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Discontinued Operations
 3 Months Ended
Mar. 31, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
During the fourth quarter 2016, the Company initiated a strategic restructuring of its business to enable a greater focus on its core businesses in energy chemistry and consumer and industrial chemistry. The Company is executing a plan to sell or otherwise dispose of the Drilling Technologies and Production Technologies segments. An investment banking advisory services firm has been engaged and is actively marketing these segments.
The Company met all of the criteria to classify the Drilling Technologies and Production Technologies segments’ assets and liabilities as held for sale in the fourth quarter 2016. Effective December 31, 2016, the Company classified the assets, liabilities, and results of operations for these two segments as “Discontinued Operations” for all periods presented.
Disposal of the Drilling Technologies and Production Technologies reporting segments represents a strategic shift that will have a major effect on the Company’s operations and financial results. These segments are available for immediate sale in their present condition, subject only to usual and customary terms, and management expects sales to be completed by the end of 2017.
The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations for the three months ended March 31, 2017 and 2016 (in thousands):
 
Three months ended March 31,
 
2017
 
2016
Drilling Technologies
 
 
 
Revenue
$
6,797

 
$
6,456

Cost of revenue
(4,655
)
 
(5,431
)
Selling, general and administrative
(3,031
)
 
(4,665
)
Depreciation and amortization
—

 
(748
)
Research and development
—

 
(42
)
Gain (loss) on disposal of long-lived assets
73

 
—

Impairment of inventory and long-lived assets
—

 
(36,522
)
Loss from operations
(816
)
 
(40,952
)
Other expense
(71
)
 
(175
)
Loss on write-down of assets held for sale
(6,560
)
 
—

Loss before income taxes
(7,447
)
 
(41,127
)
Income tax benefit
2,713

 
14,499

Net loss from discontinued operations
$
(4,734
)
 
$
(26,628
)
 
 
 
 
Production Technologies
 
 
 
Revenue
$
3,153

 
$
2,021

Cost of revenue
(2,483
)
 
(1,911
)
Selling, general and administrative
(873
)
 
(1,211
)
Depreciation and amortization
—

 
(148
)
Research and development
(271
)
 
(267
)
Impairment of inventory
—

 
(3,913
)
Loss from operations
(474
)
 
(5,429
)
Other expense
(36
)
 
(20
)
Loss on write-down of assets held for sale
(9,717
)
 
—

Loss before income taxes
(10,227
)
 
(5,449
)
Income tax benefit
3,726

 
1,921

Net loss from discontinued operations
$
(6,501
)
 
$
(3,528
)
 
 
 
 
Drilling Technologies and Production Technologies
 
 
 
Loss from discontinued operations, net of tax
$
(11,235
)
 
$
(30,156
)

The assets and liabilities held for sale on the Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 are as follows (in thousands):
 
Drilling Technologies
 
Production Technologies
 
March 31, 2017
 
December 31, 2016
 
March 31, 2017
 
December 31, 2016
Assets:
 
 
 
 
 
 
 
Accounts receivable, net
$
5,328

 
$
5,072

 
$
1,993

 
$
1,784

Inventories
9,059

 
9,078

 
7,768

 
8,115

Other current assets
272

 
278

 
381

 
370

Long-term receivable
—

 
—

 
4,179

 
4,179

Property and equipment, net
11,352

 
11,277

 
4,059

 
3,978

Goodwill
15,333

 
15,333

 
1,689

 
1,689

Other intangible assets, net
7,398

 
7,395

 
489

 
484

Assets held for sale
48,742

 
48,433

 
20,558

 
20,599

Valuation allowance
(25,531
)
 
(18,971
)
 
(15,878
)
 
(6,161
)
Assets held for sale, net
$
23,211

 
$
29,462

 
$
4,680

 
$
14,438

Liabilities:
 
 
 
 
 
 
 
Accounts payable
$
3,162

 
$
2,472

 
$
834

 
$
914

Accrued liabilities
464

 
1,190

 
178

 
385

Liabilities held for sale
$
3,626

 
$
3,662

 
$
1,012

 
$
1,299