Note 3 - Inventories

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Inventory Disclosure [Text Block]

Note 3 — Inventories

Inventories consisted of the following items at December 31:

(In thousands)		2015		2014
Raw materials:
Drilling fluids	$	133,934	$	152,076
Mats		657		1,531
Total raw materials		134,591		153,607
Blended drilling fluids components		25,343		40,971
Finished goods- mats		3,723		1,978
Total inventories	$	163,657	$	196,556

Raw materials consist primarily of barite, chemicals, and other additives that are consumed in the production of our drilling fluid systems. Our blended drilling fluids components consist of base drilling fluid systems that have been either mixed internally at our mixing plants or purchased from third party vendors. These base systems require raw materials to be added, as required to meet specified customer requirements.

In the fourth quarter of 2015, we recognized a $2.2 million charge reported in cost of revenues to reduce the carrying value of diesel-based drilling fluid inventory in the Fluids Systems segment. The charge resulted from lower of cost or market adjustments due to the decline in selling prices for our diesel-based drilling fluid products coupled with declines in replacement costs of diesel fuel.