Geographic Areas

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Geographic Areas

10. Geographic Areas

The Company’s operations are organized into three geographic segments - Western Hemisphere (including North and South America; headquartered in Houston, Texas), Eastern Hemisphere (including Europe and Africa; headquartered in Aberdeen, Scotland) and Asia-Pacific (including the Pacific Rim, Southeast Asia, Australia, India and the Middle East; headquartered in Singapore). Each of these segments sells similar products and services and the Company has manufacturing facilities in all three of its regional headquarter locations as well as in Macae, Brazil.

Eliminations of operating profits are related to intercompany inventory transfers that are deferred until shipment is made to third party customers.

	Three months ended September 30,
	Western Hemisphere				Eastern Hemisphere					Asia-Pacific					DQ Corporate						Total
	2021		2020		2021			2020		2021		2020			2021			2020			2021			2020
	(In thousands)
Revenues
Products
Point in Time	$	22,692	$	16,937	$	6,276		$	8,033	$	3,953	$	7,776		$	-		$	-		$	32,921		$	32,746
Over-Time		14,920		19,158		3,941			5,344		1,840		9,203			-			-			20,701			33,705
Total Products		37,612		36,095		10,217			13,377		5,793		16,979			-			-			53,622			66,451
Services
Technical Advisory		10,814		8,317		2,038			2,285		3,629		2,402			-			-			16,481			13,004
Reconditioning		2,058		2,657		420			1,404		601		713			-			-			3,079			4,774
Total Services (excluding rental tools)		12,872		10,974		2,458			3,689		4,230		3,115			-			-			19,560			17,778
Leasing		6,627		5,384		1,564			1,970		1,624		(288	)		-			-			9,815			7,066
Total Services (including rental tools)		19,499		16,358		4,022			5,659		5,854		2,827			-			-			29,375			24,844
Intercompany		4,029		3,060		920			1,006		576		4,329						-			5,525			8,395
Eliminations		-		-		-			-		-		-			(5,525	)		(8,395	)		(5,525	)		(8,395	)
Total Revenues	$	61,140	$	55,513	$	15,159		$	20,042	$	12,223	$	24,135		$	(5,525	)	$	(8,395	)	$	82,997		$	91,295
Depreciation and amortization	$	4,736	$	4,831	$	1,044		$	882	$	1,194	$	1,265		$	925		$	930		$	7,899		$	7,908
Income (loss) before income taxes	$	8,417	$	3,339	$	(1,273	)	$	3,255	$	2,002	$	5,396		$	(15,988	)	$	(14,044	)	$	(6,842	)	$	(2,054	)

During the three months ended September 30, 2021, the Company did not incur any additional restructuring and other charges. During the three months ended September 30, 2020, we recorded restructuring and other charges of $0.6 million, consisting primarily of consulting fees in DQ Corporate.

	Nine months ended September 30,
	Western Hemisphere					Eastern Hemisphere						Asia-Pacific				DQ Corporate						Total
	2021			2020		2021			2020			2021		2020		2021			2020			2021			2020
	(In thousands)
Revenues
Products
Point in Time	$	76,927		$	54,774	$	17,086		$	23,834		$	19,420	$	20,516	$	-		$	-		$	113,433		$	99,124
Over-Time		35,860			59,590		8,419			21,938			7,354		16,490		-			-			51,633			98,018
Total Products		112,787			114,364		25,505			45,772			26,774		37,006		-			-			165,066			197,142
Services
Technical Advisory		26,916			26,169		6,058			7,718			11,603		8,629		-			-			44,577			42,516
Reconditioning		6,897			8,925		1,690			3,902			1,599		1,999		-			-			10,186			14,826
Total Services (excluding rental tools)		33,813			35,094		7,748			11,620			13,202		10,628		-			-			54,763			57,342
Leasing		15,297			13,819		4,635			6,544			5,272		2,892		-			-			25,204			23,255
Total Services (including rental tools)		49,110			48,913		12,383			18,164			18,474		13,520		-			-			79,967			80,597
Intercompany		8,807			8,691		1,558			2,026			8,875		9,998		-			-			19,240			20,715
Eliminations		-			-		-			-			-		-		(19,240	)		(20,715	)		(19,240	)		(20,715	)
Total	$	170,704		$	171,968	$	39,446		$	65,962		$	54,123	$	60,524	$	(19,240	)	$	(20,715	)	$	245,033		$	277,739
Depreciation and amortization	$	13,291		$	15,254	$	3,021		$	2,808		$	3,576	$	3,859	$	2,770		$	2,800		$	22,658		$	24,721
Income (loss) before income taxes	$	(13,136	)	$	16,516	$	(583	)	$	(27,415	)	$	17,540	$	12,580	$	(57,295	)	$	(52,103	)	$	(53,474	)	$	(50,422	)

During the nine months ended September 30, 2021, we recorded $26.0 million of restructuring and other charges. These charges were related to non-cash inventory write downs, severance charges and other charges, primarily consisting of facilities restructuring exit costs and consulting fees. Of these charges, $21.0 million was recorded in the Western Hemisphere, $1.6 million in the Eastern Hemisphere and $3.4 million in DQ Corporate. During the nine months ended September 30, 2020, we recorded impairments, restructuring and other charges of $42.6 million. Of these charges, $32.1 million was recorded in the Eastern Hemisphere, $3.2 million in the Western Hemisphere, $7.1 million in DQ Corporate and $0.2 million in Asia-Pacific.

	September 30, 2021			December 31, 2020
	(In thousands)
Total long-lived assets:
Western Hemisphere	$	335,900		$	350,577
Eastern Hemisphere		222,057			222,741
Asia-Pacific		62,448			68,600
Eliminations		(353,939	)		(353,939	)
Total	$	266,466		$	287,979
Total assets:
Western Hemisphere	$	720,191		$	769,649
Eastern Hemisphere		793,426			779,147
Asia-Pacific		195,085			186,808
Eliminations		(614,965	)		(584,432	)
Total	$	1,093,737		$	1,151,172

As of September 30, 2021, we had $19.1 million of non-cash inventory write-downs in the Western Hemisphere and $0.2 million in the Eastern Hemisphere as we shifted from the manufacturing of our downhole tools products business to a vendor outsourcing model. During 2020, we wrote down $25.5 million related to inventory and long-lived assets balances, with $22.3 million recorded in the Eastern Hemisphere and $3.2 million in the Western Hemisphere. We also recorded a full impairment of our goodwill balance of $7.7 million during the first quarter of 2020, all of which was in the Eastern Hemisphere.