Geographic Areas

6 Months Ended

Jun. 30, 2022

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 June 30,
	Western Hemisphere					Eastern Hemisphere				Asia-Pacific					DQ Corporate						Total
	2022		2021			2022		2021		2022			2021		2022			2021			2022			2021
	(In thousands)
Revenues
Products
Point in Time	$	19,437	$	25,948		$	3,356	$	5,956	$	4,706		$	6,890	$	-		$	-		$	27,499		$	38,794
Over-Time		24,429		11,311			8,813		2,609		1,238			3,146		-			-			34,480			17,066
Total Products		43,866		37,259			12,169		8,565		5,944			10,036		-			-			61,979			55,860
Services
Technical Advisory		9,674		7,781			2,592		2,127		2,472			3,787		-			-			14,738			13,695
Reconditioning		3,393		2,657			672		444		793			740		-			-			4,858			3,841
Total Services (excluding rental tools)		13,067		10,438			3,264		2,571		3,265			4,527		-			-			19,596			17,536
Leasing		8,426		4,233			2,518		1,944		1,459			1,224		-			-			12,403			7,401
Total Services (including rental tools)		21,493		14,671			5,782		4,515		4,724			5,751		-			-			31,999			24,937
Intercompany		4,297		2,553			1,896		496		151			6,223					-			6,344			9,272
Eliminations		-		-			-		-		-			-		(6,344	)		(9,272	)		(6,344	)		(9,272	)
Total Revenues	$	69,656	$	54,483		$	19,847	$	13,576	$	10,819		$	22,010	$	(6,344	)	$	(9,272	)	$	93,978		$	80,797
Depreciation and amortization	$	4,658	$	4,250		$	1,055	$	986	$	1,045		$	1,180	$	912		$	927		$	7,670		$	7,343
Income (loss) before income taxes	$	14,092	$	(2,175	)	$	2,282	$	3,553	$	(517	)	$	4,800	$	(19,252	)	$	(20,838	)	$	(3,395	)	$	(14,660	)

During the three months ended June 30, 2022, the Company incurred additional costs under the 2021 global strategic plan. These charges were primarily related to a $2.6 million write down of our Houston corporate administrative building in DQ Corporate and other long-lived asset write-downs of $2.5 million in the Western Hemisphere. In addition, there were other charges of $0.7 million primarily related to consulting and legal fees, office moves, cleanup and preparation costs, and brokerage fees in DQ Corporate. During the three months ended June 30, 2021, we recorded restructuring and other charges of $1.0 million, consisting primarily of consulting fees in DQ Corporate.

	Six months ended June 30,
	Western Hemisphere					Eastern Hemisphere				Asia-Pacific					DQ Corporate						Total
	2022		2021			2022		2021		2022			2021		2022			2021			2022			2021
	(In thousands)
Revenues
Products
Point in Time	$	40,508	$	54,235		$	7,096	$	10,809	$	11,117		$	15,467	$	-		$	-		$	58,721		$	80,511
Over-Time		40,019		20,940			16,856		4,478		2,025			5,514		-			-			58,900			30,932
Total Products		80,527		75,175			23,952		15,287		13,142			20,981		-			-			117,621			111,443
Services
Technical Advisory		17,964		16,102			5,290		4,020		5,000			7,974		-			-			28,254			28,096
Reconditioning		6,688		4,840			1,236		1,270		917			997		-			-			8,841			7,107
Total Services (excluding rental tools)		24,652		20,942			6,526		5,290		5,917			8,971		-			-			37,095			35,203
Leasing		13,627		8,671			4,471		3,072		4,301			3,647		-			-			22,399			15,390
Total Services (including rental tools)		38,279		29,613			10,997		8,362		10,218			12,618		-			-			59,494			50,593
Intercompany		8,206		4,777			2,460		637		1,610			8,297		-			-			12,276			13,711
Eliminations		-		-			-		-		-			-		(12,276	)		(13,711	)		(12,276	)		(13,711	)
Total	$	127,012	$	109,565		$	37,409	$	24,286	$	24,970		$	41,896	$	(12,276	)	$	(13,711	)	$	177,115		$	162,036
Depreciation and amortization	$	9,229	$	8,555		$	2,075	$	1,977	$	2,099		$	2,383	$	1,826		$	1,844		$	15,229		$	14,759
Income (loss) before income taxes	$	22,645	$	(21,551	)	$	2,357	$	690	$	(177	)	$	15,538	$	(33,662	)	$	(41,309	)	$	(8,837	)	$	(46,632	)

During the six months ended June 30, 2022, the Company incurred additional costs under the 2021 global strategic plan. These charges were primarily related to a $2.6 million write down of our Houston corporate administrative building in DQ Corporate and other long-lived asset write downs of $2.5 million in the Western Hemisphere. In addition, there were other charges of $0.7 million primarily related to consulting and legal fees, office moves, cleanup and preparation costs, and brokerage fees in DQ Corporate. During the six months ended June 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.

	June 30, 2022			December 31, 2021
	(In thousands)
Total long-lived assets:
Western Hemisphere	$	302,294		$	335,760
Eastern Hemisphere		220,602			224,345
Asia-Pacific		56,761			58,308
Eliminations		(353,954	)		(353,536	)
Total	$	225,703		$	264,877
Total assets:
Western Hemisphere	$	868,117		$	686,361
Eastern Hemisphere		803,824			805,574
Asia-Pacific		180,298			184,097
Eliminations		(878,673	)		(665,606	)
Total	$	973,566		$	1,010,426

As of June 30, 2022, the Company had recorded a $2.6 million write down of our Houston corporate administrative building in DQ Corporate and other long-lived asset write downs of $2.5 million in the Western Hemisphere. During 2021, we had recorded inventory write-downs of approximately $66.9 million. Out of these, $44.2 million were recorded in the Western Hemisphere, $13.0 million in the Asia-Pacific region and $9.7 million in the Eastern Hemisphere. Additionally, we wrote-down approximately $4.2 million of our long-lived assets in the Asia-Pacific region.