9.	Segment Information

The Company reports net revenues from operating income by reportable segment. Reportable segments are components of the Company for which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company provides similar merchandising, business technology and marketing services throughout the world, operating within

two

reportable segments, its Domestic Division and its International Division. The Company uses those divisions to improve its administration and operational and strategic focuses, and it tracks and reports certain financial information separately for each of those divisions. The Company measures the performance of its Domestic and International Divisions and subsidiaries using the same metrics. The primary measurement utilized by management is operating profits, historically the key indicator of long-term growth and profitability, as the Company is focused on reinvesting the operating profits of each of its international subsidiaries back into its local markets in an effort to improve market share and continued expansion efforts.

The accounting policies of each of the reportable segments are the same as those described in the Summary of Significant Accounting Policies. Management evaluates performance as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019			2018			2019			2018
Revenue:
United States	$	26,480		$	22,412		$	73,142		$	62,338
International		39,960			35,976			118,681			109,853
Total revenue	$	66,440		$	58,388		$	191,823		$	172,191

Operating income (loss):
United States	$	1,273		$	1,085		$	4,633		$	(1,135	)
International		1,774			1,239			4,374			2,952
Total operating income	$	3,047		$	2,324		$	9,007		$	1,817

Interest expense:
United States	$	130		$	68		$	377		$	130
International		86			265			228			756
Total interest expense	$	216		$	333		$	605		$	886

Other (income), net:
United States	$	(1	)	$	-		$	(2	)	$	–
International		(10	)		(109	)		(266	)		(413	)
Total other (income), net	$	(11	)	$	(109	)	$	(268	)	$	(413	)

Income (loss) before income tax expense:
United States	$	1,144		$	1,017		$	4,258		$	(1,265	)
International		1,698			1,083			4,412			2,609
Total income before income tax expense	$	2,842		$	2,100		$	8,670		$	1,344

Income tax expense (benefit):
United States	$	217		$	255		$	918		$	(191	)
International		543			164			1,827			526
Total income tax expense	$	760		$	419		$	2,745		$	335

Net income (loss):
United States	$	927		$	762		$	3,340		$	(1,074	)
International		1,155			919			2,585			2,083
Total net income	$	2,082		$	1,681		$	5,925		$	1,009

Net (income) attributable to non-controlling interest:
United States	$	(380	)	$	(496	)	$	(1,155	)	$	(654	)
International		(795	)		(564	)		(1,725	)		(1,373	)
Total net (income) attributable to non-controlling interest	$	(1,175	)	$	(1,060	)	$	(2,880	)	$	(2,027	)

Net income (loss) attributable to SPAR Group, Inc.:
United States	$	547		$	266		$	2,185		$	(1,728	)
International		360			355			860			710
Total net income (loss) attributable to SPAR Group, Inc.	$	907		$	621		$	3,045		$	(1,018	)

Depreciation and amortization:
United States	$	390		$	358		$	1,144		$	1,079
International		134			164			419			516
Total depreciation and amortization	$	524		$	522		$	1,563		$	1,595

Capital expenditures:
United States	$	418		$	293		$	1,140		$	1,200
International		25			96			238			140
Total capital expenditures	$	443		$	389		$	1,378		$	1,340

Note: There were

inter-company sales for the

three

and

nine

months ended

September 30, 2019

2018

	September 30,		December 31,
	2019		2018
Assets:
United States	$	35,094	$	27,280
International		52,000		41,815
Total assets	$	87,094	$	69,095

	September 30,		December 31,
	2019		2018
Long lived assets:
United States	$	4,884	$	2,560
International		5,372		1,715
Total long lived assets	$	10,256	$	4,275

Geographic Data

(in thousands)

	Three Months Ended September 30,										Nine Months Ended September 30,
	2019					2018					2019					2018
			% of					% of					% of					% of
			consolidated					consolidated					consolidated					consolidated
International revenue:			net revenue					net revenue					net revenue					net revenue
Brazil	$	16,829		25.3	%	$	12,645		21.7	%	$	48,974		25.5	%	$	39,100		22.7	%
South Africa		6,589		9.9			6,807		11.7			19,565		10.2			21,651		12.6
Mexico		5,676		8.5			5,142		8.8			16,627		8.7			15,738		9.1
China		2,889		4.3			3,338		5.7			9,348		4.9			9,870		5.7
Japan		2,777		4.2			3,080		5.3			8,372		4.4			8,086		4.7
Canada		2,267		3.4			2,065		3.5			6,538		3.4			6,871		4.0
India		2,107		3.2			1,947		3.3			6,670		3.5			5,725		3.3
Australia		759		1.1			892		1.5			2,386		1.2			2,629		1.5
Turkey		67		0.1			60		0.1			201		0.1			183		0.1
Total international revenue	$	39,960		60.0	%	$	35,976		61.6	%	$	118,681		61.9	%	$	109,853		63.7	%