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 two reportable segments: Energy Chemistry Technologies and Consumer and Industrial Chemistry Technologies.

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Energy Chemistry Technologies designs, develops, manufactures, packages, and markets specialty chemistries used in oil and natural gas well drilling, cementing, completion, and stimulation. 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 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.

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		Corporate and Other			Total
2017
Net revenue from external customers	$	65,875	$	19,302	$	—		$	85,177
Gross profit	22,804		3,287		—			26,091
Income (loss) from operations	9,299		1,216		(11,767		)	(1,252		)
Depreciation and amortization	1,795		583		613			2,991
Capital expenditures	1,956		397		278			2,631

2016
Net revenue from external customers	$	43,385	$	20,694	$	—		$	64,079
Gross profit	17,660		4,058		—			21,718
Income (loss) from operations	7,584		2,686		(10,114		)	156
Depreciation and amortization	1,237		608		557			2,402
Capital expenditures	3,685		204		559			4,448



As of and for the six months ended June 30,	Energy Chemistry Technologies		Consumer and Industrial Chemistry Technologies		Corporate and Other			Total
2017
Net revenue from external customers	$	126,640	$	38,491	$	—		$	165,131
Gross profit	45,106		8,727		—			53,833
Income (loss) from operations	17,848		4,921		(24,643		)	(1,874		)
Depreciation and amortization	3,644		1,162		1,217			6,023
Capital expenditures	2,470		897		1,141			4,508

2016
Net revenue from external customers	$	88,064	$	39,826	$	—		$	127,890
Gross profit	36,429		9,082		—			45,511
Income (loss) from operations	15,597		6,075		(21,148		)	524
Depreciation and amortization	2,480		1,118		1,053			4,651
Capital expenditures	6,699		346		1,193			8,238

Assets of the Company by reportable segments are as follows (in thousands):



	June 30, 2017		December 31, 2016
Energy Chemistry Technologies	$	195,963	$	184,328
Consumer and Industrial Chemistry Technologies	117,037		98,105
Corporate and Other	38,980		56,882
Total segments	351,980		339,315
Held for sale	7,197		43,900
Total assets	$	359,177	$	383,215

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,
	2017		2016		2017		2016
U.S.	$	71,836	$	49,381	$	136,485	$	101,987
Other countries	13,341		14,698		28,646		25,903
Total	$	85,177	$	64,079	$	165,131	$	127,890

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,
	2017		2016		2017		2016
Customer A	13.3	%	17.5	%	12.7	%	20.7	%
Customer B	10.1	%	13.3	%	9.9	%	12.8	%

Over 95% of the revenue from these customers was for sales in the Energy Chemistry Technologies segment.