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Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
Reporting Segments

Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker ("CODM") in deciding how to allocate resources and assess performance. We are comprised of three reportable segments: Tubular Running Services (“TRS”) segment, Tubulars segment and Cementing Equipment (“CE”) segment.

The TRS segment provides tubular running services globally. Internationally, the TRS segment operates in the majority of the offshore oil and gas markets and also in several onshore regions with operations in approximately 50 countries on six continents. In the U.S., the TRS segment provides services in the active onshore oil and gas drilling regions, including the Permian Basin, Eagle Ford Shale, Haynesville Shale, Marcellus Shale and Utica Shale, and in the U.S. Gulf of Mexico. Our customers are primarily large exploration and production companies, including international oil and gas companies, national oil and gas companies, major independents and other oilfield service companies.

The Tubulars segment designs, manufactures and distributes connectors and casing attachments for large outside diameter (“OD”) heavy wall pipe. Additionally, the Tubulars segment sells large OD pipe originally manufactured by various pipe mills, as plain end or fully fabricated with proprietary welded or thread-direct connector solutions and provides specialized fabrication and welding services in support of offshore deepwater projects, including drilling and production risers, flowlines and pipeline end terminations, as well as long-length tubular assemblies up to 400 feet in length. The Tubulars segment also specializes in the development, manufacture and supply of proprietary drilling tool solutions that focus on improving drilling productivity through eliminating or mitigating traditional drilling operational risks.

The CE segment provides specialty equipment to enhance the safety and efficiency of rig operations. It provides specialized equipment, services and products utilized in the construction of the wellbore in both onshore
and offshore environments. The product portfolio includes casing accessories that serve to improve the installation of casing, centralization and wellbore zonal isolation, as well as enhance cementing operations through advance wiper plug and float equipment technology. The CE segment also provides services and products utilized in the construction, completion or abandonment of the wellbore. These solutions are primarily used to isolate portions of the wellbore through the setting of barriers downhole to allow for rig evacuation in case of inclement weather, maintenance work on other rig equipment, squeeze cementing, pressure testing within the wellbore and temporary and permanent abandonments. These offerings improve operational efficiencies and limit non-productive time if unscheduled events are encountered at the wellsite.

Revenue

We disaggregate our revenue from contracts with customers by geography for each of our segments, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Intersegment revenue is immaterial.

The following tables presents our revenue disaggregated by geography, based on the location where our services were provided and products sold (in thousands):
Three Months Ended June 30, 2020
Tubular Running ServicesTubularsCementing EquipmentConsolidated
United States$18,874  $4,990  $7,284  $31,148  
International43,453  3,751  7,749  54,953  
Total Revenue$62,327  $8,741  $15,033  $86,101  
Three Months Ended June 30, 2019
Tubular Running ServicesTubularsCementing EquipmentConsolidated
United States$41,408  $18,387  $21,341  $81,136  
International65,207  3,947  5,364  74,518  
Total Revenue$106,615  $22,334  $26,705  $155,654  
Six Months Ended June 30, 2020
Tubular Running ServicesTubularsCementing EquipmentConsolidated
United States$49,043  $14,787  $20,815  $84,645  
International102,781  6,496  15,671  124,948  
Total Revenue$151,824  $21,283  $36,486  $209,593  
Six Months Ended June 30, 2019
Tubular Running ServicesTubularsCementing EquipmentConsolidated
United States$79,563  $35,015  $42,919  $157,497  
International125,131  5,976  11,458  142,565  
Total Revenue$204,694  $40,991  $54,377  $300,062  
        Revenue by geographic area were as follows (in thousands):
Three Months EndedSix Months Ended
June 30,June 30,
2020201920202019
United States$31,148  $81,136  $84,645  $157,497  
Europe/Middle East/Africa21,886  38,655  57,320  75,055  
Latin America20,077  19,895  41,002  37,339  
Asia Pacific8,734  10,077  18,303  18,026  
Other countries4,256  5,891  8,323  12,145  
Total Revenue$86,101  $155,654  $209,593  $300,062  

Adjusted EBITDA

        We define Adjusted EBITDA as net income (loss) before interest income, net, depreciation and amortization, income tax benefit or expense, asset impairments, gain or loss on disposal of assets, foreign currency gain or loss, equity-based compensation, unrealized and realized gain or loss, net severance and other charges, other non-cash adjustments and other charges. We review Adjusted EBITDA on both a consolidated basis and on a segment basis. We use Adjusted EBITDA to assess our financial performance because it allows us to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization), income tax, foreign currency exchange rates and other charges and credits. Adjusted EBITDA has limitations as an analytical tool and should not be considered as an alternative to net income (loss), operating income (loss), cash flow from operating activities or any other measure of financial performance presented in accordance with GAAP.

        Our CODM uses Adjusted EBITDA as the primary measure of segment reporting performance.
        The following table presents a reconciliation of Segment Adjusted EBITDA to net loss (in thousands):
Three Months EndedSix Months Ended
June 30,June 30,
2020201920202019
Segment Adjusted EBITDA:
Tubular Running Services$4,049  $25,400  $17,354  $43,135  
Tubulars681  3,934  2,077  8,046  
Cementing Equipment886  3,029  3,430  6,823  
Corporate (1)
(7,308) (15,200) (17,494) (31,183) 
(1,692) 17,163  5,367  26,821  
Goodwill impairment
—  —  (57,146) —  
Severance and other charges, net
(5,162) (815) (25,887) (1,270) 
Interest income, net178  426  711  1,194  
Depreciation and amortization
(17,252) (23,913) (36,970) (49,155) 
Income tax (expense) benefit(8,986) (3,300) 6,577  (13,073) 
Gain (loss) on disposal of assets650  (154) 590  (381) 
Foreign currency gain (loss)1,693  (661) (8,199) (178) 
TRA related adjustments—  220  —  220  
Charges and credits (2)
(3,674) (4,126) (5,266) (7,625) 
Net loss$(34,245) $(15,160) $(120,223) $(43,447) 
(1) Includes certain expenses not attributable to a particular segment, such as costs related to support functions and corporate executives.
(2) Comprised of Equity-based compensation expense (for the three months ended June 30, 2020 and 2019: $3,515 and $3,017, respectively, and for the six months ended June 30, 2020 and 2019: $5,661 and $5,591, respectively), Unrealized and realized gains (losses) (for the three months ended June 30, 2020 and 2019: $(111) and $383, respectively, and for the six months ended June 30, 2020 and 2019: $1,593 and $691, respectively) and Investigation-related matters (for the three months ended June 30, 2020 and 2019: $48 and $1,492, respectively, and for the six months ended June 30, 2020 and 2019: $1,198 and $2,725, respectively).
        The following tables set forth certain financial information with respect to our reportable segments (in thousands):
Tubular Running ServicesTubularsCementing EquipmentCorporateTotal
Three Months Ended June 30, 2020
Revenue from external customers
$62,327  $8,741  $15,033  $—  $86,101  
Operating income (loss)(13,252) (184) (2,486) (11,364) (27,286) 
Adjusted EBITDA4,049  681  886  (7,308) *
Three Months Ended June 30, 2019
Revenue from external customers
$106,615  $22,334  $26,705  $—  $155,654  
Operating income (loss)8,700  3,089  (2,310) (21,993) (12,514) 
Adjusted EBITDA25,400  3,934  3,029  (15,200) *
Six Months Ended June 30, 2020
Revenue from external customers
$151,824  $21,283  $36,486  $—  $209,593  
Operating income (loss)(14,567) 467  (79,984) (27,410) (121,494) 
Adjusted EBITDA17,354  2,077  3,430  (17,494) *
Six Months Ended June 30, 2019
Revenue from external customers
$204,694  $40,991  $54,377  $—  $300,062  
Operating income (loss)8,841  6,283  (3,134) (44,798) (32,808) 
Adjusted EBITDA43,135  8,046  6,823  (31,183) *
* Non-GAAP financial measure not disclosed.