0001564590-19-037766 | 10-Q | XBRL Viewer

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Oct. 22, 2019
Cover [Abstract]
Entity Registrant Name	DRIL-QUIP INC
Entity Central Index Key	0001042893
Trading Symbol	DRQ
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock Shares Outstanding		36,180,604
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity File Number	001-13439
Entity Tax Identification Number	74-2162088
Entity Address, Address Line One	6401 N. ELDRIDGE PARKWAY
Entity Address, City or Town	HOUSTON
Entity Address, State or Province	TX
Entity Address, Country	US
Entity Address, Postal Zip Code	77041
City Area Code	713
Local Phone Number	939-7711
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Title of each class	Common Stock, $.01 par value per share
Name of each exchange on which registered	NYSE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 413,102	$ 418,100
Trade receivables, net	235,619	202,165
Inventories, net	201,655	191,194
Prepaids and other current assets	28,343	41,522
Total current assets	878,719	852,981
Operating lease right of use assets	5,328
Property, plant and equipment, net	259,423	274,123
Deferred income taxes	8,012	7,995
Goodwill	7,384	7,714
Intangible assets	33,101	34,974
Other assets	13,668	14,723
Total assets	1,205,635	1,192,510
Current liabilities:
Accounts payable	45,785	26,693
Accrued income taxes	5,899	3,138
Customer prepayments	7,972	9,648
Accrued compensation	11,311	10,537
Operating lease liabilities	1,295
Other accrued liabilities	24,271	32,242
Total current liabilities	96,533	82,258
Deferred income taxes	2,259	2,466
Income tax payable	9,977	9,623
Operating lease liabilities, long-term	4,011
Other long-term liabilities	183	2,001
Total liabilities	112,963	96,348
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock: 10,000,000 shares authorized at $0.01 par value (none issued)
Common stock:
100,000,000 shares authorized at $0.01 par value, 36,180,104 and 36,264,001 shares issued and outstanding at September 30, 2019 and December 31, 2018	376	376
Additional paid-in capital	52,896	34,953
Retained earnings	1,194,824	1,205,946
Accumulated other comprehensive losses	(155,424)	(145,113)
Total stockholders' equity	1,092,672	1,096,162
Total liabilities and stockholders' equity	$ 1,205,635	$ 1,192,510

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued (in shares)	0	0
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	36,180,104	36,264,001
Common stock, shares outstanding (in shares)	36,180,104	36,264,001

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Revenues from products and services	$ 99,735		$ 277,454
Leasing	8,492	$ 12,469	28,899	$ 35,278
Total revenues	108,227	93,257	306,353	287,291
Cost of sales:
Total cost of sales	76,023	71,113	219,271	220,136
Selling, general and administrative	27,962	27,093	75,332	76,711
Engineering and product development	3,754	5,404	12,531	15,124
Restructuring and other charges	546	3,745	3,961	4,345
Gain on sale of assets	(280)	(14)	(1,483)	(5,113)
Total costs and expenses	108,005	107,341	309,612	311,203
Operating income (loss)	222	(14,084)	(3,259)	(23,912)
Interest income	1,906	1,893	6,592	5,965
Interest expense	(26)	(195)	(148)	(545)
Income (loss) before income taxes	2,102	(12,386)	3,185	(18,492)
Income tax provision (benefit)	3,412	(2,028)	8,864	2,291
Net loss	$ (1,310)	$ (10,358)	$ (5,679)	$ (20,783)
Loss per common share:
Basic (in dollars per share)	$ (0.04)	$ (0.28)	$ (0.16)	$ (0.56)
Diluted (in dollars per share)	$ (0.04)	$ (0.28)	$ (0.16)	$ (0.56)
Weighted average common shares outstanding:
Basic (in shares)	35,559	37,119	35,827	37,349
Diluted (in shares)	35,559	37,119	35,827	37,349
Products
Revenues:
Revenues from products and services	$ 81,851	$ 63,246	$ 224,518	$ 199,010
Cost of sales:
Total cost of sales	58,632	53,342	163,750	168,602
Services
Revenues:
Revenues from products and services	17,884	17,542	52,936	53,003
Cost of sales:
Total cost of sales	8,451	9,329	27,906	27,242
Leasing
Cost of sales:
Total cost of sales	$ 8,940	$ 8,442	$ 27,615	$ 24,292

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (1,310)	$ (10,358)	$ (5,679)	$ (20,783)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(9,621)	(5,566)	(10,311)	(14,111)
Total comprehensive loss	$ (10,931)	$ (15,924)	$ (15,990)	$ (34,894)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities
Net loss	$ (5,679)	$ (20,783)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	25,155	25,966
Release of contingent consideration	(2,001)	0
Stock-based compensation expense	15,746	9,950
Restructuring and other charges	162	0
Gain on sale of assets	(1,483)	(5,113)
Deferred income taxes	(534)	(914)
Changes in operating assets and liabilities:
Trade receivables, net	(35,466)	298
Inventories, net	(15,624)	32,610
Prepaids and other assets	12,744	(9,675)
Accounts payable and accrued expenses	13,667	(41)
Other, net	(63)	309
Net cash provided by operating activities	6,624	32,607
Investing activities
Purchase of property, plant and equipment	(8,620)	(26,683)
Proceeds from sale of equipment	2,401	11,244
Net cash used in investing activities	(6,219)	(15,439)
Financing activities
Repurchase of common shares	(5,365)	(80,937)
ABL Credit Facility issuance costs		(815)
Proceeds from exercise of stock options	2,327	1,106
Other	(239)
Net cash used in financing activities	(3,277)	(80,646)
Effect of exchange rate changes on cash activities	(2,126)	(5,649)
Increase in cash and cash equivalents	(4,998)	(69,127)
Cash and cash equivalents at beginning of period	418,100	493,180
Cash and cash equivalents at end of period	$ 413,102	$ 424,053

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Losses
Beginning Balance at Dec. 31, 2017	$ 1,294,461	$ 372	$ 20,083	$ 1,400,296	$ (126,290)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(14,111)				(14,111)
Net loss	(20,783)			(20,783)
Total comprehensive loss	(34,894)
ASC 606	1,786			1,786
Repurchase of common stock	(80,937)	(2)		(80,935)
Options exercised and awards vested, net of shares withheld for employee taxes	1,130	24	1,106
Stock option expense	9,950		9,950
Other	(240)		(137)	(103)
Ending Balance at Sep. 30, 2018	1,191,256	394	31,002	1,300,261	(140,401)
Beginning Balance at Jun. 30, 2018	1,275,447	394	28,149	1,381,739	(134,835)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(5,566)				(5,566)
Net loss	(10,358)			(10,358)
Total comprehensive loss	(15,924)
Repurchase of common stock	(71,107)			(71,107)
Options exercised and awards vested, net of shares withheld for employee taxes	488		488
Stock option expense	2,366		2,366
Other	(14)		(1)	(13)
Ending Balance at Sep. 30, 2018	1,191,256	394	31,002	1,300,261	(140,401)
Beginning Balance at Dec. 31, 2018	1,096,162	376	34,953	1,205,946	(145,113)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(10,311)				(10,311)
Net loss	(5,679)			(5,679)
Total comprehensive loss	(15,990)
Repurchase of common stock	(5,365)	(1)		(5,364)
Options exercised and awards vested, net of shares withheld for employee taxes	2,182	1	2,181
Stock option expense	15,746		15,746
Other	(63)		16	(79)
Ending Balance at Sep. 30, 2019	1,092,672	376	52,896	1,194,824	(155,424)
Beginning Balance at Jun. 30, 2019	1,097,128	376	43,053	1,199,502	(145,803)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Foreign currency translation adjustment	(9,621)				(9,621)
Net loss	(1,310)			(1,310)
Total comprehensive loss	(10,931)
Repurchase of common stock	(3,368)	(1)		(3,367)
Options exercised and awards vested, net of shares withheld for employee taxes	2,182	1	2,181
Stock option expense	7,663		7,663
Other	(2)		(1)	(1)
Ending Balance at Sep. 30, 2019	$ 1,092,672	$ 376	$ 52,896	$ 1,194,824	$ (155,424)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - shares shares in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Statement Of Stockholders Equity [Abstract]
Treasury stock shares (in shares)	75,737	125,888
Options exercised and awards vested, net of shares withheld for employee taxes (in shares)	47,712	47,712

Organization and Principles of Consolidation

9 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Principles of Consolidation

1. Organization and Principles of Consolidation

Dril-Quip, Inc., a Delaware corporation (the “Company” or “Dril-Quip”), designs, manufactures, sells and services highly engineered drilling and production equipment that is well suited primarily for use in deepwater, harsh environment and severe service applications. The Company’s principal products consist of subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, liner hangers, wellhead connectors, diverters and safety valves. Dril-Quip’s products are used by major integrated, large independent and foreign national oil and gas companies and drilling contractors throughout the world. Dril-Quip also provides technical advisory assistance on an as-requested basis during installation of its products, as well as rework and reconditioning services for customer-owned Dril-Quip products. In addition, Dril-Quip’s customers may rent or purchase running tools from the Company for use in the installation and retrieval of the Company’s products.

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 major manufacturing facilities in all three of its regional headquarter locations as well as in Macae, Brazil. The Company’s major subsidiaries are Dril-Quip (Europe) Limited, located in Aberdeen with branches in Denmark, Norway, Azerbaijan and Holland; Dril-Quip Asia-Pacific PTE Ltd., located in Singapore; and Dril-Quip do Brazil LTDA, located in Macae, Brazil. Other operating subsidiaries include TIW Corporation (TIW) and Honing, Inc., both, located in Houston, Texas; DQ Holdings Pty. Ltd., located in Perth, Australia; Dril-Quip (Ghana) Ltd., located in Takoradi, Ghana; PT DQ Oilfield Services Indonesia, located in Jakarta, Indonesia; Dril-Quip (Nigeria) Ltd., located in Port Harcourt, Nigeria; Dril-Quip Egypt for Petroleum Services S.A.E., located in Alexandria, Egypt; Dril-Quip Oilfield Services (Tianjin) Co. Ltd., located in Tianjin, China, with branches in Shezhen and Beijing, China; and Dril-Quip Qatar LLC, located in Doha, Qatar; Drip-Quip TIW Mexico S.A. de C.V., located in Villahermosa, Mexico; TIW de Venezuela S.A., located in Anaco, Venezuela and with a registered branch located in Ecuador; TIW (UK) Limited, located in Aberdeen, Scotland; TIW Hungary LLC, located in Szolnok, Hungary; and TIW International LLC, with a registered branch located in Singapore.

The condensed consolidated financial statements included herein are unaudited. The balance sheet at December 31, 2018 has been derived from the audited consolidated financial statements at that date. In the opinion of management, the unaudited condensed consolidated interim financial statements include all normal recurring adjustments necessary for a fair statement of the financial position as of September 30, 2019 and the results of operations and comprehensive income for the three and nine months ended September 30, 2019 and 2018 and cash flows for the nine-month periods ended September 30, 2019 and 2018. Certain information and footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Management believes the unaudited interim related disclosures in these condensed consolidated financial statements are adequate. The results of operations, comprehensive income and cash flows for the nine-month period ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year. The condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Some of the Company’s more significant estimates are those affected by critical accounting policies for revenue recognition and inventories.

Revenue Recognition

The Company generates revenues through the sale of products, the sale of services and the leasing of installation tools. The Company normally negotiates contracts for products, including those accounted for under the over time method, rental tools and services separately. Modifications to the scope and price of sales contracts may occur in the form of variations and change orders. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may instead choose to use a third party or its own personnel.

Product and Service Revenues

Product and service revenues are recognized as the Company satisfies the performance obligation by transferring control of the promised good or service to the customer. Revenues are measured based on consideration specified in a contract with a customer and exclude sales incentives and amounts collected on behalf of third parties. In addition, some customers may impose contractually negotiated penalties for late delivery that are excluded from the transaction price.

Management has elected to utilize certain practical expedients allowed under Accounting Standards Codification 606, Revenue from Contracts with Customers (ASC 606). Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer are excluded from the measurement of the transaction price. Shipping and handling activities that are performed after a customer obtains control of the good are accounted for as activities to fulfill the promise to transfer the good and thus are excluded from the transaction price.

Product revenues

The Company recognizes product revenues from two methods:

•

product revenues are recognized over time as control is transferred to the customer; and

•

product revenues from the sale of products that do not qualify for the over time method are recognized as point in time.

Revenues recognized under the over time method

The Company uses the over time method on long-term project contracts that have the following characteristics:

•

the contracts call for products which are designed to customer specifications;

•

the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than six months in duration;

•

product requirements cannot be filled directly from the Company’s standard inventory; and

•

The Company has an enforceable right to payment for any work completed to date and the enforceable payment includes a reasonable profit margin.

For each project, the Company prepares a detailed analysis of estimated costs, profit margin, completion date and risk factors which include availability of material, production efficiencies and other factors that may impact the project. On a quarterly basis, management reviews the progress of each project, which may result in revisions of previous estimates, including revenue recognition. The Company calculates the percentage complete and applies the percentage to determine the revenues earned and the appropriate portion of total estimated costs to be recognized. Losses, if any, are recorded in full in the period they become known. Historically, the Company’s estimates of total costs and costs to complete have approximated actual costs incurred to complete the project.

Under the over time method, billings may not correlate directly to the revenue recognized. Based upon the terms of the specific contract, billings may be in excess of the revenue recognized, in which case the amounts are included in customer prepayments as a liability on the Condensed Consolidated Balance Sheets. Likewise, revenue recognized may exceed customer billings in which case the amounts are reported in trade receivables. Unbilled revenues are expected to be billed and collected within one year. At September 30, 2019 and December 31, 2018, receivables included $76.1 million and $57.0 million of unbilled receivables, respectively. For the three months ended September 30, 2019, there were 29 projects representing approximately 21.9% of the Company's total revenues and approximately 28.9% of its product revenues that were accounted for using over time accounting, compared to eight projects for the three months ended September 30, 2018, which represented approximately 15.7% of the Company's total revenues and approximately 23.1% of its product revenues. For the nine months ended September 30, 2019, there were 31 projects representing approximately 20.5% of the Company’s total revenues and approximately 28.0% of its product revenues that were accounted for using over time accounting, compared to 14 projects for the nine months ended September 30, 2018, which represented approximately 14.0% of the Company’s total revenues and approximately 20.3% of its product revenues.

Revenues recognized under the point in time method

Revenues from the sale of standard inventory products, not accounted for under the over time method, are recorded at the point in time that the customer obtains control of the promised asset and the Company satisfies its performance obligation. This point in time recognition aligns with the time of shipment, which is when the Company typically has a present right to payment, title transfers to the customer, the customer or its carrier has physical possession and the customer has significant risks and rewards of ownership. The Company may provide product storage to some customers. Revenues for these products are recognized at the point in time that control of the product transfers to the customer, the reason for storage is requested by the customer, the product is separately identified, the product is ready for physical transfer to the customer and the Company does not have the ability to use or direct the use of the product. This point in time typically occurs when the products are moved to storage. We receive payment after control of the products has transferred to the customer.

Service revenues

The Company recognizes service revenues from two sources:

•

technical advisory assistance; and

•

rework and reconditioning of customer-owned Dril-Quip products.

The Company generally does not install products for its customers, but it does provide technical advisory assistance.

The Company normally negotiates contracts for products, including those accounted for under the over time method, and services separately. For all product sales, it is the customer’s decision as to the timing of the product installation as well as whether Dril-Quip running tools will be purchased or rented. Furthermore, the customer is under no obligation to utilize the Company’s technical advisory assistance services. The customer may use a third party or their own personnel. The contracts for these services are typically considered day-to-day.

Rework and reconditioning service revenues are recorded using the over time method based on the remaining steps that need to be completed as the refurbishment process is performed. The measurement of progress considers, among other things, the time necessary for completion of each step in the reconditioning plan, the materials to be purchased, labor and ordering procedures. We receive payment after the services have been performed by billing customers periodically (typically monthly).

Lease revenues

The Company earns lease revenues from the rental of running tools. Rental revenues are recognized within leasing revenues on a day rate basis over the lease term, which is generally between one to three months.

Practical Expedients

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

Fair Value of Financial Instruments

The Company’s financial instruments consist primarily of cash and cash equivalents, receivables and payables. The carrying values of these financial instruments approximate their respective fair values as they are short-term in nature.

Restructuring and Other Charges

In the third quarter of 2018, we initiated a global strategic plan to better align our operations with current market conditions and finalized this plan during the second quarter of 2019. As a result of this plan, during the three and nine months ended September 30, 2019, we incurred restructuring and other charges of approximately $0.5 million and $4.0 million, respectively. All of these charges primarily relate to employee termination benefits and consulting fees.

Treasury Shares

On February 26, 2019, the Board of Directors authorized a share repurchase plan under which the Company can repurchase up to $100 million of its common stock. The repurchase plan has no set expiration date and any repurchased shares are expected to be cancelled. For the three months ended September 30, 2019, the Company purchased 75,737 shares under the share repurchase plan at an average price of approximately $44.45 per share totaling approximately $3.4 million and has retired such shares.

For the nine months ended September 30, 2019, the Company purchased 125,888 shares under the share repurchase plan at an average price of approximately $42.60 per share totaling approximately $5.4 million and has retired such shares. The Company continues to evaluate current market conditions on an on-going basis as it relates to executing its share buyback program.

Earnings Per Share

Basic earnings per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed considering the dilutive effect of stock awards using the treasury stock method.

In each relevant period, the net income used in the basic and dilutive earnings per share calculations is the same. The following table reconciles the weighted average basic number of common shares outstanding and the weighted average diluted number of common shares outstanding for the purpose of calculating basic and diluted earnings per share:

	Three months ended				Nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Weighted average common shares outstanding - basic		35,559		37,119		35,827		37,349
Dilutive effect of common stock awards		-		-		-		-
Weighted average common shares outstanding – diluted		35,559		37,119		35,827		37,349

For the three and nine months ended September 30, 2019, the Company has excluded the following common stock options and awards because their impact on the income/(loss) per share is anti-dilutive (in thousands on a weighted average basis):

	Three months ended				Nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Director stock awards		39		11		37		9
Stock options		170		181		200		196
Performance share units		298		126		298		90
Restricted stock awards		332		172		343		125

Reclassifications. As a result of our global business transformation, certain prior period amounts have been reclassified to conform to the current period presentation as it related to product engineering and quality assurance cost. We reclassified approximately $4.8 million and $15.0 million of engineering cost from our engineering and product development cost and approximately $0.7 million and $2.3 million of quality assurance cost from selling, general and administrative to product cost of sales during the three and nine months ended September 30, 2018, respectively. These reclassifications did not have an impact on our Condensed Consolidated Statements of Income (Loss), Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Comprehensive Income (Loss), Condensed Consolidated Statements of Stockholders’ Equity and Condensed Consolidated Statements of Cash Flows. Engineering costs were approximately $3.9 million and $12.2 million for the three and nine months ended September 30, 2019. Quality assurance costs were approximately $0.7 million and $2.3 million for the three and nine months ended September 30, 2019, respectively.

During the three months ended September 30, 2019, the Company identified errors related to a product contract in which the performance obligation was satisfied in the three months ended June 30, 2019 and product costs of sales were incorrectly eliminated at June 30, 2019. The Company recorded in the three months ended September 30, 2019 out-of-period adjustments, which increased product revenue by $3.4 million and decreased net income (loss) by $1.5 million. Management determined the errors were not material to the previously issued condensed consolidated interim financial statements as of and for the three and six months ended June 30, 2019. In addition, the correction of the errors in the three months ended September 30, 2019 is not material on either a quantitative basis or a qualitative basis.

New Accounting Standards

9 Months Ended

Sep. 30, 2019

Accounting Changes And Error Corrections [Abstract]

New Accounting Standards

3. New Accounting Standards

In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)”. The new standard requires lessees to recognize lease assets (right of use) and lease obligations (lease liability) for leases previously classified as operating leases under generally accepted accounting principles on the balance sheet for leases with terms in excess of 12 months. The standard is effective for fiscal periods beginning after December 15, 2018, including interim periods within those fiscal years. Please see Note 9, “Leases”, for a discussion of the impact related to the adoption of this standard.

In April 2019, the FASB issued ASU 2019-04 “Codification Improvements to Financial Instruments – Credit Losses (Topic 326)”. The new standard clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments (addressed by ASUs 2016-13, 2017-12, and 2016-01, respectively). The standard is effective for fiscal periods beginning after December 15, 2019, including interim periods within those fiscal years. We are currently in the process of assessing the impact of this guidance.

Revenue Recognition

9 Months Ended

Sep. 30, 2019

Revenue From Contract With Customer [Abstract]

Revenue Recognition

4. Revenue Recognition

Revenues from contracts with customers (excludes leasing) consisted of the following:

	Three months ended
	September 30, 2019
	Western Hemisphere		Eastern Hemisphere		Asia- Pacific		Total
	(In thousands)
Product Revenues	$	42,561	$	23,656	$	15,634	$	81,851
Service Revenues		11,057		4,654		2,173		17,884
Total	$	53,618	$	28,310	$	17,807	$	99,735

	Nine months ended
	September 30, 2019
	Western Hemisphere		Eastern Hemisphere		Asia- Pacific		Total
	(In thousands)
Product Revenues	$	117,820	$	66,815	$	39,883	$	224,518
Service Revenues		30,063		14,528		8,345		52,936
Total	$	147,883	$	81,343	$	48,228	$	277,454

Contract Balances

Balances related to contracts with customers consisted of the following:

Contract Assets (amounts shown in thousands)

Contract Assets at December 31, 2018	$	83,188
Additions		62,987
Transfers to Accounts Receivable		(25,078	)
Contract Assets at September 30, 2019	$	121,097

Contract Liabilities (amounts shown in thousands)

Contract Liabilities at December 31, 2018	$	9,648
Additions		305,985
Revenue Recognized		(307,660	)
Contract Liabilities at September 30, 2019	$	7,973

Contract assets receivables, which are included in trade receivables, net, were $121.1 million and $83.2 million at September 30, 2019 and December 31, 2018, respectively. Contract assets include unbilled accounts receivable associated with contracts accounted for under the over time accounting method, which are included in trade receivables, net, in our accompanying condensed consolidated balance sheets and which were approximately $76.1 million and $57.0 million at September 30, 2019 and December 31, 2018, respectively. Unbilled contract assets are transferred to the trade receivables, net, when the rights become unconditional. The contract liabilities primarily relate to advance payments from customers and are included in customer prepayments in our accompanying condensed consolidated balance sheets.

Obligations for returns and refunds were considered immaterial as of September 30, 2019.

Remaining Performance Obligations

The aggregate amount of the transaction price allocated to remaining performance obligations from our reconditioning services and over time product lines was $110.7 million as of September 30, 2019. The Company expects to recognize revenue on approximately 48.4% and 100.0% of the remaining performance obligations over the next 12 and 24 months, respectively.

The Company applies the practical expedient available under the revenue standard and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

Stock-Based Compensation and Stock Awards

9 Months Ended

Sep. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation and Stock Awards

5. Stock-Based Compensation and Stock Awards

During the three and nine months ended September 30, 2019, the Company recognized approximately $7.7 million and $15.7 million, respectively, of stock-based compensation expense, which includes approximately $1.8 million related to accelerated vesting of restricted stock awards and approximately $2.4 million related to continued vesting of performance share units pursuant to a separation agreement with our former Chief Operating Officer entered into during the first quarter of 2019. We recognized an additional $4.3 million stock-based compensation expense for the three months ended September 30, 2019 related to the 2016 performance share unit awards, which exceeded performance metrics criteria for a 200% payout. The stock-based compensation is included in "Selling, general and administrative" in our accompanying condensed consolidated statements of income (loss) and "Additional paid-in capital" in our accompanying condensed consolidated balance sheets, compared to $2.4 million and $10.0 million recognized for the three and nine months ended September 30, 2018, respectively. No stock-based compensation expense was capitalized during the three and nine months ended September 30, 2019 or 2018.

Inventories, net

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

Inventories, net

6. Inventories, net

Inventories consist of the following:

	September 30,			December 31,
	2019			2018
	(In thousands)
Raw materials and supplies	$	44,159		$	55,878
Work in progress		54,815			51,251
Finished goods		183,448			192,632
		282,422			299,761
Less: allowance for excess and slow moving inventory		(80,767	)		(108,567	)
Total inventory	$	201,655		$	191,194

Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

7. Intangible Assets

Intangible assets consist of the following:

		September 30, 2019
	Estimated Useful Lives	Gross Book Value		Accumulated Amortization			Foreign Currency Translation			Net Book Value
		(In thousands)
Trademarks	15 years	$	8,159	$	-		$	1		$	8,160
Patents	15 - 30 years		5,945		(2,267	)		(2	)		3,676
Customer relationships	5 - 15 years		25,787		(4,606	)		(96	)		21,085
Non-compete agreements	3 years		171		(156	)		-			15
Organizational costs	indefinite		172		-			(7	)		165
		$	40,234	$	(7,029	)	$	(104	)	$	33,101

		December 31, 2018
	Estimated Useful Lives	Gross Book Value		Accumulated Amortization			Foreign Currency Translation			Net Book Value
		(In thousands)
Trademarks	15 years	$	8,236		-		$	(72	)	$	8,164
Patents	15 - 30 years		6,026		(1,925	)		(11	)		4,090
Customer relationships	5 - 15 years		25,703		(2,953	)		(260	)		22,490
Non-compete agreements	3 years		171		(113	)		-			58
Organizational costs	indefinite		172		-			-			172
		$	40,308	$	(4,991	)	$	(343	)	$	34,974

Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

8. Leases

Effective January 1, 2019, we adopted ASU 2016-02, “Leases” (Topic 842), and elected the package of practical expedients that does not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. The impact of the adoption of ASC 842, as of January 1, 2019, was approximately $5.5 million to our assets, approximately $1.6 million to our current liability and approximately $3.9 million to our long-term liability.

Under the transition method selected by the Company, leases expiring at, or entered into after, January 1, 2019 were required to be recognized and measured. Prior period amounts have not been adjusted and continue to be reflected in accordance with the Company's historical accounting under ASC 840. The adoption of this standard resulted in the recording of operating lease assets and operating lease liabilities as of January 1, 2019, with no related impact on the Company’s Consolidated Statement of Stockholders’ Equity or Consolidated Statement of Income (Loss). Short-term leases have not been recorded on the balance sheet.

We lease facilities related to sales and service, manufacturing, reconditioning, certain office spaces, apartments and warehouse, all of which we classify as operating leases. In addition, we also lease certain office equipment and vehicles, which we classify as financing leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet; short-term lease expense for the three and nine months ended September 30, 2019 was approximately $0.5 million and $1.6 million, respectively.

Most leases include one or more options to renew, with renewal terms that can extend the lease term on a monthly, annual or longer basis. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain of being exercised.

Certain lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.


		September 30, 2019
	Classification	(In thousands)
Assets
Operating	Operating lease right of use assets	$	5,328
Finance	Other assets		419
Total lease assets		$	5,747

Liabilities
Current
Operating	Operating lease liabilities	$	1,295
Finance	Other accrued liabilities		254

Noncurrent
Operating	Operating lease liabilities, long-term		4,011
Finance	Other long-term liabilities		183
Total lease liabilities		$	5,743

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate, which is based on our rate for the ABL Credit Facility (as defined herein).

Our lease cost for the three and nine months ended September 30, 2019 is as follows:

		Three months ended		Nine months ended
		September 30, 2019
		(In thousands)
	Classification
Operating lease cost	Selling, general and administrative	$	474	$	1,219
Short-term lease costs	Selling, general and administrative		512		1,630
Amortization of leased assets	Selling, general and administrative		89		273
Interest on lease liabilities	Net interest expense		5		20
Total lease cost		$	1,080	$	3,142

The five year and beyond maturity of our lease obligations is presented below:

	Nine months ended
	September 30, 2019
	Operating		Finance
	Leases		Leases		Total
	(In thousands)
2019	$	408	$	92	$	500
2020		1,399		216		1,615
2021		695		116		811
2022		446		31		477
2023		351		4		355
After 2023		3,738		-		3,738
Total lease payments	$	7,037	$	459	$	7,496
Less: interest		1,794		23		1,817
Present value of lease liabilities	$	5,243	$	436	$	5,679

The lease term and discount rate for our operating and finance leases is as follows:

	September 30, 2019
Weighted average remaining lease term (years)
Operating leases		12.4
Finance leases		2.0

Weighted average discount rate
Operating leases		4.8	%
Finance leases		4.3	%

We had no material non-cash financing leases entered into during the three months ended September 30, 2019.

Other information pertaining to our lease obligations is as follows:


	September 30, 2019
	(In thousands)
Other Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	472
Operating cash flows from finance leases		6
Financing cash flows from finance leases		93

The Company leases certain offices, shop and warehouse facilities, automobiles and equipment. Future annual minimum lease commitments at December 31, 2018 are as follows: 2019 - $2.0 million; 2020 - $1.5 million; 2021 - $0.8 million; 2022 - $0.5 million; 2023 - $0.4 million; and thereafter - $4.2 million.

Asset Backed Loan (ABL) Credit Facility

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Asset Backed Loan (ABL) Credit Facility

9. Asset Backed Loan (ABL) Credit Facility

On February 23, 2018, the Company, as borrower, and the Company’s subsidiaries TIW and Honing, Inc., as guarantors, entered into a five -year senior secured revolving credit facility (the “ABL Credit Facility”) with JPMorgan Chase Bank, N.A., as administrative agent, and other financial institutions as lenders with total commitments of $100.0 million, including up to $10.0 million available for letters of credit. The maximum amount that the Company may borrow under the ABL Credit Facility is subject to the borrowing base, which is based on a percentage of eligible accounts receivable and eligible inventory, subject to reserves and other adjustments.

All obligations under the ABL Credit Facility are fully and unconditionally guaranteed jointly and severally by the Company, TIW, Honing, Inc., and future significant domestic subsidiaries, subject to customary exceptions. Borrowings under the ABL Credit Facility are secured by liens on substantially all of the Company’s personal property, and bear interest at the Company’s option at either (i) the CB Floating Rate (as defined therein), calculated as the rate of interest publicly announced by JPMorgan Chase Bank, N.A., as its “prime rate,” subject to each increase or decrease in such prime rate effective as of the date such change occurs, with such CB Floating Rate not being less than Adjusted One Month LIBOR (as defined therein) or (ii) the Adjusted LIBOR (as defined therein), plus, in each case, an applicable margin. The applicable margin ranges from 1.00% to 1.50% per annum for CBFR loans and 2.00% to 2.50% per annum for Eurodollar loans and, in each case, is based on the Company’s leverage ratio. The unused portion of the ABL Credit Facility is subject to a commitment fee that varies from 0.250% to 0.375% per annum, according to average unused commitments under the ABL Credit Facility. Interest on Eurodollar loans is payable at the end of the selected interest period, but no less frequently than quarterly. Interest on CB Floating Rate loans is payable monthly in arrears.

The ABL Credit Facility contains various covenants and restrictive provisions that limit the Company’s ability to, among other things, (1) enter into asset sales; (2) incur additional indebtedness; (3) make investments or loans and create liens; (4) pay certain dividends or make other distributions; and (5) engage in transactions with affiliates. The ABL Credit Facility also requires the Company to maintain a fixed charge coverage ratio of 1.0 to 1.0, based on the ratio of EBITDA (as defined therein) to Fixed Charges (as defined therein) during certain periods, including when availability under the ABL Credit Facility is under certain levels. If the Company fails to perform its obligations under the agreement that results in an event of default, the commitments under the ABL Credit Facility could be terminated and any outstanding borrowings under the ABL Credit Facility may be declared immediately due and payable. The ABL Credit Facility also contains cross default provisions that apply to the Company’s other indebtedness. The Company is in compliance with the related covenants as of September 30, 2019.

As of September 30, 2019, the availability under the ABL Credit Facility was $41.0 million, after taking into account the outstanding letters of credit of approximately $0.4 million issued under the facility.

Geographic Areas

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Geographic Areas

10. Geographic Areas

	Three months ended September 30,
	Western Hemisphere				Eastern Hemisphere				Asia-Pacific					DQ Corporate						Total
	2019		2018		2019		2018		2019		2018			2019			2018			2019			2018
	(In thousands)
Revenues
Products
Standard Products	$	30,135	$	34,101	$	18,514	$	12,918	$	10,890	$	1,587		$	-		$	-		$	59,539		$	48,606
Percentage of Completion		12,425		9,724		5,143		4,916		4,744		-			-			-			22,312			14,640
Total Products		42,560		43,825		23,657		17,834		15,634		1,587			-			-			81,851			63,246
Services
Technical Advisory		8,165		7,305		3,301		3,612		2,050		2,889			-			-			13,516			13,806
Reconditioning		2,892		2,864		1,353		752		123		119			-			-			4,368			3,735
Total Services (excluding rental tools)		11,057		10,169		4,654		4,364		2,173		3,008			-			-			17,884			17,541
Leasing		4,658		5,899		2,719		3,115		1,115		3,456			-			-			8,492			12,470
Total Services (including rental tools)		15,715		16,068		7,373		7,479		3,288		6,464			-			-			26,376			30,011
Intercompany		2,572		2,564		72		1,302		2,458		573						-			5,102			4,439
Eliminations		-		-		-		-		-		-			(5,102	)		(4,439	)		(5,102	)		(4,439	)
Total Revenues	$	60,847	$	62,457	$	31,102	$	26,615	$	21,380	$	8,624		$	(5,102	)	$	(4,439	)	$	108,227		$	93,257
Depreciation and amortization	$	5,327	$	5,607	$	970	$	1,057	$	1,240	$	1,390		$	767		$	670		$	8,304		$	8,724
Income (loss) before income taxes	$	3,882	$	13,902	$	11,627	$	8,133	$	6,051	$	(301	)	$	(19,458	)	$	(34,120	)	$	2,102		$	(12,386	)

	Nine months ended September 30,
	Western Hemisphere				Eastern Hemisphere				Asia-Pacific					DQ Corporate						Total
	2019		2018		2019		2018		2019		2018			2019			2018			2019			2018
	(In thousands)
Revenues
Products
Standard Products	$	81,120	$	110,074	$	50,458	$	35,556	$	31,846	$	13,031		$	-		$	-		$	163,424		$	158,661
Percentage of Completion		36,700		20,185		16,357		16,682		8,037		3,482			-			-			61,094			40,349
Total Products		117,820		130,259		66,815		52,238		39,883		16,513			-			-			224,518			199,010
Services
Technical Advisory		22,118		20,835		11,428		12,785		7,331		7,021			-			-			40,877			40,641
Reconditioning		7,945		8,338		3,100		2,700		1,014		1,324			-			-			12,059			12,362
Total Services (excluding rental tools)		30,063		29,173		14,528		15,485		8,345		8,345			-			-			52,936			53,003
Leasing		15,942		18,162		8,804		10,837		4,153		6,279			-			-			28,899			35,278
Total Services (including rental tools)		46,005		47,335		23,332		26,322		12,498		14,624			-			-			81,835			88,281
Intercompany		9,185		9,685		418		1,835		4,237		1,300			-			-			13,840			12,820
Eliminations		-		-		-		-		-		-			(13,840	)		(12,820	)		(13,840	)		(12,820	)
Total	$	173,010	$	187,279	$	90,565	$	80,395	$	56,618	$	32,437		$	(13,840	)	$	(12,820	)	$	306,353		$	287,291
Depreciation and amortization	$	16,183	$	17,091	$	3,198	$	3,402	$	3,637	$	3,521		$	2,137		$	1,952		$	25,155		$	25,966
Income (loss) before income taxes	$	12,291	$	12,999	$	25,529	$	13,792	$	17,951	$	(45	)	$	(52,586	)	$	(45,238	)	$	3,185		$	(18,492	)


	September 30, 2019			December 31, 2018
	(In thousands)
Total long-lived assets:
Western Hemisphere	$	386,571		$	412,624
Eastern Hemisphere		242,704			256,899
Asia-Pacific		69,216			65,944
Eliminations		(371,575	)		(395,938	)
Total	$	326,916		$	339,529

Total assets:
Western Hemisphere	$	711,164		$	708,723
Eastern Hemisphere		812,930			788,171
Asia-Pacific		171,099			154,298
Eliminations		(489,558	)		(458,682	)
Total	$	1,205,635		$	1,192,510

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 major 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.

Income Tax

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Tax

11. Income Tax

The effective tax rate for the three and nine months ended September 30, 2019 was 162.3% and 278.3%, respectively, compared to 16.4% and (12.4)% for the same periods in 2018. The change in the effective tax rate between the periods was primarily a result of increased valuation allowances in the United States and in various foreign countries and a mix of earnings in jurisdictions with differing tax rates.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

12. Commitments and Contingencies

Brazilian Tax Issue

From 2002 to 2007, the Company’s Brazilian subsidiary imported goods through, and paid taxes on such imports to, the State of Espirito Santo in Brazil. Upon the final sale of these goods, the Company’s Brazilian subsidiary collected taxes from customers and remitted them to the State of Rio de Janeiro net of the taxes paid on importation of those goods to the State of Espirito Santo in accordance with the Company’s understanding of Brazilian tax laws.

In December 2010 and January 2011, the Company’s Brazilian subsidiary was served with two assessments totaling approximately $13.0 million from the State of Rio de Janeiro to cancel the credits associated with the tax payments to the State of Espirito Santo on the importation of goods from July 2005 to October 2007. The Company objected to these assessments on the grounds that they would represent double taxation on the importation of the same goods and that the Company is entitled to the credits under applicable Brazilian law. The Company’s Brazilian subsidiary filed appeals with a State of Rio de Janeiro judicial court to annul both of these tax assessments and deposited with the court approximately $8.8 million in December 2014 and December 2016 as the full amount of the assessments with penalties and interest. The Company believes that these credits are valid and that success in the judicial court process is probable. Based upon this analysis, the Company has not accrued any liability in conjunction with this matter.

General

The Company operates its business and markets its products and services in most of the significant oil and gas producing areas in the world and is, therefore, subject to the risks customarily attendant to international operations and dependency on the condition of the oil and gas industry. Additionally, certain of the Company’s products are used in potentially hazardous drilling, completion, and production applications that can cause personal injury, property damage and environmental claims. Although exposure to such risk has not resulted in any significant problems in the past, there can be no assurance that ongoing and future developments will not adversely impact the Company.

The Company is also involved in a number of legal actions arising in the ordinary course of business. Although no assurance can be given with respect to the ultimate outcome of such legal action, in the opinion of management, the ultimate liability with respect thereto will not have a material adverse effect on the Company’s results of operations, financial position or cash flows.

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated.

Use of Estimates

Revenue Recognition

Product and Service Revenues

Product revenues

The Company recognizes product revenues from two methods:

•

product revenues are recognized over time as control is transferred to the customer; and

•

product revenues from the sale of products that do not qualify for the over time method are recognized as point in time.

Revenues recognized under the over time method

The Company uses the over time method on long-term project contracts that have the following characteristics:

•

the contracts call for products which are designed to customer specifications;

•

the structural designs are unique and require significant engineering and manufacturing efforts generally requiring more than six months in duration;

•

product requirements cannot be filled directly from the Company’s standard inventory; and

•

The Company has an enforceable right to payment for any work completed to date and the enforceable payment includes a reasonable profit margin.

Revenues recognized under the point in time method

Service revenues

The Company recognizes service revenues from two sources:

•

technical advisory assistance; and

•

rework and reconditioning of customer-owned Dril-Quip products.

The Company generally does not install products for its customers, but it does provide technical advisory assistance.

Lease revenues

Practical Expedients

We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

Fair Value of Financial Instruments

Restructuring and Other Charges

Treasury Shares

Earnings Per Share

	Three months ended				Nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Weighted average common shares outstanding - basic		35,559		37,119		35,827		37,349
Dilutive effect of common stock awards		-		-		-		-
Weighted average common shares outstanding – diluted		35,559		37,119		35,827		37,349

	Three months ended				Nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Director stock awards		39		11		37		9
Stock options		170		181		200		196
Performance share units		298		126		298		90
Restricted stock awards		332		172		343		125

Reclassifications

Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Schedule of Earnings Per Share

The following table reconciles the weighted average basic number of common shares outstanding and the weighted average diluted number of common shares outstanding for the purpose of calculating basic and diluted earnings per share:

	Three months ended				Nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Weighted average common shares outstanding - basic		35,559		37,119		35,827		37,349
Dilutive effect of common stock awards		-		-		-		-
Weighted average common shares outstanding – diluted		35,559		37,119		35,827		37,349

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

	Three months ended				Nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
	(In thousands)
Director stock awards		39		11		37		9
Stock options		170		181		200		196
Performance share units		298		126		298		90
Restricted stock awards		332		172		343		125

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2019

Revenue From Contract With Customer [Abstract]

Schedule of Revenue from Contract with Customer Excludes Leasing

Revenues from contracts with customers (excludes leasing) consisted of the following:

	Three months ended
	September 30, 2019
	Western Hemisphere		Eastern Hemisphere		Asia- Pacific		Total
	(In thousands)
Product Revenues	$	42,561	$	23,656	$	15,634	$	81,851
Service Revenues		11,057		4,654		2,173		17,884
Total	$	53,618	$	28,310	$	17,807	$	99,735

	Nine months ended
	September 30, 2019
	Western Hemisphere		Eastern Hemisphere		Asia- Pacific		Total
	(In thousands)
Product Revenues	$	117,820	$	66,815	$	39,883	$	224,518
Service Revenues		30,063		14,528		8,345		52,936
Total	$	147,883	$	81,343	$	48,228	$	277,454

Schedule of Contract Asset and Liability

Balances related to contracts with customers consisted of the following:

Contract Assets (amounts shown in thousands)

Contract Assets at December 31, 2018	$	83,188
Additions		62,987
Transfers to Accounts Receivable		(25,078	)
Contract Assets at September 30, 2019	$	121,097

Contract Liabilities (amounts shown in thousands)

Contract Liabilities at December 31, 2018	$	9,648
Additions		305,985
Revenue Recognized		(307,660	)
Contract Liabilities at September 30, 2019	$	7,973

Inventories, net (Tables)

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consist of the following:

	September 30,			December 31,
	2019			2018
	(In thousands)
Raw materials and supplies	$	44,159		$	55,878
Work in progress		54,815			51,251
Finished goods		183,448			192,632
		282,422			299,761
Less: allowance for excess and slow moving inventory		(80,767	)		(108,567	)
Total inventory	$	201,655		$	191,194

Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived and Indefinite-Lived Intangible Assets

Intangible assets consist of the following:

		September 30, 2019
	Estimated Useful Lives	Gross Book Value		Accumulated Amortization			Foreign Currency Translation			Net Book Value
		(In thousands)
Trademarks	15 years	$	8,159	$	-		$	1		$	8,160
Patents	15 - 30 years		5,945		(2,267	)		(2	)		3,676
Customer relationships	5 - 15 years		25,787		(4,606	)		(96	)		21,085
Non-compete agreements	3 years		171		(156	)		-			15
Organizational costs	indefinite		172		-			(7	)		165
		$	40,234	$	(7,029	)	$	(104	)	$	33,101

		December 31, 2018
	Estimated Useful Lives	Gross Book Value		Accumulated Amortization			Foreign Currency Translation			Net Book Value
		(In thousands)
Trademarks	15 years	$	8,236		-		$	(72	)	$	8,164
Patents	15 - 30 years		6,026		(1,925	)		(11	)		4,090
Customer relationships	5 - 15 years		25,703		(2,953	)		(260	)		22,490
Non-compete agreements	3 years		171		(113	)		-			58
Organizational costs	indefinite		172		-			-			172
		$	40,308	$	(4,991	)	$	(343	)	$	34,974

Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Schedule of Classification of Leases

Certain lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.


		September 30, 2019
	Classification	(In thousands)
Assets
Operating	Operating lease right of use assets	$	5,328
Finance	Other assets		419
Total lease assets		$	5,747

Liabilities
Current
Operating	Operating lease liabilities	$	1,295
Finance	Other accrued liabilities		254

Noncurrent
Operating	Operating lease liabilities, long-term		4,011
Finance	Other long-term liabilities		183
Total lease liabilities		$	5,743

Schedule of Lease Cost

Our lease cost for the three and nine months ended September 30, 2019 is as follows:

		Three months ended		Nine months ended
		September 30, 2019
		(In thousands)
	Classification
Operating lease cost	Selling, general and administrative	$	474	$	1,219
Short-term lease costs	Selling, general and administrative		512		1,630
Amortization of leased assets	Selling, general and administrative		89		273
Interest on lease liabilities	Net interest expense		5		20
Total lease cost		$	1,080	$	3,142

Schedule of Maturity of Lease Obligations

The five year and beyond maturity of our lease obligations is presented below:

	Nine months ended
	September 30, 2019
	Operating		Finance
	Leases		Leases		Total
	(In thousands)
2019	$	408	$	92	$	500
2020		1,399		216		1,615
2021		695		116		811
2022		446		31		477
2023		351		4		355
After 2023		3,738		-		3,738
Total lease payments	$	7,037	$	459	$	7,496
Less: interest		1,794		23		1,817
Present value of lease liabilities	$	5,243	$	436	$	5,679

Schedule of Lease Term and Discount Rate for Operating and Finance Leases

The lease term and discount rate for our operating and finance leases is as follows:

	September 30, 2019
Weighted average remaining lease term (years)
Operating leases		12.4
Finance leases		2.0

Weighted average discount rate
Operating leases		4.8	%
Finance leases		4.3	%

Schedule of Other Information Pertaining to Lease Obligations

We had no material non-cash financing leases entered into during the three months ended September 30, 2019.

Other information pertaining to our lease obligations is as follows:


	September 30, 2019
	(In thousands)
Other Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	472
Operating cash flows from finance leases		6
Financing cash flows from finance leases		93

Geographic Areas (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting

	Three months ended September 30,
	Western Hemisphere				Eastern Hemisphere				Asia-Pacific					DQ Corporate						Total
	2019		2018		2019		2018		2019		2018			2019			2018			2019			2018
	(In thousands)
Revenues
Products
Standard Products	$	30,135	$	34,101	$	18,514	$	12,918	$	10,890	$	1,587		$	-		$	-		$	59,539		$	48,606
Percentage of Completion		12,425		9,724		5,143		4,916		4,744		-			-			-			22,312			14,640
Total Products		42,560		43,825		23,657		17,834		15,634		1,587			-			-			81,851			63,246
Services
Technical Advisory		8,165		7,305		3,301		3,612		2,050		2,889			-			-			13,516			13,806
Reconditioning		2,892		2,864		1,353		752		123		119			-			-			4,368			3,735
Total Services (excluding rental tools)		11,057		10,169		4,654		4,364		2,173		3,008			-			-			17,884			17,541
Leasing		4,658		5,899		2,719		3,115		1,115		3,456			-			-			8,492			12,470
Total Services (including rental tools)		15,715		16,068		7,373		7,479		3,288		6,464			-			-			26,376			30,011
Intercompany		2,572		2,564		72		1,302		2,458		573						-			5,102			4,439
Eliminations		-		-		-		-		-		-			(5,102	)		(4,439	)		(5,102	)		(4,439	)
Total Revenues	$	60,847	$	62,457	$	31,102	$	26,615	$	21,380	$	8,624		$	(5,102	)	$	(4,439	)	$	108,227		$	93,257
Depreciation and amortization	$	5,327	$	5,607	$	970	$	1,057	$	1,240	$	1,390		$	767		$	670		$	8,304		$	8,724
Income (loss) before income taxes	$	3,882	$	13,902	$	11,627	$	8,133	$	6,051	$	(301	)	$	(19,458	)	$	(34,120	)	$	2,102		$	(12,386	)

	Nine months ended September 30,
	Western Hemisphere				Eastern Hemisphere				Asia-Pacific					DQ Corporate						Total
	2019		2018		2019		2018		2019		2018			2019			2018			2019			2018
	(In thousands)
Revenues
Products
Standard Products	$	81,120	$	110,074	$	50,458	$	35,556	$	31,846	$	13,031		$	-		$	-		$	163,424		$	158,661
Percentage of Completion		36,700		20,185		16,357		16,682		8,037		3,482			-			-			61,094			40,349
Total Products		117,820		130,259		66,815		52,238		39,883		16,513			-			-			224,518			199,010
Services
Technical Advisory		22,118		20,835		11,428		12,785		7,331		7,021			-			-			40,877			40,641
Reconditioning		7,945		8,338		3,100		2,700		1,014		1,324			-			-			12,059			12,362
Total Services (excluding rental tools)		30,063		29,173		14,528		15,485		8,345		8,345			-			-			52,936			53,003
Leasing		15,942		18,162		8,804		10,837		4,153		6,279			-			-			28,899			35,278
Total Services (including rental tools)		46,005		47,335		23,332		26,322		12,498		14,624			-			-			81,835			88,281
Intercompany		9,185		9,685		418		1,835		4,237		1,300			-			-			13,840			12,820
Eliminations		-		-		-		-		-		-			(13,840	)		(12,820	)		(13,840	)		(12,820	)
Total	$	173,010	$	187,279	$	90,565	$	80,395	$	56,618	$	32,437		$	(13,840	)	$	(12,820	)	$	306,353		$	287,291
Depreciation and amortization	$	16,183	$	17,091	$	3,198	$	3,402	$	3,637	$	3,521		$	2,137		$	1,952		$	25,155		$	25,966
Income (loss) before income taxes	$	12,291	$	12,999	$	25,529	$	13,792	$	17,951	$	(45	)	$	(52,586	)	$	(45,238	)	$	3,185		$	(18,492	)


	September 30, 2019			December 31, 2018
	(In thousands)
Total long-lived assets:
Western Hemisphere	$	386,571		$	412,624
Eastern Hemisphere		242,704			256,899
Asia-Pacific		69,216			65,944
Eliminations		(371,575	)		(395,938	)
Total	$	326,916		$	339,529

Total assets:
Western Hemisphere	$	711,164		$	708,723
Eastern Hemisphere		812,930			788,171
Asia-Pacific		171,099			154,298
Eliminations		(489,558	)		(458,682	)
Total	$	1,205,635		$	1,192,510

Organization and Principles of Consolidation (Details)	9 Months Ended
Organization and Principles of Consolidation (Details)	Sep. 30, 2019 Segment Location
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of geographic segments \| Segment	3
Number of headquarter locations \| Location	3

Significant Accounting Policies (Detail)	3 Months Ended		9 Months Ended
Significant Accounting Policies (Detail)	Sep. 30, 2019 USD ($) Project $ / shares shares	Sep. 30, 2018 USD ($) Project shares	Sep. 30, 2019 USD ($) Project Method Source $ / shares shares	Sep. 30, 2018 USD ($) Project shares	Feb. 26, 2019 USD ($)	Dec. 31, 2018 USD ($)
Accounting Policies [Line Items]
Number of product revenue sources \| Method			2
Unbilled receivables	$ 76,100,000		$ 76,100,000			$ 57,000,000.0
Number of projects \| Project	29	8	31	14
Percentage of total revenues	21.90%	15.70%	20.50%	14.00%
Percentage of product revenues	28.90%	23.10%	28.00%	20.30%
Number of service revenue sources \| Source			2
Severance costs	$ 500,000		$ 4,000,000.0
Treasury stock shares (in shares) \| shares	75,737,000	1,395,521,000	125,888,000	1,614,623,000
Average price of shares (in dollars per share) \| $ / shares	$ 44.45		$ 42.60
Reclassified from engineering cost to product development cost		$ 4,800,000		$ 15,000,000.0
Reclassified from selling general and administrative cost to product cost of sales		700,000		2,300,000
Engineering cost	$ 3,900,000		$ 12,200,000
Quality assurance costs	700,000		2,300,000
Revenues	99,735,000		277,454,000
Net loss	(1,310,000)	(10,358,000)	(5,679,000)	(20,783,000)
Out-of-period adjustments
Accounting Policies [Line Items]
Net loss	(1,500,000)
Products
Accounting Policies [Line Items]
Revenues	81,851,000	$ 63,246,000	$ 224,518,000	$ 199,010,000
Products \| Out-of-period adjustments
Accounting Policies [Line Items]
Revenues	$ 3,400,000
Common Stock
Accounting Policies [Line Items]
Shares authorized to be purchased (up to) (in shares)					$ 100,000,000
Treasury stock shares (in shares) \| shares	75,737		125,888
Treasury stock, value of acquired shares	$ 3,400,000		$ 5,400,000

Significant Accounting Policies - Schedule of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accounting Policies [Abstract]
Weighted average common shares outstanding basic (in shares)	35,559	37,119	35,827	37,349
Dilutive effect of common stock awards (in shares)	0	0	0	0
Weighted average common shares outstanding diluted (in shares)	35,559	37,119	35,827	37,349

Significant Accounting Policies - Schedule of Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Director stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	39	11	37	9
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	170	181	200	196
Performance share units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	298	126	298	90
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	332	172	343	125

Revenue Recognition - Contracts With Customers Excludes Leasing (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Disaggregation Of Revenue [Line Items]
Revenues	$ 99,735		$ 277,454
Western Hemisphere \| Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	53,618		147,883
Eastern Hemisphere \| Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	28,310		81,343
Asia Pacific \| Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	17,807		48,228
Products
Disaggregation Of Revenue [Line Items]
Revenues	81,851	$ 63,246	224,518	$ 199,010
Products \| Western Hemisphere \| Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	42,561		117,820
Products \| Eastern Hemisphere \| Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	23,656		66,815
Products \| Asia Pacific \| Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	15,634		39,883
Services
Disaggregation Of Revenue [Line Items]
Revenues	17,884		52,936
Services \| Western Hemisphere \| Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	11,057		30,063
Services \| Eastern Hemisphere \| Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	4,654		14,528
Services \| Asia Pacific \| Operating Segments
Disaggregation Of Revenue [Line Items]
Revenues	$ 2,173		$ 8,345

Revenue Recognition - Contract Asset and Liability (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($)
Change in Contract with Customer, Asset [Abstract]
Contract Assets at December 31, 2018	$ 83,188
Additions	62,987
Transfers to Accounts Receivable	(25,078)
Contract Assets at September 30, 2019	121,097
Change in Contract with Customer, Liability [Abstract]
Contract Liabilities at December 31, 2018	9,648
Contract Liabilities at September 30, 2019	7,972
Other Current Liabilities
Change in Contract with Customer, Liability [Abstract]
Contract Liabilities at December 31, 2018	9,648
Additions	305,985
Revenue Recognized	(307,660)
Contract Liabilities at September 30, 2019	$ 7,973

Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Revenue From Contract With Customer [Abstract]
Accounts receivable	$ 121,097	$ 83,188
Unbilled receivables	76,100	$ 57,000
Performance obligation	$ 110,700

Revenue Recognition - Narrative (Details1) - Transferred over Time	Sep. 30, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-10-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligation percentage	48.40%
Expected timing of satisfaction period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligation percentage	100.00%
Expected timing of satisfaction period	24 months

Stock-Based Compensation and Stock Awards - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized expense	$ 0	$ 0	$ 0	$ 0
2016 Performance Share Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 4,300,000
Percentage of performance metrics criteria	200.00%		200.00%
Former Chief Operating Officer \| Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense			$ 1,800,000
Former Chief Operating Officer \| Performance share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense			2,400,000
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 7,700,000	$ 2,400,000	$ 15,700,000	$ 10,000,000.0

Inventories, net (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 44,159	$ 55,878
Work in progress	54,815	51,251
Finished goods	183,448	192,632
Inventory, gross, Total	282,422	299,761
Less: allowance for excess and slow moving inventory	(80,767)	(108,567)
Total inventory	$ 201,655	$ 191,194

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Accumulated Amortization	$ (7,029)	$ (4,991)
Finite-Lived, Foreign Currency Translation	(104)	(343)
Indefinite-lived, Gross Book Value	172	172
Indefinite-lived Intangible Assets, Foreign Currency Translation	(7)
Indefinite-lived Intangible, Net Book Value	165	172
Indefinite and Finite-Lived, Gross Book Value	40,234	40,308
Indefinite and Finite-Lived, Net Book Value	$ 33,101	$ 34,974
Trademarks
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	15 years	15 years
Finite-Lived, Gross Book Value	$ 8,159	$ 8,236
Accumulated Amortization	0	0
Finite-Lived, Foreign Currency Translation	1	(72)
Finite-Lived, Net Book Value	8,160	8,164
Patents
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Finite-Lived, Gross Book Value	5,945	6,026
Accumulated Amortization	(2,267)	(1,925)
Finite-Lived, Foreign Currency Translation	(2)	(11)
Finite-Lived, Net Book Value	$ 3,676	$ 4,090
Patents \| Minimum
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	15 years	15 years
Patents \| Maximum
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	30 years	30 years
Customer relationships
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Finite-Lived, Gross Book Value	$ 25,787	$ 25,703
Accumulated Amortization	(4,606)	(2,953)
Finite-Lived, Foreign Currency Translation	(96)	(260)
Finite-Lived, Net Book Value	$ 21,085	$ 22,490
Customer relationships \| Minimum
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	5 years	5 years
Customer relationships \| Maximum
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	15 years	15 years
Non-compete agreements
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	3 years	3 years
Finite-Lived, Gross Book Value	$ 171	$ 171
Accumulated Amortization	(156)	(113)
Finite-Lived, Foreign Currency Translation	0	0
Finite-Lived, Net Book Value	$ 15	$ 58

Leases - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases [Abstract]
Cumulative effect of new accounting principle in period of adoption			$ 5,500
Operating lease liabilities	$ 1,295	$ 1,295	1,600
Operating lease liabilities, long-term	4,011	4,011	$ 3,900
Lease expense recognize on a straight-line basis	500	1,600
2019	500	500		$ 2,000
2020	1,615	1,615		1,500
2021	811	811		800
2022	477	477		500
2023	355	355		400
After 2023	$ 3,738	$ 3,738		$ 4,200

Leases - Schedule of Classification of Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Assets
Operating	$ 5,328
Finance	$ 419
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent
Total lease assets	$ 5,747
Current
Operating	1,295	$ 1,600
Finance	$ 254
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherAccruedLiabilitiesCurrent
Noncurrent
Operating	$ 4,011	$ 3,900
Finance	$ 183
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent
Total lease liabilities	$ 5,743

Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Lessor Lease Description [Line Items]
Total lease cost	$ 1,080	$ 3,142
Selling, General and Administrative
Lessor Lease Description [Line Items]
Operating lease cost	474	1,219
Short-term lease costs	512	1,630
Amortization of leased assets	89	273
Net Interest Expense
Lessor Lease Description [Line Items]
Interest on lease liabilities	$ 5	$ 20

Leases - Schedule of Maturity of Lease Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Operating Leases
2019	$ 408
2020	1,399
2021	695
2022	446
2023	351
After 2023	3,738
Total lease payments	7,037
Less: interest	1,794
Present value of lease liabilities	5,243
Finance Leases
2019	92
2020	216
2021	116
2022	31
2023	4
Total lease payments	459
Less: interest	23
Present value of lease liabilities	436
Total
2019	500	$ 2,000
2020	1,615	1,500
2021	811	800
2022	477	500
2023	355	400
After 2023	3,738	$ 4,200
Total lease payments	7,496
Less: interest	1,817
Present value of lease liabilities	$ 5,679

Leases - Schedule of Lease Term and Discount Rate for Operating and Finance Leases (Details)	Sep. 30, 2019
Leases [Abstract]
Weighted average remaining lease term, Operating leases	12 years 4 months 24 days
Weighted average remaining lease term, Finance leases	2 years
Weighted average discount rate, Operating leases	4.80%
Weighted average discount rate, Finance leases	4.30%

Leases - Schedule of Other Information Pertaining to Lease Obligations (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 472
Operating cash flows from finance leases	6
Financing cash flows from finance leases	$ 93

Asset Backed Loan (ABL) Credit Facility (Details) - ABL Credit Facility - Revolving Credit Facility		9 Months Ended
	Feb. 23, 2018 USD ($)	Sep. 30, 2019 USD ($)
Debt Instrument [Line Items]
Debt instrument, term	5 years
Total commitments	$ 100,000,000.0
Amount available for letters of credit (up to)	$ 10,000,000.0
Fixed charges ratio		1.0
Available borrowing capacity		$ 41,000,000.0
Letters of credit outstanding		$ 400,000
Minimum
Debt Instrument [Line Items]
Commitment fee percentage	0.25%
Minimum \| CB Floating Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Minimum \| Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Maximum
Debt Instrument [Line Items]
Commitment fee percentage	0.375%
Maximum \| CB Floating Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Maximum \| Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%

Geographic Areas - Schedule of Segment Reporting (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Segment Reporting Information [Line Items]
Revenues	$ 108,227	$ 93,257	$ 306,353	$ 287,291
Depreciation and amortization	8,304	8,724	25,155	25,966
Income (loss) before income taxes	2,102	(12,386)	3,185	(18,492)
Total long-lived assets	326,916		326,916		$ 339,529
Total assets	1,205,635		1,205,635		1,192,510
Intercompany
Segment Reporting Information [Line Items]
Revenues	5,102	4,439	13,840	12,820
Eliminations
Segment Reporting Information [Line Items]
Revenues	(5,102)	(4,439)	(13,840)	(12,820)
Total long-lived assets	(371,575)		(371,575)		(395,938)
Total assets	(489,558)		(489,558)		(458,682)
Western Hemisphere
Segment Reporting Information [Line Items]
Revenues	60,847	62,457	173,010	187,279
Western Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Depreciation and amortization	5,327	5,607	16,183	17,091
Income (loss) before income taxes	3,882	13,902	12,291	12,999
Total long-lived assets	386,571		386,571		412,624
Total assets	711,164		711,164		708,723
Western Hemisphere \| Intercompany
Segment Reporting Information [Line Items]
Revenues	2,572	2,564	9,185	9,685
Western Hemisphere \| Eliminations
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Eastern Hemisphere
Segment Reporting Information [Line Items]
Revenues	31,102	26,615	90,565	80,395
Eastern Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Depreciation and amortization	970	1,057	3,198	3,402
Income (loss) before income taxes	11,627	8,133	25,529	13,792
Total long-lived assets	242,704		242,704		256,899
Total assets	812,930		812,930		788,171
Eastern Hemisphere \| Intercompany
Segment Reporting Information [Line Items]
Revenues	72	1,302	418	1,835
Eastern Hemisphere \| Eliminations
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Revenues	(5,102)	(4,439)	(13,840)	(12,820)
Depreciation and amortization	767	670	2,137	1,952
Income (loss) before income taxes	(19,458)	(34,120)	(52,586)	(45,238)
Corporate, Non-Segment \| Eliminations
Segment Reporting Information [Line Items]
Revenues	(5,102)	(4,439)	(13,840)	(12,820)
Asia Pacific
Segment Reporting Information [Line Items]
Revenues	21,380	8,624	56,618	32,437
Asia Pacific \| Operating Segments
Segment Reporting Information [Line Items]
Depreciation and amortization	1,240	1,390	3,637	3,521
Income (loss) before income taxes	6,051	(301)	17,951	(45)
Total long-lived assets	69,216		69,216		65,944
Total assets	171,099		171,099		$ 154,298
Asia Pacific \| Intercompany
Segment Reporting Information [Line Items]
Revenues	2,458	573	4,237	1,300
Asia Pacific \| Eliminations
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Products \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	81,851	63,246	224,518	199,010
Products \| Operating Segments \| Transferred at Point in Time
Segment Reporting Information [Line Items]
Revenues	59,539	48,606	163,424	158,661
Products \| Operating Segments \| Transferred over Time
Segment Reporting Information [Line Items]
Revenues	22,312	14,640	61,094	40,349
Products \| Western Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	42,560	43,825	117,820	130,259
Products \| Western Hemisphere \| Operating Segments \| Transferred at Point in Time
Segment Reporting Information [Line Items]
Revenues	30,135	34,101	81,120	110,074
Products \| Western Hemisphere \| Operating Segments \| Transferred over Time
Segment Reporting Information [Line Items]
Revenues	12,425	9,724	36,700	20,185
Products \| Eastern Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	23,657	17,834	66,815	52,238
Products \| Eastern Hemisphere \| Operating Segments \| Transferred at Point in Time
Segment Reporting Information [Line Items]
Revenues	18,514	12,918	50,458	35,556
Products \| Eastern Hemisphere \| Operating Segments \| Transferred over Time
Segment Reporting Information [Line Items]
Revenues	5,143	4,916	16,357	16,682
Products \| Asia Pacific \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	15,634	1,587	39,883	16,513
Products \| Asia Pacific \| Operating Segments \| Transferred at Point in Time
Segment Reporting Information [Line Items]
Revenues	10,890	1,587	31,846	13,031
Products \| Asia Pacific \| Operating Segments \| Transferred over Time
Segment Reporting Information [Line Items]
Revenues	4,744		8,037	3,482
Technical Advisory \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	13,516	13,806	40,877	40,641
Technical Advisory \| Western Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	8,165	7,305	22,118	20,835
Technical Advisory \| Eastern Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	3,301	3,612	11,428	12,785
Technical Advisory \| Asia Pacific \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	2,050	2,889	7,331	7,021
Reconditioning \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	4,368	3,735	12,059	12,362
Reconditioning \| Western Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	2,892	2,864	7,945	8,338
Reconditioning \| Eastern Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	1,353	752	3,100	2,700
Reconditioning \| Asia Pacific \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	123	119	1,014	1,324
Total Services (excluding rental tools) \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	17,884	17,541	52,936	53,003
Total Services (excluding rental tools) \| Western Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	11,057	10,169	30,063	29,173
Total Services (excluding rental tools) \| Eastern Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	4,654	4,364	14,528	15,485
Total Services (excluding rental tools) \| Asia Pacific \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	2,173	3,008	8,345	8,345
Leasing \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	8,492	12,470	28,899	35,278
Leasing \| Western Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	4,658	5,899	15,942	18,162
Leasing \| Eastern Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	2,719	3,115	8,804	10,837
Leasing \| Asia Pacific \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	1,115	3,456	4,153	6,279
Total Services (including rental tools) \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	26,376	30,011	81,835	88,281
Total Services (including rental tools) \| Western Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	15,715	16,068	46,005	47,335
Total Services (including rental tools) \| Eastern Hemisphere \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	7,373	7,479	23,332	26,322
Total Services (including rental tools) \| Asia Pacific \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	$ 3,288	$ 6,464	$ 12,498	$ 14,624

Geographic Areas - Additional Information (Detail)	9 Months Ended
Geographic Areas - Additional Information (Detail)	Sep. 30, 2019 Segment Location
Segment Reporting [Abstract]
Number of geographic segments \| Segment	3
Number of headquarter locations \| Location	3

Income Tax - Additional Information (Detail)	3 Months Ended		6 Months Ended
Income Tax - Additional Information (Detail)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Effective tax rate, percent	162.30%	16.40%	278.30%	(12.40%)

Commitments and Contingencies (Details) - Brazil $ in Millions	2 Months Ended
	Jan. 31, 2011 USD ($) assessment	Dec. 31, 2016 USD ($)	Dec. 31, 2014 USD ($)
Commitments And Contingencies [Line Items]
Number of tax assessments \| assessment	2
Value of assessments served on Brazilian subsidiary	$ 13.0
Court deposit		$ 8.8	$ 8.8