ARCHROCK, INC., 10-K filed on 2/23/2022
Annual Report
v3.22.0.1
Cover - USD ($)
 12 Months Ended
Dec. 31, 2021
Feb. 16, 2022
Jun. 30, 2021
Cover page.      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Document Transition Report false    
Commission File Number 001-33666    
Entity Registrant Name Archrock, Inc    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 74-3204509    
Entity Street Address 9807 Katy Freeway    
Entity Suite Number Suite 100    
Entity City Houston    
Entity State TX    
Entity Postal Zip Code 77024    
City Area Code 281    
Local Phone Number 836-8000    
Title of each class Common Stock    
Trading Symbol AROC    
Name of exchange on which registered NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 1,191,894,665
Entity Common Stock, Shares Outstanding   155,231,118  
Documents Incorporated by Reference

Portions of the registrant’s definitive proxy statement for the 2021 Meeting of Stockholders, which is expected to be filed with the Securities and Exchange Commission within 120 days after December 31, 2021, are incorporated by reference into Part III of this Form 10-K.

    
Auditor Firm ID 34    
Auditor Name DELOITTE & TOUCHE LLP    
Auditor Location Houston, Texas    
Entity Central Index Key 0001389050    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.22.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 1,569 $ 1,097
Accounts receivable, trade, net of allowance of $2,152 and $3,370, respectively 104,931 104,425
Inventory 72,869 63,670
Other current assets 7,201 12,819
Total current assets 186,570 182,011
Property, plant and equipment, net 2,226,526 2,389,674
Operating lease ROU assets 17,491 19,236
Intangible assets, net 47,887 61,531
Contract costs, net 25,418 29,216
Deferred tax assets 47,879 56,934
Other assets 28,384 30,084
Noncurrent assets associated with discontinued operations 9,811 11,036
Total assets 2,589,966 2,779,722
Current liabilities:    
Accounts payable, trade 38,920 30,819
Accrued liabilities 82,517 76,993
Deferred revenue 3,817 3,880
Total current liabilities 125,254 111,692
Long-term debt 1,530,825 1,688,867
Operating lease liabilities 15,940 16,925
Deferred tax liabilities 1,136 725
Other liabilities 17,505 18,088
Noncurrent liabilities associated with discontinued operations 7,868 7,868
Total liabilities 1,698,528 1,844,165
Commitments and contingencies (Note 26)
Equity:    
Preferred stock: $0.01 par value per share, 50,000,000 shares authorized, zero issued
Common stock: $0.01 par value per share, 250,000,000 shares authorized, 161,482,852 and 160,014,960 shares issued, respectively 1,615 1,600
Additional paid-in capital 3,440,059 3,424,624
Accumulated other comprehensive loss (984) (5,006)
Accumulated deficit (2,463,114) (2,401,988)
Treasury stock: 7,417,401 and 7,052,769 common shares, at cost, respectively (86,138) (83,673)
Total equity 891,438 935,557
Total liabilities and equity $ 2,589,966 $ 2,779,722
v3.22.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Statement of Financial Position    
Accounts receivable, allowance $ 2,152 $ 3,370
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 50,000,000 50,000,000
Preferred stock, shares issued (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 250,000,000 250,000,000
Common stock, shares issued (in shares) 161,482,852 160,014,960
Treasury stock, common shares (in shares) 7,417,401 7,052,769
v3.22.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenues $ 781,461 $ 874,970 $ 965,485
Total cost of sales (excluding depreciation and amortization) 358,917 377,193 456,238
Selling, general and administrative 107,167 105,100 117,727
Depreciation and amortization 178,946 193,138 188,084
Long-lived and other asset impairment 21,397 79,556 44,663
Goodwill impairment   99,830  
Restatement and other charges     445
Restructuring charges 2,903 8,450  
Interest expense 108,135 105,716 104,681
Debt extinguishment loss   3,971 3,653
Transaction-related costs     8,213
Gain on sale of assets, net (30,258) (10,643) (16,016)
Other income, net (4,707) (1,359) (661)
Income (loss) before income taxes 38,961 (85,982) 58,458
Provision for (benefit from) income taxes 10,744 (17,537) (39,145)
Income (loss) from continuing operations 28,217 (68,445) 97,603
Loss from discontinued operations, net of tax     (273)
Net income (loss) $ 28,217 $ (68,445) $ 97,330
Basic net income (loss) per common share (in dollars per share) $ 0.18 $ (0.46) $ 0.70
Diluted net income (loss) per common share (in dollars per share) $ 0.18 $ (0.46) $ 0.70
Weighted average common shares outstanding:      
Basic (in shares) 151,684 150,828 137,492
Diluted (in shares) 151,830 150,828 137,528
Contract Operations      
Revenues $ 648,311 $ 738,918 $ 771,539
Total cost of sales (excluding depreciation and amortization) 244,486 261,087 297,260
Aftermarket Services      
Revenues 133,150 136,052 193,946
Total cost of sales (excluding depreciation and amortization) $ 114,431 $ 116,106 $ 158,978
v3.22.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income      
Net income (loss) $ 28,217 $ (68,445) $ 97,330
Other comprehensive income (loss), net of tax:      
Interest rate swap gain (loss), net of reclassifications to earnings 3,159 (3,619) (7,160)
Amortization of dedesignated interest rate swap 863    
Total other comprehensive income (loss), net of tax 4,022 (3,619) (7,160)
Comprehensive income (loss) $ 32,239 $ (72,064) $ 90,170
v3.22.0.1
CONSOLIDATED STATEMENTS OF EQUITY - USD ($)
$ in Thousands
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Deficit
Treasury Stock
ATM Agreement
Cumulative Effect, Period of Adoption, Adjustment
Total
Beginning balance at Dec. 31, 2018 $ 1,358 $ 3,177,982 $ 5,773   $ (2,263,677) $ (79,862)     $ 841,574
Stockholders' Equity, Beginning, shares at Dec. 31, 2018 135,787,509         (6,381,605)      
Increase (Decrease) in Stockholders' Equity                  
Treasury stock purchased           $ (2,007)     $ (2,007)
Treasury stock purchased, shares           (212,080)     (212,080)
Cash dividends         (78,530)       $ (78,530)
Shares issued under ESPP $ 1 770             771
Shares issued under ESPP (in shares) 87,933                
Stock-based compensation, net of forfeitures $ 11 8,094             8,105
Stock-based compensation, net of forfeitures (in shares) 1,104,793         (108,917)      
Shares issued for Elite acquisition $ 217 225,663             225,880
Shares issued for Elite acquisition, shares 21,656,683                
Comprehensive income (loss)                  
Net income (loss)         97,330       97,330
Interest rate swap gain (loss), net of reclassifications to earnings     (7,160)           (7,160)
Ending balance at Dec. 31, 2019 $ 1,587 3,412,509 (1,387)   (2,244,877) $ (81,869)     1,085,963
Stockholders' Equity, Ending, shares at Dec. 31, 2019 158,636,918         (6,702,602)      
Increase (Decrease) in Stockholders' Equity                  
Treasury stock purchased           $ (1,804)     $ (1,804)
Treasury stock purchased, shares           (236,752)     (236,752)
Cash dividends         (88,832)       $ (88,832)
Shares issued under ESPP $ 2 681             683
Shares issued under ESPP (in shares) 171,563                
Stock-based compensation, net of forfeitures $ 11 10,756             10,767
Stock-based compensation, net of forfeitures (in shares) 1,206,479         (113,415)      
Contribution from Exterran Corporation   678             678
Comprehensive income (loss)                  
Net income (loss)         (68,445)       (68,445)
Interest rate swap gain (loss), net of reclassifications to earnings     (3,619)           (3,619)
Ending balance at Dec. 31, 2020 $ 1,600 3,424,624 (5,006) $ 166 (2,401,988) $ (83,673)   $ 166 935,557
Stockholders' Equity, Ending, shares at Dec. 31, 2020 160,014,960         (7,052,769)      
Increase (Decrease) in Stockholders' Equity                  
Treasury stock purchased           $ (2,465)     $ (2,465)
Treasury stock purchased, shares           (283,972)     (283,972)
Cash dividends         (89,343)       $ (89,343)
Shares issued under ESPP $ 1 712             713
Shares issued under ESPP (in shares) 89,988                
Stock-based compensation, net of forfeitures $ 10 11,326             11,336
Stock-based compensation, net of forfeitures (in shares) 1,020,756         (80,660)      
Net proceeds from issuance of common stock $ 4 3,397             3,401
Net proceeds from issuance of common stock (in shares) 357,148           357,148    
Comprehensive income (loss)                  
Net income (loss)         28,217       28,217
Interest rate swap gain (loss), net of reclassifications to earnings     3,159           3,159
Amortization of dedesignated interest rate swap     863           863
Ending balance at Dec. 31, 2021 $ 1,615 $ 3,440,059 $ (984)   $ (2,463,114) $ (86,138)     $ 891,438
Stockholders' Equity, Ending, shares at Dec. 31, 2021 161,482,852         (7,417,401)      
v3.22.0.1
CONSOLIDATED STATEMENTS OF EQUITY (Parentheticals) - $ / shares
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Stockholders' Equity                              
Dividend declared per common stock (in dollars per share) $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.132 $ 0.132 $ 0.580 $ 0.580 $ 0.554
v3.22.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities:      
Net income (loss) $ 28,217 $ (68,445) $ 97,330
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Loss from discontinued operations, net of tax     273
Depreciation and amortization 178,946 193,138 188,084
Long-lived and other asset impairment 21,397 79,556 44,663
Goodwill impairment   99,830  
Inventory write-downs 997 1,349 944
Amortization of operating lease ROU assets 3,880 3,477 2,931
Amortization of deferred financing costs 10,127 5,554 6,211
Amortization of debt discount   187 910
Amortization of debt premium (2,006) (84)  
Amortization of dedesignated interest rate swap 863    
Debt extinguishment loss   3,971 3,653
Interest rate swaps 3,539 3,178 (1,071)
Stock-based compensation expense 11,336 10,551 8,105
Non-cash restructuring charges   1,660  
Provision for credit losses (90) 3,525 2,567
(Gain) loss on sale of assets, net (11,313) 1,832 (16,016)
Gain on sale of business (18,945) (12,475)  
Deferred income tax provision (benefit) 10,379 (17,764) (39,597)
Amortization of contract costs 19,990 26,629 23,330
Deferred revenue recognized in earnings (10,382) (19,489) (42,268)
Change in assets and liabilities, net of acquisition:      
Accounts receivable, trade 4,445 36,395 3,248
Inventory (12,989) 3,972 6,036
Other assets 635 (5,797) 4,458
Contract costs, net (16,991) (13,262) (27,237)
Accounts payable and other liabilities 5,269 (15,089) (12,728)
Deferred revenue 10,217 12,732 36,578
Other (121) 147 12
Net cash provided by continuing operations 237,400 335,278 290,416
Net cash used in discontinued operations     (269)
Net cash provided by operating activities 237,400 335,278 290,147
Cash flows from investing activities:      
Capital expenditures (97,885) (140,302) (385,198)
Proceeds from sale of business 83,345 33,651  
Proceeds from sale of property, plant and equipment and other assets 29,562 18,911 80,961
Proceeds from insurance and other settlements 1,085 2,709 3,696
Cash paid in Elite Acquisition     (214,019)
Net cash provided by (used in) investing activities 16,107 (85,031) (514,560)
Cash flows from financing activities:      
Borrowings of long-term debt 704,751 1,049,000 2,395,250
Repayments of long-term debt (863,251) (1,204,375) (2,071,750)
Payments for debt issuance costs (2,451) (5,269) (22,426)
Proceeds from (payments for) settlement of interest rate swaps that include financing elements (4,390) (2,916) 1,180
Dividends paid to stockholders (89,343) (88,832) (78,530)
Net proceeds from issuance of common stock 3,401    
Proceeds from stock issued under ESPP 713 683 771
Purchases of treasury stock (2,465) (1,804) (2,007)
Contribution from Exterran Corporation   678  
Net cash provided by (used in) financing activities (253,035) (252,835) 222,488
Net increase (decrease) in cash and cash equivalents 472 (2,588) (1,925)
Cash and cash equivalents, beginning of period 1,097 3,685 5,610
Cash and cash equivalents, end of period 1,569 1,097 3,685
Supplemental disclosure of cash flow information:      
Interest paid (100,002) (99,797) (97,451)
Income taxes refunded (paid), net (247) (94) 1,973
Supplemental disclosure of non-cash investing and financing transactions:      
Accrued capital expenditures $ 7,641 1,624 11,767
Non-cash consideration received in July 2020 Disposition   $ 5,762  
Issuance of Archrock common stock pursuant to Elite Acquisition, net of tax     $ 225,880
v3.22.0.1
Description of Business
 12 Months Ended
Dec. 31, 2021
Description Of Business  
Description of Business

1. Description of Business

We are an energy infrastructure company with a pure-play focus on midstream natural gas compression. We are the leading provider of natural gas compression services to customers in the oil and natural gas industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment in the U.S. We operate in two business segments: contract operations and aftermarket services. Our predominant segment, contract operations, primarily includes designing, sourcing, owning, installing, operating, servicing, repairing and maintaining our owned fleet of natural gas compression equipment to provide natural gas compression services to our customers. In our aftermarket services business, we sell parts and components and provide operations, maintenance, overhaul and reconfiguration services to customers who own compression equipment.
v3.22.0.1
Basis of Presentation and Significant Accounting Policies
 12 Months Ended
Dec. 31, 2021
Basis of Presentation and Significant Accounting Policies  
Basis of Presentation and Significant Accounting Policies

2. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

Our Financial Statements include Archrock and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated in consolidation.

Our Financial Statements are prepared in accordance with GAAP and the rules and regulations of the SEC. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues, expenses and disclosures of contingent assets and liabilities. Because of the inherent uncertainties in this process, actual future results could differ from those expected as of the reporting date. Management believes that the estimates and assumptions used are reasonable.

Significant Accounting Policies

Cash and Cash Equivalents

We consider all highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Revenue Recognition

We recognize revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we are entitled to receive in exchange for those goods or services. Sales and usage-based taxes that are collected from the customer are excluded from revenue.

Contract Operations

Natural gas compression services. Natural gas compression services are generally satisfied over time, as the customer simultaneously receives and consumes the benefits provided by these services. Our performance obligation is a series in which the unit of service is one month, as the customer receives substantially the same benefit each month from the services regardless of the type of service activity performed, which may vary. If the transaction price is based on a fixed fee, revenue is recognized monthly on a straight-line basis over the period that we are providing services to the customer. Amounts invoiced to customers for costs associated with moving our compression assets to a customer site are also included in the transaction price and are amortized over the initial contract term. We do not consider the effects of the time value of money, as the expected time between the transfer of services and payment for such services is less than one year.

Variable consideration exists if customers are billed at a lesser standby rate when a unit is not running. We recognize revenue for such variable consideration monthly, as the invoice corresponds directly to the value transferred to the customer based on our performance completed to date. The rate for standby service is lower to reflect the decrease in costs and effort required to provide standby service when a unit is not running.

Billable Maintenance Service. We perform billable maintenance service on our natural gas compression equipment at the customer’s request on an as-needed basis. The performance obligation is satisfied and revenue is recognized at the agreed-upon transaction price at the point in time when service is complete and the customer has accepted the work performed and can obtain the remaining benefits of the service that the unit will provide.

Aftermarket Services

OTC Parts and Components Sales. For sales of OTC parts and components, the performance obligation is generally satisfied at the point in time when delivery takes place and the customer obtains control of the part or component. The transaction price is the fixed sales price for the part stated in the contract. Revenue is recognized upon delivery, as we have a present right to payment and the customer has legal title.

Maintenance, Overhaul and Reconfiguration Services. For our service activities, the performance obligation is satisfied over time, as the work performed enhances the customer-controlled asset and another entity would not have to substantially re-perform the work we completed if they were to fulfill the remaining performance obligation. The transaction price may be a fixed monthly service fee, a fixed quoted fee or entirely variable, calculated on a time and materials basis.

For service provided based on a fixed monthly fee, the performance obligation is a series in which the unit of service is one month. The customer receives substantially the same benefit each month from the service, regardless of the type of service activity performed, which may vary. As the progress towards satisfaction of the performance obligation is measured based on the passage of time, revenue is recognized monthly based on the fixed fee provided for in the contract.

For service provided based on a quoted fixed fee, progress towards satisfaction of the performance obligation is measured using an input method based on the actual amount of labor and material costs incurred. The amount of the transaction price recognized as revenue each reporting period is determined by multiplying the transaction price by the ratio of actual costs incurred to date to total estimated costs expected for the service. Significant judgment is involved in the estimation of the progress to completion. Any adjustments to the measure of the progress to completion is accounted for on a prospective basis. Changes to the scope of service is recognized as an adjustment to the transaction price in the period in which the change occurs.

Service provided based on time and materials is generally short-term in nature and labor rates and parts pricing is agreed upon prior to commencing the service. We apply an estimated gross margin percentage, which is fixed based on historical time and materials-based service, to actual costs incurred. We evaluate the estimated gross margin percentage at the end of each reporting period and adjust the transaction price as appropriate.

Contract Assets and Liabilities

We recognize a contract asset when we have the right to consideration in exchange for goods or services transferred to a customer when the right is conditioned on something other than the passage of time. We recognize a contract liability when we have an obligation to transfer goods or services to a customer for which we have already received consideration.

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents and trade accounts receivable. Our temporary cash investments have a zero-loss expectation because we maintain minimal balances in our cash investment accounts and have no history of loss. Trade accounts receivable are due from companies of varying size engaged principally in oil and natural gas activities throughout the U.S. We review the financial condition of customers prior to extending credit and generally do not obtain collateral for trade receivables. Payment terms are on a short-term basis and in accordance with industry practice. We consider this credit risk to be limited due to these companies’ financial resources, the nature of the products and services we provide and the terms of our customer agreements.

Due to the short-term nature of our trade receivables, we consider the amortized cost to be the same as the carrying amount of the receivable, excluding the allowance for credit losses. We recognize an allowance for credit losses when a receivable is recorded, even when the risk of loss is remote. We utilize an aging schedule to determine our allowance for credit losses, and measure expected credit losses on a collective (pool) basis when similar risk characteristics exist. We rely primarily on ratings assigned by external rating agencies and credit monitoring services to assess credit risk and aggregate customers first by low, medium or high risk asset pools, and then by delinquency status. We also consider the internal risk associated with geographic location and the services we provide to the customer when determining asset pools. If a customer does not share similar risk characteristics with other customers, we evaluate the customer’s outstanding trade receivables for expected credit losses on an individual basis. Trade receivables evaluated individually are not included in our collective assessment. Each reporting period, we reassess our customers’ risk profiles and determine the appropriate asset pool classification, or perform individual assessments of expected credit losses, based on the customers’ risk characteristics at the reporting date.

The contractual life of our trade receivables is primarily 30 days based on the payment terms specified in the contract. Contract operations services are generally billed monthly at the beginning of the month in which service is being provided. Aftermarket services billings typically occur when parts are delivered or service is completed. Loss rates are separately determined for each asset pool based on the length of time a trade receivable has been outstanding. We analyze two years of internal historical loss data, including the effects of prepayments, write-offs and subsequent recoveries, to determine our historical loss experience. Our historical loss information is a relevant data point for estimating credit losses, as the data closely aligns with trade receivables due from our customers. Ratings assigned by external rating agencies and credit monitoring services consider past performance and forecasts of future economic conditions in assessing credit risk. We routinely update our historical loss data to reflect our customers’ current risk profile, to ensure the historical data and loss rates are relevant to the pool of assets for which we are estimating expected credit losses.

At both December 31, 2021 and 2020, Chevron U.S.A. Inc. and Williams Partners accounted for 14%and 10% of our trade accounts receivable balance, respectively. The following table summarizes the activity in our allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Balance at beginning of period

      

$

3,370

      

$

2,210

      

$

1,452

Impact of adoption of ASU 2016-13 on January 1, 2020

​

​

—

​

​

(216)

​

​

—

Provision for credit losses

​

​

(90)

​

​

3,525

​

​

2,567

Write-offs charged against allowance

​

​

(1,128)

​

​

(2,149)

​

​

(1,809)

Balance at end of period

​

$

2,152

​

$

3,370

​

$

2,210

​

Inventory

Inventory consists of parts used for maintenance of natural gas compression equipment. Inventory is stated at the lower of cost and net realizable value using the average cost method.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives as follows:

​

​

​

​

Compression equipment, facilities and other fleet assets

    

3 to 30 years

Buildings

​

20 to 35 years

Transportation and shop equipment

​

3 to 10 years

Computer hardware and software

​

3 to 5 years

Other

​

3 to 10 years

​

Major improvements that extend the useful life of an asset are capitalized and depreciated over the estimated useful life of the major improvement, up to seven years. Repairs and maintenance are expensed as incurred.

Long-Lived Assets

We review long-lived assets, including property, plant and equipment and identifiable intangibles that are being amortized, for impairment whenever events or changes in circumstances, including the removal of compressors from our active fleet, indicate that the carrying amount of an asset may not be recoverable. An impairment loss exists when estimated undiscounted cash flows expected from the use of the asset and its eventual disposition are less than its carrying amount. Impairment losses are recognized in the period in which the impairment occurs and represent the excess of the asset carrying value over its fair value. Identifiable intangibles are amortized over the estimated useful life of the asset.

Leases

We determine if an arrangement is a lease at inception and determine lease classification and recognize ROU assets and liabilities on the lease commencement date based on the present value of lease payments over the lease term. As the discount rate implicit in the lease is rarely readily determinable, we estimate our incremental borrowing rate using information available at commencement date in determining the present value of the lease payments. The lease term includes options to extend when we are reasonably certain to exercise the option. Short-term leases, those with an initial term of 12 months or less, are not recorded on the balance sheet. Variable costs such as our proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance are not included in the lease liability and are recognized in the period in which they are incurred. Operating lease expense for lease payments is recognized on a straight-line basis over the term of the lease.

Our facility leases, of which we are the lessee, contain lease and nonlease components, which we have elected to account for as a single lease component, as the nonlease components are not significant to the total consideration of the contract and separating the nonlease component would have no effect on lease classification. As it relates to our contract operations service agreements in which we are a lessor, the services nonlease component is predominant over the compression package lease component and therefore recognition of these agreements follows the Accounting Standards Codification Topic 606 Revenue from Contracts with Customers guidance.

Goodwill

The goodwill acquired in connection with the Elite Acquisition represented the excess of consideration transferred over the fair value of the assets and liabilities acquired. We review the carrying amount of our goodwill in the fourth quarter of every year, or whenever indicators of potential impairment exist, to determine if the carrying amount of a reporting unit exceeds its fair value, including the applicable goodwill. We perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is impaired. If the fair value is more likely than not impaired, we perform a quantitative impairment test to identify impairment and measure the amount of impairment loss to be recognized, if any.

Our qualitative assessment includes consideration of various events and circumstances and their potential impact to a reporting unit’s fair value, including macroeconomic and industry conditions such as a deterioration in our operating environment and limitations on access to capital and other developments in the equity and credit markets, cost factors that could have a negative effect on earnings and cash flows, relevant entity-specific and reporting unit-specific events and overall financial performance such as declining earnings or cash flows or a sustained decrease in share price.

The quantitative impairment test (i) allocates goodwill and our other assets and liabilities to our reporting units, contract operations and aftermarket services, (ii) calculates the fair value of the reporting units and (iii) determines the impairment loss, if any, as the amount by which the carrying amount of the reporting unit exceeds its fair value (limited to the total amount of goodwill allocated to that reporting unit). All of the goodwill recognized in the Elite Acquisition was allocated to our contract operations reporting unit. The fair value of the contract operations reporting unit is calculated using the expected present value of future cash flows method. Significant estimates are made to determine future cash flows including future revenues, costs and capital requirements and the appropriate risk-adjusted discount rate by which to discount the estimated future cash flows.

In the first quarter of 2020, the global response to the COVID-19 pandemic significantly impacted our market capitalization and estimates of future revenues and cash flows, which triggered the need to perform a quantitative test of the fair value of our contract operations reporting unit as of March 31, 2020. The quantitative test determined that the carrying amount of our contract operations reporting unit exceeded its fair value and we recorded a full impairment loss on goodwill as a result.

Internal-Use Software

Certain of our contracts have been deemed to be hosting arrangements that are service contracts, including those related to the cloud migration of our ERP system and cloud services for our new mobile workforce, telematics and inventory management tools. Certain costs incurred for the implementation of a hosting arrangement that is a service contract are capitalized and amortized on a straight-line basis over the term of the respective contract. Amortization begins for each component of the hosting arrangement when the component becomes ready for its intended use. Capitalized implementation costs are presented in other assets, the same line item in our consolidated balance sheets that a prepayment of the fees for the associated hosting arrangement would be presented. Amortization expense of the capitalized implementation costs is presented in SG&A, the same line item in our consolidated statements of operations as the expense for fees for the associated hosting arrangement.

Income Taxes

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rate on deferred tax assets and liabilities is recognized in income in the period of the enactment date.

We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. If a valuation allowance was previously recorded and we subsequently determined we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax assets’ valuation allowance, which would reduce the provision for income taxes.

We record uncertain tax positions in accordance with the accounting standard on income taxes under a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

Hedging and Use of Derivative Instruments

We use derivative instruments to manage our exposure to fluctuations in the variable interest rate of our Credit Facility and thereby minimize the risks and costs associated with financial activities. We do not use derivative instruments for trading or other speculative purposes. We record interest rate swaps on the balance sheet as either derivative assets or derivative liabilities measured at their fair value. The fair value of our derivatives is based on the income approach (discounted cash flow) using market observable inputs, including LIBOR forward curves. Changes in the fair value of the derivatives designated as cash flow hedges are recognized as a component of other comprehensive income (loss) until the hedged transaction affects earnings. At that time, amounts are reclassified into earnings to interest expense, the same statement of operations line item to which the earnings effect of the hedged item is recorded. Cash flows from derivatives designated as hedges are classified in our consolidated statements of cash flows under the same category as the cash flows from the underlying assets, liabilities or anticipated transactions unless the derivative contract contains a significant financing element, in which case, the cash settlements for these derivatives are classified as cash flows from financing activities.

To qualify for hedge accounting treatment, we must formally document, designate and assess the effectiveness of the transactions. We perform quarterly qualitative prospective and retrospective hedge effectiveness assessments unless facts and circumstances related to the hedging relationships change such that we can no longer assert qualitatively that the cash flow hedge relationships were and continue to be highly effective. If the necessary correlation ceases to exist or if the anticipated transaction is no longer probable, we would discontinue hedge accounting and apply mark-to-market accounting. Amounts paid or received from interest rate swap agreements are recorded in interest expense and matched with the cash flows and interest expense of the debt being hedged, resulting in an adjustment to the effective interest rate.
v3.22.0.1
Recent Accounting Developments
 12 Months Ended
Dec. 31, 2021
Recent Accounting Developments  
Recent Accounting Developments

3. Recent Accounting Developments

Accounting Standards Updates Implemented

Reference Rate Reform

In June 2021, we prospectively adopted ASU 2020-04, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued as a result of reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. Entities may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020. On June 10, 2021, we amended one of our interest rate swap agreements and determined that the modifications meet the criteria for the optional expedients and exceptions, which allow us to forego dedesignation of the hedging relationship and to subsequently assess effectiveness on a qualitative basis. The adoption of ASU 2020-04 did not have a material impact on our consolidated financial statements. In the first quarter, we evaluated Amendment No. 3 to our Credit Facility and determined that ASU 2020-04 was not applicable. We will continue to assess any modifications to our interest rate swap and Credit Facility agreements during the effective period of this update and will apply the amendments as applicable.
v3.22.0.1
Business Transactions
 12 Months Ended
Dec. 31, 2021
Business Transactions  
Business Transactions

4. Business Transactions

July 2021 Dispositions

In July 2021, we completed sales of certain contract operations customer service agreements and approximately 575 compressors, comprising approximately 100,000 horsepower, used to provide compression services under those agreements, as well as other assets used to support the operations. We allocated customer-related and contract-based intangible assets based on a ratio of the horsepower sold relative to the total horsepower of the asset group. We received cash consideration of $60.3 million for the sales and recorded gains on the sales of $13.0 million in gain on sale of assets, net in our consolidated statements of operations during the year ended December 31, 2021.

February 2021 Disposition

In February 2021, we completed the sale of certain contract operations customer service agreements and approximately 300 compressors, comprising approximately 40,000 horsepower, used to provide compression services under those agreements as well as other assets used to support the operations. We allocated customer-related and contract-based intangible assets based on a ratio of the horsepower sold relative to the total horsepower of the asset group. We recorded a gain on the sale of $6.0 million in gain on sale of assets, net in our consolidated statements of operations during the year ended December 31, 2021.

July 2020 Disposition

In July 2020, we completed the sale of the turbocharger business included within our aftermarket services segment. In connection with the sale, we entered into a supply agreement to purchase a minimum amount of turbocharger goods and services over a two-year term. In addition to cash of $9.5 million received upon closing, an additional $3.0 million was received on the first anniversary of the closing date in July 2021, and $3.5 million was received through the purchase of turbocharger goods and services under the supply agreement, including $2.8 million that was received during the year ended December 31, 2021. We recognized a gain on the sale of $9.3 million in gain on sale of assets, net in our consolidated statements of operations during the year ended December 31, 2020.

March 2020 Disposition

In March 2020, we completed the sale of certain contract operations customer service agreements and approximately 200 compressors, comprising approximately 35,000 horsepower, used to provide compression services under those agreements as well as other assets used to support the operations. We allocated customer-related and contract-based intangible assets and goodwill based on a ratio of the horsepower sold relative to the total horsepower of the asset group. We recognized a gain on the sale of $3.2 million in gain on sale of assets, net in our consolidated statements of operations during the year ended December 31, 2020.

Elite Acquisition

In August 2019, we completed the Elite Acquisition whereby we acquired from Elite Compression substantially all of its assets, including a fleet of predominantly large compressors comprising approximately 430,000 horsepower, vehicles, real property and inventory, and certain liabilities for aggregate consideration consisting of $214.0 million in cash and 21.7 million shares of common stock with an acquisition date fair value of $225.9 million. The cash portion of the acquisition was funded with borrowings under the Credit Facility.

The Elite Acquisition was accounted for using the acquisition method, which requires, among other things, assets acquired and liabilities assumed to be recorded at their fair value on the acquisition date. The excess of the consideration transferred over those fair values was recorded as goodwill. Our valuation methodology and significant inputs for fair value measurements are detailed by asset class below. The fair value measurements for property, plant and equipment and intangible assets were based on significant inputs that are not observable in the market and therefore represent Level 3 measurements.

Goodwill

The goodwill resulting from the acquisition was attributable to the expansion of our services in various regions in which we currently operate and was allocated to our contract operations segment. The goodwill had an indefinite life that was to be reviewed annually for impairment or more frequently if indicators of potential impairment existed. All of the goodwill recorded for this acquisition is expected to be deductible for U.S. federal income tax purposes. See Note 9 (“Goodwill”) for details on the 2020 impairment of our goodwill.

Property, Plant and Equipment

The property, plant and equipment is primarily comprised of compression equipment that will be depreciated on a straight-line basis over an estimated average remaining useful life of 15 years. The fair value of the property, plant and equipment was determined using the cost approach, whereby we estimated the replacement cost of the assets by evaluating recent purchases of similar assets or published data, and then adjusted replacement cost for physical deterioration and functional and economic obsolescence, as applicable.

Intangible Assets

The intangible assets consist of customer relationships that have an estimated useful life of 15 years. The amount of intangible assets and their associated useful life were determined based on the period over which the assets are expected to contribute directly or indirectly to our future cash flows. The fair value of the identifiable intangible assets was determined using the multi-period excess earnings method, which is a specific application of the discounted cash flow method, an income approach, whereby we estimated and then discounted the future cash flows of the intangible asset by adjusting overall business revenue for attrition, obsolescence, cost of sales, operating expenses, taxes and the required returns attributable to other contributory assets acquired. Significant estimates made in arriving at expected future cash flows included our expected customer attrition rate and the amount of earnings attributable to the assets. To discount the estimated future cash flows, we utilized a discount rate that was at a premium to our weighted average cost of capital to reflect the less liquid nature of the customer relationships relative to the tangible assets acquired.

Unaudited Pro Forma Financial Information

Unaudited pro forma financial information for the year ended December 31, 2019 was derived by adjusting our historical financial statements in order to give effect to the assets and liabilities acquired in the Elite Acquisition. The Elite Acquisition is presented in this unaudited pro forma financial information as though the acquisition occurred as of January 1, 2018, and reflects the following:

• the acquisition of substantially all of Elite Compression’s assets, including a compression fleet of approximately 430,000 horsepower, vehicles, real property and inventory, and certain liabilities;
• borrowings of $214.0 million under the Credit Facility for cash consideration exchanged in the acquisition; and
• the exclusion of $7.8 million of financial advisory, legal and other professional fees incurred related to the acquisition and recorded to transaction-related costs in our consolidated statements of operations during the year ended December 31, 2019.

The unaudited pro forma financial information below is presented for informational purposes only and is not necessarily indicative of our results of operations that would have occurred had the transaction been consummated at the beginning of the period presented, nor is it necessarily indicative of future results.

​

​

​

​

​

​

​

Year Ended

(in thousands)

    

December 31, 2019

Revenue

​

$

1,009,763

Net income attributable to Archrock stockholders

​

 

106,521

​

The results of operations attributable to the assets and liabilities acquired in the Elite Acquisition have been included in our consolidated financial statements as part of our contract operations segment since the date of acquisition. Revenue attributable to the assets acquired from the date of acquisition, August 1, 2019, through December 31, 2019 was $33.2 million. We are unable to provide earnings attributable to the assets and liabilities acquired since the date of acquisition as we do not prepare full stand-alone earnings reports for those assets and liabilities.

Harvest Sale

In August 2019, we completed an asset sale in which Harvest acquired from us approximately 80,000 active and idle compression horsepower, vehicles and parts inventory for cash consideration of $30.0 million. We recorded a $6.6 million gain on this sale to gain on sale of assets, net in our consolidated statements of operations during the year ended December 31, 2019. The assets were previously reported under our contract operations segment.
v3.22.0.1
Discontinued Operations
 12 Months Ended
Dec. 31, 2021
Discontinued Operations  
Discontinued Operations

5. Discontinued Operations

We completed the Spin-off in 2015. In order to effect the Spin-off and govern our relationship with Exterran Corporation after the Spin-off, we entered into several agreements with Exterran Corporation, including a tax matters agreement, which governs the respective rights, responsibilities and obligations of Exterran Corporation and us with respect to certain tax matters. As of both December 31, 2021 and 2020, we had $7.9 million of unrecognized tax benefits (including interest and penalties) related to Exterran Corporation operations prior to the Spin-off recorded to noncurrent liabilities associated with discontinued operations in our consolidated balance sheets. We had an offsetting indemnification asset of $7.9 million related to these unrecognized tax benefits recorded to noncurrent assets associated with discontinued operations as of both December 31, 2021 and 2020.

The following table presents the balance sheets for our discontinued operations:

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

​

2020

Other assets

​

$

7,868

​

$

7,868

Deferred tax assets

​

​

1,943

​

​

3,168

Total assets associated with discontinued operations

​

$

9,811

​

$

11,036

​

​

​

​

​

​

​

Deferred tax liabilities

​

$

7,868

​

$

7,868

Total liabilities associated with discontinued operations

​

$

7,868

​

$

7,868

​

​

The following table presents the statements of operations for our discontinued operations:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Other (income) expense, net

​

$

—

    

$

640

    

$

(1,473)

Provision for (benefit from) income taxes

​

 

—

​

 

(640)

​

 

1,746

Loss from discontinued operations, net of tax

​

$

—

​

$

—

​

$

(273)

​
v3.22.0.1
Inventory
 12 Months Ended
Dec. 31, 2021
Inventory  
Inventory

6. Inventory

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

    

2020

Parts and supplies

​

$

63,628

​

$

57,433

Work in progress

​

 

9,241

​

 

6,237

Inventory

​

$

72,869

​

$

63,670

​

During the years ended December 31, 2021, 2020 and 2019, we recorded write-downs to inventory of $1.0 million, $1.3 million and $0.9 million, respectively, for inventory considered to be excess, obsolete or carried at an amount in excess of net realizable value.
v3.22.0.1
Property, Plant and Equipment, Net
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment, net  
Property, Plant and Equipment, Net

7. Property, Plant and Equipment, net

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

​

2020

Compression equipment, facilities and other fleet assets

​

$

3,273,770

​

$

3,439,432

Land and buildings

​

 

43,540

​

 

45,167

Transportation and shop equipment

​

 

92,490

​

 

106,868

Computer hardware and software

​

 

76,908

​

 

84,680

Other

​

 

6,229

​

 

14,457

Property, plant and equipment

​

 

3,492,937

​

 

3,690,604

Accumulated depreciation

​

 

(1,266,411)

​

 

(1,300,930)

Property, plant and equipment, net

​

$

2,226,526

​

$

2,389,674

​

Depreciation expense was $167.6 million, $177.5 million and $172.8 million during the years ended December 31, 2021, 2020 and 2019, respectively. Assets under construction of $30.1 million and $17.6 million at December 31, 2021 and 2020, respectively, primarily consisted of compression equipment, facilities and other fleet assets.
v3.22.0.1
Leases
 12 Months Ended
Dec. 31, 2021
Leases  
Leases

8. Leases

We have operating leases and subleases for office space, temporary housing, storage and shops. Our leases have remaining lease terms of less than one year to approximately nine years and most include options to extend the lease term, at our discretion, for an additional six months to ten years. We are not, however, reasonably certain that we will exercise any of the options to extend and as such, they have not been included in the remaining lease terms.

Financial and other supplemental information related to our operating leases follows.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

    

Classification

    

2021

    

2020

ROU assets

 

Operating lease ROU assets

​

$

17,491

​

$

19,236

​

​

​

​

​

​

​

​

​

Lease liabilities

 

  

​

 

  

​

 

  

Current

 

Accrued liabilities

​

$

2,940

​

$

3,564

Noncurrent

 

Operating lease liabilities

​

 

15,940

​

 

16,925

Total lease liabilities

 

  

​

$

18,880

​

$

20,489

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

​

2020

​

2019

Operating lease cost

​

$

4,836

​

$

4,508

​

$

3,966

Short-term lease cost

​

 

169

​

 

52

​

 

348

Variable lease cost

​

 

2,123

​

 

1,652

​

 

1,607

Total lease cost

​

$

7,128

​

$

6,212

​

$

5,921

​

​

​

​

​

​

​

​

​

​

​

​

    

Year Ended December 31, 

(in thousands)

​

2021

​

2020

​

2019

Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities

​

$

6,568

​

$

5,885

​

$

5,420

Operating lease ROU assets obtained in exchange for lease liabilities, net (1)

​

 

2,135

​

 

4,812

​

 

2,247

(1)Includes decreases to our ROU assets of $0.3 million and $0.1 million related to lease amendments and terminations during the years ended December 31, 2021 and 2020, respectively.

​

​

​

​

​

​

​

​

​

​

      

December 31, 

    

​

​

2021

​

2020

​

2019

​

Weighted average remaining lease term (in years)

​

7.2

​

7.9

​

8.2

​

Weighted average discount rate

​

4.6

%

4.8

%

5.3

%

​

Remaining maturities of our lease liabilities as of December 31, 2021 were as follows:

​

​

​

​

​

(in thousands)

    

​

​

2022

​

$

3,454

2023

​

​

3,453

2024

​

 

2,998

2025

​

 

2,575

2026

​

 

2,321

Thereafter

​

 

7,628

Total lease payments

​

 

22,429

Less: Interest

​

 

(3,549)

Total lease liabilities

​

$

18,880

​
v3.22.0.1
Goodwill
 12 Months Ended
Dec. 31, 2021
Goodwill  
Goodwill

9. Goodwill

We recognized goodwill in connection with the Elite Acquisition, which represented the excess of consideration transferred over the fair value of the assets and liabilities acquired. All of the goodwill was allocated to our contract operations reporting unit. Beginning in the first quarter of 2020, the COVID-19 pandemic caused a significant deterioration in global macroeconomic conditions, which commenced substantial spending cuts by our customers and a decline in production. This global response to the pandemic significantly impacted our market capitalization and estimates of future revenues and cash flows, which triggered the need to perform a quantitative test of the fair value of our contract operations reporting unit as of March 31, 2020. The quantitative test determined that the carrying amount of our contract operations reporting unit exceeded its fair value and we recorded a goodwill impairment loss of $99.8 million during the first quarter of 2020.

Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions, which have a significant impact on the fair value determined. We determined the fair value of our reporting unit using an equal weighting of both the expected present value of future cash flows and a market approach. The present value of future cash flows was estimated using our most recent forecast and the weighted average cost of capital. The market approach used a market multiple on the earnings before interest expense, provision for income taxes and depreciation and amortization expense of comparable peer companies. Significant estimates for our reporting unit included in our impairment analysis were our cash flow forecasts, our estimate of the market’s weighted average cost of capital and market multiples.

​
v3.22.0.1
Intangible Assets, net
 12 Months Ended
Dec. 31, 2021
Intangible Assets, net  
Intangible Assets, net

10. Intangible Assets, net

Intangible assets include customer relationships and contracts associated with various business and asset acquisitions. These acquired intangible assets were recorded at fair value determined as of the acquisition date and are being amortized over the period we expect to benefit from the assets. Intangible assets, net consisted of the following:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

December 31, 2020

​

​

Gross

​

​

​

​

Gross

​

​

​

​

​

Carrying

​

Accumulated

​

Carrying

​

Accumulated

(in thousands)

    

Amount

    

Amortization

    

Amount

    

Amortization

Customer-related (15 ― 25 year life)

​

$

144,322

​

$

(96,435)

​

$

147,169

​

$

(86,512)

Contract-based (5 ― 7 year life)

​

 

—

​

 

—

​

 

37,730

​

 

(36,856)

Intangible assets

​

$

144,322

​

$

(96,435)

​

$

184,899

​

$

(123,368)

​

Amortization expense of these intangible assets totaled $11.3 million, $15.6 million and $15.3 million during the years ended December 31, 2021, 2020 and 2019, respectively.

Estimated future intangible assets amortization expense as of December 31, 2021 was as follows:

​

​

​

​

​

(in thousands)

    

​

​

2022

​

$

8,913

2023

​

 

7,060

2024

​

 

5,895

2025

​

 

3,763

2026

​

 

3,179

Thereafter

​

 

19,077

Total

​

$

47,887

​
v3.22.0.1
Contract Costs
 12 Months Ended
Dec. 31, 2021
Contract Costs  
Contract Costs

11. Contract Costs

We capitalize incremental costs to obtain a contract with a customer if we expect to recover those costs. Capitalized costs include commissions paid to our sales force to obtain contract operations contracts. We expense commissions paid for sales of service contracts and OTC parts and components within our aftermarket services segment, as the amortization period is less than one year. We had contract costs of $2.6 million and $3.2 million associated with sales commissions recorded in our consolidated balance sheets at December 31, 2021 and 2020, respectively.

We capitalize costs incurred to fulfill a contract if those costs relate directly to a contract, enhance resources that we will use in satisfying performance obligations and if we expect to recover those costs. Capitalized costs incurred to fulfill our customer contracts include freight charges to transport compression assets before transferring services to the customer and mobilization activities associated with our contract operations services. Aftermarket services fulfillment costs are recognized based on the percentage-of-completion method applicable to the customer contract and do not typically result in the recognition of contract costs. We had contract costs of $22.8 million and $26.0 million associated with freight and mobilization recorded in our consolidated balance sheets at December 31, 2021 and 2020, respectively.

Contract operations obtainment and fulfillment costs are amortized based on the transfer of service to which the assets relate, which is estimated to be 38 months based on average contract term, including anticipated renewals. We assess periodically whether the 38-month estimate fairly represents the average contract term and adjust as appropriate. Contract costs associated with commissions are amortized to SG&A. Contract costs associated with freight and mobilization are amortized to cost of sales (excluding depreciation and amortization). During the years ended December 31, 2021, 2020 and 2019, we amortized $2.2 million, $3.0 million and $2.6 million, respectively, related to sales commissions and $17.8 million, $23.6 million and $20.7 million, respectively, related to freight and mobilization.
v3.22.0.1
Hosting Arrangements
 12 Months Ended
Dec. 31, 2021
Hosting Arrangements  
Hosting Arrangements

12. Hosting Arrangements

In the fourth quarter of 2018, we began a process and technology transformation project that has, among other things, replaced our existing ERP, supply chain and inventory management systems and expanded the remote monitoring capabilities of our compression fleet. Included in this project are hosting arrangements that are service contracts related to the cloud migration of our ERP system and cloud services for our new mobile workforce, telematics and inventory management tools.

As of December 31, 2021 and 2020, we had $12.7 million and $7.7 million, respectively, of capitalized implementation costs related to our hosting arrangements that are service contracts included in other assets in our consolidated balance sheets. Accumulated amortization was $0.7 million and $0.3 million at December 31, 2021 and 2020, respectively. We recorded $0.3 million of amortization expense to SG&A in our consolidated statements of operations during each of the years ended December 31, 2021 and 2020.

During the year ended December 31, 2020, we impaired $1.6 million of capitalized implementation costs related to the hosting arrangements of the mobile workforce component of our project due to the termination of the agreement, which was included in long-lived and other asset impairment in our consolidated statements of operations.
v3.22.0.1
Accrued Liabilities
 12 Months Ended
Dec. 31, 2021
Accrued Liabilities  
Accrued Liabilities

13. Accrued Liabilities

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

    

2021

    

2020

Accrued salaries and other benefits

​

$

20,891

​

$

16,332

Accrued income and other taxes

​

 

9,957

​

 

11,414

Accrued interest

​

 

22,368

​

 

22,693

Derivative liability - current

​

 

1,250

​

 

4,809

Other accrued liabilities

​

 

28,051

​

 

21,745

Accrued liabilities

​

$

82,517

​

$

76,993

​
v3.22.0.1
Long-Term Debt
 12 Months Ended
Dec. 31, 2021
Long-Term Debt  
Long-Term Debt

14. Long-Term Debt

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

    

2021

​

2020

Credit Facility

​

$

234,500

​

$

393,000

​

​

​

​

​

​

​

2028 Notes

​

​

​

​

​

​

Principal

​

 

800,000

​

 

800,000

Debt premium, net of amortization

​

​

12,536

​

 

14,541

Deferred financing costs, net of amortization

​

 

(10,406)

​

 

(11,766)

​

​

 

802,130

​

 

802,775

​

​

​

​

​

​

​

2027 Notes

​

​

​

​

​

​

Principal

​

​

500,000

​

 

500,000

Deferred financing costs, net of amortization

​

​

(5,805)

​

 

(6,908)

​

​

​

494,195

​

 

493,092

​

​

​

​

​

​

​

Long-term debt

​

$

1,530,825

​

$

1,688,867

​

Credit Facility

As of December 31, 2021, there were $8.9 million letters of credit outstanding under the Credit Facility and the applicable margin on borrowings outstanding was 2.4%. The weighted average annual interest rate on the outstanding balance under the Credit Facility, excluding the effect of interest rate swaps, was 2.6% and 2.7% at December 31, 2021 and 2020, respectively. As a result of the facility’s ratio requirements (see below), $502.5 million of the $506.6 million of undrawn capacity was available for additional borrowings as of December 31, 2021. We were in compliance with all other covenants under our Credit Facility agreement.

Amendments to the Credit Facility

Amendment No. 3

In February 2021, we amended our Credit Facility to, among other things, reduce the aggregate revolving commitment from $1.25 billion to $750.0 million and adjust the maximum Senior Secured Debt to EBITDA and Total Debt to EBITDA ratios, as defined in the Credit Facility agreement, to those listed in the table below.

We incurred $1.8 million in transaction costs related to Amendment No. 3, which were included in other assets in our consolidated balance sheets and are being amortized over the remaining term of the Credit Facility. In addition, we wrote off $4.9 million of unamortized deferred financing costs as a result of the amendment, which was recorded to interest expense in our consolidated statements of operations during the year ended December 31, 2021.

Amendment No. 2

In November 2019, we amended the Credit Facility to, among other things, extend the maturity date of the Credit Facility from March 30, 2022 to November 8, 2024 and change the applicable margin for borrowings to those discussed in “Other Facility Terms” below.

We incurred $6.4 million in transaction costs related to Amendment No. 2, which were included in other assets in our consolidated balance sheets and are being amortized over the remaining term of the Credit Facility.

Other Facility Terms

Subject to certain conditions, including approval by the lenders, we are able to increase the aggregate commitments under the Credit Facility by up to an additional $250.0 million. Portions of the Credit Facility up to $50.0 million are available for the issuance of swing line loans and $50.0 million is available for the issuance of letters of credit.

The Credit Facility bears interest at a base rate or LIBOR, at our option, plus an applicable margin. Depending on our leverage ratio, the applicable margin varies (i) in the case of LIBOR loans, from 2.00% to 2.75% and (ii) in the case of base rate loans, from 1.00% to 1.75%. The base rate is the highest of (i) the prime rate announced by JPMorgan Chase Bank, (ii) the Federal Funds Effective Rate plus 0.50% and (iii) one-month LIBOR plus 1.00%.

Additionally, we are required to pay commitment fees based on the daily unused amount of the Credit Facility at a rate of 0.375%. We incurred $2.0 million, $2.0 million and $1.9 million in commitment fees during the years ended December 31, 2021, 2020 and 2019, respectively.

The Credit Facility borrowing base consists of eligible accounts receivable, inventory and compressors, the largest of which is compressors. Borrowings under the Credit Facility are secured by substantially all of our personal property assets and our Significant Domestic Subsidiaries (as defined in the Credit Facility agreement), including all of the membership interests of our Domestic Subsidiaries (as defined in the Credit Facility agreement).

The Credit Facility agreement contains various covenants including, but not limited to, restrictions on the use of proceeds from borrowings and limitations on our ability to incur additional indebtedness, engage in transactions with affiliates, merge or consolidate, sell assets, make certain investments and acquisitions, make loans, grant liens, repurchase equity and pay distributions. The Credit Facility agreement also contains various covenants requiring mandatory prepayments from the net cash proceeds of certain asset transfers.

As of December 31, 2021, the following consolidated financial ratios, as defined in our Credit Facility agreement, were required:

​

​

​

​

EBITDA to Interest Expense

    

2.5 to 1.0

Senior Secured Debt to EBITDA

 

3.0 to 1.0

Total Debt to EBITDA

 

  

Through fiscal year 2022

​

5.75 to 1.0

January 1, 2023 through September 30, 2023

 

5.50 to 1.0

Thereafter (1)

 

5.25 to 1.0

(1)Subject to a temporary increase to 5.50 to 1.0 for any quarter during which an acquisition satisfying certain thresholds is completed and for the two quarters immediately following such quarter.

2028 Notes and 2027 Notes

In December 2020, we completed a private offering of $300.0 million aggregate principal amount of 6.25% senior notes due April 2028, which were issued pursuant to the indenture under which we completed a private offering of $500.0 million aggregate principal amount of 6.25% senior notes in December 2019. The notes of the two offerings have identical terms and are treated as a single class of securities. The $300.0 million of notes were issued at 104.875% of their face value and have an effective interest rate of 5.6%. The $500.0 million of notes were issued at 100% of their face value and have an effective interest rate of 6.8%. We received net proceeds of $309.9 million, after deducting issuance costs of $4.7 million, from our December 2020 offering and net proceeds of $491.8 million, after deducting issuance costs of $8.2 million, from our December 2019 offering.

In March 2019, we completed a private offering of $500.0 million aggregate principal amount of 6.875% senior notes due April 2027 and received net proceeds of $491.2 million after deducting issuance costs of $8.8 million. The $500.0 million of notes were issued at 100% of their face value and have an effective interest rate of 7.9%.

The net proceeds from the 2027 Notes and 2028 Notes were used to repay borrowings outstanding under our Credit Facility. Issuance costs related to the 2027 Notes and 2028 Notes are considered deferred financing costs, and together with the issue premium of the December 2020 offering of 2028 Notes, are recorded within long-term debt in our consolidated balance sheets and are being amortized to interest expense in our consolidated statements of operations over the terms of the notes.

The 2027 Notes and 2028 Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by us and all of our existing subsidiaries, other than Archrock Partners, L.P. and Archrock Partners Finance Corp., which are co-issuers of both offerings, and certain of our future subsidiaries. The 2027 Notes and 2028 Notes and the guarantees rank equally in right of payment with all of our and the guarantors’ existing and future senior indebtedness.

The 2027 Notes and 2028 Notes may be redeemed at any time, in whole or in part, at specified redemption prices and make-whole premiums, plus any accrued and unpaid interest.

2022 Notes

In April 2020, the 2022 Notes were redeemed at 100% of their $350.0 million aggregate principal amount plus accrued and unpaid interest of $10.5 million with borrowings under the Credit Facility. A debt extinguishment loss of $4.0 million related to the redemption was recognized during the year ended December 31, 2020.

2021 Notes

In April 2019, the 2021 Notes were redeemed at 100% of their $350.0 million aggregate principal amount plus accrued and unpaid interest of $0.2 million with borrowings under the Credit Facility. We recorded a debt extinguishment loss of $3.7 million related to the redemption during the year ended December 31, 2019.

Long-Term Debt Maturity

Contractual maturities of long-term debt over the next five years, excluding interest to be accrued, as of December 31, 2021, were as follows:

​

​

​

​

​

(in thousands)

    

​

​

2022

​

$

—

2023

​

 

—

2024

​

 

234,500

2025

​

 

—

2026

​

 

—

Long-term debt maturities through 2026

​

$

234,500

​
v3.22.0.1
Accumulated Other Comprehensive Loss
 12 Months Ended
Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss).  
Accumulated Other Comprehensive Income (Loss)

15. Accumulated Other Comprehensive Income (Loss)

Components of comprehensive income (loss) are net income (loss) and all changes in equity during a period except those resulting from transactions with owners. Our accumulated other comprehensive income (loss) consists of changes in the fair value of our interest rate swap derivative instruments, net of tax.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Beginning accumulated other comprehensive income (loss)

​

$

(5,006)

​

$

(1,387)

​

$

5,773

Other comprehensive income (loss), net of tax:

​

​

​

​

​

​

​

​

​

Loss recognized in other comprehensive income (loss), net of tax benefit of $257, $1,776 and $1,425, respectively

​

 

(962)

​

 

(6,683)

​

 

(5,360)

(Gain) loss reclassified from accumulated other comprehensive income (loss) to interest expense, net of tax provision (benefit) of $(1,324), $(814) and $478, respectively

​

 

4,984

​

 

3,064

​

 

(1,800)

Total other comprehensive income (loss)

​

 

4,022

​

 

(3,619)

​

 

(7,160)

Ending accumulated other comprehensive loss

​

$

(984)

​

$

(5,006)

​

$

(1,387)

​

See Note 22 (“Derivatives”) for further details on our interest rate swap derivative instruments.
v3.22.0.1
Equity
 12 Months Ended
Dec. 31, 2021
Equity  
Equity

16. Equity

At-the-Market Continuous Equity Offering Program

In February 2021, we entered into the ATM Agreement, pursuant to which we may offer and sell shares of our common stock from time to time for an aggregate offering price of up to $50.0 million. We use the net proceeds of these offerings, after deducting sales agent fees and offering expenses, for general corporate purposes. Offerings of common stock pursuant to the ATM Agreement will terminate upon the earlier of (i) the sale of all shares of common stock subject to the ATM Agreement or (ii) the termination of the ATM Agreement by us or by each of the sales agents. Any sales agent may also terminate the ATM Agreement but only with respect to itself.

During the year ended December 31, 2021, we sold 357,148 shares of common stock for net proceeds of $3.4 million pursuant to the ATM Agreement.

Elite Acquisition

In August 2019, we completed the Elite Acquisition. A portion of the acquisition’s purchase price was funded through the issuance of 21.7 million shares of common stock with an acquisition date fair value of $225.9 million, which was recorded to common stock and additional paid-in capital in our consolidated statements of equity. See Note 4 (“Business Transactions”) for further details of this acquisition.

Cash Dividends

The following table summarizes our dividends declared and paid in each of the quarterly periods of 2021, 2020 and 2019:

​

​

​

​

​

​

​

​

​

    

Declared Dividends

    

Dividends Paid

​

    

per Common Share

    

(in thousands)

2021

​

 

  

​

 

  

Q4

​

$

0.145

​

$

22,351

Q3

​

​

0.145

​

​

22,506

Q2

​

​

0.145

​

​

22,331

Q1

​

​

0.145

​

​

22,155

​

​

​

​

​

​

​

2020

 

​

  

 

​

  

Q4

​

$

0.145

​

$

22,177

Q3

​

 

0.145

​

 

22,308

Q2

​

 

0.145

​

 

22,176

Q1

​

 

0.145

​

 

22,171

​

​

​

​

​

​

​

2019

 

​

  

 

​

  

Q4

​

$

0.145

​

$

22,031

Q3

​

 

0.145

​

 

22,062

Q2

​

 

0.132

​

 

17,206

Q1

​

 

0.132

​

 

17,231

​

On January 27, 2022, our Board of Directors declared a quarterly dividend of $0.145 per share of common stock, or approximately $22.6 million, which was paid on February 15, 2022 to stockholders of record at the close of business on February 8, 2022.
v3.22.0.1
Revenue from Contract with Customers
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer  
Revenue from Contracts with Customers

17. Revenue from Contracts with Customers

The following table presents our revenue from contracts with customers by segment (see Note 22 (“Segments”)) and disaggregated by revenue source:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Contract operations:

​

​

  

​

​

  

​

​

  

0 ― 1,000 horsepower per unit

​

$

175,457

​

$

224,702

​

$

259,985

1,001 ― 1,500 horsepower per unit

​

 

267,191

​

 

305,185

​

 

316,082

Over 1,500 horsepower per unit

​

 

204,893

​

 

206,749

​

 

191,510

Other (1)

​

 

770

​

 

2,282

​

 

3,962

Total contract operations revenue (2)

​

 

648,311

​

 

738,918

​

 

771,539

​

​

​

​

​

​

​

​

​

​

Aftermarket services:

​

 

  

​

 

  

​

 

  

Services (3)

​

 

69,876

​

 

79,012

​

 

122,076

OTC parts and components sales

​

 

63,274

​

 

57,040

​

 

71,870

Total aftermarket services revenue (4)

​

 

133,150

​

 

136,052

​

 

193,946

​

​

​

​

​

​

​

​

​

​

Total revenue

​

$

781,461

​

$

874,970

​

$

965,485

(1)Primarily relates to fees associated with owned non-compression equipment.
(2)Includes $4.0 million, $5.6 million and $7.9 million during the years ended December 31, 2021, 2020 and 2019, respectively, related to billable maintenance on owned compressors that was recognized at a point in time. All other contract operations revenue is recognized over time.
(3)Includes a reversal of $0.9 million of revenue during the year ended December 31, 2019 related to changes in estimates of performance obligations partially satisfied in prior periods.
(4)Services revenue within aftermarket services is recognized over time. OTC parts and components sales revenue is recognized at a point in time.

Performance Obligations

As of December 31, 2021, we had $264.6 million of remaining performance obligations related to our contract operations segment, which will be recognized through 2026 as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(in thousands)

    

2022

    

2023

    

2024

    

2025

    

2026

    

Total

Remaining performance obligations

​

$

209,241

​

$

42,367

​

$

11,747

​

$

771

​

$

471

​

$

264,597

​

We do not disclose the aggregate transaction price for the remaining performance obligations for aftermarket services as there are no contracts with customers with an original contract term that is greater than one year.

Contract Assets and Liabilities

Contract Assets

As of December 31, 2021 and 2020, our receivables from contracts with customers, net of allowance for credit losses, were $84.7 million and $95.6 million, respectively.

Contract Liabilities

Freight billings to customers for the transport of compression assets, customer-specified modifications of compression assets and milestone billings on aftermarket services often result in a contract liability. Our contract liabilities were $4.4 million and $4.6 million as of December 31, 2021 and 2020, respectively, and were included in deferred revenue and other liabilities in our consolidated balance sheets. During the year ended December 31, 2021, we deferred revenue of $10.2 million and recognized $10.4 million as revenue. The revenue recognized and deferred during the period primarily related to freight billings and milestone billings on aftermarket services.
v3.22.0.1
Long-Lived and Other Asset Impairment
 12 Months Ended
Dec. 31, 2021
Long-Lived and Other Asset Impairment  
Long-Lived and Other Asset Impairment

18. Long-Lived and Other Asset Impairment

We review long-lived assets, including property, plant and equipment and identifiable intangibles that are being amortized, for impairment whenever events or changes in circumstances, including the removal of compressors from our active fleet, indicate that the carrying amount of an asset may not be recoverable.

In the first quarter of 2020, we determined that the impairment of our contract operations reporting unit’s goodwill was an indicator of potential impairment of the carrying amount of our long-lived assets, including our compressor fleet and associated customer and contract-based intangible assets. Accordingly, we performed a quantitative impairment test of our long-lived assets, by which we determined that they were not also impaired. No similar impairment has been indicated subsequent to the first quarter of 2020.

Compression Fleet

We periodically review the future deployment of our idle compression assets for units that are not of the type, configuration, condition, make or model that are cost efficient to maintain and operate. Based on these reviews, we determine that certain idle compressors should be retired from the active fleet. The retirement of these units from the active fleet triggers a review of these assets for impairment and as a result of our review, we may record an asset impairment to reduce the book value of each unit to its estimated fair value. The fair value of each unit is estimated based on the expected net sale proceeds compared to other fleet units we recently sold, a review of other units recently offered for sale by third parties or the estimated component value of the equipment we plan to use.

In connection with our review of our idle compression assets, we evaluate for impairment idle units that were culled from our fleet in prior years and are available for sale. Based on that review, we may reduce the expected proceeds from disposition and record additional impairment to reduce the book value of each unit to its estimated fair value.

The following table presents the results of our compression fleet impairment review as recorded to our contract operations segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(dollars in thousands)

​

2021

    

2020

    

2019

Idle compressors retired from the active fleet

​

​

230

 

​

730

 

​

975

Horsepower of idle compressors retired from the active fleet

 

​

85,000

 

​

261,000

 

​

170,000

Impairment recorded on idle compressors retired from the active fleet

​

$

21,208

​

$

77,590

​

$

44,663

​

Other Impairment

During the year ended December 31, 2020, $1.7 million of capitalized implementation and unamortized prepaid costs related to the mobile workforce component of our process and technology transformation project was impaired. See Note 12 (“Hosting Arrangements”) for further details.
v3.22.0.1
Restructuring Charges
 12 Months Ended
Dec. 31, 2021
Restructuring Charges  
Restructuring Charges

19. Restructuring Charges

During the first quarter of 2020, we completed restructuring activities to further streamline our organization and more fully align our teams to improve our customer service and profitability. We incurred severance costs of $1.7 million related to these activities during the first quarter of 2020. No additional costs will be incurred for this organizational restructuring.

In response to the decreased activity level of our customers that resulted from the COVID-19 pandemic beginning in the second quarter of 2020, we incurred severance costs of $7.0 million to right-size our business. No additional costs will be incurred under this restructuring plan.

During the third quarter of 2020, a plan to dispose of certain non-core properties was approved by management. We have incurred $1.5 million of costs as a result of these property disposals. No additional costs will be incurred under this restructuring plan.

During the third quarter of 2021, management approved and initiated a plan to exit a facility no longer deemed economical for our business, and in the fourth quarter, we incurred $0.9 million of costs to complete the exit of this facility. We do not expect to incur additional material costs under this restructuring plan.

The severance and property disposal costs incurred under the above restructuring plans were recorded to restructuring charges in our consolidated statements of operations.

The following table presents the changes to our accrued liability balance related to restructuring charges during the year ended December 31, 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

2021

​

​

​

​

​

​

Pandemic

​

Property

​

Property

​

Other

​

​

​

(in thousands)

​

Restructuring

​

Restructuring

​

Restructuring

​

Restructuring

​

Total

Balance at December 31, 2020

    

$

201

    

$

—

    

$

—

    

$

—

    

$

201

Charges incurred

​

 

1,717

​

 

35

​

 

929

​

 

222

​

 

2,903

Payments

​

​

(1,918)

​

​

(35)

​

​

(929)

​

​

(222)

​

​

(3,104)

Balance at December 31, 2021

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

The following table presents restructuring charges incurred by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Contract

​

Aftermarket

​

​

​

​

​

​

(in thousands)

​

Operations

​

Services

​

Other (1)

​

Total

Year ended December 31, 2021

​

​

​

​

​

​

​

​

​

​

​

​

Pandemic restructuring

​

$

616

​

$

145

​

$

956

​

$

1,717

2020 Property restructuring - other exit costs

​

​

—

​

​

—

​

​

35

​

​

35

2021 Property restructuring - other exit costs

​

​

929

​

​

—

​

​

—

​

​

929

Other restructuring

​

​

—

​

​

—

​

​

222

​

​

222

Total restructuring charges

​

$

1,545

​

$

145

​

$

1,213

​

$

2,903

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended December 31, 2020

​

​

​

​

​

​

​

​

​

​

​

​

Organizational restructuring

​

$

458

​

$

625

​

$

612

​

$

1,695

Pandemic restructuring

​

​

2,505

​

​

1,218

​

​

1,534

​

​

5,257

2020 Property restructuring

​

​

​

​

​

​

​

​

​

​

​

​

Loss on sale

​

​

—

​

​

—

​

​

915

​

​

915

Impairment loss

​

​

—

​

​

—

​

​

583

​

​

583

Total 2020 Property restructuring

​

​

—

​

​

—

​

​

1,498

​

​

1,498

Total restructuring charges

​

$

2,963

​

$

1,843

​

$

3,644

​

$

8,450

(1)Represents expense incurred within our corporate function and not directly attributable to our segments.

The following table presents restructuring charges incurred by cost type:

​

​

​

​

​

​

​

​

​

​

Years Ended December 31,

(in thousands)

​

2021

    

2020

Severance costs

​

​

​

​

​

​

Organizational restructuring

​

$

—

​

$

1,695

Pandemic restructuring

​

​

1,717

​

​

5,257

Total severance costs

​

​

1,717

​

​

6,952

Property disposal costs

​

​

​

​

​

​

Loss on sale

​

​

—

​

​

915

Impairment loss

​

​

—

​

​

583

Other exit costs

​

​

964

​

​

—

Total property disposal costs

 

​

964

 

​

1,498

Other restructuring costs

​

​

222

​

​

—

Total restructuring charges

​

$

2,903

​

$

8,450

​
v3.22.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Taxes  
Income Taxes

20. Income Taxes

Current and Deferred Tax Provision

Our provision for (benefit from) income taxes consisted of the following:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

    

2021

    

2020

    

2019

Current tax provision (benefit):

​

​

​

​

​

​

​

​

​

U.S. federal

​

$

(1)

​

$

(99)

​

$

75

State

​

 

366

​

 

326

​

 

377

Total current

​

​

365

​

​

227

​

​

452

Deferred tax provision (benefit):

​

​

  

​

​

  

​

​

  

U.S. federal

​

​

8,800

​

​

(17,246)

​

​

(35,597)

State

​

 

1,579

​

 

(518)

​

 

(4,000)

Total deferred

​

​

10,379

​

​

(17,764)

​

​

(39,597)

Provision for (benefit from) income taxes

​

$

10,744

​

$

(17,537)

​

$

(39,145)

​

The provision for (benefit from) income taxes for the years ended December 31, 2021, 2020 and 2019 resulted in effective tax rates on continuing operations of 28%, 20% and (67)%, respectively. The following table reconciles these effective tax rates to the U.S. statutory rate of 21%, the rate in effect during the years ended December 31, 2021, 2020 and 2019:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Income taxes at U.S. federal statutory rate

    

$

8,182

    

$

(18,056)

    

$

12,276

Net state income taxes

​

 

1,374

​

 

(817)

​

 

1,634

Tax credits

​

 

(720)

​

 

(1,256)

​

 

(1,757)

Unrecognized tax benefits (1)

​

 

598

​

 

772

​

 

(1,958)

Valuation allowances and write off of tax attributes (2)

​

 

(167)

​

 

236

​

 

(50,219)

Executive compensation limitation

​

 

1,559

​

 

1,159

​

 

1,102

Stock

​

 

162

​

 

538

​

 

66

Other

​

 

(244)

​

 

(113)

​

 

(289)

Provision for (benefit from) income taxes

​

$

10,744

​

$

(17,537)

​

$

(39,145)

(1)Includes the expiration of statute of limitations and in 2019, also reflects a decrease in our uncertain tax benefit, net of federal benefit, due to settlements of tax audits. See “Unrecognized Tax Benefits” below for further details.
(2)See “Tax Attributes and Valuation Allowances” below for further details.

Deferred income tax balances are the direct effect of temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the taxes are actually paid or recovered. The tax effects of temporary differences that gave rise to deferred tax assets and deferred tax liabilities were as follows:

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

​

2020

Deferred tax assets:

    

​

  

    

​

  

Net operating loss carryforwards

​

$

196,654

​

$

158,916

Accrued liabilities

​

 

4,527

​

 

3,133

Other

​

 

12,503

​

 

12,124

​

​

 

213,684

​

 

174,173

Valuation allowances (1)

​

 

(735)

​

 

(1,027)

Total deferred tax assets

​

​

212,949

​

​

173,146

​

​

​

​

​

​

​

Deferred tax liabilities:

​

 

  

​

 

  

Property, plant and equipment

​

​

(7,762)

​

​

(6,066)

Basis difference in the Partnership

​

 

(151,469)

​

 

(103,721)

Other

​

 

(6,975)

​

 

(7,150)

Total deferred tax liabilities

​

 

(166,206)

​

 

(116,937)

Net deferred tax asset (2)

​

$

46,743

​

$

56,209

(1)See “Tax Attributes and Valuation Allowances” below for further details.
(2)The 2021 and 2020 net deferred tax assets are reflected in our consolidated balance sheets as deferred tax assets of $47.9 million and $56.9 million, respectively, and deferred tax liabilities of $1.1 million and $0.7 million, respectively.

Both the 2021 and 2020 balances are based on a U.S. federal tax rate of 21%.

Tax Attributes and Valuation Allowances

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Balance at beginning of period (1)

      

$

(1,027)

      

$

(822)

      

$

(45,439)

Additions to valuation allowance

​

​

-

​

​

(205)

​

​

(580)

Reductions to valuation allowance (1)

​

​

292

​

​

-

​

​

45,197

Balance at end of period

​

$

(735)

​

$

(1,027)

​

$

(822)

(1)In 2019, excludes $5.6 million related to discontinued operations.

Pursuant to Sections 382 and 383 of the Code, utilization of loss and credit carryforwards are subject to annual limitations due to any ownership changes of 5% stockholders. In general, an ownership change, as defined by Section 382, results from transactions increasing the ownership of certain stockholders or public groups in the stock of a corporation by more than 50% over a rolling three-year period. We do not currently expect that any loss carryforwards or credit carryforwards will expire as a result of any 382 or 383 limitations. Our ability to utilize loss carryforwards and credit carryforwards against future U.S. federal taxable income and future U.S. federal income tax may be limited in the future if we have a 50% or more ownership change in our 5% stockholders.

We record valuation allowances when it is more likely than not that some portion or all of our deferred tax assets will not be realized. The ultimate realization of the deferred tax assets depends on the ability to generate sufficient taxable income of the appropriate character and in the appropriate taxing jurisdictions in the future. If we do not meet our expectations with respect to taxable income, we may not realize the full benefit from our deferred tax assets, which would require us to record a valuation allowance in our tax provision in future years. As of each reporting date, we consider new evidence to evaluate the realizability of our net deferred tax asset position by assessing the available positive and negative evidence. Changes to the valuation allowance are reflected in the statement of operations.

As of December 31, 2019, we achieved a three-year cumulative book income, and together with other positive and negative evidence, we concluded that there was sufficient positive evidence of projected future taxable income to release the $50.8 million valuation allowance previously required for our overall net deferred tax asset position. This release was offset by a $0.6 million increase in the valuation allowance on our state NOL deferred tax asset. The overall impact of the change in the valuation allowance was recorded as a $50.2 million benefit from income taxes in our consolidated statements of operations and a $50.2 million increase in deferred tax assets in our consolidated balance sheets, of which $44.6 million and $5.6 million were recorded to continuing operations and discontinued operations, respectively.

The amount of our deferred tax assets considered realizable could be adjusted if projections of future taxable income are reduced or objective negative evidence in the form of a three-year cumulative loss is present or both. Should we no longer have a level of sustained profitability, excluding nonrecurring charges, we will have to rely more on our future projections of taxable income to determine if we have an adequate source of taxable income for the realization of our deferred tax assets, namely NOL carryforwards and tax credit carryforwards. This may result in the need to record a valuation allowance against all or a portion of our deferred tax assets.

At December 31, 2021, we had U.S. federal and state NOL carryforwards of $868.5 million and $317.1 million, respectively, included in our NOL deferred tax asset that are available to offset future taxable income. If not used, the federal and state NOL carryforwards will begin to expire in 2025 and 2022, respectively, though $629.5 million of the U.S. federal and $167.7 million of the state NOL carryforwards have no expiration date. In connection with the state NOL deferred tax asset, we recorded a valuation allowance of $0.7 million and $1.0 million as of December 31, 2021 and 2020, respectively.

At December 31, 2021, we had U.S. federal and state tax credit carryforwards of $3.0 million and $0.1 million, respectively. If not used, the federal and state tax credit carryforwards will begin to expire in 2037 and 2041, respectively.

Unrecognized Tax Benefits

A reconciliation of the unrecognized tax benefit (including discontinued operations) activity is shown below:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Beginning balance

    

$

18,892

    

$

18,453

    

$

19,560

Additions based on tax positions related to current year

​

 

2,246

​

 

2,397

​

 

2,227

Additions based on tax positions related to prior years

​

 

632

​

 

—

​

 

2,047

Reductions based on settlement refunds from government authorities

​

 

—

​

 

—

​

 

(4,414)

Reductions based on tax positions related to prior years

​

 

(138)

​

 

(73)

​

 

(51)

Reductions based on lapse of statute of limitations

​

 

(2,038)

​

 

(1,885)

​

 

(916)

Ending balance

​

$

19,594

​

$

18,892

​

$

18,453

​

We had $19.6 million, $18.9 million and $18.5 million of unrecognized tax benefits at December 31, 2021, 2020 and 2019, respectively, of which $2.1 million, $2.9 million and $3.2 million, respectively, would affect the effective tax rate if recognized and $7.9 million, $7.9 million and $8.3 million, respectively, would be reflected in income from discontinued operations, net of tax if recognized.

We recorded $2.2 million, $2.1 million and $2.1 million of potential interest expense and penalties related to unrecognized tax benefits associated with uncertain tax positions (including discontinued operations) in our consolidated balance sheets as of the years ended December 31, 2021, 2020 and 2019, respectively. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and reflected as reductions in income tax expense. We recorded $0.1 million of potential interest expense and penalties in our consolidated statements of operations during the year ended December 31, 2021, and releases of $0.1 million during each of the years ended December 31, 2020 and 2019.

Subject to the provisions of our tax matters agreement with Exterran Corporation, both parties agreed to indemnify the primary obligor of any return for tax periods beginning before and ending before or after the Spin-off (including any ongoing or future amendments and audits for these returns) for the portion of the tax liability (including interest and penalties) that relates to their respective operations reported in the filing. As of both December 31, 2021 and 2020, we recorded an indemnification asset (including penalties and interest) of $7.9 million, which is related to unrecognized tax benefits in our consolidated balance sheets.

We and our subsidiaries file consolidated and separate income tax returns in the U.S. federal jurisdiction and in numerous state jurisdictions. U.S. federal income tax returns are generally subject to examination for up to three years after filing the returns. Due to our NOL carryforwards, our U.S. federal income tax returns can be examined back to the inception of our NOL carryforwards; therefore, expanding our examination period beyond 20 years. In 2020, the IRS completed their examination of our 2014 and 2015 tax years. Due to this audit being related to tax periods that commenced prior to the Spin-off, Exterran Corporation was also involved in the audit. The tax adjustments recorded from this audit did not have a material impact on our consolidated financial position or results of operations.

State income tax returns are generally subject to examination for a period of three to five years after filing the returns. However, the state impact of any U.S. federal audit adjustments and amendments remains subject to examination by various states for up to one year after formal notification to the states. We are not currently involved in any state audits. During the year ended December 31, 2019, we settled certain state audits, which resulted in a refund of $2.4 million and a reduction in previously-accrued uncertain tax benefits of $4.4 million.

As of December 31, 2021, we believe it is reasonably possible that $2.6 million of our unrecognized tax benefits, including penalties, interest and discontinued operations, will be reduced prior to December 31, 2022 due to the settlement of audits or the expiration of statutes of limitations or both. However, due to the uncertain and complex application of the tax regulations, it is possible that the ultimate resolution of these matters may result in liabilities that could materially differ from this estimate.

CARES Act

In March 2020, President Trump signed into law the CARES Act, which includes, among other things, refundable payroll tax credits, deferment of employer-side social security payments, NOL carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The CARES Act provisions did not have a material impact on our consolidated financial statements. Future regulatory guidance under the CARES Act or additional legislation enacted by Congress in connection with the COVID-19 pandemic could impact our tax provision in future periods.
v3.22.0.1
Earnings Per Share
 12 Months Ended
Dec. 31, 2021
Earnings Per Share  
Earnings Per Share

21. Earnings per Share

Basic net income (loss) per common share is computed using the two-class method, which is an earnings allocation formula that determines net income (loss) per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Under the two-class method, basic net income (loss) per common share is determined by dividing net income (loss), after deducting amounts allocated to participating securities, by the weighted average number of common shares outstanding for the period. Participating securities include unvested restricted stock and stock-settled restricted stock units that have nonforfeitable rights to receive dividends or dividend equivalents, whether paid or unpaid. During periods of net loss, only distributed earnings (dividends) are allocated to participating securities, as participating securities do not have a contractual obligation to participate in our undistributed losses.

Diluted net income (loss) per common share is computed using the weighted average number of shares outstanding adjusted for the incremental common stock equivalents attributed to outstanding options, performance-based restricted stock units and stock to be issued pursuant to our ESPP unless their effect would be anti-dilutive.

The following table shows the calculation for net income (loss) attributable to common stockholders, which is used in the calculation of basic and diluted net income (loss) per common share:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Income (loss) from continuing operations

​

$

28,217

​

$

(68,445)

​

$

97,603

Loss from discontinued operations, net of tax

​

 

—

​

 

—

​

 

(273)

Net income (loss)

​

 

28,217

​

 

(68,445)

​

 

97,330

Less: Earnings attributable to participating securities

​

 

(1,172)

​

 

(1,338)

​

 

(1,348)

Net income (loss) attributable to common stockholders

​

$

27,045

​

$

(69,783)

​

$

95,982

​

The following table shows the potential shares of common stock that were included in computing diluted net income (loss) per common share:

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Weighted average common shares outstanding including participating securities

​

153,484

​

152,827

​

139,317

Less: Weighted average participating securities outstanding

​

(1,800)

 

(1,999)

 

(1,825)

Weighted average common shares outstanding used in basic net income (loss) per common share

 

151,684

 

150,828

 

137,492

Net dilutive potential common shares issuable:

 

  

 

  

 

  

On exercise of options and vesting of performance-based restricted stock units

 

144

 

—

 

34

On settlement of ESPP shares

 

2

 

—

 

2

Weighted average common shares outstanding used in diluted net income (loss) per common share

 

151,830

 

150,828

 

137,528

​

The following table shows the potential shares of common stock issuable that were excluded from computing diluted net income (loss) per common share as their inclusion would have been anti-dilutive:

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

On exercise of options where exercise price is greater than average market value for the period

​

31

 

96

 

154

On exercise of options and vesting of performance-based restricted stock units

​

—

​

54

​

—

On settlement of ESPP shares

​

—

​

17

​

—

Net dilutive potential common shares issuable

​

31

​

167

​

154

​
v3.22.0.1
Derivatives
 12 Months Ended
Dec. 31, 2021
Derivatives  
Derivatives

22. Derivatives

We use derivative instruments to manage our exposure to fluctuations in the variable interest rate of our Credit Facility. As of December 31, 2021, we had $300.0 million notional value of interest rate swaps outstanding, which expire in March 2022. We entered into these swaps to offset changes in expected cash flows due to fluctuations in the associated variable interest rates and designated them as cash flow hedges. The counterparties to these derivative agreements are major financial institutions. We monitor the credit quality of these financial institutions and do not expect nonperformance by any counterparty, although such nonperformance could have an adverse effect on us. We have no collateral posted for our derivative instruments.

During the year ended December 31, 2021, we dedesignated $125.0 million notional value of our interest rate swaps. The fair value of this interest rate swap immediately prior to dedesignation was a liability of $1.6 million. The associated amount in accumulated other comprehensive loss related to this interest rate swap is being amortized into interest expense over the remaining term of the swap through March 2022. Changes in the fair value of the dedesignated interest rate swap subsequent to dedesignation are recorded in interest expense.

The remaining $175.0 million notional value of our interest rate swaps continue to be designated as cash flow hedging instruments. We expect the hedging relationship to be highly effective as the interest rate swap terms substantially coincide with the hedged item and are expected to offset changes in expected cash flows due to fluctuations in the variable rate. We estimate that $1.2 million of the deferred pre-tax loss attributable to interest rate swaps included in accumulated other comprehensive loss at December 31, 2021 will be reclassified into earnings as interest expense at then-current values during the next 12 months as the underlying hedged transactions occur.

As of December 31, 2021, the weighted average effective fixed interest rate of our interest rate swaps was 1.8%.

The following table presents the effect of our derivative instruments on our consolidated balance sheets:

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

​

​

2020

Interest rate swaps designated as cash flow hedging instruments

​

​

​

​

​

​

Accrued liabilities

​

$

727

​

$

4,810

Other liabilities

​

 

—

​

 

1,527

Total derivatives designated as cash flow hedging instruments

​

​

727

​

​

6,337

​

​

​

​

​

​

​

Interest rate swaps not designated as hedging instruments

​

​

​

​

​

​

Accrued liabilities

​

​

523

​

​

—

​

​

​

​

​

​

​

Total derivative liabilities

​

$

1,250

​

$

6,337

​

The following table presents the effect of our derivative instruments on our consolidated statements of operations:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Total amount of interest expense in which the effects of cash flow hedges and undesignated interest rate swaps are recorded

​

$

108,135

​

$

105,716

​

$

104,681

​

​

​

​

​

​

​

​

​

​

Interest rate swaps designated as cash flow hedging instruments

​

​

​

​

​

​

​

​

​

Pre-tax loss recognized in other comprehensive income (loss)

​

$

(1,219)

​

$

(8,459)

​

$

(6,785)

Pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense

​

 

(6,308)

​

 

(3,878)

​

 

2,278

​

​

​

​

​

​

​

​

​

​

Interest rate swaps not designated as hedging instruments

​

​

​

​

​

​

​

​

​

Gain recognized in interest expense

​

$

1,088

​

$

—

​

$

—

​

See Note 2 (“Basis of Presentation and Significant Accounting Policies”), Note 15 (“Accumulated Other Comprehensive Income (Loss)”) and Note 23 (“Fair Value Measurements”) for further details on our derivative instruments.
v3.22.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2021
Fair Value Measurements  
Fair Value Measurements

23. Fair Value Measurements

The accounting standard for fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value into the following three categories:

• Level 1 — Quoted unadjusted prices for identical instruments in active markets to which we have access at the date of measurement.
• Level 2 — Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or prices vary substantially over time or among brokered market makers.
• Level 3 — Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect our own assumptions regarding how market participants would price the asset or liability based on the best available information.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

On a quarterly basis, our interest rate swap derivative instruments are valued based on the income approach (discounted cash flow) using market observable inputs, including LIBOR forward curves. These fair value measurements are classified as Level 2. The following table presents our derivative position measured at fair value on a recurring basis, with pricing levels as of the date of valuation:

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

​

2020

Derivative liabilities

​

$

1,250

​

$

6,337

​

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Goodwill

In the first quarter of 2020, we determined that the significant deterioration in global macroeconomic conditions caused by the COVID-19 pandemic was an indicator of potential impairment of our goodwill, and we performed a quantitative impairment test as of March 31, 2020 that resulted in a $99.8 million impairment of our goodwill. Significant estimates used in our impairment analysis included cash flow forecasts, our estimate of the market’s weighted average cost of capital and market multiples, which are Level 3 inputs. See Note 9 (“Goodwill”) for further details of the valuation methodology used in connection with the goodwill impairment.

Compressors

During the years ended December 31, 2021 and 2020, we recorded nonrecurring fair value measurements related to our idle compressors. Our estimate of the compressors’ fair value was primarily based on the expected net sale proceeds compared to other fleet units we recently sold and/or a review of other units recently offered for sale by third parties, or the estimated component value of the equipment we plan to use. We discounted the expected proceeds, net of selling and other carrying costs, using a weighted average disposal period of four years. These fair value measurements are classified as Level 3. The fair value of our compressors impaired during the years ended December 31, 2021 and 2020 was as follows:

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

    

2021

    

2020

Impaired compressors

​

$

4,380

​

$

19,046

​

The significant unobservable inputs used to develop the above fair value measurements were weighted by the relative fair value of the compressors being measured. Additional quantitative information related to our significant unobservable inputs follows:

​

​

​

​

​

​

​

    

Range

       

   Weighted Average (1)

Estimated net sale proceeds:

​

​

​

​

As of December 31, 2021

​

$0 - $621 per horsepower

​

$35 per horsepower

As of December 31, 2020

​

$0 - $289 per horsepower

​

$20 per horsepower

(1)Calculated based on an estimated discount for market liquidity of 64% and 81% as of December 31, 2021 and 2020, respectively.

See Note 18 (“Long-Lived and Other Asset Impairment”) for further details.

Other Financial Instruments

The carrying amounts of our cash, receivables and payables approximate fair value due to the short-term nature of those instruments.

The carrying amount of borrowings outstanding under our Credit Facility approximates fair value due to its variable interest rate. The fair value of these outstanding borrowings is a Level 3 measurement.

The fair value of our fixed rate debt is estimated using yields observable in active markets, which are Level 2 inputs, and was as follows:

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

​

2020

Carrying amount of fixed rate debt (1)

​

$

1,296,325

​

$

1,295,867

Fair value of fixed rate debt

​

 

1,361,000

​

 

1,371,000

(1)Carrying amounts are shown net of unamortized debt premium and deferred financing costs. See Note 14 (“Long-Term Debt”).

​
v3.22.0.1
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2021
Stock-Based Compensation  
Stock-Based Compensation

24. Stock-Based Compensation

We recognize stock-based compensation expense related to restricted stock awards, restricted stock units, performance-based restricted stock units and shares issued under our ESPP. We account for forfeitures as they occur.

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Equity award expense

​

$

11,336

​

$

10,551

​

$

8,105

Liability award (benefit) expense (1)

​

 

(816)

​

 

1,521

​

 

2,336

Total stock-based compensation expense

​

$

10,520

​

$

12,072

​

$

10,441

(1)In 2021, includes a reversal of prior period expense of $2.1 million during the fourth quarter as the result of revised estimates of performance achievement of our 2019 and 2020 cash-settled performance-based restricted stock units.

Stock Incentive Plans

The 2020 Plan was adopted in April 2020 and provides for the granting of stock options, restricted stock, restricted stock units, stock appreciation rights, performance awards, other stock-based awards and dividend equivalent rights to employees, directors and consultants of Archrock. The 2020 Plan is administered by the compensation committee of our Board of Directors. Under the 2020 Plan, the maximum number of shares of common stock available for issuance is 8,500,000. Each stock-settled award granted under the 2020 Plan reduces the number of shares available for issuance by one share. Cash-settled awards are not counted against the aggregate share limit. Shares subject to awards granted under the 2020 Plan that are subsequently canceled, terminated, settled in cash or forfeited, excluding shares withheld to satisfy tax withholding obligations or to pay the exercise price of an option, are available for future grant under the 2020 Plan. No additional grants may be made under the 2013 Plan following the adoption of the 2020 Plan. Previous grants made under the 2013 Plan continue to be governed by that plan and the applicable award agreements.

The 2020 Plan and 2013 Plan allow us to withhold shares upon vesting of restricted stock at the then-current market price to cover taxes required to be withheld on the vesting date. During the years ended December 31, 2021, 2020 and 2019, we withheld 283,972 shares valued at $2.5 million, 236,752 shares valued at $1.8 million and 212,080 shares valued at $2.0 million, respectively, to cover tax withholding.

The compensation committee of our Board of Directors generally establishes its schedule for making annual long-term incentive awards, consisting of a combination of restricted shares and performance units vesting over multiple years, several months in advance and does not make such awards based on knowledge of material nonpublic information. Although the compensation committee of our Board of Directors has historically granted awards on a regular, predictable cycle, such awards may be granted at other times during the year, as determined in the sole discretion of the compensation committee.

Restricted Stock

Our outstanding restricted stock generally consists of stock-settled restricted stock awards and performance-based restricted stock units, and cash-settled performance-based restricted stock units.

For grants of restricted stock, we recognize compensation expense over the vesting period equal to the fair value of our common stock at the grant date. Our restricted stock includes rights to receive dividends or dividend equivalents. We periodically remeasure the fair value of our cash-settled units and record a cumulative adjustment of the expense previously recognized. Our obligation related to the cash-settled units is reflected as a liability in our consolidated balance sheets. Restricted stock awards generally vest one-third per year, subject to continued service through the applicable vesting date. Performance-based restricted stock units generally vest in their entirety at the end of a three-year vesting period, also subject to continued service through the applicable vesting date.

Some of our performance-based restricted stock units have a market-based condition that determines the number of restricted stock units and dividend equivalents earned. The market condition is based on our total shareholder return ranked against that of a predetermined peer group over a three-year performance period. The awards vest in their entirety on the date specified in the award agreement following the conclusion of the performance period. The fair value of the performance-based restricted stock units, incorporating the market condition, is estimated on the grant date using a Monte Carlo simulation model. Expected volatilities for us and each peer company utilized in the model are estimated using a historical period consistent with the awards’ remaining performance period as of the grant date. The risk-free interest rate is based on the yield on U.S. Treasury Separate Trading of Registered Interest and Principal Securities for a term consistent with the remaining performance period. The dividend yield used is 0.0% to approximate accumulation of earnings.

The following table presents the inputs used and the grant date fair value calculated in the Monte Carlo simulation model for the performance-based restricted stock units awarded during the years ended December 31, 2021, 2020 and 2019:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

​

​

2021

​

2020

​

2019

​

Remaining performance period as of grant date (in years)

    

​

2.8

    

​

2.9

    

​

2.9

    

Risk-free interest rate used

 

​

0.3

%  

​

1.4

%  

​

2.6

%  

Grant-date fair value

​

$

14.30

​

$

11.33

​

$

12.91

​

​

The following table presents our restricted stock activity during the year ended December 31, 2021:

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

​

​

​

Average

​

​

​

​

Grant Date

​

​

Shares

​

Fair Value

​

    

(in thousands)

    

Per Share

Non-vested restricted stock, December 31, 2020

 

2,446

​

$

9.69

Granted (1)

 

1,288

​

 

11.20

Vested (2)

 

(1,075)

​

 

9.91

Canceled

 

(81)

​

 

9.85

Non-vested restricted stock, December 31, 2021 (3)

 

2,578

​

 

10.35

(1)The weighted average grant date fair value of shares granted during the years ended December 31, 2021, 2020 and 2019 was $11.20, $9.37 and $10.01, respectively.
(2)The total fair value of all awards vested during the years ended December 31, 2021, 2020 and 2019 was $9.1 million, $7.1 million and $9.0 million, respectively.
(3)Non-vested awards as of December 31, 2021 were comprised of 523 cash-settled units and 2,055 stock-settled awards and units.

As of December 31, 2021, we expect $12.6 million of unrecognized compensation cost related to our non-vested awards and units to be recognized over the weighted-average period of 1.8 years. Cash paid upon vesting of cash-settled restricted stock units during the years ended December 31, 2021, 2020 and 2019 was $0.6 million, $0.5 million and $1.3 million, respectively.

Employee Stock Purchase Plan

Adopted in 2017, our ESPP provides employees with an opportunity to participate in our long-term performance and success through the purchase of shares of common stock at a price that may be less than fair market value. Each quarter, eligible employees may elect to withhold a portion of their salary up to the lesser of $25,000 per year or 10% of their eligible pay to purchase shares of our common stock at a price equal to 85% to 100% of the fair market value of the stock as defined by the plan. The ESPP will terminate on the date that all shares of common stock authorized for sale under the ESPP have been purchased, unless it is extended. The maximum number of shares of common stock available for purchase under the ESPP is 1,000,000. As of December 31, 2021, 521,719 shares remained available for purchase under the ESPP. Our ESPP is compensatory and, as a result, we record an expense in our consolidated statements of operations related to the ESPP. The purchase discount under the ESPP is 5% of the fair market value of our common stock on the first or last trading day of the quarter, whichever is lower.

Directors’ Stock and Deferral Plan

Adopted in 2007, our DSDP provides non-employee members of the Board of Directors with an opportunity to elect to receive our common stock as payment for a portion or all of their retainer. The number of shares paid each quarter is determined by dividing the dollar amount of fees elected to be paid in common stock by the closing sales price per share of the common stock on the last day of the quarter. In addition, directors who elect to receive a portion or all of their fees in the form of common stock may also elect to defer, until a later date, the receipt of a portion or all of their fees to be received in common stock. There are 100,000 shares reserved under the DSDP and, as of December 31, 2021, 37,771 shares remained available to be issued under the plan.
v3.22.0.1
Retirement Benefit Plan
 12 Months Ended
Dec. 31, 2021
Retirement Benefit Plan  
Retirement Benefit Plan

25. Retirement Benefit Plan

Our 401(k) retirement plan provides for optional employee contributions up to the applicable IRS annual limit and discretionary employer matching contributions. We make discretionary matching contributions to each participant’s account at a rate of 100% of each participant’s contributions up to 5% of eligible compensation. We recorded matching contributions of $4.4 million, $5.6 million and $6.8 million during the years ended December 31, 2021, 2020 and 2019, respectively.
v3.22.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies  
Commitments and Contingencies

26. Commitments and Contingencies

Insurance

Our business can be hazardous, involving unforeseen circumstances such as uncontrollable flows of natural gas or well fluids and fires or explosions. As is customary in our industry, we review our safety equipment and procedures and carry insurance against some, but not all, risks of our business. Our insurance coverage includes property damage, general liability and commercial automobile liability and other coverage we believe is appropriate. We believe that our insurance coverage is customary for the industry and adequate for our business, however, losses and liabilities not covered by insurance would increase our costs.

Additionally, we are substantially self-insured for workers’ compensation and employee group health claims in view of the relatively high per-incident deductibles we absorb under our insurance arrangements for these risks. Losses up to the deductible amounts are estimated and accrued based upon known facts, historical trends and industry averages. We are also self-insured for property damage to our offshore assets.

Tax Matters

We are subject to a number of state and local taxes that are not income-based. As many of these taxes are subject to audit by the taxing authorities, it is possible that an audit could result in additional taxes due. We accrue for such additional taxes when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the liability. As of December 31, 2021 and 2020, we accrued $5.8 million and $5.6 million, respectively, for the outcomes of non-income-based tax audits. We do not expect that the ultimate resolutions of these audits will result in a material variance from the amounts accrued. We do not accrue for unasserted claims for tax audits unless we believe the assertion of a claim is probable, it is probable that it will be determined that the claim is owed and we can reasonably estimate the claim or range of the claim. We believe the likelihood is remote that the impact of potential unasserted claims from non-income-based tax audits could be material to our consolidated financial position, but it is possible that the resolution of future audits could be material to our consolidated results of operations or cash flows.

In 2021, one of our sales and use tax audits advanced from the audit review phase to the contested hearing phase. We accrued $0.6 million and $0.9 million for this audit as of December 31, 2021 and 2020, respectively.

In 2020, we settled a certain sales and use tax audit for which we recorded a $12.4 million net benefit in our consolidated statements of operations. This net benefit was primarily reflected as decreases of $4.4 million and $7.9 million to cost of sales (excluding depreciation and amortization) and SG&A, respectively. We received a cash refund of $17.3 million in the fourth quarter of 2020 related to this settlement and have a $2.0 million accrued liability recorded as of December 31, 2021, which is included in our accrual for non-income-based tax audits discussed above.

Subject to the provisions of the tax matters agreement between Exterran Corporation and us, both parties agreed to indemnify the primary obligor of any return for tax periods beginning before and ending before or after the Spin-off (including any ongoing or future amendments and audits for these returns) for the portion of the tax liability (including interest and penalties) that relates to their respective operations reported in the filing. The tax contingencies mentioned above relate to tax matters for which we are responsible in managing the audit. As of December 31, 2020, we had an indemnification liability (including penalties and interest), in addition to the tax contingency above, of $1.6 million for our share of non-income-based tax contingencies related to audits being managed by Exterran Corporation. During the year ended December 31, 2021, these audits were settled and our indemnification liability was reduced to zero.

Litigation and Claims

In the ordinary course of business, we are involved in various pending or threatened legal actions. While we are unable to predict the ultimate outcome of these actions, we believe that any ultimate liability arising from any of these actions will not have a material adverse effect on our consolidated financial position, results of operations or cash flows, including our ability to pay dividends. However, because of the inherent uncertainty of litigation and arbitration proceedings, we cannot provide assurance that the resolution of any particular claim or proceeding to which we are a party will not have a material adverse effect on our consolidated financial position, results of operations or cash flows, including our ability to pay dividends.
v3.22.0.1
Related Party Transactions
 12 Months Ended
Dec. 31, 2021
Related Party Transactions  
Related Party Transactions

27. Related Party Transactions

In connection with the closing of the Elite Acquisition, we issued 21.7 million shares of our common stock to JDH Capital, an affiliate of our customer Hilcorp. As long as JDH Capital, together with affiliates of Hilcorp, owns at least 7.5% of our outstanding common stock, it will have the right to designate one director to our Board of Directors. As of December 31, 2021, JDH Capital owned 11.1% of our outstanding common stock.

Jeffery D. Hildebrand, founder and executive chairman of Hilcorp, was appointed Director in August 2019 and served until his resignation on July 29, 2020, at which time Jason C. Rebrook, President of Hilcorp, was appointed Director to fill the resulting vacancy. Mr. Hildebrand did not receive compensation in his role as Director and Mr. Rebrook received no compensation in his role as Director in 2020. In December 2020, the Board of Directors voted to approve the payment of Director cash and equity compensation to Mr. Rebrook beginning in 2021.

Revenue from Hilcorp and affiliates was $38.2 million, $40.3 million and $31.4 million during the years ended December 31, 2021, 2020 and 2019, respectively. Accounts receivable, net due from Hilcorp and affiliates was $3.7 million and $3.9 million as of December 31, 2021 and 2020, respectively.
v3.22.0.1
Segments
 12 Months Ended
Dec. 31, 2021
Segments  
Segments

28. Segments

We manage our business segments primarily based on the type of product or service provided. We have two segments which we operate within the U.S.: contract operations and aftermarket services. The contract operations segment primarily provides natural gas compression services to meet specific customer requirements. The aftermarket services segment provides a full range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets.

We evaluate the performance of our segments based on gross margin for each segment. Revenue includes only sales to external customers. No single customer accounted for 10% or more of our revenue during the years ended December 31, 2021, 2020 and 2019.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Contract

    

Aftermarket

    

​

    

​

​

(in thousands)

    

Operations

    

Services

    

Other (1)

    

Total

2021

 

​

  

 

​

  

 

​

  

 

​

  

Revenue

​

$

648,311

​

$

133,150

​

$

—

​

$

781,461

Gross margin

​

 

403,825

​

 

18,719

​

 

—

​

 

422,544

Capital expenditures

​

​

94,863

​

 

2,675

​

 

347

​

 

97,885

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

 

  

​

 

  

​

 

  

​

 

  

Revenue

​

$

738,918

​

$

136,052

​

$

—

​

$

874,970

Gross margin

​

 

477,831

​

 

19,946

​

 

—

​

 

497,777

Capital expenditures

​

 

133,492

​

 

5,308

​

 

1,502

​

 

140,302

​

​

​

​

​

​

​

​

​

​

​

​

​

2019

​

 

  

​

 

  

​

 

  

​

 

  

Revenue

​

$

771,539

​

$

193,946

​

$

—

​

$

965,485

Gross margin

​

 

474,279

​

 

34,968

​

 

—

​

 

509,247

Capital expenditures

​

 

374,650

​

 

8,714

​

 

1,834

​

 

385,198

(1)Corporate-related items.

​

The following table presents assets by segment reconciled to total assets per the consolidated balance sheets:

​

​

​

​

​

​

​

​

​

    

December 31, 

(in thousands)

    

2021

​

2020

Contract operations assets

​

$

2,429,805

​

$

2,593,864

Aftermarket services assets

​

 

49,420

​

 

45,985

Segment assets

​

​

2,479,225

​

​

2,639,849

Other assets (1)

​

​

100,930

​

​

128,837

Assets associated with discontinued operations

​

​

9,811

​

​

11,036

Total assets

​

$

2,589,966

​

$

2,779,722

(1)Corporate-related items.

The following table reconciles total gross margin to income (loss) before income taxes:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Total gross margin

​

$

422,544

​

$

497,777

​

$

509,247

Less:

​

 

  

​

 

  

​

 

  

Selling, general and administrative

​

 

107,167

​

 

105,100

​

 

117,727

Depreciation and amortization

​

 

178,946

​

 

193,138

​

 

188,084

Long-lived and other asset impairment

​

 

21,397

​

 

79,556

​

 

44,663

Goodwill impairment

​

​

—

​

​

99,830

​

​

—

Restatement and other charges

​

​

—

​

​

—

​

​

445

Restructuring charges

​

​

2,903

​

​

8,450

​

​

—

Interest expense

​

 

108,135

​

 

105,716

​

 

104,681

Debt extinguishment loss

​

 

—

​

 

3,971

​

 

3,653

Transaction-related costs

​

​

—

​

​

—

​

​

8,213

Gain on sale of assets, net

​

​

(30,258)

​

​

(10,643)

​

​

(16,016)

Other income, net

​

 

(4,707)

​

 

(1,359)

​

 

(661)

Income (loss) before income taxes

​

$

38,961

​

$

(85,982)

​

$

58,458

​
v3.22.0.1
Impact of Hurricane
 12 Months Ended
Dec. 31, 2021
Impact of Hurricane  
Impact of Hurricane

29. Impact of Hurricane

Hurricane Ida made landfall in Louisiana on August 29, 2021, causing operational disruptions, damage to compressors and a temporary shutdown of facilities in Louisiana that negatively impacted our financial performance in the quarter. In the third quarter of 2021, we recorded $2.0 million in depreciation expense associated with the damaged assets, and in the fourth quarter, we recognized an insurance recovery of $2.8 million related to the facility and compressor damages in other income, net in our consolidated statements of operations, after a deductible of $0.9 million. A corresponding receivable for $2.8 million was recorded to our consolidated balance sheet as of December 31, 2021. The remaining portion of our insurance claim pertaining to business interruption is in process. We are currently unable to estimate the expected amount to be recovered, however, any amount recovered will not be subject to an additional deductible.

​

​
v3.22.0.1
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2021
Basis of Presentation and Significant Accounting Policies  
Consolidation

Our Financial Statements include Archrock and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated in consolidation.
Basis of Presentation Our Financial Statements are prepared in accordance with GAAP and the rules and regulations of the SEC.
Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues, expenses and disclosures of contingent assets and liabilities. Because of the inherent uncertainties in this process, actual future results could differ from those expected as of the reporting date. Management believes that the estimates and assumptions used are reasonable.
Cash and Cash Equivalents

Cash and Cash Equivalents

We consider all highly-liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Revenue Recognition

Revenue Recognition

We recognize revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we are entitled to receive in exchange for those goods or services. Sales and usage-based taxes that are collected from the customer are excluded from revenue.

Contract Operations

Natural gas compression services. Natural gas compression services are generally satisfied over time, as the customer simultaneously receives and consumes the benefits provided by these services. Our performance obligation is a series in which the unit of service is one month, as the customer receives substantially the same benefit each month from the services regardless of the type of service activity performed, which may vary. If the transaction price is based on a fixed fee, revenue is recognized monthly on a straight-line basis over the period that we are providing services to the customer. Amounts invoiced to customers for costs associated with moving our compression assets to a customer site are also included in the transaction price and are amortized over the initial contract term. We do not consider the effects of the time value of money, as the expected time between the transfer of services and payment for such services is less than one year.

Variable consideration exists if customers are billed at a lesser standby rate when a unit is not running. We recognize revenue for such variable consideration monthly, as the invoice corresponds directly to the value transferred to the customer based on our performance completed to date. The rate for standby service is lower to reflect the decrease in costs and effort required to provide standby service when a unit is not running.

Billable Maintenance Service. We perform billable maintenance service on our natural gas compression equipment at the customer’s request on an as-needed basis. The performance obligation is satisfied and revenue is recognized at the agreed-upon transaction price at the point in time when service is complete and the customer has accepted the work performed and can obtain the remaining benefits of the service that the unit will provide.

Aftermarket Services

OTC Parts and Components Sales. For sales of OTC parts and components, the performance obligation is generally satisfied at the point in time when delivery takes place and the customer obtains control of the part or component. The transaction price is the fixed sales price for the part stated in the contract. Revenue is recognized upon delivery, as we have a present right to payment and the customer has legal title.

Maintenance, Overhaul and Reconfiguration Services. For our service activities, the performance obligation is satisfied over time, as the work performed enhances the customer-controlled asset and another entity would not have to substantially re-perform the work we completed if they were to fulfill the remaining performance obligation. The transaction price may be a fixed monthly service fee, a fixed quoted fee or entirely variable, calculated on a time and materials basis.

For service provided based on a fixed monthly fee, the performance obligation is a series in which the unit of service is one month. The customer receives substantially the same benefit each month from the service, regardless of the type of service activity performed, which may vary. As the progress towards satisfaction of the performance obligation is measured based on the passage of time, revenue is recognized monthly based on the fixed fee provided for in the contract.

For service provided based on a quoted fixed fee, progress towards satisfaction of the performance obligation is measured using an input method based on the actual amount of labor and material costs incurred. The amount of the transaction price recognized as revenue each reporting period is determined by multiplying the transaction price by the ratio of actual costs incurred to date to total estimated costs expected for the service. Significant judgment is involved in the estimation of the progress to completion. Any adjustments to the measure of the progress to completion is accounted for on a prospective basis. Changes to the scope of service is recognized as an adjustment to the transaction price in the period in which the change occurs.

Service provided based on time and materials is generally short-term in nature and labor rates and parts pricing is agreed upon prior to commencing the service. We apply an estimated gross margin percentage, which is fixed based on historical time and materials-based service, to actual costs incurred. We evaluate the estimated gross margin percentage at the end of each reporting period and adjust the transaction price as appropriate.

Contract Assets and Liabilities

We recognize a contract asset when we have the right to consideration in exchange for goods or services transferred to a customer when the right is conditioned on something other than the passage of time. We recognize a contract liability when we have an obligation to transfer goods or services to a customer for which we have already received consideration.
Concentrations of Credit Risk

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents and trade accounts receivable. Our temporary cash investments have a zero-loss expectation because we maintain minimal balances in our cash investment accounts and have no history of loss. Trade accounts receivable are due from companies of varying size engaged principally in oil and natural gas activities throughout the U.S. We review the financial condition of customers prior to extending credit and generally do not obtain collateral for trade receivables. Payment terms are on a short-term basis and in accordance with industry practice. We consider this credit risk to be limited due to these companies’ financial resources, the nature of the products and services we provide and the terms of our customer agreements.

Due to the short-term nature of our trade receivables, we consider the amortized cost to be the same as the carrying amount of the receivable, excluding the allowance for credit losses. We recognize an allowance for credit losses when a receivable is recorded, even when the risk of loss is remote. We utilize an aging schedule to determine our allowance for credit losses, and measure expected credit losses on a collective (pool) basis when similar risk characteristics exist. We rely primarily on ratings assigned by external rating agencies and credit monitoring services to assess credit risk and aggregate customers first by low, medium or high risk asset pools, and then by delinquency status. We also consider the internal risk associated with geographic location and the services we provide to the customer when determining asset pools. If a customer does not share similar risk characteristics with other customers, we evaluate the customer’s outstanding trade receivables for expected credit losses on an individual basis. Trade receivables evaluated individually are not included in our collective assessment. Each reporting period, we reassess our customers’ risk profiles and determine the appropriate asset pool classification, or perform individual assessments of expected credit losses, based on the customers’ risk characteristics at the reporting date.

The contractual life of our trade receivables is primarily 30 days based on the payment terms specified in the contract. Contract operations services are generally billed monthly at the beginning of the month in which service is being provided. Aftermarket services billings typically occur when parts are delivered or service is completed. Loss rates are separately determined for each asset pool based on the length of time a trade receivable has been outstanding. We analyze two years of internal historical loss data, including the effects of prepayments, write-offs and subsequent recoveries, to determine our historical loss experience. Our historical loss information is a relevant data point for estimating credit losses, as the data closely aligns with trade receivables due from our customers. Ratings assigned by external rating agencies and credit monitoring services consider past performance and forecasts of future economic conditions in assessing credit risk. We routinely update our historical loss data to reflect our customers’ current risk profile, to ensure the historical data and loss rates are relevant to the pool of assets for which we are estimating expected credit losses.

At both December 31, 2021 and 2020, Chevron U.S.A. Inc. and Williams Partners accounted for 14%and 10% of our trade accounts receivable balance, respectively. The following table summarizes the activity in our allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Balance at beginning of period

      

$

3,370

      

$

2,210

      

$

1,452

Impact of adoption of ASU 2016-13 on January 1, 2020

​

​

—

​

​

(216)

​

​

—

Provision for credit losses

​

​

(90)

​

​

3,525

​

​

2,567

Write-offs charged against allowance

​

​

(1,128)

​

​

(2,149)

​

​

(1,809)

Balance at end of period

​

$

2,152

​

$

3,370

​

$

2,210
Inventory

Inventory

Inventory consists of parts used for maintenance of natural gas compression equipment. Inventory is stated at the lower of cost and net realizable value using the average cost method.
Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives as follows:

​

​

​

​

Compression equipment, facilities and other fleet assets

    

3 to 30 years

Buildings

​

20 to 35 years

Transportation and shop equipment

​

3 to 10 years

Computer hardware and software

​

3 to 5 years

Other

​

3 to 10 years

​

Major improvements that extend the useful life of an asset are capitalized and depreciated over the estimated useful life of the major improvement, up to seven years. Repairs and maintenance are expensed as incurred.
Long-Lived Assets

Long-Lived Assets

We review long-lived assets, including property, plant and equipment and identifiable intangibles that are being amortized, for impairment whenever events or changes in circumstances, including the removal of compressors from our active fleet, indicate that the carrying amount of an asset may not be recoverable. An impairment loss exists when estimated undiscounted cash flows expected from the use of the asset and its eventual disposition are less than its carrying amount. Impairment losses are recognized in the period in which the impairment occurs and represent the excess of the asset carrying value over its fair value. Identifiable intangibles are amortized over the estimated useful life of the asset.
Leases

Leases

We determine if an arrangement is a lease at inception and determine lease classification and recognize ROU assets and liabilities on the lease commencement date based on the present value of lease payments over the lease term. As the discount rate implicit in the lease is rarely readily determinable, we estimate our incremental borrowing rate using information available at commencement date in determining the present value of the lease payments. The lease term includes options to extend when we are reasonably certain to exercise the option. Short-term leases, those with an initial term of 12 months or less, are not recorded on the balance sheet. Variable costs such as our proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance are not included in the lease liability and are recognized in the period in which they are incurred. Operating lease expense for lease payments is recognized on a straight-line basis over the term of the lease.

Our facility leases, of which we are the lessee, contain lease and nonlease components, which we have elected to account for as a single lease component, as the nonlease components are not significant to the total consideration of the contract and separating the nonlease component would have no effect on lease classification. As it relates to our contract operations service agreements in which we are a lessor, the services nonlease component is predominant over the compression package lease component and therefore recognition of these agreements follows the Accounting Standards Codification Topic 606 Revenue from Contracts with Customers guidance.
Goodwill

Goodwill

The goodwill acquired in connection with the Elite Acquisition represented the excess of consideration transferred over the fair value of the assets and liabilities acquired. We review the carrying amount of our goodwill in the fourth quarter of every year, or whenever indicators of potential impairment exist, to determine if the carrying amount of a reporting unit exceeds its fair value, including the applicable goodwill. We perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is impaired. If the fair value is more likely than not impaired, we perform a quantitative impairment test to identify impairment and measure the amount of impairment loss to be recognized, if any.

Our qualitative assessment includes consideration of various events and circumstances and their potential impact to a reporting unit’s fair value, including macroeconomic and industry conditions such as a deterioration in our operating environment and limitations on access to capital and other developments in the equity and credit markets, cost factors that could have a negative effect on earnings and cash flows, relevant entity-specific and reporting unit-specific events and overall financial performance such as declining earnings or cash flows or a sustained decrease in share price.

The quantitative impairment test (i) allocates goodwill and our other assets and liabilities to our reporting units, contract operations and aftermarket services, (ii) calculates the fair value of the reporting units and (iii) determines the impairment loss, if any, as the amount by which the carrying amount of the reporting unit exceeds its fair value (limited to the total amount of goodwill allocated to that reporting unit). All of the goodwill recognized in the Elite Acquisition was allocated to our contract operations reporting unit. The fair value of the contract operations reporting unit is calculated using the expected present value of future cash flows method. Significant estimates are made to determine future cash flows including future revenues, costs and capital requirements and the appropriate risk-adjusted discount rate by which to discount the estimated future cash flows.

In the first quarter of 2020, the global response to the COVID-19 pandemic significantly impacted our market capitalization and estimates of future revenues and cash flows, which triggered the need to perform a quantitative test of the fair value of our contract operations reporting unit as of March 31, 2020. The quantitative test determined that the carrying amount of our contract operations reporting unit exceeded its fair value and we recorded a full impairment loss on goodwill as a result.
Internal-Use Software

Internal-Use Software

Certain of our contracts have been deemed to be hosting arrangements that are service contracts, including those related to the cloud migration of our ERP system and cloud services for our new mobile workforce, telematics and inventory management tools. Certain costs incurred for the implementation of a hosting arrangement that is a service contract are capitalized and amortized on a straight-line basis over the term of the respective contract. Amortization begins for each component of the hosting arrangement when the component becomes ready for its intended use. Capitalized implementation costs are presented in other assets, the same line item in our consolidated balance sheets that a prepayment of the fees for the associated hosting arrangement would be presented. Amortization expense of the capitalized implementation costs is presented in SG&A, the same line item in our consolidated statements of operations as the expense for fees for the associated hosting arrangement.
Income Taxes

Income Taxes

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rate on deferred tax assets and liabilities is recognized in income in the period of the enactment date.

We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. If a valuation allowance was previously recorded and we subsequently determined we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax assets’ valuation allowance, which would reduce the provision for income taxes.

We record uncertain tax positions in accordance with the accounting standard on income taxes under a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority.
Hedging and Use of Derivative Instruments

Hedging and Use of Derivative Instruments

We use derivative instruments to manage our exposure to fluctuations in the variable interest rate of our Credit Facility and thereby minimize the risks and costs associated with financial activities. We do not use derivative instruments for trading or other speculative purposes. We record interest rate swaps on the balance sheet as either derivative assets or derivative liabilities measured at their fair value. The fair value of our derivatives is based on the income approach (discounted cash flow) using market observable inputs, including LIBOR forward curves. Changes in the fair value of the derivatives designated as cash flow hedges are recognized as a component of other comprehensive income (loss) until the hedged transaction affects earnings. At that time, amounts are reclassified into earnings to interest expense, the same statement of operations line item to which the earnings effect of the hedged item is recorded. Cash flows from derivatives designated as hedges are classified in our consolidated statements of cash flows under the same category as the cash flows from the underlying assets, liabilities or anticipated transactions unless the derivative contract contains a significant financing element, in which case, the cash settlements for these derivatives are classified as cash flows from financing activities.

To qualify for hedge accounting treatment, we must formally document, designate and assess the effectiveness of the transactions. We perform quarterly qualitative prospective and retrospective hedge effectiveness assessments unless facts and circumstances related to the hedging relationships change such that we can no longer assert qualitatively that the cash flow hedge relationships were and continue to be highly effective. If the necessary correlation ceases to exist or if the anticipated transaction is no longer probable, we would discontinue hedge accounting and apply mark-to-market accounting. Amounts paid or received from interest rate swap agreements are recorded in interest expense and matched with the cash flows and interest expense of the debt being hedged, resulting in an adjustment to the effective interest rate.
Accounting Standards Updates Implemented and Accounting Standards Updates Not Yet Implemented

Accounting Standards Updates Implemented

Reference Rate Reform

In June 2021, we prospectively adopted ASU 2020-04, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued as a result of reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. Entities may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020. On June 10, 2021, we amended one of our interest rate swap agreements and determined that the modifications meet the criteria for the optional expedients and exceptions, which allow us to forego dedesignation of the hedging relationship and to subsequently assess effectiveness on a qualitative basis. The adoption of ASU 2020-04 did not have a material impact on our consolidated financial statements. In the first quarter, we evaluated Amendment No. 3 to our Credit Facility and determined that ASU 2020-04 was not applicable. We will continue to assess any modifications to our interest rate swap and Credit Facility agreements during the effective period of this update and will apply the amendments as applicable.
v3.22.0.1
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2021
Basis of Presentation and Significant Accounting Policies  
Summary of changes in the allowance for credit losses balance

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Balance at beginning of period

      

$

3,370

      

$

2,210

      

$

1,452

Impact of adoption of ASU 2016-13 on January 1, 2020

​

​

—

​

​

(216)

​

​

—

Provision for credit losses

​

​

(90)

​

​

3,525

​

​

2,567

Write-offs charged against allowance

​

​

(1,128)

​

​

(2,149)

​

​

(1,809)

Balance at end of period

​

$

2,152

​

$

3,370

​

$

2,210
Schedule of estimated useful life of property, plant and equipment

​

​

​

​

Compression equipment, facilities and other fleet assets

    

3 to 30 years

Buildings

​

20 to 35 years

Transportation and shop equipment

​

3 to 10 years

Computer hardware and software

​

3 to 5 years

Other

​

3 to 10 years
v3.22.0.1
Business Transactions (Tables)
 12 Months Ended
Dec. 31, 2021
Business Transactions  
Pro Forma Information

​

​

​

​

​

​

​

Year Ended

(in thousands)

    

December 31, 2019

Revenue

​

$

1,009,763

Net income attributable to Archrock stockholders

​

 

106,521
v3.22.0.1
Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 2021
Discontinued Operations  
Summary of balance sheets and statements of operations for discontinued operations

The following table presents the balance sheets for our discontinued operations:

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

​

2020

Other assets

​

$

7,868

​

$

7,868

Deferred tax assets

​

​

1,943

​

​

3,168

Total assets associated with discontinued operations

​

$

9,811

​

$

11,036

​

​

​

​

​

​

​

Deferred tax liabilities

​

$

7,868

​

$

7,868

Total liabilities associated with discontinued operations

​

$

7,868

​

$

7,868

​

​

The following table presents the statements of operations for our discontinued operations:

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Other (income) expense, net

​

$

—

    

$

640

    

$

(1,473)

Provision for (benefit from) income taxes

​

 

—

​

 

(640)

​

 

1,746

Loss from discontinued operations, net of tax

​

$

—

​

$

—

​

$

(273)
v3.22.0.1
Inventory (Tables)
 12 Months Ended
Dec. 31, 2021
Inventory  
Schedule of inventory, net of reserves

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

    

2020

Parts and supplies

​

$

63,628

​

$

57,433

Work in progress

​

 

9,241

​

 

6,237

Inventory

​

$

72,869

​

$

63,670
v3.22.0.1
Property, Plant and Equipment, Net (Tables)
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment, net  
Schedule of property, plant and equipment, net

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

​

2020

Compression equipment, facilities and other fleet assets

​

$

3,273,770

​

$

3,439,432

Land and buildings

​

 

43,540

​

 

45,167

Transportation and shop equipment

​

 

92,490

​

 

106,868

Computer hardware and software

​

 

76,908

​

 

84,680

Other

​

 

6,229

​

 

14,457

Property, plant and equipment

​

 

3,492,937

​

 

3,690,604

Accumulated depreciation

​

 

(1,266,411)

​

 

(1,300,930)

Property, plant and equipment, net

​

$

2,226,526

​

$

2,389,674
v3.22.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2021
Leases  
Schedule of balance sheet information of operating leases

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

    

Classification

    

2021

    

2020

ROU assets

 

Operating lease ROU assets

​

$

17,491

​

$

19,236

​

​

​

​

​

​

​

​

​

Lease liabilities

 

  

​

 

  

​

 

  

Current

 

Accrued liabilities

​

$

2,940

​

$

3,564

Noncurrent

 

Operating lease liabilities

​

 

15,940

​

 

16,925

Total lease liabilities

 

  

​

$

18,880

​

$

20,489
Schedule of components of lease cost

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

​

2020

​

2019

Operating lease cost

​

$

4,836

​

$

4,508

​

$

3,966

Short-term lease cost

​

 

169

​

 

52

​

 

348

Variable lease cost

​

 

2,123

​

 

1,652

​

 

1,607

Total lease cost

​

$

7,128

​

$

6,212

​

$

5,921
Schedule of operating lease cash flow and noncash information

​

​

​

​

​

​

​

​

​

​

​

​

    

Year Ended December 31, 

(in thousands)

​

2021

​

2020

​

2019

Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities

​

$

6,568

​

$

5,885

​

$

5,420

Operating lease ROU assets obtained in exchange for lease liabilities, net (1)

​

 

2,135

​

 

4,812

​

 

2,247

(1)Includes decreases to our ROU assets of $0.3 million and $0.1 million related to lease amendments and terminations during the years ended December 31, 2021 and 2020, respectively.
Schedule of lease supplemental information

​

​

​

​

​

​

​

​

​

​

      

December 31, 

    

​

​

2021

​

2020

​

2019

​

Weighted average remaining lease term (in years)

​

7.2

​

7.9

​

8.2

​

Weighted average discount rate

​

4.6

%

4.8

%

5.3

%
Schedule of maturities of lease liabilities

​

​

​

​

​

(in thousands)

    

​

​

2022

​

$

3,454

2023

​

​

3,453

2024

​

 

2,998

2025

​

 

2,575

2026

​

 

2,321

Thereafter

​

 

7,628

Total lease payments

​

 

22,429

Less: Interest

​

 

(3,549)

Total lease liabilities

​

$

18,880
v3.22.0.1
Intangible Assets, net (Tables)
 12 Months Ended
Dec. 31, 2021
Intangible Assets, net  
Schedule of Finite-Lived Intangible Assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

December 31, 2020

​

​

Gross

​

​

​

​

Gross

​

​

​

​

​

Carrying

​

Accumulated

​

Carrying

​

Accumulated

(in thousands)

    

Amount

    

Amortization

    

Amount

    

Amortization

Customer-related (15 ― 25 year life)

​

$

144,322

​

$

(96,435)

​

$

147,169

​

$

(86,512)

Contract-based (5 ― 7 year life)

​

 

—

​

 

—

​

 

37,730

​

 

(36,856)

Intangible assets

​

$

144,322

​

$

(96,435)

​

$

184,899

​

$

(123,368)
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

​

​

​

​

​

(in thousands)

    

​

​

2022

​

$

8,913

2023

​

 

7,060

2024

​

 

5,895

2025

​

 

3,763

2026

​

 

3,179

Thereafter

​

 

19,077

Total

​

$

47,887
v3.22.0.1
Accrued Liabilities (Tables)
 12 Months Ended
Dec. 31, 2021
Accrued Liabilities  
Schedule of Accrued Liabilities

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

    

2021

    

2020

Accrued salaries and other benefits

​

$

20,891

​

$

16,332

Accrued income and other taxes

​

 

9,957

​

 

11,414

Accrued interest

​

 

22,368

​

 

22,693

Derivative liability - current

​

 

1,250

​

 

4,809

Other accrued liabilities

​

 

28,051

​

 

21,745

Accrued liabilities

​

$

82,517

​

$

76,993
v3.22.0.1
Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2021
Debt Instruments  
Schedule of long-term debt

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

    

2021

​

2020

Credit Facility

​

$

234,500

​

$

393,000

​

​

​

​

​

​

​

2028 Notes

​

​

​

​

​

​

Principal

​

 

800,000

​

 

800,000

Debt premium, net of amortization

​

​

12,536

​

 

14,541

Deferred financing costs, net of amortization

​

 

(10,406)

​

 

(11,766)

​

​

 

802,130

​

 

802,775

​

​

​

​

​

​

​

2027 Notes

​

​

​

​

​

​

Principal

​

​

500,000

​

 

500,000

Deferred financing costs, net of amortization

​

​

(5,805)

​

 

(6,908)

​

​

​

494,195

​

 

493,092

​

​

​

​

​

​

​

Long-term debt

​

$

1,530,825

​

$

1,688,867

​
Schedule of Maturities of Long-term Debt

​

​

​

​

​

(in thousands)

    

​

​

2022

​

$

—

2023

​

 

—

2024

​

 

234,500

2025

​

 

—

2026

​

 

—

Long-term debt maturities through 2026

​

$

234,500
Credit Facility  
Debt Instruments  
Schedule of financial ratios to be maintained defined in Credit Facility agreement

​

​

​

​

EBITDA to Interest Expense

    

2.5 to 1.0

Senior Secured Debt to EBITDA

 

3.0 to 1.0

Total Debt to EBITDA

 

  

Through fiscal year 2022

​

5.75 to 1.0

January 1, 2023 through September 30, 2023

 

5.50 to 1.0

Thereafter (1)

 

5.25 to 1.0

(1)Subject to a temporary increase to 5.50 to 1.0 for any quarter during which an acquisition satisfying certain thresholds is completed and for the two quarters immediately following such quarter.
v3.22.0.1
Accumulated Other Comprehensive Loss (Tables)
 12 Months Ended
Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss).  
Schedule of Accumulated Other Comprehensive Income (Loss)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Beginning accumulated other comprehensive income (loss)

​

$

(5,006)

​

$

(1,387)

​

$

5,773

Other comprehensive income (loss), net of tax:

​

​

​

​

​

​

​

​

​

Loss recognized in other comprehensive income (loss), net of tax benefit of $257, $1,776 and $1,425, respectively

​

 

(962)

​

 

(6,683)

​

 

(5,360)

(Gain) loss reclassified from accumulated other comprehensive income (loss) to interest expense, net of tax provision (benefit) of $(1,324), $(814) and $478, respectively

​

 

4,984

​

 

3,064

​

 

(1,800)

Total other comprehensive income (loss)

​

 

4,022

​

 

(3,619)

​

 

(7,160)

Ending accumulated other comprehensive loss

​

$

(984)

​

$

(5,006)

​

$

(1,387)
v3.22.0.1
Equity (Tables)
 12 Months Ended
Dec. 31, 2021
Equity  
Summary of entity's dividends per common share

​

​

​

​

​

​

​

​

​

    

Declared Dividends

    

Dividends Paid

​

    

per Common Share

    

(in thousands)

2021

​

 

  

​

 

  

Q4

​

$

0.145

​

$

22,351

Q3

​

​

0.145

​

​

22,506

Q2

​

​

0.145

​

​

22,331

Q1

​

​

0.145

​

​

22,155

​

​

​

​

​

​

​

2020

 

​

  

 

​

  

Q4

​

$

0.145

​

$

22,177

Q3

​

 

0.145

​

 

22,308

Q2

​

 

0.145

​

 

22,176

Q1

​

 

0.145

​

 

22,171

​

​

​

​

​

​

​

2019

 

​

  

 

​

  

Q4

​

$

0.145

​

$

22,031

Q3

​

 

0.145

​

 

22,062

Q2

​

 

0.132

​

 

17,206

Q1

​

 

0.132

​

 

17,231
v3.22.0.1
Revenue from Contract with Customers (Tables)
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer  
Disaggregation of Revenue

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Contract operations:

​

​

  

​

​

  

​

​

  

0 ― 1,000 horsepower per unit

​

$

175,457

​

$

224,702

​

$

259,985

1,001 ― 1,500 horsepower per unit

​

 

267,191

​

 

305,185

​

 

316,082

Over 1,500 horsepower per unit

​

 

204,893

​

 

206,749

​

 

191,510

Other (1)

​

 

770

​

 

2,282

​

 

3,962

Total contract operations revenue (2)

​

 

648,311

​

 

738,918

​

 

771,539

​

​

​

​

​

​

​

​

​

​

Aftermarket services:

​

 

  

​

 

  

​

 

  

Services (3)

​

 

69,876

​

 

79,012

​

 

122,076

OTC parts and components sales

​

 

63,274

​

 

57,040

​

 

71,870

Total aftermarket services revenue (4)

​

 

133,150

​

 

136,052

​

 

193,946

​

​

​

​

​

​

​

​

​

​

Total revenue

​

$

781,461

​

$

874,970

​

$

965,485

(1)Primarily relates to fees associated with owned non-compression equipment.
(2)Includes $4.0 million, $5.6 million and $7.9 million during the years ended December 31, 2021, 2020 and 2019, respectively, related to billable maintenance on owned compressors that was recognized at a point in time. All other contract operations revenue is recognized over time.
(3)Includes a reversal of $0.9 million of revenue during the year ended December 31, 2019 related to changes in estimates of performance obligations partially satisfied in prior periods.
(4)Services revenue within aftermarket services is recognized over time. OTC parts and components sales revenue is recognized at a point in time.
Schedule of remaining Performance Obligation

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(in thousands)

    

2022

    

2023

    

2024

    

2025

    

2026

    

Total

Remaining performance obligations

​

$

209,241

​

$

42,367

​

$

11,747

​

$

771

​

$

471

​

$

264,597
v3.22.0.1
Long-Lived and Other Asset Impairment (Tables)
 12 Months Ended
Dec. 31, 2021
Long-Lived and Other Asset Impairment  
Schedule of impairment of long-lived assets

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(dollars in thousands)

​

2021

    

2020

    

2019

Idle compressors retired from the active fleet

​

​

230

 

​

730

 

​

975

Horsepower of idle compressors retired from the active fleet

 

​

85,000

 

​

261,000

 

​

170,000

Impairment recorded on idle compressors retired from the active fleet

​

$

21,208

​

$

77,590

​

$

44,663
v3.22.0.1
Restructuring Charges (Tables)
 12 Months Ended
Dec. 31, 2021
Restructuring Charges  
Schedule of changes to accrued liability balance related to restructuring charges

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

2021

​

​

​

​

​

​

Pandemic

​

Property

​

Property

​

Other

​

​

​

(in thousands)

​

Restructuring

​

Restructuring

​

Restructuring

​

Restructuring

​

Total

Balance at December 31, 2020

    

$

201

    

$

—

    

$

—

    

$

—

    

$

201

Charges incurred

​

 

1,717

​

 

35

​

 

929

​

 

222

​

 

2,903

Payments

​

​

(1,918)

​

​

(35)

​

​

(929)

​

​

(222)

​

​

(3,104)

Balance at December 31, 2021

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—
Schedule of restructuring charges by segment

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Contract

​

Aftermarket

​

​

​

​

​

​

(in thousands)

​

Operations

​

Services

​

Other (1)

​

Total

Year ended December 31, 2021

​

​

​

​

​

​

​

​

​

​

​

​

Pandemic restructuring

​

$

616

​

$

145

​

$

956

​

$

1,717

2020 Property restructuring - other exit costs

​

​

—

​

​

—

​

​

35

​

​

35

2021 Property restructuring - other exit costs

​

​

929

​

​

—

​

​

—

​

​

929

Other restructuring

​

​

—

​

​

—

​

​

222

​

​

222

Total restructuring charges

​

$

1,545

​

$

145

​

$

1,213

​

$

2,903

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended December 31, 2020

​

​

​

​

​

​

​

​

​

​

​

​

Organizational restructuring

​

$

458

​

$

625

​

$

612

​

$

1,695

Pandemic restructuring

​

​

2,505

​

​

1,218

​

​

1,534

​

​

5,257

2020 Property restructuring

​

​

​

​

​

​

​

​

​

​

​

​

Loss on sale

​

​

—

​

​

—

​

​

915

​

​

915

Impairment loss

​

​

—

​

​

—

​

​

583

​

​

583

Total 2020 Property restructuring

​

​

—

​

​

—

​

​

1,498

​

​

1,498

Total restructuring charges

​

$

2,963

​

$

1,843

​

$

3,644

​

$

8,450

(1)Represents expense incurred within our corporate function and not directly attributable to our segments.
Schedule of restructuring charges by type

​

​

​

​

​

​

​

​

​

​

Years Ended December 31,

(in thousands)

​

2021

    

2020

Severance costs

​

​

​

​

​

​

Organizational restructuring

​

$

—

​

$

1,695

Pandemic restructuring

​

​

1,717

​

​

5,257

Total severance costs

​

​

1,717

​

​

6,952

Property disposal costs

​

​

​

​

​

​

Loss on sale

​

​

—

​

​

915

Impairment loss

​

​

—

​

​

583

Other exit costs

​

​

964

​

​

—

Total property disposal costs

 

​

964

 

​

1,498

Other restructuring costs

​

​

222

​

​

—

Total restructuring charges

​

$

2,903

​

$

8,450
v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Taxes  
Schedule of Components of Income Tax Expense (Benefit)

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

    

2021

    

2020

    

2019

Current tax provision (benefit):

​

​

​

​

​

​

​

​

​

U.S. federal

​

$

(1)

​

$

(99)

​

$

75

State

​

 

366

​

 

326

​

 

377

Total current

​

​

365

​

​

227

​

​

452

Deferred tax provision (benefit):

​

​

  

​

​

  

​

​

  

U.S. federal

​

​

8,800

​

​

(17,246)

​

​

(35,597)

State

​

 

1,579

​

 

(518)

​

 

(4,000)

Total deferred

​

​

10,379

​

​

(17,764)

​

​

(39,597)

Provision for (benefit from) income taxes

​

$

10,744

​

$

(17,537)

​

$

(39,145)
Schedule of Effective Income Tax Rate Reconciliation

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Income taxes at U.S. federal statutory rate

    

$

8,182

    

$

(18,056)

    

$

12,276

Net state income taxes

​

 

1,374

​

 

(817)

​

 

1,634

Tax credits

​

 

(720)

​

 

(1,256)

​

 

(1,757)

Unrecognized tax benefits (1)

​

 

598

​

 

772

​

 

(1,958)

Valuation allowances and write off of tax attributes (2)

​

 

(167)

​

 

236

​

 

(50,219)

Executive compensation limitation

​

 

1,559

​

 

1,159

​

 

1,102

Stock

​

 

162

​

 

538

​

 

66

Other

​

 

(244)

​

 

(113)

​

 

(289)

Provision for (benefit from) income taxes

​

$

10,744

​

$

(17,537)

​

$

(39,145)

(1)Includes the expiration of statute of limitations and in 2019, also reflects a decrease in our uncertain tax benefit, net of federal benefit, due to settlements of tax audits. See “Unrecognized Tax Benefits” below for further details.
(2)See “Tax Attributes and Valuation Allowances” below for further details.
Schedule of Deferred Tax Assets and Liabilities

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

​

2020

Deferred tax assets:

    

​

  

    

​

  

Net operating loss carryforwards

​

$

196,654

​

$

158,916

Accrued liabilities

​

 

4,527

​

 

3,133

Other

​

 

12,503

​

 

12,124

​

​

 

213,684

​

 

174,173

Valuation allowances (1)

​

 

(735)

​

 

(1,027)

Total deferred tax assets

​

​

212,949

​

​

173,146

​

​

​

​

​

​

​

Deferred tax liabilities:

​

 

  

​

 

  

Property, plant and equipment

​

​

(7,762)

​

​

(6,066)

Basis difference in the Partnership

​

 

(151,469)

​

 

(103,721)

Other

​

 

(6,975)

​

 

(7,150)

Total deferred tax liabilities

​

 

(166,206)

​

 

(116,937)

Net deferred tax asset (2)

​

$

46,743

​

$

56,209

(1)See “Tax Attributes and Valuation Allowances” below for further details.
(2)The 2021 and 2020 net deferred tax assets are reflected in our consolidated balance sheets as deferred tax assets of $47.9 million and $56.9 million, respectively, and deferred tax liabilities of $1.1 million and $0.7 million, respectively.
Schedule of Tax Attributes and Valuation Allowances

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Balance at beginning of period (1)

      

$

(1,027)

      

$

(822)

      

$

(45,439)

Additions to valuation allowance

​

​

-

​

​

(205)

​

​

(580)

Reductions to valuation allowance (1)

​

​

292

​

​

-

​

​

45,197

Balance at end of period

​

$

(735)

​

$

(1,027)

​

$

(822)
Schedule of Unrecognized Tax Benefits Roll Forward

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Beginning balance

    

$

18,892

    

$

18,453

    

$

19,560

Additions based on tax positions related to current year

​

 

2,246

​

 

2,397

​

 

2,227

Additions based on tax positions related to prior years

​

 

632

​

 

—

​

 

2,047

Reductions based on settlement refunds from government authorities

​

 

—

​

 

—

​

 

(4,414)

Reductions based on tax positions related to prior years

​

 

(138)

​

 

(73)

​

 

(51)

Reductions based on lapse of statute of limitations

​

 

(2,038)

​

 

(1,885)

​

 

(916)

Ending balance

​

$

19,594

​

$

18,892

​

$

18,453
v3.22.0.1
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2021
Earnings Per Share  
Summary of net income (loss) attributable to Archrock common stockholders used in the calculation of basic and diluted income (loss) per common share

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Income (loss) from continuing operations

​

$

28,217

​

$

(68,445)

​

$

97,603

Loss from discontinued operations, net of tax

​

 

—

​

 

—

​

 

(273)

Net income (loss)

​

 

28,217

​

 

(68,445)

​

 

97,330

Less: Earnings attributable to participating securities

​

 

(1,172)

​

 

(1,338)

​

 

(1,348)

Net income (loss) attributable to common stockholders

​

$

27,045

​

$

(69,783)

​

$

95,982
Schedule of potential shares of common stock that were included in computing diluted income (loss) attributable to Archrock common stockholders per common share

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Weighted average common shares outstanding including participating securities

​

153,484

​

152,827

​

139,317

Less: Weighted average participating securities outstanding

​

(1,800)

 

(1,999)

 

(1,825)

Weighted average common shares outstanding used in basic net income (loss) per common share

 

151,684

 

150,828

 

137,492

Net dilutive potential common shares issuable:

 

  

 

  

 

  

On exercise of options and vesting of performance-based restricted stock units

 

144

 

—

 

34

On settlement of ESPP shares

 

2

 

—

 

2

Weighted average common shares outstanding used in diluted net income (loss) per common share

 

151,830

 

150,828

 

137,528
Schedule of potential shares of common stock issuable, excluded from computation of diluted income (loss), attributable to Archrock common stockholders per common share

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

On exercise of options where exercise price is greater than average market value for the period

​

31

 

96

 

154

On exercise of options and vesting of performance-based restricted stock units

​

—

​

54

​

—

On settlement of ESPP shares

​

—

​

17

​

—

Net dilutive potential common shares issuable

​

31

​

167

​

154
v3.22.0.1
Derivatives (Tables)
 12 Months Ended
Dec. 31, 2021
Derivatives  
Schedule of effect of derivative instruments on consolidated financial position

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

​

​

2020

Interest rate swaps designated as cash flow hedging instruments

​

​

​

​

​

​

Accrued liabilities

​

$

727

​

$

4,810

Other liabilities

​

 

—

​

 

1,527

Total derivatives designated as cash flow hedging instruments

​

​

727

​

​

6,337

​

​

​

​

​

​

​

Interest rate swaps not designated as hedging instruments

​

​

​

​

​

​

Accrued liabilities

​

​

523

​

​

—

​

​

​

​

​

​

​

Total derivative liabilities

​

$

1,250

​

$

6,337
Schedule of effect of derivative instruments on results of operations

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Total amount of interest expense in which the effects of cash flow hedges and undesignated interest rate swaps are recorded

​

$

108,135

​

$

105,716

​

$

104,681

​

​

​

​

​

​

​

​

​

​

Interest rate swaps designated as cash flow hedging instruments

​

​

​

​

​

​

​

​

​

Pre-tax loss recognized in other comprehensive income (loss)

​

$

(1,219)

​

$

(8,459)

​

$

(6,785)

Pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense

​

 

(6,308)

​

 

(3,878)

​

 

2,278

​

​

​

​

​

​

​

​

​

​

Interest rate swaps not designated as hedging instruments

​

​

​

​

​

​

​

​

​

Gain recognized in interest expense

​

$

1,088

​

$

—

​

$

—
v3.22.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2021
Fair value  
Summary of assets and liabilities measured at fair value on recurring basis

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

​

2020

Derivative liabilities

​

$

1,250

​

$

6,337
Schedule of carrying value and estimated fair value of debt instruments

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

​

2021

​

2020

Carrying amount of fixed rate debt (1)

​

$

1,296,325

​

$

1,295,867

Fair value of fixed rate debt

​

 

1,361,000

​

 

1,371,000

(1)Carrying amounts are shown net of unamortized debt premium and deferred financing costs. See Note 14 (“Long-Term Debt”).
Compressors  
Fair value  
Schedule of non-recurring fair value assets

​

​

​

​

​

​

​

​

​

​

December 31, 

(in thousands)

    

2021

    

2020

Impaired compressors

​

$

4,380

​

$

19,046
Schedule of significant unobservable inputs

​

​

​

​

​

​

​

    

Range

       

   Weighted Average (1)

Estimated net sale proceeds:

​

​

​

​

As of December 31, 2021

​

$0 - $621 per horsepower

​

$35 per horsepower

As of December 31, 2020

​

$0 - $289 per horsepower

​

$20 per horsepower

(1)Calculated based on an estimated discount for market liquidity of 64% and 81% as of December 31, 2021 and 2020, respectively.
v3.22.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2021
Stock-Based Compensation  
Schedule of allocated stock-based compensation

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Equity award expense

​

$

11,336

​

$

10,551

​

$

8,105

Liability award (benefit) expense (1)

​

 

(816)

​

 

1,521

​

 

2,336

Total stock-based compensation expense

​

$

10,520

​

$

12,072

​

$

10,441

(1)In 2021, includes a reversal of prior period expense of $2.1 million during the fourth quarter as the result of revised estimates of performance achievement of our 2019 and 2020 cash-settled performance-based restricted stock units.
Schedule of valuation assumptions

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

​

​

​

2021

​

2020

​

2019

​

Remaining performance period as of grant date (in years)

    

​

2.8

    

​

2.9

    

​

2.9

    

Risk-free interest rate used

 

​

0.3

%  

​

1.4

%  

​

2.6

%  

Grant-date fair value

​

$

14.30

​

$

11.33

​

$

12.91

​
Schedule of restricted stock, restricted stock unit, performance unit, cash settled restricted stock unit and cash settled performance unit activity

​

​

​

​

​

​

​

​

​

​

​

Weighted

​

​

​

​

Average

​

​

​

​

Grant Date

​

​

Shares

​

Fair Value

​

    

(in thousands)

    

Per Share

Non-vested restricted stock, December 31, 2020

 

2,446

​

$

9.69

Granted (1)

 

1,288

​

 

11.20

Vested (2)

 

(1,075)

​

 

9.91

Canceled

 

(81)

​

 

9.85

Non-vested restricted stock, December 31, 2021 (3)

 

2,578

​

 

10.35

(1)The weighted average grant date fair value of shares granted during the years ended December 31, 2021, 2020 and 2019 was $11.20, $9.37 and $10.01, respectively.
(2)The total fair value of all awards vested during the years ended December 31, 2021, 2020 and 2019 was $9.1 million, $7.1 million and $9.0 million, respectively.
(3)Non-vested awards as of December 31, 2021 were comprised of 523 cash-settled units and 2,055 stock-settled awards and units.
v3.22.0.1
Segments (Tables)
 12 Months Ended
Dec. 31, 2021
Segments  
Summary of revenue and other financial information by reportable segment

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Contract

    

Aftermarket

    

​

    

​

​

(in thousands)

    

Operations

    

Services

    

Other (1)

    

Total

2021

 

​

  

 

​

  

 

​

  

 

​

  

Revenue

​

$

648,311

​

$

133,150

​

$

—

​

$

781,461

Gross margin

​

 

403,825

​

 

18,719

​

 

—

​

 

422,544

Capital expenditures

​

​

94,863

​

 

2,675

​

 

347

​

 

97,885

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

 

  

​

 

  

​

 

  

​

 

  

Revenue

​

$

738,918

​

$

136,052

​

$

—

​

$

874,970

Gross margin

​

 

477,831

​

 

19,946

​

 

—

​

 

497,777

Capital expenditures

​

 

133,492

​

 

5,308

​

 

1,502

​

 

140,302

​

​

​

​

​

​

​

​

​

​

​

​

​

2019

​

 

  

​

 

  

​

 

  

​

 

  

Revenue

​

$

771,539

​

$

193,946

​

$

—

​

$

965,485

Gross margin

​

 

474,279

​

 

34,968

​

 

—

​

 

509,247

Capital expenditures

​

 

374,650

​

 

8,714

​

 

1,834

​

 

385,198

(1)Corporate-related items.
Schedule of assets by segment

​

​

​

​

​

​

​

​

​

    

December 31, 

(in thousands)

    

2021

​

2020

Contract operations assets

​

$

2,429,805

​

$

2,593,864

Aftermarket services assets

​

 

49,420

​

 

45,985

Segment assets

​

​

2,479,225

​

​

2,639,849

Other assets (1)

​

​

100,930

​

​

128,837

Assets associated with discontinued operations

​

​

9,811

​

​

11,036

Total assets

​

$

2,589,966

​

$

2,779,722

(1)Corporate-related items.
Reconciliation of net income (loss) to gross margin

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31, 

(in thousands)

​

2021

    

2020

    

2019

Total gross margin

​

$

422,544

​

$

497,777

​

$

509,247

Less:

​

 

  

​

 

  

​

 

  

Selling, general and administrative

​

 

107,167

​

 

105,100

​

 

117,727

Depreciation and amortization

​

 

178,946

​

 

193,138

​

 

188,084

Long-lived and other asset impairment

​

 

21,397

​

 

79,556

​

 

44,663

Goodwill impairment

​

​

—

​

​

99,830

​

​

—

Restatement and other charges

​

​

—

​

​

—

​

​

445

Restructuring charges

​

​

2,903

​

​

8,450

​

​

—

Interest expense

​

 

108,135

​

 

105,716

​

 

104,681

Debt extinguishment loss

​

 

—

​

 

3,971

​

 

3,653

Transaction-related costs

​

​

—

​

​

—

​

​

8,213

Gain on sale of assets, net

​

​

(30,258)

​

​

(10,643)

​

​

(16,016)

Other income, net

​

 

(4,707)

​

 

(1,359)

​

 

(661)

Income (loss) before income taxes

​

$

38,961

​

$

(85,982)

​

$

58,458
v3.22.0.1
Description of Business (Details)
 12 Months Ended
Dec. 31, 2021
segment
Description Of Business  
Number of reportable segments 2
v3.22.0.1
Basis of Presentation and Significant Accounting Policies - Concentrations of Credit Risk (Details)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Credit Losses    
Contractual life of accounts receivable 30 days  
Period for analyzing historical loss data to determine loss experience 2 years  
Trade Receivables | Credit Concentration Risk | Chevron, U.S.A. Inc.    
Credit Losses    
Concentration risk (as a percent) 14.00% 14.00%
Trade Receivables | Credit Concentration Risk | Williams Partners    
Credit Losses    
Concentration risk (as a percent) 10.00% 10.00%
v3.22.0.1
Basis of Presentation and Significant Accounting Policies - Changes in Allowance for Credit Risk (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Changes in the allowance for credit losses balance      
Balance at beginning of period $ 3,370 $ 2,210 $ 1,452
Provision for credit losses (90) 3,525 2,567
Write-offs charged against the allowance (1,128) (2,149) (1,809)
Balance at end of period $ 2,152 3,370 2,210
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment      
Changes in the allowance for credit losses balance      
Balance at beginning of period   $ (216)  
Balance at end of period     $ (216)
v3.22.0.1
Basis of Presentation and Significant Accounting Policies - Property Plant and Equipment (Details)
 12 Months Ended
Dec. 31, 2021
Compression equipment, facilities and other fleet assets | Minimum  
Property, Plant and Equipment  
Property plant and equipment useful life 3 years
Compression equipment, facilities and other fleet assets | Maximum  
Property, Plant and Equipment  
Property plant and equipment useful life 30 years
Building | Minimum  
Property, Plant and Equipment  
Property plant and equipment useful life 20 years
Building | Maximum  
Property, Plant and Equipment  
Property plant and equipment useful life 35 years
Transportation and shop equipment | Minimum  
Property, Plant and Equipment  
Property plant and equipment useful life 3 years
Transportation and shop equipment | Maximum  
Property, Plant and Equipment  
Property plant and equipment useful life 10 years
Computer hardware and software | Minimum  
Property, Plant and Equipment  
Property plant and equipment useful life 3 years
Computer hardware and software | Maximum  
Property, Plant and Equipment  
Property plant and equipment useful life 5 years
Other property, plant and equipment | Minimum  
Property, Plant and Equipment  
Property plant and equipment useful life 3 years
Other property, plant and equipment | Maximum  
Property, Plant and Equipment  
Property plant and equipment useful life 10 years
Major improvements | Maximum  
Property, Plant and Equipment  
Property plant and equipment useful life 7 years
v3.22.0.1
Business Transactions - Dispositions (Details)
hp in Thousands, $ in Thousands
 1 Months Ended 12 Months Ended 18 Months Ended
Jul. 31, 2021
USD ($)
CompressorUnit
hp
Feb. 28, 2021
CompressorUnit
hp
Jul. 31, 2020
USD ($)
Mar. 31, 2020
CompressorUnit
hp
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2021
USD ($)
Transactions                
Gain on disposition         $ 18,945 $ 12,475    
Proceeds from sale         29,562 18,911 $ 80,961  
Disposed of by Sale | July 2021 Dispositions                
Transactions                
Number of compressors | CompressorUnit 575              
Compressor horsepower | hp 100              
Cash consideration         60,300     $ 60,300
Gain on disposition         13,000      
Disposed of by Sale | February 2021 Disposition                
Transactions                
Number of compressors | CompressorUnit   300            
Compressor horsepower | hp   40            
Gain on disposition         6,000      
Disposed of by Sale | July 2020 Disposition                
Transactions                
Disposal Group, Not Discontinued Operation, Name of Segment     Aftermarket Services          
Cash consideration received upon closing     $ 9,500          
Cash consideration received on first anniversary of closing $ 3,000              
Cash received under supply agreement         $ 2,800     $ 3,500
Gain on disposition           9,300    
Disposed of by Sale | March 2020 Disposition                
Transactions                
Number of compressors | CompressorUnit       200        
Compressor horsepower | hp       35        
Gain on disposition           $ 3,200    
Turbocharger goods and services | July 2020 Disposition                
Transactions                
Term of supply agreement     2 years          
v3.22.0.1
Business Transactions - Elite Acquisition (Details) - Elite Acquisition
hp in Thousands, shares in Millions, $ in Millions
 1 Months Ended
Aug. 31, 2019
USD ($)
hp
shares
Business Transactions  
Compressor horsepower | hp 430
Cash consideration $ 214.0
Common Stock  
Business Transactions  
Shares issued as compensation for asset acquisition (shares) | shares 21.7
Fair value of equity consideration $ 225.9
v3.22.0.1
Business Transactions - Assets Acquired (Details) - Elite Acquisition
 1 Months Ended
Aug. 31, 2019
Weighted average  
Business Transactions  
Property plant and equipment useful life 15 years
Customer relationships  
Business Transactions  
Intangible assets useful life 15 years
v3.22.0.1
Business Transactions - Pro forma (Details)
hp in Thousands, $ in Thousands
 1 Months Ended 5 Months Ended 12 Months Ended
Aug. 31, 2019
USD ($)
hp
Dec. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
Business Transactions      
Transaction-related costs     $ 8,213
Pro forma financial information      
Revenue     1,009,763
Net income attributable to Archrock stockholders     106,521
Elite Acquisition      
Business Transactions      
Compressor horsepower | hp 430    
Cash consideration $ 214,000    
Transaction-related costs     $ 7,800
Revenue attributable to assets acquired   $ 33,200  
v3.22.0.1
Business Transactions - Harvest Sale (Details)
hp in Thousands, $ in Thousands
 1 Months Ended 12 Months Ended
Aug. 31, 2019
USD ($)
hp
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Transactions        
Proceeds from sale of property, plant and equipment and other assets   $ 29,562 $ 18,911 $ 80,961
Disposed of by Sale | Harvest        
Transactions        
Compressor horsepower | hp 80      
Proceeds from sale of property, plant and equipment and other assets $ 30,000      
Gain on sale of assets       $ 6,600
v3.22.0.1
Discontinued Operations - Narratives (Details) - Spinoff - Exterran Corporation - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Discontinued Operations    
Deferred tax liabilities, discontinued operations $ 7,868 $ 7,868
Other assets, discontinued operations $ 7,868 $ 7,868
v3.22.0.1
Discontinued Operations - Balance Sheet Data for Discontinued Operations (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Summary of balance sheet data for discontinued operations    
Total assets associated with discontinued operations $ 9,811 $ 11,036
Total liabilities associated with discontinued operations 7,868 7,868
Spinoff | Exterran Corporation    
Summary of balance sheet data for discontinued operations    
Other assets, discontinued operations 7,868 7,868
Deferred tax assets, discontinued operations 1,943 3,168
Total assets associated with discontinued operations 9,811 11,036
Deferred tax liabilities, discontinued operations 7,868 7,868
Total liabilities associated with discontinued operations $ 7,868 $ 7,868
v3.22.0.1
Discontinued Operations - Income Statement Data for Discontinued Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Summary of operating results of discontinued operations    
Loss from discontinued operations, net of tax   $ (273)
Spinoff | Exterran Corporation    
Summary of operating results of discontinued operations    
Other (income) expense, net, discontinued operations $ 640 (1,473)
Provision for (benefit from) income taxes, discontinued operations $ (640) 1,746
Loss from discontinued operations, net of tax   $ (273)
v3.22.0.1
Inventory (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Composition of Inventory net of reserves    
Parts and supplies $ 63,628 $ 57,433
Work in progress 9,241 6,237
Inventory $ 72,869 $ 63,670
v3.22.0.1
Inventory - Write-down (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Inventory      
Inventory write-downs $ 997 $ 1,349 $ 944
v3.22.0.1
Property, Plant and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment    
Property, plant and equipment, gross $ 3,492,937 $ 3,690,604
Accumulated depreciation (1,266,411) (1,300,930)
Property, plant and equipment, net 2,226,526 2,389,674
Compression equipment, facilities and other fleet assets    
Property, Plant and Equipment    
Property, plant and equipment, gross 3,273,770 3,439,432
Land and buildings    
Property, Plant and Equipment    
Property, plant and equipment, gross 43,540 45,167
Transportation and shop equipment    
Property, Plant and Equipment    
Property, plant and equipment, gross 92,490 106,868
Computer hardware and software    
Property, Plant and Equipment    
Property, plant and equipment, gross 76,908 84,680
Other property, plant and equipment    
Property, Plant and Equipment    
Property, plant and equipment, gross $ 6,229 $ 14,457
v3.22.0.1
Property, Plant and Equipment, net - Narratives (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment, net      
Depreciation expense $ 167.6 $ 177.5 $ 172.8
Construction in progress $ 30.1 $ 17.6  
v3.22.0.1
Leases - Terms (Details)
Dec. 31, 2021
Minimum  
Lessee, Lease, Description  
Remaining lease term (in years) 1 year
Operating lease renewal term (in years) 6 months
Maximum  
Lessee, Lease, Description  
Remaining lease term (in years) 9 years
Operating lease renewal term (in years) 10 years
v3.22.0.1
Leases - Balance Sheet Location (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Leases    
Operating lease ROU assets $ 17,491 $ 19,236
Lease liabilities    
Operating lease liabilities current 2,940 3,564
Operating lease liabilities 15,940 16,925
Total lease liabilities $ 18,880 $ 20,489
Operating Lease, Liability, Current, Statement of Financial Position Accrued liabilities Accrued liabilities
v3.22.0.1
Leases - Components of Lease Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Leases      
Operating lease cost $ 4,836 $ 4,508 $ 3,966
Short-term lease cost 169 52 348
Variable lease cost 2,123 1,652 1,607
Total lease cost $ 7,128 $ 6,212 $ 5,921
v3.22.0.1
Leases - Cash Flow and Non-cash Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Leases      
Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities $ 6,568 $ 5,885 $ 5,420
Operating lease ROU assets obtained in exchange for new lease liabilities, net 2,135 4,812 $ 2,247
Decreases in ROU related to lease amendments and terminations $ 300 $ 100  
v3.22.0.1
Leases - Other Supplemental Information (Details)
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Leases      
Weighted average remaining lease term (in years) 7 years 2 months 12 days 7 years 10 months 24 days 8 years 2 months 12 days
Weighted average discount rate (as a percent) 4.60% 4.80% 5.30%
v3.22.0.1
Leases - Maturity Schedule (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Operating Lease Liabilities, Payments Due    
2022 $ 3,454  
2023 3,453  
2024 2,998  
2025 2,575  
2026 2,321  
Thereafter 7,628  
Total lease payments 22,429  
Less: Interest (3,549)  
Lease liability $ 18,880 $ 20,489
v3.22.0.1
Goodwill (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2020
Change in the carrying value of goodwill    
Goodwill impairment $ 99,800 $ 99,830
v3.22.0.1
Intangible Assets, net - By type (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets    
Gross Carrying Amount $ 144,322 $ 184,899
Accumulated Amortization (96,435) (123,368)
Customer-related    
Finite-Lived Intangible Assets    
Gross Carrying Amount 144,322 147,169
Accumulated Amortization $ (96,435) $ (86,512)
Customer-related | Minimum    
Finite-Lived Intangible Assets    
Useful life 15 years 15 years
Customer-related | Maximum    
Finite-Lived Intangible Assets    
Useful life 25 years 25 years
Contract-based    
Finite-Lived Intangible Assets    
Gross Carrying Amount   $ 37,730
Accumulated Amortization   $ (36,856)
Contract-based | Minimum    
Finite-Lived Intangible Assets    
Useful life 5 years 5 years
Contract-based | Maximum    
Finite-Lived Intangible Assets    
Useful life 7 years 7 years
v3.22.0.1
Intangible Assets, net - Amortization expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Intangible Assets, net      
Amortization expense $ 11.3 $ 15.6 $ 15.3
v3.22.0.1
Intangible Assets, net - Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Intangible Assets, net    
2022 $ 8,913  
2023 7,060  
2024 5,895  
2025 3,763  
2026 3,179  
Thereafter 19,077  
Intangible Assets, Net (Excluding Goodwill), Total $ 47,887 $ 61,531
v3.22.0.1
Contract Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Contract costs      
Contract costs, net $ 25,418 $ 29,216  
Capitalized contract, amortization period 38 months    
Amortization of contract costs $ 19,990 26,629 $ 23,330
Sales commissions      
Contract costs      
Contract costs, net 2,600 3,200  
Amortization of contract costs 2,200 3,000 2,600
Freight and mobilization      
Contract costs      
Contract costs, net 22,800 26,000  
Amortization of contract costs $ 17,800 $ 23,600 $ 20,700
v3.22.0.1
Hosting Arrangements (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Hosting Arrangements    
Hosting arrangements, Capitalized costs $ 12.7 $ 7.7
Hosting arrangements, Accumulated amortization 0.7 0.3
Hosting arrangements, Amortization $ 0.3 0.3
Impairment of capitalized implementation costs   $ 1.6
v3.22.0.1
Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Accrued Liabilities    
Accrued salaries and other benefits $ 20,891 $ 16,332
Accrued income and other taxes 9,957 11,414
Accrued interest 22,368 22,693
Derivative liability - current 1,250 4,809
Other accrued liabilities 28,051 21,745
Accrued liabilities $ 82,517 $ 76,993
v3.22.0.1
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Instruments    
Long-term debt $ 1,530,825 $ 1,688,867
Credit Facility    
Debt Instruments    
Long-term debt 234,500 393,000
2028 Notes    
Debt Instruments    
Long term debt gross 800,000 800,000
Debt premium, net of amortization 12,536 14,541
Deferred financing costs, net of amortization (10,406) (11,766)
Long-term debt 802,130 802,775
2027 Notes    
Debt Instruments    
Long term debt gross 500,000 500,000
Deferred financing costs, net of amortization (5,805) (6,908)
Long-term debt $ 494,195 $ 493,092
v3.22.0.1
Long-Term Debt - Credit Facility (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Feb. 28, 2021
Nov. 30, 2019
Credit Facility          
Line of Credit Facility          
Letter of credit outstanding $ 8.9        
Debt instrument, variable rate (percentage) 2.40%        
Debt instrument weighted average interest rate (percent) 2.60% 2.70%      
Current borrowing capacity $ 502.5        
Undrawn capacity 506.6        
Maximum borrowing capacity   $ 1,250.0   $ 750.0  
Contingent increase in borrowing capacity $ 250.0        
Line of credit facility, commitment fee (percent) 0.375%        
Commitment fee amount $ 2.0 $ 2.0 $ 1.9    
Credit Facility | LIBOR | Minimum          
Line of Credit Facility          
Debt instrument, variable rate (percentage) 2.00%        
Credit Facility | LIBOR | Maximum          
Line of Credit Facility          
Debt instrument, variable rate (percentage) 2.75%        
Credit Facility | Base Rate | Minimum          
Line of Credit Facility          
Debt instrument, variable rate (percentage) 1.00%        
Credit Facility | Base Rate | Maximum          
Line of Credit Facility          
Debt instrument, variable rate (percentage) 1.75%        
Credit Facility | Federal Funds Rate          
Line of Credit Facility          
Debt instrument, interest margin added to variable rate 0.50%        
Credit Facility | One-month LIBOR          
Line of Credit Facility          
Debt instrument, interest margin added to variable rate 1.00%        
Letters of Credit, Credit Facility          
Line of Credit Facility          
Maximum borrowing capacity $ 50.0        
Swing Line Loans, Credit Facility          
Line of Credit Facility          
Maximum borrowing capacity 50.0        
Credit Facility, Amendment 3          
Line of Credit Facility          
Transaction costs       $ 1.8  
Debt issuance cost written off $ 4.9        
Credit Facility, Amendment 2          
Line of Credit Facility          
Transaction costs         $ 6.4
v3.22.0.1
Long-Term Debt - Debt Ratios (Details) - Credit Facility
 9 Months Ended 12 Months Ended 13 Months Ended 22 Months Ended
Sep. 30, 2023
Dec. 31, 2021
Nov. 08, 2024
Dec. 31, 2022
Line of Credit Facility        
EBITDA to Interest Expense   2.5    
Senior Secured Debt to EBITDA   3.0    
Forecasted        
Line of Credit Facility        
Total Debt to EBITDA 5.50   5.25 5.75
Forecasted | Conditional Event        
Line of Credit Facility        
Total Debt to EBITDA     5.50  
v3.22.0.1
Long-Term Debt - 2028 Notes and 2027 Notes (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Instruments            
Proceeds from issuance of debt       $ 704,751 $ 1,049,000 $ 2,395,250
Repayments of long-term debt       863,251 1,204,375 2,071,750
Interest paid       $ 100,002 99,797 97,451
Debt extinguishment loss         3,971 3,653
2028 Senior Notes, Tranche One            
Debt Instruments            
Debt instrument face amount   $ 500,000       $ 500,000
Interest rate (as a percent)   6.25%       6.25%
Proceeds from issuance of debt   $ 491,800        
Percent of face value notes issued   100.00%       100.00%
Debt instrument effective interest rate (as a percent)   6.80%       6.80%
Issuance costs   $ 8,200       $ 8,200
2028 Senior Notes, Tranche Two            
Debt Instruments            
Debt instrument face amount $ 300,000       $ 300,000  
Interest rate (as a percent) 6.25%       6.25%  
Proceeds from issuance of debt $ 309,900          
Percent of face value notes issued 104.875%       104.875%  
Debt instrument effective interest rate (as a percent) 5.60%       5.60%  
Issuance costs $ 4,700       $ 4,700  
2027 Notes            
Debt Instruments            
Debt instrument face amount     $ 500,000      
Interest rate (as a percent)     6.875%      
Proceeds from issuance of debt     $ 491,200      
Percent of face value notes issued     100.00%      
Debt instrument effective interest rate (as a percent)     7.90%      
Issuance costs     $ 8,800      
v3.22.0.1
Long-Term Debt - 2022 and 2021 Notes Redemption (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Apr. 30, 2020
Apr. 30, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Instruments          
Repayments of long-term debt     $ 863,251 $ 1,204,375 $ 2,071,750
Interest paid     $ 100,002 99,797 97,451
Debt extinguishment loss       3,971 3,653
2022 Notes          
Debt Instruments          
Redemption rate (as a percent) 100.00%        
Repayments of long-term debt $ 350,000        
Interest paid $ 10,500        
Debt extinguishment loss       $ 4,000  
2021 Notes          
Debt Instruments          
Redemption rate (as a percent)   100.00%      
Repayments of long-term debt   $ 350,000      
Interest paid   $ 200      
Debt extinguishment loss         $ 3,700
v3.22.0.1
Long-Term Debt Long-Term Debt - Debt Maturity Schedule (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Long-term Debt, Fiscal Year Maturity  
2024 $ 234,500
Long-term debt maturities through 2026 $ 234,500
v3.22.0.1
Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Increase (Decrease) in Stockholders' Equity      
Beginning balance $ 935,557 $ 1,085,963 $ 841,574
Other comprehensive income (loss), net of tax:      
Total other comprehensive income (loss), net of tax 4,022 (3,619) (7,160)
Ending balance 891,438 935,557 1,085,963
Accumulated Other Comprehensive Income (Loss)      
Increase (Decrease) in Stockholders' Equity      
Beginning balance (5,006) (1,387) 5,773
Other comprehensive income (loss), net of tax:      
Gain (loss) recognized in other comprehensive income (loss), net of tax expense (benefit) (962) (6,683) (5,360)
(Gain) loss reclassified from accumulated other comprehensive loss to interest expense, net of tax (expense) benefit 4,984 3,064 (1,800)
Total other comprehensive income (loss), net of tax 4,022 (3,619) (7,160)
Ending balance (984) (5,006) (1,387)
Gain (loss) recognized in other comprehensive income, tax expense (benefit) (257) (1,776) (1,425)
(Gain) loss reclassified from accumulated other comprehensive income (loss) to interest expense, tax provision (benefit) $ (1,324) $ (814) $ 478
v3.22.0.1
Equity - Equity Offering (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Feb. 28, 2021
Equity offering    
Net proceeds from issuance of common stock $ 3,401  
ATM Agreement    
Equity offering    
Maximum amount of shares to be issued   $ 50,000
Stock issued (in shares) 357,148  
Net proceeds from issuance of common stock $ 3,400  
v3.22.0.1
Equity - Elite Acquisition (Details) - Elite Acquisition - Common Stock
shares in Millions, $ in Millions
 1 Months Ended
Aug. 31, 2019
USD ($)
shares
Business Acquisition  
Shares issued as compensation for asset acquisition (shares) | shares 21.7
Fair value of equity consideration | $ $ 225.9
v3.22.0.1
Equity - Cash Dividends (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Feb. 15, 2022
Jan. 27, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Distributions                                  
Declared Dividends per Common Share (in dollars per share)     $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.145 $ 0.132 $ 0.132 $ 0.580 $ 0.580 $ 0.554
Dividends Paid     $ 22,351 $ 22,506 $ 22,331 $ 22,155 $ 22,177 $ 22,308 $ 22,176 $ 22,171 $ 22,031 $ 22,062 $ 17,206 $ 17,231 $ 89,343 $ 88,832 $ 78,530
Subsequent Event                                  
Distributions                                  
Declared Dividends per Common Share (in dollars per share)   $ 0.145                              
Dividends Paid $ 22,600                                
v3.22.0.1
Revenue from Contract with Customers - Disaggregate Revenue (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
hp
Dec. 31, 2020
USD ($)
hp
Dec. 31, 2019
USD ($)
hp
Disaggregation of Revenue      
Revenue $ 781,461 $ 874,970 $ 965,485
Contract Operations      
Disaggregation of Revenue      
Revenue 648,311 738,918 771,539
Contract Operations | Transferred at Point in Time      
Disaggregation of Revenue      
Revenue 4,000 5,600 7,900
Contract Operations | 0 - 1,000 horsepower per unit      
Disaggregation of Revenue      
Revenue $ 175,457 $ 224,702 $ 259,985
Contract Operations | 0 - 1,000 horsepower per unit | Minimum      
Disaggregation of Revenue      
Compressor unit horsepower (horsepower) | hp 0 0 0
Contract Operations | 0 - 1,000 horsepower per unit | Maximum      
Disaggregation of Revenue      
Compressor unit horsepower (horsepower) | hp 1,000 1,000 1,000
Contract Operations | 1,001 - 1,500 horsepower per unit      
Disaggregation of Revenue      
Revenue $ 267,191 $ 305,185 $ 316,082
Contract Operations | 1,001 - 1,500 horsepower per unit | Minimum      
Disaggregation of Revenue      
Compressor unit horsepower (horsepower) | hp 1,001 1,001 1,001
Contract Operations | 1,001 - 1,500 horsepower per unit | Maximum      
Disaggregation of Revenue      
Compressor unit horsepower (horsepower) | hp 1,500 1,500 1,500
Contract Operations | Over 1,500 horsepower per unit      
Disaggregation of Revenue      
Revenue $ 204,893 $ 206,749 $ 191,510
Contract Operations | Over 1,500 horsepower per unit | Minimum      
Disaggregation of Revenue      
Compressor unit horsepower (horsepower) | hp 1,500 1,500 1,500
Contract Operations | Other, including fees      
Disaggregation of Revenue      
Revenue $ 770 $ 2,282 $ 3,962
Aftermarket Services      
Disaggregation of Revenue      
Revenue 133,150 136,052 193,946
Aftermarket Services | Services      
Disaggregation of Revenue      
Revenue 69,876 79,012 122,076
Reversal of revenue due to change in estimate of performance obligation partially satisfied in prior periods     900
Aftermarket Services | OTC parts and components sales      
Disaggregation of Revenue      
Revenue $ 63,274 $ 57,040 $ 71,870
v3.22.0.1
Revenue from Contract with Customers - Performance Obligations (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligations $ 264,597
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligations $ 209,241
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligations $ 42,367
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligations $ 11,747
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligations $ 771
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction  
Remaining performance obligations $ 471
Performance obligations expected to be satisfied, expected timing 1 year
v3.22.0.1
Revenue from Contract with Customers - Contract Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Receivables    
Accounts receivable, trade, net of allowance $ 104,931 $ 104,425
Contract with Customers    
Receivables    
Accounts receivable, trade, net of allowance $ 84,700 $ 95,600
v3.22.0.1
Revenue from Contract with Customers - Contract Liabilities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenue from Contract with Customer      
Contract liability with customer $ 4,400 $ 4,600  
Deferred revenue 10,217 12,732 $ 36,578
Deferred revenue recognized in earnings $ 10,382 $ 19,489 $ 42,268
v3.22.0.1
Long-Lived Asset Impairment (Details)
hp in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
CompressorUnit
hp
Dec. 31, 2020
USD ($)
CompressorUnit
hp
Dec. 31, 2019
USD ($)
CompressorUnit
hp
Impaired Long-Lived Assets Held and Used      
Other asset impairment   $ 1,700  
Idle Compressor Units      
Impaired Long-Lived Assets Held and Used      
Idle compressors retired from the active fleet | CompressorUnit 230 730 975
Horsepower of idle compressors retired from the active fleet | hp 85 261 170
Impairment recorded on idle compressors retired from the active fleet $ 21,208 $ 77,590 $ 44,663
v3.22.0.1
Restructuring Charges - Changes to accrued liability balance (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Changes to accrued liability balance related to restructuring    
Balance at beginning of period $ 201  
Restructuring charges 2,903 $ 8,450
Payments (3,104)  
Balance at end of period   201
Severance costs    
Changes to accrued liability balance related to restructuring    
Restructuring charges 1,717 6,952
Pandemic Restructuring    
Restructuring charges    
Estimated additional charges 0  
Changes to accrued liability balance related to restructuring    
Balance at beginning of period 201  
Restructuring charges 1,717 5,257
Payments (1,918)  
Balance at end of period   201
Pandemic Restructuring | Severance costs    
Restructuring charges    
Restructuring charges incurred to date 7,000  
Changes to accrued liability balance related to restructuring    
Restructuring charges 1,717 5,257
2020 Property Restructuring    
Restructuring charges    
Restructuring charges incurred to date 1,500  
Estimated additional charges 0  
Changes to accrued liability balance related to restructuring    
Balance at beginning of period 0  
Restructuring charges 35 1,498
Payments (35)  
Balance at end of period   0
Loss on sale   915
Impairment loss   583
2021 Property Restructuring    
Changes to accrued liability balance related to restructuring    
Balance at beginning of period 0  
Restructuring charges 929  
Payments (929)  
Balance at end of period   0
Other Restructuring    
Changes to accrued liability balance related to restructuring    
Balance at beginning of period 0  
Restructuring charges 222  
Payments (222)  
Balance at end of period   0
Organizational Restructuring    
Restructuring charges    
Estimated additional charges $ 0  
Changes to accrued liability balance related to restructuring    
Restructuring charges   1,695
Organizational Restructuring | Severance costs    
Changes to accrued liability balance related to restructuring    
Restructuring charges   $ 1,695
v3.22.0.1
Restructuring Charges - By segment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Restructuring charges    
Restructuring charges $ 2,903 $ 8,450
Organizational Restructuring    
Restructuring charges    
Restructuring charges   1,695
Pandemic Restructuring    
Restructuring charges    
Restructuring charges 1,717 5,257
2020 Property Restructuring    
Restructuring charges    
Loss on sale   915
Impairment loss   583
Restructuring charges 35 1,498
2021 Property Restructuring    
Restructuring charges    
Restructuring charges 929  
Other Restructuring    
Restructuring charges    
Restructuring charges 222  
Corporate    
Restructuring charges    
Restructuring charges 1,213 3,644
Corporate | Organizational Restructuring    
Restructuring charges    
Restructuring charges   612
Corporate | Pandemic Restructuring    
Restructuring charges    
Restructuring charges 956 1,534
Corporate | 2020 Property Restructuring    
Restructuring charges    
Loss on sale   915
Impairment loss   583
Restructuring charges 35 1,498
Corporate | Other Restructuring    
Restructuring charges    
Restructuring charges 222  
Contract Operations | Operating    
Restructuring charges    
Restructuring charges 1,545 2,963
Contract Operations | Operating | Organizational Restructuring    
Restructuring charges    
Restructuring charges   458
Contract Operations | Operating | Pandemic Restructuring    
Restructuring charges    
Restructuring charges 616 2,505
Contract Operations | Operating | 2021 Property Restructuring    
Restructuring charges    
Restructuring charges 929  
Aftermarket Services | Operating    
Restructuring charges    
Restructuring charges 145 1,843
Aftermarket Services | Operating | Organizational Restructuring    
Restructuring charges    
Restructuring charges   625
Aftermarket Services | Operating | Pandemic Restructuring    
Restructuring charges    
Restructuring charges $ 145 $ 1,218
v3.22.0.1
Restructuring Charges - By type (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Restructuring charges    
Restructuring charges $ 2,903 $ 8,450
Organizational Restructuring    
Restructuring charges    
Restructuring charges   1,695
Pandemic Restructuring    
Restructuring charges    
Restructuring charges 1,717 5,257
Other Restructuring    
Restructuring charges    
Restructuring charges 222  
Severance costs    
Restructuring charges    
Restructuring charges 1,717 6,952
Severance costs | Organizational Restructuring    
Restructuring charges    
Restructuring charges   1,695
Severance costs | Pandemic Restructuring    
Restructuring charges    
Restructuring charges 1,717 5,257
Property disposal costs | Property Restructuring    
Restructuring charges    
Loss on sale   915
Impairment loss   583
Other exit costs 964  
Restructuring charges $ 964 $ 1,498
v3.22.0.1
Income Taxes Income Taxes - Current and Deferred Tax Positions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current tax provision (benefit):      
U.S. federal $ (1) $ (99) $ 75
State 366 326 377
Total current 365 227 452
Deferred tax provision (benefit):      
U.S. federal 8,800 (17,246) (35,597)
State 1,579 (518) (4,000)
Total deferred 10,379 (17,764) (39,597)
Provision for (benefit from) income taxes $ 10,744 $ (17,537) $ (39,145)
v3.22.0.1
Income Taxes Income Taxes - Reconciliation of Effective Tax Rate to Statutory Tax Rate (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Taxes      
Effective income tax rate (as a percent) 28.00% 20.00% (67.00%)
U.S. statutory tax rate (as a percent) 21.00% 21.00% 21.00%
Effective Income Tax Rate Reconciliation      
Income taxes at U.S. federal statutory rate $ 8,182 $ (18,056) $ 12,276
Net state income taxes 1,374 (817) 1,634
Tax credits (720) (1,256) (1,757)
Unrecognized tax benefits 598 772 (1,958)
Valuation allowances and write off of tax attributes (167) 236 (50,219)
Executive compensation limitation 1,559 1,159 1,102
Stock 162 538 66
Other (244) (113) (289)
Provision for (benefit from) income taxes $ 10,744 $ (17,537) $ (39,145)
v3.22.0.1
Income Taxes Income Taxes - Deferred Tax Asset (Liability) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Deferred tax assets:      
Net operating loss carryforwards $ 196,654 $ 158,916  
Accrued liabilities 4,527 3,133  
Other 12,503 12,124  
Deferred Tax Assets Gross 213,684 174,173  
Valuation allowances (735) (1,027) $ (822)
Total deferred tax assets 212,949 173,146  
Deferred tax liabilities:      
Property, plant and equipment (7,762) (6,066)  
Basis difference in the Partnership (151,469) (103,721)  
Other (6,975) (7,150)  
Total deferred tax liabilities (166,206) (116,937)  
Net deferred tax asset 46,743 56,209  
Deferred tax assets 47,879 56,934  
Deferred tax liabilities $ 1,136 $ 725  
U.S. statutory tax rate (as a percent) 21.00% 21.00% 21.00%
v3.22.0.1
Income Taxes Income Taxes - Tax Attributes and Valuation Allowances (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating Loss Carryforwards      
Balance at beginning of period, Valuation allowance $ (1,027) $ (822)  
Additions to valuation allowance   (205)  
Reductions to valuation allowance 292   $ 50,800
Balance at end of period, Valuation allowance (735) (1,027) (822)
Deferred tax assets net 212,949 173,146  
Tax benefit from adjustments to valuation allowance     50,200
Increase in deferred tax assets     50,200
Domestic      
Operating Loss Carryforwards      
Operating loss carryforwards 868,500    
Operating loss carryforward not subject to expiration 629,500    
Tax credit carryforward 3,000    
State      
Operating Loss Carryforwards      
Operating loss carryforwards 317,100    
Operating loss carryforward not subject to expiration 167,700    
NOL valuation allowance 700 1,000  
Tax credit carryforward $ 100    
Net Operating Loss Carryforward | State      
Operating Loss Carryforwards      
Additions to valuation allowance     (600)
Continuing Operations      
Operating Loss Carryforwards      
Balance at beginning of period, Valuation allowance   $ (822) (45,439)
Additions to valuation allowance     (580)
Reductions to valuation allowance     45,197
Balance at end of period, Valuation allowance     (822)
Increase in deferred tax assets     44,600
Discontinued Operations.      
Operating Loss Carryforwards      
Balance at beginning of period, Valuation allowance     (5,600)
Reductions to valuation allowance     5,600
Increase in deferred tax assets     $ 5,600
v3.22.0.1
Income Taxes Income Taxes - Unrecognized Tax Benefit Rollforward (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of the unrecognized tax benefit      
Beginning balance $ 18,892 $ 18,453 $ 19,560
Additions based on tax positions related to current year 2,246 2,397 2,227
Additions based on tax positions related to prior years 632   2,047
Reductions based on settlement refunds from government authorities     (4,414)
Reductions based on tax positions related to prior years (138) (73) (51)
Reductions based on lapse of statute of limitations (2,038) (1,885) (916)
Ending balance $ 19,594 $ 18,892 $ 18,453
v3.22.0.1
Income Taxes - Unrecognized Tax Benefit Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income taxes        
Unrecognized tax benefits $ 19,594 $ 18,892 $ 18,453 $ 19,560
Unrecognized tax benefits, Income tax penalties and interest accrued 2,200 2,100 2,100  
Income tax interest and penalty expenses 100 (100) (100)  
Amount refunded     2,400  
Decrease in uncertain tax positions     4,400  
Potential decrease in unrecognized tax benefit 2,600      
Exterran Corporation | Spinoff        
Income taxes        
Indemnification asset, discontinued operations 7,868 7,868    
Continuing Operations        
Income taxes        
Unrecognized tax benefits that would impact tax rate if recognized 2,100 2,900 3,200  
Discontinued Operations.        
Income taxes        
Unrecognized tax benefits that would impact tax rate if recognized $ 7,900 $ 7,900 $ 8,300  
v3.22.0.1
Earnings Per Share - Net Income Attributable to Common Stockholders (Details) - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Summary of net income attributable to Archrock common stockholders used in the calculation of basic and diluted income per common share      
Income (loss) from continuing operations $ 28,217 $ (68,445) $ 97,603
Loss from discontinued operations, net of tax     (273)
Net income (loss) 28,217 (68,445) 97,330
Less: Earnings attributable to participating securities (1,172) (1,338) (1,348)
Net income (loss) attributable to common stockholders, basic 27,045 (69,783) 95,982
Net income (loss) attributable to common stockholders, diluted $ 27,045 $ (69,783) $ 95,982
Potential shares of common stock included in computing diluted income (loss) attributable to Archrock common stockholders      
Weighted average common shares outstanding including participating securities 153,484 152,827 139,317
Less: Weighted average participating securities outstanding (1,800) (1,999) (1,825)
Weighted average common shares outstanding used in basic net income (loss) per common share (in shares) 151,684 150,828 137,492
Weighted average common shares outstanding used in diluted net income (loss) per common share (in shares) 151,830 150,828 137,528
On exercise of options and vesting of performance-based restricted stock units      
Potential shares of common stock included in computing diluted income (loss) attributable to Archrock common stockholders      
Net dilutive potential common shares issuable (in shares) 144   34
On settlement of ESPP shares      
Potential shares of common stock included in computing diluted income (loss) attributable to Archrock common stockholders      
Net dilutive potential common shares issuable (in shares) 2   2
v3.22.0.1
Earnings Per Share - Anti-dilutive Shares (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Anti-dilutive effect of the calculation of net dilutive potential shares of common stock issuable      
Net dilutive potential common shares issuable (shares) 31 167 154
On exercise of options where exercise price is greater than average market value for the period      
Anti-dilutive effect of the calculation of net dilutive potential shares of common stock issuable      
Net dilutive potential common shares issuable (shares) 31 96 154
On exercise of options and vesting of performance-based restricted stock units      
Anti-dilutive effect of the calculation of net dilutive potential shares of common stock issuable      
Net dilutive potential common shares issuable (shares)   54  
On settlement of ESPP shares      
Anti-dilutive effect of the calculation of net dilutive potential shares of common stock issuable      
Net dilutive potential common shares issuable (shares)   17  
v3.22.0.1
Derivatives - Interest Rate Swaps (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2021
USD ($)
Interest Rate Swaps  
Notional Disclosures  
Notional value dedesignated $ 125.0
Fair value of derivative prior to dedesignation $ 1.6
Weighted average effective fixed interest rate on interest rate swaps (as a percent) 1.80%
Derivatives Designated as Hedging Instruments | Interest Rate Swaps  
Notional Disclosures  
Notional amount of interest rate swaps $ 175.0
Deferred pre-tax losses to be reclassified during next 12 months 1.2
Derivatives Designated as Hedging Instruments | Interest rate swap, expiring March 2022  
Notional Disclosures  
Notional amount of interest rate swaps $ 300.0
v3.22.0.1
Derivatives - Effect of Derivative Instruments on Balance Sheets (Details) - Interest Rate Swaps - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Derivatives    
Derivative liabilities $ 1,250 $ 6,337
Derivatives Designated as Hedging Instruments    
Derivatives    
Derivative liabilities 727 6,337
Derivatives Designated as Hedging Instruments | Accrued liabilities    
Derivatives    
Derivative liabilities 727 4,810
Derivatives Designated as Hedging Instruments | Other liabilities    
Derivatives    
Derivative liabilities   $ 1,527
Derivatives Not Designated as Hedging Instruments | Accrued liabilities    
Derivatives    
Derivative liabilities $ 523  
v3.22.0.1
Derivatives - Effect of Derivative Instruments on Statements of Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Effect of derivative instruments on results of operations      
Total amount of interest expense in which the effects of cash flow hedges are recorded $ 108,135 $ 105,716 $ 104,681
Derivatives Designated as Hedging Instruments | Interest Rate Swaps      
Effect of derivative instruments on results of operations      
Pre-tax gain (loss) recognized in other comprehensive income (loss) (1,219) (8,459) (6,785)
Derivatives Designated as Hedging Instruments | Interest Rate Swaps | Interest expense      
Effect of derivative instruments on results of operations      
Pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense (6,308) $ (3,878) $ 2,278
Derivatives Not Designated as Hedging Instruments | Interest Rate Swaps | Interest expense      
Effect of derivative instruments on results of operations      
Gain recognized in interest expense $ 1,088    
v3.22.0.1
Fair Value Measurements - Measured on Recurring Basis (Details) - Recurring Basis - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Fair value measurement of assets and liabilities    
Derivative liabilities $ 1,250 $ 6,337
Derivative Liability, Fair Value by Fair Value Hierarchy Level us-gaap:FairValueInputsLevel2Member us-gaap:FairValueInputsLevel2Member
v3.22.0.1
Fair Value Measurements - Measured on Nonrecurring Basis (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
Dec. 31, 2020
USD ($)
$ / hp
Dec. 31, 2021
USD ($)
Y
$ / hp
Fair value      
Goodwill impairment | $ $ 99,800 $ 99,830  
Level 3 | Impaired Long-Lived Assets | Compressors | Measurement Input, Weighted average disposal period      
Fair value      
Measurement input | Y     4
Level 3 | Impaired Long-Lived Assets | Compressors | Measurement Input, Sale proceeds | Minimum      
Fair value      
Measurement input   0 0
Level 3 | Impaired Long-Lived Assets | Compressors | Measurement Input, Sale proceeds | Maximum      
Fair value      
Measurement input   289 621
Level 3 | Impaired Long-Lived Assets | Compressors | Measurement Input, Sale proceeds | Weighted average      
Fair value      
Measurement input   20 35
Level 3 | Impaired Long-Lived Assets | Compressors | Measurement Input, Discount for market liquidity      
Fair value      
Measurement input   0.81 0.64
Nonrecurring Basis | Level 3 | Impaired Long-Lived Assets | Compressors      
Fair value      
Impaired assets | $   $ 19,046 $ 4,380
v3.22.0.1
Fair Value Measurements - Fair Value of Debt (Details) - Fixed Rate Debt - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Long-term debt, fair value $ 1,361,000 $ 1,371,000
Long-Term Debt, Fair Value by Fair Value Hierarchy Level us-gaap:FairValueInputsLevel2Member us-gaap:FairValueInputsLevel2Member
Carrying Amount    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Long-term debt, fair value $ 1,296,325 $ 1,295,867
v3.22.0.1
Stock-Based Compensation - Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost      
Total stock-based compensation expense $ 10,520 $ 12,072 $ 10,441
Equity awards      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost      
Total stock-based compensation expense 11,336 10,551 8,105
Liability awards      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost      
Total stock-based compensation expense (816) $ 1,521 $ 2,336
Reversal of stock-based compensation expense $ 2,100    
v3.22.0.1
Stock-Based Compensation - Stock Incentive Plans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Stock-based payment awards      
Shares withheld to cover tax withholding (in shares) 283,972 236,752 212,080
Shares withheld to cover tax withholding (in dollars) $ 2,465 $ 1,804 $ 2,007
2020 Plan      
Stock-based payment awards      
Number of shares authorized for issuance 8,500,000    
Reduction in number of shares available for issuance for each stock-settled award granted 1    
v3.22.0.1
Stock-Based Compensation - Restricted Stock, Restricted Stock Units, and Performance Units Narrative (Details)
 12 Months Ended
Dec. 31, 2021
Restricted stock | First anniversary vesting  
Stock-based payment awards  
Vesting percentage 33.33%
Vesting period 1 year
Restricted stock | Second anniversary vesting  
Stock-based payment awards  
Vesting percentage 33.33%
Vesting period 1 year
Restricted stock | Third anniversary vesting  
Stock-based payment awards  
Vesting percentage 33.33%
Vesting period 1 year
Performance-based restricted stock units  
Stock-based payment awards  
Vesting period 3 years
Dividend yield (as a percent) 0.00%
Performance-based restricted stock units, Market conditions  
Stock-based payment awards  
Performance period 3 years
v3.22.0.1
Stock-Based Compensation - Restricted Stock, Restricted Stock Units, and Performance Units Measurement Inputs (Details) - $ / shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Performance-based restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology      
Remaining performance period as of grant date (in years) 2 years 9 months 18 days 2 years 10 months 24 days 2 years 10 months 24 days
Risk-free interest rate (as a percent) 0.30% 1.40% 2.60%
Grant-date fair value (in dollars per share) $ 14.30 $ 11.33 $ 12.91
Restricted Stock, Restricted Stock Units, Performance Units, Cash Settled Restricted Stock Units and Cash Settled Performance Units      
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology      
Grant-date fair value (in dollars per share) $ 11.20 $ 9.37 $ 10.01
v3.22.0.1
Stock-Based Compensation - Restricted Stock, Restricted Stock Units, and Performance Units Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Restricted Stock, Restricted Stock Units, Performance Units, Cash Settled Restricted Stock Units and Cash Settled Performance Units      
Shares      
Non-vested awards at beginning of period (in shares) 2,446    
Granted (in shares) 1,288    
Vested (in shares) (1,075)    
Canceled (in shares) (81)    
Non-vested awards at end of period (in shares) 2,578 2,446  
Weighted Average Grant Date Fair Value Per Share      
Non-vested awards at beginning of period (in dollars per share) $ 9.69    
Granted (in dollars per share) 11.20 $ 9.37 $ 10.01
Vested (in dollars per share) 9.91    
Canceled (in dollars per share) 9.85    
Non-vested awards at end of period (in dollars per share) $ 10.35 $ 9.69  
Fair value of vested shares (in dollars) $ 9.1 $ 7.1 $ 9.0
Cash-settled units      
Shares      
Non-vested awards at end of period (in shares) 523    
Stock-settled awards and units      
Shares      
Non-vested awards at end of period (in shares) 2,055    
v3.22.0.1
Stock-Based Compensation - Restricted Stock, Restricted Stock Units, and Performance Units Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Restricted Stock, Restricted Stock Units, Performance Units, Cash Settled Restricted Stock Units and Cash Settled Performance Units      
Unrecognized compensation      
Unrecognized compensation cost related to unvested awards (in dollars) $ 12.6    
Cash-settled restricted stock units      
Unrecognized compensation      
Payments for vested cash-settled shares $ 0.6 $ 0.5 $ 1.3
Restricted Stock Shares, Restricted Stock Units and Performance Units      
Unrecognized compensation      
Weighted-average period over which the expected unrecognized compensation cost related to unvested stock options will be recognized 1 year 9 months 18 days    
v3.22.0.1
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan
 12 Months Ended
Dec. 31, 2021
USD ($)
shares
Stock-based payment awards  
Maximum annual contribution per employee | $ $ 25,000
Maximum annual contribution per employee (as a percent) 10.00%
Number of shares authorized for issuance 1,000,000
Remaining shares available for purchase 521,719
Purchase discount rate 5.00%
Minimum  
Stock-based payment awards  
Purchase price of shares (as a percent of fair market value) 85.00%
Maximum  
Stock-based payment awards  
Purchase price of shares (as a percent of fair market value) 100.00%
v3.22.0.1
Stock-Based Compensation - Directors' Stock and Deferral Plan (Details) - Directors Stock And Deferral Plan
Dec. 31, 2021
shares
Stock-based payment awards  
Number of shares authorized for issuance 100,000
Remaining shares available for purchase 37,771
v3.22.0.1
Retirement Benefit Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Retirement Benefit Plan      
Employer percentage match of employees contribution 100.00%    
Employer maximum contribution as a percentage of gross pay 5.00%    
Employer matching contributions for retirement plan (in dollars) $ 4.4 $ 5.6 $ 6.8
v3.22.0.1
Commitments and Contingencies - Tax Matters - Loss contingencies (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Non-income based tax audits    
Loss Contingencies    
Accrued liability for the outcomes of non-income based tax audits $ 5.8 $ 5.6
Non-income based tax audits in contested hearing phase    
Loss Contingencies    
Accrued liability for the outcomes of non-income based tax audits 0.6 0.9
Non-income based tax audits being managed by Exterran Corporation    
Loss Contingencies    
Accrued liability for the outcomes of non-income based tax audits $ 0.0 $ 1.6
v3.22.0.1
Commitments and Contingencies - Tax Matters - Sales and use tax (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Dec. 31, 2021
Contingencies      
Net benefit recorded from sales and use tax audit   $ 12.4  
Sales and use tax refund $ 17.3    
Accrued liability related to sales and use tax audit settlement     $ 2.0
Cost of sales excluding depreciation and amortization      
Contingencies      
Net benefit recorded from sales and use tax audit   4.4  
SG&A      
Contingencies      
Net benefit recorded from sales and use tax audit   $ 7.9  
v3.22.0.1
Related Party Transactions (Details)
shares in Millions, $ in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2019
shares
Dec. 31, 2021
USD ($)
director
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
JDH Capital and affiliates of Hilcorp        
Related Party Transaction        
Number of directors shareholders have right to designate | director   1    
Affiliated Entity | JDH Capital | Archrock, Inc.        
Related Party Transaction        
Ownership interest (percent)   11.10%    
Affiliated Entity | JDH Capital | Elite Acquisition | Common Stock        
Related Party Transaction        
Minimum ownership interest of outstanding shares required to elect a board of director (percent)   7.50%    
Affiliated Entity | Jeffery D. Hildebrand | Director        
Related Party Transaction        
Compensation paid by entity to individual in role as Director     $ 0.0 $ 0.0
Affiliated Entity | Jason C. Rebrook | Director        
Related Party Transaction        
Compensation paid by entity to individual in role as Director     0.0  
Affiliated Entity | Hilcorp and affiliates        
Related Party Transaction        
Revenue from related party transactions   $ 38.2 40.3 $ 31.4
Due from related party   $ 3.7 $ 3.9  
Elite Acquisition | Common Stock        
Related Party Transaction        
Shares issued as compensation for asset acquisition (shares) | shares 21.7      
Elite Acquisition | Affiliated Entity | JDH Capital | Common Stock        
Related Party Transaction        
Shares issued as compensation for asset acquisition (shares) | shares 21.7      
v3.22.0.1
Segments - Number (Details)
 12 Months Ended
Dec. 31, 2021
segment
Segments  
Number of reportable segments 2
v3.22.0.1
Segments - Revenue and Gross Margin by Reportable Segment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenue and other financial information by reportable segment      
Revenue $ 781,461 $ 874,970 $ 965,485
Gross margin 422,544 497,777 509,247
Capital expenditures 97,885 140,302 385,198
Contract Operations      
Revenue and other financial information by reportable segment      
Revenue 648,311 738,918 771,539
Gross margin 403,825 477,831 474,279
Aftermarket Services      
Revenue and other financial information by reportable segment      
Revenue 133,150 136,052 193,946
Gross margin 18,719 19,946 34,968
Operating | Contract Operations      
Revenue and other financial information by reportable segment      
Capital expenditures 94,863 133,492 374,650
Operating | Aftermarket Services      
Revenue and other financial information by reportable segment      
Capital expenditures 2,675 5,308 8,714
Corporate      
Revenue and other financial information by reportable segment      
Capital expenditures $ 347 $ 1,502 $ 1,834
v3.22.0.1
Segments - Reconciliation of Segment Assets to Total Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Segments    
Assets $ 2,589,966 $ 2,779,722
Assets associated with discontinued operations 9,811 11,036
Operating    
Segments    
Assets 2,479,225 2,639,849
Operating | Contract Operations    
Segments    
Assets 2,429,805 2,593,864
Operating | Aftermarket Services    
Segments    
Assets 49,420 45,985
Corporate    
Segments    
Assets $ 100,930 $ 128,837
v3.22.0.1
Segments - Reconciliation of Net Income to Gross Margin (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation Net Income (Loss) to Gross Margin        
Total gross margin   $ 422,544 $ 497,777 $ 509,247
Less:        
Selling, general and administrative   107,167 105,100 117,727
Depreciation and amortization   178,946 193,138 188,084
Long-lived and other asset impairment   21,397 79,556 44,663
Goodwill impairment $ 99,800   99,830  
Restatement and other charges       445
Restructuring charges   2,903 8,450  
Interest expense   108,135 105,716 104,681
Debt extinguishment loss     3,971 3,653
Transaction-related costs       8,213
(Gain) loss on sale of assets, net   (30,258) (10,643) (16,016)
Other (income) expense, net   (4,707) (1,359) (661)
Income (loss) before income taxes   $ 38,961 $ (85,982) $ 58,458
v3.22.0.1
Impact of Hurricane (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Natural disaster          
Depreciation expense     $ 167.6 $ 177.5 $ 172.8
Hurricane Ida          
Natural disaster          
Depreciation expense   $ 2.0      
Insurance recovery $ 2.8        
Insurance deductible 0.9        
Insurance recovery receivable $ 2.8   $ 2.8