Severance and Other Charges

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

During 2015, we executed a workforce reduction plan as part of our cost savings initiatives due to depressed oil and gas prices. The reduction was communicated to affected employees on various dates. Also, the then Chairman of the board of supervisory directors (who also held the role of Executive Chairman of our company) transitioned to a non-executive director of the supervisory board effective as of December 31, 2015. During 2016, we continued to take steps to adjust our workforce to meet the depressed demand in the industry and identified certain equipment that, based on its specifications and current market conditions, no longer has economic utility and therefore has reached the end of its useful life. Accordingly, management has decided to retire this equipment and has recorded a charge of $29.9 million in Severance and Other Charges.

During the years ended December 31, 2016 and 2015, we incurred $16.5 million and $35.5 million, respectively, in severance expense. We had no severance expense for the year ended December 31, 2014. At December 31, 2016, our outstanding accrual was approximately $6.2 million and included severance payments and other employee-related termination costs.

Below is a reconciliation of the beginning and ending liability balance (in thousands):



	International Services			U.S. Services			Tubular Sales			Total
Beginning balance, December 31, 2015	$	78		$	22,166		$	—		$	22,244
Additions for costs expensed	12,187			33,661			558			46,406
Other adjustments	—			(687		)	(32		)	(719		)
Severance and other payments	(7,519		)	(23,855		)	(526		)	(31,900		)
Asset retirement	(282		)	(29,599		)	—			(29,881		)
Ending balance, December 31, 2016	$	4,464		$	1,686		$	—		$	6,150

We expect to pay a significant portion of the remaining liability in the first quarter of 2017. We had no staff reductions in our Blackhawk segment.