NOTE 16—SEGMENT INFORMATION

Select Energy Services is an oilfield services company that provides solutions to the North American onshore oil and natural gas industry. The Company’s services are offered through three operating segments. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company’s chief operating decision maker assesses performance and allocates resources on the basis of the three reportable segments. Corporate and other expenses that do not individually meet the criteria for segment reporting are reported separately as Corporate. Each operating segment reflects a reportable segment led by separate managers that report directly to the Company’s CODM. The Company’s CODM assesses performance and allocates resources on the basis of the following three reportable segments:

Water Solutions—The Water Solutions segment provides water‑related services to customers that include major integrated oil companies and independent oil and natural gas producers. These services include: the sourcing of water; the transfer of the water to the wellsite through permanent pipeline infrastructure and temporary pipe; the containment of fluids off‑ and on‑location; measuring and monitoring of water; the filtering and treatment of fluids, well testing and handling of flowback and produced formation water; and the transportation and recycling or disposal of drilling, completion and production fluids.

Accommodations and Rentals—The Accommodations and Rentals segment provides workforce accommodations and surface rental equipment supporting drilling, completion and production operations to the U.S. onshore oil and gas industry.

Wellsite Completion and Construction Services—The Wellsite Completion and Construction Services segment provides oil and natural gas operators with a variety of services, including crane and logistics services, wellsite and pipeline construction and field services. These services are performed to establish, maintain and improve production throughout the productive life of an oil or gas well, or to otherwise facilitate other services performed on a well.

Financial information as of September 30, 2017 and December 31, 2016 and for the three and nine months ended September 30, 2017 and 2016, by segment, is as follows:


	For the three months ended September 30, 2017
			Income (loss) before		Depreciation and		Capital
	Revenue		taxes		Amortization		Expenditures
	(in thousands)
Water Solutions	$	125,142	$	9,844	$	19,433	$	22,260
Accommodations and Rentals		15,974		(304)		2,908		3,541
Wellsite Completion and Construction Services		13,301		(2)		1,079		1,303
Elimination		(537)		—		—		—
Income from operations				9,538
Corporate		—		(7,081)		375		—
Interest expense, net		—		(484)		—		—
Other income, net		—		326		—		—
	$	153,880	$	2,299	$	23,795	$	27,104


	For the three months ended September 30, 2016
			Income (loss) before		Depreciation and		Capital
	Revenue		taxes		Amortization		Expenditures
	(in thousands)
Water Solutions	$	61,082	$	(28,278)	$	17,690	$	4,668
Accommodations and Rentals		5,881		(2,786)		2,644		268
Wellsite Completion and Construction Services		7,156		(1,325)		1,279		95
Elimination		(212)		—		—		—
Loss from operations				(32,389)
Corporate		—		1,123		363		—
Interest expense, net		—		(4,343)		—		—
Other income, net		—		431		—		—
	$	73,907	$	(35,178)	$	21,976	$	5,031


	For the nine months ended September 30, 2017
			Income (loss) before		Depreciation and		Capital
	Revenue		taxes		Amortization		Expenditures
	(in thousands)
Water Solutions	$	311,645	$	5,652	$	55,623	$	57,273
Accommodations and Rentals		39,056		(3,813)		8,367		8,311
Wellsite Completion and Construction Services		38,951		56		3,154		6,598
Elimination		(1,398)		—		—		—
Loss from operations				1,895
Corporate		—		(23,855)		1,312		—
Interest expense, net		—		(1,885)		—		—
Other income, net		—		3,342		—		—
	$	388,254	$	(20,503)	$	68,456	$	72,182


	For the nine months ended September 30, 2016
			Income (loss) before		Depreciation and		Capital
	Revenue		taxes		Amortization		Expenditures
	(in thousands)
Water Solutions	$	173,294	$	(264,416)	$	61,574	$	28,533
Accommodations and Rentals		19,750		(8,303)		8,197		834
Wellsite Completion and Construction Services		23,098		(3,820)		4,103		215
Elimination		(477)		—		—		—
Loss from operations				(276,539)
Corporate		—		(1,100)		1,644		—
Interest expense, net		—		(11,792)		—		—
Other income, net		—		588		—		—
	$	215,665	$	(288,843)	$	75,518	$	29,582


	Total Assets
	As of		As of
	September 30, 2017		December 31, 2016
	(in thousands)
Water Solutions	$	448,585	$	324,171
Accommodations and Rentals		50,057		38,874
Wellsite Completion and Construction Services		38,827		29,994
Corporate		15,280		12,027
	$	552,749	$	405,066