Annual report pursuant to Section 13 and 15(d)

Other Operating Expense, Net

v3.24.0.1
Other Operating Expense, Net
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
Other Operating Expense, Net

9. OTHER OPERATING EXPENSE, NET

Other operating expense, net is comprised of the following:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

(Gain) loss on disposal of assets

 

$

(1.7

)

 

$

2.1

 

 

$

9.8

 

Litigation expenses and accruals for legal contingencies

 

 

34.1

 

 

 

11.3

 

 

 

—

 

Severance charges

 

 

1.1

 

 

 

—

 

 

 

0.5

 

Loss on foreign currency transactions

 

 

—

 

 

 

—

 

 

 

0.2

 

Reorganization costs

 

 

—

 

 

 

—

 

 

 

2.1

 

Impairments of long-lived assets

 

 

2.5

 

 

 

—

 

 

 

—

 

Acquisition earnout adjustments

 

 

(6.6

)

 

 

—

 

 

 

—

 

Provision for credit losses, net of recoveries

 

 

0.1

 

 

 

1.9

 

 

 

(1.2

)

Total

 

$

29.5

 

 

$

15.3

 

 

$

11.4

 

Gain or loss on disposal of assets, net consists of gains or losses on excess property, early equipment failures, and other asset dispositions.

Litigation expenses and accruals for legal contingencies generally represent legal and professional fees incurred in litigation as well as estimates for loss contingencies with regards to certain vendor disputes and litigation matters. In 2023 more than half of these costs are related to litigation costs incurred in connection with multiple patent infringement lawsuits against Halliburton. See “Note 13 - Commitments and Contingencies” for further discussion.

Severance charges in 2023 related to the departure of two executives.

Impairments of long-lived assets in 2023 related to certain construction-in-process assets at one of our acquired sand mines that were abandoned.

The acquisition earnout adjustments represent a decrease in the fair value of the contingent consideration related to our acquisition of REV in December 2022.