ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE | 74-2162088 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | ý | Accelerated filer | ¨ |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | ||
PART I | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
June 30, 2016 | December 31, 2015 | ||||||
(In thousands) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 491,729 | $ | 381,336 | |||
Trade receivables, net | 251,075 | 319,780 | |||||
Inventories, net | 339,862 | 344,458 | |||||
Deferred income taxes | 26,645 | 24,613 | |||||
Prepaids and other current assets | 31,280 | 54,111 | |||||
Total current assets | 1,140,591 | 1,124,298 | |||||
Property, plant and equipment, net | 293,857 | 294,251 | |||||
Deferred income taxes | 1,685 | — | |||||
Other assets | 11,717 | 9,701 | |||||
Total assets | $ | 1,447,850 | $ | 1,428,250 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 20,311 | $ | 30,934 | |||
Accrued income taxes | 26,894 | 14,052 | |||||
Customer prepayments | 8,433 | 18,388 | |||||
Accrued compensation | 14,524 | 17,957 | |||||
Other accrued liabilities | 16,298 | 19,484 | |||||
Total current liabilities | 86,460 | 100,815 | |||||
Deferred income taxes | 2,899 | 2,977 | |||||
Total liabilities | 89,359 | 103,792 | |||||
Commitments and contingencies (Note 7) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, 10,000,000 shares authorized at $0.01 par value (none issued) | — | — | |||||
Common stock: | |||||||
100,000,000 shares authorized at $0.01 par value, 37,563,379 and 37,951,223 shares issued and outstanding at June 30, 2016 and December 31, 2015 | 374 | 378 | |||||
Additional paid-in capital | — | — | |||||
Retained earnings | 1,480,733 | 1,425,344 | |||||
Accumulated other comprehensive losses | (122,616 | ) | (101,264 | ) | |||
Total stockholders’ equity | 1,358,491 | 1,324,458 | |||||
Total liabilities and stockholders’ equity | $ | 1,447,850 | $ | 1,428,250 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Revenues: | |||||||||||||||
Products | $ | 116,048 | $ | 176,099 | $ | 251,242 | $ | 363,623 | |||||||
Services | 26,391 | 39,177 | 57,758 | 77,655 | |||||||||||
Total revenues | 142,439 | 215,276 | 309,000 | 441,278 | |||||||||||
Cost and expenses: | |||||||||||||||
Cost of sales: | |||||||||||||||
Products | 65,407 | 98,349 | 142,329 | 204,356 | |||||||||||
Services | 14,474 | 19,315 | 30,648 | 38,446 | |||||||||||
Total cost of sales | 79,881 | 117,664 | 172,977 | 242,802 | |||||||||||
Selling, general and administrative | 5,762 | 33,633 | 18,983 | 50,591 | |||||||||||
Engineering and product development | 11,579 | 11,400 | 22,480 | 23,613 | |||||||||||
Total costs and expenses | 97,222 | 162,697 | 214,440 | 317,006 | |||||||||||
Operating income | 45,217 | 52,579 | 94,560 | 124,272 | |||||||||||
Interest income | 541 | 165 | 1,023 | 214 | |||||||||||
Interest expense | (10 | ) | (3 | ) | (14 | ) | (6 | ) | |||||||
Income before income taxes | 45,748 | 52,741 | 95,569 | 124,480 | |||||||||||
Income tax provision | 9,611 | 13,528 | 22,663 | 31,603 | |||||||||||
Net income | $ | 36,137 | $ | 39,213 | $ | 72,906 | $ | 92,877 | |||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.96 | $ | 1.01 | $ | 1.94 | $ | 2.40 | |||||||
Diluted | $ | 0.96 | $ | 1.01 | $ | 1.93 | $ | 2.39 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 37,564 | 38,686 | 37,658 | 38,729 | |||||||||||
Diluted | 37,713 | 38,888 | 37,779 | 38,912 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | 36,137 | $ | 39,213 | $ | 72,906 | $ | 92,877 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation adjustments | (20,087 | ) | 21,841 | (21,352 | ) | (10,693 | ) | ||||||||
Total comprehensive income | $ | 16,050 | $ | 61,054 | $ | 51,554 | $ | 82,184 |
Six months ended June 30, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Operating activities | |||||||
Net income | $ | 72,906 | $ | 92,877 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 15,500 | 15,139 | |||||
Stock-based compensation expense | 6,254 | 6,482 | |||||
(Gain) loss on sale of equipment | (29 | ) | 75 | ||||
Deferred income taxes | (3,828 | ) | (4,935 | ) | |||
Changes in operating assets and liabilities: | |||||||
Trade receivables, net | 64,200 | 70,508 | |||||
Inventories, net | 763 | 3,348 | |||||
Prepaids and other assets | 20,658 | (2,958 | ) | ||||
Excess tax benefits of stock options and awards | (26 | ) | (57 | ) | |||
Accounts payable and accrued expenses | (13,537 | ) | (67,468 | ) | |||
Net cash provided by operating activities | 162,861 | 113,011 | |||||
Investing activities | |||||||
Purchase of property, plant and equipment | (15,276 | ) | (11,204 | ) | |||
Proceeds from sale of equipment | 139 | 136 | |||||
Net cash used in investing activities | (15,137 | ) | (11,068 | ) | |||
Financing activities | |||||||
Repurchase of common stock | (24,238 | ) | (19,943 | ) | |||
Proceeds from exercise of stock options | 508 | 1,952 | |||||
Excess tax benefits of stock options and awards | 26 | 57 | |||||
Net cash used in financing activities | (23,704 | ) | (17,934 | ) | |||
Effect of exchange rate changes on cash activities | (13,627 | ) | (41 | ) | |||
Increase in cash and cash equivalents | 110,393 | 83,968 | |||||
Cash and cash equivalents at beginning of period | 381,336 | 298,705 | |||||
Cash and cash equivalents at end of period | $ | 491,729 | $ | 382,673 |
• | product revenues recognized under the percentage-of-completion method; and |
• | product revenues from the sale of products that do not qualify for the percentage-of-completion method. |
• | the contracts call for products which are designed to customer specifications; |
• | the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than one year in duration; |
• | the contracts contain specific terms as to milestones, progress billings and delivery dates; and |
• | product requirements cannot be filled directly from the Company’s standard inventory. |
• | technical advisory assistance; |
• | rental of running tools; and |
• | rework and reconditioning of customer-owned Dril-Quip products. |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
(In thousands) | |||||||||||
Weighted average common shares outstanding—basic | 37,564 | 38,686 | 37,658 | 38,729 | |||||||
Dilutive effect of common stock options and awards | 149 | 202 | 121 | 183 | |||||||
Weighted average common shares outstanding—diluted | 37,713 | 38,888 | 37,779 | 38,912 |
June 30, 2016 | December 31, 2015 | ||||||
(In thousands) | |||||||
Raw materials | $ | 92,011 | $ | 101,311 | |||
Work in progress | 86,444 | 104,102 | |||||
Finished goods | 203,459 | 178,292 | |||||
381,914 | 383,705 | ||||||
Less: allowance for obsolete and excess inventory | (42,052 | ) | (39,247 | ) | |||
Net inventory | $ | 339,862 | $ | 344,458 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In thousands) | |||||||||||||||
Revenues: | |||||||||||||||
Western Hemisphere | |||||||||||||||
Products | $ | 62,786 | $ | 82,560 | $ | 141,386 | $ | 174,375 | |||||||
Services | 16,783 | 21,498 | 33,776 | 43,807 | |||||||||||
Intercompany | 10,505 | 14,770 | 21,216 | 24,755 | |||||||||||
Total | $ | 90,074 | $ | 118,828 | $ | 196,378 | $ | 242,937 | |||||||
Eastern Hemisphere | |||||||||||||||
Products | $ | 29,913 | $ | 60,818 | $ | 63,074 | $ | 140,239 | |||||||
Services | 8,007 | 13,617 | 21,011 | 25,259 | |||||||||||
Intercompany | 22 | 4,602 | 207 | 4,823 | |||||||||||
Total | $ | 37,942 | $ | 79,037 | $ | 84,292 | $ | 170,321 | |||||||
Asia-Pacific | |||||||||||||||
Products | $ | 23,349 | $ | 32,721 | $ | 46,782 | $ | 49,009 | |||||||
Services | 1,601 | 4,062 | 2,971 | 8,589 | |||||||||||
Intercompany | 236 | 1,208 | 516 | 2,389 | |||||||||||
Total | $ | 25,186 | $ | 37,991 | $ | 50,269 | $ | 59,987 | |||||||
Summary | |||||||||||||||
Products | $ | 116,048 | $ | 176,099 | $ | 251,242 | $ | 363,623 | |||||||
Services | 26,391 | 39,177 | 57,758 | 77,655 | |||||||||||
Intercompany | 10,763 | 20,580 | 21,939 | 31,967 | |||||||||||
Eliminations | (10,763 | ) | (20,580 | ) | (21,939 | ) | (31,967 | ) | |||||||
Total | $ | 142,439 | $ | 215,276 | $ | 309,000 | $ | 441,278 | |||||||
Income before income taxes: | |||||||||||||||
Western Hemisphere | $ | 14,035 | $ | 27,016 | $ | 38,991 | $ | 59,964 | |||||||
Eastern Hemisphere | 25,050 | 13,875 | 41,734 | 45,583 | |||||||||||
Asia-Pacific | 5,110 | 9,064 | 11,223 | 12,489 | |||||||||||
Eliminations | 1,553 | 2,786 | 3,621 | 6,444 | |||||||||||
Total | $ | 45,748 | $ | 52,741 | $ | 95,569 | $ | 124,480 |
June 30, 2016 | December 31, 2015 | ||||||
(In thousands) | |||||||
Total Long-Lived Assets: | |||||||
Western Hemisphere | $ | 217,575 | $ | 208,408 | |||
Eastern Hemisphere | 38,108 | 43,449 | |||||
Asia-Pacific | 54,503 | 55,021 | |||||
Eliminations | (2,927 | ) | (2,926 | ) | |||
Total | $ | 307,259 | $ | 303,952 | |||
Total Assets: | |||||||
Western Hemisphere | $ | 691,665 | $ | 677,460 | |||
Eastern Hemisphere | 385,314 | 391,672 | |||||
Asia-Pacific | 393,128 | 372,823 | |||||
Eliminations | (22,257 | ) | (13,705 | ) | |||
Total | $ | 1,447,850 | $ | 1,428,250 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
Brent Crude Oil Price per Barrel | 2016 | 2015 | 2016 | 2015 | |||||||||||
Low | $ | 35.88 | $ | 55.73 | $ | 26.01 | $ | 45.13 | |||||||
High | 50.73 | 66.33 | 50.73 | 66.33 | |||||||||||
Average | 45.57 | 61.65 | 39.80 | 57.84 | |||||||||||
Closing | 48.05 | 60.31 | 48.05 | 60.31 |
Six months ended June 30, | |||||||||||
2016 | 2015 | ||||||||||
Floating Rigs | Jack-up Rigs | Floating Rigs | Jack-up Rigs | ||||||||
Western Hemisphere | 93 | 47 | 121 | 73 | |||||||
Eastern Hemisphere | 67 | 70 | 90 | 90 | |||||||
Asia-Pacific | 30 | 223 | 44 | 257 | |||||||
TOTAL | 190 | 340 | 255 | 420 |
Floating | Jack-Up | |||||||
Rigs | Rigs | Total | ||||||
2016 | 19 | 48 | 67 | |||||
2017 | 25 | 52 | 77 | |||||
2018 | 11 | 11 | 22 | |||||
2019 | 9 | 3 | 12 | |||||
After 2019 or unspecified delivery date | 3 | 5 | 8 | |||||
67 | 119 | 186 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Revenues: | |||||||||||
Products | 81.5 | % | 81.8 | % | 81.3 | % | 82.4 | % | |||
Services | 18.5 | 18.2 | 18.7 | 17.6 | |||||||
Total revenues: | 100.0 | 100.0 | 100.0 | 100.0 | |||||||
Cost of sales: | |||||||||||
Products | 45.9 | 45.7 | 46.1 | 46.3 | |||||||
Services | 10.2 | 9.0 | 9.9 | 8.7 | |||||||
Total cost of sales: | 56.1 | 54.7 | 56.0 | 55.0 | |||||||
Selling, general and administrative expenses | 4.1 | 15.6 | 6.1 | 11.5 | |||||||
Engineering and product development expenses | 8.1 | 5.3 | 7.3 | 5.4 | |||||||
Operating income | 31.7 | 24.4 | 30.6 | 28.2 | |||||||
Interest income | 0.4 | 0.1 | 0.3 | — | |||||||
Income before income taxes | 32.1 | 24.5 | 30.9 | 28.2 | |||||||
Income tax provision | 6.7 | 6.3 | 7.3 | 7.2 | |||||||
Net income | 25.4 | % | 18.2 | % | 23.6 | % | 21.0 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In millions) | |||||||||||||||
Revenues: | |||||||||||||||
Products | |||||||||||||||
Subsea equipment | $ | 100.8 | $ | 160.6 | $ | 221.9 | $ | 328.6 | |||||||
Surface equipment | 5.8 | 5.8 | 9.9 | 11.3 | |||||||||||
Offshore rig equipment | 9.4 | 9.7 | 19.4 | 23.7 | |||||||||||
Total products | 116.0 | 176.1 | 251.2 | 363.6 | |||||||||||
Services | 26.4 | 39.2 | 57.8 | 77.7 | |||||||||||
Total revenues | $ | 142.4 | $ | 215.3 | $ | 309.0 | $ | 441.3 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Operating activities | $ | 162,861 | $ | 113,011 | |||
Investing activities | (15,137 | ) | (11,068 | ) | |||
Financing activities | (23,704 | ) | (17,934 | ) | |||
124,020 | 84,009 | ||||||
Effect of exchange rate changes on cash activities | (13,627 | ) | (41 | ) | |||
Increase (decrease) in cash and cash equivalents | $ | 110,393 | $ | 83,968 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Plan or Program | Maximum Dollar Value (in millions) of Shares that May Yet Be Purchased Under the Program | ||||||||
April 2016 | — | $ | — | — | $ | 24.2 | ||||||
May 2016 | 345,600 | 60.56 | 345,600 | 3.3 | ||||||||
June 2016 | 54,900 | 60.21 | 54,900 | — | ||||||||
Total | 400,500 | $ | 60.51 | 400,500 | $ | — |
• | future operating results and cash flow; |
• | scheduled, budgeted and other future capital expenditures; |
• | working capital requirements; |
• | the need for and the availability of expected sources of liquidity; |
• | the introduction into the market of the Company’s future products; |
• | the market for the Company’s existing and future products; |
• | the Company’s ability to develop new applications for its technologies; |
• | the exploration, development and production activities of the Company’s customers; |
• | compliance with present and future environmental regulations and costs associated with environmentally related penalties, capital expenditures, remedial actions and proceedings; |
• | effects of pending legal proceedings; |
• | changes in customers’ future product and service requirements that may not be cost effective or within the Company’s capabilities; and |
• | future operations, financial results, business plans and cash needs. |
• | the volatility of oil and natural gas prices; |
• | the cyclical nature of the oil and gas industry; |
• | uncertainties associated with the United States and worldwide economies; |
• | uncertainties regarding political tensions in the Middle East, Africa and elsewhere; |
• | current and potential governmental regulatory actions in the United States and regulatory actions and political unrest in other countries; |
• | uncertainties regarding future oil and gas exploration and production activities, including new regulations, customs requirements and product testing requirements; |
• | operating interruptions (including explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, labor difficulties, transportation interruptions, spills and releases and other environmental risks); |
• | project terminations, suspensions or scope adjustments to contracts reflected in the Company’s backlog; |
• | the Company’s reliance on product development; |
• | technological developments; |
• | the Company’s reliance on third-party technologies; |
• | acquisition and merger activities involving the Company or its competitors; |
• | the Company’s dependence on key employees and skilled machinists, fabricators and technical personnel; |
• | the Company’s reliance on sources of raw materials; |
• | impact of environmental matters, including future environmental regulations; |
• | competitive products and pricing pressures; |
• | fluctuations in foreign currency, including those attributable to Brexit; |
• | the ability of the Organization of Petroleum Exporting Countries (OPEC) to set and maintain production levels and pricing; |
• | the Company’s reliance on significant customers; |
• | creditworthiness of the Company’s customers; |
• | fixed-price contracts; |
• | changes in general economic, market or business conditions; |
• | access to capital markets; |
• | negative outcome of litigation, threatened litigation or government proceedings; |
• | terrorist threats or acts, war and civil disturbances; and |
• | the interpretation of foreign tax laws with respect to our foreign subsidiaries. |
Exhibit No. | Description | |
*3.1 | — | Restated Certificate of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on May 20, 2014). |
*3.2 | — | Certificate of Designations of Series A Junior Participating Preferred Stock of the Company (incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on November 25, 2008). |
*3.3 | — | Amended and Restated Bylaws of the Company (incorporated herein by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on May 20, 2014). |
*4.1 | — | Form of certificate representing Common Stock (incorporated herein by reference to Exhibit 4.2 to the Company’s Registration Statement on Form S-1 (Registration No. 333-33447). |
*4.2 | — | Rights Agreement dated as of November 24, 2008 between Dril-Quip, Inc. and Mellon Investor Services LLC, as Rights Agent (incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on November 25, 2008). |
31.1 | — | Rule 13a-14(a)/15d-14(a) Certification of Blake T. DeBerry. |
31.2 | — | Rule 13a-14(a)/15d-14(a) Certification of Jerry M. Brooks. |
32.1 | — | Section 1350 Certification of Blake T. DeBerry. |
32.2 | — | Section 1350 Certification of Jerry M. Brooks. |
101.INS | — | XBRL Instance Document |
101.SCH | — | XBRL Schema Document |
101.CAL | — | XBRL Calculation Document |
101.DEF | — | XBRL Definition Linkbase Document |
101.LAB | — | XBRL Label Linkbase Document |
101.PRE | — | XBRL Presentation Linkbase Document |
DRIL-QUIP, INC. | ||
Date: July 29, 2016 | BY: | /s/ Jerry M. Brooks |
Jerry M. Brooks, | ||
Vice President—Finance and | ||
Chief Financial Officer | ||
(Principal Accounting Officer and | ||
Duly Authorized Signatory) |
1. | I have reviewed this quarterly report on Form 10-Q of Dril-Quip, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: July 29, 2016 | |
/s/ Blake T. DeBerry | |
Blake T. DeBerry | |
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Dril-Quip, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: July 29, 2016 | |
/s/ Jerry M. Brooks | |
Jerry M. Brooks | |
Vice President—Finance and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: July 29, 2016 | |
/s/ Blake T. DeBerry | |
Blake T. DeBerry | |
President and Chief Executive Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: July 29, 2016 | |
/s/ Jerry M. Brooks | |
Jerry M. Brooks | |
Vice President—Finance and Chief Financial Officer |
DOCUMENT AND ENTITY INFORMATION - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jul. 27, 2016 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | DRIL-QUIP INC | |
Entity Central Index Key | 0001042893 | |
Trading Symbol | DRQ | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (shares) | 37,570,727 |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares |
Jun. 30, 2016 |
Dec. 31, 2015 |
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Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 37,563,379 | 37,951,223 |
Common stock, shares outstanding (in shares) | 37,563,379 | 37,951,223 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Revenues: | ||||
Products | $ 116,048 | $ 176,099 | $ 251,242 | $ 363,623 |
Services | 26,391 | 39,177 | 57,758 | 77,655 |
Total revenues | 142,439 | 215,276 | 309,000 | 441,278 |
Cost of sales: | ||||
Products | 65,407 | 98,349 | 142,329 | 204,356 |
Services | 14,474 | 19,315 | 30,648 | 38,446 |
Total cost of sales | 79,881 | 117,664 | 172,977 | 242,802 |
Selling, general and administrative | 5,762 | 33,633 | 18,983 | 50,591 |
Engineering and product development | 11,579 | 11,400 | 22,480 | 23,613 |
Total costs and expenses | 97,222 | 162,697 | 214,440 | 317,006 |
Operating income | 45,217 | 52,579 | 94,560 | 124,272 |
Interest income | 541 | 165 | 1,023 | 214 |
Interest expense | (10) | (3) | (14) | (6) |
Income before income taxes | 45,748 | 52,741 | 95,569 | 124,480 |
Income tax provision | 9,611 | 13,528 | 22,663 | 31,603 |
Net income | $ 36,137 | $ 39,213 | $ 72,906 | $ 92,877 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.96 | $ 1.01 | $ 1.94 | $ 2.40 |
Diluted (in dollars per share) | $ 0.96 | $ 1.01 | $ 1.93 | $ 2.39 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 37,564 | 38,686 | 37,658 | 38,729 |
Diluted (in shares) | 37,713 | 38,888 | 37,779 | 38,912 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 36,137 | $ 39,213 | $ 72,906 | $ 92,877 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (20,087) | 21,841 | (21,352) | (10,693) |
Total comprehensive income | $ 16,050 | $ 61,054 | $ 51,554 | $ 82,184 |
Organization and Principles of Consolidation |
6 Months Ended |
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Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Principles of Consolidation | Organization and Principles of Consolidation Dril-Quip, Inc., a Delaware corporation (the “Company” or “Dril-Quip”), designs, manufactures, sells and services highly engineered offshore drilling and production equipment that is well suited for use in deepwater, harsh environment and severe service applications. The Company’s principal products consist of subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors and diverters. Dril-Quip’s products are used by major integrated, large independent and foreign national oil and gas companies in offshore areas throughout the world. Dril-Quip also provides technical advisory assistance on an as-requested basis during installation of its products, as well as rework and reconditioning services for customer-owned Dril-Quip products. In addition, Dril-Quip’s customers may rent or purchase running tools from the Company for use in the installation and retrieval of the Company’s products. 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 major manufacturing facilities in all three of its headquarter locations as well as Macae, Brazil. The condensed consolidated financial statements included herein are unaudited. The balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date. In the opinion of management, the unaudited condensed consolidated interim financial statements include all normal recurring adjustments necessary for a fair presentation of the financial position as of June 30, 2016 and the results of operations and comprehensive income for the three and six months ended June 30, 2016 and 2015 and the cash flows for the six months ended June 30, 2016 and 2015. Certain information and footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Management believes the unaudited interim related disclosures in these condensed consolidated financial statements are adequate. The results of operations, comprehensive income and cash flows for the six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year. The condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. |
Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition, inventories and contingent liabilities. Revenue Recognition Product revenues The Company recognizes product revenues from two methods:
Revenues recognized under the percentage-of-completion method The Company uses the percentage-of-completion method on long-term project contracts that have the following characteristics:
For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percentage complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. Under the percentage-of-completion method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Condensed Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported in trade receivables. Unbilled revenues are expected to be billed and collected within one year. At June 30, 2016 and December 31, 2015, receivables included $62.5 million and $70.8 million of unbilled receivables, respectively. For the quarter ended June 30, 2016, there were 6 projects representing approximately 16% of the Company’s total revenues and approximately 19% of its product revenues that were accounted for using percentage-of-completion accounting, compared to 10 projects during the second quarter of 2015, which represented approximately 17% of the Company’s total revenues and approximately 21% of its product revenues. For the six months ended June 30, 2016, there were 10 projects representing approximately 15% of the Company's total revenues and approximately 19% of its product revenues, compared to 13 projects that represented approximately 16% of the Company's total revenues and approximately 19% of its product revenues for the six months ended June 30, 2015, all of which were accounted for using percentage-of-completion accounting. Revenues not recognized under the percentage-of-completion method Revenues from the sale of inventory products, not accounted for under the percentage-of-completion method, are recorded at the time the manufacturing processes are complete and ownership is transferred to the customer. Service revenues The Company recognizes service revenues from three sources:
The Company does not install products for its customers, but it does provide technical advisory assistance. At the time of delivery of the product, the customer is not obligated to buy or rent the Company’s running tools and the Company is not obligated to perform any subsequent services relating to installation. Technical advisory assistance service revenue is recorded at the time the service is rendered. Service revenues associated with the rental of running and installation tools are recorded as earned. Rework and reconditioning service revenues are recorded when the refurbishment process is complete. The Company normally negotiates contracts for products, including those accounted for under the percentage-of-completion method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may use a third party or their own personnel. Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature. Earnings Per Share Basic earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed considering the dilutive effect of stock options and awards using the treasury stock method. In each relevant period, the net income used in the basic and dilutive earnings per share calculations is the same. The following table reconciles the weighted average basic number of common shares outstanding and the weighted average diluted number of common shares outstanding for the purpose of calculating basic and diluted earnings per share:
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New Accounting Standards |
6 Months Ended |
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Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-09 “Improvements to Employee Share-Based Payment Accounting (Topic 718).” The standard simplifies several aspects of accounting for share-based payment transactions, including the accounting for income taxes, forfeitures and statutory withholding requirements, as well as classification in the statement of cash flows. The standard is effective for annual periods beginning after December 15, 2016, including interim periods within those fiscal years. The Company is evaluating the impact of the new standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842).” The new standard requires lessees to recognize lease assets (right of use) and lease obligations (lease liability) for leases previously classified as operating leases under generally accepted accounting principles on the balance sheet for leases with terms in excess of 12 months. The standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the impact of the new standard on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17 “Income Taxes (Topic 740).” In an effort to reduce complexity, the requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts will no longer be necessary. In the future, all deferred income taxes will be considered noncurrent and will continue to be offset into a single amount within each country. The standard is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. The Company’s financial statements will be revised to reflect this amendment beginning in the first quarter of 2017. In July 2015, the FASB issued ASU 2015-11 “Simplifying the Measurement of Inventory (Topic 330).” This standard states that inventory within the scope of this update should be measured at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal, and transportation. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is evaluating the impact of the new standard on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606).” The amendment applies a new five-step revenue recognition model to be used in recognizing revenues associated with customer contracts. The amendment requires disclosure sufficient to enable readers of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures, significant judgments and changes in judgments and assets recognized from the costs to obtain or fulfill the contract. The standard’s effective date was originally for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. On April 1, 2015, the FASB voted to defer the effective date by one year to December 15, 2017 and interim periods within annual reporting periods beginning after December 15, 2017. The Company is evaluating the impact of the new standard on its consolidated financial statements. |
Stock-Based Compensation and Stock Awards |
6 Months Ended |
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Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Stock Awards | Stock-Based Compensation and Stock Awards The Company recognized approximately $3.1 million of stock-based compensation expense during the three months ended June 30, 2016 and 2015, which is included in the selling, general and administrative expense line on the Condensed Consolidated Statements of Income. For the six months ended June 30, 2016 and 2015, stock-based compensation expense totaled $6.3 million and $6.5 million, respectively. No stock-based compensation expense was capitalized during the three or six months ended June 30, 2016 or 2015. |
Inventories, net |
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Inventories, net | Inventories, net Inventories consist of the following:
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Geographic Areas |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographic Areas | Geographic Areas
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Brazilian Tax Issue From 2002 to 2007, the Company’s Brazilian subsidiary imported goods through the State of Espirito Santo in Brazil and subsequently transferred them to its facility in the State of Rio de Janeiro. During that period, the Company’s Brazilian subsidiary paid taxes to the State of Espirito Santo on its imports. Upon the final sale of these goods, the Company’s Brazilian subsidiary collected taxes from customers and remitted them to the State of Rio de Janeiro net of the taxes paid on importation of those goods to the State of Espirito Santo in accordance with the Company’s understanding of Brazilian tax laws. In August 2007, the State of Rio de Janeiro served the Company’s Brazilian subsidiary with assessments to collect a state tax on the importation of goods through the State of Espirito Santo from 2002 to 2007 claiming that these taxes were due and payable to it under applicable law. The Company settled these assessments with payments to the State of Rio de Janeiro of $12.2 million in March 2010 and $3.9 million in December 2010. Approximately $7.8 million of these settlement payments were attributable to penalties, interest and amounts that had expired under the statute of limitations so that amount was recorded as an expense. The remainder of the settlement payments generated credits (recorded as a long-term prepaid tax) to be used to offset future state taxes on sales to customers in the State of Rio de Janeiro, which were subject to certification by the tax authorities. During the second quarter of 2015, the tax authorities certified approximately $8.3 million of those credits paid in 2010 and granted an additional $2.3 million in inflation-related credits. The additional amount of credits granted by the tax authorities increased long-term prepaid taxes and decreased selling, general and administrative expenses by $2.3 million. In December 2010 and January 2011, the Company’s Brazilian subsidiary was served with two additional assessments totaling approximately $13.0 million from the State of Rio de Janeiro to cancel the credits associated with the tax payments to the State of Espirito Santo (“Santo Credits”) on the importation of goods from July 2005 to October 2007. The Santo Credits are not related to the credits described above. The Company has objected to these assessments on the grounds that they would represent double taxation on the importation of the same goods and that the Company is entitled to the credits under applicable Brazilian law. With regard to the December 2010 assessment, the Company’s Brazilian subsidiary has filed an appeal with the relevant State of Rio de Janeiro judicial court to annul the tax assessment following a ruling against the Company by the tax administration’s highest council. In connection with that appeal, the Company was required to deposit with the court approximately $3.1 million in December 2014 as the full amount of the assessment with penalties and interest. The Company intends to file a similar appeal in the judicial system with regard to the January 2011 assessment as a result of a ruling against the Company by the tax administration’s highest council once that ruling is finalized. The Company believes that these credits are valid and that success in the judicial court process is probable. Based upon this analysis, the Company has not accrued any liability in conjunction with this matter. Since 2007, the Company’s Brazilian subsidiary has paid taxes on the importation of goods directly to the State of Rio de Janeiro and the Company does not expect any similar issues to exist for periods subsequent to 2007. General The Company operates its business and markets its products and services in most of the significant oil and gas producing areas in the world and is, therefore, subject to the risks customarily attendant to international operations and dependent on the condition of the oil and gas industry. Additionally, products of the Company are used in potentially hazardous drilling, completion, and production applications that can cause personal injury, product liability and environmental claims. Although exposure to such risk has not resulted in any significant problems in the past, there can be no assurance that ongoing and future developments will not adversely impact the Company. The Company is also involved in a number of legal actions arising in the ordinary course of business. Although no assurance can be given with respect to the ultimate outcome of such legal action, in the opinion of management, the ultimate liability with respect thereto will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. |
Significant Accounting Policies (Policies) |
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Jun. 30, 2016 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition, inventories and contingent liabilities. |
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Revenue Recognition | Revenue Recognition Product revenues The Company recognizes product revenues from two methods:
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Revenues recognized under the percentage-of-completion method | Revenues recognized under the percentage-of-completion method The Company uses the percentage-of-completion method on long-term project contracts that have the following characteristics:
For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percentage complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project. Under the percentage-of-completion method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Condensed Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported in trade receivables. Unbilled revenues are expected to be billed and collected within one year. |
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Revenues not recognized under the percentage-of-completion method | Revenues not recognized under the percentage-of-completion method Revenues from the sale of inventory products, not accounted for under the percentage-of-completion method, are recorded at the time the manufacturing processes are complete and ownership is transferred to the customer. |
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Service revenues | Service revenues The Company recognizes service revenues from three sources:
The Company does not install products for its customers, but it does provide technical advisory assistance. At the time of delivery of the product, the customer is not obligated to buy or rent the Company’s running tools and the Company is not obligated to perform any subsequent services relating to installation. Technical advisory assistance service revenue is recorded at the time the service is rendered. Service revenues associated with the rental of running and installation tools are recorded as earned. Rework and reconditioning service revenues are recorded when the refurbishment process is complete. The Company normally negotiates contracts for products, including those accounted for under the percentage-of-completion method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may use a third party or their own personnel. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature. |
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Earnings Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed considering the dilutive effect of stock options and awards using the treasury stock method. |
Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | The following table reconciles the weighted average basic number of common shares outstanding and the weighted average diluted number of common shares outstanding for the purpose of calculating basic and diluted earnings per share:
|
Inventories, net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consist of the following:
|
Geographic Areas (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting |
|
Organization and Principles of Consolidation - Additional Information (Detail) |
6 Months Ended |
---|---|
Jun. 30, 2016
Segment
Location
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of geographic segments | Segment | 3 |
Number of headquarter locations | Location | 3 |
Significant Accounting Policies - Additional Information (Detail) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
Project
|
Jun. 30, 2015
Project
|
Jun. 30, 2016
USD ($)
Project
Source
Method
|
Jun. 30, 2015
Project
|
Dec. 31, 2015
USD ($)
|
|
Accounting Policies [Abstract] | |||||
Number of product revenue sources | Method | 2 | ||||
Unbilled receivables | $ | $ 62.5 | $ 62.5 | $ 70.8 | ||
Number of projects | Project | 6 | 10 | 10 | 13 | |
Percentage of total revenues | 16.00% | 17.00% | 15.00% | 16.00% | |
Percentage of product revenues | 19.00% | 21.00% | 19.00% | 19.00% | |
Number of service revenue sources | Source | 3 |
Significant Accounting Policies - Schedule of Earnings Per Share (Detail) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Accounting Policies [Abstract] | ||||
Weighted average common shares outstanding—basic (in shares) | 37,564 | 38,686 | 37,658 | 38,729 |
Dilutive effect of common stock options and awards (in shares) | 149 | 202 | 121 | 183 |
Weighted average common shares outstanding—diluted (in shares) | 37,713 | 38,888 | 37,779 | 38,912 |
Stock-Based Compensation and Stock Awards - Additional Information (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock-based compensation expense | $ 3,100,000 | $ 3,100,000 | $ 6,254,000 | $ 6,482,000 |
Capitalized expense | $ 0 | $ 0 | $ 0 | $ 0 |
Inventories, net - Schedule of Inventories (Detail) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 92,011 | $ 101,311 |
Work in progress | 86,444 | 104,102 |
Finished goods | 203,459 | 178,292 |
Inventory, gross, Total | 381,914 | 383,705 |
Less: allowance for obsolete and excess inventory | (42,052) | (39,247) |
Net inventory | $ 339,862 | $ 344,458 |
Commitments and Contingencies - Additional Information (Detail) $ in Millions |
1 Months Ended | 2 Months Ended | 3 Months Ended | 10 Months Ended | ||
---|---|---|---|---|---|---|
Dec. 31, 2010
USD ($)
|
Mar. 31, 2010
USD ($)
|
Jan. 31, 2011
USD ($)
Assessment
|
Jun. 30, 2015
USD ($)
|
Dec. 31, 2010
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Commitments And Contingencies [Line Items] | ||||||
Court deposit | $ 3.1 | |||||
Brazil [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Tax assessment settled with payments | $ 3.9 | $ 12.2 | ||||
Amount of interest, penalties and monetary restatement fees on tax assessments | $ 7.8 | |||||
Tax credits certified | $ 8.3 | |||||
Number of additional assessments | Assessment | 2 | |||||
Value of assessments served on Brazilian subsidiary | $ 13.0 | |||||
Brazil [Member] | Inflation Related Credits [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Tax credits certified | $ 2.3 |
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