10.

Segment Information

The Company reports net revenues from operating income by reportable segment. Reportable segments are components of the Company for which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company provides similar merchandising and marketing services throughout the world, operating within

two

reportable segments, its Domestic Division and its International Division. The Company uses those divisions to improve its administration and operational and strategic focuses, and it tracks and reports certain financial information separately for each of those divisions. The Company measures the performance of its Domestic and International Divisions and subsidiaries using the same metrics. The primary measurement utilized by management is operating profits, historically the key indicator of long-term growth and profitability, as the Company is focused on reinvesting the operating profits of each of its international subsidiaries back into its local markets in an effort to improve market share and continued expansion efforts.

The accounting policies of each of the reportable segments are the same as those described in the Summary of Significant Accounting Policies. Management evaluates performance as follows (in thousands):

	Three Months Ended March 31,
	201 7			201 6
Revenue:
United States	$	11,321		$	9,752
International		28,565			16,859
Total revenue	$	39,886		$	26,611

Operating income (loss):
United States	$	64		$	(297	)
International		421			465
Total operating income	$	485		$	168

Interest (income) expense:
United States	$	51		$	24
International		(97	)		4
Total interest (income) expense	$	(46	)	$	28

Other income, net:
United States	$	–		$	–
International		(62	)		(24	)
Total other income, net	$	(62	)	$	(24	)

Income before income tax expense:
United States	$	13		$	(321	)
International		580			485
Total income before income tax expense	$	593		$	164

Income tax expense:
United States	$	249		$	(211	)
International		170			216
Total income tax expense	$	419		$	5

Net income:
United States	$	(236	)	$	(110	)
International		410			269
Total net income	$	174		$	159


Net income attributable to non-controlling interest:
United States	$	(26	)	$	(39	)
International		(392	)		(259	)
Total net income attributable to non-controlling interest	$	(418	)	$	(298	)

Net (loss) income attributable to SPAR Group, Inc.:
United States	$	(262	)	$	(149	)
International		18			10
Total net (loss) income attributable to SPAR Group, Inc.	$	(244	)	$	(139	)

Depreciation and amortization:
United States	$	340		$	343
International		165			145
Total depreciation and amortization	$	505		$	488

Capital expenditures:
United States	$	266		$	245
International		94			127
Total capital expenditures	$	360		$	372

Note: There were no inter-company sales for the three months ended March 31, 2017 or 2016.

	March 31,		December 31,
	201 7		201 6
Assets:
United States	$	19,313	$	22,189
International		32,738		32,662
Total assets	$	52,051	$	54,851

Geographic Data

(in thousands)

	Three Months Ended March 31 ,
	20 17				2016
International revenue:			% of consolidated net revenue				% of consolidated net revenue
Brazil	$	9,943		24.9%	$	–		–%
South Africa		6,027		15.1		4,214		15.8
Mexico		4,688		11.8		4,999		18.8
China		2,408		6.0		2,735		10.3
Japan		1,709		4.3		1,593		6.0
India		1,612		4.0		1,304		4.9
Canada		1,303		3.3		1,258		4.7
Australia		810		2.0		659		2.5
Turkey		65		0.2		97		0.4
Total international revenue	$	28,565		71.6%	$	16,859		63.4%

	March 31,		December 31,
	20 17		20 16
Long lived assets:
United States	$	8,526	$	8,594
International		4,593		3,965
Total long lived assets	$	13,119	$	12,559