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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________
FORM 10-Q
____________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2021
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 23, 2021, the number of shares of common stock outstanding was 61,373,855.



OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
TABLE OF CONTENTS
 Page
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 Statements23
  
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,
2021202020212020
Revenues:
Products$78,038 $82,643 $139,483 $185,623 
Services67,686 63,602 131,830 180,316 
145,724 146,245 271,313 365,939 
Costs and expenses:
Product costs63,926 68,088 113,389 157,834 
Service costs53,706 59,995 106,553 167,851 
Cost of revenues (exclusive of depreciation and amortization expense presented below)117,632 128,083 219,942 325,685 
Selling, general and administrative expense22,092 23,992 43,317 50,116 
Depreciation and amortization expense20,909 24,646 42,429 51,055 
Impairments of goodwill   406,056 
Impairments of fixed and lease assets2,794 2,992 3,444 8,190 
Other operating income, net(85)(134)(439)(27)
163,342 179,579 308,693 841,075 
Operating loss(17,618)(33,334)(37,380)(475,136)
Interest expense, net(2,699)(4,179)(5,024)(7,683)
Other income, net1,820 5,994 5,780 6,768 
Loss before income taxes(18,497)(31,519)(36,624)(476,051)
Income tax benefit3,226 6,893 5,543 46,384 
Net loss$(15,271)$(24,626)$(31,081)$(429,667)
Net loss per share:
Basic$(0.25)$(0.41)$(0.52)$(7.19)
Diluted(0.25)(0.41)(0.52)(7.19)
Weighted average number of common shares outstanding:
Basic60,317 59,839 60,207 59,747 
Diluted60,317 59,839 60,207 59,747 
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,
2021202020212020
Net loss$(15,271)$(24,626)$(31,081)$(429,667)
Other comprehensive income (loss):
Currency translation adjustments3,160 (1,230)1,631 (16,021)
Comprehensive loss$(12,111)$(25,856)$(29,450)$(445,688)
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,
2021
December 31, 2020
(Unaudited) 
ASSETS
Current assets:
Cash and cash equivalents$62,650 $72,011 
Accounts receivable, net170,424 163,135 
Inventories, net175,049 170,376 
Prepaid expenses and other current assets17,164 18,071 
Total current assets425,287 423,593 
Property, plant, and equipment, net355,405 383,562 
Operating lease assets, net29,093 33,140 
Goodwill, net76,579 76,489 
Other intangible assets, net195,612 205,749 
Other noncurrent assets33,748 29,727 
Total assets$1,115,724 $1,152,260 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt$18,231 $17,778 
Accounts payable55,574 46,433 
Accrued liabilities45,388 44,504 
Current operating lease liabilities7,169 7,620 
Income taxes payable2,769 2,413 
Deferred revenue45,210 43,384 
Total current liabilities174,341 162,132 
Long-term debt160,354 165,759 
Long-term operating lease liabilities28,186 29,166 
Deferred income taxes4,860 14,263 
Other noncurrent liabilities26,049 23,309 
Total liabilities393,790 394,629 
Stockholders' equity:
Common stock, $.01 par value, 200,000,000 shares authorized, 73,908,412 shares and 73,288,976 shares issued, respectively
739 733 
Additional paid-in capital1,101,959 1,122,945 
Retained earnings314,479 329,327 
Accumulated other comprehensive loss(69,754)(71,385)
Treasury stock, at cost, 12,508,964 and 12,283,817 shares, respectively
(625,489)(623,989)
Total stockholders' equity721,934 757,631 
Total liabilities and stockholders' equity$1,115,724 $1,152,260 
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, 2021Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Stockholders'
Equity
Balance, March 31, 2021$738 $1,100,077 $329,750 $(72,914)$(625,489)$732,162 
Net loss— — (15,271)— — (15,271)
Currency translation adjustments (excluding intercompany advances)— — — 556 — 556 
Currency translation adjustments on intercompany advances— — — 2,604 — 2,604 
Stock-based compensation expense:
Restricted stock1 1,882 — — — 1,883 
Surrender of stock to settle taxes on restricted stock awards— — — — —  
Adoption of ASU 2020-06— — — — —  
Balance, June 30, 2021$739 $1,101,959 $314,479 $(69,754)$(625,489)$721,934 

Six Months Ended June 30, 2021Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Stockholders'
Equity
Balance, December 31, 2020$733 $1,122,945 $329,327 $(71,385)$(623,989)$757,631 
Net loss— — (31,081)— — (31,081)
Currency translation adjustments (excluding intercompany advances)— — — 1,624 — 1,624 
Currency translation adjustments on intercompany advances— — — 7 — 7 
Stock-based compensation expense:
Restricted stock6 4,697 — — — 4,703 
Surrender of stock to settle taxes on restricted stock awards— — — — (1,500)(1,500)
Adoption of ASU 2020-06— (25,683)16,233 — — (9,450)
Balance, June 30, 2021$739 $1,101,959 $314,479 $(69,754)$(625,489)$721,934 
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, 2020Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive LossTreasury StockTotal 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)— — — (442)— (442)
Currency translation adjustments on intercompany advances— — — (788)— (788)
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 StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive LossTreasury StockTotal 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)— — — (9,148)— (9,148)
Currency translation adjustments on intercompany advances— — — (6,873)— (6,873)
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.
7


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Six Months Ended June 30,
20212020
Cash flows from operating activities:
Net loss$(31,081)$(429,667)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense42,429 51,055 
Impairments of goodwill 406,056 
Impairments of inventories 25,230 
Impairments of fixed and lease assets3,444 8,190 
Stock-based compensation expense4,703 3,257 
Amortization of debt discount and deferred financing costs1,366 4,067 
Deferred income tax benefit(6,834)(48,738)
Gains on extinguishment of 1.50% convertible senior notes
(4,022)(4,779)
Gains on disposals of assets(1,632)(1,489)
Other, net375 3,177 
Changes in operating assets and liabilities:
Accounts receivable(6,962)56,062 
Inventories(4,458)(4,320)
Accounts payable and accrued liabilities11,896 (34,227)
Deferred revenue1,780 5,991 
Other operating assets and liabilities, net2,929 4,266 
Net cash flows provided by operating activities13,933 44,131 
Cash flows from investing activities:
Capital expenditures(7,311)(8,915)
Proceeds from disposition of property and equipment3,422 5,418 
Other, net(326)(301)
Net cash flows used in investing activities(4,215)(3,798)
Cash flows from financing activities:
Revolving credit facility borrowings12,571 72,173 
Revolving credit facility repayments(31,571)(53,104)
Issuance of 4.75% convertible senior notes
135,000  
Purchases of 1.50% convertible senior notes
(125,952)(10,595)
Other debt and finance lease activity, net119 (165)
Payment of financing costs(7,779)(651)
Shares added to treasury stock as a result of net share settlements
due to vesting of stock awards
(1,500)(2,667)
Net cash flows provided by (used in) financing activities(19,112)4,991 
Effect of exchange rate changes on cash and cash equivalents33 2 
Net change in cash and cash equivalents(9,361)45,326 
Cash and cash equivalents, beginning of period72,011 8,493 
Cash and cash equivalents, end of period$62,650 $53,819 
Cash paid for:
Interest$2,256 $3,486 
Income taxes, net 920 2,888 
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 developments on the Company will depend on numerous 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 2020 and the first half of 2021, the Company recorded asset impairments, severance and restructuring charges in response to these developments as further discussed in Note 3, "Asset Impairments and Other Restructuring Items." 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 long-lived asset impairments, revenue and income recognized over time, valuation allowances recorded on deferred tax assets, reserves on inventory, allowances for doubtful accounts, settlement of litigation 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, 2020.
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 August 2020, the FASB issued updated guidance to simplify the accounting for convertible instruments and contracts in an entity's own equity (referred to as "ASU 2020-06"). This guidance eliminated the requirement that the carrying value of convertible debt instruments, such as the Company's 1.50% convertible senior notes due 2023 (the "2023 Notes"), be allocated between debt and equity components. As permitted under the standard, the Company adopted the guidance on January 1, 2021, using the modified retrospective transition method. Adoption of the standard resulted in a $12.2 million increase in the net carrying value of the 2023 Notes, a $2.7 million decrease in deferred income taxes and an $9.5 million net decrease in stockholders' equity. The effective interest rate associated with the 2023 Notes after adoption decreased from approximately 6% to approximately 2%, which compares to the contractual interest rate of 1.50%. As further discussed in Note 6, "Long-term Debt," the Company issued $135 million principal amount of its 4.75% convertible senior notes due 2026 (the "2026 Notes") on March 19, 2021, which have been accounted for in accordance with the provisions of ASU 2020-06.
9

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
3.    Asset Impairments and Other Restructuring Items
In March of 2020, the spot price of West Texas Intermediate ("WTI") crude oil declined over 50% in response to actual and forecasted reductions in global demand for crude oil due to the COVID-19 pandemic, coupled with announcements by Saudi Arabia and Russia of plans to increase crude oil production. 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, and these conditions caused rapid reductions to most of the Company's customers' drilling, completion and production activities and their related spending on products and services, particularly those supporting activities in the U.S. shale play regions. While the prices of and demand for crude oil have increased significantly since reaching record low levels in April 2020, with crude oil inventory levels moderating, uncertainty remains regarding the timing of demand recovery to pre-COVID-19 levels. These conditions have and may continue to result in adverse impacts 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.
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):
Offshore/
Manufactured Products
Downhole TechnologiesWell Site ServicesCorporatePre-tax TotalTaxAfter-tax Total
First quarter 2020
Impairments of:
Goodwill
$86,500 $192,502 $127,054 $ $406,056 $19,600 $386,456 
Fixed assets  5,198  5,198 1,092 4,106 
Inventories (Note 4)
16,249  8,981  25,230 4,736 20,494 
Severance and restructuring costs112  548  660 139 521 
The Company further reduced its workforce and closed additional facilities in the United States during the second quarter of 2020, and recorded the following charges (in thousands):
Offshore/ Manufactured ProductsDownhole TechnologiesWell Site ServicesCorporatePre-tax TotalTaxAfter-tax Total
Second quarter 2020
Impairments of fixed assets$ $ $2,992 $ $2,992 $628 $2,364 
Severance and restructuring costs322 1,315 3,544 216 5,397 1,133 4,264 
During the first and second quarters of 2021, the Company continued its restructuring efforts, closed additional facilities in the United States and continued to assess the carrying value of its assets based on the industry outlook regarding demand for and pricing of its products and services, and recorded the following charges (in thousands):
Offshore/ Manufactured ProductsDownhole TechnologiesWell Site ServicesCorporatePre-tax TotalTaxAfter-tax Total
First quarter 2021
Impairments of fixed assets$ $ $650 $ $650 $137 $513 
Severance and restructuring costs282 275 1,306 1,555 3,418 717 2,701 
Second quarter 2021
Impairment of operating lease assets$ $ $2,794 $ $2,794 $587 $2,207 
Restructuring costs(1)
 203 2,351  2,554 536 2,018 
____________________
(1)Includes recognition of $1.9 million in additional lease-related liabilities associated with the exit of a long-term lease supporting the Well Site Services segment.
10

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Additionally, during the three and six months ended June 30, 2021, the Company recognized $2.8 million and $7.6 million, respectively, in aggregate reductions to payroll tax expense (within cost of revenues and selling, general and administrative expense) as part of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") employee retention credit program. The Company continues to evaluate any and all benefits potentially available to it under the CARES Act.
Goodwill
Goodwill is allocated to each reporting unit based on acquisitions made by the Company and is assessed 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. The Company had three reporting units – Offshore/Manufactured Products, Downhole Technologies and Well Site Services – whose goodwill balances totaled $482.3 million as of December 31, 2019. 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 due to, among other factors, the significant decline in the Company's stock price (and that of its peers) and reduced growth rate expectations given weak energy market conditions resulting from the demand destruction caused by the global response to the COVID-19 pandemic. In addition, the estimated returns required by market participants increased materially in the Company's March 31, 2020 assessment from the assessment performed as of December 1, 2019, resulting in higher discount rates used in the discounted cash flow analysis.
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 fair values of the Company's reporting units were determined using significant unobservable inputs (Level 3 fair value measurements).
Based on this quantitative assessment as of March 31, 2020, the Company concluded that goodwill recorded in the Downhole Technologies and Well Site Services segments was fully impaired while goodwill recorded in the Offshore/Manufactured Products segment was partially impaired. The Company therefore recognized non-cash goodwill impairment charges totaling $406.1 million in the first quarter of 2020, as presented in further detail in the table above.
The Company performed its annual quantitative assessment of goodwill as of December 1, 2020, which indicated that the fair value of the Offshore/Manufactured Products segment was greater than its carrying amount and no additional provision for impairment was required. The Company's remaining goodwill within the segment totaled approximately $76.5 million as of June 30, 2021 and December 31, 2020.
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 segments (reporting units). As a result of the March 2020 assessment, the Company concluded that certain drilling-related property and equipment held by the Well Site Services segment was impaired and recognized a non-cash fixed asset impairment charge of $5.2 million in the first quarter of 2020.
During the first and second quarters of 2021, the Well Site Services segment recognized non-cash fixed and operating lease asset impairment charges of $0.7 million and $2.8 million, respectively, associated with the closure of additional facilities coupled with other management actions. During the second quarter of 2021, the segment also recorded an additional $1.9 million charge associated with the exit of a leased facility.
Should, among other events and circumstances, global economic and industry conditions 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, 2021 and December 31, 2020 is presented below (in thousands):
June 30,
2021
December 31,
2020
Accounts receivable, net:
Trade$125,332 $109,294 
Unbilled revenue23,813 23,173 
Contract assets18,074 35,870 
Other10,903 3,102 
Total accounts receivable178,122 171,439 
Allowance for doubtful accounts(7,698)(8,304)
$170,424 $163,135 
Allowance for doubtful accounts as a percentage of total accounts receivable4 %5 %
June 30,
2021
December 31,
2020
Deferred revenue (contract liabilities)$45,210 $43,384 
As of June 30, 2021, accounts receivable, net in the United States and the United Kingdom represented 64% and 20%, respectively, of the total. No other country or single customer accounted for more than 10% of the Company's total accounts receivable as of June 30, 2021.
For the six months ended June 30, 2021, the $17.8 million net decrease in contract assets was primarily attributable to $33.3 million transferred to accounts receivable, which was partially offset by $15.4 million in revenue recognized during the period. Deferred revenue (contract liabilities) increased by $1.8 million in the first half of 2021, primarily reflecting $7.2 million in new customer billings which were not recognized as revenue during the period, partially offset by the recognition of $5.4 million of revenue that was deferred at the beginning of the period.
The following provides a summary of activity in the allowance for doubtful accounts for the six months ended June 30, 2021 and 2020 (in thousands):
Six Months Ended June 30,
20212020
Allowance for doubtful accounts – January 1$8,304 $8,745 
Provisions61 2,549 
Write-offs(815)(2,184)
Other148 1,152 
Allowance for doubtful accounts – June 30$7,698 $10,262 
June 30,
2021
December 31,
2020
Inventories, net:
Finished goods and purchased products$90,623 $88,634 
Work in process30,248 27,063 
Raw materials93,968 95,410 
Total inventories214,839 211,107 
Allowance for excess or obsolete inventory(39,790)(40,731)
$175,049 $170,376 
The Company recorded impairment charges totaling $25.2 million in the first quarter of 2020 to reduce the carrying value of inventories to their estimated net realizable value following the March 2020 decline in crude oil prices, which reduced the near-term utility of certain goods within the Offshore/Manufactured Products and Well Site Services segments.
12

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
June 30,
2021
December 31,
2020
Property, plant and equipment, net:
Land$34,661 $34,968 
Buildings and leasehold improvements265,793 267,072 
Machinery and equipment242,849 239,986 
Completion-related rental equipment505,795 507,755 
Office furniture and equipment32,329 35,767 
Vehicles77,415 81,607 
Construction in progress5,879 7,207 
Total property, plant and equipment1,164,721 1,174,362 
Accumulated depreciation(809,316)(790,800)
$355,405 $383,562 
For the three months ended June 30, 2021 and 2020, depreciation expense was $15.6 million and $18.5 million, respectively. Depreciation expense was $32.0 million and $38.6 million for the six months ended June 30, 2021 and 2020, respectively.
June 30, 2021December 31, 2020
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying AmountGross
Carrying
Amount
Accumulated
Amortization
Net Carrying Amount
Other intangible assets:
Customer relationships$168,290 $60,937 $107,353 $168,288 $55,380 $112,908 
Patents/Technology/Know-how78,528 30,425 48,103 75,920 26,124 49,796 
Noncompete agreements   16,044 14,742 1,302 
Tradenames and other53,708 13,552 40,156 53,708 11,965 41,743 
$300,526 $104,914 $195,612 $313,960 $108,211 $205,749 
For the three months ended June 30, 2021 and 2020, amortization expense was $5.3 million and $6.1 million, respectively. Amortization expense was $10.5 million and $12.5 million for the six months ended June 30, 2021 and 2020, respectively.
June 30,
2021
December 31,
2020
Other noncurrent assets:
Deferred compensation plan$24,026 $22,801 
Deferred financing costs3,097  
Deferred income taxes1,466 1,280 
Other5,159 5,646 
$33,748 $29,727 
June 30,
2021
December 31,
2020
Accrued liabilities:
Accrued compensation$16,840 $18,463 
Accrued taxes, other than income taxes11,029 7,307 
Insurance liabilities6,677 7,694 
Accrued interest3,605 2,202 
Accrued commissions1,263 1,416 
Other5,974 7,422 
$45,388 $44,504 
13

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
5.    Net Loss Per Share
The table below provides a reconciliation of the numerators and denominators of basic and diluted net loss per share for the three and six months ended June 30, 2021 and 2020 (in thousands, except per share amounts):
Three Months Ended
June 30,
Six Months Ended
June 30,
2021202020212020
Numerators:
Net loss$(15,271)$(24,626)$(31,081)$(429,667)
Less: Income attributable to unvested restricted stock awards    
Numerator for basic net loss per share(15,271)(24,626)(31,081)(429,667)
Effect of dilutive securities:
Unvested restricted stock awards    
Numerator for diluted net loss per share$(15,271)$(24,626)$(31,081)$(429,667)
Denominators:
Weighted average number of common shares outstanding61,335 60,987 61,252 60,879 
Less: Weighted average number of unvested restricted stock awards outstanding(1,018)(1,148)(1,045)(1,132)
Denominator for basic and diluted net loss per share