Segments |
22. 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. | | | | | | | | | | | | Contract | | Aftermarket | | | | (in thousands) | | Operations | | Services | | Total | Three months ended June 30, 2021 | | | | | | | | | | Revenue | | $ | 163,865 | | $ | 31,750 | | $ | 195,615 | Gross margin | | | 102,478 | | | 4,260 | | | 106,738 | | | | | | | | | | | Three months ended June 30, 2020 | | | | | | | | | | Revenue | | $ | 187,949 | | $ | 32,367 | | $ | 220,316 | Gross margin | | | 124,559 | | | 3,681 | | | 128,240 | | | | | | | | | | | Six months ended June 30, 2021 | | | | | | | | | | Revenue | | $ | 329,899 | | $ | 61,147 | | $ | 391,046 | Gross margin | | | 207,147 | | | 7,874 | | | 215,021 | | | | | | | | | | | Six months ended June 30, 2020 | | | | | | | | | | Revenue | | $ | 394,923 | | $ | 75,090 | | $ | 470,013 | Gross margin | | | 252,882 | | | 11,413 | | | 264,295 |
The following table reconciles total gross margin to income (loss) before income taxes: | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | (in thousands) | | 2021 | | 2020 | | 2021 | | 2020 | Total gross margin | | $ | 106,738 | | $ | 128,240 | | $ | 215,021 | | $ | 264,295 | Less: | | | | | | | | | | | | | Selling, general and administrative | | | 26,077 | | | 28,745 | | | 51,161 | | | 59,371 | Depreciation and amortization | | | 44,193 | | | 48,849 | | | 89,905 | | | 98,671 | Long-lived and other asset impairment | | | 2,960 | | | 55,210 | | | 10,033 | | | 61,405 | Goodwill impairment | | | — | | | — | | | — | | | 99,830 | Restructuring charges | | | 743 | | | 2,408 | | | 1,640 | | | 4,136 | Interest expense | | | 25,958 | | | 25,778 | | | 57,203 | | | 55,443 | Debt extinguishment loss | | | — | | | 3,971 | | | — | | | 3,971 | (Gain) loss on sale of assets, net | | | (3,124) | | | 2,189 | | | (14,156) | | | (1,927) | Other income, net | | | (82) | | | (438) | | | (1,971) | | | (993) | Income (loss) before income taxes | | $ | 10,013 | | $ | (38,472) | | $ | 21,206 | | $ | (115,612) |
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