Asset Impairments and Other Charges and Credits

6 Months Ended

Jun. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Asset Impairments and Other Charges and Credits

Management has implemented certain cost reduction actions including: the consolidation, relocation and exit of certain operating locations; the exit of certain service offerings; reductions in the Company’s workforce in the United States; and the realignment in 2024 of operations within two of the Company’s reportable segments. The Company also incurred legal costs associated with patent defense and purchased a portion of its outstanding 4.75% convertible senior notes (the “2026 Notes”) at a discount. As a result of these events, actions and assessments, the Company recorded the following charges and credits during the three and six months ended June 30, 2025 and 2024 (in thousands):


	Offshore Manufactured Products		Completion and Production Services		Downhole Technologies		Corporate		Total
Three Months Ended June 30, 2025



Impairment of operating lease assets	$	—	$	403	$	955	$	—	$	1,358

Facility exit charges	273		1,776		252		—		2,301

Gains on extinguishment of debt	—		—		—		(381)		(381)
Pre-tax totals	$	273	$	2,179	$	1,207	$	(381)	3,278
Income tax benefit									688
After-tax total									$	2,590

Six Months Ended June 30, 2025



Impairment of operating lease assets	$	—	$	403	$	955	$	—	$	1,358

Facility exit charges	273		2,706		252		—		3,231

Gains on extinguishment of debt	—		—		—		(381)		(381)
Pre-tax totals	$	273	$	3,109	$	1,207	$	(381)	4,208
Income tax benefit									884
After-tax total									$	3,324


	Offshore Manufactured Products		Completion and Production Services		Downhole Technologies		Corporate		Total
Three Months Ended June 30, 2024
Impairment of goodwill	$	—	$	—	$	—	$	—	$	—


Facility consolidation and other charges	1,547		1,916		—		—		3,463
Patent defense costs	—		963		—		—		963
Gains on extinguishment of debt	—		—		—		(515)		(515)
Pre-tax totals	$	1,547	$	2,879	$	—	$	(515)	3,911
Income tax benefit									821
After-tax total									$	3,090

Six Months Ended June 30, 2024
Impairment of goodwill	$	—	$	—	$	10,000	$	—	$	10,000


Facility consolidation and other charges	3,010		2,601		—		—		5,611
Patent defense costs	—		1,324		—		—		1,324
Gains on extinguishment of debt	—		—		—		(515)		(515)
Pre-tax totals	$	3,010	3,925		10,000		$	(515)	16,420
Income tax benefit									1,829
After-tax total									$	14,591

Goodwill

The Company’s remaining goodwill exists in the Offshore Manufactured Products segment, totaling $70.8 million and $69.7 million, respectively, as of June 30, 2025 and December 31, 2024.

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.

Management uses 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.

In the first quarter of 2024, certain short-cycle, consumable product operations historically reported within the Offshore Manufactured Products segment (legacy frac plug and elastomer products) were integrated into the Downhole Technologies segment to better align with the underlying activity demand drivers and current segment management structure, as well as provide for additional operational synergies. In connection with this realignment, 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.