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Reportable Segments and Geographic Information
 12 Months Ended
Dec. 31, 2015
Segment Reporting [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 two reportable segments which we operate within the U.S.: contract operations and aftermarket services. The contract operations segment primarily provides natural gas compression services to meet specific customer requirements. The aftermarket services segment provides a full range of services to support the compression needs of customers, from parts sales and normal maintenance services to full operation of a customer’s owned assets.

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

During each of the years ended December 31, 2015 and 2014, Williams Partners, L.P. accounted for approximately 12% and 10%, respectively, of our consolidated revenue. No other customer accounted for more than 10% of our consolidated revenue during the years ended December 31, 2015 and 2014 and no single customer accounted for more than 10% of our consolidated revenue during the year ended December 31, 2013.

The following table presents sales and other financial information by reportable segment during the years ended December 31, 2015, 2014 and 2013 (in thousands):

 

Contract
Operations
 
Aftermarket
Services
 
Reportable
Segments
Total
 
Other (1)
 
Total (2)
2015:
 

 
 

 
 

 
 

 
 

Revenue from external customers
$
781,166

 
$
216,942

 
$
998,108

 
$
—

 
$
998,108

Gross margin (3)
461,765

 
41,297

 
503,062

 
—

 
503,062

Total assets
2,248,191

 
149,008

 
2,397,199

 
287,944

 
2,685,143

Capital expenditures
227,248

 
2,296

 
229,544

 
26,598

 
256,142

 
 
 
 
 
 
 
 
 
 
2014:
 

 
 

 
 

 
 

 
 

Revenue from external customers
$
729,103

 
$
230,050

 
$
959,153

 
$
—

 
$
959,153

Gross margin (3)
412,961

 
41,799

 
454,760

 
—

 
454,760

Total assets
2,446,633

 
62,485

 
2,509,118

 
334,516

 
2,843,634

Capital expenditures
371,734

 
825

 
372,559

 
11,282

 
383,841

 
 
 
 
 
 
 
 
 
 
2013:
 

 
 

 
 

 
 

 
 

Revenue from external customers
$
627,844

 
$
234,928

 
$
862,772

 
$
—

 
$
862,772

Gross margin (3)
345,355

 
46,439

 
391,794

 
—

 
391,794

Total assets
1,907,097

 
67,693

 
1,974,790

 
238,220

 
2,213,010

Capital expenditures
275,408

 
935

 
276,343

 
15,187

 
291,530


(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, in total, to net income (loss), its most directly comparable measure calculated and presented in accordance with U.S. GAAP, below.

The following table presents assets from reportable segments to total assets as of December 31, 2015 and 2014 (in thousands):

 
December 31,
 
2015
 
2014
Assets from reportable segments
$
2,397,199

 
$
2,509,118

Other assets (1)
287,944

 
334,516

Assets associated with discontinued operations
21,620

 
2,083,205

Consolidated assets
$
2,706,763

 
$
4,926,839


(1) 
Includes corporate related items.

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 to evaluate 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 income (loss) to gross margin (in thousands):

 
Years Ended December 31,
 
2015
 
2014
 
2013
Net income (loss)
$
(98,966
)
 
$
125,882

 
$
155,742

Selling, general and administrative
131,919

 
132,651

 
118,851

Depreciation and amortization
229,127

 
212,268

 
187,476

Long-lived asset impairment
124,979

 
42,828

 
16,696

Restructuring charges
4,745

 
5,394

 
—

Goodwill impairment
3,738

 
—

 
—

Interest expense
107,617

 
112,273

 
112,194

Debt extinguishment costs
9,201

 
—

 
—

Other (income) expense, net
(2,079
)
 
(5,475
)
 
(22,535
)
Provision for (benefit from) income taxes
53,189

 
(28,066
)
 
(17,840
)
Income from discontinued operations, net of tax
(60,408
)
 
(142,995
)
 
(158,790
)
Gross margin
$
503,062

 
$
454,760

 
$
391,794