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Reportable Segments
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Reportable Segments
15.  Reportable Segments
 
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 part 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.

The following table presents revenue and other financial information by reportable segment during the three and six months ended June 30, 2016 and 2015 (in thousands):
 
 
Contract
Operations
 
Aftermarket
Services
 
Reportable
Segments
Total
Three months ended June 30, 2016:
 
 
 
 
 
Revenue from external customers
$
162,973

 
$
41,172

 
$
204,145

Gross margin
104,107

 
6,819

 
110,926

Three months ended June 30, 2015:
 
 
 
 
 
Revenue from external customers
$
198,259

 
$
56,803

 
$
255,062

Gross margin
117,038

 
10,959

 
127,997

Six months ended June 30, 2016:
 
 
 
 
 
Revenue from external customers
$
339,212

 
$
78,228

 
$
417,440

Gross margin
212,167

 
13,513

 
225,680

Six months ended June 30, 2015:
 
 
 
 
 
Revenue from external customers
$
400,520

 
$
107,415

 
$
507,935

Gross margin
236,620

 
20,794

 
257,414



The following table reconciles total gross margin to income (loss) before income taxes (in thousands):

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Total gross margin
$
110,926

 
$
127,997

 
$
225,680

 
$
257,414

Less:
 
 
 
 
 
 
 
Selling, general and administrative
28,080

 
31,357

 
62,731

 
63,925

Depreciation and amortization
51,896

 
57,539

 
105,823

 
114,552

Long-lived asset impairment
13,808

 
9,510

 
23,668

 
17,663

Restructuring and other charges
3,004

 
1,193

 
11,069

 
1,193

Interest expense
21,177

 
28,079

 
41,477

 
54,870

Other income, net
(181
)
 
(2,482
)
 
(2,170
)
 
(3,032
)
Income (loss) before income taxes
$
(6,858
)
 
$
2,801

 
$
(16,918
)
 
$
8,243