Business Segment, Geographic and Major Customer Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Business Segment, Geographic and Major Customer Information

Business Segment, Geographic and Major Customer 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. The operations of the Company are categorized into four reportable segments: Energy Chemistry Technologies (previously referred to as Energy Chemical Technologies), Consumer and Industrial Chemistry Technologies (previously referred to as Consumer and Industrial Chemical Technologies), Drilling Technologies and Production Technologies.

• Energy Chemistry Technologies designs, develops, manufactures, packages and markets specialty chemistries used in oil and natural gas well drilling, cementing, completion, stimulation and production. In addition, the Company's chemistries are used in specialized enhanced and improved oil recovery markets. 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 Chemistry Technologies designs, develops and manufactures products that are sold to companies in the flavor and fragrance industries 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, sells, inspects, manufactures and markets downhole drilling equipment used in energy, mining, water well and industrial drilling activities.

• Production Technologies assembles and markets production-related equipment, including the Petrovalve^TM product line of rod pump components, electric submersible pumps, gas separators, valves and services that support natural gas and oil 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 three months ended March 31,	Energy Chemistry Technologies		Consumer and Industrial Chemistry Technologies		Drilling Technologies			Production Technologies			Corporate and Other			Total
2015
Net revenue from external customers	$	46,643	$	13,463	$	18,694		$	3,573		$	—		$	82,373
Gross margin	16,100		3,706		5,991			730			—			26,527
Income (loss) from operations	6,821		2,381		(637		)	(539		)	(9,315		)	(1,289		)
Depreciation and amortization	1,204		552		2,319			125			370			4,570
Total assets	152,423		92,438		141,229			25,176			3,741			415,007
Capital expenditures	2,361		22		2,124			638			445			5,590
2014
Net revenue from external customers	$	62,377	$	13,030	$	24,901		$	2,267		$	—		$	102,575
Gross margin	29,220		4,033		9,788			640			—			43,681
Income (loss) from operations	21,623		2,335		3,317			(79		)	(8,398		)	18,798
Depreciation and amortization	1,067		433		2,437			70			212			4,219
Total assets	137,638		93,217		136,141			14,864			8,656			390,516
Capital expenditures	1,386		14		3,296			61			233			4,990

Geographic Information

Revenue by country is based on the location where services are provided and products are used. 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):

	Three months ended March 31,
	2015		2014
U.S.	$	64,195	$	87,331
Other countries	18,178		15,244
Total	$	82,373	$	102,575

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:

	Three months ended March 31,
	2015		2014
Customer A	12.0	%	*
Customer B	10.3	%	15.4	%

* This customer did not account for more than 10% of revenue during the period.

Over 93% of the revenue from these customers was for sales in the Energy Chemistry Technologies segment.