Segment Information | Note 12 – Segment Information Segment information is prepared consistent with the components of the enterprise for which separate financial information is available and regularly evaluated by the chief operating decision-maker for the purpose of allocating resources and assessing performance. RigNet considers its business to consist of the following segments: • Managed Services. • Applications and Internet-of-Things & IoT). over-the-top • Systems Integration. Corporate and eliminations primarily represents unallocated executive and support activities, interest expense, income taxes and eliminations. The Company’s business segment information as of and for the three and nine months ended September 30, 2018 and 2017, is presented below. Three Months Ended September 30, 2018 Managed Applications and Internet-of- Systems Corporate and Consolidated (in thousands) Revenue $ 44,943 $ 7,463 $ 12,364 $ — $ 64,770 Cost of revenue (excluding depreciation and amortization) 27,930 3,677 9,127 — 40,734 Depreciation and amortization 5,641 1,661 605 506 8,413 Selling, general and administrative 3,779 520 380 11,965 16,644 Operating income (loss) $ 7,593 $ 1,605 $ 2,252 $ (12,471) $ (1,021) Capital expenditures 6,413 109 — — 6,522 Three Months Ended September 30, 2017 Managed Applications and Internet-of- Systems Corporate and Consolidated (in thousands) Revenue $ 40,243 $ 4,985 $ 5,616 $ — $ 50,844 Cost of revenue (excluding depreciation and amortization) 24,902 3,394 4,089 — 32,385 Depreciation and amortization 5,263 835 615 1,286 7,999 Selling, general and administrative 3,013 363 280 9,755 13,411 Operating income (loss) $ 7,065 $ 393 $ 632 $ (11,041) $ (2,951) Capital expenditures 5,655 198 — — 5,853 Nine Months Ended September 30, 2018 Managed Applications and Internet-of- Systems Corporate and Consolidated (in thousands) Revenue $ 128,705 $ 19,375 $ 30,530 $ — $ 178,610 Cost of revenue (excluding depreciation and amortization) 78,982 9,927 21,752 — 110,661 Depreciation and amortization 17,012 3,344 1,922 2,478 24,756 Selling, general and administrative 13,017 1,304 1,260 37,433 53,014 Operating income (loss) $ 19,694 $ 4,800 $ 5,596 $ (39,911) $ (9,821) Total assets 165,532 47,694 23,609 14,403 251,238 Capital expenditures 18,709 377 — 645 19,731 Nine Months Ended September 30, 2017 Managed Applications and Internet-of- Systems Corporate and Consolidated (in thousands) Revenue $ 122,531 $ 9,846 $ 15,701 $ — $ 148,078 Cost of revenue (excluding depreciation and amortization) 75,798 6,844 12,656 — 95,298 Depreciation and amortization 17,509 849 1,813 2,696 22,867 Selling, general and administrative 12,435 1,149 1,179 22,606 37,369 Operating income (loss) $ 16,789 $ 1,004 $ 53 $ (25,302) $ (7,456) Total assets 184,678 33,353 15,857 3,960 237,848 Capital expenditures 13,081 198 — 645 13,924 The following table presents revenue earned from the Company’s domestic and international operations for the three and nine months ended September 30, 2018 and 2017. Revenue is based on the location where services are provided or goods are sold. Due to the mobile nature of RigNet’s customer base and the services provided, the Company works closely with its customers to ensure rig or vessel moves are closely monitored to ensure location of service information is properly reflected. Three Months Ended Nine Months Ended 2018 2017 2018 2017 (in thousands) Domestic $ 18,876 $ 17,136 $ 52,510 $ 46,110 International 45,894 33,708 126,100 101,968 Total $ 64,770 $ 50,844 $ 178,610 $ 148,078 The following table presents goodwill and long-lived assets, net of accumulated depreciation, for the Company’s domestic and international operations as of September 30, 2018 and December 31, 2017. September 30, December 31, 2018 2017 (in thousands) Domestic $ 67,663 $ 68,942 International 73,932 58,895 Total $ 141,595 $ 127,837 |