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Reportable Segments and Geographic Information
 12 Months Ended
Dec. 31, 2011
Reportable Segments and Geographic Information [Abstract]  
Reportable Segments and Geographic Information

22. Reportable Segments and Geographic Information

We manage our business segments primarily based upon the type of product or service provided. We have four principal segments: North America contract operations, international contract operations, aftermarket services and fabrication. The North America and international contract operations segments primarily provide natural gas compression services, production and processing equipment services and maintenance services to meet specific customer requirements on Exterran-owned assets. The aftermarket services segment provides a full range of services to support the surface production, compression and processing needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets. The fabrication segment provides (i) design, engineering, fabrication, installation and sale of natural gas compression units and accessories and equipment used in the production, treating and processing of crude oil and natural gas and (ii) engineering, procurement and fabrication services primarily related to the manufacturing of critical process equipment for refinery and petrochemical facilities, the fabrication of tank farms and the fabrication of evaporators and brine heaters for desalination plants.

We evaluate the performance of our segments based on gross margin for each segment. Revenues include only sales to external customers. We do not include intersegment sales when we evaluate the performance of our segments.

 

No individual customer accounted for more than 10% of our consolidated revenues during any of the periods presented. The following table presents sales and other financial information by reportable segment for the years ended December 31, 2011, 2010 and 2009 (in thousands):

 

 

                                                         
    North  America
Contract
Operations		     International
Contract
Operations		     Aftermarket
Services		     Fabrication     Reportable
Segments
Total		     Other(1)     Total(2)  

2011:

                                                        

Revenue from external customers

   $ 603,529     $ 445,059     $ 409,423     $ 1,225,459     $  2,683,470     $ —       $  2,683,470  

Gross margin(3)

     293,460       260,654       60,761       123,222       738,097       —         738,097  

Total assets

     2,052,170       887,046       111,890       384,099       3,435,205       921,444       4,356,649  

Capital expenditures

     192,470       58,767       2,082       22,077       275,396       7,395       282,791  
               

2010:

                                                        

Revenue from external customers

   $ 608,065     $ 465,144     $ 322,097     $ 1,066,227     $ 2,461,533     $ —       $ 2,461,533  

Gross margin(3)

     307,379       289,787       45,790       161,505       804,461       —         804,461  

Total assets

     2,061,755       976,700       160,864       580,255       3,779,574       946,872       4,726,446  

Capital expenditures

     111,087       106,530       1,348       12,187       231,152       4,838       235,990  
               

2009:

                                                        

Revenue from external customers

   $ 695,315     $ 391,995     $ 308,873     $ 1,319,418     $ 2,715,601     $ —       $ 2,715,601  

Gross margin(3)

     396,601       242,742       62,987       213,252       915,582       —         915,582  

Total assets

     2,357,751       988,257       148,548       720,482       4,215,038       1,019,372       5,234,410  

Capital expenditures

     108,985       236,450       2,629       10,592       358,656       10,245       368,901  

The following table presents assets from reportable segments to total assets as of December 31, 2011 and 2010 (in thousands):

 

 

                 
    2011     2010  

Assets from reportable segments

   $  3,435,205     $  3,779,574  

Other assets(1)

     921,444       946,872  

Assets associated with discontinued operations

     4,013       15,090  
   

 

 

    

 

 

  

Consolidated assets

   $ 4,360,662     $ 4,741,536  

The following table presents geographic data as of and for the years ended December 31, 2011, 2010 and 2009 (in thousands):

 

 

                         
    U.S.     International     Consolidated  

2011:

                        

Revenues from external customers

   $  1,453,758     $  1,229,712     $  2,683,470  

Property, plant and equipment, net

   $ 1,993,082     $ 1,011,370     $ 3,004,452  
       

2010:

                        

Revenues from external customers

   $ 1,090,096     $ 1,371,437     $ 2,461,533  

Property, plant and equipment, net

   $ 1,985,180     $ 1,107,472     $ 3,092,652  
       

2009:

                        

Revenues from external customers

   $ 1,332,641     $ 1,382,960     $ 2,715,601  

Property, plant and equipment, net

   $ 2,278,172     $ 1,126,182     $ 3,404,354  

 

(1) Includes corporate related items.
(2) Totals exclude assets, capital expenditures and the operating results of discontinued operations.
(3) Gross margin, a non-GAAP financial measure, is reconciled to net loss below.

 

We define gross margin as total revenue less cost of sales (excluding depreciation and amortization expense). Gross margin is included as a supplemental disclosure because it is a primary measure used by our management as it represents the results of revenue and cost of sales (excluding depreciation and amortization expense), which are key components of our operations. As an indicator of our operating performance, gross margin should not be considered an alternative to, or more meaningful than, net income (loss) as determined in accordance with GAAP. Our gross margin may not be comparable to a similarly titled measure of another company because other entities may not calculate gross margin in the same manner.

The following table reconciles net loss to gross margin (in thousands):

 

 

                         
    Years Ended December 31,  
    2011     2010     2009  

Net loss

   $  (339,618 )    $  (113,241 )    $  (545,463 ) 

Selling, general and administrative

     359,382       358,255       337,620  

Depreciation and amortization

     365,870       401,478       352,785  

Long-lived asset impairment

     7,012       146,903       96,988  

Restructuring charges

     11,627       —         14,329  

Goodwill impairment

     196,807       —         150,778  

Interest expense

     149,473       136,149       122,845  

Equity in loss of non-consolidated affiliates

     471       609       91,154  

Other (income) expense, net

     (5,425 )      (13,763 )      (53,360 ) 

Provision for (benefit from) income taxes

     (13,465 )      (66,606 )      51,667  

(Income) loss from discontinued operations, net of tax

     5,963       (45,323 )      296,239  
   

 

 

    

 

 

    

 

 

  

Gross margin

   $ 738,097     $ 804,461     $ 915,582