12.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 the directional drilling process and MWD survey corrections. Consolidated revenues and expenses reflect the elimination of 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 by 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 the three months ended December 31, 2017 and 2016 is shown in the following tables:


							Segment
	External		Inter-		Total		Operating
(in thousands)	Sales		Segment		Sales		Income (Loss)
December 31, 2017
Contract Drilling
U.S. Land	$	461,640	$	—	$	461,640	$	24,745
Offshore		33,366		—		33,366		8,725
International Land		63,214		—		63,214		3,534
		558,220		—		558,220		37,004
Other		5,867		220		6,087		(7,317)
		564,087		220		564,307		29,687
Eliminations		—		(220)		(220)		—
Total	$	564,087	$	—	$	564,087	$	29,687

							Segment
	External		Inter-		Total		Operating
(in thousands)	Sales		Segment		Sales		Income (Loss)
December 31, 2016
Contract Drilling
U.S. Land	$	263,636	$	—	$	263,636	$	(30,888)
Offshore		33,812		—		33,812		6,784
International Land		68,031		—		68,031		825
		365,479		—		365,479		(23,279)
Other		3,111		208		3,319		(2,049)
		368,590		208		368,798		(25,328)
Eliminations		—		(208)		(208)		—
Total	$	368,590	$	—	$	368,590	$	(25,328)

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


	Three Months Ended
	December 31,
	2017		2016
	(in thousands)

Segment operating income (loss)	$	29,687	$	(25,328)
Income from asset sales		5,565		842
Corporate general and administrative costs and corporate depreciation		(31,732)		(24,678)
Operating income (loss)		3,520		(49,164)
Other income (expense)
Interest and dividend income		1,724		990
Interest expense		(5,773)		(5,055)
Other		530		387
Total unallocated amounts		(3,519)		(3,678)
Income (loss) from continuing operations before income taxes	$	1	$	(52,842)

The following table presents total assets by reportable segment:


	December 31,		September 30,
	2017		2017
	(in thousands)

Total assets
U.S. Land	$	4,956,429	$	4,967,074
Offshore		103,852		99,533
International Land		421,322		413,392
Other		182,001		133,085
		5,663,604		5,613,084
Investments and corporate operations		698,490		826,901
Total assets from continued operations		6,362,094		6,439,985
Discontinued operations		2		3
	$	6,362,096	$	6,439,988

The following table presents revenues from external customers by country based on the location of service provided:


	Three Months Ended
	December 31,
	2017		2016
	(in thousands)

Operating Revenues
United States	$	500,758	$	300,559
Argentina		48,829		48,082
Colombia		11,996		9,371
Other Foreign		2,504		10,578
Total	$	564,087	$	368,590