NOTE 15 SEGMENT INFORMATION

We operate principally in the contract drilling industry. The contract drilling operations consist mainly of contracting Company-owned drilling equipment primarily to large oil and gas exploration companies. Our contract drilling business includes the following reportable operating segments: U.S. Land, Offshore and International Land. Each reportable operating segment is a strategic business unit that is managed separately. Our primary international areas of operation include Argentina, Bahrain, Colombia, U.A.E. and other South American and Middle Eastern countries. Other includes additional non-reportable operating segments. Revenues included in Other consist of rental income as well as technology services provided for directional drilling process. Consolidated revenues and expenses reflect the elimination of all material intercompany transactions.

We evaluate segment performance based on income or loss from continuing operations (segment operating income) before income taxes which includes:

revenues from external and internal customers

direct operating costs

depreciation and

allocated general and administrative costs

but excludes corporate costs for other depreciation, income from asset sales and other corporate income and expense.

General and administrative costs are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, on other methods which we believe to be a reasonable reflection of the utilization of services provided.

Segment operating income for all segments is a non-GAAP financial measure of our performance, as it excludes certain general and administrative expenses, corporate depreciation, income from asset sales and other corporate income and expense. We consider segment operating income to be an important supplemental measure of operating performance for presenting trends in our core businesses. We use this measure to facilitate period-to-period comparisons in operating performance of our reportable segments in the aggregate by eliminating items that affect comparability between periods. We believe that segment operating income is useful to investors because it provides a means to evaluate the operating performance of the segments on an ongoing basis using criteria that are used by our internal decision makers. Additionally, it highlights operating trends and aids analytical comparisons. However, segment operating income has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect our operating performance in future periods.

Summarized financial information of our reportable segments for continuing operations for each of the years ended September 30, 2017, 2016 and 2015 is shown in the following table:


							Segment		Depreciation				Additions
	External		Inter-		Total		Operating		and		Total		to Long-Lived
(in thousands)	Sales		Segment		Sales		Income (Loss)		Amortization		Assets		Assets
September 30, 2017
Contract Drilling
U.S. Land	$	1,439,523	$	—	$	1,439,523	$	(94,880)	$	499,486	$	4,967,074	$	394,508
Offshore		136,263		—		136,263		24,201		11,764		99,533		2,847
International Land		212,972		—		212,972		(7,224)		53,622		413,392		3,400
		1,788,758		—		1,788,758		(77,903)		564,872		5,479,999		400,755
Other		15,983		862		16,845		(9,449)		20,671		959,986		7,351
		1,804,741		862		1,805,603		(87,352)		585,543		6,439,985		408,106
Eliminations		—		(862)		(862)		—		—		—		—
Total	$	1,804,741	$	—	$	1,804,741	$	(87,352)	$	585,543	$	6,439,985	$	408,106

							Segment						Additions
	External		Inter-		Total		Operating				Total		to Long-Lived
(in thousands)	Sales		Segment		Sales		Income (Loss)		Depreciation		Assets		Assets
September 30, 2016
Contract Drilling
U.S. Land	$	1,242,462	$	—	$	1,242,462	$	74,118	$	508,237	$	5,005,299	$	209,156
Offshore		138,601		—		138,601		15,659		12,495		105,152		9,694
International Land		229,894		—		229,894		(14,086)		57,102		487,181		2,364
		1,610,957		—		1,610,957		75,691		577,834		5,597,632		221,214
Other		13,275		855		14,130		(7,491)		20,753		1,234,323		20,076
		1,624,232		855		1,625,087		68,200		598,587		6,831,955		241,290
Eliminations		—		(855)		(855)		—		—		—		—
Total	$	1,624,232	$	—	$	1,624,232	$	68,200	$	598,587	$	6,831,955	$	241,290

							Segment						Additions
	External		Inter-		Total		Operating				Total		to Long-Lived
(in thousands)	Sales		Segment		Sales		Income (Loss)		Depreciation		Assets		Assets
September 30, 2015
Contract Drilling
U.S. Land	$	2,523,518	$	—	$	2,523,518	$	698,375	$	519,950	$	5,429,179	$	949,978
Offshore		241,666		—		241,666		68,002		11,659		118,852		16,100
International Land		382,331		—		382,331		(7,093)		57,334		565,712		39,645
		3,147,515		—		3,147,515		759,284		588,943		6,113,743		1,005,723
Other		14,187		880		15,067		(10,911)		19,096		1,025,402		27,518
		3,161,702		880		3,162,582		748,373		608,039		7,139,145		1,033,241
Eliminations		—		(880)		(880)		—		—		—		—
Total	$	3,161,702	$	—	$	3,161,702	$	748,373	$	608,039	$	7,139,145	$	1,033,241

The following table reconciles segment operating income (loss) to income from continuing operations before income taxes as reported on the Consolidated Statements of Operations:


	Year Ended September 30,
	2017		2016		2015
	(in thousands)

Segment operating income (loss)	$	(87,352)	$	68,200	$	748,373
Income from asset sales		20,627		9,896		11,834
Corporate general and administrative costs and corporate depreciation		(105,816)		(104,062)		(88,244)
Operating income (loss)		(172,541)		(25,966)		671,963
Other income (expense)
Interest and dividend income		5,915		3,166		5,840
Interest expense		(19,747)		(22,913)		(15,023)
Loss on investment securities		—		(25,989)		—
Other		1,775		(965)		(901)
Total unallocated amounts		(12,057)		(46,701)		(10,084)
Income (loss) from continuing operations before income taxes	$	(184,598)	$	(72,667)	$	661,879

The following table presents revenues from external customers and long-lived assets by country based on the location of service provided:


	Year Ended September 30,
	2017		2016		2015
	(in thousands)

Operating Revenues
United States	$	1,591,769	$	1,386,786	$	2,750,043
Argentina		157,257		159,427		177,984
Colombia		37,554		20,488		70,076
Ecuador		6		4,948		30,987
Other Foreign		18,155		52,583		132,612
Total	$	1,804,741	$	1,624,232	$	3,161,702
Long-Lived Assets
United States	$	4,686,235	$	4,804,328	$	5,149,315
Argentina		155,978		183,286		211,862
Colombia		81,798		91,815		102,401
Ecuador		22,298		438		28,918
Other Foreign		54,742		64,866		70,674
Total	$	5,001,051	$	5,144,733	$	5,563,170

Long-lived assets are comprised of property, plant and equipment.

Revenues from one customer accounted for approximately 9 percent, 8 percent and 6 percent of total operating revenues during the years ended September 30, 2017, 2016 and 2015, respectively. Revenues from another customer accounted for approximately 9 percent, 9 percent and 5 percent of total operating revenues during the years ended September 30, 2017, 2016 and 2015, respectively. Collectively, the receivables from these customers were $59.0 million and $58.1 million at September 30, 2017 and 2016, respectively.