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Discontinued Operations
 12 Months Ended
Dec. 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 executed a plan to sell or otherwise dispose of the Drilling Technologies and Production Technologies segments. An investment banking advisory services firm was engaged and actively marketed 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. The Company has 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 represented a strategic shift that would have a major effect on the Company’s operations and financial results.
On December 30, 2016, the Company sold a portion of its Drilling Technologies segment and recorded a loss of $1.2 million which is included in the loss from discontinued operations for the year ended December 31, 2016.
On May 22, 2017, the Company completed the sale of substantially all of the assets and transfer of certain specified liabilities and obligations of the Company’s Drilling Technologies segment to National Oilwell Varco, L.P. (“NOV”) for $17.0 million in cash consideration, subject to normal working capital adjustments, with $1.5 million held back by NOV for up to 18 months to satisfy potential indemnification claims.
On May 23, 2017, the Company completed the sale of substantially all of the assets and transfer of certain specified liabilities and obligations of the Company’s Production Technologies segment to Raptor Lift Solutions, LLC (“Raptor Lift”) for $2.9 million in cash consideration, with $0.4 million held back by Raptor Lift to satisfy potential indemnification claims.
On August 16, 2017, the Company completed the sale of substantially all of the remaining assets of the Company’s Drilling Technologies segment to Galleon Mining Tools, Inc. for $1.0 million in cash consideration and a note receivable of $1.0 million due in one year.
The sale or disposal of the assets and transfer or liquidation of liabilities and obligations of these segments was completed in 2017. The Company has no continuing involvement with the discontinued operations.
The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations for the years ended December 31, 2017, 2016, and 2015 (in thousands):
 
Drilling Technologies
 
Production Technologies
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
11,534

 
$
27,627

 
$
52,112

 
$
4,002

 
$
8,292

 
$
12,281

Cost of revenue
(7,309
)
 
(18,667
)
 
(35,410
)
 
(3,236
)
 
(7,881
)
 
(10,179
)
Selling, general and administrative
(6,963
)
 
(15,285
)
 
(21,049
)
 
(1,759
)
 
(3,790
)
 
(4,158
)
Depreciation and amortization
—

 
(1,714
)
 
(3,240
)
 
—

 
(584
)
 
(658
)
Research and development
(5
)
 
(64
)
 
(202
)
 
(364
)
 
(888
)
 
(596
)
Gain (loss) on disposal of long-lived assets
97

 
103

 
17

 
—

 
(50
)
 
3

Impairment of inventory and long-lived assets
—

 
(36,522
)
 
(19,568
)
 
—

 
(3,913
)
 
(804
)
Loss from operations
(2,646
)
 
(44,522
)
 
(27,340
)
 
(1,357
)
 
(8,814
)
 
(4,111
)
Other expense
(96
)
 
(412
)
 
(259
)
 
(52
)
 
(96
)
 
(40
)
Loss on sale of businesses
(1,600
)
 
(1,199
)
 
—

 
(479
)
 
—

 
—

Loss on write-down of assets held for sale
(6,831
)
 
(18,971
)
 
—

 
(9,718
)
 
(6,161
)
 
—

Loss before income taxes
(11,173
)
 
(65,104
)
 
(27,599
)
 
(11,606
)
 
(15,071
)
 
(4,151
)
Income tax benefit
4,138

 
23,661

 
9,675

 
4,299

 
5,477

 
1,455

Net loss from discontinued operations
$
(7,035
)
 
$
(41,443
)
 
$
(17,924
)
 
$
(7,307
)
 
$
(9,594
)
 
$
(2,696
)
The assets and liabilities held for sale on the Consolidated Balance Sheets as of December 31, 2017 and 2016 are as follows (in thousands):
 
Drilling Technologies
 
Production Technologies
 
December 31, 2017
 
December 31, 2016
 
December 31, 2017
 
December 31, 2016
Assets:
 
 
 
 
 
 
 
Accounts receivable, net
$
—

 
$
5,072

 
$
—

 
$
1,784

Inventories
—

 
9,078

 
—

 
8,115

Other current assets
—

 
278

 
—

 
370

Long-term receivable
—

 
—

 
—

 
4,179

Property and equipment, net
—

 
11,277

 
—

 
3,978

Goodwill
—

 
15,333

 
—

 
1,689

Other intangible assets, net
—

 
7,395

 
—

 
484

Assets held for sale
—

 
48,433

 
—

 
20,599

Valuation allowance
—

 
(18,971
)
 
—

 
(6,161
)
Assets held for sale, net
$
—

 
$
29,462

 
$
—

 
$
14,438

Liabilities:
 
 
 
 
 
 
 
Accounts payable
$
—

 
$
2,472

 
$
—

 
$
914

Accrued liabilities
—

 
1,190

 
—

 
385

Liabilities held for sale
$
—

 
$
3,662

 
$
—

 
$
1,299


At December 31, 2017, all remaining assets and liabilities of the discontinued operations were assumed by the Company’s continuing operations. These balances included $0.3 million of net accounts receivable, $1.4 million of sales price hold-back that will be received during 2018, and $1.4 million of accrued liabilities to be settled in 2018.