Details of Selected Balance Sheet Accounts

12 Months Ended

Dec. 31, 2021

Details of Selected Balance Sheet Accounts [Abstract]

Details of Selected Balance Sheet Accounts

Additional information regarding selected balance sheet accounts as of December 31, 2021 and December 31, 2020 is presented below (in thousands):


	2021			2020
Accounts receivable, net:
Trade	$	116,434		$	109,294
Unbilled revenue	24,389			23,173
Contract assets	39,755			35,870
Other	9,973			3,102
Total accounts receivable	190,551			171,439
Allowance for doubtful accounts	(4,471)			(8,304)
	$	186,080		$	163,135

Allowance for doubtful accounts as a percentage of total accounts receivable	2		%	5		%


	2021		2020
Deferred revenue (contract liabilities)	$	43,236	$	43,384

As of December 31, 2021, accounts receivable, net in the United States and the United Kingdom represented 73% and 14%, respectively, of the total. No other country or single customer accounted for more than 10% of the Company's total accounts receivable as of December 31, 2021. A summary of activity in the allowance for doubtful accounts for the years ended December 31, 2021, 2020 and 2019 is provided in Note 15, "Valuation Allowances."

For the majority of contracts with customers, the Company receives payments based upon established contractual terms as products are delivered and services are performed. The Company's larger project-related contracts within the Offshore/Manufactured Products segment often provide for customer payments as milestones are achieved.

Contract assets relate to the Company's right to consideration for work completed but not billed as of December 31, 2021 and 2020 on certain project-related contracts within the Offshore/Manufactured Products segment. Contract assets are transferred to unbilled or trade receivables when the right to consideration becomes unconditional. Contract liabilities primarily relate to advance consideration received from customers (i.e. milestone payments) for contracts for project-driven products as well as others which require significant advance investment in materials. Consistent with industry practice, the Company classifies assets and liabilities related to long-term contracts as current, even though some of these amounts may not be realized within one year. All contracts are reported on the consolidated balance sheets in a net asset (contract asset) or liability (deferred revenue) position on a contract-by-contract basis at the end of each reporting period. In the normal course of business, the Company also receives advance consideration from customers on many other short-term, smaller product and service contracts which is deferred and recognized as revenue once the related performance obligation is satisfied.

For the year ended December 31, 2021, the $3.9 million net increase in contract assets was primarily attributable to $38.9 million in revenue recognized during the period, which was partially offset by $35.0 million transferred to accounts receivable. Deferred revenue (contract liabilities) decreased by $0.1 million in 2021, reflecting the recognition of $10.5 million of revenue that was deferred at the beginning of the period, offset by $10.4 million in new customer billings which were not recognized as revenue during the period.

For the year ended December 31, 2020, the $9.8 million net increase in contract assets was primarily attributable to $32.4 million in revenue recognized during the year, which was partially offset by $22.8 million transferred to accounts receivable. Deferred revenue (contract liabilities) increased by $25.6 million in 2020, reflecting $41.6 million in new customer billings which were not recognized as revenue during the year, partially offset by the recognition of $16.0 million of revenue that was deferred at the beginning of the period.


	2021		2020
Inventories, net:
Finished goods and purchased products	$	87,934	$	88,634
Work in process	24,722		27,063
Raw materials	96,357		95,410
Total inventories	209,013		211,107
Allowance for excess or obsolete inventory	(40,440)		(40,731)
	$	168,573	$	170,376

During 2021, the Company recorded impairment charges totaling $3.6 million to reduce the carrying value of inventories to their estimated net realizable value based primarily on management's decisions to exit certain product and service offerings.

During 2020, the Company recorded impairment charges totaling $31.2 million to reduce the carrying value of inventories to their estimated net realizable value based on changes in expectations regarding the near-term utility, customer demand and market pricing of certain goods.


	Estimated Useful Life (years)			2021		2020
Property, plant and equipment, net:
Land				$	33,536	$	34,968
Buildings and leasehold improvements	1	–	40	255,530		267,072
Machinery and equipment	2	–	28	247,285		239,986
Completion-related rental equipment	1	–	10	510,816		507,755
Office furniture and equipment	1	–	10	33,155		35,767
Vehicles	3	–	10	66,431		81,607
Construction in progress				4,780		7,207
Total property, plant and equipment				1,151,533		1,174,362
Accumulated depreciation				(812,950)		(790,800)
				$	338,583	$	383,562

For the years ended December 31, 2021, 2020 and 2019, depreciation expense was $60.1 million, $73.6 million and $96.5 million, respectively.

During 2019, the Company made the strategic decision to reduce the scope of its drilling operations (adjusting from 34 rigs to 9 rigs) within the Well Sites Services segment due to the ongoing weakness in customer demand for vertical drilling rigs in the U.S. land market, particularly the Permian Basin. As a result of this decision, the carrying value of 25 rigs, which were decommissioned or sold, was reduced to their estimated realizable value, resulting in the recognition of a $25.5 million non-cash impairment charge. The Company also performed a fair value assessment on the remaining drilling rigs and recognized an additional non-cash impairment charge of $8.2 million (a Level 3 fair value measurement).

During 2020, the Well Site Services segment recognized a non-cash impairment charge of $5.2 million to further reduce the carrying value of the segment's remaining drilling rigs to their estimated realizable value and $3.6 million to reduce the carrying value of certain other facilities to their estimated realizable value. Also during 2020, the Downhole Technologies segment recognized a non-cash impairment charge of $1.6 million to reduce the carrying value of certain of the segment's fixed assets to their estimated realizable value.

During 2021, the Well Site Services segment recognized non-cash impairment charges of $1.4 million to reduce the carrying value of certain of the segment's fixed assets to their estimated realizable value.


	2021		2020
Other noncurrent assets:
Deferred compensation plan	$	23,348	$	22,801
Deferred financing costs	2,674		—
Deferred income taxes	1,878		1,280
Other	4,989		5,646
	$	32,889	$	29,727


	2021		2020
Accrued liabilities:
Accrued compensation	$	20,904	$	18,463
Accrued taxes, other than income taxes	5,130		7,307
Insurance liabilities	6,361		7,694
Accrued interest	3,629		2,202
Accrued commissions	2,194		1,416
Other	5,183		7,422
	$	43,401	$	44,504