Geographic Areas

9 Months Ended

Sep. 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 September 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	$	16,937	$	30,135	$	8,033	$	18,514	$	7,776		$	10,890	$	-		$	-		$	32,746		$	59,539
Over Time		19,158		12,425		5,344		5,143		9,203			4,744		-			-			33,705			22,312
Total Products		36,095		42,560		13,377		23,657		16,979			15,634		-			-			66,451			81,851
Services
Technical Advisory		8,317		8,165		2,285		3,301		2,402			2,050		-			-			13,004			13,516
Reconditioning		2,657		2,892		1,404		1,353		713			123		-			-			4,774			4,368
Total Services (excluding rental tools)		10,974		11,057		3,689		4,654		3,115			2,173		-			-			17,778			17,884
Leasing		5,384		4,658		1,970		2,719		(288	)		1,115		-			-			7,066			8,492
Total Services (including rental tools)		16,358		15,715		5,659		7,373		2,827			3,288		-			-			24,844			26,376
Intercompany		3,060		2,572		1,006		72		4,329			2,458					-			8,395			5,102
Eliminations		-		-		-		-		-			-		(8,395	)		(5,102	)		(8,395	)		(5,102	)
Total Revenues	$	55,513	$	60,847	$	20,042	$	31,102	$	24,135		$	21,380	$	(8,395	)	$	(5,102	)	$	91,295		$	108,227
Depreciation and amortization	$	4,831	$	5,327	$	882	$	970	$	1,265		$	1,240	$	930		$	767		$	7,908		$	8,304
Income (loss) before income taxes	$	3,339	$	3,882	$	3,255	$	11,627	$	5,396		$	6,051	$	(14,044	)	$	(19,458	)	$	(2,054	)	$	2,102

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. During the three months ended September 30, 2019, we recorded restructuring and other charges of $0.5 million, consisting primarily of consulting fees in DQ Corporate.

	Nine months ended September 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	$	54,774	$	81,120	$	23,834		$	50,458	$	20,516	$	31,846	$	-		$	-		$	99,124		$	163,424
Over Time		59,590		36,700		21,938			16,357		16,490		8,037		-			-			98,018			61,094
Total Products		114,364		117,820		45,772			66,815		37,006		39,883		-			-			197,142			224,518
Services
Technical Advisory		26,169		22,118		7,718			11,428		8,629		7,331		-			-			42,516			40,877
Reconditioning		8,925		7,945		3,902			3,100		1,999		1,014		-			-			14,826			12,059
Total Services (excluding rental tools)		35,094		30,063		11,620			14,528		10,628		8,345		-			-			57,342			52,936
Leasing		13,819		15,942		6,544			8,804		2,892		4,153		-			-			23,255			28,899
Total Services (including rental tools)		48,913		46,005		18,164			23,332		13,520		12,498		-			-			80,597			81,835
Intercompany		8,691		9,185		2,026			418		9,998		4,237		-			-			20,715			13,840
Eliminations		-		-		-			-		-		-		(20,715	)		(13,840	)		(20,715	)		(13,840	)
Total	$	171,968	$	173,010	$	65,962		$	90,565	$	60,524	$	56,618	$	(20,715	)	$	(13,840	)	$	277,739		$	306,353
Depreciation and amortization	$	15,254	$	16,183	$	2,808		$	3,198	$	3,859	$	3,637	$	2,800		$	2,137		$	24,721		$	25,155
Income (loss) before income taxes	$	16,516	$	12,291	$	(27,415	)	$	25,529	$	12,580	$	17,951	$	(52,103	)	$	(52,586	)	$	(50,422	)	$	3,185

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. During the nine months ended September 30, 2019, we recorded $4.0 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.

	September 30, 2020			December 31, 2019
	(In thousands)
Total long-lived assets:
Western Hemisphere	$	364,056		$	379,776
Eastern Hemisphere		235,521			246,854
Asia-Pacific		68,898			71,384
Eliminations		(371,938	)		(371,938	)
Total	$	296,537		$	326,076
Total assets:
Western Hemisphere	$	776,385		$	732,716
Eastern Hemisphere		785,576			818,803
Asia-Pacific		189,543			181,188
Eliminations		(591,965	)		(526,142	)
Total	$	1,159,539		$	1,206,565

As of September 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 full impairment of our goodwill balance of $7.7 million during the first quarter of 2020, all of which was in the Eastern Hemisphere.