Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by chief operating decision-makers in deciding how to allocate resources and assess performance. With its acquisition of Florida Chemical Company, Inc. on May 10, 2013, the Company added operations in a new segment, Consumer and Industrial Chemical Technologies. The operations of the Company are now categorized into four reportable segments: Energy Chemical Technologies, Consumer and Industrial Chemical Technologies, Drilling Technologies and Artificial Lift Technologies.

• Energy Chemical Technologies designs, develops, manufactures, packages and markets specialty chemicals, some of which hold patent protection, used in oil and gas well cementing, stimulation, acidizing, drilling and production. Activities in this segment also include construction and management of automated material handling facilities and management of loading facilities and blending operations for oilfield services companies.

• Consumer and Industrial Chemical Technologies designs, develops and manufactures products that are sold to companies in the flavor and fragrance industry and the specialty chemical industry. These technologies are used by beverage and food companies, fragrance companies, and companies providing household and industrial cleaning products.

• Drilling Technologies rents, inspects, manufactures and markets downhole drilling equipment used in energy, mining, water well and industrial drilling activities.

• Artificial Lift Technologies assembles and markets artificial lift equipment, including the Petrovalve™ product line of rod pump components, electric submersible pumps, gas separators, valves and services that support natural gas, oil and coal bed methane production activities.

The Company evaluates performance based upon a variety of criteria. The primary financial measure is segment operating income. Various functions, including certain sales and marketing activities and general and administrative activities, are provided centrally by the corporate office. Costs associated with corporate office functions, other corporate income and expense items, and income taxes are not allocated to reportable segments.

Summarized financial information of the reportable segments is as follows (in thousands):

As of and for the year ended December 31,	Energy Chemical Technologies		Consumer and Industrial Chemical Technologies		Drilling Technologies		Artificial Lift Technologies		Corporate and Other			Total
2013
Net revenue from external customers	$	200,932	$	42,927	$	112,406	$	14,800	$	—		$	371,065
Gross margin	88,536		10,659		43,156		5,176		—			147,527
Income (loss) from operations	65,396		6,260		18,306		3,060		(34,296		)	58,726
Depreciation and amortization	3,160		1,126		9,632		250		941			15,109
Total assets	127,119		86,640		135,738		16,647		9,437			375,581
Capital expenditures	5,225		183		6,326		1,749		1,524			15,007
2012
Net revenue from external customers	$	183,986	$	—	$	116,736	$	12,106	$	—		$	312,828
Gross margin	81,438		—		45,709		4,472		—			131,619
Income (loss) from operations	65,440		—		22,282		3,395		(32,496		)	58,621
Depreciation and amortization	1,765		—		9,115		206		497			11,583
Total assets	59,195		—		118,771		11,189		30,712			219,867
Capital expenditures	3,553		—		12,264		77		4,807			20,701
2011
Net revenue from external customers	$	140,836	$	—	$	102,470	$	15,479	$	—		$	258,785
Gross margin	56,115		—		43,607		6,098		—			105,820
Income (loss) from operations	43,549		—		23,035		4,296		(21,992		)	48,888
Depreciation and amortization	1,594		—		8,061		196		254			10,105
Total assets	54,958		—		113,130		10,815		53,109			232,012
Capital expenditures	2,231		—		6,025		182		1,546			9,984

Geographic Information

Revenue by country is based on the location where services are provided and products are sold. No individual country other than the United States ("U.S.") accounted for more than 10% of revenue. Revenue by geographic location is as follows (in thousands):

	Year ended December 31,
	2013		2012		2011
U.S.	$	319,649	$	272,945	$	222,304
Other countries	51,416		39,883		36,481
Total	$	371,065	$	312,828	$	258,785

Long-lived assets held in countries other than the U.S. are not considered material to the consolidated financial statements.

Major Customers

Revenue from major customers, as a percentage of consolidated revenue, is as follows:

	Year ended December 31,
	2013	2012	2011
Customer A	16.2%	15.6%	13.1%
Customer B	*	10.0%	*
Customer C	*	*	10.8%

*These customers did not account for more than 10% of revenue.

Over 95% of the revenue from major customers noted above was from the Energy Chemical Technologies segment.