Geographic Areas

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Geographic Areas

10. Geographic Areas

The Company’s operations are organized into three geographic segments - Western Hemisphere (including North and South America; headquartered in Houston, Texas), Eastern Hemisphere (including Europe and Africa; headquartered in Aberdeen, Scotland) and Asia-Pacific (including the Pacific Rim, Southeast Asia, Australia, India and the Middle East; headquartered in Singapore). Each of these segments sells similar products and services and the Company has manufacturing facilities in all three of its regional headquarter locations as well as in Macae, Brazil.

Eliminations of operating profits are related to intercompany inventory transfers that are deferred until shipment is made to third party customers.

	Three months ended September 30,
	Western Hemisphere				Eastern Hemisphere					Asia-Pacific					DQ Corporate						Total
	2022		2021		2022		2021			2022			2021		2022			2021			2022			2021
	(In thousands)
Revenues
Products
Point in Time	$	17,355	$	22,692	$	3,992	$	6,276		$	4,628		$	3,953	$	-		$	-		$	25,975		$	32,921
Over-Time		18,887		14,920		8,158		3,941			5,488			1,840		-			-			32,533			20,701
Total Products		36,242		37,612		12,150		10,217			10,116			5,793		-			-			58,508			53,622
Services
Technical Advisory		9,899		10,814		3,303		2,038			1,131			3,629		-			-			14,333			16,481
Reconditioning		4,517		2,058		677		420			916			601		-			-			6,110			3,079
Total Services (excluding rental tools)		14,416		12,872		3,980		2,458			2,047			4,230		-			-			20,443			19,560
Leasing		5,310		6,627		3,588		1,564			292			1,624		-			-			9,190			9,815
Total Services (including rental tools)		19,726		19,499		7,568		4,022			2,339			5,854		-			-			29,633			29,375
Intercompany		1,352		4,029		120		920			1,518			576					-			2,990			5,525
Eliminations		-		-		-		-			-			-		(2,990	)		(5,525	)		(2,990	)		(5,525	)
Total Revenues	$	57,320	$	61,140	$	19,838	$	15,159		$	13,973		$	12,223	$	(2,990	)	$	(5,525	)	$	88,141		$	82,997
Depreciation and amortization	$	4,257	$	4,736	$	997	$	1,044		$	965		$	1,194	$	904		$	925		$	7,123		$	7,899
Income (loss) before income taxes	$	25,135	$	8,417	$	5,578	$	(1,273	)	$	(562	)	$	2,002	$	(15,551	)	$	(15,988	)	$	14,600		$	(6,842	)

During the three months ended September 30, 2022, the Company incurred additional $2.2 million costs under the 2021 global strategic plan. These charges were primarily related to office moves, site cleanup, preparation costs, consulting and legal fees at DQ Corporate. During the three months ended September 30, 2021, the Company did not incur any restructuring and other charges.

	Nine months ended September 30,
	Western Hemisphere					Eastern Hemisphere					Asia-Pacific					DQ Corporate						Total
	2022		2021			2022		2021			2022			2021		2022			2021			2022			2021
	(In thousands)
Revenues
Products
Point in Time	$	57,861	$	76,927		$	11,089	$	17,086		$	15,746		$	19,420	$	-		$	-		$	84,696		$	113,433
Over-Time		58,907		35,860			25,014		8,419			7,512			7,354		-			-			91,433			51,633
Total Products		116,768		112,787			36,103		25,505			23,258			26,774		-			-			176,129			165,066
Services
Technical Advisory		27,863		26,916			8,594		6,058			6,130			11,603		-			-			42,587			44,577
Reconditioning		11,204		6,897			1,913		1,690			1,834			1,599		-			-			14,951			10,186
Total Services (excluding rental tools)		39,067		33,813			10,507		7,748			7,964			13,202		-			-			57,538			54,763
Leasing		18,937		15,297			8,059		4,635			4,593			5,272		-			-			31,589			25,204
Total Services (including rental tools)		58,004		49,110			18,566		12,383			12,557			18,474		-			-			89,127			79,967
Intercompany		9,558		8,807			2,580		1,558			3,127			8,875		-			-			15,265			19,240
Eliminations		-		-			-		-			-			-		(15,265	)		(19,240	)		(15,265	)		(19,240	)
Total	$	184,330	$	170,704		$	57,249	$	39,446		$	38,942		$	54,123	$	(15,265	)	$	(19,240	)	$	265,256		$	245,033
Depreciation and amortization	$	13,486	$	13,291		$	3,072	$	3,021		$	3,064		$	3,576	$	2,730		$	2,770		$	22,352		$	22,658
Income (loss) before income taxes	$	47,780	$	(13,136	)	$	7,935	$	(583	)	$	(739	)	$	17,540	$	(49,213	)	$	(57,295	)	$	5,763			(53,474	)

During the nine months ended September 30, 2022, the Company incurred additional costs under the 2021 global strategic plan. These charges were primarily related to a $2.6 million write down of our Houston corporate administrative building in DQ Corporate and other long-lived asset write downs of $2.5 million in the Western Hemisphere. In addition, there were other charges of $2.9 million primarily related to office moves, site cleanup, preparation costs, consulting and legal fees at DQ Corporate. During the nine months ended September 30, 2021, we recorded $26.0 million of restructuring and other charges. These charges were related to non-cash inventory write downs, severance charges and other charges, primarily consisting of facilities restructuring exit costs and consulting fees. Of these charges, $21.0 million was recorded in the Western Hemisphere, $1.6 million in the Eastern Hemisphere and $3.4 million at DQ Corporate.

	September 30, 2022			December 31, 2021
	(In thousands)
Total long-lived assets:
Western Hemisphere	$	304,501		$	335,760
Eastern Hemisphere		218,909			224,345
Asia-Pacific		55,302			58,308
Eliminations		(353,946	)		(353,536	)
Total	$	224,766		$	264,877
Total assets:
Western Hemisphere	$	856,459		$	686,361
Eastern Hemisphere		794,465			805,574
Asia-Pacific		180,276			184,097
Eliminations		(860,676	)		(665,606	)
Total	$	970,524		$	1,010,426

As of September 30, 2022, the Company had recorded a $2.6 million write down of our Houston corporate administrative building at DQ Corporate and other long-lived asset write downs of $2.5 million in the Western Hemisphere. As of September 30, 2021, we had $19.1 million of non-cash inventory write-downs in the Western Hemisphere and $0.2 million in the Eastern Hemisphere as we shifted from the manufacturing of our downhole tools products business to a vendor outsourcing model.