14. Business Segments

At December 31, 2017, the Company had three business segments: (i) contract drilling of oil and natural gas wells, (ii) pressure pumping services and (iii) directional drilling services. Each of these segments represents a distinct type of business. These segments have separate management teams which report to the Company’s chief operating decision maker. The results of operations in these segments are regularly reviewed by the chief operating decision maker for purposes of determining resource allocation and assessing performance.

Contract Drilling — The Company markets its contract drilling services to major and independent oil and natural gas operators. As of December 31, 2017, the Company had 295 marketed land-based drilling rigs in the continental United States and western Canada.

For the years ended December 31, 2017, 2016 and, 2015, contract drilling revenue earned in Canada was $13.7 million, $15.6 million and $37.5 million, respectively. Additionally, long-lived assets within the contract drilling segment located in Canada totaled $52.0 million and $44.0 million as of December 31, 2017 and 2016, respectively.

Pressure Pumping — The Company provides pressure pumping services to oil and natural gas operators primarily in Texas and the Mid-Continent and Appalachian regions. Pressure pumping services are primarily well stimulation services (such as hydraulic fracturing) and cementing services for the completion of new wells and remedial work on existing wells. Well stimulation involves processes inside a well designed to enhance the flow of oil, natural gas, or other desired substances from the well. Cementing is the process of inserting material between the wall of the well bore and the casing to support and stabilize the casing.

Directional Drilling — The Company provides a comprehensive suite of directional drilling services in most major producing onshore oil and gas basins in the United States.

Major Customer — During 2017, no single customer accounted for more than 10% of the Company’s consolidated operating revenues. During 2016, one customer accounted for approximately $124 million or 14% of the Company’s consolidated operating revenues. During 2015, one customer accounted for approximately $244 million or 13% of the Company’s consolidated operating revenues. These revenues in 2015 and 2016 were earned in both the Company’s contract drilling and pressure pumping businesses.

The following tables summarize selected financial information relating to the Company’s business segments (in thousands):

	Year Ended December 31,
	2017			2016			2015
Revenues:
Contract drilling	$	1,041,492		$	544,196		$	1,155,565
Pressure pumping		1,200,311			354,070			712,454
Directional drilling		45,580			—			—
Other operations(a)		76,781			18,299			24,931
Elimination of intercompany revenues(b)		(7,480	)		(699	)		(1,673	)
Total revenues	$	2,356,684		$	915,866		$	1,891,277

Income (loss) before income taxes:
Contract drilling	$	(171,897	)	$	(235,858	)	$	(78,970	)
Pressure pumping		21,028			(176,628	)		(254,998	)
Directional drilling		(21	)		—			—
Other operations		(20,813	)		(3,391	)		(14,269	)
Corporate		(152,792	)		(54,672	)		(57,088	)
Other operating income (expense), net (c)		31,957			14,323			(1,647	)
Interest income		1,866			327			964
Interest expense		(37,472	)		(40,366	)		(36,475	)
Other		343			69			34
Loss before income taxes	$	(327,801	)	$	(496,196	)	$	(442,449	)

Identifiable assets:
Contract drilling	$	3,931,994		$	3,032,819		$	3,457,044
Pressure pumping		1,209,424			653,630			813,704
Directional drilling		301,275			—			—
Other operations		172,094			48,885			38,726
Corporate(d)		144,069			36,957			155,574
Total assets	$	5,758,856		$	3,772,291		$	4,465,048

Depreciation, depletion, amortization and impairment:
Contract drilling	$	538,891		$	467,974		$	618,434
Pressure pumping		198,006			184,872			214,552
Directional drilling		9,347			—			—
Other operations		29,402			10,114			26,301
Corporate		7,695			5,474			5,472
Total depreciation, depletion, amortization and impairment	$	783,341		$	668,434		$	864,759

Capital expenditures:
Contract drilling	$	354,425		$	72,508		$	527,054
Pressure pumping		171,436			39,584			197,577
Directional drilling		7,795			—			—
Other operations		31,547			6,116			16,625
Corporate		1,884			1,591			2,520
Total capital expenditures	$	567,087		$	119,799		$	743,776

(a)	Other operations includes the Company’s oilfield rental tools business, pipe handling components and related technology business, the oil and natural gas working interests and the Middle East/North Africa activities.

(b)

In 2017, intercompany revenues consists of contract drilling and revenues from other operations for services provided to contract drilling, pressure pumping and within other operations. In 2016, intercompany revenues consists of contract drilling and revenues within other operations. In 2015, intercompany revenues only consisted of contract drilling.

(c)

Other operating income (expense), net includes net gains or losses associated with the disposal of assets relate to corporate strategy decisions of the executive management group. Accordingly, the related gains or losses have been separately presented and excluded from the results of specific segments. This caption also includes expenses related to certain legal settlements net of insurance reimbursements.

(d)	Corporate assets primarily include cash on hand, income tax receivables, certain property and equipment, and certain deferred tax assets.