Quarterly Results of Operations (Unaudited)

The following tables summarize the Company’s results by quarter for the years ended December 31, 2018 and 2017. The quarterly results may not be comparable primarily due to acquisitions in 2018, 2017 and 2016. Refer to Note 4 Acquisitions & Dispositions for further information.



	2018
(in thousands, except per share information)	Q1			Q2			Q3			Q4
Revenues	$	250,231		$	274,003		$	267,037		$	272,948
Cost of sales	182,944			201,334			192,496			231,073
Gross profit	67,287			72,669			74,541			41,875
Total operating expenses (1)	73,030			84,721			72,764			422,995
Earnings (loss) from equity investment	(963		)	350			659			94
Operating income (loss)	(6,706		)	(11,702		)	2,436			(381,026		)
Total other expense (income), net (2)	(21,868		)	2,001			6,598			6,025
Income (loss) before income taxes	15,162			(13,703		)	(4,162		)	(387,051		)
Income tax expense (benefit)	(12,904		)	1,646			(1,108		)	(3,308		)
Net income (loss)	28,066			(15,349		)	(3,054		)	(383,743		)

Weighted average shares outstanding
Basic	108,423			108,714			108,856			109,082
Diluted	110,857			108,714			108,856			109,082
Earnings (loss) per share
Basic	$	0.26		$	(0.14	)	$	(0.03	)	$	(3.52	)
Diluted	$	0.25		$	(0.14	)	$	(0.03	)	$	(3.52	)


(1)	Total operating expenses included $14.5 million of intangible asset impairments for the Subsea and Downhole product lines in Q2, $298.8 million of goodwill impairment charges in Q4 and $50.2 million of intangible asset impairments in Q4. See Note 7 Goodwill and Intangible Assets for further information related to these charges.


(2)	Total other expenses included a $33.5 million gain on contribution of our subsea rentals business in Q1. See Note 4 Acquisitions & Dispositions for further information related to this gain.



	2017
(in thousands, except per share information)	Q1			Q2			Q3			Q4
Revenues	$	171,096		$	201,115		$	198,709		$	247,700
Cost of sales	132,117			151,860			151,150			194,705
Gross profit	38,979			49,255			47,559			52,995
Total operating expenses (1)	61,056			131,779			64,839			73,709
Earnings (loss) from equity investment	1,462			2,568			3,361			(6,391		)
Operating loss	(20,615		)	(79,956		)	(13,919		)	(27,105		)
Total other expense (income), net (2)	8,126			8,987			8,726			(112,155		)
Income (loss) before income taxes	(28,741		)	(88,943		)	(22,645		)	85,050
Income tax expense (benefit)	(12,973		)	(11,070		)	(7,817		)	35,981
Net income (loss)	(15,768		)	(77,873		)	(14,828		)	49,069

Weighted average shares outstanding
Basic	95,860			96,170			96,275			105,947
Diluted	95,860			96,170			96,275			108,581
Earnings (loss) per share
Basic	$	(0.16	)	$	(0.81	)	$	(0.15	)	$	0.46
Diluted	$	(0.16	)	$	(0.81	)	$	(0.15	)	$	0.45


(1)	Total operating expenses in Q2 included a $68.0 million goodwill impairment for our Subsea reporting unit. See Note 7 Goodwill and Intangible Assets for further information related to this charges.


(2)	Total other expenses in Q4 included a $120.4 million gain realized on our previously held equity investment. See Note 4 Acquisitions & Dispositions for further information related to this gain.