(19) Segments

The Company evaluates business segment performance based on income (loss) before income taxes exclusive of corporate general and administrative costs and interest expense, which are not allocated to the segments. Following an assessment of various alternatives regarding its Industrial Solutions business in the third quarter of 2013 and a decision to focus exclusively on its Shale Solutions business, the Company’s board of directors approved and committed to a plan to divest TFI, which comprises its Industrial Solutions operating and reportable segment, in the fourth quarter of 2013. As a result, the Company considers TFI to be held for sale (Note 20). As such, the Company’s reportable segment shown below represents the segment performance of the Company’s Shale Solutions business. Corporate/Other includes certain corporate costs and losses from discontinued operations, as well as assets held for sale and certain other corporate assets. The Company’s reportable segments at December 31, 2013 represent those used by the Company’s chief operating decision maker to evaluate performance and allocate resources and are consistent with its reportable segments at December 31, 2012. See Note 1 for information on the types of services from which the Shale Solutions segment derives its revenues.

The financial information for the Company’s reportable segments is as follows:

 

		Shale Solutions				Corporate/ Other				Total
Year ended December 31, 2013
Revenue		$	525,816			$	—			$	525,816
Depreciation and amortization			98,799				437				99,236
Loss from continuing operations before income taxes			(100,088	)			(107,047	)			(207,135	)
Additions to fixed assets			97,991				1,599				99,590
Goodwill			408,696				—				408,696
Total assets excluding those applicable to discontinued operations (a)			1,154,014				67,999				1,222,013
Total assets held for sale (b)			—				188,750				188,750
Year ended December 31, 2012
Revenue			256,671				—				256,671
Depreciation and amortization			47,641				—				47,641
Loss from continuing operations before income taxes			(23,257	)			(46,100	)			(69,357	)
Additions to fixed assets			60,900				—				60,900
Goodwill			415,176				—				415,176
Total assets excluding those applicable to discontinued operations (a)			1,299,730				47,700				1,347,430
Total assets held for sale (b)			—				296,909				296,909
Year ended December 31, 2011
Revenue			156,837				—				156,837
Depreciation and amortization			25,281				—				25,281
Income (loss) from continuing operations before income taxes			10,415				(14,300	)			(3,885	)
Additions to fixed assets			156,800				—				156,800
Goodwill			90,008				—				90,008
Total assets			447,381				92,300				539,681

 

(a)	Total assets exclude intercompany receivables eliminated in consolidation.

(b)	Represents the carrying value of the assets of discontinued operations (Note 20).

Revenues from three customers of the Shale Solutions segment each exceeded 11% of the segment’s total revenue and collectively represented approximately 40% of the segment’s total revenue for the year ended December 2013. Accounts receivables from three customers of the Shale Solutions segment each exceeded 7% of the segment’s total accounts receivable and collectively represented approximately 31% of the segment’s total accounts receivable as of December 31, 2013.

In the fourth quarter of 2013, the Company announced a plan to realign its Shale Solutions business into three operating divisions: (1) the Northeast Division comprising the Marcellus and Utica Shale areas (2) the Southern Division comprising the Haynesville, Barnett, Eagle Ford, Mississippian Shale areas and Permian Basin and (3) the Rocky Mountain Division comprising the Bakken Shale area. The implementation of this organizational realignment is ongoing and is expected to be completed in 2014. In connection with these planned organizational changes, the Company is evaluating whether the new operating divisions constitute separate operating segments and if so, whether two or more of them can be aggregated into one or more reportable segments. As the organizational realignment progresses, the Company will continue to evaluate its potential impact on its reporting units, which is a level of reporting at which goodwill is tested for impairment. A reporting unit is defined as an operating segment or one level below an operating segment. To the extent the Company concludes the composition of its reporting units have changed, the Company will be required to allocate goodwill on a relative fair value basis to the new reporting units and test the newly allocated goodwill for impairment should triggering events occur.