Impairment, Restructuring and Other Charges

9 Months Ended

Sep. 30, 2021

Restructuring And Related Activities [Abstract]

Impairment, Restructuring and Other Charges

7. Impairment, Restructuring and Other Charges

Restructuring and Other Charges

During the nine months ended September 30, 2021, the Company incurred additional costs under our existing 2018 global strategic plan to realign manufacturing facilities globally. These charges were primarily related to the restructuring of our downhole tools business where we exited certain underperforming countries and markets and shifted from manufacturing in-house to a vendor sourcing model. The Company has concluded its 2018 global strategic plan and did not incur any additional costs during the three months ended September 30, 2021.

As a result of unfavorable market conditions primarily due to the COVID-19 pandemic and developments in global oil markets, which triggered historically low crude oil prices and decreases in our customers’ capital budgets, we incurred additional costs under our 2018 global strategic plan primarily focused on workforce reductions and the reorganization of certain facilities during the three and nine months ended September 30, 2020.

The following table summarizes the components of charges included in "Restructuring and other charges" in our condensed consolidated statements of income (loss) for the three and nine months ended September 30, 2021 and 2020 (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Inventory write-down	$	-	$	-	$	19,251	$	17,272
Severance		-		-		2,745		8,399
Long-lived asset write-down		-		-		-		7,854
Other		-		602		4,024		1,377
	$	-	$	602	$	26,020	$	34,902

The following table summarizes the changes to our accrued liability balance related to restructuring and other charges as of September 30, 2021 (in thousands):

	Total
Beginning balance at January 1, 2021	$	1,146
Additions for costs expensed		5,768
Reductions for payments		(2,554	)
Other		(2	)
Ending balance at September 30, 2021	$	4,358

Goodwill Impairment

For the three months ended March 31, 2020, as a result of our updated assessment of market conditions and restructuring efforts, impairment losses consisted of a full impairment of our Goodwill balance of $7.7 million, all of which was in the Eastern Hemisphere reporting unit. These charges are reflected as "Impairments" in our condensed consolidated statements of income (loss).