Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2020 | |
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, 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, par value $0.10 | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 215,259,661 | |
Entity Central Index Key | 0000742278 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Trading Symbol | RES |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 82,646 | $ 50,023 |
Accounts receivable, net | 247,965 | 242,574 |
Inventories | 97,267 | 100,947 |
Income taxes receivable | 35,000 | 24,145 |
Prepaid expenses | 8,701 | 10,459 |
Assets held for sale | 5,385 | 5,385 |
Other current assets | 2,860 | 3,325 |
Current assets | 479,824 | 436,858 |
Property, plant and equipment, net | 295,262 | 516,727 |
Operating lease right-of-use assets | 33,250 | 33,850 |
Goodwill | 32,150 | 32,150 |
Other assets | 28,646 | 33,633 |
Total assets | 869,132 | 1,053,218 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 70,601 | 53,147 |
Accrued payroll and related expenses | 19,791 | 19,641 |
Accrued insurance expenses | 7,092 | 7,540 |
Accrued state, local and other taxes | 3,774 | 2,427 |
Income taxes payable | 1,791 | 1,534 |
Current portion of operating lease liabilities | 10,215 | 10,625 |
Other accrued expenses | 4,914 | 6,488 |
Current liabilities | 118,178 | 101,402 |
Long-term accrued insurance expenses | 14,865 | 14,040 |
Long-term pension liabilities | 33,208 | 39,254 |
Deferred income taxes | 4,068 | 37,319 |
Long-term operating lease liabilities | 27,529 | 28,378 |
Other long-term liabilities | 49 | 2,492 |
Total liabilities | 197,897 | 222,885 |
STOCKHOLDER'S EQUITY | ||
Common stock | 21,526 | 21,443 |
Capital in excess of par value | ||
Retained earnings | 672,912 | 832,113 |
Accumulated other comprehensive loss | (23,203) | (23,223) |
Total stockholders' equity | 671,235 | 830,333 |
Total liabilities and stockholders' equity | $ 869,132 | $ 1,053,218 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for doubtful accounts | $ 5,100,000 | $ 5,181,000 |
Accumulated depreciation | $ 1,145,122 | $ 1,396,908 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Revenues | $ 243,777 | $ 334,656 |
Cost of revenues (exclusive of items shown separately below) | 181,944 | 252,395 |
Selling, general and administrative expenses | 36,530 | 45,421 |
Impairment and other charges | 205,536 | |
Depreciation and amortization | 39,293 | 42,505 |
Gain on disposition of assets, net | (819) | (3,504) |
Operating loss | (218,707) | (2,161) |
Interest expense | (113) | (89) |
Interest income | 334 | 800 |
Other (expense) income, net | (308) | 445 |
Loss before income taxes | (218,794) | (1,005) |
Income tax benefit | (58,371) | (266) |
Net loss | $ (160,423) | $ (739) |
(loss) Earnings per share | ||
Basic (in dollars per share) | $ (0.76) | |
Diluted (in dollars per share) | $ (0.76) | |
Dividend per share (in dollars per share) | $ 0.10 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ||
Net loss | $ (160,423) | $ (739) |
Other comprehensive income (loss): | ||
Pension adjustment and reclassification adjustment, net of taxes | 732 | 173 |
Foreign currency translation | (712) | 98 |
Comprehensive loss | $ (160,403) | $ (468) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2018 | $ 21,454 | $ 947,711 | $ (18,746) | $ 950,419 | |
Balance (in shares) at Dec. 31, 2018 | 214,544 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for stock incentive plans, net | $ 84 | $ 2,368 | 2,452 | ||
Stock issued for stock incentive plans, net (in shares) | 843 | ||||
Stock purchased and retired | $ (24) | (2,368) | (306) | (2,698) | |
Stock purchased and retired (in shares) | (245) | ||||
Net loss | (739) | (739) | |||
Dividends | (21,486) | (21,486) | |||
Pension adjustment, net of taxes | 173 | 173 | |||
Foreign currency translation | 98 | 98 | |||
Balance at Mar. 31, 2019 | $ 21,514 | 927,556 | (21,207) | 927,863 | |
Balance (in shares) at Mar. 31, 2019 | 215,142 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Adoption of accounting standard (Note 14) | 2,376 | (2,732) | (356) | ||
Balance at Dec. 31, 2019 | $ 21,443 | 832,113 | (23,223) | 830,333 | |
Balance (in shares) at Dec. 31, 2019 | 214,423 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for stock incentive plans, net | $ 100 | 1,997 | 2,097 | ||
Stock issued for stock incentive plans, net (in shares) | 1,014 | ||||
Stock purchased and retired | $ (17) | $ (1,997) | 1,222 | (792) | |
Stock purchased and retired (in shares) | (177) | ||||
Net loss | (160,423) | (160,423) | |||
Pension adjustment, net of taxes | 732 | 732 | |||
Foreign currency translation | (712) | (712) | |||
Balance at Mar. 31, 2020 | $ 21,526 | $ 672,912 | $ (23,203) | $ 671,235 | |
Balance (in shares) at Mar. 31, 2020 | 215,260 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES | ||
Net loss | $ (160,423) | $ (739) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, amortization and other non-cash charges | 39,532 | 43,062 |
Stock-based compensation expense | 2,097 | 2,452 |
Gain on disposition of assets, net | 819 | 3,504 |
Deferred income tax benefit | (33,495) | (7,446) |
Impairment and other non-cash charges | 205,437 | |
(Increase) decrease in assets: | ||
Accounts receivable | (5,664) | 4,400 |
Income taxes receivable | (10,855) | 27,219 |
Inventories | 3,286 | 5,731 |
Prepaid expenses | 1,753 | 423 |
Other current assets | 81 | 354 |
Other non-current assets | 4,980 | (2,844) |
Increase (decrease) in liabilities: | ||
Accounts payable | 17,004 | 3,666 |
Income taxes payable | 257 | (1,187) |
Accrued payroll and related expenses | 182 | 433 |
Accrued insurance expenses | (448) | 179 |
Accrued state, local and other taxes | 1,347 | 1,647 |
Other accrued expenses | (2,733) | 166 |
Pension liabilities | (5,070) | 3,145 |
Long-term accrued insurance expenses | 825 | 637 |
Other long-term liabilities | (2,435) | (648) |
Net cash provided by operating activities | 54,839 | 77,146 |
INVESTING ACTIVITIES | ||
Capital expenditures | (25,019) | (62,280) |
Proceeds from sale of assets | 3,595 | 6,070 |
Net cash used for investing activities | (21,424) | (56,210) |
FINANCING ACTIVITIES | ||
Payment of dividends | (21,486) | |
Cash paid for common stock purchased and retired | (792) | (2,698) |
Net cash used for financing activities | (792) | (24,184) |
Net increase (decrease) in cash and cash equivalents | 32,623 | (3,248) |
Cash and cash equivalents at beginning of year | 50,023 | 116,262 |
Cash and cash equivalents at end of year | 82,646 | 113,014 |
Income taxes (refund) paid, net | (12,281) | 292 |
Capital expenditures included in accounts payable | $ 7,250 | $ 17,634 |
GENERAL
GENERAL | 3 Months Ended |
Mar. 31, 2020 | |
GENERAL | |
GENERAL | 1. GENERAL The accompanying unaudited consolidated financial statements include the accounts of RPC, Inc. and its wholly-owned subsidiaries (“RPC” or the “Company”) and have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These consolidated financial statements have been prepared in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 810, “Consolidation” and Rule 3A-02(a) of Regulation S-X. In accordance with ASC Topic 810 and Rule 3A-02 (a) of Regulation S-X, the Company’s policy is to consolidate all subsidiaries and investees where it has voting control. In the opinion of management, all adjustments (all of which consisted of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020. The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2019. 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 |
RECENT ACCOUNTING STANDARDS
RECENT ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 31, 2020 | |
RECENT ACCOUNTING STANDARDS | |
RECENT ACCOUNTING STANDARDS | 2. RECENT ACCOUNTING STANDARDS The FASB issued the following applicable Accounting Standards Updates (ASU): Recently Adopted Accounting Standards: ● 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 specifically identified 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. See Note 8 “Current Expected Credit Losses” for expanded disclosures. ● 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. Recently Issued Accounting Standards Not Yet Adopted: ● 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 of 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 beginning in the first quarter of 2021 and the Company is currently evaluating the impact of adopting these provisions on its consolidated financial statements. |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2020 | |
REVENUES | |
REVENUES | 3. 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 and 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 7. 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, pipe management and pipe 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 customers state 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 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 7 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: Three months ended March 31, (in thousands) 2020 2019 Oilfield services transferred at a point in time $ — $ — Oilfield services transferred over time 243,777 334,656 Total revenues $ 243,777 $ 334,656 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: March 31, December 31, March 31, December 31, (in thousands) 2020 2019 2019 2018 Unbilled trade receivables $ 47,128 $ 52,052 $ 90,539 $ 56,408 Substantially all of the unbilled trade receivables disclosed were invoiced during the following quarter. |
IMPAIRMENT AND OTHER CHARGES
IMPAIRMENT AND OTHER CHARGES | 3 Months Ended |
Mar. 31, 2020 | |
IMPAIRMENT AND OTHER CHARGES | |
IMPAIRMENT AND OTHER CHARGES | 4. IMPAIRMENT AND OTHER CHARGES The oil and gas industry experienced an unprecedented disruption during the first quarter of 2020 due to the substantial decline in global demand for oil caused by the COVID-19 pandemic and subsequent mitigation efforts as well as macroeconomic events such as the geopolitical tensions between the Organization of Petroleum Exporting Countries (OPEC) and Russia, regarding limits on oil production. These factors resulted in a significant drop in oil prices and a substantial deterioration of the Company’s market capitalization. The combined impact of the OPEC disputes and the COVID-19 pandemic resulted in the Company’s customers canceling current and scheduled drilling and completion activities. By the end of the quarter, the domestic rig count began to decline precipitously, and oilfield operators announced significant capital expenditure reductions for the remainder of 2020. The Company determined these recent events constituted a triggering event that required a review of the recoverability of its long-lived assets and performance of an interim goodwill impairment assessment, both as of March 31, 2020. The Company used both income based and market based approaches to determine the fair value of its long-lived asset groups and its reporting units for goodwill impairment assessment. Under the income approach, the fair value for each of our asset groups and reporting units was determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. The Company used internal forecasts, updated for recent events, to estimate future cash flows and terminal value calculations, which incorporated historical and forecasted trends, including an estimate of long-term future growth rates, based on its most recent views of the outlook for each asset group and reporting unit. For the market based valuation, the Company used comparable public company multiples. The selection of comparable businesses was based on the markets in which the asset groups and reporting units operate giving consideration to risk profiles, size, geography, and diversity of products and services. Based on the concluded fair value of the asset groups, the Company measured and recorded an impairment loss that represents the amount by which the asset groups' carrying amounts exceeded their fair value. For purposes of the goodwill impairment assessment, the fair value of each reporting unit exceeded its net book value and therefore, goodwill was deemed to not be impaired. The Company recorded the following pre-tax charges during the three months ended March 31. 2020 which are reflected in “Impairment and other charges” in the consolidated statements of operations: Three months ended March 31, March, 31, (in thousands) 2020 2019 Long-lived asset impairments (1) $ 204,765 $ — Severance costs 395 — Other (2) 376 — Total $ 205,536 $ — (1). Relates solely to the Technical Services segment and primarily includes pressure pumping and coiled tubing assets. (2). Includes interest costs related to leased assets that were impaired in the third and fourth quarters of 2019 and additional costs related to abandoned assets. See Note 7 for details of impairment and other charges by segment. The full impact of the COVID-19 pandemic and OPEC disputes on the business, financial condition, results of operations or cash flows or the pace or extent of any subsequent recovery, cannot be reasonably predicted at this time. In response, the Company has reduced its workforce, instituted compensation adjustments, and lowered its expense structure and capital expenditures. The Company plans to continue to adjust its cost structure in accordance with its assessment of the operating environment. If market conditions continue to deteriorate, including crude oil prices further declining and remaining at low levels for a sustained period of time, the Company may record further asset impairments, or an impairment of the carrying value of goodwill. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 5. EARNINGS PER SHARE Basic and diluted earnings per share are computed by dividing net income or loss 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. The following table reflects the restricted shares of common stock (participating securities) outstanding and a reconciliation of outstanding weighted average shares: Three months ended March 31, (In thousands) 2020 2019 Net loss available for stockholders: $ (160,423) $ (739) Less: Adjustments for earnings attributable to participating securities — (225) Net loss income used in calculating earnings per share $ (160,423) $ (964) Weighted average shares outstanding (including participating securities) 215,007 215,041 Adjustment for participating securities (2,696) (2,550) Shares used in calculating basic and diluted earnings per share 212,311 212,491 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 6. STOCK-BASED COMPENSATION 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 March 31, 2020, there were 3,716,000 shares available for grant. Stock-based employee compensation expense was as follows for the periods indicated: Three months ended March 31, (in thousands) 2020 2019 Pre-tax expense $ 2,097 $ 2,452 After tax expense $ 1,583 $ 1,851 Restricted Stock The following is a summary of the changes in non-vested restricted shares for the three months ended March 31, 2020: Weighted Average Shares Grant-Date Fair Value Non-vested shares at December 31, 2019 2,393,673 $ 13.23 Granted 1,085,875 4.59 Vested (547,426) 16.65 Forfeited (72,287) 15.32 Non-vested shares at March 31, 2020 2,859,835 $ 7.17 The total fair value of shares vested was $2,461,000 during the three months ended March 31, 2020 and $6,934,000 during the three months ended March 31, 2019. Excess tax benefits or deficits realized from tax compensation deductions in excess of, or lower than compensation expense are recorded as either a beneficial or detrimental discrete tax adjustment. This discrete tax adjustment was a detriment of $1,631,000 for the three months ended March 31, 2020 and a detriment of $510,000 for the three months ended March 31, 2019. As of March 31, 2020, total unrecognized compensation cost related to non-vested restricted shares was $47,529,000, which is expected to be recognized over a weighted-average period of 3.8 years. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2020 | |
BUSINESS SEGMENT INFORMATION | |
BUSINESS SEGMENT INFORMATION | 7. BUSINESS SEGMENT INFORMATION 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 tools offered off the well site and are more 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: Three months ended March 31, (in thousands) 2020 2019 Technical Services: Pressure Pumping $ 96,765 $ 147,759 Downhole Tools 85,908 109,671 Coiled Tubing 16,239 20,178 Nitrogen 9,931 11,308 Snubbing 2,304 3,463 All other 16,553 21,700 Total Technical Services $ 227,700 $ 314,079 Support Services: Rental Tools $ 10,404 $ 13,936 All other 5,673 6,641 Total Support Services $ 16,077 $ 20,577 Total Revenues $ 243,777 $ 334,656 The following summarizes revenues for the United States and separately for all international locations combined for the three months ended March 31, 2020 and 2019. 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. Three months ended March 31, (in thousands) 2020 2019 United States revenues $ 227,994 $ 313,968 International revenues 15,783 20,688 Total revenues $ 243,777 $ 334,656 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 with respect RPC’s reportable segments for the three months ended March 31, 2020 and 2019 are shown in the following table: Three months ended March 31, (in thousands) 2020 2019 Revenues: Technical Services $ 227,700 $ 314,079 Support Services 16,077 20,577 Total revenues $ 243,777 $ 334,656 Operating (loss) income: Technical Services $ (12,207) $ (4,457) Support Services 1,547 3,137 Corporate Expenses (3,330) (4,345) Impairment and Other Charges (1) (205,536) — Gain on disposition of assets, net 819 3,504 Total operating loss $ (218,707) $ (2,161) Interest expense (113) (89) Interest income 334 800 Other (expense) income , net (308) 445 Loss before income taxes $ (218,794) $ (1,005) (1) Relates exclusively to Technical Services As of and for the three months ended Technical Support March 31, 2020 Services Services Corporate Total (in thousands) Depreciation and amortization $ 36,995 $ 2,228 $ 70 $ 39,293 Capital expenditures 20,338 4,681 — 25,019 Identifiable assets $ 654,354 (1) $ 70,022 $ 173,254 $ 897,630 (1) Reflects impact of impairment charges recorded during the three months ended March 31, 2020. As of and for the three months ended Technical Support March 31, 2019 Services Services Corporate Total (in thousands) Depreciation and amortization $ 39,902 $ 2,511 $ 92 $ 42,505 Capital expenditures 59,889 2,069 322 62,280 Identifiable assets $ 969,036 $ 82,111 $ 175,345 $ 1,226,492 |
CURRENT EXPECTED CREDIT LOSSES
CURRENT EXPECTED CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2020 | |
CURRENT EXPECTED CREDIT LOSSES | |
CURRENT EXPECTED CREDIT LOSSES | 8. CURRENT EXPECTED CREDIT LOSSES The Company adopted ASU No 2016-13, Current Expected Credit Losses (Topic 326) on January 1, 2020 on a prospective basis with a non-adjustment to operating retained earnings due to the immaterially of the charge. This ASU replaces the current loss model with an expected credit loss model for financial assets measured at amortized cost that includes accounts (trade) receivable. The Company is exposed to credit losses primarily from providing oilfield services. The Company’s expected credit loss allowance for accounts receivable is based on historical collection experience, current and future economic and market conditions and a review of the current status of customers’ account receivable balances. Due to the short-term nature of such receivables, the estimate of amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Additionally, specific amounts are established to record the appropriate allowance for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliations, monitoring of aging of receivables, dispute resolution monitoring, payment confirmation, consideration of specific customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible and recoveries of amounts previously written off are recorded when collected. The Company considered the current and expected future economic and market conditions in the oil and gas industry surrounding the COVID-19 pandemic and disruption caused by OPEC disputes and determined that the estimate of current expected credit losses was not significantly impacted. Estimates used to determine the allowance for current expected credit losses are based on an assessment of anticipated payments and all other historical, current and future information that is reasonably available. The following table provides a roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected for the three months ended March 31, 2020: (in thousands) 2020 Beginning balance, January 1 $ 5,181 Adoption of ASC 326 — Provision for current expected credit losses 212 Write-offs (301) Recoveries collected (net of expenses) 8 Balance as of March 31 $ 5,100 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2020 | |
INVENTORIES | |
INVENTORIES | 9. INVENTORIES Inventories of $97,267,000 at March 31, 2020 and $100,947,000 at December 31, 2019 consist of raw materials, parts and supplies. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 3 Months Ended |
Mar. 31, 2020 | |
EMPLOYEE BENEFIT PLAN | |
EMPLOYEE BENEFIT PLAN | 10. EMPLOYEE BENEFIT PLAN The following represents the net periodic benefit cost and related components of the Company’s multiple employers Retirement Income Plan: Three months ended March 31, (in thousands) 2020 2019 Interest cost $ 411 $ 490 Expected return on plan assets (395) (650) Amortization of net losses 246 230 Net periodic benefit cost $ 262 $ 70 The Company did not make a contribution to this plan during the three months ended March 31, 2020 or March 31, 2019. The Company permits selected highly compensated employees to defer a portion of their compensation into the non-qualified Supplemental Retirement Plan (“SERP”). The SERP assets are marked to market and totaled $23,491,000 as of March 31, 2020 and $28,476,000 as of December 31, 2019. The SERP assets are reported in non-current other assets on the consolidated balance sheets and changes in the fair value of these assets are reported in the consolidated statements of operations as compensation cost in selling, general and administrative expenses. Unrealized gains (losses), net related to the SERP assets were approximately as follows: Three months ended March 31, (in thousands) 2020 2019 Unrealized (losses) gains, net $ (4,987) $ 2,852 The SERP liability includes participant deferrals net of distributions and is recorded on the consolidated balance sheets 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. |
NOTES PAYABLE TO BANKS
NOTES PAYABLE TO BANKS | 3 Months Ended |
Mar. 31, 2020 | |
NOTES PAYABLE TO BANKS | |
NOTES PAYABLE TO BANKS | 11. NOTES PAYABLE TO BANKS 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) extended the Credit Agreement maturity date from January 17, 2020 to July 26, 2023, (2) eliminated 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) reduced the commitment fees payable by RPC by 7.5 basis points at each pricing level and (4) reduced the letter of credit sublimit from $50 million to $35 million. As of March 31, 2020, 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 March 31, 2020 is classified as part of non-current other assets. As of March 31, 2020, RPC had no outstanding borrowings under the revolving credit facility, and letters of credit outstanding relating to self-insurance programs and contract bids totaled $19.8 million; therefore, a total of $105.2 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: Three months ended March 31, (in thousands) 2020 2019 Interest incurred $ 113 $ 89 Interest paid 40 62 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | 12. INCOME TAXES The Company determines its periodic income tax expense or benefit based upon the current period income or loss and the annual estimated tax rate for the Company adjusted for discrete items including changes to prior period estimates. The estimated tax rate is revised, if necessary, as of the end of each successive interim period during the fiscal year to the Company’s current annual estimated tax rate. For the three months ended March 31, 2020, the income tax benefit reflects an effective tax rate of 26.7 percent compared to an effective tax rate of 26.5 percent for the comparable period in the prior year. The effective rate for the current quarter reflects a net discrete provision totaling $22.8 million related primarily to revaluing certain deferred tax assets and liabilities expected to be recognized in 2020, offset by the beneficial revaluation of the 2019 net operating loss which can be carried back to prior years. The Coronavirus Aid, Relief and Economic Security (CARES) Act, enacted into law on March 27, 2020, provides the opportunity for a five-year carryback of net operating losses for the tax years ended 2018, 2019 and 2020. The Company expects to realize the benefit of their tax year 2019 net operating loss carryback to tax year 2014 where the tax rate was 31, 2019 that are expected to be recognized in tax year 2020. The expected reversal of these deferred tax assets and liabilities are estimates based on available information at this time and the Company expects to refine these estimates in subsequent quarters as better information becomes available. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE DISCLOSURES | |
FAIR VALUE DISCLOSURES | 13. 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 in the balance sheets as of March 31, 2020 and December 31, 2019: Fair Value Measurements at March 31, 2020 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: Equity securities $ 56 $ 56 $ — $ — Investments measured at net asset value $ 23,491 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: Equity securities $ 237 $ 237 $ — $ — Investments measured at net asset value $ 28,476 The Company determines the fair value of equity securities that have a readily determinable fair value 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 comprised of the SERP assets, as described in Note 10, 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 period ended March 31, 2020, 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 March 31, 2020 and December 31, 2019. Borrowings under our revolving credit facility are typically based on the quote from the lender (level 2 inputs), which approximates fair value, and bear variable interest rates as described in Note 11. 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 it will elect this option for financial instruments acquired in the future. The Company's real estate classified as held for sale has been stated at fair value less costs. The fair value measurement was based on observable market data that includes price per square foot involving comparable properties in similar locations. In addition, the Company recorded an impairment of its long-lived assets held and used in certain service lines, measured as the excess of the carrying amount over fair value. The fair value measurement of long-lived assets held and used was determined using a combination of income-based as well as market-based valuation methodologies, which incorporates unobservable inputs, including discounted expected cash flows over the remaining estimated useful life of the assets, thereby classifying the fair value as a Level 3 measurement within the fair value hierarchy. The non-recurring fair value measurement of both these asset categories are reflected in the table below: Quoted prices in active markets for identical Significant other Significant (in thousands Total assets observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) Assets: Assets held for sale $ 5,385 $ — $ 5,385 $ — Long-lived assets held and used $ 133,101 $ — $ — $ 133,101 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 3 Months Ended |
Mar. 31, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 14. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Accumulated other comprehensive (loss) income consists of the following (in thousands): Foreign Pension Currency Adjustment Translation Total Balance at December 31, 2019 $ (20,908) $ (2,315) $ (23,223) Change during the period: Before-tax amount — (712) (712) Reclassification adjustment, net of taxes: Amortization of net loss (1) 732 — 732 Total activity for the period 732 (712) 20 Balance at March 31, 2020 $ (20,176) $ (3,027) $ (23,203) (1) Reported as part of selling, general and administrative expenses. Foreign Pension Currency Adjustment Translation Total Balance at December 31, 2018 $ (15,878) $ (2,868) $ (18,746) Change during the period: Before-tax amount — 98 98 Adoption of accounting standard (2,732) — (2,732) Reclassification adjustment, net of taxes: Amortization of net loss (1) 173 — 173 Total activity for the period (2,559) 98 (2,461) Balance at March 31, 2019 $ (18,437) $ (2,770) $ (21,207) (1) Reported as part of selling, general and administrative expenses. As of January 1, 2019, the balance related to the cumulative unrealized gain on marketable securities included in accumulated other comprehensive income was reclassed upon adoption of ASU 2016-1, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In the first quarter of 2019, the Company adopted the provisions of ASU 2019-02, which provides an option to reclassify stranded tax effects within accumulated other comprehensive income/(loss) (AOCI) to retained earnings due to the change in the U.S. federal tax rate as a result of the Tax Cuts and Jobs Act, which took effect in January 2018. Accordingly, the Company elected to reclassify approximately $2.7 million of stranded tax effects related to its pension plan from AOCI to retained earnings. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
LEASES | |
LEASES | 15. LEASES The Company recognizes leases with duration greater than 12 months on the balance sheet by recording the related Right-Of-Use (ROU) asset and liability at the present value of lease payments over the term. Leases that include rental escalation clauses or renewal options 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 corresponding 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 to not 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 and its sublease portfolio consists solely of operating leases. As of March 31, 2020, the Company had no operating leases that had not yet commenced. During the quarter ended March 31, 2020, 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) Classification on the Consolidated Balance Sheet March 31, 2020 Assets: Operating lease assets Operating lease right-of-use assets $ 33,250 Liabilities: Current – operating leases Current portion of operating lease liabilities $ 10,215 Non-current – operating leases Long-term operating lease liabilities 27,529 Total lease liabilities $ 37,744 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 as disclosed below: Three months ended Three months ended (in thousands) March 31, 2020 March 31, 2019 Operating lease cost $ 2,549 $ 3,974 Short-term lease cost 1,733 1,774 Variable lease cost 141 26 Sublease income (18) (18) Total lease cost $ 4,405 $ 5,756 Other information: Cash paid for amounts included in the measurement of lease liabilities – operating leases (in thousands) $ 2,230 ROU assets obtained in exchange for operating lease liabilities (in thousands) $ 1,630 Weighted average remaining lease term – operating leases 5.3 years Weighted average discount rate – operating leases 3.38 % Operating Maturity of lease liabilities (in thousands) Leases 2020 (excluding the three months ended March 31, 2020) $ 8,664 2021 9,564 2022 6,579 2023 4,058 2024 2,951 Thereafter 8,566 Total lease payments 40,382 Less: Amounts representing interest (2,638) Present value of lease liabilities $ 37,744 |
RECENT ACCOUNTING STANDARDS (Po
RECENT ACCOUNTING STANDARDS (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
RECENT ACCOUNTING STANDARDS. | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards: ● 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 specifically identified 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. See Note 8 “Current Expected Credit Losses” for expanded disclosures. ● 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. Recently Issued Accounting Standards Not Yet Adopted: ● 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 of 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 beginning in the first quarter of 2021 and the Company is currently evaluating the impact of adopting these provisions on its consolidated financial statements. |
Revenues | 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. |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
REVENUES | |
Schedule of disaggregation of revenues | Three months ended March 31, (in thousands) 2020 2019 Oilfield services transferred at a point in time $ — $ — Oilfield services transferred over time 243,777 334,656 Total revenues $ 243,777 $ 334,656 |
Schedule of contract assets included in accounts receivable | March 31, December 31, March 31, December 31, (in thousands) 2020 2019 2019 2018 Unbilled trade receivables $ 47,128 $ 52,052 $ 90,539 $ 56,408 |
IMPAIRMENT AND OTHER CHARGES (T
IMPAIRMENT AND OTHER CHARGES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
IMPAIRMENT AND OTHER CHARGES | |
Schedule of impairment and other charges | Three months ended March 31, March, 31, (in thousands) 2020 2019 Long-lived asset impairments (1) $ 204,765 $ — Severance costs 395 — Other (2) 376 — Total $ 205,536 $ — (1). Relates solely to the Technical Services segment and primarily includes pressure pumping and coiled tubing assets. (2). Includes interest costs related to leased assets that were impaired in the third and fourth quarters of 2019 and additional costs related to abandoned assets. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
EARNINGS PER SHARE | |
Schedule of reconciliation of weighted average shares outstanding | Three months ended March 31, (In thousands) 2020 2019 Net loss available for stockholders: $ (160,423) $ (739) Less: Adjustments for earnings attributable to participating securities — (225) Net loss income used in calculating earnings per share $ (160,423) $ (964) Weighted average shares outstanding (including participating securities) 215,007 215,041 Adjustment for participating securities (2,696) (2,550) Shares used in calculating basic and diluted earnings per share 212,311 212,491 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
STOCK-BASED COMPENSATION | |
Schedule of stock-based employee compensation expense | Three months ended March 31, (in thousands) 2020 2019 Pre-tax expense $ 2,097 $ 2,452 After tax expense $ 1,583 $ 1,851 |
Schedule of summary of the changes in non-vested restricted shares | Weighted Average Shares Grant-Date Fair Value Non-vested shares at December 31, 2019 2,393,673 $ 13.23 Granted 1,085,875 4.59 Vested (547,426) 16.65 Forfeited (72,287) 15.32 Non-vested shares at March 31, 2020 2,859,835 $ 7.17 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
BUSINESS SEGMENT INFORMATION | |
Schedule of operating segment revenues by major service lines | Three months ended March 31, (in thousands) 2020 2019 Technical Services: Pressure Pumping $ 96,765 $ 147,759 Downhole Tools 85,908 109,671 Coiled Tubing 16,239 20,178 Nitrogen 9,931 11,308 Snubbing 2,304 3,463 All other 16,553 21,700 Total Technical Services $ 227,700 $ 314,079 Support Services: Rental Tools $ 10,404 $ 13,936 All other 5,673 6,641 Total Support Services $ 16,077 $ 20,577 Total Revenues $ 243,777 $ 334,656 |
Schedule of revenue by geographical location | Three months ended March 31, (in thousands) 2020 2019 United States revenues $ 227,994 $ 313,968 International revenues 15,783 20,688 Total revenues $ 243,777 $ 334,656 |
Schedule of segment reporting information by segment | Three months ended March 31, (in thousands) 2020 2019 Revenues: Technical Services $ 227,700 $ 314,079 Support Services 16,077 20,577 Total revenues $ 243,777 $ 334,656 Operating (loss) income: Technical Services $ (12,207) $ (4,457) Support Services 1,547 3,137 Corporate Expenses (3,330) (4,345) Impairment and Other Charges (1) (205,536) — Gain on disposition of assets, net 819 3,504 Total operating loss $ (218,707) $ (2,161) Interest expense (113) (89) Interest income 334 800 Other (expense) income , net (308) 445 Loss before income taxes $ (218,794) $ (1,005) (1) Relates exclusively to Technical Services As of and for the three months ended Technical Support March 31, 2020 Services Services Corporate Total (in thousands) Depreciation and amortization $ 36,995 $ 2,228 $ 70 $ 39,293 Capital expenditures 20,338 4,681 — 25,019 Identifiable assets $ 654,354 (1) $ 70,022 $ 173,254 $ 897,630 (1) Reflects impact of impairment charges recorded during the three months ended March 31, 2020. As of and for the three months ended Technical Support March 31, 2019 Services Services Corporate Total (in thousands) Depreciation and amortization $ 39,902 $ 2,511 $ 92 $ 42,505 Capital expenditures 59,889 2,069 322 62,280 Identifiable assets $ 969,036 $ 82,111 $ 175,345 $ 1,226,492 |
CURRENT EXPECTED CREDIT LOSSES
CURRENT EXPECTED CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
CURRENT EXPECTED CREDIT LOSSES | |
Schedule of roll-forward of the allowance for credit losses that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected | (in thousands) 2020 Beginning balance, January 1 $ 5,181 Adoption of ASC 326 — Provision for current expected credit losses 212 Write-offs (301) Recoveries collected (net of expenses) 8 Balance as of March 31 $ 5,100 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
EMPLOYEE BENEFIT PLAN | |
Schedule of net periodic benefit cost | Three months ended March 31, (in thousands) 2020 2019 Interest cost $ 411 $ 490 Expected return on plan assets (395) (650) Amortization of net losses 246 230 Net periodic benefit cost $ 262 $ 70 |
Schedule of trading gains (losses) related to SERP assets | Three months ended March 31, (in thousands) 2020 2019 Unrealized (losses) gains, net $ (4,987) $ 2,852 |
NOTES PAYABLE TO BANKS (Tables)
NOTES PAYABLE TO BANKS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
NOTES PAYABLE TO BANKS | |
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 | Three months ended March 31, (in thousands) 2020 2019 Interest incurred $ 113 $ 89 Interest paid 40 62 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE DISCLOSURES | |
Schedule of valuation of financial instruments measured at fair value on a recurring basis | Fair Value Measurements at March 31, 2020 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: Equity securities $ 56 $ 56 $ — $ — Investments measured at net asset value $ 23,491 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: Equity securities $ 237 $ 237 $ — $ — Investments measured at net asset value $ 28,476 |
Schedule of valuation of financial instruments measured at fair value on a non-recurring basis | Quoted prices in active markets for identical Significant other Significant (in thousands Total assets observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) Assets: Assets held for sale $ 5,385 $ — $ 5,385 $ — Long-lived assets held and used $ 133,101 $ — $ — $ 133,101 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LEASES | |
Schedule of operating leased assets and liabilities | (in thousands) Classification on the Consolidated Balance Sheet March 31, 2020 Assets: Operating lease assets Operating lease right-of-use assets $ 33,250 Liabilities: Current – operating leases Current portion of operating lease liabilities $ 10,215 Non-current – operating leases Long-term operating lease liabilities 27,529 Total lease liabilities $ 37,744 |
Schedule of operating lease expense | Three months ended Three months ended (in thousands) March 31, 2020 March 31, 2019 Operating lease cost $ 2,549 $ 3,974 Short-term lease cost 1,733 1,774 Variable lease cost 141 26 Sublease income (18) (18) Total lease cost $ 4,405 $ 5,756 |
Schedule of lease cost | Other information: Cash paid for amounts included in the measurement of lease liabilities – operating leases (in thousands) $ 2,230 ROU assets obtained in exchange for operating lease liabilities (in thousands) $ 1,630 Weighted average remaining lease term – operating leases 5.3 years Weighted average discount rate – operating leases 3.38 % |
Schedule of maturity of lease liabilities | Operating Maturity of lease liabilities (in thousands) Leases 2020 (excluding the three months ended March 31, 2020) $ 8,664 2021 9,564 2022 6,579 2023 4,058 2024 2,951 Thereafter 8,566 Total lease payments 40,382 Less: Amounts representing interest (2,638) Present value of lease liabilities $ 37,744 |
GENERAL - (Details)
GENERAL - (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Chairman of the Board and Director | |
Ownership control | |
Voting power (in percent) | 50.00% |
REVENUES - Payment Terms (Detai
REVENUES - Payment Terms (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Minimum | |
Revenue satisfaction period | 30 days |
Maximum | |
Revenue satisfaction period | 60 days |
REVENUES - Disaggregation of re
REVENUES - Disaggregation of revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of revenue: | ||
Total revenues | $ 243,777 | $ 334,656 |
Oilfield services transferred at a point in time | ||
Disaggregation of revenue: | ||
Total revenues | ||
Oilfield services transferred over time | ||
Disaggregation of revenue: | ||
Total revenues | $ 243,777 | $ 334,656 |
REVENUES - Contract balances (D
REVENUES - Contract balances (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts receivable | ||||
Disaggregation of revenue: | ||||
Unbilled trade receivables | $ 47,128 | $ 52,052 | $ 90,539 | $ 56,408 |
IMPAIRMENT AND OTHER CHARGES (D
IMPAIRMENT AND OTHER CHARGES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
IMPAIRMENT AND OTHER CHARGES | ||
Long-lived asset impairments | $ 204,765 | |
Severance costs | 395 | |
Other | 376 | |
Total | $ 205,536 |
EARNINGS PER SHARE - (Details)
EARNINGS PER SHARE - (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
EARNINGS PER SHARE | ||
Net loss available for stockholders | $ (160,423) | $ (739) |
Less: Adjustments for earnings attributable to participating securities | (225) | |
Net loss income used in calculating per share | $ (160,423) | $ (964) |
Weighted average shares outstanding (including participating securities) | 215,007 | 215,041 |
Adjustment for participating securities | (2,696) | (2,550) |
Shares used in calculating basic and diluted earnings per share | 212,311 | 212,491 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - shares | 1 Months Ended | |
Apr. 30, 2014 | Mar. 31, 2020 | |
STOCK-BASED COMPENSATION | ||
Stock authorized (in shares) | 8,000,000 | |
Term (in years) | 10 years | |
Available for grant (in shares) | 3,716,000 |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
STOCK-BASED COMPENSATION | ||
Pre-tax expense | $ 2,097 | $ 2,452 |
After tax expense | $ 1,583 | $ 1,851 |
STOCK-BASED COMPENSATION - Non-
STOCK-BASED COMPENSATION - Non-vested RSU's (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Shares | |
Non-vested shares at December 31, 2019 | shares | 2,393,673 |
Granted | shares | 1,085,875 |
Vested | shares | (547,426) |
Forfeited | shares | (72,287) |
Non-vested shares at March 31, 2020 | shares | 2,859,835 |
Weighted Average Grant-Date Fair Value | |
Non-vested shares at December 31, 2019 | $ / shares | $ 13.23 |
Granted | $ / shares | 4.59 |
Vested | $ / shares | 16.65 |
Forfeited | $ / shares | 15.32 |
Non-vested shares at March 31, 2020 | $ / shares | $ 7.17 |
STOCK-BASED COMPENSATION - Othe
STOCK-BASED COMPENSATION - Other Information (Details) - Restricted Stock - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock-based compensation | ||
Fair value, shares vested | $ 2,461,000 | $ 6,934,000 |
Tax (expense) benefits for compensation tax deductions in excess of compensation expense | (1,631,000) | $ (510,000) |
Unrecognized compensation cost related to non-vested restricted shares | $ 47,529,000 | |
Unrecognized compensation cost related to non-vested restricted shares recognized period | 3 years 9 months 18 days |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment information: | ||
Total revenues | $ 243,777 | $ 334,656 |
Technical Services | ||
Segment information: | ||
Total revenues | 227,700 | 314,079 |
Technical Services | Pressure Pumping | ||
Segment information: | ||
Total revenues | 96,765 | 147,759 |
Technical Services | Downhole Tools | ||
Segment information: | ||
Total revenues | 85,908 | 109,671 |
Technical Services | Coiled Tubing | ||
Segment information: | ||
Total revenues | 16,239 | 20,178 |
Technical Services | Nitrogen | ||
Segment information: | ||
Total revenues | 9,931 | 11,308 |
Technical Services | Snubbing | ||
Segment information: | ||
Total revenues | 2,304 | 3,463 |
Technical Services | All other | ||
Segment information: | ||
Total revenues | 16,553 | 21,700 |
Support Services | ||
Segment information: | ||
Total revenues | 16,077 | 20,577 |
Support Services | Rental Tools | ||
Segment information: | ||
Total revenues | 10,404 | 13,936 |
Support Services | All other | ||
Segment information: | ||
Total revenues | $ 5,673 | $ 6,641 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Geographic (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment information: | ||
Total revenues | $ 243,777 | $ 334,656 |
United States | ||
Segment information: | ||
Total revenues | 227,994 | 313,968 |
International | ||
Segment information: | ||
Total revenues | $ 15,783 | $ 20,688 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenues: | |||
Revenues | $ 243,777 | $ 334,656 | |
Operating (loss) income: | |||
Operating loss | (218,707) | (2,161) | |
Capital expenditures | 25,019 | 62,280 | |
Depreciation and amortization | 39,293 | 42,505 | |
Assets | 869,132 | $ 1,053,218 | |
Identifiable assets | 897,630 | 1,226,492 | |
Impairment and Other Charges | 205,536 | ||
Gain (Loss) On Disposition Of Assets | 819 | 3,504 | |
Interest expense | 113 | 89 | |
Interest income | 334 | 800 | |
Other (expense) income , net | (308) | 445 | |
Loss before income taxes | (218,794) | (1,005) | |
Technical Services | |||
Revenues: | |||
Revenues | 227,700 | 314,079 | |
Operating (loss) income: | |||
Operating loss | (12,207) | (4,457) | |
Capital expenditures | 20,338 | 59,889 | |
Depreciation and amortization | 36,995 | 39,902 | |
Identifiable assets | 654,354 | 969,036 | |
Support Services | |||
Revenues: | |||
Revenues | 16,077 | 20,577 | |
Operating (loss) income: | |||
Operating loss | 1,547 | 3,137 | |
Capital expenditures | 4,681 | 2,069 | |
Depreciation and amortization | 2,228 | 2,511 | |
Identifiable assets | 70,022 | 82,111 | |
Corporate | |||
Operating (loss) income: | |||
Operating loss | (3,330) | (4,345) | |
Capital expenditures | 322 | ||
Depreciation and amortization | 70 | 92 | |
Identifiable assets | $ 173,254 | $ 175,345 |
CURRENT EXPECTED CREDIT LOSSE_2
CURRENT EXPECTED CREDIT LOSSES (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Allowance for doubtful accounts rollforward | |
Beginning balance | $ 5,181 |
Provision for current expected credit losses | 212 |
Write-offs | (301) |
Recoveries collected (net of expenses) | 8 |
Ending balance | 5,100 |
ASU 2016-13 Financial Instruments-Credit Losses (Topic 326) | Restatement Adjustment | |
Allowance for doubtful accounts rollforward | |
Ending balance |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
INVENTORIES | ||
Raw materials, parts and supplies of inventories | $ 97,267 | $ 100,947 |
EMPLOYEE BENEFIT PLAN - Compone
EMPLOYEE BENEFIT PLAN - Components of net periodic benefit cost (Details) - Multiple Employers Retirement Income Plan - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 411 | $ 490 |
Expected return on plan assets | (395) | (650) |
Amortization of net losses | 246 | 230 |
Net periodic benefit cost | $ 262 | $ 70 |
EMPLOYEE BENEFIT PLAN - SERP (D
EMPLOYEE BENEFIT PLAN - SERP (Details) - Supplemental Retirement Plan ('SERP') - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 23,491,000 | $ 28,476,000 | |
Unrealized (losses) gains, net | $ (4,987,000) | $ 2,852,000 |
NOTES PAYABLE TO BANKS - Intere
NOTES PAYABLE TO BANKS - Interest incurred (Details) - Revolving credit facility - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revolving credit facility | ||
Interest incurred | $ 113 | $ 89 |
Interest paid | $ 40 | $ 62 |
NOTES PAYABLE TO BANKS - Credit
NOTES PAYABLE TO BANKS - Credit Facility (Details) $ in Thousands | Oct. 26, 2018USD ($) | Mar. 31, 2020USD ($)Lender | Dec. 31, 2018USD ($) |
Amendment | |||
Revolving credit facility | |||
Minimum EBITDA | $ 50,000 | ||
Maximum consolidated leverage ratio | 2.50% | ||
Minimum debt service coverage ratio | 2.00% | ||
Minimum net worth covenant | $ 600,000 | ||
Revolving credit facility | |||
Revolving credit facility | |||
Number of additional credit lenders | Lender | 5 | ||
Maximum borrowing capacity | $ 125,000 | ||
Origination and other costs | 3,300 | ||
Unamortized origination and other costs | 200 | ||
Outstanding debt | 0 | ||
Available credit facility | $ 105,200 | ||
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 | Amendment | |||
Revolving credit facility | |||
Reduction in commitment fees (in points) | 7.50% | ||
Revolving credit facility | Amendment | Eurodollar Rate | LIBOR | Minimum | |||
Revolving credit facility | |||
Basis points added | 1.125% | ||
Revolving credit facility | Amendment | Eurodollar Rate | LIBOR | Maximum | |||
Revolving credit facility | |||
Basis points added | 2.125% | ||
Revolving credit facility | Amendment | Base Rate | Minimum | |||
Revolving credit facility | |||
Basis points added | 0.125% | ||
Revolving credit facility | Amendment | Base Rate | Maximum | |||
Revolving credit facility | |||
Basis points added | 1.125% | ||
Revolving credit facility | Amendment | Base Rate | Federal Funds Rate | |||
Revolving credit facility | |||
Basis points added | 0.50% | ||
Revolving credit facility | Amendment | Base Rate | Eurodollar Rate | |||
Revolving credit facility | |||
Basis points added | 1.00% | ||
Revolving credit facility | Letter of credit | |||
Revolving credit facility | |||
Maximum borrowing capacity | $ 35,000 | $ 50,000 | |
Outstanding debt | 19,800 | ||
Revolving credit facility | Letter of credit | Amendment | |||
Revolving credit facility | |||
Maximum borrowing capacity | $ 35,000 | ||
Revolving credit facility | Swingline | |||
Revolving credit facility | |||
Maximum borrowing capacity | $ 35,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2014 | |
Income tax carryforwards | |||
Effective tax rate (as a percent) | 26.70% | 26.50% | |
Statutory federal income tax rate | 35.00% | ||
Discrete tax benefit adjustment | $ 22.8 | ||
At tax rate of 21% | |||
Income tax carryforwards | |||
Discrete tax benefit adjustment | $ 13.1 | ||
Forecast | |||
Income tax carryforwards | |||
Discrete tax benefit adjustment | $ 35.9 |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Equity securities | $ 56 | $ 237 |
Investments measured at net asset value | 23,491 | 28,476 |
Level 1 | ||
Assets: | ||
Equity securities | 56 | 237 |
Level 2 | ||
Assets: | ||
Equity securities | ||
Investments measured at net asset value | ||
Level 3 | ||
Assets: | ||
Equity securities |
FAIR VALUE DISCLOSURES - Fina_2
FAIR VALUE DISCLOSURES - Financial instruments measured at fair value on non-recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Assets held for sale | $ 5,385 | $ 5,385 |
Fair value on a non-recurring basis | ||
Assets: | ||
Assets held for sale | 5,385 | |
Long-lived assets held and used | 133,101 | |
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: | ||
Long-lived assets held and used | $ 133,101 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI rollforward | ||
Balance | $ (23,223) | $ (18,746) |
Before-tax amount | (712) | 98 |
Adoption of accounting standard | (2,732) | |
Amortization of net loss | 732 | 173 |
Total activity in period | 20 | (2,461) |
Balance | (23,203) | (21,207) |
Pension Adjustment | ||
AOCI rollforward | ||
Balance | (20,908) | (15,878) |
Before-tax amount | ||
Adoption of accounting standard | (2,732) | |
Amortization of net loss | 732 | 173 |
Total activity in period | 732 | (2,559) |
Balance | (20,176) | (18,437) |
Foreign Currency Translation | ||
AOCI rollforward | ||
Balance | (2,315) | (2,868) |
Before-tax amount | (712) | 98 |
Amortization of net loss | ||
Total activity in period | (712) | 98 |
Balance | $ (3,027) | $ (2,770) |
LEASES - Assets and liabilities
LEASES - Assets and liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Operating lease right-of-use assets | $ 33,250 | $ 33,850 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating lease right-of-use assets | |
Liabilities | ||
Current portion of operating lease liabilities | $ 10,215 | 10,625 |
Long-term operating lease liabilities | $ 27,529 | $ 28,378 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term operating lease liabilities | |
Present value of lease liabilities | $ 37,744 |
LEASES- Components of lease exp
LEASES- Components of lease expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
LEASES | ||
Operating lease cost | $ 2,549 | $ 3,974 |
Short-term lease cost | 1,733 | 1,774 |
Variable lease cost | 141 | 26 |
Sublease income | (18) | (18) |
Total lease cost | $ 4,405 | $ 5,756 |
LEASES- Other information (Deta
LEASES- Other information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
LEASES | |
Cash paid for amounts included in the measurement of lease liabilities - operating leases (in thousands) | $ 2,230 |
ROU assets obtained in exchange for operating lease liabilities (in thousands) | $ 1,630 |
Weighted average remaining lease term - operating leases | 5 years 3 months 18 days |
Weighted average discount rate - operating leases | 3.38% |
LEASES - Future minimum lease p
LEASES - Future minimum lease payments (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity | |
2020 (excluding the three months ended March 31, 2020) | $ 8,664 |
2021 | 9,564 |
2022 | 6,579 |
2023 | 4,058 |
2024 | 2,951 |
Thereafter | 8,566 |
Total lease payments | 40,382 |
Less: Amounts representing interest | (2,638) |
Present value of lease liabilities | $ 37,744 |