Geographic Areas

6 Months Ended

Jun. 30, 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 June 30,
	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	$	25,948		$	14,873	$	5,956	$	6,839		$	6,890	$	7,293	$	-		$	-		$	38,794		$	29,005
Over Time		11,311			21,924		2,609		7,377			3,146		4,827		-			-			17,066			34,128
Total Products		37,259			36,797		8,565		14,216			10,036		12,120		-			-			55,860			63,133
Services
Technical Advisory		7,781			10,456		2,127		1,937			3,787		2,938		-			-			13,695			15,331
Reconditioning		2,657			2,708		444		1,656			740		1,055		-			-			3,841			5,419
Total Services (excluding rental tools)		10,438			13,164		2,571		3,593			4,527		3,993		-			-			17,536			20,750
Leasing		4,233			3,674		1,944		1,826			1,224		1,063		-			-			7,401			6,563
Total Services (including rental tools)		14,671			16,838		4,515		5,419			5,751		5,056		-			-			24,937			27,313
Intercompany		2,553			2,317		496		689			6,223		3,413					-			9,272			6,419
Eliminations		-			-		-		-			-		-		(9,272	)		(6,419	)		(9,272	)		(6,419	)
Total Revenues	$	54,483		$	55,952	$	13,576	$	20,324		$	22,010	$	20,589	$	(9,272	)	$	(6,419	)	$	80,797		$	90,446
Depreciation and amortization	$	4,250		$	4,801	$	986	$	952		$	1,180	$	1,254	$	927		$	933		$	7,343		$	7,940
Income (loss) before income taxes	$	(2,175	)	$	5,024	$	3,553	$	(2,349	)	$	4,800	$	5,615	$	(20,838	)	$	(15,351	)	$	(14,660	)	$	(7,061	)

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. 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.

	Six months ended June 30,
	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	$	54,235		$	37,837	$	10,809	$	15,801		$	15,467	$	12,740	$	-		$	-		$	80,511		$	66,378
Over Time		20,940			40,432		4,478		16,594			5,514		7,287		-			-			30,932			64,313
Total Products		75,175			78,269		15,287		32,395			20,981		20,027		-			-			111,443			130,691
Services
Technical Advisory		16,102			17,852		4,020		5,433			7,974		6,227		-			-			28,096			29,512
Reconditioning		4,840			6,268		1,270		2,498			997		1,286		-			-			7,107			10,052
Total Services (excluding rental tools)		20,942			24,120		5,290		7,931			8,971		7,513		-			-			35,203			39,564
Leasing		8,671			8,435		3,072		4,574			3,647		3,180		-			-			15,390			16,189
Total Services (including rental tools)		29,613			32,555		8,362		12,505			12,618		10,693		-			-			50,593			55,753
Intercompany		4,777			5,631		637		1,020			8,297		5,669		-			-			13,711			12,320
Eliminations		-			-		-		-			-		-		(13,711	)		(12,320	)		(13,711	)		(12,320	)
Total	$	109,565		$	116,455	$	24,286	$	45,920		$	41,896	$	36,389	$	(13,711	)	$	(12,320	)	$	162,036		$	186,444
Depreciation and amortization	$	8,555		$	10,423	$	1,977	$	1,926		$	2,383	$	2,594	$	1,844		$	1,870		$	14,759		$	16,813
Income (loss) before income taxes	$	(21,551	)	$	13,177	$	690	$	(30,670	)	$	15,538	$	7,184	$	(41,309	)	$	(38,059	)	$	(46,632	)	$	(48,368	)

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. 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. 

	June 30, 2021			December 31, 2020
	(In thousands)
Total long-lived assets:
Western Hemisphere	$	342,705		$	350,577
Eastern Hemisphere		222,582			222,741
Asia-Pacific		64,070			68,600
Eliminations		(353,934	)		(353,939	)
Total	$	275,423		$	287,979
Total assets:
Western Hemisphere	$	764,757		$	769,649
Eastern Hemisphere		796,853			779,147
Asia-Pacific		202,601			186,808
Eliminations		(639,502	)		(584,432	)
Total	$	1,124,709		$	1,151,172

As of June 30, 2021, we wrote down $19.1 million of non-cash inventory write downs in the Western Hemisphere and $0.2 million in the Eastern Hemisphere as we shifted 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.