Business Segment, Geographic and Major Customer Information

6 Months Ended

Jun. 30, 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 June 30,	Energy Chemistry Technologies		Consumer and Industrial Chemistry Technologies		Drilling Technologies			Production Technologies			Corporate and Other			Total
2015
Net revenue from external customers	$	56,472	$	15,477	$	12,334		$	2,747		$	—		$	87,030
Gross margin	20,426		4,126		4,103			597			—			29,252
Income (loss) from operations	11,892		2,683		(21,300		)	(1,596		)	(10,287		)	(18,608		)
Depreciation and amortization	1,174		549		2,218			198			471			4,610
Total assets	149,767		98,251		114,481			25,544			15,350			403,393
Capital expenditures	2,075		6		620			138			527			3,366
2014
Net revenue from external customers	$	62,589	$	12,607	$	27,241		$	2,881		$	—		$	105,318
Gross margin	27,432		2,893		10,762			1,223			—			42,310
Income (loss) from operations	19,162		972		4,200			421			(7,080		)	17,675
Depreciation and amortization	1,095		549		2,493			92			366			4,595
Total assets	140,028		97,935		139,095			15,922			15,241			408,221
Capital expenditures	1,418		17		2,025			50			747			4,257

As of and for the six months ended June 30,	Energy Chemistry Technologies		Consumer and Industrial Chemistry Technologies		Drilling Technologies			Production Technologies			Corporate and Other			Total
2015
Net revenue from external customers	$	103,115	$	28,940	$	31,028		$	6,321		$	—		$	169,404
Gross margin	36,526		7,833		10,094			1,326			—			55,779
Income (loss) from operations	18,713		5,064		(21,937		)	(2,135		)	(19,601		)	(19,896		)
Depreciation and amortization	2,378		1,102		4,537			323			841			9,181
Total assets	149,767		98,251		114,481			25,544			15,350			403,393
Capital expenditures	4,443		28		2,744			776			972			8,963
2014
Net revenue from external customers	$	124,966	$	25,638	$	52,142		$	5,147		$	—		$	207,893
Gross margin	56,650		6,927		20,550			1,863			—			85,990
Income (loss) from operations	40,785		3,307		7,517			343			(15,479		)	36,473
Depreciation and amortization	2,162		982		4,930			163			577			8,814
Total assets	140,028		97,935		139,095			15,922			15,241			408,221
Capital expenditures	2,804		30		5,321			110			980			9,245

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 June 30,				Six months ended June 30,
	2015		2014		2015		2014
U.S.	$	73,250	$	91,691	$	137,446	$	179,022
Other countries	13,780		13,627		31,958		28,871
Total	$	87,030	$	105,318	$	169,404	$	207,893

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 June 30,				Six months ended June 30,
	2015		2014		2015		2014
Customer A	19.5	%	*		15.8	%	*
Customer B	12.1	%	17.7	%	11.2	%	19.2	%

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

Over 96% of the revenue from these customers were for sales in the Energy Chemistry Technologies segment.