,781) (175) (1,827) (4,448) (14,231) Other adjustments (586) — (21) (617) (1,224) Balance at December 31, 2020 $ 254 $ 397 $ 936 $ 1,079 $ 2,666 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 Cash paid for interest $ 1,096 $ 1,005 $ 273 Cash paid (received) for income taxes, net of refunds (2,512) 13,330 1,848 Non-cash transactions: Change in accruals related to purchases of property, plant and equipment and intangibles $ (4,832) $ 781 $ 5,910 Financed insurance premium 1,910 — 6,798 Net transfers from inventory to property, plant and equipment 1,967 3,190 4,529 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Tubular Running Services Tubulars Cementing Equipment Consolidated United States $ 84,192 $ 34,318 $ 36,731 $ 155,241 International 185,519 19,350 30,248 235,117 Total Revenue $ 269,711 $ 53,668 $ 66,979 $ 390,358 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 Revenue by geographic area was as follows (in thousands): Year Ended December 31, 2020 2019 2018 United States $ 155,241 $ 293,172 $ 280,595 Europe/Middle East/Africa 101,693 155,278 127,968 Latin America 87,517 72,720 46,553 Asia Pacific 34,094 35,909 35,327 Other countries 11,813 22,841 32,050 Total Revenue $ 390,358 $ 579,920 $ 522,493 |
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, 2020 2019 2018 Segment Adjusted EBITDA: Tubular Running Services $ 22,171 $ 85,601 $ 62,515 Tubulars 7,765 11,575 11,246 Cementing Equipment 10,780 14,089 8,617 Corporate (1) (31,720) (53,744) (49,146) Total 8,996 57,521 33,232 Goodwill impairment (57,146) (111,108) — Severance and other (charges) credits, net (33,023) (50,430) 310 Interest income, net 712 2,265 4,243 Income tax benefit (expense) 4,081 (23,794) 2,950 Depreciation and amortization (70,169) (92,800) (111,292) Gain (loss) on disposal of assets 1,424 (1,037) 1,309 Foreign currency loss (211) (2,233) (5,675) TRA related adjustments (2) — 220 (1,359) Charges and credits (3) (10,884) (13,933) (14,451) Net loss $ (156,220) $ (235,329) $ (90,733) (1) Includes certain expenses not attributable to a particular segment, such as costs related to support functions and corporate executives. (2) Please see Note 11—Related Party Transactions for further discussion. (3) Comprised of Equity-based compensation expense (2020: $11,010; 2019: $11,280; 2018: $10,621), Mergers and acquisition expense (2020: none; 2019: none; 2018: $58), Unrealized and realized gains (2020: $1,378; 2019: $228; 2018: $1,682), Investigation-related matters (2020: $1,868; 2019: $3,838; 2018: $5,454) and Other adjustments (2020: $616; 2019: $957; 2018: none). |
Schedule of Segment Reporting Information, by Segment | 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, 2020 Revenue from external customers $ 269,711 $ 53,668 $ 66,979 $ — $ 390,358 Operating income (loss) (39,470) 3,223 (76,591) (50,054) (162,892) Adjusted EBITDA 22,171 7,765 10,780 (31,720) * Depreciation and amortization 51,528 3,526 9,011 6,104 70,169 Purchases of property, plant and equipment and intangibles 16,049 3,132 6,327 2,965 28,473 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 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 December 31, 2020 2019 Long-Lived Assets (PP&E) Tubular Running Services $ 90,955 $ 132,626 Tubulars 14,782 15,162 Cementing Equipment 23,441 34,184 Corporate and shared assets 143,529 146,460 Total $ 272,707 $ 328,432 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets | December 31, 2020 2019 Long-Lived Assets (PP&E) United States $ 162,032 $ 207,227 International 110,675 121,205 $ 272,707 $ 328,432 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summarized quarterly financial data for the years ended December 31, 2020 and 2019 is set forth below (in thousands, except per share data). First Second Third Fourth Quarter Quarter Quarter Quarter Total 2020 Revenue $ 123,492 $ 86,101 $ 84,417 $ 96,348 $ 390,358 Gross profit (loss) (1) 12,622 809 (616) 1,252 14,067 Operating loss (2) (94,208) (27,286) (23,746) (17,652) (162,892) Net loss (85,978) (34,245) (27,791) (8,206) (156,220) Loss per common share: (4) Basic and diluted $ (0.38) $ (0.15) $ (0.12) $ (0.04) $ (0.69) 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 (3) (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: (4) Basic and diluted $ (0.13) $ (0.07) $ (0.11) $ (0.75) $ (1.05) (1) Gross profit is defined as total revenue less cost of revenue less depreciation and amortization attributed to cost of revenue. (2) First quarter 2020 includes a goodwill impairment charge of $57.1 million, fixed asset impairment charges of $15.5 million and intangible asset impairments of $4.7 million. Please see Note 1—Basis of Presentation and Significant Accounting Policies and Note 17—Severance and Other Charges (Credits), net for additional details. (3) 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 $3.3 million. Please see Note 1—Basis of Presentation and Significant Accounting Policies and Note 17—Severance and Other Charges (Credits), net for additional details. (4) The sum of the individual quarterly income (losses) per share amounts may not agree with year-to-date net income (loss) per common share as each quarterly computation is based on the weighted average number of common shares outstanding during that period. |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) | Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)country | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2017USD ($) |
Accounting Policies [Line Items] | ||||||||
Income (loss) on changes in the cash surrender value of life insurance policies | $ 1,100,000 | $ 2,700,000 | $ (1,200,000) | |||||
Goodwill impairment | $ 57,100,000 | $ 111,100,000 | 57,146,000 | 111,108,000 | 0 | |||
Potential increase (decrease) on basis spread of discount rate on goodwill impairment | 0.0050 | |||||||
Impact of 50 basis points adverse change in discount rate on goodwill impairment | $ 4,300,000 | 4,300,000 | ||||||
Goodwill | 99,932,000 | $ 42,785,000 | 99,932,000 | |||||
Number of countries in which entity operates | country | 40 | |||||||
Amortization expense for intangible assets | $ 4,400,000 | 10,800,000 | 10,800,000 | |||||
Impairment of intangible assets, finite-lived | $ 4,700,000 | 3,300,000 | 4,708,000 | 3,299,000 | 0 | |||
Depreciation expense | 65,800,000 | 82,000,000 | 100,500,000 | |||||
Operating lease assets | 32,585,000 | 28,116,000 | 32,585,000 | |||||
Operating lease, liability | 32,894,000 | 29,040,000 | 32,894,000 | |||||
Adjustment to retained earnings due to new accounting guidance | (810,294,000) | (661,249,000) | (810,294,000) | (1,034,772,000) | $ (1,115,901,000) | |||
Retained Earnings (Deficit) | ||||||||
Accounting Policies [Line Items] | ||||||||
Adjustment to retained earnings due to new accounting guidance | 220,805,000 | 377,346,000 | 220,805,000 | (16,860,000) | (106,923,000) | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Accounting Policies [Line Items] | ||||||||
Adjustment to retained earnings due to new accounting guidance | 321,000 | 321,000 | 700,000 | (670,000) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings (Deficit) | ||||||||
Accounting Policies [Line Items] | ||||||||
Adjustment to retained earnings due to new accounting guidance | $ 321,000 | $ 321,000 | $ 700,000 | $ 700,000 | $ (670,000) | |||
Accounting Standards Update 2016-02 | ||||||||
Accounting Policies [Line Items] | ||||||||
Operating lease assets | 34,900,000 | |||||||
Operating lease, liability | $ 34,400,000 | |||||||
Cementing Equipment | ||||||||
Accounting Policies [Line Items] | ||||||||
Goodwill | 24,100,000 | |||||||
Tubular Running Services | ||||||||
Accounting Policies [Line Items] | ||||||||
Goodwill | $ 18,700,000 | |||||||
Number of countries in which entity operates | country | 40 | |||||||
Minimum | ||||||||
Accounting Policies [Line Items] | ||||||||
Payment term | 30 days | |||||||
Maximum | ||||||||
Accounting Policies [Line Items] | ||||||||
Payment term | 120 days |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 209,575 | $ 195,383 | ||
Restricted cash | 1,672 | 1,357 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 211,247 | $ 196,740 | $ 186,212 | $ 213,015 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 42,160 | $ 46,919 |
Accumulated Amortization | (34,263) | (29,948) |
Total | 7,897 | 16,971 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 28,300 | 32,890 |
Accumulated Amortization | (26,324) | (23,946) |
Total | 1,976 | 8,944 |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13,860 | 14,029 |
Accumulated Amortization | (7,939) | (6,002) |
Total | $ 5,921 | $ 8,027 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
2021 | $ 3,718 | |
2022 | 677 | |
2023 | 665 | |
2024 | 606 | |
2025 | 604 | |
Thereafter | 1,627 | |
Total | $ 7,897 | $ 16,971 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
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 | $ 3.9 | $ 3.6 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 13 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Operating lease assets | $ 28,116 | $ 32,585 |
Current Liabilities | ||
Operating | 7,832 | 7,925 |
Noncurrent Liabilities | ||
Operating | 21,208 | 24,969 |
Total lease liabilities | $ 29,040 | $ 32,894 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 10,202 | $ 11,674 |
Sublease income | $ (273) | $ (533) |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 11,880 | $ 10,750 |
Right-of-use assets obtained in an exchange for lease obligations | $ 5,814 | $ 7,393 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating leases, weighted average remaining lease term | 5 years 6 months 14 days | 6 years 21 days |
Operating leases, weighted average discount rate | 13.29% | 10.47% |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 10,378 | |
2022 | 8,475 | |
2023 | 6,367 | |
2024 | 3,985 | |
2025 | 2,957 | |
Thereafter | 7,834 | |
Total lease payments | 39,996 | |
Less: interest | 10,956 | |
Present value of lease liabilities | $ 29,040 | $ 32,894 |
Accounts Receivable, net - Sche
Accounts Receivable, net - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Trade accounts receivable, net of allowance for credit losses of $3,857 and $5,129, respectively | $ 65,684 | $ 101,718 |
Trade accounts receivable allowance | 3,857 | 5,129 |
Unbilled receivables | 26,215 | 43,422 |
Taxes receivable | 14,292 | 18,516 |
Affiliated | 549 | 549 |
Other receivables | 3,867 | 2,489 |
Total accounts receivable, net | $ 110,607 | $ 166,694 |
Accounts Receivable, net - Addi
Accounts Receivable, net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||
Trade accounts receivable allowance, written off | $ 2.7 | |
Accounts Receivable | Geographic Concentration Risk | United States | ||
Concentration Risk [Line Items] | ||
Concentration risk | 35.00% | 42.00% |
Accounts Receivable | Geographic Concentration Risk | Saudi Arabia | ||
Concentration Risk [Line Items] | ||
Concentration risk | 11.00% |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Pipe and connectors, net of allowance of $16,819 and $18,287, respectively | $ 22,642 | $ 21,779 |
Finished goods, net of allowance of $84 and $485, respectively | 22,715 | 25,628 |
Work in progress | 1,730 | 3,663 |
Raw materials, components and supplies | 34,631 | 27,759 |
Total inventories, net | 81,718 | 78,829 |
Pipe and connectors | ||
Inventory [Line Items] | ||
Allowance | 16,819 | 18,287 |
Finished goods | ||
Inventory [Line Items] | ||
Allowance | $ 84 | $ 485 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,191,864 | $ 1,204,067 |
Less: Accumulated depreciation | (919,157) | (875,635) |
Total property, plant and equipment, net | 272,707 | 328,432 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 30,869 | 30,724 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,620 | 7,193 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 121,105 | 116,182 |
Rental machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 897,398 | 882,979 |
Machinery and equipment - other | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Property, plant and equipment, gross | $ 54,842 | 60,182 |
Furniture, fixtures and computers | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 16,928 | 17,251 |
Automobiles and other vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Property, plant and equipment, gross | $ 25,948 | 28,734 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 12,773 | 14,258 |
Construction in progress - machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 24,381 | $ 46,564 |
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 | Rental machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 2 years | |
Minimum | Furniture, fixtures and computers | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 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 | Rental machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Maximum | Furniture, fixtures and computers | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 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 | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||||||||||
Proceeds from sale of assets | $ 8,319,000 | $ 791,000 | $ 7,089,000 | ||||||||
Property, plant and equipment, transfers increase (decrease) | $ 5,300,000 | 1,967,000 | 3,190,000 | 4,529,000 | |||||||
Fixed asset impairment | $ 15,500,000 | $ 28,800,000 | $ 15,664,000 | 32,916,000 | $ 0 | ||||||
Buildings and improvements | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Assets held-for-sale, net book value | $ 5,300,000 | $ 1,100,000 | |||||||||
Proceeds from sale of assets | $ 700,000 | $ 5,400,000 | 300,000 | $ 200,000 | |||||||
Assets held-for-sale, impairment loss | $ 4,000,000 | ||||||||||
Gain on sale of building classified as held for sale | $ 600,000 | ||||||||||
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 - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 70,169 | $ 92,800 | $ 111,292 |
Services | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 63,511 | 80,072 | 93,280 |
Products | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 701 | 1,511 | 4,354 |
General and administrative expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 5,957 | $ 11,217 | $ 13,658 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Cash surrender value of life insurance policies | $ 26,167 | $ 27,313 |
Deposits | 2,182 | 2,119 |
Other | 2,510 | 3,805 |
Total other assets | $ 30,859 | $ 33,237 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 22,277 | $ 16,793 |
Accrued compensation | 23,212 | 23,988 |
Accrued property and other taxes | 14,420 | 20,099 |
Accrued severance and other charges | 2,666 | 5,837 |
Income taxes | 16,029 | 19,166 |
Affiliated | 2,513 | 1,694 |
Accrued purchase orders and other | 18,869 | 32,744 |
Total accounts payable and accrued liabilities | $ 99,986 | $ 120,321 |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) - ABL Credit Facility | Nov. 05, 2018USD ($)day | Dec. 31, 2020USD ($) |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Covenant, consolidated EBITDA, minimum | 1 | |
Covenant, availability under facility, triggering event, consecutive number of days (at least) | day | 2 | |
Covenant, minimum fixed charges amount | $ 12,500,000 | |
Covenant, minimum fixed charges percentage | 15.00% | |
Covenant, availability under facility, post triggering event, consecutive number of days | day | 30 | |
Revolving Credit Facility | Lines of credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit, amount outstanding | $ 10,300,000 | |
Revolving Credit Facility | Secured Debt | ||
Line of Credit Facility [Line Items] | ||
Expiration period | 5 years | |
Maximum borrowing capacity | $ 100,000,000 | |
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 | $ 24,200,000 | |
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 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Cash surrender value of life insurance policies - deferred compensation plan | $ 26,167 | $ 27,313 |
Marketable securities - other | 3 | 8 |
Liabilities: | ||
Derivative financial instruments | 0 | 324 |
Deferred compensation plan | ||
Liabilities: | ||
Deferred compensation plan | 20,271 | 23,251 |
Quoted Prices in Active Markets (Level 1) | ||
Investments: | ||
Cash surrender value of life insurance policies - deferred compensation plan | 0 | 0 |
Marketable securities - other | 3 | 8 |
Liabilities: | ||
Derivative financial instruments | 0 | |
Quoted Prices in Active Markets (Level 1) | Deferred compensation plan | ||
Liabilities: | ||
Deferred compensation plan | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Investments: | ||
Cash surrender value of life insurance policies - deferred compensation plan | 26,167 | 27,313 |
Marketable securities - other | 0 | 0 |
Liabilities: | ||
Derivative financial instruments | 324 | |
Significant Other Observable Inputs (Level 2) | Deferred compensation plan | ||
Liabilities: | ||
Deferred compensation plan | 20,271 | 23,251 |
Significant Unobservable Inputs (Level 3) | ||
Investments: | ||
Cash surrender value of life insurance policies - deferred compensation plan | 0 | 0 |
Marketable securities - other | 0 | 0 |
Liabilities: | ||
Derivative financial instruments | 0 | |
Significant Unobservable Inputs (Level 3) | Deferred compensation plan | ||
Liabilities: | ||
Deferred compensation plan | $ 0 | $ 0 |
Derivatives - Foreign Currency
Derivatives - Foreign Currency Derivative Contracts Outstanding (Details) - Not Designated as Hedging Instrument - Foreign currency contracts $ in Thousands | Dec. 31, 2019USD ($)$ / £$ / kr$ / €$ / $ |
Canadian dollar | |
Derivative [Line Items] | |
Notional amount | $ 948 |
Contractual exchange rate | $ / $ | 1.3182 |
Euro | |
Derivative [Line Items] | |
Notional amount | $ 9,279 |
Contractual exchange rate | $ / € | 1.1180 |
Norwegian krone | |
Derivative [Line Items] | |
Notional amount | $ 11,027 |
Contractual exchange rate | $ / kr | 9.0688 |
Pound sterling | |
Derivative [Line Items] | |
Notional amount | $ 16,057 |
Contractual exchange rate | $ / £ | 1.3381 |
Derivatives - Impact of Derivat
Derivatives - Impact of Derivative Contracts on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Derivative liability | $ 0 | $ (324) |
Foreign currency contracts | Not Designated as Hedging Instrument | Accounts payable and accrued liabilities | ||
Derivative [Line Items] | ||
Derivative liability | $ 0 | $ (324) |
Derivatives - Impact of Deriv_2
Derivatives - Impact of Derivatives Contracts on Condensed Consolidated Statements of Operations (Details) - Other income, net - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrealized gain (loss) on foreign currency contracts | |||
Derivative [Line Items] | |||
Gain (loss) on foreign currency contracts | $ 0 | $ (222) | $ 386 |
Realized gain on foreign currency contracts | |||
Derivative [Line Items] | |||
Gain (loss) on foreign currency contracts | 1,475 | 320 | 1,661 |
Foreign currency contracts | |||
Derivative [Line Items] | |||
Gain (loss) on foreign currency contracts | $ 1,475 | $ 98 | $ 2,047 |
Derivatives - Gross and Net Fai
Derivatives - Gross and Net Fair Value of Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Asset Positions | ||
Gross position - asset / (liability) | $ 0 | $ 127 |
Netting adjustment | 0 | (127) |
Net position - asset / (liability) | 0 | 0 |
Derivative Liability Positions | ||
Gross position - asset / (liability) | 0 | (451) |
Netting adjustment | 0 | 127 |
Net position - asset / (liability) | $ 0 | $ (324) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | Dec. 18, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 26, 2016 |
Related Party Transaction [Line Items] | |||||
Operating lease assets | $ 28,116 | $ 32,585 | |||
Operating lease, liability | 29,040 | 32,894 | |||
Estimated termination payment | $ 68,000 | ||||
Tax receivable agreement liability, discount rate | 4.45% | ||||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Rent expense | $ 2,700 | $ 2,700 | |||
Rent expense | $ 6,500 | ||||
Operating lease assets | 3,600 | ||||
Operating lease, liability | $ 5,000 | ||||
Affiliated Entity | Mosing Holdings | |||||
Related Party Transaction [Line Items] | |||||
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator | |||||||||||
Net loss | $ (8,206) | $ (27,791) | $ (34,245) | $ (85,978) | $ (168,093) | $ (23,789) | $ (15,160) | $ (28,287) | $ (156,220) | $ (235,329) | $ (90,733) |
Denominator | |||||||||||
Basic and diluted weighted average common shares (in shares) | 226,042 | 225,159 | 223,999 | ||||||||
Loss per common share: | |||||||||||
Basic and diluted (in USD per share) | $ (0.04) | $ (0.12) | $ (0.15) | $ (0.38) | $ (0.75) | $ (0.11) | $ (0.07) | $ (0.13) | $ (0.69) | $ (1.05) | $ (0.41) |
Antidilutive securities excluded from computation of EPS (in USD per share) | 1,048 | 737 | 922 |
Stock-Based Compensation - 2013
Stock-Based Compensation - 2013 Long-Term Incentive Plan (Details) - LTIP - Common Stock | 12 Months Ended |
Dec. 31, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
LTIP expiration period | 10 years |
Common stock, reserved for future issuance (in shares) | 20,000,000 |
Common stock, shares available for future issuance (in shares) | 9,031,242 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 8 | $ 8.7 | $ 8.9 |
Fair value of awards vested | 9.6 | 7.1 | 6.7 |
Unamortized stock compensation expense | $ 9 | ||
Compensation cost not yet recognized, period for recognition | 1 year 3 months 18 days | ||
LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 9.9 | $ 11.4 | $ 9.5 |
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 - Non-
Stock-Based Compensation - Non-Vested Share Based RSUs and PRSUs (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units (RSUs) | |||
Number of Shares | |||
Beginning balance (in shares) | 2,460,800 | ||
Granted (in shares) | 2,928,737 | ||
Vested (in shares) | (1,465,069) | ||
Forfeited (in shares) | (325,569) | ||
Ending balance (in shares) | 3,598,899 | 2,460,800 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in USD per share) | $ 6.65 | ||
Granted (in USD per share) | 3.38 | ||
Vested (in USD per share) | 6.58 | ||
Forfeited (in USD per share) | 4.95 | ||
Ending balance (in USD per share) | $ 4.18 | $ 6.65 | |
Performance Restricted Stock Units (PRSUs) | |||
Number of Shares | |||
Beginning balance (in shares) | 788,833 | ||
Granted (in shares) | 676,615 | 446,858 | 275,550 |
Vested (in shares) | (163,750) | ||
Forfeited (in shares) | (14,611) | ||
Ending balance (in shares) | 1,287,087 | 788,833 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in USD per share) | $ 8.13 | ||
Granted (in USD per share) | 4.40 | ||
Vested (in USD per share) | 9.04 | ||
Forfeited (in USD per share) | 7.79 | ||
Ending balance (in USD per share) | $ 5.96 | $ 8.13 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Restricted Stock Units (Details) - Performance Restricted Stock Units (PRSUs) | 12 Months Ended | ||
Dec. 31, 2020USD ($)award_vesting_periodshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of award achievement periods | award_vesting_period | 3 | ||
Award achievement period | 1 year | ||
Weighted volatility rate | 50.00% | ||
Fair value of performance units granted | $ 3,000,000 | $ 3,700,000 | $ 2,000,000 |
Granted (in shares) | shares | 676,615 | 446,858 | 275,550 |
Award vesting period | 3 years | 3 years | 3 years |
Stock-based compensation expense | $ 2,600,000 | $ 2,000,000 | $ 1,200,000 |
Fair value of awards vested | 1,500,000 | $ 0 | $ 0 |
Unamortized stock compensation expense | $ 3,400,000 | ||
Compensation cost not yet recognized, period for recognition | 1 year 9 months | ||
25th Percentile (Threshold Level) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award achievement period | 1 year | 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 | 1 year |
Award vesting percentage | 100.00% | ||
75th Percentile | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award achievement period | 1 year | 1 year | 1 year |
Award vesting percentage | 150.00% | ||
90th Percentile | |||
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) - Performance Restricted Stock Units (PRSUs) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total expected term (in years) | 2 years 10 months 13 days | 2 years 10 months 9 days | 2 years 10 months 9 days |
Expected volatility | 46.20% | 43.50% | 39.00% |
Risk-free interest rate | 1.36% | 2.48% | 2.35% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Correlation range | 17.40% | 2.40% | 11.00% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Correlation range | 82.90% | 88.10% | 85.70% |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2020 | Jan. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common shares issued for employee stock purchase plan (“ESPP”) (in shares) | 215,057 | 125,893 | 340,950 | 389,284 | |
ESPP expense | $ 0.4 | $ 0.6 | $ 0.5 | ||
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) | 1,800,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 1 Months Ended | 5 Months Ended | 12 Months Ended | ||
Dec. 31, 2004 | May 20, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Deferred compensation expense | $ 0 | $ 0 | $ 1,000,000 | ||
Deferred compensation liability | $ 20,300,000 | 23,300,000 | |||
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 | $ 2,200,000 | $ 5,000,000 | $ 4,500,000 | ||
401(k) Savings and Investment Plan | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional 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% | ||||
Additional employer matching contribution | 6.00% |
Income Taxes - Loss Before Inco
Income Taxes - Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
United States | $ (154,144) | $ (225,653) | $ (85,342) |
Foreign | (6,157) | 14,118 | (8,341) |
Loss before income taxes | (160,301) | (211,535) | (93,683) |
Current | |||
U.S. federal | (17,582) | 0 | 0 |
U.S. state and local | 0 | 209 | 7 |
Foreign | 12,876 | 21,975 | 11,677 |
Total current | (4,706) | 22,184 | 11,684 |
Deferred | |||
U.S. federal | (2,515) | 444 | 0 |
Foreign | 3,140 | 1,166 | (14,634) |
Total deferred | 625 | 1,610 | (14,634) |
Total income tax expense (benefit) | $ (4,081) | $ 23,794 | $ (2,950) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax refund, CARES Act | $ 17,500 | ||
Net operating loss carryforwards | $ 476,000 | ||
Deferred tax assets, valuation allowance | 168,174 | $ 130,010 | |
Uncertain tax positions if recognized in the future would impact effective tax rate | 3,000 | ||
Unrecognized tax positions related to certain deductions | 27,154 | $ 342 | |
Deductions | |||
Operating Loss Carryforwards [Line Items] | |||
Unrecognized tax positions related to certain deductions | 24,100 | ||
Research Tax Credit Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | $ 1,156 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit at statutory rate | $ (33,663) | $ (44,422) | $ (19,673) |
Branch profits tax | (8,015) | (12,129) | (4,267) |
State taxes, net of federal benefit | (3,206) | 154 | (27) |
Restricted stock units tax shortfall | 1,695 | 405 | 1,025 |
Taxes on foreign earnings at higher rates | 11,399 | 14,427 | 13,095 |
Effect of tax rate change | 0 | 0 | (2,929) |
Effect of moving activity to higher tax rate jurisdiction | 0 | 0 | (14,620) |
Management fee charged to international operations | 4,848 | 3,455 | 1,515 |
Increase in valuation allowances | 34,005 | 37,802 | 22,892 |
Goodwill impairment | (1,406) | 25,677 | 0 |
Return-to-provision adjustments | (2,299) | (524) | (521) |
Foreign tax credit | (6,574) | (5,707) | 0 |
Other | (865) | 4,656 | 560 |
Total income tax expense (benefit) | $ (4,081) | $ 23,794 | $ (2,950) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Foreign net operating loss | $ 23,744 | $ 17,121 |
U.S. net operating loss | 105,802 | 104,105 |
Research and development credit | 1,156 | 1,016 |
Foreign tax credit carryover | 2,322 | 422 |
Intangibles | 17,536 | 9,365 |
Inventory | 2,615 | 2,280 |
Property and equipment | 22,565 | 16,161 |
Investment in partnership | 48,973 | 24,372 |
Other | 913 | 1,442 |
Valuation allowance | (168,174) | (130,010) |
Total deferred tax assets | 57,452 | 46,274 |
Deferred tax liabilities | ||
Investment in partnership | (40,970) | (23,728) |
Property and equipment | 0 | (1,253) |
Goodwill | 0 | (7,297) |
Other | 0 | (329) |
Total deferred liabilities | (40,970) | (32,607) |
Net deferred tax assets | $ 16,482 | $ 13,667 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 476,000 |
U.S. NOLs | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 377,865 |
U.S. NOLs | 2021 - 2025 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
U.S. NOLs | 2026 - 2030 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 0 |
U.S. NOLs | 2031 - 2039 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 168,163 |
U.S. NOLs | Does not expire | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 209,702 |
Foreign NOLs | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 97,881 |
Foreign NOLs | 2021 - 2025 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 21,230 |
Foreign NOLs | 2026 - 2030 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,648 |
Foreign NOLs | 2031 - 2039 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 335 |
Foreign NOLs | Does not expire | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 70,668 |
R&D Credits | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | 1,156 |
R&D Credits | 2021 - 2025 | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | 0 |
R&D Credits | 2026 - 2030 | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | 0 |
R&D Credits | 2031 - 2039 | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | 1,156 |
R&D Credits | Does not expire | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | $ 0 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance at December 31, 2019 | $ 342 |
Increase from positions taken in prior periods | 20,327 |
Increase from positions taken in current period | 7,012 |
Settlements | (527) |
Balance at December 31, 2020 | $ 27,154 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Inventories | |
Long-term Purchase Commitment [Line Items] | |
Purchase commitment inventory | $ 26.6 |
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 | |||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |||||
Severance and other costs | $ 12,284,000 | $ 9,744,000 | $ 4,552,000 | ||
Fixed asset impairments and retirements | $ 15,500,000 | $ 28,800,000 | 15,664,000 | 32,916,000 | 0 |
Inventory impairments | 4,200,000 | 367,000 | 4,471,000 | 0 | |
Intangible asset impairments | $ 4,700,000 | $ 3,300,000 | 4,708,000 | 3,299,000 | 0 |
Accounts receivable write-off (recovery) | 0 | 0 | (4,862,000) | ||
Severance and other charges (credits), net | $ 33,023,000 | $ 50,430,000 | $ (310,000) |
Severance and Other Charges (_4
Severance and Other Charges (Credits), net - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |||||
Outstanding liability on severance and other costs | $ 5,837,000 | $ 2,666,000 | $ 5,837,000 | ||
Fixed asset impairment | $ 15,500,000 | 28,800,000 | 15,664,000 | 32,916,000 | $ 0 |
Inventory impairments | 4,200,000 | 367,000 | 4,471,000 | 0 | |
Intangible asset impairments | $ 4,700,000 | $ 3,300,000 | 4,708,000 | 3,299,000 | 0 |
Accounts receivable write-off (recovery) | $ 0 | $ 0 | $ (4,862,000) |
Severance and Other Charges (_5
Severance and Other Charges (Credits), net - Employee Separation Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2019 | $ 5,837 | ||
Additions for costs expensed | 12,284 | $ 9,744 | $ 4,552 |
Severance and other payments | (14,231) | ||
Other adjustments | (1,224) | ||
Balance at December 31, 2020 | 2,666 | 5,837 | |
Corporate | |||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2019 | 2,186 | ||
Additions for costs expensed | 3,958 | ||
Severance and other payments | (4,448) | ||
Other adjustments | (617) | ||
Balance at December 31, 2020 | 1,079 | 2,186 | |
Tubular Running Services | Operating segments | |||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2019 | 2,000 | ||
Additions for costs expensed | 6,621 | ||
Severance and other payments | (7,781) | ||
Other adjustments | (586) | ||
Balance at December 31, 2020 | 254 | 2,000 | |
Tubulars | Operating segments | |||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2019 | 19 | ||
Additions for costs expensed | 553 | ||
Severance and other payments | (175) | ||
Other adjustments | 0 | ||
Balance at December 31, 2020 | 397 | 19 | |
Cementing Equipment | Operating segments | |||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2019 | 1,632 | ||
Additions for costs expensed | 1,152 | ||
Severance and other payments | (1,827) | ||
Other adjustments | (21) | ||
Balance at December 31, 2020 | $ 936 | $ 1,632 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||||
Cash paid for interest | $ 1,096 | $ 1,005 | $ 273 | |
Cash paid (received) for income taxes, net of refunds | (2,512) | 13,330 | 1,848 | |
Non-cash transactions: | ||||
Change in accruals related to purchases of property, plant and equipment and intangibles | (4,832) | 781 | 5,910 | |
Financed insurance premium | 1,910 | 0 | 6,798 | |
Net transfers from inventory to property, plant and equipment | $ 5,300 | $ 1,967 | $ 3,190 | $ 4,529 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020countrycontinentsegmentft | |
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 | 40 |
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 | 13.00% |
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 | 40 |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 96,348 | $ 84,417 | $ 86,101 | $ 123,492 | $ 139,441 | $ 140,417 | $ 155,654 | $ 144,408 | $ 390,358 | $ 579,920 | $ 522,493 |
Tubular Running Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 269,711 | 400,327 | 361,045 | ||||||||
Tubulars | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 53,668 | 74,687 | 72,303 | ||||||||
Cementing Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 66,979 | 104,906 | 89,145 | ||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 155,241 | 293,172 | 280,595 | ||||||||
United States | Tubular Running Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 84,192 | 147,547 | 142,262 | ||||||||
United States | Tubulars | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 34,318 | 63,087 | 66,017 | ||||||||
United States | Cementing Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 36,731 | 82,538 | 72,316 | ||||||||
International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 235,117 | 286,748 | 241,898 | ||||||||
International | Tubular Running Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 185,519 | 252,780 | 218,783 | ||||||||
International | Tubulars | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 19,350 | 11,600 | 6,286 | ||||||||
International | Cementing Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 30,248 | 22,368 | 16,829 | ||||||||
Europe/Middle East/Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 101,693 | 155,278 | 127,968 | ||||||||
Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 87,517 | 72,720 | 46,553 | ||||||||
Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 34,094 | 35,909 | 35,327 | ||||||||
Other countries | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 11,813 | $ 22,841 | $ 32,050 |
Segment Information - EBITDA Re
Segment Information - EBITDA Reconciliation (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Adjusted EBITDA | $ 8,996,000 | $ 57,521,000 | $ 33,232,000 | ||||||||
Goodwill impairment | $ (57,100,000) | $ (111,100,000) | (57,146,000) | (111,108,000) | 0 | ||||||
Severance and other (charges) credits, net | (33,023,000) | (50,430,000) | 310,000 | ||||||||
Interest income, net | 712,000 | 2,265,000 | 4,243,000 | ||||||||
Income tax benefit (expense) | 4,081,000 | (23,794,000) | 2,950,000 | ||||||||
Depreciation and amortization | (70,169,000) | (92,800,000) | (111,292,000) | ||||||||
Gain (loss) on disposal of assets | 1,424,000 | (1,037,000) | 1,309,000 | ||||||||
Foreign currency loss | (211,000) | (2,233,000) | (5,675,000) | ||||||||
TRA related adjustments | 0 | 220,000 | (1,359,000) | ||||||||
Charges and credits | (10,884,000) | (13,933,000) | (14,451,000) | ||||||||
Net loss | $ (8,206,000) | $ (27,791,000) | $ (34,245,000) | $ (85,978,000) | $ (168,093,000) | $ (23,789,000) | $ (15,160,000) | $ (28,287,000) | (156,220,000) | (235,329,000) | (90,733,000) |
Equity-based compensation expense | 11,010,000 | 11,280,000 | 10,621,000 | ||||||||
Mergers and acquisition expense | 0 | 0 | 58,000 | ||||||||
Unrealized and realized gains (losses) | 1,378,000 | 228,000 | 1,682,000 | ||||||||
Investigation-related matters | 1,868,000 | 3,838,000 | 5,454,000 | ||||||||
Other (income) expense adjustments | (616,000) | (957,000) | 0 | ||||||||
Operating segments | Tubular Running Services | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Adjusted EBITDA | 22,171,000 | 85,601,000 | 62,515,000 | ||||||||
Depreciation and amortization | (51,528,000) | (61,036,000) | (80,009,000) | ||||||||
Operating segments | Tubulars | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Adjusted EBITDA | 7,765,000 | 11,575,000 | 11,246,000 | ||||||||
Depreciation and amortization | (3,526,000) | (2,903,000) | (3,371,000) | ||||||||
Operating segments | Cementing Equipment | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Adjusted EBITDA | 10,780,000 | 14,089,000 | 8,617,000 | ||||||||
Depreciation and amortization | (9,011,000) | (16,130,000) | (16,324,000) | ||||||||
Corporate | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Adjusted EBITDA | (31,720,000) | (53,744,000) | (49,146,000) | ||||||||
Depreciation and amortization | $ (6,104,000) | $ (12,731,000) | $ (11,588,000) |
Segment Information - Revenue f
Segment Information - Revenue from External Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenue | $ 96,348 | $ 84,417 | $ 86,101 | $ 123,492 | $ 139,441 | $ 140,417 | $ 155,654 | $ 144,408 | $ 390,358 | $ 579,920 | $ 522,493 |
Operating income (loss) | $ (17,652) | $ (23,746) | $ (27,286) | $ (94,208) | $ (165,279) | $ (14,803) | $ (12,514) | $ (20,294) | (162,892) | (212,890) | (92,881) |
Adjusted EBITDA | 8,996 | 57,521 | 33,232 | ||||||||
Depreciation and amortization | 70,169 | 92,800 | 111,292 | ||||||||
Purchases of property, plant and equipment and intangibles | 28,473 | 36,942 | 19,734 | ||||||||
Purchases of property, plant and equipment and intangibles | 56,471 | ||||||||||
Tubular Running Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 269,711 | 400,327 | 361,045 | ||||||||
Tubulars | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 53,668 | 74,687 | 72,303 | ||||||||
Cementing Equipment | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 66,979 | 104,906 | 89,145 | ||||||||
Operating segments | Tubular Running Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 269,711 | 400,327 | 361,045 | ||||||||
Operating income (loss) | (39,470) | (3,900) | (16,886) | ||||||||
Adjusted EBITDA | 22,171 | 85,601 | 62,515 | ||||||||
Depreciation and amortization | 51,528 | 61,036 | 80,009 | ||||||||
Purchases of property, plant and equipment and intangibles | 16,049 | 16,086 | |||||||||
Purchases of property, plant and equipment and intangibles | 7,824 | ||||||||||
Operating segments | Tubulars | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 53,668 | 74,687 | 72,303 | ||||||||
Operating income (loss) | 3,223 | 7,344 | 7,616 | ||||||||
Adjusted EBITDA | 7,765 | 11,575 | 11,246 | ||||||||
Depreciation and amortization | 3,526 | 2,903 | 3,371 | ||||||||
Purchases of property, plant and equipment and intangibles | 3,132 | 2,859 | |||||||||
Purchases of property, plant and equipment and intangibles | 1,838 | ||||||||||
Operating segments | Cementing Equipment | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 66,979 | 104,906 | 89,145 | ||||||||
Operating income (loss) | (76,591) | (124,597) | (9,313) | ||||||||
Adjusted EBITDA | 10,780 | 14,089 | 8,617 | ||||||||
Depreciation and amortization | 9,011 | 16,130 | 16,324 | ||||||||
Purchases of property, plant and equipment and intangibles | 6,327 | 16,374 | |||||||||
Purchases of property, plant and equipment and intangibles | 7,583 | ||||||||||
Corporate | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Operating income (loss) | (50,054) | (91,737) | (74,298) | ||||||||
Adjusted EBITDA | (31,720) | (53,744) | (49,146) | ||||||||
Depreciation and amortization | 6,104 | 12,731 | 11,588 | ||||||||
Purchases of property, plant and equipment and intangibles | $ 2,965 | $ 1,623 | |||||||||
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, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | $ 272,707 | $ 328,432 |
Operating segments | Tubular Running Services | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 90,955 | 132,626 |
Operating segments | Tubulars | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 14,782 | 15,162 |
Operating segments | Cementing Equipment | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 23,441 | 34,184 |
Corporate and Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | $ 143,529 | $ 146,460 |
Segment Information - Long-Li_2
Segment Information - Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment | $ 272,707 | $ 328,432 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment | 162,032 | 207,227 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment | $ 110,675 | $ 121,205 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 96,348,000 | $ 84,417,000 | $ 86,101,000 | $ 123,492,000 | $ 139,441,000 | $ 140,417,000 | $ 155,654,000 | $ 144,408,000 | $ 390,358,000 | $ 579,920,000 | $ 522,493,000 |
Gross profit (loss) | 1,252,000 | (616,000) | 809,000 | 12,622,000 | 16,357,000 | 20,825,000 | 25,062,000 | 19,102,000 | 14,067,000 | 81,346,000 | |
Operating loss | (17,652,000) | (23,746,000) | (27,286,000) | (94,208,000) | (165,279,000) | (14,803,000) | (12,514,000) | (20,294,000) | (162,892,000) | (212,890,000) | (92,881,000) |
Net loss | $ (8,206,000) | $ (27,791,000) | $ (34,245,000) | $ (85,978,000) | $ (168,093,000) | $ (23,789,000) | $ (15,160,000) | $ (28,287,000) | $ (156,220,000) | $ (235,329,000) | $ (90,733,000) |
Loss per common share: | |||||||||||
Basic and diluted (in USD per share) | $ (0.04) | $ (0.12) | $ (0.15) | $ (0.38) | $ (0.75) | $ (0.11) | $ (0.07) | $ (0.13) | $ (0.69) | $ (1.05) | $ (0.41) |
Goodwill impairment | $ 57,100,000 | $ 111,100,000 | $ 57,146,000 | $ 111,108,000 | $ 0 | ||||||
Fixed asset impairment | 15,500,000 | 28,800,000 | 15,664,000 | 32,916,000 | 0 | ||||||
Inventory impairments | 4,200,000 | 367,000 | 4,471,000 | 0 | |||||||
Intangible asset impairments | $ 4,700,000 | $ 3,300,000 | $ 4,708,000 | $ 3,299,000 | $ 0 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Account (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for credit losses | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 5,129 | $ 3,925 | $ 4,777 |
Additions / Charged to Expense | 1,506 | 2,047 | 348 |
Deductions | (2,802) | (843) | (1,200) |
Other | 24 | 0 | 0 |
Balance at end of period | 3,857 | 5,129 | 3,925 |
Allowance for excess and obsolete inventory | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 18,772 | 22,624 | 21,584 |
Additions / Charged to Expense | 0 | 1,677 | 1,800 |
Deductions | (1,635) | (5,839) | (760) |
Other | (234) | 310 | 0 |
Balance at end of period | 16,903 | 18,772 | 22,624 |
Allowance for deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 130,010 | 84,972 | 60,524 |
Additions / Charged to Expense | 38,164 | 45,038 | 24,448 |
Deductions | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Balance at end of period | $ 168,174 | $ 130,010 | $ 84,972 |