NOTE Q – INDUSTRY SEGMENTS AND GEOGRAPHIC INFORMATION

We manage our operations through five reporting segments organized into four divisions: Fluids, Production Testing, Compression, and Offshore.

Our Fluids Division manufactures and markets 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. The Fluids Division also provides domestic onshore oil and gas operators with a wide variety of water management services.

Our Production Testing Division provides frac flowback, production well testing, offshore rig cooling, and other associated services in many of the major oil and gas producing regions in the United States, Mexico, and Canada, as well as in basins in certain regions in South America, Africa, Europe, the Middle East, and Australia.

The Compression Division is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing, and storage. The Compression Division's equipment sales business includes the fabrication and sale of standard compressor packages, custom-designed compressor packages, and oilfield pump systems designed and fabricated at the Division's facilities. The Compression Division's aftermarket business provides compressor package reconfiguration and maintenance services and compressor package parts and components manufactured by third-party suppliers. The Compression Division provides its services and equipment to a broad base of natural gas and oil exploration and production, midstream, transmission, and storage companies operating throughout many of the onshore producing regions of the United States as well as in a number of foreign countries, including Mexico, Canada, and Argentina. As a result of the August 4, 2014 acquisition of CSI, the scope of our Compression Division was significantly expanded.

Our Offshore Division consists of two operating segments: Offshore Services and Maritech. The Offshore Services segment provides (1) downhole and subsea services such as well plugging and abandonment and workover 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 saturation diving services.

The Maritech segment is a limited oil and gas production operation. During 2011 and the first quarter of 2012, Maritech sold substantially all of its oil and gas producing property interests. Maritech’s operations consist primarily of the ongoing abandonment and decommissioning associated with its remaining offshore wells and production platforms. Maritech intends to acquire a portion of these services from the Offshore Services segment.

We generally evaluate the performance of and allocate resources to our segments based on profit or loss from their 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 is as follows:



	Year Ended December 31,
	2016		2015		2014
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	176,882	$	306,307	$	294,895
Production Testing Division	—		6,944		—
Compression Division	71,809		141,461		74,827
Offshore Division
Offshore Services	116		611		534
Maritech	751		2,438		4,722
Total Offshore Division	867		3,049		5,256
Consolidated	$	249,558	$	457,761	$	374,978



Services and rentals
Fluids Division	$	69,625		$	117,459		$	142,139
Production Testing Division	59,509			122,292			188,528
Compression Division	239,566			316,178			207,679
Offshore Division
Offshore Services	76,506			116,455			164,243
Maritech				—			—
Intersegment eliminations	—			—			—
Total Offshore Division	76,506			116,455			164,243
Corporate overhead	—			—			—
Consolidated	$	445,206		$	672,384		$	702,589

Interdivision revenues
Fluids Division	$	87		$	278		$	327
Production Testing Division	4,109			4,668			4,296
Compression Division	—			—			—
Offshore Division
Offshore Services	903			5,128			30,595
Maritech	—			—			—
Intersegment eliminations	(903		)	(5,128		)	(30,595		)
Total Offshore Division	—			—			—
Interdivision eliminations	(4,196		)	(4,946		)	(4,623		)
Consolidated	$	—		$	—		$	—

Total revenues



Fluids Division	$	246,595		$	424,044		$	437,362
Production Testing Division	63,618			133,904			192,824
Compression Division	311,374			457,639			282,505
Offshore Division
Offshore Services	77,525			122,194			195,372
Maritech	751			2,438			4,722
Intersegment eliminations	(903		)	(5,128		)	(30,595		)
Total Offshore Division	77,373			119,504			169,499
Corporate overhead	—			—			—
Interdivision eliminations	(4,196		)	(4,946		)	(4,623		)
Consolidated	$	694,764		$	1,130,145		$	1,077,567



	Year Ended December 31,
	2016		2015		2014
	(In Thousands)
Depreciation, amortization, and accretion
Fluids Division	$	28,338	$	35,125	$	31,279
Production Testing Division	16,221		24,080		29,324
Compression Division	72,159		82,024		41,097
Offshore Division
Offshore Services	11,086		11,500		13,327
Maritech	1,362		1,375		160
Intersegment eliminations	—		—		—
Total Offshore Division	12,448		12,875		13,487
Corporate overhead	429		911		1,725
Consolidated	$	129,595	$	155,015	$	116,912

Interest expense
Fluids Division	$	32	$	22	$	21
Production Testing Division	42		—		29
Compression Division	38,271		35,235		15,562
Offshore Division
Offshore Services	—		—		36
Maritech	12		29		—
Intersegment eliminations	—		—		—
Total Offshore Division	12		29		36
Corporate overhead	21,639		19,879		20,063
Consolidated	$	59,996	$	55,165	$	35,711



	Year Ended December 31,
	2016			2015			2014
	(In Thousands)
Income (loss) before taxes
Fluids Division	$	10,430		$	80,789		$	64,705
Production Testing Division	(35,471		)	(55,720		)	(66,156		)
Compression Division	(136,327		)	(146,798		)	7,340
Offshore Division
Offshore Services	(12,025		)	(195		)	(26,251		)
Maritech	(1,841		)	(3,833		)	(71,154		)
Intersegment eliminations	—			—			—
Total Offshore Division	(13,866		)	(4,028		)	(97,405		)
Interdivision eliminations	7			(1		)	—
Corporate overhead⁽¹⁾	(61,864		)	(76,005		)	(66,355		)
Consolidated	$	(237,090	)	$	(201,763	)	$	(157,871	)



	Year Ended December 31,
	2016			2015			2014
	(In Thousands)
Total assets
Fluids Division	$	322,858		$	370,892		$	423,989
Production Testing Division	87,462			134,725			241,640
Compression Division	816,148			1,004,760			1,256,970
Offshore Division
Offshore Services	102,715			131,916			129,350
Maritech	3,660			18,453			23,479
Intersegment eliminations	—			—			—
Total Offshore Division	106,375			150,369			152,829
Corporate overhead and eliminations	(17,303		)	(24,544		)	(11,906		)
Consolidated	$	1,315,540		$	1,636,202		$	2,063,522

Capital expenditures
Fluids Division	$	2,311		$	11,104		$	41,307
Production Testing Division	802			7,843			31,226
Compression Division	11,568			95,586			37,516
Offshore Division
Offshore Services	5,913			5,949			20,013
Maritech	—			38			—
Intersegment eliminations	—			—			—
Total Offshore Division	5,913			5,987			20,013
Corporate overhead	472			77			1,547
Consolidated	$	21,066		$	120,597		$	131,609


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



	2016		2015		2014
	(In Thousands)
General and administrative expense	$	34,767	$	52,189	$	41,139
Depreciation and amortization	430		913		1,725
Interest expense, net	21,157		18,654		19,268
Other general corporate (income) expense, net	5,510		4,249		4,223
Total	$	61,864	$	76,005	$	66,355

Summarized financial information concerning the geographic areas of our customers and in which we operate at December 31, 2016, 2015, and 2014, is presented below:



	Year Ended December 31,
	2016			2015			2014
	(In Thousands)
Revenues from external customers:
U.S.	$	535,613		$	896,131		$	768,688
Canada and Mexico	34,560			44,542			73,632
South America	20,480			26,554			40,719
Europe	71,882			80,432			105,457
Africa	10,345			20,761			22,277
Asia and other	21,884			61,725			66,794
Total	$	694,764		$	1,130,145		$	1,077,567
Transfers between geographic areas:
U.S.	$	—		$	—		$	—
Canada and Mexico	—			—			—
South America	—			—			—
Europe	93			1,252			2,871
Africa	—			—			—
Asia and other	—			—			—
Eliminations	(93		)	(1,252		)	(2,871		)
Total revenues	$	694,764		$	1,130,145		$	1,077,567
Identifiable assets:
U.S.	$	1,132,986		$	1,403,916		$	1,759,491
Canada and Mexico	64,163			74,260			97,737
South America	21,354			25,603			32,267
Europe	53,713			64,695			94,209
Africa	5,711			7,542			7,895
Asia and other	37,613			60,186			71,923
Eliminations	—			—			—
Total identifiable assets	$	1,315,540		$	1,636,202		$	2,063,522

During each of the three years ended December 31, 2016, 2015, and 2014, no single customer accounted for more than 10% of our consolidated revenues.