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Segment Data
9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Data Segment Data
Summarized operating results for our reportable segments are shown in the following table (net of inter-segment transfers):
 Third QuarterFirst Nine Months
(In thousands)2020201920202019
Revenues
Fluids systems$67,711 $152,547 $275,178 $485,744 
Mats and integrated services28,713 50,216 87,742 144,904 
Total revenues$96,424 $202,763 $362,920 $630,648 
Operating income (loss)
Fluids systems$(18,957)$5,893 $(46,284)$21,951 
Mats and integrated services(139)10,049 3,928 32,863 
Corporate office(6,596)(9,654)(19,761)(31,933)
Total operating income (loss)$(25,692)$6,288 $(62,117)$22,881 
    The following table presents further disaggregated revenues for the Fluids Systems segment:
Third QuarterFirst Nine Months
(In thousands)2020201920202019
United States$40,314 $98,140 $156,644 $318,353 
Canada1,961 8,029 18,287 26,283 
Total North America42,275 106,169 174,931 344,636 
EMEA23,207 41,126 91,380 123,346 
Other2,229 5,252 8,867 17,762 
Total International25,436 46,378 100,247 141,108 
Total Fluids Systems revenues$67,711 $152,547 $275,178 $485,744 
The following table presents further disaggregated revenues for the Mats and Integrated Services segment:
Third QuarterFirst Nine Months
(In thousands)2020201920202019
Service revenues$13,469 $18,930 $40,500 $59,989 
Rental revenues9,327 16,700 31,999 55,955 
Product sales revenues5,917 14,586 15,243 28,960 
Total Mats and Integrated Services revenues$28,713 $50,216 $87,742 $144,904 

During March 2020, oil prices collapsed due to geopolitical events along with the worldwide effects of the COVID-19 pandemic, which led to a rapid decline in customer activity in the oil and natural gas exploration and production (“E&P”) industry. As of September 30, 2020, the U.S. active rig count was 261, reflecting a 67% decline from the first quarter 2020 average level. The average U.S. active rig count was 477 for the first nine months of 2020 reflecting a 52% decline from the first nine months of 2019. In addition, international activity levels have also been negatively impacted by the COVID-19 pandemic and decline in oil prices. In response to these market changes, we initiated workforce reductions and other cost reduction programs late in the first quarter of 2020, and continued these actions throughout 2020.
As part of the cost reduction programs, we have reduced our global employee base by approximately 620 (28%) in the first nine months of 2020. As a result of these workforce reductions, our operating results for the third quarter of 2020 include $0.4 million of total severance costs ($0.2 million in Fluids Systems and $0.2 million in the Corporate office), with $0.1 million in cost of revenues and $0.3 million in selling, general and administrative expenses. Our operating results for the first nine months of 2020 include $3.9 million of total severance costs ($3.3 million in Fluids Systems and $0.6 million in the Corporate
office), with $2.6 million in cost of revenues and $1.3 million in selling, general and administrative expenses. These costs have been substantially paid as of September 30, 2020.
For the third quarter of 2020, we recognized $4.7 million of total charges primarily for the impairment of certain fixed assets and other non-cash charges, with $4.5 million in the Fluids Systems segment and $0.2 million in the Corporate Office. For the first nine months of 2020, we recognized $18.0 million of total charges primarily for inventory write-downs, severance costs, fixed asset impairments, and facility exit costs, with $17.4 million in the Fluids Systems segment and $0.6 million in the Corporate office. See below for details of charges in the Fluids Systems segment.
Third QuarterFirst Nine Months
(In thousands)2020201920202019
Inventory write-downs$990 $— $9,986 $— 
Severance costs189 284 3,288 1,152 
Property, plant and equipment impairments3,038 — 3,038 — 
Facility exit costs and other286 — 1,086 — 
Total Fluids Systems impairments and other charges$4,503 $284 $17,398 $1,152 

We also made the decision in late 2019 to wind down our Brazil operations. At September 30, 2020, we had $11.8 million of accumulated translation losses related to our subsidiary in Brazil. As such, we will reclassify these losses and recognize a charge to income at such time when we have substantially liquidated our subsidiary in Brazil.
As of September 30, 2020, our consolidated balance sheet includes $42.2 million of goodwill, all of which relates to the Mats and Integrated Services segment. Goodwill and other indefinite-lived intangible assets are tested for impairment annually as of November 1, or more frequently, if indicators of impairment exists. In March 2020, primarily as a result of the collapse in oil prices and the expected declines in the U.S. land E&P markets, along with a significant decline in the quoted market prices of our common stock, we considered these developments to be a potential indicator of impairment that required us to complete an interim goodwill impairment evaluation. As such, in March 2020, we estimated the fair value of our Mats and Integrated Services reporting unit based on our current forecasts and expectations for market conditions and determined that even though the estimated fair value had decreased, the fair value remained substantially in excess of its net carrying value, and therefore, no impairment was required. During the second quarter and third quarter of 2020, we determined that there were no further indicators of events or changes in circumstances that would more likely than not reduce the fair value below its carrying amount.
As of September 30, 2020, our consolidated balance sheet also includes $287.3 million of property, plant and equipment, net, and $25.6 million of finite-lived intangible assets, net, which combined includes $159.6 million in the Fluids Systems segment and $143.6 million in the Mats and Integrated Services segment. We review property, plant and equipment, finite-lived intangible assets and certain other assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We assess recoverability based on expected undiscounted future net cash flows. Due to the changes in market conditions, we have reviewed these assets for impairment during the first nine months of 2020 and determined that the estimated undiscounted cash flows exceeded the carrying value, and therefore, no impairment was required. Fluids Systems segment includes a $3.0 million impairment charge for the first nine months of 2020, attributable to the abandonment of certain property, plant and equipment.