NOTE 17. SEGMENT REPORTING

The Company’s operations are all located in the United States and organized into two reportable segments: Well Services and Processing Solutions. The Company’s reportable segments comprise the structure used by its Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance during the years presented in the accompanying condensed consolidated financial statements. The Company’s CODM evaluates the segments’ operating performance based on multiple measures including Adjusted EBITDA, rig hours and rig utilization. The following is a description of the segments:

Well Services. The Company’s well service rigs facilitate operations throughout the lifecycle of a well, including (i) well completion support; (ii) workover; (iii) well maintenance; and (iv) decommissioning. The Company provides these advanced well services to exploration & production (“E&P”) companies, particularly to those operating in unconventional oil and natural gas reservoirs and requiring technically and operationally advanced services. The Company’s well service rigs are designed to support growing U.S. horizontal well demands. In addition to its core well service rig operations, the Company offers a suite of complementary services, including wireline, snubbing, fluid management and well service-related equipment rentals.

Processing Solutions. The Company provides a range of proprietary, modular equipment for the processing of rich natural gas streams at the wellhead or central gathering points in basins where drilling and completion activity has outpaced the development of permanent processing infrastructure.

Other. The Company incurs costs, indicated as Other, that are not allocable to either of the operating segments, and includes mostly corporate general and administrative expenses as well as depreciation of office furniture and fixtures and other corporate assets. Prior to the Offering and subsequent reorganization, the Well Services and Processing Solutions were run as separate companies, therefore there were no such costs or assets

Segment information as of March 31, 2018 and December 31, 2017 and for the three months ended March 31, 2018 and 2017 is as follows (in millions):


					Processing
	Other		Well Services		Solutions		Total
			Three months ended March 31, 2018
Revenues	$	—	$	59.7	$	2.9	$	62.6
Cost of services	$	—	$	49.9	$	1.4	$	51.3
Depreciation and amortization	$	0.2	$	5.6	$	0.3	$	6.1
Impairment of goodwill	$	—	$	9.0	$	—	$	9.0
Operating income (loss)	$	(6.5)	$	(4.8)	$	0.5	$	(10.8)
Interest expense, net	$	(0.4)	$	—	$	—	$	(0.4)
Net income (loss)	$	(7.1)	$	(3.7)	$	0.5	$	(10.3)
Capital expenditures	$	—	$	10.1	$	2.2	$	12.3
			As of March 31, 2018
Property, plant and equipment	$	6.3	$	166.2	$	27.4	$	199.9
Total assets	$	6.3	$	226.3	$	29.9	$	262.5


					Processing
	Other		Well Services		Solutions		Total
			Three months ended March 31, 2017
Revenues	$	—	$	27.3	$	1.8	$	29.1
Cost of services	$	—	$	23.2	$	0.7	$	23.9
Depreciation and amortization	$	—	$	3.3	$	0.3	$	3.6
Impairment of goodwill	$	—	$	—	$	—	$	—
Operating income (loss)	$	—	$	(5.9)	$	0.2	$	(5.7)
Interest expense, net	$	—	$	(0.5)	$	—	$	(0.5)
Net income (loss)	$	—	$	(6.4)	$	0.2	$	(6.2)
Capital expenditures	$	—	$	11.7	$	0.1	$	11.8
			As of December 31, 2017
Property, plant and equipment	$	6.4	$	157.4	$	25.4	$	189.2
Total assets	$	6.4	$	225.1	$	28.2	$	259.7