Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 30, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 1-8726 | ||
Entity Registrant Name | RPC, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 58-1550825 | ||
Entity Address, Address Line One | 2801 BUFORD HIGHWAY NE, SUITE 300 | ||
Entity Address, City or Town | ATLANTA | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30329 | ||
City Area Code | 404 | ||
Local Phone Number | 321-2140 | ||
Title of 12(b) Security | COMMON STOCK, $0.10 PAR VALUE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 410,695,775 | ||
Entity Common Stock, Shares Outstanding | 214,432,084 | ||
Entity Central Index Key | 0000742278 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | RES |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 50,023 | $ 116,262 |
Accounts receivable, net | 242,574 | 323,533 |
Inventories | 100,947 | 130,083 |
Income taxes receivable | 24,145 | 35,832 |
Prepaid expenses | 10,459 | 9,766 |
Assets held for sale | 5,385 | |
Other current assets | 3,325 | 3,462 |
Current assets | 436,858 | 618,938 |
Property, plant and equipment, net | 516,727 | 517,982 |
Operating lease right-of-use assets | 33,850 | |
Goodwill | 32,150 | 32,150 |
Other assets | 33,633 | 30,510 |
Total assets | 1,053,218 | 1,199,580 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 53,147 | 103,401 |
Accrued payroll and related expenses | 19,641 | 25,715 |
Accrued insurance expenses | 7,540 | 6,183 |
Accrued state, local and other taxes | 2,427 | 3,081 |
Income taxes payable | 1,534 | 4,706 |
Current portion of operating leases | 10,625 | |
Other accrued expenses | 6,488 | 151 |
Current liabilities | 101,402 | 143,237 |
Long-term accrued insurance expenses | 14,040 | 12,072 |
Long-term pension liabilities | 39,254 | 29,638 |
Deferred income taxes | 37,319 | 60,375 |
Long-term operating lease liabilities | 28,378 | |
Other long-term liabilities | 2,492 | 3,839 |
Total liabilities | 222,885 | 249,161 |
Commitments and contingencies (Note 11) | ||
STOCKHOLDER'S EQUITY | ||
Preferred stock, $0.10 par value, 1,000,000 shares authorized, none issued | ||
Common stock, $0.10 par value, 349,000,000 shares authorized, 214,422,979 and 214,543,511 shares issued and outstanding in 2019 and 2018, respectively | 21,443 | 21,454 |
Capital in excess of par value | ||
Retained earnings | 832,113 | 947,711 |
Accumulated other comprehensive loss | (23,223) | (18,746) |
Total stockholders' equity | 830,333 | 950,419 |
Total liabilities and stockholders' equity | $ 1,053,218 | $ 1,199,580 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 349,000,000 | 349,000,000 |
Common stock, shares issued (in shares) | 214,422,979 | 214,543,511 |
Common stock, shares outstanding (in shares) | 214,422,979 | 214,543,511 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
REVENUES | $ 1,222,409 | $ 1,721,005 | $ 1,595,227 |
Cost of revenues (exclusive of items shown separately below) | 919,595 | 1,183,048 | 1,050,809 |
Selling, general and administrative expenses | 168,127 | 168,151 | 159,194 |
Impairment and other charges | 82,273 | ||
Depreciation and amortization | 170,409 | 163,120 | 163,537 |
Gain on disposition of assets, net | (3,707) | (3,344) | (4,530) |
Operating (loss) profit | (114,288) | 210,030 | 226,217 |
Interest expense | (334) | (489) | (426) |
Interest income | 1,906 | 2,426 | 1,494 |
Other (expense) income, net | (385) | 9,313 | 5,531 |
(Loss) income before income taxes | (113,101) | 221,280 | 232,816 |
Income tax (benefit) provision | (25,990) | 45,878 | 70,305 |
Net (loss) income | $ (87,111) | $ 175,402 | $ 162,511 |
(LOSS) EARNINGS PER SHARE | |||
Basic (in dollars per share) | $ (0.41) | $ 0.82 | $ 0.75 |
Diluted (in dollars per share) | (0.41) | 0.82 | 0.75 |
Dividends paid per share (in dollars per share) | $ 0.15 | $ 0.47 | $ 0.20 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net (loss) income | $ (87,111) | $ 175,402 | $ 162,511 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES: | |||
Pension adjustment | (5,030) | (1,408) | 1,033 |
Foreign currency translation | 553 | (621) | 391 |
Unrealized loss on securities, net reclassification adjustments | (24) | ||
COMPREHENSIVE (LOSS) INCOME | $ (91,588) | $ 173,373 | $ 163,911 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2016 | $ 21,749 | $ 803,152 | $ (18,102) | $ 806,799 | |
Balance (in shares) at Dec. 31, 2016 | 217,489,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for stock incentive plans, net | $ 42 | $ 11,048 | 11,090 | ||
Stock issued for stock incentive plans, net (in shares) | 420,000 | ||||
Stock purchased and retired | $ (137) | (11,048) | (15,599) | (26,784) | |
Stock purchased and retired (in shares) | (1,365,000) | ||||
Net (loss) income | 162,511 | 162,511 | |||
Pension adjustment, net of taxes | 1,033 | 1,033 | |||
Foreign currency translation | 391 | 391 | |||
Unrealized loss on securities; net of taxes and reclassification adjustment | (24) | (24) | |||
Dividends declared | (43,319) | (43,319) | |||
Balance at Dec. 31, 2017 | $ 21,654 | 906,745 | (16,702) | 911,697 | |
Balance (in shares) at Dec. 31, 2017 | 216,544,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for stock incentive plans, net | $ 37 | 9,382 | 9,419 | ||
Stock issued for stock incentive plans, net (in shares) | 367,000 | ||||
Stock purchased and retired | $ (237) | (9,382) | (33,382) | (43,001) | |
Stock purchased and retired (in shares) | (2,367,000) | ||||
Net (loss) income | 175,402 | 175,402 | |||
Pension adjustment, net of taxes | (1,408) | (1,408) | |||
Foreign currency translation | (621) | (621) | |||
Dividends declared | (101,069) | (101,069) | |||
Balance at Dec. 31, 2018 | $ 21,454 | 947,711 | (18,746) | $ 950,419 | |
Balance (in shares) at Dec. 31, 2018 | 214,544,000 | 214,543,511 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Adoption of accounting standard (Note 1) | 15 | (15) | |||
Stock issued for stock incentive plans, net | $ 66 | 8,564 | $ 8,630 | ||
Stock issued for stock incentive plans, net (in shares) | 667,000 | ||||
Stock purchased and retired | $ (77) | $ (8,564) | 1,280 | (7,361) | |
Stock purchased and retired (in shares) | (788,000) | ||||
Net (loss) income | (87,111) | (87,111) | |||
Pension adjustment, net of taxes | (2,298) | (2,298) | |||
Foreign currency translation | 553 | 553 | |||
Dividends declared | (32,231) | (32,231) | |||
Balance at Dec. 31, 2019 | $ 21,443 | 832,113 | (23,223) | $ 830,333 | |
Balance (in shares) at Dec. 31, 2019 | 214,423,000 | 214,422,979 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Adoption of accounting standard (Note 1) | $ 2,464 | $ (2,732) | $ (268) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net (loss) income | $ (87,111) | $ 175,402 | $ 162,511 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation, amortization and other non-cash charges | 172,607 | 166,789 | 166,558 |
Stock-based compensation expense | 8,630 | 9,419 | 11,090 |
Gain on disposition of assets, net | 2,645 | 3,344 | 4,530 |
Gain due to insurance recovery | (9,646) | ||
Gain due to benefit plan financing arrangement | (126) | (1,020) | |
Deferred income tax (benefit) provision | (22,225) | 21,395 | (42,609) |
Impairment and other charges, net | 73,560 | ||
(Increase) decrease in assets: | |||
Accounts receivable | 81,094 | 53,982 | (208,642) |
Income taxes receivable | 11,687 | 4,410 | 16,931 |
Inventories | 20,962 | (15,660) | (6,275) |
Prepaid expenses | (692) | (778) | (2,272) |
Other current assets | 300 | 3,375 | (1,222) |
Other non-current assets | (3,024) | 1,494 | (4,779) |
Increase (decrease) in liabilities: | |||
Accounts payable | (42,241) | (7,754) | 29,176 |
Income taxes payable | (3,172) | 1,482 | (1,705) |
Accrued payroll and related expenses | (6,103) | 2,193 | 11,408 |
Accrued insurance expenses | 1,357 | 884 | 1,200 |
Accrued state, local and other taxes | (654) | (5,574) | 5,561 |
Other accrued expenses | (2,089) | (994) | (5,335) |
Pension liabilities | 6,575 | (7,862) | 4,398 |
Long-term accrued insurance expenses | 1,968 | 1,696 | 839 |
Other long-term liabilities | 483 | (880) | 1,401 |
Net cash provided by operating activities | 209,141 | 389,009 | 133,704 |
INVESTING ACTIVITIES | |||
Capital expenditures | (250,629) | (242,610) | (117,509) |
Proceeds from sale of assets | 14,841 | 13,237 | 13,123 |
Proceeds from insurance recovery | 9,646 | ||
Proceeds from benefit plan financing arrangement | 507 | 2,218 | |
Re-investment in benefit plan financing arrangement | (507) | (2,218) | |
Net cash used for investing activities | (235,788) | (219,727) | (104,386) |
FINANCING ACTIVITIES | |||
Payment of dividends | (32,231) | (101,069) | (43,319) |
Cash paid for common stock purchased and retired | (7,361) | (43,001) | (26,784) |
Net cash used for financing activities | (39,592) | (144,070) | (70,103) |
Net (decrease) increase in cash and cash equivalents | (66,239) | 25,212 | (40,785) |
Cash and cash equivalents at beginning of year | 116,262 | 91,050 | 131,835 |
Cash and cash equivalents at end of year | $ 50,023 | $ 116,262 | $ 91,050 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies | |
Significant Accounting Policies | Note 1: Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of RPC, Inc. and its wholly-owned subsidiaries (“RPC” or the “Company”). All significant intercompany accounts and transactions have been eliminated. Common Stock RPC is authorized to issue 349,000,000 shares of common stock, $0.10 par value. Holders of common stock are entitled to receive dividends when, as, and if declared by the Board of Directors out of legally available funds. Each share of common stock is entitled to one vote on all matters submitted to a vote of stockholders. Holders of common stock do not have cumulative voting rights. In the event of any liquidation, dissolution or winding up of the Company, holders of common stock are entitled to ratable distribution of the remaining assets available for distribution to stockholders. Preferred Stock RPC is authorized to issue up to 1,000,000 shares of preferred stock, $0.10 par value. As of December 31, 2019, there were no shares of preferred stock issued. The Board of Directors is authorized, subject to any limitations prescribed by law, to provide for the issuance of preferred stock as a class without series or, if so determined from time to time, in one or more series, and by filing a certificate pursuant to the applicable laws of the state of Delaware and to fix the designations, powers, preferences and rights, exchangeability for shares of any other class or classes of stock. Any preferred stock to be issued could rank prior to the common stock with respect to dividend rights and rights on liquidation . Dividends On July 22, 2019, the Board of Directors voted to suspend RPC’s dividend to common stockholders. The Company expects to resume cash dividends to common stockholders, subject to the earnings and financial condition of the Company and other relevant factors. The Company has no timetable for the resumption of dividends. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are used in the determination of the allowance for doubtful accounts, income taxes, accrued insurance expenses, depreciable lives of assets, and pension liabilities. Revenues RPC recognizes revenues from contracts with its customers based on the amount of consideration it receives in exchange for the services provided. See Note 2 for additional information. Concentration of Credit Risk Substantially all of the Company’s customers are engaged in the oil and gas industry. This concentration of customers may impact overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic and industry conditions. The Company provided oilfield services to several hundred customers during each of the last three years. There was no customer that accounted for more than 10 percent of the Company’s revenues in 2019, 2018 or 2017. Additionally, there was no customer that accounted for more than 10 percent of accounts receivable as of December 31, 2019 or 2018. Cash and Cash Equivalents Highly liquid investments with original maturities of three months or less when acquired are considered to be cash equivalents. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits. RPC maintains cash equivalents and investments in one or more large financial institutions, and RPC’s policy restricts investment in any securities rated less than “investment grade” by national rating services. Investments Investments classified as available-for-sale securities are stated at their fair values, with the unrealized gains and losses, net of tax, reported as a separate component of stockholders’ equity. The cost of securities sold is based on the specific identification method. Realized gains and losses, declines in value judged to be other than temporary, interest, and dividends with respect to available-for-sale securities are included in interest income. The Company realized no gains or losses on its available-for-sale securities during 2019, 2018 and 2017. Securities that are held in the non-qualified Supplemental Executive Retirement Plan (“SERP”) are classified as trading. See Note 12 for further information regarding the SERP. The change in fair value of trading securities is presented as compensation cost in selling, general and administrative expenses on the consolidated statements of operations. Management determines the appropriate classification of investments at the time of purchase and re-evaluates such designations as of each balance sheet date. Accounts Receivable The majority of the Company’s accounts receivable is due principally from major and independent oil and natural gas exploration and production companies. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are considered past due after 60 days and are stated at amounts due from customers, net of an allowance for doubtful accounts. Allowance for Doubtful Accounts Accounts receivable are carried at the amounts due from customers, reduced by an allowance for estimated amounts that may not be collectible in the future. The estimated allowance for doubtful accounts is based on an evaluation of industry trends, financial condition of customers, historical write-off experience, current economic conditions, and in the case of international customers, judgments about the economic and political environment of the related country and region. Accounts are written off against the allowance for doubtful accounts when the Company determines that amounts are uncollectible and recoveries of previously written-off accounts are recorded when collected. Inventories Inventories, which consist principally of (i) raw materials and supplies that are consumed providing services to the Company’s customers, (ii) spare parts for equipment used in providing these services and (iii) components and attachments for manufactured equipment used in providing services, are recorded at the lower of cost or net realizable value. Cost is determined using first-in, first-out (“FIFO”) method or the weighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company regularly reviews inventory quantities on hand and records a write-down for excess or obsolete inventory based primarily on its estimated forecast of product demand, market conditions, production requirements and technological developments. Property, Plant and Equipment Property, plant and equipment, including software costs, are reported at cost less accumulated depreciation and amortization, which is provided on a straight-line basis over the estimated useful lives of the assets. Annual depreciation and amortization expenses are computed using the following useful lives: operating equipment, 3 to 20 years; buildings and leasehold improvements, 15 to 39 years or the life of the lease; furniture and fixtures, 5 to 7 years; software, 5 years; and vehicles, 3 to 5 years. The cost of assets retired or otherwise disposed of and the related accumulated depreciation and amortization are eliminated from the accounts in the year of disposal with the resulting gain or loss credited or charged to income from operations. Expenditures for additions, major renewals, and betterments are capitalized. Expenditures for restoring an identifiable asset to working condition or for maintaining the asset in good working order constitute repairs and maintenance and are expensed as incurred. RPC records impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The Company periodically reviews the values assigned to long-lived assets, such as property, plant and equipment, to determine if any impairments should be recognized. Management believes that the long-lived assets in the accompanying balance sheets have not been impaired. During the year ended December 31, 2019, the Company recorded accelerated depreciation related to certain operating equipment that was retired. In addition, the Company recorded a write down for certain real estate that were classified as held for sale. See Note 3 for additional information. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets of businesses acquired. The carrying amount of goodwill by reportable segment was as follows: Years Ended December 31, 2019 2018 (in thousands) Technical Services $ 30,992 $ 30,992 Support Services 1,158 1,158 Goodwill $ 32,150 $ 32,150 Goodwill is reviewed annually, or more frequently, if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount, for impairment. In 2019 and 2018, the Company performed a quantitative impairment test by estimating the fair value of each of its reporting units by considering both comparable public company multiples (a market approach) and projected discounted future cash flows (an income approach). The discounted cash flow analysis is based on management’s short-term and long-term forecast of operating results for each reporting unit and includes assumptions regarding discount rates, revenue growth rates, expected profitability margins, forecasted capital expenditures, and the timing of expected future cash flows. Based on this analysis, the Company concluded that the fair value of its reporting units exceeded their carrying amount and therefore no impairment of goodwill occurred for the years ended December 31, 2019 and 2018. Advertising Advertising expenses are charged to expense during the period in which they are incurred. Advertising expenses totaled $2,003,000 in 2019, $2,220,000 in 2018, and $1,696,000 in 2017 . Insurance Expenses RPC self-insures, up to certain policy-specified limits, certain risks related to general liability, workers’ compensation, vehicle and equipment liability, and employee health insurance plan costs. The estimated cost of claims under these self-insurance programs is estimated and accrued as the claims are incurred (although actual settlement of the claims may not be made until future periods) and may subsequently be revised based on developments relating to such claims. The portion of these estimated outstanding claims expected to be paid more than one year in the future is classified as long-term accrued insurance expenses. Income Taxes Deferred tax liabilities and assets are determined based on the difference between the financial and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The newly enacted Tax Cuts and Jobs Act required the revaluation of our deferred tax assets and liabilities to reflect the change in Federal income tax rates from 35 percent to 21 percent. The Company’s net deferred tax liability as of December 31, 2017 was reduced through a discrete income tax provision adjustment of $19.3 million related to this rate change. The Company establishes a valuation allowance against the carrying value of deferred tax assets when the Company determines that it is more likely than not that the asset will not be realized through future taxable income. Defined Benefit Pension Plan The Company has a defined benefit pension plan that provides monthly benefits upon retirement at age 65 to eligible employees with at least one year of service prior to 2002. In 2002, the Company’s Board of Directors approved a resolution to cease all future retirement benefit accruals under the defined benefit pension plan. See Note 11 for a full description of this plan and the related accounting and funding policies. Share Repurchases The Company records the cost of share repurchases in stockholders’ equity as a reduction to common stock to the extent of par value of the shares acquired and the remainder is allocated to capital in excess of par value and retained earnings if capital in excess of par value is depleted. The Company tracks capital in excess of par value on a cumulative basis for each reporting period, discloses the excess over capital in excess of par value as part of stock purchased and retired in the consolidated statements of stockholders’ equity. Earnings per Share Basic and diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. In addition, the Company has periodically issued share-based payment awards that contain non-forfeitable rights to dividends and are therefore considered participating securities. See Note 12 for further information on restricted stock granted to employees. Restricted shares of common stock (participating securities) outstanding and a reconciliation of weighted average shares outstanding is as follows: (In thousands except per share data ) 2019 2018 2017 Net (loss) income available for stockholders $ (87,111) $ 175,402 $ 162,511 Less: Adjustments for losses attributable to participating securities (334) (1,839) (2,102) Net (loss) income used in calculating per share amounts $ (87,445) $ 173,563 $ 160,409 Weighted average shares outstanding (including participating securities) 214,730 215,198 217,194 Adjustment for participating securities (2,509) (2,453) (2,891) Shares used in calculating basic and diluted (loss) earnings per share 212,221 212,745 214,303 Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, investments, accounts payable, and debt. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of such instruments. The Company’s investments are classified as available-for-sale securities with the exception of investments held in the non-qualified Supplemental Executive Retirement Plan (“SERP”) which are classified as trading securities. All of these securities are carried at fair value in the accompanying consolidated balance sheets. See Note 10 for additional information. Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payment awards, net estimated forfeitures. Thus, compensation cost is amortized for those shares expected to vest on a straight-line basis over the requisite service period of the award. See Note 12 for additional information. Recent Accounting Pronouncements The FASB issued the following applicable Accounting Standards Updates (ASU): Recently Adopted Accounting Standards: ● Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). The Company adopted ASC 842 , Leases, and all the related amendments on January 1, 2019, by recognizing on its balance sheet, a right-of-use asset and lease liabilities totaling approximately $44 million, for all of its leases with terms greater than 12 months. The Company adopted the standard using the optional transition method, with an immaterial adjustment to retained earnings upon adoption. The comparative information has not been restated and continues to be reported under the accounting standards that were in effect for those periods. The adoption of the standard did not have a material impact on the Company’s consolidated statements of operations and consolidated statements of cash flows. See Note 15 “Leases” in the Notes to Consolidated Financial Statements for expanded disclosures ● ASU No. 2018-02— Income Statement—Reporting Comprehensive Income (Topic 220)—Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments provide an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recorded. The Company adopted the standard in the first quarter of 2019 and elected to reclassify approximately $2.7 million of stranded tax effects related to its pension plan from AOCI to retained earnings. ● ASU No. 2018-07 — Compensation —Stock Compensation (Topic 718) —Improvements to Nonemployee Share-Based Payment Accounting. The amendments expand the scope of ASU 718 to include share-based payments issued to nonemployees for goods or services, thereby substantially aligning the accounting for share-based payments to nonemployees and employees. The Company adopted these provisions in the first quarter of 2019 and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted: To be adopted in 2020 and later: ● ASU No. 2016-13, Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The ASU introduced a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for recognition in place of the current incurred loss model. The Company adopted the provisions of the standard in the first quarter of 2020 and currently expects the adoption to have an immaterial cumulative-effect adjustment to the opening balance of retained earnings. The Company plans to continue to record an allowance on its trade receivables based on aging at the end of each reporting period using current reasonable and supportable forecasted economic conditions. ● ASU No. 2017-04 —Intangibles —Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company adopted these provisions in the first quarter of 2020, on a prospective basis. ● ASU No. 2018-15 — Intangibles —Goodwill and Other —Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments reduce the complexity for the accounting for costs of implementing a cloud computing service arrangement and align the requirements for capitalizing implementation costs that are incurred in a hosting arrangement that is a service contract with the costs incurred to develop or obtain internal-use software. The Company adopted these provisions in the first quarter of 2020 and the adoption did not have a material impact on its consolidated financial statements. ● ASU No. 2019-12 — Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing the exceptions to the incremental approach for intra-period tax allocation in certain situations, requirement to recognize a deferred tax liability for a change in the status of a foreign investment, and the general methodology for computing income taxes in an interim period when year-to date loss exceeds the anticipated loss for the year. The amendments also simplify the accounting for income taxes with regard to franchise tax, evaluation of step up in the tax basis goodwill in certain business combinations, allocating current and deferred tax expense to legal entities that are not subject to tax and enacted change in tax laws or rates. The amendments are effective for fiscal years beginning after December 15,2020, and for interim periods within those fiscal years. The company is currently evaluating the impact of adopting these provisions on its consolidated financial statements. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenues | |
Revenues | Note 2: Revenues Accounting Policy RPC’s contract revenues are generated principally from providing oilfield services. These services are based on mutually agreed upon pricing with the customer prior to the services being delivered and, given the nature of the services, do not include the right of return. Pricing for these services is a function of rates based on the nature of the specific job, with consideration for the extent of equipment, labor, and consumables needed for the job. RPC typically satisfies its performance obligations over time as the services are performed. RPC records revenues based on the transaction price agreed upon with its customers. Sales tax charged to customers is presented on a net basis within the consolidated statements of operations and therefore excluded from revenues. Nature of services RPC provides a broad range of specialized oilfield services to independent and major oil and gas companies engaged in the exploration, production and development of oil gas properties throughout the United States and in selected international markets. RPC manages its business as either (1) services offered on the well site with equipment and personnel (Technical Services) or (2) services and tools offered off the well site (Support Services). For more detailed information about operating segments, see Note 14. RPC contracts with its customers to provide the following services by reportable segment: Technical Services ● Includes pressure pumping, downhole tools services, coiled tubing, nitrogen, snubbing and other oilfield related services including wireline, well control, fishing and pump down services. Support Services ● Rental tools – RPC rents tools to its customers for use with onshore and offshore oil and gas well drilling, completion and workover activities. ● Other support services include oilfield pipe inspection services, management and storage; well control training; and consulting. Our contracts with customers are generally very short-term in nature and generally consist of a single performance obligation – the provision of oilfield services. Payment terms RPC’s contracts with the customer states the final terms of the sales, including the description, quantity, and price of each service to be delivered. The Company’s contracts are generally short-term in nature and in most situations, RPC provides services ahead of payment - i.e., RPC has fulfilled the performance obligation prior to submitting a customer invoice. RPC invoices the customer upon completion of the specified services and collection generally occurs between 30 to 60 days after invoicing. As the Company enters into contracts with its customers, it generally expects there to be no significant timing difference between the date the services are provided to the customer (satisfaction of the performance obligation) and the date cash consideration is received. Accordingly, there is no financing component to our arrangements with customers. Significant judgments RPC believes the output method is a reasonable measure of progress for the satisfaction of our performance obligations, which are satisfied over time, as it provides a faithful depiction of (1) our performance toward complete satisfaction of the performance obligation under the contract and (2) the value transferred to the customer of the services performed under the contract. RPC has elected the right to invoice practical expedient for recognizing revenue related to its performance obligations. Disaggregation of revenues See Note 14 for disaggregation of revenue by operating segment and services offered in each of them and by geographic regions. Timing of revenue recognition for each of the periods presented is shown below: (in thousands) 2019 2018 2017 Oilfield services transferred at a point in time $ — $ — $ — Oilfield services transferred over time 1,222,409 1,721,005 1,595,227 Total revenues $ 1,222,409 $ 1,721,005 $ 1,595,227 Contract balances Contract assets representing the Company’s rights to consideration for work completed but not billed are included in Accounts receivable, net on the Consolidated Balance Sheets are shown below: (in thousands) 2019 2018 Unbilled trade receivables $ 52,052 $ 56,408 Substantially all of the unbilled trade receivables as of December 31, 2019 and December 31, 2018 were invoiced during the following quarter. |
Impairment and Other Charges
Impairment and Other Charges | 12 Months Ended |
Dec. 31, 2019 | |
Impairment and Other Charges. | |
Impairment and Other Charges | Note 3: Impairment and Other Charges In response to the decline in customer activities and expectation for it to continue in the near term, the Company recorded the following estimated pre-tax charges during 2019. These charges are reflected in impairment and other charges in the consolidated statements of operations. December 31, 2019 2018 (in thousands) Abandonment of assets (1) $ 35,861 $ — Assets held for sale write down (2) 14,326 — Retirement of equipment (3) 17,218 — Inventory write-downs 9,077 — Severance costs 5,748 — Other 43 — Total $ 82,273 $ — (1) Includes accelerated depreciation for assets that were ceased to be used during 2019 and were abandoned before the end of their previously estimated useful lives. These assets have been recorded at salvage value. Also includes Right-Of-Use (ROU) assets related to leased real estate locations that were abandoned; see Note 15 for additional information on leased assets. (2) Represents real estate properties that are expected to be sold within the next 12 months. In connection with the plan of sale, the Company determined that the carrying values of some of the underlying assets exceeded their fair values. The impairment loss of $14,326,000 represents the estimated excess of the carrying values of the assets over their fair values, less cost to sell. The carrying value of the assets that are held for sale is separately presented in the Consolidated Balance Sheets in the caption "Assets held for sale," and these assets are no longer being depreciated. (3) Represents accelerated depreciation of older pressure pumping equipment being retired because it no longer effectively meets the industry’s current market requirements, requires costly maintenance, and is not expected to generate adequate returns in the future, and the related cost of disposal. The estimated charges listed above are subject to change in the near term as the transactions are settled including asset disposals and payment of severence as the Company continues to position itself to compete in this difficult market environment. See Note 14 for details of impairment and other charges by segment. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable | |
Accounts Receivable | Note 4: Accounts Receivable Accounts receivable, net consists of the following: December 31, 2019 2018 (in thousands) Trade receivables: Billed $ 191,579 $ 266,660 Unbilled 52,052 56,408 Other receivables 4,124 5,278 Total 247,755 328,346 Less: allowance for doubtful accounts (5,181) (4,813) Accounts receivable, net $ 242,574 $ 323,533 Trade receivables relate to revenues generated from equipment and services, for which credit is extended based on our evaluation of the customer’s credit worthiness. Unbilled receivables represent revenues earned but not billed to the customer until future dates, usually within one month. Other receivables consists primarily of net amounts receivable from an agent, that operates internationally, as well as amounts due from the favorable resolution of state tax audits and rebates due from suppliers. Changes in the Company’s allowance for doubtful accounts are as follows: Years Ended December 31, 2019 2018 (in thousands) Beginning balance $ 4,813 $ 4,471 Bad debt expense 1,481 588 Accounts written-off (1,142) (260) Recoveries 29 14 Ending balance $ 5,181 $ 4,813 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Inventories | Note 5: Inventories Inventories are $100,947,000 at December 31, 2019 and $130,083,000 at December 31, 2018 and consist of raw materials, parts and supplies. The reserve for obsolete and slow moving inventory is $10,467,000 at December 31, 2019 and $10,168,000 at December 31, 2018. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 6: Property, Plant and Equipment Property, plant and equipment are presented at cost net of accumulated depreciation and consist of the following: December 31, 2019 2018 (in thousands) Land $ 18,945 $ 21,159 Buildings and leasehold improvements 114,318 140,269 Operating equipment 1,194,071 1,429,906 Computer software 25,247 24,619 Furniture and fixtures 7,086 7,606 Vehicles 553,968 528,250 Gross property, plant and equipment 1,913,635 2,151,809 Less: accumulated depreciation (1,396,908) (1,633,827) Net property, plant and equipment $ 516,727 $ 517,982 Depreciation expense was $172.6 million in 2019, $166.2 million in 2018, and $166.9 million in 2017, and includes amounts recorded as costs of revenues. There were no capital leases outstanding as of December 31, 2019 and December 31, 2018. The Company had accounts payable for purchases of property and equipment of $6.8 million as of December 31, 2019, $14.8 million as of December 31, 2018, and $7.1 million as of December 31, 2017. The Company transferred inventory to property, plant and equipment totaling $20.8 million in 2019 and $23.1 million in 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | Note 7: Income Taxes The Tax Cuts and Jobs Act (“the Act”) effective January 1, 2018, included a reduction to the US federal tax rate from 35 percent to 21 percent, a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, adjustment of deferred tax assets and liabilities for the new corporate tax rate, and adjustments to deductible compensation of our executive officers. The Act also imposes a new tax on foreign earnings and profits in excess of a deemed return on tangible assets of foreign subsidiaries referred to as Global Low Taxed Intangible Income (“GILTI”), a new tax on certain payments between a U.S. corporation and its foreign subsidiaries referred to as Base Erosion and Anti-Abuse Minimum Tax (“BEAT”), and a tax deduction on certain qualifying income related to export sales of property or services referred to as Foreign Derived Intangible Income (“FDII”). The Company applied the guidance in SAB 118 when accounting for the enactment-date effects of the Act in 2017 and throughout 2018. In 2017, the Company recorded a discrete tax benefit of $19.3 million related to the enactment-date effects of the Act that included adjustments to the Company’s net deferred tax liabilities. In 2018, the Company adjusted the enactment-date provisional amounts by decreasing tax expense by an additional $5.1 million, recorded as a discrete tax benefit. These adjustments were recorded as components of income tax expense from continuing operations. As of December 31, 2018, the Company has completed its accounting for all of the enactment-date income tax effects of the Act. Discussion of specific provisions of the Act follows: One-time transition tax The one-time transition tax is based on the Company’s total post-1986 foreign earnings and profits (E&P), a tax that was previously deferred until repatriation of those earnings and profits. At December 31, 2017, the Company estimated the one-time transitional tax to be not material and no provision was included as a component of tax expense in 2017. Based on further analysis of the Act, and notices and regulations issued by the US Department of the Treasury and the Internal Revenue Service, the Company concluded that the tax impact of the Act from un-repatriated earnings and profits of our foreign subsidiaries was not material. Executive compensation arrangements As of December 31, 2017, we evaluated the deductibility of our executive compensation arrangements and the related impacts on both current and deferred taxes based on the guidance that was available at that time. At December 31, 2017, we recorded tax expense related to executive compensation of approximately $1.3 million. During 2018, with additional guidance from the US Department of Treasury and the Internal Revenue Service, we refined our calculations, and reduced our 2017 provisional expense by approximately $0.5 million. GILTI Our analysis at December 31, 2017, related to GILTI was incomplete, and therefore did not record a GILTI-related adjustment. Under FASB guidance, the Company elected to treat tax related to GILTI as a period expense rather than create a deferred tax for the temporary differences that are expected to reverse in future years. As of December 31, 2018, the impact of the Act on the Company related to GILTI was not material. BEAT The Company has analyzed the Act’s provisions related to Base Erosion and Profit Shifting, and has determined the impact to our financial statements to be not material. No provision was included as a component of tax expense in either 2017, 2018 or 2019. In summary, the Company completed its evaluation of the impact of FDII, GILTI, and BEAT provisions of the Act in 2018. The Company has incorporated each of these provisions within the annual effective tax rate for 2019. The following table lists the components of the provision (benefit) for income taxes: Years ended December 31, 2019 2018 2017 (in thousands) Current provision (benefit): Federal $ (3,548) $ 13,708 $ 95,995 State (3,185) 3,932 13,966 Foreign 2,968 6,843 2,953 Deferred provision (benefit): Federal (26,493) 23,203 (39,710) State 4,268 (1,808) (2,899) Total income tax (benefit) provision $ (25,990) $ 45,878 $ 70,305 Reconciliation between the federal statutory rate and RPC’s effective tax rate is as follows: Years ended December 31, 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit (0.3) 2.6 1.9 Tax credits 0.3 (0.1) (0.7) Non-deductible expenses (1.9) 1.8 2.0 Adjustments related to the Act — (2.3) (8.3) Adjustments related to vesting of restricted stock (0.4) (0.8) (1.2) Other 4.3 (1.5) 1.5 Effective tax rate 23.0 % 20.7 % 30.2 % Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2019 2018 (in thousands) Deferred tax assets: Self-insurance $ 5,729 $ 5,055 Pension 9,617 7,261 State net operating loss carryforwards 1,445 1,663 Bad debt 1,392 1,291 Stock-based compensation 3,358 3,501 Inventory reserve 2,478 2,447 Impairment reserve 2,802 — Foreign tax credit carryforwards 3,086 — Federal net operating loss carryforwards 19,664 — Basis differences in consolidated limited liability company 5,778 — All others 2,191 1,690 Gross deferred tax assets 57,540 22,908 Deferred tax liabilities: Depreciation (87,647) (71,647) Goodwill amortization (6,763) (6,587) Basis differences in consolidated limited liability company — (4,636) Basis differences in joint ventures (444) (408) All others (5) (5) Gross deferred tax liabilities (94,859) (83,283) Net deferred tax liabilities $ (37,319) $ (60,375) The Company’s current intention is to permanently reinvest funds held in our foreign subsidiaries outside of the U.S., with the possible exception of repatriation of funds that have been previously subject to U.S. federal and state taxation or when it would be tax effective through the utilization of foreign tax credits, or would otherwise create no additional U.S. tax cost. As of December 31, 2019, the Company has net operating loss carryforwards related to federal income taxes of $93.6 million with an indefinite carryforward. As of December 31, 2019, the Company has no valuation allowance against the corresponding deferred tax asset. As of December 31, 2019, the Company has net operating loss carryforwards related to state income taxes of $23.9 million (gross) that will expire between 2020 and 2035. As of December 31, 2019, the Company has a valuation allowance of $415 thousand, representing the tax-affected amount of loss carryforwards related to state income taxes that the Company does not expect to utilize, against the corresponding deferred tax asset. As of December 31, 2019, the Company has foreign tax credit carryforwards of $3.1 million that will expire in 2029. As of December 31, 2019, the Company has no valuation allowance against the corresponding deferred tax asset. Total net income tax payments (refunds) were $(11.8) million in 2019, $18.0 million in 2018, and $98.0 million in 2017. The Company and its subsidiaries are subject to U.S. federal and state income taxes in multiple jurisdictions. In many cases, our uncertain tax positions are related to tax years that remain open and subject to examination by the relevant taxing authorities. In general, the Company’s 2016 through 2019 tax years remain open to examination. Additional years may be open to the extent attributes are being carried forward to an open year. As of December 31, 2019 and 2018, our liability for unrecognized tax benefits related primarily to state income taxes did not change and remained at $2,215,000, and is recognized as a component of other long-term liabilities in the accompanying consolidated balance sheet. The liability, if recognized, would affect our effective rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2019 2018 Balance at January 1 $ 2,215,000 $ 2,215,000 Additions based on tax positions related to the current year — — Additions for tax positions of prior years — — Reductions for tax positions of prior years — — Balance at December 31 $ 2,215,000 $ 2,215,000 The Company’s policy is to record interest and penalties related to income tax matters as income tax expense. Accrued interest and penalties as of December 31, 2019 and 2018 were $203 thousand and $263 thousand, respectively. It is reasonably possible that the amount of the unrecognized tax benefits with respect to our unrecognized tax positions will increase or decrease in the next 12 months. These changes may result from, among other things, state tax settlements under voluntary disclosure agreements, or conclusions of ongoing examinations or reviews. However, quantification of an estimated range cannot be made at this time. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Debt | |
Long-Term Debt | Note 8: Long-Term Debt The Company has a revolving credit facility with Bank of America and five other lenders which provides for a line of credit of up to $125 million, including a $35 million letter of credit subfacility, and a $35 million swingline subfacility. The revolving credit facility contains customary terms and conditions, including restrictions on indebtedness, dividend payments, business combinations and other related items. The revolving credit facility includes a full and unconditional guarantee by the Company’s 100 percent owned domestic subsidiaries whose assets equal substantially all of the consolidated assets of the Company and its subsidiaries. Certain of the Company’s minor subsidiaries are not guarantors. On July 26, 2018, the Company entered into Amendment No. 4 to Credit Agreement (the “Amendment”). The Amendment, among other matters, replaces the existing minimum tangible net worth covenant with the following covenants: (i) when RPC’s trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million, a maximum consolidated leverage ratio of 2.50:1.00 and a minimum debt service coverage ratio of 2.00:1.00, and (ii) otherwise, a minimum tangible net worth covenant of no less than $600 million. The Amendment additionally (1) extends the Credit Agreement maturity date from January 17, 2020 to July 26, 2023, (2) eliminates any borrowing base limitations on revolving loans when RPC’s trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million, (3) reduces the commitment fees payable by RPC by 7.5 basis points at each pricing level and (4) reduces the letter of credit sublimit from $50 million to $35 million. As of December 31, 2019, the Company was in compliance with these covenants. Revolving loans under the amended revolving credit facility bear interest at one of the following two rates at the Company’s election: ● The Eurodollar Rate, which is the rate per annum equal to the London Interbank Offering Rate (“LIBOR”); plus, a margin ranging from 1.125% to 2.125% , based on a quarterly consolidated leverage ratio calculation; or ● the Base Rate, which is a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 0.50% , (b) Bank of America’s publicly announced “prime rate,” and (c) the Eurodollar Rate plus 1.00% ; in each case plus a margin that ranges from 0.125% to 1.125% based on a quarterly consolidated leverage ratio calculation. In addition, the Company pays an annual fee ranging from 0.15% to 0.25%, based on a quarterly consolidated leverage ratio calculation, on the unused portion of the credit facility. The Company has incurred total loan origination fees and other debt related costs associated with this revolving credit facility in the aggregate of approximately $3.3 million. These costs are being amortized to interest expense over the remaining term of the loan, and the remaining net balance of $0.2 million at December 31, 2019 is classified as part of non-current other assets. As of December 31, 2019, RPC had no outstanding borrowings under the revolving credit facility, and letters of credit outstanding relating to self-insurance programs and contract bids totaled $21.6 million; therefore, a total of $103.4 million of the facility was available. Interest incurred, which includes facility fees on the unused portion of the revolving credit facility and the amortization of loan cost, and interest paid on the credit facility were as follows for the periods indicated: Years Ended December 31, 2019 2018 2017 (in thousands) Interest incurred $ 256 $ 390 $ 415 Interest paid $ 162 $ 241 $ 181 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive (Loss) Income | |
Accumulated Other Comprehensive (Loss) Income | Note 9: Accumulated Other Comprehensive (Loss) Income Accumulated other comprehensive (loss) income consists of the following (in thousands): Unrealized Foreign Pension Gain (Loss) On Currency Adjustment Securities Translation Total Balance at December 31, 2017 $ (14,470) $ 15 $ (2,247) $ (16,702) Change during 2018: Before-tax amount (2,712) (15) (621) (3,348) Tax (expense) benefit 665 — — 665 Reclassification adjustment, net of taxes: Amortization of net loss (1) 639 — — 639 Total activity in 2018 (1,408) (15) (621) (2,044) Balance at December 31, 2018 $ (15,878) $ — $ (2,868) $ (18,746) Change during 2019: Before-tax amount (3,962) — 553 (3,409) Tax (expense) benefit 970 — — 970 Adoption of accounting standard (note 1) (2,732) — — (2,732) Reclassification adjustment, net of taxes: Amortization of net loss (1) 694 — — 694 Total activity in 2019 (5,030) — 553 (4,477) Balance at December 31, 2019 $ (20,908) $ — $ (2,315) $ (23,223) (1) Reported as part of selling, general and administrative expenses. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures | |
Fair Value Disclosures | Note 10: Fair Value Disclosures The various inputs used to measure assets at fair value establish a hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three broad levels as follows: 1. Level 1 – Quoted market prices in active markets for identical assets or liabilities. 2. 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-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. 3. Level 3 – Unobservable inputs developed using the Company’s estimates and assumptions, which reflect those that market participants would use. The following table summarizes the valuation of financial instruments measured at fair value on a recurring basis on the balance sheet as of December 31, 2019 and 2018: Fair Value Measurements at December 31, 2019 with: Quoted prices in Significant active markets other Significant for identical observable unobservable (in thousands) Total assets inputs inputs (Level 1) (Level 2) (Level 3) Assets: Available-for-sale securities – equity securities $ 237 $ 237 $ — $ — Investments measured at net asset value - trading securities $ 28,476 Fair Value Measurements at December 31, 2018 with: Quoted prices in Significant active markets other Significant for identical observable unobservable (in thousands) Total assets inputs inputs (Level 1) (Level 2) (Level 3) Assets: Available-for-sale securities – equity securities $ 211 $ 211 $ — $ — Investments measured at net asset value - trading securities $ 22,815 The Company determines the fair value of marketable securities classified as available-for-sale through quoted market prices. The total fair value is the final closing price, as defined by the exchange in which the asset is actively traded, on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs. Marketable securities classified as trading are comprised of the SERP assets, as described in Note 12, and are recorded primarily at their net cash surrender values, calculated using their net asset values, which approximates fair value, as provided by the issuing insurance company. Significant observable inputs, in addition to quoted market prices, were used to value the trading securities. The Company’s policy is to recognize transfers between levels at the beginning of quarterly reporting periods. For the year ended December 31, 2019 there were no significant transfers in or out of levels 1, 2 or 3. Under the Company’s revolving credit facility, there was no balance outstanding at December 31, 2019 and 2018. Outstanding balances based on the quote from the lender (level 2 inputs) is similar to the fair value as of the same date. The borrowings under our revolving credit facility bear variable interest rates as described in Note 8. The Company is subject to interest rate risk on the variable component of the interest rate. The carrying amounts of other financial instruments reported in the balance sheet for current assets and current liabilities approximate their fair values because of the short maturity of these instruments. The Company currently does not use the fair value option to measure any of its existing financial instruments and has not determined whether or not it will elect this option for financial instruments it may acquire in the future. The Company’s real estate classified as held for sale has been stated at fair value less costs to sell since the fair value less costs to sell is lower than its carrying amount. The non-recurring fair value measurement was completed in the third quarter of 2019 and determined based on observable market data that includes price per square foot involving comparable properties in similar locations and reflected in the table below: Quoted prices in Significant active markets other Significant for identical observable unobservable (in thousands) Total assets inputs inputs (Level 1) (Level 2) (Level 3) Assets: Assets held for sale $ 5,385 $ — $ 5,385 $ — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 11: Commitments and Contingencies Income Taxes - Sales and Use Taxes - Litigation - |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 12: Employee Benefit Plans Defined Benefit Pension Plan The Company’s Retirement Income Plan, a trusteed defined benefit pension plan, provides monthly benefits upon retirement at age 65 to substantially all employees with at least one year of service prior to 2002. During 2001, the plan became a multiple employer plan, with Marine Products Corporation as an adopting employer. The Company’s projected benefit obligation exceeds the fair value of the plan assets under its pension plan by $8.4 million and thus the plan was under-funded as of December 31, 2019. The following table sets forth the funded status of the Retirement Income Plan and the amounts recognized in RPC’s consolidated balance sheets: December 31, 2019 2018 (in thousands) Accumulated benefit obligation at end of year $ 48,519 $ 43,417 CHANGE IN PROJECTED BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 43,417 $ 46,397 Service cost — — Interest cost 1,960 1,832 Amendments — — Actuarial loss (gain) 5,521 (2,658) Benefits paid (2,379) (2,154) Projected benefit obligation at end of year $ 48,519 $ 43,417 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 38,364 $ 38,050 Actual return (loss) on plan assets 4,157 (2,532) Employer contribution — 5,000 Benefits paid (2,379) (2,154) Fair value of plan assets at end of year $ 40,142 $ 38,364 Funded status at end of year $ (8,377) $ (5,053) December 31, 2019 2018 (in thousands) AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) CONSIST OF: Net loss $ 27,693 $ 24,650 Prior service cost (credit) — — Net transition obligation (asset) — — $ 27,693 $ 24,650 The accumulated benefit obligation for the Retirement Income Plan at December 31, 2019 and 2018 has been disclosed above. The Company uses a December 31 measurement date for this qualified plan. Amounts recognized in the consolidated balance sheets consist of: December 31, 2019 2018 (in thousands) Funded status of the Retirement Income Plan $ (8,377) $ (5,053) SERP liability (30,877) (24,585) Long-term pension liabilities $ (39,254) $ (29,638) RPC’s funding policy is to contribute to the defined benefit pension plan the amount required, if any, under the Employee Retirement Income Security Act of 1974. There were no contributions to the plan in 2019 and $5.0 million contributions were made in 2018. The components of net periodic benefit cost of the Retirement Income Plan are summarized as follows: Years ended December 31, 2019 2018 2017 (in thousands) Service cost for benefits earned during the period $ — $ — $ — Interest cost on projected benefit obligation 1,960 1,832 1,932 Expected return on plan assets (2,598) (2,837) (2,356) Amortization of net loss 919 824 851 Net periodic benefit plan cost $ 281 $ (181) $ 427 The Company recognized pre-tax (increases) decreases to the funded status in accumulated other comprehensive loss of $3,043,000 in 2019, $1,888,000 in 2018, and $(1,650,000) in 2017. There were no previously unrecognized prior service costs as of December 31, 2019, 2018 and 2017. The pre-tax amounts recognized in accumulated other comprehensive loss for the years ended December 31, 2019, 2018 and 2017 are summarized as follows: (in thousands) 2019 2018 2017 Net (gain) loss $ 3,962 $ 2,712 $ (799) Amortization of net loss (919) (824) (851) Net transition obligation (asset) — — — Amount recognized in accumulated other comprehensive loss $ 3,043 $ 1,888 $ (1,650) The amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in 2020 are as follows: (in thousands) 2020 Amortization of net loss $ 1,002 Prior service cost (credit) — Net transition obligation (asset) — Estimated net periodic benefit plan cost $ 1,002 The weighted average assumptions as of December 31 used to determine the projected benefit obligation and net benefit cost were as follows: December 31, 2019 2018 2017 Projected Benefit Obligation: Discount rate 3.60 % 4.65 % 4.00 % Rate of compensation increase N/A N/A N/A Net Benefit Cost: Discount rate 4.65 % 4.00 % 4.45 % Expected return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase N/A N/A N/A The Company’s expected return on assets assumption is derived from a detailed periodic assessment conducted by its management and its investment advisor. It includes a review of anticipated future long-term performance of individual asset classes and consideration of the appropriate asset allocation strategy given the anticipated requirements of the plan to determine the average rate of earnings expected on the funds invested to provide for the pension plan benefits. While the study gives appropriate consideration to recent fund performance and historical returns, the rate of return assumption is derived primarily from a long-term, prospective view. Based on its recent assessment, the Company has concluded that its expected long-term return assumption of seven percent is reasonable. The plan’s weighted average asset allocation at December 31, 2019 and 2018 by asset category along with the target allocation for 2020 are as follows: Target Allocation Percentage of Plan Assets December 31, 2020 2019 2018 Asset Category Cash and cash equivalents 0% - 5% 1.3 % 3.0 % Fixed income securities 15% - 100% 91.7 % 29.1 % Domestic equity securities 0% - 40% — % 39.5 % International equity securities 0% - 20% — % 19.0 % Investments measured at net asset value 0% - 12% 7.0 % 9.4 % Total 100.0 % 100.0 % The Company’s investments consist primarily of fixed income securities that include corporate bonds, mortgage-backed securities, sovereign bonds, and U.S. Treasuries. Other types of investments include real estate funds and private equity funds that follow several different investment strategies. For each of the asset categories in the pension plan, the investment strategy is identical – maximize the long-term rate of return on plan assets while minimizing the level of risk in order to minimize the cost of providing pension benefits. The investment policy establishes a target allocation for each asset class which is rebalanced as required. The plan utilizes a number of investment approaches, including but not limited to individual market securities, equity and fixed income funds in which the underlying securities are marketable, and debt funds to achieve this target allocation. Although not required, Company management will evaluate contributing to the pension plan during 2020. Some of our assets, primarily our private equity and real estate funds, do not have readily determinable market values given the specific investment structures involved and the nature of the underlying investments. For plan asset reporting as of December 31, 2019, publicly traded asset pricing was used where possible. For assets without readily determinable values, estimates were derived from investment manager statements combined with discussions focusing on underlying fundamentals and significant events. Additionally, these investments are valued based on the net asset value per share calculated by the funds in which the plan has invested and the valuation is based on significant non-observable inputs which do not have a readily determinable fair value. The valuations are subject to judgments and assumptions of the funds which may prove to be incorrect, resulting in risks of incorrect valuation of these investments. The Company seeks to mitigate these risks by evaluating the appropriateness of the funds’ judgments and assumptions by reviewing the financial data included in the funds’ financial statements for reasonableness. The following tables present our plan assets using the fair value hierarchy as of December 31, 2019 and 2018. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. See Note 10 for a brief description of the three levels under the fair value hierarchy. Fair Value Hierarchy as of December 31, 2019: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 505 $ 505 $ — Fixed Income Securities (2) 36,813 — 36,813 Domestic Equity Securities (3) 3 3 — Total Assets in the Fair Value Hierarchy $ 37,321 $ 508 $ 36,813 Investments measured at Net Asset Value 2,821 Investments at Fair Value $ 40,142 Fair Value Hierarchy as of December 31, 2018: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 1,140 $ 1,140 $ — Fixed Income Securities (2) 11,163 — 11,163 Domestic Equity Securities (3) 15,182 5,602 9,581 International Equity Securities (4) 7,279 — 7,279 Total Assets in the Fair Value Hierarchy $ 34,764 $ 6,742 $ 28,023 Investments measured at Net Asset Value 3,600 Investments at Fair Value $ 38,364 (1) Cash and cash equivalents, which are used to pay benefits and plan administrative expenses, are held in Rule 2a-7 money market funds. (2) Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. (3) Domestic equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. (4) International equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. The Company estimates that the future benefits payable for the Retirement Income Plan over the next ten years are as follows: (in thousands) 2020 $ 2,764 2021 2,858 2022 2,899 2023 2,919 2024 2,987 2025‑2029 $ 15,211 Supplemental Executive Retirement Plan (SERP) The Company permits selected highly compensated employees to defer a portion of their compensation into the SERP. The SERP assets are invested primarily in company-owned life insurance (“COLI”) policies as a funding source to satisfy the obligations of the SERP. The assets are subject to claims by creditors, and the Company can designate them to another purpose at any time. Investments in COLI policies consisted of $55.3 million in variable life insurance policies as of December 31, 2019 and $47.9 million as of December 31, 2018. In the COLI policies, the Company is able to allocate the investment of the assets across a set of choices provided by the insurance underwriters, including fixed income securities and equity funds. The COLI policies are recorded at their net cash surrender values, which approximates fair value, as provided by the issuing insurance company, whose Standard & Poor’s credit rating was A+. The Company classifies the SERP assets as trading securities as described in Note 1. The fair value of these assets totaled $28,476,000 as of December 31, 2019 and $22,815,000 as of December 31, 2018. The SERP assets are reported in other assets on the balance sheet. The changes in the fair value of these assets, and normal insurance expenses are recorded in the consolidated statement of operations as compensation cost within selling, general and administrative expenses. Trading gains (losses) related to the SERP assets totaled $5,524,000 in 2019, $(2,282,000) in 2018, and $3,156,000 in 2017. The SERP liability includes participant deferrals net of distributions and is recorded on the balance sheet in long-term pension liabilities with any change in the fair value of the liabilities recorded as compensation cost within selling, general and administrative expenses in the consolidated statements of operations. As a result of Company-owned life insurance policy claims, the Company received insurance proceeds of $507,000 less a cash surrender value of $377,000 and recorded tax-free gains of $126,000 during 2019; these gains are recorded as an adjustment to compensation cost within selling, general and administrative expenses in the consolidated statements of operations. Proceeds received have been reinvested into mutual funds held as supplemental retirement plan assets. 401(k) Plan RPC sponsors a defined contribution 401(k) Plan that is available to substantially all full-time employees with more than three months of service. This plan allows employees to make tax-deferred contributions from one to 25 percent of their annual compensation, not exceeding the permissible contribution imposed by the Internal Revenue Code. During 2018, the Company made matching contributions of fifty cents ($0.50) for each dollar ($1.00) of a participant’s contribution to the 401(k) Plan that did not exceed six percent of his or her annual compensation. Effective January 1, 2019, the Company began making 100 percent matching contributions for each dollar ($1.00) of a participant’s contribution to the 401(k) Plan for the first three percent of his or her annual compensation and fifty cents ($0.50) for each dollar ($1.00) of a participant’s contribution to the 401(k) Plan for the next three percent of his or her annual compensation. Employees vest in the RPC contributions after two years of service. The charges to expense for the Company’s contributions to the 401(k) Plan were $10,805,000 in 2019, $5,704,000 in 2018, and $4,509,000 in 2017. Stock Incentive Plans The Company has issued stock options and restricted stock to employees under three 10-year stock incentive plans that were approved by stockholders in 1994, 2004 and 2014. The 1994 plan expired in 2004 and the 2004 Plan expired in 2014. In April 2014, the Company reserved 8,000,000 shares of common stock under the 2014 Stock Incentive Plan with a term of 10 years expiring in April 2024. This plan provides for the issuance of various forms of stock incentives, including, among others, incentive and non-qualified stock options and restricted shares. As of December 31, 2019, 4,729,863 shares were available for grant. The Company recognizes compensation expense for the unvested portion of awards outstanding over the remainder of the service period. The compensation cost recorded for these awards is based on their fair value at the grant date less the cost of estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods to reflect actual forfeitures. Pre-tax stock-based employee compensation expense was $8,630,000 in 2019 ($6,516,000 after tax), $9,419,000 in 2018 ($7,111,000 after tax) and $11,090,000 in 2017 ($7,042,000 after tax). Stock Options Stock options are granted at an exercise price equal to the fair market value of the Company’s common stock at the date of grant except for grants of incentive stock options to owners of greater than 10 percent of the Company’s voting securities which must be made at 110 percent of the fair market value of the Company’s common stock. Options generally vest ratably over a period of five years and expire in 10 years, except incentive stock options granted to owners of greater than 10 percent of the Company’s voting securities, which expire in five years. The Company estimates the fair value of stock options as of the date of grant using the Black-Scholes option pricing model. The Company has not granted stock options to employees since 2003. There were no stock options exercised during 2019, 2018 or 2017 and there are no stock options outstanding as of December 31, 2019 and 2018. Restricted Stock The Company has granted employees time lapse restricted stock which vest after a stipulated number of years from the grant date, depending on the terms of the issue. Time lapse restricted shares issued to date vest in 20 percent increments annually starting with the second anniversary of the grant. Grantees receive dividends declared and retain voting rights for the granted shares. The agreement under which the restricted stock is issued provides that shares awarded may not be sold or otherwise transferred until restrictions established under the stock plans have lapsed. Upon termination of employment from RPC, with the exception of death (fully vests), disability or retirement (partially vests based on duration of service), shares with restrictions are forfeited in accordance with the plan. The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2019: Weighted Average Grant- Shares Date Fair Value Non-vested shares at January 1, 2019 2,352,150 $ 17.15 Granted 858,150 11.39 Vested (625,465) 14.73 Forfeited (191,278) 15.90 Non-vested shares at December 31, 2019 2,393,557 $ 13.23 The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2018: Weighted Average Grant- Shares Date Fair Value Non-vested shares at January 1, 2018 2,736,365 $ 14.50 Granted 522,800 25.13 Vested (750,880) 13.06 Forfeited (156,135) 17.10 Non-vested shares at December 31, 2018 2,352,150 $ 17.15 The fair value of restricted share awards is based on the market price of the Company’s stock on the date of the grant and is amortized to compensation expense, net of estimated forfeitures, on a straight-line basis over the requisite service period. The weighted average grant date fair value per share of these restricted stock awards was $11.39 for 2019, $25.13 for 2018 and $21.66 for 2017. The total fair value of shares vested was $7,026,000 during 2019, $16,483,000 during 2018 and $19,480,000 during 2017. The consolidated statement of cash flows reflect discrete income tax adjustments that resulted in $442,000 of detrimental impact in 2019 and $1,889,000 of beneficial impact in 2018 realized from tax compensation deductions and classified within operating activities as part of net income. Other Information As of December 31, 2019, total unrecognized compensation cost related to non-vested restricted shares was $44,642,000 which is expected to be recognized over a weighted-average period of 3.4 years. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | |
Related Party Transactions | Note 13: Related Party Transactions Marine Products Corporation Effective in 2001, the Company spun off the business conducted through Chaparral Boats, Inc. (“Chaparral”), RPC’s former powerboat manufacturing segment. RPC accomplished the spin-off by contributing 100 percent of the issued and outstanding stock of Chaparral to Marine Products Corporation (a Delaware corporation) (“Marine Products”), a newly formed wholly owned subsidiary of RPC, and then distributing the common stock of Marine Products to RPC stockholders. In conjunction with the spin-off, RPC and Marine Products entered into various agreements that define the companies’ relationship. In accordance with a Transition Support Services agreement, which may be terminated by either party, RPC provides certain administrative services, including financial reporting and income tax administration, acquisition assistance, etc., to Marine Products. Charges from the Company (or from corporations that are subsidiaries of the Company) for such services were $865,000 in 2019, $873,000 in 2018, and $849,000 in 2017. The Company’s receivable due from Marine Products for these services was $55,000 as of December 31, 2019 and $28,000 as of December 31, 2018. Many of the Company’s directors are also directors of Marine Products and all of the executive officers are employees of both the Company and Marine Products. Other The Company periodically purchases in the ordinary course of business equipment or services from suppliers, who are owned by significant officers or stockholders, or affiliated with the directors of RPC. The total amounts paid to these affiliated parties were $1,625,000 in 2019, $1,467,000 in 2018 and $1,372,000 in 2017. RPC receives certain administrative services and rents office space from Rollins, Inc. (a company of which Mr. R. Randall Rollins is also Chairman and which is otherwise affiliated with RPC). The service agreements between Rollins, Inc. and the Company provide for the provision of services on a cost reimbursement basis and are terminable on six months’ notice. The services covered by these agreements include office space, administration of certain employee benefit programs, and other administrative services. Charges to the Company (or to corporations which are subsidiaries of the Company) for such services and rent totaled $104,000 in 2019, $101,000 in 2018 and $104,000 in 2017. A group that includes the Company’s Chairman of the Board, R. Randall Rollins and his brother Gary W. Rollins, who is also a director of the Company, and certain companies under their control, controls in excess of fifty percent of the Company’s voting power. RPC and Marine Products own 50 percent each |
Business Segment and Entity Wid
Business Segment and Entity Wide Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Business Segment and Entity wide Disclosures | |
Business Segment and Entity wide Disclosures | Note 14: Business Segment and Entity wide Disclosures RPC’s reportable segments are the same as its operating segments. RPC manages its business under Technical Services and Support Services. Technical Services is comprised of service lines that generate revenue based on equipment, personnel or materials at the well site and are closely aligned with completion and production activities of the customers. Support Services is comprised of service lines which generate revenue from services and equipment offered off the well site and are closely aligned with the customers’ drilling activities. Selected overhead including centralized support services and regulatory compliance are classified as Corporate. Technical Services consists primarily of pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline and fishing. The services offered under Technical Services are high capital and personnel intensive businesses. The Company considers all of these services to be closely integrated oil and gas well servicing businesses, and makes resource allocation and performance assessment decisions based on this operating segment as a whole across these various services. Support Services consist primarily of drill pipe and related tools, pipe handling, pipe inspection and storage services, and oilfield training and consulting services. The demand for these services tends to be influenced primarily by customer drilling-related activity levels. The Company’s Chief Operating Decision Maker (“CODM”) assesses performance and makes resource allocation decisions regarding, among others, staffing, growth and maintenance capital expenditures and key initiatives based on the operating segments outlined above. Segment Revenues: RPC’s operating segment revenues by major service lines are shown in the following table: (in thousands) 2019 2018 2017 Technical Services: Pressure Pumping $ 519,543 $ 945,919 $ 993,538 Downhole Tools 414,352 423,811 294,606 Coiled Tubing 80,758 100,049 109,462 Nitrogen 45,658 49,198 38,961 Snubbing 14,520 17,818 23,838 All other 70,723 110,418 77,946 Total Technical Services $ 1,145,554 $ 1,647,213 $ 1,538,351 Support Services: Rental Tools $ 51,792 $ 50,809 $ 30,264 All other 25,063 22,983 26,612 Total Support Services $ 76,855 $ 73,792 $ 56,876 Total Revenues $ 1,222,409 $ 1,721,005 $ 1,595,227 The accounting policies of the reportable segments are the same as those described in Note 1 to these consolidated financial statements. RPC evaluates the performance of its segments based on revenues, operating profits and return on invested capital. Gains or losses on disposition of assets are reviewed by the CODM on a consolidated basis, and accordingly the Company does not report gains or losses at the segment level. Inter-segment revenues are generally recorded in segment operating results at prices that management believes approximate prices for arm’s length transactions and are not material to operating results. Summarized financial information concerning RPC’s reportable segments for the years ended December 31, 2019, 2018 and 2017 are shown in the following table: Gain on Impairment Technical Support disposition of and other (in thousands) Services Services Corporate assets, net charges Total 2019 Revenues $ 1,145,554 $ 76,855 $ — $ — $ — $ 1,222,409 Operating (loss) profit (32,993) 10,016 (12,745) 3,707 (82,273) (1) (114,288) Capital expenditures 237,950 10,330 2,349 — — 250,629 Depreciation and amortization 154,776 15,328 305 — — 170,409 Identifiable assets 848,264 72,351 132,603 — — 1,053,218 2018 Revenues $ 1,647,213 $ 73,792 $ — $ — $ — $ 1,721,005 Operating profit (loss) 216,703 4,612 (14,629) 3,344 — 210,030 Capital expenditures 230,262 10,364 1,984 — — 242,610 Depreciation and amortization 150,508 12,174 438 — — 163,120 Identifiable assets 925,305 78,413 195,862 — — 1,199,580 2017 Revenues $ 1,538,351 $ 56,876 $ — $ — $ — $ 1,595,227 Operating profit (loss) 251,476 (12,228) (17,561) 4,530 — 226,217 Capital expenditures 106,131 9,949 1,429 — — 117,509 Depreciation and amortization 145,507 17,570 460 — — 163,537 Identifiable assets 896,803 75,568 174,853 — — 1,147,224 (1) The following summarizes revenues for the United States and separately for all international locations combined for the years ended December 31, 2019, 2018 and 2017. The revenues are presented based on the location of the use of the equipment or services. Assets related to international operations are less than 10 percent of RPC’s consolidated assets, and therefore are not presented. Years ended December 31, 2019 2018 2017 (in thousands) United States Revenues $ 1,157,760 $ 1,630,569 $ 1,539,462 International Revenues 64,649 90,436 55,765 $ 1,222,409 $ 1,721,005 $ 1,595,227 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | Note 15: Leases: The Company adopted ASU No. 2016-02, Leases (Topic 842) on January 1, 2019 and recognized leases with duration greater than 12 months on the balance sheet using the modified retrospective approach. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed for a carry-forward of the historical lease classification. For leases with terms greater than 12 months, the Company has recorded the related Right-Of-Use (ROU) asset and liability at the present value of lease payments over the term. A few of the leases include rental escalation clauses or renewal options and they have been factored into the determination of lease payments when appropriate. There are no residual value guarantees on the existing leases. The Company estimates its incremental borrowing rate, at lease commencement, to determine the present value of lease payments, since most of the Company’s leases do not provide an implicit rate of return. ROU assets exclude lessor incentives received. The Company’s lease population consists primarily of real estate including its corporate headquarters, office space and warehouses, in addition to vehicles, railcars, storage containers and office equipment. The Company does not have any finance leases. The Company has a significant population of month-to-month real estate leases that have been classified as short-term leases, and therefore has not recognized a related ROU asset or lease liability. The Company determines at contract inception, if an arrangement is a lease or contains a lease based on whether the Company obtains the right to control the use of specifically identifiable property, plant and equipment for a period of time in exchange for consideration. The Company has elected not to separate non-lease components from lease components for its leases. Variable lease payments relate primarily to taxes and insurance on real estate contracts and are recognized as expense when incurred. The Company subleases certain real estate to third parties. Our sublease portfolio consists solely of operating leases. As of December 31, 2019, the Company had no operating leases that had not yet commenced. During the year ended December 31, 2019, the Company entered into new leases or modified existing leases that resulted in an increase of ROU assets in exchange for operating lease liabilities as disclosed below. Lease position: The table below presents the assets and liabilities related to operating leases recorded on the balance sheet: (in thousands) December 31,2019 Assets: Operating lease right-of-use assets $ 33,850 Liabilities: Current portion of operating leases $ 10,625 Long-term operating lease liabilities 28,378 Total lease liabilities $ 39,003 During the year ended December 31, 2019, the Company recorded an impairment totaling $4,903 representing the acceleration of depreciation on the remaining balance of the ROU assets related to leases that have been abandoned. The Company has not terminated these leases and continues to carry the present value of lease liabilities related to these payments. Lease costs: The components of lease expense are included in costs of goods sold, and selling, general and administrative expenses in the consolidated statements of operations. Year ended (in thousands) December 31,2019 Operating lease cost $ 14,109 Short-term lease cost 7,254 Variable lease cost 521 Sublease income (72) Total lease cost $ 21,812 Total rental expense, including short-term rentals charged to operations related to operating leases under the previous lease standard, were $21.6 million in 2018 and $17.1 million in 2017. Other information: Cash paid for amounts included in the measurement of lease liabilities – operating leases (in thousands) $ 12,863 ROU assets obtained in exchange for operating lease liabilities (in thousands) $ 7,992 Weighted average remaining lease term – operating leases 5.5 years Weighted average discount rate – operating leases 3.58 % Maturity of lease liabilities (in thousands) Operating Leases 2020 12,091 2021 9,623 2022 6,608 2023 4,153 2024 3,078 Thereafter 9,132 Total lease payments 44,685 Less: Amounts representing interest (5,682) Present value of lease liabilities $ 39,003 As of December 31, 2018, future total rentals on our non- cancellable operating leases under the previous lease standard were $44.9 million in the aggregate, which consisted of the following: $11.8 million in 2019; $10.6 million in 2020; $7.8 million in 2021; $5.6 million in 2022; $2.9 million in 2023; and $6.2 million thereafter. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS For the years ended December 31, 2019, 2018 and 2017 Balance at Charged to Balance Beginning Costs and Net (Deductions) at End of (in thousands) of Period Expenses Recoveries Period Year ended December 31, 2019 Allowance for doubtful accounts $ 4,813 $ 1,481 $ (1,113) (1) $ 5,181 Deferred tax asset valuation allowance $ 445 $ — $ 26 $ 471 Reserve for obsolete or slow moving inventory $ 10,169 $ 6,467 $ (6,169) (3) $ 10,467 Year ended December 31, 2018 Allowance for doubtful accounts $ 4,471 $ 588 $ (246) (1) $ 4,813 Deferred tax asset valuation allowance $ 3,994 $ — $ (3,549) $ 445 Reserve for obsolete or slow moving inventory $ 3,875 $ 8,088 $ (1,794) (3) $ 10,169 Year ended December 31, 2017 Allowance for doubtful accounts $ 2,553 $ 1,441 $ 477 (1) $ 4,471 Deferred tax asset valuation allowance $ 356 $ 3,638 (2) $ — $ 3,994 Reserve for obsolete or slow moving inventory $ 3,052 $ 5,869 $ (5,046) (3) $ 3,875 (1) Net (deductions) recoveries in the allowance for doubtful accounts principally reflect the write-off of previously reserved accounts net of recoveries. (2) The valuation allowance for deferred tax assets is increased or decreased each year to reflect the net operating losses, foreign tax credits and capital losses that management believes will not be utilized before they expire. (3) Net (deductions) recoveries in the reserve for obsolete or slow moving inventory principally reflect the write-off and/ or disposal of previously reserved inventory. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of RPC, Inc. and its wholly-owned subsidiaries (“RPC” or the “Company”). All significant intercompany accounts and transactions have been eliminated. |
Common Stock | Common Stock RPC is authorized to issue 349,000,000 shares of common stock, $0.10 par value. Holders of common stock are entitled to receive dividends when, as, and if declared by the Board of Directors out of legally available funds. Each share of common stock is entitled to one vote on all matters submitted to a vote of stockholders. Holders of common stock do not have cumulative voting rights. In the event of any liquidation, dissolution or winding up of the Company, holders of common stock are entitled to ratable distribution of the remaining assets available for distribution to stockholders. |
Preferred Stock | Preferred Stock RPC is authorized to issue up to 1,000,000 shares of preferred stock, $0.10 par value. As of December 31, 2019, there were no shares of preferred stock issued. The Board of Directors is authorized, subject to any limitations prescribed by law, to provide for the issuance of preferred stock as a class without series or, if so determined from time to time, in one or more series, and by filing a certificate pursuant to the applicable laws of the state of Delaware and to fix the designations, powers, preferences and rights, exchangeability for shares of any other class or classes of stock. Any preferred stock to be issued could rank prior to the common stock with respect to dividend rights and rights on liquidation . |
Dividends | Dividends On July 22, 2019, the Board of Directors voted to suspend RPC’s dividend to common stockholders. The Company expects to resume cash dividends to common stockholders, subject to the earnings and financial condition of the Company and other relevant factors. The Company has no timetable for the resumption of dividends. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are used in the determination of the allowance for doubtful accounts, income taxes, accrued insurance expenses, depreciable lives of assets, and pension liabilities. |
Revenues | Revenues RPC recognizes revenues from contracts with its customers based on the amount of consideration it receives in exchange for the services provided. See Note 2 for additional information. |
Concentration of Credit Risk | Concentration of Credit Risk Substantially all of the Company’s customers are engaged in the oil and gas industry. This concentration of customers may impact overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic and industry conditions. The Company provided oilfield services to several hundred customers during each of the last three years. There was no customer that accounted for more than 10 percent of the Company’s revenues in 2019, 2018 or 2017. Additionally, there was no customer that accounted for more than 10 percent of accounts receivable as of December 31, 2019 or 2018. |
Cash and Cash Equivalents | Cash and Cash Equivalents Highly liquid investments with original maturities of three months or less when acquired are considered to be cash equivalents. The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits. RPC maintains cash equivalents and investments in one or more large financial institutions, and RPC’s policy restricts investment in any securities rated less than “investment grade” by national rating services. |
Investments | Investments Investments classified as available-for-sale securities are stated at their fair values, with the unrealized gains and losses, net of tax, reported as a separate component of stockholders’ equity. The cost of securities sold is based on the specific identification method. Realized gains and losses, declines in value judged to be other than temporary, interest, and dividends with respect to available-for-sale securities are included in interest income. The Company realized no gains or losses on its available-for-sale securities during 2019, 2018 and 2017. Securities that are held in the non-qualified Supplemental Executive Retirement Plan (“SERP”) are classified as trading. See Note 12 for further information regarding the SERP. The change in fair value of trading securities is presented as compensation cost in selling, general and administrative expenses on the consolidated statements of operations. Management determines the appropriate classification of investments at the time of purchase and re-evaluates such designations as of each balance sheet date. |
Accounts Receivable | Accounts Receivable The majority of the Company’s accounts receivable is due principally from major and independent oil and natural gas exploration and production companies. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are considered past due after 60 days and are stated at amounts due from customers, net of an allowance for doubtful accounts. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Accounts receivable are carried at the amounts due from customers, reduced by an allowance for estimated amounts that may not be collectible in the future. The estimated allowance for doubtful accounts is based on an evaluation of industry trends, financial condition of customers, historical write-off experience, current economic conditions, and in the case of international customers, judgments about the economic and political environment of the related country and region. Accounts are written off against the allowance for doubtful accounts when the Company determines that amounts are uncollectible and recoveries of previously written-off accounts are recorded when collected. |
Inventories | Inventories Inventories, which consist principally of (i) raw materials and supplies that are consumed providing services to the Company’s customers, (ii) spare parts for equipment used in providing these services and (iii) components and attachments for manufactured equipment used in providing services, are recorded at the lower of cost or net realizable value. Cost is determined using first-in, first-out (“FIFO”) method or the weighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company regularly reviews inventory quantities on hand and records a write-down for excess or obsolete inventory based primarily on its estimated forecast of product demand, market conditions, production requirements and technological developments. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, including software costs, are reported at cost less accumulated depreciation and amortization, which is provided on a straight-line basis over the estimated useful lives of the assets. Annual depreciation and amortization expenses are computed using the following useful lives: operating equipment, 3 to 20 years; buildings and leasehold improvements, 15 to 39 years or the life of the lease; furniture and fixtures, 5 to 7 years; software, 5 years; and vehicles, 3 to 5 years. The cost of assets retired or otherwise disposed of and the related accumulated depreciation and amortization are eliminated from the accounts in the year of disposal with the resulting gain or loss credited or charged to income from operations. Expenditures for additions, major renewals, and betterments are capitalized. Expenditures for restoring an identifiable asset to working condition or for maintaining the asset in good working order constitute repairs and maintenance and are expensed as incurred. RPC records impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. The Company periodically reviews the values assigned to long-lived assets, such as property, plant and equipment, to determine if any impairments should be recognized. Management believes that the long-lived assets in the accompanying balance sheets have not been impaired. During the year ended December 31, 2019, the Company recorded accelerated depreciation related to certain operating equipment that was retired. In addition, the Company recorded a write down for certain real estate that were classified as held for sale. See Note 3 for additional information. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets of businesses acquired. The carrying amount of goodwill by reportable segment was as follows: Years Ended December 31, 2019 2018 (in thousands) Technical Services $ 30,992 $ 30,992 Support Services 1,158 1,158 Goodwill $ 32,150 $ 32,150 Goodwill is reviewed annually, or more frequently, if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount, for impairment. In 2019 and 2018, the Company performed a quantitative impairment test by estimating the fair value of each of its reporting units by considering both comparable public company multiples (a market approach) and projected discounted future cash flows (an income approach). The discounted cash flow analysis is based on management’s short-term and long-term forecast of operating results for each reporting unit and includes assumptions regarding discount rates, revenue growth rates, expected profitability margins, forecasted capital expenditures, and the timing of expected future cash flows. Based on this analysis, the Company concluded that the fair value of its reporting units exceeded their carrying amount and therefore no impairment of goodwill occurred for the years ended December 31, 2019 and 2018. |
Advertising | Advertising Advertising expenses are charged to expense during the period in which they are incurred. Advertising expenses totaled $2,003,000 in 2019, $2,220,000 in 2018, and $1,696,000 in 2017 . |
Insurance Expenses | Insurance Expenses RPC self-insures, up to certain policy-specified limits, certain risks related to general liability, workers’ compensation, vehicle and equipment liability, and employee health insurance plan costs. The estimated cost of claims under these self-insurance programs is estimated and accrued as the claims are incurred (although actual settlement of the claims may not be made until future periods) and may subsequently be revised based on developments relating to such claims. The portion of these estimated outstanding claims expected to be paid more than one year in the future is classified as long-term accrued insurance expenses. |
Income Taxes | Income Taxes Deferred tax liabilities and assets are determined based on the difference between the financial and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The newly enacted Tax Cuts and Jobs Act required the revaluation of our deferred tax assets and liabilities to reflect the change in Federal income tax rates from 35 percent to 21 percent. The Company’s net deferred tax liability as of December 31, 2017 was reduced through a discrete income tax provision adjustment of $19.3 million related to this rate change. The Company establishes a valuation allowance against the carrying value of deferred tax assets when the Company determines that it is more likely than not that the asset will not be realized through future taxable income. |
Defined Benefit Pension Plan | Defined Benefit Pension Plan The Company has a defined benefit pension plan that provides monthly benefits upon retirement at age 65 to eligible employees with at least one year of service prior to 2002. In 2002, the Company’s Board of Directors approved a resolution to cease all future retirement benefit accruals under the defined benefit pension plan. See Note 11 for a full description of this plan and the related accounting and funding policies. |
Share Repurchases | Share Repurchases The Company records the cost of share repurchases in stockholders’ equity as a reduction to common stock to the extent of par value of the shares acquired and the remainder is allocated to capital in excess of par value and retained earnings if capital in excess of par value is depleted. The Company tracks capital in excess of par value on a cumulative basis for each reporting period, discloses the excess over capital in excess of par value as part of stock purchased and retired in the consolidated statements of stockholders’ equity. |
Earnings per Share | Earnings per Share Basic and diluted earnings per share are computed by dividing net income by the weighted average number of shares outstanding during the respective periods. In addition, the Company has periodically issued share-based payment awards that contain non-forfeitable rights to dividends and are therefore considered participating securities. See Note 12 for further information on restricted stock granted to employees. Restricted shares of common stock (participating securities) outstanding and a reconciliation of weighted average shares outstanding is as follows: (In thousands except per share data ) 2019 2018 2017 Net (loss) income available for stockholders $ (87,111) $ 175,402 $ 162,511 Less: Adjustments for losses attributable to participating securities (334) (1,839) (2,102) Net (loss) income used in calculating per share amounts $ (87,445) $ 173,563 $ 160,409 Weighted average shares outstanding (including participating securities) 214,730 215,198 217,194 Adjustment for participating securities (2,509) (2,453) (2,891) Shares used in calculating basic and diluted (loss) earnings per share 212,221 212,745 214,303 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, investments, accounts payable, and debt. The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of such instruments. The Company’s investments are classified as available-for-sale securities with the exception of investments held in the non-qualified Supplemental Executive Retirement Plan (“SERP”) which are classified as trading securities. All of these securities are carried at fair value in the accompanying consolidated balance sheets. See Note 10 for additional information. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payment awards, net estimated forfeitures. Thus, compensation cost is amortized for those shares expected to vest on a straight-line basis over the requisite service period of the award. See Note 12 for additional information. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The FASB issued the following applicable Accounting Standards Updates (ASU): Recently Adopted Accounting Standards: ● Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). The Company adopted ASC 842 , Leases, and all the related amendments on January 1, 2019, by recognizing on its balance sheet, a right-of-use asset and lease liabilities totaling approximately $44 million, for all of its leases with terms greater than 12 months. The Company adopted the standard using the optional transition method, with an immaterial adjustment to retained earnings upon adoption. The comparative information has not been restated and continues to be reported under the accounting standards that were in effect for those periods. The adoption of the standard did not have a material impact on the Company’s consolidated statements of operations and consolidated statements of cash flows. See Note 15 “Leases” in the Notes to Consolidated Financial Statements for expanded disclosures ● ASU No. 2018-02— Income Statement—Reporting Comprehensive Income (Topic 220)—Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments provide an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recorded. The Company adopted the standard in the first quarter of 2019 and elected to reclassify approximately $2.7 million of stranded tax effects related to its pension plan from AOCI to retained earnings. ● ASU No. 2018-07 — Compensation —Stock Compensation (Topic 718) —Improvements to Nonemployee Share-Based Payment Accounting. The amendments expand the scope of ASU 718 to include share-based payments issued to nonemployees for goods or services, thereby substantially aligning the accounting for share-based payments to nonemployees and employees. The Company adopted these provisions in the first quarter of 2019 and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted: To be adopted in 2020 and later: ● ASU No. 2016-13, Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The ASU introduced a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for recognition in place of the current incurred loss model. The Company adopted the provisions of the standard in the first quarter of 2020 and currently expects the adoption to have an immaterial cumulative-effect adjustment to the opening balance of retained earnings. The Company plans to continue to record an allowance on its trade receivables based on aging at the end of each reporting period using current reasonable and supportable forecasted economic conditions. ● ASU No. 2017-04 —Intangibles —Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the amendments eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company adopted these provisions in the first quarter of 2020, on a prospective basis. ● ASU No. 2018-15 — Intangibles —Goodwill and Other —Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments reduce the complexity for the accounting for costs of implementing a cloud computing service arrangement and align the requirements for capitalizing implementation costs that are incurred in a hosting arrangement that is a service contract with the costs incurred to develop or obtain internal-use software. The Company adopted these provisions in the first quarter of 2020 and the adoption did not have a material impact on its consolidated financial statements. ● ASU No. 2019-12 — Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing the exceptions to the incremental approach for intra-period tax allocation in certain situations, requirement to recognize a deferred tax liability for a change in the status of a foreign investment, and the general methodology for computing income taxes in an interim period when year-to date loss exceeds the anticipated loss for the year. The amendments also simplify the accounting for income taxes with regard to franchise tax, evaluation of step up in the tax basis goodwill in certain business combinations, allocating current and deferred tax expense to legal entities that are not subject to tax and enacted change in tax laws or rates. The amendments are effective for fiscal years beginning after December 15,2020, and for interim periods within those fiscal years. The company is currently evaluating the impact of adopting these provisions on its consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies | |
Schedule of carrying amount of goodwill by reportable segment | Years Ended December 31, 2019 2018 (in thousands) Technical Services $ 30,992 $ 30,992 Support Services 1,158 1,158 Goodwill $ 32,150 $ 32,150 |
Schedule of reconciliation of weighted average shares outstanding | (In thousands except per share data ) 2019 2018 2017 Net (loss) income available for stockholders $ (87,111) $ 175,402 $ 162,511 Less: Adjustments for losses attributable to participating securities (334) (1,839) (2,102) Net (loss) income used in calculating per share amounts $ (87,445) $ 173,563 $ 160,409 Weighted average shares outstanding (including participating securities) 214,730 215,198 217,194 Adjustment for participating securities (2,509) (2,453) (2,891) Shares used in calculating basic and diluted (loss) earnings per share 212,221 212,745 214,303 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenues | |
Schedule of disaggregation of revenues | (in thousands) 2019 2018 2017 Oilfield services transferred at a point in time $ — $ — $ — Oilfield services transferred over time 1,222,409 1,721,005 1,595,227 Total revenues $ 1,222,409 $ 1,721,005 $ 1,595,227 |
Schedule of contract assets included in accounts receivable | (in thousands) 2019 2018 Unbilled trade receivables $ 52,052 $ 56,408 |
Impairment and Other Charges (T
Impairment and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Impairment and Other Charges. | |
Schedule of impairment and other charges | Note 3: Impairment and Other Charges In response to the decline in customer activities and expectation for it to continue in the near term, the Company recorded the following estimated pre-tax charges during 2019. These charges are reflected in impairment and other charges in the consolidated statements of operations. December 31, 2019 2018 (in thousands) Abandonment of assets (1) $ 35,861 $ — Assets held for sale write down (2) 14,326 — Retirement of equipment (3) 17,218 — Inventory write-downs 9,077 — Severance costs 5,748 — Other 43 — Total $ 82,273 $ — (1) Includes accelerated depreciation for assets that were ceased to be used during 2019 and were abandoned before the end of their previously estimated useful lives. These assets have been recorded at salvage value. Also includes Right-Of-Use (ROU) assets related to leased real estate locations that were abandoned; see Note 15 for additional information on leased assets. (2) Represents real estate properties that are expected to be sold within the next 12 months. In connection with the plan of sale, the Company determined that the carrying values of some of the underlying assets exceeded their fair values. The impairment loss of $14,326,000 represents the estimated excess of the carrying values of the assets over their fair values, less cost to sell. The carrying value of the assets that are held for sale is separately presented in the Consolidated Balance Sheets in the caption "Assets held for sale," and these assets are no longer being depreciated. (3) Represents accelerated depreciation of older pressure pumping equipment being retired because it no longer effectively meets the industry’s current market requirements, requires costly maintenance, and is not expected to generate adequate returns in the future, and the related cost of disposal. The estimated charges listed above are subject to change in the near term as the transactions are settled including asset disposals and payment of severence as the Company continues to position itself to compete in this difficult market environment. See Note 14 for details of impairment and other charges by segment. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable | |
Schedule of components of accounts receivables | December 31, 2019 2018 (in thousands) Trade receivables: Billed $ 191,579 $ 266,660 Unbilled 52,052 56,408 Other receivables 4,124 5,278 Total 247,755 328,346 Less: allowance for doubtful accounts (5,181) (4,813) Accounts receivable, net $ 242,574 $ 323,533 |
Schedule of changes in allowance for doubtful accounts | Years Ended December 31, 2019 2018 (in thousands) Beginning balance $ 4,813 $ 4,471 Bad debt expense 1,481 588 Accounts written-off (1,142) (260) Recoveries 29 14 Ending balance $ 5,181 $ 4,813 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment | |
Schedule of property, plant and equipment | December 31, 2019 2018 (in thousands) Land $ 18,945 $ 21,159 Buildings and leasehold improvements 114,318 140,269 Operating equipment 1,194,071 1,429,906 Computer software 25,247 24,619 Furniture and fixtures 7,086 7,606 Vehicles 553,968 528,250 Gross property, plant and equipment 1,913,635 2,151,809 Less: accumulated depreciation (1,396,908) (1,633,827) Net property, plant and equipment $ 516,727 $ 517,982 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of components of provision (benefit) for income taxes | Years ended December 31, 2019 2018 2017 (in thousands) Current provision (benefit): Federal $ (3,548) $ 13,708 $ 95,995 State (3,185) 3,932 13,966 Foreign 2,968 6,843 2,953 Deferred provision (benefit): Federal (26,493) 23,203 (39,710) State 4,268 (1,808) (2,899) Total income tax (benefit) provision $ (25,990) $ 45,878 $ 70,305 |
Schedule of reconciliation between the federal statutory rate and effective tax rate | Years ended December 31, 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit (0.3) 2.6 1.9 Tax credits 0.3 (0.1) (0.7) Non-deductible expenses (1.9) 1.8 2.0 Adjustments related to the Act — (2.3) (8.3) Adjustments related to vesting of restricted stock (0.4) (0.8) (1.2) Other 4.3 (1.5) 1.5 Effective tax rate 23.0 % 20.7 % 30.2 % |
Schedule of deferred tax assets and liabilities | December 31, 2019 2018 (in thousands) Deferred tax assets: Self-insurance $ 5,729 $ 5,055 Pension 9,617 7,261 State net operating loss carryforwards 1,445 1,663 Bad debt 1,392 1,291 Stock-based compensation 3,358 3,501 Inventory reserve 2,478 2,447 Impairment reserve 2,802 — Foreign tax credit carryforwards 3,086 — Federal net operating loss carryforwards 19,664 — Basis differences in consolidated limited liability company 5,778 — All others 2,191 1,690 Gross deferred tax assets 57,540 22,908 Deferred tax liabilities: Depreciation (87,647) (71,647) Goodwill amortization (6,763) (6,587) Basis differences in consolidated limited liability company — (4,636) Basis differences in joint ventures (444) (408) All others (5) (5) Gross deferred tax liabilities (94,859) (83,283) Net deferred tax liabilities $ (37,319) $ (60,375) |
Schedule of reconciliation of unrecognized tax benefits | 2019 2018 Balance at January 1 $ 2,215,000 $ 2,215,000 Additions based on tax positions related to the current year — — Additions for tax positions of prior years — — Reductions for tax positions of prior years — — Balance at December 31 $ 2,215,000 $ 2,215,000 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Debt | |
Schedule of interest incurred and paid on the credit facility, interest capitalized related to facilities and equipment under construction, and the related weighted average interest rates on long term debt | Years Ended December 31, 2019 2018 2017 (in thousands) Interest incurred $ 256 $ 390 $ 415 Interest paid $ 162 $ 241 $ 181 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive (Loss) Income | |
Schedule of accumulated other comprehensive (loss) income | Unrealized Foreign Pension Gain (Loss) On Currency Adjustment Securities Translation Total Balance at December 31, 2017 $ (14,470) $ 15 $ (2,247) $ (16,702) Change during 2018: Before-tax amount (2,712) (15) (621) (3,348) Tax (expense) benefit 665 — — 665 Reclassification adjustment, net of taxes: Amortization of net loss (1) 639 — — 639 Total activity in 2018 (1,408) (15) (621) (2,044) Balance at December 31, 2018 $ (15,878) $ — $ (2,868) $ (18,746) Change during 2019: Before-tax amount (3,962) — 553 (3,409) Tax (expense) benefit 970 — — 970 Adoption of accounting standard (note 1) (2,732) — — (2,732) Reclassification adjustment, net of taxes: Amortization of net loss (1) 694 — — 694 Total activity in 2019 (5,030) — 553 (4,477) Balance at December 31, 2019 $ (20,908) $ — $ (2,315) $ (23,223) (1) Reported as part of selling, general and administrative expenses. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures | |
Schedule of valuation of financial instruments measured at fair value on a recurring basis | Fair Value Measurements at December 31, 2019 with: Quoted prices in Significant active markets other Significant for identical observable unobservable (in thousands) Total assets inputs inputs (Level 1) (Level 2) (Level 3) Assets: Available-for-sale securities – equity securities $ 237 $ 237 $ — $ — Investments measured at net asset value - trading securities $ 28,476 Fair Value Measurements at December 31, 2018 with: Quoted prices in Significant active markets other Significant for identical observable unobservable (in thousands) Total assets inputs inputs (Level 1) (Level 2) (Level 3) Assets: Available-for-sale securities – equity securities $ 211 $ 211 $ — $ — Investments measured at net asset value - trading securities $ 22,815 |
Schedule of valuation of financial instruments measured at fair value on a non-recurring basis | Quoted prices in Significant active markets other Significant for identical observable unobservable (in thousands) Total assets inputs inputs (Level 1) (Level 2) (Level 3) Assets: Assets held for sale $ 5,385 $ — $ 5,385 $ — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans | |
Schedule of funded status of retirement income plan | December 31, 2019 2018 (in thousands) Accumulated benefit obligation at end of year $ 48,519 $ 43,417 CHANGE IN PROJECTED BENEFIT OBLIGATION: Benefit obligation at beginning of year $ 43,417 $ 46,397 Service cost — — Interest cost 1,960 1,832 Amendments — — Actuarial loss (gain) 5,521 (2,658) Benefits paid (2,379) (2,154) Projected benefit obligation at end of year $ 48,519 $ 43,417 CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year $ 38,364 $ 38,050 Actual return (loss) on plan assets 4,157 (2,532) Employer contribution — 5,000 Benefits paid (2,379) (2,154) Fair value of plan assets at end of year $ 40,142 $ 38,364 Funded status at end of year $ (8,377) $ (5,053) December 31, 2019 2018 (in thousands) AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) CONSIST OF: Net loss $ 27,693 $ 24,650 Prior service cost (credit) — — Net transition obligation (asset) — — $ 27,693 $ 24,650 |
Schedule of amounts recognized in balance sheet | December 31, 2019 2018 (in thousands) Funded status of the Retirement Income Plan $ (8,377) $ (5,053) SERP liability (30,877) (24,585) Long-term pension liabilities $ (39,254) $ (29,638) |
Schedule of net periodic benefit cost | Years ended December 31, 2019 2018 2017 (in thousands) Service cost for benefits earned during the period $ — $ — $ — Interest cost on projected benefit obligation 1,960 1,832 1,932 Expected return on plan assets (2,598) (2,837) (2,356) Amortization of net loss 919 824 851 Net periodic benefit plan cost $ 281 $ (181) $ 427 |
Schedule of amounts recognized in other comprehensive loss | (in thousands) 2019 2018 2017 Net (gain) loss $ 3,962 $ 2,712 $ (799) Amortization of net loss (919) (824) (851) Net transition obligation (asset) — — — Amount recognized in accumulated other comprehensive loss $ 3,043 $ 1,888 $ (1,650) |
Schedule of components of net periodic benefit | (in thousands) 2020 Amortization of net loss $ 1,002 Prior service cost (credit) — Net transition obligation (asset) — Estimated net periodic benefit plan cost $ 1,002 |
Schedule of weighted average assumptions | December 31, 2019 2018 2017 Projected Benefit Obligation: Discount rate 3.60 % 4.65 % 4.00 % Rate of compensation increase N/A N/A N/A Net Benefit Cost: Discount rate 4.65 % 4.00 % 4.45 % Expected return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase N/A N/A N/A |
Schedule of allocation of plan assets | Target Allocation Percentage of Plan Assets December 31, 2020 2019 2018 Asset Category Cash and cash equivalents 0% - 5% 1.3 % 3.0 % Fixed income securities 15% - 100% 91.7 % 29.1 % Domestic equity securities 0% - 40% — % 39.5 % International equity securities 0% - 20% — % 19.0 % Investments measured at net asset value 0% - 12% 7.0 % 9.4 % Total 100.0 % 100.0 % |
Schedule of level three defined benefit plan assets | Fair Value Hierarchy as of December 31, 2019: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 505 $ 505 $ — Fixed Income Securities (2) 36,813 — 36,813 Domestic Equity Securities (3) 3 3 — Total Assets in the Fair Value Hierarchy $ 37,321 $ 508 $ 36,813 Investments measured at Net Asset Value 2,821 Investments at Fair Value $ 40,142 Fair Value Hierarchy as of December 31, 2018: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 1,140 $ 1,140 $ — Fixed Income Securities (2) 11,163 — 11,163 Domestic Equity Securities (3) 15,182 5,602 9,581 International Equity Securities (4) 7,279 — 7,279 Total Assets in the Fair Value Hierarchy $ 34,764 $ 6,742 $ 28,023 Investments measured at Net Asset Value 3,600 Investments at Fair Value $ 38,364 (1) Cash and cash equivalents, which are used to pay benefits and plan administrative expenses, are held in Rule 2a-7 money market funds. (2) Fixed income securities are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. (3) Domestic equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. (4) International equity securities are valued using a market approach based on the quoted market prices of identical instruments in their respective markets. |
Schedule of future benefits payable for the retirement income plan over the next ten years | (in thousands) 2020 $ 2,764 2021 2,858 2022 2,899 2023 2,919 2024 2,987 2025‑2029 $ 15,211 |
Schedule of summary of the changes in non-vested restricted shares | The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2019: Weighted Average Grant- Shares Date Fair Value Non-vested shares at January 1, 2019 2,352,150 $ 17.15 Granted 858,150 11.39 Vested (625,465) 14.73 Forfeited (191,278) 15.90 Non-vested shares at December 31, 2019 2,393,557 $ 13.23 The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2018: Weighted Average Grant- Shares Date Fair Value Non-vested shares at January 1, 2018 2,736,365 $ 14.50 Granted 522,800 25.13 Vested (750,880) 13.06 Forfeited (156,135) 17.10 Non-vested shares at December 31, 2018 2,352,150 $ 17.15 |
Business Segment and Entity w_2
Business Segment and Entity wide Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Segment and Entity wide Disclosures | |
Schedule of operating segment revenues by major service lines | (in thousands) 2019 2018 2017 Technical Services: Pressure Pumping $ 519,543 $ 945,919 $ 993,538 Downhole Tools 414,352 423,811 294,606 Coiled Tubing 80,758 100,049 109,462 Nitrogen 45,658 49,198 38,961 Snubbing 14,520 17,818 23,838 All other 70,723 110,418 77,946 Total Technical Services $ 1,145,554 $ 1,647,213 $ 1,538,351 Support Services: Rental Tools $ 51,792 $ 50,809 $ 30,264 All other 25,063 22,983 26,612 Total Support Services $ 76,855 $ 73,792 $ 56,876 Total Revenues $ 1,222,409 $ 1,721,005 $ 1,595,227 |
Schedule of revenue by geographical location | Years ended December 31, 2019 2018 2017 (in thousands) United States Revenues $ 1,157,760 $ 1,630,569 $ 1,539,462 International Revenues 64,649 90,436 55,765 $ 1,222,409 $ 1,721,005 $ 1,595,227 |
Schedule of segment reporting information by segment | Gain on Impairment Technical Support disposition of and other (in thousands) Services Services Corporate assets, net charges Total 2019 Revenues $ 1,145,554 $ 76,855 $ — $ — $ — $ 1,222,409 Operating (loss) profit (32,993) 10,016 (12,745) 3,707 (82,273) (1) (114,288) Capital expenditures 237,950 10,330 2,349 — — 250,629 Depreciation and amortization 154,776 15,328 305 — — 170,409 Identifiable assets 848,264 72,351 132,603 — — 1,053,218 2018 Revenues $ 1,647,213 $ 73,792 $ — $ — $ — $ 1,721,005 Operating profit (loss) 216,703 4,612 (14,629) 3,344 — 210,030 Capital expenditures 230,262 10,364 1,984 — — 242,610 Depreciation and amortization 150,508 12,174 438 — — 163,120 Identifiable assets 925,305 78,413 195,862 — — 1,199,580 2017 Revenues $ 1,538,351 $ 56,876 $ — $ — $ — $ 1,595,227 Operating profit (loss) 251,476 (12,228) (17,561) 4,530 — 226,217 Capital expenditures 106,131 9,949 1,429 — — 117,509 Depreciation and amortization 145,507 17,570 460 — — 163,537 Identifiable assets 896,803 75,568 174,853 — — 1,147,224 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Schedule of operating leased assets and liabilities | (in thousands) December 31,2019 Assets: Operating lease right-of-use assets $ 33,850 Liabilities: Current portion of operating leases $ 10,625 Long-term operating lease liabilities 28,378 Total lease liabilities $ 39,003 |
Schedule of operating lease expense | Year ended (in thousands) December 31,2019 Operating lease cost $ 14,109 Short-term lease cost 7,254 Variable lease cost 521 Sublease income (72) Total lease cost $ 21,812 |
Schedule of lease cost | Other information: Cash paid for amounts included in the measurement of lease liabilities – operating leases (in thousands) $ 12,863 ROU assets obtained in exchange for operating lease liabilities (in thousands) $ 7,992 Weighted average remaining lease term – operating leases 5.5 years Weighted average discount rate – operating leases 3.58 % |
Schedule of maturity of lease liabilities | Maturity of lease liabilities (in thousands) Operating Leases 2020 12,091 2021 9,623 2022 6,608 2023 4,153 2024 3,078 Thereafter 9,132 Total lease payments 44,685 Less: Amounts representing interest (5,682) Present value of lease liabilities $ 39,003 |
Significant Accounting Polici_4
Significant Accounting Policies - Common Stock (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Accounting Policies | ||
Common stock, shares authorized (in shares) | 349,000,000 | 349,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Votes per share owned | one |
Significant Accounting Polici_5
Significant Accounting Policies - Preferred Stock (Details) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Significant Accounting Policies | ||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Significant Accounting Polici_6
Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer concentration risk - customer | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Concentration of Credit Risk | |||
Customers (in customers) | 0 | 0 | 0 |
Concentration risk (in percent) | 10.00% | 10.00% | 10.00% |
Accounts receivable | |||
Concentration of Credit Risk | |||
Customers (in customers) | 0 | 0 | |
Concentration risk (in percent) | 10.00% | 10.00% |
Significant Accounting Polici_7
Significant Accounting Policies - Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies | |||
Gain (loss) available for sale security | $ 0 | $ 0 | $ 0 |
Significant Accounting Polici_8
Significant Accounting Policies - Accounts Receivable (Details) | Dec. 31, 2019 |
Significant Accounting Policies | |
Past due (in days) | 60 days |
Significant Accounting Polici_9
Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Operating equipment | Minimum | |
Property, Plant and Equipment | |
Useful lives (in years) | 3 years |
Operating equipment | Maximum | |
Property, Plant and Equipment | |
Useful lives (in years) | 20 years |
Building and leasehold improvements | Minimum | |
Property, Plant and Equipment | |
Useful lives (in years) | 15 years |
Building and leasehold improvements | Maximum | |
Property, Plant and Equipment | |
Useful lives (in years) | 39 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment | |
Useful lives (in years) | 5 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment | |
Useful lives (in years) | 7 years |
Computer software | |
Property, Plant and Equipment | |
Useful lives (in years) | 5 years |
Vehicles | Minimum | |
Property, Plant and Equipment | |
Useful lives (in years) | 3 years |
Vehicles | Maximum | |
Property, Plant and Equipment | |
Useful lives (in years) | 5 years |
Significant Accounting Polic_10
Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment information: | ||
Goodwill | $ 32,150 | $ 32,150 |
Goodwill impairment | 0 | 0 |
Technical Services | ||
Segment information: | ||
Goodwill | 30,992 | 30,992 |
Support Services | ||
Segment information: | ||
Goodwill | $ 1,158 | $ 1,158 |
Significant Accounting Polic_11
Significant Accounting Policies - Advertising (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies | |||
Advertising Expense | $ 2,003,000 | $ 2,220,000 | $ 1,696,000 |
Significant Accounting Polic_12
Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Significant Accounting Policies | ||||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% | 35.00% |
Discrete tax benefit adjustment | $ 19.3 |
Significant Accounting Polic_13
Significant Accounting Policies - Defined Benefit Pension Plan (Details) | 12 Months Ended |
Dec. 31, 2019age | |
Significant Accounting Policies | |
Defined benefit pension plan minimum age | 65 |
Defined Pension Plan required year of service prior to 2002 | 1 year |
Significant Accounting Polic_14
Significant Accounting Policies - Earnings per share (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies | |||
Net income (loss) available for stockholders | $ (87,111) | $ 175,402 | $ 162,511 |
Less: Adjustments for losses attributable to participating securities | (334) | (1,839) | (2,102) |
Net income (loss) used in calculating per share amounts | $ (87,445) | $ 173,563 | $ 160,409 |
Weighted average shares outstanding (including participating securities) | 214,730 | 215,198 | 217,194 |
Adjustment for participating securities | (2,509) | (2,453) | (2,891) |
Shares used in calculating basic and diluted (loss) earnings per share | 212,221 | 212,745 | 214,303 |
Significant Accounting Polic_15
Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | |
RECENT ACCOUNTING STANDARDS | |||
Operating Lease, Liability | $ 39,003 | ||
Operating Lease, Right-of-Use Asset | 33,850 | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (2,732) | ||
ASU No. 2018-02, Leases (Topic 842) | |||
RECENT ACCOUNTING STANDARDS | |||
Operating Lease, Liability | $ 39,003 | ||
ASU No. 2018-02, Leases (Topic 842) | Restatement Adjustment | |||
RECENT ACCOUNTING STANDARDS | |||
Operating Lease, Liability | $ 44,000 | ||
Operating Lease, Right-of-Use Asset | $ 44,000 | ||
ASU No. 2018-02, (Topic 220) | |||
RECENT ACCOUNTING STANDARDS | |||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ 2,700 |
Revenues - Payment Terms (Detai
Revenues - Payment Terms (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Revenue satisfaction period | 30 days |
Maximum | |
Revenue satisfaction period | 60 days |
Revenues - Timing of revenue re
Revenues - Timing of revenue recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of revenue: | |||
Total revenues | $ 1,222,409 | $ 1,721,005 | $ 1,595,227 |
Oilfield services transferred at a point in time | |||
Disaggregation of revenue: | |||
Total revenues | |||
Oilfield services transferred over time | |||
Disaggregation of revenue: | |||
Total revenues | $ 1,222,409 | $ 1,721,005 | $ 1,595,227 |
Revenues - Contract balances (D
Revenues - Contract balances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable | ||
Disaggregation of revenue: | ||
Unbilled trade receivables | $ 52,052 | $ 56,408 |
Impairment and Other Charges (D
Impairment and Other Charges (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Impairment and Other Charges. | |
Abandonment of assets | $ 35,861,000 |
Assets held for sale write down | 14,326,000 |
Retirement of equipment | 17,218,000 |
Inventory write-downs | 9,077,000 |
Severance costs | 5,748,000 |
Other | 43,000 |
Total | $ 82,273,000 |
Accounts Receivable - Accounts
Accounts Receivable - Accounts receivable, net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Receivable | ||
Billed | $ 191,579 | $ 266,660 |
Unbilled | 52,052 | 56,408 |
Other receivables | 4,124 | 5,278 |
Total | 247,755 | 328,346 |
Less: Allowance for doubtful accounts | (5,181) | (4,813) |
Accounts receivable, net | $ 242,574 | $ 323,533 |
Accounts Receivable - Allowance
Accounts Receivable - Allowance for doubtful accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts rollforward | ||
Beginning balance | $ 4,813 | $ 4,471 |
Bad debt expense | 1,481 | 588 |
Accounts written-off | (1,142) | (260) |
Recoveries | 29 | 14 |
Ending balance | $ 5,181 | $ 4,813 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories | ||
Raw materials, parts and supplies of inventories | $ 100,947,000 | $ 130,083,000 |
Reserve for obsolete and slow moving inventory | $ 10,467,000 | $ 10,168,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment | ||
Gross property, plant and equipment | $ 1,913,635 | $ 2,151,809 |
Less: accumulated depreciation | (1,396,908) | (1,633,827) |
Net property, plant and equipment | 516,727 | 517,982 |
Land | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 18,945 | 21,159 |
Building and leasehold improvements | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 114,318 | 140,269 |
Operating equipment | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 1,194,071 | 1,429,906 |
Computer software | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 25,247 | 24,619 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 7,086 | 7,606 |
Vehicles | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | $ 553,968 | $ 528,250 |
Property, Plant and Equipment -
Property, Plant and Equipment - Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment | |||
Depreciation | $ 172,600 | $ 166,200 | $ 166,900 |
Capital lease obligations | 0 | 0 | |
Accounts payable | 53,147 | 103,401 | |
Inventory to property, plant and equipment transfer amount | 20,800 | 23,100 | |
Property and Equipment | |||
Property, Plant and Equipment | |||
Accounts payable | $ 6,800 | $ 14,800 | $ 7,100 |
Income Taxes - Summary of compo
Income Taxes - Summary of components of provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current provision (benefit): | |||
Federal | $ (3,548) | $ 13,708 | $ 95,995 |
State | (3,185) | 3,932 | 13,966 |
Foreign | 2,968 | 6,843 | 2,953 |
Deferred provision (benefit): | |||
Federal | (26,493) | 23,203 | (39,710) |
State | 4,268 | (1,808) | (2,899) |
Total income tax (benefit) provision | $ (25,990) | $ 45,878 | $ 70,305 |
Income Taxes - Summary of recon
Income Taxes - Summary of reconciliation between federal statutory rate and effective tax rate (Details) | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes | ||||
Federal statutory rate | 21.00% | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal benefit | (0.30%) | 2.60% | 1.90% | |
Tax credits | 0.30% | (0.10%) | (0.70%) | |
Non-deductible expenses | (1.90%) | 1.80% | 2.00% | |
Adjustments related to the Act | (2.30%) | (8.30%) | ||
Adjustments related to vesting of restricted stock | (0.40%) | (0.80%) | (1.20%) | |
Other | 4.30% | (1.50%) | 1.50% | |
Effective tax rate | 23.00% | 20.70% | 30.20% |
Income Taxes - Summary of signi
Income Taxes - Summary of significant components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Self-insurance | $ 5,729 | $ 5,055 |
Pension | 9,617 | 7,261 |
State net operating loss carryforwards | 1,445 | 1,663 |
Bad debt | 1,392 | 1,291 |
Stock-based compensation | 3,358 | 3,501 |
Inventory reserve | 2,478 | 2,447 |
Impairment reserve | 2,802 | |
Foreign tax credits carryforwards | 3,086 | |
Federal net operating loss carryforwards | 19,664 | |
Basis differences in consolidated limited liability company | 5,778 | |
All others | 2,191 | 1,690 |
Valuation allowance | (415) | |
Gross deferred tax assets | 57,540 | 22,908 |
Deferred tax liabilities: | ||
Depreciation | (87,647) | (71,647) |
Goodwill amortization | (6,763) | (6,587) |
Basis differences in consolidated limited liability company | (4,636) | |
Basis differences in joint ventures | (444) | (408) |
All others | (5) | (5) |
Gross deferred tax liabilities | (94,859) | (83,283) |
Net deferred tax liabilities | $ (37,319) | $ (60,375) |
Income Taxes - Unrecognized (De
Income Taxes - Unrecognized (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized Tax Benefits | ||
Balance at January 1 | $ 2,215,000 | $ 2,215,000 |
Additions based on tax positions related to the current year | 0 | 0 |
Additions for tax positions of prior years | 0 | 0 |
Reductions for tax positions of prior years | 0 | 0 |
Balance at December 31 | $ 2,215,000 | $ 2,215,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income tax carryforwards | ||||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% | 35.00% |
Discrete tax benefit adjustment | $ 19,300,000 | |||
Discrete income tax provision adjustment related to vesting of restricted stock | $ 5,100,000 | |||
Tax expense related to executive compensation | 1,300,000 | |||
Provisional expense | 500,000 | |||
Valuation allowance, indefinite carryforward | $ 0 | |||
Deferred tax assets, valuation allowance | 415,000 | |||
Unrecognized Tax Benefits | 2,215,000 | 2,215,000 | 2,215,000 | |
Income tax payments (refunds) | (11,800,000) | 18,000,000 | $ 98,000,000 | |
Accrued interest and penalties | 203,000 | $ 263,000 | ||
Federal | ||||
Income tax carryforwards | ||||
Net operating loss carryforwards | 93,600,000 | |||
State and Local Jurisdiction | ||||
Income tax carryforwards | ||||
Net operating loss carryforwards | 23,900,000 | |||
Foreign | ||||
Income tax carryforwards | ||||
Net operating loss carryforwards | 3,100,000 | |||
Deferred tax assets, valuation allowance | $ 0 |
Long-Term Debt - Interest incur
Long-Term Debt - Interest incurred (Details) - Revolving credit facility - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revolving credit facility | |||
Interest incurred | $ 256 | $ 390 | $ 415 |
Interest paid | $ 162 | $ 241 | $ 181 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facility (Details) | Jul. 26, 2018USD ($) | Dec. 31, 2019USD ($)Lender |
Amendment | ||
Revolving credit facility | ||
Maximum consolidated leverage ratio | 2.50% | |
Minimum debt service coverage ratio | 2.00% | |
Minimum EBITDA | $ 50,000,000 | |
Revolving credit facility | ||
Revolving credit facility | ||
Number of additional credit lenders | Lender | 5 | |
Maximum borrowing capacity | $ 125,000,000 | |
Minimum EBITDA | 50,000,000 | |
Minimum net worth covenant | $ 600,000,000 | |
Reduction in commitment fees (in points) | 7.50% | |
Origination and other costs | 3,300,000 | |
Unamortized origination and other costs | 200,000 | |
Outstanding debt | 0 | |
Remaining borrowing capacity | $ 103,400,000 | |
Revolving credit facility | Minimum | ||
Revolving credit facility | ||
Annual fee (as a percent) | 0.15% | |
Revolving credit facility | Maximum | ||
Revolving credit facility | ||
Annual fee (as a percent) | 0.25% | |
Revolving credit facility | Eurodollar Rate | Minimum | ||
Revolving credit facility | ||
Basis points added | 1.125% | |
Revolving credit facility | Eurodollar Rate | Maximum | ||
Revolving credit facility | ||
Basis points added | 2.125% | |
Revolving credit facility | Base Rate | Minimum | ||
Revolving credit facility | ||
Basis points added | 0.125% | |
Revolving credit facility | Base Rate | Maximum | ||
Revolving credit facility | ||
Basis points added | 1.125% | |
Revolving credit facility | Base Rate | Federal Funds Rate | ||
Revolving credit facility | ||
Basis points added | 0.50% | |
Revolving credit facility | Base Rate | Eurodollar Rate | ||
Revolving credit facility | ||
Basis points added | 1.00% | |
Revolving credit facility | Letter of credit | ||
Revolving credit facility | ||
Maximum borrowing capacity | $ 50,000,000 | $ 35,000,000 |
Outstanding debt | 21,600,000 | |
Revolving credit facility | Swingline | ||
Revolving credit facility | ||
Maximum borrowing capacity | $ 35,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI rollforward | ||
Balance | $ (18,746) | $ (16,702) |
Change during the period: | ||
Before-tax amount | (3,409) | (3,348) |
Tax (expense) benefit | 970 | 665 |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (2,732) | |
Reclassification adjustment, net of taxes: | ||
Amortization of net loss | 694 | 639 |
Total activity in period | (4,477) | (2,044) |
Balance | (23,223) | (18,746) |
Pension Adjustment | ||
AOCI rollforward | ||
Balance | (15,878) | (14,470) |
Change during the period: | ||
Before-tax amount | (3,962) | (2,712) |
Tax (expense) benefit | 970 | 665 |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (2,732) | |
Reclassification adjustment, net of taxes: | ||
Amortization of net loss | 694 | 639 |
Total activity in period | (5,030) | (1,408) |
Balance | (20,908) | (15,878) |
Unrealized Gain (Loss) On Securities | ||
AOCI rollforward | ||
Balance | 15 | |
Change during the period: | ||
Before-tax amount | (15) | |
Reclassification adjustment, net of taxes: | ||
Total activity in period | (15) | |
Foreign Currency Translation | ||
AOCI rollforward | ||
Balance | (2,868) | (2,247) |
Change during the period: | ||
Before-tax amount | 553 | (621) |
Reclassification adjustment, net of taxes: | ||
Total activity in period | 553 | (621) |
Balance | $ (2,315) | $ (2,868) |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial instruments measured at fair value on recurring basis (Details) - Fair value on a recurring basis - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Available-for-sale securities - equity securities | $ 237 | $ 211 |
Investments measured at net asset value - trading securities | 28,476 | 22,815 |
Level 1 | ||
Assets: | ||
Available-for-sale securities - equity securities | 237 | 211 |
Level 2 | ||
Assets: | ||
Available-for-sale securities - equity securities | 0 | 0 |
Level 3 | ||
Assets: | ||
Available-for-sale securities - equity securities | $ 0 | $ 0 |
Fair Value Disclosures - Fina_2
Fair Value Disclosures - Financial instruments measured at fair value on non-recurring basis (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Assets: | |
Assets held for sale | $ 5,385 |
Fair value on a non-recurring basis | |
Assets: | |
Assets held for sale | 5,385 |
Fair value on a non-recurring basis | Level 1 | |
Assets: | |
Assets held for sale | 0 |
Fair value on a non-recurring basis | Level 2 | |
Assets: | |
Assets held for sale | 5,385 |
Fair value on a non-recurring basis | Level 3 | |
Assets: | |
Assets held for sale | $ 0 |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded status of Retirement Income Plan and amounts recognized in consolidated balance sheets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation at end of year | $ 48,519 | $ 43,417 | |
Retirement Income Plan | |||
CHANGE IN PROJECTED BENEFIT OBLIGATION: | |||
Benefit obligation at beginning of year | 43,417 | 46,397 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 1,960 | 1,832 | 1,932 |
Amendments | 0 | 0 | |
Actuarial loss (gain) | 5,521 | (2,658) | |
Benefits paid | (2,379) | (2,154) | |
Projected benefit obligation at end of year | 48,519 | 43,417 | 46,397 |
CHANGE IN PLAN ASSETS: | |||
Fair value of plan assets at beginning of year | 38,364 | 38,050 | |
Actual return (loss) on plan assets | 4,157 | (2,532) | |
Employer contribution | 0 | 5,000 | |
Benefits paid | (2,379) | (2,154) | |
Fair value of plan assets at end of year | 40,142 | 38,364 | 38,050 |
Funded status at end of year | (8,377) | (5,053) | |
AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) CONSIST OF: | |||
Net loss | 27,693 | 24,650 | |
Prior service cost (credit) | 0 | 0 | |
Net transition obligation (asset) | 0 | 0 | $ 0 |
Before-tax amount | $ 27,693 | $ 24,650 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts recognized in consolidated balance sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term pension liabilities | $ (39,254) | $ (29,638) |
Retirement Income Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status of the Retirement Income Plan | (8,377) | (5,053) |
SERP liability | (30,877) | (24,585) |
Long-term pension liabilities | $ (39,254) | $ (29,638) |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of net periodic benefit cost (Details) - Retirement Income Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for benefits earned during the period | $ 0 | $ 0 | $ 0 |
Interest cost on projected benefit obligation | 1,960 | 1,832 | 1,932 |
Expected return on plan assets | (2,598) | (2,837) | (2,356) |
Amortization of net loss | 919 | 824 | 851 |
Net periodic benefit plan cost | $ 281 | $ (181) | $ 427 |
Employee Benefit Plans - Pre-ta
Employee Benefit Plans - Pre-tax amounts recognized in comprehensive loss (Details) - Retirement Income Plan - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net (gain) loss | $ 3,962,000 | $ 2,712,000 | $ (799,000) |
Amortization of net loss | (919,000) | (824,000) | (851,000) |
Net transition obligation (asset) | 0 | 0 | 0 |
Amount recognized in accumulated other comprehensive loss | $ 3,043,000 | $ 1,888,000 | $ (1,650,000) |
Employee Benefit Plans - Accumu
Employee Benefit Plans - Accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in 2020 (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Employee Benefit Plans | |
Amortization of net loss | $ 1,002 |
Prior service cost (credit) | 0 |
Net transition obligation (asset) | 0 |
Estimated net periodic benefit plan cost | $ 1,002 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted average assumptions used to determine projected benefit obligation and net benefit cost (Details) - Retirement Income Plan | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Projected Benefit Obligation: | |||
Discount rate | 3.60% | 4.65% | 4.00% |
Rate of compensation increase | |||
Net Benefit Cost: | |||
Discount rate | 4.65% | 4.00% | 4.45% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Rate of compensation increase |
Employee Benefit Plans - Plan w
Employee Benefit Plans - Plan weighted average asset allocation by asset category along with target allocation for 2020 (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 1.30% | 3.00% |
Cash and cash equivalents | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 0.00% | |
Cash and cash equivalents | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 5.00% | |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 91.70% | 29.10% |
Fixed income securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 15.00% | |
Fixed income securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 100.00% | |
Domestic Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 0.00% | 39.50% |
Domestic Equity Securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 0.00% | |
Domestic Equity Securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 40.00% | |
International Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 0.00% | 19.00% |
International Equity Securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 0.00% | |
International Equity Securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 20.00% | |
Investments measured at net asset value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 7.00% | 9.40% |
Investments measured at net asset value | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 0.00% | |
Investments measured at net asset value | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation for 2019 minimum percentage | 12.00% |
Employee Benefit Plans - Plan a
Employee Benefit Plans - Plan assets using fair value hierarchy (Details) - Retirement Income Plan - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Investments measured at Net Asset Value | $ 2,821 | $ 3,600 |
Investments at Fair Value | 40,142 | 38,364 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 505 | 1,140 |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 36,813 | 11,163 |
Domestic Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 3 | 15,182 |
International Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 7,279 | |
Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 37,321 | 34,764 |
Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 505 | 1,140 |
Level 1 | Domestic Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 3 | 5,602 |
Level 1 | Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 508 | 6,742 |
Level 2 | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 36,813 | 11,163 |
Level 2 | Domestic Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 9,581 | |
Level 2 | International Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 7,279 | |
Level 2 | Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | $ 36,813 | $ 28,023 |
Employee Benefit Plans - Future
Employee Benefit Plans - Future benefits payable for Retirement Income Plan over next ten years (Details) - Retirement Income Plan $ in Thousands | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 2,764 |
2021 | 2,858 |
2022 | 2,899 |
2023 | 2,919 |
2024 | 2,987 |
2025-2029 | $ 15,211 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in non-vested restricted shares (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Non-vested shares at January 1 | 2,352,150 | 2,736,365 | |
Granted | 858,150 | 522,800 | |
Vested | (625,465) | (750,880) | |
Forfeited | (191,278) | (156,135) | |
Non-vested shares at December 31 | 2,393,557 | 2,352,150 | 2,736,365 |
Weighted Average Grant-Date Fair Value | |||
Non-vested shares at January 1 | $ 17.15 | $ 14.50 | |
Granted | 11.39 | 25.13 | $ 21.66 |
Vested | 14.73 | 13.06 | |
Forfeited | 15.90 | 17.10 | |
Non-vested shares at December 31 | $ 13.23 | $ 17.15 | $ 14.50 |
Employee Benefit Plans - Fair v
Employee Benefit Plans - Fair value non-vested restricted shares (Details) - Retirement Income Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation exceeds fair value of the plan assets | $ (8,377,000) | $ (5,053,000) | |
Employer contribution | 0 | 5,000,000 | |
Accumulated other comprehensive loss, before tax | $ 3,043,000 | $ 1,888,000 | $ (1,650,000) |
Expected long-term return assumption | 7.00% | 7.00% | 7.00% |
Employee Benefit Plans - SERP (
Employee Benefit Plans - SERP (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Proceeds from benefit plan financing arrangement | $ 507,000 | $ 2,218,000 | |
Supplemental Retirement Plan ('SERP') | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Variable life insurance policies investment amount | 55,300,000 | 47,900,000 | |
Fair value of plan assets | 28,476,000 | 22,815,000 | |
Trading (losses) gains related to the SERP assets | 5,524,000 | $ (2,282,000) | $ 3,156,000 |
Cash Surrender Value of Life Insurance | 377,000 | ||
Proceeds from benefit plan financing arrangement | 507,000 | ||
Life insurance, tax free gains | $ 126,000 |
Employee Benefit Plans -401(k)
Employee Benefit Plans -401(k) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefit Plans | |||
Minimum percentage of annual contribution per employee | 1.00% | ||
Maximum percentage of annual contribution per employee | 25.00% | ||
Percentage of employer matching contribution | 50.00% | 50.00% | |
Minimum number of service period for employees to be fully vested | 2 years | ||
Threshold limit percentage of employee compensation | 6.00% | 6.00% | |
Percentage of matching contributions | 100.00% | ||
Annual compensation | $ 1 | $ 1 | |
Employer contribution | $ 10,805,000 | $ 5,704,000 | $ 4,509,000 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Incentive Plans (Details) - Stock Incentive Plans - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock incentive plans | |||
Period of stock options and restricted stock issued | 10 years | ||
Common stock reserved for future issuance | 8,000,000 | ||
Number of shares available for grant | 4,729,863 | ||
Pre-tax stock-based employee compensation expense | $ 8,630,000 | $ 9,419,000 | $ 11,090,000 |
After tax stock-based employee compensation expense | $ 6,516,000 | $ 7,111,000 | $ 7,042,000 |
Employee Benefit Plans - Stoc_2
Employee Benefit Plans - Stock Options (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Options | |||
Stock incentive plans | |||
Minimum ownership considered major owner | 10.00% | ||
Percentage of fair market value of the common stock for major owners | 110.00% | ||
Vesting period | 5 years | ||
Expiration period of the stock | 10 years | ||
Expiration period of the stock of majority owners | 5 years | ||
Restricted Stock | |||
Stock incentive plans | |||
Stock based compensation award, vesting percentage | 20.00% | ||
Weighted average grant date fair value (in dollars per share) | $ 11.39 | $ 25.13 | $ 21.66 |
Total fair value of shares vested | $ 7,026,000 | $ 16,483,000 | $ 19,480,000 |
Tax benefits for compensation expense for restricted stock awards | 442,000 | $ 1,889,000 | |
Unrecognized compensation cost related to non-vested restricted shares | $ 44,642,000 | ||
Period for recognition of compensation cost related to non-vested restricted shares | 3 years 4 months 24 days |
Related Party Transactions - Ma
Related Party Transactions - Marine (Details) - Marine Products - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2015 | |
Related party transactions: | ||||
Ownership percentage | 100.00% | 50.00% | ||
Transition Support Services Agreement [Member] | ||||
Related party transactions: | ||||
Related party charges | $ 865,000 | $ 873,000 | $ 849,000 | |
Due from related party, current | $ 55,000 | $ 28,000 |
Related Party Transactions - Ot
Related Party Transactions - Other (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related party transactions: | ||||
Rent and allocable fixed cost for corporate aircraft | $ 1,000,000 | $ 800,000 | ||
Rollins, Inc. | ||||
Related party transactions: | ||||
Termination notice (in days) | 6 months | |||
Related party purchases | $ 104,000 | 101,000 | $ 104,000 | |
Chief Executive Officer | ||||
Related party transactions: | ||||
Ownership percentage | 50.00% | |||
225 RC, LLC | ||||
Related party transactions: | ||||
Ownership percentage | 50.00% | |||
Rent and allocable fixed cost for corporate aircraft | $ 199,000 | 199,000 | 197,000 | |
Marine Products | ||||
Related party transactions: | ||||
Ownership percentage | 50.00% | 100.00% | ||
225 RC, LLC and Marine Products | ||||
Related party transactions: | ||||
Investment in joint venture | $ 2,554,000 | |||
Lease agreement term (in years) | 5 years | |||
Other | ||||
Related party transactions: | ||||
Related party purchases | $ 1,625,000 | $ 1,467,000 | $ 1,372,000 |
Business Segment and Entity w_3
Business Segment and Entity wide Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment information: | |||
Total revenues | $ 1,222,409 | $ 1,721,005 | $ 1,595,227 |
Technical Services | |||
Segment information: | |||
Total revenues | 1,145,554 | 1,647,213 | 1,538,351 |
Technical Services | Pressure Pumping | |||
Segment information: | |||
Total revenues | 519,543 | 945,919 | 993,538 |
Technical Services | Downhole Tools | |||
Segment information: | |||
Total revenues | 414,352 | 423,811 | 294,606 |
Technical Services | Coiled Tubing | |||
Segment information: | |||
Total revenues | 80,758 | 100,049 | 109,462 |
Technical Services | Nitrogen | |||
Segment information: | |||
Total revenues | 45,658 | 49,198 | 38,961 |
Technical Services | Snubbing | |||
Segment information: | |||
Total revenues | 14,520 | 17,818 | 23,838 |
Technical Services | All other | |||
Segment information: | |||
Total revenues | 70,723 | 110,418 | 77,946 |
Support Services | |||
Segment information: | |||
Total revenues | 76,855 | 73,792 | 56,876 |
Support Services | Rental Tools | |||
Segment information: | |||
Total revenues | 51,792 | 50,809 | 30,264 |
Support Services | All other | |||
Segment information: | |||
Total revenues | $ 25,063 | $ 22,983 | $ 26,612 |
Business Segment and Entity w_4
Business Segment and Entity wide Disclosures - Summary of selected information between United States and all international locations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Revenues | $ 1,222,409 | $ 1,721,005 | $ 1,595,227 |
Operating (loss) income: | |||
Operating (loss) profit | (114,288) | 210,030 | 226,217 |
Capital expenditures | 250,629 | 242,610 | 117,509 |
Depreciation and amortization | 170,409 | 163,120 | 163,537 |
Identifiable assets | 1,053,218 | 1,199,580 | 1,147,224 |
Impairment and Other Charges | 82,273 | ||
Technical Services | |||
Revenues: | |||
Revenues | 1,145,554 | 1,647,213 | 1,538,351 |
Operating (loss) income: | |||
Operating (loss) profit | (32,993) | 216,703 | 251,476 |
Capital expenditures | 237,950 | 230,262 | 106,131 |
Depreciation and amortization | 154,776 | 150,508 | 145,507 |
Identifiable assets | 848,264 | 925,305 | 896,803 |
Impairment and Other Charges | 80,263 | ||
Support Services | |||
Revenues: | |||
Revenues | 76,855 | 73,792 | 56,876 |
Operating (loss) income: | |||
Operating (loss) profit | 10,016 | 4,612 | (12,228) |
Capital expenditures | 10,330 | 10,364 | 9,949 |
Depreciation and amortization | 15,328 | 12,174 | 17,570 |
Identifiable assets | 72,351 | 78,413 | 75,568 |
Impairment and other charges | |||
Operating (loss) income: | |||
Operating (loss) profit | (82,273) | ||
Corporate | |||
Operating (loss) income: | |||
Operating (loss) profit | (12,745) | (14,629) | (17,561) |
Capital expenditures | 2,349 | 1,984 | 1,429 |
Depreciation and amortization | 305 | 438 | 460 |
Identifiable assets | 132,603 | 195,862 | 174,853 |
Impairment and Other Charges | 2,010 | ||
Gain (loss) on disposition of assets, net | |||
Operating (loss) income: | |||
Operating (loss) profit | $ 3,707 | $ 3,344 | $ 4,530 |
Business Segment and Entity w_5
Business Segment and Entity wide Disclosures - Summary of financial information concerning reportable segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment information: | |||
Total revenues | $ 1,222,409 | $ 1,721,005 | $ 1,595,227 |
United States Revenues | |||
Segment information: | |||
Total revenues | 1,157,760 | 1,630,569 | 1,539,462 |
International Revenues | |||
Segment information: | |||
Total revenues | $ 64,649 | $ 90,436 | $ 55,765 |
Leases - Assets and liabilities
Leases - Assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets: | |||
Operating lease right-of-use assets | $ 33,850 | ||
Liabilities | |||
Current portion of operating leases | 10,625 | ||
Long-term operating lease liabilities | 28,378 | ||
Present value of lease liabilities | 39,003 | ||
Impairment of acceleration of remaining balance of ROU assets | 4,903 | ||
Operating Leases, Rent Expense, Net | $ 21,600 | $ 17,100 | |
ASU No. 2018-02, Leases (Topic 842) | |||
Liabilities | |||
Present value of lease liabilities | $ 39,003 |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
LEASES | |||
Operating lease cost | $ 14,109 | ||
Short-term lease cost | 7,254 | ||
Variable lease cost | 521 | ||
Sublease income | (72) | ||
Total lease cost | $ 21,812 | ||
Operating Leases, Rent Expense, Net | $ 21,600 | $ 17,100 |
Leases - Other information (Det
Leases - Other information (Details) - ASU No. 2018-02, Leases (Topic 842) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
LEASES | |
Cash paid for amounts included in the measurement of lease liabilities - (in thousands) | $ 12,863 |
ROU assets obtained in exchange for lease liabilities (in thousands) | $ 7,992 |
Weighted average remaining lease term | 5 years 6 months |
Weighted average discount rate | 3.58% |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity | ||
Present value of lease liabilities | $ 39,003 | |
ASU No. 2018-02, Leases (Topic 842) | ||
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity | ||
2020 | 12,091 | $ 11,800 |
2021 | 9,623 | 10,600 |
2022 | 6,608 | 7,800 |
2023 | 4,153 | 5,600 |
2024 | 3,078 | 2,900 |
Thereafter | 9,132 | 6,200 |
Total lease payments | 44,685 | $ 44,900 |
Less: Amounts representing interest | (5,682) | |
Present value of lease liabilities | $ 39,003 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | $ 4,813 | $ 4,471 | $ 2,553 |
Charged to Costs and Expenses | 1,481 | 588 | 1,441 |
Net (Deductions) Recoveries | (1,113) | (246) | 477 |
Balance at End of Period | 5,181 | 4,813 | 4,471 |
Deferred tax asset valuation allowance | |||
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | 445 | 3,994 | 356 |
Charged to Costs and Expenses | 3,638 | ||
Net (Deductions) Recoveries | 26 | (3,549) | |
Balance at End of Period | 471 | 445 | 3,994 |
Reserve for obsolete or slow moving inventory | |||
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | 10,169 | 3,875 | 3,052 |
Charged to Costs and Expenses | 6,467 | 8,088 | 5,869 |
Net (Deductions) Recoveries | (6,169) | (1,794) | (5,046) |
Balance at End of Period | $ 10,467 | $ 10,169 | $ 3,875 |