Segment and Related Information

We operate our business through two reportable segments: Fluids Systems and Mats and Integrated Services. All intercompany revenues and related profits have been eliminated.

Fluids Systems — Our Fluids Systems segment provides drilling and completion fluids solutions to E&P customers globally, operating through four geographic regions: North America, EMEA, Latin America, and Asia Pacific. We offer customized solutions for highly technical drilling projects involving complex subsurface conditions, such as horizontal, directional, geologically deep or drilling in deep water. These projects require increased monitoring and critical engineering support of the fluids system during the drilling process. In addition, our Fluids Systems offering is expanding into adjacent areas of chemistry, including stimulation chemicals, which are utilized extensively by E&P operators in the U.S. to stimulate hydrocarbon production.

We also have industrial mineral grinding operations for barite, a critical raw material in drilling fluids products, which serve to support our activity in the North American drilling fluids market. We use the resulting products in our drilling fluids business, and also sell them to third party users, including other drilling fluids companies. We also sell a variety of other minerals, principally to third party industrial (non-oil and natural gas) markets.

Mats and Integrated Services — Our Mats and Integrated Services segment provides composite mat rentals utilized for temporary worksite access, along with site construction and related site services to customers in various markets including E&P, electrical transmission & distribution, pipeline, solar, petrochemical, and construction industries across North America and Europe. We also sell composite mats to customers around the world. We manufacture our DURA-BASE^® Advanced Composite Mats for use in our rental operations as well as for third-party sales. Our matting systems provide environmental protection and ensure all-weather access to sites with unstable soil conditions. The November 2017 acquisition of WSG expanded our range of site construction and related services we offer our customers across the U.S. to include a variety of complementary services to our composite matting systems, including access road construction, site planning and preparation, environmental protection, fluids and spill storage/containment, erosion control, and site restoration services.

Summarized financial information concerning our reportable segments is shown in the following tables:



	Year Ended December 31,
(In thousands)	2018			2017			2016

Revenues
Fluids systems	$	715,813		$	615,803		$	395,461
Mats and integrated services	230,735			131,960			76,035
Total revenues	$	946,548		$	747,763		$	471,496

Depreciation and amortization
Fluids systems	$	20,922		$	21,566		$	20,746
Mats and integrated Services	21,321			14,991			14,227
Corporate office	3,656			3,200			2,982
Total depreciation and amortization	$	45,899		$	39,757		$	37,955

Operating income (loss)
Fluids systems	$	40,337		$	27,580		$	(43,631	)
Mats and integrated services	60,604			40,491			14,741
Corporate office	(37,383		)	(36,635		)	(28,323		)
Total operating income (loss)	$	63,558		$	31,436		$	(57,213	)

Segment assets
Fluids systems	$	617,615		$	611,455		$	522,488
Mats and integrated services	270,248			260,931			164,515
Corporate office	27,991			30,330			111,180
Total assets	$	915,854		$	902,716		$	798,183

Capital expenditures
Fluids systems	$	15,356		$	17,589		$	32,310
Mats and integrated services	27,043			11,956			4,637
Corporate office	2,742			1,826			1,493
Total capital expenditures	$	45,141		$	31,371		$	38,440

As a result of the significant declines in industry activity in North America in 2015 and early 2016, we implemented cost reduction programs including workforce reductions, reduced discretionary spending, and beginning in March 2016, a temporary salary reduction for a significant number of North American employees, including executive officers, suspension of our matching contribution to the U.S. defined contribution plan as well as a reduction in cash compensation paid to our Board of Directors in order to align our cost structure to activity levels.

As part of these cost reduction programs, we reduced our North American employee base by 626 (approximately 48%) from the first quarter 2015 through the third quarter of 2016, including reductions of 436 employees in 2015 and 190 employees in the first nine months of 2016. As a result of these termination programs, we recognized charges for employee termination costs for the year ended December 31, 2016 as shown in the table below:



(In thousands)	2016
Cost of revenues	$	3,647
Selling, general and administrative expenses	925
Total employee termination costs	$	4,572

Fluids systems	$	4,125
Mats and integrated services	285
Corporate office	162
Total employee termination costs	$	4,572

The temporary reduction in salaries, suspension of our matching contribution to the U.S. defined contribution plan and reduction in cash compensation paid to our Board of Directors were lifted in the second quarter of 2017.

Our 2016 operating losses include net charges of $14.8 million resulting from the reduction in value of certain assets, the wind-down of our operations in Uruguay and the resolution of certain wage and hour litigation claims. The Fluids Systems segment operating results included $15.5 million of these charges in 2016, and the remaining $0.7 million benefit was included in Corporate office expenses in 2016 related to the resolution of certain wage and hour litigation claims.

The $15.5 million of Fluids Systems charges in 2016 included $6.9 million of non-cash impairments in the Asia Pacific region resulting from the unfavorable industry market conditions and outlook for the region in 2016, $4.1 million of charges for the reduction in carrying values of certain inventory, primarily resulting from lower of cost or market adjustments and $4.5 million of charges in the Latin America region associated with the wind-down of our operations in Uruguay, including $0.5 million to write-down property, plant and equipment. The $6.9 million of impairments in the Asia Pacific region included a $3.8 million charge to write-down property, plant and equipment to its estimated fair value and a $3.1 million charge to fully impair the customer related intangible assets in the region.

In 2016, a total of $6.7 million of these charges are reported in impairments and other charges with the remaining $8.1 million reported in cost of revenues including the $4.1 million of charges for the write-down of inventory and $4.0 million of the Uruguay exit costs.

The following table presents further disaggregated revenues for the Fluids Systems segment:



	Year Ended December 31,
(In thousands)	2018		2017		2016
United States	$	410,410	$	341,075	$	149,876
Canada	66,416		54,322		33,050
Total North America	476,826		395,397		182,926

EMEA	192,537		179,360		167,130
Asia Pacific	17,733		4,081		4,669
Latin America	28,717		36,965		40,736
Total International	238,987		220,406		212,535

Total Fluids Systems revenues	$	715,813	$	615,803	$	395,461

The following table presents further disaggregated revenues for the Mats and Integrated Services segment:



	Year Ended December 31,
(In thousands)	2018		2017		2016
Service revenues	$	93,056	$	34,943	$	17,641
Rental revenues	81,784		61,124		40,748
Product sales revenues	55,895		35,893		17,646
Total Mats and Integrated Services revenues	$	230,735	$	131,960	$	76,035

The Mats and Integrated Services segment includes the impact of the WSG acquisition completed in November 2017.

The following table sets forth geographic information for all of our operations. Revenues by geographic location are determined based on the operating location from which services are rendered or products are sold. Long-lived assets include property, plant and equipment and other long-term assets based on the country in which the assets are located.



	Year Ended December 31,
(In thousands)	2018		2017		2016
Revenues
United States	$	626,656	$	460,872	$	214,026
Canada	67,374		55,600		34,176
Algeria	81,508		87,975		80,936
All Other EMEA	124,510		102,247		96,654
Latin America	28,767		36,988		41,035
Asia Pacific	17,733		4,081		4,669
Total revenues	$	946,548	$	747,763	$	471,496

Long-lived assets
United States	$	338,475	$	337,190	$	274,746
Canada	3,284		3,993		3,922
EMEA	41,774		46,269		48,047
Latin America	1,595		2,354		4,842
Asia Pacific	2,898		3,120		1,939
Total long-lived assets	$	388,026	$	392,926	$	333,496

For 2018 and 2017, no single customer accounted for more than 10% of our consolidated revenues. For 2016, revenues from Sonatrach, our primary customer in Algeria, was approximately 14% of our consolidated revenues.