Business Segment, Geographic and Major Customer Information

9 Months Ended

Sep. 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, and industrial drilling activities.

• Production Technologies assembles and markets production-related equipment, including the Petrovalve^® product line of rod pump components, hydraulic pumping units, 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 September 30,	Energy Chemistry Technologies		Consumer and Industrial Chemistry Technologies		Drilling Technologies			Production Technologies			Corporate and Other			Total
2015
Net revenue from external customers	$	60,181	$	13,867	$	10,812		$	3,082		$	—		$	87,942
Gross profit	24,257		3,082		3,302			586			—			31,227
Income (loss) from operations	14,283		1,728		(2,614		)	(823		)	(9,797		)	2,777
Depreciation and amortization	1,200		548		2,038			212			435			4,433
Total assets	152,430		90,948		110,872			26,564			20,131			400,945
Capital expenditures	1,467		18		—			107			523			2,115
2014
Net revenue from external customers	$	68,181	$	13,713	$	29,920		$	4,947		$	—		$	116,761
Gross profit	28,424		3,310		11,928			2,416			—			46,078
Income (loss) from operations	19,903		1,758		5,557			1,583			(7,954		)	20,847
Depreciation and amortization	1,103		547		2,433			81			298			4,462
Total assets	144,738		89,574		142,774			18,252			17,080			412,418
Capital expenditures	2,580		7		818			141			703			4,249

As of and for the nine months ended September 30,	Energy Chemistry Technologies		Consumer and Industrial Chemistry Technologies		Drilling Technologies			Production Technologies			Corporate and Other			Total
2015
Net revenue from external customers	$	163,296	$	42,808	$	41,840		$	9,402		$	—		$	257,346
Gross profit	60,784		10,914		13,396			1,912			—			87,006
Income (loss) from operations	32,995		6,792		(24,551		)	(2,958		)	(29,398		)	(17,120		)
Depreciation and amortization	3,578		1,649		6,575			535			1,276			13,613
Total assets	152,430		90,948		110,872			26,564			20,131			400,945
Capital expenditures	5,910		46		2,744			883			1,495			11,078
2014
Net revenue from external customers	$	193,148	$	39,351	$	82,061		$	10,093		$	—		$	324,653
Gross profit	85,074		10,237		32,477			4,280			—			132,068
Income (loss) from operations	60,690		5,064		13,073			1,925			(23,432		)	57,320
Depreciation and amortization	3,264		1,529		7,363			244			876			13,276
Total assets	144,738		89,574		142,774			18,252			17,080			412,418
Capital expenditures	5,383		37		6,139			252			1,683			13,494

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 September 30,				Nine months ended September 30,
	2015		2014		2015		2014
U.S.	$	73,796	$	92,643	$	211,242	$	271,663
Other countries	14,146		24,118		46,104		52,990
Total	$	87,942	$	116,761	$	257,346	$	324,653

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 September 30,				Nine months ended September 30,
	2015		2014		2015		2014
Customer A	12.8	%	12.7	%	11.7	%	17.0	%
Customer B	11.6	%	*		*		*
Customer C	11.3	%	*		14.3	%	*

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

Over 97% of the revenue from these customers was for sales in the Energy Chemistry Technologies segment.