ois-20200630
000112148412/312020Q2false0.022274800011214842020-01-012020-06-30xbrli:shares00011214842020-07-24iso4217:USD0001121484us-gaap:ProductMember2020-04-012020-06-300001121484us-gaap:ProductMember2019-04-012019-06-300001121484us-gaap:ProductMember2020-01-012020-06-300001121484us-gaap:ProductMember2019-01-012019-06-300001121484us-gaap:ServiceMember2020-04-012020-06-300001121484us-gaap:ServiceMember2019-04-012019-06-300001121484us-gaap:ServiceMember2020-01-012020-06-300001121484us-gaap:ServiceMember2019-01-012019-06-3000011214842020-04-012020-06-3000011214842019-04-012019-06-3000011214842019-01-012019-06-30iso4217:USDxbrli:shares00011214842020-06-3000011214842019-12-310001121484us-gaap:CommonStockMember2020-03-310001121484us-gaap:AdditionalPaidInCapitalMember2020-03-310001121484us-gaap:RetainedEarningsMember2020-03-310001121484us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001121484us-gaap:TreasuryStockMember2020-03-3100011214842020-03-310001121484us-gaap:RetainedEarningsMember2020-04-012020-06-300001121484us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001121484us-gaap:CommonStockMember2020-04-012020-06-300001121484us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001121484us-gaap:TreasuryStockMember2020-04-012020-06-300001121484us-gaap:CommonStockMember2020-06-300001121484us-gaap:AdditionalPaidInCapitalMember2020-06-300001121484us-gaap:RetainedEarningsMember2020-06-300001121484us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001121484us-gaap:TreasuryStockMember2020-06-300001121484us-gaap:CommonStockMember2019-12-310001121484us-gaap:AdditionalPaidInCapitalMember2019-12-310001121484us-gaap:RetainedEarningsMember2019-12-310001121484us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001121484us-gaap:TreasuryStockMember2019-12-310001121484us-gaap:RetainedEarningsMember2020-01-012020-06-300001121484us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300001121484us-gaap:CommonStockMember2020-01-012020-06-300001121484us-gaap:AdditionalPaidInCapitalMember2020-01-012020-06-300001121484us-gaap:TreasuryStockMember2020-01-012020-06-300001121484us-gaap:CommonStockMember2019-03-310001121484us-gaap:AdditionalPaidInCapitalMember2019-03-310001121484us-gaap:RetainedEarningsMember2019-03-310001121484us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310001121484us-gaap:TreasuryStockMember2019-03-3100011214842019-03-310001121484us-gaap:RetainedEarningsMember2019-04-012019-06-300001121484us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001121484us-gaap:CommonStockMember2019-04-012019-06-300001121484us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300001121484us-gaap:TreasuryStockMember2019-04-012019-06-300001121484us-gaap:CommonStockMember2019-06-300001121484us-gaap:AdditionalPaidInCapitalMember2019-06-300001121484us-gaap:RetainedEarningsMember2019-06-300001121484us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001121484us-gaap:TreasuryStockMember2019-06-3000011214842019-06-300001121484us-gaap:CommonStockMember2018-12-310001121484us-gaap:AdditionalPaidInCapitalMember2018-12-310001121484us-gaap:RetainedEarningsMember2018-12-310001121484us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001121484us-gaap:TreasuryStockMember2018-12-3100011214842018-12-310001121484us-gaap:RetainedEarningsMember2019-01-012019-06-300001121484us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-06-300001121484us-gaap:CommonStockMember2019-01-012019-06-300001121484us-gaap:AdditionalPaidInCapitalMember2019-01-012019-06-300001121484us-gaap:TreasuryStockMember2019-01-012019-06-30xbrli:pure0001121484ois:A15ConvertibleUnsecuredSeniorNotesDueFebruary2023Member2020-06-3000011214842020-03-012020-03-31ois:usd_per_barrel0001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesCompletionServicesMember2020-01-012020-03-310001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesDrillingServicesMember2020-01-012020-03-310001121484us-gaap:OperatingSegmentsMemberois:DownholeTechnologiesMember2020-01-012020-03-310001121484us-gaap:OperatingSegmentsMemberois:OffshoreManufacturedProductsMember2020-01-012020-03-3100011214842020-01-012020-03-310001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesCompletionServicesMember2020-04-012020-06-300001121484us-gaap:OperatingSegmentsMemberois:DownholeTechnologiesMember2020-04-012020-06-300001121484us-gaap:OperatingSegmentsMemberois:OffshoreManufacturedProductsMember2020-04-012020-06-300001121484us-gaap:CorporateNonSegmentMember2020-04-012020-06-300001121484srt:MinimumMember2020-01-012020-03-310001121484srt:MaximumMember2020-01-012020-03-310001121484ois:OffshoreManufacturedProductsMember2020-01-012020-03-310001121484ois:TotalWellSiteServicesMemberois:WellSiteServicesDrillingServicesMember2020-01-012020-06-300001121484ois:TotalWellSiteServicesMemberois:WellSiteServicesDrillingServicesMember2020-04-012020-06-300001121484us-gaap:TradeAccountsReceivableMember2020-06-300001121484us-gaap:TradeAccountsReceivableMember2019-12-310001121484ois:UnbilledRevenueMember2020-06-300001121484ois:UnbilledRevenueMember2019-12-310001121484ois:ContractAssetReceivablesMember2020-06-300001121484ois:ContractAssetReceivablesMember2019-12-310001121484ois:OtherReceivablesMember2020-06-300001121484ois:OtherReceivablesMember2019-12-3100011214842019-01-012019-12-310001121484us-gaap:GeographicConcentrationRiskMemberus-gaap:AccountsReceivableMembercountry:US2020-01-012020-06-300001121484us-gaap:GeographicConcentrationRiskMemberus-gaap:AccountsReceivableMembercountry:US2019-01-012019-12-310001121484us-gaap:GeographicConcentrationRiskMembercountry:GBus-gaap:AccountsReceivableMember2020-01-012020-06-300001121484us-gaap:GeographicConcentrationRiskMembercountry:GBus-gaap:AccountsReceivableMember2019-01-012019-12-310001121484country:SGus-gaap:GeographicConcentrationRiskMemberus-gaap:AccountsReceivableMember2020-01-012020-06-300001121484us-gaap:LandMember2020-06-300001121484us-gaap:LandMember2019-12-310001121484us-gaap:BuildingAndBuildingImprovementsMember2020-06-300001121484us-gaap:BuildingAndBuildingImprovementsMember2019-12-310001121484us-gaap:MachineryAndEquipmentMember2020-06-300001121484us-gaap:MachineryAndEquipmentMember2019-12-310001121484ois:CompletionServicesEquipmentMember2020-06-300001121484ois:CompletionServicesEquipmentMember2019-12-310001121484us-gaap:FurnitureAndFixturesMember2020-06-300001121484us-gaap:FurnitureAndFixturesMember2019-12-310001121484us-gaap:VehiclesMember2020-06-300001121484us-gaap:VehiclesMember2019-12-310001121484us-gaap:ConstructionInProgressMember2020-06-300001121484us-gaap:ConstructionInProgressMember2019-12-310001121484ois:TotalWellSiteServicesMemberois:WellSiteServicesCompletionServicesMember2020-01-012020-06-300001121484ois:TotalWellSiteServicesMemberois:WellSiteServicesCompletionServicesMember2019-12-310001121484ois:TotalWellSiteServicesMemberois:WellSiteServicesDrillingServicesMember2019-12-310001121484ois:TotalWellSiteServicesMember2019-12-310001121484ois:DownholeTechnologiesMember2019-12-310001121484ois:OffshoreManufacturedProductsMember2019-12-310001121484ois:TotalWellSiteServicesMember2020-01-012020-06-300001121484ois:DownholeTechnologiesMember2020-01-012020-06-300001121484ois:OffshoreManufacturedProductsMember2020-01-012020-06-300001121484ois:TotalWellSiteServicesMemberois:WellSiteServicesCompletionServicesMember2020-06-300001121484ois:TotalWellSiteServicesMemberois:WellSiteServicesDrillingServicesMember2020-06-300001121484ois:TotalWellSiteServicesMember2020-06-300001121484ois:DownholeTechnologiesMember2020-06-300001121484ois:OffshoreManufacturedProductsMember2020-06-300001121484us-gaap:CustomerRelationshipsMember2020-06-300001121484us-gaap:CustomerRelationshipsMember2019-12-310001121484ois:PatentsTechnologyBasedandKnowhowMember2020-06-300001121484ois:PatentsTechnologyBasedandKnowhowMember2019-12-310001121484us-gaap:NoncompeteAgreementsMember2020-06-300001121484us-gaap:NoncompeteAgreementsMember2019-12-310001121484us-gaap:TradeNamesMember2020-06-300001121484us-gaap:TradeNamesMember2019-12-310001121484ois:A15ConvertibleUnsecuredSeniorNotesDueFebruary2023Member2019-06-300001121484us-gaap:RevolvingCreditFacilityMember2020-06-300001121484us-gaap:RevolvingCreditFacilityMember2019-12-310001121484us-gaap:ConvertibleDebtMember2020-06-300001121484us-gaap:ConvertibleDebtMember2019-12-310001121484us-gaap:UnsecuredDebtMember2020-06-300001121484us-gaap:UnsecuredDebtMember2019-12-310001121484ois:FinanceLeaseObligationsAndOtherDebtMember2020-06-300001121484ois:FinanceLeaseObligationsAndOtherDebtMember2019-12-310001121484us-gaap:ConvertibleDebtMemberois:A15ConvertibleUnsecuredSeniorNotesDueFebruary2023Member2018-01-300001121484us-gaap:ConvertibleDebtMemberois:A15ConvertibleUnsecuredSeniorNotesDueFebruary2023Member2020-06-300001121484us-gaap:ConvertibleDebtMemberois:A15ConvertibleUnsecuredSeniorNotesDueFebruary2023Member2019-12-310001121484us-gaap:LetterOfCreditMember2020-06-300001121484us-gaap:RevolvingCreditFacilityMember2020-06-170001121484us-gaap:RevolvingCreditFacilityMember2020-06-172020-06-170001121484us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2020-01-012020-06-160001121484us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2020-01-012020-06-160001121484us-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2020-01-012020-06-160001121484us-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2020-01-012020-06-160001121484us-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2020-01-012020-06-160001121484us-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2020-01-012020-06-160001121484us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2020-06-172020-06-170001121484us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2020-06-172020-06-170001121484us-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2020-06-172020-06-170001121484us-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMembersrt:MaximumMember2020-06-172020-06-170001121484us-gaap:RevolvingCreditFacilityMember2020-04-012020-06-300001121484us-gaap:RevolvingCreditFacilityMember2020-01-012020-06-300001121484us-gaap:RevolvingCreditFacilityMembercountry:US2020-06-300001121484us-gaap:ConvertibleDebtMemberois:A15ConvertibleUnsecuredSeniorNotesDueFebruary2023Member2020-04-012020-06-300001121484us-gaap:ConvertibleDebtMemberois:A15ConvertibleUnsecuredSeniorNotesDueFebruary2023Member2020-01-012020-06-300001121484us-gaap:ConvertibleDebtMemberois:A15ConvertibleUnsecuredSeniorNotesDueFebruary2023Member2020-01-012020-03-310001121484us-gaap:ConvertibleDebtMemberois:A15ConvertibleUnsecuredSeniorNotesDueFebruary2023Member2019-09-302020-06-300001121484us-gaap:ConvertibleDebtMemberois:A15ConvertibleUnsecuredSeniorNotesDueFebruary2023Member2019-04-012019-06-300001121484us-gaap:ConvertibleDebtMemberois:A15ConvertibleUnsecuredSeniorNotesDueFebruary2023Member2019-01-012019-06-300001121484us-gaap:ConvertibleDebtMemberois:A15ConvertibleUnsecuredSeniorNotesDueFebruary2023Member2018-01-302018-01-30ois:day0001121484us-gaap:UnsecuredDebtMember2018-01-120001121484us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:ConvertibleDebtMemberois:A15ConvertibleUnsecuredSeniorNotesDueFebruary2023Member2020-06-300001121484ois:ShareRepurchaseProgramMember2020-01-012020-06-300001121484ois:ShareRepurchaseProgramMember2020-06-300001121484currency:GBP2020-06-300001121484currency:BRL2020-06-300001121484ois:ServiceBasedRestrictedStockMember2019-12-310001121484ois:PerformanceBasedRestrictedStockMember2019-12-310001121484ois:ServiceBasedRestrictedStockMember2020-01-012020-06-300001121484ois:PerformanceBasedRestrictedStockMember2020-01-012020-06-300001121484ois:ServiceBasedRestrictedStockMember2020-06-300001121484ois:PerformanceBasedRestrictedStockMember2020-06-300001121484srt:MinimumMember2020-03-310001121484srt:MaximumMember2020-03-310001121484srt:MinimumMember2019-03-310001121484srt:MaximumMember2019-03-310001121484ois:CashAwardsMember2020-01-012020-06-30ois:segment0001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesCompletionServicesMember2020-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesDrillingServicesMember2020-04-012020-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesDrillingServicesMember2020-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMember2020-04-012020-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMember2020-06-300001121484us-gaap:OperatingSegmentsMemberois:DownholeTechnologiesMember2020-06-300001121484us-gaap:OperatingSegmentsMemberois:OffshoreManufacturedProductsMember2020-06-300001121484us-gaap:CorporateNonSegmentMember2020-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesCompletionServicesMember2019-04-012019-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesCompletionServicesMember2019-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesDrillingServicesMember2019-04-012019-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesDrillingServicesMember2019-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMember2019-04-012019-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMember2019-06-300001121484us-gaap:OperatingSegmentsMemberois:DownholeTechnologiesMember2019-04-012019-06-300001121484us-gaap:OperatingSegmentsMemberois:DownholeTechnologiesMember2019-06-300001121484us-gaap:OperatingSegmentsMemberois:OffshoreManufacturedProductsMember2019-04-012019-06-300001121484us-gaap:OperatingSegmentsMemberois:OffshoreManufacturedProductsMember2019-06-300001121484us-gaap:CorporateNonSegmentMember2019-04-012019-06-300001121484us-gaap:CorporateNonSegmentMember2019-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesCompletionServicesMember2020-01-012020-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesDrillingServicesMember2020-01-012020-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMember2020-01-012020-06-300001121484us-gaap:OperatingSegmentsMemberois:DownholeTechnologiesMember2020-01-012020-06-300001121484us-gaap:OperatingSegmentsMemberois:OffshoreManufacturedProductsMember2020-01-012020-06-300001121484us-gaap:CorporateNonSegmentMember2020-01-012020-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesCompletionServicesMember2019-01-012019-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMemberois:WellSiteServicesDrillingServicesMember2019-01-012019-06-300001121484us-gaap:OperatingSegmentsMemberois:TotalWellSiteServicesMember2019-01-012019-06-300001121484us-gaap:OperatingSegmentsMemberois:DownholeTechnologiesMember2019-01-012019-06-300001121484us-gaap:OperatingSegmentsMemberois:OffshoreManufacturedProductsMember2019-01-012019-06-300001121484us-gaap:CorporateNonSegmentMember2019-01-012019-06-300001121484ois:TotalWellSiteServicesMemberois:ProjectDrivenProductsMember2020-04-012020-06-300001121484ois:TotalWellSiteServicesMemberois:ProjectDrivenProductsMember2019-04-012019-06-300001121484ois:DownholeTechnologiesMemberois:ProjectDrivenProductsMember2020-04-012020-06-300001121484ois:DownholeTechnologiesMemberois:ProjectDrivenProductsMember2019-04-012019-06-300001121484ois:OffshoreManufacturedProductsMemberois:ProjectDrivenProductsMember2020-04-012020-06-300001121484ois:OffshoreManufacturedProductsMemberois:ProjectDrivenProductsMember2019-04-012019-06-300001121484ois:ProjectDrivenProductsMember2020-04-012020-06-300001121484ois:ProjectDrivenProductsMember2019-04-012019-06-300001121484ois:TotalWellSiteServicesMemberois:ShortCycleCompletionProductsandServicesMember2020-04-012020-06-300001121484ois:TotalWellSiteServicesMemberois:ShortCycleCompletionProductsandServicesMember2019-04-012019-06-300001121484ois:DownholeTechnologiesMemberois:ShortCycleCompletionProductsandServicesMember2020-04-012020-06-300001121484ois:DownholeTechnologiesMemberois:ShortCycleCompletionProductsandServicesMember2019-04-012019-06-300001121484ois:OffshoreManufacturedProductsMemberois:ShortCycleCompletionProductsandServicesMember2020-04-012020-06-300001121484ois:OffshoreManufacturedProductsMemberois:ShortCycleCompletionProductsandServicesMember2019-04-012019-06-300001121484ois:ShortCycleCompletionProductsandServicesMember2020-04-012020-06-300001121484ois:ShortCycleCompletionProductsandServicesMember2019-04-012019-06-300001121484ois:ShortCycleDrillingServicesMemberois:TotalWellSiteServicesMember2020-04-012020-06-300001121484ois:ShortCycleDrillingServicesMemberois:TotalWellSiteServicesMember2019-04-012019-06-300001121484ois:DownholeTechnologiesMemberois:ShortCycleDrillingServicesMember2020-04-012020-06-300001121484ois:DownholeTechnologiesMemberois:ShortCycleDrillingServicesMember2019-04-012019-06-300001121484ois:ShortCycleDrillingServicesMemberois:OffshoreManufacturedProductsMember2020-04-012020-06-300001121484ois:ShortCycleDrillingServicesMemberois:OffshoreManufacturedProductsMember2019-04-012019-06-300001121484ois:ShortCycleDrillingServicesMember2020-04-012020-06-300001121484ois:ShortCycleDrillingServicesMember2019-04-012019-06-300001121484ois:ShortCycleOtherProductsMemberois:TotalWellSiteServicesMember2020-04-012020-06-300001121484ois:ShortCycleOtherProductsMemberois:TotalWellSiteServicesMember2019-04-012019-06-300001121484ois:ShortCycleOtherProductsMemberois:DownholeTechnologiesMember2020-04-012020-06-300001121484ois:ShortCycleOtherProductsMemberois:DownholeTechnologiesMember2019-04-012019-06-300001121484ois:ShortCycleOtherProductsMemberois:OffshoreManufacturedProductsMember2020-04-012020-06-300001121484ois:ShortCycleOtherProductsMemberois:OffshoreManufacturedProductsMember2019-04-012019-06-300001121484ois:ShortCycleOtherProductsMember2020-04-012020-06-300001121484ois:ShortCycleOtherProductsMember2019-04-012019-06-300001121484ois:TotalWellSiteServicesMemberois:ShortCycleProductsMember2020-04-012020-06-300001121484ois:TotalWellSiteServicesMemberois:ShortCycleProductsMember2019-04-012019-06-300001121484ois:DownholeTechnologiesMemberois:ShortCycleProductsMember2020-04-012020-06-300001121484ois:DownholeTechnologiesMemberois:ShortCycleProductsMember2019-04-012019-06-300001121484ois:OffshoreManufacturedProductsMemberois:ShortCycleProductsMember2020-04-012020-06-300001121484ois:OffshoreManufacturedProductsMemberois:ShortCycleProductsMember2019-04-012019-06-300001121484ois:ShortCycleProductsMember2020-04-012020-06-300001121484ois:ShortCycleProductsMember2019-04-012019-06-300001121484ois:TotalWellSiteServicesMemberois:OtherProductsAndServicesMember2020-04-012020-06-300001121484ois:TotalWellSiteServicesMemberois:OtherProductsAndServicesMember2019-04-012019-06-300001121484ois:DownholeTechnologiesMemberois:OtherProductsAndServicesMember2020-04-012020-06-300001121484ois:DownholeTechnologiesMemberois:OtherProductsAndServicesMember2019-04-012019-06-300001121484ois:OtherProductsAndServicesMemberois:OffshoreManufacturedProductsMember2020-04-012020-06-300001121484ois:OtherProductsAndServicesMemberois:OffshoreManufacturedProductsMember2019-04-012019-06-300001121484ois:OtherProductsAndServicesMember2020-04-012020-06-300001121484ois:OtherProductsAndServicesMember2019-04-012019-06-300001121484ois:TotalWellSiteServicesMember2020-04-012020-06-300001121484ois:TotalWellSiteServicesMember2019-04-012019-06-300001121484ois:DownholeTechnologiesMember2020-04-012020-06-300001121484ois:DownholeTechnologiesMember2019-04-012019-06-300001121484ois:OffshoreManufacturedProductsMember2020-04-012020-06-300001121484ois:OffshoreManufacturedProductsMember2019-04-012019-06-300001121484ois:TotalWellSiteServicesMemberois:ProjectDrivenProductsMember2020-01-012020-06-300001121484ois:TotalWellSiteServicesMemberois:ProjectDrivenProductsMember2019-01-012019-06-300001121484ois:DownholeTechnologiesMemberois:ProjectDrivenProductsMember2020-01-012020-06-300001121484ois:DownholeTechnologiesMemberois:ProjectDrivenProductsMember2019-01-012019-06-300001121484ois:OffshoreManufacturedProductsMemberois:ProjectDrivenProductsMember2020-01-012020-06-300001121484ois:OffshoreManufacturedProductsMemberois:ProjectDrivenProductsMember2019-01-012019-06-300001121484ois:ProjectDrivenProductsMember2020-01-012020-06-300001121484ois:ProjectDrivenProductsMember2019-01-012019-06-300001121484ois:TotalWellSiteServicesMemberois:ShortCycleCompletionProductsandServicesMember2020-01-012020-06-300001121484ois:TotalWellSiteServicesMemberois:ShortCycleCompletionProductsandServicesMember2019-01-012019-06-300001121484ois:DownholeTechnologiesMemberois:ShortCycleCompletionProductsandServicesMember2020-01-012020-06-300001121484ois:DownholeTechnologiesMemberois:ShortCycleCompletionProductsandServicesMember2019-01-012019-06-300001121484ois:OffshoreManufacturedProductsMemberois:ShortCycleCompletionProductsandServicesMember2020-01-012020-06-300001121484ois:OffshoreManufacturedProductsMemberois:ShortCycleCompletionProductsandServicesMember2019-01-012019-06-300001121484ois:ShortCycleCompletionProductsandServicesMember2020-01-012020-06-300001121484ois:ShortCycleCompletionProductsandServicesMember2019-01-012019-06-300001121484ois:ShortCycleDrillingServicesMemberois:TotalWellSiteServicesMember2020-01-012020-06-300001121484ois:ShortCycleDrillingServicesMemberois:TotalWellSiteServicesMember2019-01-012019-06-300001121484ois:DownholeTechnologiesMemberois:ShortCycleDrillingServicesMember2020-01-012020-06-300001121484ois:DownholeTechnologiesMemberois:ShortCycleDrillingServicesMember2019-01-012019-06-300001121484ois:ShortCycleDrillingServicesMemberois:OffshoreManufacturedProductsMember2020-01-012020-06-300001121484ois:ShortCycleDrillingServicesMemberois:OffshoreManufacturedProductsMember2019-01-012019-06-300001121484ois:ShortCycleDrillingServicesMember2020-01-012020-06-300001121484ois:ShortCycleDrillingServicesMember2019-01-012019-06-300001121484ois:ShortCycleOtherProductsMemberois:TotalWellSiteServicesMember2020-01-012020-06-300001121484ois:ShortCycleOtherProductsMemberois:TotalWellSiteServicesMember2019-01-012019-06-300001121484ois:ShortCycleOtherProductsMemberois:DownholeTechnologiesMember2020-01-012020-06-300001121484ois:ShortCycleOtherProductsMemberois:DownholeTechnologiesMember2019-01-012019-06-300001121484ois:ShortCycleOtherProductsMemberois:OffshoreManufacturedProductsMember2020-01-012020-06-300001121484ois:ShortCycleOtherProductsMemberois:OffshoreManufacturedProductsMember2019-01-012019-06-300001121484ois:ShortCycleOtherProductsMember2020-01-012020-06-300001121484ois:ShortCycleOtherProductsMember2019-01-012019-06-300001121484ois:TotalWellSiteServicesMemberois:ShortCycleProductsMember2020-01-012020-06-300001121484ois:TotalWellSiteServicesMemberois:ShortCycleProductsMember2019-01-012019-06-300001121484ois:DownholeTechnologiesMemberois:ShortCycleProductsMember2020-01-012020-06-300001121484ois:DownholeTechnologiesMemberois:ShortCycleProductsMember2019-01-012019-06-300001121484ois:OffshoreManufacturedProductsMemberois:ShortCycleProductsMember2020-01-012020-06-300001121484ois:OffshoreManufacturedProductsMemberois:ShortCycleProductsMember2019-01-012019-06-300001121484ois:ShortCycleProductsMember2020-01-012020-06-300001121484ois:ShortCycleProductsMember2019-01-012019-06-300001121484ois:TotalWellSiteServicesMemberois:OtherProductsAndServicesMember2020-01-012020-06-300001121484ois:TotalWellSiteServicesMemberois:OtherProductsAndServicesMember2019-01-012019-06-300001121484ois:DownholeTechnologiesMemberois:OtherProductsAndServicesMember2020-01-012020-06-300001121484ois:DownholeTechnologiesMemberois:OtherProductsAndServicesMember2019-01-012019-06-300001121484ois:OtherProductsAndServicesMemberois:OffshoreManufacturedProductsMember2020-01-012020-06-300001121484ois:OtherProductsAndServicesMemberois:OffshoreManufacturedProductsMember2019-01-012019-06-300001121484ois:OtherProductsAndServicesMember2020-01-012020-06-300001121484ois:OtherProductsAndServicesMember2019-01-012019-06-300001121484ois:TotalWellSiteServicesMember2019-01-012019-06-300001121484ois:DownholeTechnologiesMember2019-01-012019-06-300001121484ois:OffshoreManufacturedProductsMember2019-01-012019-06-300001121484us-gaap:TransferredOverTimeMember2020-01-012020-06-300001121484us-gaap:TransferredOverTimeMember2019-01-012019-06-300001121484ois:RentExpenseMembersrt:AffiliatedEntityMember2020-01-012020-03-310001121484ois:RentExpenseMembersrt:AffiliatedEntityMember2019-04-012019-06-300001121484ois:RentExpenseMembersrt:AffiliatedEntityMember2019-01-012019-06-300001121484srt:AffiliatedEntityMember2020-01-012020-03-310001121484srt:AffiliatedEntityMember2019-04-012019-06-300001121484srt:AffiliatedEntityMember2019-01-012019-06-30
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020

OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____

Commission file number: 001-16337

OIL STATES INTERNATIONAL, INC.
______________
(Exact name of registrant as specified in its charter)
Delaware76-0476605
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification No.)
Three Allen Center, 333 Clay Street
Suite 462077002
Houston, Texas(Zip Code)
(Address of principal executive offices)
(713) 652-0582
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareOISNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
YesNo
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
YesNo
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes No
As of July 24, 2020, the number of shares of common stock outstanding was 61,030,628.



OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
INDEX
 Page No.
Part I – FINANCIAL INFORMATION 
  
Item 1. Financial Statements: 
  
Condensed Consolidated Financial Statements 
Unaudited Consolidated Statements of Operations
Unaudited Consolidated Statements of Comprehensive Loss
Consolidated Balance Sheets
Unaudited Consolidated Statements of Stockholders' Equity
Unaudited Consolidated Statements of Cash Flows
Notes to Unaudited Condensed Consolidated Financial Statements
  
Cautionary Statement Regarding Forward-Looking Statements
  
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
  
Item 3. Quantitative and Qualitative Disclosures About Market Risk
  
Item 4. Controls and Procedures
  
Part II – OTHER INFORMATION 
  
Item 1. Legal Proceedings
  
Item 1A. Risk Factors
  
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
Item 3. Defaults Upon Senior Securities
  
Item 4. Mine Safety Disclosures
  
Item 5. Other Information
  
Item 6. Exhibits
  
Signature Page
2


PART I – FINANCIAL INFORMATION
ITEM 1. Financial Statements
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Revenues:
Products$82,643  $124,965  $185,623  $241,293  
Services63,602  139,720  180,316  274,003  
146,245  264,685  365,939  515,296  
Costs and expenses:
Product costs68,088  95,289  157,834  184,557  
Service costs59,995  112,823  167,851  223,433  
Cost of revenues (exclusive of depreciation and amortization expense presented below)128,083  208,112  325,685  407,990  
Selling, general and administrative expense23,992  31,484  50,116  61,592  
Depreciation and amortization expense24,646  31,883  51,055  63,434  
Impairments of goodwill    406,056    
Impairments of fixed assets2,992    8,190    
Other operating income, net(134) (399) (27) (485) 
179,579  271,080  841,075  532,531  
Operating loss(33,334) (6,395) (475,136) (17,235) 
Interest expense, net(4,179) (4,617) (7,683) (9,369) 
Other income, net5,994  1,009  6,768  1,676  
Loss before income taxes(31,519) (10,003) (476,051) (24,928) 
Income tax benefit6,893  263  46,384  540  
Net loss$(24,626) $(9,740) $(429,667) $(24,388) 
Net loss per share:
Basic$(0.41) $(0.16) $(7.19) $(0.41) 
Diluted(0.41) (0.16) (7.19) (0.41) 
Weighted average number of common shares outstanding:
Basic59,839  59,406  59,747  59,332  
Diluted59,839  59,406  59,747  59,332  
The accompanying notes are an integral part of these financial statements.
3


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In Thousands)
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Net loss$(24,626) $(9,740) $(429,667) $(24,388) 
Other comprehensive income (loss):
Currency translation adjustments(1,230) (2,329) (16,021) 137  
Comprehensive loss$(25,856) $(12,069) $(445,688) $(24,251) 
The accompanying notes are an integral part of these financial statements.
4


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Amounts)
June 30,
2020
December 31, 2019
(Unaudited) 
ASSETS
Current assets:
Cash and cash equivalents$53,819  $8,493  
Accounts receivable, net168,778  233,487  
Inventories, net198,276  221,342  
Income taxes receivable44,986  2,568  
Prepaid expenses and other current assets12,533  17,539  
Total current assets478,392  483,429  
Property, plant, and equipment, net409,148  459,724  
Operating lease assets, net38,297  43,616  
Goodwill, net75,746  482,306  
Other intangible assets, net217,854  230,091  
Other noncurrent assets27,446  28,701  
Total assets$1,246,883  $1,727,867  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt$25,626  $25,617  
Accounts payable52,160  78,368  
Accrued liabilities40,823  48,840  
Current operating lease liabilities8,091  8,311  
Income taxes payable3,606  4,174  
Deferred revenue23,583  17,761  
Total current liabilities153,889  183,071  
Long-term debt229,490  222,552  
Long-term operating lease liabilities31,502  35,777  
Deferred income taxes31,796  38,079  
Other noncurrent liabilities21,337  24,421  
Total liabilities468,014  503,900  
Stockholders' equity:
Common stock, $.01 par value, 200,000,000 shares authorized, 73,300,443 shares and 72,546,321 shares issued, respectively
733  726  
Additional paid-in capital1,117,771  1,114,521  
Retained earnings368,043  797,710  
Accumulated other comprehensive loss(83,767) (67,746) 
Treasury stock, at cost, 12,268,691 and 12,045,065 shares, respectively
(623,911) (621,244) 
Total stockholders' equity778,869  1,223,967  
Total liabilities and stockholders' equity$1,246,883  $1,727,867  
The accompanying notes are an integral part of these financial statements.
5


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In Thousands)
Three Months Ended June 30, 2020Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Stockholders'
Equity
Balance, March 31, 2020$732  $1,115,677  $392,669  $(82,537) $(623,909) $802,632  
Net loss—  —  (24,626) —  —  (24,626) 
Currency translation adjustments (excluding intercompany advances)—  —  —  (788) —  (788) 
Currency translation adjustments on intercompany advances—  —  —  (442) —  (442) 
Stock-based compensation expense:
Restricted stock1  2,094  —  —  —  2,095  
Surrender of stock to settle taxes on restricted stock awards—  —  —  —  (2) (2) 
Balance, June 30, 2020$733  $1,117,771  $368,043  $(83,767) $(623,911) $778,869  

Six Months Ended June 30, 2020Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Stockholders'
Equity
Balance, December 31, 2019$726  $1,114,521  $797,710  $(67,746) $(621,244) $1,223,967  
Net loss—  —  (429,667) —  —  (429,667) 
Currency translation adjustments (excluding intercompany advances)—  —  —  (6,873) —  (6,873) 
Currency translation adjustments on intercompany advances—  —  —  (9,148) —  (9,148) 
Stock-based compensation expense:
Restricted stock7  3,250  —  —  —  3,257  
Surrender of stock to settle taxes on restricted stock awards—  —  —  —  (2,667) (2,667) 
Balance, June 30, 2020$733  $1,117,771  $368,043  $(83,767) $(623,911) $778,869  
The accompanying notes are an integral part of these financial statements.
6


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In Thousands)
Three Months Ended June 30, 2019Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive LossTreasury StockTotal Stockholders' Equity
Balance, March 31, 2019$725  $1,102,176  $1,014,870  $(68,931) $(621,196) $1,427,644  
Net loss—  —  (9,740) —  —  (9,740) 
Currency translation adjustments (excluding intercompany advances)—  —  —  (2,946) —  (2,946) 
Currency translation adjustments on intercompany advances—  —  —  617  —  617  
Stock-based compensation expense:
Restricted stock1  4,164  —  —  —  4,165  
Stock options—  —  —  —  —    
Stock repurchases—  —  —  —  —    
Surrender of stock to settle taxes on restricted stock awards—  —  —  —  (12) (12) 
Balance, June 30, 2019$726  $1,106,340  $1,005,130  $(71,260) $(621,208) $1,419,728  

Six Months Ended June 30, 2019Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive LossTreasury StockTotal Stockholders' Equity
Balance, December 31, 2018$718  $1,097,758  $1,029,518  $(71,397) $(616,829) $1,439,768  
Net loss—  —  (24,388) —  —  (24,388) 
Currency translation adjustments (excluding intercompany advances)—  —  —  (393) —  (393) 
Currency translation adjustments on intercompany advances—  —  —  530  —  530  
Stock-based compensation expense:
Restricted stock8  8,529  —  —  —  8,537  
Stock options—  53  —  —  —  53  
Stock repurchases—  —  —  —  (757) (757) 
Surrender of stock to settle taxes on restricted stock awards—  —  —  —  (3,622) (3,622) 
Balance, June 30, 2019$726  $1,106,340  $1,005,130  $(71,260) $(621,208) $1,419,728  
The accompanying notes are an integral part of these financial statements.
7


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Six Months Ended June 30,
20202019
Cash flows from operating activities:
Net loss$(429,667) $(24,388) 
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense51,055  63,434  
Impairments of goodwill406,056    
Impairments of inventories25,230    
Impairments of fixed assets8,190    
Stock-based compensation expense3,257  8,590  
Amortization of debt discount and deferred financing costs4,067  3,894  
Deferred income tax benefit(48,738) (3,495) 
Gain on extinguishment of 1.50% convertible senior notes
(4,779)   
Gain on disposals of assets(1,489) (1,245) 
Other, net3,177  141  
Changes in operating assets and liabilities:
Accounts receivable56,062  19,884  
Inventories(4,320) (534) 
Accounts payable and accrued liabilities(34,227) 1,200  
Income taxes payable(635) 943  
Other operating assets and liabilities, net10,892  (2,421) 
Net cash flows provided by operating activities44,131  66,003  
Cash flows from investing activities:
Capital expenditures(8,915) (31,577) 
Proceeds from disposition of property, plant and equipment5,418  2,151  
Other, net(301) (1,459) 
Net cash flows used in investing activities(3,798) (30,885) 
Cash flows from financing activities:
Revolving credit facility borrowings72,173  119,252  
Revolving credit facility repayments(53,104) (156,208) 
Purchases of 1.50% convertible senior notes
(10,595)   
Other debt and finance lease repayments, net(165) (301) 
Payment of financing costs(651) (8) 
Shares added to treasury stock as a result of net share settlements
due to vesting of stock awards
(2,667) (3,622) 
Purchase of treasury stock  (757) 
Net cash flows provided by (used in) financing activities4,991  (41,644) 
Effect of exchange rate changes on cash and cash equivalents2  (384) 
Net change in cash and cash equivalents45,326  (6,910) 
Cash and cash equivalents, beginning of period8,493  19,316  
Cash and cash equivalents, end of period$53,819  $12,406  
Cash paid for:
Interest$3,486  $5,285  
Income taxes, net of refunds2,888  2,002  
The accompanying notes are an integral part of these financial statements.
8

 
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
 
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

1. Organization and Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of Oil States International, Inc. and its subsidiaries (referred to in this report as "we" or the "Company") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "Commission") pertaining to interim financial information. Certain information in footnote disclosures normally included with financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to these rules and regulations. The unaudited financial statements included in this report reflect all the adjustments, consisting of normal recurring adjustments, which the Company considers necessary for a fair statement of the results of operations for the interim periods covered and for the financial condition of the Company at the date of the interim balance sheet. Results for the interim periods are not necessarily indicative of results for the full year. Certain prior-year amounts in the Company's unaudited condensed consolidated financial statements have been reclassified to conform to the current year presentation.
As further discussed in Note 13, "Commitments and Contingencies," the impact of the Coronavirus Disease 2019 ("COVID-19") pandemic and the related economic, business and market disruptions continues to evolve and its future effects remain uncertain. The actual impact of these recent developments on the Company will depend on many factors, many of which are beyond management's control and knowledge. It is therefore difficult for management to assess or predict with precision the broad future effect of this health crisis on the global economy, the energy industry or the Company. During the first and second quarters of 2020, the Company recorded asset impairments and recorded severance and facility closure charges in response to these recent developments, as further discussed in Note 3, "Asset Impairments and Other Charges." As additional information becomes available, events or circumstances change and strategic operational decisions are made by management, further adjustments may be required which could have a material adverse impact on the Company's consolidated financial position, results of operations and cash flows.
The preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of such estimates include, but are not limited to, goodwill and other asset impairments, revenue and income recognized over time, valuation allowances recorded on deferred tax assets, reserves on inventory, allowances for doubtful accounts, and potential future adjustments related to contractual indemnification and other agreements. Actual results could materially differ from those estimates.
The financial statements included in this report should be read in conjunction with the Company's audited financial statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2019.
2. Recent Accounting Pronouncements
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the "FASB"), which are adopted by the Company as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company's consolidated financial statements upon adoption.
In June 2016, the FASB issued guidance on credit impairment for short-term receivables which, as amended, introduces the recognition of management's current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The Company adopted this guidance on January 1, 2020, using the optional transition method of recognizing any cumulative effect of adopting this guidance as an adjustment to the opening balance of retained earnings. The cumulative impact of the adoption of the new standard was not material to the Company's consolidated financial statements. Prior periods were not retrospectively adjusted.
9

 
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
 
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
3. Asset Impairments and Other Charges
In March of 2020, the spot price of West Texas Intermediate ("WTI") crude oil declined over 50% in response to current and expected material reductions in global demand due to the global response to the COVID-19 pandemic, coupled with announcements by Saudi Arabia and Russia of plans to increase crude oil production. Following this unprecedented collapse in crude oil prices, the spot price of Brent and WTI crude oil closed at $15 and $21 per barrel, respectively, on March 31, 2020. Crude oil prices further declined in April of 2020 to record low levels, and while crude oil prices have increased to some extent since that time, they remain at depressed levels.
Demand for most of the Company's products and services depends substantially on the level of capital expenditures by the oil and natural gas industry. This decline in oil prices has, and is expected to continue to, result in further near-term reductions to most of the Company's customers' drilling, completion and production activities and their related spending on products and services, particularly in the U.S. shale play regions. These conditions may also result in a material adverse impact on certain customers' liquidity and financial position, leading to further spending reductions, delays in the collection of amounts owed and in certain instances, non-payment of amounts owed.
Consistent with oilfield service industry peers, the Company's stock price declined dramatically during the first quarter of 2020, with its market capitalization falling substantially below the carrying value of stockholders' equity.
Following these March 2020 events, the Company immediately implemented significant cost reduction initiatives. The Company also assessed the carrying value of goodwill, long-lived and other assets based on the industry outlook regarding overall demand for and pricing of its products and services, other market considerations and the financial condition of the Company's customers. As a result of these events, actions and assessments, the Company recorded the following charges during the first quarter of 2020 (in thousands):
Completion ServicesDrilling ServicesDownhole TechnologiesOffshore/
Manufactured Products
Pre-tax TotalTaxAfter-tax Total
Impairments of goodwill$127,054  $  $192,502  $86,500  $406,056  $19,600  $386,456  
Impairments of fixed assets  5,198      5,198  1,092  4,106  
Impairments of inventories (Note 4)
8,981      16,249  25,230  4,736  20,494  
Severance and facility closure costs331  217    112  660  139  521  
The Company further reduced its workforce and closed additional facilities in the United States during the second quarter of 2020, and recorded the following charges (in thousands):
Completion ServicesDownhole TechnologiesOffshore/ Manufactured ProductsCorporatePre-tax TotalTaxAfter-tax Total
Impairments of fixed assets$2,992  $  $  $  $2,992  $628  $2,364  
Severance and facility closure costs3,544  1,315  322  216  5,397  1,133  4,264  
Goodwill
The Company has three reporting units – Completion Services, Downhole Technologies and Offshore/Manufactured Products – with goodwill balances totaling $482.3 million as of December 31, 2019. Goodwill is allocated to each reporting unit from acquisitions made by the Company. In accordance with current accounting guidance, the Company does not amortize goodwill, but rather assesses goodwill for impairment annually and when an event occurs or circumstances change that indicate the carrying amounts may not be recoverable. If the carrying amount of a reporting unit exceeds its fair value, goodwill is considered impaired and an impairment loss is recorded. Given the significance of the March 2020 events described above, the Company performed a quantitative assessment of goodwill for impairment as of March 31, 2020. This interim assessment indicated that the fair value of each of the reporting units was less than their respective carrying amounts.
10

 
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
 
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Management utilizes, depending on circumstances, a combination of valuation methodologies including a market approach and an income approach, as well as guideline public company comparables. The valuation techniques used in the March 31, 2020 assessment were consistent with those used during the December 1, 2019 assessment, except for the Completion Services reporting unit where the income approach was used to estimate its fair value – with the market approach used only to validate the results in 2020. The fair values of each of the Company's reporting units were determined using significant unobservable inputs (Level 3 fair value measurements). This approach estimates fair value by discounting the Company's forecasts of future cash flows by a discount rate (expected return) that a market participant is expected to require.
Significant assumptions and estimates used in the income approach include, among others, estimated future net annual cash flows and discount rates for each reporting unit, current and anticipated market conditions, estimated growth rates and historical data. These estimates rely upon significant management judgment, particularly given the continued uncertainties regarding the COVID-19 pandemic and its impact on activity levels and commodity prices as well as future global economic growth.
Based on this quantitative assessment as of March 31, 2020, the Company concluded that goodwill recorded in the Completion Services and Downhole Technologies businesses was fully impaired while goodwill recorded in the Offshore/Manufactured Products business was partially impaired. The Company therefore recognized non-cash goodwill impairment charges totaling $406.1 million in the first quarter of 2020. These impairment charges did not impact the Company's liquidity position, debt covenants or cash flows.
The discount rates used to value the Company's reporting units as of March 31, 2020 ranged between 16.8% and 18.5%. Holding all other assumptions and inputs used in the discounted cash flow analysis constant, a 50 basis point increase in the discount rate assumption for the Offshore/Manufactured Products reporting unit would have increased the goodwill impairment charge by approximately $10 million.
A summary of changes in the carrying values of goodwill by reporting unit in the first six months of 2020 is presented in Note 4, "Details of Selected Balance Sheet Accounts."
Long-lived Assets
The Company also assesses the carrying value of long-lived assets, including property, plant and equipment, operating lease assets and other intangible assets held by each of its four reporting units. As a result of the March 2020 assessment, the Company concluded that property and equipment held by the Drilling Services reporting unit was further impaired and recognized a non-cash fixed asset impairment charge of $5.2 million in the first quarter of 2020. During the second quarter of 2020, the Company concluded that certain facilities held for sale by the Completion Services reporting unit were impaired and recognized a non-cash fixed asset impairment charge of $3.0 million to reduce the carrying value of the facilities to their estimated realizable value based on the current market environment.
The Company performed a qualitative assessment of goodwill and long-lived assets at June 30, 2020 and concluded that no further impairment evaluation was required. As a result, no other impairments were recorded in the second quarter of 2020.
Should, among other events and circumstances, global economic and industry conditions further deteriorate, the COVID-19 pandemic business and market disruptions worsen, the outlook for future operating results and cash flow for any of the Company's reporting units decline, income tax rates increase or regulations change, costs of equity or debt capital increase, valuations for comparable public companies or comparable acquisition valuations decrease, or management implement strategic decisions based on industry conditions, the Company may need to recognize additional impairment losses in future periods.
11

 
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
 
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
4. Details of Selected Balance Sheet Accounts
Additional information regarding selected balance sheet accounts as of June 30, 2020 and December 31, 2019 is presented below (in thousands):
June 30,
2020
December 31,
2019
Accounts receivable, net:
Trade$128,549  $178,813  
Unbilled revenue20,970  28,341  
Contract assets25,636  26,034