Geographic Areas

6 Months Ended

Jun. 30, 2020

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 major 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
	2020		2019		2020			2019		2020		2019		2020			2019			2020			2019
	(In thousands)
Revenues
Products
Point in Time	$	14,873	$	26,874	$	6,839		$	17,826	$	7,293	$	10,517	$	-		$	-		$	29,005		$	55,217
Over Time		21,924		12,009		7,377			6,714		4,827		3,293		-			-			34,128			22,016
Total Products		36,797		38,883		14,216			24,540		12,120		13,810		-			-			63,133			77,233
Services
Technical Advisory		10,456		6,929		1,937			4,044		2,938		2,085		-			-			15,331			13,058
Reconditioning		2,708		2,232		1,656			825		1,055		460		-			-			5,419			3,517
Total Services (excluding rental tools)		13,164		9,161		3,593			4,869		3,993		2,545		-			-			20,750			16,575
Leasing		3,674		4,962		1,826			3,439		1,063		1,599		-			-			6,563			10,000
Total Services (including rental tools)		16,838		14,123		5,419			8,308		5,056		4,144		-			-			27,313			26,575
Intercompany		2,317		2,519		689			202		3,413		1,040					-			6,419			3,761
Eliminations		-		-		-			-		-		-		(6,419	)		(3,761	)		(6,419	)		(3,761	)
Total Revenues	$	55,952	$	55,525	$	20,324		$	33,050	$	20,589	$	18,994	$	(6,419	)	$	(3,761	)	$	90,446		$	103,808
Depreciation and amortization	$	4,801	$	5,437	$	952		$	1,176	$	1,254	$	1,199	$	933		$	683		$	7,940		$	8,495
Income (loss) before income taxes	$	5,024	$	5,675	$	(2,349	)	$	7,321	$	5,615	$	6,704	$	(15,351	)	$	(14,900	)	$	(7,061	)	$	4,800

During the three months ended June 30, 2020, we recorded restructuring and other charges of $1.6 million, consisting primarily of a $0.9 million in write-down of long-lived assets in the Western Hemisphere and $0.7 million for consulting fees in DQ Corporate. During the three months ended June 30, 2019, 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
	2020		2019		2020			2019		2020		2019		2020			2019			2020			2019
	(In thousands)
Revenues
Products
Point in Time	$	37,837	$	50,640	$	15,801		$	31,944	$	12,740	$	20,957	$	-		$	-		$	66,378		$	103,541
Over Time		40,432		24,619		16,594			11,214		7,287		3,293		-			-			64,313			39,126
Total Products		78,269		75,259		32,395			43,158		20,027		24,250		-			-			130,691			142,667
Services
Technical Advisory		17,852		13,953		5,433			8,126		6,227		5,281		-			-			29,512			27,360
Reconditioning		6,268		5,053		2,498			1,747		1,286		891		-			-			10,052			7,691
Total Services (excluding rental tools)		24,120		19,006		7,931			9,873		7,513		6,172		-			-			39,564			35,051
Leasing		8,435		11,283		4,574			6,086		3,180		3,038		-			-			16,189			20,407
Total Services (including rental tools)		32,555		30,289		12,505			15,959		10,693		9,210		-			-			55,753			55,458
Intercompany		5,631		6,613		1,020			346		5,669		1,778		-			-			12,320			8,737
Eliminations		-		-		-			-		-		-		(12,320	)		(8,737	)		(12,320	)		(8,737	)
Total	$	116,455	$	112,161	$	45,920		$	59,463	$	36,389	$	35,238	$	(12,320	)	$	(8,737	)	$	186,444		$	198,125
Depreciation and amortization	$	10,423	$	10,857	$	1,926		$	2,228	$	2,594	$	2,397	$	1,870		$	1,369		$	16,813		$	16,851
Income (loss) before income taxes	$	13,177	$	8,408	$	(30,670	)	$	13,902	$	7,184	$	11,901	$	(38,059	)	$	(33,128	)	$	(48,368	)	$	1,083

During the six months ended June 30, 2020, we recorded impairments, restructuring and other charges of $42.0 million. Of these charges, $32.1 million was recorded in the Eastern Hemisphere, $2.8 million in the Western Hemisphere, $6.9 million in DQ Corporate and $0.2 million in Asia-Pacific. During the six months ended June 30, 2019, we recorded $3.4 million of restructuring and other charges, primarily related to consulting fees, and an approximate $1.1 million payout to our former Chief Operating Officer, pursuant to a separation agreement entered into with him during the first quarter of 2019.

	June 30, 2020			December 31, 2019
	(In thousands)
Total long-lived assets:
Western Hemisphere	$	366,922		$	379,776
Eastern Hemisphere		235,400			246,854
Asia-Pacific		69,096			71,384
Eliminations		(371,939	)		(371,938	)
Total	$	299,479		$	326,076
Total assets:
Western Hemisphere	$	785,060		$	732,716
Eastern Hemisphere		781,078			818,803
Asia-Pacific		188,768			181,188
Eliminations		(607,215	)		(526,142	)
Total	$	1,147,691		$	1,206,565

As of June 30, 2020, we wrote down $25.1 million related to inventory and long-lived assets balances, with $22.3 million recorded in the Eastern Hemisphere and $2.8 million in the Western Hemisphere. We also recorded a $7.7 million impairment of our Goodwill balance all of which was in the Eastern Hemisphere.