Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 30, 2022 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
Trading Symbol | RES | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 564,113,681 | ||
Entity Common Stock, Shares Outstanding | 217,535,918 | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Location | Atlanta, Georgia | ||
Auditor Firm ID | 248 | ||
Entity Central Index Key | 0000742278 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 126,424 | $ 82,433 |
Accounts receivable, net of allowance for credit losses of $7,078 in 2022 and $6,765 in 2021 | 416,568 | 258,635 |
Inventories | 97,107 | 78,983 |
Income taxes receivable | 42,403 | 58,504 |
Prepaid expenses | 17,753 | 9,773 |
Other current assets | 3,086 | 3,682 |
Total current assets | 703,341 | 492,010 |
Property, plant and equipment, less accumulated depreciation of $775,334 in 2022 and $763,304 in 2021 | 333,093 | 254,408 |
Operating lease right-of-use assets | 28,864 | 24,572 |
Finance lease right-of-use assets | 20,327 | |
Goodwill | 32,150 | 32,150 |
Other assets | 31,565 | 40,898 |
Total assets | 1,129,013 | 864,365 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 115,213 | 74,404 |
Accrued payroll and related expenses | 33,161 | 15,350 |
Accrued insurance expenses | 3,232 | 10,129 |
Accrued state, local and other taxes | 4,296 | 1,905 |
Income taxes payable | 499 | 656 |
Pension liabilities | 9,610 | |
Current portion of operating lease liabilities | 10,728 | 6,387 |
Current portion of finance lease liabilities | 20,194 | |
Other accrued expenses | 1,864 | 1,824 |
Total current liabilities | 178,603 | 130,849 |
Long-term accrued insurance expenses | 7,149 | 11,770 |
Long-term pension and retirement plans liabilities | 23,106 | 35,376 |
Deferred income taxes | 37,473 | 17,749 |
Long-term operating lease liabilities | 19,517 | 19,719 |
Other long-term liabilities | 5,430 | 7,111 |
Total liabilities | 271,278 | 222,574 |
Commitments and contingencies (Note 9) | ||
STOCKHOLDERS' 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, 216,609,191 and 215,628,716 shares issued and outstanding in 2022 and 2021, respectively | 21,661 | 21,563 |
Capital in excess of par value | 0 | 0 |
Retained earnings | 856,013 | 640,936 |
Accumulated other comprehensive loss | (19,939) | (20,708) |
Total stockholders' equity | 857,735 | 641,791 |
Total liabilities and stockholders' equity | $ 1,129,013 | $ 864,365 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for credit losses | $ 7,078 | $ 6,765 |
Accumulated depreciation | $ 775,334 | $ 763,304 |
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) | 216,609,191 | 215,628,716 |
Common stock, shares outstanding (in shares) | 216,609,191 | 215,628,716 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Revenues | $ 1,601,762 | $ 864,929 | $ 598,302 |
Cost of revenues | 1,088,115 | 663,262 | 480,739 |
Selling, general and administrative expenses | 148,573 | 123,572 | 123,698 |
Pension settlement, impairment and other charges | 2,921 | 217,493 | |
Depreciation and amortization | 83,017 | 72,686 | 95,530 |
Gain on disposition of assets, net | (8,804) | (10,882) | (9,523) |
Operating income (loss) | 287,940 | 16,291 | (309,635) |
Interest expense | (614) | (1,929) | (373) |
Interest income | 1,171 | 59 | 496 |
Other income, net | 1,135 | 2,027 | 81 |
Income (loss) before income taxes | 289,632 | 16,448 | (309,431) |
Income tax provision (benefit) | 71,269 | 9,231 | (97,239) |
Net income (loss) | $ 218,363 | $ 7,217 | $ (212,192) |
Earnings (loss) per share | |||
Basic (in dollars per share) | $ 1.01 | $ 0.03 | $ (1) |
Diluted (in dollars per share) | 1.01 | $ 0.03 | $ (1) |
Dividends paid per share (in dollars per share) | $ 0.04 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) | $ 218,363 | $ 7,217 | $ (212,192) |
Other comprehensive income: | |||
Pension adjustment and reclassification adjustment, net of taxes | 764 | (2,890) | 5,727 |
Foreign currency translation | 5 | (112) | (210) |
Comprehensive income (loss) | $ 219,132 | $ 4,215 | $ (206,675) |
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 (Loss) Income | Total |
Balance at Dec. 31, 2019 | $ 21,443 | $ 832,113 | $ (23,223) | $ 830,333 | |
Balance (in shares) at Dec. 31, 2019 | 214,423,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for stock incentive plans, net | $ 71 | $ 8,664 | 8,735 | ||
Stock issued for stock incentive plans, net (in shares) | 716,000 | ||||
Stock purchased and retired | $ (19) | (8,664) | 7,857 | (826) | |
Stock purchased and retired (in shares) | (188,000) | ||||
Net income (loss) | (212,192) | (212,192) | |||
Pension adjustment, net of taxes | 5,727 | 5,727 | |||
Foreign currency translation | (210) | (210) | |||
Balance at Dec. 31, 2020 | $ 21,495 | 627,778 | (17,706) | 631,567 | |
Balance (in shares) at Dec. 31, 2020 | 214,951,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for stock incentive plans, net | $ 82 | 6,494 | 6,576 | ||
Stock issued for stock incentive plans, net (in shares) | 819,000 | ||||
Stock purchased and retired | $ (14) | (6,494) | 5,941 | (567) | |
Stock purchased and retired (in shares) | (141,000) | ||||
Net income (loss) | 7,217 | 7,217 | |||
Pension adjustment, net of taxes | (2,890) | (2,890) | |||
Foreign currency translation | (112) | (112) | |||
Balance at Dec. 31, 2021 | $ 21,563 | 640,936 | (20,708) | $ 641,791 | |
Balance (in shares) at Dec. 31, 2021 | 215,629,000 | 215,628,716 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Stock issued for stock incentive plans, net | $ 114 | 6,261 | $ 6,375 | ||
Stock issued for stock incentive plans, net (in shares) | 1,139,000 | ||||
Stock purchased and retired | $ (16) | $ (6,261) | 5,359 | (918) | |
Stock purchased and retired (in shares) | (159,000) | ||||
Net income (loss) | 218,363 | 218,363 | |||
Pension adjustment, net of taxes | 764 | 764 | |||
Foreign currency translation | 5 | 5 | |||
Dividends declared | (8,645) | (8,645) | |||
Balance at Dec. 31, 2022 | $ 21,661 | $ 856,013 | $ (19,939) | $ 857,735 | |
Balance (in shares) at Dec. 31, 2022 | 216,609,000 | 216,609,191 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | |||
Net income (loss) | $ 218,363 | $ 7,217 | $ (212,192) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation, amortization and other non-cash charges | 83,664 | 72,506 | 95,309 |
Stock-based compensation expense | 6,375 | 6,576 | 8,735 |
Gain on disposition of assets, net | (8,804) | (10,882) | (9,523) |
Gain due to benefit plan financing arrangement | (891) | ||
Deferred income tax provision (benefit) | 19,496 | 4,888 | (25,845) |
Pension settlement, impairment and other non-cash charges | 2,921 | 211,043 | |
(Increase) decrease in assets: | |||
Accounts receivable | (157,894) | (91,082) | 80,769 |
Income taxes receivable | 16,101 | 24,439 | (58,798) |
Inventories | (18,413) | 3,951 | 18,076 |
Prepaid expenses | (7,980) | (650) | 1,337 |
Other current assets | 406 | 90 | 227 |
Other non-current assets | 9,306 | (1,170) | (3,819) |
Increase (decrease) in liabilities: | |||
Accounts payable | 35,759 | 32,900 | (9,130) |
Income taxes payable | (157) | (459) | (419) |
Accrued payroll and related expenses | 17,864 | (3,080) | (1,219) |
Accrued insurance expenses | (6,897) | 4,640 | (2,051) |
Accrued state, local and other taxes | 2,391 | (883) | 361 |
Other accrued expenses | (3,703) | (4,061) | (6,541) |
Pension and retirement plans liabilities | (4,589) | (1,065) | (3,249) |
Long-term accrued insurance expenses | (4,621) | (52) | (2,218) |
Other long-term liabilities | 1,698 | 3,896 | (2,004) |
Net cash provided by operating activities | 201,286 | 47,719 | 77,958 |
INVESTING ACTIVITIES | |||
Capital expenditures | (139,552) | (67,645) | (65,065) |
Proceeds from sale of assets | 15,837 | 20,014 | 22,406 |
Proceeds from benefit plan financing arrangement | 1,566 | ||
Re-investment in benefit plan financing arrangement | (1,566) | ||
Net cash used for investing activities | (123,715) | (47,631) | (42,659) |
FINANCING ACTIVITIES | |||
Payment of dividends | (8,645) | ||
Cash paid for common stock purchased and retired | (918) | (567) | (826) |
Cash paid for finance lease | (24,017) | (1,584) | |
Net cash used for financing activities | (33,580) | (2,151) | (826) |
Net increase (decrease) in cash and cash equivalents | 43,991 | (2,063) | 34,473 |
Cash and cash equivalents at beginning of period | 82,433 | 84,496 | 50,023 |
Cash and cash equivalents at end of period | 126,424 | 82,433 | 84,496 |
Supplemental cash flows disclosure: | |||
Income taxes payment (refund), net | 35,809 | (20,903) | (10,051) |
Interest paid | 170 | 166 | 160 |
Supplemental disclosure of noncash investing activities: | |||
Capital expenditures included in accounts payable | $ 9,334 | $ 4,282 | $ 3,859 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, 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 January 24, 2023, the Board of Directors declared a $0.04 per share cash dividend payable March 10, 2023 to stockholders of record at the close of business on February 10, 2023 . 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 credit loss allowance, income taxes, goodwill impairment, 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. One of our customers, a private exploration and production company, accounted for approximately 11 percent of the Company’s revenues in 2022 with no other customers exceeding 10 percent of revenues in 2022. There was no customer that accounted for 10 percent or more of the Company’s revenues in 2021 or 2020. Additionally, there was no customer that accounted for 10 percent or more of accounts receivable as of December 31, 2022 or 2021. 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 2022, 2021 and 2020. Securities that are held in the non-qualified Supplemental Executive Retirement Plan (“SERP”) are classified as trading. See Note 13 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 Credit Loss Allowance for Accounts Receivable 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 credit loss allowance 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 receivable balances are written off when determined to be uncollectible and recoveries of amounts previously written off 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. 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 reporting unit was as follows: Years Ended December 31, 2022 2021 (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 2022, due to improved industry conditions, its reporting units’ performance and public market indications of value, the Company elected to perform a qualitative assessment of its goodwill and concluded that it is more likely than not that fair value of each of its reporting unit is more than its carrying amount, including goodwill. In 2021, 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 these assessments the Company concluded that the fair value of its reporting units exceeded their carrying amount and therefore no impairment of goodwill occurred during the years ended December 31, 2022 and 2021. Advertising Advertising expenses are charged to expense during the period in which they are incurred. Advertising expenses totaled $2.0 million in 2022, $1.1 million in 2021, and $806 thousand in 2020. 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 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 normal retirement at age 65, or reduced early retirement benefits at age 59 ½ or at age 55 or older with 15 or more years of service, to substantially all employees with at least one year of service prior to 2002. In 2002, RPC’s Board of Directors approved a resolution to cease all future retirement benefit accruals under the defined benefit pension plan. During the fourth quarter of 2021, the Company initiated actions to terminate the defined benefit pension plan. See Note 13 for a full description of this plan, the status of the plan termination 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, and 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 13 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) 2022 2021 2020 Net income (loss) available for stockholders: $ 218,363 $ 7,217 $ (212,192) Less: Adjustments for earnings attributable to participating securities (3,197) (89) — Net income (loss) used in calculating earnings per share $ 215,166 $ 7,128 $ (212,192) Weighted average shares outstanding (including participating securities) 216,518 215,646 215,063 Adjustment for participating securities (3,187) (2,656) (2,571) Shares used in calculating basic and diluted earnings per share 213,331 212,990 212,492 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 11 for additional information. Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payment awards, net of 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 13 for additional information. Leases 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’s lease population consists primarily of real estate including its corporate headquarters, office space and warehouses, in addition to vehicles. storage containers and office equipment. The Company’s population of month-to-month real estate leases have been classified as short-term leases. 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. Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued the following applicable Accounting Standards Updates (ASU): Recently Adopted Accounting Standards: ● ASU No. 2020-04 — Reference Rate Reform (Topic 848): The amendments in this ASU provide optional guidance for a limited time to ease the impact of the reference rate reform on financial reporting. The amendments, which are elective, provide expedients to contract modifications, affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference London Interbank Offered Rate (LIBOR) or other reference rate that is expected to be discontinued due to reference rate reform. In the second quarter of 2022, the Company adopted these provisions as part of the Amendment No. 6 to its Credit Agreement (see note 9) wherein LIBOR was replaced with the Term Secured Overnight Financing Rate (SOFR). Adoption of these provisions did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted: ● ASU No. 2021-08: Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers: The amendments in this ASU address diversity in practice related to the accounting for revenue contracts with customers acquired in a business combination, by adopting guidance requiring an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer would recognize and measure the acquired contract assets and contract liabilities in the same manner that they were recognized and measured in the acquiree's financial statements before the acquisition. The Company plans to adopt these provisions prospectively to business combinations occurring after January 1, 2023 and does not expect adoption to have a material impact on its consolidated financial statements. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2022 | |
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 15. 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 short-term in nature and generally consist of a single performance obligation – the provision of oilfield services. Payment terms RPC’s contracts with customers 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 15 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) 2022 2021 2020 Oilfield services transferred at a point in time $ — $ — $ — Oilfield services transferred over time 1,601,762 864,929 598,302 Total revenues $ 1,601,762 $ 864,929 $ 598,302 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: December 31, December 31, (in thousands) 2022 2021 Unbilled trade receivables $ 103,498 $ 70,353 Substantially all of the unbilled trade receivables as of December 31, 2022 and December 31, 2021 were invoiced during the following quarter. |
Pension Settlement, Impairment
Pension Settlement, Impairment and Other Charges | 12 Months Ended |
Dec. 31, 2022 | |
Pension Settlement, Impairment and Other Charges | |
Pension Settlement, Impairment and Other Charges | Note 3: Pension Settlement, Impairment and Other Charges The Company recorded the following pre-tax amounts during 2022 for pension settlement charges and for 2020 as impairment and other charges in the consolidated statements of operations. (in thousands) 2022 2021 2020 Long lived asset impairments (1) $ — $ — $ 204,765 Abandonment of assets (2) — — 5,976 Pension settlement loss (3) 2,921 — 4,660 Severance costs — — 1,882 Assets held for sale write down (4) — — 192 Other — — 18 Total $ 2,921 $ — $ 217,493 (1). Relates solely to the Technical Services segment and primarily includes pressure pumping and coiled tubing assets. (2). Represents the final disposition of assets that were ceased to be used during 2019 and recorded at salvage value. Also includes interest costs related to leased assets that were impaired in 2019. (3). Represents the non-cash settlement loss. See Note 13 for further details. (4). Represents the final settlement on certain real estate properties that were recorded as held for sale. During 2021, the Company initiated actions to terminate its Retirement Income Plan (Plan), a defined benefit pension plan. Pension settlement loss of million as of December 31, 2022. The final amount is subject to change based on the actual return on Plan assets and the periodic actuarial updates of the net losses in the Plan. See note 13 for additional information regarding the Plan. During the first half of 2020, the Company experienced drastic declines in oilfield drilling and completion activities, with low levels of revenues not experienced by RPC or the industry for many years. This unprecedented disruption was caused by the substantial decline in global demand for oil caused by the COVID-19 pandemic as well as macroeconomic events such as the geopolitical tensions between the Organization of Petroleum Exporting Countries 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 public market capitalization. In response, the Company reduced headcount, furloughed employees and implemented compensation reductions for remaining active employees with the goal of adjusting its cost structure caused by low revenue levels. The Company determined these events constituted a triggering event that required a review of the recoverability of its long-lived assets and performed an interim goodwill impairment assessment 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 its 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 calculation, which incorporates historical and forecasted trends, including an estimate of long-term future growth rates, based on its most recent views of the long-term outlook for each asset group and reporting units. 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 be not impaired. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable. | |
Accounts Receivable | Note 4: Accounts Receivable Accounts receivable, net consists of the following: December 31, 2022 2021 (in thousands) Trade receivables: Billed $ 315,332 $ 181,500 Unbilled 103,498 70,353 Other receivables 4,816 13,547 Total 423,646 265,400 Less: allowance for credit losses (7,078) (6,765) Accounts receivable, net $ 416,568 $ 258,635 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. |
Current Expected Credit Losses
Current Expected Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Current Expected Credit Losses | |
Current Expected Credit Losses | Note 5: Current Expected Credit Losses The Company utilizes an expected credit loss model for valuing its accounts receivable, a financial asset measured at amortized cost. 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 estimated 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 allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of 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 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: Years Ended December 31, 2022 2021 (in thousands) Beginning balance $ 6,765 $ 4,815 Provision for current expected credit losses 2,029 4,019 Write-offs (1,752) (2,098) Recoveries collected (net of expenses) 36 29 Ending balance $ 7,078 $ 6,765 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Inventories | Note 6: Inventories Inventories consist 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. In the table below, spare parts and components are included as part of raw materials and supplies; tools that are assembled using components are reported as finished goods. Inventories are recorded at the lower of cost or net realizable value. Cost is determined using either the first-in, first-out, or the weighted average cost method. December 31, 2022 2021 (in thousands) Raw materials and supplies $ 95,384 $ 77,709 Finished goods 1,723 1,274 Total Inventory $ 97,107 $ 78,983 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | Note 7: Property, Plant and Equipment Property, plant and equipment are presented at cost net of accumulated depreciation and consist of the following: December 31, 2022 2021 (in thousands) Land $ 17,287 $ 18,180 Buildings and leasehold improvements 120,506 120,649 Operating equipment 683,027 606,089 Computer software 22,194 22,925 Furniture and fixtures 5,480 6,222 Vehicles 259,933 243,647 Gross property, plant and equipment 1,108,427 1,017,712 Less: accumulated depreciation (775,334) (763,304) Net property, plant and equipment $ 333,093 $ 254,408 Depreciation expense was $83.0 million in 2022, $72.7 million in 2021, and $95.5 million in 2020. The Company had accounts payable for purchases of property and equipment of $9.3 million as of December 31, 2022 and $4.3 million as of December 31, 2021. The Company transferred inventory to property, plant and equipment totaling $9.9 million in 2022 and $11.1 million in 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Taxes | Note 8: Income Taxes The following table lists the components of the provision (benefit) for income taxes: Years ended December 31, 2022 2021 2020 (in thousands) Current provision (benefit): Federal $ 47,744 $ 4,946 $ (74,841) State 3,164 (1,387) 2,200 Foreign 865 784 1,247 Deferred provision (benefit): Federal 14,026 2,287 (16,376) State 5,470 2,601 (9,469) Total income tax provision (benefit) $ 71,269 $ 9,231 $ (97,239) The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), enacted in 2020, which among other changes, eliminated the taxable income limit for certain net operating losses (“NOL”). This allowed businesses to carryback NOLs arising in 2018, 2019 and 2020 to the five prior years, and provided a payment delay of employer payroll taxes during 2020 after the date of enactment. These provisions enabled a carryback of federal tax losses related to 2019 and 2020. The Company recorded net tax benefits totaling $29 million in 2020 related to these provisions. Reconciliation between the federal statutory rate and RPC’s effective tax rate is as follows: Years ended December 31, 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 1.9 2.9 1.5 Foreign taxes, net of federal benefit 0.3 5.1 (0.4) Tax credits (0.1) (3.5) 0.1 Change in contingencies — 8.6 — Non-deductible expenses 0.7 (2.8) (0.1) Adjustments related to CARES Act — 3.2 8.5 Change in estimated deferred rate 0.4 10.2 — Adjustments related to vesting of restricted stock 0.2 7.1 (0.8) Other 0.2 4.3 1.6 Effective tax rate 24.6 % 56.1 % 31.4 % Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2022 2021 (in thousands) Deferred tax assets: Self-insurance $ 3,051 $ 5,673 Pension 5,237 7,982 State net operating loss carryforwards 1,960 5,558 Allowance for credit losses 1,757 1,692 Stock-based compensation 2,531 2,532 Inventory reserve 3,290 2,868 Lease liability 6,701 5,620 Valuation allowance (990) (865) All others, net 3,427 2,834 Gross deferred tax assets 26,964 33,894 Deferred tax liabilities: Depreciation (51,494) (39,253) Right of use asset (6,397) (5,834) Goodwill amortization (6,546) (6,556) Gross deferred tax liabilities (64,437) (51,643) Net deferred tax liabilities $ (37,473) $ (17,749) 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. Total net income tax payments (refunds) were $35.8 million in 2022, $(20.9) million in 2021, and $(10.1) million in 2020. As of December 31, 2022, the Company has net operating loss carryforwards recorded related to state income taxes of $36.9 million (gross) that will expire between 2023 and 2042. The Company’s policy is to record interest and penalties related to income tax matters as income tax expense. Accrued interest and penalties were immaterial as of December 31, 2022 and 2021. During 2022, the Company recognized an increase in its liability for unrecognized tax benefits related primarily to current year positions and disclosed as part of other long-term liabilities on the consolidated balance sheet. This liability, if released, would affect our effective rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2022 2021 (in thousands) Balance at January 1 $ 1,737 $ — Additions (reductions) based on tax positions related to the current year 197 1,737 Additions (reductions) for tax positions of prior years (17) — Balance at December 31 $ 1,917 $ 1,737 It is reasonably possible that the amount of the unrecognized benefits with respect to the Company’s unrecognized tax positions will increase or decrease in the next 12 months. These changes may be the result of, among other things, expiration of statute of limitation, or conclusions of examinations or reviews. However, quantification of an estimated range cannot be made at this time. The Company and its subsidiaries are subject to U.S. federal and state income tax in multiple jurisdictions. In many cases, the 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 2019 through 2021 tax years remain open to examination. Additional years may be open to the extent attributes are being carried forward to an open year. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Debt | |
Long-Term Debt | Note 9: Long-Term Debt The Company has a revolving Credit Agreement with Bank of America and four other lenders which provides for a line of credit of up to $100 million, including a $35 million letter of credit subfacility, and a $35 million swingline subfacility. The 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. The Credit Agreement’s maturity date is June 22, 2027. The Company executed Amendment No. 6 to its Credit Agreement (the “Amendment”). This Amendment (1) extends the termination date for revolving loans from July 26, 2023 to June 22, 2027, (2) replaces LIBOR with the Term Secured Overnight Financing Rate (Term SOFR) as an interest rate option in connection with revolving loan borrowings and reduces the applicable rate margins by approximately 25.0 basis points at each pricing level, (3) introduces a 1.00% per annum floor for Base Rate borrowings, and (4) permits the issuance of letters of credit in currencies other than U.S. dollars. The Credit Agreement has three financial covenants- when RPC’s trailing four quarter EBITDA (as calculated under the Credit Agreement) is equal to or greater than $50 million: (i) the consolidated leverage ratio cannot exceed 2.50:1.00 and (ii) the debt service coverage ratio must be equal to or greater than 2.00:1.00; otherwise, the minimum tangible net worth must be greater than or equal to $400 million. As of both December 31, 2022 and December 31, 2021, 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: ● Term SOFR; plus, a margin ranging from 1.25% to 2.25% , based on a quarterly consolidated leverage ratio calculation, and an additional SOFR Adjustment ranging from 10 to 30 basis points depending upon maturity length; 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 Term SOFR plus 1.00% , or (d) 1.00% ; in each case plus a margin that ranges from 0.25% to 1.25% based on a quarterly consolidated leverage ratio calculation. In addition, the Company pays an annual fee ranging from 0.20% to 0.30%, 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. These costs are being amortized to interest expense over the remaining term of the loan, and the remaining net balance of $0.3 million at December 31, 2022 is classified as non-current other assets. The remaining net balance of these costs was $0.2 million as of December 31, 2021. As of December 31, 2022, RPC had no outstanding borrowings under the revolving credit facility, and letters of credit outstanding relating to self-insurance programs and contract bids totaled $17.5 million; therefore, a total of $82.5 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, 2022 2021 2020 (in thousands) Interest incurred $ 246 $ 257 $ 276 Interest paid $ 170 $ 166 $ 160 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive (Loss) Income | |
Accumulated Other Comprehensive (Loss) Income | Note 10: 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, 2020 $ (15,181) $ (2,525) $ (17,706) Change during 2021: Before-tax amount (3,500) (112) (3,612) Tax benefit 1,220 — 1,220 Reclassification adjustment, net of taxes: Amortization of net loss (1) (610) — (610) Total activity in 2021 (2,890) (112) (3,002) Balance at December 31, 2021 $ (18,071) $ (2,637) $ (20,708) Change during 2022: Before-tax amount (2,934) 5 (2,929) Tax benefit 671 — 671 Pension settlement loss 2,249 — 2,249 Reclassification adjustment, net of taxes: Amortization of net loss (1) 778 — 778 Total activity in 2022 764 5 769 Balance at December 31, 2022 $ (17,307) $ (2,632) $ (19,939) (1) Reported as selling, general and administrative expenses. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures | |
Fair Value Disclosures | Note 11: 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, 2022 and 2021: Fair Value Measurements at December 31, 2022 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 $ 305 $ 305 $ — $ — Investments measured at net asset value $ 24,175 Fair Value Measurements at December 31, 2021 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 $ 197 $ 197 $ — $ — Investments measured at net asset value $ 31,738 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 13, 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. The expected holding period for these assets measured at net asset value is unknown. 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, 2022 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, 2022 and 2021. Borrowings, if any, under our revolving credit facility bear variable interest rates as described in Note 9 and are classified as a level 2, based on quotes from the lender. 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 12: Commitments and Contingencies Income Taxes - Sales and Use Taxes - Loss Contingencies The Company has received a state tax notification of audit results related to sales and use tax and with its outside legal counsel has evaluated the perceived merits of this tax assessment. The Company believes the likelihood of a material loss related to this contingency is remote and cannot be reasonably estimated at this time. Therefore, no loss has been recorded and the Company currently does not believe the resolution of this claim will have a material impact on its consolidated financial position, results of operations or cash flows. Litigation - |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 13: Employee Benefit Plans Defined Benefit Pension Plan The Company’s Plan provides monthly benefits upon normal retirement at age 65, or reduced early retirement benefits at age 59 and a half, or 55 or older with 15 or more years of service.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. During 2021, the Company initiated actions to terminate the defined benefit pension Plan and as such, the year-end pension obligation has been valued on a termination basis. As part of the termination process, the Company offered a lump-sum window in the fourth quarter of 2022 and used the following assumptions to calculate the projected benefit obligation as of 2022; (i) updated census data and removed participants who elected to receive a lump-sum during the lump-sum window; (ii) annuities to be purchased for all remaining participants effective March 1, 2023 and (iii) using appropriate discount rates and mortality tables for participants depending on their pay status. A expected return on plan assets of zero percent based on the current short-term rates and investment horizon as a result of the expected Plan termination. Subsequent to December 31, 2022, the Company completed an annuity purchase to transfer risk from the Plan to a commercial annuity provider for all of the remaining Plan participants through the liquidation of its investments in the Plan and a Company contribution of approximately $6.0 million to $10.0 million. The Company’s projected benefit obligation exceeds the fair value of the Plan assets under its pension Plan by $9.6 million as of December 31, 2022. 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, 2022 2021 (in thousands) Accumulated benefit obligation at end of year $ 29,651 $ 41,038 Change in projected benefit obligation: Benefit obligation at beginning of year $ 41,038 $ 41,120 Service cost — — Interest cost 972 988 Actuarial (gain) loss (5,258) 1,365 Benefits paid (3,248) (2,435) Settlement (3,853) — Projected benefit obligation at end of year $ 29,651 $ 41,038 Change in Plan assets: Fair value of Plan assets at beginning of year $ 35,339 $ 39,068 Actual return on Plan assets (8,197) (1,294) Employer contribution — — Benefits paid (3,248) (2,435) Settlement (3,853) — Fair value of Plan assets at end of year $ 20,041 $ 35,339 Funded status at end of year $ (9,610) $ (5,699) December 31, 2022 2021 (in thousands) Amounts (pre-tax) recognized in accumulated other comprehensive income (loss) consist of: Net loss $ 22,476 $ 23,468 Prior service cost (credit) — — Net transition obligation (asset) — — $ 22,476 $ 23,468 The accumulated benefit obligation for the Retirement Income Plan at December 31, 2022 and 2021 has been disclosed above. The Company uses a December 31 measurement date for this qualified Plan. As part of the Plan termination, the Company expects to recognize a non-cash settlement charge of the remaining balance in the accumulated other comprehensive loss at the time. Funded status of the Plan as of December 31, 2022 was a deficit of $9.6 million and is disclosed as part of current liabilities on the consolidated balance sheets. Long-term pension and retirement plan liabilities recognized in the consolidated balance sheets consist of: December 31, 2022 2021 (in thousands) Funded status of the Retirement Income Plan $ — $ (5,699) SERP liability (23,106) (29,677) Long-term pension liabilities $ (23,106) $ (35,376) 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. The Company made no cash contributions in 2022 or 2021. The components of net periodic benefit cost of the Retirement Income Plan are summarized as follows: December 31, 2022 2021 2020 (in thousands) Interest cost $ 972 $ 988 $ 1,645 Expected return on Plan assets — (1,509) (1,581) Amortization of net losses 1,010 808 986 Settlement loss 2,921 — 4,660 Net periodic benefit cost $ 4,903 $ 287 $ 5,710 The Company recognized pre-tax (increases) decreases to the funded status in accumulated other comprehensive loss of $(992 thousand) in 2022, $3.4 million in 2021, and $(6.9 million) in 2020. There were no previously unrecognized prior service costs as of December 31, 2022, 2021 and 2020. Non-cash settlement charges shown above represent the accelerated recognition of actuarial losses previously reflected in accumulated other comprehensive loss related to the lump-sum window offered in each of the years. In 2020, the Company offered a limited lump-sum payment window for vested terminated participants who had terminated employment before July 1, 2020 and for active employees who reached age 59 ½ by December 1, 2020, with a vested balance. The participants at their election, could receive their vested balance either immediately as a lump-sum or as a monthly annuity payment. Non-cash settlement charges of The pre-tax amounts recognized in accumulated other comprehensive loss for the years ended December 31, 2022, 2021 and 2020 are summarized as follows: December 31, 2022 2021 2020 (in thousands) Net loss (gain) $ 2,939 $ 4,169 $ (1,217) Amortization of net loss (1,010) (808) (986) Net transition obligation (asset) — — — Settlement loss (2,921) — (4,660) Amount recognized in accumulated other comprehensive loss $ (992) $ 3,361 $ (6,863) The weighted average assumptions as of December 31 used to determine the projected benefit obligation and net benefit cost were as follows: December 31, 2022 2021 2020 Projected Benefit Obligation Discount rate Note (1) % Note (1) % 2.50 % Rate of compensation increase N/A N/A N/A Net Benefit Cost: Discount rate 4.86 % 2.50 % 3.60 % Expected return on Plan assets 0.0 % 4.00 % 4.00 % Rate of compensation increase N/A N/A N/A (1) Projected benefit obligation as of December 31, 2022 and December 31, 2021 reflects proposed termination of the Plan and is calculated based on various assumptions in accordance with the Plan agreement. The Plan’s weighted average asset allocation at December 31, 2022 and 2021 by asset category along with the target allocation for 2023 are as follows: Target Allocation Percentage of Plan Assets December 31, 2023 2022 2020 Asset Category Cash and cash equivalents 0% - 5 % 3.7 % 1.3 % Fixed income securities 15% - 100 % 96.3 % 98.7 % Total 100.0 % 100.0 % The Company’s Plan investments consist primarily of fixed-income securities that include corporate bonds, mortgage-backed securities, sovereign bonds, and U.S. Treasuries. For each of the asset categories in the Plan, the investment strategy is intended to minimize the level of risk as compared to the Plan’s liability and to minimize the cost of providing pension benefits. The investment policy establishes a target allocation for each asset class which is rebalanced as required. While not limited in approach, the Plan utilizes fixed income funds in which the underlying securities are marketable, to achieve this target allocation. The following tables present our Plan assets using the fair value hierarchy as of December 31, 2022 and 2021. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. See Note 11 for a brief description of the three levels under the fair value hierarchy. Fair Value Hierarchy as of December 31, 2022: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 740 $ 740 $ — Fixed Income Securities (2) 19,301 — 19,301 Total Assets in the Fair Value Hierarchy $ 20,041 $ 740 $ 19,301 Investments measured at Net Asset Value — Investments at Fair Value $ 20,041 Fair Value Hierarchy as of December 31, 2021: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 444 $ 444 $ — Fixed Income Securities (2) 34,895 — 34,895 Total Assets in the Fair Value Hierarchy $ 35,339 $ 444 $ 34,895 Investments measured at Net Asset Value — Investments at Fair Value $ 35,339 (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. Subsequent to December 31, 2022 these securities were liquidated to fund the annuity purchases. The Company estimates that the future benefits payable for the Retirement Income Plan over the next ten years are as follows: (in thousands) 2023 $ 29,888 2024 — 2025 — 2026 — 2027 — 2028‑2032 $ — 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 variable life insurance policies totaling $45.4 million as of December 31, 2022 and $60.7 million as of December 31, 2021. 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 $24.2 million as of December 31, 2022 and $31.7 million as of December 31, 2021. 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 (losses) gains related to the SERP assets totaled ($4.4 million) in 2022, $2.6 million in 2021, and $2.6 million in 2020. 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 recorded tax-free gains of $891 thousand during 2020; these gains were recorded as an adjustment to compensation cost within selling, general and administrative expenses in the consolidated statements of operations. Proceeds received totaling $1.6 million were reinvested in mutual funds held as SERP 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. 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 $9.8 million in 2022, $6.9 million in 2021, and $5.6 million in 2020. 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 allows for a wide variety of stock-based awards such as stock options and restricted stock. In recent years, we have awarded time-based restricted stock in lieu of granting stock options. We have not issued any stock options since 2003 and have no immediate plans to issue additional stock options. As of December 31, 2022, 2,046,199 shares were available for grant. As of December 31, 2021, 3,194,060 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 included as part of selling, general and administrative expense was $6.4 million in 2022 $(4.9 million after tax), $6.6 million in 2021 $(5.1 million after tax) and $8.7 million in 2020 $(6.6 million after tax). Restricted Stock The Company has granted certain employees and directors time lapse restricted stock which vest after a stipulated number of years from the grant date, depending on the terms of the issue. The 2023 time-lapse restricted shares will vest ratably over a period of four years; the shares granted in 2022 vest ratably over a period of five years . Prior to 2022, the time lapse restricted shares vested one-fifth The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2022: Weighted Average Shares Grant-Date Fair Value Non-vested shares at January 1, 2022 2,619,691 $ 7.89 Granted 1,254,276 6.72 Vested (510,084) 11.86 Forfeited (115,155) 6.29 Non-vested shares at December 31, 2022 3,248,728 $ 6.87 The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2021: Weighted Average Shares Grant-Date Fair Value Non-vested shares at January 1, 2021 2,235,179 $ 6.81 Granted 1,010,700 3.87 Vested (434,208) 14.96 Forfeited (191,980) 7.71 Non-vested shares at December 31, 2021 2,619,691 $ 7.89 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 $6.72 for 2022, $3.87 for 2021 and $4.59 for 2020. The total fair value of shares vested was $2.9 million during 2022, $1.8 million during 2021 and $3.5 million during 2020. The consolidated statements of cash flows reflect discrete income tax adjustments that resulted in $640,000 of detrimental impact in 2022 and $1,164,000 of detrimental impact in 2021 realized from tax compensation deductions and classified within operating activities as part of net income. Other Information As of December 31, 2022, total unrecognized compensation cost related to non-vested restricted shares was $13.8 million which is expected to be recognized over a weighted-average period of 3.3 years. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions | |
Related Party Transactions | Note 14: 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 $922 thousand in 2022, $867 thousand in 2021, and $846 thousand in 2020. The Company’s receivable due from Marine Products for these services was $26 thousand as of December 31, 2022 and $87 thousand as of December 31, 2021. The majority of the Company’s directors are also directors of Marine Products and 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 $1.8 million in 2022, $1.3 million in 2021 and $1.0 million in 2020. RPC receives certain administrative services from Rollins, Inc. (a company of which Mr. Gary W. Rollins is also Chairman, and which is controlled by Mr. Rollins and his affiliates). 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 selected administration services for 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 $71 thousand in 2022, $108 thousand in 2021 and $104 thousand in 2020. A group that includes Gary W. Rollins, Pamela R. Rollins, Amy Rollins Kreisler and Timothy C. Rollins, each of whom is 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, 2022 | |
Business Segment and Entity Wide Disclosures | |
Business Segment and Entity Wide Disclosures | Note 15: 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 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) 2022 2021 2020 Technical Services: Pressure Pumping $ 846,939 $ 369,028 $ 221,597 Downhole Tools 374,081 247,019 195,052 Coiled Tubing 140,889 88,946 51,616 Nitrogen 39,596 38,773 30,213 Snubbing 28,028 15,408 8,016 All other 86,830 55,872 49,994 Total Technical Services $ 1,516,363 $ 815,046 $ 556,488 Support Services: Rental Tools $ 62,780 $ 32,167 $ 25,280 All other 22,619 17,716 16,534 Total Support Services $ 85,399 $ 49,883 $ 41,814 Total revenues $ 1,601,762 $ 864,929 $ 598,302 The accounting policies of the reportable segments are the same as those described in Note 1. 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, 2022, 2021 and 2020 are shown in the following table: Gain on Pension Settlement, Technical Support disposition of Impairment and (in thousands) Services Services Corporate assets, net other charges Total 2022 Revenues $ 1,516,363 $ 85,399 $ — $ — $ — $ 1,601,762 Operating profit (loss) 281,622 18,095 (17,660) 8,804 (2,921) (1) 287,940 Capital expenditures 126,327 12,320 905 — — 139,552 Depreciation and amortization 73,016 9,840 161 — — 83,017 Identifiable assets 823,434 80,104 225,475 — — 1,129,013 2021 Revenues $ 815,046 $ 49,883 $ — $ — $ — $ 864,929 Operating profit (loss) 24,434 (5,725) (13,300) 10,882 — 16,291 Capital expenditures 59,316 7,012 1,317 — — 67,645 Depreciation and amortization 62,667 9,752 267 — — 72,686 Identifiable assets 580,406 69,345 214,614 — — 864,365 2020 Revenues $ 556,488 $ 41,814 $ — $ — $ — $ 598,302 Operating (loss) profit (82,525) (6,714) (12,426) 9,523 (217,493) (2) (309,635) Capital expenditures 54,327 10,224 514 — — 65,065 Depreciation and amortization 80,877 14,377 276 — — 95,530 Identifiable assets 499,764 64,457 226,284 — — 790,505 (1) Represents $2,921 related to pension settlement loss. (2) Represents $212,292 related to technical services, $4,660 related to pension settlement loss and the remainder related to corporate expenses. The following summarizes revenues for the United States and separately for all international locations combined for the years ended December 31, 2022, 2021 and 2020. 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. (in thousands) 2022 2021 2020 United States revenues $ 1,569,160 $ 833,686 $ 562,390 International revenues 32,602 31,243 35,912 Total revenues $ 1,601,762 $ 864,929 $ 598,302 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases. | |
Leases | Note 16: Leases The Company recognizes leases with a duration greater than 12 months on the balance sheet with a 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 are 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. During the year ended December 31, 2022, the Company purchased assets under an arrangement that was recorded as a finance lease, at the end of its lease term. In addition, the Company continued the short-term leasing arrangement for certain operating equipment until it ended in 2022. Lease Position: The table below represents the assets and liabilities related to operating leases recorded on the balance sheet: December 31, 2022 2021 (in thousands) Assets: Finance lease right-of-use assets $ — $ 20,327 Operating lease right-of-use assets $ 28,864 $ 24,572 Liabilities: Current portion of finance lease — 20,194 Current portion of operating leases $ 10,728 $ 6,387 Long-term operating lease liabilities 19,517 19,719 Total operating lease liabilities $ 30,245 $ 26,106 Lease costs: The components of finance lease are included in depreciation and amortization and interest expense; operating lease expense are included in costs of goods sold, and selling, general and administrative expenses in the consolidated statements of operations as disclosed below. Year ended December 31, 2022 2021 2020 (in thousands) Finance lease cost Amortization of leased assets $ 3,390 $ 1,452 $ — Interest on lease liabilities 283 116 — Total finance lease cost $ 3,673 $ 1,568 $ — Operating lease cost $ 9,615 $ 7,580 $ 8,373 Short-term lease cost 9,192 3,626 2,577 Variable lease cost 647 772 624 Sublease income (1,021) (831) (295) Total operating lease cost $ 18,433 $ 11,147 $ 11,279 Total lease cost $ 22,106 $ 12,715 $ 11,279 Other information: As of December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities – operating leases (in thousands) $ 8,742 $ 10,151 ROU assets obtained in exchange for operating lease liabilities (in thousands) $ 12,882 $ 5,974 ROU assets obtained in exchange for finance lease liabilities (in thousands) $ — $ 21,778 Weighted average remaining lease term – finance lease (months) — 8 Weighted average remaining lease term – operating leases (years) 5.14 5.41 Weighted average discount rate – finance lease — % 1.68 % Weighted average discount rate – operating leases 3.93 % 2.29 % Lease Commitments: Maturity of lease liabilities - Operating Leases: As of December 31, 2022 2021 (in thousands) 2022 $ — $ 7,015 2023 12,091 4,483 2024 6,164 3,619 2025 4,001 2,667 2026 3,380 2,421 2027 2,615 — Thereafter 6,618 7,742 Total lease payments 34,869 27,947 Less: Amounts representing interest (4,623) (1,841) Present value of lease liabilities $ 30,246 $ 26,106 |
SCHEDULE II -VALUATION AND QUAL
SCHEDULE II -VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS For the years ended December 31, 2022, 2021 and 2020 Balance at Charged to Balance Beginning Costs and Net (Deductions) at End of (in thousands) of Period Expenses Recoveries Period Year ended December 31, 2022 Credit loss allowance for accounts receivable $ 6,765 $ 2,029 $ (1,716) (1) $ 7,078 Deferred tax asset valuation allowance $ 865 $ — $ 125 (2) $ 990 Reserve for obsolete or slow moving inventory $ 13,236 $ 4,080 $ (1,942) (3) $ 15,374 Year ended December 31, 2021 Credit loss allowance for accounts receivable $ 4,815 $ 4,019 $ (2,069) (1) $ 6,765 Deferred tax asset valuation allowance $ 490 $ — $ 375 (2) $ 865 Reserve for obsolete or slow moving inventory $ 13,829 $ 5,016 $ (5,609) (3) $ 13,236 Year ended December 31, 2020 Credit loss allowance for accounts receivable $ 5,181 $ 342 $ (708) (1) $ 4,815 Deferred tax asset valuation allowance $ 471 $ — $ 19 (2) $ 490 Reserve for obsolete or slow moving inventory $ 10,467 $ 5,826 $ (2,464) (3) $ 13,829 (1) Net (deductions) recoveries in the credit loss allowance 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 state and foreign net operating losses 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, 2022 | |
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, 2022, 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 January 24, 2023, the Board of Directors declared a $0.04 per share cash dividend payable March 10, 2023 to stockholders of record at the close of business on February 10, 2023 . |
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 credit loss allowance, income taxes, goodwill impairment, 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. One of our customers, a private exploration and production company, accounted for approximately 11 percent of the Company’s revenues in 2022 with no other customers exceeding 10 percent of revenues in 2022. There was no customer that accounted for 10 percent or more of the Company’s revenues in 2021 or 2020. Additionally, there was no customer that accounted for 10 percent or more of accounts receivable as of December 31, 2022 or 2021. |
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 2022, 2021 and 2020. Securities that are held in the non-qualified Supplemental Executive Retirement Plan (“SERP”) are classified as trading. See Note 13 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 |
Credit Loss Allowance for Accounts Receivable | Credit Loss Allowance for Accounts Receivable 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 credit loss allowance 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 receivable balances are written off when determined to be uncollectible and recoveries of amounts previously written off 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. |
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 reporting unit was as follows: Years Ended December 31, 2022 2021 (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 2022, due to improved industry conditions, its reporting units’ performance and public market indications of value, the Company elected to perform a qualitative assessment of its goodwill and concluded that it is more likely than not that fair value of each of its reporting unit is more than its carrying amount, including goodwill. In 2021, 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 these assessments the Company concluded that the fair value of its reporting units exceeded their carrying amount and therefore no impairment of goodwill occurred during the years ended December 31, 2022 and 2021. |
Advertising | Advertising Advertising expenses are charged to expense during the period in which they are incurred. Advertising expenses totaled $2.0 million in 2022, $1.1 million in 2021, and $806 thousand in 2020. |
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 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 normal retirement at age 65, or reduced early retirement benefits at age 59 ½ or at age 55 or older with 15 or more years of service, to substantially all employees with at least one year of service prior to 2002. In 2002, RPC’s Board of Directors approved a resolution to cease all future retirement benefit accruals under the defined benefit pension plan. During the fourth quarter of 2021, the Company initiated actions to terminate the defined benefit pension plan. See Note 13 for a full description of this plan, the status of the plan termination 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, and 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 13 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) 2022 2021 2020 Net income (loss) available for stockholders: $ 218,363 $ 7,217 $ (212,192) Less: Adjustments for earnings attributable to participating securities (3,197) (89) — Net income (loss) used in calculating earnings per share $ 215,166 $ 7,128 $ (212,192) Weighted average shares outstanding (including participating securities) 216,518 215,646 215,063 Adjustment for participating securities (3,187) (2,656) (2,571) Shares used in calculating basic and diluted earnings per share 213,331 212,990 212,492 |
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 11 for additional information. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is recognized for all share-based payment awards, net of 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 13 for additional information. |
Leases | Leases 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’s lease population consists primarily of real estate including its corporate headquarters, office space and warehouses, in addition to vehicles. storage containers and office equipment. The Company’s population of month-to-month real estate leases have been classified as short-term leases. 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. |
Recently Issued Accounting Standards Adopted and Not Yet Adopted | Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued the following applicable Accounting Standards Updates (ASU): Recently Adopted Accounting Standards: ● ASU No. 2020-04 — Reference Rate Reform (Topic 848): The amendments in this ASU provide optional guidance for a limited time to ease the impact of the reference rate reform on financial reporting. The amendments, which are elective, provide expedients to contract modifications, affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference London Interbank Offered Rate (LIBOR) or other reference rate that is expected to be discontinued due to reference rate reform. In the second quarter of 2022, the Company adopted these provisions as part of the Amendment No. 6 to its Credit Agreement (see note 9) wherein LIBOR was replaced with the Term Secured Overnight Financing Rate (SOFR). Adoption of these provisions did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted: ● ASU No. 2021-08: Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers: The amendments in this ASU address diversity in practice related to the accounting for revenue contracts with customers acquired in a business combination, by adopting guidance requiring an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer would recognize and measure the acquired contract assets and contract liabilities in the same manner that they were recognized and measured in the acquiree's financial statements before the acquisition. The Company plans to adopt these provisions prospectively to business combinations occurring after January 1, 2023 and does not expect adoption to have a material impact on its consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies | |
Schedule of carrying amount of goodwill by reportable segment | Years Ended December 31, 2022 2021 (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) 2022 2021 2020 Net income (loss) available for stockholders: $ 218,363 $ 7,217 $ (212,192) Less: Adjustments for earnings attributable to participating securities (3,197) (89) — Net income (loss) used in calculating earnings per share $ 215,166 $ 7,128 $ (212,192) Weighted average shares outstanding (including participating securities) 216,518 215,646 215,063 Adjustment for participating securities (3,187) (2,656) (2,571) Shares used in calculating basic and diluted earnings per share 213,331 212,990 212,492 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenues | |
Schedule of disaggregation of revenues | (in thousands) 2022 2021 2020 Oilfield services transferred at a point in time $ — $ — $ — Oilfield services transferred over time 1,601,762 864,929 598,302 Total revenues $ 1,601,762 $ 864,929 $ 598,302 |
Schedule of contract assets included in accounts receivable | December 31, December 31, (in thousands) 2022 2021 Unbilled trade receivables $ 103,498 $ 70,353 |
Pension Settlement, Impairmen_2
Pension Settlement, Impairment and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Pension Settlement, Impairment and Other Charges | |
Schedule of pension settlement, impairment and other charges | (in thousands) 2022 2021 2020 Long lived asset impairments (1) $ — $ — $ 204,765 Abandonment of assets (2) — — 5,976 Pension settlement loss (3) 2,921 — 4,660 Severance costs — — 1,882 Assets held for sale write down (4) — — 192 Other — — 18 Total $ 2,921 $ — $ 217,493 (1). Relates solely to the Technical Services segment and primarily includes pressure pumping and coiled tubing assets. (2). Represents the final disposition of assets that were ceased to be used during 2019 and recorded at salvage value. Also includes interest costs related to leased assets that were impaired in 2019. (3). Represents the non-cash settlement loss. See Note 13 for further details. (4). Represents the final settlement on certain real estate properties that were recorded as held for sale. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable. | |
Schedule of components of accounts receivables | December 31, 2022 2021 (in thousands) Trade receivables: Billed $ 315,332 $ 181,500 Unbilled 103,498 70,353 Other receivables 4,816 13,547 Total 423,646 265,400 Less: allowance for credit losses (7,078) (6,765) Accounts receivable, net $ 416,568 $ 258,635 |
Current Expected Credit Losses
Current Expected Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 | Years Ended December 31, 2022 2021 (in thousands) Beginning balance $ 6,765 $ 4,815 Provision for current expected credit losses 2,029 4,019 Write-offs (1,752) (2,098) Recoveries collected (net of expenses) 36 29 Ending balance $ 7,078 $ 6,765 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Schedule of inventory | December 31, 2022 2021 (in thousands) Raw materials and supplies $ 95,384 $ 77,709 Finished goods 1,723 1,274 Total Inventory $ 97,107 $ 78,983 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment | |
Schedule of property, plant and equipment | December 31, 2022 2021 (in thousands) Land $ 17,287 $ 18,180 Buildings and leasehold improvements 120,506 120,649 Operating equipment 683,027 606,089 Computer software 22,194 22,925 Furniture and fixtures 5,480 6,222 Vehicles 259,933 243,647 Gross property, plant and equipment 1,108,427 1,017,712 Less: accumulated depreciation (775,334) (763,304) Net property, plant and equipment $ 333,093 $ 254,408 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Schedule of components of provision (benefit) for income taxes | Years ended December 31, 2022 2021 2020 (in thousands) Current provision (benefit): Federal $ 47,744 $ 4,946 $ (74,841) State 3,164 (1,387) 2,200 Foreign 865 784 1,247 Deferred provision (benefit): Federal 14,026 2,287 (16,376) State 5,470 2,601 (9,469) Total income tax provision (benefit) $ 71,269 $ 9,231 $ (97,239) |
Schedule of reconciliation between the federal statutory rate and effective tax rate | Years ended December 31, 2022 2021 2020 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 1.9 2.9 1.5 Foreign taxes, net of federal benefit 0.3 5.1 (0.4) Tax credits (0.1) (3.5) 0.1 Change in contingencies — 8.6 — Non-deductible expenses 0.7 (2.8) (0.1) Adjustments related to CARES Act — 3.2 8.5 Change in estimated deferred rate 0.4 10.2 — Adjustments related to vesting of restricted stock 0.2 7.1 (0.8) Other 0.2 4.3 1.6 Effective tax rate 24.6 % 56.1 % 31.4 % |
Schedule of deferred tax assets and liabilities | December 31, 2022 2021 (in thousands) Deferred tax assets: Self-insurance $ 3,051 $ 5,673 Pension 5,237 7,982 State net operating loss carryforwards 1,960 5,558 Allowance for credit losses 1,757 1,692 Stock-based compensation 2,531 2,532 Inventory reserve 3,290 2,868 Lease liability 6,701 5,620 Valuation allowance (990) (865) All others, net 3,427 2,834 Gross deferred tax assets 26,964 33,894 Deferred tax liabilities: Depreciation (51,494) (39,253) Right of use asset (6,397) (5,834) Goodwill amortization (6,546) (6,556) Gross deferred tax liabilities (64,437) (51,643) Net deferred tax liabilities $ (37,473) $ (17,749) |
Schedule of reconciliation of unrecognized tax benefits | 2022 2021 (in thousands) Balance at January 1 $ 1,737 $ — Additions (reductions) based on tax positions related to the current year 197 1,737 Additions (reductions) for tax positions of prior years (17) — Balance at December 31 $ 1,917 $ 1,737 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 (in thousands) Interest incurred $ 246 $ 257 $ 276 Interest paid $ 170 $ 166 $ 160 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive (Loss) Income | |
Schedule of accumulated other comprehensive (loss) income | Foreign Pension Currency Adjustment Translation Total Balance at December 31, 2020 $ (15,181) $ (2,525) $ (17,706) Change during 2021: Before-tax amount (3,500) (112) (3,612) Tax benefit 1,220 — 1,220 Reclassification adjustment, net of taxes: Amortization of net loss (1) (610) — (610) Total activity in 2021 (2,890) (112) (3,002) Balance at December 31, 2021 $ (18,071) $ (2,637) $ (20,708) Change during 2022: Before-tax amount (2,934) 5 (2,929) Tax benefit 671 — 671 Pension settlement loss 2,249 — 2,249 Reclassification adjustment, net of taxes: Amortization of net loss (1) 778 — 778 Total activity in 2022 764 5 769 Balance at December 31, 2022 $ (17,307) $ (2,632) $ (19,939) (1) Reported as selling, general and administrative expenses. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures | |
Schedule of valuation of financial instruments measured at fair value on a recurring basis | Fair Value Measurements at December 31, 2022 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 $ 305 $ 305 $ — $ — Investments measured at net asset value $ 24,175 Fair Value Measurements at December 31, 2021 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 $ 197 $ 197 $ — $ — Investments measured at net asset value $ 31,738 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plans | |
Schedule of funded status of retirement income plan | December 31, 2022 2021 (in thousands) Accumulated benefit obligation at end of year $ 29,651 $ 41,038 Change in projected benefit obligation: Benefit obligation at beginning of year $ 41,038 $ 41,120 Service cost — — Interest cost 972 988 Actuarial (gain) loss (5,258) 1,365 Benefits paid (3,248) (2,435) Settlement (3,853) — Projected benefit obligation at end of year $ 29,651 $ 41,038 Change in Plan assets: Fair value of Plan assets at beginning of year $ 35,339 $ 39,068 Actual return on Plan assets (8,197) (1,294) Employer contribution — — Benefits paid (3,248) (2,435) Settlement (3,853) — Fair value of Plan assets at end of year $ 20,041 $ 35,339 Funded status at end of year $ (9,610) $ (5,699) December 31, 2022 2021 (in thousands) Amounts (pre-tax) recognized in accumulated other comprehensive income (loss) consist of: Net loss $ 22,476 $ 23,468 Prior service cost (credit) — — Net transition obligation (asset) — — $ 22,476 $ 23,468 |
Schedule of amounts recognized in balance sheet | December 31, 2022 2021 (in thousands) Funded status of the Retirement Income Plan $ — $ (5,699) SERP liability (23,106) (29,677) Long-term pension liabilities $ (23,106) $ (35,376) |
Schedule of net periodic benefit cost | December 31, 2022 2021 2020 (in thousands) Interest cost $ 972 $ 988 $ 1,645 Expected return on Plan assets — (1,509) (1,581) Amortization of net losses 1,010 808 986 Settlement loss 2,921 — 4,660 Net periodic benefit cost $ 4,903 $ 287 $ 5,710 |
Schedule of amounts recognized in other comprehensive loss | December 31, 2022 2021 2020 (in thousands) Net loss (gain) $ 2,939 $ 4,169 $ (1,217) Amortization of net loss (1,010) (808) (986) Net transition obligation (asset) — — — Settlement loss (2,921) — (4,660) Amount recognized in accumulated other comprehensive loss $ (992) $ 3,361 $ (6,863) |
Schedule of weighted average assumptions | December 31, 2022 2021 2020 Projected Benefit Obligation Discount rate Note (1) % Note (1) % 2.50 % Rate of compensation increase N/A N/A N/A Net Benefit Cost: Discount rate 4.86 % 2.50 % 3.60 % Expected return on Plan assets 0.0 % 4.00 % 4.00 % Rate of compensation increase N/A N/A N/A (1) Projected benefit obligation as of December 31, 2022 and December 31, 2021 reflects proposed termination of the Plan and is calculated based on various assumptions in accordance with the Plan agreement. |
Schedule of allocation of plan assets | Target Allocation Percentage of Plan Assets December 31, 2023 2022 2020 Asset Category Cash and cash equivalents 0% - 5 % 3.7 % 1.3 % Fixed income securities 15% - 100 % 96.3 % 98.7 % Total 100.0 % 100.0 % |
Schedule of level three defined benefit plan assets | Fair Value Hierarchy as of December 31, 2022: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 740 $ 740 $ — Fixed Income Securities (2) 19,301 — 19,301 Total Assets in the Fair Value Hierarchy $ 20,041 $ 740 $ 19,301 Investments measured at Net Asset Value — Investments at Fair Value $ 20,041 Fair Value Hierarchy as of December 31, 2021: Investments (in thousands) Total Level 1 Level 2 Cash and Cash Equivalents (1) $ 444 $ 444 $ — Fixed Income Securities (2) 34,895 — 34,895 Total Assets in the Fair Value Hierarchy $ 35,339 $ 444 $ 34,895 Investments measured at Net Asset Value — Investments at Fair Value $ 35,339 (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. Subsequent to December 31, 2022 these securities were liquidated to fund the annuity purchases. |
Schedule of future benefits payable for the retirement income plan over the next ten years | (in thousands) 2023 $ 29,888 2024 — 2025 — 2026 — 2027 — 2028‑2032 $ — |
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, 2022: Weighted Average Shares Grant-Date Fair Value Non-vested shares at January 1, 2022 2,619,691 $ 7.89 Granted 1,254,276 6.72 Vested (510,084) 11.86 Forfeited (115,155) 6.29 Non-vested shares at December 31, 2022 3,248,728 $ 6.87 The following is a summary of the changes in non-vested restricted shares for the year ended December 31, 2021: Weighted Average Shares Grant-Date Fair Value Non-vested shares at January 1, 2021 2,235,179 $ 6.81 Granted 1,010,700 3.87 Vested (434,208) 14.96 Forfeited (191,980) 7.71 Non-vested shares at December 31, 2021 2,619,691 $ 7.89 |
Business Segment and Entity W_2
Business Segment and Entity Wide Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Segment and Entity Wide Disclosures | |
Schedule of operating segment revenues by major service lines | (in thousands) 2022 2021 2020 Technical Services: Pressure Pumping $ 846,939 $ 369,028 $ 221,597 Downhole Tools 374,081 247,019 195,052 Coiled Tubing 140,889 88,946 51,616 Nitrogen 39,596 38,773 30,213 Snubbing 28,028 15,408 8,016 All other 86,830 55,872 49,994 Total Technical Services $ 1,516,363 $ 815,046 $ 556,488 Support Services: Rental Tools $ 62,780 $ 32,167 $ 25,280 All other 22,619 17,716 16,534 Total Support Services $ 85,399 $ 49,883 $ 41,814 Total revenues $ 1,601,762 $ 864,929 $ 598,302 |
Schedule of segment reporting information by segment | Gain on Pension Settlement, Technical Support disposition of Impairment and (in thousands) Services Services Corporate assets, net other charges Total 2022 Revenues $ 1,516,363 $ 85,399 $ — $ — $ — $ 1,601,762 Operating profit (loss) 281,622 18,095 (17,660) 8,804 (2,921) (1) 287,940 Capital expenditures 126,327 12,320 905 — — 139,552 Depreciation and amortization 73,016 9,840 161 — — 83,017 Identifiable assets 823,434 80,104 225,475 — — 1,129,013 2021 Revenues $ 815,046 $ 49,883 $ — $ — $ — $ 864,929 Operating profit (loss) 24,434 (5,725) (13,300) 10,882 — 16,291 Capital expenditures 59,316 7,012 1,317 — — 67,645 Depreciation and amortization 62,667 9,752 267 — — 72,686 Identifiable assets 580,406 69,345 214,614 — — 864,365 2020 Revenues $ 556,488 $ 41,814 $ — $ — $ — $ 598,302 Operating (loss) profit (82,525) (6,714) (12,426) 9,523 (217,493) (2) (309,635) Capital expenditures 54,327 10,224 514 — — 65,065 Depreciation and amortization 80,877 14,377 276 — — 95,530 Identifiable assets 499,764 64,457 226,284 — — 790,505 (1) Represents $2,921 related to pension settlement loss. (2) Represents $212,292 related to technical services, $4,660 related to pension settlement loss and the remainder related to corporate expenses. |
Schedule of revenue by geographical location | (in thousands) 2022 2021 2020 United States revenues $ 1,569,160 $ 833,686 $ 562,390 International revenues 32,602 31,243 35,912 Total revenues $ 1,601,762 $ 864,929 $ 598,302 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases. | |
Schedule of assets and liabilities related to operating leases | December 31, 2022 2021 (in thousands) Assets: Finance lease right-of-use assets $ — $ 20,327 Operating lease right-of-use assets $ 28,864 $ 24,572 Liabilities: Current portion of finance lease — 20,194 Current portion of operating leases $ 10,728 $ 6,387 Long-term operating lease liabilities 19,517 19,719 Total operating lease liabilities $ 30,245 $ 26,106 |
Schedule of lease cost | Year ended December 31, 2022 2021 2020 (in thousands) Finance lease cost Amortization of leased assets $ 3,390 $ 1,452 $ — Interest on lease liabilities 283 116 — Total finance lease cost $ 3,673 $ 1,568 $ — Operating lease cost $ 9,615 $ 7,580 $ 8,373 Short-term lease cost 9,192 3,626 2,577 Variable lease cost 647 772 624 Sublease income (1,021) (831) (295) Total operating lease cost $ 18,433 $ 11,147 $ 11,279 Total lease cost $ 22,106 $ 12,715 $ 11,279 |
Schedule of other information of leases | Other information: As of December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities – operating leases (in thousands) $ 8,742 $ 10,151 ROU assets obtained in exchange for operating lease liabilities (in thousands) $ 12,882 $ 5,974 ROU assets obtained in exchange for finance lease liabilities (in thousands) $ — $ 21,778 Weighted average remaining lease term – finance lease (months) — 8 Weighted average remaining lease term – operating leases (years) 5.14 5.41 Weighted average discount rate – finance lease — % 1.68 % Weighted average discount rate – operating leases 3.93 % 2.29 % |
Schedule of maturity of lease liabilities | As of December 31, 2022 2021 (in thousands) 2022 $ — $ 7,015 2023 12,091 4,483 2024 6,164 3,619 2025 4,001 2,667 2026 3,380 2,421 2027 2,615 — Thereafter 6,618 7,742 Total lease payments 34,869 27,947 Less: Amounts representing interest (4,623) (1,841) Present value of lease liabilities $ 30,246 $ 26,106 |
Significant Accounting Polici_4
Significant Accounting Policies - Common Stock (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
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, 2022 | Dec. 31, 2021 |
Significant Accounting Policies | ||
Preferred stock, shares authorized (in shares) | 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 - Dividends (Details) - Subsequent Event | Jan. 24, 2023 $ / shares |
Dividends | |
Dividends payable, date to be payable | Mar. 10, 2023 |
Cash dividend payable (in dollars per share) | $ 0.04 |
Dividend payable, date declared | Feb. 10, 2023 |
Significant Accounting Polici_7
Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer concentration risk - customer | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
PRI Operating Inc | Revenues | |||
Concentration of Credit Risk | |||
Customers (in customers) | 1 | ||
Concentration risk (in percent) | 11% | ||
Customer | Revenues | |||
Concentration of Credit Risk | |||
Customers (in customers) | 0 | 0 | 0 |
Concentration risk (in percent) | 10% | 10% | 10% |
Customer | Accounts receivable | |||
Concentration of Credit Risk | |||
Customers (in customers) | 0 | 0 | |
Concentration risk (in percent) | 10% | 10% |
Significant Accounting Polici_8
Significant Accounting Policies - Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies | |||
Gain (loss) available for sale security | $ 0 | $ 0 | $ 0 |
Significant Accounting Polici_9
Significant Accounting Policies - Accounts Receivable (Details) | Dec. 31, 2022 |
Significant Accounting Policies | |
Accounts Receivable, Noncurrent, Threshold Period Past Due | 60 days |
Significant Accounting Polic_10
Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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 |
Buildings and leasehold improvements | Minimum | |
Property, Plant and Equipment | |
Useful lives (in years) | 15 years |
Buildings 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_11
Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
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_12
Significant Accounting Policies - Advertising (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies | |||
Advertising Expense | $ 2,000 | $ 1,100 | $ 806 |
Significant Accounting Polic_13
Significant Accounting Policies - Earnings per share (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies | |||
Net income (loss) available for stockholders: | $ 218,363 | $ 7,217 | $ (212,192) |
Less: Adjustments for losses attributable to participating securities | (3,197) | (89) | |
Net income (loss) used in calculating earnings per share | $ 215,166 | $ 7,128 | $ (212,192) |
Weighted average shares outstanding (including participating securities) | 216,518 | 215,646 | 215,063 |
Adjustment for participating securities | (3,187) | (2,656) | (2,571) |
Shares used in calculating basic earnings per share | 213,331 | 212,990 | 212,492 |
Revenues - Payment Terms (Detai
Revenues - Payment Terms (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Revenue satisfaction period | 30 days |
Maximum | |
Revenue satisfaction period | 60 days |
Revenues - Disaggregation of re
Revenues - Disaggregation of revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of revenue: | |||
Total revenues | $ 1,601,762 | $ 864,929 | $ 598,302 |
Oilfield services transferred at a point in time | |||
Disaggregation of revenue: | |||
Total revenues | 0 | 0 | 0 |
Oilfield services transferred over time | |||
Disaggregation of revenue: | |||
Total revenues | $ 1,601,762 | $ 864,929 | $ 598,302 |
Revenues - Contract balances (D
Revenues - Contract balances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts receivable | ||
Disaggregation of revenue: | ||
Unbilled trade receivables | $ 103,498 | $ 70,353 |
Pension Settlement, Impairmen_3
Pension Settlement, Impairment and Other Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Long lived asset impairments | $ 204,765 | ||||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Pension Settlement, Impairment and Other Charges | ||||
Abandonment of assets | $ 5,976 | ||||
Pension settlement loss | $ 22,500 | $ 2,900 | $ 2,921 | 4,660 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Pension Settlement, Impairment and Other Charges | ||||
Severance costs | 1,882 | ||||
Assets held for sale write down | 192 | ||||
Other | 18 | ||||
Pension Settlement, Impairment and Other Charges | $ 2,921 | 217,493 | |||
Expected return on plan assets | 0% | ||||
Unamortized net loss | $ 22,500 | $ 22,500 | |||
Retirement Income Plan | |||||
Pension settlement loss | $ 2,921 | $ 4,660 | |||
Expected return on plan assets | 0% | 4% | 4% | ||
Technical Services | |||||
Pension settlement loss | $ 212,292 |
Accounts Receivable - Accounts
Accounts Receivable - Accounts receivable, net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Receivable. | ||
Billed | $ 315,332 | $ 181,500 |
Unbilled | 103,498 | 70,353 |
Other receivables | 4,816 | 13,547 |
Total | 423,646 | 265,400 |
Less: allowance for credit losses | (7,078) | (6,765) |
Accounts receivable, net | $ 416,568 | $ 258,635 |
Current Expected Credit Losse_2
Current Expected Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for doubtful accounts rollforward | ||
Beginning balance | $ 6,765 | $ 4,815 |
Provision for current expected credit losses | 2,029 | 4,019 |
Write-offs | (1,752) | (2,098) |
Recoveries collected (net of expenses) | 36 | 29 |
Ending balance | $ 7,078 | $ 6,765 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventories | ||
Raw materials and supplies | $ 95,384 | $ 77,709 |
Finished goods | 1,723 | 1,274 |
Ending balance | $ 97,107 | $ 78,983 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment | ||
Gross property, plant and equipment | $ 1,108,427 | $ 1,017,712 |
Less: accumulated depreciation | (775,334) | (763,304) |
Net property, plant and equipment | 333,093 | 254,408 |
Land | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 17,287 | 18,180 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 120,506 | 120,649 |
Operating equipment | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 683,027 | 606,089 |
Computer software | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 22,194 | 22,925 |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | 5,480 | 6,222 |
Vehicles | ||
Property, Plant and Equipment | ||
Gross property, plant and equipment | $ 259,933 | $ 243,647 |
Property, Plant and Equipment -
Property, Plant and Equipment - Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment | |||
Depreciation | $ 83,000 | $ 72,700 | $ 95,500 |
Accounts payable | 115,213 | 74,404 | |
Inventory to property, plant and equipment transfer amount | 9,900 | 11,100 | |
Property and Equipment | |||
Property, Plant and Equipment | |||
Accounts payable | $ 9,300 | $ 4,300 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current provision (benefit): | |||
Federal | $ 47,744 | $ 4,946 | $ (74,841) |
State | 3,164 | (1,387) | 2,200 |
Foreign | 865 | 784 | 1,247 |
Deferred provision (benefit): | |||
Federal | 14,026 | 2,287 | (16,376) |
State | 5,470 | 2,601 | (9,469) |
Total income tax provision (benefit) | $ 71,269 | $ 9,231 | $ (97,239) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income tax carry forwards | |||
Net tax benefit due to CARES Act provisions | $ 29,000 | ||
Income tax payments (refunds) | $ 35,809 | $ (20,903) | $ (10,051) |
State and Local Jurisdiction | |||
Income tax carry forwards | |||
Net operating loss carryforwards | $ 36,900 |
Income Taxes - Summary of recon
Income Taxes - Summary of reconciliation between federal statutory rate and effective tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | |||
Federal statutory rate | 21% | 21% | 21% |
State income taxes, net of federal benefit | 1.90% | 2.90% | 1.50% |
Foreign taxes, net of federal benefit | 0.30% | 5.10% | (0.40%) |
Tax credits | (0.10%) | (3.50%) | 0.10% |
Change in contingencies | 8.60% | ||
Non-deductible expenses | 0.70% | (2.80%) | (0.10%) |
Adjustments related to CARES Act | 3.20% | 8.50% | |
Change in estimated deferred rate | 0.40% | 10.20% | |
Adjustments related to vesting of restricted stock | 0.20% | 7.10% | (0.80%) |
Other | 0.20% | 4.30% | 1.60% |
Effective tax rate | 24.60% | 56.10% | 31.40% |
Income Taxes - Summary of signi
Income Taxes - Summary of significant components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Self-insurance | $ 3,051 | $ 5,673 |
Pension | 5,237 | 7,982 |
State net operating loss carryforwards | 1,960 | 5,558 |
Allowance for credit losses | 1,757 | 1,692 |
Stock-based compensation | 2,531 | 2,532 |
Inventory reserve | 3,290 | 2,868 |
Lease liability | 6,701 | 5,620 |
Valuation allowance | (990) | (865) |
All others, net | 3,427 | 2,834 |
Gross deferred tax assets | 26,964 | 33,894 |
Deferred tax liabilities: | ||
Depreciation | (51,494) | (39,253) |
Right of use asset | (6,397) | (5,834) |
Goodwill amortization | (6,546) | (6,556) |
Gross deferred tax liabilities | (64,437) | (51,643) |
Net deferred tax liabilities | $ (37,473) | $ (17,749) |
Income Taxes - Unrecognized (De
Income Taxes - Unrecognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Unrecognized Tax Benefits | ||
Balance at January 1 | $ 1,737 | $ 0 |
Additions (reductions) based on tax positions related to the current year | 197 | 1,737 |
Additions (reductions) for tax positions of prior years | (17) | 0 |
Balance at December 31 | $ 1,917 | $ 1,737 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facility (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) agreement Lender | Dec. 31, 2021 USD ($) | |
Revolving credit facility | ||
Number of additional credit lenders | Lender | 4 | |
Number of financial covenants | agreement | 3 | |
SOFR | Minimum | ||
Revolving credit facility | ||
Additional increase (decrease) in basis points. | 0.10% | |
SOFR | Maximum | ||
Revolving credit facility | ||
Additional increase (decrease) in basis points. | 0.30% | |
Amendment | ||
Revolving credit facility | ||
Minimum EBITDA | $ 50 | |
Maximum consolidated leverage ratio | 2.50% | |
Minimum debt service coverage ratio | 2% | |
Revolving credit facility | ||
Revolving credit facility | ||
Maximum borrowing capacity | $ 100 | |
Unamortized origination and other costs | 0.3 | $ 0.2 |
Outstanding debt | 0 | $ 0 |
Available credit facility | $ 82.5 | |
Revolving credit facility | Minimum | ||
Revolving credit facility | ||
Annual fee (as a percent) | 0.20% | |
Revolving credit facility | Maximum | ||
Revolving credit facility | ||
Annual fee (as a percent) | 0.30% | |
Revolving credit facility | Base Rate | Federal Funds Rate | ||
Revolving credit facility | ||
Basis points added | 0.50% | |
Revolving credit facility | Amendment | SOFR | ||
Revolving credit facility | ||
Margin rate | 25% | |
Revolving credit facility | Amendment | Eurodollar Rate | SOFR | Minimum | ||
Revolving credit facility | ||
Basis points added | 1.25% | |
Revolving credit facility | Amendment | Eurodollar Rate | SOFR | Maximum | ||
Revolving credit facility | ||
Basis points added | 2.25% | |
Revolving credit facility | Amendment | Base Rate | ||
Revolving credit facility | ||
Floor interest rate | 1% | |
Revolving credit facility | Amendment | Base Rate | Minimum | ||
Revolving credit facility | ||
Basis points added | 0.25% | |
Revolving credit facility | Amendment | Base Rate | Maximum | ||
Revolving credit facility | ||
Basis points added | 1.25% | |
Revolving credit facility | Amendment | Base Rate | SOFR | ||
Revolving credit facility | ||
Basis points added | 1% | |
Revolving credit facility | Amendment | Base Rate | SOFR | Maximum | ||
Revolving credit facility | ||
Basis points added | 1% | |
Revolving credit facility | Letter of credit | ||
Revolving credit facility | ||
Maximum borrowing capacity | $ 35 | |
Outstanding debt | 17.5 | |
Revolving credit facility | Letter of credit | Amendment | ||
Revolving credit facility | ||
Maximum borrowing capacity | 400 | |
Revolving credit facility | Swingline | ||
Revolving credit facility | ||
Maximum borrowing capacity | $ 35 |
Long-Term Debt - Interest incur
Long-Term Debt - Interest incurred (Details) - Revolving credit facility - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revolving credit facility | |||
Interest incurred | $ 246 | $ 257 | $ 276 |
Interest paid | $ 170 | $ 166 | $ 160 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI rollforward | ||
Balance | $ (20,708) | $ (17,706) |
Change during the period: | ||
Before-tax amount | (2,929) | (3,612) |
Tax benefit | 671 | 1,220 |
Pension settlement loss | 2,249 | |
Reclassification adjustment, net of taxes: | ||
Amortization of net loss | 778 | (610) |
Total activity for the period | 769 | (3,002) |
Balance | (19,939) | (20,708) |
Pension Adjustment | ||
AOCI rollforward | ||
Balance | (18,071) | (15,181) |
Change during the period: | ||
Before-tax amount | (2,934) | (3,500) |
Tax benefit | 671 | 1,220 |
Pension settlement loss | 2,249 | |
Reclassification adjustment, net of taxes: | ||
Amortization of net loss | 778 | (610) |
Total activity for the period | 764 | (2,890) |
Balance | (17,307) | (18,071) |
Foreign Currency Translation | ||
AOCI rollforward | ||
Balance | (2,637) | (2,525) |
Change during the period: | ||
Before-tax amount | 5 | (112) |
Reclassification adjustment, net of taxes: | ||
Total activity for the period | 5 | (112) |
Balance | $ (2,632) | $ (2,637) |
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, 2022 | Dec. 31, 2021 |
Assets: | ||
Equity securities | $ 305 | $ 197 |
Investments measured at net asset value | 24,175 | 31,738 |
Level 1 | ||
Assets: | ||
Equity securities | 305 | 197 |
Level 2 | ||
Assets: | ||
Equity securities | 0 | 0 |
Level 3 | ||
Assets: | ||
Equity securities | $ 0 | $ 0 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revolving credit facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Letters of credit outstanding amount | $ 0 | $ 0 |
Employee Benefit Plans - Funded
Employee Benefit Plans - Funded status of Retirement Income Plan and amounts recognized in consolidated balance sheets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation at end of year | $ 29,651,000 | $ 41,038,000 | |
Retirement Income Plan | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 41,038,000 | 41,120,000 | |
Service cost | 0 | 0 | |
Interest cost | 972,000 | 988,000 | $ 1,645,000 |
Actuarial (gain) loss | (5,258,000) | 1,365,000 | |
Benefits paid | (3,248,000) | (2,435,000) | |
Settlement | (3,853,000) | ||
Projected benefit obligation at end of year | 29,651,000 | 41,038,000 | 41,120,000 |
Change in Plan assets: | |||
Fair value of Plan assets at beginning of year | 35,339,000 | 39,068,000 | |
Actual return on Plan assets | (8,197,000) | (1,294,000) | |
Employer contribution | 0 | 0 | |
Benefits paid | (3,248,000) | (2,435,000) | |
Settlement | (3,853,000) | ||
Fair value of Plan assets at end of year | 20,041,000 | 35,339,000 | 39,068,000 |
Funded status at end of year | (9,610,000) | (5,699,000) | |
AMOUNTS (PRE-TAX) RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) CONSIST OF: | |||
Net loss | 22,476,000 | 23,468,000 | |
Prior service cost (credit) | 0 | 0 | |
Net transition obligation (asset) | 0 | 0 | $ 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax, Total | $ 22,476,000 | $ 23,468,000 |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts recognized in consolidated balance sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term pension liabilities | $ (23,106) | $ (35,376) |
Retirement Income Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Funded status of the Retirement Income Plan | (9,610) | (5,699) |
SERP liability | (23,106) | (29,677) |
Long-term pension liabilities | $ (23,106) | $ (35,376) |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of net periodic benefit cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension settlement loss | $ 22,500 | $ 2,900 | $ 2,921 | $ 4,660 | |
Retirement Income Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost | 972 | $ 988 | 1,645 | ||
Expected return on plan assets | (1,509) | (1,581) | |||
Amortization of net losses | 1,010 | 808 | 986 | ||
Pension settlement loss | 2,921 | 4,660 | |||
Net periodic benefit cost | $ 4,903 | $ 287 | $ 5,710 |
Employee Benefit Plans - Pre-ta
Employee Benefit Plans - Pre-tax amounts recognized in comprehensive loss (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Amount recognized in accumulated other comprehensive loss | $ 992 | $ (3,400) | $ 6,900 |
Retirement Income Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net loss (gain) | 2,939 | 4,169 | (1,217) |
Amortization of net loss | (1,010) | (808) | (986) |
Net transition obligation (asset) | 0 | 0 | 0 |
Settlement Loss | (2,921) | (4,660) | |
Amount recognized in accumulated other comprehensive loss | $ 992 | $ (3,361) | $ 6,863 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted average assumptions used to determine projected benefit obligation and net benefit cost (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Benefit Cost: | |||
Expected return on plan assets | 0% | ||
Retirement Income Plan | |||
Projected Benefit Obligation: | |||
Discount rate | 2.50% | ||
Rate of compensation increase | 0% | 0% | 0% |
Net Benefit Cost: | |||
Discount rate | 4.86% | 2.50% | 3.60% |
Expected return on plan assets | 0% | 4% | 4% |
Rate of compensation increase | 0% | 0% | 0% |
Employee Benefit Plans - Plan w
Employee Benefit Plans - Plan weighted average asset allocation by asset category along with target allocation for 2022 (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100% | 100% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 3.70% | 1.30% |
Cash and cash equivalents | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 0% | |
Cash and cash equivalents | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 5% | |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 96.30% | 98.70% |
Fixed income securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 15% | |
Fixed income securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100% |
Employee Benefit Plans - Plan a
Employee Benefit Plans - Plan assets using fair value hierarchy (Details) - Retirement Income Plan - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Investments measured at Net Asset Value | $ 0 | |
Investments at Fair Value | 20,041 | $ 35,339 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 740 | 444 |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 19,301 | 34,895 |
Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 20,041 | 35,339 |
Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 740 | 444 |
Level 1 | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | |
Level 1 | Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 740 | 444 |
Level 2 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 0 | |
Level 2 | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | 19,301 | 34,895 |
Level 2 | Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total Assets in the Fair Value Hierarchy | $ 19,301 | $ 34,895 |
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, 2022 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 29,888 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028-2032 | $ 0 |
Employee Benefit Plans - SERP (
Employee Benefit Plans - SERP (Details) - USD ($) | 12 Months Ended | |||
Jan. 02, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected return on plan assets | 0% | |||
Proceeds from Life Insurance Policy | $ 1,566,000 | |||
Unrealized gain/loss due to change in fair value of SERP liabilities | $ (764,000) | $ 2,890,000 | (5,727,000) | |
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cash contribution | $ 6,000,000 | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cash contribution | $ 10,000,000 | |||
Non-qualified Supplemental Retirement Plan ("SERP") | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Variable life insurance policies investment amount | 45,400,000 | 60,700,000 | ||
Fair value of plan assets | 24,200,000 | 31,700,000 | ||
Trading gains (losses), net | $ (4,400,000) | $ 2,600,000 | 2,600,000 | |
Tax-free gains related to life insurance policy claims | $ 891,000 | |||
Retirement Income Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected return on plan assets | 0% | 4% | 4% | |
Employer contribution | $ 0 | $ 0 | ||
Fair value of plan assets | 20,041,000 | 35,339,000 | $ 39,068,000 | |
SERP Liabilities | $ 29,651,000 | $ 41,038,000 | $ 41,120,000 |
Employee Benefit Plans - 401(k)
Employee Benefit Plans - 401(k) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefit Plans | |||
Minimum percentage of annual contribution per employee | 1% | ||
Maximum percentage of annual contribution per employee | 25% | ||
Percentage of employer matching contribution | 50% | ||
Annual compensation | $ 1 | ||
Threshold limit percentage of employee compensation | 3% | 3% | |
Percentage of matching contributions | 100% | ||
Minimum number of service years for employees to be fully vested | 2 years | ||
Employer contribution | $ 9,800,000 | $ 6,900,000 | $ 5,600,000 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Incentive Plans (Details) - Stock Incentive Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock incentive plans | |||
Common stock reserved for future issuance | 8,000,000 | ||
Period of stock options and restricted stock issued | 10 years | ||
Number of shares available for grant | 2,046,199 | 3,194,060 | |
Pre-tax stock-based employee compensation expense | $ 6.4 | $ 6.6 | $ 8.7 |
After tax stock-based employee compensation expense | $ 4.9 | $ 5.1 | $ 6.6 |
Employee Benefit Plans - Stoc_2
Employee Benefit Plans - Stock Options, Restricted Stock and Other Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock incentive plans | |||
Detrimental tax adjustments | $ 640,000 | $ 1,164,000 | |
Restricted Shares | |||
Stock incentive plans | |||
Weighted average grant date fair value (in dollars per share) | $ 6.72 | $ 3.87 | $ 4.59 |
Total fair value of shares vested | $ 2,900,000 | $ 1,800,000 | $ 3,500,000 |
Unrecognized compensation cost related to non-vested restricted shares | $ 13,800,000 | ||
Period for recognition of compensation cost related to non-vested restricted shares | 3 years 3 months 18 days | ||
Time Lapse Restricted Shares 2023 | |||
Stock incentive plans | |||
Vesting period | 4 years | ||
Time Lapse Restricted Shares 2022 | |||
Stock incentive plans | |||
Vesting period | 5 years | ||
Time Lapse Restricted Shares Prior to 2022 | |||
Stock incentive plans | |||
Stock based compensation award, vesting percentage | 0.20% |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in non-vested restricted shares (Details) - Restricted Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares | |||
Non-vested shares at Beginning | 2,619,691 | 2,235,179 | |
Granted | 1,254,276 | 1,010,700 | |
Vested | (510,084) | (434,208) | |
Forfeited | (115,155) | (191,980) | |
Non-vested shares at Ending | 3,248,728 | 2,619,691 | 2,235,179 |
Weighted Average Grant-Date Fair Value | |||
Non-vested shares at Beginning | $ 7.89 | $ 6.81 | |
Granted | 6.72 | 3.87 | $ 4.59 |
Vested | 11.86 | 14.96 | |
Forfeited | 6.29 | 7.71 | |
Non-vested shares at Ending | $ 6.87 | $ 7.89 | $ 6.81 |
Related Party Transactions - Ma
Related Party Transactions - Marine (Details) - Marine Products - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Transition Support Services Agreement [Member] | |||
Related party transactions: | |||
Related party charges | $ 922 | $ 867 | $ 846 |
Due from related party, current | $ 26 | $ 87 | |
Chaparral Boats Inc | |||
Related party transactions: | |||
Ownership percentage | 100% |
Related Party Transactions - Ot
Related Party Transactions - Other (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related party transactions: | ||||
Rent and allocable fixed cost for corporate aircraft | $ 1,600,000 | $ 1,400,000 | ||
Rollins, Inc. | ||||
Related party transactions: | ||||
Related party purchases | $ 71,000 | 108,000 | $ 104,000 | |
Termination notice | 6 months | |||
Chief Executive Officer | Corporate Aircraft | ||||
Related party transactions: | ||||
Ownership percentage | 50% | |||
255 RC, LLC | ||||
Related party transactions: | ||||
Rent and allocable fixed cost for corporate aircraft | $ 200,000 | 200,000 | 200,000 | |
Undistributed earnings | 580,000 | |||
255 RC, LLC | Corporate Aircraft | ||||
Related party transactions: | ||||
Ownership percentage | 50% | |||
Marine Products | Corporate Aircraft | ||||
Related party transactions: | ||||
Ownership percentage | 50% | |||
255 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 | $ 1,800,000 | $ 1,300,000 | $ 1,000,000 |
Business Segment and Entity W_3
Business Segment and Entity Wide Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment information: | |||
Total revenues | $ 1,601,762 | $ 864,929 | $ 598,302 |
Technical Services | |||
Segment information: | |||
Total revenues | 1,516,363 | 815,046 | 556,488 |
Technical Services | Pressure Pumping | |||
Segment information: | |||
Total revenues | 846,939 | 369,028 | 221,597 |
Technical Services | Downhole Tools | |||
Segment information: | |||
Total revenues | 374,081 | 247,019 | 195,052 |
Technical Services | Coiled Tubing | |||
Segment information: | |||
Total revenues | 140,889 | 88,946 | 51,616 |
Technical Services | Nitrogen | |||
Segment information: | |||
Total revenues | 39,596 | 38,773 | 30,213 |
Technical Services | Snubbing | |||
Segment information: | |||
Total revenues | 28,028 | 15,408 | 8,016 |
Technical Services | All other | |||
Segment information: | |||
Total revenues | 86,830 | 55,872 | 49,994 |
Support Services | |||
Segment information: | |||
Total revenues | 85,399 | 49,883 | 41,814 |
Support Services | Rental Tools | |||
Segment information: | |||
Total revenues | 62,780 | 32,167 | 25,280 |
Support Services | All other | |||
Segment information: | |||
Total revenues | $ 22,619 | $ 17,716 | $ 16,534 |
Business Segment and Entity W_4
Business Segment and Entity Wide Disclosures - Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||||
Revenues | $ 1,601,762 | $ 864,929 | $ 598,302 | ||
Operating income (loss): | |||||
Operating profit (loss) | 287,940 | 16,291 | (309,635) | ||
Capital expenditures | 139,552 | 67,645 | 65,065 | ||
Depreciation and amortization | 83,017 | 72,686 | 95,530 | ||
Identifiable assets | $ 1,129,013 | 1,129,013 | 864,365 | 790,505 | |
Pension settlement loss | $ 22,500 | 2,900 | 2,921 | 4,660 | |
Technical Services | |||||
Revenues: | |||||
Revenues | 1,516,363 | 815,046 | 556,488 | ||
Operating income (loss): | |||||
Operating profit (loss) | 281,622 | 24,434 | (82,525) | ||
Capital expenditures | 126,327 | 59,316 | 54,327 | ||
Depreciation and amortization | 73,016 | 62,667 | 80,877 | ||
Identifiable assets | 823,434 | 823,434 | 580,406 | 499,764 | |
Pension settlement loss | 212,292 | ||||
Support Services | |||||
Revenues: | |||||
Revenues | 85,399 | 49,883 | 41,814 | ||
Operating income (loss): | |||||
Operating profit (loss) | 18,095 | (5,725) | (6,714) | ||
Capital expenditures | 12,320 | 7,012 | 10,224 | ||
Depreciation and amortization | 9,840 | 9,752 | 14,377 | ||
Identifiable assets | 80,104 | 80,104 | 69,345 | 64,457 | |
Pension Settlement, Impairment and other charges | |||||
Operating income (loss): | |||||
Operating profit (loss) | (2,921) | (217,493) | |||
Corporate | |||||
Operating income (loss): | |||||
Operating profit (loss) | (17,660) | (13,300) | (12,426) | ||
Capital expenditures | 905 | 1,317 | 514 | ||
Depreciation and amortization | 161 | 267 | 276 | ||
Identifiable assets | $ 225,475 | 225,475 | 214,614 | 226,284 | |
Gain on disposition of assets, net. | |||||
Operating income (loss): | |||||
Operating profit (loss) | $ 8,804 | $ 10,882 | $ 9,523 |
Business Segment and Entity W_5
Business Segment and Entity Wide Disclosures - Geographic (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment information: | |||
Total revenues | $ 1,601,762 | $ 864,929 | $ 598,302 |
United States | |||
Segment information: | |||
Total revenues | 1,569,160 | 833,686 | 562,390 |
International | |||
Segment information: | |||
Total revenues | $ 32,602 | $ 31,243 | $ 35,912 |
Leases - Assets and liabilities
Leases - Assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Finance lease right-of-use assets | $ 20,327 | |
Operating lease right-of-use assets | $ 28,864 | 24,572 |
Liabilities | ||
Current portion of finance lease | 20,194 | |
Current portion of operating lease liabilities | 10,728 | 6,387 |
Long-term operating lease liabilities | 19,517 | 19,719 |
Total operating lease liabilities | 30,245 | 26,106 |
ASU No. 2018-02, Leases (Topic 842) | ||
Liabilities | ||
Total operating lease liabilities | $ 30,246 | $ 26,106 |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease cost | |||
Amortization of leased assets | $ 3,390 | $ 1,452 | |
Interest on lease liabilities | 283 | 116 | |
Total finance lease cost | 3,673 | 1,568 | |
Operating lease cost | 9,615 | 7,580 | $ 8,373 |
Short-term lease cost | 9,192 | 3,626 | 2,577 |
Variable lease cost | 647 | 772 | 624 |
Sublease income | (1,021) | (831) | (295) |
Total operating lease cost | 18,433 | 11,147 | 11,279 |
Total lease cost | $ 22,106 | $ 12,715 | $ 11,279 |
Leases - Other information (Det
Leases - Other information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases. | ||
Cash paid for amounts included in the measurement of lease liabilities - operating leases (in thousands) | $ 8,742 | $ 10,151 |
ROU assets obtained in exchange for operating lease liabilities (in thousands) | $ 12,882 | 5,974 |
ROU assets obtained in exchange for finance lease liabilities (in thousands) | $ 21,778 | |
Weighted average remaining lease term - finance lease (months) | 8 months | |
Weighted average remaining lease term - operating leases (years) | 5 years 1 month 20 days | 5 years 4 months 28 days |
Weighted average discount rate - finance lease | 1.68% | |
Weighted average discount rate - operating leases | 3.93% | 2.29% |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity | ||
Total operating lease liabilities | $ 30,245 | $ 26,106 |
ASU No. 2018-02, Leases (Topic 842) | ||
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity | ||
2022 | 7,015 | |
2023 | 12,091 | 4,483 |
2024 | 6,164 | 3,619 |
2025 | 4,001 | 2,667 |
2026 | 3,380 | 2,421 |
2027 | 2,615 | |
Thereafter | 6,618 | 7,742 |
Total lease payments | 34,869 | 27,947 |
Less: Amounts representing interest | (4,623) | (1,841) |
Total operating lease liabilities | $ 30,246 | $ 26,106 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Credit loss allowance for accounts receivable | |||
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | $ 6,765 | $ 4,815 | $ 5,181 |
Charged to Costs and Expenses | 2,029 | 4,019 | 342 |
Net (Deductions) Recoveries | (1,716) | (2,069) | (708) |
Balance at End of Period | 7,078 | 6,765 | 4,815 |
Deferred tax asset valuation allowance | |||
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | 865 | 490 | 471 |
Net (Deductions) Recoveries | 125 | 375 | 19 |
Balance at End of Period | 990 | 865 | 490 |
Reserve for obsolete or slow moving inventory | |||
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | 13,236 | 13,829 | 10,467 |
Charged to Costs and Expenses | 4,080 | 5,016 | 5,826 |
Net (Deductions) Recoveries | (1,942) | (5,609) | (2,464) |
Balance at End of Period | $ 15,374 | $ 13,236 | $ 13,829 |