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Market Risks and Derivative Hedge Contracts | 3 Months Ended
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Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Hedge Contracts | FAIR VALUE MEASUREMENTS Financial Instruments CCLP Preferred Units The CCLP Preferred Units are valued using a lattice modeling technique that, among a number of lattice structures, includes significant unobservable items (a Level 3 fair value measurement). These unobservable items include (i) the volatility of the trading price of CCLP's common units compared to a volatility analysis of equity prices of CCLP's comparable peer companies, (ii) a yield analysis that utilizes market information related to the debt yields of comparable peer companies, and (iii) a future conversion price analysis. During the three month periods ended March 31, 2019 and March 31, 2018, the changes in the fair value of the CCLP Preferred Units resulted in $1.2 million and $1.4 million being charged to earnings, respectively, in the consolidated statements of operations. Warrants The Warrants are valued using a Black Scholes option valuation model that includes implied volatility of the trading price (a Level 3 fair value measurement). During the three month periods ended March 31, 2019 and March 31, 2018, the changes in the fair value of the Warrants liability resulted in $0.4 million being charged to earnings and $2.0 million being credited to earnings, respectively, in the consolidated statement of operations. Contingent Consideration The fair value of the contingent consideration associated with the February 2018 acquisition of SwiftWater Energy Services, LLC ("SwiftWater") is based on a probability simulation utilizing forecasted revenues and EBITDA of the water management business of SwiftWater and all of our pre-existing operations in the Permian Basin (a Level 3 fair value measurement). At March 31, 2019, the estimated fair value for the liability associated with the contingent purchase price consideration was $10.6 million, resulting in $0.4 million being credited to other (income) expense, net, during the three months ended March 31, 2019. In addition, as part of the purchase of JRGO Energy Services LLC ("JRGO") during December 2018, the sellers have the right to receive contingent consideration of up to $1.5 million to be paid during 2019, based on JRGO's performance during the fourth quarter of 2018. Approximately $11.5 million of the $12.1 million combined contingent consideration liability is based on actual 2018 performance and was paid in April 2019, with the remaining being a fair value measurement based on a forecast of SwiftWater 2019 revenues and EBITDA. Derivative Contracts We and CCLP each enter into short term foreign currency forward derivative contracts with third parties as part of a program designed to mitigate the currency exchange rate risk exposure on selected transactions of certain foreign subsidiaries. As of March 31, 2019, we and CCLP had the following foreign currency derivative contracts outstanding relating to portions of our foreign operations:
Derivative Contracts |  | US Dollar Notional Amount |  | Traded Exchange Rate |  | Settlement Date
|  | (In Thousands) |  |  |  |
Forward purchase Euro |  | $ | 7,245 |  |  | 1.14 |  | 6/19/2019
Forward sale Euro |  | 1,139 |  |  | 1.14 |  | 4/17/2019
Forward sale pounds sterling |  | 1,329 |  |  | 1.33 |  | 4/17/2019
Forward purchase Mexican peso |  | 820 |  |  | 19.52 |  | 4/17/2019
Forward sale Norwegian krone |  | 527 |  |  | 8.53 |  | 4/17/2019
Forward sale Mexican peso |  | 6,301 |  |  | 19.52 |  | 4/17/2019
Derivative Contracts |  | British Pound Notional Amount |  | Traded Exchange Rate |  | Settlement Date
|  | (In Thousands) |  |  |  |
Forward purchase Euro |  | 1,535 |  |  | 0.85 |  | 4/17/2019
Derivative Contracts |  | Swedish Krona Notional Amount |  | Traded Exchange Rate |  | Settlement Date
|  | (In Thousands) |  |  |  |
Forward sale Euro |  | 14,041 |  |  | 10.40 |  | 4/17/2019
Under this program, we and CCLP may enter into similar derivative contracts from time to time. Although contracts pursuant to this program will serve as an economic hedge of the cash flow of our currency exchange risk exposure, they are not formally designated as hedge contracts or qualify for hedge accounting treatment. Accordingly, any change in the fair value of these derivative instruments during a period will be included in the determination of earnings for that period. The fair values of foreign currency derivative instruments are based on quoted market values (a Level 2 fair value measurement). The fair values of our and CCLP's foreign currency derivative instruments as of March 31, 2019 and December 31, 2018, are as follows:
Foreign currency derivative instruments | Balance Sheet Location |  | Fair Value at March 31, 2019 |  | Fair Value at December 31, 2018
|  |  |  | (In Thousands)
Forward purchase contracts |  | Current assets |  | $ | 27 |  |  | $ | 41 |
Forward sale contracts |  | Current assets |  | 49 |  |  | 76 |
Forward sale contracts |  | Current liabilities |  | (22 | ) |  | (126 | )
Forward purchase contracts |  | Current liabilities |  | (100 | ) |  | (168 | )
Net asset (liability) |  |  |  | $ | (46 | ) |  | $ | (177 | )
None of the foreign currency derivative contracts contain credit risk related contingent features that would require us to post assets or collateral for contracts that are classified as liabilities. During the three months ended March 31, 2019 and March 31, 2018, we recognized $0.6 million and $28,000 of net gains (losses), respectively, reflected in other (income) expense, net, associated with our foreign currency derivative program. A summary of these recurring fair value measurements by valuation hierarchy as of March 31, 2019 and December 31, 2018, is as follows:
|  |  | Fair Value Measurements Using
| Total as of |  | Quoted Prices in Active Markets for Identical Assets or Liabilities |  | Significant Other Observable Inputs |  | Significant Unobservable Inputs
Description | March 31, 2019 |  | (Level 1) |  | (Level 2) |  | (Level 3)
| (In Thousands)
CCLP Series A Preferred Units | $ | (18,278 | ) |  | $ | — |  |  | $ | — |  |  | $ | (18,278 | )
Warrants liability | (2,480 | ) |  | — |  |  | — |  |  | (2,480 | )
Asset for foreign currency derivative contracts | 75 |  |  | — |  |  | 75 |  |  | — |
Liability for foreign currency derivative contracts | (121 | ) |  | — |  |  | (121 | ) |  | — |
Acquisition contingent consideration liability | (12,052 | ) |  | — |  |  | — |  |  | (12,052 | )
Net liability | $ | (32,856 | ) |  |  |  |  |  |
|  |  | Fair Value Measurements Using
| Total as of |  | Quoted Prices in Active Markets for Identical Assets or Liabilities |  | Significant Other Observable Inputs |  | Significant Unobservable Inputs
Description | December 31, 2018 |  | (Level 1) |  | (Level 2) |  | (Level 3)
| (In Thousands)
CCLP Series A Preferred Units | $ | (27,019 | ) |  | $ | — |  |  | $ | — |  |  | $ | (27,019 | )
Warrants liability | (2,073 | ) |  | — |  |  | — |  |  | (2,073 | )
Asset for foreign currency derivative contracts | 117 |  |  | — |  |  | 117 |  |  | — |
Liability for foreign currency derivative contracts | (294 | ) |  | — |  |  | (294 | ) |  | — |
Acquisition contingent consideration liability | (12,452 | ) |  | — |  |  | — |  |  | (12,452 | )
Net liability | $ | (41,721 | ) |  |  |  |  |  |
The fair values of cash, restricted cash, accounts receivable, accounts payable, accrued liabilities, short-term borrowings and long-term debt pursuant to TETRA's ABL Credit Agreement and Term Credit Agreement, and the CCLP Credit Agreement approximate their carrying amounts. The fair values of the publicly traded CCLP 7.25% Senior Notes at March 31, 2019 and December 31, 2018, were approximately $264.9 million and $266.3 million, respectively. Those fair values compare to the face amount of $295.9 million both at March 31, 2019 and December 31, 2018. The fair value of the publicly traded CCLP 7.50% Senior Secured Notes at March 31, 2019 and December 31, 2018 were approximately $336.0 million and $332.5 million, respectively. This fair value compares to aggregate principal amount of such notes at both March 31, 2019 and December 31, 2018, of $350.0 million. We based the fair values of the CCLP 7.25% Senior Notes and the CCLP 7.50% Senior Secured Notes as of March 31, 2019 on recent trades for these notes.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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