Home
Jump to Risk Factors
Jump to Industries
Jump to Exposures
Jump to Event Codes
Jump to Wiki Summary

Industries
Oil and Gas Drilling
Independent Power Producers and Energy Traders
Oil and Gas Exploration and Production
Environmental Services
Technology Hardware Storage and Peripherals
Information Technology
Technology Hardware and Equipment
Health Care Facilities

Exposures
Military
Economic
Express intent
Intelligence
Judicial
Political reform

Event Codes
Solicit support
Warn
Yield to order
Riot
Sports contest
Host meeting
Psychological state
Acknowledge responsibility
Natural disaster
Yield
Censorship

Wiki	Wiki Summary
Arithmetic	Arithmetic (from Ancient Greek ἀριθμός (arithmós) 'number', and τική [τέχνη] (tikḗ [tékhnē]) 'art, craft') is an elementary part of mathematics that consists of the study of the properties of the traditional operations on numbers—addition, subtraction, multiplication, division, exponentiation, and extraction of roots. In the 19th century, Italian mathematician Giuseppe Peano formalized arithmetic with his Peano axioms, which are highly important to the field of mathematical logic today.
Operations research	Operations research (British English: operational research), often shortened to the initialism OR, is a discipline that deals with the development and application of advanced analytical methods to improve decision-making. It is sometimes considered to be a subfield of mathematical sciences.
Financial condition report	In accounting, a financial condition report (FCR) is a report on the solvency condition of an insurance company that takes into account both the current financial status, as reflected in the balance sheet, and an assessment of the ability of the company to survive future risk scenarios. Risk assessment in an FCR involves dynamic solvency testing, a type of dynamic financial analysis that simulates management response to risk scenarios, to test whether a company could remain solvent in the face of deteriorating economic conditions or major disasters.
Financial statement	Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity.\nRelevant financial information is presented in a structured manner and in a form which is easy to understand.
Financial ratio	A financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.
Trustmark (bank)	Trustmark is a commercial bank and financial services company headquartered in Jackson, Mississippi, United States, with subsidiaries Trustmark National Bank, Trustmark Investment Advisors, and Fisher Brown Bottrell Insurance. The bank's initial predecessor, The Jackson Bank, was chartered by the State of Mississippi in 1889.
Financial analysis	Financial analysis (also referred to as financial statement analysis or accounting analysis or Analysis of finance) refers to an assessment of the viability, stability, and profitability of a business, sub-business or project. \nIt is performed by professionals who prepare reports using ratios and other techniques, that make use of information taken from financial statements and other reports.
Form 10-K	A Form 10-K is an annual report required by the U.S. Securities and Exchange Commission (SEC), that gives a comprehensive summary of a company's financial performance. Although similarly named, the annual report on Form 10-K is distinct from the often glossy "annual report to shareholders," which a company must send to its shareholders when it holds an annual meeting to elect directors (though some companies combine the annual report and the 10-K into one document).
Yoda conditions	In programming jargon, Yoda conditions (also called Yoda notation) is a programming style where the two parts of an expression are reversed from the typical order in a conditional statement. A Yoda condition places the constant portion of the expression on the left side of the conditional statement.
Dirichlet conditions	In mathematics, the Dirichlet conditions are sufficient conditions for a real-valued, periodic function f to be equal to the sum of its Fourier series at each point where f is continuous. Moreover, the behavior of the Fourier series at points of discontinuity is determined as well (it is the midpoint of the values of the discontinuity).
Wolfe conditions	In the unconstrained minimization problem, the Wolfe conditions are a set of inequalities for performing inexact line search, especially in quasi-Newton methods, first published by Philip Wolfe in 1969.In these methods the idea is to find\n\n \n \n \n \n min\n \n x\n \n \n f\n (\n \n x\n \n )\n \n \n {\displaystyle \min _{x}f(\mathbf {x} )}\n for some smooth \n \n \n \n f\n :\n \n \n R\n \n \n n\n \n \n →\n \n R\n \n \n \n {\displaystyle f\colon \mathbb {R} ^{n}\to \mathbb {R} }\n . Each step often involves approximately solving the subproblem\n\n \n \n \n \n min\n \n α\n \n \n f\n (\n \n \n x\n \n \n k\n \n \n +\n α\n \n \n p\n \n \n k\n \n \n )\n \n \n {\displaystyle \min _{\alpha }f(\mathbf {x} _{k}+\alpha \mathbf {p} _{k})}\n where \n \n \n \n \n \n x\n \n \n k\n \n \n \n \n {\displaystyle \mathbf {x} _{k}}\n is the current best guess, \n \n \n \n \n \n p\n \n \n k\n \n \n ∈\n \n \n R\n \n \n n\n \n \n \n \n {\displaystyle \mathbf {p} _{k}\in \mathbb {R} ^{n}}\n is a search direction, and \n \n \n \n α\n ∈\n \n R\n \n \n \n {\displaystyle \alpha \in \mathbb {R} }\n is the step length.
Equity (finance)	In finance, equity is ownership of assets that may have debts or other liabilities attached to them. Equity is measured for accounting purposes by subtracting liabilities from the value of the assets.
Manufacturing	Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy.
History of private equity and venture capital	The history of private equity and venture capital and the development of these asset classes has occurred through a series of boom-and-bust cycles since the middle of the 20th century. Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital experienced growth along parallel, although interrelated tracks.
Financial accounting	Financial accounting is the field of accounting concerned with the summary, analysis and reporting of financial transactions related to a business. This involves the preparation of financial statements available for public use.
Leverage (finance)	In finance, leverage (or gearing in the United Kingdom and Australia) is any technique involving borrowing funds to buy things, hoping that future profits will be many times more than the cost of borrowing. This technique is named after a lever in physics, which amplifies a small input force into a greater output force, because successful leverage amplifies the comparatively small amount of money needed for borrowing into large amounts of profit.
Ivor Montagu	Ivor Goldsmid Samuel Montagu (23 April 1904, in Kensington, London – 5 November 1984, in Watford) was an English filmmaker, screenwriter, producer, film critic, writer, table tennis player, and Communist activist in the 1930s. He helped to develop a lively intellectual film culture in Britain during the interwar years, and was also the founder of the International Table Tennis Federation.
The Day the Music Died	On February 3, 1959, American rock and roll musicians Buddy Holly, Ritchie Valens, and "The Big Bopper" J. P. Richardson were killed in a plane crash near Clear Lake, Iowa, together with pilot Roger Peterson. The event later became known as "The Day the Music Died" after singer-songwriter Don McLean referred to it as such in his 1971 song "American Pie".
Manufacturing cost	Manufacturing cost is the sum of costs of all resources consumed in the process of making a product. The manufacturing cost is classified into three categories: direct materials cost, direct labor cost and manufacturing overhead.
Manufacturing engineering	Manufacturing engineering is a branch of professional engineering that shares many common concepts and ideas with other fields of engineering such as mechanical, chemical, electrical, and industrial engineering. \nManufacturing engineering requires the ability to plan the practices of manufacturing; to research and to develop tools, processes, machines and equipment; and to integrate the facilities and systems for producing quality products with the optimum expenditure of capital.The manufacturing or production engineer's primary focus is to turn raw material into an updated or new product in the most effective, efficient & economic way possible.
Murata Manufacturing	Murata Manufacturing Co., Ltd. (株式会社村田製作所, Kabushiki-gaisha Murata Seisakusho) is a Japanese manufacturer of electronic components, based in Nagaokakyo, Kyoto.
Textile manufacturing	Textile manufacturing is a major industry. It is largely based on the conversion of fibre into yarn, then yarn into fabric.
Disruptive innovation	In business theory, disruptive innovation is innovation that creates a new market and value network or enters at the bottom of an existing market and eventually displaces established market-leading firms, products, and alliances. The concept was developed by the American academic Clayton Christensen and his collaborators beginning in 1995, and has been called the most influential business idea of the early 21st century.
Substantial disruption	The substantial disruption test is a criterion set forth by the United States Supreme Court, in the leading case of Tinker v. Des Moines Independent Community School District, 393 U.S. 503 (1969).
Endocrine disruptor	Endocrine disruptors, sometimes also referred to as hormonally active agents, endocrine disrupting chemicals, or endocrine disrupting compounds are chemicals that can interfere with endocrine (or hormonal) systems. These disruptions can cause cancerous tumors, birth defects, and other developmental disorders.
The Disrupt	Disrupt was an American crust punk band from Lynn, Massachusetts that was active from 1987 to 1993. The lineup was Jay Stiles and Pete Kamarinos (vocals), Chris Drake (guitar), Harry Haralabatos (drums), Tony Leone (bass).
Disruptor (software)	Disruptor is a library for the Java programming language that provides a concurrent ring buffer data structure of the same name, developed at LMAX Exchange. It is designed to provide a low-latency, high-throughput work queue in asynchronous event processing architectures.
Competition	Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, individuals, economic and social groups, etc.
Regulation	Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context.
Regulation A	In the United States under the Securities Act of 1933, any offer to sell securities must either be registered with the United States Securities and Exchange Commission (SEC) or meet certain qualifications to exempt it from such registration. Regulation A (or Reg A) contains rules providing exemptions from the registration requirements, allowing some companies to use equity crowdfunding to offer and sell their securities without having to register the securities with the SEC. Regulation A offerings are intended to make access to capital possible for small and medium-sized companies that could not otherwise bear the costs of a normal SEC registration and to allow nonaccredited investors to participate in the offering.

Risk Factors
GRANT PRIDECO INC Item 1A Risk Factors Risk Factors and Exposures The businesses in which we operate are subject to various risks and uncertainties that could have adverse consequences on our results of operations and financial condition and that could cause actual results to be materially different from projected results contained in the forward-looking statements in this report and in our other disclosures
Investors should carefully consider these risks and uncertainties when evaluating our company and the forward-looking statements that we make
These risks and uncertainties include, but are not limited to, the following: A decline in domestic and worldwide oil and gas drilling activity would adversely affect our results of operations
Our forward-looking statements and projections of future results assume increasing demand and prices for our products and services
However, our businesses are materially dependent on the level of oil and gas drilling activity in North America and worldwide, which in turn depends on the level of capital spending by major, independent and state-owned exploration and production companies
This capital spending is driven by current prices for oil and gas and the perceived stability and sustainability of those prices
Oil and gas prices have been subject to significant fluctuation in recent years in response to changes in the supply and demand for oil and gas, market uncertainty, world events, governmental actions and a variety of additional factors that are beyond our control, including: • the level of North American and worldwide oil and gas exploration and production activity; • worldwide economic conditions, particularly economic conditions in North America; • oil and gas production costs; • the expected costs of developing new reserves; • national government political requirements and the policies of the OPEC; • the price and availability of alternative fuels; • environmental regulation; and • tax policies
Decreased demand for our products results not only from periods of lower drilling activity, but also from the resulting build up of customer inventory of drill pipe associated with idle rigs, which can be used on active rigs in lieu of new purchases
The time period during which drill pipe inventory is used is a function of the number of rigs actively drilling and the expected level of drilling activity
A decrease in the number of rigs actively drilling results in a large amount of unused drill pipe on idle rigs and a decrease in demand for new drill pipe
An economic downturn could adversely affect demand for our products and services and our results of operations
The US and worldwide economies have been very volatile, and their future directions are uncertain
If North American or international economies decline unexpectedly, our results of operations, stockholders’ equity, cash flows and financial condition could be materially adversely affected
10 _________________________________________________________________ [76]Table of Contents Increases in the prices of our raw materials could affect our results of operations
We use large amounts of steel and alloy tubulars and bars in the manufacture of our products
The price of steel and these alloy raw materials has a significant impact on our cost of producing products
If we are unable to pass future raw material price increases on to our customers, our margins and results of operations, stockholders’ equity, cash flows and financial condition could be adversely affected
Steel and alloy prices have increased significantly during the past several years, caused primarily by significant increases in the prices paid by our suppliers for scrap and coke and alloys utilized in their operations
In addition, rising alloy and steel costs also have the potential to delay increases in demand for our drill stem components and premium casing products
As drill stem products are not consumables, our customers could elect to defer purchases until such time as they determine that steel prices have stabilized or returned to more normalized conditions
Our forward-looking statements do not assume that there will be any reduced demand for our drill stem products or premium casing as a result of increased prices caused by the current shortages being experienced in the worldwide steel and alloy markets
Reduced demand could adversely affect our results of operations, stockholders’ equity, cash flows and financial condition
Interruptions of supply of raw materials could materially adversely affect our results of operations
We rely on various suppliers to supply the components utilized to manufacture our drilling products and premium casing
The availability of the raw materials is not only a function of the availability of steel, but also the alloy materials that are utilized by our suppliers in manufacturing tubulars that meet our proprietary chemistries
Currently, there is a worldwide shortage of scrap, coke and alloys that has caused raw material prices to increase for steel tubulars, billets and bars utilized in our manufacturing operations
To date, these shortages have not caused a material disruption in availability or our manufacturing operations, however, there can be no assurance that material disruptions could not occur in the future
If material disruptions to raw materials availability occur, it could adversely affect our results of operations, stockholders’ equity, cash flows and financial condition and our ability to increase our manufacturing operations to meet the increased revenues upon which our forward-looking statements are based
Due to intense competition in our industry, our revenues may decline if we do not develop, produce and commercialize new competitive technologies and products or if we are unable to adequately protect our current and future intellectual property rights relating to our technologies and products
The markets for our premium products and services are characterized by continual developments
Substantial improvements in the scope and quality of product function and performance can occur over a short period of time
In order to remain competitive, we must be able to develop commercially competitive products in a timely manner in response to changes in technology
Our ability to develop new products and maintain competitive advantages depends on our ability to design and commercially market products that meet the needs of our customers, including delivery schedules and product specifications
Additionally, the time and expense invested in product development may not result in commercially feasible applications that provide revenues
We could be required to write-off our entire investment in a new product that does not reach commercial viability
Moreover, we may experience operating losses after new products are introduced and commercialized because of high start-up costs, unexpected manufacturing costs or problems or lack of demand
Many of our products and the processes we use to manufacture them have been granted US and international patent protection, or have patent applications pending
Nevertheless, patents may not be granted for our applications and, if patents are issued, the claims allowed may not be sufficient to protect our technology
If our patents are not enforceable, or if any of our products infringe patents held by others, our financial results may be adversely affected
Our competitors may be able to independently develop technology that is similar to ours without infringing on our patents, which is especially true internationally where the protection of intellectual property rights may not be as effective
In addition, obtaining and maintaining 11 _________________________________________________________________ [77]Table of Contents intellectual property protection internationally may be significantly more expensive than doing so domestically
We may have to spend substantial time and money defending our patents and, after our patents expire, our competitors will not be legally constrained from developing products substantially similar to ours
Our results of operations and financial condition are dependent upon our ability to successfully increase and decrease, without material disruption, our manufacturing capacity and expense in response to changes in demand and to maintain prices for our products, which can be adversely affected by changes in industry conditions and competitive forces
Our projections assume increasing demand for our products and services during 2006
As a result, we are in the process of increasing our production capacity to meet this increased demand
Our forward-looking statements assume we can increase this capacity with minimal operational disruption and inefficiencies
If this does not happen, or we experience unexpected difficulties in this regard, our results of operations, stockholders’ equity, cash flows and financial condition during this ramp-up could be adversely affected
Our results of operations can be adversely affected by adverse weather conditions and unexpected stoppages in production
Our projections assume that there will not be any adverse effects in demand for our products or our production capacity from unexpected weather conditions such as hurricanes and other natural disasters
In addition, our forward-looking statements assume that we will not experience any material failures in our manufacturing equipment that would reduce our manufacturing capacity and efficiencies
If such unexpected weather conditions or disruptions in operations occur, they could have a material adverse effect on our results of operations, stockholders’ equity, cash flows and financial condition
Our international operations may experience severe interruptions due to political, economic or other risks, which could adversely affect our results of operations and financial condition
For the year ended December 31, 2005, we derived approximately 36prca of our total revenues from our facilities outside the United States
In addition, a large part of sales from our domestic locations were for use in foreign countries
In addition, many of our key manufacturing operations are outside of the United States, including Mexico, Italy, United Kingdom, China, Indonesia and Singapore
Our operations in certain international locations are subject to various political and economic conditions existing in those countries that could disrupt operations
These risks include: • changes in foreign tax laws; • changes in regulations and labor practices; • currency fluctuations and devaluations; • currency restrictions, banking crises and limitations on repatriation of profits; and • political instability or military conflict
Our foreign operations may suffer disruptions, and we may incur losses that will not be covered by insurance
We have not historically carried political risk insurance
In particular, terrorist attacks and other threats to US national security and resulting US military activity throughout the world increase the possibility that our operations could be interrupted or adversely affected
Such disruption could result in our inability to ship products in a timely and cost-effective manner or our inability to place contractors and employees in various countries or regions
Any material currency fluctuations or devaluations, or political events that disrupt oil and gas exploration and production or the movement of funds and assets could materially adversely affect our results of operations, stockholders’ equity, cash flows and financial condition
We manufacture and sell drill pipe locally through our Chinese operations
As is customary in this country, our Chinese operations may settle receivables and payables through bearer bonds and notes
At 12 _________________________________________________________________ [78]Table of Contents December 31, 2005, we were not holding any such notes
To date, our Chinese operations have not experienced significant losses as a result of such practice; however, there can be no assurance that such losses could not occur in the future
Any such losses could have a materially adverse affect on our results of operations, stockholders’ equity, cash flows and financial condition in the period in which they occur
We have an agreement with VAT, an entity of which we own 50dtta01prca, to purchase green tubulars through September 2007
Our future results could be adversely affected if we are unable to use or resell these tubulars
In addition, we have agreed to be responsible for paying any “anti-dumping” duties in the United States on the resale of these tubulars, which could affect our ability to resell the tubulars in the United States
Further, our long-term supply contract with VAT is denominated in Euros
We have no significant offset for revenues in Euros and we have not hedged for currency risk with respect to this contract
Thus, a material long-term strengthening of the Euro versus the US dollar could materially adversely affect our results of operations, stockholders’ equity, cash flows and financial condition
In connection with our business operations, we could be subject to substantial liability claims that adversely affect our results of operations
Our products are complex and the failure of this equipment to operate properly or to meet specifications may greatly increase our customers’ costs of drilling a well
In addition, many of these products are used in hazardous drilling and production applications where an accident or product failure can cause personal injury or loss of life; damage to property, equipment or the environment; regulatory investigations and penalties; and the suspension of the end-user’s operations
If our products or services fail to meet specifications or are involved in accidents or failures, we could face warranty, contract or other litigation claims for which we may be held responsible and our reputation for providing quality products may suffer
Our insurance may not be adequate in risk coverage or policy limits to cover all losses or liabilities that we may incur or for which we may be responsible
Moreover, in the future we may not be able to maintain insurance at levels of risk coverage or policy limits that we deem adequate or at premiums that are reasonable for us, particularly in the recent environment of significant insurance premium increases
Any future damages deemed to be caused by our products or services that are assessed against us and that are not covered by insurance, or that are in excess of policy limits or subject to substantial deductibles, could have a material adverse effect on our results of operations and financial condition
Litigation and claims for which we are not insured can occur, including employee claims, intellectual property claims, breach of contract claims and warranty claims
Our forward-looking statements assume that such uninsured claims or issues will not occur
We account for warranty reserves on a specific identification basis
As a result, a significant unexpected warranty issue during a particular quarter or year could cause a material reduction in our results of operations, stockholders’ equity, cash flows and financial condition in the quarter or year in which the reserve for such warranty is made
We are subject to environmental, health and safety laws and regulations that expose us to potential financial liability
Our operations are regulated under a number of federal, state, local and foreign environmental laws and regulations, which govern, among other things, the discharge of hazardous materials into the air and water, as well as the handling, storage and disposal of hazardous materials and the remediation of contaminated sites
Compliance with these environmental laws is a major consideration in the manufacturing of our products
Because we use and generate hazardous substances and wastes in our manufacturing operations, we may be subject to material financial liability for any investigation and clean up of such hazardous materials, and any related personal injury damages or toxic tort claims
We have not historically carried insurance for such matters
In addition, many of our current and former properties are or have been used for industrial purposes
Accordingly, we also may be subject to financial liabilities relating to the investigation and remediation of hazardous materials resulting from the action of previous owners or operators of industrial facilities on those 13 _________________________________________________________________ [79]Table of Contents sites
Liability in many instances may be imposed on us regardless of the legality of the original actions relating to the hazardous or toxic substances or whether or not we knew of, or were responsible for, the presence of those substances
We are also subject to various federal, state, local and foreign laws and regulations relating to safety and health conditions in our manufacturing facilities
Those laws and regulations may subject us to material financial penalties or liabilities for any noncompliance, as well as potential business disruption if any of our facilities or a portion of any facility is required to be temporarily closed as a result of any violation of those laws and regulations
Any such financial liability or business disruption could have a material adverse effect on our results of operations, stockholders’ equity, cash flows and financial condition
Our results of operations could be adversely affected by actions under US trade laws and new foreign entrants into US markets
Although we are a US-based manufacturing company, we do own and operate international manufacturing operations that support our US-based business
If actions under US trade laws were instituted that limited our access to these products, our ability to meet our customer specifications and delivery requirements would be reduced
Any adverse effects on our ability to import products from our foreign subsidiaries could have a material adverse effect on our results of operations, stockholders’ equity, cash flows and financial condition
Additionally, foreign producers of tubular goods have been found to have sold their products, which may include premium connections, for export to the United States at prices that are lower than the cost of production, or their prices in their home market, or a major third-country market
Anti-dumping orders restricting the manner and price at which tubular goods from certain countries can be imported are currently in effect
If such orders are revoked or changed, we could be exposed to increased competition from imports that could reduce our sales and market share
In addition, the premium connections market served by our Atlas Bradford product line is highly competitive
The level of competition could further increase if foreign steel mills, with their own lines of internationally accepted premium connections, more successfully penetrate the US market, which could adversely affect our results of operations, stockholders’ equity, cash flows and financial condition