12.Segment Information

We operate principally in the contract drilling industry. The contract drilling operations consist mainly of contracting Company-owned drilling equipment primarily to large oil and gas exploration companies. Our contract drilling business includes the following reportable operating segments: U.S. Land, Offshore and International Land. Each reportable operating segment is a strategic business unit that is managed separately. Our primary international areas of operation include Argentina, Bahrain, Colombia, U.A.E. and other South American and Middle Eastern countries. Other includes additional non-reportable operating segments. Revenues included in Other consist of rental income as well as technology services provided for the directional drilling process and MWD survey corrections. Consolidated revenues and expenses reflect the elimination of intercompany transactions.

We evaluate segment performance based on income or loss from continuing operations (segment operating income) before income taxes which includes:

revenues from external and internal customers

direct operating costs

depreciation and

allocated general and administrative costs

but excludes corporate costs for other depreciation, income from asset sales and other corporate income and expense.

General and administrative costs are allocated to the segments based primarily on specific identification and, to the extent that such identification is not practical, on other methods which we believe to be a reasonable reflection of the utilization of services provided.

Segment operating income for all segments is a non-GAAP financial measure of our performance, as it excludes certain general and administrative expenses, corporate depreciation, income from asset sales and other corporate income and expense. We consider segment operating income to be an important supplemental measure of operating performance by presenting trends in our core businesses. We use this measure to facilitate period-to-period comparisons in operating performance of our reportable segments in the aggregate by eliminating items that affect comparability between periods. We believe that segment operating income is useful to investors because it provides a means to evaluate the operating performance of the segments on an ongoing basis using criteria that are used by our internal decision makers. Additionally, it highlights operating trends and aids analytical comparisons. However, segment operating income has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect our operating performance in future periods.

Summarized financial information of our reportable segments for the three months ended June 30, 2018 and 2017 is shown in the following tables:


							Segment
	External		Inter-		Total		Operating
(in thousands)	Sales		Segment		Sales		Income (Loss)
June 30, 2018
Contract Drilling
U.S. Land	$	536,582	$	599	$	537,181	$	34,339
Offshore		37,669		—		37,669		3,780
International Land		63,297		—		63,297		4,332
		637,548		599		638,147		42,451
Other		11,324		303		11,627		(7,226)
		648,872		902		649,774		35,225
Eliminations		—		(902)		(902)		—
Total	$	648,872	$	—	$	648,872	$	35,225

							Segment
	External		Inter-		Total		Operating
(in thousands)	Sales		Segment		Sales		Income (Loss)
June 30, 2017
Contract Drilling
U.S. Land	$	405,516	$	—	$	405,516	$	(7,980)
Offshore		33,711		—		33,711		6,456
International Land		55,075		—		55,075		4,927
		494,302		—		494,302		3,403
Other		4,262		222		4,484		(2,569)
		498,564		222		498,786		834
Eliminations		—		(222)		(222)		—
Total	$	498,564	$	—	$	498,564	$	834

Summarized financial information of our reportable segments for the nine months ended June 30, 2018 and 2017 is shown in the following tables:


							Segment
	External		Inter-		Total		Operating
(in thousands)	Sales		Segment		Sales		Income (Loss)
June 30, 2018
Contract Drilling
U.S. Land	$	1,480,951	$	634	$	1,481,585	$	86,159
Offshore		104,018		—		104,018		17,954
International Land		178,970		—		178,970		7,171
		1,763,939		634		1,764,573		111,284
Other		26,504		775		27,279		(21,558)
		1,790,443		1,409		1,791,852		89,726
Eliminations		—		(1,409)		(1,409)		—
Total	$	1,790,443	$	—	$	1,790,443	$	89,726

							Segment
	External		Inter-		Total		Operating
(in thousands)	Sales		Segment		Sales		Income (Loss)
June 30, 2017
Contract Drilling
U.S. Land	$	1,000,119	$	—	$	1,000,119	$	(90,718)
Offshore		103,758		—		103,758		19,152
International Land		157,863		—		157,863		(5,225)
		1,261,740		—		1,261,740		(76,791)
Other		10,697		638		11,335		(5,752)
		1,272,437		638		1,273,075		(82,543)
Eliminations		—		(638)		(638)		—
Total	$	1,272,437	$	—	$	1,272,437	$	(82,543)

The following table reconciles segment operating income (loss) per the table above to income (loss) from continuing operations before income taxes as reported on the Condensed Consolidated Statements of Operations:


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
	(in thousands)				(in thousands)

Segment operating income (loss)	$	35,225	$	834	$	89,726	$	(82,543)
Income from asset sales		4,313		1,862		15,133		17,593
Corporate general and administrative costs and corporate depreciation		(33,321)		(30,724)		(96,375)		(77,914)
Operating income (loss)		6,217		(28,028)		8,484		(142,864)
Other income (expense)
Interest and dividend income		2,109		1,700		5,680		4,028
Interest expense		(5,993)		(6,364)		(17,794)		(17,503)
Other		28		(911)		437		(350)
Total unallocated amounts		(3,856)		(5,575)		(11,677)		(13,825)
Income (loss) from continuing operations before income taxes	$	2,361	$	(33,603)	$	(3,193)	$	(156,689)

The following table presents total assets by reportable segment:


	June 30,		September 30,
	2018		2017
	(in thousands)

Total assets
U.S. Land	$	4,977,734	$	4,967,074
Offshore		98,473		99,533
International Land		388,427		413,392
Other		182,731		133,085
		5,647,365		5,613,084
Investments and corporate operations		618,507		826,901
Total assets from continuing operations		6,265,872		6,439,985
Discontinued operations		—		3
	$	6,265,872	$	6,439,988

The following table presents revenues from external customers by country based on the location of service provided:


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
	(in thousands)				(in thousands)

Operating Revenues
United States	$	585,126	$	443,489	$	1,610,319	$	1,114,574
Argentina		50,272		43,167		148,901		114,516
Colombia		10,639		9,356		22,872		27,579
Other Foreign		2,835		2,552		8,351		15,768
Total	$	648,872	$	498,564	$	1,790,443	$	1,272,437