Discontinued Operations

3 Months Ended

Mar. 31, 2021

Discontinued Operations [Abstract]

Discontinued Operations

(20) Discontinued Operations

On December 10, 2019, the Predecessor’s indirect, wholly owned subsidiary, Pumpco Energy Services, Inc. (Pumpco), completed its existing hydraulic fracturing field operations and determined to discontinue, wind down and exit its hydraulic fracturing operations. The Successor intends to maintain an adequate number of employees to efficiently wind down Pumpco’s business on or around December 31, 2021. The financial results of Pumpco’s operations have historically been included in the Predecessor’s North America segment. The Successor continued to sell Pumpco’s fixed assets as of March 31, 2021.

The following table summarizes the components of discontinued operations, net of tax (in thousands):

	Successor		Predecessor
	For the Period February 3, 2021 through March 31, 2021		For the Period January 1, 2021 through February 2, 2021		Three Months Ended March 31, 2020
Revenues	$	-	$	-	$	254
Cost of services (1)		(1,808)		210		5,459
Income (loss) from discontinued operations before tax		878		2,265		(59,651)
Income (loss) from discontinued operations, net of income tax		878		2,265		(47,129)

(1)As discussed above under “Changes in Accounting Policies” gains and losses from asset sales are included as a component of Cost of services in the Successor period.

For the Prior Predecessor Quarter, loss from discontinued operations included $46.4 million in the reduction in value of assets relating to the impairment of property, plant and equipment. Income taxes for the Prior Predecessor Quarter were $12.5 million.

The following summarizes the assets and liabilities related to the Pumpco business reported as discontinued operations (in thousands):

	Successor		Predecessor
	March 31, 2021		December 31, 2020
Current assets:
Other current assets	$	1,997	$	2,155
Total current assets		1,997		2,155
Property, plant and equipment, net		39,863		45,397
Operating lease ROU assets		21		83
Total assets	$	41,881	$	47,635
Current liabilities:
Accounts payable	$	-	$	165
Accrued expenses		1,177		1,326
Total current liabilities		1,177		1,491
Operating lease liabilities		-		2,588
Total liabilities	$	1,177	$	4,079

Significant operating non-cash items relating to Pumpco and cash flows from investing activities were as follows (in thousands):

	Successor		Predecessor
	For the Period February 3, 2021 through March 31, 2021		For the Period January 1, 2021 through February 2, 2021		Three Months Ended March 31, 2020
Cash flows from discontinued operating activities:
Reduction in value of assets	$	-	$	-	$	46,358
Cash flows from discontinued investing activities:
Proceeds from sales of assets		5,024		486		8,449