XML 23 R12.htm IDEA: XBRL DOCUMENT

Note 5 - Property, Plant and Equipment

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note 5—Property, Plant and Equipment

The following is a summary of property, plant and equipment at September 30, 2021, and December 31, 2020, (in thousands):

		*Estimated*
		*Useful Lives*			*September 30,*				*December 31,*
		*in Years*			*2021*				*2020*
Land		—			$	30,892			$	30,869
Land improvements		8 - 15				7,621				7,620
Buildings and improvements		13 - 39				113,196				121,105
Rental machinery and equipment		2 - 7				906,859				897,398
Machinery and equipment - other		7				51,961				54,842
Furniture, fixtures and computers		3 - 5				20,040				16,928
Automobiles and other vehicles		5				25,704				25,948
Leasehold improvements		7 - 15, or lease term if shorter				12,536				12,773
Construction in progress - machinery and equipment		—				10,755				24,381
						1,179,564				1,191,864
Less: Accumulated depreciation						(950,570	)			(919,157	)
Total property, plant and equipment, net					$	228,994			$	272,707

During the nine months ended September 30, 2020, Frank's recorded fixed asset impairment charges of $15.6 million primarily associated with construction in progress in the Cementing Equipment segment, which is included in severance and other charges, net on the condensed consolidated statements of operations. During the first quarter of 2020, the results of Frank's test for impairment of goodwill in the Cementing Equipment segment as a result of negative market indicators was a triggering event that indicated that Frank's long-lived tangible assets in this segment were impaired. Impairment testing performed in the first quarter of 2020 resulted in the determination that certain long-lived assets were not recoverable and that the estimated fair value was below the carrying value. Please see Note 15—Severance and Other Charges, net for additional details. No impairments associated with held for use assets were recognized during the three and nine months ended September 30, 2021.

During the first quarter of 2021, a building with a net book value of $1.9 million was sold, resulting in a gain of $0.2 million. In addition, a building with a net book value of $2.6 million met the criteria to be classified as held for sale and was reclassified from property, plant and equipment to assets held for sale on Frank's condensed consolidated balance sheet. During the second quarter of 2021, Frank's sold a building classified as held for sale for $1.8 million and recorded a gain of $1.3 million. During the third quarter of 2021, a building with a net book value of $5.0 million met the criteria to be classified as held for sale and was reclassified from property, plant and equipment to assets held for sale on Frank's condensed consolidated balance sheet.

During the second quarter of 2020, Frank's sold a building classified as held for sale for $5.4 million and recorded a gain of $0.6 million.

The following table presents the depreciation and amortization expense associated with each line item for the three and nine months ended September 30, 2021 and 2020 (in thousands):

		*Three Months Ended*								*Nine Months Ended*
		*September 30,*								*September 30,*
		*2021*				*2020*				*2021*				*2020*
Services		$	12,471			$	14,582			$	40,626			$	47,616
Products			114				144				378				567
General and administrative expenses			1,507				1,224				4,527				4,737
Total		$	14,092			$	15,950			$	45,531			$	52,920