Impairment, Restructuring and Other Exit Costs

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Impairment, Restructuring and Other Exit Costs

Impairment, Restructuring and Other Exit Costs

Impairment

Impairment expense, included in Cont Ops, for 2021, 2020 and 2019 is summarized as follows:

	Year Ended December 31,
(in thousands)	2021		2020		2019
Impairment expense:
Energy Solutions' equity method investments	$	27,934	$	86,096	$	256,769
Information technology assets	15,858		16,269		—
Total impairment expense	$	43,792	$	102,365	$	256,769

Our business has been adversely affected by the impacts of COVID and the steep decline in oil prices that occurred in early 2020. These events created significant uncertainty and economic volatility and disruption, which have impacted and may continue to impact our business. We experienced reductions in demand for certain services and the delay or abandonment of ongoing or anticipated projects due to our clients’, suppliers’ and other third parties’ diminished financial condition. Although oil prices have rebounded in 2021 and 2022, we have not yet seen our energy clients respond with elevated capital expenditures for our services. During 2021, 2020 and 2019, we evaluated our significant investments and determined that certain of our investments were impaired. The fair value of these investments were determined using unobservable Level 3 inputs based on the forecast of anticipated volumes and overhead absorption in a cyclical business.

Restructuring and Other Exit Costs

During 2019, we initiated a restructuring plan designed to optimize costs and improve operational efficiency. These efforts primarily related to the rationalization of resources, investments, real estate and overhead across various geographies. The recognition of costs for the planned restructuring activities was substantially completed by the end of 2020. We did not recognize any material restructuring costs during 2021.

Information about our completed restructuring follows:

(in thousands)	Costs Incurred in 2020		Costs Incurred in 2019
Restructuring and other exit costs:
Severance	$	5,256	$	30,530
Asset impairments	—		29,485
Other exit costs	736		1,658
Total restructuring and other exit costs	$	5,992	$	61,673

Asset impairment charges in 2019 included the write down of held-for-sale and held-for-use assets to fair value. The fair value was estimated using observable Level 2 inputs for identical assets.

A reconciliation of restructuring liabilities follow:

(in thousands)	Severance		Other Exit Costs		Total
Balance as of December 31, 2019	$	30,479	$	564	$	31,043
Restructuring charges accrued during the period	5,256		736		5,992
Cash payments / settlements during the period	(18,858)		(793)		(19,651)
Currency translation	(396)		(401)		(797)
Balance as of December 31, 2020	$	16,481	$	106	$	16,587
Cash payments / settlements during the period	$	(16,378)	$	(106)	$	(16,484)
Currency translation	(103)		—		(103)
Balance as of December 31, 2021	$	—	$	—	$	—