Discontinued Operations

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

As discussed in Note 18 - “Subsequent Event,” on January 29, 2021, we entered into the Purchase and Sale Agreement with Spartan pursuant to which we sold the general partner of CCLP, including the IDRs in CCLP and approximately 23.1% of the outstanding limited partner interests in CCLP. Our interest in CCLP and the general partner represented substantially all of our Compression Division. As of December 31, 2020, our Compression Division met the held for sale criteria and is reflected as discontinued operations in our financial statements for all periods presented. In addition, as discussed in Note 11 - “Acquisitions and Dispositions,” on March 1, 2018, we closed a series of related transactions that resulted in the disposition of our Offshore Division. As a result, we have accounted for our Offshore Division, consisting of our Offshore Services and Maritech segments, as discontinued operations.

During the third quarter of 2019, as a result of the bankruptcy filing of Epic Companies, LLC, we recorded a reserve for the full amount of certain other receivables of discontinued operations related to our offshore division in the amount of $1.5 million and for the full amount of a $7.5 million promissory note, including accrued interest, that we received as part of the consideration for the sale. See Note 12 - “Commitments and Contingencies” for further discussion.

Our consolidated balance sheets and consolidated statements of operations report discontinued operations separate from continuing operations. Our consolidated statements of comprehensive income, statements of equity

and statements of cash flows combine continuing and discontinued operations. A summary of financial information related to our discontinued operations is as follows:

Reconciliation of the Line Items Constituting Pretax Loss from Discontinued Operations to the After-Tax Loss from Discontinued Operations

(in thousands)


	Year Ended December 31, 2020
	Compression		Offshore Services		Total
Revenue	$	338,246	$	—	$	338,246
Cost of revenues	212,253		(330)		211,923
Depreciation, amortization, and accretion	80,533		—		80,533
Impairments and other charges	20,841		—		20,841
General and administrative expense	37,895		473		38,368
Interest expense, net	52,771		—		52,771

Other (income) expense, net	2,688		—		2,688
Pretax loss from discontinued operations	(68,735)		(143)		(68,878)


Income tax provision					3,211
Loss from discontinued operations					(72,089)
Loss from discontinued operations attributable to noncontrolling interest					47,898
Loss from discontinued operations attributable to TETRA stockholders					$	(24,191)


	Year Ended December 31, 2019
	Compression	Offshore Services	Maritech	Total
Revenue	476,692	—	—	476,692
Cost of revenues	320,037	(192)	—	319,845
Depreciation, amortization, and accretion	76,663	52	—	76,715
General and administrative expense	43,281	2,618	—	45,899
Interest expense, net	51,974	—	—	51,974
CCLP Series A Preferred Units fair value adjustment (income) expense	1,309	—	—	1,309
Other (income) expense, net	(558)	117	118	(323)
Pretax loss from discontinued operations	(16,014)	(2,595)	(118)	(18,727)
Pretax loss on disposal of discontinued operations				(7,500)
Total pretax loss from discontinued operations				(26,227)
Income tax provision				3,353
Loss from discontinued operations				(29,580)
Loss from discontinued operations attributable to noncontrolling interest				13,538
Loss from discontinued operations attributable to TETRA stockholders				(16,042)


	Year Ended December 31, 2018
	Compression	Offshore Services	Maritech	Total
Revenue	438,673	4,487	187	443,347
Cost of revenues	309,156	11,151	139	320,446
Depreciation, amortization, and accretion	70,500	1,873	212	72,585
General and administrative expense	39,544	1,917	187	41,648
Interest expense, net	51,905	—	—	51,905
CCLP Series A Preferred Units fair value adjustment (income) expense	(733)	—	—	(733)
Other (income) expense, net	2,099	(1,036)	—	1,063
Pretax loss from discontinued operations	(33,798)	(9,418)	(351)	(43,567)
Pretax loss on disposal of discontinued operations				(34,072)
Total pretax loss from discontinued operations				(77,639)
Income tax provision				289
Loss from discontinued operations				(77,928)
Loss from discontinued operations attributable to noncontrolling interest				22,623
Loss from discontinued operations attributable to TETRA stockholders				$	(55,305)

Reconciliation of Major Classes of Assets and Liabilities of the Discontinued Operations to Amounts Presented Separately in the Statement of Financial Position

(in thousands)


	December 31, 2020
	Compression		Offshore Services		Maritech		Total
Carrying amounts of major classes of assets included as part of discontinued operations
Cash and cash equivalents	$	16,577	$	—	$	—	$	16,577
Trade receivables	43,837		—		—		43,837
Inventories	31,220		—		—		31,220
Other current assets	5,231		—		—		5,231

Property, plant, and equipment	551,401		—		—		551,401
Other assets	61,740		—		—		61,740

Total assets associated with discontinued operations(1)	$	96,865	$	—	$	—	$	710,006

Carrying amounts of major classes of liabilities included as part of discontinued operations
Trade payables	$	19,766	$	1,222	$	—	$	20,988
Unearned income	269		—		—		269
Accrued liabilities and other	36,318		352		228		36,898

Long-term debt, net	638,631		—		—		638,631
Other liabilities	37,253		—		—		37,253

Total liabilities associated with discontinued operations(1)	$	732,237	$	1,574	$	228	$	734,039