Business Segment, Geographic and Major Customer Information

3 Months Ended

Mar. 31, 2016

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. 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 March 31,	Energy Chemistry Technologies		Consumer and Industrial Chemistry Technologies		Drilling Technologies			Production Technologies			Corporate and Other			Total
2016
Net revenue from external customers	$	44,679	$	19,133	$	6,456		$	2,021		$	—		$	72,289
Gross profit	18,769		5,025		1,025			110			—			24,929
Income (loss) from operations	8,013		3,389		(40,951		)	(5,430		)	(11,034		)	(46,013		)
Depreciation and amortization	1,244		510		1,821			218			496			4,289
Total assets	149,006		110,344		68,284			23,682			13,266			364,582
Capital expenditures	3,014		143		238			185			633			4,213
2015
Net revenue from external customers	$	46,643	$	13,463	$	18,694		$	3,573		$	—		$	82,373
Gross profit	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

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,
	2016		2015
U.S.	$	57,793	$	64,195
Other countries	14,496		18,178
Total	$	72,289	$	82,373

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,
	2016		2015
Customer A	21.1	%	12.0	%
Customer B	10.9	%	10.3	%

Over 94% of the revenue from these customers was for sales in the Energy Chemistry Technologies segment.