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Impairments and Other Charges | 9 Months Ended
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Sep. 30, 2019
Impairments and Other Charges |
Impairments and Other Charges | Note 10 Impairments and Other Charges ​ The components of impairments and other charges are provided below: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Nine Months Ended | ​
​ | ​ | September 30, | ​ | September 30, | ​
​ |  | 2019 |  | 2018 |  | 2019 |  | 2018 |
​ | ​ | (In thousands) | ​
Goodwill & Intangible Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Goodwill impairments | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 93,634 | ​ | ​ | — | ​
Intangible asset impairment | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 5,235 | ​ | ​ | — | ​
Subtotal | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 98,869 | ​ | ​ | — | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Other Charges: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Divestiture of International assets | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 63,726 | ​
Severance and transaction related costs | ​ | ​ | 2,911 | ​ | ​ | 1,753 | ​ | ​ | 5,386 | ​ | ​ | 12,526 | ​
Tangible asset impairments | ​ | ​ | — | ​ | ​ | 1,541 | ​ | ​ | — | ​ | ​ | 3,706 | ​
Loss (gain) on early extinguishment of debt | ​ | ​ | 718 | ​ | ​ | 10,476 | ​ | ​ | 1,752 | ​ | ​ | 10,476 | ​
Total | ​ | $ | 3,629 | ​ | $ | 13,770 | ​ | $ | 106,007 | ​ | $ | 90,434 | ​
​ For the three and nine months ended September 30, 2019 ​ Goodwill impairments ​ During the nine months ended September 30, 2019, we recognized goodwill impairment charges of $93.6 million. As part of our annual goodwill impairment test, we determined the carrying value of some of our reporting units exceeded their fair value. As such, we recognized an impairment of $75.6 million for the remaining goodwill balance attributable to our International Drilling operating segment and $18.0 million for a partial impairment to our goodwill balance related to the acquisition of 2TD in 2014, reported within our Rig Technologies operating segment. These non-cash pre-tax impairment charges were primarily the result of a sustained decline in our market capitalization and lower future cash flow projections due to expectations for future commodity prices and the resulting impact on the demand for our products and services within these reporting units. ​ Intangible impairments ​ Additionally, we determined the fair value of one of our intangible assets was less than the current book value. As such, we recognized a partial impairment of $5.2 million to write down the intangible asset to its fair value. This intangible asset relates to in-process research and development associated with our rotary steerable tools purchased as part of the 2TD acquisition. Based on our updated projections of future cash flows, the carrying value did not support the current fair value and thus an impairment charge was recognized. ​ Severance and transaction related costs ​ During the three and nine months ended September 30, 2019, we recognized charges of $2.9 million and $5.4 million, respectively, due to severance and other related costs incurred to right-size our cost structure. ​ Loss (gain) on early extinguishment of debt ​ During the three and nine months ended September 30, 2019, we repurchased $16.6 million and $378.1 million, respectively, aggregate principal amount of our senior notes and recognized a loss of $0.7 million and $1.8 million, respectively, as part of the debt extinguishment. See Note 6—Debt for additional discussion. ​ Three and nine months ended September 30, 2018 ​ Divestiture of International assets During the nine months ended September 30, 2018, we recognized a loss of $63.7 million on the sale of three offshore drilling rigs within our International Drilling operating segment. ​ Severance and transaction related costs During the three and nine months ended September 30, 2018, we incurred $1.8 million and $12.5 million, respectively, in transaction related costs, including professional fees, severances, facility closure costs and other cost rationalization items, primarily in connection with the acquisition of Tesco. ​ Loss (gain) on early extinguishment of debt ​ During the three and nine months ended September 30, 2018, we repurchased $460.8 million aggregate principal amount of our senior notes and recognized a loss of $10.5 million as part of the debt extinguishment. ​ Tangible asset impairments ​ During the three and nine months ended September 30, 2018, we recognized impairment charges of $1.5 million and $3.7 million, respectively, primarily due to obsolete inventory within our Rig Technologies reportable segment.

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