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 March 31,	Energy Chemistry Technologies			Consumer and Industrial Chemistry Technologies		Corporate and Other			Total
2018
Net revenue from external customers	$	41,069		$	19,447	$	—		$	60,516
Income (loss) from operations	(166		)	2,438		(9,057		)	(6,785		)
Depreciation and amortization	1,769			669		564			3,002
Capital expenditures	1,011			410		366			1,787

2017
Net revenue from external customers	$	60,765		$	19,189	$	—		$	79,954
Income (loss) from operations	8,548			3,705		(12,876		)	(623		)
Depreciation and amortization	1,849			579		604			3,032
Capital expenditures	514			500		863			1,877

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



	March 31, 2018		December 31, 2017
Energy Chemistry Technologies	$	169,170	$	177,797
Consumer and Industrial Chemistry Technologies	130,702		116,600
Corporate and Other	38,950		35,491
Total assets	$	338,822	$	329,888

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,
	2018		2017
U.S.	$	46,044	$	64,649
Other countries	14,472		15,305
Total	$	60,516	$	79,954

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,
	2018	2017
Customer A	*	12.1	%

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

Over 95% of the revenue from this customer was for sales in the Energy Chemistry Technologies segment in 2017.