BUSINESS SEGMENTS

Our business is organized into two segments: DynaEnergetics and NobelClad. DynaEnergetics designs, manufactures and distributes products utilized by the global oil and gas industry principally for the perforation of oil and gas wells. NobelClad is a global leader in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints.

Our reportable segments are separately managed strategic business units that offer different products and services. Each segment’s products are marketed to different customer types and require different manufacturing processes and technologies.

Segment information is as follows:



	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Net sales
DynaEnergetics	$	77,356	$	66,250	$	245,820	$	174,270
NobelClad	22,738		21,633		65,363		61,841
Net sales	$	100,094	$	87,883	$	311,183	$	236,111



	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Operating income
DynaEnergetics	$	14,911		$	9,860		$	64,834		$	30,801
NobelClad	2,219			2,099			$	5,972		$	3,791
Segment operating income	17,130			11,959			70,806			34,592

Unallocated corporate expenses	(3,067		)	(2,269		)	(8,972		)	(7,569		)
Stock-based compensation	(1,242		)	(870		)	(3,908		)	(2,662		)
Other income (expense), net	170			(335		)	492			(1,039		)
Interest expense, net	(387		)	(495		)	(1,169		)	(1,096		)
Income before income taxes	$	12,604		$	7,990		$	57,249		$	22,226



	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Depreciation and amortization
DynaEnergetics	$	1,772	$	1,595	$	4,890	$	4,729
NobelClad	845		802		2,477		2,435
Segment depreciation and amortization	$	2,617	$	2,397	$	7,367	$	7,164

The disaggregation of revenue earned from contracts with customers based on the geographic location of the customer is as follows.

DynaEnergetics



	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
United States	$	67,361	$	54,281	210,642		134,575
Canada	2,586		5,904		8,962		20,245
United Arab Emirates	349		146		4,447		1,034
France	10		3		51		76
Ukraine	106		1,172		3,516		2,685
Germany	455		41		535		122
Russia	775		646		1,830		3,072
India	160		678		236		1,507
Egypt	876		321		2,610		1,397
Indonesia	225		16		1,406		200
Iraq	218		—		1,104		318
China	—		59		28		115
Italy	164		82		182		113
Hong Kong	60		178		121		479
Australia	494		112		618		365
Rest of the world	3,517		2,611		9,532		7,967
Total DynaEnergetics	$	77,356	$	66,250	$	245,820	$	174,270

NobelClad



	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
United States	$	12,883	$	9,815	34,830		22,296
Canada	1,143		1,415		4,502		4,839
United Arab Emirates	287		346		1,561		737
France	529		508		2,182		3,203
South Korea	438		143		1,319		1,974
Germany	1,210		1,459		3,041		3,712
India	267		1,284		546		2,086
Spain	1,029		268		1,375		900
Italy	—		471		664		1,547
Oman	51		424		276		635
China	—		1,217		—		9,061
Netherlands	519		504		1,531		1,816
Norway	1,359		226		3,519		513
Sweden	400		1,394		1,538		1,972
Australia	241		299		1,086		299
Rest of the world	2,382		1,860		7,393		6,251
Total NobelClad	$	22,738	$	21,633	$	65,363	$	61,841

During the three months ended September 30, 2019, no customer accounted for greater than 10% of consolidated net sales, while during the three months ended September 30, 2018, two customers accounted for greater than 10% of consolidated net sales. During the nine months ended September 30, 2019 and 2018, no customers were responsible for more than 10% of consolidated net sales.