View Filing Data

$ 48,020

$ 27,411

$ 27,074

$ 311,202

$ 316,468

$ 305,850

$ 283,126

$ 265,195

$ 258,832

$ 256,161

$ 230,278

1,216,646

1,010,466

^[2]

751,337

^[2]

800,347

689,990

556,066

105,271

113,734

103,680

93,614

75,534

84,952

84,630

75,360

416,299

320,476

195,271

262,625

218,558

204,383

27,440

753

477

2,943

10,377

9,354

123,291

90,788

(18,943)

28,796

(21,876)

(8,043)

Net income attributable to noncontrolling interest

22,732

^[3]

25,494

^[3]

22,075

^[3]

24,194

^[3]

61,225

^[3]

18,820

^[3]

19,033

^[3]

13,586

^[3]

94,495

112,664

(10,900)

454

930

1,851

Earnings (loss) per share attributable to Apergy:

$ 22,571

^[3]

$ 25,263

^[3]

$ 22,155

^[3]

$ 24,052

^[3]

$ 61,155

^[3]

$ 18,556

^[3]

$ 18,754

^[3]

$ 13,269

^[3]

$ 94,041

$ 111,734

$ (12,751)

Basic (in dollars per share)

$ 0.29

^[4]

$ 0.33

^[4]

$ 0.29

^[4]

$ 0.31

^[4]

$ 0.79

^[4]

$ 0.24

^[4]

$ 0.24

^[4]

$ 0.17

^[4]

$ 1.22

^[5]

$ 1.44

^[5]

$ (0.16)

^[5]

Diluted (in dollars per share)

$ 0.29

^[4]

$ 0.33

^[4]

$ 0.28

^[4]

$ 0.31

^[4]

$ 0.79

^[4]

$ 0.24

^[4]

$ 0.24

^[4]

$ 0.17

^[4]

$ 1.21

^[5]

$ 1.43

^[5]

$ (0.16)

^[5]

Weighted-average shares outstanding:

Basic (in shares)

^[5]

77,342

77,340

Diluted (in shares)

^[5]

77,692

77,890

77,340

Product revenue

$ 1,085,471

$ 919,669

$ 673,447

Service revenue

Statement of Comprehensive Income [Abstract]

$ 83,155

$ 63,386

$ 50,816

[1]	We revised our previously issued financial statements to correct immaterial errors. See Note 1 for additional information.
[2]	Revenue for the years ended December 31, 2017 and 2016, are presented in accordance with accounting standards in effect prior to our adoption of ASU No. 2014-09 on January 1, 2018. See Note 2 for further discussion regarding our adoption of ASU No. 2014-09.
[3]	Includes a net tax benefit related to the Tax Reform Act during the three months ended December 31, 2017. See Note 15—Income Taxes for additional information.
[4]	On May 9, 2018, 77,339,828 shares of our common stock were distributed to Dover stockholders in conjunction with the Separation. For comparative purposes, 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 with positive income prior to Separation.
[5]	See Note 4—Earnings Per Share.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Other comprehensive income (loss), net of tax:

$ 94,495

$ 112,664

$ (10,900)

Foreign currency translation adjustments

^[1]

(14,210)

4,385

925

Pension and other post-retirement benefit plans:

Net actuarial gain (loss) arising during period

856

2,598

(123)

Reclassification adjustment for net actuarial loss included in net income

247

257

234

Reclassification adjustment for prior service costs included in net income

Reclassification adjustment for settlement losses included in net income

353

Total pension and other post-retirement benefit plans

^[2]

1,456

2,856

112

Other comprehensive income (loss)

(12,754)

7,241

1,037

Comprehensive income (loss)

81,741

119,905

(9,863)

Comprehensive income attributable to noncontrolling interest

454

930

1,851

$ 81,287

$ 118,975

$ (11,714)

[1]	Net of income tax (expense) benefit of nil for the years ended December 31, 2018, 2017 and 2016, respectively.
[2]	Net of income tax (expense) benefit of $352, $971 and $42 for the years ended December 31, 2018, 2017 and 2016, respectively.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax	$ 0	$ 0	$ 0
Pension and other post-retirement benefit plans, tax	$ 352	$ 971	$ 42

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 41,832	$ 23,712
Receivables, net of allowances of $5,178 in 2018 and $4,753 in 2017	249,948	201,449
Inventories, net	218,319	201,402
Prepaid expenses and other current assets	20,211	14,912
Total current assets	530,310	441,475
Property, plant and equipment, net	244,328	213,562
Goodwill	904,985	910,088
Intangible assets, net	283,688	338,510
Other non-current assets	8,445	2,980
Total assets	1,971,756	1,906,615
Liabilities and Equity
Accounts payable	131,058	98,826
Accrued compensation and employee benefits	40,546	30,289
Accrued expenses and other current liabilities	30,391	21,375
Total current liabilities	201,995	150,490
Long-term debt	666,108	5,806
Deferred income taxes	101,724	96,985
Other long-term liabilities	20,402	12,949
Total liabilities	990,229	266,230
Stockholders’ equity:
Common stock (2.5 billion shares authorized, $0.01 par value) 2018—77.4 million shares issued and outstanding	774	0
Capital in excess of par value of common stock	965,372	0
Retained earnings	55,829	0
Net parent investment in Apergy	0	1,662,052
Accumulated other comprehensive loss	(42,906)	(26,416)
Total stockholders’ equity	979,069	1,635,636
Noncontrolling interest	2,458	4,749
Total equity	981,527	1,640,385
Total liabilities and equity	$ 1,971,756	$ 1,906,615

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands, shares in Millions	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 5,178	$ 4,753
Par value of common stock (in dollars per share)	$ 0.01
Common stock, shares authorized (in shares)	2,500.0
Common stock, shares issued (in shares)	77.4
Common stock, shares outstanding (in shares)	77.4

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash provided (required) by operating activities:
Net income (loss)	$ 94,495	$ 112,664	$ (10,900)
Adjustments to reconcile net income (loss) to net cash provided (required) by operating activities:
Depreciation	72,569	59,161	56,125
Amortization	51,892	53,701	55,987
Stock-based compensation	5,375	2,236	2,293
Gain on sale of fixed assets and business, net	(1,173)	(934)	(366)
Impairment of fixed assets	990	3,581	0
Deferred income taxes	1,914	(73,268)	(19,994)
Employee benefit plan expense	3,340	1,064	1,128
Other	5,563	(5,188)	(858)
Changes in operating assets and liabilities (net of effects of acquisitions and foreign exchange):
Receivables	(53,890)	(61,573)	26,898
Inventories	(38,708)	(14,015)	32,912
Prepaid expenses and other current assets	(5,422)	(5,116)	3,156
Accounts payable	35,185	29,802	(9,874)
Accrued compensation and employee benefits	8,454	5,616	(2,122)
Accrued expenses and other current liabilities	14,004	(311)	(1,387)
Leased assets and other	(30,688)	(31,370)	(7)
Net cash provided by operating activities	163,900	76,050	132,991
Cash provided (required) by investing activities:
Capital expenditures	(57,918)	(36,654)	(26,099)
Proceeds from sale of fixed assets	1,187	3,547	2,526
Proceeds from sale of business	2,473	0	0
Acquisition (net of cash and cash equivalents acquired)	0	(8,842)	0
Addition to intangible assets	0	0	(3,700)
Purchase price adjustments on acquisition	53	0	0
Net cash required by investing activities	(54,205)	(41,949)	(27,273)
Cash provided (required) by financing activities:
Proceeds from long-term debt, net of discounts	713,963	0	0
Payment of debt issue costs	(16,006)	0	0
Repayment of long-term debt	(45,000)	(599)	0
Distributions to Dover Corporation, net	(736,557)	(31,192)	(84,254)
Distribution to noncontrolling interest	(2,720)	(1,212)	(1,727)
Payment of capital lease obligations	(4,518)	(3,690)	(4,037)
Net cash required by financing activities	(90,838)	(36,693)	(90,018)
Effect of exchange rate changes on cash and cash equivalents	(737)	277	(90)
Net increase (decrease) in cash and cash equivalents	18,120	(2,315)	15,610
Cash and cash equivalents at beginning of period	23,712	26,027	10,417
Cash and cash equivalents at end of period	$ 41,832	$ 23,712	$ 26,027

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 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
Beginning Balance at Dec. 31, 2015	$ 1,644,993	$ 0	$ 0	$ 0	$ 1,674,559	$ (34,694)	$ 5,128
Net income (loss)	(10,900)				(12,751)		1,851
Other comprehensive income (loss)	1,037					1,037
Distributions to noncontrolling interest	(1,727)						(1,727)
Net transfers to/from Dover	(81,964)				(81,964)
Other	(221)						(221)
Ending Balance at Dec. 31, 2016	1,551,218	0	0	0	1,579,844	(33,657)	5,031
Net income (loss)	112,664				111,734		930
Other comprehensive income (loss)	7,241					7,241
Distributions to noncontrolling interest	(1,212)						(1,212)
Net transfers to/from Dover	(29,526)				(29,526)
Ending Balance at Dec. 31, 2017	1,640,385	0	0	0	1,662,052	(26,416)	4,749
Net income (loss)	94,495			55,829	38,212		454
Other comprehensive income (loss)	(12,754)					(12,754)
Distributions to noncontrolling interest	(2,720)						(2,720)
Net transfers to/from Dover	(742,690)				(740,269)	(2,421)
Other	(25)						(25)
Reclassification of net parent investment in Apergy	0		961,310		(961,310)
Issuance of common stock	0	773	(773)
Stock-based compensation	4,836	1	4,835
Ending Balance at Dec. 31, 2018	$ 981,527	$ 774	$ 965,372	$ 55,829	$ 0	$ (42,906)	$ 2,458

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies (Notes)

12 Months Ended

Dec. 31, 2018

Basis of Presentation and Summary of Significant Accounting Policies

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Apergy Corporation 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 offerings provide market leading polycrystalline diamond cutters and bearings that result in cost effective and efficient drilling.

Separation and Distribution

On April 18, 2018, the Dover Board of Directors approved the separation of entities conducting its upstream oil and gas energy business within Dover Corporation’s (“Dover”) 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.

Basis of Presentation

Our consolidated financial statements were prepared in U.S. dollars and in accordance with U.S. generally accepted accounting principles (“GAAP”).

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 (loss) 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 combined balance sheet as of December 31, 2017, as part of “Net parent investment in Apergy” and in the 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 third-party debt was included in the combined balance sheet as of December 31, 2017, and no interest expense was presented in the combined statements of income (loss) for each of the periods presented prior to the Separation. Intercompany notes payable to Dover of $224.5 million as of December 31, 2017, were presented within “Net parent investment in Apergy” in our combined balance sheet because the notes were not settled in cash. Accordingly, no interest expense related to intercompany debt was presented in the combined statements of income (loss) 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 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 December 31, 2018, and the combined results of operations and cash flows for periods prior to May 9, 2018. Our balance sheet as of December 31, 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 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.

Significant Accounting Policies

Use of estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Such estimates include, but are not limited to, net realizable value of inventories, pension and post-retirement plans, future cash flows associated with impairment testing of goodwill, indefinite-lived intangible assets and other long-lived assets, estimates related to income taxes and estimates related to contingencies.

Cash and cash equivalents—Cash equivalents are highly liquid, short-term investments with original maturities of three months or less from their date of purchase.

Receivables, net of allowances—An allowance for doubtful accounts is provided on receivables equal to the estimated uncollectible amounts. This estimate is based on historical collection experience, current economic and market conditions and a review of the current status of each customer’s trade accounts receivable.

Inventories—Inventories for the majority of our subsidiaries, including all international subsidiaries, are stated at the lower of cost, determined on the first-in, first-out (FIFO) basis, or net realizable value. Other domestic inventories are stated at the lower of cost, determined on the last-in, first-out (LIFO) basis, or market. Under the LIFO method, the cost assigned to items sold is based on the cost of the most recent items purchased. As a result, the costs of the first items purchased remain in inventory and are used to value ending inventory.

Property, plant and equipment—Property, plant and equipment is recorded at cost. Depreciation is provided on the straight-line basis over the estimated useful lives of our assets as follows: buildings and improvements 5 to 31.5 years; machinery and equipment 3 to 7 years; furniture and fixtures 3 to 7 years; vehicles 3 years; and software 3 to 10 years. Expenditures for maintenance and repairs are expensed as incurred. Gain and losses are realized upon the sale or disposition of assets and are recorded in selling, general and administrative expense on our consolidated statements of income (loss).

Impairment of property, plant and equipment—Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying value of the long-lived asset may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the impairment loss is measured as the amount by which the carrying value of the long-lived asset exceeds its fair value.

Goodwill and other intangible assets—Goodwill is not subject to amortization but is tested for impairment on an annual basis or more frequently if impairment indicators arise. We have established October 1st as the date of our annual test for impairment of goodwill. A quantitative test is used to determine the existence of goodwill impairment and the amount of the impairment loss at the reporting unit level. The quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. We use an income-based valuation method, determining the present value of estimated future cash flows, to estimate the fair value of a reporting unit. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to the reporting unit.

Our finite-lived acquired intangible assets are amortized on a straight-line basis over their estimated useful lives, which generally range from 5 to 15 years. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of the intangible asset may not be recoverable. The carrying amount of an intangible asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If it is determined that an impairment loss has occurred, the loss is measured as the amount by which the carrying amount of the intangible asset exceeds its fair value. We have one intangible asset with an indefinite life which is tested annually for impairment using an income-based valuation method.

Revenue Recognition—Prior to January 1, 2018, revenue was recognized when all of the following conditions were satisfied: a) persuasive evidence of an arrangement exists, b) price is fixed or determinable, c) collectability is reasonably assured and d) delivery has occurred or services have been rendered. Beginning in 2018, and in connection with the adoption of ASC Topic 606, revenue is recognized to depict the transfer of control of the related goods and services to the customer. 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.

The majority of our revenue is generated through the manufacture and sale of a broad range of specialized products and components, with revenue recognized upon transfer of title and risk of loss, which is generally upon shipment. Software product revenue is recorded when the software product is shipped to the customer or over the term of the contract on a subscription based model. Service revenue is recognized as the services are performed. Leasing revenue is recognized ratably over the lease term under current lease guidance and the leased asset is included in property, plant and equipment. In limited cases, revenue arrangements with customers require delivery, installation, testing, or other acceptance provisions to be satisfied before revenue is recognized.

Refer to Note 2 for additional information related to practical expedients and elections made under ASC Topic 606.

Shipping and handling costs—Shipping and handling costs are recorded as cost of goods and services in our consolidated statements of income (loss). Shipping and handling costs billed to customers are recorded as a component of revenue.

Stock-based compensation—Prior to the Separation, our employees participated in Dover’s stock-based compensation plans. Stock-based compensation was allocated to us by Dover based on the awards and terms previously granted to our employees.

The cost of stock-based awards is measured at the grant date and are based on the fair value of the award. At the time of grant, we estimate forfeitures, based on historical experience, in order to estimate the portion of the award that will ultimately vest. The value of the portion of the award that is expected to ultimately vest is recognized as expense on a straight-line basis, generally over the explicit service period and is included in selling, general and administrative expense in our consolidated statements of income (loss). Expense for awards granted to retirement-eligible employees is recorded over the period from the date of grant through the date the employee first becomes eligible to retire and is no longer required to provide service.

Employee benefit plans—Prior to the Separation, Apergy participated in defined benefit plans and non-qualified supplemental retirement plans sponsored by Dover that were accounted for as multi-employer plans in the consolidated financial statements. Apergy also sponsored a defined benefit plan and non-qualified plan during the pre-Separation period. These plans were accounted for as single employer plans in the consolidated financial statements.

Research and development costs—Research and development costs are expensed as incurred and amounted to $16.0 million, $18.5 million and $16.5 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Income Taxes—Prior to the Separation, our operations were historically included in Dover’s consolidated federal tax return and certain combined state returns. The income tax expense in our consolidated financial statements for these pre-Separation periods was determined on a stand-alone return basis which requires the recognition of income taxes using the liability method. Under this method, we assume to have historically filed a return separate from Dover, reporting our taxable income or loss and paying applicable tax based on our separate taxable income and associated tax attributes in each tax jurisdiction. Income taxes payable at December 31, 2017, computed under the stand-alone return basis are classified in “Net parent investment in Apergy” on our consolidated balance sheet since Dover is legally liable for the tax. Accordingly, changes in income taxes payable for periods prior to the Separation are presented as a component of financing activities in the statement of cash flows. The calculation of income taxes on the separate return basis requires considerable judgment and the use of both estimates and allocations. As a result, our effective tax rate and deferred tax balances will significantly differ from those in the periods prior to the Separation. Additionally, our deferred tax balances as calculated on the separate return basis will differ from the deferred tax balances of Dover.

The Tax Reform Act, enacted on December 22, 2017, significantly changed U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act reduced the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. The Tax Reform Act also provided for a one-time deemed repatriation of post-1986 undistributed foreign subsidiary earnings and profits through the year ended December 31, 2017. The Global Intangible Low-Taxed Income (“GILTI”) provisions require us to include in our U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. We have elected to account for GILTI tax in the period in which it is incurred, and therefore did not provide any deferred tax impacts of GILTI in our combined financial statements for the year ended December 31, 2017.

On December 22, 2017, the SEC staff issued guidance to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. We recognized the provisional tax impacts related to deemed repatriated earnings and the benefit for the revaluation of deferred tax assets and liabilities and included these amounts in our combined financial statements for the year ended December 31, 2017. In 2018, we did not make any adjustments to our estimates recorded in 2017 and finalized our accounting during the fourth quarter of 2018.

We record interest and penalties related to unrecognized tax benefits as a component of our provision for income taxes.

Earnings per share (“EPS”)—Basic EPS is computed using the weighted-average number of common shares outstanding during the year. We use the treasury stock method to compute diluted EPS which gives effect to the potential dilution of earnings that could have occurred if additional shares were issued for awards granted under our incentive compensation and stock plan. The treasury stock method assumes proceeds that would be obtained upon exercise of awards granted under our incentive compensation and stock plan are used to purchase outstanding common stock at the average market price during the period.

Fair value measurements—We record our financial assets and financial liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities, with the exception of certain assets and liabilities measured using the net asset value practical expedient, which are not required to be leveled. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:


•	Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.


•	Level 2: Observable inputs other than quoted prices included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.


•	Level 3: Unobservable inputs reflecting management’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

Derivative financial instruments—Prior to the Separation, we used derivative financial instruments to hedge our exposure to foreign currency exchange rate risk. For derivatives hedging the fair value of assets or liabilities, the changes in fair value of both the derivatives and the hedged items are recorded in earnings. We do not enter into derivative financial instruments for speculative purposes.

Foreign currency—Financial statements of operations for which the U.S. dollar is not the functional currency, and are located in non-highly inflationary countries, are translated into U.S. dollars prior to consolidation. Assets and liabilities are translated at the exchange rate in effect at the balance sheet date, while income statement accounts are translated at the weighted-average monthly exchange rates. For these operations, translation gains and losses are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity until the foreign entity is sold or liquidated. Assets and liabilities of an entity that are denominated in currencies other than an entity’s functional currency are remeasured into the functional currency using end of period exchange rates or historical rates when applicable to certain balances. Gains and losses related to these re-measurements are recorded in our consolidated statements of income (loss) as a component of “other expense, net”.

Revisions—We revised our previously issued financial statements for the years ended December 31, 2017 and December 31, 2016, to correct immaterial errors related to statement of cash flow presentation of capital leases, as well as other previously identified immaterial errors. The effect of the revisions on our statement of cash flows for the year ended December 31, 2017 was as follows: (i) cash provided by operating activities decreased $0.9 million from $76.9 million to $76.1 million, (ii) cash required by investing activities decreased $4.6 million from $46.5 million to $41.9 million, and (iii) cash required by financing activities increased $3.7 million from $33.0 million to $36.7 million. The effect of the revisions on our statement of cash flows for the year ended December 31, 2016 was as follows: (i) cash provided by operating activities increased $3.3 million from $129.7 million to $133.0 million, (ii) cash required by investing activities decreased $0.8 million from $28.0 million to $27.3 million, and (iii) cash required by financing activities increased $4.0 million from $86.0 million to $90.0 million.

The effect of the revision on our previously issued 2017 consolidated financial statements resulted in an increase to gross profit, income before income taxes and net income of $2.0 million, $1.5 million, and $1.1 million, respectively. In addition, total assets and total liabilities increased by $1.8 million and $1.9 million, respectively, with a decrease to total equity of $0.1 million. The effect of the revision on our previously issued 2016 consolidated financial statements was immaterial.

We evaluated the materiality of the correction in accordance with GAAP and other guidance of the SEC and concluded the errors are immaterial to all prior periods impacted. While the adjustments were immaterial, we elected to revise our previously reported amounts.

Reclassifications—Certain prior-year amounts have been reclassified to conform to the current year presentation.

New Accounting Standards

12 Months Ended

Dec. 31, 2018

Accounting Changes and Error Corrections [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 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 consolidated statements of income (loss). 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.” This update clarifies how certain cash receipts and cash payments should be presented and classified in the statement of cash flows. Specifically, the 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 years ended December 31, 2017 and 2016, the impact of this adoption resulted in a $14.5 million and $1.1 million increase in net cash provided by operating activities and a corresponding increase to net cash required by investing activities on our statements 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. 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 year ended December 31, 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 consolidated statements of income (loss).


•	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.

•

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 13—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 became effective for us on January 1, 2019. Early adoption is permitted. We adopted 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 have completed our plan including gathering information on all leases, surveying our businesses, assessing our portfolio of leases and compiling a central repository of active leases. During 2018, we completed diagnostic reviews of certain sampled leases to support our policy elections. Additionally, we have configured and implemented a new lease software system. We expect $30 million to $35 million of operating leases to be recorded on our consolidated balance sheet at adoption. We have evaluated our policy elections and considerations under the new lease guidance, including the use of practical expedients. We will elect to utilize the package of transition practical expedients. Additionally, for new leases we will elect to account for each lease component and its associated non-lease components as a single lease component. We are in the process of updating our internal control and business processes.

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 update 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 the guidance will have on our financial statements.

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS Dover Corporation Prior to the Separation, Dover provided certain services to us, including corporate executive management, human resources, information technology, facilities, tax, shared services, finance and legal services. Dover continued 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 paid a fee to Dover for services under the transition services agreement, which fee was intended to allow Dover to recover all of its direct and indirect costs generally without profit. The transition services agreement was terminated on January 31, 2019, consistent with the initial term provided within the agreement. 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 $7.4 million, $23.0 million, and $19.5 million for the years ended December 31, 2018, 2017, and 2016, respectively, which were recorded in “Selling, general and administrative expense” in the consolidated statements of income (loss). 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 combined balance sheet as of December 31, 2017, and in “Distributions to Dover Corporation, net” in the consolidated statements of cash flows for the years ended December 31, 2018, 2017, and 2016, as a financing activity. Accounts receivable, accounts payable and revenue with Dover and its affiliates were not material for the periods presented. We recognized royalty expense of $2.3 million, $9.8 million, and $7.4 million for the years ended December 31, 2018, 2017, and 2016, respectively, related to the use of Dover’s intellectual property and patents which are included in “Other expense, net” in the consolidated statements of income (loss). On April 1, 2018, patents and other intangibles owned by Dover related to our operations transferred to Apergy, and consequently, Apergy no longer incurred royalty charges related to these assets from Dover. Noncontrolling Interest For the years ended December 31, 2018, 2017, and 2016, we declared and paid $2.7 million, $1.2 million and $1.7 million, respectively, of distributions to the noncontrolling interest holder in Apergy Middle East Services 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

12 Months Ended

Dec. 31, 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 Summary of Significant Accounting Policies 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 with positive income prior to the Separation.

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



	Years Ended December 31,
(in thousands, except per share data)	2018		2017		2016
Net income (loss) attributable to Apergy	$	94,041	$	111,734	$	(12,751	)

Weighted-average number of shares outstanding	77,342		77,340		77,340
Dilutive effect of stock-based compensation	350		550		—
Total shares and dilutive securities	77,692		77,890		77,340

Basic earnings (loss) per share attributable to Apergy	$	1.22	$	1.44	$	(0.16	)
Diluted earnings (loss) per share attributable to Apergy	$	1.21	$	1.43	$	(0.16	)

Acquisitions	12 Months Ended
Acquisitions	Dec. 31, 2018
Business Combinations [Abstract]
Acquisitions	NOTE 5—ACQUISITIONS In October 2017, Apergy acquired 100% of the voting stock of PCP Oil Tools S.A. and Ener Tools S.A. (“PCP Tools”), a supplier of progressive cavity pump products and services for total consideration of $8.8 million, net of cash acquired. This acquisition is a part of our Production & Automation Technologies segment and broadens our ability to supply customers in Argentina. We recorded non-deductible goodwill of $5.1 million, customer intangible assets of $4.5 million, and net working capital that is not material to the consolidated financial statements. The goodwill recorded as a result of the acquisition reflects the benefits expected to be derived from product line expansion and operational synergies. The intangible assets acquired are being amortized over nine years. Results of operations of the acquired business have been included in our consolidated financial statements from the acquisition date. Pro forma results of operations have not been presented as the effects of the acquisition are not material to our consolidated financial statements.

Inventories

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventories consisted of the following:



(in thousands)	December 31, 2018			December 31, 2017
Raw materials	$	52,057		$	45,408
Work in progress	11,416			10,879
Finished goods	180,624			167,227
	244,097			223,514
LIFO and valuation adjustments	(25,778		)	(22,112		)
Inventories, net	$	218,319		$	201,402

As of December 31, 2018 and 2017, approximately 24% and 28%, respectively, of our total net inventories were accounted for using the LIFO method. The current replacement costs of LIFO inventories exceeded their carrying value by approximately $12.9 million and $10.6 million at December 31, 2018 and 2017, respectively. There were no reductions to the base LIFO inventories in 2018 or 2017.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:



(in thousands)	December 31, 2018			December 31, 2017
Land	$	13,607		$	13,557
Buildings and improvements	105,036			99,233
Machinery, equipment and other	518,029			447,991
	636,672			560,781
Accumulated depreciation	(392,344		)	(347,219		)
Property, plant and equipment, net	$	244,328		$	213,562

Depreciation expense was $72.6 million, $59.2 million and $56.1 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

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, 2016	$	801,443		$	101,136	$	902,579
Acquisitions	5,053			—		5,053
Foreign currency translation	2,456			—		2,456
December 31, 2017	808,952			101,136		910,088
Purchase price adjustment ⁽¹⁾	(53		)	—		(53		)
Foreign currency translation	(5,050		)	—		(5,050		)
December 31, 2018	$	803,849		$	101,136	$	904,985

_______________________

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

We recorded $5.1 million of acquired goodwill in 2017. See Note 5—Acquisitions for additional information. We did not recognize any impairment for the years ended December 31, 2018 and 2017, as the fair values of our reporting units exceeded their carrying amounts.

Intangible Assets

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



	December 31, 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	$	568,643	$	319,827	$	248,816	$	572,415	$	276,655	$	295,760
Trademarks	36,296		21,575		14,721		36,312		17,821		18,491
Patents	38,141		23,568		14,573		38,679		20,449		18,230
Unpatented technologies	9,700		9,700		—		9,700		9,700		—
Drawings and manuals	3,000		2,142		858		3,067		2,109		958
Other	5,268		4,148		1,120		5,382		3,911		1,471
	661,048		380,960		280,088		665,555		330,645		334,910
Indefinite-lived intangible assets:
Trademarks	3,600		—		3,600		3,600		—		3,600
Total	$	664,648	$	380,960	$	283,688	$	669,155	$	330,645	$	338,510

We recorded $4.5 million of acquired customer intangible assets in 2017. See Note 5—Acquisitions for additional information. Changes to the gross carrying amount of intangible assets during the year ended December 31, 2018 were the result of foreign currency translation adjustments.

Amortization expense related to the our intangible assets was $51.9 million, $53.7 million and $56.0 million for the years ended December 31, 2018, 2017 and 2016, respectively. Estimated future amortization expense related to intangible assets held as of December 31, 2018, is as follows:



(in thousands)	Estimated Amortization
2019	$	51,073
2020	49,623
2021	48,795
2022	47,323
2023	33,452

Warranty

12 Months Ended

Dec. 31, 2018

Guarantees and Product Warranties [Abstract]

Warranty

WARRANTY

Estimated warranty claims are provided for at the time of sale and are based on historical costs and historical and current claims experience. See Note 13—Revenue for further information regarding product warranties. Warranty cost and accrual information is as follows:



	Years Ended December 31,
(in thousands)	2018			2017			2016
Balance at beginning of year	$	3,070		$	4,666		$	4,421
Expenses for warranties	3,015			309			2,109
Claims paid	(3,320		)	(1,896		)	(1,518		)
Other adjustments, including foreign currency translation	(80		)	(9		)	(346		)
Balance at end of year	$	2,685		$	3,070		$	4,666

Debt

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt

DEBT

Long-term debt consisted of the following:



(in thousands)	December 31, 2018			December 31, 2017
Revolving credit facility	$	—		$	—
Term loan facility	370,000			—
6.375% Senior Notes due 2026	300,000			—
Capital lease obligations	7,485			5,806
Total	677,485			5,806
Net unamortized discounts and issuance costs	(11,377		)	—
Total long-term debt	$	666,108		$	5,806

Senior Notes

On May 3, 2018, and in connection with the Separation, we completed the private placement of $300.0 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 $700.0 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.

A registration statement was filed with the SEC on November 15, 2018, related to a registered offer to exchange the Senior Notes for an issue of SEC-registered notes (“exchange notes”). The exchange offer was completed in December 2018 with full participation. The terms of the exchange notes in the exchange offer were substantially identical to the outstanding Senior Notes, except that the exchange notes are registered under the Securities Act of 1933, as amended, do not have any transfer restrictions, and do not have registration rights or additional interest provisions.

Senior Secured Credit Facilities

On May 9, 2018, we entered into a credit agreement (“credit agreement”) governing the terms of our senior secured credit facilities, consisting of (i) a 7-year senior secured term loan B facility (“term loan facility”) and (ii) a 5-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. Interest on borrowings in which interest is accrued based on LIBOR plus an applicable margin is payable in three month increments. Interest on borrowings in which interest is accrued at a base rate plus an applicable margin is payable on the last business day of each quarter. The senior secured credit facilities contain a number of customary covenants that, among other things, 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 $415.0 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% per annum of the initial commitment of $415.0 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, as defined in the credit agreement.

Revolving Credit Facility. The revolving credit facility consists of a 5-year senior secured facility with aggregate commitments in an amount equal to $250.0 million, of which up to $50.0 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.

As of December 31, 2018, aggregate contractual future principal payments on long-term debt are as follows:



(in thousands)	Principal Payments⁽¹⁾
2019	$	—
2020	—
2021	—
2022	—
2023	—
Thereafter	670,000
Total	$	670,000

_______________________

⁽¹⁾ Principal payments included relate to our term loan facility and senior notes. See Note 11—Commitment and Contingencies for future payments related to capital lease obligations.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENT AND CONTINGENCIES

Lease Commitments

We lease certain facilities and equipment under operating leases, many of which contain renewal options. Rent expense, net of sublease rental income, for our operating leases was $16.8 million, $15.6 million and $16.7 million for the years ended December 31, 2018, 2017 and 2016, respectively.

As of December 31, 2018, future minimum rental payments under noncancellable operating and capital leases were:



(in thousands)	Operating		Capital
2019	$	14,781	$	4,447
2020	12,768		2,636
2021	11,240		987
2022	10,951		97
2023	10,268		22
Thereafter	8,734		25
Total	$	68,742	$	8,214

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 December 31, 2018 and 2017, we had $3.6 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

Environmental matters that are probable and estimable were not material as of December 31, 2018 and 2017. Environmental matters relate to ongoing remedial activities performed in cooperation with regulatory authorities.

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. We review the probable outcome of such proceedings, the costs and expenses reasonably expected to be incurred and accrued to-date, and the availability and extent of insurance coverage. We accrue a liability for legal matters that are probable and estimable, and as of December 31, 2018 and 2017, these liabilities were not material. Management is unable to predict the ultimate outcome of these actions because of the inherent uncertainty of litigation. However, management believes 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.

Stockholders' Equity

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS' EQUITY

Capital stock—The following is a summary of our capital stock activity:



(in thousands)	Common Stock
December 31, 2017	—
Issuance of common stock at the Separation	77,340
Shares issued—share-based compensation	13
December 31, 2018	77,353

We have 250 million shares of preferred stock authorized, with a par value of $0.01 per share. No shares of preferred stock were outstanding as of December 31, 2018 or 2017.

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, 2016	$	(26,321	)	$	(7,336	)	$	(33,657	)
Other comprehensive income before reclassifications, net of tax	4,385			2,598			6,983
Reclassification adjustment for net losses included in net income, net of tax	—			258			258
Other comprehensive income, net of tax	4,385			2,856			7,241
December 31, 2017	(21,936		)	(4,480		)	(26,416		)
Reclassification adjustment for cumulative effect of change in accounting principle	—			(1,315		)	(1,315		)
Net transfer from Dover	—			(2,421		)	(2,421		)
Other comprehensive income (loss) before reclassifications, net of tax	(14,210		)	856			(13,354		)
Reclassification adjustment for net losses included in net income, net of tax	—			600			600
Other comprehensive income (loss), net of tax	(14,210		)	1,456			(12,754		)
December 31, 2018	$	(36,146	)	$	(6,760	)	$	(42,906	)

Reclassifications from accumulated 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:



	Years Ended December 31,									Affected line items on the consolidated statements of income (loss)
(in thousands)	2018			2017			2016
Amortization of actuarial loss and net transition obligation⁽¹⁾	$	330		$	397		$	362		Other expense, net
Amortization of prior service cost ⁽¹⁾	1			2			2			Other expense, net
Settlement loss ⁽¹⁾	479			—			—			Other expense, net
	810			399			364			Income (loss) before income taxes
	(210		)	(141		)	(129		)	Provision for (benefit from) income taxes
	$	600		$	258		$	235		Net income (loss)

_______________________


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

Revenue

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Restructuring and Related Activities [Abstract]

REVENUE

Our revenue is substantially generated from product sales. For the year ended December 31, 2018, approximately 89% of our revenue was generated from product sales. Our remaining revenue was derived from services and leases, which represented approximately 7% and 4%, respectively, of total revenue for the year ended December 31, 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 rental income of leased production equipment and is recognized ratably over the lease term.

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 is not material to us.

Disaggregation of Revenue

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



	Years Ended December 31,
(in thousands)	2018			2017⁽¹⁾			2016⁽¹⁾
Drilling Technologies	$	285,565		$	227,653		$	113,320
Production & Automation Technologies:
Artificial lift	724,554			602,287			499,033
Digital products	117,801			82,093			65,351
Other production equipment	91,232			103,564			75,182
Intra-segment eliminations	(2,506		)	(5,131		)	(1,549		)
	931,081			782,813			638,017
Total revenue	$	1,216,646		$	1,010,466		$	751,337

Revenue disaggregated by geography was as follows:



	Years Ended December 31,
(in thousands)	2018		2017⁽¹⁾		2016⁽¹⁾
United States	$	957,657	$	770,822	$	559,266
Canada	79,816		79,186		54,714
Middle East	53,516		48,899		54,767
Europe	38,669		28,112		19,935
Latin America	33,976		34,350		23,580
Asia-Pacific	17,605		20,072		17,570
Other	35,407		29,025		21,505
Total revenue	$	1,216,646	$	1,010,466	$	751,337

_______________________

⁽¹⁾Revenue for the years ended December 31, 2017 and 2016, are presented in accordance with accounting standards in effect prior to our adoption of ASU No. 2014-09 on January 1, 2018. See Note 2 for further discussion regarding our adoption of ASU No. 2014-09.

Revenue is attributed to regions based on the location of our direct customer, which in some instances is an intermediary and not necessarily the end user.

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 December 31, 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

The beginning and ending contract asset and contract liability balances from contracts with customers were as follows:



(in thousands)	December 31, 2018		January 1, 2018
Contract assets	$	4,571	$	4,733
Contract liabilities - current	5,863		3,912

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 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 consolidated balance sheets.

Restructuring

12 Months Ended

Dec. 31, 2018

Restructuring

RESTRUCTURING

We initiated various restructuring programs and incurred severance and other restructuring costs by segment as follows:



	Years Ended December 31,
(in thousands)	2018		2017		2016
Production & Automation Technologies	$	5,632	$	6,921	$	12,757
Drilling Technologies	—		—		2,405
Total	$	5,632	$	6,921	$	15,162

Cost of goods and services	$	4,693	$	6,332	$	9,465
Selling, general and administrative expense	939		589		5,697
Total	$	5,632	$	6,921	$	15,162

Restructuring charges incurred during years ended December 31, 2018, 2017, and 2016, included the following programs, which were substantially completed during those three years:

Production & Automation Technologies. Production & Automation Technologies incurred restructuring charges of $5.6 million, $6.9 million and $12.8 million during the years ended December 31, 2018, 2017 and 2016, respectively, related to various programs, primarily focused on facility consolidations, exit of certain nonstrategic product lines, including related impairments of fixed assets, and workforce reductions. The 2018 and 2017 programs were initiated to continue to optimize our operations as the market recovered and the 2016 programs were initiated to better align the cost base with the significantly lower demand environment.

Drilling Technologies. Drilling Technologies recorded $2.4 million in restructuring charges during the year ended December 31, 2016, related to various programs, primarily focused on workforce reductions to better align the cost base with the significantly lower demand environment.

Our liability balances for restructuring and other exit activities were $1.0 million and $2.6 million as of December 31, 2018 and December 31, 2017, respectively, and primarily consist of ongoing lease commitment obligations for facilities closed in prior periods and employee severance and related benefits. As of December 31, 2018, 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

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Prior to the Separation, the operations of Apergy were included in Dover’s U.S. combined federal and state income tax returns. Income tax expense and deferred tax balances are presented in these financial statements as if Apergy filed its own tax returns in each jurisdiction. These statements 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 have been utilized by Dover.

Components of income (loss) before income taxes—Domestic and foreign components of income (loss) before income taxes were as follows:



	Years Ended December 31,
(in thousands)	2018		2017		2016
Domestic	$	106,172	$	68,356	$	(26,035	)
Foreign	17,119		22,432		7,092
Income (loss) before income tax	$	123,291	$	90,788	$	(18,943	)

Provision for (benefit from) income taxes—The provision for (benefit from) income taxes consisted of:



	Years Ended December 31,
(in thousands)	2018			2017			2016
Current:
U.S. federal	$	21,386		$	42,693		$	8,872
State and local	1,559			4,257			1,995
Foreign	7,139			6,176			971
Total current	30,084			53,126			11,838
Deferred:
U.S. federal	(2,255		)	(73,544		)	(19,161		)
State and local	3,466			(1,361		)	(771		)
Foreign	(2,499		)	(97		)	51
Total deferred	(1,288		)	(75,002		)	(19,881		)
Provision for (benefit from) income taxes	$	28,796		$	(21,876	)	$	(8,043	)

Effective income tax rate reconciliation—The effective income tax rate was different from the statutory U.S. federal income tax rate due to the following:



	Years Ended December 31,
	2018		2017		2016
Statutory U.S. federal income tax rate	21.0	%	35.0	%	35.0	%
Net difference resulting from:
State and local taxes, net of federal income tax benefit	3.3		2.1		(3.9	)
Foreign derived intangible income	(1.9	)	—		—
Foreign operations tax effect	0.8		(2.8	)	7.8
Research and experimentation tax credits	(0.6	)	(0.7	)	2.3
Domestic manufacturing deduction	—		(4.4	)	6.2
Nondeductible expenses	0.7		0.7		(3.3	)
ESOP dividends	(0.1	)	(0.2	)	2.9
Branch income	—		1.1		(2.9	)
Changes due to the Tax Reform Act	—		(54.3	)	—
Other	0.2		(0.6	)	(1.6	)
Effective income tax rate	23.4	%	(24.1	)%	42.5	%

Deferred tax assets and liabilities—Significant components of deferred tax assets and liabilities were as follows:



(in thousands)	December 31, 2018			December 31, 2017
Deferred tax assets attributable to:
Accrued compensation	$	7,535		$	4,568
Accrued expenses, principally for state income taxes, interest and warranty	1,156			846
Net operating loss and other carryforwards	766			1,280
Accounts receivable, principally due to allowance for doubtful accounts	973			827
Long-term liabilities, principally warranty and exit cost	505			678
Other assets	374			132
Deferred tax assets	11,309			8,331
Valuation allowance	(722		)	(1,280		)
Deferred tax assets, net of valuation allowance	$	10,587		$	7,051
Deferred tax liabilities attributable to:
Inventories	$	(2,061	)	$	(3,687	)
Intangible assets, including goodwill	(83,436		)	(83,669		)
Property, plant and equipment	(25,520		)	(16,134		)
Deferred tax liabilities	(111,017		)	(103,490		)
Net deferred tax liabilities	$	(100,430	)	$	(96,439	)

Other non-current assets	$	1,294		$	546
Deferred income taxes	(101,724		)	(96,985		)
	$	(100,430	)	$	(96,439	)

Net operating loss carryforwards. As of December 31, 2018, our deferred tax asset balance included non-U.S. net operating loss carryforwards of $0.4 million. This entire balance as of December 31, 2018, is available to be carried forward and will expire during the years 2024 through 2038. We maintain valuation allowances by jurisdiction against the full amount of our net operating loss carryforwards as it is more likely than not that these assets will not be realized.

Foreign tax credit carryforwards. As of December 31, 2018, our deferred tax asset balance included U.S. foreign tax credit carryforwards of $0.3 million. This entire balance as of December 31, 2018, is available to be carried forward and will expire during 2029. We maintain a valuation allowance against the full amount of our U.S. foreign tax credit carryforwards as it is more likely than not that these assets will not be realized.

Tax Reform Act. The Tax Reform Act, enacted on December 22, 2017, reduced the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. As a result of the reduction in the U.S. corporate income tax rate, we revalued our ending net deferred tax liabilities as of December 31, 2017, and recognized a provisional tax benefit of $53.2 million. The Tax Reform Act also imposed a tax for a one-time deemed repatriation of post-1986 unremitted foreign earnings and profits through the year ended December 31, 2017. We recorded a provisional tax expense related to the deemed repatriation of $3.9 million during the year ended December 31, 2017. We completed our accounting for the income tax effects of the Tax Reform Act in 2018 with no change to the provisional amounts recorded during the year ended December 31, 2017. During the year ended December 31, 2018, we made cash distributions to the U.S from non-U.S. subsidiaries of $16.0 million, which did not result in any withholding tax expense. See Note 1—Basis of Presentation and Summary of Significant Accounting Policies regarding assumptions used to estimate our income tax expense and deferred tax balances in the periods prior to the Separation.

The GILTI provisions of the Tax Reform Act require us to include in our U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. We are subject to incremental U.S. tax on GILTI income beginning in 2018, resulting in a tax expense of $0.2 million for the year ended December 31, 2018, due to expense allocations required by the U.S. foreign tax credit rules. We elected to account for GILTI tax in the period in which it is incurred, and therefore did not provide any deferred tax impacts of GILTI in our combined financial statements for the year ended December 31, 2017.

Unrecognized tax benefits. We file federal, state, and local tax returns in the United States as well as foreign tax returns. We are routinely audited by the tax authorities in these jurisdictions, and a number of audits are currently underway. We are no longer subject to examinations of our U.S. federal income tax returns for years through 2014. All significant state, local and international matters have been concluded for years through 2012. We believe all income tax uncertainties have been properly accounted. We have not recorded a liability for uncertain tax positions as of December 31, 2018 and 2017.

Employee Benefit Plans

12 Months Ended

Dec. 31, 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. For periods prior to the Separation, we accounted for such plans as multi-employer benefit plans and recorded a proportionate share of the cost in our consolidated statements of income (loss). For the years ended December 31, 2018, 2017 and 2016, costs associated with these multi-employer plans amounted to $1.6 million, $4.6 million and $6.4 million, respectively.

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 our consolidated balance sheet as of December 31, 2017, and was not recorded at 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 the Canada Salaried Pension Plan is not reflected in our consolidated 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 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. We 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.

We sponsor non-qualified plans covering certain U.S. employees and retirees. The plans provide supplemental retirement benefits in excess of qualified plan limits imposed by federal tax law. The plans are closed to new hires and all benefits under the plans are frozen.

Obligations and Funded Status

The funded status of our benefit plans, together with the associated balances recognized in our consolidated balance sheets as of December 31, 2018 and 2017, were as follows:



	Pensions						Other post-retirement benefits
(in thousands)	2018			2017			2018			2017
Projected benefit obligation at January 1	$	3,881		$	3,512		$	14,197		$	18,600
Service cost	598			106			—			—
Interest cost	455			137			448			621
Benefits paid	(370		)	(99		)	(1,022		)	(1,710		)
Actuarial gain	(530		)	(22		)	(562		)	(3,314		)
Liabilities assumed from the Separation	14,348			—			—			—
Settlements and curtailments	(1,763		)	—			—			—
Foreign currency translation and other	(671		)	247			—			—
Projected benefit obligation at December 31	15,948			3,881			13,061			14,197

Fair value of plan assets at January 1	3,993			3,391			—			—
Actual return on plan assets	(76		)	290			—			—
Company contributions	4,740			166			1,022			1,710
Benefits paid	(370		)	(99		)	(1,022		)	(1,710		)
Assets assumed from the Separation	9,227			—			—			—
Settlements and curtailments	(1,763		)	—			—			—
Foreign currency translation and other	(621		)	245			—			—
Fair value of plan assets at December 31	15,130			3,993			—			—
Funded (unfunded) status at December 31	$	(818	)	$	112		$	(13,061	)	$	(14,197	)

Other non-current assets	$	146		$	112		$	—		$	—
Accrued compensation and employee benefits	—			—			(1,598		)	(1,547		)
Other long-term liabilities	(964		)	—			(11,463		)	(12,650		)
Funded (unfunded) status	$	(818	)	$	112		$	(13,061	)	$	(14,197	)

Accumulated benefit obligations	$	14,076		$	3,881		$	13,061		$	14,197

The following table summarizes the pre-tax amounts in accumulated other comprehensive (income) loss as of December 31, 2018 and 2017 that have not been recognized as components of net periodic benefit cost:



	Pensions						Other post-retirement benefits
(in thousands)	2018			2017			2018		2017
Pre-tax amounts recognized in accumulated other comprehensive loss (income):
Unrecognized net actuarial loss	$	3,586		$	1,449		$	5,685	$	6,078
Unrecognized prior service cost	25			40			—		—
Unrecognized net transition asset	(8		)	(20		)	—		—
Accumulated other comprehensive loss	$	3,603		$	1,469		$	5,685	$	6,078

The following table summarizes the accumulated benefit obligations and fair values of plan assets where the accumulated benefit obligation exceeds the fair value of plan assets as of December 31, 2018 and 2017:



(in thousands)	2018		2017
Aggregate accumulated benefit obligation	$	16,783	$	—
Aggregate fair value of plan assets	3,672		—

Net Periodic Benefit Cost

Components of the net periodic benefit cost were as follows:



	Pensions									Other post-retirement benefits
(in thousands)	2018			2017			2016			2018		2017			2016
Service cost	$	598		$	106		$	102		$	—	$	—		$	—
Interest cost	455			137			129			448		621			719
Expected return on plan assets	(593		)	(198		)	(186		)	—		—			—
Amortization of prior service cost	1			2			2			—		—			—
Amortization of actuarial loss	127			68			58			202		330			305
Amortization of transition obligation	1			(1		)	(1		)	—		—			—
Settlement loss	479			—			—			—		—			—
Other	—			—			—			—		(1		)	—
Net periodic benefit cost	$	1,068		$	114		$	104		$	650	$	950		$	1,024

Included in accumulated other comprehensive loss at December 31, 2018, are noncash, pre-tax charges which have not yet been recognized in net periodic benefit cost. The estimated amounts expected to be amortized from the portion of each component of accumulated other comprehensive loss as a component of net periodic benefit cost, during the next fiscal year are as follows:



(in thousands)	Pensions		Other post-retirement benefits
Net actuarial loss	$	158	$	200
Prior service cost	1		—
Transition obligation	3		—

Assumptions

The following weighted-average assumptions were used to determine the benefit obligations:



	Pensions				Other post-retirement benefits
	2018		2017		2018		2017
Discount rate	3.90	%	3.50	%	4.10	%	3.35	%

The following weighted-average assumptions were used to determine the net periodic benefit cost:



	Pensions						Other post-retirement benefits
	2018		2017		2016		2018		2017
Discount rate	3.68	%	3.75	%	4.00	%	3.35	%	3.55	%
Expected return on plan assets	4.80	%	5.50	%	5.75	%

Plan Assets

The primary financial objective of the plans is to secure participant retirement benefits. Accordingly, the key objective in the plans’ financial management is to promote stability and, to the extent appropriate, growth in the funded status. We have retained professional investment managers to manage the plans’ assets and implement the investment process. The investment managers have the authority and responsibility to select appropriate investments in the asset classes specified by the terms of their applicable prospectus or investment manager agreements with the plans. The assets of the plans are invested to achieve an appropriate return for the plans consistent with a prudent level of risk. The asset return objective is to achieve, as a minimum over time, the passively managed return earned by market index funds, weighted in the proportions outlined by the asset class exposures identified in the plans’ strategic allocation.

Our pension plan assets measured at fair value on a recurring basis are presented below. Refer to “Fair value measurements” in Note 1 to these consolidated financial statements for a description of the levels.



	Pensions
	December 31, 2018								December 31, 2017
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Mutual funds	$	4,775	$	6,683	$	—	$	11,458	$	2,399	$	1,594	$	—	$	3,993
Cash and cash equivalents	3,672		—		—		3,672		—		—		—		—
Total	$	8,447	$	6,683	$	—	$	15,130	$	2,399	$	1,594	$	—	$	3,993

Mutual funds are categorized as either Level 1 or 2 depending on the nature of the observable inputs. We had no Level 3 plan assets as of December 31, 2018 and 2017. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.

Expected contributions in 2019 are $1.1 million. The non-qualified plans are unfunded and contributions are made as benefits are paid.

Estimated Future Benefit Payments

Estimated future benefit payments to retirees from our various pension and other post-retirement benefit plans are outlined in the table below. Actual benefit payments may differ from these expected payments.



(in thousands)	Pensions		Other Post-retirement benefits
2019	$	507	$	1,598
2020	555		1,488
2021	757		1,333
2022	1,050		1,222
2023	586		1,123
2024-2028	3,889		3,997

Defined Contribution Plan

We offer a defined contribution retirement plan which covers the majority of our U.S. employees, as well as employees in certain other countries. Expense relating to defined contribution plans was $9.6 million, $8.2 million and $6.4 million for the years ended December 31, 2018, 2017 and 2016, respectively.

Equity and Cash Incentive Program

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity and Cash Incentive Program

EQUITY AND CASH INCENTIVE PROGRAMS

Prior to the Separation, Dover granted share-based awards to its officers and other key employees, including certain Apergy individuals. The principal awards issued under Dover’s stock-based compensation plans included stock options, stock-settled stock appreciation rights, restricted stock units and performance share awards. 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.

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



	Years Ended December 31,
	2018			2017			2016
Stock-based compensation expense	$	5,375		$	2,236		$	2,293
Tax benefit	(1,141		)	(774		)	(787		)
Stock-based compensation expense, net of tax	$	4,234		$	1,462		$	1,506

SARs

We did not issue SARs during 2018. In 2017 and 2016, SARs were granted by Dover and the fair value of each SAR granted was estimated on the grant date using a Black-Scholes option-pricing model utilizing the following assumptions:



	2017			2016
Risk-free interest rate	1.80		%	1.05		%
Dividend yield	2.27		%	3.09		%
Expected life (years)	4.6			4.6
Volatility	21.90		%	26.17		%
Grant price	$	79.28		$	57.25
Fair value at date of grant	$	12.63		$	9.25

A summary of activity relating to SARs outstanding for the year ended December 31, 2018, is as follows:



	SARs
	Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2018	—		$	—
Converted	488,039		29.43
Granted	—		—
Forfeited / expired	(6,287	)	28.62
Exercised	(3,802	)	31.55
Outstanding at December 31, 2018	477,950		29.43		7.1	$	529

Exercisable at December 31, 2018	95,142		$	31.15	5.2	$	24

Unrecognized compensation expense related to SARs not yet exercisable was $0.4 million as of December 31, 2018, and is expected to be recognized over a weighted average period of 1.0 year.

Other information regarding the exercise of SARs is presented below:



(in thousands)	2018		2017		2016
SARs:
Fair value of SARs that became exercisable	$	310	$	1,239	$	1,564
Aggregate intrinsic value of SARs exercised	40		2,787		799

Performance Share Awards - Dover

Performance shares granted by Dover were cancelled effective with the Separation. Performance share awards granted prior to the Separation were considered performance condition awards as attainment was based on Dover’s performance relative to established internal metrics. The fair value of these awards was determined using Dover’s closing stock price on the date of grant. The expected attainment of the internal metrics for these awards was analyzed each reporting period, and the related expense was adjusted based on expected attainment. The cumulative effect on current and prior periods of a change in expected attainment is recognized in stock-based compensation expense in the period of change.

The fair value and average attainment used in determining stock-based compensation expense of the performance shares issued in 2017 and 2016 are as follows:



Performance shares:	2017			2016
Fair value per share at date of grant	$	79.28		$	57.25
Average attainment rate reflected in expense	0.0		%	0.0		%

Performance Share Awards - Apergy

We granted 86,817 performance share awards during 2018 under the 2018 Plan. The performance share awards granted under the 2018 Plan vest if Apergy achieves certain pre-established performance targets based on specified performance criteria over a performance period of not less than three years. The performance targets for these awards are classified as a market vesting condition, therefore the compensation cost was calculated using the grant date fair market value, as estimated using a Monte Carlo simulation, and is not subject to change based on future events. The fair value used in determining stock-based compensation expense of the performance share awards issued in 2018 is as follows:



Performance shares:	2018
Fair value per share at date of grant	$	56.32

A summary of activity for the Apergy performance share awards for the year ended December 31, 2018, is as follows:



	Shares	Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2018	—	$	—
Granted	86,817	56.32
Vested	—	—
Unvested at December 31, 2018	86,817	$	56.32

Unrecognized compensation expense related to unvested performance share awards as of December 31, 2018, was $3.9 million, which will be recognized over a weighted average period of 2.4 years.

Restricted Stock Units

Restricted stock units may be granted at no cost to certain officers and key employees. Restricted stock units generally vest over a three-or-four-year period.

A summary of activity for restricted stock units for the year ended December 31, 2018, is as follows:



	Shares		Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2018	—		$	—
Converted	61,717		30.26
Granted	368,848		43.63
Forfeited	(3,065	)	37.45
Vested	(12,660	)	36.93
Unvested at December 31, 2018	414,840		$	41.91

Unrecognized compensation expense relating to unvested restricted stock as of December 31, 2018, was $13.4 million, which will be recognized over a weighted average period of 1.9 years.

Fair Value Measurements (Notes)	12 Months Ended
Fair Value Measurements (Notes)	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS We had no outstanding derivative contracts as of December 31, 2018 and 2017. Other assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 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 $294.0 million as of December 31, 2018, as compared to the $300.0 million face value of the debt. The fair value, based on Level 2 quoted market rates, of our term loan facility was approximately $358.4 million as of December 31, 2018, as compared to the $370.0 million face value of the debt. The carrying amounts of cash and cash equivalents, trade receivables, and 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.

Condensed Financial Information Disclosure [Abstract]

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

Segment Information

12 Months Ended

Dec. 31, 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. Management’s determination of our reporting segments was made on the basis of our strategic priorities within each segment and corresponds to the manner in which our chief operating decision maker reviews and evaluates operating performance to make decisions about resources to be allocated to the segment. In addition to our strategic priorities, segment reporting is also based on differences in the products and services we provide.

Our reporting segments are:

•

Production & Automation Technologies—designs, manufactures, markets and services a full range of artificial lift equipment, end-to-end digital automation solutions, as well as other production equipment. Production & Automation Technologies’ products are sold under a collection of brands including Harbison-Fischer, Norris, Alberta Oil Tool, Oil Lift Technology, PCS Ferguson, Pro-Rod, Upco, Unbridled ESP, Norriseal-Wellmark, Quartzdyne, Spirit, Theta, Timberline and Windrock.


•	Drilling Technologies—designs, manufactures and markets polycrystalline diamond cutters and bearings for use in oil and gas drill bits under the US Synthetic brand.

Segment revenue and segment operating profit



	Years Ended December 31,
(in thousands)	2018		2017		2016
Segment revenue:
Production & Automation Technologies	$	931,081	$	782,813	$	638,017
Drilling Technologies	285,565		227,653		113,320
Total revenue	$	1,216,646	$	1,010,466	$	751,337

Income (loss) before income taxes:
Segment operating profit (loss):
Production & Automation Technologies	$	75,918	$	26,890	$	(21,744	)
Drilling Technologies	98,620		74,317		8,397
Total segment operating profit (loss)	174,538		101,207		(13,347		)
Corporate expense and other ⁽¹⁾	23,807		9,666		5,119
Interest expense, net	27,440		753		477
Income (loss) before income taxes	$	123,291	$	90,788	$	(18,943	)

_______________________


⁽¹⁾	Corporate expense and other 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 and the results attributable to our noncontrolling interest.

Segment assets



	December 31,
(in thousands)	2018		2017
Production & Automation Technologies	$	1,699,820	$	1,685,622
Drilling Technologies	230,977		220,993
Corporate	40,959		—
Total assets	$	1,971,756	$	1,906,615

Geographic segment information



	December 31,
(in thousands)	2018		2017
Long-lived assets:
United States	$	233,809	$	199,909
Middle East	3,616		5,189
Canada	6,299		7,587
Australia	254		336
Latin & South America	350		541
Total long-lived assets	$	244,328	$	213,562

See Note 13—Revenue for information related to revenue by geography and end markets.

Other business segment information



	Capital Expenditures Years Ended December 31,						Depreciation & Amortization Years Ended December 31,
(in thousands)	2018		2017		2016		2018		2017		2016
Production & Automation Technologies	$	45,190	$	28,483	$	21,961	$	112,955	$	100,912	$	99,664
Drilling Technologies	11,123		8,171		4,138		11,037		11,950		12,448
Corporate	1,605		—		—		469		—		—
Total	$	57,918	$	36,654	$	26,099	$	124,461	$	112,862	$	112,112

Condensed Consolidating Financial Information

12 Months Ended

Dec. 31, 2018

Condensed Consolidating Financial Information

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Apergy Corporation has senior notes outstanding, the payment obligations of which are fully and unconditionally guaranteed by certain 100-percent-owned subsidiaries of Apergy on a joint and several basis. The following financial information presents the results of operations, financial position and cash flows for:


•	Apergy Corporation (issuer)


•	100-percent-owned guarantor subsidiaries


•	All other non-guarantor subsidiaries


•	Adjustments and eliminations necessary to present Apergy results on a consolidated basis.

This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and related notes.



	Year Ended December 31, 2018
(in thousands)	Apergy Corporation			Subsidiary Guarantors		Subsidiary Non-guarantors			Adjustments and eliminations			Total
Product revenue	$	—		$	961,082	$	124,389		$	—		$	1,085,471
Service revenue	—			56,996		26,159			—			83,155
Lease, related party and other revenue	—			71,977		19,725			(43,682		)	48,020
Total revenue	—			1,090,055		170,273			(43,682		)	1,216,646
Cost of goods and services	—			696,044		147,280			(42,977		)	800,347
Gross profit	—			394,011		22,993			(705		)	416,299
Selling, general and administrative expense	1,614			239,360		21,651			—			262,625
Interest expense, net	26,973			425		42			—			27,440
Other expense, net	—			1,322		1,620			1			2,943
Income (loss) before income taxes and equity in earnings of affiliates	(28,587		)	152,904		(320		)	(706		)	123,291
Provision for (benefit from) income taxes	(8,727		)	37,193		478			(148		)	28,796
Income (loss) before equity in earnings of affiliates	(19,860		)	115,711		(798		)	(558		)	94,495
Equity in earnings of affiliates	113,901			27,121		46,802			(187,824		)	—
Net income	94,041			142,832		46,004			(188,382		)	94,495
Net income attributable to noncontrolling interest	—			—		454			—			454
Net income attributable to Apergy	$	94,041		$	142,832	$	45,550		$	(188,382	)	$	94,041
Comprehensive income attributable to Apergy	$	81,287		$	141,528	$	34,098		$	(175,626	)	$	81,287



	Year Ended December 31, 2017
(in thousands)	Apergy Corporation		Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Product revenue	$	—	$	797,504		$	122,165		$	—		$	919,669
Service revenue	—		35,205			28,181			—			63,386
Lease, related party and other revenue	—		49,353			14,161			(36,103		)	27,411
Total revenue	—		882,062			164,507			(36,103		)	1,010,466
Cost of goods and services	—		585,385			140,516			(35,911		)	689,990
Gross profit	—		296,677			23,991			(192		)	320,476
Selling, general and administrative expense	—		199,882			18,676			—			218,558
Interest expense, net	—		724			29			—			753
Other expense, net	—		10,169			208			—			10,377
Income before income taxes and equity in earnings of affiliates	—		85,902			5,078			(192		)	90,788
Benefit from income taxes	—		(10,272		)	(11,537		)	(67		)	(21,876		)
Income before equity in earnings of affiliates	—		96,174			16,615			(125		)	112,664
Equity in earnings of affiliates	111,734		23,426			12,334			(147,494		)	—
Net income	111,734		119,600			28,949			(147,619		)	112,664
Net income attributable to noncontrolling interest	—		—			930			—			930
Net income attributable to Apergy	$	111,734	$	119,600		$	28,019		$	(147,619	)	$	111,734
Comprehensive income attributable to Apergy	$	118,975	$	122,480		$	32,381		$	(154,861	)	$	118,975



	Year Ended December 31, 2016
(in thousands)	Apergy Corporation			Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Product revenue	$	—		$	577,351		$	96,096		$	—		$	673,447
Service revenue	—			24,215			26,601			—			50,816
Lease, related party and other revenue	—			42,826			19,917			(35,669		)	27,074
Total revenue	—			644,392			142,614			(35,669		)	751,337
Cost of goods and services	—			459,522			132,350			(35,806		)	556,066
Gross profit	—			184,870			10,264			137			195,271
Selling, general and administrative expense	—			182,866			21,517			—			204,383
Interest expense, net	—			465			12			—			477
Other expense, net	—			9,163			191			—			9,354
Loss before income taxes and equity in loss of affiliates	—			(7,624		)	(11,456		)	137			(18,943		)
Benefit from income taxes	—			(2,750		)	(5,341		)	48			(8,043		)
Loss before equity in loss of affiliates	—			(4,874		)	(6,115		)	89			(10,900		)
Equity in loss of affiliates	(12,751		)	(23,669		)	(8,273		)	44,693			—
Net loss	(12,751		)	(28,543		)	(14,388		)	44,782			(10,900		)
Net income attributable to noncontrolling interest	—			—			1,851			—			1,851
Net loss attributable to Apergy	$	(12,751	)	$	(28,543	)	$	(16,239	)	$	44,782		$	(12,751	)
Comprehensive loss attributable to Apergy	$	(11,714	)	$	(28,538	)	$	(15,205	)	$	43,743		$	(11,714	)



	December 31, 2018
(in thousands)	Apergy Corporation		Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Assets
Cash and cash equivalents	$	108	$	27,533		$	14,191		$	—		$	41,832
Receivables	1,743		230,230			35,019			(17,044		)	249,948
Inventories, net	—		189,015			30,936			(1,632		)	218,319
Prepaid expenses and other current assets	24,583		17,064			3,106			(24,542		)	20,211
Total current assets	26,434		463,842			83,252			(43,218		)	530,310
Property, plant and equipment, net	—		231,373			12,955			—			244,328
Goodwill	—		633,771			271,214			—			904,985
Advances due from affiliates	600,802		14,185			82,889			(697,876		)	—
Investment in subsidiaries	1,013,869		687,691			545,298			(2,246,858		)	—
Intangible assets, net	—		198,531			85,157			—			283,688
Other assets	3,996		2,371			2,078			—			8,445
Total assets	1,645,101		2,231,764			1,082,843			(2,987,952		)	1,971,756
Liabilities and Equity
Accounts payable	22		114,745			33,335			(17,044		)	131,058
Accrued compensation and employee benefits	—		35,278			5,268			—			40,546
Accrued expenses and other current liabilities	4,929		46,722			4,914			(26,174		)	30,391
Total current liabilities	4,951		196,745			43,517			(43,218		)	201,995
Advances due to affiliates	—		683,700			14,176			(697,876		)	—
Long-term debt	658,623		7,363			122			—			666,108
Deferred income taxes	—		81,296			20,428			—			101,724
Other long-term liabilities	—		19,441			961			—			20,402
Total liabilities	663,574		988,545			79,204			(741,094		)	990,229
Equity:
Stockholders’ capital	981,527		1,250,573			1,036,733			(2,246,858		)	1,021,975
Accumulated other comprehensive loss	—		(7,354		)	(35,552		)	—			(42,906		)
Total stockholders’ equity	981,527		1,243,219			1,001,181			(2,246,858		)	979,069
Noncontrolling interest	—		—			2,458			—			2,458
Total equity	981,527		1,243,219			1,003,639			(2,246,858		)	981,527
Total liabilities and equity	$	1,645,101	$	2,231,764		$	1,082,843		$	(2,987,952	)	$	1,971,756



	December 31, 2017
(in thousands)	Apergy Corporation		Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Assets
Cash and cash equivalents	$	—	$	5,763		$	17,949		$	—		$	23,712
Receivables	—		170,788			34,335			(3,674		)	201,449
Inventories, net	—		174,842			27,488			(928		)	201,402
Prepaid expenses and other current assets	—		12,864			2,048			—			14,912
Total current assets	—		364,257			81,820			(4,602		)	441,475
Property, plant and equipment, net	—		197,309			16,253			—			213,562
Goodwill	—		633,734			276,354			—			910,088
Advances due from affiliates	—		10,299			60,109			(70,408		)	—
Investment in subsidiaries	1,640,385		801,915			388,994			(2,831,294		)	—
Intangible assets, net	—		234,795			103,715			—			338,510
Other assets	—		2,129			851			—			2,980
Total assets	1,640,385		2,244,438			928,096			(2,906,304		)	1,906,615
Liabilities and Equity
Accounts payable	—		83,866			18,634			(3,674		)	98,826
Accrued compensation and employee benefits	—		24,875			5,414			—			30,289
Accrued expenses and other current liabilities	—		13,711			7,989			(325		)	21,375
Total current liabilities	—		122,452			32,037			(3,999		)	150,490
Long-term debt	—		5,772			34			—			5,806
Deferred income taxes	—		75,075			21,910			—			96,985
Other long-term liabilities	—		73,057			10,300			(70,408		)	12,949
Total liabilities	—		276,356			64,281			(74,407		)	266,230
Equity:
Stockholders’ capital	1,640,385		1,972,819			880,745			(2,831,897		)	1,662,052
Accumulated other comprehensive loss	—		(4,737		)	(21,679		)	—			(26,416		)
Total stockholders’ equity	1,640,385		1,968,082			859,066			(2,831,897		)	1,635,636
Noncontrolling interest	—		—			4,749			—			4,749
Total equity	1,640,385		1,968,082			863,815			(2,831,897		)	1,640,385
Total liabilities and equity	$	1,640,385	$	2,244,438		$	928,096		$	(2,906,304	)	$	1,906,615



	Year Ended December 31, 2018
(in thousands)	Apergy Corporation			Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Cash provided (required) by operating activities	$	(51,728	)	$	200,907		$	15,720		$	(999	)	$	163,900

Cash provided (required) by investing activities:
Capital expenditures	—			(55,070		)	(2,848		)	—			(57,918		)
Proceeds from sale of property, plant and equipment	—			1,127			60			—			1,187
Proceeds from sale of business	—			2,473			—			—			2,473
Purchase price adjustments on acquisition	—			—			53			—			53
Net cash required by investing activities	—			(51,470		)	(2,735		)	—			(54,205		)

Cash provided (required) by financing activities:
Proceeds from long-term debt, net of discounts	713,963			—			—			—			713,963
Payment of debt issue costs	(16,006		)	—			—			—			(16,006		)
Repayment of long-term debt	(45,000		)	—			—			—			(45,000		)
Advances due to (from) affiliates	(600,802		)	621,109			(20,307		)	—			—
Distributions to Dover Corporation, net	(319		)	(744,258		)	7,021			999			(736,557		)
Distribution to noncontrolling interest	—			—			(2,720		)	—			(2,720		)
Payments on capital lease obligations	—			(4,518		)	—			—			(4,518		)
Net cash provided (required) by financing activities	51,836			(127,667		)	(16,006		)	999			(90,838		)

Effect of exchange rate changes on cash and cash equivalents	—			—			(737		)	—			(737		)

Net (increase) decrease in cash and cash equivalents	108			21,770			(3,758		)	—			18,120
Cash and cash equivalents at beginning of period	—			5,763			17,949			—			23,712
Cash and cash equivalents at end of period	$	108		$	27,533		$	14,191		$	—		$	41,832



	Year Ended December 31, 2017
(in thousands)	Apergy Corporation		Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Cash provided by operating activities	$	—	$	64,422		$	11,561		$	67		$	76,050

Cash provided (required) by investing activities:
Capital expenditures	—		(35,008		)	(1,646		)	—			(36,654		)
Acquisitions, net of cash and cash equivalents acquired	—		—			(8,842		)	—			(8,842		)
Proceeds from sale of property, plant and equipment	—		3,433			114			—			3,547
Net cash required by investing activities	—		(31,575		)	(10,374		)	—			(41,949		)

Cash provided (required) by financing activities:
Change in borrowings, net	—		—			(599		)	—			(599		)
Distributions to Dover Corporation, net	—		(27,124		)	(4,001		)	(67		)	(31,192		)
Distribution to noncontrolling interest	—		—			(1,212		)	—			(1,212		)
Payments on capital lease obligations	—		(3,690		)	—			—			(3,690		)
Net cash required by financing activities	—		(30,814		)	(5,812		)	(67		)	(36,693		)

Effect of exchange rate changes on cash and cash equivalents	—		—			277			—			277

Net (increase) decrease in cash and cash equivalents	—		2,033			(4,348		)	—			(2,315		)
Cash and cash equivalents at beginning of period	—		3,730			22,297			—			26,027
Cash and cash equivalents at end of period	$	—	$	5,763		$	17,949		$	—		$	23,712



	Year Ended December 31, 2016
(in thousands)	Apergy Corporation		Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Cash provided by operating activities	$	—	$	107,060		$	25,979		$	(48	)	$	132,991

Cash provided (required) by investing activities:
Capital expenditures	—		(22,325		)	(3,774		)	—			(26,099		)
Proceeds from sale of property, plant and equipment	—		2,245			281			—			2,526
Additions to intangible assets	—		(3,700		)	—			—			(3,700		)
Net cash required by investing activities	—		(23,780		)	(3,493		)	—			(27,273		)

Cash provided (required) by financing activities:
Distributions to Dover Corporation, net	—		(78,232		)	(6,070		)	48			(84,254		)
Distribution to noncontrolling interest	—		—			(1,727		)	—			(1,727		)
Payments of capital lease obligations	—		(4,037		)	—			—			(4,037		)
Net cash required by financing activities	—		(82,269		)	(7,797		)	48			(90,018		)

Effect of exchange rate changes on cash and cash equivalents	—		—			(90		)	—			(90		)

Net increase in cash and cash equivalents	—		1,011			14,599			—			15,610
Cash and cash equivalents at beginning of period	—		2,719			7,698			—			10,417
Cash and cash equivalents at end of period	$	—	$	3,730		$	22,297		$	—		$	26,027

Cash Flow Information

12 Months Ended

Dec. 31, 2018

Supplemental Cash Flow Elements [Abstract]

Cash Flow Information

CASH FLOW INFORMATION

Cash payments for income taxes, cash payments for interest incurred related to our debt, and non-cash capital lease additions are as follows:



	Years Ended December 31,
(in thousands)	2018		2017		2016
Cash information:
Cash paid for income taxes	$	27,191	$	8,698	$	7,285
Cash paid for interest	21,899		—		—
Non-cash information:
Capital lease additions	4,428		4,557		755

Lease Program

We continue to expand our ESP leased asset program in our Production & Automation Technologies segment. At the time of purchase, assets are recorded to inventory and are transferred to property, plant, and equipment when a customer contracts for an asset under our lease program. During the year ended December 31, 2018, we transferred $97.0 million of inventory into property, plant, and equipment as a result of assets entering our lease program. The transfer of assets from inventory to property, plant, and equipment upon entering our lease program is accounted for as a non-cash activity within our consolidated statement of cash flows.

Expenditures for assets that are expected to be placed into our leased asset program and with a useful life of less than one year are reported in “leased assets and other” in the operating section of our consolidated statement of cash flows. Additionally, cash receipts related to the recovery of net book value from the sale of assets on lease are presented in “lease assets and other” in the operating section of our statement of cash flows.

Expenditures for assets that are expected to be placed into our lease asset program and with a useful life of greater than one year are reported in “capital expenditures” in the investing section of our consolidated statement of cash flows. During the years ended December 31, 2018, 2017, and 2016 we purchased $26.7 million, $14.5 million, and $1.1 million, respectively, of assets with a useful life of greater than one year that are expected to be placed into our lease program.

Sale of Business

In October 2018, we closed on the sale of our Fisher Pump business and related property. Net proceeds of $2.5 million were received upon the close of the transaction, resulting in a gain of $1.3 million during the year ended December 31, 2018.

Selected Quarterly Financial Data

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)



	2018⁽¹⁾								2017⁽¹⁾
(in thousands, except per share data)	4th Qtr.		3rd Qtr.		2nd Qtr.		1st Qtr.		4th Qtr.		3rd Qtr.		2nd Qtr.		1st Qtr.
Revenue	$	311,202	$	316,468	$	305,850	$	283,126	$	265,195	$	258,832	$	256,161	$	230,278
Gross profit	105,271		113,734		103,680		93,614		75,534		84,952		84,630		75,360
Net income ⁽²⁾	22,732		25,494		22,075		24,194		61,225		18,820		19,033		13,586
Net income attributable to Apergy ⁽²⁾	22,571		25,263		22,155		24,052		61,155		18,556		18,754		13,269

Basic earnings per share ⁽³⁾	$	0.29	$	0.33	$	0.29	$	0.31	$	0.79	$	0.24	$	0.24	$	0.17
Diluted earnings per share ⁽³⁾	$	0.29	$	0.33	$	0.28	$	0.31	$	0.79	$	0.24	$	0.24	$	0.17

_______________________

⁽¹⁾We revised our previously issued financial statements to correct immaterial errors. See Note 1 for additional information.

⁽²⁾Includes a net tax benefit related to the Tax Reform Act during the three months ended December 31, 2017. See Note 15—Income Taxes for additional information.

⁽³⁾On May 9, 2018, 77,339,828 shares of our common stock were distributed to Dover stockholders in conjunction with the Separation. For comparative purposes, 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 with positive income prior to Separation.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2018

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II—Valuation and Qualifying Accounts



Allowance for Doubtful Accounts	Balance at Beginning of Year		Charged to Cost and Expense⁽¹⁾		Accounts Written Off			Other			Balance at End of Year
Year Ended December 31, 2018	$	4,753	$	2,007	$	(1,489	)	$	(93	)	$	5,178
Year Ended December 31, 2017	5,634		954		(1,882		)	47			4,753
Year Ended December 31, 2016	4,431		2,941		(1,469		)	(269		)	5,634

_______________________

⁽¹⁾ Net of recoveries on previously reserved or written-off balances.



Deferred Tax Valuation Allowance	Balance at Beginning of Year		Additions		Reductions			Other		Balance at End of Year
Year Ended December 31, 2018	$	1,280	$	331	$	(889	)	$	—	$	722
Year Ended December 31, 2017	1,082		198		—			—		1,280
Year Ended December 31, 2016	64		1,018		—			—		1,082



LIFO Valuation Adjustments	Balance at Beginning of Year		Charged to Cost and Expense		Reductions			Other		Balance at End of Year
Year Ended December 31, 2018	$	10,556	$	2,311	$	—		$	—	$	12,867
Year Ended December 31, 2017	9,381		1,175		—			—		10,556
Year Ended December 31, 2016	12,933		—		(3,552		)	—		9,381

New Accounting Standards (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Changes and Error Corrections [Abstract]

Basis of Presentation

Our consolidated financial statements were prepared in U.S. dollars and in accordance with U.S. generally accepted accounting principles (“GAAP”).

Use of Estimates

Cash and Cash Equivalents

Cash and cash equivalents—Cash equivalents are highly liquid, short-term investments with original maturities of three months or less from their date of purchase.

Accounts Receivable and Allowance for Doubtful Accounts

Inventories

Property, Plant and Equipment

Impairment of Property, Plant and Equipment

Goodwill, Other Intangible Assets and Long-Lived Assets

Revenue Recognition

Refer to Note 2 for additional information related to practical expedients and elections made under ASC Topic 606.

Stock-Based Compensation

Employee Benefit Plans

Research and Development Costs

Research and development costs—Research and development costs are expensed as incurred

Income Taxes

We record interest and penalties related to unrecognized tax benefits as a component of our provision for income taxes.

Earnings per Share (“EPS”)

Fair Value Measurements


•	Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.


•	Level 2: Observable inputs other than quoted prices included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.


•	Level 3: Unobservable inputs reflecting management’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

Derivative Financial Instruments

Foreign Currency

Reclassifications

Reclassifications—Certain prior-year amounts have been reclassified to conform to the current year presentation.

Recently Issued Accounting Standards

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 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:



	Years Ended December 31,
(in thousands, except per share data)	2018		2017		2016
Net income (loss) attributable to Apergy	$	94,041	$	111,734	$	(12,751	)

Weighted-average number of shares outstanding	77,342		77,340		77,340
Dilutive effect of stock-based compensation	350		550		—
Total shares and dilutive securities	77,692		77,890		77,340

Basic earnings (loss) per share attributable to Apergy	$	1.22	$	1.44	$	(0.16	)
Diluted earnings (loss) per share attributable to Apergy	$	1.21	$	1.43	$	(0.16	)

Inventories (Tables)

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventories consisted of the following:



(in thousands)	December 31, 2018			December 31, 2017
Raw materials	$	52,057		$	45,408
Work in progress	11,416			10,879
Finished goods	180,624			167,227
	244,097			223,514
LIFO and valuation adjustments	(25,778		)	(22,112		)
Inventories, net	$	218,319		$	201,402

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment consisted of the following:



(in thousands)	December 31, 2018			December 31, 2017
Land	$	13,607		$	13,557
Buildings and improvements	105,036			99,233
Machinery, equipment and other	518,029			447,991
	636,672			560,781
Accumulated depreciation	(392,344		)	(347,219		)
Property, plant and equipment, net	$	244,328		$	213,562

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of 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, 2016	$	801,443		$	101,136	$	902,579
Acquisitions	5,053			—		5,053
Foreign currency translation	2,456			—		2,456
December 31, 2017	808,952			101,136		910,088
Purchase price adjustment ⁽¹⁾	(53		)	—		(53		)
Foreign currency translation	(5,050		)	—		(5,050		)
December 31, 2018	$	803,849		$	101,136	$	904,985

_______________________

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

Schedule of Finite-Lived Intangible Assets

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



	December 31, 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	$	568,643	$	319,827	$	248,816	$	572,415	$	276,655	$	295,760
Trademarks	36,296		21,575		14,721		36,312		17,821		18,491
Patents	38,141		23,568		14,573		38,679		20,449		18,230
Unpatented technologies	9,700		9,700		—		9,700		9,700		—
Drawings and manuals	3,000		2,142		858		3,067		2,109		958
Other	5,268		4,148		1,120		5,382		3,911		1,471
	661,048		380,960		280,088		665,555		330,645		334,910
Indefinite-lived intangible assets:
Trademarks	3,600		—		3,600		3,600		—		3,600
Total	$	664,648	$	380,960	$	283,688	$	669,155	$	330,645	$	338,510

Schedule of Indefinite-Lived Intangible Assets

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



	December 31, 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	$	568,643	$	319,827	$	248,816	$	572,415	$	276,655	$	295,760
Trademarks	36,296		21,575		14,721		36,312		17,821		18,491
Patents	38,141		23,568		14,573		38,679		20,449		18,230
Unpatented technologies	9,700		9,700		—		9,700		9,700		—
Drawings and manuals	3,000		2,142		858		3,067		2,109		958
Other	5,268		4,148		1,120		5,382		3,911		1,471
	661,048		380,960		280,088		665,555		330,645		334,910
Indefinite-lived intangible assets:
Trademarks	3,600		—		3,600		3,600		—		3,600
Total	$	664,648	$	380,960	$	283,688	$	669,155	$	330,645	$	338,510

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated future amortization expense related to intangible assets held as of December 31, 2018, is as follows:



(in thousands)	Estimated Amortization
2019	$	51,073
2020	49,623
2021	48,795
2022	47,323
2023	33,452

Warranty (Tables)

12 Months Ended

Dec. 31, 2018

Guarantees and Product Warranties [Abstract]

Schedule of Product Warranty Liability

Warranty cost and accrual information is as follows:



	Years Ended December 31,
(in thousands)	2018			2017			2016
Balance at beginning of year	$	3,070		$	4,666		$	4,421
Expenses for warranties	3,015			309			2,109
Claims paid	(3,320		)	(1,896		)	(1,518		)
Other adjustments, including foreign currency translation	(80		)	(9		)	(346		)
Balance at end of year	$	2,685		$	3,070		$	4,666

Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Contractual Obligation, Maturity Schedule

As of December 31, 2018, aggregate contractual future principal payments on long-term debt are as follows:



(in thousands)	Principal Payments⁽¹⁾
2019	$	—
2020	—
2021	—
2022	—
2023	—
Thereafter	670,000
Total	$	670,000

_______________________

⁽¹⁾ Principal payments included relate to our term loan facility and senior notes. See Note 11—Commitment and Contingencies for future payments related to capital lease obligations.

Schedule of Debt

Long-term debt consisted of the following:



(in thousands)	December 31, 2018			December 31, 2017
Revolving credit facility	$	—		$	—
Term loan facility	370,000			—
6.375% Senior Notes due 2026	300,000			—
Capital lease obligations	7,485			5,806
Total	677,485			5,806
Net unamortized discounts and issuance costs	(11,377		)	—
Total long-term debt	$	666,108		$	5,806

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

As of December 31, 2018, future minimum rental payments under noncancellable operating and capital leases were:



(in thousands)	Operating		Capital
2019	$	14,781	$	4,447
2020	12,768		2,636
2021	11,240		987
2022	10,951		97
2023	10,268		22
Thereafter	8,734		25
Total	$	68,742	$	8,214

Schedule of Future Minimum Lease Payments for Capital Leases

As of December 31, 2018, future minimum rental payments under noncancellable operating and capital leases were:



(in thousands)	Operating		Capital
2019	$	14,781	$	4,447
2020	12,768		2,636
2021	11,240		987
2022	10,951		97
2023	10,268		22
Thereafter	8,734		25
Total	$	68,742	$	8,214

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Summary of capital stock activity

The following is a summary of our capital stock activity:



(in thousands)	Common Stock
December 31, 2017	—
Issuance of common stock at the Separation	77,340
Shares issued—share-based compensation	13
December 31, 2018	77,353

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, 2016	$	(26,321	)	$	(7,336	)	$	(33,657	)
Other comprehensive income before reclassifications, net of tax	4,385			2,598			6,983
Reclassification adjustment for net losses included in net income, net of tax	—			258			258
Other comprehensive income, net of tax	4,385			2,856			7,241
December 31, 2017	(21,936		)	(4,480		)	(26,416		)
Reclassification adjustment for cumulative effect of change in accounting principle	—			(1,315		)	(1,315		)
Net transfer from Dover	—			(2,421		)	(2,421		)
Other comprehensive income (loss) before reclassifications, net of tax	(14,210		)	856			(13,354		)
Reclassification adjustment for net losses included in net income, net of tax	—			600			600
Other comprehensive income (loss), net of tax	(14,210		)	1,456			(12,754		)
December 31, 2018	$	(36,146	)	$	(6,760	)	$	(42,906	)

Reclassifications from accumulated 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:



	Years Ended December 31,									Affected line items on the consolidated statements of income (loss)
(in thousands)	2018			2017			2016
Amortization of actuarial loss and net transition obligation⁽¹⁾	$	330		$	397		$	362		Other expense, net
Amortization of prior service cost ⁽¹⁾	1			2			2			Other expense, net
Settlement loss ⁽¹⁾	479			—			—			Other expense, net
	810			399			364			Income (loss) before income taxes
	(210		)	(141		)	(129		)	Provision for (benefit from) income taxes
	$	600		$	258		$	235		Net income (loss)

_______________________


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

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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Revenue from Contract with Customer [Abstract]

Revenue (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Disaggregation of Revenue

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



	Years Ended December 31,
(in thousands)	2018			2017⁽¹⁾			2016⁽¹⁾
Drilling Technologies	$	285,565		$	227,653		$	113,320
Production & Automation Technologies:
Artificial lift	724,554			602,287			499,033
Digital products	117,801			82,093			65,351
Other production equipment	91,232			103,564			75,182
Intra-segment eliminations	(2,506		)	(5,131		)	(1,549		)
	931,081			782,813			638,017
Total revenue	$	1,216,646		$	1,010,466		$	751,337

Revenue disaggregated by geography was as follows:



	Years Ended December 31,
(in thousands)	2018		2017⁽¹⁾		2016⁽¹⁾
United States	$	957,657	$	770,822	$	559,266
Canada	79,816		79,186		54,714
Middle East	53,516		48,899		54,767
Europe	38,669		28,112		19,935
Latin America	33,976		34,350		23,580
Asia-Pacific	17,605		20,072		17,570
Other	35,407		29,025		21,505
Total revenue	$	1,216,646	$	1,010,466	$	751,337

_______________________

Schedule of Contract Balances

The beginning and ending contract asset and contract liability balances from contracts with customers were as follows:



(in thousands)	December 31, 2018		January 1, 2018
Contract assets	$	4,571	$	4,733
Contract liabilities - current	5,863		3,912

Restructuring (Tables)

12 Months Ended

Dec. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs, By Segment

We initiated various restructuring programs and incurred severance and other restructuring costs by segment as follows:



	Years Ended December 31,
(in thousands)	2018		2017		2016
Production & Automation Technologies	$	5,632	$	6,921	$	12,757
Drilling Technologies	—		—		2,405
Total	$	5,632	$	6,921	$	15,162

Cost of goods and services	$	4,693	$	6,332	$	9,465
Selling, general and administrative expense	939		589		5,697
Total	$	5,632	$	6,921	$	15,162

Income Taxes - (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Domestic and foreign components of income (loss) before income taxes

Domestic and foreign components of income (loss) before income taxes were as follows:



	Years Ended December 31,
(in thousands)	2018		2017		2016
Domestic	$	106,172	$	68,356	$	(26,035	)
Foreign	17,119		22,432		7,092
Income (loss) before income tax	$	123,291	$	90,788	$	(18,943	)

Provision for (benefit from) income tax

The provision for (benefit from) income taxes consisted of:



	Years Ended December 31,
(in thousands)	2018			2017			2016
Current:
U.S. federal	$	21,386		$	42,693		$	8,872
State and local	1,559			4,257			1,995
Foreign	7,139			6,176			971
Total current	30,084			53,126			11,838
Deferred:
U.S. federal	(2,255		)	(73,544		)	(19,161		)
State and local	3,466			(1,361		)	(771		)
Foreign	(2,499		)	(97		)	51
Total deferred	(1,288		)	(75,002		)	(19,881		)
Provision for (benefit from) income taxes	$	28,796		$	(21,876	)	$	(8,043	)

Effective income tax rate reconciliation

The effective income tax rate was different from the statutory U.S. federal income tax rate due to the following:



	Years Ended December 31,
	2018		2017		2016
Statutory U.S. federal income tax rate	21.0	%	35.0	%	35.0	%
Net difference resulting from:
State and local taxes, net of federal income tax benefit	3.3		2.1		(3.9	)
Foreign derived intangible income	(1.9	)	—		—
Foreign operations tax effect	0.8		(2.8	)	7.8
Research and experimentation tax credits	(0.6	)	(0.7	)	2.3
Domestic manufacturing deduction	—		(4.4	)	6.2
Nondeductible expenses	0.7		0.7		(3.3	)
ESOP dividends	(0.1	)	(0.2	)	2.9
Branch income	—		1.1		(2.9	)
Changes due to the Tax Reform Act	—		(54.3	)	—
Other	0.2		(0.6	)	(1.6	)
Effective income tax rate	23.4	%	(24.1	)%	42.5	%

Significant components of deferred tax assets and liabilities

Significant components of deferred tax assets and liabilities were as follows:



(in thousands)	December 31, 2018			December 31, 2017
Deferred tax assets attributable to:
Accrued compensation	$	7,535		$	4,568
Accrued expenses, principally for state income taxes, interest and warranty	1,156			846
Net operating loss and other carryforwards	766			1,280
Accounts receivable, principally due to allowance for doubtful accounts	973			827
Long-term liabilities, principally warranty and exit cost	505			678
Other assets	374			132
Deferred tax assets	11,309			8,331
Valuation allowance	(722		)	(1,280		)
Deferred tax assets, net of valuation allowance	$	10,587		$	7,051
Deferred tax liabilities attributable to:
Inventories	$	(2,061	)	$	(3,687	)
Intangible assets, including goodwill	(83,436		)	(83,669		)
Property, plant and equipment	(25,520		)	(16,134		)
Deferred tax liabilities	(111,017		)	(103,490		)
Net deferred tax liabilities	$	(100,430	)	$	(96,439	)

Other non-current assets	$	1,294		$	546
Deferred income taxes	(101,724		)	(96,985		)
	$	(100,430	)	$	(96,439	)

Employee Benefit Plans - (Tables)

12 Months Ended

Dec. 31, 2018

Defined Benefit Plan [Abstract]

Schedule of Benefit Obligations, Assets and Funded Status

as of December 31, 2018 and 2017, were as follows:



	Pensions						Other post-retirement benefits
(in thousands)	2018			2017			2018			2017
Projected benefit obligation at January 1	$	3,881		$	3,512		$	14,197		$	18,600
Service cost	598			106			—			—
Interest cost	455			137			448			621
Benefits paid	(370		)	(99		)	(1,022		)	(1,710		)
Actuarial gain	(530		)	(22		)	(562		)	(3,314		)
Liabilities assumed from the Separation	14,348			—			—			—
Settlements and curtailments	(1,763		)	—			—			—
Foreign currency translation and other	(671		)	247			—			—
Projected benefit obligation at December 31	15,948			3,881			13,061			14,197

Fair value of plan assets at January 1	3,993			3,391			—			—
Actual return on plan assets	(76		)	290			—			—
Company contributions	4,740			166			1,022			1,710
Benefits paid	(370		)	(99		)	(1,022		)	(1,710		)
Assets assumed from the Separation	9,227			—			—			—
Settlements and curtailments	(1,763		)	—			—			—
Foreign currency translation and other	(621		)	245			—			—
Fair value of plan assets at December 31	15,130			3,993			—			—
Funded (unfunded) status at December 31	$	(818	)	$	112		$	(13,061	)	$	(14,197	)

Other non-current assets	$	146		$	112		$	—		$	—
Accrued compensation and employee benefits	—			—			(1,598		)	(1,547		)
Other long-term liabilities	(964		)	—			(11,463		)	(12,650		)
Funded (unfunded) status	$	(818	)	$	112		$	(13,061	)	$	(14,197	)

Accumulated benefit obligations	$	14,076		$	3,881		$	13,061		$	14,197

Summary of the pre-tax amounts in accumulated other comprehensive (income) loss of net periodic benefit cost not yet recognized



	Pensions						Other post-retirement benefits
(in thousands)	2018			2017			2018		2017
Pre-tax amounts recognized in accumulated other comprehensive loss (income):
Unrecognized net actuarial loss	$	3,586		$	1,449		$	5,685	$	6,078
Unrecognized prior service cost	25			40			—		—
Unrecognized net transition asset	(8		)	(20		)	—		—
Accumulated other comprehensive loss	$	3,603		$	1,469		$	5,685	$	6,078

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

accumulated benefit obligations and fair values of plan assets where the accumulated benefit obligation exceeds the fair value of plan assets as of December 31, 2018 and 2017:



(in thousands)	2018		2017
Aggregate accumulated benefit obligation	$	16,783	$	—
Aggregate fair value of plan assets	3,672		—

Schedule of Net Benefit Costs

Components of the net periodic benefit cost were as follows:



	Pensions									Other post-retirement benefits
(in thousands)	2018			2017			2016			2018		2017			2016
Service cost	$	598		$	106		$	102		$	—	$	—		$	—
Interest cost	455			137			129			448		621			719
Expected return on plan assets	(593		)	(198		)	(186		)	—		—			—
Amortization of prior service cost	1			2			2			—		—			—
Amortization of actuarial loss	127			68			58			202		330			305
Amortization of transition obligation	1			(1		)	(1		)	—		—			—
Settlement loss	479			—			—			—		—			—
Other	—			—			—			—		(1		)	—
Net periodic benefit cost	$	1,068		$	114		$	104		$	650	$	950		$	1,024

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

The estimated amounts expected to be amortized from the portion of each component of accumulated other comprehensive loss as a component of net periodic benefit cost, during the next fiscal year are as follows:



(in thousands)	Pensions		Other post-retirement benefits
Net actuarial loss	$	158	$	200
Prior service cost	1		—
Transition obligation	3		—

Schedule of Assumptions Used in determining the Benefit Obligation

The following weighted-average assumptions were used to determine the benefit obligations:



	Pensions				Other post-retirement benefits
	2018		2017		2018		2017
Discount rate	3.90	%	3.50	%	4.10	%	3.35	%

The following weighted-average assumptions were used to determine the net periodic benefit cost:



	Pensions						Other post-retirement benefits
	2018		2017		2016		2018		2017
Discount rate	3.68	%	3.75	%	4.00	%	3.35	%	3.55	%
Expected return on plan assets	4.80	%	5.50	%	5.75	%

Schedule of Allocation of Plan Assets



	Pensions
	December 31, 2018								December 31, 2017
(in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Mutual funds	$	4,775	$	6,683	$	—	$	11,458	$	2,399	$	1,594	$	—	$	3,993
Cash and cash equivalents	3,672		—		—		3,672		—		—		—		—
Total	$	8,447	$	6,683	$	—	$	15,130	$	2,399	$	1,594	$	—	$	3,993

Schedule of Estimated Future Benefit Payments



(in thousands)	Pensions		Other Post-retirement benefits
2019	$	507	$	1,598
2020	555		1,488
2021	757		1,333
2022	1,050		1,222
2023	586		1,123
2024-2028	3,889		3,997

Equity and Cash Incentive Program (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based compensation expense

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



	Years Ended December 31,
	2018			2017			2016
Stock-based compensation expense	$	5,375		$	2,236		$	2,293
Tax benefit	(1,141		)	(774		)	(787		)
Stock-based compensation expense, net of tax	$	4,234		$	1,462		$	1,506

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

the fair value of each SAR granted was estimated on the grant date using a Black-Scholes option-pricing model utilizing the following assumptions:



	2017			2016
Risk-free interest rate	1.80		%	1.05		%
Dividend yield	2.27		%	3.09		%
Expected life (years)	4.6			4.6
Volatility	21.90		%	26.17		%
Grant price	$	79.28		$	57.25
Fair value at date of grant	$	12.63		$	9.25

Schedule of Share-based Compensation, SARs Outstanding Activity

A summary of activity relating to SARs outstanding for the year ended December 31, 2018, is as follows:



	SARs
	Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2018	—		$	—
Converted	488,039		29.43
Granted	—		—
Forfeited / expired	(6,287	)	28.62
Exercised	(3,802	)	31.55
Outstanding at December 31, 2018	477,950		29.43		7.1	$	529

Exercisable at December 31, 2018	95,142		$	31.15	5.2	$	24

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable

Other information regarding the exercise of SARs is presented below:



(in thousands)	2018		2017		2016
SARs:
Fair value of SARs that became exercisable	$	310	$	1,239	$	1,564
Aggregate intrinsic value of SARs exercised	40		2,787		799

Schedule of Share-based Payment Award, Performance Shares, Valuation Assumptions

The fair value used in determining stock-based compensation expense of the performance share awards issued in 2018 is as follows:



Performance shares:	2018
Fair value per share at date of grant	$	56.32

The fair value and average attainment used in determining stock-based compensation expense of the performance shares issued in 2017 and 2016 are as follows:



Performance shares:	2017			2016
Fair value per share at date of grant	$	79.28		$	57.25
Average attainment rate reflected in expense	0.0		%	0.0		%

Schedule of Share-based Compensation, Performance Shares Award, Outstanding Activity

A summary of activity for the Apergy performance share awards for the year ended December 31, 2018, is as follows:



	Shares	Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2018	—	$	—
Granted	86,817	56.32
Vested	—	—
Unvested at December 31, 2018	86,817	$	56.32

Schedule of Share-based Compensation, Restricted Stock Units Award Activity

A summary of activity for restricted stock units for the year ended December 31, 2018, is as follows:



	Shares		Weighted-Average Grant-Date Fair Value
Unvested at January 1, 2018	—		$	—
Converted	61,717		30.26
Granted	368,848		43.63
Forfeited	(3,065	)	37.45
Vested	(12,660	)	36.93
Unvested at December 31, 2018	414,840		$	41.91

Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment revenue and operating profit

Segment revenue and segment operating profit



	Years Ended December 31,
(in thousands)	2018		2017		2016
Segment revenue:
Production & Automation Technologies	$	931,081	$	782,813	$	638,017
Drilling Technologies	285,565		227,653		113,320
Total revenue	$	1,216,646	$	1,010,466	$	751,337

Income (loss) before income taxes:
Segment operating profit (loss):
Production & Automation Technologies	$	75,918	$	26,890	$	(21,744	)
Drilling Technologies	98,620		74,317		8,397
Total segment operating profit (loss)	174,538		101,207		(13,347		)
Corporate expense and other ⁽¹⁾	23,807		9,666		5,119
Interest expense, net	27,440		753		477
Income (loss) before income taxes	$	123,291	$	90,788	$	(18,943	)

_______________________


⁽¹⁾	Corporate expense and other 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 and the results attributable to our noncontrolling interest.

Reconciliation of Assets from Segment to Consolidated



	December 31,
(in thousands)	2018		2017
Production & Automation Technologies	$	1,699,820	$	1,685,622
Drilling Technologies	230,977		220,993
Corporate	40,959		—
Total assets	$	1,971,756	$	1,906,615

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas



	December 31,
(in thousands)	2018		2017
Long-lived assets:
United States	$	233,809	$	199,909
Middle East	3,616		5,189
Canada	6,299		7,587
Australia	254		336
Latin & South America	350		541
Total long-lived assets	$	244,328	$	213,562

Schedule of Segment Reporting Information, by Segment



	Capital Expenditures Years Ended December 31,						Depreciation & Amortization Years Ended December 31,
(in thousands)	2018		2017		2016		2018		2017		2016
Production & Automation Technologies	$	45,190	$	28,483	$	21,961	$	112,955	$	100,912	$	99,664
Drilling Technologies	11,123		8,171		4,138		11,037		11,950		12,448
Corporate	1,605		—		—		469		—		—
Total	$	57,918	$	36,654	$	26,099	$	124,461	$	112,862	$	112,112

Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Income Statement



	Year Ended December 31, 2018
(in thousands)	Apergy Corporation			Subsidiary Guarantors		Subsidiary Non-guarantors			Adjustments and eliminations			Total
Product revenue	$	—		$	961,082	$	124,389		$	—		$	1,085,471
Service revenue	—			56,996		26,159			—			83,155
Lease, related party and other revenue	—			71,977		19,725			(43,682		)	48,020
Total revenue	—			1,090,055		170,273			(43,682		)	1,216,646
Cost of goods and services	—			696,044		147,280			(42,977		)	800,347
Gross profit	—			394,011		22,993			(705		)	416,299
Selling, general and administrative expense	1,614			239,360		21,651			—			262,625
Interest expense, net	26,973			425		42			—			27,440
Other expense, net	—			1,322		1,620			1			2,943
Income (loss) before income taxes and equity in earnings of affiliates	(28,587		)	152,904		(320		)	(706		)	123,291
Provision for (benefit from) income taxes	(8,727		)	37,193		478			(148		)	28,796
Income (loss) before equity in earnings of affiliates	(19,860		)	115,711		(798		)	(558		)	94,495
Equity in earnings of affiliates	113,901			27,121		46,802			(187,824		)	—
Net income	94,041			142,832		46,004			(188,382		)	94,495
Net income attributable to noncontrolling interest	—			—		454			—			454
Net income attributable to Apergy	$	94,041		$	142,832	$	45,550		$	(188,382	)	$	94,041
Comprehensive income attributable to Apergy	$	81,287		$	141,528	$	34,098		$	(175,626	)	$	81,287



	Year Ended December 31, 2017
(in thousands)	Apergy Corporation		Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Product revenue	$	—	$	797,504		$	122,165		$	—		$	919,669
Service revenue	—		35,205			28,181			—			63,386
Lease, related party and other revenue	—		49,353			14,161			(36,103		)	27,411
Total revenue	—		882,062			164,507			(36,103		)	1,010,466
Cost of goods and services	—		585,385			140,516			(35,911		)	689,990
Gross profit	—		296,677			23,991			(192		)	320,476
Selling, general and administrative expense	—		199,882			18,676			—			218,558
Interest expense, net	—		724			29			—			753
Other expense, net	—		10,169			208			—			10,377
Income before income taxes and equity in earnings of affiliates	—		85,902			5,078			(192		)	90,788
Benefit from income taxes	—		(10,272		)	(11,537		)	(67		)	(21,876		)
Income before equity in earnings of affiliates	—		96,174			16,615			(125		)	112,664
Equity in earnings of affiliates	111,734		23,426			12,334			(147,494		)	—
Net income	111,734		119,600			28,949			(147,619		)	112,664
Net income attributable to noncontrolling interest	—		—			930			—			930
Net income attributable to Apergy	$	111,734	$	119,600		$	28,019		$	(147,619	)	$	111,734
Comprehensive income attributable to Apergy	$	118,975	$	122,480		$	32,381		$	(154,861	)	$	118,975



	Year Ended December 31, 2016
(in thousands)	Apergy Corporation			Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Product revenue	$	—		$	577,351		$	96,096		$	—		$	673,447
Service revenue	—			24,215			26,601			—			50,816
Lease, related party and other revenue	—			42,826			19,917			(35,669		)	27,074
Total revenue	—			644,392			142,614			(35,669		)	751,337
Cost of goods and services	—			459,522			132,350			(35,806		)	556,066
Gross profit	—			184,870			10,264			137			195,271
Selling, general and administrative expense	—			182,866			21,517			—			204,383
Interest expense, net	—			465			12			—			477
Other expense, net	—			9,163			191			—			9,354
Loss before income taxes and equity in loss of affiliates	—			(7,624		)	(11,456		)	137			(18,943		)
Benefit from income taxes	—			(2,750		)	(5,341		)	48			(8,043		)
Loss before equity in loss of affiliates	—			(4,874		)	(6,115		)	89			(10,900		)
Equity in loss of affiliates	(12,751		)	(23,669		)	(8,273		)	44,693			—
Net loss	(12,751		)	(28,543		)	(14,388		)	44,782			(10,900		)
Net income attributable to noncontrolling interest	—			—			1,851			—			1,851
Net loss attributable to Apergy	$	(12,751	)	$	(28,543	)	$	(16,239	)	$	44,782		$	(12,751	)
Comprehensive loss attributable to Apergy	$	(11,714	)	$	(28,538	)	$	(15,205	)	$	43,743		$	(11,714	)

Condensed Consolidating Balance Sheet



	December 31, 2018
(in thousands)	Apergy Corporation		Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Assets
Cash and cash equivalents	$	108	$	27,533		$	14,191		$	—		$	41,832
Receivables	1,743		230,230			35,019			(17,044		)	249,948
Inventories, net	—		189,015			30,936			(1,632		)	218,319
Prepaid expenses and other current assets	24,583		17,064			3,106			(24,542		)	20,211
Total current assets	26,434		463,842			83,252			(43,218		)	530,310
Property, plant and equipment, net	—		231,373			12,955			—			244,328
Goodwill	—		633,771			271,214			—			904,985
Advances due from affiliates	600,802		14,185			82,889			(697,876		)	—
Investment in subsidiaries	1,013,869		687,691			545,298			(2,246,858		)	—
Intangible assets, net	—		198,531			85,157			—			283,688
Other assets	3,996		2,371			2,078			—			8,445
Total assets	1,645,101		2,231,764			1,082,843			(2,987,952		)	1,971,756
Liabilities and Equity
Accounts payable	22		114,745			33,335			(17,044		)	131,058
Accrued compensation and employee benefits	—		35,278			5,268			—			40,546
Accrued expenses and other current liabilities	4,929		46,722			4,914			(26,174		)	30,391
Total current liabilities	4,951		196,745			43,517			(43,218		)	201,995
Advances due to affiliates	—		683,700			14,176			(697,876		)	—
Long-term debt	658,623		7,363			122			—			666,108
Deferred income taxes	—		81,296			20,428			—			101,724
Other long-term liabilities	—		19,441			961			—			20,402
Total liabilities	663,574		988,545			79,204			(741,094		)	990,229
Equity:
Stockholders’ capital	981,527		1,250,573			1,036,733			(2,246,858		)	1,021,975
Accumulated other comprehensive loss	—		(7,354		)	(35,552		)	—			(42,906		)
Total stockholders’ equity	981,527		1,243,219			1,001,181			(2,246,858		)	979,069
Noncontrolling interest	—		—			2,458			—			2,458
Total equity	981,527		1,243,219			1,003,639			(2,246,858		)	981,527
Total liabilities and equity	$	1,645,101	$	2,231,764		$	1,082,843		$	(2,987,952	)	$	1,971,756



	December 31, 2017
(in thousands)	Apergy Corporation		Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Assets
Cash and cash equivalents	$	—	$	5,763		$	17,949		$	—		$	23,712
Receivables	—		170,788			34,335			(3,674		)	201,449
Inventories, net	—		174,842			27,488			(928		)	201,402
Prepaid expenses and other current assets	—		12,864			2,048			—			14,912
Total current assets	—		364,257			81,820			(4,602		)	441,475
Property, plant and equipment, net	—		197,309			16,253			—			213,562
Goodwill	—		633,734			276,354			—			910,088
Advances due from affiliates	—		10,299			60,109			(70,408		)	—
Investment in subsidiaries	1,640,385		801,915			388,994			(2,831,294		)	—
Intangible assets, net	—		234,795			103,715			—			338,510
Other assets	—		2,129			851			—			2,980
Total assets	1,640,385		2,244,438			928,096			(2,906,304		)	1,906,615
Liabilities and Equity
Accounts payable	—		83,866			18,634			(3,674		)	98,826
Accrued compensation and employee benefits	—		24,875			5,414			—			30,289
Accrued expenses and other current liabilities	—		13,711			7,989			(325		)	21,375
Total current liabilities	—		122,452			32,037			(3,999		)	150,490
Long-term debt	—		5,772			34			—			5,806
Deferred income taxes	—		75,075			21,910			—			96,985
Other long-term liabilities	—		73,057			10,300			(70,408		)	12,949
Total liabilities	—		276,356			64,281			(74,407		)	266,230
Equity:
Stockholders’ capital	1,640,385		1,972,819			880,745			(2,831,897		)	1,662,052
Accumulated other comprehensive loss	—		(4,737		)	(21,679		)	—			(26,416		)
Total stockholders’ equity	1,640,385		1,968,082			859,066			(2,831,897		)	1,635,636
Noncontrolling interest	—		—			4,749			—			4,749
Total equity	1,640,385		1,968,082			863,815			(2,831,897		)	1,640,385
Total liabilities and equity	$	1,640,385	$	2,244,438		$	928,096		$	(2,906,304	)	$	1,906,615

Condensed Consolidating Cash Flow Statement



	Year Ended December 31, 2018
(in thousands)	Apergy Corporation			Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Cash provided (required) by operating activities	$	(51,728	)	$	200,907		$	15,720		$	(999	)	$	163,900

Cash provided (required) by investing activities:
Capital expenditures	—			(55,070		)	(2,848		)	—			(57,918		)
Proceeds from sale of property, plant and equipment	—			1,127			60			—			1,187
Proceeds from sale of business	—			2,473			—			—			2,473
Purchase price adjustments on acquisition	—			—			53			—			53
Net cash required by investing activities	—			(51,470		)	(2,735		)	—			(54,205		)

Cash provided (required) by financing activities:
Proceeds from long-term debt, net of discounts	713,963			—			—			—			713,963
Payment of debt issue costs	(16,006		)	—			—			—			(16,006		)
Repayment of long-term debt	(45,000		)	—			—			—			(45,000		)
Advances due to (from) affiliates	(600,802		)	621,109			(20,307		)	—			—
Distributions to Dover Corporation, net	(319		)	(744,258		)	7,021			999			(736,557		)
Distribution to noncontrolling interest	—			—			(2,720		)	—			(2,720		)
Payments on capital lease obligations	—			(4,518		)	—			—			(4,518		)
Net cash provided (required) by financing activities	51,836			(127,667		)	(16,006		)	999			(90,838		)

Effect of exchange rate changes on cash and cash equivalents	—			—			(737		)	—			(737		)

Net (increase) decrease in cash and cash equivalents	108			21,770			(3,758		)	—			18,120
Cash and cash equivalents at beginning of period	—			5,763			17,949			—			23,712
Cash and cash equivalents at end of period	$	108		$	27,533		$	14,191		$	—		$	41,832



	Year Ended December 31, 2017
(in thousands)	Apergy Corporation		Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Cash provided by operating activities	$	—	$	64,422		$	11,561		$	67		$	76,050

Cash provided (required) by investing activities:
Capital expenditures	—		(35,008		)	(1,646		)	—			(36,654		)
Acquisitions, net of cash and cash equivalents acquired	—		—			(8,842		)	—			(8,842		)
Proceeds from sale of property, plant and equipment	—		3,433			114			—			3,547
Net cash required by investing activities	—		(31,575		)	(10,374		)	—			(41,949		)

Cash provided (required) by financing activities:
Change in borrowings, net	—		—			(599		)	—			(599		)
Distributions to Dover Corporation, net	—		(27,124		)	(4,001		)	(67		)	(31,192		)
Distribution to noncontrolling interest	—		—			(1,212		)	—			(1,212		)
Payments on capital lease obligations	—		(3,690		)	—			—			(3,690		)
Net cash required by financing activities	—		(30,814		)	(5,812		)	(67		)	(36,693		)

Effect of exchange rate changes on cash and cash equivalents	—		—			277			—			277

Net (increase) decrease in cash and cash equivalents	—		2,033			(4,348		)	—			(2,315		)
Cash and cash equivalents at beginning of period	—		3,730			22,297			—			26,027
Cash and cash equivalents at end of period	$	—	$	5,763		$	17,949		$	—		$	23,712



	Year Ended December 31, 2016
(in thousands)	Apergy Corporation		Subsidiary Guarantors			Subsidiary Non-guarantors			Adjustments and eliminations			Total
Cash provided by operating activities	$	—	$	107,060		$	25,979		$	(48	)	$	132,991

Cash provided (required) by investing activities:
Capital expenditures	—		(22,325		)	(3,774		)	—			(26,099		)
Proceeds from sale of property, plant and equipment	—		2,245			281			—			2,526
Additions to intangible assets	—		(3,700		)	—			—			(3,700		)
Net cash required by investing activities	—		(23,780		)	(3,493		)	—			(27,273		)

Cash provided (required) by financing activities:
Distributions to Dover Corporation, net	—		(78,232		)	(6,070		)	48			(84,254		)
Distribution to noncontrolling interest	—		—			(1,727		)	—			(1,727		)
Payments of capital lease obligations	—		(4,037		)	—			—			(4,037		)
Net cash required by financing activities	—		(82,269		)	(7,797		)	48			(90,018		)

Effect of exchange rate changes on cash and cash equivalents	—		—			(90		)	—			(90		)

Net increase in cash and cash equivalents	—		1,011			14,599			—			15,610
Cash and cash equivalents at beginning of period	—		2,719			7,698			—			10,417
Cash and cash equivalents at end of period	$	—	$	3,730		$	22,297		$	—		$	26,027

Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2018

Supplemental Cash Flow Elements [Abstract]

Cash and Non-cash Supplemental Information

Cash payments for income taxes, cash payments for interest incurred related to our debt, and non-cash capital lease additions are as follows:



	Years Ended December 31,
(in thousands)	2018		2017		2016
Cash information:
Cash paid for income taxes	$	27,191	$	8,698	$	7,285
Cash paid for interest	21,899		—		—
Non-cash information:
Capital lease additions	4,428		4,557		755

Selected Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information



	2018⁽¹⁾								2017⁽¹⁾
(in thousands, except per share data)	4th Qtr.		3rd Qtr.		2nd Qtr.		1st Qtr.		4th Qtr.		3rd Qtr.		2nd Qtr.		1st Qtr.
Revenue	$	311,202	$	316,468	$	305,850	$	283,126	$	265,195	$	258,832	$	256,161	$	230,278
Gross profit	105,271		113,734		103,680		93,614		75,534		84,952		84,630		75,360
Net income ⁽²⁾	22,732		25,494		22,075		24,194		61,225		18,820		19,033		13,586
Net income attributable to Apergy ⁽²⁾	22,571		25,263		22,155		24,052		61,155		18,556		18,754		13,269

Basic earnings per share ⁽³⁾	$	0.29	$	0.33	$	0.29	$	0.31	$	0.79	$	0.24	$	0.24	$	0.17
Diluted earnings per share ⁽³⁾	$	0.29	$	0.33	$	0.28	$	0.31	$	0.79	$	0.24	$	0.24	$	0.17

_______________________

⁽¹⁾We revised our previously issued financial statements to correct immaterial errors. See Note 1 for additional information.

⁽²⁾Includes a net tax benefit related to the Tax Reform Act during the three months ended December 31, 2017. See Note 15—Income Taxes for additional information.

Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details)
$ in Thousands

3 Months Ended

12 Months Ended

May 09, 2018

Company

Dec. 31, 2018

USD ($)

Sep. 30, 2018

USD ($)

^[1]

Jun. 30, 2018

USD ($)

^[1]

Mar. 31, 2018

USD ($)

^[1]

Dec. 31, 2017

USD ($)

Sep. 30, 2017

USD ($)

^[1]

Jun. 30, 2017

USD ($)

^[1]

Mar. 31, 2017

USD ($)

^[1]

Dec. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Number of companies separated | Company

Issuance of common stock at the Separation | shares

77,339,828

Conversion ratio

0.5

Intercompany notes payable

$ 224,500

Research and development expense

$ 16,000

18,500

$ 16,500

Cash provided (required) by operating activities

(163,900)

(76,050)

(132,991)

Net cash provided by (used in) investing activities

54,205

41,949

27,273

Net cash provided by (used in) financing activities

(90,838)

(36,693)

(90,018)

$ 105,271

$ 113,734

$ 103,680

$ 93,614

75,534

^[1]

$ 84,952

$ 84,630

$ 75,360

416,299

320,476

195,271

123,291

90,788

(18,943)

22,571

^[2]

$ 25,263

^[2]

$ 22,155

^[2]

$ 24,052

^[2]

61,155

^[1],[2]

$ 18,556

^[2]

$ 18,754

^[2]

$ 13,269

^[2]

94,041

111,734

(12,751)

Assets

1,971,756

1,906,615

1,971,756

1,906,615

Liabilities

990,229

266,230

990,229

266,230

Total equity

$ 981,527

1,640,385

$ 981,527

1,640,385

1,551,218

$ 1,644,993

Vehicles

Minimum | Building and improvements

3 years

Minimum | Machinery and equipment

5 years

Minimum | Furniture and fixtures

3 years

3 years

Minimum | Software

Minimum | Other intangible assets

3 years

Finite-lived intangible asset, useful life (in years)

5 years

Maximum | Building and improvements

Maximum | Machinery and equipment

31 years 6 months

Maximum | Furniture and fixtures

7 years

7 years

Maximum | Software

Maximum | Other intangible assets

10 years

Finite-lived intangible asset, useful life (in years)

15 years

Restatement Adjustment [Member]

Cash provided (required) by operating activities

900

(3,300)

Net cash provided by (used in) investing activities

4,600

800

Net cash provided by (used in) financing activities

3,700

4,000

2,000

1,500

Previously Reported [Member]

1,100

Assets

1,800

Liabilities

1,900

Total equity

$ (100)

(100)

Cash provided (required) by operating activities

(76,900)

(129,700)

Net cash provided by (used in) investing activities

46,500

28,000

Net cash provided by (used in) financing activities

$ (33,000)

$ (86,000)

[1]	We revised our previously issued financial statements to correct immaterial errors. See Note 1 for additional information.
[2]	Includes a net tax benefit related to the Tax Reform Act during the three months ended December 31, 2017. See Note 15—Income Taxes for additional information.

New Accounting Standards - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting changes		$ 1,300
Cash provided (required) by operating activities		$ 163,900	$ 76,050	$ 132,991
Accounting Standards Update 2016-15
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash provided (required) by operating activities			$ 14,500	$ 1,100
Minimum \| Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 30,000
Maximum \| Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 35,000

Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Related party transaction, selling, general and administrative expenses from transactions with related party	$ 7,400	$ 23,000	$ 19,500
Payments of ordinary dividends, noncontrolling interest	$ 2,720	1,212	1,727
Non- controlling Interest
Related Party Transaction [Line Items]
Related party transaction, commission rate	5.00%
Royalty Agreements
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	$ 2,300	$ 9,800	$ 7,400

Earnings Per Share - Narrative (Details)	May 09, 2018 shares
Earnings Per Share [Abstract]
Issuance of common stock at the Separation	77,339,828

Earnings Per Share - Reconciliation of the number of shares (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

^[2]

Jun. 30, 2018

^[2]

Mar. 31, 2018

^[2]

Dec. 31, 2017

^[2]

Sep. 30, 2017

^[2]

Jun. 30, 2017

^[2]

Mar. 31, 2017

^[2]

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Earnings Per Share [Abstract]

Weighted-average number of shares outstanding (in shares)

$ 22,571

^[1]

$ 25,263

^[1]

$ 22,155

^[1]

$ 24,052

^[1]

$ 61,155

^[1]

$ 18,556

^[1]

$ 18,754

^[1]

$ 13,269

^[1]

$ 94,041

$ 111,734

$ (12,751)

^[3]

77,342

77,340

Dilutive effect of stock-based compensation (in shares)

350

550

Total shares and dilutive securities (in shares)

^[3]

77,692

77,890

77,340

Earnings per share, basic (in dollars per share)

$ 0.29

^[4]

$ 0.33

^[4]

$ 0.29

^[4]

$ 0.31

^[4]

$ 0.79

^[4]

$ 0.24

^[4]

$ 0.24

^[4]

$ 0.17

^[4]

$ 1.22

^[3]

$ 1.44

^[3]

$ (0.16)

^[3]

Earnings per share, diluted (in dollars per share)

$ 0.29

^[4]

$ 0.33

^[4]

$ 0.28

^[4]

$ 0.31

^[4]

$ 0.79

^[4]

$ 0.24

^[4]

$ 0.24

^[4]

$ 0.17

^[4]

$ 1.21

^[3]

$ 1.43

^[3]

$ (0.16)

^[3]

[1]	Includes a net tax benefit related to the Tax Reform Act during the three months ended December 31, 2017. See Note 15—Income Taxes for additional information.
[2]	We revised our previously issued financial statements to correct immaterial errors. See Note 1 for additional information.
[3]	See Note 4—Earnings Per Share.
[4]	On May 9, 2018, 77,339,828 shares of our common stock were distributed to Dover stockholders in conjunction with the Separation. For comparative purposes, 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 with positive income prior to Separation.

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

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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.

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Goodwill, beginning of period

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

+ References + Details

Acquisitions - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
Acquisitions - Narrative (Details) - USD ($) $ in Thousands	Oct. 02, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Payments to acquire businesses, net of cash acquired		$ 0	$ 8,842	$ 0
Goodwill		$ 904,985	$ 910,088	$ 902,579
PCP Tools
Business Acquisition [Line Items]
Ownership percentage	100.00%
Payments to acquire businesses, net of cash acquired	$ 8,800
Goodwill	5,100
Business combination, intangible assets	$ 4,500
Finite-lived intangible asset, useful life (in years)	9 years

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 52,057	$ 45,408
Work in progress	11,416	10,879
Finished goods	180,624	167,227
Inventory, gross	244,097	223,514
LIFO and valuation adjustments	(25,778)	(22,112)
Inventories, net	$ 218,319	$ 201,402
Percentage of LIFO inventory	24.00%	28.00%
Excess of replacement or current costs over stated LIFO value	$ 12,900	$ 10,600

Property, Plant and Equipment -Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Depreciation	$ 72,569	$ 59,161	$ 56,125

Property, Plant and Equipment - PPE (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 636,672	$ 560,781
Accumulated depreciation	(392,344)	(347,219)
Property, plant and equipment, net	244,328	213,562
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	13,607	13,557
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	105,036	99,233
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 518,029	$ 447,991

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Oct. 02, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, acquired during period		$ 5,053
Amortization of intangible assets	$ 51,900	$ 53,700	$ 56,000
PCP Oil Tools S.A. and Ener Tools S.A. [Member]
Goodwill and intangible assets [Line Items]
Business combination, intangible assets				$ 4,500

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

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Goodwill [Roll Forward]

$ 910,088

$ 902,579

Acquisitions

5,053

Foreign currency translation

(5,050)

2,456

Purchase price adjustment (1)

^[1]

(53)

Goodwill, end of period

904,985

910,088

Production & Automation Technologies

Goodwill [Roll Forward]

Goodwill, beginning of period

808,952

801,443

Acquisitions

5,053

Foreign currency translation

(5,050)

2,456

Purchase price adjustment (1)

^[1]

(53)

Goodwill, end of period

803,849

808,952

Drilling Technologies

Goodwill [Roll Forward]

Goodwill, beginning of period

101,136

Goodwill, end of period

$ 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	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 661,048	$ 665,555
Accumulated Amortization	380,960	330,645
Net Carrying Amount	280,088	334,910
Intangible assets, gross (excluding goodwill)	664,648	669,155
Intangible assets, net (excluding goodwill)	283,688	338,510
Trademarks
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	3,600	3,600
Customer intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	568,643	572,415
Accumulated Amortization	319,827	276,655
Net Carrying Amount	248,816	295,760
Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	36,296	36,312
Accumulated Amortization	21,575	17,821
Net Carrying Amount	14,721	18,491
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	38,141	38,679
Accumulated Amortization	23,568	20,449
Net Carrying Amount	14,573	18,230
Unpatented technologies
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	9,700	9,700
Accumulated Amortization	9,700	9,700
Drawings and manuals
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,000	3,067
Accumulated Amortization	2,142	2,109
Net Carrying Amount	858	958
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	5,268	5,382
Accumulated Amortization	4,148	3,911
Net Carrying Amount	$ 1,120	$ 1,471

Goodwill and Intangible Assets - Amortization Expense (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 51,073
2020	49,623
2021	48,795
2022	47,323
2023	$ 33,452

Warranty (Details) - USD ($) $ in Thousands	12 Months Ended
Warranty (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Guarantees and Product Warranties [Abstract]
Warranty liability balance	$ 2,685	$ 3,070	$ 4,666	$ 4,421
Expenses for warranties	3,015	309	2,109
Claims paid	(3,320)	(1,896)	(1,518)
Other adjustments, including foreign currency translation	$ (80)	$ (9)	$ (346)

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2018	May 03, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Capital lease obligations	$ 7,485		$ 5,806
Total	677,485		5,806
Net unamortized discounts and issuance costs	(11,377)		0
Total long-term debt	666,108		5,806
Revolving credit facility
Debt Instrument [Line Items]
Long-term debt, gross	0		0
Term loan facility
Debt Instrument [Line Items]
Long-term debt, gross	$ 370,000		0
Senior Notes \| 6.375% Senior Notes due 2026
Debt Instrument [Line Items]
Debt interest rate	6.375%	6.375%
Long-term debt, gross	$ 300,000		$ 0

Debt - Narrative (Details)			12 Months Ended
Debt - Narrative (Details)	May 09, 2018 USD ($)	May 03, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Debt Instrument [Line Items]
Proceeds from long-term debt, net of discounts			$ 713,963,000	$ 0	$ 0
Cash payment to Dover		$ 700,000,000
Senior Notes \| 6.375% Senior Notes due 2026
Debt Instrument [Line Items]
Principal amount of debt issued		$ 300,000,000	$ 300,000,000
Debt interest rate		6.375%	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			$ 370,000,000
Term loan facility \| Credit Agreement
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%
Revolving credit facility \| Credit Agreement
Debt Instrument [Line Items]
Debt instrument, term	5 years
Maximum borrowing capacity	$ 250,000,000
Letters of credit \| Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 50,000,000
JP Morgan Chase Bank, N.A. \| Credit Agreement
Debt Instrument [Line Items]
Minimum interest coverage ratio	2.75
Fiscal Quarter Ending June 30, 2019 \| JP Morgan Chase Bank, N.A. \| Credit Agreement
Debt Instrument [Line Items]
Maximum total leverage ratio	4
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	3.5

Debt - Aggregate contractual future principal payments (Details)
$ in Thousands

Dec. 31, 2018

USD ($)

^[1]

Debt Disclosure [Abstract]

$ 0

670,000

$ 670,000

[1]	Principal payments included relate to our term loan facility and senior notes. See Note 11—Commitment and Contingencies for future payments related to capital lease obligations.

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Operating Leases, Rent Expense, Net	$ 16.8	$ 15.6	$ 16.7
Outstanding letters of credit	$ 3.6	$ 8.1

Commitments and Contingencies - Future Minimum Rental Payments (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	$ 14,781
2020	12,768
2021	11,240
2022	10,951
2023	10,268
Thereafter	8,734
Total	68,742
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	4,447
2020	2,636
2021	987
2022	97
2023	22
Thereafter	25
Total	$ 8,214

Stockholders' Equity - Narrative (Details) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Equity [Abstract]
Preferred stock authorized (in shares)	250,000,000
Preferred stock, par value (dollars per share)	$ 0.01
Preferred stock, outstanding (in shares)	0	0

Stockholders' Equity - Capital Stock Activity (Details) - shares		12 Months Ended
	May 09, 2018	Dec. 31, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock at the Separation	77,339,828
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares, issued, beginning of the period		0
Issuance of common stock at the Separation		77,340,000
Shares issued—share-based compensation		13,000
Shares, issued, end of the period		77,353,000

Stockholders' Equity - Accumulated other comprehensive loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ 1,640,385	$ 1,551,218	$ 1,644,993
Other comprehensive income (loss)	(12,754)	7,241	1,037
Net transfers to/from Dover	(742,690)	(29,526)	(81,964)
Ending Balance	981,527	1,640,385	1,551,218
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(21,936)	(26,321)
Other comprehensive income (loss) before reclassifications, net of tax	(14,210)	4,385
Other comprehensive income (loss)	(14,210)	4,385
Ending Balance	(36,146)	(21,936)	(26,321)
Defined Pension and Other Post-Retirement Benefits
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(4,480)	(7,336)
Other comprehensive income (loss) before reclassifications, net of tax	856	2,598
Reclassification adjustment for net losses included in net income, net of tax	600	258
Other comprehensive income (loss)	1,456	2,856
Reclassification adjustment for cumulative effect of change in accounting principle				$ (1,315)
Net transfers to/from Dover	(2,421)
Ending Balance	(6,760)	(4,480)	(7,336)
Accum. Other Comp. Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(26,416)	(33,657)	(34,694)
Other comprehensive income (loss) before reclassifications, net of tax	(13,354)	6,983
Reclassification adjustment for net losses included in net income, net of tax	600	258
Other comprehensive income (loss)	(12,754)	7,241	1,037
Reclassification adjustment for cumulative effect of change in accounting principle				$ (1,315)
Net transfers to/from Dover	(2,421)
Ending Balance	$ (42,906)	$ (26,416)	$ (33,657)

Stockholders' Equity - Reclassifications from accumulated comprehensive loss (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

^[1]

Sep. 30, 2018

^[1],[2]

Jun. 30, 2018

^[1],[2]

Mar. 31, 2018

^[1],[2]

Dec. 31, 2017

^[1],[2]

Sep. 30, 2017

^[1],[2]

Jun. 30, 2017

^[1],[2]

Mar. 31, 2017

^[1],[2]

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

$ 2,943

$ 10,377

$ 9,354

(123,291)

(90,788)

18,943

28,796

(21,876)

(8,043)

Amortization of actuarial loss and net transition obligation | Reclassification out of Accumulated Other Comprehensive Income

$ (22,732)

$ (25,494)

$ (22,075)

$ (24,194)

$ (61,225)

$ (18,820)

$ (19,033)

$ (13,586)

(94,495)

(112,664)

10,900

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Amortization of prior service cost (1) | Reclassification out of Accumulated Other Comprehensive Income

^[3]

330

397

362

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Settlement loss | Reclassification out of Accumulated Other Comprehensive Income

^[3]

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income

^[3]

479

Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]

810

399

364

(210)

(141)

(129)

$ 600

$ 258

$ 235

[1]	Includes a net tax benefit related to the Tax Reform Act during the three months ended December 31, 2017. See Note 15—Income Taxes for additional information.
[2]	We revised our previously issued financial statements to correct immaterial errors. See Note 1 for additional information.
[3]	These accumulated comprehensive loss components are included in the computation of net periodic benefit cost (See Note16—Employee Benefit Plans for additional information).

Revenue - Narrative (Details)	12 Months Ended
Revenue - Narrative (Details)	Dec. 31, 2018
Product revenue \| Sales Revenue, Net [Member]
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	89.00%
Service revenue \| Sales Revenue, Net [Member]
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	7.00%
Service revenue \| Lease Revenue [Member]
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	4.00%

Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

^[1]

Jun. 30, 2018

^[1]

Mar. 31, 2018

^[1]

Dec. 31, 2017

^[1]

Sep. 30, 2017

^[1]

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

$ 311,202

$ 316,468

$ 305,850

$ 283,126

$ 265,195

$ 258,832

$ 256,161

$ 230,278

$ 1,216,646

$ 1,010,466

^[2]

$ 751,337

^[2]

United States

957,657

770,822

^[2]

559,266

^[2]

Canada

79,816

79,186

^[2]

54,714

^[2]

Middle East

53,516

48,899

^[2]

54,767

^[2]

Europe

38,669

28,112

^[2]

19,935

^[2]

Latin America

33,976

34,350

^[2]

23,580

^[2]

Asia Pacific [Member]

17,605

20,072

^[2]

17,570

^[2]

Other

35,407

29,025

^[2]

21,505

^[2]

Reporting segments

Drilling Technologies | Reporting segments

1,216,646

1,010,466

751,337

Production & Automation Technologies

285,565

227,653

^[2]

113,320

^[2]

Production & Automation Technologies | Reporting segments

931,081

782,813

^[2]

638,017

^[2]

Production & Automation Technologies | Intra-segment eliminations

931,081

782,813

638,017

Production & Automation Technologies | Artificial lift | Reporting segments

(2,506)

(5,131)

^[2]

(1,549)

^[2]

Production & Automation Technologies | Digital products | Reporting segments

724,554

602,287

^[2]

499,033

^[2]

Production & Automation Technologies | Other production equipment | Reporting segments

117,801

82,093

^[2]

65,351

^[2]

$ 91,232

$ 103,564

^[2]

$ 75,182

^[2]

[1]	We revised our previously issued financial statements to correct immaterial errors. See Note 1 for additional information.
[2]	Revenue for the years ended December 31, 2017 and 2016, are presented in accordance with accounting standards in effect prior to our adoption of ASU No. 2014-09 on January 1, 2018. See Note 2 for further discussion regarding our adoption of ASU No. 2014-09.

Revenue - Contract Balances (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jan. 01, 2018
Revenue from Contract with Customer [Abstract]
Contract assets	$ 4,571	$ 4,733
Contract liabilities - current	$ 5,863	$ 3,912

Restructuring - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 5,632	$ 6,921	$ 15,162
Restructuring and related activities liability	1,000	2,600
Production & Automation Technologies
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 5,632	$ 6,921	12,757
Drilling Technologies
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 2,405

Restructuring - Schedule of Restructuring (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 5,632	$ 6,921	$ 15,162
Cost of goods and services
Restructuring Cost and Reserve [Line Items]
Restructuring charges	4,693	6,332	9,465
Selling, general and administrative expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges	939	589	5,697
Production & Automation Technologies
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 5,632	$ 6,921	12,757
Drilling Technologies
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 2,405

Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Domestic	$ 106,172	$ 68,356	$ (26,035)
Foreign	17,119	22,432	7,092
Income (loss) before income taxes	$ 123,291	$ 90,788	$ (18,943)

Income Taxes - Provision for (Benefit From) Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current:
U.S. federal	$ 21,386	$ 42,693	$ 8,872
State and local	1,559	4,257	1,995
Foreign	7,139	6,176	971
Total current	30,084	53,126	11,838
Deferred:
U.S. federal	(2,255)	(73,544)	(19,161)
State and local	3,466	(1,361)	(771)
Foreign	(2,499)	(97)	51
Total deferred	(1,288)	(75,002)	(19,881)
Provision for (benefit from) income taxes	$ 28,796	$ (21,876)	$ (8,043)

Income Taxes - Effective income tax rate reconciliation (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 21, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Statutory U.S. federal income tax rate	21.00%	35.00%	35.00%	35.00%
State and local taxes, net of federal income tax benefit	3.30%	2.10%		(3.90%)
Foreign derived intangible income	(1.90%)
Foreign operations tax effect	0.80%	(2.80%)		7.80%
Research and experimentation tax credits	(0.60%)	(0.70%)		2.30%
Domestic manufacturing deduction		(4.40%)		6.20%
Nondeductible expenses	0.70%	0.70%		(3.30%)
ESOP dividends	(0.10%)	(0.20%)		2.90%
Branch income		1.10%		(2.90%)
Changes due to the Tax Reform Act		(54.30%)
Other	0.20%	(0.60%)		(1.60%)
Effective income tax rate	23.40%	(24.10%)		42.50%

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets attributable to:
Accrued compensation	$ 7,535	$ 4,568
Accrued expenses, principally for state income taxes, interest and warranty	1,156	846
Net operating loss and other carryforwards	766	1,280
Accounts receivable, principally due to allowance for doubtful accounts	973	827
Long-term liabilities, principally warranty and exit cost	505	678
Other assets	374	132
Deferred tax assets	11,309	8,331
Valuation allowance	(722)	(1,280)
Deferred tax assets, net of valuation allowance	10,587	7,051
Deferred tax liabilities attributable to:
Inventories	(2,061)	(3,687)
Intangible assets, including goodwill	(83,436)	(83,669)
Property, plant and equipment	(25,520)	(16,134)
Deferred tax liabilities	(111,017)	(103,490)
Net deferred tax liabilities	(100,430)	(96,439)
Other non-current assets	1,294	546
Deferred income taxes	$ (101,724)	$ (96,985)

Income Taxes - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 21, 2017	Dec. 31, 2016
Income Tax Contingency [Line Items]
Operating loss carryforwards, foreign	$ 0.4
Foreign tax credit carryforwards	$ 0.3
Statutory U.S. federal income tax rate	21.00%	35.00%	35.00%	35.00%
Tax Cuts and Jobs Act, incomplete accounting, change in tax rate, deferred tax liability, provisional income tax benefit		$ 53.2
Tax Cuts And Jobs Act, incomplete accounting, transition tax for accumulated foreign earnings, provisional income tax expense		$ 3.9
Payments of capital distribution	$ 16.0
Tax cuts and jobs act of 2017, global intangible low-taxed income, income tax expense (benefit)	$ 0.2

Employee Benefit Plans - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	May 09, 2018
Defined Benefit Plan Disclosure [Line Items]
Liability, defined benefit plan				$ 6,100
Accumulated other comprehensive (income) loss, defined benefit plan, after tax				$ 2,400
Expense relating to defined contribution plans	$ 9,600	$ 8,200	$ 6,400
Pensions
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, net periodic benefit cost (credit)	1,068	114	104
Liability, defined benefit plan	964
Company contributions	4,740	166
Expected future contributions	1,100
Multiemployer Plans, Pension
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, net periodic benefit cost (credit)	$ 1,600	$ 4,600	$ 6,400

Employee Benefit Plans - Obligations and Funded Status (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	May 09, 2018
Amounts recognized in the Combined Balance Sheets consist of:
Other long-term liabilities				$ (6,100)
Pensions
Change in benefit obligation:
Defined benefit plan, benefit obligation, beginning of the period	$ 3,881	$ 3,512
Service cost	598	106	$ 102
Interest cost	455	137	129
Benefits paid	(370)	(99)
Actuarial gain	(530)	(22)
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Other Change	14,348
Settlements and curtailments	(1,763)
Foreign currency translation and other	(671)	247
Defined benefit plan, benefit obligation, end of the period	15,948	3,881	3,512
Change in plan assets:
Defined benefit plan, plan assets, beginning of the period	3,993	3,391
Actual return on plan assets	(76)	290
Company contributions	4,740	166
Benefits paid	(370)	(99)
Assets assumed from the Separation	9,227
Settlements and curtailments	(1,763)
Foreign currency translation and other	(621)	245
Defined benefit plan, plan assets, end of the period	15,130	3,993	3,391
Funded (unfunded) status at December 31	(818)	112
Amounts recognized in the Combined Balance Sheets consist of:
Other non-current assets	146	112
Other long-term liabilities	(964)
Accumulated benefit obligations	14,076	3,881
Other post-retirement benefits
Change in benefit obligation:
Defined benefit plan, benefit obligation, beginning of the period	14,197	18,600
Interest cost	448	621	719
Benefits paid	(1,022)	(1,710)
Actuarial gain	(562)	(3,314)
Defined benefit plan, benefit obligation, end of the period	13,061	14,197	$ 18,600
Change in plan assets:
Company contributions	1,022	1,710
Benefits paid	(1,022)	(1,710)
Funded (unfunded) status at December 31	(13,061)	(14,197)
Amounts recognized in the Combined Balance Sheets consist of:
Accrued compensation and employee benefits	(1,598)	(1,547)
Other long-term liabilities	(11,463)	(12,650)
Accumulated benefit obligations	$ 13,061	$ 14,197

Employee Benefit Plans - Periodic benefit cost amounts recognized in accumulated other comprehensive (income) loss (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Pensions
Defined Benefit Plan Disclosure [Line Items]
Unrecognized net actuarial loss	$ 3,586	$ 1,449
Unrecognized prior service cost	25	40
Unrecognized net transition asset	(8)	(20)
Accumulated other comprehensive loss	3,603	1,469
Other post-retirement benefits
Defined Benefit Plan Disclosure [Line Items]
Unrecognized net actuarial loss	5,685	6,078
Accumulated other comprehensive loss	$ 5,685	$ 6,078

Employee Benefit Plans - Accumulated benefit obligations in excess of plan assets (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Defined Benefit Plan [Abstract]
Aggregate accumulated benefit obligation	$ 16,783
Aggregate fair value of plan assets	$ 3,672

Employee Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pensions
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 598	$ 106	$ 102
Interest cost	455	137	129
Expected return on plan assets	(593)	(198)	(186)
Amortization of prior service cost	1	2	2
Amortization of actuarial loss	127	68	58
Amortization of transition obligation	(1)	1	1
Settlement loss	479
Net periodic benefit cost	1,068	114	104
Other post-retirement benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost	448	621	719
Amortization of actuarial loss	202	330	305
Other		(1)
Net periodic benefit cost	$ 650	$ 950	$ 1,024

Employee Benefit Plans - Amounts expected to be amortized from AOCI into net periodic benefit cost (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Pensions
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	$ 158
Prior service cost	1
Transition obligation	3
Other post-retirement benefits
Defined Benefit Plan Disclosure [Line Items]
Net actuarial loss	$ 200

Employee Benefit Plans - Weighted average assumptions used in determining the benefit obligations (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pensions
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate	3.90%	3.50%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate	3.68%	3.75%	4.00%
Expected return on plan assets	4.80%	5.50%	5.75%
Other post-retirement benefits
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate	4.10%	3.35%
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate	3.35%	3.55%

Employee Benefit Plans - FVM (Details) - Pensions - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, plan assets, amount	$ 15,130	$ 3,993	$ 3,391
Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, plan assets, amount	8,447	2,399
Level 2
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, plan assets, amount	6,683	1,594
Mutual funds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, plan assets, amount	11,458	3,993
Mutual funds \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, plan assets, amount	4,775	2,399
Mutual funds \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, plan assets, amount	6,683	$ 1,594
Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, plan assets, amount	3,672
Cash and cash equivalents \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, plan assets, amount	$ 3,672

Employee Benefit Plans - Estimated future benefit payments (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Pensions
Defined Benefit Plan Disclosure [Line Items]
2019	$ 507
2020	555
2021	757
2022	1,050
2023	586
2024-2028	3,889
Other post-retirement benefits
Defined Benefit Plan Disclosure [Line Items]
2019	1,598
2020	1,488
2021	1,333
2022	1,222
2023	1,123
2024-2028	$ 3,997

Equity and Cash Incentive Program - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, number of shares authorized \| shares	6,500,000
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Expiration period	10 years
Unrecognized compensation expense not yet exercisable \| $	$ 0.4
Weighted average period	1 year
Performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Granted (in shares) \| shares	86,817
Unrecognized compensation expense not yet exercisable \| $	$ 3.9
Weighted average period	2 years 5 months
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) \| shares	368,848
Unrecognized compensation expense not yet exercisable \| $	$ 13.4
Weighted average period	1 year 11 months

Equity and Cash Incentive Program - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense	$ 5,375	$ 2,236	$ 2,293
Tax benefit	1,141	774	787
Stock-based compensation expense, net of tax	$ 4,234	$ 1,462	$ 1,506

Equity and Cash Incentive Program - Fair Value Assumption Used For Each SAR Granted (Details) - Stock Appreciation Rights (SARs) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.80%	1.05%
Dividend yield	2.27%	3.09%
Expected life (years)	4 years 7 months	4 years 7 months
Volatility	21.90%	26.17%
Grant price (in dollars per share)	$ 79.28	$ 57.25
Fair value at date of grant (in dollars per share)	$ 12.63	$ 9.25

Equity and Cash Incentive Program - Summary of Activity Relating to SARs Outstanding (Details) - Stock Appreciation Rights (SARs) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number of shares outstanding, beginning of the period (in shares)	0
Converted (in shares)	488,039
Granted (in shares)	0
Forfeited / expired (in shares)	(6,287)
Exercised (in shares)	(3,802)
Number of shares outstanding, end of the period (in shares)	477,950
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Weighted average exercise price outstanding, beginning of the period (in dollars per share) \| $ / shares	$ 0.00
Converted (in dollars per share) \| $ / shares	29.43
Forfeited / expired (in dollars per share) \| $ / shares	28.62
Exercised (in dollars per share) \| $ / shares	31.55
Weighted average exercise price outstanding, end of the period (in dollars per share) \| $ / shares	$ 29.43
Weighted average remaining contractual term, outstanding (years)	7 years 1 month
Aggregate intrinsic value \| $	$ 529
Number of shares, exercisable (in shares)	95,142
Weighted average exercise price exercisable (in dollars per share) \| $ / shares	$ 31.15
Weighted average remaining contractual term, exercisable (years)	5 years 2 months
Aggregate intrinsic value, exercisable \| $	$ 24

Equity and Cash Incentive Program - Other Information Regarding the Exercise of SARs (Details) - Stock Appreciation Rights (SARs) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of SARs that became exercisable	$ 310	$ 1,239	$ 1,564
Aggregate intrinsic value of SARs exercised	$ 40	$ 2,787	$ 799

Equity and Cash Incentive Program - Fair Value and Average Attainment Used in Determining Compensation Cost of the Performance Shares (Details) - Performance shares - $ / shares	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value at date of grant (in dollars per share)	$ 56.32
Dover
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value at date of grant (in dollars per share)		$ 79.28	$ 57.25
Average attainment rate reflected in expense		0.00%	0.00%

Equity and Cash Incentive Program - Summary of Activity for Performance Share Awards (Details) - Performance shares	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of shares outstanding, beginning of the period (in shares) \| shares	0
Granted (in shares) \| shares	86,817
Vested (in shares) \| shares	0
Number of shares outstanding, end of the period (in shares) \| shares	86,817
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average grant-date fair value, outstanding beginning of the period (in dollars per share) \| $ / shares	$ 0.00
Granted (in dollars per share) \| $ / shares	56.32
Vested (in dollars per share) \| $ / shares	0.00
Weighted average grant-date fair value, outstanding end of the period (in dollars per share) \| $ / shares	$ 56.32

Equity and Cash Incentive Program - Summary of Activity for Restricted Stock Units (Details) - Restricted Stock Units (RSUs)	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of shares outstanding, beginning of the period (in shares) \| shares	0
Converted (in shares) \| shares	61,717
Granted (in shares) \| shares	368,848
Forfeited (in shares) \| shares	(3,065)
Vested (in shares) \| shares	(12,660)
Number of shares outstanding, end of the period (in shares) \| shares	414,840
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average grant-date fair value, outstanding beginning of the period (in dollars per share) \| $ / shares	$ 0.00
Converted (in dollars per share) \| $ / shares	30.26
Granted (in dollars per share) \| $ / shares	43.63
Forfeited (in dollars per share) \| $ / shares	37.45
Vested (in dollars per share) \| $ / shares	36.93
Weighted average grant-date fair value, outstanding end of the period (in dollars per share) \| $ / shares	$ 41.91

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2018	May 03, 2018
Senior Notes \| 6.375% Senior Notes due 2026
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Principal amount of debt issued	$ 300.0	$ 300.0
Senior Notes \| 6.375% Senior Notes due 2026 \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt, fair value	294.0
Term loan facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Principal amount of debt issued	370.0
Term loan facility \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt, fair value	$ 358.4

Segment Information - Segment revenue and segment operating profit (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

^[1]

Jun. 30, 2018

^[1]

Mar. 31, 2018

^[1]

Dec. 31, 2017

^[1]

Sep. 30, 2017

^[1]

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

$ 311,202

$ 316,468

$ 305,850

$ 283,126

$ 265,195

$ 258,832

$ 256,161

$ 230,278

$ 1,216,646

$ 1,010,466

^[2]

$ 751,337

^[2]

27,440

753

477

Production & Automation Technologies

123,291

90,788

(18,943)

931,081

782,813

^[2]

638,017

^[2]

Reporting segments

1,216,646

1,010,466

751,337

Reporting segments | Production & Automation Technologies

(174,538)

(101,207)

13,347

931,081

782,813

638,017

Reporting segments | Drilling Technologies

(75,918)

(26,890)

21,744

285,565

227,653

^[2]

113,320

^[2]

Corporate expense and other | Corporate expense / other [Member]

(98,620)

(74,317)

(8,397)

Condensed Income Statements, Captions [Line Items]

^[3]

$ 23,807

$ 9,666

$ 5,119

[1]	We revised our previously issued financial statements to correct immaterial errors. See Note 1 for additional information.
[2]	Revenue for the years ended December 31, 2017 and 2016, are presented in accordance with accounting standards in effect prior to our adoption of ASU No. 2014-09 on January 1, 2018. See Note 2 for further discussion regarding our adoption of ASU No. 2014-09.
[3]	Corporate expense and other 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 and the results attributable to our noncontrolling interest.

Segment Information - Segment Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 1,971,756	$ 1,906,615
Reporting segments \| Production & Automation Technologies
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	1,699,820	1,685,622
Reporting segments \| Drilling Technologies
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	230,977	$ 220,993
Corporate expense and other \| Corporate expense / other [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 40,959

Segment Information - Geographic segment information (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Revenue, Major Customer [Line Items]
Total long-lived assets	$ 244,328	$ 213,562
United States
Revenue, Major Customer [Line Items]
Total long-lived assets	233,809	199,909
Middle East
Revenue, Major Customer [Line Items]
Total long-lived assets	3,616	5,189
Canada
Revenue, Major Customer [Line Items]
Total long-lived assets	6,299	7,587
Asia-Pacific
Revenue, Major Customer [Line Items]
Total long-lived assets	254	336
Latin America
Revenue, Major Customer [Line Items]
Total long-lived assets	$ 350	$ 541

Segment Information - Other Business Segment Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Payments to Acquire Property, Plant, and Equipment	$ 57,918	$ 36,654	$ 26,099
Depreciation, Depletion and Amortization	124,461	112,862	112,112
Reporting segments \| Production & Automation Technologies
Segment Reporting Information [Line Items]
Payments to Acquire Property, Plant, and Equipment	45,190	28,483	21,961
Depreciation, Depletion and Amortization	112,955	100,912	99,664
Reporting segments \| Drilling Technologies
Segment Reporting Information [Line Items]
Payments to Acquire Property, Plant, and Equipment	11,123	8,171	4,138
Depreciation, Depletion and Amortization	11,037	$ 11,950	$ 12,448
Corporate expense and other \| Corporate expense / other [Member]
Segment Reporting Information [Line Items]
Payments to Acquire Property, Plant, and Equipment	1,605
Depreciation, Depletion and Amortization	$ 469

Condensed Consolidating Financial Information - Condensed Statements of Income (Loss) (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2018

Sep. 30, 2018

^[1]

Jun. 30, 2018

^[1]

Mar. 31, 2018

^[1]

Dec. 31, 2017

^[1]

Sep. 30, 2017

^[1]

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

$ 48,020

$ 27,411

$ 27,074

$ 311,202

$ 316,468

$ 305,850

$ 283,126

$ 265,195

$ 258,832

$ 256,161

$ 230,278

1,216,646

1,010,466

^[2]

751,337

^[2]

800,347

689,990

556,066

105,271

113,734

103,680

93,614

75,534

84,952

84,630

75,360

416,299

320,476

195,271

262,625

218,558

204,383

27,440

753

477

2,943

10,377

9,354

123,291

90,788

(18,943)

Income (loss) before equity in earnings of affiliates

(28,796)

21,876

8,043

94,495

112,664

(10,900)

Net income attributable to noncontrolling interest

22,732

^[3]

25,494

^[3]

22,075

^[3]

24,194

^[3]

61,225

^[3]

18,820

^[3]

19,033

^[3]

13,586

^[3]

94,495

112,664

(10,900)

454

930

1,851

$ 22,571

^[3]

$ 25,263

^[3]

$ 22,155

^[3]

$ 24,052

^[3]

$ 61,155

^[3]

$ 18,556

^[3]

$ 18,754

^[3]

$ 13,269

^[3]

94,041

111,734

(12,751)

Adjustments and eliminations

81,287

118,975

(11,714)

Condensed Income Statements, Captions [Line Items]

(43,682)

(36,103)

(35,669)

(43,682)

(36,103)

(35,669)

(42,977)

(35,911)

(35,806)

(705)

(192)

137

(706)

(192)

137

Income (loss) before equity in earnings of affiliates

148

(48)

(558)

(125)

(187,824)

(147,494)

44,693

(188,382)

(147,619)

44,782

(188,382)

(147,619)

44,782

Condensed Income Statements, Captions [Line Items]

(175,626)

(154,861)

43,743

Apergy Corporation

1,614

26,973

(28,587)

Income (loss) before equity in earnings of affiliates

8,727

(19,860)

113,901

111,734

(12,751)

94,041

111,734

(12,751)

94,041

111,734

(12,751)

Condensed Income Statements, Captions [Line Items]

81,287

118,975

(11,714)

Subsidiary Guarantors

71,977

49,353

42,826

1,090,055

882,062

644,392

696,044

585,385

459,522

394,011

296,677

184,870

239,360

199,882

182,866

425

724

465

1,322

10,169

9,163

152,904

85,902

(7,624)

Income (loss) before equity in earnings of affiliates

(37,193)

10,272

2,750

115,711

96,174

(4,874)

27,121

23,426

(23,669)

142,832

119,600

(28,543)

142,832

119,600

(28,543)

Subsidiary Non-guarantors

141,528

122,480

(28,538)

Condensed Income Statements, Captions [Line Items]

19,725

14,161

19,917

170,273

164,507

142,614

147,280

140,516

132,350

22,993

23,991

10,264

21,651

18,676

21,517

1,620

208

191

(320)

5,078

(11,456)

Income (loss) before equity in earnings of affiliates

(478)

11,537

5,341

(798)

16,615

(6,115)

46,802

12,334

(8,273)

Net income attributable to noncontrolling interest

46,004

28,949

(14,388)

454

930

1,851

45,550

28,019

(16,239)

Condensed Income Statements, Captions [Line Items]

34,098

32,381

(15,205)

Product revenue

Product revenue | Subsidiary Guarantors

1,085,471

919,669

673,447

Condensed Income Statements, Captions [Line Items]

Product revenue | Subsidiary Non-guarantors

961,082

797,504

577,351

Condensed Income Statements, Captions [Line Items]

Condensed Income Statements, Captions [Line Items]

124,389

122,165

96,096

Service revenue

Service revenue | Subsidiary Guarantors

83,155

63,386

50,816

Condensed Income Statements, Captions [Line Items]

Service revenue | Subsidiary Non-guarantors

56,996

35,205

24,215

Condensed Income Statements, Captions [Line Items]

Quarterly Financial Information Disclosure [Abstract]

$ 26,159

$ 28,181

$ 26,601

[1]	We revised our previously issued financial statements to correct immaterial errors. See Note 1 for additional information.
[2]	Revenue for the years ended December 31, 2017 and 2016, are presented in accordance with accounting standards in effect prior to our adoption of ASU No. 2014-09 on January 1, 2018. See Note 2 for further discussion regarding our adoption of ASU No. 2014-09.
[3]	Includes a net tax benefit related to the Tax Reform Act during the three months ended December 31, 2017. See Note 15—Income Taxes for additional information.

Condensed Consolidating Financial Information - Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 41,832	$ 23,712	$ 26,027	$ 10,417
Receivables	249,948	201,449
Inventories, net	218,319	201,402
Prepaid expenses and other current assets	20,211	14,912
Total current assets	530,310	441,475
Property, plant and equipment, net	244,328	213,562
Goodwill	904,985	910,088	902,579
Intangible assets, net	283,688	338,510
Other non-current assets	8,445	2,980
Total assets	1,971,756	1,906,615
Liabilities and Equity
Accounts payable	131,058	98,826
Accrued compensation and employee benefits	40,546	30,289
Accrued expenses and other current liabilities	30,391	21,375
Total current liabilities	201,995	150,490
Long-term debt	666,108	5,806
Deferred income taxes	101,724	96,985
Other long-term liabilities	20,402	12,949
Total liabilities	990,229	266,230
Stockholders’ equity:
Stockholders’ capital	1,021,975	1,662,052
Accumulated other comprehensive loss	(42,906)	(26,416)
Total stockholders’ equity	979,069	1,635,636
Noncontrolling interest	2,458	4,749
Total equity	981,527	1,640,385	1,551,218	1,644,993
Total liabilities and equity	1,971,756	1,906,615
Adjustments and eliminations
Assets
Cash and cash equivalents
Receivables	(17,044)	(3,674)
Inventories, net	(1,632)	(928)
Prepaid expenses and other current assets	(24,542)
Total current assets	(43,218)	(4,602)
Advances due from affiliates	(697,876)	(70,408)
Investment in subsidiaries	(2,246,858)	(2,831,294)
Total assets	(2,987,952)	(2,906,304)
Liabilities and Equity
Accounts payable	(17,044)	(3,674)
Accrued expenses and other current liabilities	(26,174)	(325)
Total current liabilities	(43,218)	(3,999)
Other long-term liabilities	0	(70,408)
Total liabilities	(741,094)	(74,407)
Stockholders’ equity:
Stockholders’ capital	(2,246,858)	(2,831,897)
Total stockholders’ equity	(2,246,858)	(2,831,897)
Total equity	(2,246,858)	(2,831,897)
Total liabilities and equity	(2,987,952)	(2,906,304)
Due to Affiliate	(697,876)
Apergy Corporation
Assets
Cash and cash equivalents	108
Receivables	1,743
Prepaid expenses and other current assets	24,583
Total current assets	26,434
Advances due from affiliates	600,802
Investment in subsidiaries	1,013,869	1,640,385
Other non-current assets	3,996
Total assets	1,645,101	1,640,385
Liabilities and Equity
Accounts payable	22
Accrued expenses and other current liabilities	4,929
Total current liabilities	4,951
Long-term debt	658,623
Total liabilities	663,574
Stockholders’ equity:
Stockholders’ capital	981,527	1,640,385
Total stockholders’ equity	981,527	1,640,385
Total equity	981,527	1,640,385
Total liabilities and equity	1,645,101	1,640,385
Subsidiary Guarantors
Assets
Cash and cash equivalents	27,533	5,763	3,730	2,719
Receivables	230,230	170,788
Inventories, net	189,015	174,842
Prepaid expenses and other current assets	17,064	12,864
Total current assets	463,842	364,257
Property, plant and equipment, net	231,373	197,309
Goodwill	633,771	633,734
Advances due from affiliates	14,185	10,299
Investment in subsidiaries	687,691	801,915
Intangible assets, net	198,531	234,795
Other non-current assets	2,371	2,129
Total assets	2,231,764	2,244,438
Liabilities and Equity
Accounts payable	114,745	83,866
Accrued compensation and employee benefits	35,278	24,875
Accrued expenses and other current liabilities	46,722	13,711
Total current liabilities	196,745	122,452
Long-term debt	7,363	5,772
Deferred income taxes	81,296	75,075
Other long-term liabilities	19,441	73,057
Total liabilities	988,545	276,356
Stockholders’ equity:
Stockholders’ capital	1,250,573	1,972,819
Accumulated other comprehensive loss	(7,354)	(4,737)
Total stockholders’ equity	1,243,219	1,968,082
Total equity	1,243,219	1,968,082
Total liabilities and equity	2,231,764	2,244,438
Due to Affiliate	683,700
Subsidiary Non-guarantors
Assets
Cash and cash equivalents	14,191	17,949	$ 22,297	$ 7,698
Receivables	35,019	34,335
Inventories, net	30,936	27,488
Prepaid expenses and other current assets	3,106	2,048
Total current assets	83,252	81,820
Property, plant and equipment, net	12,955	16,253
Goodwill	271,214	276,354
Advances due from affiliates	82,889	60,109
Investment in subsidiaries	545,298	388,994
Intangible assets, net	85,157	103,715
Other non-current assets	2,078	851
Total assets	1,082,843	928,096
Liabilities and Equity
Accounts payable	33,335	18,634
Accrued compensation and employee benefits	5,268	5,414
Accrued expenses and other current liabilities	4,914	7,989
Total current liabilities	43,517	32,037
Long-term debt	122	34
Deferred income taxes	20,428	21,910
Other long-term liabilities	961	10,300
Total liabilities	79,204	64,281
Stockholders’ equity:
Stockholders’ capital	1,036,733	880,745
Accumulated other comprehensive loss	(35,552)	(21,679)
Total stockholders’ equity	1,001,181	859,066
Noncontrolling interest	2,458	4,749
Total equity	1,003,639	863,815
Total liabilities and equity	1,082,843	$ 928,096
Due to Affiliate	$ 14,176

Condensed Consolidating Financial Information - Consolidated Cash Flows (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Cash Flow Statements, Captions [Line Items]
Cash provided (required) by operating activities		$ 163,900	$ 76,050	$ 132,991
Cash provided (required) by investing activities:
Capital expenditures		(57,918)	(36,654)	(26,099)
Acquisition (net of cash and cash equivalents acquired)		0	(8,842)	0
Proceeds from sale of property, plant and equipment		1,187	3,547	2,526
Proceeds from sale of business	$ 2,500	2,473	0	0
Addition to intangible assets		0	0	(3,700)
Purchase price adjustments on acquisition		53	0	0
Net cash required by investing activities		(54,205)	(41,949)	(27,273)
Cash provided (required) by financing activities:
Proceeds from long-term debt, net of discounts		713,963	0	0
Payment of debt issue costs		(16,006)	0	0
Repayment of long-term debt		(45,000)	(599)	0
Distributions to Dover Corporation, net		(736,557)	(31,192)	(84,254)
Distribution to noncontrolling interest		(2,720)	(1,212)	(1,727)
Payment of capital lease obligations		(4,518)	(3,690)	(4,037)
Net cash required by financing activities		(90,838)	(36,693)	(90,018)
Effect of exchange rate changes on cash and cash equivalents		(737)	277	(90)
Net increase (decrease) in cash and cash equivalents		18,120	(2,315)	15,610
Cash and cash equivalents at beginning of period		23,712	26,027	10,417
Cash and cash equivalents at end of period		41,832	23,712	26,027
Adjustments and eliminations
Condensed Cash Flow Statements, Captions [Line Items]
Cash provided (required) by operating activities		(999)	67	(48)
Cash provided (required) by financing activities:
Distributions to Dover Corporation, net		999	(67)	48
Net cash required by financing activities		999	(67)	48
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Apergy Corporation
Condensed Cash Flow Statements, Captions [Line Items]
Cash provided (required) by operating activities		(51,728)
Cash provided (required) by financing activities:
Proceeds from long-term debt, net of discounts		713,963
Payment of debt issue costs		(16,006)
Repayment of long-term debt		(45,000)
Advances due to (from) affiliates		(600,802)
Distributions to Dover Corporation, net		(319)
Net cash required by financing activities		51,836
Net increase (decrease) in cash and cash equivalents		108
Cash and cash equivalents at end of period		108
Subsidiary Guarantors
Condensed Cash Flow Statements, Captions [Line Items]
Cash provided (required) by operating activities		200,907	64,422	107,060
Cash provided (required) by investing activities:
Capital expenditures		(55,070)	(35,008)	(22,325)
Proceeds from sale of property, plant and equipment		1,127	3,433	2,245
Proceeds from sale of business		2,473
Addition to intangible assets				(3,700)
Net cash required by investing activities		(51,470)	(31,575)	(23,780)
Cash provided (required) by financing activities:
Advances due to (from) affiliates		621,109
Distributions to Dover Corporation, net		(744,258)	(27,124)	(78,232)
Payment of capital lease obligations		(4,518)	(3,690)	(4,037)
Net cash required by financing activities		(127,667)	(30,814)	(82,269)
Net increase (decrease) in cash and cash equivalents		21,770	2,033	1,011
Cash and cash equivalents at beginning of period		5,763	3,730	2,719
Cash and cash equivalents at end of period		27,533	5,763	3,730
Subsidiary Non-guarantors
Condensed Cash Flow Statements, Captions [Line Items]
Cash provided (required) by operating activities		15,720	11,561	25,979
Cash provided (required) by investing activities:
Capital expenditures		(2,848)	(1,646)	(3,774)
Acquisition (net of cash and cash equivalents acquired)			(8,842)
Proceeds from sale of property, plant and equipment		60	114	281
Addition to intangible assets				0
Purchase price adjustments on acquisition		53
Net cash required by investing activities		(2,735)	(10,374)	(3,493)
Cash provided (required) by financing activities:
Repayment of long-term debt			(599)
Advances due to (from) affiliates		(20,307)
Distributions to Dover Corporation, net		7,021	(4,001)	(6,070)
Distribution to noncontrolling interest		(2,720)	(1,212)	(1,727)
Net cash required by financing activities		(16,006)	(5,812)	(7,797)
Effect of exchange rate changes on cash and cash equivalents		(737)	277	(90)
Net increase (decrease) in cash and cash equivalents		(3,758)	(4,348)	14,599
Cash and cash equivalents at beginning of period		17,949	22,297	7,698
Cash and cash equivalents at end of period		$ 14,191	$ 17,949	$ 22,297

Cash Flow Information - Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Supplemental Cash Flow Elements [Abstract]
Cash paid for income taxes	$ 27,191	$ 8,698	$ 7,285
Cash paid for interest	21,899	0	0
Capital lease additions	$ 4,428	$ 4,557	$ 755

Cash Flow Information - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Inventory transferred into property, plant, and equipment		$ 97,000
Proceeds from sale of business	$ 2,500	2,473	$ 0	$ 0
Gain (loss) on disposition of business	$ 1,300
Assets Leased to Others [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Payments to Acquire Machinery and Equipment		$ 26,700	$ 14,500	$ 1,100

Selected Quarterly Financial Data (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

May 09, 2018

Dec. 31, 2018

Sep. 30, 2018

^[1]

Jun. 30, 2018

^[1]

Mar. 31, 2018

^[1]

Dec. 31, 2017

^[1]

Sep. 30, 2017

^[1]

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

$ 311,202

$ 316,468

$ 305,850

$ 283,126

$ 265,195

$ 258,832

$ 256,161

$ 230,278

$ 1,216,646

$ 1,010,466

^[2]

$ 751,337

^[2]

105,271

113,734

103,680

93,614

75,534

84,952

84,630

75,360

416,299

320,476

195,271

22,732

^[3]

25,494

^[3]

22,075

^[3]

24,194

^[3]

61,225

^[3]

18,820

^[3]

19,033

^[3]

13,586

^[3]

94,495

112,664

(10,900)

Earnings per share, basic (in dollars per share)

$ 22,571

^[3]

$ 25,263

^[3]

$ 22,155

^[3]

$ 24,052

^[3]

$ 61,155

^[3]

$ 18,556

^[3]

$ 18,754

^[3]

$ 13,269

^[3]

$ 94,041

$ 111,734

$ (12,751)

$ 0.29

^[4]

$ 0.33

^[4]

$ 0.29

^[4]

$ 0.31

^[4]

$ 0.79

^[4]

$ 0.24

^[4]

$ 0.24

^[4]

$ 0.17

^[4]

$ 1.22

^[5]

$ 1.44

^[5]

$ (0.16)

^[5]

Earnings per share, diluted (in dollars per share)

$ 0.29

^[4]

$ 0.33

^[4]

$ 0.28

^[4]

$ 0.31

^[4]

$ 0.79

^[4]

$ 0.24

^[4]

$ 0.24

^[4]

$ 0.17

^[4]

$ 1.21

^[5]

$ 1.43

^[5]

$ (0.16)

^[5]

Issuance of common stock at the Separation

77,339,828

[1]	We revised our previously issued financial statements to correct immaterial errors. See Note 1 for additional information.
[2]	Revenue for the years ended December 31, 2017 and 2016, are presented in accordance with accounting standards in effect prior to our adoption of ASU No. 2014-09 on January 1, 2018. See Note 2 for further discussion regarding our adoption of ASU No. 2014-09.
[3]	Includes a net tax benefit related to the Tax Reform Act during the three months ended December 31, 2017. See Note 15—Income Taxes for additional information.
[4]	On May 9, 2018, 77,339,828 shares of our common stock were distributed to Dover stockholders in conjunction with the Separation. For comparative purposes, 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 with positive income prior to Separation.
[5]	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.

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

+ References + Details

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.