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 March 31, 2018 and 2017 is shown in the following tables:


							Segment
	External		Inter-		Total		Operating
(in thousands)	Sales		Segment		Sales		Income (Loss)
March 31, 2018
Contract Drilling
U.S. Land	$	482,729	$	35	$	482,764	$	27,075
Offshore		32,983		—		32,983		5,449
International Land		52,459		—		52,459		(695)
		568,171		35		568,206		31,829
Other		9,313		252		9,565		(7,015)
		577,484		287		577,771		24,814
Eliminations		—		(287)		(287)		—
Total	$	577,484	$	—	$	577,484	$	24,814

							Segment
	External		Inter-		Total		Operating
(in thousands)	Sales		Segment		Sales		Income (Loss)
March 31, 2017
Contract Drilling
U.S. Land	$	330,967	$	—	$	330,967	$	(51,850)
Offshore		36,235		—		36,235		5,912
International Land		34,757		—		34,757		(10,977)
		401,959		—		401,959		(56,915)
Other		3,324		208		3,532		(1,134)
		405,283		208		405,491		(58,049)
Eliminations		—		(208)		(208)		—
Total	$	405,283	$	—	$	405,283	$	(58,049)

Summarized financial information of our reportable segments for the six months ended March 31, 2018 and 2017 is shown in the following tables:


							Segment
	External		Inter-		Total		Operating
(in thousands)	Sales		Segment		Sales		Income (Loss)
March 31, 2018
Contract Drilling
U.S. Land	$	944,369	$	35	$	944,404	$	51,820
Offshore		66,349		—		66,349		14,174
International Land		115,673		—		115,673		2,839
		1,126,391		35		1,126,426		68,833
Other		15,180		472		15,652		(14,332)
		1,141,571		507		1,142,078		54,501
Eliminations		—		(507)		(507)		—
Total	$	1,141,571	$	—	$	1,141,571	$	54,501

							Segment
	External		Inter-		Total		Operating
(in thousands)	Sales		Segment		Sales		Income (Loss)
March 31, 2017
Contract Drilling
U.S. Land	$	594,603	$	—	$	594,603	$	(82,738)
Offshore		70,047		—		70,047		12,696
International Land		102,788		—		102,788		(10,152)
		767,438		—		767,438		(80,194)
Other		6,435		416		6,851		(3,183)
		773,873		416		774,289		(83,377)
Eliminations		—		(416)		(416)		—
Total	$	773,873	$	—	$	773,873	$	(83,377)

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				Six Months Ended
	March 31,				March 31,
	2018		2017		2018		2017
	(in thousands)				(in thousands)

Segment operating income (loss)	$	24,814	$	(58,049)	$	54,501	$	(83,377)
Income from asset sales		5,255		14,889		10,820		15,731
Corporate general and administrative costs and corporate depreciation		(31,322)		(22,512)		(63,054)		(47,190)
Operating income (loss)		(1,253)		(65,672)		2,267		(114,836)
Other income (expense)
Interest and dividend income		1,847		1,338		3,571		2,328
Interest expense		(6,028)		(6,084)		(11,801)		(11,139)
Other		(121)		174		409		561
Total unallocated amounts		(4,302)		(4,572)		(7,821)		(8,250)
Loss from continuing operations before income taxes	$	(5,555)	$	(70,244)	$	(5,554)	$	(123,086)

The following table presents total assets by reportable segment:


	March 31,		September 30,
	2018		2017
	(in thousands)

Total assets
U.S. Land	$	4,940,149	$	4,967,074
Offshore		101,350		99,533
International Land		399,898		413,392
Other		182,003		133,085
		5,623,400		5,613,084
Investments and corporate operations		638,392		826,901
Total assets from continued operations		6,261,792		6,439,985
Discontinued operations				3
	$	6,261,792	$	6,439,988

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


	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2018		2017		2018		2017
	(in thousands)				(in thousands)

Operating Revenues
United States	$	524,435	$	370,526	$	1,025,193	$	671,085
Argentina		49,800		23,267		98,629		71,349
Colombia		237		8,852		12,233		18,223
Other Foreign		3,012		2,638		5,516		13,216
Total	$	577,484	$	405,283	$	1,141,571	$	773,873