Severance and Other Charges

6 Months Ended

Jun. 30, 2015

Restructuring and Related Activities [Abstract]

We are facing a challenging year in the oilfield industry due to the dramatic drop in oil prices. We continue to develop and implement cost savings steps in response to these difficult market conditions. On March 31, 2015, we announced a plan to reduce our workforce by approximately 400 to 600 employees. This action was completed in the second quarter at the higher end of the range guidance. As of June 30, 2015, we expect to incur total costs of $13.0 million, which is reflected in our consolidated statements of income under severance and other charges. The $13.0 million is inclusive of accelerated stock-based compensation expense of $1.0 million and $2.3 million for the three and six months ended June 30, 2015, respectively, recognized as a component of equity. Below is a reconciliation of the beginning and ending liability balance (in thousands):



	International Services			U.S. Services			Tubular Sales			Total
Beginning balance, March 31, 2015	$	372		$	10,743		$	858		$	11,973
Increase in accrual	—			—			27			27
Decrease in accrual	—			(1,345		)				(1,345		)
Severance and other payments	(187		)	(2,757		)	(885		)	(3,829		)
Ending balance, June 30, 2015	$	185		$	6,641		$	—		$	6,826

We expect to pay the remaining liability by November 2015.