Industry Segments and Geographic Information

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements [Abstract]

Industry Segments and Geographic Information

NOTE Q - INDUSTRY SEGMENTS AND GEOGRAPHIC INFORMATION

We manage our operations through five operating segments: Fluids, Production Testing, Compressco, Offshore Services, and Maritech. Beginning in the fourth quarter of 2010, certain Mexican production enhancement operations were reclassified from our Production Testing segment to our Compressco segment. Segment information for 2009 has been revised to conform to the current presentation.

Our Fluids Division manufactures and markets certain clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States and in certain countries in Latin America, Europe, Asia, the Middle East, and Africa. The Division also markets liquid and dry calcium chloride products manufactured at its production facilities or purchased from third-party suppliers to a variety of markets outside the energy industry.

Our Production Enhancement Division consists of two operating segments: Production Testing and Compressco. The Production Testing segment provides production testing services in many of the major oil and gas basins in the United States. In addition, the Production Testing segment has operations in certain onshore basins in certain regions in Mexico, Brazil, North Africa, the Middle East, and other foreign markets.

The Compressco segment provides wellhead compression-based and other production enhancement services throughout many of the onshore producing regions of the United States, as well as certain onshore basins in Mexico, Canada, and certain countries in South America, Europe, Asia, and other international locations. Beginning June 20, 2011, following Compressco Partners' initial public offering, we allocate and charge certain corporate and divisional direct and indirect administrative costs to Compressco Partners.

Our Offshore Division consists of two operating segments: Offshore Services and Maritech. The Offshore Services segment provides (1) downhole and subsea oil and gas services such as well plugging and abandonment, and wireline services, (2) decommissioning and certain construction services utilizing heavy lift barges and various cutting technologies with regard to offshore oil and gas production platforms and pipelines, and (3) conventional and saturated air diving services.

The Maritech segment is an oil and gas exploration, development, and production operation focused in the offshore and onshore U.S. Gulf Coast region. During 2011, Maritech sold approximately 95% of its proved reserves it owned as of December 31, 2010, and is seeking to sell its remaining oil and gas producing property interests. Maritech's remaining operations consist primarily of the ongoing abandonment and decommissioning associated with its remaining offshore wells, facilities and production platforms. Maritech intends to acquire a significant portion of these services from the Offshore Division's Offshore Services segment.

F-36

We generally evaluate performance and allocate resources of our segments based on profit or loss from operations before income taxes and nonrecurring charges, return on investment, and other criteria. Transfers between segments and geographic areas are priced at the estimated fair value of the products or services as negotiated between the operating units. "Corporate overhead" includes corporate general and administrative expenses, corporate depreciation and amortization, interest income and expense, and other income and expense.

Summarized financial information concerning the business segments from continuing operations is as follows:

	Year Ended December 31,
	2011			2010			2009
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	229,426		$	211,917		$	167,984
Production Enhancement Division
Production Testing		-			3,610			-
Compressco		13,201			4,017			4,860
Total Production Enhancement Division		13,201			7,627			4,860
Offshore Division
Offshore Services		4,921			2,576			2,970
Maritech		81,941			197,806			174,191
Intersegment eliminations		-			-			-
Total Offshore Division		86,862			200,382			177,161
Consolidated	$	329,489		$	419,926		$	350,005
Services and rentals
Fluids Division	$	75,032		$	64,358		$	57,491
Production Enhancement Division
Production Testing		139,755			100,346			77,699
Compressco		82,567			77,396			86,105
Total Production Enhancement Division		222,322			177,742			163,804
Offshore Division
Offshore Services		217,341			207,934			304,729
Maritech		799			2,718			2,848
Intersegment eliminations		-			-			-
Total Offshore Division		218,140			210,652			307,577
Corporate overhead		292			-			-
Consolidated	$	515,786		$	452,752		$	528,872
Intersegment revenues
Fluids Division	$	78		$	62		$	42
Production Enhancement Division
Production Testing		1			39			1
Compressco		-			-			-
Total Production Enhancement Division		1			39			1
Offshore Division
Offshore Services		65,038			63,690			46,099
Maritech		-			35			-
Intersegment eliminations		(65,036	)		(62,526	)		(45,648	)
Total Offshore Division		2			1,199			451
Intersegment eliminations		(81	)		(1,300	)		(494	)
Consolidated	$	-		$	-		$	-

F-37

	Year Ended December 31,
	2011			2010			2009
	(In Thousands)
Revenues from external customers
Total revenues
Fluids Division	$	304,536		$	276,337		$	225,517
Production Enhancement Division
Production Testing		139,756			103,995			77,700
Compressco		95,768			81,413			90,965
Total Production Enhancement Division		235,524			185,408			168,665
Offshore Division
Offshore Services		287,300			274,200			353,798
Maritech		82,740			200,559			177,039
Intersegment eliminations		(65,036	)		(62,526	)		(45,648	)
Total Offshore Division		305,004			412,233			485,189
Corporate overhead		292			-			-
Intersegment eliminations		(81	)		(1,300	)		(494	)
Consolidated	$	845,275		$	872,678		$	878,877
Depreciation, depletion, amortization, and accretion
Fluids Division	$	19,596		$	20,899		$	15,281
Production Enhancement Division
Production Testing		13,893			14,429			14,053
Compressco		12,791			13,029			13,866
Total Production Enhancement Division		26,684			27,458			27,919
Offshore Division
Offshore Services		14,502			18,067			16,347
Maritech		31,314			79,012			87,274
Intersegment eliminations		(174	)		(339	)		(506	)
Total Offshore Division		45,642			96,740			103,115
Corporate overhead		2,917			2,925			3,011
Consolidated	$	94,839		$	148,022		$	149,326
Interest expense
Fluids Division	$	121		$	237		$	116
Production Enhancement Division
Production Testing		32			-			2
Compressco		(20	)		38			-
Total Production Enhancement Division		12			38			2
Offshore Division
Offshore Services		45			1			6
Maritech		78			9			19
Intersegment eliminations		-						-
Total Offshore Division		123			10			25
Corporate overhead		16,939			17,243			13,064
Consolidated	$	17,195		$	17,528		$	13,207

F-38

	Year Ended December 31,
	2011			2010			2009
	(In Thousands)
Income (loss) before taxes and discontinued operations
Fluids Division	$	32,076		$	15,953		$	20,791
Production Enhancement Division
Production Testing		35,969			15,024			15,704
Compressco		15,799			17,513			25,549
Total Production Enhancement Division		51,768			32,537			41,253
Offshore Division
Offshore Services		18,455			4,664			78,394
Maritech		(26,275	)		(69,119	)		22,012
Intersegment eliminations		1,802			443			647
Total Offshore Division		(6,018	)		(64,012	)		101,053
Corporate overhead		(71,593	)(1)		(58,271	)(1)		(57,727	)(1)
Consolidated	$	6,233		$	(73,793	)	$	105,370
Total assets
Fluids Division	$	375,741		$	376,309		$	375,754
Production Enhancement Division
Production Testing		119,311			106,304			111,497
Compressco		210,754			195,879			203,774
Total Production Enhancement Division		330,065			302,183			315,271
Offshore Division
Offshore Services		216,927			154,535			190,494
Maritech		63,294			329,585			363,605
Intersegment eliminations		-			(1,802	)		(2,246	)
Total Offshore Division		280,221			482,318			551,853
Corporate overhead		217,283	(2)		138,818	(2)		104,721	(2)
Consolidated	$	1,203,310		$	1,299,628		$	1,347,599

Capital expenditures
Fluids Division	$	17,921		$	10,914		$	84,134
Production Enhancement Division
Production Testing		19,925			6,010			9,036
Compressco		12,471			7,927			2,944
Total Production Enhancement Division		32,396			13,937			11,980
Offshore Division
Offshore Services		64,420			11,273			17,930
Maritech		7,924			70,597			26,832
Intersegment eliminations		(66	)		(445	)		(454	)
Total Offshore Division		72,278			81,425			44,308
Corporate overhead		1,008			1,408			11,351
Consolidated	$	123,603		$	107,684		$	151,773

(1) Amounts reflected include the following general corporate expenses:

	2011		2010		2009
	(In Thousands)
General and administrative expense	$	36,694	$	34,577	$	40,173
Depreciation and amortization		2,917		2,925		3,011
Interest expense		16,939		17,243		13,064
Other general corporate (income) expense, net		15,043		3,526		1,479
Total	$	71,593	$	58,271	$	57,727

(2) Includes assets of discontinued operations.

F-39

Summarized financial information concerning the geographic areas of our customers and in which we operate at December 31, 2011, 2010, and 2009, is presented below:

	Year Ended December 31,
	2011			2010			2009
	(In Thousands)
Revenues from external customers:
U.S.	$	671,926		$	735,400		$	751,101
Canada and Mexico		49,314			32,645			37,984
South America		28,765			19,802			17,372
Europe		75,033			71,356			68,015
Africa		13,877			10,194			2,477
Asia and other		6,360			3,281			1,928
Total	$	845,275		$	872,678		$	878,877
Transfers between geographic areas:
U.S.	$	-		$	-		$	-
Canada and Mexico		-			-			-
South America		-			-			-
Europe		322			254			1,472
Africa		-			-			-
Asia and other		-			-			-
Eliminations		(322	)		(254	)		(1,472	)
Total revenues	$	845,275		$	872,678		$	878,877
Identifiable assets:
U.S.	$	994,151		$	1,125,512		$	1,197,512
Canada and Mexico		62,558			35,274			32,811
South America		43,295			47,710			41,556
Europe		78,974			67,383			59,633
Africa		11,653			10,862			5,468
Asia and other		12,679			13,187			10,649
Eliminations and discontinued operations		-			(300	)		(30	)
Total identifiable assets	$	1,203,310		$	1,299,628		$	1,347,599

During each of the three years ended December 31, 2011, 2010, and 2009, no single customer accounted for more than 10% of our consolidated revenues.