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Impairments and Other Charges | 12 Months Ended
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Dec. 31, 2022
Impairments and Other Charges |
Impairments and Other Charges | Note 3 Impairments and Other Charges ​ The components of impairments and other charges are provided below: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ |  | 2021 |  | 2020
​ | ​ | ​ | (In thousands)
Goodwill impairments | ​ | $ | — | ​ | $ | 27,798
Intangible asset impairment | ​ | ​ | — | ​ | ​ | 83,624
US Drilling | ​ | ​ | — | ​ | ​ | 87,333
Canada Drilling | ​ | ​ | 58,545 | ​ | ​ | —
International Drilling | ​ | ​ | 215 | ​ | ​ | 117,113
Drilling Solutions | ​ | ​ | — | ​ | ​ | 28,624
Rig Technologies | ​ | ​ | 418 | ​ | ​ | 2,936
Oil and gas related assets | ​ | ​ | — | ​ | ​ | 24,543
Severance and transaction related costs | ​ | ​ | 6,228 | ​ | ​ | 19,070
Other assets | ​ | ​ | 1,325 | ​ | ​ | 19,590
Total | ​ | $ | 66,731 | ​ | $ | 410,631
​ We review our assets for impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. If the estimated undiscounted future cash flows are not sufficient to support an asset’s recorded value, an impairment charge is recognized to the extent the carrying amount of the long-lived asset exceeds its estimated fair value. In determining an asset’s fair value, management considers a number of factors, such as estimated future cash flows from the asset, appraisals, and current market value analysis. The determination of future cash flows requires the estimation of utilization, dayrates, operating margins, sustaining capital and remaining economic life. Such estimates can change based on market conditions, technological advances in the industry or changes in regulations governing the industry. A significantly prolonged period of lower oil and natural gas prices could continue to adversely affect the demand for and prices of our services, which could result in future impairment charges. ​ For the year ended December 31, 2021 ​ Canada Drilling ​ During 2021, we recognized an impairment of $58.5 million related to the sale of the Canada Drilling assets in July 2021. See Note 5—Acquisitions and Dispositions for additional details. ​ Severance and transaction related costs ​ During 2021, we recognized charges of $6.2 million due to severance and reorganization costs from ongoing cost cutting and consolidation measures that we enacted in response to the challenging industry environment. ​ For the year ended December 31, 2020 ​ Goodwill impairments ​ We have historically performed our annual goodwill impairment test during the second quarter of each year. In addition to our annual impairment test, we are required to regularly assess whether a triggering event has occurred which would require interim impairment testing. Due to industry conditions during the first quarter of 2020 and the corresponding impact on future expectations of demand for our products and services, including the effect on our stock price, we determined a triggering event had occurred and performed a quantitative impairment assessment of our goodwill. Based on the results of our goodwill test performed, we recognized impairment charges to write off the remaining goodwill balances attributable to our Drilling Solutions and Rig Technologies operating segments of $11.4 million and $16.4 million, respectively. ​ Intangible asset impairments ​ We also reviewed our intangible assets for impairment in the first quarter of 2020 as a result of industry conditions. The fair value of our intangible assets is determined using discounted cash flow models. Based on our updated projections of future cash flows, the fair value of our intangible assets did not support the carrying value. As such, we recognized an impairment of $83.6 million to write off all remaining intangible assets attributable to our Drilling Solutions and Rig Technologies operating segments. ​ US Drilling ​ Due to the sharp decline in activity in the US in the first part of 2020, we recorded impairments of $33.3 million and functionally retired $54.0 million of our lower specification rigs in the Lower 48 and Alaska markets totaling approximately $87.3 million. We determined that the assets were either functionally obsolete, would be no longer used, or the carrying value was not fully recoverable and was in excess of its fair value. ​ International Drilling ​ We impaired $30.5 million and wrote down or retired $86.6 million totaling $117.1 million during 2020, which represented most of our rig and drilling-related equipment in several international markets which have been negatively affected by current market conditions and other factors, including Venezuela, Iraq, Algeria and certain offshore markets in the eastern hemisphere. Due to our lack of work in these markets and limited visibility to any possibility of further work, we have taken steps to relocate these assets to other markets, or in some cases, to retire, sell or otherwise dispose of these assets. ​ Drilling Solutions ​ We impaired or retired $28.6 million of fixed assets, equipment and inventory in our Drilling Solutions segment as a result of the significant decline in utilization experienced over the first half of 2020. We determined that the assets were either functionally obsolete, would be no longer used, or the carrying value was not fully recoverable and was in excess of its fair value. ​ Rig Technologies ​ As a result of our periodic analysis on inventories for our Rig Technologies segment, we recorded a $2.9 million provision for obsolescence. ​ Oil & gas related assets ​ During 2020, we recognized an impairment of $24.5 million to various assets related to our retained interest in the oil and gas properties located on the North Slope of Alaska. ​ Severance and transaction related costs ​ During 2020, we recognized charges of $19.1 million due to severance and other related costs incurred to right-size our cost structure. ​ Other assets ​ In 2020, we wrote down or provided for $19.6 million of certain other assets including receivables related to our operations. The charges were primarily attributable to markets which have been adversely impacted by foreign sanctions or other political risk issues as well as bankruptcies or other financial problems.

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