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Asset Impairments and Other Charges and Credits | 9 Months Ended
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Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Asset Impairments and Other Charges and Credits | Asset Impairments and Other Charges and Credits In 2023, the Company implemented initiatives to reduce future costs, which are continuing into 2024. These management actions included the consolidation, relocation and exit of certain manufacturing and service locations, the exit of certain service offerings, reductions in the Company’s workforce in the United States as well as the realignment of operations within two of the Company’s reportable segments. The Company has also incurred legal and other related costs to enforce certain patents related to its proprietary technologies. As a result of these events, actions and assessments, the Company recorded the following charges and credits in 2024 and 2023 (in thousands):
| Offshore Manufactured Products |  | Completion and Production Services |  | Downhole Technologies |  | Corporate |  | Total |  |  |  |
Three Months Ended September 30, 2024 |  |  |  |  |  |  |  |  |  |
Impairments of: |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |
Intangible assets | — |  |  | 10,787 |  |  | — |  |  | — |  |  | 10,787 |  |  |  |  |
Operating lease assets | — |  |  | 2,092 |  |  | 487 |  |  | — |  |  | 2,579 |  |  |  |  |
Facility consolidation and exit, and other charges | 354 |  |  | 2,982 |  |  | 123 |  |  | 34 |  |  | 3,493 |  |  |  |  |
Patent defense costs | — |  |  | 1,347 |  |  | — |  |  | — |  |  | 1,347 |  |  |  |  |
Gains on extinguishment of debt | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |
Pre-tax totals | $ | 354 |  |  | $ | 17,208 |  |  | $ | 610 |  |  | $ | 34 |  |  | 18,206 |  |  |  |  |
Income tax benefit |  |  |  |  |  |  |  |  | 1,161 |  |  |  |  |
After-tax total |  |  |  |  |  |  |  |  | $ | 17,045 |  |  |  |  |
Nine Months Ended September 30, 2024 |  |  |  |  |  |  |  |  |  |
Impairments of: |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill | $ | — |  |  | $ | — |  |  | $ | 10,000 |  |  | $ | — |  |  | $ | 10,000 |  |  |  |  |
Intangible assets | — |  |  | 10,787 |  |  | — |  |  | — |  |  | 10,787 |  |  |  |  |
Operating lease assets | — |  |  | 2,092 |  |  | 487 |  |  | — |  |  | 2,579 |  |  |  |  |
Facility consolidation and exit, and other charges | 3,364 |  |  | 5,583 |  |  | 123 |  |  | 34 |  |  | 9,104 |  |  |  |  |
Patent defense costs | — |  |  | 2,671 |  |  | — |  |  | — |  |  | 2,671 |  |  |  |  |
Gains on extinguishment of debt | — |  |  | — |  |  | — |  |  | (515) |  |  | (515) |  |  |  |  |
Pre-tax totals | $ | 3,364 |  |  | $ | 21,133 |  |  | $ | 10,610 |  |  | $ | (481) |  |  | 34,626 |  |  |  |  |
Income tax benefit |  |  |  |  |  |  |  |  | 2,990 |  |  |  |  |
After-tax total |  |  |  |  |  |  |  |  | $ | 31,636 |  |  |  |  |
| Offshore Manufactured Products |  | Completion and Production Services |  | Downhole Technologies |  | Corporate |  | Pre-tax Total |  |  |  |
Three and Nine Months Ended September 30, 2023 |  |  |  |  |  |  |  |  |  |
Facility consolidation and exit, and other charges | $ | 1,649 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,649 |  |  |  |  |
Income tax benefit |  |  |  |  |  |  |  |  | 347 |  |  |  |  |
After-tax total |  |  |  |  |  |  |  |  | $ | 1,302 |  |  |  |  |
Goodwill The Company does not amortize goodwill, but rather assesses goodwill for impairment annually and when an event occurs or circumstances change that indicate the carrying amounts may not be recoverable. If the carrying amount of a reporting unit exceeds its fair value, goodwill is considered impaired and an impairment loss is recorded. Changes in the carrying amount of goodwill, by operating segment, for the nine months ended September 30, 2024 were as follows (in thousands):
| Offshore Manufactured Products |  | Downhole Technologies |  | Total
Balance as of December 31, 2023 | $ | 79,867 |  |  | $ | — |  |  | $ | 79,867 |
Goodwill associated with transferred operations | (10,000) |  |  | 10,000 |  |  | — |
Impairment of goodwill | — |  |  | (10,000) |  |  | (10,000) |
Foreign currency translation | 572 |  |  | — |  |  | 572 |
Balance as of September 30, 2024 | $ | 70,439 |  |  | $ | — |  |  | $ | 70,439 |
In connection with the first quarter 2024 realignment of the composition of two of its reportable segments discussed in Note 1, “Organization and Basis of Presentation,” goodwill of $10.0 million was reassigned from the Offshore Manufactured Products segment to the Downhole Technologies segment based on estimated relative fair values. The Company performed an interim quantitative assessment of goodwill recorded within the Offshore Manufactured Products segment as of February 29, 2024 (prior to realignment) which indicated that the fair value of the reporting unit exceeded its carrying value. The Company also performed an interim quantitative assessment of goodwill transferred to the Downhole Technologies segment (subsequent to the realignment). This interim assessment indicated that the fair value of the reporting unit was less than its carrying amount and the Company concluded that goodwill reassigned to the Downhole Technologies business was fully impaired. The Company therefore recognized a non-cash goodwill impairment charge totaling $10.0 million in the first quarter of 2024. This impairment charge did not impact the Company’s liquidity position, debt covenants or cash flows. Management used a combination of valuation methodologies including the income approach and guideline public company comparables. The fair values of each of the Company’s reporting units were determined using significant unobservable inputs (Level 3 fair value measurements). The income approach estimates fair value by discounting the Company’s forecasts of future cash flows by a discount rate (expected return) that a market participant is expected to require on its investment. Significant assumptions and estimates used in the income approach include, among others, estimated future net annual cash flows and discount rates for each reporting unit, current and anticipated market conditions, estimated growth rates and historical data. These estimates rely upon significant management judgment. Long-Lived Tangible and Intangible Assets An assessment for impairment of long-lived tangible and intangible assets is conducted when an event occurs or circumstances change that indicate that the carrying value of long-lived tangible and intangible assets may not be recoverable. In response to further reductions in customer activity in the United States during the third quarter of 2024, management made strategic decisions to exit its underperforming flowback and well testing service offering and sell the related equipment and inventory. Management also decided to exit six leased facilities. As a result of these events and actions, the Company recorded non-cash intangible asset (customer relationships and tradenames) impairment charges of $10.8 million associated with the exit of this service offering and operating lease impairments of $2.6 million related to facility closures. Additionally, the equipment and inventory of the exited service offering in the Completion and Production Services segment was reclassified to assets held for sale, and transferred from property, plant and equipment and inventory to prepaid and other current assets. The carrying value of assets held for sale totaled $13.4 million as of September 30, 2024.

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- Definition The entire disclosure for the details of the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value. Disclosure may also include a description of the impaired asset and facts and circumstances leading to the impairment, amount of the impairment loss and where the loss is located in the income statement, method(s) for determining fair value, and the segment in which the impaired asset is reported. + References No definition available. + Details
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- References No definition available. + Details
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