Geographic Areas

3 Months Ended

Mar. 31, 2021

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 March 31,
	Western Hemisphere					Eastern Hemisphere						Asia-Pacific				DQ Corporate						Total
	2021			2020		2021			2020			2021		2020		2021			2020			2021			2020
	(In thousands)
Revenues
Products
Point in Time	$	28,286		$	22,964	$	4,853		$	8,962		$	8,576	$	5,447	$	-		$	-		$	41,715		$	37,373
Over Time		9,629			18,508		1,869			9,217			2,369		2,460		-			-			13,867			30,185
Total Products		37,915			41,472		6,722			18,179			10,945		7,907		-			-			55,582			67,558
Services
Technical Advisory		8,321			7,396		1,893			3,496			4,187		3,289		-			-			14,401			14,181
Reconditioning		2,183			3,560		826			842			257		231		-			-			3,266			4,633
Total Services (excluding rental tools)		10,504			10,956		2,719			4,338			4,444		3,520		-			-			17,667			18,814
Leasing		4,438			4,761		1,128			2,748			2,424		2,117		-			-			7,990			9,626
Total Services (including rental tools)		14,942			15,717		3,847			7,086			6,868		5,637		-			-			25,657			28,440
Intercompany		2,224			3,314		141			331			2,074		2,256					-			4,439			5,901
Eliminations		-			-		-			-			-		-		(4,439	)		(5,901	)		(4,439	)		(5,901	)
Total Revenues	$	55,081		$	60,503	$	10,710		$	25,596		$	19,887	$	15,800	$	(4,439	)	$	(5,901	)	$	81,239		$	95,998
Depreciation and amortization	$	4,304		$	5,622	$	990		$	974		$	1,203	$	1,340	$	919		$	937		$	7,416		$	8,873
Income (loss) before income taxes	$	(19,379	)	$	8,153	$	(2,863	)	$	(28,321	)	$	10,738	$	1,569	$	(20,468	)	$	(22,708	)	$	(31,972	)	$	(41,307	)

	March 31, 2021			December 31, 2020
	(In thousands)
Total long-lived assets:
Western Hemisphere	$	348,212		$	350,577
Eastern Hemisphere		222,763			222,741
Asia-Pacific		65,073			68,600
Eliminations		(353,938	)		(353,939	)
Total	$	282,110		$	287,979
Total assets:
Western Hemisphere	$	770,279		$	769,649
Eastern Hemisphere		800,621			779,147
Asia-Pacific		200,152			186,808
Eliminations		(644,221	)		(584,432	)
Total	$	1,126,831		$	1,151,172

During the first quarter of 2021, there were approximately $19.1 million of non-cash inventory write downs in the Western Hemisphere and $0.2 million in the Eastern Hemisphere as we proceeded to shift from the manufacturing of our downhole tools products business to a vendor outsourcing model. During 2020, we wrote down $25.5 million related to inventory and long-lived assets balances, with $22.3 million recorded in the Eastern Hemisphere and $3.2 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.