Impairment, Restructuring and Other Charges

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Impairment, Restructuring and Other Charges

7. Impairment, Restructuring and Other Charges

Restructuring and Other Charges

During the three and six months ended June 30, 2022, the Company incurred additional costs of approximately $5.8 million under the 2021 global strategic plan. These charges were primarily related to the write-downs of long-lived assets and other charges of approximately $5.1 million and $0.7 million, respectively. Other charges consisted of consulting and legal fees, office moves, cleanup and preparation costs, and brokerage fees.

During the three and six months ended June 30, 2021, the Company incurred additional costs under the former 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 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 six months ended June 30, 2022 and 2021 (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Inventory write-down	$	-	$	-	$	-	$	19,251
Severance		-		-		32		2,745
Long-lived asset write-down		5,055		-		5,055		-
Other		710		1,000		710		4,024
	$	5,765	$	1,000	$	5,797	$	26,020

The following table summarizes the changes to our accrued liability balance related to restructuring and other charges as of June 30, 2022 (in thousands):

	Total
Beginning balance at January 1, 2022	$	4,000
Additions for costs expensed		655
Reductions for payments		(1,358	)
Other		4
Ending balance at June 30, 2022	$	3,301