Quarterly report pursuant to Section 13 or 15(d)

Other Operating Expense, Net

v3.24.2.u1
Other Operating Expense, Net
 6 Months Ended
Jun. 30, 2024
Other Income and Expenses [Abstract]  
Other Operating Expense, Net

NOTE 6. OTHER OPERATING EXPENSE, NET

Other operating expense, net is comprised of the following:

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Litigation expenses and accruals for legal contingencies

 

$

9.2

 

 

$

7.4

 

 

$

14.0

 

 

$

13.2

 

Gain on insurance recoveries

 

 

(3.2

)

 

 

—

 

 

 

(3.2

)

 

 

—

 

Severance charges

 

 

1.1

 

 

 

—

 

 

 

1.8

 

 

 

—

 

(Gain) loss on disposal of assets

 

 

0.3

 

 

 

(0.5

)

 

 

(1.1

)

 

 

1.0

 

Supply commitment charge

 

 

—

 

 

 

—

 

 

 

0.2

 

 

 

—

 

Acquisition earnout adjustments

 

 

—

 

 

 

(3.6

)

 

 

—

 

 

 

(6.6

)

Provision for credit losses, net of recoveries

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.1

 

Total

 

$

7.4

 

 

$

3.3

 

 

$

11.7

 

 

$

7.7

 

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 the periods

presented, substantially all of these costs represent litigation costs incurred in connection with a patent infringement lawsuit against Halliburton. See "Note 9. Commitments and Contingencies" for a discussion of significant litigation matters.

Gain on insurance recoveries consists of insurance proceeds received for accidentally damaged or destroyed equipment in excess of its carrying value.

Severance charges for the three and six months ended June 30, 2024 relate to the departure of executives.

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

The acquisition earnout adjustment for the three and six months ended June 30, 2023 represents a decrease in the fair value of the contingent consideration related to our acquisition of REV Energy Holdings, LLC ("REV") in December 2022.