View Filing Data

$ 283,103

$ 235,848

$ 808,311

$ 679,837

Service [Member]

Foreign currency translation adjustments [Abstract]

$ 20,471

$ 16,149

$ 62,014

$ 46,163

[1]	See Note 4 — Earnings Per Share

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS (unaudited) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2018

Sep. 30, 2017

Net income

$ 25,495

$ 18,685

$ 72,284

$ 51,304

Foreign currency translation adjustments (1)

^[1]

(515)

5,303

(9,080)

6,895

Pension and other postretirement benefit plans [Abstract]

Net actuarial gain arising during period

170

Reclassification adjustment of net actuarial loss included in net income

181

199

Reclassification adjustment for settlement losses included in net income

353

Total pension and other post-retirement benefit plans (2)

^[2]

439

704

199

Other comprehensive income (loss)

(76)

5,370

(8,376)

7,094

Comprehensive income

25,419

24,055

63,908

58,398

Comprehensive income (loss) attributable to noncontrolling interest

232

264

295

860

Comprehensive income attributable to Apergy

$ 25,187

$ 23,791

$ 63,613

$ 57,538

[1]	Net of income tax (expense) benefit of nil for the three and nine months ended September 30, 2018 and 2017.
[2]	Net of income tax (expense) benefit of $161 and $35 for the three months ended September 30, 2018 and 2017, respectively, and $123 and $102 for the nine months ended September 30, 2018 and 2017, respectively.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax	$ 0	$ 0	$ 0	$ 0
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax	$ 161	$ 356	$ 123	$ 102

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Cash and cash equivalents	$ 18,014	$ 23,712
Receivables, net of allowances of $5,454 in 2018 and $4,753 in 2017	277,926	202,024
Inventories, net	219,133	201,591
Prepaid expenses and other current assets	20,824	14,038
Total current assets	535,897	441,365
Property, plant and equipment, net	236,067	211,832
Goodwill	906,766	910,088
Intangible assets, net	297,397	338,510
Other non-current assets	7,229	2,980
Total assets	1,983,356	1,904,775
Accounts payable	127,103	98,826
Accrued compensation and employee benefits	36,988	30,289
Accrued expenses and other current liabilities	53,054	21,950
Total current liabilities	217,145	151,065
Long-term debt	687,543	3,742
Deferred income taxes	93,138	96,985
Other long-term liabilities	20,770	12,949
Total liabilities	1,018,596	264,741
Stockholders' equity:
Common stock (2.5 billion shares authorized, $0.01 par value) 2018—77.3 million shares issued and outstanding	773	0
Additional paid-in capital	967,044	0
Retained earnings	33,257	0
Net parent investment in Apergy	0	1,661,700
Accumulated other comprehensive loss	(38,527)	(26,415)
Total stockholders’ equity	962,547	1,635,285
Noncontrolling interest	2,213	4,749
Total equity	964,760	1,640,034
Total liabilities and equity	$ 1,983,356	$ 1,904,775

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Allowance for doubtful accounts receivable	$ 5,454	$ 4,753
Par value of common stock (in dollars per share)	$ 0.01
Common stock, shares authorized (in shares)	2,500,000,000.0
Common stock, shares issued (in shares)	77,300,000
Common stock, shares outstanding (in shares)	77,300,000

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands	Total	Common Stock, Par Value	Common Stock, Capital in excess of par value	Retained Earnings	Net Parent Investment in Apergy	Accum. Other Comp. Loss	Non-controlling Interest
Balance at Dec. 31, 2017	$ 1,640,034	$ 0	$ 0	$ 0	$ 1,661,700	$ (26,415)	$ 4,749
Cumulative effect of accounting changes (Note 2)	1,300				1,315	(1,315)
Net income	72,284			33,257	38,732		295
Other comprehensive loss	(8,376)					(8,376)
Net transfer to/from Dover	(738,970)				(736,549)	(2,421)
Reclassification of net parent investment in Apergy			965,198		(965,198)
Issuance of common stock		773	(773)
Stock-based compensation	2,619		2,619
Distributions to noncontrolling interest	(2,720)						(2,720)
Other	(111)						(111)
Balance at Sep. 30, 2018	$ 964,760	$ 773	$ 967,044	$ 33,257	$ 0	$ (38,527)	$ 2,213

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash provided (required) by operating activities:
Net income	$ 72,284	$ 51,304
Adjustments to reconcile net income to net cash provided (required) by operating activities:
Depreciation	52,814	42,233
Amortization	38,863	40,190
Stock-based compensation	3,129	1,762
(Gain) loss on sale of fixed assets	194	(713)
Deferred income taxes	(4,674)	(17,503)
Other	5,138	(5,539)
Changes in operating assets and liabilities (net of effects of acquisitions and foreign exchange):
Receivables	(79,533)	(62,203)
Inventories	(20,960)	(28,245)
Prepaid expenses and other current assets	(5,514)	(4,893)
Accounts payable	27,776	37,950
Accrued compensation and employee benefits	13,640	4,965
Accrued expenses and other current liabilities	24,602	2,927
Leased assets and other	(34,953)	(21,030)
Net cash provided by operating activities	92,806	41,205
Cash provided (required) by investing activities:
Capital expenditures	(45,832)	(29,445)
Proceeds from sale of property, plant and equipment	970	2,616
Purchase price adjustments on acquisition	53	0
Net cash required by investing activities	(44,809)	(26,829)
Cash provided (required) by financing activities:
Proceeds from long-term debt, net of discounts	713,963	0
Payment of debt issue costs	(16,006)	0
Repayments of long-term debt	20,000	0
Distributions to Dover Corporation, net	(728,857)	(19,220)
Distribution to noncontrolling interest	(2,720)	(1,212)
Net cash required by financing activities	(53,620)	(20,432)
Effect of exchange rate changes on cash and cash equivalents	(75)	3,476
Net decrease in cash and cash equivalents	(5,698)	(2,580)
Cash and cash equivalents at beginning of period	23,712	26,027
Cash and cash equivalents at end of period	$ 18,014	$ 23,447

Basis of Presentation and Separation

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Separation

BASIS OF PRESENTATION AND SEPARATION

Apergy Corporation (“Apergy”) is a leading provider of highly engineered equipment and technologies that help companies drill for and produce oil and gas safely and efficiently around the world. Our products provide efficient functioning throughout the lifecycle of a well—from drilling to completion to production. We report our results of operations in the following reporting segments: Production & Automation Technologies and Drilling Technologies. Our Production & Automation Technologies segment offerings consist of artificial lift equipment and solutions, including rod pumping systems, electric submersible pump systems, progressive cavity pumps and drive systems and plunger lifts, as well as a full automation and digital offering consisting of equipment, software and Industrial Internet of Things solutions for downhole monitoring, wellsite productivity enhancement and asset integrity management. Our Drilling Technologies segment offering provides market leading polycrystalline diamond cutters and bearings that result in cost effective and efficient drilling.

Separation and Distribution

On April 18, 2018, the Dover Corporation (“Dover”) Board of Directors approved the separation of entities conducting its upstream oil and gas energy business within Dover’s Energy segment (the “Separation”) into an independent, publicly traded company named Apergy Corporation. Apergy Corporation was incorporated in Delaware on October 10, 2017, under the name Wellsite Corporation and was renamed Apergy Corporation on February 2, 2018. Apergy Corporation was formed for the purpose of holding entities, assets and liabilities conducting Dover’s upstream oil and gas business within Dover’s Energy segment. In accordance with the separation and distribution agreement, the two companies were separated by Dover distributing to Dover’s stockholders all 77,339,828 shares of common stock of Apergy on May 9, 2018. Each Dover shareholder received one share of Apergy stock for every two shares of Dover stock held at the close of business on the record date of April 30, 2018. In conjunction with the Separation, Dover received a private letter ruling from the Internal Revenue Service to the effect that, based on certain facts, assumptions, representations and undertakings set forth in the ruling, for U.S. federal income tax purposes, the distribution of Apergy common stock was not taxable to Dover or U.S. holders of Dover common stock, except in respect to cash received in lieu of fractional share interests. Following the Separation, Dover retained no ownership interest in Apergy, and each company, as of May 9, 2018, has separate public ownership, boards of directors and management. A registration statement on Form 10, as amended, describing the Separation was filed by Apergy with the U.S. Securities and Exchange Commission (“SEC”) and was declared effective on April 19, 2018. On May 9, 2018, Apergy common stock began “regular-way” trading on the New York Stock Exchange under the “APY” symbol.

Tax Matters Agreement

On May 9, 2018, Apergy and Dover entered into a tax matters agreement which governs Apergy’s and Dover’s respective rights, responsibilities and obligations after the Separation with respect to tax liabilities (including taxes, if any incurred as a result of any failure of the Separation or certain related transactions to qualify for tax-free treatment for U.S. federal income tax purposes) and benefits, tax attributes, the preparation and filing of tax returns, the control of audits and other tax proceedings and other tax matters. Neither party’s obligations under the tax matters agreement will be limited in amount or subject to any cap.

Apergy also agreed to certain covenants that contain restrictions intended to preserve the tax-free status of the Separation and certain related transactions. Apergy and certain of its subsidiaries are barred from taking any action, or failing to take any action, where such action or failure to act may be expected to result in any increased tax liability or reduced tax attribute of Dover. In addition, during the time period ending two years after the date of the Separation, these covenants include specific restrictions on the ability of Apergy and certain of its subsidiaries to:


•	issue or sell stock or other securities (including securities convertible into Apergy stock but excluding certain compensatory arrangements);


•	cease to actively conduct its business or dispose of assets outside the ordinary course of business; and


•	enter into certain other corporate transactions which could cause Apergy to undergo a 40% or greater change in its stock ownership.

Employee Matters Agreement

On May 9, 2018, Apergy and Dover entered into an employee matters agreement which governs the respective rights, responsibilities and obligations of the parties in connection with the Separation with respect to employee-related matters. The employee matters agreement provides for the allocation and treatment of assets and liabilities as applicable, arising out of incentive plans, retirement plans, and employee health and welfare benefit programs, in which Apergy’s employees participated prior to the Separation, and the treatment of outstanding Dover incentive awards. In general, Apergy assumed liabilities related to its current and former employees incurred before the Separation. Dover retained liabilities accrued prior to the Separation related to certain Apergy participants in Dover’s U.S. defined benefit pension plan. As a result of the Separation and effective May 15, 2018, outstanding Dover equity awards held by Apergy employees, other than Dover performance shares, converted into corresponding Apergy equity awards issued under the Apergy Corporation 2018 Equity and Cash Incentive Plan. Generally, each award is subject to the same terms and conditions as were in effect prior to the Separation. Immediately prior to the Separation, outstanding Dover performance shares held by Apergy employees that related to performance periods ending after the Separation were cancelled.

In connection with the Separation, we incurred an aggregate principal amount of $715 million of long-term debt, which consisted of a $415 million term loan facility and $300 million of senior notes. Net proceeds from the notes offering, together with borrowings under the term loan facility, were used to make a cash payment of $700 million to Dover and to pay fees and expenses incurred in connection with the Separation. See Note 8 — Debt for additional information.

Basis of Presentation

Prior to the Separation, our results of operations, financial position and cash flows were derived from the consolidated financial statements and accounting records of Dover and reflect the combined historical results of operations, financial position and cash flows of certain Dover entities conducting its upstream oil and gas energy business within Dover’s Energy segment, including an allocated portion of Dover’s corporate costs. These financial statements have been presented as if such businesses had been combined for all periods prior to the Separation. All intercompany transactions and accounts within Dover were eliminated. The assets and liabilities were reflected on a historical cost basis since all of the assets and liabilities presented were wholly owned by Dover and were transferred within the Dover consolidated group. The statements of income also include expense allocations for certain corporate functions historically performed by Dover and not allocated to its operating segments, including corporate executive management, human resources, information technology, facilities, tax, shared services, finance and legal, including the costs of salaries, benefits and other related costs. These expense allocations were based on direct usage or benefit where identifiable, with the remainder allocated on the basis of revenue, headcount or other measures. These pre-Separation combined financial statements may not include all of the actual expenses that would have been incurred had we been a stand-alone public company during the periods presented prior to the Separation and consequently may not reflect our results of operations, financial position and cash flows had we been a stand-alone public company during the periods presented prior to the Separation. Actual costs that would have been incurred if we had been a stand-alone public company would depend on a variety of factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure.

Prior to the Separation, transactions between Apergy and Dover, with the exception of transactions discussed in Note 3 —Related Party Transactions, are reflected in the condensed combined balance sheet as of December 31, 2017, as part of “Net parent investment in Apergy” and in the condensed combined statements of cash flows as a financing activity in “Distributions to Dover Corporation, net.” See Note 3 — Related Party Transactions for additional information.

No portion of Dover’s third-party debt was historically held by an Apergy entity or was transferred to Apergy; therefore, no debt was included in the condensed combined balance sheet as of December 31, 2017, and no interest expense was presented in the condensed combined statement of income for the three and nine months ended September 30, 2017. Intercompany notes payable to Dover of $224.5 million as of December 31, 2017, were presented within “Net parent investment in Apergy” because the notes were not settled in cash. Accordingly, no interest expense related to intercompany debt was presented in the condensed combined statements of income for each of the periods presented prior to the Separation. Additionally, our U.S. cash was historically pooled to Dover through intercompany advances and consequently is not reflected on our condensed combined balance sheet as of December 31, 2017.

All financial information presented after the Separation represents the consolidated results of operations, financial position and cash flows of Apergy. Accordingly, our results of operations and cash flows consist of the consolidated results of Apergy from May 9, 2018 to September 30, 2018, and the combined results of operations and cash flows for periods prior to May 9, 2018. Our balance sheet as of September 30, 2018, reflects the consolidated balances of Apergy while the December 31, 2017, balance sheet reflects the combined balances of the Dover upstream oil and gas energy businesses that were transferred to Apergy. Our management believes the assumptions underlying these condensed consolidated financial statements, including the assumptions regarding the allocation of corporate expenses from Dover for periods prior to the Separation, are reasonable.

The legal transfer of the upstream oil and gas energy businesses from Dover to Apergy occurred on May 9, 2018; however, for ease of reference, and unless otherwise stated or the context otherwise requires, all references to “Apergy Corporation,” “Apergy,” “we,” “us” or “our” refer (i) prior to the Separation, to the Apergy businesses, consisting of entities, assets and liabilities conducting the upstream oil and gas business within Dover’s Energy segment and (ii) after the Separation, to Apergy Corporation and its consolidated subsidiaries.

Interim Financial Information

The accompanying unaudited condensed consolidated financial statements of Apergy have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC pertaining to interim financial information. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted. Therefore, these financial statements should be read in conjunction with the audited combined financial statements, and notes thereto, in the Information Statement included in Amendment No. 1 to the Form 10 filed with the SEC on April 12, 2018.

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from our estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments unless otherwise specified) necessary for a fair statement of our financial condition and results of operations as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these financial statements may not be representative of the results that may be expected for the year ending December 31, 2018.

Reclassifications

Beginning in the first quarter of 2018, we changed our presentation of expenditures related to purchases of leased assets. Previously, these amounts were reported in the operating section of our cash flow statement as “other” in adjustments to reconcile net income but are now reported as changes in our operating assets and liabilities in the operating section of our cash flow statement as “leased assets and other.” During the first quarter of 2018, we changed our presentation of amortization expense primarily related to customer intangible assets. For the three and nine months ended September 30, 2017, we reclassified $11.0 million and $32.1 million of amortization expense previously reported as a component of “selling, general and administrative expense” to “cost of goods and services” on our condensed combined statements of income.

During the second quarter of 2018, we changed our presentation of capital lease obligations. As of December 31, 2017, we reclassified $3.7 million of capital lease obligations previously reported as “other long-term liabilities” to “long-term debt” on our condensed combined balance sheet.

Certain prior-year amounts have been reclassified to conform to the current year presentation. See Note 2 — New Accounting Standards for additional information.

New Accounting Standards

9 Months Ended

Sep. 30, 2018

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Standards

NEW ACCOUNTING STANDARDS

Recently Adopted Accounting Standards

Effective January 1, 2018, we early adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This update allows for the reclassification from accumulated other comprehensive income (“AOCI”) to equity for stranded deferred income tax effects resulting from the U.S. Tax Cuts and Jobs Act (“Tax Reform Act”). We elected to reclassify these stranded deferred income tax effects which amounted to $1.3 million. The stranded deferred income tax effects were specifically identified with our employee benefit plans and were the result of the reduction in the corporate income tax rate against the corresponding deferred income taxes in AOCI.

Effective January 1, 2018, we adopted ASU 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This update changes the income statement presentation of defined benefit and post-retirement benefit plan expense by requiring separation between operating expense (service cost component of net periodic benefit cost) and non-operating expense (all other components of net periodic benefit cost, including interest cost, amortization of prior service cost, curtailments and settlements, etc.). The operating expense component is reported with similar compensation costs while the non-operating components are reported in “other expense, net” in the condensed consolidated statements of income. The adoption of this update was not material to the periods presented. We utilized a practical expedient which allows an entity to use amounts previously disclosed in its pension and other post-retirement benefits disclosures for any prior period as the estimation basis for applying the required retrospective presentation requirements.

Effective January 1, 2018, we adopted ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” which clarifies the definition of a business and assists entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under this guidance, when substantially all of the fair value of gross assets acquired is concentrated in a single asset (or group of similar assets), the assets acquired would not represent a business. In addition, in order to be considered a business, an acquisition would have to include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output. The update also narrows the definition of outputs by more closely aligning it with how outputs are described in guidance for revenue recognition. The adoption of this ASU did not have a material impact on our financial statements.

Effective January 1, 2018, we adopted ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The new update clarifies how certain cash receipts and cash payments should be presented and classified in the statement of cash flows. Specifically, the new update clarifies that when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. We adopted this guidance retrospectively. For the nine months ended September 30, 2017, the impact of this adoption resulted in a $9.6 million increase in net cash provided by operating activities and a corresponding increase to net cash used by investing activities on our statement of cash flows related to cash expenditures for certain leased assets.

Effective January 1, 2018, we adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The update introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The update also requires quantitative and qualitative disclosures to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We applied the provisions of the ASU to contracts that were not completed as of January 1, 2018.

During the second half of 2015, Dover developed a project plan to implement ASU 2014-09, and as a subsidiary of Dover, we were included in Dover’s implementation efforts. We completed the project plan and analyzed the ASU’s impact on our contract portfolio, surveyed our businesses for our various revenue streams, completed contract reviews, and compared our historical accounting policies and practices to the requirements of the new guidance. We also evaluated the new disclosure requirements and identified and implemented appropriate changes to our business processes, systems and controls. We adopted the new guidance using the modified retrospective method and identified no cumulative effect adjustment to our total net investment balance as of January 1, 2018. The impact of adopting the new standard was not material to our financial statements for the three and nine months ended September 30, 2018.

We have applied the following practical expedients or elections under the new standard:


•	We elected to omit disclosure of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.


•	We applied the practical expedient to not capitalize costs to obtain contracts with a duration of one year or less, which are expensed and included within “cost of goods and services” in the condensed consolidated statements of income.

•

We elected to use the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component if it is expected, at contract inception, that the period between when we transfer a promised good or service to a customer, and when the customer pays for that good or service, will be one year or less. Thus, we may not consider an advance payment to be a significant financing component, if it is received less than one year before product completion.

•

We elected to exclude all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer (e.g., sales, use, value added, and some excise taxes) from the determination of the transaction price. As a result, our accounting policy of reporting revenue net of these taxes was not changed under the new standard.


•	We elected to account for shipping and handling activities performed after control of a good has been transferred to the customer as a contract fulfillment cost. As a result, our accounting policy related to shipping and handling was not changed under the new standard.

See Note 11 — Revenue for additional information.

Recently Issued Accounting Standards

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This update requires that a lessee recognize in the statement of financial position a liability for future lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Similar to current guidance, the update continues to differentiate between finance leases and operating leases; however, this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. Additionally, lessors will be required to classify leases as sales-type, finance or operating, with classification affecting the pattern of income recognition. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. The guidance will be effective for us on January 1, 2019. Early adoption is permitted. We will adopt this standard on January 1, 2019, using the modified retrospective method, which will result in a cumulative catch-up adjustment to retained earnings.

After the Separation from Dover, we developed a project plan and established a cross-functional team to continue the process of implementing the new guidance, which included an evaluation of the work performed by Dover prior to the Separation. We made progress on our plan including gathering information on all leases, surveying our businesses, assessing our portolfio of leases and compiling a central repository of active leases. During the third quarter of 2018, we completed diagnostic reviews of certain sampled leases to support our policy elections. Additionally, we made significant progress configuring and implementing a new lease software system. We continue to evaluate our policy elections and considerations under the new lease guidance, including the potential use of practical expedients, and we are in the process of updating our internal control and business processes. As we continue to assess the impact the guidance will have on our financial statements and related disclosures, internal control over financial reporting and other business practices and processes, we expect to recognize right of use assets and liabilities for operating leases in our consolidated balance sheet upon adoption.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The update amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which may result in earlier recognition of losses related to financial instruments. The guidance will be effective for us on January 1, 2020. Early adoption is permitted for annual periods beginning after December 15, 2018. We do not expect the adoption of this ASU to have a material impact on our financial statements.

In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for interim and annual periods beginning on January 1, 2020, with early adoption permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are in the process of assessing the impacts of the guidance will have on our financial statements.

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	RELATED PARTY TRANSACTIONS Dover Corporation Prior to the Separation, Dover provided certain services including corporate executive management, human resources, information technology, facilities, tax, shared services, finance and legal services. Dover continues to provide us certain of these services on a temporary basis following the Separation under a transition services agreement. Under the transition services agreement, Apergy pays a fee to Dover for services utilized under the transition services agreement, which fee is generally intended to allow Dover to recover all of its direct and indirect costs generally without profit. Except as provided otherwise in the transition services agreement, or with respect to specific services with other specified terms, the initial term of the transition services agreement will end on January 31, 2019, and the term may then be extended until May 9, 2019, or such other period set forth on the schedules thereto (subject to earlier termination under certain circumstances). All financial information presented prior to the Separation does not include all the expenses that would have been incurred had Apergy been a stand-alone public company. The corporate expenses allocated by Dover to these financial statements were $4.7 million for the three months ended September 30, 2017, and $7.4 million and $16.5 million for the nine months ended September 30, 2018 and 2017, respectively, which were recorded in “selling, general and administrative expense” in the condensed consolidated statements of income. For periods prior to the Separation, transactions between Apergy and Dover, with the exception of transactions discussed below with Dover’s affiliates, are reflected in “net parent investment in Apergy” in the condensed combined balance sheet as of December 31, 2017, and in “distributions to Dover Corporation, net” in the statements of cash flows for the nine months ended September 30, 2018 and 2017, as a financing activity. Accounts receivable, accounts payable and revenues with Dover and its affiliates were not material for the periods presented. We recognized royalty expense of $2.5 million for the three months ended September 30, 2017, and $2.3 million and $7.4 million for the nine months ended September 30, 2018 and 2017, respectively, related to the use of Dover’s intellectual property and patents which was included in “other expense, net” in the condensed consolidated statements of income. On April 1, 2018, patents and other intangibles owned by Dover related to our operations transferred to Apergy, and consequently, Apergy will no longer incur royalty charges related to these assets from Dover. Noncontrolling Interest For the nine months ended September 30, 2018 and 2017, we declared and paid $2.7 million and $1.2 million, respectively, of distributions to the noncontrolling interest holder in Norris Production Solutions Middle East LLC, a subsidiary in the Sultanate of Oman. We have a commission arrangement with our noncontrolling interest for 5% of certain annual product sales.

Earnings per Share

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

On May 9, 2018, 77,339,828 shares of our common stock were distributed to Dover stockholders in conjunction with the Separation. See Note 1 — Basis Of Presentation And Separation for additional information. For comparative purposes, and to provide a more meaningful calculation of weighted-average shares outstanding, we have assumed the shares issued in conjunction with the Separation to be outstanding as of the beginning of each period prior to the Separation. In addition, we have assumed the potential dilutive securities outstanding as of May 8, 2018, were outstanding and fully dilutive in each of the periods prior to the Separation.

A reconciliation of the number of shares used for the basic and diluted earnings per share calculation was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except per share data)	2018		2017		2018		2017
Net income attributable to Apergy	$	25,263	$	18,421	$	71,989	$	50,444

Weighted-average number of shares outstanding	77,340		77,340		77,340		77,340
Dilutive effect of stock-based compensation	229		550		402		550
Total shares and dilutive securities	77,569		77,890		77,742		77,890

Basic earnings per share attributable to Apergy	$	0.33	$	0.24	$	0.93	$	0.65
Diluted earnings per share attributable to Apergy	$	0.33	$	0.24	$	0.93	$	0.65

Inventories

9 Months Ended

Sep. 30, 2018

Inventory, Net [Abstract]

Inventories

INVENTORIES

Inventories consisted of the following:



(in thousands)	September 30, 2018			December 31, 2017
Raw materials	$	48,735		$	45,408
Work in progress	11,130			10,879
Finished goods	184,871			167,416
	244,736			223,703
LIFO and valuation adjustments	(25,603		)	(22,112		)
Inventories, net	$	219,133		$	201,591

Property, Plant and Equipment

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:



(in thousands)	September 30, 2018			December 31, 2017
Land	$	13,623		$	13,557
Buildings and improvements	104,026			99,233
Machinery, equipment and other	501,148			446,261
	618,797			559,051
Accumulated depreciation	(382,730		)	(347,219		)
Property, plant and equipment, net	$	236,067		$	211,832

During the nine months ended September 30, 2018, we transferred $42.5 million of inventory to property, plant and equipment related to certain assets entering our lease program.

Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The carrying amount, including changes therein, of goodwill by reporting segment was as follows:



(in thousands)	Production & Automation Technologies			Drilling Technologies		Total
December 31, 2017	$	808,952		$	101,136	$	910,088
Purchase price adjustment ^*	(53		)	—		(53		)
Foreign currency translation	(3,269		)	—		(3,269		)
September 30, 2018	$	805,630		$	101,136	$	906,766

_______________________

* Purchase price adjustment related to our 2017 acquisition of PCP Oil Tools S.A. and Ener Tools S.A.

Intangible Assets

The components of our definite- and indefinite-lived intangible assets were as follows:



	September 30, 2018						December 31, 2017
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Definite-lived intangible assets:
Customer intangibles	$	569,832	$	309,355	$	260,477	$	572,415	$	276,655	$	295,760
Trademarks	36,307		20,648		15,659		36,312		17,821		18,491
Patents	38,514		22,959		15,555		38,679		20,449		18,230
Unpatented technologies	9,700		9,700		—		9,700		9,700		—
Drawings and manuals	3,047		2,163		884		3,067		2,109		958
Other	5,346		4,124		1,222		5,382		3,911		1,471
	662,746		368,949		293,797		665,555		330,645		334,910
Indefinite-lived intangible assets:
Trademarks	3,600		—		3,600		3,600		—		3,600
Total	$	666,346	$	368,949	$	297,397	$	669,155	$	330,645	$	338,510

Debt

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Debt

DEBT

Long-term debt consisted of the following:



(in thousands)	September 30, 2018			December 31, 2017
Revolving credit facility	$	—		$	—
Term loan facility	395,000			—
6.375% Senior Notes due 2026	300,000			—
Capital leases	4,337			3,742
Total	699,337			3,742
Net unamortized discounts and issuance costs	(11,794		)	—
Total long-term debt	$	687,543		$	3,742

Senior Notes

On May 3, 2018, and in connection with the Separation, we completed the private placement of $300 million in aggregate principal amount of 6.375% senior notes due May 2026 (“Senior Notes”). Interest on the Senior Notes is payable semi-annually in arrears on May 1 and November 1 of each year, commencing on November 1, 2018. Net proceeds of $293.8 million from the offering were utilized to partially fund the $700 million cash payment to Dover at the Separation and to pay fees and expenses incurred in connection with the Separation.

The terms of the Senior Notes are governed by the indenture dated as of May 3, 2018, between Apergy and Wells Fargo Bank, N.A., as trustee, and are guaranteed, on a senior unsecured basis, by the subsidiary guarantors of our senior secured credit facilities as described below. At any time prior to May 1, 2021, we may redeem all or part of the Senior Notes at a redemption price equal to 100% of the principal amount of the Senior Notes redeemed plus a premium, as defined in the indenture, plus accrued and unpaid interest. Beginning on or after May 1, 2021, we may redeem the Senior Notes, in whole or in part, at certain tiered redemption prices as defined in the indenture, plus accrued and unpaid interest. The Senior Notes are our senior unsecured obligations. The Senior Notes rank equally in right of payment with our future and existing senior debt but are effectively subordinated to our future and existing debt to the extent of the assets securing such senior debt. The Senior Notes rank senior in right of payment to all of our future subordinated debt.

In connection with the private placement, we granted the initial purchasers of the Senior Notes certain registration rights under a registration right agreement. We have agreed for the benefit of the holders of the Senior Notes to use our commercially reasonable efforts to file and cause to be effective a registration statement with the SEC relating to a registered offer to exchange the Senior Notes for an issue of SEC-registered notes with terms identical in all material respects to the Senior Notes. Generally, we have one year from the issuance of the Senior Notes to complete the exchange offer. Should Apergy not complete its obligations under the registration rights agreement within a year, the annual interest rate on the Senior Notes will increase at different intervals based on the passage of time after one year.

Senior Secured Credit Facilities

On May 9, 2018, Apergy entered into a new credit agreement (“credit agreement”) governing the terms of its new senior secured credit facilities, consisting of (i) a seven-year senior secured term loan B facility (“term loan facility”) and (ii) a five-year senior secured revolving credit facility (“revolving credit facility,” and together with the term loan facility, the “senior secured credit facilities”), with JPMorgan Chase Bank, N.A. as administrative agent. The net proceeds of the senior secured credit facilities were used (i) to pay fees and expenses in connection with the Separation, (ii) partially fund the cash payment to Dover and (iii) provide for working capital and other general corporate purposes. The senior secured credit facilities are jointly and severally guaranteed by Apergy and certain of Apergy’s wholly owned U.S. subsidiaries (“guarantors”), on a senior secured basis, and are secured by substantially all tangible and intangible assets of Apergy and the guarantors, except for certain excluded assets.

At our election, outstanding borrowings under the senior secured credit facilities will accrue interest at a per annum rate of (i) LIBOR plus a margin or (ii) a base rate plus a margin. The senior secured credit facilities contain a number of customary covenants that, among other things, will limit or restrict the ability of Apergy and the restricted subsidiaries to, subject to certain qualifications and exceptions, perform certain activities which include, but are not limited to (i) incur additional indebtedness, (ii) make acquisitions and (iii) pay dividends or other payments in respect of our capital stock. Additionally, Apergy will be required to maintain (a) a minimum interest coverage ratio, as defined in the credit agreement, of 2.75 to 1.00 and (b) a maximum total leverage ratio, as defined in the credit agreement, of 4.00 to 1.00 through the fiscal quarter ending June 30, 2019, then 3.75 to 1.00 through the fiscal quarter ending June 30, 2020, then 3.50 to 1.00 thereafter.

Term Loan Facility. The term loan facility had an initial commitment of $415 million. The full amount of the term loan facility was funded on May 9, 2018. Amounts borrowed under the term loan facility that are repaid or prepaid may not be re-borrowed. The term loan facility matures in May 2025. Net proceeds of $408.7 million from the term loan facility were utilized to partially fund the cash payment to Dover at the Separation and to pay fees and expenses incurred in connection with the Separation.

The term loan is subject to mandatory amortization payments of 1.0% per annum of the initial commitment of $415 million paid quarterly. Additionally, subject to certain exceptions, the term loan facility is subject to mandatory prepayments, including the amount equal to: 100% of the net cash proceeds of all non-ordinary course asset sales subject to (i) reinvestment periods and (ii) step-downs to 75% and 50% based on certain leverage targets; and 50% of excess cash flow, as defined in the credit agreement, with step-downs to 25% and 0% based on certain leverage targets. Apergy may voluntarily prepay amounts outstanding under the term loan facility in whole or in part at any time without premium or penalty (other than during the six months following May 9, 2018, on the amount of loans prepaid or repaid in connection with a repricing transaction), as defined in the credit agreement.

Revolving Credit Facility. The revolving credit facility consists of a five-year senior secured facility with aggregate commitments in an amount equal to $250 million, of which up to $50 million is available for the issuance of letters of credit. Amounts repaid under the revolving credit facility may be re-borrowed. The revolving credit facility matures in May 2023.

Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss consisted of the following:



(in thousands)	Foreign Currency Translation			Defined Pension and Other Post-Retirement Benefits			Accumulated Other Comprehensive Loss
December 31, 2017	$	(21,935	)	$	(4,480	)	$	(26,415	)
Reclassification adjustment for cumulative effect of change in accounting principle	—			(1,315		)	(1,315		)
Net transfer from Dover Corporation	—			(2,421		)	(2,421		)
Other comprehensive income (loss) before reclassifications, net of tax	(9,080		)	170			(8,910		)
Reclassification adjustment for net losses (gains) included in net income, net of tax	—			534			534
Other comprehensive income (loss), net of tax	(9,080		)	704			(8,376		)
September 30, 2018	$	(31,015	)	$	(7,512	)	$	(38,527	)

Reclassification adjustments from accumulated other comprehensive loss to net income related to defined pension and other post-retirement benefits consisted of the following:



	Three Months Ended						Nine Months Ended						Affected line items on the condensed consolidated statements of income
	September 30,						September 30,
(in thousands)	2018			2017			2018			2017
Amortization of actuarial loss ⁽¹⁾	$	116		$	100		$	243		$	299		Other expense, net
Settlement loss ⁽¹⁾	484			—			484			—			Selling, general and administrative expense
Total before tax	600			100			727			299			Income before income taxes
Tax benefit	(161		)	(35		)	(192		)	(102		)	Provision for income taxes
	$	439		$	65		$	535		$	197		Net income

_______________________

(1) These accumulated comprehensive loss components are included in the computation of net periodic benefit cost (See Note16—Employee Benefit Plans for additional information).

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Guarantees and Indemnifications We have provided indemnities in connection with sales of certain businesses and assets, including representations and warranties, covenants and related indemnities for environmental health and safety, tax and employment matters. We do not have any material liabilities recorded for these indemnifications and are not aware of any claims or other information that would give rise to material payments under such indemnities. In connection with the Separation, we entered into agreements with Dover that govern the treatment between Dover and us of certain indemnification matters and litigation responsibility. Generally, the separation and distribution agreement provides for cross-indemnities principally designed to place financial responsibility for the obligations and liabilities of our business with us and to place financial responsibility for the obligations and liabilities of Dover’s business with Dover. The separation and distribution agreement also establishes procedures for handling claims subject to indemnification and related matters. In addition, pursuant to the tax matters agreement, we have agreed to indemnify Dover and its affiliates against any and all tax-related liabilities incurred by them relating to the Separation and/or certain related transactions to the extent caused by an acquisition of Apergy stock or assets or by any other action or failure to act undertaken by Apergy or its affiliates. As of September 30, 2018 and December 31, 2017, we had $5.5 million and $8.1 million, respectively, of outstanding letters of credit, surety bonds and guarantees which expire at various dates through 2020. These financial instruments are primarily maintained as security for insurance, warranty and other performance obligations. Generally, we would only be liable for the amount of these letters of credit in the event of default in the performance of our obligations, the probability of which we believe is remote. Litigation We are a party to a number of legal proceedings incidental to our businesses. These proceedings primarily involve claims by private parties alleging injury arising out of use of our products, patent infringement, employment matters, and commercial disputes. Management and legal counsel review the probable outcome of such proceedings, the costs and expenses reasonably expected to be incurred and currently accrued to-date, and the availability and extent of insurance coverage. We have reserves for legal matters that are probable and estimable, and as of September 30, 2018 and December 31, 2017, these liabilities were not material. Management is unable to predict the ultimate outcome of these actions because of their inherent uncertainty. However, management believes that the most probable, ultimate resolution of these matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Revenue

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Restructuring and Other Related Charges

REVENUE

Our revenue is substantially generated from product sales. For the nine months ended September 30, 2018, approximately 89% of our revenue was generated from product sales. Our remaining revenue was derived from services, leases and other, which represented approximately 7%, 3%, and 1%, respectively, of total revenue for the nine months ended September 30, 2018. Product revenue is derived from the sale of drilling and production equipment. Service revenue is earned as technical advisory assistance and field services related to our products are provided. Lease revenue is derived from month-to-month rental income of leased production equipment.

The majority of our revenue is short cycle in nature, with shipments occurring within a year from the customer order date. A small portion of our revenue is derived from contracts extending over one year. Our payment terms generally range between 30 to 90 days and vary by the location of our businesses and the types and volumes of products manufactured and sold, among other factors. Costs incurred to obtain a customer contract are generally not material to us.

Disaggregation of Revenue

Revenue disaggregated by end market in each of our reporting segments was as follows:



	Three Months Ended			Nine Months Ended
(in thousands)	September 30, 2018			September 30, 2018
Drilling Technologies	$	75,254		$	209,727
Production & Automation Technologies:
Artificial lift	188,005			544,566
Digital products	31,114			85,347
Other production equipment	22,380			68,922
Intra-segment eliminations	(285		)	(2,244		)
	241,214			696,591
Total revenue	$	316,468		$	906,318

Revenue disaggregated by geography was as follows:



	Three Months Ended		Nine Months Ended
(in thousands)	September 30, 2018		September 30, 2018
United States	$	252,747	$	713,373
Canada	20,759		58,639
Middle East	13,645		40,091
Europe	7,625		27,805
Latin America	8,364		25,097
Asia-Pacific	3,715		13,900
Other	9,613		27,413
Total revenue	$	316,468	$	906,318

Performance Obligations

The majority of our contracts have a single performance obligation which represents, in most cases, the equipment or product sold to the customer. Some contracts include multiple performance obligations such as a product and the related installation, extended warranty and/or maintenance services. For contracts with multiple performance obligations, we allocate the transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. We typically use observable prices to determine the stand-alone selling price of a performance obligation and utilize a cost plus margin approach when observable prices are not available.

Substantially all of our performance obligations are recognized at a point in time and are primarily related to our product revenue derived from the sale of drilling and production equipment. Revenue is recognized when control transfers to the customer upon shipment or completion of installation, testing, certification, or other substantive acceptance provisions required under the contract. Revenue is recognized over time for our service and lease offerings. Service revenue is recognized over time as we provide technical advisory assistance and field services related to our products.

Warranties

The majority of our contracts contain standard warranties in connection with the sale of a product to a customer which provide a customer assurance that the related product will function for a period of time as the parties intended. In addition to our standard warranties, we also offer extended warranties to our customers. Warranties provided as part of our product offerings are analyzed to determine whether they represent a distinct service, and if so, are recognized as service revenue over the related warranty period.

Remaining performance obligations

As of September 30, 2018, we did not have any contracts with an original length of greater than a year, from which revenue is expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied).

Contract balances

Contract assets and contract liabilities from contracts with customers were as follows:



(in thousands)	September 30, 2018		January 1, 2018
Contract assets	$	3,475	$	4,733
Contract liabilities - current	6,827		4,487

Contract assets primarily relate to our right to consideration for work completed but not billed at the reporting date and are recorded in “prepaid expenses and other current assets” on our condensed consolidated balance sheets. Contract assets are transferred to receivables when the right to consideration becomes unconditional. Contract liabilities relate to our obligation to transfer goods or services to a customer for which we have received advance consideration (or an amount of consideration is due) from the customer. Current contract liabilities are recorded in other “accrued expenses and other current liabilities” on our condensed consolidated balance sheets.

Critical Accounting Estimates

Estimates are used to determine the amount of variable consideration in contracts, the determination of the standalone selling price among separate performance obligations, as well as the determination of the measure of progress for contracts where revenue is recognized over time. Some contracts with customers include variable consideration primarily related to volume rebates. We estimate variable consideration at the most likely amount to determine the total consideration which we expect to be entitled. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and the determination of whether to include estimated amounts in the transaction price are largely based on an assessment of our anticipated performance and all information that is reasonably available.

Restructuring and Other Related Charges

9 Months Ended

Sep. 30, 2018

Restructuring [Abstract]

RESTRUCTURING AND OTHER RELATED CHARGES

Restructuring and other related charges as classified in our condensed consolidated statements of income were as follows:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands)	2018			2017			2018		2017
Cost of goods and services	$	(33	)	$	(16	)	$	1,557	$	(17	)
Selling, general and administrative expense	(6		)	24			916		38
Total	$	(39	)	$	8		$	2,473	$	21

Restructuring and other related charges during 2018 were incurred in our Production & Automation Technologies segment. These charges reflect costs associated with exiting certain product lines and include severance and related benefit costs, early lease termination and other related charges. Our restructuring programs were designed to better align our costs and operations with current market conditions and include measures such as targeted facility consolidations, headcount reductions and other actions to further optimize our operations.

Our liability balances for restructuring and other exit activities were $1.5 million and $2.6 million as of September 30, 2018 and December 31, 2017, respectively, and primarily include ongoing lease commitment obligations for facilities closed in prior periods and employee severance and related benefits. Our restructuring initiatives are complete and our liability balances for restructuring and other exit activities are expected to be mostly settled by mid-2019.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES Prior to the Separation, our operations were historically included in Dover’s U.S. combined federal and state income tax returns. For the periods prior to the Separation, income tax expense and deferred tax balances are presented in these condensed consolidated financial statements as if Apergy filed its own tax returns in each jurisdiction and include tax losses and tax credits that may not reflect tax positions taken by Dover. In many cases, tax losses and tax credits generated by Apergy through the date of the Separation were utilized by Dover. Income tax payable balances as of December 31, 2017, were classified within “net parent investment in Apergy” on the condensed combined balance sheet since Dover is legally liable for the tax. Our income tax provision reflected effective tax rates of 23.2% and 30.6% for the three months ended September 30, 2018 and 2017, respectively, and 25.2% and 30.9% for the nine months ended September 30, 2018 and 2017, respectively. The year-over-year decrease in the effective tax rates was primarily due to the Tax Reform Act, which was enacted on December 22, 2017, and which reduced the U.S. corporate income tax rate from a maximum of 35% to 21%, effective January 1, 2018. This benefit was partially offset by tax on capital gains related to certain reorganizations of our subsidiaries as a result of the Separation. We recognized provisional tax impacts related to deemed repatriated earnings and the benefit for the revaluation of deferred tax assets and liabilities in our combined financial statements for the year ended December 31, 2017. The provisions in the Tax Reform Act are broad and complex. As of September 30, 2018, we have not yet completed our accounting for the income tax effects of the Tax Reform Act but have made reasonable estimates of those effects on our existing deferred income tax balances and the one-time deemed repatriation tax. The final financial statement impact of the Tax Reform Act may differ from our estimates, possibly materially, due to, among other things, changes in interpretations of the Tax Reform Act, any legislative action to address questions that arise because of the Tax Reform Act, and changes in accounting standards for income taxes or related interpretations in response to the Tax Reform Act, or any updates or changes to estimates we have utilized to calculate the provisional impacts. The SEC has issued rules which allow for a measurement period of up to one year after the enactment date of the Tax Reform Act to finalize the recording of the related income tax impacts. We expect to finalize our analysis related to the Tax Reform Act by the end of the measurement period.

Fair Value Measurements Fair Value Measurements	9 Months Ended
Fair Value Measurements Fair Value Measurements	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS We had no outstanding derivative contracts as of September 30, 2018 and December 31, 2017. Other assets and liabilities measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017, were not significant; thus, no fair value disclosures are presented. The fair value, based on Level 1 quoted market rates, of our Senior Notes was approximately $308.6 million at September 30, 2018, as compared to the $300 million face value of the debt. The fair value, based on Level 2 quoted market rates, of our term loan facility was approximately $397.0 million at September 30, 2018, as compared to the $395 million face value of the debt. The carrying amounts of cash and cash equivalents, trade receivables, accounts payable, as well as amounts included in other current assets and other current liabilities that meet the definition of financial instruments, approximate fair value due to their short-term nature. Credit Risk By their nature, financial instruments involve risk, including credit risk, for non-performance by counterparties. Financial instruments that potentially subject us to credit risk primarily consist of trade receivables. We manage the credit risk on financial instruments by transacting only with what management believes are financially secure counterparties, requiring credit approvals and credit limits, and monitoring counterparties’ financial condition. Our maximum exposure to credit loss in the event of non-performance by the counterparty is limited to the amount drawn and outstanding on the financial instrument. Allowances for losses on trade receivables are established based on collectability assessments.

Equity and Cash Incentive Program

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Equity and Cash Incentive Program

9 Months Ended

Sep. 30, 2018

Share-based Compensation [Abstract]

EQUITY AND CASH INCENTIVE PROGRAM

Prior to the Separation, Dover granted share-based awards to its officers and other key employees, including certain Apergy individuals. All awards granted under the program consisted of Dover common shares and are not necessarily indicative of the results that Apergy would have experienced as a stand-alone public company for the periods presented prior to the Separation. Effective with the Separation, outstanding Dover share-based awards were converted to Apergy share-based awards, with the exception of outstanding Dover performance share awards that relate to performance periods ending after the Separation. Such performance share awards were cancelled effective with the Separation.

In connection with the Separation, the Board of Directors of Apergy adopted the Apergy Corporation 2018 Equity and Cash Incentive Plan (“2018 Plan”). The 2018 Plan was also approved by Dover in its capacity as the sole stockholder of Apergy at the time of adoption. A total of 6.5 million shares of common stock are reserved for issuance under the 2018 Plan, subject to customary adjustments arising from stock splits and other similar changes.

The 2018 Plan authorized the grant of stock options, stock-settled stock appreciation rights (“SARs”), restricted stock awards, restricted stock units, performance share awards, cash performance awards, directors’ shares and deferred stock units. The Apergy Compensation Committee determines the exercise price for options and the base price of SARs, which may not be less than the fair market value of Apergy common stock on the date of grant. Generally, stock options or SARs vest after three years of service and expire at the end of ten years. Performance share awards vest if Apergy achieves certain pre-established performance targets based on specified performance criteria over a performance period of not less than three years.

In May 2018 and in connection with the Separation, 352 thousand restricted stock awards and 87 thousand performance shares were granted to employees.

Stock-based compensation expense is reported within “selling, general and administrative expense” in the condensed consolidated statements of income. Stock-based compensation expense relating to all stock-based incentive plans was as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Stock-based compensation expense	$	1,768		$	630		$	3,129		$	1,762
Tax benefit	(421		)	(219		)	(717		)	(611		)
Stock-based compensation expense, net of tax	$	1,347		$	411		$	2,412		$	1,151

Employee Benefit Plans	9 Months Ended
Employee Benefit Plans	Sep. 30, 2018
Defined Benefit Plan [Abstract]
Employee Benefit Plans	EMPLOYEE BENEFIT PLANS Prior to the Separation, certain of our employees participated in defined benefit and non-qualified plans sponsored by Dover, which included participants of other Dover subsidiaries. Through the Separation date, we accounted for such plans as multi-employer benefit plans. A proportionate share of the cost associated with these plans is reflected in the condensed combined statements of income prior to the Separation. Dover provided a defined benefit pension plan for its eligible U.S. employees and retirees (“U.S. Pension Plan”). As such, the portion of Apergy’s liability associated with the U.S. Pension Plan is not reflected in the condensed combined balance sheet as of December 31, 2017, and was not recorded at the Separation as this obligation will be maintained and serviced by Dover. Shortly before the Separation, Apergy participants in the U.S. Pension Plan (other than Norris USW participants) fully vested in their benefits, and all participants ceased accruing benefits. In addition, Apergy did not assume any funding requirements or obligations related to the U.S. Pension Plan upon the Separation. Norris USW participants were moved to a new pension plan and continued to accrue benefits. Dover also provided a defined benefit pension plan for its eligible salaried non-U.S. employees and retirees in Canada (“Canada Salaried Pension Plan”). As such, the portion of Apergy’s liability associated with this non-U.S. plan is not reflected in our condensed combined balance sheet as of December 31, 2017, as this obligation was maintained and serviced by Dover. The Canada Salaried Pension Plan, including all assets and liabilities, was transferred to Apergy at the Separation. Shortly before the Separation, all non-Apergy participants in this plan ceased accruing benefits or were not permitted to make contributions, as applicable. The non-Apergy participants may elect a lump sum cash payment post Separation that will be the responsibility of Apergy and will be funded out of the plan assets. Dover provided to certain U.S. management employees, through non-qualified plans, supplemental retirement benefits in excess of qualified plan limits imposed by federal tax law. As of January 1, 2018, Apergy participants in these non-qualified plans no longer accrued benefits nor were permitted to make contributions, as applicable. Apergy assumed the funding requirements and related obligations attributable to Apergy employees related to these non-qualified plans upon the Separation. The non-qualified plans are unfunded and contributions are made as benefits are paid. At the Separation, we recognized $6.1 million of liabilities and $2.4 million of accumulated other comprehensive loss, net of tax, related to plans previously accounted for as multi-employer plans prior to the Separation. Net Periodic Benefit Cost Total net periodic benefit cost was $1.1 million and $1.2 million for the three months ended September 30, 2018 and 2017, respectively, and $2.9 million and $3.5 million for the nine months ended September 30, 2018 and 2017, respectively. Prior to the Separation, our net periodic benefit costs included total net periodic benefit costs associated with plans accounted for as single-employer plans and an allocation from Dover Corporation for plans accounted for as multi-employer plans. After the Separation, total net periodic benefit costs include all costs associated with plans that we sponsor, including plans that transferred to Apergy as discussed above. Defined Contribution Retirement Plans We also offer defined contribution retirement plans which cover the majority of our U.S. employees and employees in certain other countries. Expense relating to our defined contribution plans was $2.5 million and $2.1 million for the three months ended September 30, 2018 and 2017, respectively and $7.2 million and $6.1 million for the nine months ended September 30, 2018 and 2017, respectively.

Segment Information

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

We report our results of operations in the following reporting segments: Production & Automation Technologies and Drilling Technologies. Segment revenue and segment operating profit were as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2018		2017		2018		2017
Segment revenue:
Production & Automation Technologies	$	241,214	$	199,454	$	696,591	$	578,429
Drilling Technologies	75,254		59,200		209,727		166,664
Total revenue	$	316,468	$	258,654	$	906,318	$	745,093

Income before income taxes:
Segment operating profit:
Production & Automation Technologies	$	24,257	$	8,403	$	57,957	$	26,247
Drilling Technologies	26,209		20,420		71,738		55,067
Total segment operating profit	50,466		28,823		129,695		81,314
Corporate expense and other ⁽¹⁾	6,664		1,818		16,274		6,838
Interest expense, net	10,584		79		16,813		199
Income before income taxes	$	33,218	$	26,926	$	96,608	$	74,277

_______________________


(1)	Corporate expense includes costs not directly attributable or allocated to our reporting segments such as corporate executive management and other administrative functions, costs related to our Separation from Dover Corporation and the results attributable to our noncontrolling interest.

New Accounting Standards New Accounting Standards (Policies)	9 Months Ended
	Sep. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Basis of presentation	Basis of Presentation Prior to the Separation, our results of operations, financial position and cash flows were derived from the consolidated financial statements and accounting records of Dover and reflect the combined historical results of operations, financial position and cash flows of certain Dover entities conducting its upstream oil and gas energy business within Dover’s Energy segment, including an allocated portion of Dover’s corporate costs. These financial statements have been presented as if such businesses had been combined for all periods prior to the Separation. All intercompany transactions and accounts within Dover were eliminated. The assets and liabilities were reflected on a historical cost basis since all of the assets and liabilities presented were wholly owned by Dover and were transferred within the Dover consolidated group. The statements of income also include expense allocations for certain corporate functions historically performed by Dover and not allocated to its operating segments, including corporate executive management, human resources, information technology, facilities, tax, shared services, finance and legal, including the costs of salaries, benefits and other related costs. These expense allocations were based on direct usage or benefit where identifiable, with the remainder allocated on the basis of revenue, headcount or other measures. These pre-Separation combined financial statements may not include all of the actual expenses that would have been incurred had we been a stand-alone public company during the periods presented prior to the Separation and consequently may not reflect our results of operations, financial position and cash flows had we been a stand-alone public company during the periods presented prior to the Separation. Actual costs that would have been incurred if we had been a stand-alone public company would depend on a variety of factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. Prior to the Separation, transactions between Apergy and Dover, with the exception of transactions discussed in Note 3 —Related Party Transactions, are reflected in the condensed combined balance sheet as of December 31, 2017, as part of “Net parent investment in Apergy” and in the condensed combined statements of cash flows as a financing activity in “Distributions to Dover Corporation, net.” See Note 3 — Related Party Transactions for additional information. No portion of Dover’s third-party debt was historically held by an Apergy entity or was transferred to Apergy; therefore, no debt was included in the condensed combined balance sheet as of December 31, 2017, and no interest expense was presented in the condensed combined statement of income for the three and nine months ended September 30, 2017. Intercompany notes payable to Dover of $224.5 million as of December 31, 2017, were presented within “Net parent investment in Apergy” because the notes were not settled in cash. Accordingly, no interest expense related to intercompany debt was presented in the condensed combined statements of income for each of the periods presented prior to the Separation. Additionally, our U.S. cash was historically pooled to Dover through intercompany advances and consequently is not reflected on our condensed combined balance sheet as of December 31, 2017. All financial information presented after the Separation represents the consolidated results of operations, financial position and cash flows of Apergy. Accordingly, our results of operations and cash flows consist of the consolidated results of Apergy from May 9, 2018 to September 30, 2018, and the combined results of operations and cash flows for periods prior to May 9, 2018. Our balance sheet as of September 30, 2018, reflects the consolidated balances of Apergy while the December 31, 2017, balance sheet reflects the combined balances of the Dover upstream oil and gas energy businesses that were transferred to Apergy. Our management believes the assumptions underlying these condensed consolidated financial statements, including the assumptions regarding the allocation of corporate expenses from Dover for periods prior to the Separation, are reasonable. The legal transfer of the upstream oil and gas energy businesses from Dover to Apergy occurred on May 9, 2018; however, for ease of reference, and unless otherwise stated or the context otherwise requires, all references to “Apergy Corporation,” “Apergy,” “we,” “us” or “our” refer (i) prior to the Separation, to the Apergy businesses, consisting of entities, assets and liabilities conducting the upstream oil and gas business within Dover’s Energy segment and (ii) after the Separation, to Apergy Corporation and its consolidated subsidiaries. Interim Financial Information The accompanying unaudited condensed consolidated financial statements of Apergy have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC pertaining to interim financial information. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted. Therefore, these financial statements should be read in conjunction with the audited combined financial statements, and notes thereto, in the Information Statement included in Amendment No. 1 to the Form 10 filed with the SEC on April 12, 2018. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from our estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments unless otherwise specified) necessary for a fair statement of our financial condition and results of operations as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these financial statements may not be representative of the results that may be expected for the year ending December 31, 2018.
Reclassifications	Reclassifications Beginning in the first quarter of 2018, we changed our presentation of expenditures related to purchases of leased assets. Previously, these amounts were reported in the operating section of our cash flow statement as “other” in adjustments to reconcile net income but are now reported as changes in our operating assets and liabilities in the operating section of our cash flow statement as “leased assets and other.” During the first quarter of 2018, we changed our presentation of amortization expense primarily related to customer intangible assets. For the three and nine months ended September 30, 2017, we reclassified $11.0 million and $32.1 million of amortization expense previously reported as a component of “selling, general and administrative expense” to “cost of goods and services” on our condensed combined statements of income. During the second quarter of 2018, we changed our presentation of capital lease obligations. As of December 31, 2017, we reclassified $3.7 million of capital lease obligations previously reported as “other long-term liabilities” to “long-term debt” on our condensed combined balance sheet. Certain prior-year amounts have been reclassified to conform to the current year presentation. See Note 2 — New Accounting Standards for additional information.
Recently Adopted and Issued Accounting Standards	Recently Issued Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This update requires that a lessee recognize in the statement of financial position a liability for future lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Similar to current guidance, the update continues to differentiate between finance leases and operating leases; however, this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. Additionally, lessors will be required to classify leases as sales-type, finance or operating, with classification affecting the pattern of income recognition. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. The guidance will be effective for us on January 1, 2019. Early adoption is permitted. We will adopt this standard on January 1, 2019, using the modified retrospective method, which will result in a cumulative catch-up adjustment to retained earnings. After the Separation from Dover, we developed a project plan and established a cross-functional team to continue the process of implementing the new guidance, which included an evaluation of the work performed by Dover prior to the Separation. We made progress on our plan including gathering information on all leases, surveying our businesses, assessing our portolfio of leases and compiling a central repository of active leases. During the third quarter of 2018, we completed diagnostic reviews of certain sampled leases to support our policy elections. Additionally, we made significant progress configuring and implementing a new lease software system. We continue to evaluate our policy elections and considerations under the new lease guidance, including the potential use of practical expedients, and we are in the process of updating our internal control and business processes. As we continue to assess the impact the guidance will have on our financial statements and related disclosures, internal control over financial reporting and other business practices and processes, we expect to recognize right of use assets and liabilities for operating leases in our consolidated balance sheet upon adoption. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The update amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which may result in earlier recognition of losses related to financial instruments. The guidance will be effective for us on January 1, 2020. Early adoption is permitted for annual periods beginning after December 15, 2018. We do not expect the adoption of this ASU to have a material impact on our financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for interim and annual periods beginning on January 1, 2020, with early adoption permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are in the process of assessing the impacts of the guidance will have on our financial statements.

Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Schedule of earnings per share, basic and diluted

A reconciliation of the number of shares used for the basic and diluted earnings per share calculation was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except per share data)	2018		2017		2018		2017
Net income attributable to Apergy	$	25,263	$	18,421	$	71,989	$	50,444

Weighted-average number of shares outstanding	77,340		77,340		77,340		77,340
Dilutive effect of stock-based compensation	229		550		402		550
Total shares and dilutive securities	77,569		77,890		77,742		77,890

Basic earnings per share attributable to Apergy	$	0.33	$	0.24	$	0.93	$	0.65
Diluted earnings per share attributable to Apergy	$	0.33	$	0.24	$	0.93	$	0.65

Inventories (Tables)

9 Months Ended

Sep. 30, 2018

Inventory, Net [Abstract]

Components of Inventory

Inventories consisted of the following:



(in thousands)	September 30, 2018			December 31, 2017
Raw materials	$	48,735		$	45,408
Work in progress	11,130			10,879
Finished goods	184,871			167,416
	244,736			223,703
LIFO and valuation adjustments	(25,603		)	(22,112		)
Inventories, net	$	219,133		$	201,591

Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2018

Property, Plant and Equipment [Abstract]

Components of property, plant and equipment, net

Property, plant and equipment consisted of the following:



(in thousands)	September 30, 2018			December 31, 2017
Land	$	13,623		$	13,557
Buildings and improvements	104,026			99,233
Machinery, equipment and other	501,148			446,261
	618,797			559,051
Accumulated depreciation	(382,730		)	(347,219		)
Property, plant and equipment, net	$	236,067		$	211,832

Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The carrying amount, including changes therein, of goodwill by reporting segment was as follows:



(in thousands)	Production & Automation Technologies			Drilling Technologies		Total
December 31, 2017	$	808,952		$	101,136	$	910,088
Purchase price adjustment ^*	(53		)	—		(53		)
Foreign currency translation	(3,269		)	—		(3,269		)
September 30, 2018	$	805,630		$	101,136	$	906,766

_______________________

* Purchase price adjustment related to our 2017 acquisition of PCP Oil Tools S.A. and Ener Tools S.A.

Schedule of Intangible Assets

The components of our definite- and indefinite-lived intangible assets were as follows:



	September 30, 2018						December 31, 2017
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Definite-lived intangible assets:
Customer intangibles	$	569,832	$	309,355	$	260,477	$	572,415	$	276,655	$	295,760
Trademarks	36,307		20,648		15,659		36,312		17,821		18,491
Patents	38,514		22,959		15,555		38,679		20,449		18,230
Unpatented technologies	9,700		9,700		—		9,700		9,700		—
Drawings and manuals	3,047		2,163		884		3,067		2,109		958
Other	5,346		4,124		1,222		5,382		3,911		1,471
	662,746		368,949		293,797		665,555		330,645		334,910
Indefinite-lived intangible assets:
Trademarks	3,600		—		3,600		3,600		—		3,600
Total	$	666,346	$	368,949	$	297,397	$	669,155	$	330,645	$	338,510

Debt (Tables)

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Schedule of Debt

Long-term debt consisted of the following:



(in thousands)	September 30, 2018			December 31, 2017
Revolving credit facility	$	—		$	—
Term loan facility	395,000			—
6.375% Senior Notes due 2026	300,000			—
Capital leases	4,337			3,742
Total	699,337			3,742
Net unamortized discounts and issuance costs	(11,794		)	—
Total long-term debt	$	687,543		$	3,742

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss consisted of the following:



(in thousands)	Foreign Currency Translation			Defined Pension and Other Post-Retirement Benefits			Accumulated Other Comprehensive Loss
December 31, 2017	$	(21,935	)	$	(4,480	)	$	(26,415	)
Reclassification adjustment for cumulative effect of change in accounting principle	—			(1,315		)	(1,315		)
Net transfer from Dover Corporation	—			(2,421		)	(2,421		)
Other comprehensive income (loss) before reclassifications, net of tax	(9,080		)	170			(8,910		)
Reclassification adjustment for net losses (gains) included in net income, net of tax	—			534			534
Other comprehensive income (loss), net of tax	(9,080		)	704			(8,376		)
September 30, 2018	$	(31,015	)	$	(7,512	)	$	(38,527	)

Reclassification Out of Accumulated Other Comprehensive Loss

Reclassification adjustments from accumulated other comprehensive loss to net income related to defined pension and other post-retirement benefits consisted of the following:



	Three Months Ended						Nine Months Ended						Affected line items on the condensed consolidated statements of income
	September 30,						September 30,
(in thousands)	2018			2017			2018			2017
Amortization of actuarial loss ⁽¹⁾	$	116		$	100		$	243		$	299		Other expense, net
Settlement loss ⁽¹⁾	484			—			484			—			Selling, general and administrative expense
Total before tax	600			100			727			299			Income before income taxes
Tax benefit	(161		)	(35		)	(192		)	(102		)	Provision for income taxes
	$	439		$	65		$	535		$	197		Net income

Revenue (Tables)

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

Revenue disaggregated by end market in each of our reporting segments was as follows:



	Three Months Ended			Nine Months Ended
(in thousands)	September 30, 2018			September 30, 2018
Drilling Technologies	$	75,254		$	209,727
Production & Automation Technologies:
Artificial lift	188,005			544,566
Digital products	31,114			85,347
Other production equipment	22,380			68,922
Intra-segment eliminations	(285		)	(2,244		)
	241,214			696,591
Total revenue	$	316,468		$	906,318

Revenue disaggregated by geography was as follows:



	Three Months Ended		Nine Months Ended
(in thousands)	September 30, 2018		September 30, 2018
United States	$	252,747	$	713,373
Canada	20,759		58,639
Middle East	13,645		40,091
Europe	7,625		27,805
Latin America	8,364		25,097
Asia-Pacific	3,715		13,900
Other	9,613		27,413
Total revenue	$	316,468	$	906,318

Schedule of Contract Balances

Contract assets and contract liabilities from contracts with customers were as follows:



(in thousands)	September 30, 2018		January 1, 2018
Contract assets	$	3,475	$	4,733
Contract liabilities - current	6,827		4,487

Restructuring and Other Related Charges (Tables)

9 Months Ended

Sep. 30, 2018

Restructuring [Abstract]

Schedule of Restructuring and Related Costs

Restructuring and other related charges as classified in our condensed consolidated statements of income were as follows:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands)	2018			2017			2018		2017
Cost of goods and services	$	(33	)	$	(16	)	$	1,557	$	(17	)
Selling, general and administrative expense	(6		)	24			916		38
Total	$	(39	)	$	8		$	2,473	$	21

Equity and Cash Incentive Program (Tables)

9 Months Ended

Sep. 30, 2018

Share-based Compensation [Abstract]

Schedule of Stock-Based Compensation Expense

Stock-based compensation expense relating to all stock-based incentive plans was as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Stock-based compensation expense	$	1,768		$	630		$	3,129		$	1,762
Tax benefit	(421		)	(219		)	(717		)	(611		)
Stock-based compensation expense, net of tax	$	1,347		$	411		$	2,412		$	1,151

Segment Information (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segment revenue and operating profit

Segment revenue and segment operating profit were as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2018		2017		2018		2017
Segment revenue:
Production & Automation Technologies	$	241,214	$	199,454	$	696,591	$	578,429
Drilling Technologies	75,254		59,200		209,727		166,664
Total revenue	$	316,468	$	258,654	$	906,318	$	745,093

Income before income taxes:
Segment operating profit:
Production & Automation Technologies	$	24,257	$	8,403	$	57,957	$	26,247
Drilling Technologies	26,209		20,420		71,738		55,067
Total segment operating profit	50,466		28,823		129,695		81,314
Corporate expense and other ⁽¹⁾	6,664		1,818		16,274		6,838
Interest expense, net	10,584		79		16,813		199
Income before income taxes	$	33,218	$	26,926	$	96,608	$	74,277

_______________________


(1)	Corporate expense includes costs not directly attributable or allocated to our reporting segments such as corporate executive management and other administrative functions, costs related to our Separation from Dover Corporation and the results attributable to our noncontrolling interest.

Basis of Presentation and Separation Separation and Distribution (Details)	May 09, 2018 USD ($) shares	May 03, 2018 USD ($)	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Conversion ratio	0.5
Number of companies separated	2
Common stock issued (in shares) \| shares	77,339,828
Tax matters agreement, minimum percentage change in stock ownership	40.00%
Principal amount of debt issued	$ 715,000,000
Business separation payment	700,000,000	$ 700,000,000
Intercompany notes payable			$ 224,500,000
Term Loan Facility
Debt Instrument [Line Items]
Principal amount of debt issued	$ 415,000,000
6.375% Senior Notes Due May 2026 \| Senior Notes
Debt Instrument [Line Items]
Principal amount of debt issued		$ 300,000,000

Basis of Presentation and Separation Basis of Presentation (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Sep. 30, 2017
Selling, General and Administrative Expenses [Member]
Prior Period Reclassification Adjustment		$ 11.0	$ 32.1
Other Noncurrent Liabilities [Member]
Prior Period Reclassification Adjustment	$ 3.7

New Accounting Standards New Accounting Standards (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting changes (Note 2)	$ 1,300
Accounting Standards Update 2016-15
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting changes (Note 2)	9,600
Net Parent Investment in Apergy
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting changes (Note 2)	$ 1,315

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Related party transaction, selling, general and administrative expenses from transactions with related party	$ 4,700	$ 7,400	$ 16,500
Payments of ordinary dividends, noncontrolling interest		$ 2,720	1,212
Non-controlling Interest
Related party transaction, commission rate		5.00%
Royalty Agreements [Member]
Related party transaction, expenses from transactions with related party	$ 2,500	$ 2,300	$ 7,400

Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

9 Months Ended

May 09, 2018

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2018

Sep. 30, 2017

Earnings Per Share [Abstract]

Common stock issued (in shares)

77,339,828

Net income attributable to Apergy

$ 25,263

$ 18,421

$ 71,989

$ 50,444

Weighted-average number of shares outstanding

^[1]

77,340,000

Dilutive effect of stock-based compensation

229,000

550,000

402,000

550,000

Total shares and dilutive securities

^[1]

77,569,000

77,890,000

77,742,000

77,890,000

Basic earnings per share attributable to Apergy (in dollars per share)

^[1]

$ 0.33

$ 0.24

$ 0.93

$ 0.65

Diluted earnings per share attributable to Apergy (in dollars per share)

^[1]

$ 0.33

$ 0.24

$ 0.93

$ 0.65

[1]	See Note 4 — Earnings Per Share

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
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-Name Accounting Standards Codification
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+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Inventory, Net [Abstract]
Raw materials	$ 48,735	$ 45,408
Work in progress	11,130	10,879
Finished goods	184,871	167,416
Subtotal	244,736	223,703
LIFO and valuation adjustments	(25,603)	(22,112)
Inventories, net	$ 219,133	$ 201,591

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Transfers from inventory	$ 42,500
Cost	618,797	$ 559,051
Accumulated depreciation	(382,730)	(347,219)
Property, plant and equipment, net	236,067	211,832
Land [Member]
Property, Plant and Equipment [Line Items]
Cost	13,623	13,557
Buildings and improvements [Member]
Property, Plant and Equipment [Line Items]
Cost	104,026	99,233
Machinery, equipment and other [Member]
Property, Plant and Equipment [Line Items]
Cost	$ 501,148	$ 446,261

Goodwill and Intangible Assets - Goodwill (Details) - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2018

Dec. 31, 2017

Goodwill [Roll Forward]

Purchase price adjustments

$ 906,766

$ 910,088

^[1]

(53)

Foreign currency translation

(3,269)

Production and Automation Technologies [Member]

906,766

Goodwill [Roll Forward]

Purchase price adjustments

805,630

808,952

^[1]

(53)

Foreign currency translation

(3,269)

Drilling Technologies [Member]

805,630

Goodwill [Roll Forward]

Purchase price adjustments

101,136

$ 101,136

^[1]

Foreign currency translation

$ 101,136

[1]	Purchase price adjustment related to our 2017 acquisition of PCP Oil Tools S.A. and Ener Tools S.A.

Goodwill and Intangible Assets - Intangible Assets and Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Intangible Assets [Line Items]
Gross carrying amount	$ 662,746	$ 665,555
Accumulated amortization	368,949	330,645
Finite-lived intangible assets, net	293,797	334,910
Intangible assets, gross (excluding goodwill)	666,346	669,155
Intangible assets, net	297,397	338,510
Trademarks [Member]
Intangible Assets [Line Items]
Accumulated amortization	0	0
Indefinite-lived Intangible Assets (excluding goodwill)	3,600	3,600
Customer Intangibles [Member]
Intangible Assets [Line Items]
Gross carrying amount	569,832	572,415
Accumulated amortization	309,355	276,655
Finite-lived intangible assets, net	260,477	295,760
Trademarks [Member]
Intangible Assets [Line Items]
Gross carrying amount	36,307	36,312
Accumulated amortization	20,648	17,821
Finite-lived intangible assets, net	15,659	18,491
Patents [Member]
Intangible Assets [Line Items]
Gross carrying amount	38,514	38,679
Accumulated amortization	22,959	20,449
Finite-lived intangible assets, net	15,555	18,230
Unpatented Technologies [Member]
Intangible Assets [Line Items]
Gross carrying amount	9,700	9,700
Accumulated amortization	9,700	9,700
Finite-lived intangible assets, net	0	0
Drawings and Manuals [Member]
Intangible Assets [Line Items]
Gross carrying amount	3,047	3,067
Accumulated amortization	2,163	2,109
Finite-lived intangible assets, net	884	958
Other Intangible Assets [Member]
Intangible Assets [Line Items]
Gross carrying amount	5,346	5,382
Accumulated amortization	4,124	3,911
Finite-lived intangible assets, net	$ 1,222	$ 1,471

Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Capital leases	$ 4,337	$ 3,742
Total	699,337	3,742
Net unamortized discounts and issuance costs	(11,794)	0
Total long-term debt	687,543	3,742
Long-term debt, less current portion	687,543	3,742
Line of Credit
Debt Instrument [Line Items]
Long-term debt, gross	0	0
Term Loan Facility
Debt Instrument [Line Items]
Long-term debt, gross	395,000	0
Senior Notes \| 6.375% Senior Notes Due May 2026
Debt Instrument [Line Items]
Long-term debt, gross	$ 300,000	$ 0

Debt (Details)			9 Months Ended
Debt (Details)	May 09, 2018 USD ($)	May 03, 2018 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)
Debt Instrument [Line Items]
Principal amount of debt issued	$ 715,000,000
Proceeds from long-term debt, net of discounts			$ 713,963,000	$ 0
Cash payment to Dover	(700,000,000)	$ (700,000,000)
Registration right agreement term, point before annual interest rate increase		1 year
Senior Notes \| 6.375% Senior Notes Due May 2026
Debt Instrument [Line Items]
Principal amount of debt issued		$ 300,000,000
Debt interest rate		6.375%
Proceeds from long-term debt, net of discounts		$ 293,800,000
Redemption price, percentage of principal amount of debt		100.00%
Term Loan Facility
Debt Instrument [Line Items]
Principal amount of debt issued	$ 415,000,000
JP Morgan Chase Bank, N.A. \| Credit Agreement
Debt Instrument [Line Items]
Minimum interest coverage ratio	2.75
JP Morgan Chase Bank, N.A. \| Term Loan Facility
Debt Instrument [Line Items]
Principal amount of debt issued	$ 415,000,000
Debt instrument, term	7 years
Proceeds from issuance of debt	$ 408,700,000
Mandatory amortization payment, percent per annum	1.00%
Mandatory prepayments, percent of net cash proceeds	100.00%
Mandatory prepayments, percent of net cash proceeds, step down one	75.00%
Mandatory prepayments, percent of net cash proceeds, step down two	50.00%
Mandatory prepayment in excess of cash flow	50.00%
Mandatory prepayment in excess of cash flow, step down one	25.00%
Mandatory prepayment in excess of cash flow, step down two	0.00%
JP Morgan Chase Bank, N.A. \| Line of Credit
Debt Instrument [Line Items]
Debt instrument, term	5 years
Maximum borrowing capacity	$ 250,000,000
Fiscal Quarter Ending June 30, 2019 \| JP Morgan Chase Bank, N.A. \| Credit Agreement
Debt Instrument [Line Items]
Maximum total leverage ratio	4.00
Fiscal Quarter Ending June 30, 2020 \| JP Morgan Chase Bank, N.A. \| Credit Agreement
Debt Instrument [Line Items]
Maximum total leverage ratio	3.75
After Fiscal Quarter Ending June 30, 2020 \| JP Morgan Chase Bank, N.A. \| Credit Agreement
Debt Instrument [Line Items]
Maximum total leverage ratio	3.50
Letter of Credit \| JP Morgan Chase Bank, N.A. \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 50,000,000

Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ 1,635,285
Net transfer from Dover Corporation			(738,970)
Other comprehensive income (loss)	$ (76)	$ 5,370	(8,376)	$ 7,094
Ending balance	962,547		962,547
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(26,415)
Reclassification adjustment for cumulative effect of change in accounting principle					$ (1,315)
Net transfer from Dover Corporation			(2,421)
Other comprehensive income (loss) before reclassifications, net of tax			(8,910)
Reclassification adjustment for net losses (gains) included in net income, net of tax			534
Other comprehensive income (loss)			(8,376)
Ending balance	(38,527)		(38,527)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(21,935)
Reclassification adjustment for cumulative effect of change in accounting principle					0
Net transfer from Dover Corporation			0
Other comprehensive income (loss) before reclassifications, net of tax			(9,080)
Reclassification adjustment for net losses (gains) included in net income, net of tax			0
Other comprehensive income (loss)			(9,080)
Ending balance	(31,015)		(31,015)
Defined Pension and Other Post-Retirement Benefits
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(4,480)
Reclassification adjustment for cumulative effect of change in accounting principle					$ (1,315)
Net transfer from Dover Corporation			(2,421)
Other comprehensive income (loss) before reclassifications, net of tax			170
Reclassification adjustment for net losses (gains) included in net income, net of tax			534
Other comprehensive income (loss)			704
Ending balance	$ (7,512)		$ (7,512)

Accumulated Other Comprehensive Loss - Reclassification Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of actuarial loss	$ 202,734	$ 173,880	$ 594,605	$ 500,329
Settlement loss	69,022	54,828	194,568	162,359
Total before tax	(33,218)	(26,926)	(96,608)	(74,277)
Tax benefit	7,723	8,241	24,324	22,973
Net income	(25,263)	(18,421)	(71,989)	(50,444)
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of actuarial loss	116	100	243	299
Settlement loss	484	0	484	0
Total before tax	600	100	727	299
Tax benefit	(161)	(35)	(192)	(102)
Net income	$ 439	$ 65	$ 535	$ 197

Reconciliation from Segment Totals to Consolidated [Abstract]

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Commitments and Contingencies (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Letters of Credit Outstanding, Amount	$ 5.5	$ 8.1

Revenue - Narrative (Details)	9 Months Ended
Revenue - Narrative (Details)	Sep. 30, 2018
Long-term Contract with Customer [Member]
Disaggregation of Revenue [Line Items]
Contract term	1 year
Minimum [Member]
Disaggregation of Revenue [Line Items]
Payment terms	30 days
Maximum [Member]
Disaggregation of Revenue [Line Items]
Payment terms	90 days
Lease Revenue [Member]
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	3.00%
Other Revenue [Member]
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	1.00%
Product [Member] \| Sales Revenue, Net [Member]
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	89.00%
Service [Member] \| Sales Revenue, Net [Member]
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	7.00%

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 316,468	$ 258,654	$ 906,318	$ 745,093
UNITED STATES
Disaggregation of Revenue [Line Items]
Revenue	252,747		713,373
CANADA
Disaggregation of Revenue [Line Items]
Revenue	20,759		58,639
Middle East [Member]
Disaggregation of Revenue [Line Items]
Revenue	13,645		40,091
Europe [Member]
Disaggregation of Revenue [Line Items]
Revenue	7,625		27,805
Latin America [Member]
Disaggregation of Revenue [Line Items]
Revenue	8,364		25,097
Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Revenue	3,715		13,900
Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	9,613		27,413
Drilling Technologies [Member]
Disaggregation of Revenue [Line Items]
Revenue	75,254	59,200	209,727	166,664
Production and Automation Technologies [Member]
Disaggregation of Revenue [Line Items]
Revenue	241,214	$ 199,454	696,591	$ 578,429
Production and Automation Technologies [Member] \| Intersegment Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue	(285)		(2,244)
Production and Automation Technologies [Member] \| Artificial Lift Technologies [Member]
Disaggregation of Revenue [Line Items]
Revenue	188,005		544,566
Production and Automation Technologies [Member] \| Automation Technologies [Member]
Disaggregation of Revenue [Line Items]
Revenue	31,114		85,347
Production and Automation Technologies [Member] \| Other Production Equipment [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 22,380		$ 68,922

Revenue - Contract Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jan. 01, 2018
Revenue from Contract with Customer [Abstract]
Contract assets	$ 3,475	$ 4,733
Contract liabilities - current	$ 6,827	$ 4,487

Restructuring and Other Related Charges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ (39)	$ 8	$ 2,473	$ 21
Restructuring Reserve	1,500		1,500		$ 2,600
Cost of Sales [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(33)	(16)	1,557	(17)
Selling, General and Administrative Expenses [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ (6)	$ 24	$ 916	$ 38

Income Taxes (Details)	3 Months Ended		9 Months Ended		12 Months Ended
Income Taxes (Details)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 21, 2017
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	23.20%	30.60%	25.20%	30.90%
Effective income tax rate, federal statutory income tax rate (as a percent)			21.00%		35.00%

Fair Value Measurements (Details) - USD ($)	Sep. 30, 2018	May 09, 2018	May 03, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Principal amount of debt issued		$ 715,000,000
Senior Notes \| 6.375% Senior Notes Due May 2026
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Principal amount of debt issued			$ 300,000,000
Senior Notes \| 6.375% Senior Notes Due May 2026 \| Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Principal amount of debt issued	$ 300,000,000
Debt, fair value	308,600,000
Term Loan Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Principal amount of debt issued		415,000,000
Term Loan Facility \| Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Principal amount of debt issued	395,000,000
Debt, fair value	$ 397,000,000
JP Morgan Chase Bank, N.A. \| Term Loan Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Principal amount of debt issued		$ 415,000,000

Equity and Cash Incentive Program (Details) - USD ($) shares in Thousands, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, number of shares authorized		6,500		6,500
Stock-based compensation expense [Abstract]
Stock-based compensation expense		$ 1,768	$ 630	$ 3,129	$ 1,762
Tax benefit		(421)	(219)	(717)	(611)
Stock-based compensation expense, net of tax		$ 1,347	$ 411	$ 2,412	$ 1,151
Stock Appreciation Rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				3 years
Expiration period				10 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, other than options, issued during period (in shares)	352
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, other than options, issued during period (in shares)	87

Employee Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	May 09, 2018
Defined Benefit Plan Disclosure [Line Items]
Liabilities recognized at the Separation					$ 6.1
Accumulated other comprehensive loss recognized at the Separation			$ 2.4
Net periodic benefit cost	$ 1.1	$ 1.2	2.9	$ 3.5
Expense related to defined contribution plans	$ 2.5	$ 2.1	$ 7.2	$ 6.1

Segment Information (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2018

Sep. 30, 2017

Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract]

$ 316,468

$ 258,654

$ 906,318

$ 745,093

Production and Automation Technologies [Member]

33,218

26,926

96,608

74,277

Reconciliation from Segment Totals to Consolidated [Abstract]

Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract]

241,214

199,454

696,591

578,429

Drilling Technologies [Member]

24,257

8,403

57,957

26,247

Reconciliation from Segment Totals to Consolidated [Abstract]

Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract]

75,254

59,200

209,727

166,664

Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract]

26,209

20,420

71,738

55,067

Total segments [Member]

Corporate expense / other [Member]

50,466

28,823

129,695

81,314

Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract]

Interest Expense [Member]

^[1]

(6,664)

(1,818)

(16,274)

(6,838)

Reconciliation of Earnings from Continuing Operations from Segments to Consolidated [Abstract]