Discontinued Operations

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

On January 29, 2021, we entered into the Purchase and Sale Agreement with Spartan pursuant to which we sold the general partner of CSI Compressco, including the IDRs in CSI Compressco and approximately 23.1% of the outstanding limited partner interests in CSI Compressco. As a result of these transactions, we no longer consolidate CSI Compressco as of January 29, 2021. We recognized a primarily non-cash accounting gain of $120.1 million during the year ended December 31, 2021 related to the GP Sale. The gain is included in income (loss) from discontinued operations, net of taxes in our consolidated statement of operations. We also provided back-office support to CSI Compressco under a Transition Services Agreement for one year until CSI Compressco completed a full separation from our back-office support functions. During the year ended December 31, 2021, we received $7.0 million from CSI Compressco for services provided under the Transition Services Agreement and other reimbursements and paid $0.5 million to CSI Compressco for reimbursement of expenses. Our interest in CSI Compressco and the general partner represented substantially all of our Compression Division.

In addition, on March 1, 2018, we closed a series of related transactions that resulted in the disposition of our Offshore Division, consisting of our Offshore Services and Maritech segments. Our former Compression and Offshore Divisions are reported as discontinued operations for all periods presented. Our consolidated balance sheets and consolidated statements of operations report discontinued operations separate from continuing operations. Our consolidated statements of comprehensive income, statements of equity and statements of cash flows combine continuing and discontinued operations. Our current-year consolidated statement of operations, statement of comprehensive income, statement of equity and statement of cash flows include CSI Compressco activity for January 1 through January 29. Our consolidated statements of cash flows for the years ended December 31, 2021, 2020 and 2019 included $3.0 million, $14.7 million and $75.8 million, respectively, of capital expenditures related to our former Compression division. Our consolidated statements of cash flows also included $411.1 million of proceeds from long-term debt, $413.1 million of payments of long-term debt, $19.4 million from proceeds from sale of property, plant and equipment, $4.9 million of debt exchange expenses and $2.6 million from amortization of deferred financing discounts, costs and gains for the year ended December 31, 2020, and included $45.0 million of proceeds from long-term debt, $41.6 million of payments of long-term debt, $11.0 million from proceeds from sale of property, plant and equipment, and $2.6 million from amortization of deferred financing discounts, costs and gains for the year ended December 31, 2019. Our current-year results do not include CSI Compressco depreciation or amortization as the assets were considered held for sale. A summary of financial information related to our discontinued operations is as follows:

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

(in thousands)


	Year Ended December 31, 2021
	Compression		Offshore Services		Total
Revenue	$	18,968	$	—	$	18,968
Cost of revenues	11,471		(142)		11,329


General and administrative expense	2,766		(179)		2,587
Interest expense, net	4,336		—		4,336

Other expense, net	164		252		416
Pretax income from discontinued operations	231		69		300
Pretax income on disposal of discontinued operations					120,137
Total pretax income from discontinued operations					120,437
Income tax provision					30
Income from discontinued operations					120,407
Income from discontinued operations attributable to noncontrolling interest					(333)
Income from discontinued operations attributable to TETRA stockholders					$	120,074


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

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


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


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

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

(in thousands)


	December 31, 2021
	Offshore Services		Maritech		Total











Carrying amounts of major classes of liabilities included as part of discontinued operations
Trade payables	$	1,157	$	—	$	1,157

Accrued liabilities and other	—		228		228




Total liabilities associated with discontinued operations	$	1,157	$	228	$	1,385


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

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

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

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

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

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

(1) All assets and liabilities associated with discontinued operations of our former Compression Division are classified as current as of December 31, 2020 due to completion of the GP Sale within one year.