Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 30, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36875 | |
Entity Registrant Name | EXTERRAN CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3282259 | |
Entity Address, Address Line One | 11000 Equity Drive | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77041 | |
City Area Code | 281 | |
Local Phone Number | 836-7000 | |
Title of each class | Common Stock, $0.01 par value per share | |
Trading Symbol | EXTN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,495,520 | |
Entity Central Index Key | 0001635881 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 21,979 | $ 19,300 |
Restricted cash | 19 | 178 |
Accounts receivable, net of allowance of $5,305 and $5,474, respectively | 231,220 | 248,467 |
Inventory, net (Note 5) | 170,399 | 150,689 |
Contract assets (Note 2) | 37,207 | 91,602 |
Other current assets | 25,882 | 44,234 |
Current assets associated with discontinued operations (Note 4) | 4,028 | 11,605 |
Total current assets | 490,734 | 566,075 |
Property, plant and equipment, net (Note 6) | 931,603 | 901,577 |
Operating lease right-of-use assets (Note 3) | 29,293 | 0 |
Deferred income taxes | 10,314 | 11,370 |
Intangible and other assets, net | 85,671 | 86,371 |
Long-term assets held for sale (Note 7) | 2,142 | 0 |
Long-term assets associated with discontinued operations (Note 4) | 2,979 | 1,661 |
Total assets | 1,552,736 | 1,567,054 |
Current liabilities: | ||
Accounts payable, trade | 90,975 | 165,744 |
Accrued liabilities | 111,864 | 123,335 |
Contract liabilities (Note 2) | 105,788 | 153,483 |
Current operating lease liabilities (Note 3) | 6,547 | 0 |
Current liabilities associated with discontinued operations (Note 4) | 9,803 | 14,767 |
Total current liabilities | 324,977 | 457,329 |
Long-term debt (Note 8) | 495,347 | 403,810 |
Deferred income taxes | 1,869 | 6,005 |
Long-term contract liabilities (Note 2) | 165,188 | 101,363 |
Long-term operating lease liabilities (Note 3) | 30,256 | 0 |
Other long-term liabilities | 45,383 | 39,812 |
Long-term liabilities associated with discontinued operations (Note 4) | 617 | 5,914 |
Total liabilities | 1,063,637 | 1,014,233 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value per share; 50,000,000 shares authorized; zero issued | 0 | 0 |
Common stock, $0.01 par value per share; 250,000,000 shares authorized; 37,498,361 and 36,868,066 shares issued, respectively | 375 | 369 |
Additional paid-in capital | 745,229 | 734,458 |
Accumulated deficit | (237,401) | (208,677) |
Treasury stock — 3,997,484 and 721,280 common shares, at cost, respectively | (53,156) | (11,560) |
Accumulated other comprehensive income | 34,052 | 38,231 |
Total stockholders’ equity (Note 13) | 489,099 | 552,821 |
Total liabilities and equity | $ 1,552,736 | $ 1,567,054 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 5,305 | $ 5,474 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 37,498,361 | 36,868,066 |
Treasury stock, common shares | 3,997,484 | 721,280 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues (Note 2): | ||||
Revenues | $ 302,431 | $ 334,849 | $ 1,044,751 | $ 1,028,703 |
Costs and expenses: | ||||
Cost of sales (excluding depreciation and amortization expense) | 213,446 | 238,112 | 764,249 | 740,570 |
Selling, general and administrative | 37,702 | 45,103 | 126,790 | 133,727 |
Depreciation and amortization | 42,133 | 31,108 | 116,669 | 92,321 |
Long-lived asset impairment (Note 10) | 2,970 | 2,054 | 8,889 | 3,858 |
Restatement related charges (recoveries), net | 0 | (342) | 20 | (318) |
Restructuring and other charges (Note 11) | 1,794 | 264 | 7,966 | 1,686 |
Interest expense | 10,103 | 7,685 | 28,194 | 21,787 |
Other (income) expense, net | 2,101 | (285) | 379 | 6,339 |
Total costs and expenses | 310,249 | 323,699 | 1,053,156 | 999,970 |
Income (loss) before income taxes | (7,818) | 11,150 | (8,405) | 28,733 |
Provision for income taxes (Note 12) | 477 | 7,954 | 20,209 | 23,068 |
Income (loss) from continuing operations | (8,295) | 3,196 | (28,614) | 5,665 |
Income (loss) from discontinued operations, net of tax (Note 4) | (1,546) | 2,173 | 6,074 | 5,116 |
Net income (loss) | $ (9,841) | $ 5,369 | $ (22,540) | $ 10,781 |
Basic net income (loss) per common share (Note 15): | ||||
Income (loss) from continuing operations per common share (in dollars per share) | $ (0.25) | $ 0.09 | $ (0.82) | $ 0.16 |
Income (loss) from discontinued operations per common share (in dollars per share) | (0.04) | 0.06 | 0.17 | 0.14 |
Net income (loss) per common share (in dollars per share) | (0.29) | 0.15 | (0.65) | 0.30 |
Diluted net income (loss) per common share (Note 15): | ||||
Income (loss) from continuing operations per common share (in dollars per share) | (0.25) | 0.09 | (0.82) | 0.16 |
Income (loss) from discontinued operations per common share (in dollars per share) | (0.04) | 0.06 | 0.17 | 0.14 |
Net income (loss) per common share (in dollars per share) | $ (0.29) | $ 0.15 | $ (0.65) | $ 0.30 |
Weighted average common shares outstanding used in net income (loss) per common share (Note 15): | ||||
Basic (in shares) | 33,783 | 35,480 | 34,839 | 35,402 |
Diluted (in shares) | 33,783 | 35,544 | 34,839 | 35,469 |
Contract Operations | ||||
Revenues (Note 2): | ||||
Revenues | $ 96,261 | $ 84,828 | $ 271,645 | $ 272,808 |
Costs and expenses: | ||||
Cost of sales (excluding depreciation and amortization expense) | 34,356 | 27,768 | 93,283 | 95,525 |
Aftermarket services | ||||
Revenues (Note 2): | ||||
Revenues | 34,893 | 29,993 | 92,308 | 88,631 |
Costs and expenses: | ||||
Cost of sales (excluding depreciation and amortization expense) | 26,079 | 22,138 | 67,814 | 64,741 |
Product Sales | ||||
Revenues (Note 2): | ||||
Revenues | 171,277 | 220,028 | 680,798 | 667,264 |
Costs and expenses: | ||||
Cost of sales (excluding depreciation and amortization expense) | $ 153,011 | $ 188,206 | $ 603,152 | $ 580,304 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||||||
Net income (loss) | $ (9,841) | $ (7,305) | $ (5,394) | $ 5,369 | $ 75 | $ 5,337 | $ (22,540) | $ 10,781 |
Other comprehensive loss: | ||||||||
Foreign currency translation adjustment | (3,631) | $ 420 | $ (968) | (2,673) | $ (8,123) | $ 757 | (4,179) | (10,039) |
Comprehensive income (loss) | $ (13,472) | $ 2,696 | $ (26,719) | $ 742 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Income |
Increase (Decrease) in Stockholders' Equity | ||||||
Cumulative-effect adjustment from adoption of ASU | $ (10,021) | $ (10,021) | ||||
Beginning balance at Dec. 31, 2017 | 554,786 | $ 362 | $ 739,164 | (223,510) | $ (6,937) | $ 45,707 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 5,337 | 5,337 | ||||
Options exercised | 428 | 428 | ||||
Foreign currency translation adjustment | 757 | 757 | ||||
Treasury stock purchased | (3,440) | (3,440) | ||||
Stock-based compensation, net of forfeitures | 3,604 | 5 | 3,599 | |||
Ending balance at Mar. 31, 2018 | 551,451 | 367 | 743,191 | (228,194) | (10,377) | 46,464 |
Beginning balance at Dec. 31, 2017 | 554,786 | 362 | 739,164 | (223,510) | (6,937) | 45,707 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 10,781 | |||||
Foreign currency translation adjustment | (10,039) | |||||
Ending balance at Sep. 30, 2018 | 553,106 | 368 | 750,537 | (222,750) | (10,717) | 35,668 |
Beginning balance at Mar. 31, 2018 | 551,451 | 367 | 743,191 | (228,194) | (10,377) | 46,464 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 75 | 75 | ||||
Options exercised | 135 | 135 | ||||
Foreign currency translation adjustment | (8,123) | (8,123) | ||||
Treasury stock purchased | (41) | (41) | ||||
Stock-based compensation, net of forfeitures | 3,454 | 3,454 | ||||
Ending balance at Jun. 30, 2018 | 546,951 | 367 | 746,780 | (228,119) | (10,418) | 38,341 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 5,369 | 5,369 | ||||
Options exercised | (15) | (15) | ||||
Foreign currency translation adjustment | (2,673) | (2,673) | ||||
Treasury stock purchased | (299) | (299) | ||||
Stock-based compensation, net of forfeitures | 3,773 | 1 | 3,772 | |||
Ending balance at Sep. 30, 2018 | 553,106 | 368 | 750,537 | (222,750) | (10,717) | 35,668 |
Increase (Decrease) in Stockholders' Equity | ||||||
Cumulative-effect adjustment from adoption of ASU | (6,184) | (6,184) | ||||
Beginning balance at Dec. 31, 2018 | 552,821 | 369 | 734,458 | (208,677) | (11,560) | 38,231 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (5,394) | (5,394) | ||||
Foreign currency translation adjustment | (968) | (968) | ||||
Treasury stock purchased | (7,087) | (7,087) | ||||
Stock-based compensation, net of forfeitures | 3,996 | 6 | 3,990 | |||
Ending balance at Mar. 31, 2019 | 537,184 | 375 | 738,448 | (220,255) | (18,647) | 37,263 |
Beginning balance at Dec. 31, 2018 | 552,821 | 369 | 734,458 | (208,677) | (11,560) | 38,231 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (22,540) | |||||
Foreign currency translation adjustment | (4,179) | |||||
Ending balance at Sep. 30, 2019 | 489,099 | 375 | 745,229 | (237,401) | (53,156) | 34,052 |
Beginning balance at Mar. 31, 2019 | 537,184 | 375 | 738,448 | (220,255) | (18,647) | 37,263 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (7,305) | (7,305) | ||||
Foreign currency translation adjustment | 420 | 420 | ||||
Transfers from Archrock, Inc. | 420 | 420 | ||||
Treasury stock purchased | (14,224) | (14,224) | ||||
Stock-based compensation, net of forfeitures | 3,487 | 3,487 | ||||
Ending balance at Jun. 30, 2019 | 519,982 | 375 | 742,355 | (227,560) | (32,871) | 37,683 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (9,841) | (9,841) | ||||
Foreign currency translation adjustment | (3,631) | (3,631) | ||||
Treasury stock purchased | (20,285) | (20,285) | ||||
Stock-based compensation, net of forfeitures | 2,874 | 2,874 | ||||
Ending balance at Sep. 30, 2019 | $ 489,099 | $ 375 | $ 745,229 | $ (237,401) | $ (53,156) | $ 34,052 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (22,540) | $ 10,781 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation and amortization | 116,669 | 92,321 |
Long-lived asset impairment | 8,889 | 3,858 |
Amortization of deferred financing costs | 1,884 | 2,014 |
Income from discontinued operations, net of tax | (6,074) | (5,116) |
Provision for doubtful accounts | 0 | 658 |
Gain on sale of property, plant and equipment | (1,361) | (345) |
(Gain) loss on remeasurement of intercompany balances | (153) | 4,245 |
Loss on foreign currency derivatives | 794 | 0 |
Loss on sale of business | 0 | 1,714 |
Stock-based compensation expense | 10,357 | 10,831 |
Deferred income tax benefit | (5,812) | (4,727) |
Changes in assets and liabilities: | ||
Accounts receivable and notes | 20,582 | 14,126 |
Inventory | (24,086) | (51,067) |
Contract assets | 49,290 | (16,263) |
Other current assets | 16,537 | 5,073 |
Accounts payable and other liabilities | (63,268) | 29,116 |
Contract liabilities | 24,072 | (11,937) |
Other | (4,785) | 3,511 |
Net cash provided by continuing operations | 120,995 | 88,793 |
Net cash provided by discontinued operations | 1,967 | 1,144 |
Net cash provided by operating activities | 122,962 | 89,937 |
Cash flows from investing activities: | ||
Capital expenditures | (172,118) | (152,226) |
Proceeds from sale of property, plant and equipment | 4,282 | 2,430 |
Settlement of foreign currency derivatives | (794) | 0 |
Proceeds from sale of business | 0 | 5,000 |
Net cash used in continuing operations | (168,630) | (144,796) |
Net cash provided by discontinued operations | 0 | 66 |
Net cash used in investing activities | (168,630) | (144,730) |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 530,000 | 415,000 |
Repayments of debt | (439,338) | (365,371) |
Transfer from Archrock, Inc. | 420 | 0 |
Payments for debt issuance costs | 0 | (92) |
Proceeds from stock options exercised | 0 | 548 |
Purchases of treasury stock (Note 13) | (41,596) | (3,780) |
Net cash provided by financing activities | 49,486 | 46,305 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,298) | (3,691) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 2,520 | (12,179) |
Cash, cash equivalents and restricted cash at beginning of period | 19,478 | 49,691 |
Cash, cash equivalents and restricted cash at end of period | $ 21,998 | $ 37,512 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Note 1 - Description of Business and Basis of Presentation Description of Business Exterran Corporation (together with its subsidiaries, “Exterran Corporation,” “the Company,” “our,” “we” or “us”), a Delaware corporation formed in March 2015, is a global systems and process company offering solutions in the oil, gas, water and power markets. We are a leader in natural gas processing and treatment and compression products and services, providing critical midstream infrastructure solutions to customers throughout the world. We provide our products and services to a global customer base consisting of companies engaged in all aspects of the oil and natural gas industry, including large integrated oil and natural gas companies, national oil and natural gas companies, independent oil and natural gas producers and oil and natural gas processors, gatherers and pipeline operators. Our manufacturing facilities are located in the U.S., Singapore and the United Arab Emirates. We operate in three primary business lines: contract operations, aftermarket services and product sales. On November 3, 2015, Archrock, Inc. (named Exterran Holdings, Inc. prior to November 3, 2015) (“Archrock”) completed the spin-off (the ‘‘Spin-off”) of its international contract operations, international aftermarket services and global fabrication businesses into an independent, publicly traded company named Exterran Corporation. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Exterran Corporation included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S.”) (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP are not required in these interim financial statements and have been condensed or omitted. Management believes that the information furnished includes all adjustments of a normal recurring nature that are necessary to fairly present our consolidated financial position, results of operations and cash flows for the periods indicated. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements presented in our Annual Report on Form 10-K for the year ended December 31, 2018 . That report contains a comprehensive summary of our accounting policies. The interim results reported herein are not necessarily indicative of results for a full year. We refer to the condensed consolidated financial statements collectively as “financial statements,” and individually as “balance sheets,” “statements of operations,” “statements of comprehensive income (loss),” “statements of stockholders’ equity” and “statements of cash flows” herein. Recent Accounting Pronouncements We consider the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not listed below were assessed and determined to be not applicable. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASC 842”). The update requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by leases. Leases are now classified as either finance or operating, with classification affecting the pattern of expense recognition in the statements of operations. The update also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. On January 1, 2019, we adopted the standard using the transition method that allows us to initially apply ASC 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Additionally, we elected certain practical expedients permitted by ASC 842 in applying the lease standard upon adoption. Upon implementation of the new lease standard, we did not reassess whether a contract is or contains a lease at the date of initial application. For contracts entered into before the transition date, we used the lease classification under the accounting standards in effect prior to adoption. We also excluded initial direct costs for the measurement of the right-of-use asset at the date of initial application. As a result of this adoption, as a lessee, we recorded operating lease assets and lease liabilities of $21.2 million and $26.5 million , respectively, as of January 1, 2019. The difference between the lease assets and lease liabilities, including prepayments, was recorded as an adjustment to retained earnings. The adoption of this standard did not have a material effect on our statements of operations and cash flows. See Note 3 for the required disclosures related to the impact of adopting this standard. As a result of the adoption of the new lease guidance, the following adjustments were made to the balance sheet as of January 1, 2019 (in thousands): Impact of Changes in Accounting Policies December 31, 2018 Adjustments January 1, 2019 ASSETS Other current assets $ 44,234 $ (506 ) $ 43,728 Operating lease right-of-use assets — 21,181 21,181 Intangible and other assets, net 86,371 (353 ) 86,018 Total assets $ 1,567,054 $ 20,322 $ 1,587,376 LIABILITIES AND STOCKHOLDERS ’ EQUITY Current operating lease liabilities $ — $ 6,769 $ 6,769 Long-term operating lease liabilities — 19,737 19,737 Total liabilities 1,014,233 26,506 1,040,739 Accumulated deficit (208,677 ) (6,184 ) (214,861 ) Total stockholders’ equity 552,821 (6,184 ) 546,637 Total liabilities and stockholders’ equity $ 1,567,054 $ 20,322 $ 1,587,376 From a lessor perspective, new customer contracts entered into or modified on or after January 1, 2019 have been assessed in accordance with ASC 842 and ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”), as applicable and will be assessed accordingly in future periods. Additionally, for contracts determined to have lease and nonlease components, we have elected to apply the practical expedient to not separate the components and account for those components as a single component, if the applicable conditions are met. Furthermore, for contracts where the nonlease component is determined to be the predominant component, revenue will continue to be recognized in accordance with ASC 606. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) . The update changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of allowance for losses. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. Adoption will require a modified retrospective approach beginning with the earliest period presented. We are currently evaluating the potential impact of the update on our financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The update modifies the disclosure requirements on fair value measurements by removing, modifying and adding certain disclosure requirements. This update is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures upon issuance of the guidance and delayed adoption of the additional required disclosures is permitted until the effective date. Adoption will require a prospective or retrospective approach based on the specific amendments. We are currently evaluating the potential impact of the update on our financial statements. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 2 - Revenue On January 1, 2018, we adopted ASC 606 applying the modified retrospective method to all contracts that were not completed as of the date of adoption. We recorded a net increase to accumulated deficit of $10.0 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606. Disaggregation of Revenue The following tables present disaggregated revenue by products and services lines and by geographical regions for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Revenue by Products and Services 2019 2018 2019 2018 Contract Operations Segment: Contract operations services (1) $ 96,261 $ 84,828 $ 271,645 $ 272,808 Aftermarket Services Segment: Operation and maintenance services (1) $ 14,069 $ 14,215 $ 40,844 $ 42,812 Part sales (2) 10,208 11,301 32,197 31,511 Other services (1) 10,616 4,477 19,267 14,308 Total aftermarket services $ 34,893 $ 29,993 $ 92,308 $ 88,631 Product Sales Segment: Compression equipment (1) $ 121,245 $ 106,140 $ 436,947 $ 367,135 Processing and treating equipment (1) 47,843 104,739 236,926 270,261 Production equipment (2) — 1,084 2,458 15,864 Other product sales (1) (2) 2,189 8,065 4,467 14,004 Total product sales revenues $ 171,277 $ 220,028 $ 680,798 $ 667,264 Total revenues $ 302,431 $ 334,849 $ 1,044,751 $ 1,028,703 (1) Revenue recognized over time. (2) Revenue recognized at a point in time. Three Months Ended September 30, Nine Months Ended September 30, Revenue by Geographical Regions 2019 2018 2019 2018 North America $ 157,010 $ 215,015 $ 577,405 $ 669,220 Latin America 67,406 64,960 185,415 205,549 Middle East and Africa 66,601 41,653 249,861 99,131 Asia Pacific 11,414 13,221 32,070 54,803 Total revenues $ 302,431 $ 334,849 $ 1,044,751 $ 1,028,703 The North America region is primarily comprised of our operations in Mexico and the U.S. The Latin America region is primarily comprised of our operations in Argentina, Bolivia and Brazil. The Middle East and Africa region is primarily comprised of our operations in Bahrain, Iraq, Oman, Nigeria and the United Arab Emirates. The Asia Pacific region is primarily comprised of our operations in China, Indonesia, Singapore and Thailand. The following table summarizes the expected timing of revenue recognition from unsatisfied performance obligations (commonly referred to as backlog) as of September 30, 2019 (in thousands): Contract Operations Segment Product Sales Segment Remainder of 2019 $ 91,930 $ 137,302 2020 210,164 164,101 2021 198,640 7,091 2022 157,871 — 2023 139,920 — Thereafter 411,662 — Total backlog $ 1,210,187 $ 308,494 Our aftermarket services contracts are subject to cancellation or modification at the election of the customer. Contract Assets and Contract Liabilities The following table provides information about accounts receivables, net, contract assets and contract liabilities from contracts with customers (in thousands): September 30, 2019 December 31, 2018 Accounts receivables, net $ 231,220 $ 248,467 Contract assets and contract liabilities: Current contract assets 37,207 91,602 Long-term contract assets 5,396 5,430 Current contract liabilities 105,788 153,483 Long-term contract liabilities 165,188 101,363 During the nine months ended September 30, 2019 , revenue recognized from contract operations services included $17.0 million of revenue deferred in previous periods. Revenue recognized during the nine months ended September 30, 2019 from product sales performance obligations partially satisfied in previous periods was $515.6 million , of which $102.8 million was included in billings in excess of costs at the beginning of the period. The decreases in current contract assets and current contract liabilities during the nine months ended September 30, 2019 were primarily driven by the progression of product sales projects and the timing of milestone billings in the North America region. The increase in long-term contract liabilities during the nine months ended September 30, 2019 was primarily driven by advanced billings to contract operations customers in the Latin America region. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 3 - Leases As discussed in Note 1 , on January 1, 2019, we adopted ASC 842 retrospectively through a cumulative-effect adjustment as permitted under the specific transitional provisions in ASC 842. Results for reporting periods beginning after January 1, 2019 are presented under ASC 842, while prior period amounts have not been adjusted and continue to be reported under the accounting standards in effect for the prior period. We primarily lease various offices, warehouses, equipment and vehicles. A right-of-use asset represents our right to use an underlying asset for the lease term and a lease liability represents our obligation to make lease payments arising from the lease. Our operating lease right-of-use assets and lease liabilities are recognized at the present value of lease payments over the lease term at the time of lease commencement, adjusted to include the impact of any lease incentives. Leases with initial terms of 12 months or less are not recorded on our balance sheets and leases that contain non-lease components are combined with the lease components and accounted for as a single lease component. Our lease agreements are negotiated on an individual basis and contain a variety of different terms and conditions. They generally do not contain any material residual value guarantees or material restrictive covenants. Certain lease agreements include rental payments adjusted periodically for inflation. Additionally, some of our leases include one or more options to renew, with renewal terms that can extend the lease term from one month to 10 years . Options to renew our lease terms are included in determining the right-of-use asset and lease liability when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. During the three and nine months ended September 30, 2019 , we recorded expenses of $1.7 million and $6.0 million for our operating leases, respectively, of which $0.1 million and $0.4 million of expenses related to operating leases with initial terms of 12 months or less, respectively. We do not have any material leases, individually or in the aggregate, classified as a finance leasing arrangement. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We used the incremental borrowing rate on January 1, 2019 for operating leases that commenced prior to that date. As of September 30, 2019 , the weighted average remaining lease term and weighted average discount rate applied for our operating leases were nine years and 7% , respectively. As of September 30, 2019 , our lease assets and lease liabilities consisted of the following (in thousands): Leases Classification September 30, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 29,293 Liabilities Operating - current Current operating lease liabilities $ 6,547 Operating - noncurrent Long-term operating lease liabilities 30,256 Total lease liabilities $ 36,803 As of September 30, 2019 , maturities of our operating lease liabilities consisted of the following (in thousands): Maturity of Operating Lease Liabilities September 30, 2019 Remainder of 2019 (1) $ (39 ) 2020 7,768 2021 6,729 2022 5,774 2023 5,039 Thereafter 26,268 Total lease payments 51,539 Less: Imputed interest (14,736 ) Present value of lease liabilities $ 36,803 (1) Includes lease incentives of $1.9 million expected to be received in the fourth quarter of 2019. As of December 31, 2018, commitments for future minimum rental payments with terms in excess of one year were as follows (in thousands): Future Minimum Rental Payments December 31, 2018 2019 $ 6,076 2020 5,929 2021 4,583 2022 3,756 2023 3,038 Thereafter 11,615 Total lease payments $ 34,997 The following table provides supplemental cash flow information related to leases for the nine months ended September 30, 2019 (in thousands): Cash Flow Information Classification Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Net cash provided by operating activities $ (137 ) Leased assets obtained in exchange for new operating lease liabilities Non-cash 297 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Note 4 - Discontinued Operations In the first quarter of 2016, we began executing the exit of our Belleli EPC business that has historically been comprised of engineering, procurement and construction for the manufacture of tanks for tank farms and the manufacture of evaporators and brine heaters for desalination plants in the Middle East (referred to as “Belleli EPC” or the “Belleli EPC business” herein) by ceasing the bookings of new orders. As of the fourth quarter of 2017, we had substantially exited our Belleli EPC business and, in accordance with GAAP, it is reflected as discontinued operations in our financial statements for all periods presented. Although we have reached mechanical completion on all remaining Belleli EPC contracts, we are still subject to risks and uncertainties potentially resulting from warranty obligations, customer or supplier claims against us, settlement of claims against customers, completion of demobilization activities and litigation developments. The facility previously utilized to manufacture products for our Belleli EPC business has been repurposed to manufacture product sales equipment. As such, certain personnel, buildings, equipment and other assets that were previously related to our Belleli EPC business remain a part of our continuing operations. As a result, activities associated with our ongoing operations at our repurposed facility are included in continuing operations. The following table summarizes the operating results of discontinued operations (in thousands): Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Venezuela Belleli EPC Total Venezuela Belleli EPC Total Revenue $ — $ 31 $ 31 $ — $ 7,654 $ 7,654 Cost of sales (excluding depreciation and amortization expense) — 1,204 1,204 — 3,587 3,587 Selling, general and administrative 114 231 345 35 742 777 Other (income) expense, net — 28 28 — 537 537 Provision for income taxes — — — — 580 580 Income (loss) from discontinued operations, net of tax $ (114 ) $ (1,432 ) $ (1,546 ) $ (35 ) $ 2,208 $ 2,173 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Venezuela Belleli EPC Total Venezuela Belleli EPC Total Revenue $ — $ 265 $ 265 $ — $ 15,536 $ 15,536 Cost of sales (excluding depreciation and amortization expense) — (395 ) (395 ) — 8,798 8,798 Selling, general and administrative 182 921 1,103 96 929 1,025 Depreciation and amortization — — — — 480 480 Other (income) expense, net — (304 ) (304 ) 1 (553 ) (552 ) Provision for (benefit from) income taxes — (6,213 ) (6,213 ) — 669 669 Income (loss) from discontinued operations, net of tax $ (182 ) $ 6,256 $ 6,074 $ (97 ) $ 5,213 $ 5,116 The following table summarizes the balance sheet data for discontinued operations (in thousands): September 30, 2019 December 31, 2018 Venezuela Belleli EPC Total Venezuela Belleli EPC Total Cash $ — $ — $ — $ 3 $ — $ 3 Accounts receivable — 3,720 3,720 — 11,509 11,509 Contract assets — 308 308 — — — Other current assets — — — 7 86 93 Total current assets associated with discontinued operations — 4,028 4,028 10 11,595 11,605 Property, plant and equipment, net — — — — 28 28 Intangible and other assets, net — 2,979 2,979 — 1,633 1,633 Total assets associated with discontinued operations $ — $ 7,007 $ 7,007 $ 10 $ 13,256 $ 13,266 Accounts payable $ — $ 1,449 $ 1,449 $ — $ 4,382 $ 4,382 Accrued liabilities 108 5,710 5,818 12 7,831 7,843 Contract liabilities — 2,536 2,536 — 2,542 2,542 Total current liabilities associated with discontinued operations 108 9,695 9,803 12 14,755 14,767 Other long-term liabilities — 617 617 — 5,914 5,914 Total liabilities associated with discontinued operations $ 108 $ 10,312 $ 10,420 $ 12 $ 20,669 $ 20,681 |
Inventory, Net
Inventory, Net | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory, Net | Note 5 - Inventory, Net Inventory, net of reserves, consisted of the following amounts (in thousands): September 30, 2019 December 31, 2018 Parts and supplies $ 111,372 $ 92,016 Work in progress 51,033 49,547 Finished goods 7,994 9,126 Inventory, net $ 170,399 $ 150,689 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 6 - Property, Plant and Equipment, Net Property, plant and equipment, net, consisted of the following (in thousands): September 30, 2019 December 31, 2018 Compression equipment, processing facilities and other fleet assets $ 1,806,860 $ 1,713,153 Land and buildings 106,849 101,571 Transportation and shop equipment 78,627 82,960 Computer software 58,401 54,572 Other 41,235 47,210 2,091,972 1,999,466 Accumulated depreciation (1,160,369 ) (1,097,889 ) Property, plant and equipment, net $ 931,603 $ 901,577 |
Assets Held for Sale
Assets Held for Sale | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Assets Held for Sale | Note 7 - Assets Held for Sale In the second quarter of 2019, we classified certain long-lived assets as assets held for sale in our balance sheets. In conjunction with the planned disposition of these units, during the three and nine months ended September 30, 2019, we recorded impairment charges of $3.0 million and $8.9 million , respectively, to reduce these assets to their approximate fair values based on the expected net proceeds. The impairment charges are reflected in long-lived asset impairment in our statements of operations. As of September 30, 2019, the fair value of these long-lived assets after impairment was $2.1 million . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 8 - Debt Debt consisted of the following (in thousands): September 30, 2019 December 31, 2018 Revolving credit facility due October 2023 $ 126,000 $ 35,000 8.125% senior notes due May 2025 375,000 375,000 Other debt 350 687 Unamortized deferred financing costs of 8.125% senior notes (5,667 ) (6,428 ) Total debt 495,683 404,259 Less: Amounts due within one year (1) (336 ) (449 ) Long-term debt $ 495,347 $ 403,810 (1) Short-term debt and the current portion of long-term debt are included in accrued liabilities in our balance sheets. Revolving Credit Facility Due October 2023 We and our wholly owned subsidiary, Exterran Energy Solutions, L.P. (“EESLP”), are parties to an amended and restated credit agreement (the “Credit Agreement”) consisting of a $700.0 million revolving credit facility expiring in October 2023. As of September 30, 2019 , we had $126.0 million in outstanding borrowings and $23.0 million in outstanding letters of credit under our revolving credit facility. At September 30, 2019 , taking into account guarantees through letters of credit, we had undrawn capacity of $551.0 million under our revolving credit facility. Our Credit Agreement limits our senior secured leverage ratio (as defined in the Credit Agreement) on the last day of the fiscal quarter to no greater than 2.75 to 1.0 . As a result of this limitation, $472.9 million of the $551.0 million of undrawn capacity under our revolving credit facility was available for additional borrowings as of September 30, 2019 . 8.125% Senior Notes Due May 2025 In April 2017, our 100% owned subsidiaries EESLP and EES Finance Corp. issued $375.0 million aggregate principal amount of 8.125% senior unsecured notes due 2025 (the “2017 Notes”). We guarantee the 2017 Notes on a senior unsecured basis. We may redeem the 2017 Notes at any time in cash, in whole or part, at certain redemption prices, including the applicable make-whole premium plus accrued and unpaid interest, if any, to the date of redemption. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 9 - Fair Value Measurements The accounting standard for fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into the following three categories: • Level 1 — Quoted unadjusted prices for identical instruments in active markets to which we have access at the date of measurement. • Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or prices vary substantially over time or among brokered market makers. • Level 3 — Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect our own assumptions regarding how market participants would price the asset or liability based on the best available information. Nonrecurring Fair Value Measurements The following table presents our assets and liabilities measured at fair value on a nonrecurring basis during the nine months ended September 30, 2019 and 2018 , with pricing levels as of the date of valuation (in thousands): Nine months ended September 30, 2019 Nine months ended September 30, 2018 (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Impaired long-lived assets (1) $ — $ — $ — $ — $ — $ 550 Impaired assets—assets held for sale (2) (3) — — 2,142 — — 21,026 Long-term note receivable (4) — — 15,104 — — 14,573 (1) Our estimate of the fair value of the impaired long-lived assets during the nine months ended September 30, 2018 was primarily based on the expected net sale proceeds compared to other fleet units we sold and/or a review of other units offered for sale by third parties. (2) Our estimate of the fair value of the impaired assets, which were classified as held for sale as of September 30, 2019, was based on the expected net proceeds from the sale of the assets. (3) Our estimate of the fair value of the impaired North America production equipment assets (“PEQ assets”), which were classified as assets held for sale as of March 31, 2018 and sold in June 2018, was based on the expected net proceeds from the sale of the assets. (4) Our estimate of the fair value of a note receivable was discounted based on a settlement period of eight years and a discount rate of 5.2% Financial Instruments Our financial instruments consists of cash, restricted cash, receivables, payables and debt. At September 30, 2019 and December 31, 2018 , the estimated fair values of cash, restricted cash, receivables and payables approximated their carrying amounts as reflected in our balance sheets due to the short-term nature of these financial instruments. The fair value of the 2017 Notes was estimated based on model derived calculations using market yields observed in active markets, which are Level 2 inputs. As of September 30, 2019 and December 31, 2018 , the carrying amount of the 2017 Notes, excluding unamortized deferred financing costs, of $375.0 million was estimated to have a fair value of $374.0 million and $362.0 million , respectively. Due to the variable rate nature of our revolving credit facility, the carrying value as of September 30, 2019 and December 31, 2018 approximated the fair value as the rate was comparable to the then-current market rate at which debt with similar terms could have been obtained. |
Long-Lived Asset Impairment
Long-Lived Asset Impairment | 9 Months Ended |
Sep. 30, 2019 | |
Asset Impairment Charges [Abstract] | |
Long-Lived Asset Impairment | Note 10 - Long-Lived Asset Impairment We review long-lived assets, including property, plant and equipment and identifiable intangibles that are being amortized, for impairment whenever events or changes in circumstances, including the removal of compressor units from our active fleet, indicate that the carrying amount of an asset may not be recoverable. In the second quarter of 2019, we classified certain long-lived assets as assets held for sale in our balance sheets. As described in Note 7 , in conjunction with the planned disposition of these units, we recorded impairment charges of $3.0 million and $8.9 million to write-down these assets to their approximate fair values during the three and nine months ended September 30, 2019 based on the expected net proceeds, respectively. During the third quarter of 2018, we evaluated idle units that had been previously culled from our fleet and were available for sale for impairment. Based upon that review, we reduced the expected proceeds from disposition for certain units. This resulted in an additional impairment of $2.1 million to reduce the book value of each unit to its estimated fair value during the three and nine months ended September 30, 2018. The fair value of each unit was estimated based on the expected net sale proceeds compared to other fleet units we recently sold and/or a review of other units recently offered for sale by third parties. In the fourth quarter of 2017, we classified our PEQ assets primarily related to inventory and property, plant and equipment, net, within our product sales business as assets held for sale in our balance sheets. In June 2018, we completed the sale of our PEQ assets. During the nine months ended September 30, 2018 , we recorded an impairment of $1.8 million |
Restructuring and Other Charges
Restructuring and Other Charges | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Note 11 - Restructuring and Other Charges The energy industry’s focus on capital discipline and improving returns has caused delays in the timing of new equipment orders. As a result, in the second quarter of 2019, we began the consolidation of two of our manufacturing facilities located in Houston, Texas into one facility and announced a cost reduction plan primarily focused on workforce reductions. We incurred restructuring and other charges associated with these activities of $1.8 million and $7.7 million for the three and nine months ended September 30, 2019 , respectively. These charges are reflected as restructuring and other charges in our statements of operations and accrued liabilities on our balance sheets. We expect to settle these charges within the next twelve months in cash. In the second quarter of 2018, we initiated a relocation plan in the North America region to better align our contract operations business with our customers. As a result of this plan, during the nine months ended September 30, 2019 , we incurred restructuring and other charges of $0.2 million related to relocation costs. During the three and nine months ended September 30, 2018 , we incurred restructuring and other charges of $0.3 million and $1.7 million , respectively, primarily related to employee termination benefits. The charges incurred in conjunction with this relocation plan are included in restructuring and other charges in our statements of operations. In the second quarter of 2019, we completed restructuring activities related to the relocation plan. The following table summarizes the changes to our accrued liability balance related to restructuring and other charges for the nine months ended September 30, 2019 (in thousands): Cost Relocation Plan Total Beginning balance at January 1, 2018 $ — $ — $ — Additions for costs expensed — 1,422 1,422 Reductions for payments — (409 ) (409 ) Ending balance at September 30, 2018 $ — $ 1,013 $ 1,013 Beginning balance at January 1, 2019 $ — $ 309 $ 309 Additions for costs expensed, net 7,673 293 7,966 Reductions for payments (3,633 ) (602 ) (4,235 ) Ending balance at September 30, 2019 $ 4,040 $ — $ 4,040 The following table summarizes the components of charges included in restructuring and other charges in our statements of operations for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Employee termination benefits $ 1,549 $ 33 $ 7,477 $ 1,389 Relocation costs 245 231 489 297 Total restructuring and other charges $ 1,794 $ 264 $ 7,966 $ 1,686 |
Provision for Income Taxes
Provision for Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Note 12 - Provision for Income Taxes Our effective tax rate is affected by recurring items, such as tax rates in foreign jurisdictions and the relative amounts of income we earn, or losses we incur, in those jurisdictions. It is also affected by discrete items that may occur in any given year but are not consistent from year to year. Our effective tax rate is also affected by valuation allowances recorded against loss carryforwards in the U.S. and certain other jurisdictions, foreign withholding taxes and changes in foreign currency exchange rates. The following items had the most significant impact on the difference between our statutory U.S. federal income tax rate of 21.0% and our effective tax rate of (6.1)% for the three months ended September 30, 2019 : (i) a $0.8 million favorable impact resulting primarily from rate differences between U.S. and foreign jurisdictions including foreign withholding taxes, (ii) a $0.6 million negative impact resulting from foreign currency devaluations in Argentina, and (iii) a $2.5 million negative impact resulting from the recording of valuation allowances recorded against U.S. deferred tax assets. The following items had the most significant impact on the difference between our statutory U.S. federal income tax rate of 21.0% and our effective tax rate of (240.4)% for the nine months ended September 30, 2019 : (i) a $6.6 million negative impact resulting primarily from rate differences between U.S. and foreign jurisdictions including foreign withholding taxes, (ii) a $7.4 million negative impact resulting from foreign currency devaluations in Argentina, and (iii) a $7.3 million negative impact resulting from the recording of valuation allowances recorded against U.S. deferred tax assets. Our effective tax rate decreased for the nine months ended September 30, 2019 compared to the nine months ended September 30, 2018 primarily due to a decrease in income before income taxes, an increase in valuation allowances recorded in the U.S., a decrease in foreign withholding tax and a decrease in tax related to foreign exchange movement in Argentina in 2019. During the nine months ended September 30, 2019 , we recorded a $6.5 million tax benefit (recognized in income from discontinued operations, net of tax), related to a settlement of Italian tax litigation previously recorded as an unrecognized tax benefit. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 13 - Stockholders’ Equity Share Repurchase Program On February 20, 2019, our board of directors approved a share repurchase program under which the Company is authorized to purchase up to $100.0 million of its outstanding common stock through February 2022. The timing and method of any repurchases under the program will depend on a variety of factors, including prevailing market conditions among others. Purchases under the program may be suspended or discontinued at any time and we have no obligation to repurchase any amount of our common shares under the program. Shares of common stock acquired through the repurchase program are held in treasury at cost. During the nine months ended September 30, 2019 , we repurchased 3,054,338 shares of our common stock for $38.9 million in connection with our share repurchase program. As of September 30, 2019 , the remaining authorized repurchase amount under the share repurchase program was $61.1 million . Additionally, treasury stock purchased during the nine months ended September 30, 2019 and 2018 included shares withheld to satisfy employees’ tax withholding obligations in connection with vesting of restricted stock awards. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 14 - Stock-Based Compensation Stock Options There were no stock options granted during the nine months ended September 30, 2019 . Restricted Stock, Restricted Stock Units and Performance Units For grants of restricted stock, restricted stock units and performance units, we recognize compensation expense over the applicable vesting period equal to the fair value of our common stock at the grant date. Grants of restricted stock, restricted stock units and performance units generally vest one third per year on each of the first three anniversaries of the grant date. Certain grants of restricted stock vest on the third anniversary of the grant date and certain grants of performance units vest on the second anniversary of the grant date. The table below presents the changes in restricted stock, restricted stock units and performance units for our common stock during the nine months ended September 30, 2019 . Shares (in thousands) Weighted Average Grant-Date Fair Value Per Share Non-vested awards, January 1, 2019 1,044 $ 25.89 Granted 826 16.90 Vested (502 ) 23.20 Cancelled (128 ) 22.05 Non-vested awards, September 30, 2019 (1) 1,240 21.39 (1) As of September 30, 2019 , 329,000 of the non-vested awards are presented within our balance sheets as liabilities due to their expected cash settlement. As of September 30, 2019 , we estimate $15.2 million of unrecognized compensation cost related to unvested restricted stock, restricted stock units and performance units issued to our employees to be recognized over the weighted-average vesting period of 1.6 years . |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 15 - Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed using the two-class method, which is an earnings allocation formula that determines net income (loss) per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under the two-class method, basic net income (loss) per common share is determined by dividing net income (loss) after deducting amounts allocated to participating securities, by the weighted average number of common shares outstanding for the period. Participating securities include unvested restricted stock and restricted stock units that have non-forfeitable rights to receive dividends or dividend equivalents, whether paid or unpaid. During periods of net loss from continuing operations, no effect is given to participating securities because they do not have a contractual obligation to participate in our losses. Diluted net income (loss) per common share is computed using the weighted average number of common shares outstanding adjusted for the incremental common stock equivalents attributed to outstanding options to purchase common stock and non-participating restricted stock units, unless their effect would be anti-dilutive. The following table presents a reconciliation of basic and diluted net income (loss) per common share for the three and nine months ended September 30, 2019 and 2018 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator for basic and diluted net income (loss) per common share: Income (loss) from continuing operations $ (8,295 ) $ 3,196 $ (28,614 ) $ 5,665 Income (loss) from discontinued operations, net of tax (1,546 ) 2,173 6,074 5,116 Less: Net income attributable to participating securities — (140 ) — (284 ) Net income (loss) — used in basic and diluted net income (loss) per common share $ (9,841 ) $ 5,229 $ (22,540 ) $ 10,497 Weighted average common shares outstanding including participating securities 34,523 36,430 35,623 36,361 Less: Weighted average participating securities outstanding (740 ) (950 ) (784 ) (959 ) Weighted average common shares outstanding — used in basic net income (loss) per common share 33,783 35,480 34,839 35,402 Net dilutive potential common shares issuable: On exercise of options and vesting of restricted stock units * 64 * 67 Weighted average common shares outstanding — used in diluted net income (loss) per common share 33,783 35,544 34,839 35,469 Net income (loss) per common share: Basic $ (0.29 ) $ 0.15 $ (0.65 ) $ 0.30 Diluted $ (0.29 ) $ 0.15 $ (0.65 ) $ 0.30 * Excluded from diluted net income (loss) per common share as their inclusion would have been anti-dilutive. The following table shows the potential shares of common stock issuable for the three and nine months ended September 30, 2019 and 2018 that were excluded from computing diluted net income (loss) per common share as their inclusion would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net dilutive potential common shares issuable: On exercise of options where exercise price is greater than average market value 69 35 70 35 Net dilutive potential common shares issuable 69 35 70 35 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16 - Commitments and Contingencies Contingencies In addition to U.S. federal, state and local and foreign income taxes, we are subject to a number of taxes that are not income-based. As many of these taxes are subject to audit by the taxing authorities, it is possible that an audit could result in additional taxes due. We accrue for such additional taxes when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the liability. As of September 30, 2019 and December 31, 2018 , we had accrued $5.1 million for the outcomes of non-income-based tax audits. We do not expect that the ultimate resolutions of these audits will result in a material variance from the amounts accrued. We do not accrue for unasserted claims for tax audits unless we believe the assertion of a claim is probable, it is probable that it will be determined that the claim is owed and we can reasonably estimate the claim or range of the claim. We do not have any unasserted claims from non-income based tax audits that we have determined are probable of assertion. We also believe the likelihood is remote that the impact of potential unasserted claims from non-income-based tax audits could be material to our financial position, but it is possible that the resolution of future audits could be material to our results of operations or cash flows for the period in which the resolution occurs. Our business can be hazardous, involving unforeseen circumstances such as uncontrollable flows of natural gas or well fluids and fires or explosions. As is customary in our industry, we review our safety equipment and procedures and carry insurance against some, but not all, risks of our business. Our insurance coverage includes property damage, general liability, commercial automobile liability and other coverage we believe is appropriate. We believe that our insurance coverage is customary for the industry and adequate for our business; however, losses and liabilities not covered by insurance would increase our costs. Additionally, we are substantially self-insured for workers’ compensation and employee group health claims in view of the relatively high per-incident deductibles we absorb under our insurance arrangements for these risks. Losses up to the deductible amounts are estimated and accrued based upon known facts, historical trends and industry averages. Litigation and Claims In the ordinary course of business, we are involved in various pending or threatened legal actions. While management is unable to predict the ultimate outcome of these actions, it believes that any ultimate liability arising from any of these actions will not have a material adverse effect on our financial position, results of operations or cash flows. However, because of the inherent uncertainty of litigation and arbitration proceedings, we cannot provide assurance that the resolution of any particular claim or proceeding to which we are a party will not have a material adverse effect on our financial position, results of operations or cash flows. Contemporaneously with filing the Form 8-K on April 26, 2016, we self-reported the errors and possible irregularities at Belleli EPC to the SEC. On April 8, 2019, the SEC provided written notice to us stating that based on the information they have as of this date, they have concluded their investigation and do not intend to recommend enforcement action by the SEC against us in connection with this matter. Indemnifications In conjunction with, and effective as of the completion of, the Spin-off, we entered into the separation and distribution agreement with Archrock, which governs, among other things, the treatment between Archrock and us relating to certain aspects of indemnification, insurance, confidentiality and cooperation. Generally, the separation and distribution agreement provides for cross-indemnities principally designed to place financial responsibility for the obligations and liabilities of our business with us and financial responsibility for the obligations and liabilities of Archrock’s business with Archrock. Pursuant to the agreement, we and Archrock will generally release the other party from all claims arising prior to the Spin-off that relate to the other party’s business, subject to certain exceptions. Additionally, in conjunction with, and effective as of the completion of, the Spin-off, we entered into the tax matters agreement with Archrock. Under the tax matters agreement and subject to certain exceptions, we are generally liable for, and indemnify Archrock against, taxes attributable to our business, and Archrock is generally liable for, and indemnify us against, all taxes attributable to its business. We are generally liable for, and indemnify Archrock against, 50% of certain taxes that are not clearly attributable to our business or Archrock’s business. Any payment made by us to Archrock, or by Archrock to us, is treated by all parties for tax purposes as a nontaxable distribution or capital contribution, respectively, made immediately prior to the Spin-off. |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments | Note 17 - Reportable Segments Our chief operating decision maker manages business operations, evaluates performance and allocates resources based upon the type of product or service provided. We have three reportable segments: contract operations, aftermarket services and product sales. In our contract operations segment, we provide compression, processing, treating and water treatment services through the operation of our natural gas compression equipment, crude oil and natural gas production and process equipment and water treatment equipment for our customers. In our aftermarket services segment, we sell parts and components and provide operations, maintenance, repair, overhaul, upgrade, startup and commissioning and reconfiguration services to customers who own their own oil and natural gas compression, production, processing, treating and related equipment. In our product sales segment, we design, engineer, manufacture, install and sell natural gas compression packages as well as equipment used in the treating and processing of crude oil, natural gas and water to our customers throughout the world and for use in our contract operations business line. We evaluate the performance of our segments based on gross margin for each segment. Revenue only includes sales to external customers. We do not include intersegment sales when we evaluate our segments’ performance. The following table presents revenue and other financial information by reportable segment for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Contract Operations Aftermarket Services Product Sales Reportable September 30, 2019: Revenue $ 96,261 $ 34,893 $ 171,277 $ 302,431 Gross margin (1) 61,905 8,814 18,266 88,985 September 30, 2018: Revenue $ 84,828 $ 29,993 $ 220,028 $ 334,849 Gross margin (1) 57,060 7,855 31,822 96,737 Nine Months Ended Contract Operations Aftermarket Services Product Sales Reportable September 30, 2019: Revenue $ 271,645 $ 92,308 $ 680,798 $ 1,044,751 Gross margin (1) 178,362 24,494 77,646 280,502 September 30, 2018: Revenue $ 272,808 $ 88,631 $ 667,264 $ 1,028,703 Gross margin (1) 177,283 23,890 86,960 288,133 (1) Gross margin is defined as revenue less cost of sales (excluding depreciation and amortization expense). The following table reconciles income (loss) before income taxes to total gross margin (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Income (loss) before income taxes $ (7,818 ) $ 11,150 $ (8,405 ) $ 28,733 Selling, general and administrative 37,702 45,103 126,790 133,727 Depreciation and amortization 42,133 31,108 116,669 92,321 Long-lived asset impairment 2,970 2,054 8,889 3,858 Restatement related charges (recoveries), net — (342 ) 20 (318 ) Restructuring and other charges 1,794 264 7,966 1,686 Interest expense 10,103 7,685 28,194 21,787 Other (income) expense, net 2,101 (285 ) 379 6,339 Total gross margin $ 88,985 $ 96,737 $ 280,502 $ 288,133 |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Guarantor Financial Information | Note 18 - Supplemental Guarantor Financial Information In April 2017, our 100% owned subsidiaries EESLP and EES Finance Corp. (together, the “Issuers”) issued the 2017 Notes, which consists of $375.0 million aggregate principal amount senior unsecured notes. The 2017 Notes are fully and unconditionally guaranteed on a joint and several senior unsecured basis by Exterran Corporation (the “Parent Guarantor” or “Parent”). All other consolidated subsidiaries of Exterran are collectively referred to as the “Non-Guarantor Subsidiaries.” As a result of the Parent’s guarantee, we are presenting the following condensed consolidating financial information pursuant to Rule 3-10 of Regulation S-X, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered Condensed Consolidating Balance Sheet September 30, 2019 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation ASSETS Cash and cash equivalents $ 57 $ 905 $ 21,017 $ — $ 21,979 Restricted cash — — 19 — 19 Accounts receivable, net — 61,031 170,189 — 231,220 Inventory, net — 98,056 72,343 — 170,399 Contract assets — 12,479 24,728 — 37,207 Intercompany receivables — 248,420 389,860 (638,280 ) — Other current assets — 10,142 15,740 — 25,882 Current assets associated with discontinued operations — — 4,028 — 4,028 Total current assets 57 431,033 697,924 (638,280 ) 490,734 Property, plant and equipment, net — 250,813 680,790 — 931,603 Operating lease right-of-use assets — 11,677 17,616 — 29,293 Investment in affiliates 528,740 900,022 (371,282 ) (1,057,480 ) — Deferred income taxes — 3,343 6,971 — 10,314 Intangible and other assets, net — 30,817 54,854 — 85,671 Long-term assets held for sale — 2,142 — — 2,142 Long-term assets associated with discontinued operations — — 2,979 — 2,979 Total assets $ 528,797 $ 1,629,847 $ 1,089,852 $ (1,695,760 ) $ 1,552,736 LIABILITIES AND EQUITY Accounts payable, trade $ — $ 61,419 $ 29,556 $ — $ 90,975 Accrued liabilities — 38,831 73,033 — 111,864 Contract liabilities — 61,861 43,927 — 105,788 Current operating lease liabilities — 1,922 4,625 — 6,547 Intercompany payables 39,698 389,860 208,722 (638,280 ) — Current liabilities associated with discontinued operations — — 9,803 — 9,803 Total current liabilities 39,698 553,893 369,666 (638,280 ) 324,977 Long-term debt — 495,347 — — 495,347 Deferred income taxes — — 1,869 — 1,869 Long-term contract liabilities — 21,957 143,231 — 165,188 Long-term operating lease liabilities — 18,128 12,128 — 30,256 Other long-term liabilities — 11,782 33,601 — 45,383 Long-term liabilities associated with discontinued operations — — 617 — 617 Total liabilities 39,698 1,101,107 561,112 (638,280 ) 1,063,637 Total equity 489,099 528,740 528,740 (1,057,480 ) 489,099 Total liabilities and equity $ 528,797 $ 1,629,847 $ 1,089,852 $ (1,695,760 ) $ 1,552,736 Condensed Consolidating Balance Sheet December 31, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation ASSETS Cash and cash equivalents $ 46 $ 1,185 $ 18,069 $ — $ 19,300 Restricted cash — — 178 — 178 Accounts receivable, net — 92,880 155,587 — 248,467 Inventory, net — 87,972 62,717 — 150,689 Contract assets — 67,323 24,279 — 91,602 Intercompany receivables — 158,977 379,628 (538,605 ) — Other current assets — 7,744 36,490 — 44,234 Current assets associated with discontinued operations — — 11,605 — 11,605 Total current assets 46 416,081 688,553 (538,605 ) 566,075 Property, plant and equipment, net — 303,813 597,764 — 901,577 Investment in affiliates 554,207 870,959 (316,752 ) (1,108,414 ) — Deferred income taxes — 5,493 5,877 — 11,370 Intangible and other assets, net — 32,046 54,325 — 86,371 Long-term assets associated with discontinued operations — — 1,661 — 1,661 Total assets $ 554,253 $ 1,628,392 $ 1,031,428 $ (1,647,019 ) $ 1,567,054 LIABILITIES AND EQUITY Accounts payable, trade $ — $ 133,291 $ 32,453 $ — $ 165,744 Accrued liabilities — 47,012 76,323 — 123,335 Contract liabilities — 82,367 71,116 — 153,483 Intercompany payables 1,432 379,628 157,545 (538,605 ) — Current liabilities associated with discontinued operations — — 14,767 — 14,767 Total current liabilities 1,432 642,298 352,204 (538,605 ) 457,329 Long-term debt — 403,810 — — 403,810 Deferred income taxes — — 6,005 — 6,005 Long-term contract liabilities — 17,226 84,137 — 101,363 Other long-term liabilities — 10,851 28,961 — 39,812 Long-term liabilities associated with discontinued operations — — 5,914 — 5,914 Total liabilities 1,432 1,074,185 477,221 (538,605 ) 1,014,233 Total equity 552,821 554,207 554,207 (1,108,414 ) 552,821 Total liabilities and equity $ 554,253 $ 1,628,392 $ 1,031,428 $ (1,647,019 ) $ 1,567,054 Condensed Consolidating Statement of Operations and Comprehensive Loss Three Months Ended September 30, 2019 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 163,061 $ 158,436 $ (19,066 ) $ 302,431 Cost of sales (excluding depreciation and amortization expense) — 139,270 93,242 (19,066 ) 213,446 Selling, general and administrative 344 19,201 18,157 — 37,702 Depreciation and amortization — 14,286 27,847 — 42,133 Long-lived asset impairment — 2,970 — — 2,970 Restructuring and other charges — 956 838 — 1,794 Interest expense — 10,024 79 — 10,103 Intercompany charges, net — (361 ) 361 — — Equity in (income) loss of affiliates 9,497 (104,869 ) 115,002 (19,630 ) — Other (income) expense, net — 91,950 (89,849 ) — 2,101 Loss before income taxes (9,841 ) (10,366 ) (7,241 ) 19,630 (7,818 ) Provision for (benefit from) income taxes — (233 ) 1,346 (636 ) 477 Loss from continuing operations (9,841 ) (10,133 ) (8,587 ) 20,266 (8,295 ) Loss from discontinued operations, net of tax — — (1,546 ) — (1,546 ) Net loss (9,841 ) (10,133 ) (10,133 ) 20,266 (9,841 ) Other comprehensive loss (3,631 ) (3,631 ) (3,631 ) 7,262 (3,631 ) Comprehensive loss attributable to Exterran stockholders $ (13,472 ) $ (13,764 ) $ (13,764 ) $ 27,528 $ (13,472 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 223,429 $ 129,517 $ (18,097 ) $ 334,849 Cost of sales (excluding depreciation and amortization expense) — 183,640 72,569 (18,097 ) 238,112 Selling, general and administrative 285 23,035 21,783 — 45,103 Depreciation and amortization — 9,015 22,093 — 31,108 Long-lived asset impairment — 1,277 777 — 2,054 Restatement related recoveries, net — (342 ) — — (342 ) Restructuring and other charges — — 264 — 264 Interest expense — 8,941 (1,256 ) — 7,685 Intercompany charges, net — 1,880 (1,880 ) — — Equity in (income) loss of affiliates (5,654 ) (4,186 ) 15,774 (5,934 ) — Other (income) expense, net — (477 ) 192 — (285 ) Income (loss) before income taxes 5,369 646 (799 ) 5,934 11,150 Provision for income taxes — 12,234 12,962 (17,242 ) 7,954 Income (loss) from continuing operations 5,369 (11,588 ) (13,761 ) 23,176 3,196 Income from discontinued operations, net of tax — — 2,173 — 2,173 Net income (loss) 5,369 (11,588 ) (11,588 ) 23,176 5,369 Other comprehensive loss (2,673 ) (2,673 ) (2,673 ) 5,346 (2,673 ) Comprehensive income (loss) attributable to Exterran stockholders $ 2,696 $ (14,261 ) $ (14,261 ) $ 28,522 $ 2,696 Condensed Consolidating Statement of Operations and Comprehensive Loss Nine Months Ended September 30, 2019 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 627,895 $ 504,165 $ (87,309 ) $ 1,044,751 Cost of sales (excluding depreciation and amortization expense) — 545,260 306,298 (87,309 ) 764,249 Selling, general and administrative 885 64,650 61,255 — 126,790 Depreciation and amortization — 43,525 73,144 — 116,669 Long-lived asset impairment — 8,889 — — 8,889 Restatement related charges — 20 — — 20 Restructuring and other charges — 4,375 3,591 — 7,966 Interest expense — 28,293 (99 ) — 28,194 Intercompany charges, net — 3,584 (3,584 ) — — Equity in (income) loss of affiliates 21,655 (50,473 ) 82,164 (53,346 ) — Other (income) expense, net — 3,618 (3,239 ) — 379 Loss before income taxes (22,540 ) (23,846 ) (15,365 ) 53,346 (8,405 ) Provision for income taxes — 7,845 22,400 (10,036 ) 20,209 Loss from continuing operations (22,540 ) (31,691 ) (37,765 ) 63,382 (28,614 ) Income from discontinued operations, net of tax — — 6,074 — 6,074 Net loss (22,540 ) (31,691 ) (31,691 ) 63,382 (22,540 ) Other comprehensive loss (4,179 ) (4,179 ) (4,179 ) 8,358 (4,179 ) Comprehensive loss attributable to Exterran stockholders $ (26,719 ) $ (35,870 ) $ (35,870 ) $ 71,740 $ (26,719 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine Months Ended September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 722,078 $ 369,209 $ (62,584 ) $ 1,028,703 Cost of sales (excluding depreciation and amortization expense) — 600,393 202,761 (62,584 ) 740,570 Selling, general and administrative 920 65,152 67,655 — 133,727 Depreciation and amortization — 27,030 65,291 — 92,321 Long-lived asset impairment — 3,081 777 — 3,858 Restatement related recoveries, net — (318 ) — — (318 ) Restructuring and other charges — — 1,686 — 1,686 Interest expense — 21,438 349 — 21,787 Intercompany charges, net — 4,953 (4,953 ) — — Equity in (income) loss of affiliates (11,548 ) (13,817 ) 5,932 19,433 — Other (income) expense, net (153 ) (1,846 ) 8,338 — 6,339 Income before income taxes 10,781 16,012 21,373 (19,433 ) 28,733 Provision for income taxes — 8,127 18,604 (3,663 ) 23,068 Income from continuing operations 10,781 7,885 2,769 (15,770 ) 5,665 Income from discontinued operations, net of tax — — 5,116 — 5,116 Net income 10,781 7,885 7,885 (15,770 ) 10,781 Other comprehensive loss (10,039 ) (10,039 ) (10,039 ) 20,078 (10,039 ) Comprehensive income (loss) attributable to Exterran stockholders $ 742 $ (2,154 ) $ (2,154 ) $ 4,308 $ 742 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2019 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Cash flows from operating activities: Net cash provided by (used in) continuing operations $ 683 $ (8,442 ) $ 128,754 $ — $ 120,995 Net cash provided by discontinued operations — — 1,967 — 1,967 Net cash provided by (used in) operating activities 683 (8,442 ) 130,721 — 122,962 Cash flows from investing activities: Capital expenditures — (69,290 ) (102,828 ) — (172,118 ) Proceeds from sale of property, plant and equipment — 731 3,551 — 4,282 Intercompany transfers — (38,268 ) (27,357 ) 65,625 — Settlement of foreign currency derivatives — (794 ) — — (794 ) Net cash used in investing activities — (107,621 ) (126,634 ) 65,625 (168,630 ) Cash flows from financing activities: Proceeds from borrowings of debt — 530,000 — — 530,000 Repayments of debt — (439,338 ) — — (439,338 ) Intercompany transfers 38,268 27,357 — (65,625 ) — Transfers from Archrock, Inc. — 420 — — 420 Purchases of treasury stock (38,939 ) (2,657 ) — — (41,596 ) Net cash provided by (used in) financing activities (671 ) 115,782 — (65,625 ) 49,486 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (1,298 ) — (1,298 ) Net increase (decrease) in cash, cash equivalents and restricted cash 12 (281 ) 2,789 — 2,520 Cash, cash equivalents and restricted cash at beginning of period 45 1,186 18,247 — 19,478 Cash, cash equivalents and restricted cash at end of period $ 57 $ 905 $ 21,036 $ — $ 21,998 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Cash flows from operating activities: Net cash provided by (used in) continuing operations $ (386 ) $ (7,525 ) $ 96,704 $ — $ 88,793 Net cash provided by discontinued operations — — 1,144 — 1,144 Net cash provided by (used in) operating activities (386 ) (7,525 ) 97,848 — 89,937 Cash flows from investing activities: Capital expenditures — (54,713 ) (97,513 ) — (152,226 ) Proceeds from sale of property, plant and equipment — 51 2,379 — 2,430 Proceeds from sale of business — 5,000 — — 5,000 Intercompany transfers — 5 6,562 (6,567 ) — Net cash used in continuing operations — (49,657 ) (88,572 ) (6,567 ) (144,796 ) Net cash provided by discontinued operations — — 66 — 66 Net cash used in investing activities — (49,657 ) (88,506 ) (6,567 ) (144,730 ) Cash flows from financing activities: Proceeds from borrowings of debt — 415,000 — — 415,000 Repayments of debt — (365,371 ) — — (365,371 ) Intercompany transfers (5 ) (6,562 ) — 6,567 — Payments for debt issuance costs — (92 ) — — (92 ) Proceeds from stock options exercised — 548 — — 548 Purchases of treasury stock — (3,780 ) — — (3,780 ) Net cash provided by (used in) financing activities (5 ) 39,743 — 6,567 46,305 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (3,691 ) — (3,691 ) Net increase (decrease) in cash, cash equivalents and restricted cash (391 ) (17,439 ) 5,651 — (12,179 ) Cash, cash equivalents and restricted cash at beginning of period 397 24,195 25,099 — 49,691 Cash, cash equivalents and restricted cash at end of period $ 6 $ 6,756 $ 30,750 $ — $ 37,512 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Exterran Corporation included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S.”) (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP are not required in these interim financial statements and have been condensed or omitted. Management believes that the information furnished includes all adjustments of a normal recurring nature that are necessary to fairly present our consolidated financial position, results of operations and cash flows for the periods indicated. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements presented in our Annual Report on Form 10-K for the year ended December 31, 2018 . That report contains a comprehensive summary of our accounting policies. The interim results reported herein are not necessarily indicative of results for a full year. We refer to the condensed consolidated financial statements collectively as “financial statements,” and individually as “balance sheets,” “statements of operations,” “statements of comprehensive income (loss),” “statements of stockholders’ equity” and “statements of cash flows” herein. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements We consider the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not listed below were assessed and determined to be not applicable. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASC 842”). The update requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by leases. Leases are now classified as either finance or operating, with classification affecting the pattern of expense recognition in the statements of operations. The update also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. On January 1, 2019, we adopted the standard using the transition method that allows us to initially apply ASC 842 as of January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Additionally, we elected certain practical expedients permitted by ASC 842 in applying the lease standard upon adoption. Upon implementation of the new lease standard, we did not reassess whether a contract is or contains a lease at the date of initial application. For contracts entered into before the transition date, we used the lease classification under the accounting standards in effect prior to adoption. We also excluded initial direct costs for the measurement of the right-of-use asset at the date of initial application. As a result of this adoption, as a lessee, we recorded operating lease assets and lease liabilities of $21.2 million and $26.5 million , respectively, as of January 1, 2019. The difference between the lease assets and lease liabilities, including prepayments, was recorded as an adjustment to retained earnings. The adoption of this standard did not have a material effect on our statements of operations and cash flows. See Note 3 for the required disclosures related to the impact of adopting this standard. As a result of the adoption of the new lease guidance, the following adjustments were made to the balance sheet as of January 1, 2019 (in thousands): Impact of Changes in Accounting Policies December 31, 2018 Adjustments January 1, 2019 ASSETS Other current assets $ 44,234 $ (506 ) $ 43,728 Operating lease right-of-use assets — 21,181 21,181 Intangible and other assets, net 86,371 (353 ) 86,018 Total assets $ 1,567,054 $ 20,322 $ 1,587,376 LIABILITIES AND STOCKHOLDERS ’ EQUITY Current operating lease liabilities $ — $ 6,769 $ 6,769 Long-term operating lease liabilities — 19,737 19,737 Total liabilities 1,014,233 26,506 1,040,739 Accumulated deficit (208,677 ) (6,184 ) (214,861 ) Total stockholders’ equity 552,821 (6,184 ) 546,637 Total liabilities and stockholders’ equity $ 1,567,054 $ 20,322 $ 1,587,376 From a lessor perspective, new customer contracts entered into or modified on or after January 1, 2019 have been assessed in accordance with ASC 842 and ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”), as applicable and will be assessed accordingly in future periods. Additionally, for contracts determined to have lease and nonlease components, we have elected to apply the practical expedient to not separate the components and account for those components as a single component, if the applicable conditions are met. Furthermore, for contracts where the nonlease component is determined to be the predominant component, revenue will continue to be recognized in accordance with ASC 606. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) . The update changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of allowance for losses. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. Adoption will require a modified retrospective approach beginning with the earliest period presented. We are currently evaluating the potential impact of the update on our financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The update modifies the disclosure requirements on fair value measurements by removing, modifying and adding certain disclosure requirements. This update is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures upon issuance of the guidance and delayed adoption of the additional required disclosures is permitted until the effective date. Adoption will require a prospective or retrospective approach based on the specific amendments. We are currently evaluating the potential impact of the update on our financial statements. |
Description of Business and B_3
Description of Business and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | As a result of the adoption of the new lease guidance, the following adjustments were made to the balance sheet as of January 1, 2019 (in thousands): Impact of Changes in Accounting Policies December 31, 2018 Adjustments January 1, 2019 ASSETS Other current assets $ 44,234 $ (506 ) $ 43,728 Operating lease right-of-use assets — 21,181 21,181 Intangible and other assets, net 86,371 (353 ) 86,018 Total assets $ 1,567,054 $ 20,322 $ 1,587,376 LIABILITIES AND STOCKHOLDERS ’ EQUITY Current operating lease liabilities $ — $ 6,769 $ 6,769 Long-term operating lease liabilities — 19,737 19,737 Total liabilities 1,014,233 26,506 1,040,739 Accumulated deficit (208,677 ) (6,184 ) (214,861 ) Total stockholders’ equity 552,821 (6,184 ) 546,637 Total liabilities and stockholders’ equity $ 1,567,054 $ 20,322 $ 1,587,376 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present disaggregated revenue by products and services lines and by geographical regions for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Revenue by Products and Services 2019 2018 2019 2018 Contract Operations Segment: Contract operations services (1) $ 96,261 $ 84,828 $ 271,645 $ 272,808 Aftermarket Services Segment: Operation and maintenance services (1) $ 14,069 $ 14,215 $ 40,844 $ 42,812 Part sales (2) 10,208 11,301 32,197 31,511 Other services (1) 10,616 4,477 19,267 14,308 Total aftermarket services $ 34,893 $ 29,993 $ 92,308 $ 88,631 Product Sales Segment: Compression equipment (1) $ 121,245 $ 106,140 $ 436,947 $ 367,135 Processing and treating equipment (1) 47,843 104,739 236,926 270,261 Production equipment (2) — 1,084 2,458 15,864 Other product sales (1) (2) 2,189 8,065 4,467 14,004 Total product sales revenues $ 171,277 $ 220,028 $ 680,798 $ 667,264 Total revenues $ 302,431 $ 334,849 $ 1,044,751 $ 1,028,703 (1) Revenue recognized over time. (2) Revenue recognized at a point in time. Three Months Ended September 30, Nine Months Ended September 30, Revenue by Geographical Regions 2019 2018 2019 2018 North America $ 157,010 $ 215,015 $ 577,405 $ 669,220 Latin America 67,406 64,960 185,415 205,549 Middle East and Africa 66,601 41,653 249,861 99,131 Asia Pacific 11,414 13,221 32,070 54,803 Total revenues $ 302,431 $ 334,849 $ 1,044,751 $ 1,028,703 |
Schedule of Expected Timing of Revenue Recognition from Unsatisfied Performance Obligation | The following table summarizes the expected timing of revenue recognition from unsatisfied performance obligations (commonly referred to as backlog) as of September 30, 2019 (in thousands): Contract Operations Segment Product Sales Segment Remainder of 2019 $ 91,930 $ 137,302 2020 210,164 164,101 2021 198,640 7,091 2022 157,871 — 2023 139,920 — Thereafter 411,662 — Total backlog $ 1,210,187 $ 308,494 |
Contract with Customer, Asset and Liability | The following table provides information about accounts receivables, net, contract assets and contract liabilities from contracts with customers (in thousands): September 30, 2019 December 31, 2018 Accounts receivables, net $ 231,220 $ 248,467 Contract assets and contract liabilities: Current contract assets 37,207 91,602 Long-term contract assets 5,396 5,430 Current contract liabilities 105,788 153,483 Long-term contract liabilities 165,188 101,363 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Right-of-Use Assets Recognized | As of September 30, 2019 , our lease assets and lease liabilities consisted of the following (in thousands): Leases Classification September 30, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 29,293 Liabilities Operating - current Current operating lease liabilities $ 6,547 Operating - noncurrent Long-term operating lease liabilities 30,256 Total lease liabilities $ 36,803 |
Schedule of Future Maturities of Leases | As of September 30, 2019 , maturities of our operating lease liabilities consisted of the following (in thousands): Maturity of Operating Lease Liabilities September 30, 2019 Remainder of 2019 (1) $ (39 ) 2020 7,768 2021 6,729 2022 5,774 2023 5,039 Thereafter 26,268 Total lease payments 51,539 Less: Imputed interest (14,736 ) Present value of lease liabilities $ 36,803 (1) Includes lease incentives of $1.9 million expected to be received in the fourth quarter of 2019. |
Schedule of Commitments for Future Minimum Rental Payments | As of December 31, 2018, commitments for future minimum rental payments with terms in excess of one year were as follows (in thousands): Future Minimum Rental Payments December 31, 2018 2019 $ 6,076 2020 5,929 2021 4,583 2022 3,756 2023 3,038 Thereafter 11,615 Total lease payments $ 34,997 |
Schedule of Leasing Information | The following table provides supplemental cash flow information related to leases for the nine months ended September 30, 2019 (in thousands): Cash Flow Information Classification Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Net cash provided by operating activities $ (137 ) Leased assets obtained in exchange for new operating lease liabilities Non-cash 297 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Operating Results and Balance Sheet Data for Discontinued Operations and Disposals | The following table summarizes the operating results of discontinued operations (in thousands): Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 Venezuela Belleli EPC Total Venezuela Belleli EPC Total Revenue $ — $ 31 $ 31 $ — $ 7,654 $ 7,654 Cost of sales (excluding depreciation and amortization expense) — 1,204 1,204 — 3,587 3,587 Selling, general and administrative 114 231 345 35 742 777 Other (income) expense, net — 28 28 — 537 537 Provision for income taxes — — — — 580 580 Income (loss) from discontinued operations, net of tax $ (114 ) $ (1,432 ) $ (1,546 ) $ (35 ) $ 2,208 $ 2,173 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Venezuela Belleli EPC Total Venezuela Belleli EPC Total Revenue $ — $ 265 $ 265 $ — $ 15,536 $ 15,536 Cost of sales (excluding depreciation and amortization expense) — (395 ) (395 ) — 8,798 8,798 Selling, general and administrative 182 921 1,103 96 929 1,025 Depreciation and amortization — — — — 480 480 Other (income) expense, net — (304 ) (304 ) 1 (553 ) (552 ) Provision for (benefit from) income taxes — (6,213 ) (6,213 ) — 669 669 Income (loss) from discontinued operations, net of tax $ (182 ) $ 6,256 $ 6,074 $ (97 ) $ 5,213 $ 5,116 The following table summarizes the balance sheet data for discontinued operations (in thousands): September 30, 2019 December 31, 2018 Venezuela Belleli EPC Total Venezuela Belleli EPC Total Cash $ — $ — $ — $ 3 $ — $ 3 Accounts receivable — 3,720 3,720 — 11,509 11,509 Contract assets — 308 308 — — — Other current assets — — — 7 86 93 Total current assets associated with discontinued operations — 4,028 4,028 10 11,595 11,605 Property, plant and equipment, net — — — — 28 28 Intangible and other assets, net — 2,979 2,979 — 1,633 1,633 Total assets associated with discontinued operations $ — $ 7,007 $ 7,007 $ 10 $ 13,256 $ 13,266 Accounts payable $ — $ 1,449 $ 1,449 $ — $ 4,382 $ 4,382 Accrued liabilities 108 5,710 5,818 12 7,831 7,843 Contract liabilities — 2,536 2,536 — 2,542 2,542 Total current liabilities associated with discontinued operations 108 9,695 9,803 12 14,755 14,767 Other long-term liabilities — 617 617 — 5,914 5,914 Total liabilities associated with discontinued operations $ 108 $ 10,312 $ 10,420 $ 12 $ 20,669 $ 20,681 |
Inventory, Net (Tables)
Inventory, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory, net of reserves, consisted of the following amounts (in thousands): September 30, 2019 December 31, 2018 Parts and supplies $ 111,372 $ 92,016 Work in progress 51,033 49,547 Finished goods 7,994 9,126 Inventory, net $ 170,399 $ 150,689 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net, consisted of the following (in thousands): September 30, 2019 December 31, 2018 Compression equipment, processing facilities and other fleet assets $ 1,806,860 $ 1,713,153 Land and buildings 106,849 101,571 Transportation and shop equipment 78,627 82,960 Computer software 58,401 54,572 Other 41,235 47,210 2,091,972 1,999,466 Accumulated depreciation (1,160,369 ) (1,097,889 ) Property, plant and equipment, net $ 931,603 $ 901,577 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following (in thousands): September 30, 2019 December 31, 2018 Revolving credit facility due October 2023 $ 126,000 $ 35,000 8.125% senior notes due May 2025 375,000 375,000 Other debt 350 687 Unamortized deferred financing costs of 8.125% senior notes (5,667 ) (6,428 ) Total debt 495,683 404,259 Less: Amounts due within one year (1) (336 ) (449 ) Long-term debt $ 495,347 $ 403,810 (1) Short-term debt and the current portion of long-term debt are included in accrued liabilities in our balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following table presents our assets and liabilities measured at fair value on a nonrecurring basis during the nine months ended September 30, 2019 and 2018 , with pricing levels as of the date of valuation (in thousands): Nine months ended September 30, 2019 Nine months ended September 30, 2018 (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Impaired long-lived assets (1) $ — $ — $ — $ — $ — $ 550 Impaired assets—assets held for sale (2) (3) — — 2,142 — — 21,026 Long-term note receivable (4) — — 15,104 — — 14,573 (1) Our estimate of the fair value of the impaired long-lived assets during the nine months ended September 30, 2018 was primarily based on the expected net sale proceeds compared to other fleet units we sold and/or a review of other units offered for sale by third parties. (2) Our estimate of the fair value of the impaired assets, which were classified as held for sale as of September 30, 2019, was based on the expected net proceeds from the sale of the assets. (3) Our estimate of the fair value of the impaired North America production equipment assets (“PEQ assets”), which were classified as assets held for sale as of March 31, 2018 and sold in June 2018, was based on the expected net proceeds from the sale of the assets. (4) Our estimate of the fair value of a note receivable was discounted based on a settlement period of eight years and a discount rate of 5.2% |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Changes to Accrued Liability Balance Related to Restructuring and Other Charges | The following table summarizes the changes to our accrued liability balance related to restructuring and other charges for the nine months ended September 30, 2019 (in thousands): Cost Relocation Plan Total Beginning balance at January 1, 2018 $ — $ — $ — Additions for costs expensed — 1,422 1,422 Reductions for payments — (409 ) (409 ) Ending balance at September 30, 2018 $ — $ 1,013 $ 1,013 Beginning balance at January 1, 2019 $ — $ 309 $ 309 Additions for costs expensed, net 7,673 293 7,966 Reductions for payments (3,633 ) (602 ) (4,235 ) Ending balance at September 30, 2019 $ 4,040 $ — $ 4,040 The following table summarizes the components of charges included in restructuring and other charges in our statements of operations for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Employee termination benefits $ 1,549 $ 33 $ 7,477 $ 1,389 Relocation costs 245 231 489 297 Total restructuring and other charges $ 1,794 $ 264 $ 7,966 $ 1,686 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Changes in Restricted Stock, Restricted Stock Units, and Performance Units | The table below presents the changes in restricted stock, restricted stock units and performance units for our common stock during the nine months ended September 30, 2019 . Shares (in thousands) Weighted Average Grant-Date Fair Value Per Share Non-vested awards, January 1, 2019 1,044 $ 25.89 Granted 826 16.90 Vested (502 ) 23.20 Cancelled (128 ) 22.05 Non-vested awards, September 30, 2019 (1) 1,240 21.39 (1) As of September 30, 2019 , 329,000 of the non-vested awards are presented within our balance sheets as liabilities due to their expected cash settlement. |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share | The following table presents a reconciliation of basic and diluted net income (loss) per common share for the three and nine months ended September 30, 2019 and 2018 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator for basic and diluted net income (loss) per common share: Income (loss) from continuing operations $ (8,295 ) $ 3,196 $ (28,614 ) $ 5,665 Income (loss) from discontinued operations, net of tax (1,546 ) 2,173 6,074 5,116 Less: Net income attributable to participating securities — (140 ) — (284 ) Net income (loss) — used in basic and diluted net income (loss) per common share $ (9,841 ) $ 5,229 $ (22,540 ) $ 10,497 Weighted average common shares outstanding including participating securities 34,523 36,430 35,623 36,361 Less: Weighted average participating securities outstanding (740 ) (950 ) (784 ) (959 ) Weighted average common shares outstanding — used in basic net income (loss) per common share 33,783 35,480 34,839 35,402 Net dilutive potential common shares issuable: On exercise of options and vesting of restricted stock units * 64 * 67 Weighted average common shares outstanding — used in diluted net income (loss) per common share 33,783 35,544 34,839 35,469 Net income (loss) per common share: Basic $ (0.29 ) $ 0.15 $ (0.65 ) $ 0.30 Diluted $ (0.29 ) $ 0.15 $ (0.65 ) $ 0.30 * Excluded from diluted net income (loss) per common share as their inclusion would have been anti-dilutive. |
Schedule of Antidilutive Shares Excluded from Computation of Net Income Per Common Share | The following table shows the potential shares of common stock issuable for the three and nine months ended September 30, 2019 and 2018 that were excluded from computing diluted net income (loss) per common share as their inclusion would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net dilutive potential common shares issuable: On exercise of options where exercise price is greater than average market value 69 35 70 35 Net dilutive potential common shares issuable 69 35 70 35 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenues and Other Financial Information | The following table presents revenue and other financial information by reportable segment for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Contract Operations Aftermarket Services Product Sales Reportable September 30, 2019: Revenue $ 96,261 $ 34,893 $ 171,277 $ 302,431 Gross margin (1) 61,905 8,814 18,266 88,985 September 30, 2018: Revenue $ 84,828 $ 29,993 $ 220,028 $ 334,849 Gross margin (1) 57,060 7,855 31,822 96,737 Nine Months Ended Contract Operations Aftermarket Services Product Sales Reportable September 30, 2019: Revenue $ 271,645 $ 92,308 $ 680,798 $ 1,044,751 Gross margin (1) 178,362 24,494 77,646 280,502 September 30, 2018: Revenue $ 272,808 $ 88,631 $ 667,264 $ 1,028,703 Gross margin (1) 177,283 23,890 86,960 288,133 (1) Gross margin is defined as revenue less cost of sales (excluding depreciation and amortization expense). |
Reconciliation of Income (Loss) Before Income Taxes to Total Gross Margin | The following table reconciles income (loss) before income taxes to total gross margin (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Income (loss) before income taxes $ (7,818 ) $ 11,150 $ (8,405 ) $ 28,733 Selling, general and administrative 37,702 45,103 126,790 133,727 Depreciation and amortization 42,133 31,108 116,669 92,321 Long-lived asset impairment 2,970 2,054 8,889 3,858 Restatement related charges (recoveries), net — (342 ) 20 (318 ) Restructuring and other charges 1,794 264 7,966 1,686 Interest expense 10,103 7,685 28,194 21,787 Other (income) expense, net 2,101 (285 ) 379 6,339 Total gross margin $ 88,985 $ 96,737 $ 280,502 $ 288,133 |
Supplemental Guarantor Financ_2
Supplemental Guarantor Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Table Text Block Supplement [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet September 30, 2019 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation ASSETS Cash and cash equivalents $ 57 $ 905 $ 21,017 $ — $ 21,979 Restricted cash — — 19 — 19 Accounts receivable, net — 61,031 170,189 — 231,220 Inventory, net — 98,056 72,343 — 170,399 Contract assets — 12,479 24,728 — 37,207 Intercompany receivables — 248,420 389,860 (638,280 ) — Other current assets — 10,142 15,740 — 25,882 Current assets associated with discontinued operations — — 4,028 — 4,028 Total current assets 57 431,033 697,924 (638,280 ) 490,734 Property, plant and equipment, net — 250,813 680,790 — 931,603 Operating lease right-of-use assets — 11,677 17,616 — 29,293 Investment in affiliates 528,740 900,022 (371,282 ) (1,057,480 ) — Deferred income taxes — 3,343 6,971 — 10,314 Intangible and other assets, net — 30,817 54,854 — 85,671 Long-term assets held for sale — 2,142 — — 2,142 Long-term assets associated with discontinued operations — — 2,979 — 2,979 Total assets $ 528,797 $ 1,629,847 $ 1,089,852 $ (1,695,760 ) $ 1,552,736 LIABILITIES AND EQUITY Accounts payable, trade $ — $ 61,419 $ 29,556 $ — $ 90,975 Accrued liabilities — 38,831 73,033 — 111,864 Contract liabilities — 61,861 43,927 — 105,788 Current operating lease liabilities — 1,922 4,625 — 6,547 Intercompany payables 39,698 389,860 208,722 (638,280 ) — Current liabilities associated with discontinued operations — — 9,803 — 9,803 Total current liabilities 39,698 553,893 369,666 (638,280 ) 324,977 Long-term debt — 495,347 — — 495,347 Deferred income taxes — — 1,869 — 1,869 Long-term contract liabilities — 21,957 143,231 — 165,188 Long-term operating lease liabilities — 18,128 12,128 — 30,256 Other long-term liabilities — 11,782 33,601 — 45,383 Long-term liabilities associated with discontinued operations — — 617 — 617 Total liabilities 39,698 1,101,107 561,112 (638,280 ) 1,063,637 Total equity 489,099 528,740 528,740 (1,057,480 ) 489,099 Total liabilities and equity $ 528,797 $ 1,629,847 $ 1,089,852 $ (1,695,760 ) $ 1,552,736 Condensed Consolidating Balance Sheet December 31, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation ASSETS Cash and cash equivalents $ 46 $ 1,185 $ 18,069 $ — $ 19,300 Restricted cash — — 178 — 178 Accounts receivable, net — 92,880 155,587 — 248,467 Inventory, net — 87,972 62,717 — 150,689 Contract assets — 67,323 24,279 — 91,602 Intercompany receivables — 158,977 379,628 (538,605 ) — Other current assets — 7,744 36,490 — 44,234 Current assets associated with discontinued operations — — 11,605 — 11,605 Total current assets 46 416,081 688,553 (538,605 ) 566,075 Property, plant and equipment, net — 303,813 597,764 — 901,577 Investment in affiliates 554,207 870,959 (316,752 ) (1,108,414 ) — Deferred income taxes — 5,493 5,877 — 11,370 Intangible and other assets, net — 32,046 54,325 — 86,371 Long-term assets associated with discontinued operations — — 1,661 — 1,661 Total assets $ 554,253 $ 1,628,392 $ 1,031,428 $ (1,647,019 ) $ 1,567,054 LIABILITIES AND EQUITY Accounts payable, trade $ — $ 133,291 $ 32,453 $ — $ 165,744 Accrued liabilities — 47,012 76,323 — 123,335 Contract liabilities — 82,367 71,116 — 153,483 Intercompany payables 1,432 379,628 157,545 (538,605 ) — Current liabilities associated with discontinued operations — — 14,767 — 14,767 Total current liabilities 1,432 642,298 352,204 (538,605 ) 457,329 Long-term debt — 403,810 — — 403,810 Deferred income taxes — — 6,005 — 6,005 Long-term contract liabilities — 17,226 84,137 — 101,363 Other long-term liabilities — 10,851 28,961 — 39,812 Long-term liabilities associated with discontinued operations — — 5,914 — 5,914 Total liabilities 1,432 1,074,185 477,221 (538,605 ) 1,014,233 Total equity 552,821 554,207 554,207 (1,108,414 ) 552,821 Total liabilities and equity $ 554,253 $ 1,628,392 $ 1,031,428 $ (1,647,019 ) $ 1,567,054 |
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) | Condensed Consolidating Statement of Operations and Comprehensive Loss Three Months Ended September 30, 2019 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 163,061 $ 158,436 $ (19,066 ) $ 302,431 Cost of sales (excluding depreciation and amortization expense) — 139,270 93,242 (19,066 ) 213,446 Selling, general and administrative 344 19,201 18,157 — 37,702 Depreciation and amortization — 14,286 27,847 — 42,133 Long-lived asset impairment — 2,970 — — 2,970 Restructuring and other charges — 956 838 — 1,794 Interest expense — 10,024 79 — 10,103 Intercompany charges, net — (361 ) 361 — — Equity in (income) loss of affiliates 9,497 (104,869 ) 115,002 (19,630 ) — Other (income) expense, net — 91,950 (89,849 ) — 2,101 Loss before income taxes (9,841 ) (10,366 ) (7,241 ) 19,630 (7,818 ) Provision for (benefit from) income taxes — (233 ) 1,346 (636 ) 477 Loss from continuing operations (9,841 ) (10,133 ) (8,587 ) 20,266 (8,295 ) Loss from discontinued operations, net of tax — — (1,546 ) — (1,546 ) Net loss (9,841 ) (10,133 ) (10,133 ) 20,266 (9,841 ) Other comprehensive loss (3,631 ) (3,631 ) (3,631 ) 7,262 (3,631 ) Comprehensive loss attributable to Exterran stockholders $ (13,472 ) $ (13,764 ) $ (13,764 ) $ 27,528 $ (13,472 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 223,429 $ 129,517 $ (18,097 ) $ 334,849 Cost of sales (excluding depreciation and amortization expense) — 183,640 72,569 (18,097 ) 238,112 Selling, general and administrative 285 23,035 21,783 — 45,103 Depreciation and amortization — 9,015 22,093 — 31,108 Long-lived asset impairment — 1,277 777 — 2,054 Restatement related recoveries, net — (342 ) — — (342 ) Restructuring and other charges — — 264 — 264 Interest expense — 8,941 (1,256 ) — 7,685 Intercompany charges, net — 1,880 (1,880 ) — — Equity in (income) loss of affiliates (5,654 ) (4,186 ) 15,774 (5,934 ) — Other (income) expense, net — (477 ) 192 — (285 ) Income (loss) before income taxes 5,369 646 (799 ) 5,934 11,150 Provision for income taxes — 12,234 12,962 (17,242 ) 7,954 Income (loss) from continuing operations 5,369 (11,588 ) (13,761 ) 23,176 3,196 Income from discontinued operations, net of tax — — 2,173 — 2,173 Net income (loss) 5,369 (11,588 ) (11,588 ) 23,176 5,369 Other comprehensive loss (2,673 ) (2,673 ) (2,673 ) 5,346 (2,673 ) Comprehensive income (loss) attributable to Exterran stockholders $ 2,696 $ (14,261 ) $ (14,261 ) $ 28,522 $ 2,696 Condensed Consolidating Statement of Operations and Comprehensive Loss Nine Months Ended September 30, 2019 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 627,895 $ 504,165 $ (87,309 ) $ 1,044,751 Cost of sales (excluding depreciation and amortization expense) — 545,260 306,298 (87,309 ) 764,249 Selling, general and administrative 885 64,650 61,255 — 126,790 Depreciation and amortization — 43,525 73,144 — 116,669 Long-lived asset impairment — 8,889 — — 8,889 Restatement related charges — 20 — — 20 Restructuring and other charges — 4,375 3,591 — 7,966 Interest expense — 28,293 (99 ) — 28,194 Intercompany charges, net — 3,584 (3,584 ) — — Equity in (income) loss of affiliates 21,655 (50,473 ) 82,164 (53,346 ) — Other (income) expense, net — 3,618 (3,239 ) — 379 Loss before income taxes (22,540 ) (23,846 ) (15,365 ) 53,346 (8,405 ) Provision for income taxes — 7,845 22,400 (10,036 ) 20,209 Loss from continuing operations (22,540 ) (31,691 ) (37,765 ) 63,382 (28,614 ) Income from discontinued operations, net of tax — — 6,074 — 6,074 Net loss (22,540 ) (31,691 ) (31,691 ) 63,382 (22,540 ) Other comprehensive loss (4,179 ) (4,179 ) (4,179 ) 8,358 (4,179 ) Comprehensive loss attributable to Exterran stockholders $ (26,719 ) $ (35,870 ) $ (35,870 ) $ 71,740 $ (26,719 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Nine Months Ended September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Revenues $ — $ 722,078 $ 369,209 $ (62,584 ) $ 1,028,703 Cost of sales (excluding depreciation and amortization expense) — 600,393 202,761 (62,584 ) 740,570 Selling, general and administrative 920 65,152 67,655 — 133,727 Depreciation and amortization — 27,030 65,291 — 92,321 Long-lived asset impairment — 3,081 777 — 3,858 Restatement related recoveries, net — (318 ) — — (318 ) Restructuring and other charges — — 1,686 — 1,686 Interest expense — 21,438 349 — 21,787 Intercompany charges, net — 4,953 (4,953 ) — — Equity in (income) loss of affiliates (11,548 ) (13,817 ) 5,932 19,433 — Other (income) expense, net (153 ) (1,846 ) 8,338 — 6,339 Income before income taxes 10,781 16,012 21,373 (19,433 ) 28,733 Provision for income taxes — 8,127 18,604 (3,663 ) 23,068 Income from continuing operations 10,781 7,885 2,769 (15,770 ) 5,665 Income from discontinued operations, net of tax — — 5,116 — 5,116 Net income 10,781 7,885 7,885 (15,770 ) 10,781 Other comprehensive loss (10,039 ) (10,039 ) (10,039 ) 20,078 (10,039 ) Comprehensive income (loss) attributable to Exterran stockholders $ 742 $ (2,154 ) $ (2,154 ) $ 4,308 $ 742 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2019 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Cash flows from operating activities: Net cash provided by (used in) continuing operations $ 683 $ (8,442 ) $ 128,754 $ — $ 120,995 Net cash provided by discontinued operations — — 1,967 — 1,967 Net cash provided by (used in) operating activities 683 (8,442 ) 130,721 — 122,962 Cash flows from investing activities: Capital expenditures — (69,290 ) (102,828 ) — (172,118 ) Proceeds from sale of property, plant and equipment — 731 3,551 — 4,282 Intercompany transfers — (38,268 ) (27,357 ) 65,625 — Settlement of foreign currency derivatives — (794 ) — — (794 ) Net cash used in investing activities — (107,621 ) (126,634 ) 65,625 (168,630 ) Cash flows from financing activities: Proceeds from borrowings of debt — 530,000 — — 530,000 Repayments of debt — (439,338 ) — — (439,338 ) Intercompany transfers 38,268 27,357 — (65,625 ) — Transfers from Archrock, Inc. — 420 — — 420 Purchases of treasury stock (38,939 ) (2,657 ) — — (41,596 ) Net cash provided by (used in) financing activities (671 ) 115,782 — (65,625 ) 49,486 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (1,298 ) — (1,298 ) Net increase (decrease) in cash, cash equivalents and restricted cash 12 (281 ) 2,789 — 2,520 Cash, cash equivalents and restricted cash at beginning of period 45 1,186 18,247 — 19,478 Cash, cash equivalents and restricted cash at end of period $ 57 $ 905 $ 21,036 $ — $ 21,998 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2018 (In thousands) Non- Guarantor Subsidiaries Parent Guarantor Issuers Eliminations Consolidation Cash flows from operating activities: Net cash provided by (used in) continuing operations $ (386 ) $ (7,525 ) $ 96,704 $ — $ 88,793 Net cash provided by discontinued operations — — 1,144 — 1,144 Net cash provided by (used in) operating activities (386 ) (7,525 ) 97,848 — 89,937 Cash flows from investing activities: Capital expenditures — (54,713 ) (97,513 ) — (152,226 ) Proceeds from sale of property, plant and equipment — 51 2,379 — 2,430 Proceeds from sale of business — 5,000 — — 5,000 Intercompany transfers — 5 6,562 (6,567 ) — Net cash used in continuing operations — (49,657 ) (88,572 ) (6,567 ) (144,796 ) Net cash provided by discontinued operations — — 66 — 66 Net cash used in investing activities — (49,657 ) (88,506 ) (6,567 ) (144,730 ) Cash flows from financing activities: Proceeds from borrowings of debt — 415,000 — — 415,000 Repayments of debt — (365,371 ) — — (365,371 ) Intercompany transfers (5 ) (6,562 ) — 6,567 — Payments for debt issuance costs — (92 ) — — (92 ) Proceeds from stock options exercised — 548 — — 548 Purchases of treasury stock — (3,780 ) — — (3,780 ) Net cash provided by (used in) financing activities (5 ) 39,743 — 6,567 46,305 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — (3,691 ) — (3,691 ) Net increase (decrease) in cash, cash equivalents and restricted cash (391 ) (17,439 ) 5,651 — (12,179 ) Cash, cash equivalents and restricted cash at beginning of period 397 24,195 25,099 — 49,691 Cash, cash equivalents and restricted cash at end of period $ 6 $ 6,756 $ 30,750 $ — $ 37,512 |
Description of Business and B_4
Description of Business and Basis of Presentation - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019business_line | |
Accounting Policies [Abstract] | |
Number of business lines | 3 |
Description of Business and B_5
Description of Business and Basis of Presentation - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||
Lease assets | $ 29,293 | $ 21,181 | $ 0 | ||||||
Lease liabilities | 36,803 | ||||||||
ASSETS | |||||||||
Other current assets | 25,882 | 43,728 | 44,234 | ||||||
Operating lease right-of-use assets | 29,293 | 21,181 | 0 | ||||||
Intangible and other assets, net | 85,671 | 86,018 | 86,371 | ||||||
Total assets | 1,552,736 | 1,587,376 | 1,567,054 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Current operating lease liabilities | 6,547 | 6,769 | 0 | ||||||
Long-term operating lease liabilities | 30,256 | 19,737 | 0 | ||||||
Total liabilities | 1,063,637 | 1,040,739 | 1,014,233 | ||||||
Accumulated deficit | (237,401) | (214,861) | (208,677) | ||||||
Total stockholders’ equity | 489,099 | $ 519,982 | $ 537,184 | 546,637 | 552,821 | $ 553,106 | $ 546,951 | $ 551,451 | $ 554,786 |
Total liabilities and stockholders’ equity | $ 1,552,736 | 1,587,376 | $ 1,567,054 | ||||||
Adjustment | |||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||
Lease assets | 21,181 | ||||||||
ASSETS | |||||||||
Other current assets | (506) | ||||||||
Operating lease right-of-use assets | 21,181 | ||||||||
Intangible and other assets, net | (353) | ||||||||
Total assets | 20,322 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Current operating lease liabilities | 6,769 | ||||||||
Long-term operating lease liabilities | 19,737 | ||||||||
Total liabilities | 26,506 | ||||||||
Accumulated deficit | (6,184) | ||||||||
Total stockholders’ equity | (6,184) | ||||||||
Total liabilities and stockholders’ equity | 20,322 | ||||||||
ASU 2016-02 | |||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||
Lease assets | 21,200 | ||||||||
Lease liabilities | 26,500 | ||||||||
ASSETS | |||||||||
Operating lease right-of-use assets | $ 21,200 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accumulated deficit | $ 237,401 | $ 214,861 | $ 208,677 | |
Revenue recognized from contract operations services including revenue deferred in previous periods | 17,000 | |||
Product Sales | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Performance obligation satisfied in previous periods | 515,600 | |||
Performance obligation satisfied in previous periods, included in billings in excess of costs | $ 102,800 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accumulated deficit | $ 10,000 |
Revenue - Disaggregation by Pro
Revenue - Disaggregation by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 302,431 | $ 334,849 | $ 1,044,751 | $ 1,028,703 |
Contract Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 96,261 | 84,828 | 271,645 | 272,808 |
Contract Operations | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 96,261 | 84,828 | 271,645 | 272,808 |
Aftermarket services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 34,893 | 29,993 | 92,308 | 88,631 |
Aftermarket services | Operation and maintenance services | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,069 | 14,215 | 40,844 | 42,812 |
Aftermarket services | Part sales | Revenue recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,208 | 11,301 | 32,197 | 31,511 |
Aftermarket services | Other services | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,616 | 4,477 | 19,267 | 14,308 |
Product Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 171,277 | 220,028 | 680,798 | 667,264 |
Product Sales | Compression equipment | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 121,245 | 106,140 | 436,947 | 367,135 |
Product Sales | Processing and treating equipment | Revenue recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 47,843 | 104,739 | 236,926 | 270,261 |
Product Sales | Production equipment | Revenue recognized at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 1,084 | 2,458 | 15,864 |
Product Sales | Other product sales | Transferred over time and transferred at point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,189 | $ 8,065 | $ 4,467 | $ 14,004 |
Revenue - Disaggregation by Geo
Revenue - Disaggregation by Geographical Regions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 302,431 | $ 334,849 | $ 1,044,751 | $ 1,028,703 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 157,010 | 215,015 | 577,405 | 669,220 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 67,406 | 64,960 | 185,415 | 205,549 |
Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 66,601 | 41,653 | 249,861 | 99,131 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 11,414 | $ 13,221 | $ 32,070 | $ 54,803 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Contract Operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 91,930 |
Expected timing of satisfaction, period | 3 months |
Contract Operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 210,164 |
Expected timing of satisfaction, period | 1 year |
Contract Operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 198,640 |
Expected timing of satisfaction, period | 1 year |
Contract Operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 157,871 |
Expected timing of satisfaction, period | 1 year |
Contract Operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 139,920 |
Expected timing of satisfaction, period | 1 year |
Contract Operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 411,662 |
Contract Operations | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | 1,210,187 |
Product Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 137,302 |
Expected timing of satisfaction, period | 3 months |
Product Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 164,101 |
Expected timing of satisfaction, period | 1 year |
Product Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 7,091 |
Expected timing of satisfaction, period | 1 year |
Product Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 0 |
Expected timing of satisfaction, period | 1 year |
Product Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 0 |
Expected timing of satisfaction, period | 1 year |
Product Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 0 |
Product Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Expected timing of revenue recognition from unsatisfied performance obligations | $ 308,494 |
Revenue - Contract Assets and C
Revenue - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 231,220 | $ 248,467 |
Contract assets and contract liabilities: | ||
Current contract assets | 37,207 | 91,602 |
Long-term contract assets | 5,396 | 5,430 |
Current contract liabilities | 105,788 | 153,483 |
Long-term contract liabilities | $ 165,188 | $ 101,363 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | $ 1.7 | $ 6 |
Operating leases with initial terms of 12 months or less | $ 0.1 | $ 0.4 |
Weighted average remaining lease term | 9 years | 9 years |
Weighted average discount rate | 7.00% | 7.00% |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 1 month | 1 month |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 10 years | 10 years |
Leases - Summary of Leases (Det
Leases - Summary of Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 29,293 | $ 21,181 | $ 0 |
Current operating lease liabilities | 6,547 | 6,769 | 0 |
Long-term operating lease liabilities | 30,256 | $ 19,737 | $ 0 |
Lease liabilities | $ 36,803 |
Leases - Maturity of Operating
Leases - Maturity of Operating Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ (39) |
2020 | 7,768 |
2021 | 6,729 |
2022 | 5,774 |
2023 | 5,039 |
Thereafter | 26,268 |
Total lease payments | 51,539 |
Less: Imputed interest | (14,736) |
Lease liabilities | 36,803 |
Incentive to lessee | $ 1,900 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 6,076 |
2020 | 5,929 |
2021 | 4,583 |
2022 | 3,756 |
2023 | 3,038 |
Thereafter | 11,615 |
Total lease payments | $ 34,997 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ (137) |
Leased assets obtained in exchange for new operating lease liabilities | $ 297 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations, net of tax | $ (1,546) | $ 2,173 | $ 6,074 | $ 5,116 |
Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 31 | 7,654 | 265 | 15,536 |
Cost of sales (excluding depreciation and amortization expense) | 1,204 | 3,587 | (395) | 8,798 |
Selling, general and administrative | 345 | 777 | 1,103 | 1,025 |
Depreciation and amortization | 0 | 480 | ||
Other (income) expense, net | 28 | 537 | (304) | (552) |
Provision for (benefit from) income taxes | 0 | 580 | (6,213) | 669 |
Income (loss) from discontinued operations, net of tax | (1,546) | 2,173 | 6,074 | 5,116 |
Venezuela | Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Cost of sales (excluding depreciation and amortization expense) | 0 | 0 | 0 | 0 |
Selling, general and administrative | 114 | 35 | 182 | 96 |
Depreciation and amortization | 0 | 0 | ||
Other (income) expense, net | 0 | 0 | 0 | 1 |
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 |
Income (loss) from discontinued operations, net of tax | (114) | (35) | (182) | (97) |
Belleli EPC | Exit of Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 31 | 7,654 | 265 | 15,536 |
Cost of sales (excluding depreciation and amortization expense) | 1,204 | 3,587 | (395) | 8,798 |
Selling, general and administrative | 231 | 742 | 921 | 929 |
Depreciation and amortization | 0 | 480 | ||
Other (income) expense, net | 28 | 537 | (304) | (553) |
Provision for (benefit from) income taxes | 0 | 580 | (6,213) | 669 |
Income (loss) from discontinued operations, net of tax | $ (1,432) | $ 2,208 | $ 6,256 | $ 5,213 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Balance Sheet Data (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Contract assets | $ 37,207 | $ 91,602 |
Total current assets associated with discontinued operations | 4,028 | 11,605 |
Total current liabilities associated with discontinued operations | 9,803 | 14,767 |
Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash | 0 | 3 |
Accounts receivable | 3,720 | 11,509 |
Contract assets | 308 | 0 |
Other current assets | 0 | 93 |
Total current assets associated with discontinued operations | 4,028 | 11,605 |
Property, plant and equipment, net | 0 | 28 |
Intangible and other assets, net | 2,979 | 1,633 |
Total assets associated with discontinued operations | 7,007 | 13,266 |
Accounts payable | 1,449 | 4,382 |
Accrued liabilities | 5,818 | 7,843 |
Contract liabilities | 2,536 | 2,542 |
Total current liabilities associated with discontinued operations | 9,803 | 14,767 |
Other long-term liabilities | 617 | 5,914 |
Total liabilities associated with discontinued operations | 10,420 | 20,681 |
Venezuela | Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash | 0 | 3 |
Accounts receivable | 0 | 0 |
Contract assets | 0 | 0 |
Other current assets | 0 | 7 |
Total current assets associated with discontinued operations | 0 | 10 |
Property, plant and equipment, net | 0 | 0 |
Intangible and other assets, net | 0 | 0 |
Total assets associated with discontinued operations | 0 | 10 |
Accounts payable | 0 | 0 |
Accrued liabilities | 108 | 12 |
Contract liabilities | 0 | 0 |
Total current liabilities associated with discontinued operations | 108 | 12 |
Other long-term liabilities | 0 | 0 |
Total liabilities associated with discontinued operations | 108 | 12 |
Belleli EPC | Exit of Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash | 0 | 0 |
Accounts receivable | 3,720 | 11,509 |
Contract assets | 308 | 0 |
Other current assets | 0 | 86 |
Total current assets associated with discontinued operations | 4,028 | 11,595 |
Property, plant and equipment, net | 0 | 28 |
Intangible and other assets, net | 2,979 | 1,633 |
Total assets associated with discontinued operations | 7,007 | 13,256 |
Accounts payable | 1,449 | 4,382 |
Accrued liabilities | 5,710 | 7,831 |
Contract liabilities | 2,536 | 2,542 |
Total current liabilities associated with discontinued operations | 9,695 | 14,755 |
Other long-term liabilities | 617 | 5,914 |
Total liabilities associated with discontinued operations | $ 10,312 | $ 20,669 |
Inventory, Net (Details)
Inventory, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Composition of Inventory net of reserves | ||
Parts and supplies | $ 111,372 | $ 92,016 |
Work in progress | 51,033 | 49,547 |
Finished goods | 7,994 | 9,126 |
Inventory, net | $ 170,399 | $ 150,689 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 2,091,972 | $ 1,999,466 |
Accumulated depreciation | (1,160,369) | (1,097,889) |
Property, plant and equipment, net | 931,603 | 901,577 |
Compression equipment, processing facilities and other fleet assets | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 1,806,860 | 1,713,153 |
Land and buildings | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 106,849 | 101,571 |
Transportation and shop equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 78,627 | 82,960 |
Computer software | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 58,401 | 54,572 |
Other | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 41,235 | $ 47,210 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||||
Long-lived asset impairment | $ 2,970 | $ 2,054 | $ 8,889 | $ 3,858 | |
Long-term assets held for sale | $ 2,142 | $ 2,142 | $ 0 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 495,683 | $ 404,259 |
Less: Amounts due within one year | (336) | (449) |
Long-term debt | 495,347 | 403,810 |
Other debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 350 | 687 |
8.125% senior notes due May 2025 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 375,000 | 375,000 |
Unamortized deferred financing costs of 8.125% senior notes | $ (5,667) | (6,428) |
Stated interest rate | 8.125% | |
Revolving credit facility due October 2023 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 126,000 | $ 35,000 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Narrative) (Details) - Revolving credit facility | Sep. 30, 2019USD ($) |
Amended Credit Agreement | |
Debt Instrument [Line Items] | |
Borrowing capacity under restated credit agreement | $ 700,000,000 |
Credit Agreement | |
Debt Instrument [Line Items] | |
Outstanding borrowings | 126,000,000 |
Outstanding letters of credit | 23,000,000 |
Undrawn capacity under revolving credit facility | $ 551,000,000 |
Maximum senior secured leverage ratio | 2.75 |
Undrawn capacity available | $ 472,900,000 |
Debt - 8.125% Senior Notes Due
Debt - 8.125% Senior Notes Due May 2025 (Narrative) (Details) - USD ($) | Sep. 30, 2019 | Apr. 30, 2017 |
Subsidiaries | Exterran Corporation | EESLP And EES Finance Corp. | ||
Debt Instrument [Line Items] | ||
Ownership percentage by parent | 100.00% | |
8.125% senior notes due May 2025 | Senior unsecured notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 8.125% | |
8.125% senior notes due May 2025 | Senior unsecured notes | EESLP And EES Finance Corp. | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount of senior unsecured notes | $ 375,000,000 | |
8.125% senior notes due May 2025 | Subsidiaries | Senior unsecured notes | EESLP And EES Finance Corp. | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 8.125% | |
Aggregate principal amount of senior unsecured notes | $ 375,000,000 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Measurements (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Summary of assets and liabilities measured at fair value on nonrecurring basis | |||
Long-term assets held for sale | $ 2,142 | $ 0 | |
Nonrecurring | Measurement Input, Maturity | |||
Summary of assets and liabilities measured at fair value on nonrecurring basis | |||
Settlement period | 8 years | ||
Nonrecurring | Measurement Input, Discount Rate | |||
Summary of assets and liabilities measured at fair value on nonrecurring basis | |||
Discount rate | 0.052 | ||
Nonrecurring | (Level 1) | |||
Summary of assets and liabilities measured at fair value on nonrecurring basis | |||
Impaired long-lived assets | $ 0 | 0 | |
Long-term assets held for sale | 0 | 0 | |
Long-term note receivable | 0 | 0 | |
Nonrecurring | (Level 2) | |||
Summary of assets and liabilities measured at fair value on nonrecurring basis | |||
Impaired long-lived assets | 0 | 0 | |
Long-term assets held for sale | 0 | 0 | |
Long-term note receivable | 0 | 0 | |
Nonrecurring | (Level 3) | |||
Summary of assets and liabilities measured at fair value on nonrecurring basis | |||
Impaired long-lived assets | 550 | 0 | |
Long-term assets held for sale | 21,026 | 2,142 | |
Long-term note receivable | $ 14,573 | $ 15,104 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Senior Notes - 8.125% senior notes due May 2025 - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Reported Value Measurement | ||
Summary of assets and liabilities measured at fair value | ||
Fair value of notes | $ 375 | $ 375 |
Estimate of Fair Value Measurement | ||
Summary of assets and liabilities measured at fair value | ||
Fair value of notes | $ 374 | $ 362 |
Long-Lived Asset Impairment (De
Long-Lived Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Long-Lived Asset Impairment | ||||
Long-lived asset impairment | $ 2,970 | $ 2,054 | $ 8,889 | $ 3,858 |
Contract Operations | ||||
Long-Lived Asset Impairment | ||||
Long-lived asset impairment | 2,100 | |||
Asset Held-for-sale | Products Sales Business | ||||
Long-Lived Asset Impairment | ||||
Long-lived asset impairment | $ 1,800 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 1,794 | $ 264 | $ 7,966 | $ 1,686 |
Cost Reduction Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 1,800 | 7,700 | ||
Relocation Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 300 | $ 200 | $ 1,700 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Summary of Charges to Accrued Liability Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 309 | $ 0 | ||
Additions for costs expensed, net | 7,966 | 1,422 | ||
Reductions for payments | (4,235) | (409) | ||
Ending balance | $ 4,040 | $ 1,013 | 4,040 | 1,013 |
Restructuring and other charges | 1,794 | 264 | 7,966 | 1,686 |
Employee termination benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 1,549 | 33 | 7,477 | 1,389 |
Relocation costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and other charges | 245 | 231 | 489 | 297 |
Cost Reduction Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 0 | 0 | ||
Additions for costs expensed, net | 7,673 | 0 | ||
Reductions for payments | (3,633) | 0 | ||
Ending balance | 4,040 | 0 | 4,040 | 0 |
Restructuring and other charges | 1,800 | 7,700 | ||
Relocation Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 309 | 0 | ||
Additions for costs expensed, net | 293 | 1,422 | ||
Reductions for payments | (602) | (409) | ||
Ending balance | $ 0 | 1,013 | 0 | 1,013 |
Restructuring and other charges | $ 300 | $ 200 | $ 1,700 |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | 21.00% | 21.00% |
Effective tax rate | (6.10%) | (240.40%) |
Effective tax rate difference due to tax rate differential | $ (0.8) | $ 6.6 |
Income tax on income in Argentina | 0.6 | 7.4 |
Rate differences between US and foreign jurisdiction | $ 2.5 | 7.3 |
Tax benefit related to settlement of Italian tax litigation | $ 6.5 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Feb. 20, 2019 | |
Equity [Abstract] | ||
Share repurchase program, authorized purchase amount | $ 100,000,000 | |
Shares repurchased (in shares) | 3,054,338 | |
Shares repurchased, value | $ 38,900,000 | |
Remaining authorized share repurchase amount | $ 61,100,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options granted (in shares) | shares | 0 |
Restricted stock, restricted stock units and performance units for common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated unrecognized compensation cost | $ | $ 15.2 |
Weighted-average vesting period | 1 year 7 months 6 days |
PSUs | First anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
PSUs | Second anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
PSUs | Third anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
RSUs | First anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
RSUs | Second anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
RSUs | Third anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
Restricted Stock | First anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
Restricted Stock | Second anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
Restricted Stock | Third anniversary | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 33.33% |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock, Restricted Stock Units and Performance Units for Common Stock (Details) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Weighted Average Grant-Date Fair Value Per Share | |
Shares held as liabilities due to expected cash settlement (in shares) | 329,000 |
Restricted stock, restricted stock units and performance units for common stock | |
Shares | |
Non-vested awards at the beginning of the period (in shares) | 1,044,000 |
Granted (in shares) | 826,000 |
Vested (in shares) | (502,000) |
Cancelled (in shares) | (128,000) |
Non-vested awards at the end of the period (in shares) | 1,240,000 |
Weighted Average Grant-Date Fair Value Per Share | |
Non-vested awards at the beginning of the period (in dollars per share) | $ / shares | $ 25.89 |
Granted (in dollars per share) | $ / shares | 16.90 |
Vested (in dollars per share) | $ / shares | 23.20 |
Cancelled (in dollars per share) | $ / shares | 22.05 |
Non-vested awards at the end of the period (in dollars per share) | $ / shares | $ 21.39 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator for basic and diluted net income (loss) per common share: | ||||
Income (loss) from continuing operations | $ (8,295) | $ 3,196 | $ (28,614) | $ 5,665 |
Income (loss) from discontinued operations, net of tax | (1,546) | 2,173 | 6,074 | 5,116 |
Less: Net income attributable to participating securities | 0 | (140) | 0 | (284) |
Net income (loss) — used in basic and diluted net income (loss) per common share | $ (9,841) | $ 5,229 | $ (22,540) | $ 10,497 |
Weighted average common shares outstanding including participating securities | ||||
Weighted average common shares outstanding including participating securities (in shares) | 34,523 | 36,430 | 35,623 | 36,361 |
Less: Weighted average participating securities outstanding (in shares) | (740) | (950) | (784) | (959) |
Weighted average common shares outstanding — used in basic net income (loss) per common share (in shares) | 33,783 | 35,480 | 34,839 | 35,402 |
Net dilutive potential common shares issuable: | ||||
On exercise of options and vesting of restricted stock units (in shares) | 64 | 67 | ||
Weighted average common shares outstanding — used in diluted net income (loss) per common share (in shares) | 33,783 | 35,544 | 34,839 | 35,469 |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ (0.29) | $ 0.15 | $ (0.65) | $ 0.30 |
Diluted (in dollars per share) | $ (0.29) | $ 0.15 | $ (0.65) | $ 0.30 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Schedule of Antidilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net dilutive potential common shares issuable (in shares) | 69 | 35 | 70 | 35 |
On exercise of options where exercise price is greater than average market value | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net dilutive potential common shares issuable (in shares) | 69 | 35 | 70 | 35 |
Commitments and Contingencies -
Commitments and Contingencies - Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Amount accrued for the outcomes of non-income-based tax audits | $ 5.1 | $ 5.1 |
Commitments and Contingencies_2
Commitments and Contingencies - Indemnifications (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Tax Attributable to Business after Spin-off | |
Loss Contingencies [Line Items] | |
Liability for certain taxes not clearly attributable to the business (as a percent) | 50.00% |
Reportable Segments - Narrative
Reportable Segments - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Reportable Segments - Schedule
Reportable Segments - Schedule of Revenues and Other Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 302,431 | $ 334,849 | $ 1,044,751 | $ 1,028,703 |
Total gross margin | 88,985 | 96,737 | 280,502 | 288,133 |
Contract Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 96,261 | 84,828 | 271,645 | 272,808 |
Total gross margin | 61,905 | 57,060 | 178,362 | 177,283 |
Aftermarket Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 34,893 | 29,993 | 92,308 | 88,631 |
Total gross margin | 8,814 | 7,855 | 24,494 | 23,890 |
Product Sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 171,277 | 220,028 | 680,798 | 667,264 |
Total gross margin | $ 18,266 | $ 31,822 | $ 77,646 | $ 86,960 |
Reportable Segments - Reconcili
Reportable Segments - Reconciliation of Income (Loss) Before Income Taxes to Total Gross Margin (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting [Abstract] | ||||
Income (loss) before income taxes | $ (7,818) | $ 11,150 | $ (8,405) | $ 28,733 |
Selling, general and administrative | 37,702 | 45,103 | 126,790 | 133,727 |
Depreciation and amortization | 42,133 | 31,108 | 116,669 | 92,321 |
Long-lived asset impairment | 2,970 | 2,054 | 8,889 | 3,858 |
Restatement related charges (recoveries), net | 0 | (342) | 20 | (318) |
Restructuring and other charges | 1,794 | 264 | 7,966 | 1,686 |
Interest expense | 10,103 | 7,685 | 28,194 | 21,787 |
Other (income) expense, net | 2,101 | (285) | 379 | 6,339 |
Total gross margin | $ 88,985 | $ 96,737 | $ 280,502 | $ 288,133 |
Supplemental Guarantor Financ_3
Supplemental Guarantor Financial Information - Narrative (Details) - USD ($) | Sep. 30, 2019 | Apr. 30, 2017 |
8.125% senior notes due May 2025 | Senior Notes | EESLP And EES Finance Corp. | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Debt instrument, face amount | $ 375,000,000 | |
Subsidiaries | 8.125% senior notes due May 2025 | Senior Notes | EESLP And EES Finance Corp. | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Debt instrument, face amount | $ 375,000,000 | |
Subsidiaries | Exterran Corporation | EESLP And EES Finance Corp. | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Ownership percentage by parent | 100.00% |
Supplemental Guarantor Financ_4
Supplemental Guarantor Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | |||||||||
Cash and cash equivalents | $ 21,979 | $ 19,300 | |||||||
Restricted cash | 19 | 178 | |||||||
Accounts receivable, net | 231,220 | 248,467 | |||||||
Inventory, net | 170,399 | 150,689 | |||||||
Contract assets | 37,207 | 91,602 | |||||||
Intercompany receivables | 0 | 0 | |||||||
Other current assets | 25,882 | $ 43,728 | 44,234 | ||||||
Current assets associated with discontinued operations | 4,028 | 11,605 | |||||||
Total current assets | 490,734 | 566,075 | |||||||
Property, plant and equipment, net | 931,603 | 901,577 | |||||||
Operating lease right-of-use assets | 29,293 | 21,181 | 0 | ||||||
Investment in affiliates | 0 | 0 | |||||||
Deferred income taxes | 10,314 | 11,370 | |||||||
Intangible and other assets, net | 85,671 | 86,018 | 86,371 | ||||||
Long-term assets held for sale | 2,142 | 0 | |||||||
Long-term assets associated with discontinued operations | 2,979 | 1,661 | |||||||
Total assets | 1,552,736 | 1,587,376 | 1,567,054 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Accounts payable, trade | 90,975 | 165,744 | |||||||
Accrued liabilities | 111,864 | 123,335 | |||||||
Contract liabilities | 105,788 | 153,483 | |||||||
Current operating lease liabilities | 6,547 | 6,769 | 0 | ||||||
Intercompany payables | 0 | 0 | |||||||
Current liabilities associated with discontinued operations | 9,803 | 14,767 | |||||||
Total current liabilities | 324,977 | 457,329 | |||||||
Long-term debt | 495,347 | 403,810 | |||||||
Deferred income taxes | 1,869 | 6,005 | |||||||
Long-term contract liabilities | 165,188 | 101,363 | |||||||
Long-term operating lease liabilities | 30,256 | 19,737 | 0 | ||||||
Other long-term liabilities | 45,383 | 39,812 | |||||||
Long-term liabilities associated with discontinued operations | 617 | 5,914 | |||||||
Total liabilities | 1,063,637 | 1,040,739 | 1,014,233 | ||||||
Total equity | 489,099 | $ 519,982 | $ 537,184 | 546,637 | 552,821 | $ 553,106 | $ 546,951 | $ 551,451 | $ 554,786 |
Total liabilities and equity | 1,552,736 | $ 1,587,376 | 1,567,054 | ||||||
Reportable Legal Entities | Parent Guarantor | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | 57 | 46 | |||||||
Restricted cash | 0 | 0 | |||||||
Accounts receivable, net | 0 | 0 | |||||||
Inventory, net | 0 | 0 | |||||||
Contract assets | 0 | 0 | |||||||
Intercompany receivables | 0 | 0 | |||||||
Other current assets | 0 | 0 | |||||||
Current assets associated with discontinued operations | 0 | 0 | |||||||
Total current assets | 57 | 46 | |||||||
Property, plant and equipment, net | 0 | 0 | |||||||
Operating lease right-of-use assets | 0 | ||||||||
Investment in affiliates | 528,740 | 554,207 | |||||||
Deferred income taxes | 0 | 0 | |||||||
Intangible and other assets, net | 0 | 0 | |||||||
Long-term assets held for sale | 0 | ||||||||
Long-term assets associated with discontinued operations | 0 | 0 | |||||||
Total assets | 528,797 | 554,253 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Accounts payable, trade | 0 | 0 | |||||||
Accrued liabilities | 0 | 0 | |||||||
Contract liabilities | 0 | 0 | |||||||
Current operating lease liabilities | 0 | ||||||||
Intercompany payables | 39,698 | 1,432 | |||||||
Current liabilities associated with discontinued operations | 0 | 0 | |||||||
Total current liabilities | 39,698 | 1,432 | |||||||
Long-term debt | 0 | 0 | |||||||
Deferred income taxes | 0 | 0 | |||||||
Long-term contract liabilities | 0 | 0 | |||||||
Long-term operating lease liabilities | 0 | ||||||||
Other long-term liabilities | 0 | 0 | |||||||
Long-term liabilities associated with discontinued operations | 0 | 0 | |||||||
Total liabilities | 39,698 | 1,432 | |||||||
Total equity | 489,099 | 552,821 | |||||||
Total liabilities and equity | 528,797 | 554,253 | |||||||
Reportable Legal Entities | Issuers | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | 905 | 1,185 | |||||||
Restricted cash | 0 | 0 | |||||||
Accounts receivable, net | 61,031 | 92,880 | |||||||
Inventory, net | 98,056 | 87,972 | |||||||
Contract assets | 12,479 | 67,323 | |||||||
Intercompany receivables | 248,420 | 158,977 | |||||||
Other current assets | 10,142 | 7,744 | |||||||
Current assets associated with discontinued operations | 0 | 0 | |||||||
Total current assets | 431,033 | 416,081 | |||||||
Property, plant and equipment, net | 250,813 | 303,813 | |||||||
Operating lease right-of-use assets | 11,677 | ||||||||
Investment in affiliates | 900,022 | 870,959 | |||||||
Deferred income taxes | 3,343 | 5,493 | |||||||
Intangible and other assets, net | 30,817 | 32,046 | |||||||
Long-term assets held for sale | 2,142 | ||||||||
Long-term assets associated with discontinued operations | 0 | 0 | |||||||
Total assets | 1,629,847 | 1,628,392 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Accounts payable, trade | 61,419 | 133,291 | |||||||
Accrued liabilities | 38,831 | 47,012 | |||||||
Contract liabilities | 61,861 | 82,367 | |||||||
Current operating lease liabilities | 1,922 | ||||||||
Intercompany payables | 389,860 | 379,628 | |||||||
Current liabilities associated with discontinued operations | 0 | 0 | |||||||
Total current liabilities | 553,893 | 642,298 | |||||||
Long-term debt | 495,347 | 403,810 | |||||||
Deferred income taxes | 0 | 0 | |||||||
Long-term contract liabilities | 21,957 | 17,226 | |||||||
Long-term operating lease liabilities | 18,128 | ||||||||
Other long-term liabilities | 11,782 | 10,851 | |||||||
Long-term liabilities associated with discontinued operations | 0 | 0 | |||||||
Total liabilities | 1,101,107 | 1,074,185 | |||||||
Total equity | 528,740 | 554,207 | |||||||
Total liabilities and equity | 1,629,847 | 1,628,392 | |||||||
Reportable Legal Entities | Non- Guarantor Subsidiaries | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | 21,017 | 18,069 | |||||||
Restricted cash | 19 | 178 | |||||||
Accounts receivable, net | 170,189 | 155,587 | |||||||
Inventory, net | 72,343 | 62,717 | |||||||
Contract assets | 24,728 | 24,279 | |||||||
Intercompany receivables | 389,860 | 379,628 | |||||||
Other current assets | 15,740 | 36,490 | |||||||
Current assets associated with discontinued operations | 4,028 | 11,605 | |||||||
Total current assets | 697,924 | 688,553 | |||||||
Property, plant and equipment, net | 680,790 | 597,764 | |||||||
Operating lease right-of-use assets | 17,616 | ||||||||
Investment in affiliates | (371,282) | (316,752) | |||||||
Deferred income taxes | 6,971 | 5,877 | |||||||
Intangible and other assets, net | 54,854 | 54,325 | |||||||
Long-term assets held for sale | 0 | ||||||||
Long-term assets associated with discontinued operations | 2,979 | 1,661 | |||||||
Total assets | 1,089,852 | 1,031,428 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Accounts payable, trade | 29,556 | 32,453 | |||||||
Accrued liabilities | 73,033 | 76,323 | |||||||
Contract liabilities | 43,927 | 71,116 | |||||||
Current operating lease liabilities | 4,625 | ||||||||
Intercompany payables | 208,722 | 157,545 | |||||||
Current liabilities associated with discontinued operations | 9,803 | 14,767 | |||||||
Total current liabilities | 369,666 | 352,204 | |||||||
Long-term debt | 0 | 0 | |||||||
Deferred income taxes | 1,869 | 6,005 | |||||||
Long-term contract liabilities | 143,231 | 84,137 | |||||||
Long-term operating lease liabilities | 12,128 | ||||||||
Other long-term liabilities | 33,601 | 28,961 | |||||||
Long-term liabilities associated with discontinued operations | 617 | 5,914 | |||||||
Total liabilities | 561,112 | 477,221 | |||||||
Total equity | 528,740 | 554,207 | |||||||
Total liabilities and equity | 1,089,852 | 1,031,428 | |||||||
Eliminations | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | 0 | 0 | |||||||
Restricted cash | 0 | 0 | |||||||
Accounts receivable, net | 0 | 0 | |||||||
Inventory, net | 0 | 0 | |||||||
Contract assets | 0 | 0 | |||||||
Intercompany receivables | (638,280) | (538,605) | |||||||
Other current assets | 0 | 0 | |||||||
Current assets associated with discontinued operations | 0 | 0 | |||||||
Total current assets | (638,280) | (538,605) | |||||||
Property, plant and equipment, net | 0 | 0 | |||||||
Operating lease right-of-use assets | 0 | ||||||||
Investment in affiliates | (1,057,480) | (1,108,414) | |||||||
Deferred income taxes | 0 | 0 | |||||||
Intangible and other assets, net | 0 | 0 | |||||||
Long-term assets held for sale | 0 | ||||||||
Long-term assets associated with discontinued operations | 0 | 0 | |||||||
Total assets | (1,695,760) | (1,647,019) | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Accounts payable, trade | 0 | 0 | |||||||
Accrued liabilities | 0 | 0 | |||||||
Contract liabilities | 0 | 0 | |||||||
Current operating lease liabilities | 0 | ||||||||
Intercompany payables | (638,280) | (538,605) | |||||||
Current liabilities associated with discontinued operations | 0 | 0 | |||||||
Total current liabilities | (638,280) | (538,605) | |||||||
Long-term debt | 0 | 0 | |||||||
Deferred income taxes | 0 | 0 | |||||||
Long-term contract liabilities | 0 | 0 | |||||||
Long-term operating lease liabilities | 0 | ||||||||
Other long-term liabilities | 0 | 0 | |||||||
Long-term liabilities associated with discontinued operations | 0 | 0 | |||||||
Total liabilities | (638,280) | (538,605) | |||||||
Total equity | (1,057,480) | (1,108,414) | |||||||
Total liabilities and equity | $ (1,695,760) | $ (1,647,019) |
Supplemental Guarantor Financ_5
Supplemental Guarantor Financial Information - Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | $ 302,431 | $ 334,849 | $ 1,044,751 | $ 1,028,703 | ||||
Cost of sales (excluding depreciation and amortization expense) | 213,446 | 238,112 | 764,249 | 740,570 | ||||
Selling, general and administrative | 37,702 | 45,103 | 126,790 | 133,727 | ||||
Depreciation and amortization | 42,133 | 31,108 | 116,669 | 92,321 | ||||
Long-lived asset impairment | 2,970 | 2,054 | 8,889 | 3,858 | ||||
Restatement related charges (recoveries), net | 0 | (342) | 20 | (318) | ||||
Restructuring and other charges | 1,794 | 264 | 7,966 | 1,686 | ||||
Interest expense | 10,103 | 7,685 | 28,194 | 21,787 | ||||
Intercompany charges, net | 0 | 0 | 0 | 0 | ||||
Equity in (income) loss of affiliates | 0 | 0 | 0 | 0 | ||||
Other (income) expense, net | 2,101 | (285) | 379 | 6,339 | ||||
Income (loss) before income taxes | (7,818) | 11,150 | (8,405) | 28,733 | ||||
Provision for income taxes | 477 | 7,954 | 20,209 | 23,068 | ||||
Income (loss) from continuing operations | (8,295) | 3,196 | (28,614) | 5,665 | ||||
Loss from discontinued operations, net of tax | (1,546) | 2,173 | 6,074 | 5,116 | ||||
Net income (loss) | (9,841) | $ (7,305) | $ (5,394) | 5,369 | $ 75 | $ 5,337 | (22,540) | 10,781 |
Other comprehensive loss | (3,631) | $ 420 | $ (968) | (2,673) | $ (8,123) | $ 757 | (4,179) | (10,039) |
Comprehensive income (loss) | (13,472) | 2,696 | (26,719) | 742 | ||||
Reportable Legal Entities | Parent Guarantor | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 0 | 0 | 0 | 0 | ||||
Cost of sales (excluding depreciation and amortization expense) | 0 | 0 | 0 | 0 | ||||
Selling, general and administrative | 344 | 285 | 885 | 920 | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||
Long-lived asset impairment | 0 | 0 | 0 | 0 | ||||
Restatement related charges (recoveries), net | 0 | 0 | 0 | |||||
Restructuring and other charges | 0 | 0 | 0 | 0 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Intercompany charges, net | 0 | 0 | 0 | 0 | ||||
Equity in (income) loss of affiliates | 9,497 | (5,654) | 21,655 | (11,548) | ||||
Other (income) expense, net | 0 | 0 | 0 | (153) | ||||
Income (loss) before income taxes | (9,841) | 5,369 | (22,540) | 10,781 | ||||
Provision for income taxes | 0 | 0 | 0 | 0 | ||||
Income (loss) from continuing operations | (9,841) | 5,369 | (22,540) | 10,781 | ||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||||
Net income (loss) | (9,841) | 5,369 | (22,540) | 10,781 | ||||
Other comprehensive loss | (3,631) | (2,673) | (4,179) | (10,039) | ||||
Comprehensive income (loss) | (13,472) | 2,696 | (26,719) | 742 | ||||
Reportable Legal Entities | Issuers | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 163,061 | 223,429 | 627,895 | 722,078 | ||||
Cost of sales (excluding depreciation and amortization expense) | 139,270 | 183,640 | 545,260 | 600,393 | ||||
Selling, general and administrative | 19,201 | 23,035 | 64,650 | 65,152 | ||||
Depreciation and amortization | 14,286 | 9,015 | 43,525 | 27,030 | ||||
Long-lived asset impairment | 2,970 | 1,277 | 8,889 | 3,081 | ||||
Restatement related charges (recoveries), net | (342) | 20 | (318) | |||||
Restructuring and other charges | 956 | 0 | 4,375 | 0 | ||||
Interest expense | 10,024 | 8,941 | 28,293 | 21,438 | ||||
Intercompany charges, net | (361) | 1,880 | 3,584 | 4,953 | ||||
Equity in (income) loss of affiliates | (104,869) | (4,186) | (50,473) | (13,817) | ||||
Other (income) expense, net | 91,950 | (477) | 3,618 | (1,846) | ||||
Income (loss) before income taxes | (10,366) | 646 | (23,846) | 16,012 | ||||
Provision for income taxes | (233) | 12,234 | 7,845 | 8,127 | ||||
Income (loss) from continuing operations | (10,133) | (11,588) | (31,691) | 7,885 | ||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||||
Net income (loss) | (10,133) | (11,588) | (31,691) | 7,885 | ||||
Other comprehensive loss | (3,631) | (2,673) | (4,179) | (10,039) | ||||
Comprehensive income (loss) | (13,764) | (14,261) | (35,870) | (2,154) | ||||
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | 158,436 | 129,517 | 504,165 | 369,209 | ||||
Cost of sales (excluding depreciation and amortization expense) | 93,242 | 72,569 | 306,298 | 202,761 | ||||
Selling, general and administrative | 18,157 | 21,783 | 61,255 | 67,655 | ||||
Depreciation and amortization | 27,847 | 22,093 | 73,144 | 65,291 | ||||
Long-lived asset impairment | 0 | 777 | 0 | 777 | ||||
Restatement related charges (recoveries), net | 0 | 0 | 0 | |||||
Restructuring and other charges | 838 | 264 | 3,591 | 1,686 | ||||
Interest expense | 79 | (1,256) | (99) | 349 | ||||
Intercompany charges, net | 361 | (1,880) | (3,584) | (4,953) | ||||
Equity in (income) loss of affiliates | 115,002 | 15,774 | 82,164 | 5,932 | ||||
Other (income) expense, net | (89,849) | 192 | (3,239) | 8,338 | ||||
Income (loss) before income taxes | (7,241) | (799) | (15,365) | 21,373 | ||||
Provision for income taxes | 1,346 | 12,962 | 22,400 | 18,604 | ||||
Income (loss) from continuing operations | (8,587) | (13,761) | (37,765) | 2,769 | ||||
Loss from discontinued operations, net of tax | (1,546) | 2,173 | 6,074 | 5,116 | ||||
Net income (loss) | (10,133) | (11,588) | (31,691) | 7,885 | ||||
Other comprehensive loss | (3,631) | (2,673) | (4,179) | (10,039) | ||||
Comprehensive income (loss) | (13,764) | (14,261) | (35,870) | (2,154) | ||||
Eliminations | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Revenues | (19,066) | (18,097) | (87,309) | (62,584) | ||||
Cost of sales (excluding depreciation and amortization expense) | (19,066) | (18,097) | (87,309) | (62,584) | ||||
Selling, general and administrative | 0 | 0 | 0 | 0 | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||
Long-lived asset impairment | 0 | 0 | 0 | 0 | ||||
Restatement related charges (recoveries), net | 0 | 0 | 0 | |||||
Restructuring and other charges | 0 | 0 | 0 | 0 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Intercompany charges, net | 0 | 0 | 0 | 0 | ||||
Equity in (income) loss of affiliates | (19,630) | (5,934) | (53,346) | 19,433 | ||||
Other (income) expense, net | 0 | 0 | 0 | 0 | ||||
Income (loss) before income taxes | 19,630 | 5,934 | 53,346 | (19,433) | ||||
Provision for income taxes | (636) | (17,242) | (10,036) | (3,663) | ||||
Income (loss) from continuing operations | 20,266 | 23,176 | 63,382 | (15,770) | ||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||||
Net income (loss) | 20,266 | 23,176 | 63,382 | (15,770) | ||||
Other comprehensive loss | 7,262 | 5,346 | 8,358 | 20,078 | ||||
Comprehensive income (loss) | $ 27,528 | $ 28,522 | $ 71,740 | $ 4,308 |
Supplemental Guarantor Financ_6
Supplemental Guarantor Financial Information - Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net cash provided by (used in) continuing operations | $ 120,995 | $ 88,793 |
Net cash provided by discontinued operations | 1,967 | 1,144 |
Net cash provided by operating activities | 122,962 | 89,937 |
Cash flows from investing activities: | ||
Capital expenditures | (172,118) | (152,226) |
Proceeds from sale of property, plant and equipment | 4,282 | 2,430 |
Proceeds from sale of business | 0 | 5,000 |
Intercompany transfers | 0 | 0 |
Settlement of foreign currency derivatives | (794) | 0 |
Net cash used in continuing operations | (168,630) | (144,796) |
Net cash provided by discontinued operations | 0 | 66 |
Net cash used in investing activities | (168,630) | (144,730) |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 530,000 | 415,000 |
Repayments of debt | (439,338) | (365,371) |
Intercompany transfers | 0 | 0 |
Transfer from Archrock, Inc. | 420 | 0 |
Payments for debt issuance costs | 0 | (92) |
Proceeds from stock options exercised | 0 | 548 |
Purchases of treasury stock | (41,596) | (3,780) |
Net cash provided by financing activities | 49,486 | 46,305 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,298) | (3,691) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 2,520 | (12,179) |
Cash, cash equivalents and restricted cash at beginning of period | 19,478 | 49,691 |
Cash, cash equivalents and restricted cash at end of period | 21,998 | 37,512 |
Reportable Legal Entities | Parent Guarantor | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) continuing operations | 683 | (386) |
Net cash provided by discontinued operations | 0 | 0 |
Net cash provided by operating activities | 683 | (386) |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Proceeds from sale of property, plant and equipment | 0 | 0 |
Proceeds from sale of business | 0 | |
Intercompany transfers | 0 | 0 |
Settlement of foreign currency derivatives | 0 | |
Net cash used in continuing operations | 0 | |
Net cash provided by discontinued operations | 0 | |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Intercompany transfers | 38,268 | (5) |
Transfer from Archrock, Inc. | 0 | |
Payments for debt issuance costs | 0 | |
Proceeds from stock options exercised | 0 | |
Purchases of treasury stock | (38,939) | 0 |
Net cash provided by financing activities | (671) | (5) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 12 | (391) |
Cash, cash equivalents and restricted cash at beginning of period | 45 | 397 |
Cash, cash equivalents and restricted cash at end of period | 57 | 6 |
Reportable Legal Entities | Issuers | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) continuing operations | (8,442) | (7,525) |
Net cash provided by discontinued operations | 0 | 0 |
Net cash provided by operating activities | (8,442) | (7,525) |
Cash flows from investing activities: | ||
Capital expenditures | (69,290) | (54,713) |
Proceeds from sale of property, plant and equipment | 731 | 51 |
Proceeds from sale of business | 5,000 | |
Intercompany transfers | (38,268) | 5 |
Settlement of foreign currency derivatives | (794) | |
Net cash used in continuing operations | (49,657) | |
Net cash provided by discontinued operations | 0 | |
Net cash used in investing activities | (107,621) | (49,657) |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 530,000 | 415,000 |
Repayments of debt | (439,338) | (365,371) |
Intercompany transfers | 27,357 | (6,562) |
Transfer from Archrock, Inc. | 420 | |
Payments for debt issuance costs | (92) | |
Proceeds from stock options exercised | 548 | |
Purchases of treasury stock | (2,657) | (3,780) |
Net cash provided by financing activities | 115,782 | 39,743 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (281) | (17,439) |
Cash, cash equivalents and restricted cash at beginning of period | 1,186 | 24,195 |
Cash, cash equivalents and restricted cash at end of period | 905 | 6,756 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) continuing operations | 128,754 | 96,704 |
Net cash provided by discontinued operations | 1,967 | 1,144 |
Net cash provided by operating activities | 130,721 | 97,848 |
Cash flows from investing activities: | ||
Capital expenditures | (102,828) | (97,513) |
Proceeds from sale of property, plant and equipment | 3,551 | 2,379 |
Proceeds from sale of business | 0 | |
Intercompany transfers | (27,357) | 6,562 |
Settlement of foreign currency derivatives | 0 | |
Net cash used in continuing operations | (88,572) | |
Net cash provided by discontinued operations | 66 | |
Net cash used in investing activities | (126,634) | (88,506) |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Intercompany transfers | 0 | 0 |
Transfer from Archrock, Inc. | 0 | |
Payments for debt issuance costs | 0 | |
Proceeds from stock options exercised | 0 | |
Purchases of treasury stock | 0 | 0 |
Net cash provided by financing activities | 0 | 0 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,298) | (3,691) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 2,789 | 5,651 |
Cash, cash equivalents and restricted cash at beginning of period | 18,247 | 25,099 |
Cash, cash equivalents and restricted cash at end of period | 21,036 | 30,750 |
Eliminations | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) continuing operations | 0 | 0 |
Net cash provided by discontinued operations | 0 | 0 |
Net cash provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Proceeds from sale of property, plant and equipment | 0 | 0 |
Proceeds from sale of business | 0 | |
Intercompany transfers | 65,625 | (6,567) |
Settlement of foreign currency derivatives | 0 | |
Net cash used in continuing operations | (6,567) | |
Net cash provided by discontinued operations | 0 | |
Net cash used in investing activities | 65,625 | (6,567) |
Cash flows from financing activities: | ||
Proceeds from borrowings of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Intercompany transfers | (65,625) | 6,567 |
Transfer from Archrock, Inc. | 0 | |
Payments for debt issuance costs | 0 | |
Proceeds from stock options exercised | 0 | |
Purchases of treasury stock | 0 | 0 |
Net cash provided by financing activities | (65,625) | 6,567 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | $ 0 | $ 0 |