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Note 15 - Severance and Other Charges, Net
 6 Months Ended
Jun. 30, 2021
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]

Note 15—Severance and Other Charges, net

 

We recognize severance and other charges for costs associated with workforce reductions, facility closures, exiting or reducing our footprint in certain countries, asset impairments and the retirement of excess machinery and equipment based on economic utility. As a result of the downturn in the industry and its impact on our business outlook, we continue to take actions to adjust our operations and cost structure to reflect current and expected activity levels. Depending on future market conditions, further actions may be necessary to adjust our operations, which may result in additional charges.

 

Our severance and other charges, net are summarized below (in thousands):

 

  

Three Months Ended

 

Six Months Ended

  

June 30,

 

June 30,

  

2021

 

2020

 

2021

 

2020

Severance and other costs

 $845 $4,794 $1,110 $5,332

Mergers and acquisition expense

 2,554 — 9,358 —

Fixed asset impairments and retirements

 — — 171 15,479

Inventory write-offs

 — 368 136 368

Intangible asset impairments

 — — — 4,708
  $3,399 $5,162 $10,775 $25,887

 

Severance and other costs: We incurred costs due to a continued effort to adjust our cost base, including reducing our workforce to meet the depressed demand in the industry.

 

Mergers and acquisition expense: During the three and six months ended June 30, 2021, we incurred $2.6 million and $9.4 million of costs, respectively, primarily related to legal and consulting services associated with the pending merger with Expro.

 

Fixed asset impairments and retirements: During the six months ended June 30, 2020, we recognized $15.5 million primarily associated with construction in progress in our Cementing Equipment segment. During the six months ended June 30, 2021, we recognized a $0.2 million impairment associated our with construction in progress in our Tubular Running Services segment. Please see Note 5—Property, Plant and Equipment for additional details.

 

Inventory write-offs: During the six months ended June 30, 2020, certain inventories in our Cementing Equipment segment were determined to have costs that exceeded their net realizable values, resulting in a charge of $0.4 million. During the six months ended June 30, 2021, certain inventories in our Tubular Running Services segment were determined to have costs that exceeded their net realizable values, resulting in a charge of $0.2 million.

 

Intangible asset impairments: During the six months ended June 30, 2020, we identified certain intangible assets where the carrying value exceeded the fair value in the Cementing Equipment segment, resulting in an impairment charge of $4.7 million. No impairment was recorded during the three and six months ended June 30, 2021. Please see Note 6—Goodwill and Intangible Assets for additional details.