Business Segment, Geographic and Major Customer Information

12 Months Ended

Dec. 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, Consumer and Industrial Chemistry 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 (“EOR” or “IOR”). 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 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, 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 year ended December 31,	Energy Chemistry Technologies		Consumer and Industrial Chemistry Technologies		Drilling Technologies			Production Technologies			Corporate and Other			Total
2015
Net revenue from external customers	$	213,593	$	56,374	$	52,112		$	12,280		$	—		$	334,359
Gross margin	81,936		14,371		16,702			2,101			—			115,110
Income (loss) from operations	43,902		8,742		(27,340		)	(4,111		)	(40,366		)	(19,173		)
Depreciation and amortization	4,791		2,202		8,539			750			1,742			18,024
Total assets	153,447		93,038		108,354			27,979			20,272			403,090
Capital expenditures	12,803		568		2,865			1,212			3,020			20,468
2014
Net revenue from external customers	$	268,761	$	51,091	$	113,302		$	16,003		$	—		$	449,157
Gross margin	117,867		12,897		45,651			6,544			—			182,959
Income (loss) from operations	84,846		6,558		19,022			3,246			(32,784		)	80,888
Depreciation and amortization	4,401		2,138		9,808			327			1,174			17,848
Total assets	156,596		87,412		147,584			21,843			9,841			423,276
Capital expenditures	6,983		115		9,626			942			2,241			19,907
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

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):

	Year ended December 31,
	2015		2014		2013
U.S.	$	273,624	$	370,087	$	319,649
Other countries	60,735		79,070		51,416
Total	$	334,359	$	449,157	$	371,065

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,
	2015	2014	2013
Customer A	13.9%	*	*
Customer B	12.0%	16.1%	16.2%

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

Approximately 95% of the revenue from major customers noted above was from the Energy Chemistry Technologies segment.