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Segment Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
Reporting Segments

Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker ("CODM") in deciding how to allocate resources and assess performance. We are comprised of three reportable segments: Tubular Running Services (“TRS”) segment, Tubulars segment and Cementing Equipment (“CE”) segment.

The TRS segment provides tubular running services globally. Internationally, the TRS segment operates in the majority of the offshore oil and gas markets and also in several onshore regions with operations in approximately 40 countries on six continents. In the U.S., the TRS segment provides services in the active onshore oil and gas drilling regions, including the Permian Basin, Eagle Ford Shale, Haynesville Shale, Marcellus Shale and Utica Shale, and in the U.S. Gulf of Mexico. Our customers are primarily large exploration and production companies, including international oil and gas companies, national oil and gas companies, major independents and other oilfield service companies.

The Tubulars segment designs, manufactures and distributes connectors and casing attachments for large outside diameter (“OD”) heavy wall pipe. Additionally, the Tubulars segment sells large OD pipe originally manufactured by various pipe mills, as plain end or fully fabricated with proprietary welded or thread-direct connector solutions and provides specialized fabrication and welding services in support of offshore deepwater projects, including drilling and production risers, flowlines and pipeline end terminations, as well as long-length tubular assemblies up to 400 feet in length. The Tubulars segment also specializes in the development, manufacture and supply of proprietary drilling tool solutions that focus on improving drilling productivity through eliminating or mitigating traditional drilling operational risks.

The CE segment provides specialty equipment to enhance the safety and efficiency of rig operations. It provides specialized equipment, services and products utilized in the construction of the wellbore in both onshore and offshore environments. The product portfolio includes casing accessories that serve to improve the installation of casing, centralization and wellbore zonal isolation, as well as enhance cementing operations through advance wiper plug and float equipment technology. The CE segment also provides services and products utilized in the construction, completion or abandonment of the wellbore. These solutions are primarily used to isolate portions of the wellbore through the setting of barriers downhole to allow for rig evacuation in case of inclement weather, maintenance work on other rig equipment, squeeze cementing, pressure testing within the wellbore and temporary and permanent abandonments. These offerings improve operational efficiencies and limit non-productive time if unscheduled events are encountered at the wellsite.

Revenue

We disaggregate our revenue from contracts with customers by geography for each of our segments, as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Intersegment revenue is immaterial.
The following tables presents our revenue disaggregated by geography, based on the location where our services were provided and products sold (in thousands):
Three Months Ended March 31, 2021
Tubular Running ServicesTubularsCementing EquipmentConsolidated
United States$18,367 $7,993 $9,345 $35,705 
International47,918 3,676 7,512 59,106 
Total Revenue$66,285 $11,669 $16,857 $94,811 
Three Months Ended March 31, 2020
Tubular Running ServicesTubularsCementing EquipmentConsolidated
United States$30,169 $9,797 $13,531 $53,497 
International59,328 2,745 7,922 69,995 
Total Revenue$89,497 $12,542 $21,453 $123,492 

    Revenue by geographic area were as follows (in thousands):
Three Months Ended
March 31,
20212020
United States$35,705 $53,497 
Europe/Middle East/Africa28,254 35,434 
Latin America21,934 20,925 
Asia Pacific7,653 9,569 
Other countries1,265 4,067 
Total Revenue$94,811 $123,492 

Adjusted EBITDA

    We define Adjusted EBITDA as net income (loss) before interest income, net, depreciation and amortization, income tax benefit or expense, asset impairments, gain or loss on disposal of assets, foreign currency gain or loss, equity-based compensation, unrealized and realized gain or loss, net severance and other charges, other non-cash adjustments and other charges. We review Adjusted EBITDA on both a consolidated basis and on a segment basis. We use Adjusted EBITDA to assess our financial performance because it allows us to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization), income tax, foreign currency exchange rates and other charges and credits. Adjusted EBITDA has limitations as an analytical tool and should not be considered as an alternative to net income (loss), operating income (loss), cash flow from operating activities or any other measure of financial performance presented in accordance with GAAP.

    Our CODM uses Adjusted EBITDA as the primary measure of segment reporting performance.
    The following table presents a reconciliation of Segment Adjusted EBITDA to net loss (in thousands):
Three Months Ended
March 31,
20212020
Segment Adjusted EBITDA:
Tubular Running Services$8,128 $13,305 
Tubulars639 1,396 
Cementing Equipment4,795 2,544 
Corporate (1)
(6,909)(10,186)
6,653 7,059 
Goodwill impairment
— (57,146)
Severance and other charges, net
(7,376)(20,725)
Interest income (expense), net(287)533 
Depreciation and amortization
(16,107)(19,718)
Income tax (expense) benefit(1,070)15,563 
Gain (loss) on disposal of assets182 (60)
Foreign currency loss(2,868)(9,892)
Charges and credits (2)
(3,013)(1,592)
Net loss$(23,886)$(85,978)
(1)    Includes certain expenses not attributable to a particular segment, such as costs related to support functions and corporate executives.
(2)    Comprised of Equity-based compensation expense (for the three months ended March 31, 2021 and 2020: $2,872 and $2,146, respectively), Unrealized and realized gains (losses) (for the three months ended March 31, 2021 and 2020: $(99) and $1,704, respectively) and Investigation-related matters (for the three months ended March 31, 2021 and 2020: $42 and $1,150, respectively).

    The following tables set forth certain financial information with respect to our reportable segments (in thousands):
Tubular Running ServicesTubularsCementing EquipmentCorporateTotal
Three Months Ended March 31, 2021
Revenue from external customers
$66,285 $11,669 $16,857 $— $94,811 
Operating income (loss)(5,452)(875)1,993 (15,452)(19,786)
Adjusted EBITDA8,128 639 4,795 (6,909)*
Three Months Ended March 31, 2020
Revenue from external customers
$89,497 $12,542 $21,453 $— $123,492 
Operating income (loss)(1,315)651 (77,498)(16,046)(94,208)
Adjusted EBITDA13,305 1,396 2,544 (10,186)*
* Non-GAAP financial measure not disclosed.