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
2018
Net revenue from external customers	$	53,709	$	17,280	$	—		$	70,989
Income (loss) from operations	3,920		858		(8,000		)	(3,222		)
Depreciation and amortization	1,734		699		524			2,957
Capital expenditures	302		171		861			1,334

2017
Net revenue from external customers	$	61,167	$	18,291	$	—		$	79,458
Income (loss) from operations	6,867		985		(10,955		)	(3,103		)
Depreciation and amortization	1,863		590		614			3,067
Capital expenditures	324		682		641			1,647



For the nine months ended September 30,	Energy Chemistry Technologies			Consumer and Industrial Chemistry Technologies		Corporate and Other			Total
2018
Net revenue from external customers	$	134,324		$	56,267	$	—		$	190,591
Income (loss) from operations	(34,175		)	3,937		(26,270		)	(56,508		)
Depreciation and amortization	5,300			2,049		1,635			8,984
Capital expenditures	2,480			767		1,314			4,561

2017
Net revenue from external customers	$	187,807		$	56,782	$	—		$	244,589
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

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



	September 30, 2018		December 31, 2017
Energy Chemistry Technologies	$	145,853	$	172,799
Consumer and Industrial Chemistry Technologies	132,381		116,600
Corporate and Other	15,068		35,491
Total segments	293,302		324,890
Held for sale	—		4,998
Total assets	$	293,302	$	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, except as noted below. Revenue by geographic location is as follows (in thousands):



	Three months ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017
U.S.	$	45,269	$	66,638	$	137,915	$	203,123
Other countries *	25,720		12,820		52,676		41,466
Total	$	70,989	$	79,458	$	190,591	$	244,589


*	During the three months ended September 30, 2018, revenue for products used and services provided in Saudi Arabia was $13.2 million, or 18.6% of total quarterly revenue.

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,
	2018		2017		2018	2017
Customer A	19.4	%	*		*	*
Customer B	*		13.3	%	*	12.9	%

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

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