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):



For the three months ended September 30,	Energy Chemistry Technologies		Consumer and Industrial Chemistry Technologies		Corporate and Other			Total
2017
Net revenue from external customers	$	61,167	$	18,291	$	—		$	79,458
Gross profit	18,733		3,007		—			21,740
Income (loss) from operations	6,867		985		(10,955		)	(3,103		)
Depreciation and amortization	1,863		590		615			3,068
Capital expenditures	324		682		641			1,647

2016
Net revenue from external customers	$	45,030	$	19,307	$	—		$	64,337
Gross profit	18,180		4,174		—			22,354
Income (loss) from operations	6,196		2,433		(10,882		)	(2,253		)
Depreciation and amortization	1,582		567		581			2,730
Capital expenditures	2,005		148		227			2,380



For the nine months ended September 30,	Energy Chemistry Technologies		Consumer and Industrial Chemistry Technologies		Corporate and Other			Total
2017
Net revenue from external customers	$	187,807	$	56,782	$	—		$	244,589
Gross profit	63,840		11,733		—			75,573
Income (loss) from operations	24,715		5,906		(35,598		)	(4,977		)
Depreciation and amortization	5,507		1,752		1,832			9,091
Capital expenditures	2,794		1,580		1,781			6,155

2016
Net revenue from external customers	$	133,094	$	59,133	$	—		$	192,227
Gross profit	54,609		13,256		—			67,865
Income (loss) from operations	21,793		8,508		(32,031		)	(1,730		)
Depreciation and amortization	4,062		1,685		1,633			7,380
Capital expenditures	8,704		494		1,420			10,618

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



	September 30, 2017		December 31, 2016
Energy Chemistry Technologies	$	187,623	$	184,328
Consumer and Industrial Chemistry Technologies	113,434		98,105
Corporate and Other	44,551		56,882
Total segments	345,608		339,315
Held for sale	4,135		43,900
Total assets	$	349,743	$	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 September 30,				Nine months ended September 30,
	2017		2016		2017		2016
U.S.	$	66,638	$	52,545	$	203,123	$	154,532
Other countries	12,820		11,792		41,466		37,695
Total	$	79,458	$	64,337	$	244,589	$	192,227

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,
	2017		2016		2017		2016
Customer A	13.3	%	12.5	%	12.9	%	17.9	%
Customer B	8.8	%	14.8	%	9.6	%	13.5	%

Over 90% of the revenue from these customers was for sales in the Energy Chemistry Technologies segment.