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Discontinued Operations | 3 Months Ended
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Mar. 31, 2021
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | DISCONTINUED OPERATIONS On January 29, 2021, we entered into the Purchase and Sale Agreement with Spartan Energy Partners, LP (“Spartan”) pursuant to which we sold the general partner of CSI Compressco, including the IDRs in CSI Compressco and approximately 23.1% of the outstanding limited partner interests in CSI Compressco, in exchange for the combination of $13.4 million in cash paid at closing, $0.5 million in cash payable on the six-month anniversary of the closing and $3.1 million in contingent consideration in the form of cash and/or CSI Compressco common units if CSI Compressco achieves certain financial targets on or before December 31, 2022. Throughout this Quarterly Report, we refer to the transaction with Spartan as the “GP Sale.” As a result of these transactions, we no longer consolidate CSI Compressco as of January 29, 2021. We recognized a primarily non-cash accounting gain of $120.6 million during the first quarter of 2021 related to the GP Sale. The gain is included in income (loss) from discontinued operations, net of taxes in our consolidated statement of operations. We will also continue to provide back-office support to CSI Compressco under a Transition Services Agreement for up to one year until CSI Compressco has completed a full separation from our back-office support functions. Our interest in CSI Compressco and the general partner represented substantially all of our Compression Division. In addition, on March 1, 2018, we closed a series of related transactions that resulted in the disposition of our Offshore Division, consisting of our Offshore Services and Maritech segments. Our former Compression and Offshore Divisions are reported as discontinued operations for all periods presented. Our consolidated balance sheets and consolidated statements of operations report discontinued operations separate from continuing operations. Our consolidated statements of comprehensive income, statements of equity and statements of cash flows combine continuing and discontinued operations. Our current-year consolidated statement of operations, statement of comprehensive income, statement of equity and statement of cash flows include CSI Compressco activity for January 1 through January 29. Our consolidated statements of cash flows for the three-month periods ended March 31, 2021 and March 31, 2020 included $3.0 million and $6.5 million, respectively, of capital expenditures related to our former Compression division, as well as amortization of deferred financing discounts, costs and gains of $0.7 million for the three-month period ended March 31, 2020. Our current-year results do not include CSI Compressco depreciation or amortization as the assets were considered held for sale. A summary of financial information related to our discontinued operations is as follows: Reconciliation of the Line Items Constituting Pretax Loss from Discontinued Operations to the After-Tax Loss from Discontinued Operations (in thousands)
| Three Months Ended March 31, 2021 |  |
| Compression |  | Offshore Services |  |  |  | Total |  |  |  |  |  |
Major classes of line items constituting income from discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue | $ | 18,968 |  |  | $ | — |  |  |  |  | $ | 18,968 |  |  |  |  |  |  |
Cost of revenues | 11,474 |  |  | 28 |  |  |  |  | 11,502 |  |  |  |  |  |  |
General and administrative expense | 2,795 |  |  | (5) |  |  |  |  | 2,790 |  |  |  |  |  |  |
Interest expense, net | 4,336 |  |  | — |  |  |  |  | 4,336 |  |  |  |  |  |  |
Other expense, net | (106) |  |  | — |  |  |  |  | (106) |  |  |  |  |  |  |
Pretax income (loss) from discontinued operations | 469 |  |  | (23) |  |  |  |  | 446 |  |  |  |  |  |  |
Pretax gain on disposal of discontinued operations |  |  |  |  |  |  | 120,574 |  |  |  |  |  |  |
Total pretax income from discontinued operations |  |  |  |  |  |  | 121,020 |  |  |  |  |  |  |
Income tax provision |  |  |  |  |  |  | 30 |  |  |  |  |  |  |
Total income from discontinued operations |  |  |  |  |  |  | $ | 120,990 |  |  |  |  |  |  |
Income from discontinued operations attributable to noncontrolling interest |  |  |  |  |  |  | $ | (333) |  |  |  |  |  |  |
Income from discontinued operations attributable to TETRA stockholders |  |  |  |  |  |  | $ | 120,657 |  |  |  |  |  |  |
| Three Months Ended March 31, 2020 |  |
| Compression |  | Offshore Services |  |  |  | Total |  |  |  |  |  |
Major classes of line items constituting loss from discontinued operations |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue | $ | 90,238 |  |  | $ | — |  |  |  |  | $ | 90,238 |  |  |  |  |  |  |
Cost of revenues | 54,579 |  |  | (60) |  |  |  |  | 54,519 |  |  |  |  |  |  |
Depreciation, amortization, and accretion | 19,908 |  |  | — |  |  |  |  | 19,908 |  |  |  |  |  |  |
Impairments and other charges | 5,371 |  |  | — |  |  |  |  | 5,371 |  |  |  |  |  |  |
General and administrative expense | 10,189 |  |  | 205 |  |  |  |  | 10,394 |  |  |  |  |  |  |
Interest expense, net | 12,564 |  |  | — |  |  |  |  | 12,564 |  |  |  |  |  |  |
Other expense, net | 417 |  |  | — |  |  |  |  | 417 |  |  |  |  |  |  |
Pretax (loss) from discontinued operations | (12,790) |  |  | (145) |  |  |  |  | (12,935) |  |  |  |  |  |  |
Income tax provision |  |  |  |  |  |  | 433 |  |  |  |  |  |  |
Total loss from discontinued operations |  |  |  |  |  |  | $ | (13,368) |  |  |  |  |  |  |
Loss from discontinued operations attributable to noncontrolling interest |  |  |  |  |  |  | $ | 8,834 |  |  |  |  |  |  |
Loss from discontinued operations attributable to TETRA stockholders |  |  |  |  |  |  | $ | (4,534) |  |  |  |  |  |  |
Reconciliation of Major Classes of Assets and Liabilities of the Discontinued Operations to Amounts Presented Separately in the Statement of Financial Position (in thousands)
|  |  | March 31, 2021
|  |  | Offshore Services |  | Maritech |  | Total
Carrying amounts of major classes of liabilities included as part of discontinued operations |  |  |  |  |  |  |
Trade payables |  |  | $ | 1,222 |  |  | $ | — |  |  | $ | 1,222 |
Accrued liabilities and other |  |  | 296 |  |  | 228 |  |  | 524 |
Total liabilities associated with discontinued operations |  |  | $ | 1,518 |  |  | $ | 228 |  |  | $ | 1,746 |
| December 31, 2020
| Compression |  | Offshore Services |  | Maritech |  | Total
Carrying amounts of major classes of assets included as part of discontinued operations |  |  |  |  |  |  |
Cash and cash equivalents | $ | 16,577 |  |  | $ | — |  |  | $ | — |  |  | $ | 16,577 |
Trade receivables | 43,837 |  |  | — |  |  | — |  |  | 43,837 |
Inventories | 31,220 |  |  | — |  |  | — |  |  | 31,220 |
Other current assets | 5,231 |  |  | — |  |  | — |  |  | 5,231 |
Property, plant, and equipment | 551,401 |  |  | — |  |  | — |  |  | 551,401 |
Other assets | 61,740 |  |  | — |  |  | — |  |  | 61,740 |
Total assets associated with discontinued operations | $ | 710,006 |  |  | $ | — |  |  | $ | — |  |  | $ | 710,006 |
Carrying amounts of major classes of liabilities included as part of discontinued operations |  |  |  |  |  |  |
Trade payables | $ | 19,766 |  |  | $ | 1,222 |  |  | $ | — |  |  | $ | 20,988 |
Unearned Income | 269 |  |  | — |  |  | — |  |  | 269 |
Accrued liabilities and other | 36,318 |  |  | 352 |  |  | 228 |  |  | 36,898 |
Long-term debt, net | 638,631 |  |  | — |  |  | — |  |  | 638,631 |
Other liabilities | 37,253 |  |  | — |  |  | — |  |  | 37,253 |
Total liabilities associated with discontinued operations | $ | 732,237 |  |  | $ | 1,574 |  |  | $ | 228 |  |  | $ | 734,039 |
See Note 8 - “Commitments and Contingencies” for further discussion of contingencies associated with discontinued operations.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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