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 year ended December 31,	Energy Chemistry Technologies		Consumer and Industrial Chemistry Technologies		Corporate and Other			Total

2017
Net revenue from external customers	$	243,106	$	73,992	$	—		$	317,098
Income (loss) from operations	33,611		7,465		(43,931		)	(2,855		)
Depreciation and amortization	7,323		2,391		2,445			12,159
Capital expenditures	3,279		4,763		918			8,960

2016
Net revenue from external customers	$	188,233	$	74,599	$	—		$	262,832
Income (loss) from operations	29,014		9,664		(45,982		)	(7,304		)
Depreciation and amortization	5,935		2,257		2,237			10,429
Capital expenditures	10,674		888		2,398			13,960

2015
Net revenue from external customers	$	213,592	$	56,374	$	—		$	269,966
Income (loss) from operations	43,902		8,742		(40,366		)	12,278
Depreciation and amortization	4,791		2,202		1,742			8,735
Capital expenditures	12,803		568		3,020			16,391

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



	December 31, 2017		December 31, 2016
Energy Chemistry Technologies	$	177,797	$	184,328
Consumer and Industrial Chemistry Technologies	116,600		98,105
Corporate and Other	35,491		56,882
Total segments	329,888		339,315
Held for sale	—		43,900
Total assets	$	329,888	$	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):



	Year ended December 31,
	2017		2016		2015
U.S.	$	259,610	$	210,890	$	227,117
Other countries	57,488		51,942		42,849
Total	$	317,098	$	262,832	$	269,966

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,
	2017	2016	2015
Customer A	12.8%	15.7%	17.2%
Customer B	8.9%	13.2%	14.6%
Customer C	4.0%	6.9%	10.6%

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