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Reportable Segments
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Reportable Segments
16.  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 months ended March 31, 2017 and 2016 (in thousands):
 
Three Months Ended
 
Contract
Operations
 
Aftermarket
Services
 
Reportable
Segments
Total
March 31, 2017:
 
 

 
 

 
 

Revenue from external customers
 
$
149,984

 
$
39,901

 
$
189,885

Gross margin
 
85,887

 
6,169

 
92,056

 
 
 
 
 
 
 
March 31, 2016:
 
 

 
 

 
 

Revenue from external customers
 
$
176,239

 
$
37,056

 
$
213,295

Gross margin
 
108,060

 
6,694

 
114,754

 
The following table reconciles total gross margin to income (loss) before income taxes (in thousands):
 
 
Three Months Ended March 31,
 
2017
 
2016
Total gross margin
$
92,056

 
$
114,754

Less:
 
 
 
Selling, general and administrative
27,553

 
34,651

Depreciation and amortization
47,772

 
53,927

Long-lived asset impairment
8,245

 
9,860

Restatement and other charges
801

 
—

Restructuring and other charges
457

 
8,065

Interest expense
21,421

 
20,300

Debt extinguishment costs
291

 
—

Other income, net
(794
)
 
(1,989
)
Loss before income taxes
$
(13,690
)
 
$
(10,060
)