XML 27 R9.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Discontinued Operations | 3 Months Ended
--- | ---
Mar. 31, 2014
Discontinued Operations |
Discontinued Operations | 2. Discontinued Operations In May 2009, the Venezuelan government enacted a law that reserves to the State of Venezuela certain assets and services related to hydrocarbon activities, which included substantially all of our assets and services in Venezuela. The law provides that the reserved activities are to be performed by the State, by the State-owned oil company, Petroleos de Venezuela S.A. (“PDVSA”), or its affiliates, or through mixed companies under the control of PDVSA or its affiliates. The law authorizes PDVSA or its affiliates to take possession of the assets and take over control of those operations related to the reserved activities as a step prior to the commencement of an expropriation process, and permits the national executive of Venezuela to decree the total or partial expropriation of shares or assets of companies performing those services. In June 2009, PDVSA commenced taking possession of our assets and operations in a number of our locations in Venezuela and by the end of the second quarter of 2009, PDVSA had assumed control over substantially all of our assets and operations in Venezuela. The expropriation of our business in Venezuela meets the criteria established for recognition as discontinued operations under GAAP. Therefore, our Venezuelan contract operations business is reflected as discontinued operations in our condensed consolidated financial statements. In March 2010, our Spanish subsidiary filed a request for the institution of an arbitration proceeding against Venezuela with the International Centre for Settlement of Investment Disputes (“ICSID”) related to the seized assets and investments under the agreement between Spain and Venezuela for the Reciprocal Promotion and Protection of Investments and under Venezuelan law. The arbitration hearing occurred in July 2012. In August 2012, our Venezuelan subsidiary sold its previously nationalized assets to PDVSA Gas, S.A. (“PDVSA Gas”) for a purchase price of approximately $441.7 million. We received installment payments, including an annual charge, totaling $17.8 million during the three months ended March 31, 2014 and $34.3 million during the three months ended March 31, 2013, the latter of which included a prepayment of $17.2 million for the second quarter 2013 installment payment. The remaining principal amount due to us of approximately $166 million as of March 31, 2014, is payable in quarterly cash installments through the third quarter of 2016. We have not recognized amounts payable to us by PDVSA Gas as a receivable and will therefore recognize quarterly payments received in the future as income from discontinued operations in the periods such payments are received. The proceeds from the sale of the assets are not subject to Venezuelan national taxes due to an exemption allowed under the Venezuelan Reserve Law applicable to expropriation settlements. In addition, and in connection with the sale, we and the Venezuelan government agreed to waive rights to assert certain claims against each other. In connection with the sale of these assets, we have agreed to suspend the arbitration proceeding previously filed by our Spanish subsidiary against Venezuela pending payment in full by PDVSA Gas of the purchase price for these nationalized assets. In June 2012, we committed to a plan to sell our contract operations and aftermarket services businesses in Canada (“Canadian Operations”) as part of our continued emphasis on simplification and focus on our core businesses. In July 2013, we completed the sale of our Canadian Operations. Our Canadian Operations are reflected as discontinued operations in our condensed consolidated financial statements. These operations were previously included in our North American contract operations and aftermarket services business segments. In connection with the planned disposition, we recorded impairment charges totaling $2.1 million during the three months ended March 31, 2013. The impairment charges are reflected in income (loss) from discontinued operations, net of tax, in our condensed consolidated statements of operations. In December 2013, we abandoned our contract water treatment business as part of our continued emphasis on simplification and focus on our core businesses. The abandonment of this business meets the criteria established for recognition as discontinued operations under GAAP. Therefore, our contract water treatment business is reflected as discontinued operations in our condensed consolidated financial statements. This business was previously included in our North American contract operations business segment. The following table summarizes the operating results of discontinued operations (in thousands):
|  | Three Months Ended March 31, 2014 |  | Three Months Ended March 31, 2013 |
|  | Venezuela |  | Contract Water Treatment Business |  | Total |  | Venezuela |  | Canada |  | Contract Water Treatment Business |  | Total |
Revenue |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 10,828 |  | $ | 1,481 |  | $ | 12,309 |
Expenses and selling, general and administrative |  | 124 |  | 73 |  | 197 |  | 227 |  | 11,039 |  | 1,048 |  | 12,314 |
Loss (recovery) attributable to expropriation and impairments |  | (16,421 | ) | — |  | (16,421 | ) | (33,199 | ) | 2,076 |  | — |  | (31,123 | )
Other (income) loss, net |  | (2,386 | ) | (147 | ) | (2,533 | ) | (2,592 | ) | 34 |  | (1 | ) | (2,559 | )
Provision for (benefit from) income taxes |  | — |  | 30 |  | 30 |  | — |  | (7 | ) | 168 |  | 161 |
Income (loss) from discontinued operations, net of tax |  | $ | 18,683 |  | $ | 44 |  | $ | 18,727 |  | $ | 35,564 |  | $ | (2,314 | ) | $ | 266 |  | $ | 33,516 |
The following table summarizes the balance sheet data for discontinued operations (in thousands):
|  | March 31, 2014 |  | December 31, 2013 |
|  | Venezuela |  | Contract Water Treatment Business |  | Total |  | Venezuela |  | Contract Water Treatment Business |  | Total |
Cash |  | $ | 69 |  | $ | — |  | $ | 69 |  | $ | 74 |  | $ | — |  | $ | 74 |
Accounts receivable |  | 5 |  | 212 |  | 217 |  | 1 |  | 287 |  | 288 |
Inventory |  | — |  | 50 |  | 50 |  | — |  | 50 |  | 50 |
Other current assets |  | 8 |  | 14 |  | 22 |  | 16 |  | 14 |  | 30 |
Total current assets associated with discontinued operations |  | 82 |  | 276 |  | 358 |  | 91 |  | 351 |  | 442 |
Property, plant and equipment |  | — |  | 529 |  | 529 |  | — |  | 560 |  | 560 |
Deferred tax assets |  | — |  | 19,690 |  | 19,690 |  | — |  | 20,358 |  | 20,358 |
Total assets associated with discontinued operations |  | $ | 82 |  | $ | 20,495 |  | $ | 20,577 |  | $ | 91 |  | $ | 21,269 |  | $ | 21,360 |
Accounts payable |  | $ | 234 |  | $ | — |  | $ | 234 |  | $ | 366 |  | $ | 2 |  | $ | 368 |
Accrued liabilities |  | 1,247 |  | 632 |  | 1,879 |  | 1,998 |  | 867 |  | 2,865 |
Total current liabilities associated with discontinued operations |  | 1,481 |  | 632 |  | 2,113 |  | 2,364 |  | 869 |  | 3,233 |
Other long-term liabilities |  | 344 |  | — |  | 344 |  | 447 |  | — |  | 447 |
Total liabilities associated with discontinued operations |  | $ | 1,825 |  | $ | 632 |  | $ | 2,457 |  | $ | 2,811 |  | $ | 869 |  | $ | 3,680 |

X
- Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration