Document
0001401257--12-312019Q3FALSE9,6187,4320.010.01296,000,000296,000,000118,594,202117,411,1588,209,9748,200,47710154155195172636719101581581515156.25P3Y0M0D00014012572019-01-012019-09-300001401257exch:XNYS2019-01-012019-09-30xbrli:shares00014012572019-10-29iso4217:USD00014012572019-07-012019-09-3000014012572018-07-012018-09-3000014012572018-01-012018-09-30iso4217:USDxbrli:shares00014012572019-09-3000014012572018-12-3100014012572017-12-3100014012572018-09-300001401257us-gaap:CommonStockMember2018-12-310001401257us-gaap:AdditionalPaidInCapitalMember2018-12-310001401257us-gaap:TreasuryStockMember2018-12-310001401257us-gaap:RetainedEarningsMember2018-12-310001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001401257us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-3100014012572019-01-012019-03-310001401257us-gaap:CommonStockMember2019-01-012019-03-310001401257us-gaap:TreasuryStockMember2019-01-012019-03-310001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310001401257us-gaap:RetainedEarningsMember2019-01-012019-03-310001401257us-gaap:CommonStockMember2019-03-310001401257us-gaap:AdditionalPaidInCapitalMember2019-03-310001401257us-gaap:TreasuryStockMember2019-03-310001401257us-gaap:RetainedEarningsMember2019-03-310001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-3100014012572019-03-310001401257us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-3000014012572019-04-012019-06-300001401257us-gaap:CommonStockMember2019-04-012019-06-300001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001401257us-gaap:RetainedEarningsMember2019-04-012019-06-300001401257us-gaap:CommonStockMember2019-06-300001401257us-gaap:AdditionalPaidInCapitalMember2019-06-300001401257us-gaap:TreasuryStockMember2019-06-300001401257us-gaap:RetainedEarningsMember2019-06-300001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-3000014012572019-06-300001401257us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300001401257us-gaap:CommonStockMember2019-07-012019-09-300001401257us-gaap:TreasuryStockMember2019-07-012019-09-300001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001401257us-gaap:RetainedEarningsMember2019-07-012019-09-300001401257us-gaap:CommonStockMember2019-09-300001401257us-gaap:AdditionalPaidInCapitalMember2019-09-300001401257us-gaap:TreasuryStockMember2019-09-300001401257us-gaap:RetainedEarningsMember2019-09-300001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300001401257us-gaap:CommonStockMember2017-12-310001401257us-gaap:AdditionalPaidInCapitalMember2017-12-310001401257us-gaap:TreasuryStockMember2017-12-310001401257us-gaap:RetainedEarningsMember2017-12-310001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-310001401257us-gaap:AdditionalPaidInCapitalMember2018-01-012018-03-3100014012572018-01-012018-03-310001401257us-gaap:CommonStockMember2018-01-012018-03-310001401257us-gaap:TreasuryStockMember2018-01-012018-03-310001401257us-gaap:RetainedEarningsMember2018-01-0100014012572018-01-010001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-03-310001401257us-gaap:RetainedEarningsMember2018-01-012018-03-310001401257us-gaap:CommonStockMember2018-03-310001401257us-gaap:AdditionalPaidInCapitalMember2018-03-310001401257us-gaap:TreasuryStockMember2018-03-310001401257us-gaap:RetainedEarningsMember2018-03-310001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-03-3100014012572018-03-310001401257us-gaap:AdditionalPaidInCapitalMember2018-04-012018-06-3000014012572018-04-012018-06-300001401257us-gaap:CommonStockMember2018-04-012018-06-300001401257us-gaap:TreasuryStockMember2018-04-012018-06-300001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-04-012018-06-300001401257us-gaap:RetainedEarningsMember2018-04-012018-06-300001401257us-gaap:CommonStockMember2018-06-300001401257us-gaap:AdditionalPaidInCapitalMember2018-06-300001401257us-gaap:TreasuryStockMember2018-06-300001401257us-gaap:RetainedEarningsMember2018-06-300001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-06-3000014012572018-06-300001401257us-gaap:AdditionalPaidInCapitalMember2018-07-012018-09-300001401257us-gaap:CommonStockMember2018-07-012018-09-300001401257us-gaap:TreasuryStockMember2018-07-012018-09-300001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-07-012018-09-300001401257us-gaap:RetainedEarningsMember2018-07-012018-09-300001401257us-gaap:CommonStockMember2018-09-300001401257us-gaap:AdditionalPaidInCapitalMember2018-09-300001401257us-gaap:TreasuryStockMember2018-09-300001401257us-gaap:RetainedEarningsMember2018-09-300001401257us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-09-30xbrli:pure0001401257fet:AshteadTechnologyMemberus-gaap:DisposalGroupHeldForSaleOrDisposedOfBySaleNotDiscontinuedOperationsMember2018-01-03fet:segment00014012572018-01-012018-12-310001401257us-gaap:AccountingStandardsUpdate201602Member2019-01-010001401257fet:HoustonGlobalHeatTransferLLCMember2018-10-050001401257fet:HoustonGlobalHeatTransferLLCMember2018-10-052018-10-050001401257fet:HoustonGlobalHeatTransferLLCMember2019-01-012019-03-310001401257fet:ESPCompletionTechnologiesLLCMember2018-07-022018-07-02iso4217:GBP0001401257us-gaap:DisposalGroupHeldForSaleOrDisposedOfBySaleNotDiscontinuedOperationsMember2018-01-030001401257us-gaap:DisposalGroupHeldForSaleOrDisposedOfBySaleNotDiscontinuedOperationsMember2019-09-030001401257us-gaap:DisposalGroupHeldForSaleOrDisposedOfBySaleNotDiscontinuedOperationsMember2019-09-032019-09-030001401257us-gaap:DisposalGroupHeldForSaleOrDisposedOfBySaleNotDiscontinuedOperationsMember2018-01-012018-03-310001401257fet:DrillingAndSubseaMember2018-12-310001401257fet:CompletionsMember2018-12-310001401257fet:ProductionAndInfrastructureMember2018-12-310001401257fet:DrillingAndSubseaMember2019-01-012019-09-300001401257fet:CompletionsMember2019-01-012019-09-300001401257fet:ProductionAndInfrastructureMember2019-01-012019-09-300001401257fet:DrillingAndSubseaMember2019-09-300001401257fet:CompletionsMember2019-09-300001401257fet:ProductionAndInfrastructureMember2019-09-300001401257fet:DrillingAndSubseaMember2019-07-012019-09-300001401257fet:StimulationandInterventionMember2019-07-012019-09-300001401257fet:CoiledTubingMember2019-07-012019-09-300001401257fet:ProductionAndInfrastructureMember2019-07-012019-09-300001401257fet:ValveSolutionsMember2019-07-012019-09-300001401257us-gaap:CustomerRelationshipsMember2019-09-300001401257fet:PatentsAndTechnologyMember2019-09-300001401257us-gaap:NoncompeteAgreementsMember2019-09-300001401257us-gaap:TradeNamesMember2019-09-300001401257us-gaap:DistributionRightsMember2019-09-300001401257us-gaap:TrademarksMember2019-09-300001401257us-gaap:CustomerRelationshipsMember2018-12-310001401257fet:PatentsAndTechnologyMember2018-12-310001401257us-gaap:NoncompeteAgreementsMember2018-12-310001401257us-gaap:TradeNamesMember2018-12-310001401257us-gaap:DistributionRightsMember2018-12-310001401257us-gaap:TrademarksMember2018-12-310001401257srt:MinimumMemberus-gaap:CustomerRelationshipsMember2019-01-012019-09-300001401257srt:MaximumMemberus-gaap:CustomerRelationshipsMember2019-01-012019-09-300001401257srt:MinimumMemberus-gaap:CustomerRelationshipsMember2019-01-012019-03-310001401257srt:MaximumMemberus-gaap:CustomerRelationshipsMember2019-01-012019-03-310001401257srt:MinimumMemberfet:PatentsAndTechnologyMember2019-01-012019-09-300001401257srt:MaximumMemberfet:PatentsAndTechnologyMember2019-01-012019-09-300001401257srt:MinimumMemberfet:PatentsAndTechnologyMember2019-01-012019-03-310001401257srt:MaximumMemberfet:PatentsAndTechnologyMember2019-01-012019-03-310001401257us-gaap:NoncompeteAgreementsMembersrt:MinimumMember2019-01-012019-09-300001401257us-gaap:NoncompeteAgreementsMembersrt:MaximumMember2019-01-012019-09-300001401257us-gaap:NoncompeteAgreementsMembersrt:MinimumMember2019-01-012019-03-310001401257us-gaap:NoncompeteAgreementsMembersrt:MaximumMember2019-01-012019-03-310001401257srt:MinimumMemberus-gaap:TradeNamesMember2019-01-012019-09-300001401257srt:MaximumMemberus-gaap:TradeNamesMember2019-01-012019-09-300001401257srt:MinimumMemberus-gaap:TradeNamesMember2019-01-012019-03-310001401257srt:MaximumMemberus-gaap:TradeNamesMember2019-01-012019-03-310001401257srt:MinimumMemberus-gaap:DistributionRightsMember2019-01-012019-09-300001401257srt:MaximumMemberus-gaap:DistributionRightsMember2019-01-012019-09-300001401257srt:MinimumMemberus-gaap:DistributionRightsMember2019-01-012019-03-310001401257srt:MaximumMemberus-gaap:DistributionRightsMember2019-01-012019-03-310001401257srt:MinimumMemberus-gaap:TrademarksMember2019-01-012019-09-300001401257srt:MinimumMemberus-gaap:TrademarksMember2019-01-012019-03-310001401257us-gaap:SeniorNotesMember2019-09-300001401257us-gaap:SeniorNotesMember2018-12-310001401257us-gaap:LineOfCreditMemberfet:A2017CreditFacilityMember2019-09-300001401257us-gaap:LineOfCreditMemberfet:A2017CreditFacilityMember2018-12-310001401257fet:OtherDebtMember2019-09-300001401257fet:OtherDebtMember2018-12-310001401257us-gaap:SeniorNotesMember2013-10-310001401257us-gaap:SeniorNotesMember2013-11-300001401257us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2017-10-300001401257us-gaap:LineOfCreditMemberus-gaap:ForeignLineOfCreditMember2017-10-300001401257us-gaap:LineOfCreditMemberus-gaap:LetterOfCreditMember2017-10-300001401257us-gaap:LineOfCreditMemberus-gaap:LetterOfCreditMemberfet:CanadianSubsidiariesMember2017-10-300001401257us-gaap:RevolvingCreditFacilityMemberfet:A2017CreditFacilityMember2017-10-300001401257us-gaap:LineOfCreditMemberus-gaap:LetterOfCreditMemberfet:A2017CreditFacilityMember2019-09-300001401257us-gaap:LineOfCreditMember2019-09-300001401257us-gaap:FederalFundsEffectiveSwapRateMemberus-gaap:RevolvingCreditFacilityMemberfet:A2017CreditFacilityMember2019-01-012019-09-300001401257us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMemberfet:A2017CreditFacilityMember2019-01-012019-09-300001401257fet:CDORRateMemberus-gaap:RevolvingCreditFacilityMemberfet:A2017CreditFacilityMember2019-01-012019-09-300001401257us-gaap:LineOfCreditMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2019-01-012019-09-300001401257us-gaap:DebtInstrumentRedemptionPeriodTwoMemberus-gaap:LineOfCreditMember2019-01-012019-03-310001401257us-gaap:DebtInstrumentRedemptionPeriodThreeMemberus-gaap:LineOfCreditMember2019-01-012019-09-300001401257fet:A2017CreditFacilityMember2019-09-300001401257fet:A2017CreditFacilityMember2019-01-012019-09-300001401257us-gaap:DebtInstrumentRedemptionPeriodThreeMemberus-gaap:LineOfCreditMember2019-09-300001401257us-gaap:RevolvingCreditFacilityMemberfet:A2017CreditFacilityMemberus-gaap:DebtInstrumentRedemptionPeriodFourMember2019-01-012019-09-300001401257us-gaap:LineOfCreditMemberus-gaap:DebtInstrumentRedemptionPeriodFiveMember2019-01-012019-03-310001401257srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberfet:A2017CreditFacilityMemberus-gaap:DebtInstrumentRedemptionPeriodFiveMember2019-01-012019-09-300001401257srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberfet:A2017CreditFacilityMemberus-gaap:DebtInstrumentRedemptionPeriodFiveMember2019-01-012019-09-300001401257us-gaap:LineOfCreditMembersrt:MinimumMember2019-01-012019-09-300001401257srt:MinimumMember2019-01-012019-09-300001401257srt:MaximumMember2019-01-012019-09-3000014012572019-01-012019-01-0100014012572019-01-010001401257us-gaap:FairValueInputsLevel2Memberus-gaap:SeniorNotesMember2019-09-300001401257us-gaap:FairValueInputsLevel2Memberus-gaap:SeniorNotesMember2018-12-310001401257us-gaap:OperatingSegmentsMemberfet:DrillingAndDownholeMember2019-07-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:DrillingAndDownholeMember2018-07-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:DrillingAndDownholeMember2019-01-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:DrillingAndDownholeMember2018-01-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:CompletionsMember2019-07-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:CompletionsMember2018-07-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:CompletionsMember2019-01-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:CompletionsMember2018-01-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:ProductionMember2019-07-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:ProductionMember2018-07-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:ProductionMember2019-01-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:ProductionMember2018-01-012018-09-300001401257us-gaap:IntersegmentEliminationMember2019-07-012019-09-300001401257us-gaap:IntersegmentEliminationMember2018-07-012018-09-300001401257us-gaap:IntersegmentEliminationMember2019-01-012019-09-300001401257us-gaap:IntersegmentEliminationMember2018-01-012018-09-300001401257us-gaap:CorporateNonSegmentMember2019-07-012019-09-300001401257us-gaap:CorporateNonSegmentMember2018-07-012018-09-300001401257us-gaap:CorporateNonSegmentMember2019-01-012019-09-300001401257us-gaap:CorporateNonSegmentMember2018-01-012018-09-300001401257us-gaap:OperatingSegmentsMember2019-07-012019-09-300001401257us-gaap:OperatingSegmentsMember2018-07-012018-09-300001401257us-gaap:OperatingSegmentsMember2019-01-012019-09-300001401257us-gaap:OperatingSegmentsMember2018-01-012018-09-300001401257us-gaap:MaterialReconcilingItemsMember2019-07-012019-09-300001401257us-gaap:MaterialReconcilingItemsMember2018-07-012018-09-300001401257us-gaap:MaterialReconcilingItemsMember2019-01-012019-09-300001401257us-gaap:MaterialReconcilingItemsMember2018-01-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:DrillingAndDownholeMember2019-09-300001401257us-gaap:OperatingSegmentsMemberfet:DrillingAndDownholeMember2018-12-310001401257us-gaap:OperatingSegmentsMemberfet:CompletionsMember2019-09-300001401257us-gaap:OperatingSegmentsMemberfet:CompletionsMember2018-12-310001401257us-gaap:OperatingSegmentsMemberfet:ProductionMember2019-09-300001401257us-gaap:OperatingSegmentsMemberfet:ProductionMember2018-12-310001401257us-gaap:CorporateNonSegmentMember2019-09-300001401257us-gaap:CorporateNonSegmentMember2018-12-310001401257us-gaap:OperatingSegmentsMemberfet:DrillingTechnologiesMember2019-07-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:DrillingTechnologiesMember2018-07-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:DrillingTechnologiesMember2019-01-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:DrillingTechnologiesMember2018-01-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:DownholeTechnologiesMember2019-07-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:DownholeTechnologiesMember2018-07-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:DownholeTechnologiesMember2019-01-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:DownholeTechnologiesMember2018-01-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:SubseaTechnologiesMember2019-07-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:SubseaTechnologiesMember2018-07-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:SubseaTechnologiesMember2019-01-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:SubseaTechnologiesMember2018-01-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:StimulationandInterventionMember2019-07-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:StimulationandInterventionMember2018-07-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:StimulationandInterventionMember2019-01-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:StimulationandInterventionMember2018-01-012018-09-300001401257fet:CoiledTubingMemberus-gaap:OperatingSegmentsMember2019-07-012019-09-300001401257fet:CoiledTubingMemberus-gaap:OperatingSegmentsMember2018-07-012018-09-300001401257fet:CoiledTubingMemberus-gaap:OperatingSegmentsMember2019-01-012019-09-300001401257fet:CoiledTubingMemberus-gaap:OperatingSegmentsMember2018-01-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:ProductionEquipmentMember2019-07-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:ProductionEquipmentMember2018-07-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:ProductionEquipmentMember2019-01-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:ProductionEquipmentMember2018-01-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:ValveSolutionsMember2019-07-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:ValveSolutionsMember2018-07-012018-09-300001401257us-gaap:OperatingSegmentsMemberfet:ValveSolutionsMember2019-01-012019-09-300001401257us-gaap:OperatingSegmentsMemberfet:ValveSolutionsMember2018-01-012018-09-300001401257country:US2019-07-012019-09-300001401257country:US2018-07-012018-09-300001401257country:US2019-01-012019-09-300001401257country:US2018-01-012018-09-300001401257country:CA2019-07-012019-09-300001401257country:CA2018-07-012018-09-300001401257country:CA2019-01-012019-09-300001401257country:CA2018-01-012018-09-300001401257fet:EuropeAndAfricaMember2019-07-012019-09-300001401257fet:EuropeAndAfricaMember2018-07-012018-09-300001401257fet:EuropeAndAfricaMember2019-01-012019-09-300001401257fet:EuropeAndAfricaMember2018-01-012018-09-300001401257us-gaap:MiddleEastMember2019-07-012019-09-300001401257us-gaap:MiddleEastMember2018-07-012018-09-300001401257us-gaap:MiddleEastMember2019-01-012019-09-300001401257us-gaap:MiddleEastMember2018-01-012018-09-300001401257srt:AsiaPacificMember2019-07-012019-09-300001401257srt:AsiaPacificMember2018-07-012018-09-300001401257srt:AsiaPacificMember2019-01-012019-09-300001401257srt:AsiaPacificMember2018-01-012018-09-300001401257srt:LatinAmericaMember2019-07-012019-09-300001401257srt:LatinAmericaMember2018-07-012018-09-300001401257srt:LatinAmericaMember2019-01-012019-09-300001401257srt:LatinAmericaMember2018-01-012018-09-300001401257fet:RestrictedStockAndRestrictedStockUnitsMember2019-01-012019-09-300001401257us-gaap:PerformanceSharesMember2019-01-012019-09-300001401257fet:EmployeeMemberfet:RestrictedStockAndRestrictedStockUnitsMember2019-01-012019-09-300001401257srt:DirectorMemberfet:RestrictedStockAndRestrictedStockUnitsMember2019-01-012019-09-300001401257srt:MinimumMemberus-gaap:PerformanceSharesMember2019-01-012019-09-300001401257srt:MaximumMemberus-gaap:PerformanceSharesMember2019-01-012019-09-300001401257fet:February2019Memberus-gaap:PerformanceSharesMember2019-01-012019-09-300001401257srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2019-07-012019-09-300001401257srt:GuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2019-07-012019-09-300001401257srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2019-07-012019-09-300001401257srt:ConsolidationEliminationsMember2019-07-012019-09-300001401257srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2018-07-012018-09-300001401257srt:GuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2018-07-012018-09-300001401257srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2018-07-012018-09-300001401257srt:ConsolidationEliminationsMember2018-07-012018-09-300001401257srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2019-01-012019-09-300001401257srt:GuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2019-01-012019-09-300001401257srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2019-01-012019-09-300001401257srt:ConsolidationEliminationsMember2019-01-012019-09-300001401257srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2018-01-012018-09-300001401257srt:GuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2018-01-012018-09-300001401257srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2018-01-012018-09-300001401257srt:ConsolidationEliminationsMember2018-01-012018-09-300001401257srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2019-09-300001401257srt:GuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2019-09-300001401257srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2019-09-300001401257srt:ConsolidationEliminationsMember2019-09-300001401257srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2018-12-310001401257srt:GuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2018-12-310001401257srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2018-12-310001401257srt:ConsolidationEliminationsMember2018-12-310001401257srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2017-12-310001401257srt:GuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2017-12-310001401257srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2017-12-310001401257srt:ConsolidationEliminationsMember2017-12-310001401257srt:ParentCompanyMembersrt:ReportableLegalEntitiesMember2018-09-300001401257srt:GuarantorSubsidiariesMembersrt:ReportableLegalEntitiesMember2018-09-300001401257srt:ReportableLegalEntitiesMembersrt:NonGuarantorSubsidiariesMember2018-09-300001401257srt:ConsolidationEliminationsMember2018-09-30

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 September 30, 2019
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 001-35504
FORUM ENERGY TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
Delaware61-1488595
(State or other jurisdiction of(I.R.S. Employer Identification No.)
incorporation or organization)

10344 Sam Houston Park Drive Suite 300HoustonTexas77064
(Address of Principal Executive Offices)(Zip Code)

(281)949-2500
(Registrant’s telephone number, including area code)
______________________________________________
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stockFETNew 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. Yes þ No o
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). Yes þ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller 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. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No þ
As of October 29, 2019 there were 110,464,461 common shares outstanding.

1


Table of Contents


2


PART I — FINANCIAL INFORMATION
Item 1. Financial Statements

Forum Energy Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Loss
(Unaudited)
  Three Months Ended September 30,Nine Months Ended September 30,
(in thousands, except per share information)2019201820192018
Revenue$239,266  $267,037  $756,756  $791,271  
Cost of sales176,632  192,496  560,836  576,774  
Gross profit62,634  74,541  195,920  214,497  
Operating expenses
Selling, general and administrative expenses63,471  71,790  195,320  215,369  
Transaction expenses254  769  972  2,164  
Impairments of goodwill, intangible assets, property and equipment532,336    532,336  14,477  
Contingent consideration benefit    (4,629)   
Loss (gain) on disposal of assets and other(107) 205  (71) (1,495) 
Total operating expenses595,954  72,764  723,928  230,515  
Earnings (loss) from equity investment(39) 659  (318) 46  
Operating income (loss)(533,359) 2,436  (528,326) (15,972) 
Other expense (income)
Interest expense7,766  7,923  24,170  23,871  
Foreign exchange and other gains, net(3,200) (1,325) (3,069) (3,634) 
Gain realized on previously held equity investment(1,567)   (1,567)   
Gain on contribution of subsea rentals business      (33,506) 
Total other expense (income), net2,999  6,598  19,534  (13,269) 
Loss before income taxes(536,358) (4,162) (547,860) (2,703) 
Income tax expense (benefit)(3,371) (1,108) 6,749  (12,366) 
Net income (loss)(532,987) (3,054) (554,609) 9,663  
Weighted average shares outstanding
Basic110,295  108,856  109,977  108,666  
Diluted110,295  108,856  109,977  110,801  
Earnings (loss) per share
Basic$(4.83) $(0.03) $(5.04) $0.09  
Diluted(4.83) (0.03) (5.04) 0.09  
Other comprehensive income (loss), net of tax:
Net income (loss)(532,987) (3,054) (554,609) 9,663  
Change in foreign currency translation, net of tax of $0(6,260) (1,536) (2,833) (13,884) 
Gain (loss) on pension liability(17) 7  (21) 78  
Comprehensive loss$(539,264) $(4,583) $(557,463) $(4,143) 
The accompanying notes are an integral part of these condensed consolidated financial statements.

3


Forum Energy Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except share information)September 30, 2019December 31, 2018
Assets
Current assets
Cash and cash equivalents$28,897  $47,241  
Accounts receivable—trade, net of allowances of $9,618 and $7,432182,649  206,055  
Inventories, net443,432  479,023  
Prepaid expenses and other current assets31,803  23,677  
Accrued revenue1,084  862  
Costs and estimated profits in excess of billings4,640  9,159  
Total current assets692,505  766,017  
Property and equipment, net of accumulated depreciation160,173  177,358  
Operating lease assets50,706  —  
Deferred financing costs, net1,450  2,071  
Intangible assets279,371  359,048  
Goodwill  469,647  
Investment in unconsolidated subsidiary  44,982  
Deferred income taxes, net  1,234  
Other long-term assets14,947  9,295  
Total assets$1,199,152  $1,829,652  
Liabilities and equity
Current liabilities
Current portion of long-term debt$1,220  $1,167  
Accounts payable—trade124,062  143,186  
Accrued liabilities87,148  81,032  
Deferred revenue7,152  8,335  
Billings in excess of costs and profits recognized4,507  3,210  
Total current liabilities224,089  236,930  
Long-term debt, net of current portion399,805  517,544  
Deferred income taxes, net12,627  15,299  
Operating lease liabilities51,718  —  
Other long-term liabilities25,451  29,753  
Total liabilities713,690  799,526  
Commitments and contingencies
Equity
Common stock, $0.01 par value, 296,000,000 shares authorized, 118,594,202 and 117,411,158 shares issued1,186  1,174  
Additional paid-in capital1,227,768  1,214,928  
Treasury stock at cost, 8,209,974 and 8,200,477 shares(134,487) (134,434) 
Retained earnings (deficit)(490,921) 63,688  
Accumulated other comprehensive loss(118,084) (115,230) 
Total equity485,462  1,030,126  
Total liabilities and equity$1,199,152  $1,829,652  
The accompanying notes are an integral part of these condensed consolidated financial statements.
4


Forum Energy Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended September 30,
(in thousands)20192018
Cash flows from operating activities
Net income (loss)$(554,609) $9,663  
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense22,873  24,975  
Amortization of intangible assets25,621  30,905  
Impairments of goodwill, intangible assets, property and equipment532,336  14,477  
Inventory write down5,775  9,180  
Stock-based compensation expense11,923  17,173  
(Earnings) loss from unconsolidated subsidiary317  (46) 
Contingent consideration benefit(4,629)   
Gain realized on previously held equity investment(1,567)   
Gain on contribution of subsea rentals business  (33,506) 
Deferred income taxes(1,438) (14,406) 
Noncash losses (gains) and other, net5,938  2,372  
Changes in operating assets and liabilities
Accounts receivable—trade20,515  (19,550) 
Inventories28,200  (67,507) 
Prepaid expenses and other assets237  (12,551) 
Cost and estimated profit in excess of billings4,190  (877) 
Accounts payable, deferred revenue and other accrued liabilities(21,328) 12,073  
Billings in excess of costs and estimated profits earned1,297  3,279  
Net cash provided by (used in) operating activities$75,651  $(24,346) 
Cash flows from investing activities
Capital expenditures for property and equipment(12,607) (19,856) 
Acquisition of businesses, net of cash acquired  (8,000) 
Proceeds from sale of equity investment, property and equipment39,805  9,194  
Net cash provided by (used in) investing activities$27,198  $(18,662) 
Cash flows from financing activities
Borrowings of debt97,000  100,000  
Repayments of debt(217,333) (141,866) 
Repurchases of stock(1,050) (2,499) 
Proceeds from stock issuance  150  
Net cash used in financing activities$(121,383) $(44,215) 
Effect of exchange rate changes on cash190  (1,053) 
Net decrease in cash, cash equivalents and restricted cash(18,344) (88,276) 
Cash, cash equivalents and restricted cash at beginning of period47,241  115,216  
Cash, cash equivalents and restricted cash at end of period$28,897  $26,940  
Noncash activities (1)
Assets contributed for equity method investment$  $18,070  
Note receivable related to equity method investment transaction$4,725  $4,067  
(1) See Note 8 Leases for additional information about noncash activities related to leases and the impact from adoption of ASU 842.


The accompanying notes are an integral part of these condensed consolidated financial statements.
5


Forum Energy Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Changes in Stockholders’ Equity
(Unaudited)

Nine Months Ended September 30, 2019
(in thousands)Common stockAdditional paid-in capitalTreasury stockRetained
earnings
Accumulated
other
comprehensive
income / (loss)
Total equity
Balance at December 31, 2018  $1,174  $1,214,928  $(134,434) $63,688  $(115,230) $1,030,126  
Stock-based compensation expense  —  3,910  —  —  —  3,910  
Restricted stock issuance, net of forfeitures  6  (931) —  —  —  (925) 
Shares issued in employee stock purchase plan  2  682  —  —  —  684  
Contingent shares issued for acquisition of Cooper Valves  1  374  —  —  —  375  
Treasury stock  —  —  (48) —  —  (48) 
Currency translation adjustment  —  —  —  —  4,834  4,834  
Change in pension liability  —  —  —  —  (9) (9) 
Net loss  —  —  —  (7,888) —  (7,888) 
Balance at March 31, 2019  $1,183  $1,218,963  $(134,482) $55,800  $(110,405) $1,031,059  
Stock-based compensation expense  —  4,352  —  —  —  4,352  
Restricted stock issuance, net of forfeitures    (64) —  —  —  (64) 
Currency translation adjustment  —  —  —  —  (1,407) (1,407) 
Change in pension liability  —  —  —  —  5  5  
Net loss  —  —  —  (13,734) —  (13,734) 
Balance at June 30, 2019  $1,183  $1,223,251  $(134,482) $42,066  $(111,807) $1,020,211  
Stock-based compensation expense  —  3,661  —  —  —  3,661  
Restricted stock issuance, net of forfeitures    (8) —  —  —  (8) 
Shares issued in employee stock purchase plan  3  864  —  —  —  867  
Treasury stock  —  —  (5) —  —  (5) 
Currency translation adjustment  —  —  —  —  (6,260) (6,260) 
Change in pension liability  —  —  —  —  (17) (17) 
Net loss  —  —  —  (532,987) —  (532,987) 
Balance at September 30, 2019  $1,186  $1,227,768  $(134,487) $(490,921) $(118,084) $485,462  

The accompanying notes are an integral part of these condensed consolidated financial statements.


6


Forum Energy Technologies, Inc. and subsidiaries
Condensed Consolidated Statements of Changes in Stockholders’ Equity
(Unaudited)

Nine Months Ended September 30, 2018
(in thousands)Common stockAdditional paid-in capitalTreasury stockRetained
earnings
Accumulated
other
comprehensive
income / (loss)
Total equity
Balance at December 31, 2017$1,163  $1,195,339  $(134,293) $438,774  $(91,967) $1,409,016  
Stock-based compensation expense—  5,302  —  —  —  5,302  
Restricted stock issuance, net of forfeitures4  (1,611) —  —  —  (1,607) 
Issuance of performance shares2  (275) —  —  —  (273) 
Shares issued in employee stock purchase plan1  995  —  —  —  996  
Contingent shares issued for acquisition of Cooper Valves—  125  —  —  —  125  
Treasury stock—  —  (66) —  —  (66) 
 Adjustment for adoption of ASU 2016-16 (Intra-entity asset transfers) —  —  —  (1,006) —  (1,006) 
Currency translation adjustment—  —  —  —  6,287  6,287  
Change in pension liability—  —  —  —  16  16  
Net income—  —  —  28,066  —  28,066  
Balance at March 31, 2018$1,170  $1,199,875  $(134,359) $465,834  $(85,664) $1,446,856  
Stock-based compensation expense—  5,314  —  —  —  5,314  
Restricted stock issuance, net of forfeitures1  (222) —  —  —  (221) 
Treasury stock—  —  (45) —  —  (45) 
Currency translation adjustment—  —  —  —  (18,635) (18,635) 
Change in pension liability—  —  —  —  55  55  
Net loss—  —  —  (15,349) —  (15,349) 
Balance at June 30, 2018$1,171  $1,204,967  $(134,404) $450,485  $(104,244) $1,417,975  
Stock-based compensation expense—  6,557  —  —  —  6,557  
Restricted stock issuance, net of forfeitures  (257) —  —  —  (257) 
 Exercised stock options 150  —  —  —  150  
Shares issued in employee stock purchase plan1  938  —  —  —  939  
Treasury stock—  —  (30) —  —  (30) 
Currency translation adjustment—  —  —  —  (1,536) (1,536) 
Change in pension liability—  —  —  —  7  7  
Net loss—  —  —  (3,054) —  (3,054) 
Balance at September 30, 2018$1,172  $1,212,355  $(134,434) $447,431  $(105,773) $1,420,751  
The accompanying notes are an integral part of these condensed consolidated financial statements.

7

Table of Contents
Forum Energy Technologies, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (Continued)
(Unaudited)
1. Organization and Basis of Presentation
Forum Energy Technologies, Inc. (the “Company,” “we,” “our,” or “us”), a Delaware corporation, is a global oilfield products company, serving the drilling, downhole, subsea, completions and production sectors of the oil and natural gas industry. The Company's products include highly engineered capital equipment as well as products that are consumed in the drilling, well construction, production and transportation of oil and natural gas. Forum is headquartered in Houston, TX with manufacturing and distribution facilities strategically located around the globe.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of the Company include the accounts of the Company and its subsidiaries. All intercompany transactions have been eliminated in consolidation.
Prior to the sale of our aggregate 40% interest in the third quarter 2019, our investment in Ashtead Technology (”Ashtead”) was accounted for using the equity method of accounting as we had the ability to exert significant influence, but did not control operating and financial policies. Prior to the sale, our share of the net income (loss) from Ashtead was reported in “Earnings (loss) from equity investment” in the Condensed Consolidated Statements of Comprehensive loss and the investment was included in “Investment in unconsolidated subsidiary” in the condensed consolidated balance sheets. Our share of equity earnings were reported within operating income (loss), as the investee’s operations were integral to the operations of the Company. See Note 4 Acquisitions & Dispositions for further information related to the sale of our aggregate 40% interest in Ashtead.
In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for the fair statement of the Company’s financial position, results of operations and cash flows have been included. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other interim period.
These interim financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018, which are included in the Company’s 2018 Annual Report on Form 10-K filed with the SEC on February 28, 2019.
Change of Segment
In the first quarter 2019, we changed our reporting segments in order to align with business activity drivers and the manner in which management reviews and evaluates operating performance. Forum now operates in the following