Severance and Other Termination Benefits

6 Months Ended

Jun. 30, 2020

Severance and Other Termination Benefits [Abstract]

Severance and Other Termination Benefits

Note 9.  Severance and Other Termination Benefits

On March 31, and April 1, 2020, we implemented, effective immediately, a workforce reduction resulting in the termination of over 80 employees, furloughs for certain employees and lower compensation levels for executives and employees not participating in furloughs in response to the decrease in crude oil pricing, customer capital spending plans and activity as a result of the decline in market conditions primarily related to the COVID-19 pandemicand reduced demand for oil. On May 4, 2020, we implemented, effective immediately, an additional workforce reduction resulting in the termination of approximately 50 employees. In connection with these reductions in workforce and executive departures, we expect to incur cash severance costs, which are reflected in the condensed consolidated statements of operations under general and administrative expenses, of $3.5 million and $4.8 million for the three and six months ended June 30, 2020.

Below is a reconciliation of the beginning and ending liability balance (in thousands):

Beginning balance, December 31, 2019	$	—
Additions for costs expensed		4,774
Severance payments		(2,861)
Currency translation adjustment		20
Ending balance, June 30, 2020	$	1,933

We expect to finish paying off the severance and other terminations liability by May 2021.